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PREFACE

This report describes the effort made by me for the learning by first hand practical experience
about a business organization. Today is the era of experience as is said by quotation Experience
makes a man perfect. No body can deny the importance of practical training and experience.
Through internship students get the first touch of professional exposure of the roles; they have to
play during their professional careers. The students not only acclimatize themselves to the
corporate environment but also learn to assume responsibility, co-operation and teamwork the
hallmarks of modern management.
Having experience of sugar industry is really a good experience for me. I am submitting all my
experiences. No doubt, omissions and errors are expected but it is requested to ignore the
nominal errors.
I was lucky enough to have a chance of doing internship in HEAD OFFICE OF LAYYAH Sugar
Mills Limited KARACHI. I learnt a lot about the practical business and above all, the mental
discipline and awareness, which are the most useful tools for an executive to raise the
organizational structure.

ACKNOWLEDGEMENT

First of all, I want to express all and thanks to ALMIGHTY ALLAH whose blessings are above
each and every thing which make me able to present my tiny effort. All prays toHAZRAT
MUHAMMAD (PBUH)who is the reason for creation of the universe and whose kindness came
to my part.
Secondly on the successful completion of my internship program, I whish to express my
gratitude and heart worthy acknowledgement to my professors for full co-operation and helped
me in completing this report. I feel utmost pride in acknowledging with sincere gratitude for the
valuable guidance I have received from Mr. Hassan buchas and Mr.zubair.
They have been a constant source of enthusiastic encouragement through out the internship
program. Due to their guidance I have become able to complete internship as well as this report.
Their advice, criticism and remarks were of the most value to me.

GROWTH OF SUGAR INDUSTRY IN PAKISTAN


Sugar is the important sector of the Pakistans economy. Sugar industry plays a vital role for
development of any countrys economy. In Pakistan this industry play a significant role for
economic development.

Itsshare in the large scale industryis 18% and in GDP is 1.9%.sugar industry contribution to the
government exchequer in Federal excise duty is 11.2%.

HISTORY
The sugar industry, which is endowed with a strong base of sugarcane, had started its journey
from almost non-existence in 1947. The industry has gone through a long way and now
possesses 77 sugar mills in all over the country. The Sugar industry not only fulfills the entire
local requirement but also sharing out the total foreign exchange earning.
At present 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.

MISSION OF LAYYAH SUGAR MILLS LIMITED


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

OBJECTIVES
Following are the objectives of company.
1. Total quality focus to meet 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

MIAN FAZAL HUSSAIN


MR. JAHANZAIB FAZAL

Managing Director

Mr. RAISUDDINE SHAIKH

Director finance

Mr. Bashir Ahmed

Director (HRD&P)

Mr. Noor Ahmed Zaib

Manager(HRD&P)

Mr. AKHLAQUE KHAN

General Manager (f)

Mr. Ghulam Hassan shigri

General Manager (plant)

Mr. Mohabbat Ali Khan

Auditors:

Mr. Nouman Mehmood, FCA


Avais Hyder Zaman Rizwani

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

Muslim Commercial Bank Limited


National Bank of Pakistan
Habib Bank of Pakistan

NATURE OF BUSINESS
Crushing of Sugarcane & Raw Sugar in to White Refined Sugar.
LOCATION
LAYYAH Sugar Mills Limited is located at distance of about 3 KM from the city of
Layyah.
HEAD OFFICE
Head Office of LAYYAH Sugar Mills Limited is located at Fazal Manzil, Gulshan Lahore.
FINANCIAL YEAR
The financial year of the company is from 1st October to 30th September.
RAW MATERIAL
The main raw material for the mill is sugarcane, which is abundantly available in Pakistan.

The second raw material is Baggas. Some of which is obtained by the own crushing the other
will be purchased by the Beggas Venders/Suppliers.

MAIN COMPETITORS

Sheikhoo Sugar Mills kot Adu

Fatima Sugar Mills Sanawan

Bhukar Sugar Mills Bhukar

Khan Sugar Mills Faisal Abad

Sharif Sugar Mills Mian Chunnu

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

AT SITE
Permanent Employees

457

Temporary Employees

150

Seasonal Employees

400 (app.)

Daily Wages Employees

40

Total

1047

AT HEAD OFFICE
Permanent employees

25

Temporary Employees

Total

30

MAIN DEPARTMENTS
Following are the main departments at Site and at Head Office.
AT SITE
1. MECHANICAL
2. ELECTRICAL
3. CHEMICAL
4. CANE
5. ACCOUNTS
6. COMPUTER
7. ADMINISTRATION

AT HEAD OFFICE

1. FINANCE
2. ACCOUNTS
3. ADMINISTRATION
4. PURCHASE
5. SALE

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

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

Gate Office

Time Office

Security Guard Office

Labor Office

GATE OFFICE

This office has been made to keep the record of each and every thing coming into and going out
of the mills gate.
For this purpose gate office clerk maintains two types of registers called;
1. Outward going pass register
2. Inward going pass register.
When every thing including raw material, stores supplies, or any other thing comes into the mills
premises a document named as I.G.P is made in which information like date of supplier,
description, quantity of the material and any other remarks are written. In the same way, O.G.P is
prepared for out going things etc.

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

SECURITY GUARD OFFICE


The main objectives of the security office is to safe handling of the goods from / to the mill
premises. For the achievement of such objective a team of security guards has been employed by
the company. All the keys relating to the mills office, labor colony, (quarters) are lying into the
responsibility of the security officer.

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

Whenever any visitor wants to enter into the mill, security guards firstly contact with
the authority in the mill to grant the permission to enter into the mill premises.

Security guards can check each and every person before coming in or going out of the
company gate for the security purposes.

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

They are in uniforms of dark green color.

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


The organization also has purchased a human scanning security system, throughwhich the record
of each employee and visitor is maintained. This system has reduced the fair of any type of theft.
HUMAN RESOURCE DEPARTMENT.
As required by the labor laws of the Government of Pakistan, this office has been setup to deal
with all the matters that are related with labor and other human resources. The Manager
(HRD&P) is the head of the H.R.DEPT.
He is responsible to resolve all the disputes, conflicts, misunderstandings and any other
hind of matter, which may arise from time to time between the labor and the immediate
supervisor, or with any other person in the organization.

It is the duty of the Manager (HRD&P) to inform the legal requirements concerning the
labor and company affairs.
It is also the duty of the Manager (HRD&P) to satisfy himself regarding payment of
bonus, gratuity, and other benefits to labor and to keep their morale and motivational
level high.
It is also a requirement to be a successful Manager (HRD&P) that he should keep his
knowledge up to date regarding the rules and regulations of the labor department.
Manager (HRD&P) is responsible for the implementation of the strategies and rules made
by the higher authorities.
Manager (HRD&P) also helps the higher authorities in strategic decision-making.

Career Management
Career planning and development are relatively new concepts in many
HR departments. In recent years, these departments have begun to recognize the need for more
proactive career-related efforts. As a result, some departments provide career education,
information, and counseling. However, the primary responsibility for career planning and
development rests with the individual employee.
The planning process enables employees to identify career goals and the paths to those goals.
Then, through developmental activities, the workers seek ways to improve themselves and
further their career goals. Even today, most developmental activities are individual and
voluntary. Individual efforts include good job performance, favorable exposure, leveraging, and
the building of alliance. The HR department becomes involved by providing information and
obtaining management support to help make career planning a success for both the employees
and the organization.
Career planning does not guarantee success, but without it, employees are seldom ready for the
career opportunities that arise. As a result, their career progress may be slowed and the HR
department may be unable to fill openings internally.

A Systems view of Career Planning and Development

(Career
CareerPaths)
Planning

Career Goals

Career
Development

(Feedback)

Different terminologies which are commonly covered in career management


Career:
A career is all the jobs that are held during ones working life.
Career Path:
A career path is a sequential pattern of jobs that form ones career.
Career Goals:
The future positions one strives to reach as a part of career. These goals serve as a benchmarks
along ones career path.
Career Planning:
The process by which one selects career goals and the path to those goals.
Career Development:
Career development consists of personnel improvements one undertakes to achieve personnel
career plans.
Now we discuss the various human resource activities to the career management in our
organization.

Job Analysis and Design


Job analysis information provides the foundation for an organizations human resource
information system. Analysts seek to gain a general understanding of the organization and the
work it performs. Then they design job analysis questionnaires to collect specific data about
jobs, jobholder characteristics, and job performance standards. The job analysis information can
be collected through interviews, juries of experts, mail questionnaires, employee logs, direct
observation, or a combination of these techniques. Once collected, the data are converted into
such useful applications as job descriptions, job specifications and job standards.
Job analysis information is important because it tells HR specialists which duties and
responsibilities are associated with each job. This information is used when HR specialists
undertake HR management activities such as job design, recruiting, and selection. Jobs are the
link between organizations and their human resources. The combined accomplishment of every
job allows the organizations to meet its objectives. Similarly, jobs represent not only a source of
income to workers but also a means for fulfilling their needs. However, for the organization and
its employees to receive these mutual benefits, jobs must provide a high quality of work life.
Achieving a high quality of work life requires jobs that are well designed. Effective job design
requires a trade-off between efficiency and behavioral elements. Efficiency elements stress
productivity; behavioral elements focus on employee needs. The role of managers and HR
specialists is to achieve a balance between these trade-offs. When jobs are underspecialized, job
designers may simplify a job by reducing the number of tasks. If jobs are overspecialized, they
must be expand or enriched.

Relative To Career Management

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

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

HR department provides career information that is career path and job description and
specification of each job by using the job analysis.

It helps supervisor during career counseling.

It helps employees to set goals and career planning.

It provides information for future training and development of the employee to each his or
her career goals.

It helps in career development action of the employees

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

reduce reality shock, career counseling and career development.


Employees view
First level employees: The orientation is not comprehensive and does not reduce the
reality shock completely. Organization is not providing career information properly.
Middle level employees: They are satisfied with organization effort.
Upper level employees: they think that professional approaches should be followed.

HR Planning
It is a systematically forecasting of an 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.

Relative To Career Management

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 and Selection

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

Steps in the Selection Process


The selection process must take recruits and put them through a series of steps to evaluate their
potential. These steps vary from organization to organization and from one job opening to
another. In general, the selection procedure relies on testing for many hourly jobs and on
interviews for virtually every opening that is to be filled. References and medical evaluations are
common aspects of the selection process of many employers.
The supervisors role should include participation in the selection process, usually through an
interview with job candidates. As a result of this participation, the supervisor is more likely to
be committed to the new workers success. Growing research evidence supports the use of
realistic job previews.
Once the hiring decision is made, the HRIS should be updated with detailed information about
the new hire. If the department uses valid procedures and ethical behaviors, it can make a
substantial contribution to the success of the employer and therefore the bottom line.

Relative To Career Management


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

appropriate employee for an appropriate job so that the turn over ratio can be minimized
which ultimately helps in good career development.

Organization view
Layyah Sugar Mills has a comprehensive setup for recruitment and selection. Different
techniques like job interview, old job performance, panel interviews etc.
References are also obliged.

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 And Placement


Once the selection process has been completed, new employees must be oriented in order to
become productive contributors. Orientation not only improves the rate at which employees are
able to perform their jobs but also helps employees satisfy their personal desire to feel they are
part of the organizations social fabric. The HR department generally orients newcomers to
broad organizational issues and fringe benefits. Supervisors complete the orientation by
introducing new employees to coworkers and others involved in the job. A buddy may be
assigned to continue the process.
Proactive HR departments follow up after the orientation to ensure that the employees do not
have any remaining questions and check on the quality of the orientation.
When job openings are filled internally, the placement process also should include an
orientation, especially placement decisions that involve moving people across international
borders. The process of placing current employees in different jobs or separating them from the
organization often involves a decision made by line managers in consultation with the HR
department. Included here promotion, transfers, and demotion. Although promotions come
about in a variety of ways, they usually result from merit, seniority, self-nomination, or a
combination of those approaches. Transfers and demotions also call for the advice of the HR
department.

Relative To Career Management

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.

Training and Development


After workers have been selected and oriented, they may still lack the skills, knowledge, and
abilities needed to perform successfully. Most workers require some training to do their current
jobs properly. If the organization wishes to place these employees in more responsible positions
in the future, developmental activities also have to take place. For most workers and trainers,
individual learning sessions are a blend of training and development.
Most large organizations make available a broad array of educational opportunities. However,
trainers should conduct a needs assessment to determine if the training is truly needed and, if it is
needed, what it should cover. Training and development, or learning, objectives result from the
needs assessment. Trainers can plan the content of the course from these objectives and
incorporate as many learning principles as is feasible.
Merely conducting trainingeven when a careful needs assessment has been undertakenis
insufficient. Experienced trainers try to evaluate the impact of training and development
activities. Often this involves a pretest and a posttest and even follow-up studies to see if the
learning was transferred to the job.
HR development prepares individuals for future job responsibilities. At the same time, it
attempts to contend with employee obsolescence, international and domestic workforce diversity,
technological changes, affirmative action, and employee turnover.

Relative To Career Management


Training and development programs play a vital role in the career management of the
employees. It able employees to achieve their career goals and for career development. It

also helps in succession planning.

Organization view
Layyah Sugar Mills is providing their employees training through different programs but
most of the techniques used are on the job. Off the job training is somewhat applies to the
higher level management and mechanical staff.

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.

A necessary requirement of the appraisal process is employee feedback through an evaluation


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

1.To improve organizational performance via improving the performance of individual


contributors (should be an automatic process in the case of good managers, but (about
annually) two key questions should be posed:
o
o

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).

Relative To Career Management

provide feedback for career development action

it helps in placement decision on the basis of performance.

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

Made a standard routine task

it aids the development of talent

can be an effective form of motivation.

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

It describes the training and development needs.

Organization view
Layyah Sugar Mills strongly applies performance appraisal but there are chances of error
bias as halo effect, the affect of central tendency etc.

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.

PRODUCTS OF THE COMPANY


SUGAR INDUSTRY IS AN AGRO-BASED INDUSTRY, WHICH PROVIDES
EMPLOYMENT TO THE LANDLESS RURAL POPULATION AND HASE A GREATE
IMPECT ON THE ECONOMY OF A COUNTRY.
The main product of the company is White Refined Sugar.
The three principle bye-products of a sugar industry are
1. Bagasses
2. Molasses
3. PRESS CAKES (WHICH R ABOUT 40% OF THE WEIGHT OF TOTAL CANE
CRUSHED.)
4. MUD

WHITE REFINED SUGAR


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

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

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

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

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

PRACTICAL OF MY OWN WORK


I am worked in finance department in the section of store account. I learn about the different
document related to purchasing and payments through voucher ,work order ,inward gate pass,
inspection report ,store receiving note ,store requisition ,store return note.
This department started his work with Demand and Purchase.There three types of purchase is
given following.
1. Local purchase
2. Head office purchase
3. Work order purchase
The purchase of mill through the purchase section and purchase committee.

Purchase Section:
This is a section comprising of following staff authorized in the purchase of the mill. It function
of establishment under the manager(P&A).It should be operative at all times.
a.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.

Inward Gate Pass:


At the time the purchased a goods are brought to mill,the gate pass in charge will clerk quantity
and prepare three copies of inward gate pass.
a.Main store
First copy
b.Store Accounts
Second Copy
c. Gate Incharge
Third copy

Store inspection Report :


On arrival of the goods.Store Officer will check the quantity and quality of the goods as per
purchase indent.
The prepare of SIR within 48 hours and these signed by Head of Department.
A.Main store
first copy
B.Store Accounts
Second copy
C.Head of Department
Third copy
Store Receiving Note:
After inspection of goods store officer will prepare of store receiving note early mentioning on it.

Preparation of Salary:
After checking and understanding these document my second work understanding the prepation
of salary sheet of Employees and workers.
I site under the instructions of CH. Muhammad Shrief (Assistant accountant) of finance
department he deals all types of salary and wages payments his responsibilities are verify the
salary, Bonus , increment semi contractual payments, incentive payments, overtime payments,
commission payments, , maintaining , Record keeping and salary preparation they give a specific

code is given of all workers and Employees in Salary system. Salary of preparation of worker in
monthly basis daily basis and permanently.

Understanding and verify Bills:


I site under the instructions of Mr. Tanveer (Accountant) his responsibilities are:Verify all utility bills and general bills and send to head office
Monitor and signed all gate passes
Verify employee fuel and telephone bills
Verify companies vehicles, blue sky, petroleum bills
Verify company courier bills
Verify accessories and general purchase bills
, There are two main head of this system like GERNAL & Accessories. The first head is gernal
and manage the all gernal things such as furniture, stationary, and some other things.
I site under the instructions of different persons and I learn from senior officers about provisional
P & L account, and sales. In this last week I also collect the information
about the products of the company, customers and contacts of the company and conduct
SWOTanalysis, trend analysis, critical analysis, horizontal analysis, vertical analysis and ratio
analysis. After it I conduct conclusion and give suggestions for the benefit of the company.

Swot Analysis

Strengths:

Weaknesses:

ISO 9001-2000

High cost of production

Strong

Centralized decision making

Security System

Less promotional activities

High quality product


Latest mechanized machinery.
Tremendous market positioning
Highly qualified and skilled management
Highly Motivated Workforce
Adequate financial resources
Competitive advantage
Own power generation plant

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

Detail of SWOT Analysis


Strengths:
ISO 9001-2000:
TSML is certified under ISO 9001-2000 and so it meets the requirement of international standard
and has a value in the mind of concern people.
Strong Security System
TSML has a greater security system. There are different hidden security cameras which capture
all the moments.
Hh quality productig
TSML is using advance technology like they have modern machinery by which the quality of
product produced is very high.
Latest mechanized machinery.
They are using modern looms which they have purchased from Japan,Germany and France. And
by using that latest machinery the productivity of the employees are very high.
Tremendous market positioning
TSML is one of the Pioneer Sugar Group in the Pakistan so it has got the position in the mind of
its customer. And being an old sugar company people are loyal with it. TSML has a better
position in the mind of its customers.
Highly qualified and skilled management
The management of TSML is skilled they have hired the foreign graduate people in their
management and also experienced people from all over the country.
Highly Motivated Workforce
They are providing better pay to their employees and also bonus to them which motivate the
workforce and they are doing well at work setting. Apart from that they are giving their
employees facilities of Convenience like personal car along with fuel provided by the company
too, which is a big deal for motivating the employees.
Adequate financial resources
The owners of TSML are one of the richest persons of the Pakistan and they have more plant and
investment in other industries like Sugar Mills, and Share Market. They have adequate financial
resources to meet their requirements.
Competitive advantage
Because it is an old sugar originating from 1980s and it has still kept its position in the sugar
market on all competitors nationwide, which is its competitive advantage.
Own Power Generation Plant
They have own power generation plant and TSML is the pioneer in the private organization who
start the power generation.

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.

Changed of government policies


Government policies are changing day by day so it is always a threat for not only TSML but for
any company to survive in such a environment.

Globally Economic instability


Because of the economic instability the TSML and the Dumping system which is rising on
daily basis in the world can create many problems for the company and any uncertainty in the
world like 9/11 may also affect its overall exports.

Financial Statement Analysis of Organization


Tandlianwala sugar mill L.td(Unit Kanjwani)
Income statement
For the year ended Sep,30..

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)

Other operating expenses

(14,782,628)

(49,087,460)
(
42,948,004)

Other income

8,985,603

6,415,460

12,966,457

Profit from operations

78,647,505

1,096,963,593

1,074,493,180

Finance cost

228,858,942

(579,568,423)

(495,006,341)

Profit&Loss before taxation

(307,506,447)

517,395,170

579,486,839

Taxation

(34,115,650)

(22,839,391)

(249,966,073)

Profit&Loss after taxation

(341,622,097)

494,555,779
4.20

329,520,766
2.80

Profit &Loss per share

2.90

Description

Tandlianwala Sugar mills L.td (unit Kanjwani)


Balance Sheet
For the year ended Sep, 30.
LIABILITIES

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

SHARE CAPITAL AND RESERVES

Authorized Capital

35,000,000 (2003: 25,000,000)


Ordinary shares of Rs. 10/- each
Issued, Subscribed and Paid-Up
Capital
31, 680,611 (:2010-11. 24, 931, 620)
Ordinary shares of Rs.10/- each
fully paid in cash

Reserves

NON CURRENT LIABILITIES

Loans from Directors Unsecured

Long term loans Secured

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

Road cess payable

Other long term liabilities

Deferred liability Gratuity

CURRENT LIABILITIES

Current maturity of long term


Liabilities

Short term borrowings secured

Creditors, accrued and other


liabilities
Provision for taxation

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

Contingencies and Commitments

As at 30 September 2012

ASSETS
(Rupees)
FIXED ASSETS

Property, plant and equipment


677,528,472
Capital work in progress

106,514,257

784,042,729

LONG TERM ADVANCES


UNSECURED

97,008,369

LONG TERM DEPOSITS

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

Trade debtors - considered good


5,694,000

Stores and spares

Stock in trade

68,945,553

302,147,129

Advances, deposits, prepayments

other receivables

Cash and bank balances

Ratio analysis

Ratio analysis is a shortcut method of expressing relationships among various


items on the financial statements. However, ratios are not substitutes for looking
deeper into the financial position of company. In the analysis of Tandlianwala
sugar Mills L.td (Unit Kanjwani) we found the following ratios:

Net profit ratio

Current ratio

Earnings per share Ratio

Loan on assets ratio

Account receivable turnover ratio

Return on equity capital

Operating ratio

Operating profit ratio

Total assets turnover ratio

Debt ratio

Debt on asset ratio

Operating expenses ratio

Return on total assets


1. Profitability ratio:
Net profit ratio
Description

Net profit after tax / Net sales x 100


2012
2011

2010

Net profit& Loss after


tax

341,622,097

494,555,779

329,520,766

Net sales

3,411,565,014

1,759,464,907

10,169,643,067

Net profit ratio

10.01%

28.10%

3.24%

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.

3.Earnings per share Ratio:


Total current Assets / No of equity shares
Description
2012
2011

2010

Total current
Assets

1,299,627,994

120,585,649

161,240,751

No of equity
shares

250,000,000

250,000,000

250,000,000

0.48

0.64

Earnings per share 5.20

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.

6.Return on equity capital Ratio


Net profit after tax / equity capital x 100
Description

2012

2011

2010

Net profit after tax

341,622,097

494,555,779

329,520,766

Equity capital

512,730,480

337,150,160

314,085,285

Return on equity capital

66.62%

146.68%

104.91%

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%.

8. Operating profit ratio


Operating profit / Net sale x 100
Description

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

Operating profit ratio

9.01%

29.40%

5.69%

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

Total assets turnover

2.22%

2.15%

11.32%

Explanation
Activity ratio includes the total assets turnover ratio. In this ratio we find the
turnover of total assets for the number of the years. In 2010 the assets turnover
ratio is 11.32%. in 2011 decreasing trend observed and the ratio rose up to 2.l5%
in 2012 it also the in creasing trend and ratio more rose up to 2.22%.
10.Debt equity ratio
Long term liabilities /Total assets x100

Description

2012

2011

2010

Long term liabilities

63,652,804

103,762,750

59,249,073

Total assets

1,532,124,280

822,366,363

897,970,491

Debt ratio

4.15%

12.61%

6.59%

Explanation
Debt ratio also called the debt equity ratio in this ratio we calculate the
percentage changes of total assets and long term liabilities
In 2010 the debt ratio is 6.59%. In 2011 increasing trend observed and the ratio
goes up to 12.61% in 2012 it also the decreasing trend and ratio more goes down
to 4.15%.

11.Desbt to assets ratio


Total liabilities / total assets x 100
Description

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

Debt to assets ratio

66.53%

44.41%

45.83%

Explanation
Debt to asset ratio also called the debt asset ratio in this ratio we calculate the
percentage changes of total assets and total liabilities of the following years.
In 2010 the debt to asset ratio is 45.83%. In 2011 decreasing trend observed and
the ratio goes down to 44.41% in 2012 increasing trend observed and ratio rose
up to 66.53%.
12. Operating expenses ratio
Operating expenses / Net sale x 100
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

Net profit after tax

341,622,097

494,555,779

329,520,766

Total assets

1,532,124,280

822,366,363

897,970,491

Operating ratio

22.29%

60.13%

%36.69

Explanation
Return on total asset means that we find the relation of net profit and total assets
of the years.
In 2010 the return on asset ratio is 36.69%. In 2011 increasing trend observed and
the ratio rose up to the 60.13% in 2012 decreasing trend observed and ratio goes
down to 22.29%.

Horizontal Analysis:
Formula. Individual year/Base year x 100
Horizontal analysis of the profit and loss Account:
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%

other operating expenses

0%

34.41%

other operating income

69.29%

49.47%

100%

profit from operations

7.31%

102.09%

100%

finance cost

46.23%

117.08%

100%

100%

Profit&Loss before taxation

53.6%

89.28%

100%

provision for taxation

103.67%

9.13%

100%

Profit&loss after taxation

103.67%

150.08%

100%

HORIZANTAL ANALYSIS:

BALANCE SHEET:
ASSETS

2012

2011

2010

Property plant &equipment

91.96%

95.25%

100%

Long term advances

Long term security deposits

Total

91.96%

95.25%

100%

Store spare parts and loose tool

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%

Cash & bank balance

178.43%

12.01%

100%

Non Current Assets

Currents Assets

Total

170.62%

91.58%

100

Long term Loans

126.37%

69.63%

100%

Liabilities against assets

Deferred liability

159.31%

112%

100%

Total

248.80%

96.73%

100%

Current maturity of long term

107.43%

175.12%

100%

Short term borrowings

80.35%

100%

Creditor

103.67%

72.83%

100%

Provision for taxation

95.96%

101.92%

100%

Total

246.87%

83.33%

100%

Issued, subscribed &paid up share

127.07%

100%

100%

Reserves

223.06%

135.61%

100%

Total equity

163.24%

107.34%

100%

Total liabilities+ Equity & share


capital

170.62%

91.58%

100

LIABLITIES:
Non Current Liabilities:

Current Liabilities:

Equity& share capital

VERTICAL ANALYSIS: Formula =Individual Item/ base x 100


For the year ended June 30,
Profit & Loss Account:
Description

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%

Other operating Expense

8.40%

0.42%

Other operating Income

0.26%

0.36%

0.13%

Profit from operation

2.30%

62.34%

10.56%

Finance cost

6.70%

32.94%

4.86%

Profit &Loss Before Taxation

9.01%

29.40%

5.69%

Provision for taxation

0.1%

0.98%

0.90%

Profit&Losss after Taxation

10%

28.10%

3.24%

BALANCE SHEET:
As at June 30:

ASSETS

2012

2011

2010

Rupees in
thousands

Rupees in

Rupees in
thousands

Property plant &equipment

44.22%

85.33%

82.04%

Capital worsk in Process

6.95%

Long term advances

6.33%

Long term security deposits

0.37%

Total

57.88%

85.33%

82.04%

Store spare parts and loose tool

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

Non Current Assets

Current Assets

Cash & bank balance

7.06%

0.52%

4.02%

Total

42.12%

14.67%

17.96%

Total Assets

100%

100%

100%

Long term loans

14.20%

14.58%

19.18%

Liabilities against assets

1.39%

0%

0%

Loans from directors

10.27

0%

0%

Long term liability

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%

Short term borrowings

26.22%

0%

5.56%

Creditor

8.85%

11.59%

14.57%

Provision for taxation

0.34%

0.68%

0.61%

Total

39.59%

24.89%

27.35%

LIABLITIES:
NON CURRENT LIABLITIES:

CURRENT LIBILTY:

Equity &share capital

Issued, subscribed &paid up share capital

20.67%

30.32%

27.76%

12.78%

10.68%

7.21%

Total equity

33.46%

41%

34.97%

Total liabilities+ Equity & share capital

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.

Wages of workers should not be less than Rs7000 per month.

There should be family quarters for all married workers.

There should be a high school and a college as well for boys and girls in the factory area.

There should be transport facility for workers within the district.


All the employees especially those associated with production should be encouraged, and should be involved in
decision making and empowered to make innovative decisions. In this way employees can add to the organization, a
lot. E.g. a new cost effective production technique can result in comparatively huge profits

Chapter 8
RECOMMENDATIONS
Tandlianwala Sugar Mills Limited:
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

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