SAKTHI SUGARS LIMITED – APPAKUDAL

CHAPTER 1

1.1 INTRODUCTION:

The Sugar Industry is blooming in the recent years. The Research has shown
that India is the leading manufacturer of sugars in the country. The sugar industry is
highly dependent on labour both skilled and unskilled. The production process
involves technology and competition also forces the mills to produce products so as
to with stand the customer changing the demands.

The department of business administration has included the paper named

internship training in the syllabus at the end of IV Semester. This training course is
introduced in order to give a detailed knowledge about the manufacturing activity
in the business. Being a BBA student I have undergone the training in SAKTHI
SUGARS LIMITED, APPAKUDAL for a period of 20 days.

In the training period I have acquired vast knowledge on the practical

application of industrial aspect.

The company HR has given good co-operation to us to explain each & every
activity with required information need for the study. We have studied production
& material management paper but it’s real applicability in practice was seen in the
company.
 This training period of 20 days proved to be very useful to develop my skills
and I am sure that I can complete in the job market and attain success.

1.2 OBJECTIVES:

 To acquire knowledge on the functional area of the business.

 To study the company profile and it’s marketing strategy in detail.

 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.

1.3 SCOPE:

The scope of the study in limited to SAKTHI SUGARS LIMITED,

APPAKUDAL.

The analysis and findings will be useful to improve the welfare measures
offered by the company.

The study will enables the organization to increase the sales of SAKTHI
SUGARS LIMITED.

This study gives benefit in coming future a they put into the real life
situation.

A study on all the departments can help to improve the process and there by
overall improvement in the company’s performance can be made.
1.4 LIMITATIONS:

The study is limited to SAKTHI SUGARS LIMITED Due to time constraint,

we could get training only for 20 days.

The time of the study was very short period.

These findings cannot be extended to other places.

The training must be depending upon company employees, so there is no not

respondents.

The firm must be solution for weakness.

The research study is limited to Day shift employees only.

 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 4th 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 Khandsari, 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 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.
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.

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

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.

UNITS:

Sugar:

1. Tamil Nadu:

 Sakthi Nagar, Erode District-established in 1964.

 Padmathur village, Sivagangai District-established in 1989.

 Poondurai semur village, Modakurichi Taluk, Erode District-

established in 2007.
 2. Orissa:

 Haripur village, Dhenkanal-established in 1994.

 Sakthi Nagar, Erode District-established in 1972.

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

3. Soya:

 Marichinaickenpalayam, 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.

2.3 ORGANISATION PROFILE:

Year of incorporation: 1961

Registered office: Sakthi Nagar -638315

Bhavani Taluk, Erode District,
Tamilnadu.
Corporate office: 180, Race Course Road,
Coimbatore- 641018.
Tamilnadu.
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

Mission:

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.

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.
 CHAPTER 3

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.

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:

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.

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.

  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.

 To decided the percentage and contents and chemicals to be

added during production.

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.
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.

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.

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.

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.

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.

TIME OFFICE:

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.

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.

 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.

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.

3.2 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
 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.
3.2.1 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:
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.

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 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.

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.

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.
CANE DEPARTMENT:

 Yard Department
 Division Department
 Research And Development

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.

STORE DEPARTMENT:

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

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.

3.3 FINANCE DEPARTMENT:

 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.

ACCOUNTS DEPARTMENT:

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

d. 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.

Accounting system:

Accounting system at here is centralized and on accrual basis. all accounts

are maintained in Coimbatore head office. The process of accounting system starts
from the preparation of voucher. The following are different types of vouchers
prepared at Sakthi sugars LTD.

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.
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.

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

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.

Books of Accounts Department:

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

CHAPTER-4

LEARNINGS FROM SAKTHI SUGARS LIMITED

4.1 FINDINGS:

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.

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

4.2 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.

4.3 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