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NTRODUCTION
Sugar is one of the essential commodities of life and plays important role in the dietary of human beings.
It is the cheapest food for purchasing energy as an Anna (1/16 of rupees) would buy 545 calorie when
laid out on sugar as against 395 for bread, 182 for cheese and 190 for milk. In addition to an essential
energy. It is the cheapest and most abundant pure organic chemical available to so many other industries
as it is put to a wide variety of industrial use. e.g. in hair tonics, shoe polishes, photographic material
explosives, tanning leather and silvering mirrors etc. It serves as a starting material for the synthesis of
vitamin B2, also.
There are different sources from which sugar is manufacturing, but sugar cane and sugar beets are the
main sources of the word sugar supplies. Commercial sugar are also obtained from other plants such as
maple, palms, coconuts and apple etc but only in negligible quantities, sugarcane, however, furnished
almost two-third of world sugar supplies. Sugarcane, besides sugar, yield many other product like fiber
molasses, industrially important acids and valuable maxise.
HISTORY OF SUGAR
The origin of English word sugar can be traced back to age old Hindu civilization, when words like
Sharkara. In Sansikrat and Sansikrat and Sakkara in prakrit existed to convey the same sense.Then it
may be traced through all the Aryana languages, as schaker in Persian, sukkar in Arabic, sincer in
Assyrian, zucchero in Italian, sucre in French, zucher in German, saccharum in Latin and ozucarin
Spanish etc stand as Testimony for its origin from sharkara.
It would thus clear that India is the birth place of the manufacturing of sugar from sugarcane.The history
of modern sugar industries in India may be said to begain from 1932. Five factories, however, were
started in 1932-1935 but excepting one, at Rahwali, all other enterprises failed due to their uneconomic
size. Inadequate sugar cane supplies and inefficient management.
At the time of partition we had the only factory at Rahwali in the Punjab. Hence we had to start with a
scarth. Punjab is the second largest sugar cane growing province in Indo-Pakistan sub-continent.Now
update position of sugar industries in Pakistan is 38 sugar factories in Punjab and 31 in Sindh and 6 in
NWFP and Pakistan is now exporting sugar to other countries.
DETAIL OF SUGAR MILLS IN PAKISTAN
PUNJAB
1. Adam Chishtian Bahawalnagar
2. Ashraf Ashrafabad Bahawalpur
3. Baba Farid Okara Okara
4. Brothers Pattoki Kasur
5. Chanar Tandlianwala Faisalabad
6. Choudary Pensara Road Gojra7. Chistia Sillianwali Sargodha
8. Crescent Nishatabad Faisalabad
9. Fatima Kot Addu Muzaffarghar
10. Fauji Sheikhupura Sheikhupura
11. Fecto Darya Khan Bhakkar
Gojra Sam Gogra Faisalabad
13. Haseeb Waqas Mirajabad Nankana Sahib
14. Husein Jaranwala Faisalabad
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15. Hyesons Jetha Bhutta Rahimyar Khan
16. Ittefaq Sahiwal Sahiwal
17. JDW Mouza Sharin Rahim Yar Khan
18. Kamalia Kamalia Tobatek singh
19. Kohinoor Jauharabad Khushab
20. Layyah Layyah Layyab
21. National Sargodha Sargodha
22. Noon Bhalwal Sargodha
23. Pasrur Pasrur Sialkot
24. Pattoki Pattoki Kasur
25. Phalia Karmanwala Gujrat
26. Punjab Man Channu Khanewal
27. Pahirianwali Lalian Jhang
28. Ramzan Chiniot Sargodha
29. Shahtaj Mandi Bahauddin Gujrat
30. Shakarganj Jhang Jhang
. Sheikhoo Kot Addu Muzafargarh
32. Tandlianwala Kanjwani Faisalabad33. United Sadiqabad Rahimyar Khan
34. Indus Kot Bahadur Rajan Pur
35. Madina Chattah Khankah Hafizabad
36. Qand Ghar Shahkot Faisalabad
37. Yousaf Shahpur Sargodha
SINDH
38. Al-Abbas Mirwah Gorchani Mirpurkhas
39. Al-Asif Garho Thatta
40. Al-Noor Moro Naushero Feroz
41. Ansari Tando M.Khan Hyderabad
42. Army Welfare Badin Badin
43. Bawany Talhar Badin
44. Dadu Piarogoth Dadu
45. Dewan Budho Talpur Thatta
46. Faran Sheikh Bhirkio Hyderabad
47. Fauji-Kho Khoski Badin
48. Fauji TMK Tando M. Khan Hyderabad
Habib Nawabshah Nawabshah
50. Kiran Rohri Sukkur
51. Khairpur Khairpur Khairpur
52. Larr Sajawal Thatta
53. Matiari Matiari Hyderabad
54. Mehran Tando M. Khan Hyderabad55. Mirpurkhas Mirpurkhas Mirpurkhas
56. Mirza Kadhan Badin
57. Pangrio Deh Rajauri-2 Badin
58. Sakrand Sakrand Nawabshah
59. Sanghar Sindhri Sanghar
60. Shahmurad Jhok Sharif Thatta
61. Sindabadgar Deenpur Hyderabad
62. Thatta Deh Bijoro Thatta
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63. Consolidated Ranipur Khairpur
64. Larkana Naudero Larkana
N.W.F.P
65. Bannu Sarai Naurang Bannu
66. Chshma D.I. Khan D.I. Khan
Frontier Takht-I-Bhai Mardan
68. Khazana Peshawar Peshawar
69. Premier Mardan Mardan
70. Saleem Charsadda Charsadda
AZAD KASHMIR
71. Mian Mohammad Mirpur Azad Kashmir
Introduction to Organization:
The company was incorporated in Pakistan on September 19, 1964 as a public limited company and is
listed at Karachi and Lahore stock exchanges of Pakistan. The company is principally engaged in the
manufacture and sale of sugar. The company has set up a Particle Board unit. It is situated in Darya
Khan.
SHARE CAPITAL &RESERVES
Authorized capital
15,000, 000 SharesOf Rs. 10 each Rs. 150, 000, 000
Issued, subscribed and paid up capital Rs. 50, 297, 280
Main product:The main product of the Chashma Sugar Mills is white crystalline sugar.
BY PRODUCT:
The by products are following
1 BAGGASSES2 MALLASSES3 PRESS MUD
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DEPARTMENTS OF the ORGANIZATION
There are six main departments in Indus Sugar Mills.
i) Cane Department
ii) Mechanical Deptt.
iii) Chemical Deptt.
iv) Electrical Deptt.
v) Accounts Deptt.
vi) Administration Deptt.
Companys Information:
CHAIRMAN: MR. GHULAM MUHAMMAD A. FECTO
BOARD OF DIRECTORS: CHIEF EXECUTIVE
MR. MUNAWAR ALI FECTO
DIRECTORS
MR. KAISER MAHMOOD FECTO
MRS. ABIDA BANO
DR. ABDUL WAHID MUHAMMAD
MR. SAID AHMED
MR. YAHAYA AHMED BAWANYMR. JAMES T. RICHARDS
MR. FAZLUR REHMAN
MR. MUHAMMAD ASEED AKHTAR (SLIC)
SECRETARY: MR. MUHAMMED ANWAR NATHANI (ACA)
AUDITORS: M/S. HYDER BHIMJI & CO
(Chartered Accountants)
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M/S. A. R. DIWAN & CO.
(Chartered Accountants)
BANKERS: MUSLIM COMMERCIAL BANK LTD.
HABIB BANKLTD.
REGISTERED OFFICE: 1ST FLOOR, PANORAMA CENTRE,
RAJA GHAZANFAR ALI KHAN ROAD,
KARACHI-75530
ZONAL OFFICE: 1ST FLOOR, NAWA-E-WAQT HOUSE,
4-SHAHRAH-E-FATIMA JINNAH
LAHORE.
MILLS: DARYAKHAN (DISTT: BHAKKAR)
Part two
Company Management System
ORGANIZATIONAL STRUCTURE
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CHAIRMAN
M.D. (Managing Director)
Board of Directors
G.M.
---------------------------------------- G.M. G.M. G.M. Manager
(Cane) (Tech.) (Production Administration
-------------Technical Commercial Plant Production Electrical
Manager Manager Manager Manager Manager
Chief Engineer
---------------------------- Shift Engineer Senior Engineer
Administration Department
I worked in this department for 10 days. The head of this department is known as General Manager
(Admin). Presently
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Ch.M.Safdar is the head of this department. He keeps all the record of the office. There is one senior
personnel officer, one security officer and two senior clerk and the other dispatch clerks working in the
office.
The senior clerk has the duty of keeping personal files of employees. He also keeps some other
necessary files, which can be produced on demand. The dispatch clerk has the duty to give dispatch
numbers to letters, orders and correspondent of the mill. Timekeeper is supposed to keep record of
employees time of entering and leaving the mill. Security officer is responsible for all the securityrequirements of the company.
ACTIVITIES OF ADIMINISTRATION DEPARTMENT
1RECRUITMENT, SELECTION AND RETRENCHMENT OF EMPLOYEES
2MAINTENANCE OF PERSONAL RECORD
3TIME OFFICE MANAGEMENT
4 Interactions with following govt. department:Social security
Employee old age benefit
Labor department
Liaison with local administration
Worker welfare programme
programme arrangement for company executives
7. Mail receiving and distribution
8Legal matters
9Supervision of faire price shops10AUTHORIZING DISPATCH SALES
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11. SUPERVISION OF PLANTATION
12. ENTERTAINMENT OF VISITORS
Labor and personal department
Labor and personal department may be considered as the heart of any organization. The head of this
department is called labor officer. This department includes
Supervisor
Senior officer
Junior clerks
These employees are under the control of labor officer and are accountable to him. The function of
supervisors is to supervise all the activities of the other clerks. They are responsible to maintain all therecords of this department. If the labor officer is in need of any old record he produce it to him.
I worked in this department for the period of one week and observed all the information in detail.
Functions of Labor and Personal Department
1APPOINTMENTThis department has a special policy for the appointment of employees the labor department advertises
information of general public. usually the advertisement consists of posts for which the application are
required, pay, other allowances if any, qualifications for the candidates, and last date for the receipt of
application. On the expiry of the last date for the receipt of application from the candidates at merit list is
prepared and only those candidates are called for interview that are considered suitable for the post. On
the date of interview managing director of the project, manager, the head of the department in which the
vacancy exist conduct the interview. There is also written test and medical test for the candidates to be
selected for the post. The candidate who is declared medically fit and also considered suitable for the
post is then selected for the post on the terms and conditions decided with the applicant. The labor
personal department issues the orders of the appointment with the approval of the project manager.
2 PROMOTION
The promotion of employees depends upon the seniority of the employee. When vacancy of higher post
occurs the senior most person is promoted first to fill up the vacant post.
In this project all permanent employees are provided 50%chance of promotion. For example two postsare lying vacant in any department, the first post is filled up from temporary or the manager selects direct
new person for the post. Moreover the seniority of all confirmed employees is considered from the date of
regular appointment. In a case of two or more appointments are made at the same date, then their
seniority is accounted from the dispatch number of the order of the appointment respectively.
In case of vacancy in any department, all the employees of the department are equally considered to be
promoted to that post the employees who is the most senior and who have got the necessary qualification
for the post promoted to that post. If any employee is the senior most but does not posses the required
qualification he is not to be promoted and the next senior one who have the required qualification is
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promoted to the post.
In case of transfer of employee from one department to the other department or from one section to the
other section a seniority of employee for promotion is considered of appointment and confirmation. It is
not to be considered from the date on which the employee has been transferred.
3Punishment
All the employees are required to obey and abide the rules and regulations of the project. Violation of
rules and regulations by the employees is considered as misconduct of the employees and consequently
leads to the punishment.
The following acts of the employees are considered to be a violation of the law.
1.disobedience to the supervisors2. refusal to obey the lawful orders of the supervisors3. taking or giving bribes
3. to damage the property of the factory5. absence without leave from the factory6. late arrival in the office7. found sleeping during the working hours8. found absence from the work for one or two hours
Any employee who is found guilty of the above miss conducts, action may be taken against him, which
leads to the following punishments
1. the management will issue a warning to the employees to be careful for future and not to repeat thisaction or otherwise he will be punished.
2. some time the management makes deduction from the salary.
3. some time the management will hold the increments or promotions for a certain period of time. Theynot give them increment and promotion during that a period of time
4. some time he his demoted to the lowerpost
5. in case of serious miss conduct the management will dismiss him from the services.
The head of the department to which the guilty employee is concerned sends the case of employee to the
personal department. The personal department will call for his explanation and the employee will explainhis position in the light of charge framed against him within a specified period of time. The explanation is
received from the employee and then the case of the employee with explanation is forwarded to the
project manager for the final decision. If the employee is found guilty he is punished otherwise the case is
dropped by the project manager.
4Transfers
One of the functions of this department is the transfer of employees. Usually the employees are not
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transferred from one department to the other department. But if any employee of a department wants to
transfer to another department consent of the department is essential. After positive reply from both
departments i.e. the department from which he wants to be transferred and the department to whom he
want to be transferred. The case is transferred to the project manager who posses the transfer orders.
Leave procedure
The following leaves are allowed to the employees of the mill.
1CASUAL LEAVE2MEDICAL LEAVE3LAVE WITHOUT PAY
There are special rules and regulations for leaves made be the factory. These rules are applied to each
employee of the mill.
The explanation of above leaves are as followed a. casual leave
ACASUAL LEAVEThe project manager grants the casual leave. The leave is allowed only to the permanent employees of
the project. Every employee has the right to avail ten days casual leave per annum, Three days at a time
is the maximum ceiling for the leave.
BMEDICAL LEAVE
This leave is also allowed to the permanent employees. This leave can be granted on the basis of
medical certificate issued by any authorized medical officer. In the case of one day no medical certificate
is necessary, every employee is allowed ten days medical leave per annum. If the disease of the
employee is such that it requires more than a day then the approval of the project manager is necessary.
CLEAVE WITHOUT PAY
This leave is granted to the employees when leave without pay is exhausted and none of the type of
leave is available at his credit, leave without pay is granted by the management of the projection special
cases this leave can not be more than one month at a time. But can be extended in special cases.
Any employee who is found guilty of the above miss conducts, action is liable to be taken against which it
leads to the following punishments
1. the management ill issue a warning to the employees to be careful for future and not to repeat thisaction or otherwise he will be punished.2. some time the management makes deduction from the salary.3. some time the management will hold rhea increments or promotions for a certain period of time.They not give them increment and promotion during that a period of time
4. some time he his demoted to the lower post5. in case of serious miss conduct the management will dismiss him from the services.
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Workman compensation
In this project compensation is paid to the workers when they receive injuries in the cause of work during
accident. If the worker has violated the safety precaution the management is not bound to pay
compensation.
The management also pays compensation for any kind of diseases, which are caused as a result of the
type of duty. Also in this case he must prove that he has suffered disease during the employment. If the
disease pertain to preposition period, compensations cannot be claimed.
Fringes benefits
The employee of this mill is given the following fringe benefits in the form of money or shape of certain
facility in addition to their monthly wages. These benefits are mentioned below
FUNDS
The project maintain a provident fund for the employee under the rule of provident fund every permanent
employee of factory who have completed six month continue service in the factory is eligible subscribetowards the fund.
Provident fund consists of deductions from the monthly wages of the employees as equal amount is also
contributed toward the provident fund by the mills.
The total amount of provident fund is deposited in the account of provident fund and separate account is
maintained for every employee in the account office of the factory. The total amount alongside interest is
paid to the employee in lump sum upon completion of office tenure. During the employment an employee
can take loan from the provident fund for the urgent needs. The management sanctioned the required
loan upon 50% of the total loan is recovered in easy installment from the monthly salaries.
Place allowance
Place allowance are given in the following ways
1. those employees whose pay is unto Rs. 300 p.m. is given 205of the basic pay
2. those employees whose pay is up to 301 to 500 per month are allowed Rs. 155of their basic pay. 3 those whose salary is more than R.s. 500 are given 10%of their basic pay.
HOUSE RENT
The employees are also paid hose rent at the basic pay=claw 405 means cost of leaving allowance up to
Rs. 500 = 110 fix
Rs. 501/-uptors 735/-=10%of basic pay+25+25
Rs735/-and above 9736)=105 of their basic pay=25
MEDICAL ALLOWANCEEvery employee and his family are given free medical facilities. Whenever any employee or any of his
family member fall ill, the management is responsible for their medical allowances, payment made as a
result of medical treatment are disbursed later on. The medical parishioners prepare the bills of medicine,
and these bills are offered to the finance manager for payment.
FACED WASHING ALLOWANCE
Washing allowance is given to all the employees at the rate of rs 6 per month.
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EDUCATION FACILITIES
In the Fecto sugar mills there is special arrangement for the employees children education.
Educational facilities are intro under worker children ordinance 1967, under the ordinance each factory
should provide free education to the children of the employees. This ordinance applied to all those
organizations 29 or more than 20 workers. The employee receiving monthly wages less than Rs.10000
are entitled to avail these facilities. Under the ordinance the education will be free for one child of each
employee of the factory. The children of the employee are free from tuition fee school funds and the cast
of the books.
There is also transportation system for the children of employees.
Scholar Ships To Children Of Employees
In this mill without free education to the children of the workers scholarship at the rate of rs 15 rs25 rs 30
are awarded to the deserving children of the employees in their 5th 8th and 10th classes
CANTEEN FACILITIES
The mill has provided the canteen facility to its employees. Adequate furnitures and other facilities areavailable in the canteen.
FAIR PRICE SHOP
The mill has provided a fair price shop facility to the employees. In the fair price shop a person can buy
the comm. duties of daily use on their prices
BONUSES
In this mill employees are given the bonus also. The number of bonus usually is divided between the
management and workers unions on production basis. /
1 one bonus is given on the production of 1000000 lack bags of sugar2. The production of 2000000 lack bags of sugar are given the two bonuses
3on additional 50 thousand bags of sugar one bonus is given. The amount of one bonus is equal to onebasic pay of the employee, but after up to the present time the required limit for bonus is not attained as
the project is running in losses and the production has always been less than the actual capacity.
Employees /Personnel in various section
CLASSIFICATIN OF WORKERS
The workers of Fecto sugar mills can be classified as under:
1 PERMANENT WORKERS
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2 TEMPORARY WORKERS3.. SEASONAL WORKERS4.. DAILY WAGE WORKERS5.. APPRENTICES
Permanent workers
Those workers who are engaged on performing their services for the whole year are called permanent
workers. They are appointed on those jobs, which are of permanent nature.
Temporary workers
Temporary workers are appointed on those jobs, which are of temporary nature. They are likely to be
financed in a maximum period of nine months.
Seasonal workers
These workers are hired during the cane crushing seasons, when the season is over they are lay off.
Daily wage workers
These are the workers who worked and get their remuneration on daily bases. They can be hired in any
section where they are needed.
Apprentices
These are the learners. This is a work mean, to which allowances are paid during the training and after
the completion of the course.
Designation and number of employees
CANE DEPARTMENT
Designation/Department STR
CANE DEPARTMENT
General Manager 1
Cane Manager 1
Dy. Cane Manager 2
Tr. Cane Officer 1
Sr. Cane Officer (Admn) 1C.O. (Admin)/ACO (Admin) 1
Office Supdt./Office Supr./ Typist 1
Office Supdt./Office Supr./ Computer I/C. 1
Cane Admin Office Clerks 5
Qasid/Sr. Qasid 2
Tea Boy 1
----------
16
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----------
Designation/Department STR
LOAN OFFICE
Loan Supdt./Loan Supr/ Loan Asstt. 1
Clerks 2
Asstt. Fitter/Fitter (Agri) Workshop 1
----------
4
----------
CANE YARD & WEIGHBRIDGES
Asstt. Cane Officer (Yard)/
Sr. CO (Yard)/C.O. (Yard) 1
Card Supdt. 1
Shift Supr. 2
Weighment Incharge 4Parchi Clerk 6
Posting Clerk 6
Line Jemedar 6
Gate Pass Clerk 6
Line Jemedar (Gate pass) 3
----------
35
----------
CANE CARRIER
Feeding Incharge 3
Feeding Clerk 9
Line Jemedar 6
----------
18
Designation/Department STR
CANE TRANSPORT OFFICE
Clerks 3
Line Jemedars 3
----------6
----------
PROGRAMME OFFICE
Programme Officer/Asstt.
Programme Officer 1
Programme Supdt./Supr. -
Programme Clerks 6
Line Jemedar/Qasid 1
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Dak Runners/Line Jemedar 5
----------
13
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FIELD OFFICE
Sr. Cane Insp./Cane Insp. 3
Fd. Supr./Sr. Fd.Man/Fd. Man 32
----------
35
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PURCHASING CENTRES
Depot. Incharge (Clerks) 16
Clerks 9
Line Jemedars 16
----------
41----------
MECHANICAL DEPARTMENT
Designation/Department STR
MECHANICAL GENERAL OFFICE
General Manager (Technical) 1
Dy. General Manager (Tech)
Technical Manager/Chief Engr. 1
Dy. Chief Engr./Sr. Engr. 4
Sr. Shift Engr./Shift Engr. 3
Asstt Engr./Tr. Engr. 1
Drawing Engr/A.D. Engr. 1
Draftsman/A.D. Man/Tracer 1
Typist Clerk 1
Qasid 1
----------
14
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MILLS HOUSE
Mill Engr/Asstt M. Engr/Foreman 1
Shift Foreman/A.Shift Foreman/Mechanic 5Sr. Fitter 5
Fitter 8
Asstt/Fitter 8
Helpers 13
Welders -
Oil man 3
Pump Coolies 5
Tipper Operators 4
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Tip. Carrier Operator 2
Cane Carrier Operator 4
Clearing Coolies 18
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76
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Designation/Department STR
BOILER HOUSE
Maint. Engr/A.Maint.Engr/Foreman 1
Shift Foreman/A.F.man (Shift)/shift Supr. 4
Asstt. Shift Supr. 3
Fireman/A.Fireman 14
Waterman/A.Waterman 9
Fire Coolies 8
Feed Pump Attd. 3
Feed Tank Attd. 2
Bagges Carrier Attd/Oilman 2
Welders -----------
46
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BOILING HOUSE
Boiling House Engr/ Asstt.Engr/Foreman 1
Shift Foreman/A.Shift Foreman/Mechanic 3
Sr. Fitter 3
Fitters/Fabricators 8
Asst. Fitters/Helpers 9
Sr. Welder/Welder/A.Welder 6
Oilman 4
Pump Cooly/Pump Attd. 18
----------
52
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KHALASI GANG
Kh. Foreman/Kh.Jem. 1
A.Kh.Jem. 2
Mill House Khalasies 11
Boiling House Khalasies 6
----------
20----------
MECHANICAL WORKSHOP
Workshop Incharge 1
Sr. Engr Wksp/Engr Wksp/Foreman -
A.Foreman/Mechanic 1
Sr. Fitters 1
Fitters 2
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A.Fitter/Helpers 1
Master Turner 1
Sr. Turner/Turner 3
A.Turner 1
Foreman Welder/Hd. Welder 1
Welders 2
Helper Welder/A.Welders 2
Pettern Maker 1
Black Smith 1
Hammerman 1
Moulder/Asstt Moulder -
Shaperman 1
Plannerman -
Coolies 3
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Designation/Department STR
AUXILIARY TECH. SERVICES
Asstt. Engr./Foreman -
A. Foreman / Mech. 1
Sr. Fitter / Fitter 1
A. Fitter / Helper / Cooly 2
Diesel Fitter 1
----------
5
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TURBINE AND COMPRESSOR
Sr. Turbine Engr/Turbine Engr. 1
A.Turbine Engr/Foreman/General Foreman 1
Mechanic/Asstt Foreman 1
Sr. Tur. Operator/Sr. Fitter 1
Tur. Optr/Fitter 9
Asstt. Tur. Optr/Helper 2
Coolies 2
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17
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CHEMICAL DEPARTMENT
Designation/Department STR
CHEMICAL OFFICE
Process Manager (DGM. (P) 1
Chief Chemist/Dy. chief Chem. 1
Senior Chemist/S.Chemist/Trainee Chem. 6
Office Supdt. 1
Qasid -
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9
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LABORATORY
Sr. Lab. Officer/Lab Officer 1
Lab. Chemist 3
Lab. Analyst 9
Asstt. Analyst 3
Lab. Pointsman 3
Sampler 17
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36
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PROCESS CONTROL
Juice Foreman/Asstt.Chem. 1
Juice Supervisor/Asstt. Juice Foreman 3
General/Record Clerk 3
Juice Heater Mate/A.Supp. 2
Juice Heater Cooly 1General Cleaning Cooly 6
----------
16
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Designation/Department STR
DEFECATION STATION
Def. Attendant 1
Def. Cooly 5
Def. Mate/Asstt. Supp. 3
----------
9
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CLARIFIER STATION
Mate/Asstt. Supp. 3
Coolies 4
Asstt. Mate. 1
----------
8
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VACUUM FILTER STATION
Mate/Asstt.Supervisor 3
Coolies 10
----------13
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EVAPORATION STATION
Quadman/Asstt. Supervisor 3
Quad Operator 3
----------
6
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Designation/Department STR
TALO REFINERY STATION
Talo Technician/Operator 3
Coolies 5
----------
8
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PAN & CRYSTILLIZER STATION
Sr. Pan Chemist/Pan Chemist 1
Head Pan Boiler 3
Head Panman 3
Senior Panman 4
Panman 3
Assistant Panman 3
Pan Mate 3
Assistant Panmate 3
Pan Coolies 16
Cryst. Mate. 4Cryst. Coolies 4
Pan Apprentices -
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47
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CENTRIFUGAL STATION
Mate/Asstt Suppr 3
Asstt Mate. 3
Centrifugal Operator 17
Magma/Remelting Coolies 12
----------
35
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Designation/Department STR
BAGGING HOUSE
Bagging Clerk 2
Mate/Asstt Supr 2
Asstt Mate 2
Bagging Filling Optr. 1
Bagging Coolies 21
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28
----------L.S. STATION
Attendant -
Coolies 2
L.S. Mate 3
----------
5
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MILL SANITATION
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Coolies 3
Records Clerk 1
ELECTRICAL DEPARTMENT
Designation/Department STR
C.E.E. OFFICE
Chief Electrical Engineer 1
Deputy Chief Engineer/
Sr. Inst. & Elect. Engg. 1
Qasid 1
----------
3
----------
POWER HOSUE
Supervisor -
S.B.S.E. 3
Asstt. Switch Board Optr. -
----------
3----------
ELECTRICAL SHIFTS
Inst. Electrical Engg. 1
Asstt. Engr./Foreman/Supp. 3
Senior Electrician 3
Electrician 9
Junior Electrician -
Tubewell Operator 2
Helper/Asstt. Elect. 3
Assistant Wireman -
Coolies 2
----------
23
Designation/Department STR
ELECTRICAL WORKSHOP
Foreman/Supervisor 1
Asstt. Foreman(H.Winder) -
Senior Winder/Winder 1
Asstt. Winder/Winder Helper 1
Electrician 1
Wireman/Electrician 1
Assistant Wireman -Lineman/Khalasi 1
Welder -
Asstt. Lineman/Asstt. Khalasi/
Asstt. Electrician -
Electrical Fitter 1
Cooly -
----------
7
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----------
INSTRUMENT WORKSHOP
Workshop I/c./Instrument Engr/Assttt. Engr 1
Foreman/Asstt. Foreman 1
Asstt. Supervisor -
Senior Technician/Tech. 1
Helper/Cooly 1
----------
4
----------
INSTRUMENT SHIFTS
Technician/Asstt. Tech. 3
Helper/Asstt. Tech. -
----------
3
----------
ACCOUNTS DEPARTMENT
Designation/Department STR
FINANCE DEPARTMENT
Finance Manager (Malik Ishfaq Hussain) 1
Chief Accountant (Rana Saeed Akhtar) 1
Store Account Officer (Hafiz Sajid Akhtar) 1
Sr. Accountant (Mr. Sohail Siddiqui) 1
Sr. Accountant (Mr. Mobishir Ahmad) 1
Store Accountant (Mr. Shahid Akhtar) 1
Record clerk 1
(Mr. Qasim)
Typist 1
Qasid 1
Dak Runner 1
Tea Boy 1
----------
11
----------
Designation/Department STR
SUGAR GODOWN
Deputy Manager/Off. I/C. 1Supervisor 1
Asstt. Store Keeper 4
Godown Boy. 5
Qasid 1
----------
12
----------
CANE ACCOUNTS
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Accounts Officer/Asstt. Accounts Officer 1
Accounts Supervisor/Asstt. Accountant 1
Junior Programmer 1
Computer Operator 1
Data Feeding Clerk/Ledger Posting Clerk -
Clerk (Cash payment) 3
Billing Clerk 1
Checking Clerk 4
Clerk (Bank Payment) 2
TPT Clerk -
Qasid -
----------
14
----------
FAIR PRICE SHOP
Incharge Fair Price Shop 1
Cooly 1
----------2
----------
MANAGEMENT OFFICE
T.D. OFFICE
Technical Director 1
Executive Secretary 1
Qasid 1
----------
3
Designation/Department STR
LOCAL PURCHASE OFFICE
Purchase Manager (Mr. Daud Shah) 1
Purchase Officer (Mr. Irshad Ahmad) 1
----------
2
----------
STORES SECTION
Manager Store/Store Officer 1
Sr. Officer Store/Asstt. Store Officer 1
Store Keeper 1
Asstt. Store Keeper 3
Storeman/Clerk 4Asstt. Storeman/Store Boy
Sr. Store/Boy/Helper 6
Typist/Sr. Typist 1
Qasid 1
----------
18
----------
ADMINISTRATION DEPARTMENT
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Designation/Department STR
PERSONNEL OFFICE
Manager Administration (P.I.R.O) 1
(Malik Ishfaq Hussain)
Supervisor 1
(Malik Iqbal Hussain)
Officer I/c/Off.Supdt. 1
Steno Typist/Typist 1
Record Clerk/General Clerk 1
Office Attendant 1
Mr. Allah Ditta
----------
6
----------
TIME OFFICE
Supervisor/Asstt. Supp. 1
Mr. TariqClerk 3
Qasid 1
----------
5
----------
DISPENSARY
Pharmacist 1
ESTATE OFFICE
Estate Officer -
Plumber 1
Sweepers 6
Mali 1
Carpenter 1
Gardner 2
Cooly -
----------
11
----------
CIVIL SECTION
Sr. Civil Engr./Civil Engr. 1
Sr. Civil Supp./Civil Supp. 1
Clerk/Supervisor 1
Mason (R.F.) 1
Cooly 4
----------
8
----------
SECURITY SECTION
Security Officer/Asstt. Sty. Officer 1
Asstt. Security Supervisor 1
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Security Jemadar 3
Security Leading 1
Security Man 3
Security Watchman 35
----------
42
----------
M.T. SECTION
M.T. Incharge/M.T. Supdt. 1
Mechanic/Sr. Fitter 1
Sr. Driver/Fitter -
Driver 6
Tractor Driver -
Cooly/Helper 1
Cleaner -
----------
11
----------Designation/Department STR
GUEST HOUSE
Incharge Guest House 1
Cook 2
Bearer 1
Guest House Keeper 1
----------
5
----------
TELEPHONE EXCHANGE
Supervisor/Asstt. Supp. 2
Sr. Telephone Optr. 2
Telephone Optr/Asstt. Optr. 1
Lineman -
----------
5
----------
Career ladder??????????????????/
Major Managerial Policies
In each and every organization discipline is the key to the stability, efficiency and orderly pursuit of
business.
For employees guidance and to help them guard against those acts or omissions which are inimical tothe interests of the company and those of themselves, certain managerial policies are outlined below. It is
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the duty of each and every employee to follow these policies and abide by all the rules and regulations
otherwise the violations of these norms of conduct may subject one to disciplinary action commensurate
to the gravity or seriousness of the violation in every instance and the incorrigible attitude shown.
The disciplinary action may range from a verbal admonition, written reprimand, suspension, and
ultimately, separation or termination from employment for just cause. As a general rule, however,
offences involving dishonesty or breach of trust will be penalized with dismissal.
Conflict Of Interest:
The following are examples of conflicts which must be avoided unless specifically authorized by the
Chairman and Managing Director or his duly authorized representative:-
a) Employees may not have ownership interest in suppliers, customers or competitors, except for holding
of less than 1% of the outstanding stock of companies with publicity traded stock.
b) Employees may not seek to profit from confidential information or business opportunities that are
available to them as a result of their position with the Company.
c) Employees who purchase or have any influence on the purchase of commodities may not engage in
personal investment or speculation in commodity futures.
d) Employees may not act as director, officer, partner, employee, agent or consultant for a supplier,contractor, customer or competitor.
e) Employees may not receive gifts, loans, or favors from suppliers or others with whom the company
does business, except (1) casual entertainment or gifts of small value consistent with accepted business
practice and (2) loans from financial institutions on prevailing terms and conditions.
f) Employees may not use Company funds, facilities, personnel, or other resources for private purposed.
The interests, activities, and associations prohibited by this policy are those of a direct, as well as indirect
nature. Thus, those who are acting for an employee or of his spouse or member of his family, may be
included where the facts are known to the employee.
It should also be stressed that non-adherence to employees responsibilities mentioned in Section. A may
also result in violations of the companys policy against conflict of interest.
Attendance And Punctuality:
All employees are expected to be at work during their official working time, except when on approved
leaves of absence or prevented from reporting to work by disabling sickness or other emergency
situations beyond their control.
When you cannot report for work, you should report your absence to your immediate superior within the
day of absence through any means available, such as telephone, telegram, or messenger. Failure to give
the required notification will result in your absence being treated as UNEXCUSED.
Likewise, employees are required to report for work punctually on their designated starting time. It is not
permitted for an employee to compensate for tardiness by working overtime.If you are late for 10 minutes or more, it is discretionary on the part of your superior whether or not to
accept you for work. if you are sent home, you will not be paid for the day.
Examples of conduct in violation of the above norms are:-
a) Absence without leave (AWOL) or notification. Being absent without notification and approval of leave
from the competent authority for 10 consecutive days or more will be considered as hob abandonment.
b) Excessive unexcused absences.
c) Excessive unexcused tardiness/under times.
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Absence and tardiness/under times will be considered excessive where they are incurred for no valid
reasons and in such frequency as to cause serious disruption of your work and that of the department
where you are assigned.
As a general rule, 3 unexcused absences, and 3 unexcused tardiness/under times in a month will be
regarded as excessive.
Dishonesty And Breach Of Trust:
The relationship between the company and its employees regardless for rank, is of necessity founded on
mutual trust and confidence. When an employee commits an act of dishonesty or breach of trust, he give
cause for the company to lose trust an confidence in him and justifies his termination from employment.
Examples of acts or omission which violate the high standards of honesty expected of employees are:-
a) Theft of company property or of others within or outside company premises.
b) Misappropriation, misuse, or unauthorized use of company funds, money or property.
c) Submission of false, padded, tampered or fictitious documents in support of claims for reimbursement
or other monetary payments form the company.
d) Falsifying, altering and tampering of company records such as spoiled merchandise receipts,
employment records, overtime slips, quality control reports, etc.e) Punching or filling in of another employees time card and having ones time card punches or filled inby another.
f) Accountable company employees who incur unexplained shortages are presumed to have
misappropriated the shortages.
g) Similar or analogous acts of dishonesty, fraud and breach of trust.
Misbehavior and Misconduct:
Examples of acts which constitute misconduct are:-
a) Insubordination and disrespect to superiors and other company officials, guests, visitors and other
persons dealing with this company.
b) Fighting or quarrelling inside company premises.
c) Loitering or unauthorized leaving of ones post while on duty. d) Gambling inside company premised, including the making, taking and payment of bets.
e) Unauthorized or unreported possession of firearms or other deadly weapons.
f) Inflicting physical injuries or manhandling another person inside company premises.
g) Possession and use of prohibited drugs.
h) Sleeping on duty.
i) Drunkenness or reporting for work under the influence of liquor. Drinking of alcoholic beverages is
prohibited inside company premises.
j) Immorality and indecent behavior.k) Threatening another person with harm or physical injury.
l) Engaging in activities which are disruptive of company operations, such as gossiping, intriguing against
honor and selling personal goods inside company premises.
m) Abuse of company benefits and privileges such as malingering or feigning illness to justify absence.
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n) In General, violation of other working rules and regulations which may be issued from time to time such
as:
I. Leaving the job unattended without permission of the supervisor or entertaining the guests or friends at
the place of duty.
II. Leaving the premises during duty hours without proper authorization or gate pass duly signed by the
Manager of the Department.
III. Taking any bags, brief case or any other material in the company premises without proper permission
of authorities concerned. It is advisable to leave such things in the custody of security at the Gate Office.
IV. Using the telephone for personal calls without permission.
V. Entering the factory premises or offices without wearing the Identity Cards or the name badges.
VI. Taking away the company property without any proper gate pass or authorization slip issued by the
Manager of the Department.
Breach Of Security And Safety:
Examples of acts which fall under this category are:-
a) Causing destruction or damage to company materials or property, deliberately or through negligence.b) Causing wastage of company materials and property, deliberately or through carelessness or
negligence.
c) Sabotage or deliberate downgrading of company property, materials and products.
d) Unauthorized disclosure of confidential company information obtained by reason of ones employmentin the company.
e) Tampering with fire protection and other safety equipment.
f) Substituting or attempting to substitute company equipment or property.
g) Refusal to comply with or evasion of security requirements, such as searches by security guards.
h) Failure to report any misconduct or dishonest act of a co-employee.
i) Smoking fire or exposing.
j) Horse playing
k) Unauthorized use of company vehicles, machinery and other equipment.
l) Refusal to use prescribed personal protective safety or working under unsafe conditions by avoiding
goggles, or any safety equipment provide for jobs.
Breach of Cleanliness and Sanitation:
Examples of unclean unsanitary acts are:
a) Urinating or spitting on floors, walls and other places other than the proper receptacles.
b) Littering, throwing cigarette butts and other acts which contribute to poor house keeping.
c) Refusal to wear prescribed uniform or footwear inside company premises.
d) Abuse or misuse of uniforms other company provided personal equipment.e) Poor personal hygiene such as long hair, dirty fingernails or uniforms etc.
f) Improper or abusive use of toilets and other company facilities.
g) Failure to comply with other sanitary rules, such as washing hands after coming from toilets.
Just causes for Termination of Employment:
The following acts and omissions shall be treated as misconduct:-
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a) Willful insubordination or disobedience to any lawful and reasonable order of a superior.
b) Theft, fraud, or dishonesty in connection with the employers business or propertyc) Willful damage to or loss of employers goods or propertyd) Taking or giving bribes or any illegal gratification
e) Habitual late attendance
f) Habitual absence without leave or absence without leave for more then ten days
g) Habitual breach of any law applicable to the establishment.
h) Riotous or disorderly behavior during working hours at the establishment.
i) Habitual negligence or neglect of work
j) Frequent repetition of any act or omission referred to in clause
k) Striking work or inciting others to strike in contravention of the provisions of any law, or rule having the
force of law
l) Go-slow.
Part Three
ADMINISTRATIVE / MANAGEMENT STYLES
ADMINISTRATIVE / MANAGEMENT STYLES
Success or failure of any organization largely depends on the management. Mangers have following four
major roles to perform.
Planning
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Organizing
Leading
Controlling
For effective performance of the above mentioned functions the managers need different skills. Like,
effective managers require communication skills, in written, oral and non verbal form. They should be
creative and innovative, Should be able to manage time and stress. Motivate and influence the others.
They should be able to manage the conflicts etc.
There are two major sections of the organization.
.
1 Plant.
2 Head office
Plant related administration is only up to plant. plant administration administer only the plant. and head
office administer only the head office. HRM deals with both plant and head office. here in head office
peoples are very well disciplines there is no chain of strike or dispute in head office. Same is the case
with the plant.
Here both in head office and in plant administrator are very strick by the rules and regulation. Otherwise
the here is very friendly. people fell free to talk with each other. Here the administrative style is democratic
not the autocratic.
Administration styles has its impact on the people here but senior executive here have a combine type of
attitude at the time of closing they are really strict but at beginning little relax.
But when you talk about the styles on the morale of the people. Then you can take the example of this
that
After its merger with the lever brother. people are very much frustrated about their future.they are very
much cautious that what will be happened in the future with respect to their jobs.and all these things are
really effecting the efficiency of the people performance.the is the one vview of the picture but on the
other there are a bundle of incentives like hajj ticket,allowances,really incouraged the employee to show
there best.and they are showing their best here.because all these activities incouraged the people.here
the working envirnment is very friendly mess and tea was the two thing which I am really missing.there is
no question that when you provide all these facilities then the morale of employees will automatically rise.
READ the above page of mgt styles WITH CARE/????????????????/
Part four
Production facilities
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PRODUCTION DEPARTMENT
The head of this department is called the Production Manager. The Production Manager is also is called
the Deputy Manager of the project. There are four Shift Chemists and one Assistant Chemist under the
control of Production Manager.
The main function of this department is to produce maximum sugar from the cane available to the factory
with minimum possible sugar losses during manufacturing by controlling various units, processes and
operations.
Functions Of Production Department
Function of production department may be classified as follows
1- PRODUCTION
Supervising the process of production in three shifts viz; crushing of about 1500 tons of sugar cane,
delousing of juice, its carbonation,sulphitation ,filtration and concentration by operating juice heaters
liming gassing etc
The process involves washing of filter cloth and press mud, operation of sulphur furnace, vacuum
evaporators, steam boilers, pan boiling molasses tanks juice, molasses pumps crystallizers and
centrifugal machine etc
2-LABORATORIES
Conducting special and routine analysis far quality control in each of three shifts .The laboratory chemist
who is independently in charge of a shift prepares about 30 routine analyses per hour and two-lab
analyses assisted by lab boys and laboratory samples conduct 10 to 15 analyses per hour.Preparation of
daily weekly forth nightly and monthly reports and laboratory charts.
3-BOGGING HOUSE
Packing the good quality sugar, maintaining the stock of new empty bags, pointing the serial no. in the
correct manner ,handing over the shift production to the sugar go down, repair of damaged filter cloth and
preparation of new filter cloth is done by the bogging house.
4-SUGAR GO DOWN
Stocking and dispatch of sugar bags to various government agencies, dealing with the food directorate of
N.W.F.P., excise departments, preparing periodical reports of disposal of stock, sticking of damaged bags
during off season etc. is done by this department.
In this department the following materials are used during manufacturing.
1 Lime Stone
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2 Hard Coke
3 Filter Clothe
4 Sugar
5 Cotton Bags
6 Furnace Oil
PRODUCTION PROCESS
After weightment, cane comes on cane dipper and through the cane carrier it passes through the cane
leveler and then reaches at the cane cutter which cut it into small pieces. After it cane passes through
cane shredder which cut it into very small pieces. Now the cane is in position to give maximum juice.
Then the cane reaches at mill house where the juice is separated from baggage. Baggage go to the boiler
house where it is burnt and the heat energy so gained is used for steam and to produce electricity. The
juice gathers in a big tank named "mix juice tank". The juice then goes to the process house where it is
heated from 25-70C. Then line water (Ca(OH)2) is mixed in it to get rid of impurities. Then it is sent to
the clarifier where it is heated from 60-105C and by the Co-agulent, the mud is separated from juice.Then it goes to the evaporators where water evaporators. Here the brix of juice goes from 15-65. This
thick juice is named as "syrup". Now the syrup is sent to A-Pan where it is heated so much that it reaches
at its supersaturated point. A massecuite is produced by adding small amount of grain in it. Crystals of
sugar and molasses is present in A - Massecuite. To separate sugar from molasses, it is sent to A -
centrifugal. In this way, A - sugar is gained. The molasses separated from A - sugar is sent to B-Pans,
where it is heated again and B-Massecuite is produced and the sugar gained from it is known as B-Sugar.
C-sugar is also gained by the molasses of B-sugar. The molasses separated from C-sugar has a very
little size of sugar in it, so it is sent to the separated thanks and it is called "Final molasses". C-sugar is
used for graining purpose while A and B sugars are sent to Talo-house for colouring purpose. Chemicals
litre Phosporic Acid, talo-flak, talo float and lime scerate are mixed in it to remove the impurities. This
sugar is known as "Liqour" and to get pure sugar from it, it is sent to "refine-pans". Refine massecuite is
produced and after passing it from refine centrifugal, sugar is separated from molasses. It is passed
through drier to dry it. Then it is passed through grader where "product sugar" is separated from small or
big sugar. This small or big sugar is again dissolved in water to get product sugar. Product sugar is sent
to godown after packing.
CANE DEPRTMENT
This is perhaps the most important department of the establishment outside the factory. Cane department
produces the basic raw material which is usually in short supply and for which there are competing forces
namely Alternate crops, Gur making crushers and other sugar mills. Therefore, only the effectiveworking of the department can ensure full capacity operation of the mill throughout the crushing season
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and thus reduce the fixed costs.
This department is considered as the backbone of the mill. The function of this department is as under
which are two folded.
1. cane department2. cane procurement
The head of the Cane Department is known as Cane Manager. There is a Cane Inspector who is under
the direct supervision of Cane Manager. The Cane Inspector examines the work and steps that are
undertaken for the cane development. Also a large number of Field Men are working under the direct
supervision of Cane Manager. The Field Men make crops survey and determine the cane area of the
growers.
The whole area covered by the production process has been divided into 25 zones. The Field Man
supervises each zone. The main reason of dividing the area into zones is to encourage more quantity of
cane. Various stages of cane development and procurement are as follows.
Stages Of Cane Development And Procurement
The first stage in any development and procurement programme is the correct survey of the sugar cane
crops. Each Field Man is responsible to make the first survey in his respective area.
If a long-term incentive development programmed is in preview the survey should include the entire area
of the zone and cultivated land available in the zone, so that the target for bringing the area under
cultivation may be ensures. For the purpose of the cane procurement a survey of the area under sugar
cane only is sufficient. For the procurement purpose complete list of the Mohalls under various field staffis to be prepared showing distance of each mahal or village from the mill. Convenient place in
consultation with the local people are also to be fixed as loading centers and their accurate distances
from the mill be certain and declared which will form the bases of payment of transportation charges. The
list of all the loading centers shows their distance from the mills is accurately and carefully prepared.
The cane superintendent will provide this to the Cane Accountant for calculation of transport charges
where such a calculation is required. While preparing list of villages, each village should be continuous to
the other. This list and serial orders will also be followed in the programme register and during the
issuance of indents.
SURVEY
The field men will commence the survey. Normally the survey should start when the crop is about three
feet high as that plot of sugar cane can easily be seen from the distance and no plot is missed during the
survey. The field man will prepare a weekly advance programmes of the visit of the villages in his area
and also makes an announcement among the sugar cane growers of his visit, so that they may also be
able to contact the field man during the visit.
Local information has to be collected about the area actually surveyed. Physically, by walking around the
plot and counting the number of steps he should do the survey. The surveyor step should be measured
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which will give the length of the plot.
All survey records should be prepared in the name of the owner of the land and not subtenants unless
there are any special circumstances in any particular case.
During the survey the Field Man contacts the growers and then takes a note of their demand for seeds
sand fertilizers. The field man then prepare the demand schedule for the respective zone and provide it to
the department for necessary action.
CHECKING OF THE SURVEY
The field man will do the actual field survey. The duty of the Cane Inspector of the area will be to see that
the survey is being done is accurate. To achieve this the Cane Inspector will visit these areas along with
the Field Man who has surveyed it so that the cane inspector will take up any plot and first see the area
noted by the field man and then he himself survey the plot. If any difference is noted it will be immediately
checked out. Thus checked out is filled in survey checking (D.D. form) and sent to the cane
superintendent every week along with a weekly progress report and explanation of the field man for anydiscrepancy in his founding during the checking.
If facilities are available survey record should also be checked with survey record of the revenue
authorities.
Second survey
In the month of February and March the field man makes the second survey of his zones. The field man
examines whether the grower has shown all the seeds as provided by the mills. They also point out he
problem of the grower and try to solve them as son as possible.
Third survey
The-Field Man makes the third survey in the month of May and June. During the survey, he makes
agreement with the grower. In his agreement the Field Man gives surety of purchases to the growers. The
grower also gives surety of supplying his cane to the mill during the incoming season.
Final survey
After making the above surveys the Field Man makes an average estimate of cane production of their
respective zones. After making all the necessary corrections of the completed survey it should be filled up
in the survey form and sent to the cane superintendent. The cane superintendent will then issue
instructions for filling up agreement forms with the zamindars
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ISSUE OF PASS BOOK (IDENTITY CARDS)
Each cane grower whose record is existed will be issued a passbook, which will serve the purpose of a
presentation. It will be presented by the grower at the time weightment of the cane in the mills and at the
time of payment.
When all the passbooks are thus ready they will be handed over to the field staff for the distribution to the
zamindar in their areas. Here the programme in charge while handing over the passbook to the field staff
for distribution will note down the serial of the passbook having handed over to the Field Man and obtain
his signature.
The field man while distributing the identity cards will maintain the register. The work of writing and
distribution of identity cards should be completed by the end of September.
Upon the receipt of the identity cards the grower became responsible to deliver his cane to the Mill within
six days. When the identity cards are issued to the grower then cane department makes transportation
arrangement for the supply of the cane to the mill
The transportation facilities are provided to the growers according to their productive capacity.
WEIGHMENTS
When the vehicle arrives at the gross weight bridge the weighment clerk will observe the following
procedures
THE INDENT
The vehicle has a valid indent for that day and there is no over writing or cutting on it. If there is any such
thing it should bear the counter signature of an officer. The indent must be accompanied with the identity
cards. If any of the documents are not present the cane will not be weighted.
PASS BOOK
The vehicle got a passbook and has brought the cane according to the movement order. There is no
other load on the vehicle except the sugar cane. It must be properly placed on the weight bridge
CANE YARD
The whole area from the weightment to the cane carrier (cane yard) includes
1.Gross Weight Bridge
2-. Tare Weight Bridge
3-. Cane carrier
After gross weightment, vehicle is processed toward the cane carrier for un-loading. Then without cane
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vehicle it is again weighted on the tare weight bridge. Again the tare weight is deducted from the gross
weight. Finally the binding material is deducted and net weight of sugarcane is remained.
When cane is weighted parchi is prepared in the quadruplicate. This parchi shows the name of the grower
name of their zones and the quantity of the cane supplied to the mill
The first parchi is given to the grower. The Second copy is sent to the cane account section and the third
one is given to the carriage contractor for receiving payments.
Payments
All the payments will be made on the bases of the purchasing sheets received by the Cane Accountant
from the Cane Superintendent. Any purchi not appearing in the purchasing sheets will not be paid. The
procedure for payment is distributed according to the above principle.
The cane superintendent after making the necessary checking will forward the posting sheet purchi and
duplicate copy of gross and tare register to the cane account. While receiving these the cane accountant
will check that all documents have been completed according to the requirement. If any paper is
incomplete the cane account will immediately return the paper to the cane superintendent for necessarycompletion. When received incomplete from the cane accountant ant will check every purchi and entry in
the posting sheet particularly the calculations of net weight, cane price and deductions. If any mistake are
found the cane accountant will refer this to the cane superintendent for necessary action. The cane
accountant may correct the calculation mistake without referring to the cane superintendent
Corrections should be made immediately in parches and posting sheets. After having their correct net
weight of cane, cane price and deduction in this posting sheet are totaled. These totals should be exactly
the same as the total taken of these items from the parches remarks and cutting should be properly
initiated erosion and overwriting in the parches and register should not be accepted by the Cane Account
and should be referred back to the Cane Superintendent for inquiry and certificate of its correctness. Now
the posting sheet will be the basis on which all the payments will be made as well as the daily cane
figures. The cane account will also intimate the corrected totaled net weight of the cane to the cane
superintendent also so that if necessary he may adjust his daily cane figures also
The posting sheet after checking by the cane account will be countersigned by the cane superintendent
and then it will be ready for payment.
It will also be sent to the cane accountant that will prepare the necessary votures with the managerssignature for drawl and payment of the amount of cane price against this posting sheet. Payment will be
made of one day of the posting sheet or the posting sheet for Monday may be paid on the next day.
If someone fails to turn up and received his payment on Monday or on Sunday then he can again have
his payment on the next Monday or Sunday and not between the weeks.
While making payment the cashier will take back from the zamidar his copy of the parchee and theacknowledgement or receipt of payment on the reserve side of the account copy of the parchee, which
had been checked and corrected, and according to which the payment has been made.
The cashier will receive back the parchee from the zamindar one by one from the same serial as entered
in purchasing sheet and make the payment immediately after receiving the parchee .Only when one
zamindar has been paid the cashier will receive the next person .The cashier should never collect more
than one zamindars parchee at a time for payment .Now payment will be made unless the claimant
produces the identity card also. Soon as the payment had been made the cashier will put his initial and
date on the identity cards in the column provided and stamp paid with his initial and signature on the
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posting sheet .The cashier when giving account to the accounting in charge of money advanced to him
for payment should also give to the account in support of payment made by him. The zamindars copy of
the parchee to against which the payment had been made. These will claimant chances of wrong fictions
payment.
The accountant in charge may however adopt any other procedure in addition to the above for the
accuracy of payment and accounting.
Payment through bank
In case of payment through bank the procedure of checking the posting sheet will be same except that
after checking the posting sheet, it will be handed to the Bank for payment .The bank while claiming
reimbursement ofamount paid by them should produce the zamindars copy of the parchee of the samevalue. Under agreement, the bank should not make any payment without production of the identity cards
and after payment the band cashier should sign and put his initial on the identity cards in the column
provided for.
Facilities provided to the Cane grower
The following types of loan are provided to the growers
1 SEEDS LOAN
2 FERTILIZER LOAN
3 PESTICIDES LOAN
Each year the project sanctions a fixed amount of loan from A.D.B.P. The amount of loan then is divided
into two parts; one part is specified for the seeds and the other for fertilizers and pesticides. Management
of the project then inform the grower through their respect field man to contact their programme officer for
loan purposes
PROCEDURE OF PROVIDING THE LOAN
The procedures of providing the loan to the grower is as under:
SEED AND FERTILIZER LOAN
The grower who wants to acquire seeds and fertilizers from the mill should submit his request through an
application. The grower also provides a photo state copy of his national identity card .He also maintained
hid land khasra number, which he has specified for seeds in his application
After the fulfillment of the above requirement the field man signs on agreement with the grower. After the
agreement the application is approved by the cane inspector and then the cane manager give sanction of
loan to the grower. When the cane manager sanctions a loan the officer superintendent of the cane
department prepare the supply order .In this way seeds and fertilizers loans are provided to the growers.
PESTICIDES LOAN
Management of the project also provides loan for pesticides to the grower .The procedure of providing
pesticides loans is the same as discussed above.
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Utilization capacity????????????
Part five is pending
?????????????????
Part Six
Company accounting/finance system
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FINANCE DEPARTMENT
The head of this department is known as Finance Manager. The Department has two sections.
1Main Account Section2Cane Account Section
There are two Assistant Account Officers under the control of Finance Manager. They supervise the
activities of main account section and cane account section respectively.
The Finance Manager control all the financial activities of the project along with general administration
and make arrangement of funds to meet the requirement of the project
Main account section
This section has to supervise all the work of the department. The details of the above section is given as
under
1-Finance Section
In this era of information technology, Fecto sugar mill is also fully equipped with computer technology in
almost all of its sections. The finance section of this department prepares the monthly and annual budget
and financial statement bills. The cheques are also prepared in this section. Moreover the following books
of account are maintained in this section.
AMain cashbookThis is a separate book for all kinds of cash receipts and payments known as main cash book .All the
cash payments and receipts vouchers are posted to this book. This book is summarized at the end of
each month. The transaction in this book is reconciled with the book statement at the end of each month.
The final posting from this book are made in the general ledger.
B General registerAll the daily transactions are recorded in the general register .At the end of day the transactions are
posted to the general ledger in their respective accounts.
CLedger registerThe ledger register is called the kings of all the registers of different types of accounts. The reason for this
is because all the entries from the books for original entry must be posted for various accounts in the
ledger. At the end of the day all the transactions are transferred from the general register to the ledger
register .The debits and credits columns of the ledger register and these balances are used to preparethe trial balance and financial statements
DPetty cash bookThe cashier makes all the petty cash payments of miscellaneous bills and post them to the petty cash
book and these are summarized at the end of each month and then posted them to the general ledger.
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2-PAYROLL SECTION
This section prepares the salaries of officers and workers on receipt of their attendance from the time
office. Moreover payments to employees old age benefit and income tax assessments of the mill officersand workers are also dealt within this section.
3-TIME OFFICE
In this office, daily attendance of factory workers is noted. Punch card system is used for the attendance
of employees .Two punch cards machines are fixed on the wall of the time office. All the tokens ofworkers are fixed on the board section wise and employees come and take his token from the board and
punch it into the machine and placed it on the box.
The in charge of this section is called as Chief Time Keeper. At the end of each month the attendance
sheet is prepared and send it to the payroll section .The payroll section prepares the monthly salaries of
the workers according to their total attendance as shown by their attendance sheets.
4- STORE ACCOUNT SECTION
This section maintains the record of machinery and different parts used in the project .The purchases andconsumption of different parts is adjusted monthly and annually.
5 - Suppliers bills
The main account section pays all the suppliers bills. When some items are purchased and received inthe store, the store in charge prepare the receiving report showing the amount and quantity of items
received .the receiving report is sent to the main account section. This section then makes arrangement
for payment to the supplier.
Cane account section:
The cane or the assistant account section performs the following functions
It supervises and checks the cane price bills, sugar bills. Recovery bills of seeds and fertilizers loan from
the cane grower and make arrangements for funds to the concern banks for payment.
Procedure of payment to the growers:
The cane reaching the mill is weighted and voucher is prepared in quadruplicate. The voucher shows the
gross weight of cane. The first copy of voucher is given to the grower and second copy is sent to the cane
department .The third copy is sent to the cane account section and the last copy is sent to the carriage
contactor.
After receiving copy of the voucher, cane department makes entry in the gross tire register. Then cash
voucher and control ledger posting sheet is prepared and the posting sheet along with the tire register is
sent to the main account section.
When the posting sheet and gross tire register reaches in the tire account section the gross tire clerks
checks the posting sheet and then send it to the loan section .In this section loan is deducted from the
actual payment and send it to the voucher checker. The voucher checker then determine the cost of the
cane i.e.net payable amount to the grower .The posting sheet is then sent the gross checker who make
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super checking of the posting sheet .the gross checker then sent the posting sheet along with the bills in
the duplicate.
1 CANE PRICE BILLS
2 SUGAR BILLS
3 CARRIAGE CONTRACTOR BILLS
One copy of each of the above bill is sent to the concerned bank for payment .The bank makes the
payment after fifteen days of receiving the bill from the cane account section.
The project has specified some branches of the scheduled banks in different zones. At the beginning of
the season the lump sum amount is deposited with each branch for payment to the grower. Each branch
maintains it daily records of payment to the grower and provide it at the end of each month to the cane
account section The cane record of payment is checked with the posting sheet of different zones .The
cane account section then makes the vouchers of payment to the cane growers and submit it to the main
account section.
Cane account section therefore plays an important role in the project. This section determines the cost ofthe cane and makes arrangement for payment to the cane grower and cane carriage contractor.
Analysis of various Accounting Procedures in the company:
Going concern:
These accounts have been prepared on going concern basis despite the fact that during the year the
company have incurred a net after tax profit of Rs. 0.314 Million and its accumulated loss stood at
Rs.41.186 Million, causing erosion in share holders equity. The current ratio is adverse and showingdeterioration over preceding year. However the going concern basis is valid as:
The company is able to arrange finance for its smooth operations.
Repayment of liabilities is being made and arrangements for matured finance have been made and there
are not defaults.
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Projected cash flows shows better results in future.
Accounting convention:
These accounts have been prepared under the historical cost convention.
Staff retirement benefits:
The company operates a defined Contribution Recognized Provident Fund Scheme for its eligible
permanent employees who opted for the benefits. Equal monthly contribution are made, both by the
company and the employee to the fund at the rate of 10% of basic pay.
Taxation:
Current:
Provision for current taxation is based on taxable income at the current rates of taxation after taking into
account admissible tax credits and rebates, if any.
Deferred:
The company accounts for deferred taxation on all significant timing difference using liability method.
Fixed assets:
Companys owned:Operating fixed assets are stated at cost less accumulated depreciation except freehold land and capital
work-in-progress which are stated at cost.
Depreciation is computed by applying reducing balance method whereby the cost of an asset is written off
over its estimated useful life. Full year depreciation is charged on the assets acquired during the year
while no depreciation is charged in the year of the disposal.
Maintenance and normal repairs are charged to income as incurred. Major renewals and improvements
are capitalized and assets so replaced if any, are retired. Profit or loss on disposal of fixed assets is
included in the current years income.
Leased assets:
The company accounts for plant and machinery under financial lease by recording the asset and related
liability. The amount are determined on the basis of discounted value of total minimum lease payments
and residual value of the asset at the end of lease period to be paid by the company.
Finance charges are allocated to accounting period in a manner so as to provide a constant periodic rate
of charge on the out-standing liability. Depreciation is charged at the rates specified in the related note to
write off the asset over its estimated use-full life keeping in view of the certainly of the ownership of the
asset at the end of lease term.
Lease rentals payable on assets held under operating lease are charged to profit and loss account for the
year.
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Long Term Investment:
These are stated at cost, less provision for permanent diminution if any in the value of long term
investment. Working of permanent diminution determined on the basis of difference market price
prevailing during the year and carrying value of the investment.
Inventories:
These are valued as follows: Basis:
Store and spares
-In stock -At cost on FIFO basis.
-In transit -At actual cost.
Loose tools -At valuation.
Work-in-process -At average cost of raw materials.
Finished stock -At lower of average cost and net
Realizable value.
Molasses -At net realizable value
Trade debts:
Debts considered irrecoverable are written off and provision is made for the amounts considered doubtful,
if any.
Revenue recognition:
Sales are recorded on dispatch of goods to customers. Income for SNTDs/Profit on bank deposits/COIsand rent is recognized on accrual basis. While income from dividend is recognized when right to received
the same is established.
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Financial analysis
1. Horizontal + vertical analysis
2. Ratio analysis
INCOME STATEMENTS FOR THE LAST FIVE YEARS
2000 1999 1998 1997 1996
Sales 710380214 916602792 831611332 540572289 528738466
Cost of sale 612248348 824957306 764171721 513867334 451316012
Gross profit 98131866 91645486 67439611 26704955 77422454
Selling expenses 1978790 14330457 1965947 1193813 1495007
Administration expenses 38903083 34034120 28294359 26154434 31024115
40881873 48364577 3260306 27348247 32519122
Operating prfit/(loss) 57249993 43280909 37179305 -643292 44903332
Other income 8916964 3029040 1391158 5595783 2613995
66166857 46309949 38570463 4952491 47517327
Financial charges 60835837 38872986 44085736 42327479 48742830Other charges 1096662 1042880 211997 893387 358137
61932499 39915866 44297733 43220866 49100967
profit/ (loss) before taxation 4234358 6394083 -5727270 -38268375 -1583640
Taxation 3920008 151069 4687841 508695 1711500
Profit /(loss) after taxation 314350 6243014 -10415111 -38777070 127860
Appropriation
Transfer from
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general reserve 6000000
Interim dividened (5,029,728)
314350 7213286
unappropriated lossb/f (41,500,778) (48,714,064) -38298953 478117 350257
accumulated profit/ (loss) c/f -48714064 -38298953 478117
Balance sheet
2000 1999 1998 1997 1996
ASSETS:
tangible fixed assets:
operating assets 721714036 532408169 511617023 552599553 587665901
capital work in progress 11524252 90157171 108655188 7262843 18755571
733238288 622565340 620272211 622862396 606421472
long term investments 20662667 22537900 10037900 10037900 10037900long term loans 362280
long term deposits 27978541 22334830 12125130 19375130 21884730
CURRENT ASSETS
stores spares 63750696 68272304 59379896 63582180 72749612
stock in trade 2254867 407776 89271555 40154151 1094957
trade debts 5654650
short term investments 4113322
loans and advances 13562375 63101972 13615670 13566216 14807087
deposits & prepayments 8634398 4211716 9437510 3025493 6098208
cash and bank balances 69099313 6925345 3722261 6645238 1101494
157301649 142919113 175426896 126973278 105619330
total assets 939181145 810357183 817862137 779248704 744325712
Balance sheet liability side
2000 1999 1998 1997 1996
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SHARE CAPITAL AND RESERVES:
SHARE CAPITAL:
authorized, Rs 10 each 150000000 150000000 150000000 150000000 150000000
issued, subscribed and paid up 50297280 50297280 50297280 50297280 50297280
revenue reserves 6000000 6000000 6000000
accumulated (loss) or profit -41186428 -41500778 -48714064 -38298953 478117
9110852 8796502 7583216 17998327 56775397
subordinated loans 451000000 466000000 466000000 452000000 417000000
long term loans 45750000 30000000
redeemable capital 4000000 19147770
liabilities against assets subject to f. lease 141437404 78669283 37104799 67784794 65702317
Marabaha finance 15264040
deferred liabilities 17488093 27416885 7110410
deferred taxation 6000000 6000000 8300000
CURRENT LIABILITIES
current portion of L/T liabilities 127483883 59508341
short term running finance 115035070 72399065 134731755 115625926 55511877current proportion of redeemable capital 4000000 15147770 20573601
C/T against assets subject to F. lease 30679995 31269316 43848926
current portion of the deferred liabilities 7214970
creditors, accruals and other liabilities 29768462 71177897 92225117 58567469 54611980
provision for taxation 4331434 6318002 4905400 3744692 2853844
276618849 209403305 273757237 224355173 177400228
contingencies and commitments
TOTAL 939181145 810357183 817862137 779248704 744325712
FINANCIAL ANALYSIS
The process of the financial analysis basically involves viewing the financial position of the organization
from different angles. The basic purpose of the making the financial analysis is to see whether the
organizations performance is in accordance with the plans of the management and whether theobjectives of the organization are being met or not. In short it is the assessment of the firms past, presentand the anticipated future financial condition. Because of the financial analysis, firms strengths andweaknesses are highlighted. The financial analysis can be,
Internal
External
INTERNAL ANALYSIS
When the analysis is done by the internal employee of the firm then it is called as the internal analysis.
EXTERNAL ANALYSIS
When the analysis is carried out by the external analyst, then it is known as the external analysis.
OBJECTIVES OF FINANCIAL ANALYSIS:
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The particular objectives sought to the served by financial analysis determine the type of ratios as well as
the extent and depth of ratio analysis to be carried out to draw conclusions. Financial analysis is carried
out by;
Business Concern:
For assessment of profitability of the business.
For assessment of stability and financial strength of the business entity.
Management:
Assessment of efficiency of resources utilization.
Assessment of potentials of profitability.
Evaluation of different management controls.
Investors:
Assessment of earnings and divided prospects.
Growth in economic value of investments vis--vis risks undertaken.
Bankers/Creditors Concern:
Assessment of the ability of the business to service its debt obligations.
Debt coverage.
Proper utilization of assets financed.
Government Concern:
Evaluation of the economic contributions of the business entity.
Determination of the entitys financial strength to carry social and development programs.
THE TOOLS USED
The tools used by the both internal and the external analysts are the same but the purpose for carrying
out the analysis different. The tools commonly used are as follows,
1. Trend analysis
2. Common size analysis
3. Ratio analysis
TREND ANALYSIS
The word trend normally represents the direction. So in the trend analysis, we see that in which direction
i.e. favorable or unfavorable, a particular firm is going.In this analysis, a year is taken as the base and the other years quantities are expressed in term ofpercentages of the base year. Generally, the first year is taken as the base year; trend analysis involves
the computation of the percentage relationship that each figure bears to the same item in the base year.
This analysis helps in forming an opinion as to whether the favorable or the unfavorable tendencies are
reflected from the data.
COMPARABILITY OF THE TREND ANALYSIS
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The comparability of the trend analysis is affected by ,
The accounting principles and the policies followed during the years which are under consideration.
Therefore, the accounting policies must remain same during the periods of comparison
The prices when these change materially. Therefore for the trend analysis to be effective, the prices must
remain unchanged during the period under consideration.
Trend analysis for the FECTO SUGAR MILLS LTD.
INCOME STATEMENT ANALYSIS
SALES
From the sales figure we can see that the sales are not going in the favorable direction recently. The
trend in the sales, taking year 1996 as base, is as follows,
102.24% in 1997
157.2822 % in 1998
173.3566% in 1999 &
134.3538% in 2000
From the above data we can conclude that the year 1999 was the time of boom for the company. Up to1999, the sales grew in an increasing pattern but these fell down drastically in the year 2000. It is
because of the shortage of the sugar cane in the area.
COST OF GOODS SOLD
The trend is as follows,
135.6585% in 2000
182.7893% in 1999
169.3208% in 1998
113.8598% in 1997
The same trend was there in the CGS as we found in the sales. The reason being the same for the both.
It is not a bad trend because the cost