Professional Documents
Culture Documents
This report describes the effort made by me for the learning by first hand practical experience
about a business organization. Today is the era of experience as is said by quotation Experience
makes a man perfect. No body can deny the importance of practical training and experience.
Through internship students get the first touch of professional exposure of the roles; they have to
play during their professional careers. The students not only acclimatize themselves to the
corporate environment but also learn to assume responsibility, co-operation and teamwork the
hallmarks of modern management.
Having experience of sugar industry is really a good experience for me. I am submitting all my
experiences. No doubt, omissions and errors are expected but it is requested to ignore the
nominal errors.
I was lucky enough to have a chance of doing internship in HEAD OFFICE OF LAYYAH Sugar
Mills Limited KARACHI. I learnt a lot about the practical business and above all, the mental
discipline and awareness, which are the most useful tools for an executive to raise the
organizational structure.
ACKNOWLEDGEMENT
First of all, I want to express all and thanks to ALMIGHTY ALLAH whose blessings are above
each and every thing which make me able to present my tiny effort. All prays toHAZRAT
MUHAMMAD (PBUH)who is the reason for creation of the universe and whose kindness came
to my part.
Secondly on the successful completion of my internship program, I whish to express my
gratitude and heart worthy acknowledgement to my professors for full co-operation and helped
me in completing this report. I feel utmost pride in acknowledging with sincere gratitude for the
valuable guidance I have received from Mr. Hassan buchas and Mr.zubair.
They have been a constant source of enthusiastic encouragement through out the internship
program. Due to their guidance I have become able to complete internship as well as this report.
Their advice, criticism and remarks were of the most value to me.
Itsshare in the large scale industryis 18% and in GDP is 1.9%.sugar industry contribution to the
government exchequer in Federal excise duty is 11.2%.
HISTORY
The sugar industry, which is endowed with a strong base of sugarcane, had started its journey
from almost non-existence in 1947. The industry has gone through a long way and now
possesses 77 sugar mills in all over the country. The Sugar industry not only fulfills the entire
local requirement but also sharing out the total foreign exchange earning.
At present Pakistans sugar industry is facing lot of problems like lesser demand of sugar in the
country due to recession in the economy, declining prices into the domestic as well as
international markets & huge unsold stock of sugar. Government role in R & D for developing
the sugarcane varieties is not very significance; only few private institutions are doing some
research in R & D in developing various varieties with higher yield.
Pakistan sugar industries still have 34% un-utilized capacity. Which can be utilized by further
developing the 13224 hectares area along the main feeder canal from Indus river in Sindh. By
which we can increase our export to 50000 ton. ( this export to Arab World can be exchange of
half million barrels of crude oil for Pakistan.
In Pakistan present sugar cane varieties are not yielding reasonable production and led to the
prevailing sugar crisis. As described by the table.
Countries
1989-92
1993-97
1998-2002
USA
77.44
76.80
75.19
Mauritius
70.33
72.83
71.39
India
66.06
64.14
70.30
Brazil
62.02
61074
67.42
Pakistan
41.55
43.38
43.54
Cuba
59.98
57.04
34.83
BRIEF INTRODUCTION
INCORPORATION
LAYYAH Sugar Mills Limited was incorporated on May 26, 1954 as a public limited
company. The authorized capital of the share of the company was Rs.350, 000,000/-.Uder
the policy of privatization of Govt. of Pakistan under the supervision of Prime Minister
Mian Nawaz Sharif, the Layyah Sugar Mills was privatized in May 1992 with the net
amount of RS.150,00,000 and an agreement of fulfilling the liabilities of the sugar mill for
the compensation of its accounts to the employees and other stakeholders. The previous
sponsor of the company could not manage to setup the project and finally on intervention of
the BEL shares.
The management of the project was transferred to the new sponsors in 1992. The mill is
spread over the area of 250 acres land.
OBJECTIVES
Following are the objectives of company.
1. Total quality focus to meet customers requirements.
2. The highest standard of business ethics.
3. To care on the business ethics.
4. To carry on the business at best possible level.
5. To guarantee performance of contracts by members or persons having dealing with the
company.
Organizational Structure/Hierarchy
HEAD OFFICE:
GULSHAN LAHORE
MANAGEMENT PROFILE
Chairman
Chief Executive
Managing Director
Director finance
Director (HRD&P)
Manager(HRD&P)
Auditors:
Legal Advisors:
Mr. Muneeb Akhter Advocate
A.K.Brohi & co.
Banks
NATURE OF BUSINESS
Crushing of Sugarcane & Raw Sugar in to White Refined Sugar.
LOCATION
LAYYAH Sugar Mills Limited is located at distance of about 3 KM from the city of
Layyah.
HEAD OFFICE
Head Office of LAYYAH Sugar Mills Limited is located at Fazal Manzil, Gulshan Lahore.
FINANCIAL YEAR
The financial year of the company is from 1st October to 30th September.
RAW MATERIAL
The main raw material for the mill is sugarcane, which is abundantly available in Pakistan.
The second raw material is Baggas. Some of which is obtained by the own crushing the other
will be purchased by the Beggas Venders/Suppliers.
MAIN COMPETITORS
WORK FORCE
Detail of total working force at site and at head office is as under:
AT SITE
Permanent Employees
457
Temporary Employees
150
Seasonal Employees
400 (app.)
40
Total
1047
AT HEAD OFFICE
Permanent employees
25
Temporary Employees
Total
30
MAIN DEPARTMENTS
Following are the main departments at Site and at Head Office.
AT SITE
1. MECHANICAL
2. ELECTRICAL
3. CHEMICAL
4. CANE
5. ACCOUNTS
6. COMPUTER
7. ADMINISTRATION
AT HEAD OFFICE
1. FINANCE
2. ACCOUNTS
3. ADMINISTRATION
4. PURCHASE
5. SALE
ADMIN DEPARTMENT
Admin department is the department, which is dealing matters about administration. This
department plays very important role for maintaining discipline in the mills. Admin department
is working under Admin Officer, who has much more experience about administration matters.
FUNCTIONS
The main function of this department is to handle all the administrative matters and maintaining
discipline. The main goal of this department is to provide easy working environment. This is
very important department of the organization as the name shows; this department has to
administrate all the operations of the organization. Sections of this department are divided into
offices as under:
Gate Office
Time Office
Labor Office
GATE OFFICE
This office has been made to keep the record of each and every thing coming into and going out
of the mills gate.
For this purpose gate office clerk maintains two types of registers called;
1. Outward going pass register
2. Inward going pass register.
When every thing including raw material, stores supplies, or any other thing comes into the mills
premises a document named as I.G.P is made in which information like date of supplier,
description, quantity of the material and any other remarks are written. In the same way, O.G.P is
prepared for out going things etc.
TIME OFFICE
This office keeps and maintains the time record of all the workers on time cards and
pay register for the final costing of the workers salaries.
It keeps the attendance records, which is than used to calculate the salary to be paid
to the workers on monthly basis.
It keeps the records of the over time, leaves, number of days worked of all the
workers and than calculate their over time on the basis of the basic salary of each
worker.
It keeps the records of Social Security, EOBI, Education Cases etc. of each employee
/ worker payable to government treasury.
It keeps the records of Gratuity, Bonus, Pensions and other benefits including CPL (Cash Paid
Leave) to each employee / worker of the organization.
No out side visitor can come into the mills premises without the permission of the
security guards.
Whenever any visitor wants to enter into the mill, security guards firstly contact with
the authority in the mill to grant the permission to enter into the mill premises.
Security guards can check each and every person before coming in or going out of the
company gate for the security purposes.
They see and check the outward going pass of the certain things when these ought to
bring out of the mill premises.
It is the duty of the Manager (HRD&P) to inform the legal requirements concerning the
labor and company affairs.
It is also the duty of the Manager (HRD&P) to satisfy himself regarding payment of
bonus, gratuity, and other benefits to labor and to keep their morale and motivational
level high.
It is also a requirement to be a successful Manager (HRD&P) that he should keep his
knowledge up to date regarding the rules and regulations of the labor department.
Manager (HRD&P) is responsible for the implementation of the strategies and rules made
by the higher authorities.
Manager (HRD&P) also helps the higher authorities in strategic decision-making.
Career Management
Career planning and development are relatively new concepts in many
HR departments. In recent years, these departments have begun to recognize the need for more
proactive career-related efforts. As a result, some departments provide career education,
information, and counseling. However, the primary responsibility for career planning and
development rests with the individual employee.
The planning process enables employees to identify career goals and the paths to those goals.
Then, through developmental activities, the workers seek ways to improve themselves and
further their career goals. Even today, most developmental activities are individual and
voluntary. Individual efforts include good job performance, favorable exposure, leveraging, and
the building of alliance. The HR department becomes involved by providing information and
obtaining management support to help make career planning a success for both the employees
and the organization.
Career planning does not guarantee success, but without it, employees are seldom ready for the
career opportunities that arise. As a result, their career progress may be slowed and the HR
department may be unable to fill openings internally.
(Career
CareerPaths)
Planning
Career Goals
Career
Development
(Feedback)
Provides base for the job orientation that ultimately help in career management.
It helps to reduce reality shock that ultimately minimize the turn over ratio
HR department provides career information that is career path and job description and
specification of each job by using the job analysis.
It provides information for future training and development of the employee to each his or
her career goals.
Organization view
Layyah Sugar Mills considers the job analysis. In orientation for career information, to
HR Planning
It is a systematically forecasting of an organizations future demand for and supply of
employees. It integrates strategic demands with appropriate staffing levels and also helps
in improving the utilization of human resources. To match HR activities and future
organizational objectives efficiently and to achieve economies in hiring new workers
Most of the organizations are using the tools of HR planning. HR planning helps in
making major demands of local markets successfully. In coordinate different HR
programs such as affirmative action plans and hiring needs. Different forecasting
techniques are used to predict the future demand and supply of employees.
It helps in short range and long range plans that outline the future demands and sources of
supply. Tight market is the indication of strong career development and loose market is the
indication of weak career management.
HRP helps the organization to manage the training and development program for career
development of the employees
It helps supervisor during career counseling.
It helps employees to set goals and career planning.
It provides information for future training and development of the employee to each his or
her career goals.
It helps in career development action of the employees
It is the basic requirement of succession planning.
Organization view
Layyah Sugar Mills is considering HRP once in a year but not considering the succession
Employees view
First level employees: yes they are conducting the HRP but we think it is not helping us
in our career development.
Middle level employees: They are agreed with above arguments of first level
employees.
Upper level employees: same thinking as above two.
Recruitment is the process of finding and attracting capable applicants to apply for employment.
Although operating managers are often involved, much of the recruitment process is the
responsibility of professionals in the HR department; these professionals are called recruiters.
Recruiters should be aware of the constraints and challenges surrounding the recruitment process
before they attempt to find suitable applicants.
Recruiters pursue applicants through a variety of channels. Although walk-ins and write-ins are
a common source, the growing diversity in the workforce and changing demographics often
require recruiters to be more proactive. Employee referrals and advertisements are other sources.
To help recruiters, a variety of public and private organizations exists, such as state
unemployment offices, private placement agencies, and search firms. Many institutions
schools, labour organizations, professional associations, military facilities, government and
community training programsalso provide placement assistance that recruiters can access.
Temporary, leased, and departing employees are other sources of potential recruits.
International recruitment faces many of the same issues as domestic staffing except that the
issues are often far more complex regardless of whether the recruiter seeks to bring someone to
the home country or send that person overseas. Of particular importance, recruiters must be
aware of national differences in recruitment practices and employee expectations.
The selection process depends heavily on inputs such as job analysis, HR plans, and recruitment.
These inputs are used within the context of challenges posed by organizational policies, equal
employment laws, Immigration and Naturalization Service rules, a slow-growing supply of
labour, credential distortion, and other legal concerns faced by the organization.
The key challenge that underlies the entire selection process is to ensure that the steps in the
process are valid. In all phases of the selection process, HR professionals also must be
concerned about the potential for an adverse impact during the various steps of the process.
Even when the overall selection process does not have an adverse impact on members of
protected classes, evidence of a discriminatory impact at any stage of the process should be
investigated and the discrimination should be eliminated wherever it is found.
appropriate employee for an appropriate job so that the turn over ratio can be minimized
which ultimately helps in good career development.
Organization view
Layyah Sugar Mills has a comprehensive setup for recruitment and selection. Different
techniques like job interview, old job performance, panel interviews etc.
References are also obliged.
Employees view
First level employees: No, they only make recruitments on the references.
Middle level employees: They are satisfied with organization effort.
Upper level employees: they think that professional approaches should be followed.
Orientation helps in making the employees able to set their career path and career
development.
Placement helps the employee to achieve their career goals and also helps to reduce the
stalled career.
Placement is also an important source of increase the motivation and loyalty of the
employees.
Organization view
Layyah Sugar Mills is completely fulfilling the above defined goals of placement and
orientation.
Employees view
First level employees: No, they think that placement decisions are made on the
favouratism and personnel influences and we did not get any orientation.
Middle level employees: They are satisfied with organization effort.
Upper level employees: orientation and placement efforts are appropriate.
Organization view
Layyah Sugar Mills is providing their employees training through different programs but
most of the techniques used are on the job. Off the job training is somewhat applies to the
higher level management and mechanical staff.
Employees view
First level employees: yes. They are providing but up to some extent. Because for
training and development is not merit basis & there is no procedure for the off the job
training.
Middle level employees: No, organization is not providing good opportunities for
training and development. They are not satisfied with organization effort.
Upper level employees: they think that organization is not following a professional
approach. They are providing us training for only the existing jobs not for the future
career.
Performance Appraisal
Performance appraisal is a critical activity of HR management. Its goal is to provide an accurate
picture of past and / or future employee performance. To achieve this, performance standards
are established. The standards are based on the job-related criteria that best determine successful
job performance. Where possible, actual performance is measured directly and objectively.
Form a wide variety of appraisal techniques; specialists select the methods that most effectively
measure employee performance against the previously set standards. Techniques can be selected
both to review past performance and to anticipate performance in the future.
The appraisal process is usually designed by the HR department, often with little input from
other parts of the organization. When it is time to implement a new appraisal approach, those
who do the rating may have little idea about the appraisal process or its objectives. To overcome
this shortcoming, the HR department may design and conduct appraisal workshops to train
managers.
what has been done to improve the performance of a person last year?
and what can be done to improve his or her performance in the year to come?).
2. To identify potential, i.e. to recognize existing talent and to use that to fill vacancies higher
in the organization or to transfer individuals into jobs where better use can be made of their
abilities or developing skills.
3. To provide an equitable method of linking payment to performance where there are no
numerical criteria (often this salary performance review takes place about three months later and
is kept quite separate from 1. and 2. but is based on the same assessment).
You can set the targets and standard which becomes the first step for the career
development.
Organization view
Layyah Sugar Mills strongly applies performance appraisal but there are chances of error
bias as halo effect, the affect of central tendency etc.
Employees view
First level employees: performance appraisal does not measure the actual performance
efficiency. It is not sensitive.
Middle level employees: Same as first level employees.
Upper level employees: Same as first level employees.
MOLASSES:
THIS IS A BY-PRODUCT AND IT IS SOLD TO MOLASSES CONTRACTORS. ONE OF
THE ALLIED CONCERN, RELIANCE COMMODITIES (PVT.) LIMITED IS THE MAIN
BUYER OF THE MOLASSES OF LAYYAH SUGAR MILLS LIMITED AND ALSO THE
MAIN BUYER OF MOLASSES FROM WHOLE THE COUNTRY.RELIANCE
COMMODITIES (PVT) LIMITED IS THE MAIN EXPORTER OF MOLASSES IN
PAKISTAN. Molasses may be used for the production of power alcohol acid portable spirits.
BAGGAS:
This is also a by-product of the company. Begass is used as source of energy fuel for sugar
industry for juice heating. and also used for making medium density fiber board (MDFB).
baggasse is sold to the baggasse contractors.
MUD:
Mud is also the by-product of the company. It is sold to the Mud Contractors.
This is used in making chocolates and other products.
PRESS CAKE:
Press cake of sulphitation factories are used as manure and that of carbonation factories are
usually burnt.
Purchase Section:
This is a section comprising of following staff authorized in the purchase of the mill. It function
of establishment under the manager(P&A).It should be operative at all times.
a.Purchaser
b.Purchase clerk.
Purchase Committee:
All purchases at site will be processed through the purchase committee constituted as under and
as procedure given in the subsequent pars:A .Manager(P&A)
President
b. Purchaser
Member
There are following document are used for purchasing.
Preparation of Salary:
After checking and understanding these document my second work understanding the prepation
of salary sheet of Employees and workers.
I site under the instructions of CH. Muhammad Shrief (Assistant accountant) of finance
department he deals all types of salary and wages payments his responsibilities are verify the
salary, Bonus , increment semi contractual payments, incentive payments, overtime payments,
commission payments, , maintaining , Record keeping and salary preparation they give a specific
code is given of all workers and Employees in Salary system. Salary of preparation of worker in
monthly basis daily basis and permanently.
Swot Analysis
Strengths:
Weaknesses:
ISO 9001-2000
Strong
Security System
Threats:
New Entry of competitors
Buyer needs demands changes
Opportunity:
Organization can expand product lines
Organization can capture new market
segments around the world
Organization can reduce the cost by proper
utilization of resources
Organization can hire more well-educated
and experienced person
Political instability
Change of government policies
Globally Economic instability
Weaknesses:
High cost of production
The production cost is high because of un-proper utilization of resources.
Centralized decision
The decisions
are made by the upper management which is weakness of the TSML because they have not any
proper idea about the prevailing situation and their decision can be un-fruitful for the company.
Less promotional activities
The advertising and promotional cost of the TSML is very low it can take advantage for more
turn outs.
Opportunity:
Organization can expand Product Lines
Currently the TSML is not dealing in knitwear they can expand their product line by producing
knitwear. They have plants and the extra cost for the production will be low for TSML. They
also have better market repute. Organization can reduce the cost by proper utilization of
resources
If the cost of different matters which are not been utilized properly, is controlled by the TSML
management they can produce more at less costs. It has to develop a further systematic process
for controlling and managing resources. Organization can hire more well-educated and
experienced person
They can take advantages by hiring more skilled people and they should hire young, fresh and
energetic staff for their betterment. Because being human, you always have the room for
betterment in any aspect.
Threats:
Buyer needs demands changes
Because of the research & development the design and the product of TSML is just satisfactory
as compared to competitors in the global environment and they are not fulfilling the demand of
customers.
Political instability
Political instability effects the TSML because of the quota system, Government can restrict the
Company to export.
2012
2011
2010
(Rupees)
(Rupees)
(Rupees)
Sales net
3,411,565,014
1,759,464,907
10,169,643,067
Cost of Sales
(3,297,723,232)
(6,321,536,026)
(8,198,139,512)
Gross Profit
113,841,782
1,437,928,881
1,971,503,548
Administrative expenses
(132,750,067)
(230,802,608)
(217,941,368)
Distribution expenses
(68,724,823)
(101,795,692)
(14,782,628)
(49,087,460)
(
42,948,004)
Other income
8,985,603
6,415,460
12,966,457
78,647,505
1,096,963,593
1,074,493,180
Finance cost
228,858,942
(579,568,423)
(495,006,341)
(307,506,447)
517,395,170
579,486,839
Taxation
(34,115,650)
(22,839,391)
(249,966,073)
(341,622,097)
494,555,779
4.20
329,520,766
2.80
2.90
Description
2012
2011
2010
(Rupees)
(Rupees)
(Rupees)
250,000,000
250,000,000
250,000,000
316,806,110
249,316,200
249,316,200
195,924,370
87,833,960
64,769,085
512,730,480
337,150,160
314,085,285
157,385,117
119,947,682
172,260,716
Authorized Capital
Reserves
217,687,106
Liabilities against assets subject to
finance lease
21,312,243
1,979,967
150,306,451
156,817,139
14,583,670
10,252,724
9,153,753
412,948,103
160,559,175
165,970,892
63,652,804
103,762,750
59,249,073
401,798,075
50,000,000
135,717,625
95,341,580
130,905,297
5,277,193
5,605,016
5,499,228
CURRENT LIABILITIES
606,445,697
204,709,346
245,653,598
1,532,124,280
822,366,363
897,970,491
2012
2011
2010
701,780,814
736,729,740
701780814
736,729,740
As at 30 September 2012
ASSETS
(Rupees)
FIXED ASSETS
106,514,257
784,042,729
97,008,369
5,759,175
-
2,418,360
46,966,518
44,906,112
501,427
39.155,187
160,258,350
68,772,933
38,596,711
108,268,975
43,44,771
36,164,381
645,314,007
120,585,649
161240751
1,532,124,280
822,366,363
897,970,491
CURRENT ASSETS
Stock in trade
68,945,553
302,147,129
other receivables
Ratio analysis
Current ratio
Operating ratio
Debt ratio
2010
341,622,097
494,555,779
329,520,766
Net sales
3,411,565,014
1,759,464,907
10,169,643,067
10.01%
28.10%
3.24%
Explanation
In 2010 profit observed is 3.24%. In 2011 profit decreasing trend is observed and
the profit goes down to 28.10%. In 2012 increasing trend is observed and the Loss
rose to 10.01%.
2. Liquidity ratio:
Current Ratio: Current Assets / Current Liabilities.
Description
2012
2011
2010
Current Assets
1,299,627,994
120,585,649
161,240,751
Current Liabilities
606,445,697
204,709,346
245,653,598
Current ratio
2.14
0.59
0.66
Explanation
Current ratio show the size of the current assets as compare to current liabilities. It
measures the ability of the company to pay the short term financial obligation of
the company. I t is best if it is 1.5:1. It means it the assets are 1.5 as compare to
liabilities
In 2010 current ratio is 0.66 which less 1. This is very good relationship between
the assets and liabilities. It should be 1.5:1 minimum. In 2011 current ratio is 0.59
which is less than one. This is an alarming situation for the company because it can
increasing. In 2012 decreasing trend is observed and the current ratio decrease to
2, 14. It also the more alarming situation for the company because it could be
decrease continuously.
2010
Total current
Assets
1,299,627,994
120,585,649
161,240,751
No of equity
shares
250,000,000
250,000,000
250,000,000
0.48
0.64
Explanation.
In 2010, 0.64 rupees is earned by one share. The company remains in profit if one
share is purchased for one rupee. In 2011 slight decreasing trend is observed once
share can earn 0.48 rupees. In 2012 decreasing trend is observed and one share can
earn 5.20 rupees.
5.Account receivable turnover ratio
Operating cost/ operating revenue x 1oo
Description
2012
2011
2010
Total sales
3,411,565,014
1,759,464,907
10,169,643,067
Account reciveable
turnover
609,077
594,396
449,220
Account reciveable
turnover
30.41
24.77
24.37
Explanation
A/R turnover means how many times our account receivables are converted into
cash in one year.In 2010 24.37 times our accounts receivables are converted into
cash. In 2011 increasing trend sis observed due to the increase in accounts
receivables 24.77 times our accounts receivables are converted in cash. In 2012
slight increasing trend is observed 30.41 times our accounts receivables are
converted into cash.
2012
2011
2010
341,622,097
494,555,779
329,520,766
Equity capital
512,730,480
337,150,160
314,085,285
66.62%
146.68%
104.91%
Explanation
In2010 return on equity capital ratio is 104.91% in 2011increasing trend observed
and the ratio rose up to 146.68% But in 2012 decreasing tren is observed and ratio
falls to 66.62%.
7. Operating ratio
Operating costs / operating revenue x 100
Description
2012
2011
2010
Operating costs
201,474,890
332,598,300
267,028,828
Operating revenue
307,506,447
517,395,170
579,486,839
Operating ratio
65.51%
64.28%
46.08%
Explanation
Operating ratio is the determination between the operating expense and
operating income of the year.In 2010 Operating ratio observed is 65.51%. In 2011
profit increasing trend is observed and the Operating ratio rose up to 64.28%. In
2012 Operating ratio decreasing trend is observed and the Operating ratio rose
up on 65.51%.
2012
2011
2010
Operating profit
307,506,447
517,395,170
579,486,839
Net sales
3,411,565,014
1,759,464,907
10,169,643,067
9.01%
29.40%
5.69%
Explanation
Operating profit ratio is that ratio in which we find the total operating profit of
the following years In 2010 Operating profit ratio observed is 5.69%. In 2011
profit decreasing trend is observed and the Operating profit ratio rose to 29.40%.
In 2012 alarming stage for the company that the Operating profit decreasing and
the ratio observed 9.01%.
9. Activity ratio
Sales / total assets
Description
2012
2011
2010
Net sales
3,411,565,014
1,769,464,907
10,169,643,067
Total assets
1,532,124,280
822,366,363
897,970,491
2.22%
2.15%
11.32%
Explanation
Activity ratio includes the total assets turnover ratio. In this ratio we find the
turnover of total assets for the number of the years. In 2010 the assets turnover
ratio is 11.32%. in 2011 decreasing trend observed and the ratio rose up to 2.l5%
in 2012 it also the in creasing trend and ratio more rose up to 2.22%.
10.Debt equity ratio
Long term liabilities /Total assets x100
Description
2012
2011
2010
63,652,804
103,762,750
59,249,073
Total assets
1,532,124,280
822,366,363
897,970,491
Debt ratio
4.15%
12.61%
6.59%
Explanation
Debt ratio also called the debt equity ratio in this ratio we calculate the
percentage changes of total assets and long term liabilities
In 2010 the debt ratio is 6.59%. In 2011 increasing trend observed and the ratio
goes up to 12.61% in 2012 it also the decreasing trend and ratio more goes down
to 4.15%.
2012
2011
2010
Total liabilities
1,019,393,800
365,268,521
411,624,490
Total assets
1,532,124,280
822,366,363
897,970,491
66.53%
44.41%
45.83%
Explanation
Debt to asset ratio also called the debt asset ratio in this ratio we calculate the
percentage changes of total assets and total liabilities of the following years.
In 2010 the debt to asset ratio is 45.83%. In 2011 decreasing trend observed and
the ratio goes down to 44.41% in 2012 increasing trend observed and ratio rose
up to 66.53%.
12. Operating expenses ratio
Operating expenses / Net sale x 100
Description
2012
2011
2010
Operating expenses
201,474,890
347,380,928
309,976,832
Net sales
3,411,565,014
1,759,464,907
10,169,643,067
Operating expenses
ratio
5.90%
19.74%
3.04%
Explanation
Operating expense ratio is that ratio in which we find the total operating
expenses of the following number of years In 2010 Operating profit ratio
observed is 3.04%. In 2011 profit increasing trend is observed and the Operating
expense ratio rose up to 19.74%. In 2012 the Operating expense ratio decreasing
and the ratio observed is 5.90%.
13.Return on total assets
Net profit after tax / Total assets x100
Description
2012
2011
2010
341,622,097
494,555,779
329,520,766
Total assets
1,532,124,280
822,366,363
897,970,491
Operating ratio
22.29%
60.13%
%36.69
Explanation
Return on total asset means that we find the relation of net profit and total assets
of the years.
In 2010 the return on asset ratio is 36.69%. In 2011 increasing trend observed and
the ratio rose up to the 60.13% in 2012 decreasing trend observed and ratio goes
down to 22.29%.
Horizontal Analysis:
Formula. Individual year/Base year x 100
Horizontal analysis of the profit and loss Account:
Description
2012
2011
2010
Sales
33.54%
17.30%
100%
cost of sales
402.25%
77.10%
100%
gross profit
5.77%
72.93%
100%
Distribution cost
140.00%
207.37%
100%
administrative expenses
60.91%
105.90%
100%
0%
34.41%
69.29%
49.47%
100%
7.31%
102.09%
100%
finance cost
46.23%
117.08%
100%
100%
53.6%
89.28%
100%
103.67%
9.13%
100%
103.67%
150.08%
100%
HORIZANTAL ANALYSIS:
BALANCE SHEET:
ASSETS
2012
2011
2010
91.96%
95.25%
100%
Total
91.96%
95.25%
100%
153.53%
104.58%
100%
Stock in trade
771.66%
1.28%
100%
Trade debts
235.44%
100%
Advance,deposit,prepayment
415.21%
178.18%
100%
178.43%
12.01%
100%
Currents Assets
Total
170.62%
91.58%
100
126.37%
69.63%
100%
Deferred liability
159.31%
112%
100%
Total
248.80%
96.73%
100%
107.43%
175.12%
100%
80.35%
100%
Creditor
103.67%
72.83%
100%
95.96%
101.92%
100%
Total
246.87%
83.33%
100%
127.07%
100%
100%
Reserves
223.06%
135.61%
100%
Total equity
163.24%
107.34%
100%
170.62%
91.58%
100
LIABLITIES:
Non Current Liabilities:
Current Liabilities:
2012
2011
2010
Sale
100%
100%
100%
Cost of sale
96.67%
18.27%
80.61%
Gross profit
3.33%
81.73%
19.39%
Distribution cost
2.01%
5.79%
0.50%
Administrative cost
3.89%
13.1%
2.14%
8.40%
0.42%
0.26%
0.36%
0.13%
2.30%
62.34%
10.56%
Finance cost
6.70%
32.94%
4.86%
9.01%
29.40%
5.69%
0.1%
0.98%
0.90%
10%
28.10%
3.24%
BALANCE SHEET:
As at June 30:
ASSETS
2012
2011
2010
Rupees in
thousands
Rupees in
Rupees in
thousands
44.22%
85.33%
82.04%
6.95%
6.33%
0.37%
Total
57.88%
85.33%
82.04%
4.49%
5.71%
5%
Stock in trade
19.72%
0.06%
43.61%
Trade debts
0.37%
0%
0.26%
Advance deposit
10.45%
8.36%
4.29%
thousands
Current Assets
7.06%
0.52%
4.02%
Total
42.12%
14.67%
17.96%
Total Assets
100%
100%
100%
14.20%
14.58%
19.18%
1.39%
0%
0%
10.27
0%
0%
0.12%
18.27%
17.46
Deferred liability
0.95%
1.24%
1.02
Total
26.95%
34.10%
37.66%
Current maturity
4.15%
12.61%
6.59%
26.22%
0%
5.56%
Creditor
8.85%
11.59%
14.57%
0.34%
0.68%
0.61%
Total
39.59%
24.89%
27.35%
LIABLITIES:
NON CURRENT LIABLITIES:
CURRENT LIBILTY:
20.67%
30.32%
27.76%
12.78%
10.68%
7.21%
Total equity
33.46%
41%
34.97%
100%
100%
100%
Reserves
Chapter 7
Conclusion
There should be a safety department in the company to assure the safety of the workers. Balance should be at a
distance of 5 kilo-meters from the cutters
There should be card system for every employee from helper to manager for punctuality.
There should be a high school and a college as well for boys and girls in the factory area.
Chapter 8
RECOMMENDATIONS
Tandlianwala Sugar Mills Limited:
The first and most recommendation is to exclude one man show most frequent in the company
There must be a right system for training of employees and supervisors.
Importance should be given to employees to give up.
Different training courses should be arranged for the up lifting and improving the quality of work
for employees.
There is also a problem of work to fill with too much of something for the employees and it should
be control rightly so that the employees are motivated. As I have seen employees working till 24
hours in 3 shifts.
Employees should be paid extra for the work which they do after working
hours