A Summer Training Project Report in KARTHIC

7/29/2019 A Summer Training Project Report in KARTHIC

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CHAPTER1

INTRODUCTION

1.1 INTRODUCTION TO THE INDUSTRY

Sugars are a major form of carbohydrates and are found probably in all green plants.

They occur in significant amounts in most fruits and vegetables. There are three main simple

sugars sucrose, fructose and glucose. Sucrose is in fact a combination of fructose and glucose

and the body quickly breaks down into these separate substances.

The Need for Energy

All energy stored in food is derived originally from the sun and it is made by green

plant life. The sun's energy acts upon the green chemical "chlorophyll" in the leaves of plants

to produce sugars and starches from the carbon-dioxide in the atmosphere and the water from

the roots by a process known as Photosynthesis. These carbohydrates (starches and sugar)

acts as a plants food and energy supply. The energy need of human body is largely dependent

on the carbohydrates that are derived from plants.

A Balanced Diet

A balanced diet can come from a variety of different foods, calculated to give the

desired levels of carbohydrates, proteins, fats, vitamins and minerals. Nutritional scientistsadvocate that carbohydrates should provide at least 50% of over energy requirements.

History

The discovery of sugarcane, from which sugar as it is known today, is derived dates

back unknown thousands of years. It is thought to have originated in New Guinea, and was

spread along routes to Southeast Asia and India. The process known for creating sugar, by

pressing out the juice and then boiling it into crystals, was developed in India around 500 BC.

Its cultivation was not introduced into Europe until the middle-ages, when it was

brought to Spain by Arabs. Columbus took the plant, dearly held, to the West Indies, where it

began to thrive in a most favorable climate.

It was not until the eighteenth century that sugarcane cultivation was began in the

United States, where it was planted in the southern climate of New Orleans. The very first

refinery was built in New York City around 1690; the industry was established by the 1830s.

Earlier attempts to create a successful industry in the U.S. did not fare well; from the late


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1830s, when the first factory was built. Until 1872, sugar factories closed down almost as

quickly as they had opened. It was 1872 before a factory, built in California, was finally able

to successfully produce sugar in a profitable manner. At the end of that century, more than

thirty factories were in operation in the U.S.

Manufacturing Process and Technology

Sugar (sucrose) is a carbohydrate that occurs naturally in every fruit and vegetable. It

is a major product of photosynthesis, the process by which plants transform the sun's energy

into food. Sugar occurs in greatest quantities in sugarcane and sugar beets from which it is

separated for commercial use. The natural sugar stored in the cane stalk or beet root is

separated from rest of the plant material through a process known as refining.

For sugarcane, the process of refining is carried out in following steps

Pressing of sugarcane to extract the juice. Boiling the juice until it begins to thicken and sugar begins to crystallize. Spinning the crystals in a centrifuge to remove the syrup, producing raw sugar. Shipping the raw sugar to a refinery where it is washed and filtered to remove

remaining non-sugar ingredients and color.

Crystallizing, drying and packaging the refined sugar

Beet sugar processing is similar, but it is done in one continuous process without the

raw sugar stage. The sugar beets are washed, sliced and soaked in hot water to separate the

sugar -containing juice from the beet fiber. The sugar-laden juice is then purified, filtered,

concentrated and dried in a series of steps similar to cane sugar processing.For the sugar industry, capacity utilization is conceptually different from that

applicable to industries in general. It depends on three crucial factors the actual number of ton

of sugarcane crushed in a day, the recovery rate which generally depends on the quality of the

cane and actual length of the crushing season.

Since cane is not transported to any great extent, the quality of the cane that a factory

receives depends on its location and is outside its control. The length of the crushing season

also depends upon location with the maximum being in south India.


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Sugarcane in India is used to make either sugar, khandsari or guar. However, sugar

products produced worldwide are divided into four basic categories: granulated, brown,

liquid sugar and invert sugar.

Granulated Sugar

Granulated sugar is the pure crystalline sucrose. It can be classified into seven types

of sugar based on the crystal size. Most of these are used only by food processors and

professional bakers. Each crystal size provides unique functional characteristics that make the

sugar appropriate for the food processor's special need.

There are many different types of granulated sugar. Most of these are used only by

food processors and professional bakers and are not available in the supermarket. The types

of granulated sugars differ in crystal size. Each crystal size provides unique functional

characteristics that make the sugar appropriate for the food processor's special need.

"Regular" Sugar, Extra Fine or Fine Sugar

"Regular" sugar, as it is known to consumers, is the sugar found in every home's sugar

bowl and most commonly used in home food preparation. It is the white sugar called for in

most cookbook recipes. The food processing industry describes "regular" sugar as extra fine

or fine sugar. It is the sugar most used by food processors because of its fine crystals that are

ideal for bulk handling and are not susceptible to caking.

Fruit Sugar

Fruit sugar is slightly finer than "regular" sugar and is used in dry mixes such as

gelatin desserts, pudding mixes and drink mixes. Fruit sugar has a more uniform crystal size

than "regular" sugar. The uniformity of crystal size prevents separation or settling of smaller

crystals to the bottom of the box, an important quality in dry mixes and drink mixes.

Bakers Special

Bakers Specials crystal size is even finer than that of fruit sugar. As its name

suggests, it was developed specially for the baking industry. Bakers Special is used for

sugaring doughnuts and cookies as well as in some commercial cakes to produce fine crumb

texture.

Superfine, Ultrafine, or Bar Sugar

This sugar's crystal size is the finest of all the types of granulated sugar. It is ideal

for extra fine textured cakes and meringues, as well as for sweetening fruits and iced-drinks

since it dissolves easily. In England, a sugar very similar to superfine sugar is known as

caster or castor, named after the type of shaker in which it is often packaged.


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Confectioners (Powdered) Sugar

This sugar is granulated sugar ground to a smooth powder and then sifted. It

contains about 3% corn starch to prevent caking. Confectioners sugar is available in three

grades ground to different degrees of fineness. The confectioners sugar available in

supermarkets is the finest of the three and is used in icings, confections and whipping cream.

The other two types of powdered sugar are used by industrial bakers.

Coarse Sugar

The crystal size of coarse sugar is larger than that of "regular" sugar. Coarse sugar is

normally processed from the purest sugar liquor. This processing method makes coarse sugar

highly resistant to color change or Inversion (natural breakdown to fructose and glucose) at

high temperatures. These characteristics are important in making fondants, confections and

liquors.

Sanding Sugar

Another large crystal sugar, sanding sugar, is used mainly in the baking and

confectionery industries to sprinkle on top of baked goods. The large crystals reflect light and

give the product a sparkling appearance.

Sugar produced in India is mainly of granulated type. Granulated sugar is further

classified in to various types based on color and grain size. According to the Indian Standards

Specifications (ISI), there are around 20 grades of sugar based on the grain size and colors.

The color series has four grades designated as 30,29,28 and 27, while the grain size has five

grades namely A, B, C, D, E. Bulk of production in the country is of C, D and E grains,

branded as large, medium and small and has color specification of 30. The D grade produced

in the country is comparable to world standards.

Brown Sugars - Turbinado Sugar

This sugar is a raw sugar which has been partially processed, removing some of the

surface molasses. It is a blond color with a mild brown sugar flavor and is often used in tea.


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Brown Sugar (light and dark)

Brown sugar consists of sugar crystals coated in molasses syrup with natural flavor

and color. Many sugar refiners produce brown sugar by boiling a special molasses syrup until

brown sugar crystals form. A centrifuge spins the crystals dry. Some of the syrup remains

giving the sugar its brown color and molasses flavor. Other manufacturers produce brown

sugar by blending special molasses syrup with white sugar crystals. Dark brown sugar has

more color and a stronger molasses flavor than light brown sugar. Lighter types are generally

used in baking and making butterscotch, condiments and glazes. Dark brown sugar has a rich

flavor that is good for gingerbread, mincemeat, baked beans, plum pudding and other full

flavored foods.

Muscovado or Barbados Sugar

Muscovado sugar, a British specialty brown sugar, is very dark brown and has a

particularly strong molasses flavor. The crystals are slightly coarser and stickier in texture

than "regular" brown sugar.

Free Flowing Brown Sugars

These sugars are fine, powder-like brown sugars that are less moist than "regular"

brown sugar. Since it is less moist it does not lump and is free-flowing like granulated white

sugar.

Demerara Sugar

Popular in England, Demerara sugar is a light brown sugar with large golden crystals

which are slightly sticky. It is often used in tea, coffee or on top of hot cereals.

Liquid Sugars

Liquid sugars were developed before today's methods of sugar processing made

transport and handling granulated sugars practical. There are several types of liquid sugar.

Liquid sucrose (sugar) is essentially liquid granulated sugar and can be used in products

wherever dissolved granulated sugar might be used. Amber liquid sucrose (sugar) is darker in

color and can be used where the cane sugar flavor is desirable and the non-sugars are not a

problem in the product.


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Invert Sugar

Inversion or chemical breakdown of sucrose results in invert sugar, an equal mixture

of glucose and fructose. Available commercially only in liquid form, invert sugar is sweeter

than granulated sugar. One form of liquid invert was specially developed for the carbonated

beverage industry and can be used only in liquid products. This liquid sugar is actually part

invert sugar combined with part dissolved granulated sugar. Another type, named total invert

sugar syrup, is commercially processed and is almost completely invert sugar. It is used

mainly in food products to retard crystallization of sugar and retain moisture.

Sugar and Health:

Sugar has Medical Value Apart from sugar being a cheapest instant source of energy,

it has several medical & therapentical values. Some of them are as elaborated below.

Sugar For Oral Dehydration

Sugar is extremely valuable in treatment of severe infantile diarrhea, a serious

problem that kills around 3.5 million children in a year in underdeveloped countries. Oral re-

hydration treatment (restoring of liquids by mouth) is used for infants with diarrhea due to

cholera or re-hydrating viruses. It is simpler and easier to mix sugar with salt to treat de-

hydration children even in the most remote areas. Further studies prove that oral sucrose was

an effective as intravenous treatment in retaining re-hydration.

Sugar Heals Wounds

Sugar has tremendous healing power. Sugar helps in wiping out infections in all types

of wounds and speed up the healing time as well. Fills up sugar in the open wounds and it

dissolves in tissue where micro organism cannot survive.

Sugar is the Best Carrier of Vitamin E, A and Minerals

Vitamin A deficiency in South American population is being combated successfully

with the use of fortified sugar. Encouraged by the results, fortification of sugar with vitamin

A is being attempted to combat vitamin A as well as mineral (iron) deficiencies a major area

of concern in some of the developing countries.


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1.2 INTRODUCTION TO THE COMPANY

In 1921, Pollachi was a tiny village, way too modest compared to the bustling town it

is today. But it was here, P.Nachimuthu Gounder laid the foundation for Sakthi Group. It was

in this year P.Nachimuthu Gounder broke away from his traditional business of hiring

bullock carts and pioneered into passenger transport service. From then on, there was no

looking back.

He envisaged the path and showed others its means. He founded the Anamallais Bus

Transport (ABT), the parent organization of the Sakthi Group in 1931 with 21 buses. It

eventually grew into a network covering almost all of South India. After three decades Sakthi

Sugars Limited was established in the year 1961, with commercial production of Sugar

commencing in the year 1964 at its Sakthinagar Sugar plant.

Today it has in its fold four Sugar plants with three of them in Tamil Nadu located at

sakthinagar, Sivaganga and Modakurichi and one plant in Orissa at Dhenkanal. With the

aggregate capacity of 19,000 Tons of cane Crush per Day (TCD), Sakthi Sugars Limited is

one of the largest producers of Sugar in the country.

Expanding its industrial presence, Sakthi Sugars Limited diversified

into manufacturing of industrial Alcohol in the year 1972 at Sakthinagar, Tamil Nadu and at

Dhenkanal, Orissa in the year 1996. These two distillery plants, undisputedly the largest in

their respective states, have an aggregate capacity of 46 KLPD Industrial Alcohol.

Soya Products is another range of products manufactured by Sakthi Sugars Limited. It has an

advanced Soya processing unit with refinery complex near Pollachi, Tamil Nadu. It handles a

capacity of 90,000 Metric tons (MT) of soybeans per annum.

The company has also installed three Co-generation Power plants at its sugar factories

in Tamil Nadu. The combined capacity of power production of these plants is 92 Mega Watt.

After meeting the power requirements of the sugar plants the excess power generated is

exported to the power grid. Sakthi Sugars Limited is one of the important members of the

Sakthi Group contributing a large share of revenue to the group's turnover. As a dutiful

corporate, Sakthi Group has set up many educational and charitable institutions, hospitals and

religious centers. It has created ample employment opportunities for rural youth through its

multi-fold agro-based institutions and other industries. It's a strong belief among us that

growth and development must reach all sections of the society and businesses have a

responsible role in making this a reality.


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Milestones and achievements

The important milestones reached by various divisions and plants of the company and the

accolades they have earned are listed below.

Name of the unit Year

Estd.Capacity Remarks

Sakthinagar Sugar Unit 1964 9000 TCD Expanded from 7500 TCD2007

Sakthinagar Distillery 197236000

KLPA

Expanded from 27500 KLPA - Oct.

2007

Sivaganga Sugar Unit 1989 4000 TCDExpanded from 2500 TCDMay

2000

Soya Unit 1990 90000 TPA Commissioned on 15th June 1990

Dhenkanal Sugar Unit 1994 2500 TCD Expanded from 1500 TCD2007

Dhenkanal Distillery 199610000

KLPA

Commissioned on 20th January

1996

Cogeneration Plant at

Sakthinagar2003 32 MW Commissioned on November 2003

Modakurichi Sugar Unit 2007 4000 TCD Commissioned on 7th Sept.2007


Modakurichi2007 25 MW Commissioned on 7th Sept.2007


Sivaganga2008 35 MW

Commissioned on 1st February

2008

Ethanol (Anhydrous Alcohol)

Plant2003

15000

KLPACommissioned on 8th June 2003


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Award and Recognition:

Year Name of the award Award by Institution / Authority

2004-05 State Productivity Award

Inspectorate of Factories, Govt. of

Tamilnadu

1990 Third prize State Safety

1993 First prize State Safety

1994 Second prize State Safety

1994-95 First prize State Safety

2001 First prize State Safety

2002 Second prize State Safety

Performance Highlights:

Performance of the various Divisions of the company for the current year ended 31st

December 2009 and the last accounting year are furnished hereunder:

Sugar Division

Description Sakthinagar Sivaganga Dhenkanal Modakurichi

2009 2008 2009 2008 2009 2008 2009 2008

Cane Crushed (Lakhs MTs.) 14.49 23.56 4.35 9.79 1.63 3.66 --- 7.14

Recovery % 9.24 9.01 9.08 8.83 9.39 9.99 --- 9.10

Sugar Produced (Lakhs Qtls.)-Out

of Cane

13.38 21.30 3.94 8.64 1.51 3.63 --- 6.50

Sugar Produced (Lakhs Qtls.)-Out

of Raw sugar5.54 --- 4.23 --- 4.36 --- 9.77 6.50

Total Sugar Produced (Lakhs Qtls) 18.92 21.30 8.17 8.64 5.87 3.63 9.77 6.50

Sales (INR in Lakhs) 42208 28333 19136 12575 14815 5936 24575 8940


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Distillery division

Description Sakthinagar Dhenkanal

2009 2008 2009 2008

Alcohol Produced (Lakh Ltrs.) 379.44 571.21 31.10 66.22

Sales (INR in Lakhs) 12690 17302 1228 1664

Soya Division:

Description 2009 2008

Soya Products Produced (LakhMTs)

0.26 0.47

Sales (INR in Lakh) 8213 13075

Power Division:

Description Sakthinagar Sivaganga Modakurichi

2009 2008 2009 2008 2009 2008

No. of Lakh Units Generated 1791.57 2889.86 1231.63 875.39 1071.24 1111.97

No. of Lakh Units Exported 1135.24 1828.05 931.55 621.04 925.04 790.38

Sales (INR in Lakhs) 3349 5392 4749 1956 5635 2453


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1.3 ORGANISATION STRUCTURE

SR.General

Manager

Asst.GM

ACETS

Dy.MGR

Systems

Dy.MGR

Works

Asst.GM

Cane

Manager

Stores

SOHRWSM

Cane

SO SecSFV

AGM

Works

SM

Engg

DM

Cane-4

AM

Cane-6

Cane

AFFR

SO

Cane

DM

Engg

DM

Elec

AM

Instru

AM

CoGen

S.Engr

Civil

Engr

Nels

AM

En

Sr.Engr

Elec

Engr

Elec

Sr.Engr

Instru

Sr.Engr

Cogen

AFR

AUTO

MGR

Process

AM

Process

Sr.MGR

CHE


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1.4 VISION AND MISSION

Our Vision:

To be one of the top 5 producers of Sugar in India. To be one of the top Auto component manufacturers in India. To be a leading producer of Alcohol and allied energy products. To have the best possible alternative power producers in the country. To maximize the trade in raw sugar so as to maximize the earnings of the company.

Our Mission:

At Premier, we never stop exploring ways to further the quality of our products and

providing excellent service to cater to the needs of our customers. State-of-the-art machinery

combined with efficient, eco-friendly manufacturing processes and unparalleled technical

expertise is the key to our organization's growth and success.

Objective of organisation:

Identify and improve the process to have a continuos up gradation of the quality ofthe end product.

Serve in the best interest of cane growers and shareholder. Maximize productivity by optimizing all inputs. Expand and diversify utilization by product in a planned manner.


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CHAPTER-II

DEPARTMENTS

Various Departmental Functions:

There are 7 different departments in this company, they are:

Production Department Finance Department Marketing Department Human Resource Department Research and development Cane department Stores department


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2.1 PRODUCTION DEPARTMENT

Cane Sugar Process:

1. Weigh Bridge:

The arrived cane is weighed in the cane weigh bridge.

2. Cane unloaded:

The weighed cane is taken out from the vehicles and fed to the cane carrier by the

cane unloaded equipment for crushing.

3. Cane preparation:

The unloaded cane in the carrier is leveled by the cutting action of leveler and finely

divided into small pieces by the Miner unit.

4. Mills:

The milling tandem consists of 5 Mills. The prepared cane is crushed in the mills step

by step with addition of water to extract the maximum quantity of juice for processing.

5. Boilers:

After extracting the juice the waste fibrous material of cane known as Bagasse is used

as fuel in the boilers to produce steam .the high pressure steam is used for producing power.

6. Power house:

The high pressure steam from the boilers is used to produce electric power through

Turbo Generator unit. The electric power generated is used to run the mills and other

equipments in the factory. The low pressure steam coming out of the turbine is used for the

process.

7. Clarification house:

The extracted juice from the mills having pH around 5.0 is weighed in juice weighing

scale. It is pumped through Primary juice heaters and heated up to 650C.the heated juice is

treated with lime to a pH of 9.0 and again with SO2 gas to 7.0 pH for removal of non-sugar

material (purification).

This treated juice is further heated to 1000C in the Secondary juice heaters and sent

to Clarifier in order to remove the formed non-sugar particles (mud) by setting action.

The settled mud liquid is filtered in the vacuum filter and is separated into Filtered

juice and Mud. The obtained clear juice from the clarifier is sent to Evaporators for

concentration.


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8. Evaporation:

The clear juice is concentrated by removal of water in the 5 stage Evaporator. Low

pressure steam from the Turbo Generator is used as a fuel in the evaporator. The vapor

generated in different stages of the evaporator is used as the fuel for various boiling. The hot

condensate produced in the evaporator is used for boiling water and other purposes.

The concentrated juice called Syrup coming out of the evaporator is sent for further

clarification.

9. Syrup Clarification and sulphitation:

The Syrup is clarified with phosphoric acid and Flocculants and the mud produced is

separated through filters. The clear syrup is again sulphited to a pH of 5.0 with SO 2 gas and

taken to pan section for sugar crystallization.

10. Crystallization at pan station:

Crystallization is done in 3 stages (A, B, C) in the pans.

A-Boiling is done with the syrup and Melt, B-Boiling with A-Molasses and C-Boiling with

B-Molassess-Molasses is sent as raw material for alcohol production in the Distillery.

11. Centrifugals:

The boiled massecuite (sugar crystals + liquid) from the Pan is stored in the

crystallizers and sent to centrifugals.

The sugar and Molasses in the massecuite are separated by centrifugal action in the

centrifugal machines. The separated A-sugar is dried/cooled and sent to sugar grader unit for

sieving into separate sizes and sent for bagging. B & C-Sugar is again melted and reprocessed

in the A-Boiling.

12. Sugar Bagging:

The sugar is graded as L-30, M-30 and S-30 as per the Indian Sugar Standards and

sent to sugar Bins for storing and bagging. The sugar is weighed to 100 kgs per bag/50 kgs

per bag in the automatic weighing machine, stitched and sent to Godown.

13. Sugar Godown:

The sugar bags are stored in the godown as stacks for marketing.90% of the total

production is released as free sale and 10% of the total production as Levy sale under the

release order from the Sugar Directorate, Government of India.


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14. Disposal of the main & By-Products:

The main product from the cane is white consumption sugar and by-products are

Bagasse, Power, Filter Cake and Molasses.

a) Sugar is sold to the buyers in the local market in our country and also exported toforeign countries.

b) Bagasse is utilized as fuel in our boiler.c) Excess Power produced is also sold to Tamil Nadu Electricity Board.d) Filter Cake is supplied to cane growers.e) Molasses is stored and sent to distillery.


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2.2 FINANCE DEPARTMENT

Finance is said to be the life blood of an organization. Finance helps in the smooth

running of an organization for example a business needs Finance to commence operation.

One of the major roles of the finance department is to identify appropriate financial

information prior to communicating this information to managers and decision-makers.

Finance is a term used for money. In businesses it is used. Planning and organizing and

controlling of finance in a business are a primary activity. We can say that Finance is a basic

needed thing to start a business.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL

PERFORMANCE:

The gross income for the year under review is Rs.149220.88 lakhs. The year has

ended with a gross profit of Rs.20110.88 lakhs before providing for interest and depreciation.

After providing Rs.4614.45 lakhs for interest, and Rs.3025.71 lakhs for depreciation, the net

profit for the year before tax is Rs.12470.72 lakhs.

ACCOUNTS DEPARTMENT

The main work of this department is record the financial transactions and to receivemoney and payment and is also responsible for the bank transactions. The accounts statement

such as profit and loss accounts, balance sheet, general ledger, and all other ledger are helpful

to the various departments is administered by the accountant and an assistant accountant.

Accounting is the art or science of interpreting, measuring, and communicating the

results of economic activities whether you are paying your phone bill, balancing your

checkbook, preparing your income tax return or managing an international corporation, you

are working with accounting. Accounts Manager makes the important financial decisions

with consultation of Director and Chief executive of company.

The accounts department is responsible for the entire accounting process of the

organization regarding the recording of transactions, designing the accounting policies and

accounting system, preparing financial statements and computer application. If we consider a

company a cell then we can say that accounts department has role of nucleus.


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Functions of the Department:

Very first and an important function of accounting department is recording the

business transactions on vouchers. This is also called process of vouching. This is made for

internal record keeping. Auditors specifically audit vouchers. Wrong vouching will lead to

error in the system and ultimately create problems.

From vouchers information is recorded in daybook and cashbook. As each voucher

along

with its invoice, DO and other necessary documents are kept in the record room so daybook

is one that can give information about parties DR and name of account CR along with

amount.

In order to see accounts in condense form ledger is used. From daybook all the entries

are posted in ledger. Ledger represents DR or CR balance of each party. So from ledger we

can see amount that is to be paid to a party or the amount that is to be received and the

balance at the end of the month. After this all the DR balances and CR balances of all the

parties are posted in trial balance. The trial balance must be equal at both sides. Otherwise

there is any error in recording the transactions.

Now trial balance becomes the source of profit and loss and balance sheet. This

department also designs the accounting policies. All the work in this department is being take

place on accrual basis.

The department prepares trial balance at the end of every three months and Profit and

loss accounts and balance sheet are prepared at the end of year. The financial year ends on

september30 of each year. The financial statements are presented to shareholders.

Accounting System:

Accounting System at here is centralized and on accrual basis. All accounts are

maintained in Coimbatore head office. The process of accounting system starts from the

preparation of voucher. The following are different types of vouchers prepared at Sakthi

Sugars PVT ltd.


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Journal Voucher (JV):

As accounting system is on accrual basis, so accounting entries are passed on journal

voucher at first step. This is also known adjustment voucher. This is prepared for adjusting

entry. Vouchers are prepared after every transaction. Accounts Manager and Director verify

the voucher respectively. If they have any question they can ask relevant person if there is no

enquiry then they will put their signatures on voucher. Now it is time to record these

vouchers in books of accounts.

Bank Voucher (BV):

Bank voucher is used when any transaction is made with bank . Amount may be

drawn from bank and can be deposited in bank. You can receive DR advice or CR advice

from bank.

DR Advice:

When issued by bank, it means bank has deducted some amount from your account or

when has been made through your account.

CR Advice:

When issued by bank to you, it means some amount has been added in your account

.It normally takes place when some foreign remittances has been received by bank in your

account. This is usually sent by your customer in foreign country to which exports has been

made.

Payment Voucher:

This voucher is prepared at the time of making payments to any party. Party name is

debited with the amount to which payment has been made. Payment vouchers are used for the

payment up to Rs.6000. Payments more than this are made through bank.

Credit Voucher:

As name of voucher represents, this voucher is prepared when some amount is

received from any party. In this case party name is credited by the amount that has been

received.

The accounting department is mainly divided in to following three sections:

Stores section Salaries and wages section General accounts section


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Store Section

Store section is mainly concerned with store accounting. This section deals with many

accounts heads that are concerned with stores. Such as stores &spare A/C, oil and Lubricant,

Packing material A/C, General Store A/C, Building Material A/C and many others. The

major responsibilities of this department are

To record the store purchases. To record all store issues. To prepare various reports relating to store i.e. material consumption report, party

wise purchase report.

To keep a check on all stores by surprisingly checking their record and physical existence

of items stored. Because of the above mentioned duties. This section has a key position in the

company. No payment is made to anybody unless it is checked and verified by this section.

Attendance Allowance:

Leave encashment is given to those employees who save their holidays and dont

avail them. This is given according to their per day salary multiply with number of days of

holidays not availed.

Books of Accounts Department:

Cash book Bank book Stores purchase journal Raw material purchase journal Sales journal General journal Balance sheet ledger Profit and loss account Purchase return book Sales return book Bills payable book


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2.3 MARKETING DEPARTMENT

For every organization, marketing is an important factor to get succeed in the field.

This organization has an enhanced marketing value all over India. The products of Viking

Industries have its customers throughout India.

Marketing is important in building customer relationships as well as creating product

awareness. Without an effective marketing strategy you stand to not gain customers or lose

customers which equates to revenue loss and no growth. For a company to grow, marketing is

the vehicle.

Activities relating to export initiatives taken to increase exports, development of new

export markets for product and service; and export plans:

1. Refined sugar and less than 45 CUMSA sugar are exported in the current year and the

product are well received in the international markets , efforts are being taken to increase

the export of granite products.

2. Total foreign exchange used and earned

Total foreign exchange used -1769.48 lakhs. Total foreign exchange earned10545.11 lakhs.

Exploitation of favorable market conditions:

Only concerns with adequate working capital can exploit favorable market conditions

such as purchasing its requirements in bulk when the prices are lower and buy holding its

inventers for higher prices.

Ability to face crises:

Adequate working capital enables a concern to face business crisis in emergencies

such as depression because during such periods, generally there is much pressure on working

capital.

Quick and regular return on investments:

Every investor wants a quick and regular return on his investment sufficiency of

working capital enables a concern to pay quick and regular dividends to its investors as there

may not be much pressure to plough back profits. This gains the confidence of its investors

and creates favorable market to raise additional funds in the future.


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Nature of Industry:

The composition of an asset the industry of the size of a business and the industry

which it belongs. Small companies have smaller proportions of cash, receivables and

inventory than large corporations. A public utility, for example mostly employs fixed assets

in its operations, while merchandising department depends on inventory and receivables

needs for working capital are thus determined by the nature of the enterprise.

Demand of Industry:

Creditors are interested in the security of loans. They want their obligations to be

sufficiently covered. They want the amount of security in assets which are greater than the

liability.

Nature of Business:

The nature of a business is an important determinant of the level of the working

capital. Working capital requirements depends upon the general nature or type of business.

Time:

The level of working capital depends upon the time required to manufacture goods. It

he time is longer, the size of working capital is greater, moreover the amount of working

capital depends upon inventory turnover and the unit cost of the goods that are sold. The

greater this cost, the bigger is the amount of working capital.

Volume of Sales:

This is the most important factor affecting the size and component of working capital.

A firm maintains current assets because they are needed to support the operational activities

which result in sales. The volume of sales increases, there is an increase in the investment of

working capital in the cost of operations in inventories and in receivables.

Terms of Purchases and Sales:

If the credit terms of purchases are more favorable and those of sales less liberal cash

will be invested in inventory with more favorable credit terms, working capital are directly

related to each other. As the volume of sales increases, there is an increase in the investment

of working capital in the case of operations, in inventories and in receivables.

Inventory Turnover:

If the inventory turnover is high, the working capital requirement will be low. With a

better inventory control, a firm is able to reduce its working capital requirements. While

attempting this it should determine the minimum level of stock which, it will have to

maintain thorough out the period of its operations.


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Business Turnover:

The business turnover of the organization directly calls for systematic planning for

production. The exploitation of the available business can be achieved only when sufficient

raw materials are store and supplied. Hence business turnover will also influence the working

capital.

Business Cycle:

Business expands during periods of prosperity and declines during the period of

depression. Consequently, more working capital is required during periods of depression.

During marked upswings of activity, there is usually a need for larger amounts of capital to

cover the lag between the collection and increased sales and to finance purchase of additional

material to support growing business activity.

Value of Current Assets:

A decrease in the real value of current assets as compared to their book value reduces

the size of the working capital. If the real value of current assets increase there is increase in

working capital.

Variations in Sales:

A seasonal business requires the maximum amount of working capital for a relatively

short period of time.

Production Cycle:

The time taken to convert raw materials into finished product is referred to as the

production cycle or operating cycle. The longer the production cycle, the greater is the

requirement of working capital.

Credit Control:

Credit control includes such factors as the volume of credit sales, the terms of credit

sales, the collection policy etc., with a sound credit control policy, it is possible for a firm to

improve its cash inflow.

Liquidity and Profitability:

If a firm desires to take a greater risk for bigger gains or losses it reduces the size of

its, sales. If it is interested in improving its liquidity, it increase the level of its working

capital.


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Inflation:

As a result of inflation, size of the working capital is increased in order to make it

easier for a firm to achieve a better cash inflow. To some extent, this factor may be

compensated by the rise in selling price during inflation.

Seasonal Fluctuations:

Seasonal fluctuations in sales affect the level of variable working capital. Often the

demand for products may be of a seasonal nature. Yet inventories have got to be purchased

during certain seasons only. The size of the working capital in one period may, therefore be

bigger than that in another.

Profit Planning and Control:

The level of working capital is decided by the management in accordance with its

policy of profit planning and control. Adequate profit assists in the generation of cash.

Operational and Financial Efficiency:

Working capital turnover is improved with a better operational and financial efficiency of a

firm with a greater working capital turnover it may be able to reduce its working capital

requirements.

Changes in Technology:

Technology developments related to the production process have a sharp impact on

the need for working capital.

Sales department

Sales department is one of the important departments in any industry. If a unit

produces best quality goods but have not competitive staff then it would be difficult to sell

the products. The structure of sales department is as under.

Local Sales Department:

In the beginning Ahmad Hassan Textile Mills Limited its major portion of product to

the local market and then it gradually entered in the international market. In 1991 ratio of

local sales to total sales was 97.74% but this ratio decreased to 44.90%to total sales of the

year 1997.


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Procedure:

e-mail.

from mills.

on local sale contract slip.

les manager checks the selling limits of the particularparty and discusses the matter with Director if it is selling limit.

ds. After reading the particulars ofdelivery order store in charge in the factory will issue the goods.

for record.


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2.4 HUMAN RESOURCE DEPARTMENT

HR department is a continuous process to ensure development of employees

competencies, dynamism, motivation and effectiveness in a systematic and planned way.

Personnel manager control the personnel and HR department. He looks after the welfare of

the labor in the company. Personnel manager controls the time office department, hostel

maintenance, security and canteen.

These are different schemes provided for the welfare of the labour. The personnel

manager is responsible for recruiting the person and selects them. For this various tests are

conducted by this department. They measure the ability and skills of the candidates. The

personnel department maintain payroll of workers it contain employee name, remuneration,

etc...

Need for Personal Department:

Personnel department is needed by any organization that wants to be dynamic and

growth oriented or to succeed in a fast changing environment. Organization can become

dynamic and grow only through the efforts and competencies of their human resources.

Employee capabilities must continuously be acquired, sharpened and used.

Functions of HR Department:

Recruitment, selection of workers to various jobs, selection and induction ofworkmen, wages and salary administration, Training, Grievance handling, Security

arrangement. The functions of personnel department is not merely to cope with the needs of

the organization but to anticipate them and to act on them in advance in an continuous and

planned way. Personnel department aims at developing the capabilities of all line managers to

carry out various personnel functions themselves.

The system should focus on improving the organization diagnostic and problem

solving capabilities and on making the organization more open so that maximum

commitment of the employees may be obtained.

Human resources development system due attention should be given to the various

contextual factors and the existing culture of the organization. The personnel department is

being designed as an intervention to change the existing culture of the organization, it is

necessary to do enough careful planning, monitoring and follow up. Human Resources

development system must give enough attention linkages between the various sub systems. In

designing a human resources development system, it is essential to see that its various

subsystems are introduced into the organization in stage by stage.


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Salaries and Wages Section:

This section is responsible of making payments to the employees. This section plays

an important role in safeguarding the interest of the company as well as employees. This

section also insures all the labor laws; certain laws relating to company are as under:

Leave Procedure:

There are three types of leaves.

1. Sick Leaves:

-Sick Leaves are eight in year.

2. Casual Leaves:

-Casual Leaves are ten in each year.

3. Annual or Earned Leaves:

There are twelve earned leaves. Companys rule doesnt allow any employee to do

four day leave without application. In case any employee does so then he cant avail annual

leaves.

Salaries and Wages:

Minimum salary is not less than Rs1950. The breakup of salary is as under

Badli allowance 50

Cost of living Allowance 18% of basic salary

House Rent Allowance 10%of basic salary

Utility Allowance 10% of basic salary

Special Allowance 300

Shifts

The following shifts are followed:

Shift I: 6.00 am to 2.00 pm.

Shift II: 2.00 pm to 10.00 pm

Shift III: 10.00 pm to 6.00 am

Shift IV: 8.30 am to 5.30 pm

General Shift: 8.00 am to 5.00 pm


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Insurance:

The company is paying Rs 300 for each employees working in the company for any

accident meet by the employees during the working hours. The company is liable to meet the

expenses by providing medical leave facility.

Provident Fund:

The fund is credited by an amount detected from the salary or the wages of the

employees every month at a certain rate and the employees also makes his own contribution

to his fund the contribution invested to earn interests which is also credited to employee

provided fund. The company is contributing 12% of the employees wages as provided fund

as 12% from the employees wages

Pension:

The amount pension received by the employee retirement. In SRTL 12% is given as

employee the contribution here 12% refers to (8.33% and 3.67%) (Given under family

pension fund) and 3.673% (given under employee pension scheme)

Bonus:

As per the rules of the companys act 1956, 8.33% of bonus is compulsory for an

employee but the company more than the provisions. In SRTL the employees getting bonus

at the time of DIWALI season. The bonus period April to may. Last year the company gave

20% of bonus to the employees.

Equal-Opportunities Employer

Sakthi Sugars Ltd is an equal opportunity employer. It treats its employees and all

qualified aspirants seeking employment with the company equally, regardless of their race

and birth. The employee policies and practices of the company, considers merit alone as the

only factor of discretion and ensures equal opportunity to those eligible.

A Good Paymaster:Sakthi Sugars is also known among its employees as a good paymaster for its

generous compensation package to all its employees. It also provides various employee

benefits at par with the best of industry standards.


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Employee Development:

The organization nurtures the interest of its employees by assuring them of continual

growth prospects within its various growth structures. It strongly believes in a long-standing

relationship with its employees based on a sense of commitment, quality and work culture

which results in the collective progress of both the employee and the organization.

Respect for people:

The organizational culture of the company is centered on creating an amicable work

environment based on mutual respect and friendly behavior free from favor or bias. The

company does not allow any form of intolerance, harassment or discrimination.

Work/Balance Life:

The organization believes that employees must have a balanced professional and

personal life. While it respects personal space and time the organization also expects from its

employees a firm commitment to their roles and responsibilities within the organization.

Sakthi Sugars maintains cordial and friendly Industrial Relations with employees and the

Unions. The HR department of the company plays a vital role in crafting and implementing

people oriented industrial practices across the organization for establishing a healthier value

based relationship between employees and the organization.

Health, safety and Environment:

Sakthi Sugars provides its employees clean, safe and healthy environment inside &

outside the operational areas of its businesses. To ensure this the company has delineated

strict norms on industrial safety. The operational space of our entire infrastructure have been

intuitively designed and maintained for smooth and safe conduct of business affairs.

The company is particular about the regulations concerning the preservation of

environment in the areas where it has constituted its production facilities. Sakthi Sugars

Limited is committed to prevent any excess or negligent use of natural resources. It also

strives to minimize hazardous secretions in production and disposal of waste/production

excesses that can harm the environment.


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Corporate Citizenship:

The Sakthi Sugars Limited acts in compliance with all relevant laws and regulations

of the state. In addition to that it has pro actively assumed the role of a socially responsible

business by extending its assistance to people in its surrounding regions.

The social welfare and development initiatives of the company are aimed at supporting those

in dire need and in turn provide them the required assistance to enhance their quality of life,

both economically and socially. In the same way the company has been contributing

extensively in the fields of community health, family welfare, water management, vocational

training, education and literacy, development of rural roads and in the application of modern

scientific and managerial techniques for nurturing agriculture and uplifting the farming

community.

Training & Development:

The Sakthi Sugars Limited gives training to the employees. The training is on both on

the job and off the job also.

Some other functions are:

Recruitment Maintenance of Statutory records Welfare measures Attendance maintenance Maintenance of Personnel Records Preparation of Salary Promotions, transfers etc


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2.5 RESEARCH AND DEVELOPMENT

Research Design

Research design in the basic of defining the problem. The preparation of the design of the

research project is popularly known as research design. The researcher adopted the

descriptive research for the study

Source of data

Primary data Secondary data

Primary data

Original source collected for the first time for fresh use. First hand information. In this study

the primary data collected through structure questionnaires and interview schedule

Secondary data

All the data collected through other source are called secondary data. This is already

available for use. In this study the secondary data collected and complied from company

records and records a reports, journals, magazine.


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2.6 CANE DEPARTMENT

The function of Cane Department is to supply raw material to the sugar

factory. They provide the agricultural facilities to the farmers they provide the guidance and

helps the farmers regarding farming or cultivation and provides loans, fertilizers and water

facilities and also provides the inter crop seeds for planting. Every village is engaged with the

particular cane office and that office provides those help as they require only sugarcane

There are 13 divisional office and 64 sections around sivagangai.In factory

itself there are two division. One in mill north division and another in mill south division.

Other divisions are as follows:

1. Thirupuvanam2. Pudhuvayal3. Paramakudi4. Devakottai5. Sivagangai6. Mathakupatti7. Kamuthi8. V.Pudur

Each division office has one officer, one clerk and 6-7 cane assistants. The

duty of Cane assistants is to visit the farmers in their nearby villages and make a contract

with them after that the assistants measures the acres owned by the farmers and provide the

cane seeds to them based in the acre level they provide 4-4.5 tons of cane seeds per acre they

guide the farmers and offer the time period up to 12 months at the end of 12th

month cane

department allot workers to harvest and transported to the sugar factory.


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The department is divided as follows:

a) Yard department:

Main work is weightiest, Here the loads of sugarcane came from different

villages is weighed and sent for process.

b) Division Department:

It gives all the facilities and guidance to farmers regarding the sugarcane

farming.

c) Research and Development:

It research about the land and take the required maintenance and measures for

the development.

CANE DEPARTMENT

YARD DEPARTMENT DIVISION

DEPARTMENT

RESEARCH AND

DEVELOPMENT


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2.7 STORES DEPARTMENT

It is the department which stores the industrial material and maintains it. Purchase

department receive the purchase requition either from the user department or from the stores

department. Then purchase department enquire the party and purchase from regular party or

some other party and pack the material and send to purchase department and they send to the

storage. If there is any damage then they will return to them within a week.

The department has technical persons to test the purchased material. It could be done by both

manual and with the help of testing tools. It has the capacity of storing 3000 materials. This

department issues 50-60 materials per day to the other department such as process,

engineering etc.

The materials stored by this department are as follows:1. Chemicals2. Spares3. Coal4. Bolt/nuts5. Bearings6. V-Belts7. Electrical parts8. Steam joint9. Lubricants10.Liquid oxygen11.Caustic soda12.GunnyWhen any department requires the material, they send it to the particular department. All

the items have an item code. According to them, the items are arranged in racks, shelf,

wooden cupboard etc. They also store the scrap/old materials and sell them to the different

required parties. Some engineers have the indenting authority. So, that they can recover the

unwanted material.

They import the hardware spares from Brazil and Australia. Repairing is first done in

Bangalore, if it is not recover then the responsibility is given to China.


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CHAPTER-III

3.1 FINDINGS

The company is following the effective inventory system. The productivity level of the company is improving every year. The company is concentrating mainly on employee welfare and security. The company has mobilized fund by issuing bonds and invested in the fixed assets

which is also a reason for increase in sales.

From the financial highlight, it is clear that the company is in the prosperity whichmeans the companys property is increasing continuously.

Also the companys cash position was increasing during the period of study whichindicates the companys operating efficiency.


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3.2 SUGGESTIONS

The companys performance is getting fluctuation over a period of time. If they couldcontinue this, the shareholders will not benefited

By looking into the dividend declared by the company, it is clear that the companygives more importance to the shareholders wealth.

The company may try to repay their long term loans and advances sooner so that theymay avoid paying interest in huge amount.

The company is constantly increasing its current liabilities. If this continues for aperiod of time, the company will not be free from its liabilities.

The company should improve the technology for reducing Defects.


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CONCLUSION

The company is very much efficient and very much effective in its aim of achieving the

vision and mission. This is one of the company that maintain an eco friendly infrastructure

and in its function too. The company is focusing the quality of the products in every stage and

after producing the goods. The present studies aim is to know the financial position of the

company also. The researcher has used secondary data, which was collected from the

company annual reports. The companys position is good in present days.


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BIBILIOGRAPHY

1. The company website of Sakthi sugar ltd http://www.sakthisugar.com

2. Industry profile of sugar industry and general details from http://www.google.co.in/


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APPENDIX


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Documents

A Summer Training Project Report in KARTHIC