Sunteți pe pagina 1din 24

INTERNSHIP REPORT ON

NAJMA SUGAR MILLS (Pvt.) LIMITED


Submitted To: MR. JAVEED IQBAL INTERNSHIP COORDINATOR Submitted By:
HASEEB AKHLAQUE KHAN Roll No. MT-01-28 MBA (IT) FINAL (Session 2001-
2003)

INSTITUTE OF MANAGEMENT SCIENCES BAHAUDINE ZAKARIA


UNIVERSITY KARACHI.

IN THE NAME OF ALLAH WHO IS MOST BENEFICENT AND MERCIFUL

DEDICATIONS TO:

This Holy Prophet (SAW) who taught us “Seek Knowledge from cradle to the
Grave”.

My parents whose encouragement, guidance and presence are assets of my life

My teachers who illumined the dark corners of my mind and heart.

TABLE OF CONTENTS
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Description
Preface Acknowledgment Structure of Management Growth of Sugar Industry in
Pakistan Group Profile Board of Directors Mission of NSML Objectives Introduction
Working Force Products of the Company Production Departments at Site Departments at
Head Office Banking Section Data Administration Organizational Incentives Quality
Management Problems of Sugar Industry Comments & Suggestions 2 3 4 5 6 7 8 9 11 12
13 16 33 47 51 55 57 59 60 Page No. 1

PREFACE
This report describes the effort made by me for the learning by first hand practical
experience about a business organization. Today is the era of experience as is said by
quotation “Experience makes a man perfect.” No body can deny the importance of
practical training and experience. Through internship students get the first touch of
professional exposure of the roles; they have to play during their professional careers.
The students not only acclimatize themselves to the corporate environment but also learn
to assume responsibility, co-operation and teamwork the hallmarks of modern
management. Having experience of sugar industry is really a good experience for me. I
am submitting all my experiences. No doubt, omissions and errors are expected but it is
requested to ignore the nominal errors. I was lucky enough to have a chance of doing
internship in HEAD OFFICE OF NAJMA Sugar Mills Limited KARACHI. I learnt a lot
about the practical business and above all, the mental discipline and awareness, which are
the most useful tools for an executive to raise the organizational structure.
HASEEB AKHLAQUE KHAN
ACKNOWLEDGEMENT
First of all, I want to express all and thanks to ALMIGHTY ALLAH whose blessings are
above each and every thing which make me able to present my tiny effort. All prays to
HAZRAT MUHAMMAD (PBUH) who is the reason for creation of the universe and
whose kindness came to my part. Secondly on the successful completion of my internship
program, I whish to express my gratitude and heart worthy acknowledgement to my
operation and helped me in completing this report. professors for full coI feel utmost
pride in

acknowledging with sincere gratitude for the valuable guidance I have received from Mr.
Hassan buchas and Mr.zubair. They have been a constant source of enthusiastic
encouragement through out the internship program. Due to their guidance I have become
able to complete internship as well as this report. Their advice, criticism and remarks
were of the most value to me.

I am also thankful to following persons:


Mr. Jahanzaib Sikandar Mr. Raisuddine Shaikh Mr. Ghulam Hassan shigri Mr.
Mohammad Fiaz Mr. Akhlaque Ahmed Khan Mr. Mohammad Azhar Mr. Basharat
Biabani Chief Executive Officer Managing Director General Manager (f) Manager ( I . T)
Manager (H.R.D.&P)

Chief Accountant Accountant (purchase& inventory)

Furthermore all the other executives and staff members of NAJMA Sugar Mills Limited,
Head Office and Site deserve my thankfulness for their co-operation and guidance during
the course my internship at NAJMA Sugar Mills Limited. Finally I would like
acknowledging the contributions by many other sources of information used in
preparation of this report.

HASEEB AKHLAQUE KHAN

GROWTH OF SUGAR INDUSTRY IN PAKISTAN


Sugar is the important sector of the Pakistan’s economy. Sugar industry plays a vital
role for development of any country’s economy. In Pakistan this industry play a
significant role for economic development. Its share in the large scale industry is 18%
and in GDP is 1.9%.sugar industry contribution to the government exchequer in Federal
excise duty is 11.2%.

HISTORY
The sugar industry, which is endowed with a strong base of sugarcane, had started its
journey from almost non-existence in 1947. The industry has gone through a long way
and now possesses 77 sugar mills in all over the country. The Sugar industry not only
fulfills the entire local requirement but also sharing out the total foreign exchange
earning. At present Pakistan’s sugar industry is facing lot of problems like lesser demand
of sugar in the country due to recession in the economy, declining prices into the
domestic as well as international markets & huge unsold stock of sugar. Government role
in R & D for developing the sugarcane varieties is not very significance; only few private
institutions are doing some research in R & D in developing various varieties with higher
yield.

Pakistan sugar industries still have 34% un-utilized capacity. Which can be utilized by
further developing the 13224 hectares area along the main feeder canal from Indus river
in Sindh. By which we can increase our export to 50000 ton. ( this export to Arab World
can be exchange of half million barrels of crude oil for Pakistan. In Pakistan present
sugar cane varieties are not yielding reasonable production and led to the prevailing
sugar crisis. As described by the table. Countries
USA Mauritius India Brazil Pakistan Cuba
Source: down EBR July 12-18,2002

1989-92 77.44 70.33 66.06 62.02 41.55 59.98

1993-97 76.80 72.83 64.14 61074 43.38 57.04

1998-2002 75.19 71.39 70.30 67.42 43.54 34.83

GROUP PROFILE
The company has been sponsored by SIKANDER GROUP OF INDUSTRIES in ISLAM
ABAD. The sponsors comprise of a family of good repute and their friends. They have
vast experience of running project as well as manpower administration, monitoring of
projects and finance and accounts.

Sr. #Company Name & Location


1 NAJMA SUGAR MILLS LIMITED

Site:
JUDHO, Distt. MIRPUR KHAS, SINDH, PAKISTAN.

HEAD OFFICE:
CLIFFTON KARACHI

TASAQ INTERNATIONAL (PVT) LTD.


HEAD OFFICE:
ISLAM ABAD

MANAGEMENT PROFILE
Chairman KHAN Chief Executive MR. JAHANZAIB SIKANDER (RET) GEN.
SIKANDER HAYAT

Managing Director Director finance Director (HRD&P) General Manager (f)


General Manager (plant)
Mr. RAISUDDINE SHAIKH Mr. Bashir Ahmed Mr. Noor Ahmed Zaib Mr. Ghulam
Hassan shigri Mr. Mohabbat Ali Khan

Auditors:
Mr. Nouman Mehmood, FCA Avais Hyder Zaman Rizwani

Legal Advisors:
Mr. Muneeb Akhter Advocate A.K.Brohi & co.

Banks

Muslim Commercial Bank Limited National Bank of Pakistan Habib Bank of


Pakistan

MISSION OF NAJMA SUGAR MILLS LIMITED


ϖ To produce superior quality White Refined sugar To face competitionϖ . in the Local
& Total Quality Management.ϖ International Market.

OBJECTIVES
Following are the objectives of company. 1. Total quality focus to meet customer’s
requirements. 2. The highest standard of business ethics. 3. To care on the business
ethics. 4. To carry on the business at best possible level. 5. To guarantee performance of
contracts by members or persons having dealing with the company.

BRIEF INTRODUCTION
INCORPORATION
NAJMA Sugar Mills Limited was incorporated on May 26, 1991 as a public limited
company. The authorized capital of the share of the company was Rs.350, 000,000/-. The
certificate of commencement of business was obtained in Feb., 9,1992. The previous
sponsor of the company (the family of chief minister of Sindh, JAM SADIQ ALI (late)
could not manage to setup the project and finally on intervention of the BEL shares. The
management of the project was transferred to the new sponsors in 1998. The name of the
company was changed to NAJMA SUGR MILLS Ltd. On November 15,2000.

NATURE OF BUSINESS
Crushing of Sugarcane & Raw Sugar in to White Refined Sugar.

FIRST CRUSHING SEASON (TRIAL)


NAJMA Sugar Mills Limited starts its first crushing season (trial) in 2002-2003.

LOCATION
NAJMA Sugar Mills Limited is located at Judho, MirPur Khas Sindh.

HEAD OFFICE
Head Office of NAJMA Sugar Mills Limited is located at Sikander Munzil Park
lane 5 Cliffton Karachi.
FINANCIAL YEAR
The financial year of the company is from 1st October to 30th September.

RAW MATERIAL
The main raw material for the mill is sugarcane, which is abundantly available in
Pakistan. The second raw material is Baggas. Some of which is obtained by the own
crushing the other will be purchased by the Beggas Venders/Suppliers.

MAIN COMPETITORS
θ

Mutyari sugar mills Sangher. Thatta Sugar Mills Limited, thatta. Therparker Sugar
Mills Limited, Therparker.

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

AT SITE
Permanent Employees Temporary Employees Seasonal Employees Daily Wages
Employees Total 157 30 400 (app.) 10 597

AT HEAD OFFICE
Permanent employees Temporary Employees Total 25 5 30

PRODUCTS OF THE COMPANY


SUGAR INDUSTRY IS AN AGRO-BASED INDUSTRY, WHICH PROVIDES
EMPLOYMENT TO THE LANDLESS RURAL POPULATION AND HASE A
GREATE IMPECT ON THE ECONOMY OF A COUNTRY.

The main product of the company is White Refined Sugar. The three principle bye-
products of a sugar industry are 1. Bagasses 2. Molasses 3. PRESS CAKES (WHICH R
ABOUT 40% OF THE WEIGHT OF TOTAL CANE CRUSHED.) 4. MUD

WHITE REFINED SUGAR


Major business of the company is to produce white refined cane sugar of intermission
standard and from the erased cane and three different components are achieved that are
fibber, Pith and Moisture.

MOLASSES:
THIS IS A BY-PRODUCT AND IT IS SOLD TO MOLASSES CONTRACTORS. ONE
OF THE ALLIED CONCERN, RELIANCE COMMODITIES (PVT.) LIMITED IS THE
MAIN BUYER OF THE MOLASSES OF NAJMA SUGAR MILLS LIMITED AND
ALSO THE MAIN BUYER OF MOLASSES FROM WHOLE THE
COUNTRY.RELIANCE COMMODITIES (PVT) LIMITED IS THE MAIN
EXPORTER OF MOLASSES IN PAKISTAN. Molasses may be used for the production
of power alcohol acid portable

spirits.

BAGGAS:
This is also a by-product of the company. Begass is used as source of energy fuel for
sugar industry for juice heating. and also used for making medium density fiber board
(MDFB). baggasse is sold to the baggasse contractors.

MUD:
Mud is also the by-product of the company. It is sold to the Mud Contractors. This is
used in making chocolates and other products.

PRESS CAKE:
Press cake of sulphitation factories are used as manure and that of carbonation factories
are usually burnt.

Plant performance during the season 2002-2003 (trial season)


Season start Season Ending Date & Time Date & Time 05-01-2003 At 6:25 P.M 05-01-
2003 At 6:25 P.M 80 52095.53 1302388.25 1518.5 30370 1039.282 4.989 4358.750
8.391

Duration of season (days) Cane Crushed (M.Tons) Cane Crushed (MND) Sugar
Production (M.Tons) Sugar Production (Bags) raw Sugar Production (M.Tons) Sugar
cane recovery (%) Molasses Production (M.Ton) Molasses Recovery (%)

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

AT SITE
1. MECHANICAL 2. ELECTRICAL 3. CHEMICAL 4. CANE 5. ACCOUNTS 6.
COMPUTER 7. ADMINISTRATION

AT HEAD OFFICE
1. FINANCE 2. ACCOUNTS 3. ADMINISTRATION 4. PURCHASE 5. SALE

MECHANICAL DEPARTMENT
Mechanical department is the main department of any sugar mill. This department
plays very effective role for crushing of sugarcane.

FUNCTIONS:
The main function of this department is to control the whole plant & machinery. The
main goal of this department is that the whole process is going through effectively and
efficiently without any hurdle. Mechanical department has qualified engineers who are
very professional about their work. All the work is done under supervision of Chief
Mechanical Engineer.

ELECTRICAL DEPARTMENT
Electrical department is also very important department of any sugar mill. This
department plays very effective role for keeping the plant in running conditions.

FUNCTIONS
The main function of this department is to assist the mechanical department, with the
help of this department; mechanical department has a better control on whole plant &
machinery. The main goal of this department is to supply electricity to whole plant &
machinery. Electrical department has also qualified engineers who are very professional
about their work. All the work is done under supervision of Chief Electrical Engineer.

CHEMICAL DEPARTMENT
Chemical department is another main department of any sugar mill. This department
plays very important role for crushing of sugarcane.

FUNCTIONS
The main function of this department is to test the quality of sugar, with the help of this
department sugarcane is crushed in to white refined sugar. The main goal of this
department is to maintain a quality standard. This department plays his role during
whole the process because different types of chemicals are mixed in sugarcane juice for
making the juice in to liquid shape. This department checks the quality during the whole
crushing process. Chemical department is working under very experienced person who
has vast knowledge about chemical. All the chemists are very experienced and
professional.

CANE DEPARTMENT
Cane department is the major department of any sugar mill. This department is
purchasing sugarcane from growers.

FUNCTIONS
Cane department is working under General Manager Cane, who is a very experienced
person and has a much more knowledge about sugarcane quality. The main function of
this department is the purchasing of sugarcane. The main goal of this department is to
supply high quality sugarcane. Main input of NAJMA Sugar Mills Limited is the raw
fresh sugarcane. To control the different activities of purchase of sugarcane, cane
department play very important role. This department has purchased sugarcane from
different villages of the country. Cane field officers are surveying regularly and motivate
growers. This department opens depots in different villages for purchasing of sugarcane.
In Sindh a number of small grower’s exit and yield different varieties of sugarcane that
profitable to the growers. Cane department also play very important role for granting a
loan to the growers in the shape of seed, fertilizer and machinery, which has to be
returned in the shape of supply of sugarcane to the respective mill.
Before start of crushing season, Cane department of NAJMA Sugar Mills Limited
arranges a survey of the growers of surrounding area of the mill for the availability of
sugarcane. They collect data about varieties, quality and quantity that would be available
during the season.

CANE ACCOUNTING
After receiving sugarcane from the grower, process of payment starts. Cane accounts
generate the payment that is sent to the banks for disbursement. Cane accounts generate
the following output from cane accounting package.
θ θ θ θ θ

Grower Ledger Cane Payment Contractor Register Loan Register Daily Cane
Purchase & Receipt Summery

Cane Accounts Department is working under Main Accounts Department. All the
printed data sent to Head Office on biweekly basis. Payment to grower is made through
bank after getting approval from Head Office, in case of emergency sometimes payment
is to be made at Head Office, but during routine, payment to growers is done at site
through bank.

ACCOUNTS DEPARTMENT

Accounts department is the department, which is recording all the business transactions
into books of accounts. With the help of this department, we should know the actual
position of the company about profit or loss. Accounts department is working under
Chief Accountant, who is a very experienced person.

FUNCTIONS
The main function of this department is recording & classifying all transactions into
books of accounts, keeping whole record of the company about payments, receipts,
profits & losses. The main goal of this department is to work effectively & efficiently
within the accounting standards all the time. Main Accounts Department also supervises
the Cane and Store Accounts. Normally Accounts Department performs following
activities:
θ

Maintaining Records Keeping Accounts Record of All Departments Payment of Wages


& Salary Store Accounts Cane Accounts Dealing With Banks Tax related matters Stock
Position

θ
θ

Stock Taking

CANE ACCOUNTING
Main Accounts Department also supervises the Cane Accounts. This department deals
with following matters:
θ

Keeping Sugarcane Purchase Record Keeping Record for Growers Arranging payment
for growers Recovery of Advances from Growers

STORE
Main Accounts Department also supervises the Inventory / Store Department.
Inventory means stocks of things and items, which are used with in the company for
producing goods, and finished goods offering for sales. Inventory can be divided into
following four groups: 1. Raw Material 2. Work in Process Inventory 3. Finished Goods
Inventory 4. Spare Parts Inventory

For effective control over the company’s inventory, it is necessary that overall work
should be done under Accounts department. It is very important for store that it has to
maintain sufficient stock of all the related parts / goods to make the factory continue its
production and functions of other departments without any hurdle. This department
receives the demand from various departments and then arranges the required goods /
items. When demand of items / goods received, then following process starts. 1. Purchase
Requisition received at store, through relative department’s head, which contains item’s
name & quantity. 2. Store Incharge checks the required material/items and issue to
relative department according to demand, if required material/items currently not
available in store, then Purchase Incharge makes the purchase indent for required
material/items. 3. Purchase indent sent to the Purchase Department at Head Office after
getting approval from General Manager at Site. 4. purchase Department examine the
quotation if it is less then 50,000 , the purchase manager can purchase within this amount
but if it exceed from 50,000 to 150,000 it will be approved by the Manager (HRD&P).
and more than this will be approved by the MD. 5. Purchase Department collects
quotations from different listed sellers.

6. Purchase Manager compare all quotations and send summery of favorable rates to
Chief Executive for approval. 7. After getting approval from the Chief Executive,
Purchase Department issue Purchase Order for required material / items, which contains
Mode of Payment, Mode of Delivery, Item Name, Quantity etc. 8. Delivery of required
items at Site through supplier’s own vehicle or through rented vehicle on company’s
expenses according to the contract. 9. Gate Inward sent to store, which contains complete
report about Quantity of Material/Goods, Bilty No., Vehicle No., Supplier name. 10.Store
Incharge checks the material/items, if any item is not according to demand then this item
sends back to supplier, if material/items are according to demand then store incharge
issue Inspection Report. 11.After issuance of Store Inspection Report then Store Incharge
issue Goods Receiving Report which clearly shows the complete detail about
material/items. 12.When any item or material has to go out from store for any purpose
then gate pass is used, which contains quantity of item/material, purpose for going and
name of the person taking it. All the above-mentioned documents have three copies. First
copy hold down at Store, Second copy is hand over to the seller and third copy sent to
accounts department.

Store’s issue material/items to various departments according to their demands and then
posted all transactions into accounts. At the end of each month store consumption is sent
to head office. Normally accounts department sends all record to head office on weekly
basis, but they are maintaining some record at mills, which is necessary for routine work
and for reconciliation purpose.

COMPUTER DEPARTMENT
Now a day’s computer plays very effective role in all fields of life. At present all sugar
mills in Pakistan are using various software’s. Computer department of NAJMA Sugar
Mills Limited is working under Manager Information Technology, who is a very efficient
person and have a vast experience about different software’s and hardware. There are two
departments in which computer is being used in NAJMA Sugar Mills Limited (site),
which are as follows:

1. Cane Department 2. Accounts Department 3. Inventory and Store Department.


Main input of the NAJMA Sugar Mills Limited is the raw sugarcane. To control the
different activities of purchase of sugarcane, computer is very much helpful. Growth of
sugar industry has brought about certain changes that demand application of modern
computer application in operations of growing sugar mills.

CANE DEPARTMENT
CANE APPLICATION In cane application, computer is playing its role in a very
superlative manner. It is good sign for the company keeping the record of each grower
and give recommendations on the basis of given parameters. CANE LOADING &
PROCUREMENT Before starts of the crushing season, cane department of NAJMA
Sugar Mills Limited arranges a survey of the growers of surrounding area of the mill for
the availability of sugarcane. They collect the data about varieties and quantity that would
be available during the season. This data is posted in to the computer to accommodate
each and every grower during the season for the supply of sugarcane to the mill.
Following reports are generated from cane application software.
θ

Survey Agreed Cane Schedule Summery Village wise Procurement Summery Circle wise
Procurement Summery Point of Purchase Summery Indent Printing

Work Order Printing

CANE YARD MANAGEMENT Sugarcane comes to the mills in different ways, which
are as follows: 1. Grower brings the sugarcane on his own vehicle 2. Grower brings the
sugarcane on rented vehicle 3. Sugarcane comes through the purchasing centers on rented
vehicles. When sugarcane reaches the factory gate then cane yard management starts.
Cane yard management produces the following information:
θ

Weighting of sugarcane Recording the Weight Recording the Vehicle Number Recording
the Date Printing of CPR’s Daily Crushing Summery Contractor wise summery

θ
θ

When sugarcane enters in the mill, first of all its weight is checked at weighbridge, then
this weight is posted into computer and gives a CPR to the grower.

CANE ACCOUNTING

The most important and the typical part of accounting is the cane accounting. Which is
supervised by the chief accountant cane. After receiving sugarcane from the grower’s
process of payment starts. Cane Accounting Package generates the payment that is sent to
the banks for disbursement. Following are the main reports generated from Cane
Accounting Software.
θ

Grower Ledger Cane Payment Contractor Register Loan Register Daily Cane
Purchase & Receipt Summery

Cane Accounts Department is working under Main Accounts Department. All the
printed data sent to Head Office on biweekly basis. Payment to grower is made through
bank after getting approval from Head Office, in case of emergency sometimes payment
is to be made at Head Office, but during routine, payment made to growers at site through
bank.

ACCOUNTS DEPARTMENT

Accounts dept. at NAJMA SUGAR MILLS Ltd. Is working under the supervision of
Chief Accountant, who is a well-known and experienced person. He has full command on
his job either it is manually or it is computerized. He has a vast experience in this field.
Accounting software is also used in Accounts Department. All the transactions are
posted into computer. The accounts System has capability of making different sorts of
reports/vouchers. It also helps in Auditing of the balance. This is working under the
supervision of MIT. The accounts system is Fund¬ Account Journal Vouchers ¬capable
of making following reports. M.Rs¬ Taxation Reports ¬ All types of Financial Reports.
¬Utilization Reports. Fund Allocation Reports¬

ADMIN DEPARTMENT
Admin department is the department, which is dealing matters about administration.
This department plays very important role for maintaining discipline in the mills. Admin
department is working under Admin Officer, who has much more experience about
administration matters.

FUNCTIONS
The main function of this department is to handle all the administrative matters and
maintaining discipline. The main goal of this department is to provide easy working
environment. This is very important department of the organization as the name shows;
this department has to administrate all the operations of the organization. Sections of
this department are divided into Gate Office Time Office Security Guard Office
Labor    offices as under: Office

GATE OFFICE
This office has been made to keep the record of each and every thing coming into and
going out of the mills gate. For this purpose gate office clerk maintains two types of
registers called; 1. Outward going pass register

2. Inward going pass register. When every thing including raw material, stores supplies,
or any other thing comes into the mills premises a document named as I.G.P is made in
which information like date of supplier, description, quantity of the material and any
other remarks are written. In the same way, O.G.P is prepared for out going things etc.

TIME OFFICE
This office keeps and maintains the time record of all the workers on time cards and
pay register for the final costing of the It keeps the attendance records, which is than
used to workers salaries. It keeps the calculate the salary to be paid to the workers
on monthly basis. records of the over time, leaves, number of days worked of all the
workers and than calculate their over time on the basis of the basic salary of each worker.
It keeps the records of Social Security, EOBI, Education Cases etc. of each employee /
worker payable to government treasury. It keeps the records of Gratuity, Bonus, Pensions
and other benefits including CPL (Cash Paid Leave) to each employee / worker of the
organization.

SECURITY GUARD OFFICE


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

the mill premises. For the achievement of such objective a team of security guards has
been employed by the company. All the keys relating to the mills office, labor colony,
(quarters) are lying into the responsibility of the No out side visitor can come into the
mills premises without security officer. Whenever any visitor wants to enter the
permission of the security guards. into the mill, security guards firstly contact with the
authority in the mill to Security guards can grant the permission to enter into the mill
premises. check each and every person before coming in or going out of the company
gate for the security purposes.

They see and check the outward going pass of the certain things when these ought to
bring out of the mill premises.

They are in uniforms of dark green color.

They are the guardians of the every thing of the company. The organization also has
purchased a human scanning security system, through which the record of each employee
and visitor is maintained. This system has reduced the fair of any type of theft.

HUMAN RESOURCE DEPARTMENT.


As required by the labor laws of the Government of Pakistan, this office has been setup to
deal with all the matters that are related with labor and other human resources. The
Manager (HRD&P) is the head of the H.R.DEPT.

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


other hind of matter, which may arise from time to time between the labor and the
immediate supervisor, or with any other person in the It is the duty of the Manager
(HRD organization. &P) to inform the legal It is also the duty of requirements
concerning the labor and company affairs. the Manager (HRD&P) to satisfy himself
regarding payment of bonus, gratuity, and other benefits to labor and to keep their morale
and motivational level It is also a requirement to be a successful Manager (HRD high.
&P) that he should keep his knowledge up to date regarding the rules and regulations of
the labor department . Manager (HRD&P) is responsible for the implementation of
the strategies and Manager (HRD rules made by the higher authorities. &P) also helps
the higher authorities in strategic decisionmaking.

FINANCE DEPARTMENT
Finance department is the department, which provides funds to the company. This
department plays very important for fulfilling the need of fund. Finance department is
working under General Manager Finance, who is a Fellow Member of Institute of
Chartered Accountants of Pakistan and has vast experience about financial matters.

FUNCTIONS
The main function of this department is to get Cash Finance and Running Finance,
according working capital requirements, from different Financial Institutions against
pledge of sugar stocks. This department also performs Managing Cash¬ Fund Raising.
¬ Financial Planning. ¬following activities: & Analyze the¬ Capital Expenditure
Decisions. ¬Credit Activities. Short Term¬ Evaluation. ¬Financial Information. &
Long Term Financing. Finance department analyzes the financial information and then
presents them into proper form, so that financial position of the company can be properly
viewed. Finance Department evaluating and determining about required additional
finance. All the functions are based upon Balance Sheet, Income Statement and other
Financial Statements.
ACCOUNTS DEPARTMENT

Accounts department is the department, which is recording all the business transactions
into books of accounts. With the help of this department, we should know the actual
position of the company about profit or loss. Accounts department is working under
Manager Accounts, who is a Chartered Accountant of Pakistan.

FUNCTIONS
The main function of this department is recording & classifying all transactions into
books of accounts, keeping whole record of site and head office. The main goal of this
department is to work effectively & efficiently within the accounting standards all the
time. Main duties of Accounts Department ¬are as follows: Payment of¬ Keeping
Accounts Record of All Departments ¬Maintaining Records Wages & ¬ Cash
management ¬ Control of Funds ¬ Dealing With Banks ¬Salary Cash Flow¬ Tax
Matters ¬ Receipt of Cash ¬Payment of Bills and Charges

Analysis of¬ Preparation of Final Accounts ¬ Arrangement of Heavy Funds ¬ Provides


Reports for Assistance in analysis to top management¬Reports decisions. We can say
that this department acts as a nervous system. Every matter is first brought in the
knowledge of the head of this department, then he take appropriate action according to
the situation. The members of this department are every experienced.

INCOME TAX MATTERS


As required by the tax authorities of the Govt. of Pakistan, whenever the company makes
purchases from the supplier, gets services on contract or on commission basis, the
amount paid to the party is tax deducted. When the company will make the payment to
the party (supplier, contractor or commission agent) it will deducted the tax from the
amount to be paid to them. Tax deducted are payable to the Income Tax authorities.
When the company makes the payment of this tax, a Tax Challan is filled and prepared
by the section and after payment it is filed into the tax Challan file after debiting the tax
payable. The sellers, contractors and agents from this section then receive these challans
for their official uses.

SALES TAX MATTERS

Sales Tax is deducted from sellers at the time of sale. The company also pays the sales
tax to the suppliers, but this sales tax has claimed as refund and it is to be adjusted from
total amount of Sales Tax payable, then remaining payable amount is to pay to the Sales
Tax Department.

PURCHASE DEPARTMENT
Purchase department is the department, which conducts all the purchase for head office
and site. This department plays very important role for maintaining discipline in the
mills. Purchase department is working under Manager Purchase, who is B.Com + C.A-
Articles.
FUNCTIONS

The main function of this department is to purchase Spare parts, Store Material,
Chemicals, P.P Bags etc. The main goal of this department is to purchase required items
at convenient rates. This department conducts all the purchases. There is also a Purchase
Assistant in this department to keep the records. Whenever any particular department
requires any part of material/goods, its head makes a demand of items to be required.
This demands contains the information like, items description, quality, quantity and
others. The departmental head signs the demand and sent to the purchase department,
then purchase department sent it to Chief Executive for final approval. The Manager
Purchase has the list of preferable suppliers of the certain items. When any item is
required, first he get rates from market though purchasers, then he compare market rates,
and making a purchase order of the supplier which provide the material/items at
convenient rate after obtaining verbal or written approval from the Chief Executive.
Purchased material sent to the mills premises through rented vehicle or the supplier is
sending material/items according to the contract. In Purchase Department work is done
according to the following process: 1. Purchase Requisition received from store of site or
head office, which contains items code, items description and balance in the store. 2.
Purchase Department sends this requisition to Chief Executive for approval.

3. Purchase Department collects quotations from different sellers after approval from
Chief Executive. 4. Quotations are compared and summery sent to Chief Executive. 5.
Purchase Order is prepared for required material / items after getting approval from the
Chief Executive. 6. Delivery of required items to Site Store / Head Office Store.

The Data Flow Diagram of the purchase system is on the next page.

User at site

Request for item at site Store Search for item Yes No

Daily

if Special

Purchase sec. At site

Purchase sec. At H/O

Req< 50000 R eq.

If

Req >50000

Request for requisitions Provide Requisitions


Manager H.R.D.&P . . At H/O Compare the requisitions

Supplier s

Not accepted IF

11

Order for items

Accepted

Supply the items Original GRR

Stores at site

Duplicate GRR

Duplicate GRR Purchase sec (S) Purchase sec (H/O)

Requested item is issued

User

This is the purchase system for Najma Sugar Mills.


The main things are PR……………………… purchase requisition
GRR……………………………..Goods Receiving Receipts After this the bills are sent
to the accounts branch of both site & H/O Who is responsible for the payment of the bills
All the bills received by the Accounts sec. is matched by the GRRs. And then paid to the
supplier. The store is responsible for the checking of received items for any cracking. If
any piece is found damaged at the time of receiving it is not received and Also not
entered in the GRR.

SALE DEPARTMENT
Sales department is the department, which deals the sale of sugar and other
byproducts. Sales department is working under Sales Officer.

FUNCTIONS
The main function of this department is the sale of sugar, molasses, baggasse & mud.
The main goal of this department is to sell the stock at best available market price. To
keep the record of sale of sugar and other by-products Computer Software is used. All
transactions of sale are posted daily in computer. Following record are maintain by Sale
Department: 1. Sales Register. 2. Stock Reports. 3. Delivery Orders. 4. Invoices. 5. Sales
Tax Detail. 6. Parties Position. In NAJMA Sugar Mills Limited normally all the sale is
done through agents. There are three main parties of sale; all sales are done through these
parties. Delivery Orders are sent to site according to contract. Without delivery order go
down incharge cannot dispatch the sugar bags.

BANKING SECTION
The Company kept Current Accounts almost in every bank, but most business is routed
through these banks, which are as follows.
θ

Allied Bank of Pakistan Limited National Bank of Pakistan Limited

Muslim Commercial Bank Limited Habib Bank Limited United Bank Limited Bank Al-
Falah Limited Emirates Bank International

The company has also kept Loan Accounts in all above-mentioned banks. The company
has routed its most of the import business from Muslim Commercial Bank Limited, most
of the L/C’s are opened in Muslim Commercial Bank Limited. The company is also
availing Cash Finance Facility from the above-mentioned banks against pledge of sugar
bags. Normally at the beginning of the crushing season sugar bags are not sold in market,
because these bags are used against Cash Finance Facility from banks. Cash Finance is
the main source of the company when there is a shortage of funds. The company has also
availed Short Term & Long Term Finances from following banks.
θ

Investment Corporation of Pakistan National Bank of Pakistan Limited Muslim


Commercial Bank Limited Habib Bank Limited United Bank Limited

θ
This section is the very important part of the Accounts Department. All the
functions

that are related to the banks are done in this section. Key functions of the section are as
under: 1. Preparation of Bank reconciliation statement. 2. Treatment of the bank’s debit
and credit advices. 3. Preparation of Demand Drafts, Telephonic Transfers, Pay Orders,
Cheques with reference to payments to the parties.

BANK RECONCILIATION STATEMENT


Some banks of the company sends the statements of the accounts to the company on daily
basis and some sends at the end of every month or on the demand of the company from
time to time. This statement has all the records of transactions between the company and
the bank during that specific period. Accounts department reconciles the bank
statements with accounts, some time due to some reasons; transactions do not equally
matched with the company’s records. Reasons are as follows: 1. Cheques issued by the
company to any party but not still presented to the bank for payment. 2. Cheques
deposited but not cashed or canceled due to some reason. 3. Any amount debited or
credited by the bank but not treated in the company’s accounts.

All these missing items are required to be settled in the company’s accounts.

DEBIT & CREDIT ADVICES


Banks sends debit and credit advices to the company according to the transactions. These
advices are the reflection of the transactions between the company and the bank.

When any amount is deducted from the company account due to any reason like:
Deduction of Bank Cheques. Payment of any amount to any party on the   behalf
of the company. The adjustment of loan.

For these amounts, the bank made the Debit Advice, means that certain amount has been
deducted from the company’s account, and sends it to the company. Moreover, when the
bank adds any amount in the company’s account due to some reason like: 1. Re-
imbursement of loan / refinance. 2. Depositing of any amount in the bank by the
company. 3. Depositing of any amount in the bank from any party in the company’s
deposits. 4. Mark-up on the company’s deposits. For these, the bank sends the Credit
Advice to the company, means that the certain

amount has been added to the company’s account and sends advice to the company. The
company add this amount to the banks ledger. Accounts department debit these amounts
to the banks ledger through B.D.N Voucher (Bank Debit, Credit Note), this voucher is
firstly signed by Accountant, secondly by the Chief Accountant, thirdly by the Financial
Controller, fourthly by General Manager, fifthly by Internal Auditor and at the end this
voucher sends to Chief Executive for final signature.

DATA ADMINISTRATION
Business environments are becoming more and more complex with the passage of time.
The cope with changing environment and modern technology, a lot of energy &
knowledge is needed. Media and information technology are of utmost important and
discoveries in the computer technology have been made in the past few decades.

SOFTWARE SPECIFICATION:
NSML got their system development in FoxPro Language from ICS (Pvt.) Ltd. They
have following systems computerized. • Accounts system • Sales System • Purchase
System • Store System

HARDWARE SPECIFICATION: AT SITE:


ACCOUNTS DEPARTMENT: 1. Main Server 2. Four Clients 3. Printer Pentium-
III Pentium- III LQ-2170

SALE DEPARTMENT:
Main Server Client Printer Pentium- III Pentium- III LQ-2170

PURCHASE DEPARTMENT:
1. Main Server 2. Clients 4. Printer Pentium-III Pentium- III LQ-2180

AT HEAD OFFICE:
In NSML, they are using network computer system. Their terminals are network through
networking. They have nine terminals on the whole. All the terminals are the intelligent
terminals and the main server is installed in the office of manager MIS dept.

PRESENTATION OF REPORTS
No one system can said computer until it generals certain reports. So the system of
NSML is also generating a broad no. ϖ of reports. Following are some important reports
produced by this system; Editϖ Sub ledgers ϖ Listing of all ledgers files ϖ Listing of
all master files Trailϖ Sale day book ϖ Purchase day book ϖ Day Book ϖ Due
balances ϖ lists Cash Bookϖ Balance

Monthly Profitϖ Trail Balance ϖ Outstanding Cheques ϖ Monthly Balances ϖ &


Loss Account.

DATA SECURITY:
The issue of data security is crucial in the era of centralized database. We use the term
“data security” to mean protection of the data in the database against the unauthorized or
accidental disclosures, alteration or destruction. Realizing that perfect security is
unattainable, the objective of data security is to minimize the risk and probability of loss
and disclosure to the lowest affordable level. There, in NSML, they are securing ϖ
Protecting from unauthorized access ϖ Backup ϖ their data in following ways;
Stabilizerϖ UPS (Un-interruptible Power Supply) ϖ Watchman

We have already described that NSML is being running their computer network under the
environment of VM.s / CMs Operating Systems. Their Operating Systems provides them
he facility to set different level passwords. Each level may be
allocated different rights that are pre-specified. They are using four levels of data
securing and only the authorized person can access the system up to the extent they have
authority. These levels are as follows;

SYSTEM LEVEL SECURITY:


This is highest level of security. It has all the possible rights. It has access to change the
different operating system protocols. It can change the different passwords. It can modify
the level of rights given to different users. In NSML, M. FIAZ, the head of MIS Dept,
carries it.

FIELD LEVEL SECURITY:


This level of somewhat different, with reference to other levels. The manufacturer of
operating system uses this level. Whenever, there is any problem in system,
manufacturing personnel are called. The personnel of manufacturing firm come there and
input their password and work there to save the problem without disturbing the personnel
of MIS Dept.

MANAGER LEVEL SECURITY:


This is the top most level in operational work. Manager MIS Dept also holds this

level. Under this level, the manager can perform any kind of activity regarding the
management of the data.

USER’S LEVEL SECURITY:


This is also called the K.P.O level. At this level user of the system have the minimum
rights. Their main work is to input the data and to generate different reports. They have
also rights to enter in their own files. But others files are inaccessible.

ORGANIZATIONAL INCENTIVES
NSML has a well-formed human resource department (HRD), due to which a lot had
been done and is being done to make the moral of the workers of the

Organization high & high.

WPPF (WORKERS PROFIT PARTICIPATION FUND)


This is the name of the fund given to workers when company earns profit. It is 5% of the
total profits earned during an accounting year. Every workers / Employee whose not pay
is up to Rs. 3000/= is eligible for getting this fund.

BONUS POLICY:
The company maintains a bonus policy for its workers to initiate the motive to work
whole-heartedly for increasing workers and organizational efficiency. According to this
policy, company shall give sum equivalent 60% basic salaries of worker at the end of the
every accounting year in case of report earning.
SOCIAL SECURITY FACILITY:
The company deducts a nominal amount in the account of social security from the
salaries of the workers on monthly basis. This deducted amount is submitted to the social
security and they allot a social security number with an identification card, which shows
that the worker had got the facility of social security. Major advantage provided through
social security number is the free health care including medical and surgery facilities
from the specified social security hospitals.

E.O.B.I (EMPLOYEES OLD AGE BENEFITS INSTITUTION)

This is an important deduction from the salaries of the workers for the regular income in
the old age / post retirement age so that workers have a thought of relief that there would
be no financial problem after the expiry of his employment. EOBI is an institution where
this deducted amount is accumulated for the future use when these people will not be able
for employment.

HOUSING FACILITIES:
The workers have provided with the residential facilities and small quarters are provided
to the workers. These quarters are often visited by the resident director for the checking
of cleanliness and other important matters if raised by any situation from the workers
side.

COMPANY CANTEEN:
Company has given the provision of a canteen / café-teria for its workers and employees.
The quality of the food available in the factory canteen is under the supervision of the
labor officer.

LUNCH & TEA:


According to the scheme, company gives lunch to all its workers / employees once in
every month. It also gives two times tea and lunch free to the executive level.

PROBLEMS OF SUGAR INDUSTRY


Quality of sugarcane is not very good, because of lack of¬ Role of Government in
developing varieties of¬research in this sector. sugarcane is not very significant; only
some private institutions are doing some Government’s wrong¬research in developing
various varieties for higher yield. policy for import of raw sugar Heavy duties on¬.
export of sugar¬. ¬Instability of exchange rate also creates problems for exports and
imports. Increase in cost, due to Government policy of increasing prices of sugarcane,
furnace oil & Low sale price of¬electricity. sugar ¬in the market. Lack of institutional
finance¬Higher rate of mark-up on Finance Facilities. for modernization efforts.

SWOT ANALYSIS
STRENGTH:
Another strength is the highϖ motivation of employees to their work because they know
that what so ever they do, it will be in their own benefit. They know that the profit, which
they will earn, will be distributed among all the employees. So they work with high
Salaries are very reasonable, so the employeesϖ motivation and concentration. are not
financially disturbed and they devote their selves fully to their work. Friendly and
cooperative workingϖ Having a professional management. ϖ Goodϖ Better financial
resources. ϖ environment. & new machinery provides LAN Networking helps the
higher authority in goodϖ competitive advantage. Camera screening is a plus
pointϖ management and provides timely information. for better management.

WEAKNESSES
Lack of marketϖ Lack of research and development. ϖ The no ofϖ The residence of
the employees is not so good at sight. ϖ survey The area of theϖ workers is less as
compared to the requirement of the job. sight is reasonably at low height from the
surroundings so the rainy season can The water of the sight is not good andϖ create
difficulty during the season. there is no proper arrangement for this.

Telephone serviceϖ Tranportation to the site is not available easily. ϖ is not


efficient.

Opportunities:
New government andϖ Entering into new markets ϖ industrial projects

Opportunities for the online business are available here.ϖ


ϖ Awareness in theϖ Minimization of cost by properly utilizing the by-products.
growers about the quality of seed should be increased. so that the good sugar cane can be
achieved.

THREATS:
De-zoning policy has created great competition betweenϖ Due to great competitions
the availability of the rawϖ the organizations. ϖ Strict Govt. policies ϖ Invisible trade
barriers. ϖ material is the problem. Low sale price of sugar Higher exportϖ Higher
rate of mark up ϖ High raw material price. ϖ in market WTO is an other threat due to
higher cost of raw materialϖ taxes rates.

COMMENTS IN BRIEF & SUGGESTIONS


After a short careful¬ analysis, I come to know that the financial position of the
company is very strong than the other sugar mills in sugar In NAJMA¬industry. Sugar
Mills Limited there is no formal marketing department to promote and introduce its
output in local & international market. There is a crucial need for having a disciplined &
coordinated program of marketing to boost up ¬ There is a need of searching the new
customers in local market. ¬sales. NAJMA¬Sugarcane seeds should be provided to the
growers. Sugar Mills Limited should advise its field supervisors to be more active in
field, coordinate with growers NAJMA¬and try to understand problems of the growers.
Sugar Mills Limited should appoint skilled persons in every department Local worker¬.
NAJMA¬should be preferred. Sugar Mills Limited should introduce the new brands of
sugar packets, such as 5 Branch of Sales¬Kgs, 10 Kgs, and 25 Kgs. Department
should be setup in mills to provide the selling facilities to the local agents & ¬dealers.
NAJMA Sugar Mills Limited should conduct market surveys and research to

Sale¬know the customer’s views and suggestions. Department should be engaged only
in sales activities and perform only following activities. 1. Sale of White Refined Sugar.
2. Sale & purchase of Molasses. 3. Sale & purchase of Baggasse. 4. Sale of Mud. 5.
Maintaining a Sale Register. Remaining work should be done by Accounts Department,
which are as follows: 1. Keeping whole record of Sugar Parties, agents and Customers.
2. Posting of Sale Voucher. 3. Posting of Cash Received from Internal Audit¬Customers
Voucher. Department should check each Internal Audit¬voucher. Department should
conduct monthly audit of accounts and submit its report to Chief Executive, General No
room is available¬Manager, General Manager Finance and Manager Accounts. for
external auditors in whole group, at least two rooms should be arranged
Computer¬permanently for external auditors. department should also Accounting
Software should also be improved because¬establish at site Office. this software cannot

At least one I.T Engineer should be¬generate some important reports. The¬ Job
rotation principle should be implemented. ¬appointed at site Office. H/O should be
connected through Internet with the site. Due to which cost of telephone and
transformation of data can be reduced.

TABLE OF CONTENTS
Sr. # 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Introduction
Main Departments at Site Mechanical Department Electrical Department Chemical
Department Cane Department Accounting Department Admin Department Main
Departments at Head Office (Finance) Accounts Department Export & Import
Department Purchase Department Sales Department Banking Section Organizational
Incentives Quality Management Ratio Analysis Statement of Cash Flow Interpretation
Problems of Sugar Industry SWOT Analysis Comments in Brief and Suggestions Topic
Growth of Sugar Industry in Pakistan Page # 04 08 14 15 16 17 18 20 29 33 35 40 44 46
47 61 65 69 74 76 79 80 81

S-ar putea să vă placă și