CHAPTER 1

OBJECTIVES

To study the systems, policies, practices and procedures followed by the organization.

To understand the functions performed by various departments

To study the roles and responsibilities of the managers.

To understand the decision making process

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CHAPTER 2

2.1 INDUSTRY PROFILE

Sugar industry in India is well developed with a consumer base of more than

billions of people. It is also the second largest producer of sugar in the world.

There is around 45 millions of sugar cane growers in India and a larger portion of rural

human resource in the country largely rely upon this industry. Sugar industry is one of the

agricultural based industries. In India it is the second largest agricultural industry after.

Sugar is one of the oldest commodities in the world and traces its origin in 4 th century AD

in India and china. In those days sugar was manufactured only from sugarcane. But both

countries lost their initiatives to the European, American and Oceanic countries, as the

eighteenth century witnessed the development of new technology to manufacture sugar

from sugar beet. However, India is presently a dominant player in the global sugar industry

along with the Brazil in terms of production. Given the growing sugar production and the

structural changes witnessed in Indian.

Sugar industry, India is all set continue its domination at the global level. Indian sugar

industry is highly fragmented with organized and unorganized players. The unorganized

players mainly produce Gur and Khandaro, the less refined forms of sugar. The

government had a controlling grip over the industry, which has slowly yet steadily given

way to liberalization.

The production sugarcane is cyclical in unit. Hence the sugar production is also

cyclical as it depends on the sugarcane production in the country. As the industry is

fragmented one, even leading players do not control more than 4 percent market in India.

However, the situation is changing and players off late are striving to increase their market

share either by acquiring smaller mills or by going for green field capacity additions.

Indian sugar industry can be broadly classified into to sub sectors, the organized sector

i.e. sugar factories and unorganized sector i.e. manufactures of traditional sweeteners like

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gut and khandsari. The latter is considering being rural industry and enjoys much greater

freedom than sugar mills.

The production of traditional sweeteners gur and khandsari is quite substantial.

Though the trends indicate a progressive shift from traditional sweeteners to white sugar

over the years, they still account for about 37% of total sweetener consumption in India.

Since the sugar industry n the country uses only sugarcane as an input, sugar

companies have been established in large cane growing states like Uttar Pradesh,

Maharashtra, Tamil Nadu, Karnataka, Punjab and Gujarat. Uttar Pradesh leads the tally by

contributing 24 % of the country’s total sugar production and Maharashtra stands next 20

% contribution.

The farmer’s co-operatives own and operate the largest chunk of the industry’s total

capacity. They are concentrated primarily in Maharashtra and eastern Uttar Pradesh. The

largest number of sugar companies in the private sector is located on southern India, in the

states of Tamil Nadu, Andhra Pradesh and Karnataka.

Out of 453 sugar mills in the country, 252 are in the co-operative sector, 134 are in the

private sector and 67 are in the public sector. Besides 136 units in the private sector are in

various stages of implementation. A few such units are under implementation in the co-

operative sector as well. But no new units have been proposed in the public sector.

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2.2 COMPANY PROFILE

Sakthi Sugars Limited is one of the largest producers of white crystal sugars in the

country accounting to the capacity of 13,500 tons of cane crush per day. Sakthi Groups is a

leading industrial conglomerate in South India. Motivated by a keen desire to

diversification in new areas of business, the Sakthi Group born and grew as a power full

entity, expanding its interest into various spheres of industry.

Sakthi Sugars Limited is committed to conduct its accordance with the applicable

laws, rules and regulations and with highest standards of business ethics.

P.Nachimuthu Gounder, farmer with a difference owned a few bullock carts the hired

out. He could feel the impulse of the people and made revolutionary changes. He created

history in 1921 by introducing the first taxi service in Pollachi. In1927, he started the first

bus service called Annamallais Bus Transport Company. This company is the parent of

Sakthi group. Sakthi sugars limited were formed in 1961 with commercial production of

sugar commencing in the year 1964 at its Sakthinagar sugar plant.

Today it has four sugar plants with three of them in Tamilnadu located at Sakthi

Nagar, Sivagangai and Modakurichi and one plant in Orissa at Dhenkanal, Orissa in the

year 1996. These two distillery plants, undisputedly the largest in their respective states,

have aggregate capacity of 46 KLPD industry alcohols.

Soya product is another range of products manufactured by Sakthi sugars limited. It

has an advanced soya processing unit with refinery complex near Pollachi, Tamilnadu. It

handles a capacity of 90,000 metric tons (MT) of soya beans per annum.

The company has also installed three co-generation power plants at its sugar factories

in Tamilnadu. The combined capacity of power production of these plants is 92 Mega

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

exported to power grid.

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As a dutiful corporate, Sakthi Group has set up many educational and charitable

institutions, hospitals and religious centers. It also made significant contribution to rural

developments through number of social welfare activities and initiatives; it has created

ample employment opportunities for rural youth through its multi-fold agro-based

institutions and other industries.

The various areas in which the group acts are

Sugar

Automobile parts

Bus transport

Education and IT

Foundry

Fruit beverage

Finance

Industrial alcohol

Parcel service

Sales and Services of Automobiles

Soft drinks

Soya products

Social services

Textiles

Sakthi Sugars Limited is the flagship company of the Sakthi Group and is one of the

largest producers of sugar in the country accounting for a capacity of 12,750 tons of cane

crush per day in four sugar units. The four units include three in Tamil Nadu and one in

Orissa.

2.3 UNITS:

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Sugar

1. Tamil Nadu

Sakthi Nagar, Erode District-established in 1964.

Padmathur village, Sivagangai District-established in 1989.

Ponduraisemur village, Modakurichi Taluk, Erode District-established in 2007.

2. Orissa

Haripur village, Dhenkanal-established in 1994.

Distilleries

Sakthi Nagar, Erode District-established in 1972.

Haripur, Dhenkanal (Industrial Alcohol) – established in 1996.

3. Soya

Marichinaiken Palayam, Pollachi – established in 1990.

4. Co generation Plant

SakthiNagar – established in 2003

Modakurichi – established in 2007

Sivaganga – established in 2008

5. Ethanol Plant has been established in Sakthi Nagar.

2.4 ORGANISATION PROFILE:

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Year of incorporation: 1961

Registered office: Sakthi Nagar -638315

Bhavani talk, Erode district,

Tamilnadu.

Corporate office: 180, Race Course Road,

Coimbatore- 641018.

Tamilnadu.

2.5 COMPETITORS OF COMPANY

EID Parry (India) Limited

Dharani Sugars and Chemicals Limited

Bannari Amman Sugars Limited

Kothari Sugars and Chemicals Limited

Ponni Sugars

Thiru Arooran Sugars Limited

2.6 MANAGEMENT TEAM:

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Name Title

Dr. N.Mahalingam

(promoter)Chairman

Dr.M. Manickam Vice chairman & managing director

Sri.M.Balasubramaniam Joint managing director- finance

Sri. M. Srinivaasan Joint managing director- technical

Sri. V.K. Swaminathan Executive director

Sri. P.K. Chandran Director (independent)

Sri. G.G. Gurumurthy Director (independent)

Sri. S.S. Muthuvellapan Director (independent)

Sri. N.K. Vijayan Director (independent)

Sri. C. Rangamani Director (independent)

Sri. S.Doreswamy Director (independent)

Sri. B.Elangovan Director ( TIDCO nominee)

2.7 Mission:

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The mission mode project under sugar production technologies aims towards

sharper and focused technological up gradation in selected sugar factories to accomplish,

interlaid the cost effectiveness of sugar production through improvement in plant

efficiency, energy saving, etc. In addition to the above, the focus is also on improving the

capital output ratio through optimization and identification of user friendly technologies.

2.8 Vision:

To be one of the top five sugar producers in India.

To be one of the top auto component manufacturers in India.

To be leading producers of alcohol and allied energy producers.

To have the best possible alternative power producers in the country.

To maximize the trade in raw sugar so as to maximize the earning of the company.

CHAPTER 3

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VARIOUS FUNCTIONAL DEPARTMENTS

Production Department

Finance Department

Labor Office Department

Cane Department

Marketing Department

Accounts Department

Stores Department

3.1 PRODUCTION DEPARTMENT

Sakthi Sugars Limited is the company of the Sakthi Group and is one of the largest

producers of sugar in the country for a capacity of 12,750 tons of cane crush per day in

four sugar units.

Only sugar factory in India which could produce super fine grade of sugar corresponding

to international standard measures at grade 85 and below by International Commission for

Uniform Method of Sugar Analysis (ICUMSA).

Crushing in the unit is done more than 8 months every year. Optimal recovery of sugar

from sugarcane is more than 10%.

In production department following process takes place in stepwise manner.

Weigh Bridge:

The arrived cane is weighed in the cane weigh bridge.

Cane unloaded:

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

unloaded equipment for crushing.

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Cane preparation:

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

divided into smaller pieces by the miner unit.

Mills:

The milling unit consists of 5 mills. The prepared cane juice is crushed in the mills

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

processing.

Boilers:

After extracting the juice the waste fibrous materials of the cane obtained is known as

bagasse. This is used as fuel in the boilers to produce steam This high pressure steam is

used for producing power.

Power house:

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

turbo generator unit. The electric power generated is used to run the mills and other

equipment’s in the factory. The low pressure steam coming out of the turbine is used for

the process.

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 upto 65°C. The heated juice is

treated with the lime to a pH of 9.0 and again with SO2 gas to 7.0 pH for the removal of

non-sugar material (purification).

This treated juice is further heated to 100°C 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.

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 the fuel in the evaporator. The vapor

generated in different stages is used as 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.

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 pH of 5.0 with S02 gas and

taken to pan section for sugar crystallization.

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Crystallization at pan station:

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

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

Molasses. The molasses is sent as raw material for alcohol production in distillery.

Centrifugal:

The boiled massecuite(sugar crystal+ liquid) from the pan is stored in the crystallizers

and sent to centrifugal.

The sugar and molasses in the massecuite are separated by the 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.

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 100kgs per bag and 50

kgs per bag in the automatic weighing machine, stitched and sent to go down.

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 scale under

release order from the sugar directorate, Government of India

Disposal of the main & By-products:

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

Bagasse powder, Filter cake and Molasses.

Sugar is sold to the buyers in the local market in our country and also exported to

foreign countries.

Bagasse is utilized as fuel in our boiler.

Excess power is produced and is also sold to Tamil Nadu Electricity Board.

Filter cake is supplied to cane growers.

Molasses is stored and sent to distillery.

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Production department consists of two sections namely

Manufacturing section

Engineering section.

3.1.1 ENGINEERING SECTION

This section consists of workshop. It maintains all the work connected with plant and

machinery.

Workshop:-

In this workshop machinery work is done. The spares and materials are fabricated

using the lather machines in the workshop, shaping like square cutting etc is also done in

the workshop.

3.1.2 MANUFACTURING SECTION

The manufacturing section again divided in to 3 sub sections.

Laboratory

Manufacturing process

Go down

LABORATORY:

The factory has a separate well equipped laboratory. The lab prepares hourly reports.

The main activity of the lab is

To check the content of sugar in the sugarcane and also fixing the correct shape and

size of sugar.

To determines the percentage of water content in the dilution of juice.

To determines as well as maintaining the temperature of boiling juice.

Choice of color and size of sugar.

To manage time and quality.

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To decided the percentage and contents and chemicals to be added during

production.

To finds the PH of water through universal indicator.

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 scale under

release order from the sugar directorate, Government of India.

3.2 LABOUR OFFICE DEPARTMENT

This department is concerned with the selection and placement.

Recruitment.

Development and training to workers

Development evaluation of workers

Wage and salary administration

Maintenance of statutory records.

Welfare measures for employee

Maintenance of personal records

Preparation of salary

Promotions, transfers.

3.2.1 ROLE OF LABOUR OFFICER IN SAKTHI SUGAR

In Sakthi sugars, the personal manager takes all the above responsibilities. Personal

manager controls the time office department, hostel maintenance, security and canteen.

The candidates are selected to particular job according to their qualification and

experiences. Training is given on the job only.

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Manager and supervisor are continuously inspecting every worker to access their

performance and they give better promotion for hard workers. Managers ensure

development of employee’s competency, motivation and effectiveness in systematic and

planned way.

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.

Work / Life balance

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.

Industrial Relations

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.

NUMBER OF WORKERS

Officers 24

Regular 172

Trainees 351

Daily wages with order 17

Total 564

SALARY:

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

Badly 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

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SHIFTS

There are 4 types of shifts as follows

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

Insurance

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

accidents met by the employees during working hours with medical leave.

Provident fund

The fund is credited by an amount detected from their monthly salary at a certain rate. The

company is contributing 12% of the employee’s wages as provident fund.

Pension

This amount is received by the employee on his retirement. Here 12% of his monthly

salary is given as pension monthly. Here in this 12% (8.33% given under family pension

fund and 3.673% given under employee pension scheme).

Bonus

As per the company’s act 1956, 8.33% of bonus is compulsory for an employee. Here the

employees are given bonus at the time of Diwali. 20% is given as bonus.

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3.2.2 TIME OFFICE

Time office is one of the important sections of administration department. This

section maintains the attendance of workers. It also shows records of particular workers

about his working hours etc. It evaluates the workers punctuality, discipline and uniforms

and maintains documents and records for the future reference purpose.

FUNCTIONS

Showing the absenteeism report to HOD.

To receive the attendance cards from the workers.

Siren maintenance ( signal value )

Observation of employees

Maintaining Notice Board

In time office there are 4 types of leaves.

SICK LEAVE: Employees are eligible to take leave on the sickness. 8 days sick leave

shall be granted with full wages.

CASUAL LEAVE: 10 days casual leave shall be granted with full wages or pay including

DA to the every workman.

PRIVILEGED LEAVE: 15 Days privileged leave shall be granted with full wages or pay

including DA to the every workman for every completed year.

3.2.3 SECURITY OFFICE

Security office is also one of the important sections of the HR department. There are

totally 39 guards

DUTIES OF SECURITY OFFICER

Maintain the silencing in the factory area.

Time maintenance of workers.

Raw materials are checked according to the voucher.

Incoming materials are checked, if they are right, they will records inward and seal

the bill and leave inside.

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If outgoing material from the industry that person must and should have got pass

and it is entered in outwards.

If goods are returnable, it will be entered in return A/C book.

A/C’s are submitted to M.D. daily.

3.2.4 FACILITY TO WORKERS

Availability of rest house with TV facility.

Availability of quarters.

Providing 2 wheelers for employees who are visiting the field to supervise and

check the availability cane.

Executive levels are provided with 4 wheelers.

Weekly one holiday of any in a week

NATIONAL HOLIDAY

The industry gives the leave for the national holidays; fair days of national holidays

should be given to the employees, such as Independence day, Republic Day, and Gandhi

Jayanti etc.

3.3 MARKETING DEPARTMENT

This section will take care of all sale transactions like sale of sugar, molasses, Bagasse

and scrap material. The factory sells the sugar according to central government

notification. The central government sends the notice to the factory every month regarding

sale of sugar, without notice the sugar is not sold to anybody. The government is giving

permission for a particular period, particular for sale of sugar. The sugar is sold to the

buyer who quotes highest price. In this section, some records like sale of sugar register,

molasses register, Bagasse registers and scrap material registers are maintained.

The marketing activities include the following

Sourcing and supplying information

Standardization and grading

Storage

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Financing

Risk taking

Marketing manager is in charge of the marketing department. Advertisements are not

necessary in sugar industry because customer won’t ask for Specific company branded

sugar.

FUNCTIONS

Marketing department has to keep in contact with dealers and agents

Getting order from parties

Arranging for delivery to parties

Maintaining records of sales

Sending reports to managing director

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

Sakthi sugar industry have its customer throughout India

Marketing is important in building relationship with customer also to create product

awareness. Without effective marketing strategy, the company will lose customer and also

loses the revenue.

3.3.1 PRODUCT OF SALE

The organization undertakes selling activities in two methods:-

FREE SALE: - free sale of sugar is being done to bulk purchases on the basis of tenders

called, collected, negotiated and sold.

LEVY SALE: - This is being sold to the government of Tamilnadu on levy basis. The

government then distributes the same to the public through public distribution outlets at

predetermined reasonable price.

The primary marketing activity is transport. The purpose of transport is to deliver the

product to the consumer in the quickest and safest way.

EXPORTS:

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Refined sugars and less than 45 CUMSA sugar are exported. Efforts are taken to increase

the exports in for coming years.

Foreign exchange used- 1769.48 lakhs

Foreign exchange earned- 10545.11 lakhs.

3.4 CANE DEPARTMENT

The function of cane department is to supply raw materials to the sugar factory. They

provide the agricultural faculties to the4 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’s one in mill north division and another in mill south division.

Other divisions are as follows:

1. Thirupuvanam

2. Puthuvayal

3. Paramakudi

4. Devakottai

5. Sivagangai

6. Mathakupatti

7. kamuthi

8. V.Pudur.

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

assistants 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 canes seeds to

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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 factory.

3.4.1 SUGAR SEASON

One sugar is 12 months from October to September. The actual crushing will depend

upon the availability of sugar cane. This will normally be about 6 months in a year.

3.4.2 CANE PRICE:

Statutory Minimum price:

The government of India fixes the statutory minimum cane price the sugar cane

control order, 1966. This price as to be paid by the sugar mill within 14 days from the date

of supply of cane failing which interest at the rate of 15% will have to be paid to the cane

growers till the date of payment. The statutory minimum cane price is fixed by the

government of India for the recovery of 9.50%.

The cane price is fixed for a sugar mills based on the peak period recovery of the mill. The

peak period recovery refers to the average recovery obtained from 1st December to 31st

March of the proceeding season.

State advised price:

The state government announce cane price every over and above the statutory

minimum price fixed by the government of the India and this price is the known as state

advised price. The cane price is fixed by the government and paid by the mills are

furnished in Annexure-II in balance sheet book.

Page 23 of 32CANE DEPARTMENT

The cane department is divided into three departments

Yard department:

Main work here is weighing the loads of sugar from different villages and sent for

processing.

Division department:

It gives all facilities and guidance to the farmers.

Research and development

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

development.

3.5 STORE DEPARTMENT

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YARD

DEPARTMENT

DIVISION

DEPARTMENT

RESEARCH AND

DEVELOPMENT

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

department receives the purchase order from the user department or from the stores

department. Then purchase department enquires the party and purchase from the regular

party or some other party and packs the material and sends to the purchase department and

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

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

both manual and with the help of testing told. Store department has the storing capacity of

3000 materials. This department issues 50-60 materials per day to other department such as

processing and engineering etc. The materials stored in this department are

Chemicals

Spares

Coal

Bolt-nuts

Bearings

V-belts

Electrical parts

Steam joints

Lubricants

Liquid oxygen

Caustic soda

Gunny

When departments require any material, this department sends materials to that particular

department. Each item has a unique item code which is arranged in the racks, wooden

cupboard, shelves etc. They also store the scrap/old material and sell them to different

required parties. They import the hardware spares from brazil and Australia. Repairing is

first done in Bangalore; if it’s not repaired then machines are sent to china.

3.6 FINANCE DEPARTMENT

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Finance is the lifeblood of any business. It is concerned with the activated of funds

and wide application on the funds. The success of a business lies with the effective

management of finance in the company. Finance management is that managerial activity

which is consumed with the planning and controlling of the firm’s financial resources.

Finance helps in the smooth running of an organization for example a business needs

Finance to commerce 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 business 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.

It is the most important department in which most of the function is carried out such as

accounting.

Planning, mobilization and effective utilization of funds.

Functions:

Dealing with banks and finance institutions.

To monitor the budget and budgetary control.

Monitoring the funds collection and payments.

Finance planning and mobilization of cash.

Controlling inflow and outflow of cash.

To exercise and cost control and cost reduction technique s

To see that financial interest of the company.

To protest the financial interest of the company.

It helps in achieving the business results profitably.

Waste management.

3.7 ACCOUNTS DEPARTMENT

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Sakthi sugar is an industrial organization, manufacturing sugar, power and ethanol.

Needs for Accounting systems:

a. To ascertain the profit and loss of the business.

b. To ascertain the financial position of the business.

c. To provide control over assets and properties of the company.

d. To provide information to tax authorities like sales tax, income tax, control,

exercise, etc.

e. Assistance to management on

a. Decision Making.

b. Forward planning and Budgeting

c. Controlling various management functions

f. To provide information to Government central, state and various local bodies

The main work of this department is record the financial transactions and to receive

money 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

accountant.

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 the accounts department has role of nucleus.

3.7.1 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

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

sugars PVT ltd.

3.7.2 Journal Voucher:

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

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

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

voucher respectively. If they have any question they can ask relevant person if they are no

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

vouchers in books of accounts.

3.7.3 Payment voucher:

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

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

Rs.6000.Payments more than this are made through bank.

3.7.4 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 is mainly divided in two following three sections.

Stores section

Salaries and wages section

General accounts section

3.7.5 Attendance Allowance:

Leave encashment is given to those employees who save their holidays and don’t

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

not availed.

3.7.6 Books of Accounts Department:

Cash book

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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

CHAPTER-4

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LEARNINGS FROM SAKTHI SUGARS LIMITED

4.1 LEARNING

Through my summer internship project I understood:

Step wise process taking place in production department

Efficiency of personal manager in administering labor problems, welfare and

attendance records

The marketing strategy followed in the company

Role of accounts department in managing records of all bills payable and receivable,

balance sheet, annual report and in auditing.

4.2 ISSUES IDENTIFIED

So far now , recent hiring have been not done to post of vacancy

Less value in the share market

Exports are comparatively less though they have wide scope

Ethanol production can be increased

Retail marketing can be done like parry sugar

Financial loss is more compared to previous year

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CHAPTER-5

CONCLUSION:

The summer internship project at SAKTHI SUGARS PRIVATE LTD

helped me the various processes that took place within every department and

about how the departments are integrated to achieve the organizational goal as

a whole. It was beneficial as there was an opportunity to practically learn

some of the concepts that I had been studying theoretically. This internship

helped me a lot in terms of industrial exposure and gaining knowledge about

actual management practices of the corporate.

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REFERENCE:

www. sakthisugars .com/ accessed on 3th May 2014

http://economictimes.indiatimes.com/sakthi-sugars-ltd/stocks/companyid-13135.cms accessed

on 8th May 2014

http://www.moneycontrol.com/india/stockpricequote/sugar/sakthisugars/SS accessed on 13th

May 2014

http://en.wikipedia.org/wiki/Sakthi_Sugars accessed on 25th May 2014

http://www.sakthigroup.com/home.html accessed on 1st June 2014

http://www.sakthisugars.com/profile.pdf / accessed on 15th June 2014

http://en.wikipedia.org/wiki/N._Mahalingam / accessed on 23rd July 2014

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