39455539 Internship Report On Noon Sugar Mills Bhalwal 3l3l4c

COMSATS Institute of Information Technology Lahore Campus Noon Sugar Mills LTD. Bhalwal. Sargodha. ADVISOR MADAM AMMARA ADEEL SUBMITTED BY MUHAMMAD HABIB ULLAH CIIT/FA09-MBA-084/LHR. SUBMISSION DATE SEPTEMBER 16, 2010. COMSATS Institute of Information Technology Defense Road Off Raiwind Road Lahore .

Dedication I dedicate this to my Beloved Parents for all their love & attention which has m ade it possible for me to make it up to this point and as well as the Internship Advisor Madam. Ammara Adeel, who bestowed me with the courage, the commitment a nd the awareness to follow the best possible route, by his unmatchable style and by best possible training.

ACKNOWLEDGMENT Countless thanks to Almighty Allah. The only creator of universe who enabled me to complete this report, in spite of various difficulties. All respects to the H oly Prophet (S.A.W.W) who enable us to recognize our greater and whose spiritual teaching guides us in every matter of the life. I am greatly, thankful to my ad visor “Madam Ammara Adeel” who kindly provided me opportunity to check my abilities in a good organization like Noon Sugar Mills Ltd. It was valuable experience for me to do such an interesting work and it was really a delightful job for me to do. I extremely thank for ing persons Mr. Abdul Majeed (Finance Manager), Mr. Qaiser Nawaz ( Assistant), MR. Babar Khan ( Assistant), and invol ved personalities. Without the cooperation of these persons I could not complete this task with intension.

Table of Contents: 1. History and Background 1.1 growth of sugar industry in Pakistan 2. Noon Group Profile 2.1 Manufacturing Sector 2.2 trading and Textile sector 3. Company Prof ile 3.1 Capital structure 1 1 2 2 4 5 6 4. Corporate Information 5. Mission Statement 6. Objectives 7. Hierarchy of mana gement 8. Main Products 9. Types of workers 10. Production Process 11. Main Depa rtments 12. Activities of Department 12.1 gate Office 12.2 Time Office 7 9 10 11 12 14 16 17 18 18 19

12.3 Security Guard Office 12.4 Functions of Department 13. Types of Leave s 14. Punishments to Employees 15. Benefits to Employees 16. Mechanical Departme nt 16.1 Mechanical Workshop 17. Electrical Department 18. Chemical Department 19 . Cane Department 19.1 Procedure of cane development 19.2 Surveys 19.3 Issuance of Book 19.4 Cane yard 19.5 payments 19.6 Facilities to Cane Grower 19.7 Ca ne Yard Management 20. Production Department 21. Distillery 22. Computer Departm ent 23. Purchase Department 24. Finance Department 24.1Payroll Section 24.2 Sale s Tax Matter 48 19 20 21 22 22 26 27 28 30 31 32 33 34 35 36 38 39 40 42 44 45 46 47

24.3 Sales Section 24.3.1 Types of Vouchers 24.3.2 Trade Debtors 24.3.3 Bank Rec onciliation statement 24.4 Banking Section 24.5 store Section 24.6 Cane Section 25. Store 26. ing Policies Adopted by NSM 27. Objective o f Financial Analysis 28. Management Style 29. Problems of Sugar Industry 30. Rec ommendations 31. Conclusion 32. Bibliography 49 50 51 52 52 53 54 56 58 61 63 64 65 66 67

Executive Summary: Sugar is most important industry of Pakistan. It is the oldest industry in Sub C ontinent. Origin of its cultivation is from India. At present, there are 77 fact ories working in Pakistan. At the time of partition there were few mills working in Pakistan. Sugar industry is contributing in GDP and Export Foreign Exchange. The report is on Noon Sugar Mills Bhalwal which is a highly reputed organizatio n in sugar industry. Noon Sugar is one of the pioneers of the sugar industry in Pakistan. Noon Group owned well known organizations of Pakistan for example Noon Pakistan (Main product of Noon Pakistan is NURPUR Milk), Pioneer Cement. Noon s ugar mill was established in 1964. Company is ISO certified and producing sugar and other by products. Its equity is nine hundred ninety two million rupees and is ed in LSE and KSE. Main product of company is white refined sugar whi ch is being imported to other countries and also locally sold. There are 425 per manent employees of NSM. There are different types of employees which are hired at need basis. These are temporary and seasonal employees. Objective of NSM is t o employee poor people of that specific region, people who have no land or emplo yment facilities are employed here. There are many departments here among them C hemical, Cane, and departments have major role. department i s main department which is handling all the matters of company. It is responsibl e for rules and regulations,

security attendance of employees and other facilities to workers. Employees can enjoy different types of leaves. Permanent employees can enjoy casual 30 leaves and medical leave up to doctor’s advice and they are paid for these, but, seasonal or temporary employees are not paid for leaves. In case of misconduct managemen t takes action against guilty person. Noon Sugar is giving different incentives or benefits to employees to improve the production. Mechanical workshop provides with all the equipments for smooth running of mill during season. In case of fa ilure of machine or any part this department is responsible for that’s repair. Ele ctrical department is responsible for electricity. In this age of modernization, every machine is being operated with computers and without electricity no machi ne can run. Electricity problems in mill area or in residential colony are fixed by this department. The main aim of chemical department is to maintain a qualit y standard. Quality of sugarcane, sugar is being tested here. Different labs are working under this department. Cane is the most important department of mill. S ugar mill is totally dependent upon this department. Function of this department is to conduct surveys and held meetings with cane growers for purchase of sugar cane. Only the effective working of the department can ensure full capacity oper ation of the mill throughout the crushing season and thus reduce the fixed costs . Surveys are conducted at four stages. After survey grower are issued a bo ok. By book they can carry their sugarcane to mill cane yard. In cane yard weightment, indent and a parchi is given to grower. This parchi is used for paym ent. After this cane ant makes arrangements for payments through bank. Fo r this purpose bank have been deposited a lump sum amount. Bank makes payments w ithin fifteen days. Grower is provided with seed, pesticide loans and fertilizer loans. Production department is responsible for production. Under this departme nt laboratories, bagging house and sugar godown departments are working. Distill ery is the main strength of Noon Sugar. It is producing Alcohol and molasses fro m by products of sugar. Industrial alcohol is being exported to foreign countrie s. Finance department is the most important department of company. It is respons ible for sale, sale tax, payments, receipts, provident fund, salaries and

store sections. It keeps and provides sufficient funds at the time of production . My internship also related to finance department and their complete procedure and software vouchers are written in detail in report. In banking section differ ent bankers of company are there who provides loans and collects deposits on beh alf of company. Store department is responsible for inventories of finished good s, work in process and new purchases. P.D made by head of store section is sent to main section where ant checks the rate, quantity and price and made a voucher. This voucher after approval from finance manager sent to R.D fo r further and final approval. After R.D’s approval that product is purchased. Diff erent ing policies like depreciation, going concern, payments, and receip ts have been discussed. After this purpose of this analysis to business, investo r, management and government have been shown. At last of repot problems of sugar industry has been discussed and few recommendations are suggested to management of Noon Sugar Mills. This report accentuates the details of my learning and obs ervation at Noon Sugar Mills. It also includes the actual forms that are used in this organization to carry out basic business processes. And, I am sure that th is report will provide you a complete and clear image of organization. HISTORY & BACKGROUND: Sugar Industry: Sugar is one of the essential commodities of life and plays important role in th e dietary of human beings. There are different sources from which sugar is manuf acturing, 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, pa lms, coconuts and apple etc but only in negligible quantities, sugarcane, howeve r, furnished almost industrially important acids. two-third of world sugar suppl ies. Sugarcane, besides sugar, yields many other products like fiber molasses,

GROWTH OF SUGAR INDUSTRY IN PAKISTAN: The origin of English word sugar can be traced back to age old Hindu civilizatio n. India is the birth place of the manufacturing of sugar from sugarcane. The hi story of modern sugar industries in India may be said to begin from 1932. Sugar is the important sector of the Pakistan’s economy. In Pakistan this industry play a significant role for economic development. Its share in the large scale indust ry is 18% and in GDP is 1.9%.sugar industry contribution to the government exche quer in Federal excise duty is 11.2%. The sugar industry, which is endowed with a strong base of sugarcane, had started its journey from almost non-existence in 1947. The industry has gone through a long way and now possesses 77 sugar mills in all over the country. The Sugar industry not only fulfills the entire local requirement but also sharing out the total foreign exchange earning. Government role in R & D for developing the sugarcane varieties is not very significance; o nly few private institutions are doing some research in R & D in developing vari ous varieties with higher yield. Pakistan sugar industries still have 34% un-uti lized capacity, which can be utilized by further developing the 13224 hectares a rea along the main feeder canal from Indus River in Sindh. By which we can incre ase our export to 50000 ton. NOON GROUP PROFILE: · Noon Sugar Mills LTD · NOON PAKISTAN LTD. · PIONEER CEMENT LTD. · NOON INTERNATIONAL ( PVT) LTD. · TEXTILE SERVICES

· INTERNATIONAL SALES & SERVICES Noon Group has about 2000 employees and its offic es are located at the following locations in Pakistan. 1) 6th Floor, EFU House, Gulberg Road, Lahore. 2) 7th Floor, Lakson Square, Karachi 3) 1st Floor, Alfalah Building, Shahrah-e-Quaid-e-Azam, Lahore 4) 92-B, C-2, Gulberg III, Lahore Manu facturing facilities are located at Bhalwal, District Sargodha and Chenki, Distr ict Khushab. The Group is managed by Noon family duly assisted by qualified and experienced technical and business professionals as working Directors and Senior Executives. 1.MANUFACTURING SECTOR NOON SUGAR MILLS LTD. The Company was incorporated in 1964 as a public company listed on all the Stock Exchanges of Pakistan for setting up of a plant for manufacture of white sugar, in the province of Punjab . The plant went into production in 1966 with a daily crushing capacity of 1500 MT of sugar cane, which has since been raised to 4000 MT per day in 2002. Further extension to 12000 TCD is underway in two phases, h as been operated by 2006-2007 crushing season. NOON PAKISTAN LTD. The Company was incorporated in 1966, with a paid up capital of Rs 5 Million and a total investment of Rs 18 Million. In the private sector, Noon Pakistan Ltd., was the first company in Pakistan to operate a Spray Dryer for milk powder

manufacturing. The installed capacity of the plant is 72,000 liters/2 shifts. Th e plant commenced its operation in June 1972 and its products namely; milk powde r, butter and cheese are marketed throughout Pakistan under the brand name of "N urpur". Annual sales revenue amounts to Rs.270 Million. The total number of empl oyees is 350. Long life milk (UHT) in the form of one liter and quarter liter br ick packs has recently been added to the range of products under the popular bra nd name of Nurpur. PIONEER CEMENT LTD. The Company was incorporated in 1985. it has a paid up capital of Rs.954 Million with a total investment of Rs. 3,660 Million for a cement plant having a produc tion capacity of 2000 TPD clinker or 630,000 tons cement per annum. The plant is situated at Chenki in District Khushab, Punjab and started commercial productio n from 1st November 1994. The annual turnover of the company is 2 billion, The p roject was financed by a consortium of foreign lenders led by Asian Development Bank with Asian Finance & Investment Corporation and Nissho Iwai Corporation as co-financers. 2.TRADING SECTOR

NOON INTERNATIONAL (PVT) LIMITED Noon International (Pvt) Ltd., is a trading company of the group established in 1972. The company employs 41 people including 13 professional sales engineers. N oon International represents various international companies of repute in Pakist an and markets their equipment in the fields of textile, power generation, sugar , fertilizer, chemical, steel, cement, food and milling. The company has a diver sified and large customer base of over 400. The average annual sales order turnover is USD 18 Million. 3.TEXTILE SERVICES Textile Services was established in 1994 to provide services to over 200 custome rs of Sulzer Textile Projectile Weaving Machines. The company employs 32 people with 7 professional sales engineers and 7 service engineers. The average annual sales order turnover is Rs. 60 Million. The company provides a complete “Customer Service” in Pakistan and offers training, technical service and spare part s. This setup is the only one of its kind in the textile sector in Pakistan. 4.INTERNATIONAL SALES AND SERVICES International Sales and Services is also a trading company of the Group. The Com pany employs 15 people including 6 professional sales engineers. Company profile: NOON SUGAR MILLS LTD. The Company was incorporated in 1964 as a public company listed on all the

Stock Exchanges of Pakistan for setting up of a plant for manufacture of white s ugar, in the province of Punjab. The plant went into production in 1996 with a d aily crushing capacity of 1,500 MT of sugar cane, which has since been raised to 4,000 MT per day in 2002. Further extension to 9,000 TCD is underway which has become operative in 2006-2007 crushing season, Al-Hamdulillah. An Alcohol Distil lery of French origin was added during 1986 with a production capacity of 50,000 liters /day in 2002. Another facility with an option to provide either 30,000 L PD Industrial of fuel Grade Ethanol was added in 2002. A new Fuel Ethanol plant of 100,000 LPD, based on Molecular Sieve technology has been added in 2005.. An Effluent Treatment Plant employing the Canadian technology of ABV Bio-Gas reacto rs has been installed since 1997, to use its bio-degradable waste water as a ren ewable source of energy to replace 70% of fuel oil / natural gas, for generation of process steam. This has also enabled the Company to fulfill its obligation t owards reducing the environmental pollution. AWARDS AND CERTIFICATES: The Distillery is ISO 9001 certified since 1998, which upgraded to ISO-90012000 Capital Structure: The present equity of the Company is Rs.992 Million, with total investment of ar ound Rs.1, 877 Million. The Market Capitalization is over Rs.455 Million, and sa les revenue amounts to over Rs.1.0 Billion, including exports of Rs.213 Million. The average number of employees is 691. The Company has a gratifying record of 40% average annual Dividend out to the

share holders in the last 10 years CORPORATE INFORMATION: BOARD OF DIRECTORS Manzoor Hayat Noon (Chairman& Chief Ex ecutive) K. Iqbal Talib Javed Ali Khan Safder M. Hayat Qureshi Adnan Hayat Noon Salman Hayat Noon Zaheer Ahmad Khan

Saeed Iqbal (PICIC) AUDIT COMMITTEE Adnan Hayat Noon (Chairman) Salman Hayat Noo n Zaheer Ahmad Khan MANAGEMENT K. Iqbal Talib Managing Director Ahmad Ali Reside nt Director Ehsan R. Shaikh Chief Financial Officer SECRETARY AUDITORS Syed Anwa r Ali Hameed Chaudhri & Co., Chartered ants LEGAL ADVISERS BANKERS Hassan & Hassan (Advocates) MCB Bank Limited United Bank Limited Allied Bank Limited HEAD OFFICE 6th Floor, EFU House Jail Road, Gulberg Lahore Pakistan ED OFFICE 1st Floor, Alfalah Building Shahrah-e-Quaid-e-Azam Lahore Pakistan SHARES DEPARTMENT 66 – Garden Block

New Garden Town Lahore Pakistan WEBSITE www.noonsugar.net MISSION STATEMENT

NOON SUGAR MILLS LIMITED is committed to continue its sustained efforts towards optimizing its resources through updated technology, staff motivation and good c orporate governance so as to Insha Allah maintain its tradition of high yield an d handsome returns to its shareholders on their investments in the Company. OBJECTIVES:

Following are the objectives of company. 1. Total quality focus to meet customer’s requirements. 2. The highest standard of business ethics. 3. To care on the bus iness ethics. 4. To carry on the business at best possible level. 5. To guarante e performance of contracts by or persons having dealing with the company . HIERARCHY of MANAGEMENT:

CHAIRMAN │ │ Board of Directors │ │ │ Managing Director │ │ Resident Director │ │ Director Fi │ │ General Manager. │ │ ┌--------------------------┴----------------------------------------┐ G.M. (Production G.M. istration G.M. Distillery

MAIN PRODUCTS: Sugar industry is an Agro-based industry, which provides employment to landless rural population and has a great Impact on the economy of Pakistan. The main pro duct of the company is White Refined Sugar. The three principle byproducts of a sugar industry are; 1 White Refined Sugar 2 Bagasses 3 Molasses 4 PRESS MUD 5 WHITE REFINED SUGAR: Major business of the company is to produce white refined cane sugar of intermis sion standard and from the erased cane and three different components are achiev ed that are fibber, Pith and Moisture. Main distributors of sugar are 6 M/S Tauq ir Traders Rawalpindi 7 M/S Aamir Traders Mirpur, Azad Kashmir. 8 M/S Madina Tra ders Sargodha. 9 M/S Haji Manzoor & Co Khushab. 10 MOLASSES: This is a by product and is sold to Molasses contractors. Shah Taj Sugar Mills i s

the main contractor of molasses of Noon Sugar Mills. Molasses may be used for th e production of power alcohol acid portable spirits. 11 BAGGASSES: This is also a by-product of the company. Baggas is used as source of energy fue l for sugar industry for juice heating, and also used for making medium density fiber board (MDFB). Bagasses are sold to the Bagasses contractors. 12 PRESS MUD: Mud is also the by-product of the company. It is sold to the Mud Contractors. Th is is used in making chocolates and other products. Mud is also used as fertiliz er for farmers & cane growers.

TYPES of EMPLOYEES: The workers of Noon Sugar Mills can be classified as under: 13 Permanent Workers 14 Temporary Workers 15 Seasonal Workers 16 Daily Wage Workers 17 Apprentices Permanent workers: Those workers who are engaged on performing their services for the whole year ar e called permanent workers. They are appointed on those jobs, which are of perma nent nature. In Noon Sugar mills these employees get different types of allowanc es and benefits. These benefits are 18 Employees fair price shop 19 House facili ty (Which is allotted according to the grades). Temporary workers: Temporary workers are appointed on those jobs, which are of temporary nature. Th ey are likely to be financed in a maximum period of nine months. When the work i s completed they are dismissed from their jobs.

Seasonal workers: These workers are hired during the cane crushing seasons, when the season is ove r 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. Internship is also a kind of apprenticeship but no remuneration is paid to trainee in this kind of trainin g.

PRODUCTION PROCESS: After weight, cane comes on cane dipper and through the cane carrier it es t hrough the cane leveler and then reaches at the cane cutter which cut it into sm all pieces. After it cane es through cane shredder which cut it into very sm all pieces. Now the cane is in position to give maximum juice. Then the cane rea ches at mill house where the juice is separated from baggage. Baggage goes to th e 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 ta nk". The juice then goes to the process house where it is heated from 25-70°C. The n line water (Ca (OH) 2) is mixed in it to get rid of impurities. Then it is sen t to the clarifier where it is heated from 60-105°C and by the Co-Agilent, the mud is separated from juice. Then it goes to the evaporators where water evaporator s. Here the brick 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 i ts supersaturated point. A massecuite is produced by adding small amount of grai n in it. Crystals of sugar and molasses is present in A - Massecuite. To separat e 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 hea ted again and B-Massecuite is produced and the sugar gained from it is known as BSugar. C-sugar is also gained by the molasses of B-sugar. The molasses separate d 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 coloring purpose. Chemi cals liter Phosphoric Acid, talo-flak, talo float and lime scerate are mixed in it to remove the impurities. This sugar is known as "Liquor" and to get pure sug ar from it, it is sent to "refine-pans". Refine massecuite is produced and after ing it from refine centrifugal, sugar is separated from molasses. It is pas sed through drier to dry it. Then it is ed through grader where "product sug ar" is separated from small or big sugar. This small or big sugar is again disso lved in water to get product sugar. Product sugar is sent to godown after packin g. MAIN DEPARTMENTS: Following are the main departments at Site and at Head Office. AT SITE: 20 s 21 Computer Section 22 istration 23 Mechanical 24 Electrical 25 Chemical 26 Cane 27 Transport 28 Store AT HEAD OFFICE:

29 Finance 30 s 31 istration 32 Purchase 33 Sale ACTIVITIES OF ADIMINISTRATION DEPARTMENT: The main function of this department is to handle all the istrative matters and maintaining discipline. The main goal of this department is to provide easy working environment. This is very important department of the organization as t he name shows; this department has to istrate all the operations of the org anization. department is the department, which is dealing matters about ad ministration. This department plays very important role for maintaining discipli ne in the mills. department is working under Officer, who has much m ore experience about istration matters. Sections of this department are div ided into offices as under: 34 Gate Office 35 Time Office 36 Security Guard Offi ce 37 Labor Office

GATE OFFICE: This office has been made to keep the record of each and every thin g coming into and going out of the mills gate .For this purpose gate office cler k maintains two types of s called; 38 Outward going 39 Inw ard going . When every thing including raw material, stores supplie s, or any other thing comes into the mills premises a document named as I.G.P is made in which information like date of supplier, description, quantity of the m aterial and any other remarks are written. In the same way, O.G.P is prepared fo r out going things etc. TIME OFFICE: This office keeps and maintains the time record of all the workers on time cards and pay for the final costing of the workers salaries. It keeps the at tendance records, which is than used to calculate the salary to be paid to the w orkers on monthly basis. It keeps the records of the over time, leaves, number o f days worked of all the workers and than calculate their over time on the basis of the basic salary of each worker.

It keeps the records of Social Security, EOBI, and Education Cases etc. of each employee / worker payable to government treasury. It keeps the records of Gratui ty, Bonus, Pensions and other benefits including L (Cash Paid Leave) to each e mployee / worker of the organization. SECURITY GUARD OFFICE: The main objectives of the security office are to safe handling of the goods fro m / to the mill premises. For the achievement of such objective a team of securi ty guards has been employed by the company. All the keys relating to the mills o ffice, labor colony, (quarters) are lying into the responsibility of the securit y officer. No out side visitor can come into the mills premises without the perm ission of the security guard. Whenever any visitor wants to enter into the mill, security guards firstly with the authority in the mill to grant the per mission to enter into the mill premises. Security guards can check each and ever y person before coming in or going out of the company gate for the security purp oses. They see and check the Outward going of the certain things when these ought to bring out of the mill premises. They are in uniforms of dark blue colo r. They are the guardians of the every thing of the company Functions of istrative Department: 40 Recruitment, Selection, Economizing of Employees. 41 Maintenance of Personal Record 42 Time Office Management 43 Interactions with following govt. department : 44 Social security

45 Employee old age benefit 46 Labor department 47 Relationship with local istration 48 Worker welfare programme 49 programmed arrangement for company exec utives 50 Mail receiving and distribution 51 Legal matters 52 Supervision of fai re price shops 53 Authorizing Dispatch Sales 54 Possess the transfer orders. 55 Leave procedure TYPES of LEAVES: The following leaves are allowed to the employees of the mill. 56 Casual Leave 5 7 Medical Leave 58 Leave Without Pay

There are special rules and regulations for leaves made by the factory. These ru les are applied to each employee of the mill. The explanations of above leaves a re as followed; CASUAL LEAVE: The project manager grants the casual leave. The leave is allowed only to the pe rmanent employees of the project. Every employee has the right to avail thirty d ays casual leave per annum. MEDICAL 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. I n the case of one day no medical certificate is necessary, every employee is all owed ten days medical leave per annum. If the disease of the employee is such th at it requires more than a day then the approval of the project manager is neces sary. LEAVE WITHOUT PAY: This leave is granted to the employees when leave without pay is tired 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. PUNISHMENTS to EMPLOYEES: 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 59 The management w ill issue a warning to the employee to be careful for future and not to repeat t his action or otherwise he will be punished. 60 Some time the management makes d eduction from the salary. 61 Some time the management will hold increments or pr omotions for a certain period of time. They not give them increment and promotio n during that a period of time. 62 Some time he his demoted to the lower post 63 In case of serious miss conduct the management will dismiss him from the servic es. Benefits to Employees of Noon Sugar Mills. Workman compensation: In this project compensation is paid to the workers when they receive injuries i n the cause of work during accident. If the worker has violated the safety preca ution 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 diseases affect to preposition period, compensations cannot be claimed. FUNDS: The project maintain a provident fund for the employee under the rule of provide nt fund every permanent employee of factory who have completed six month continu e service in the factory is eligible subscribe towards the fund. Provident fund consists of deductions from the monthly wages of the employees as equal amount i s also contributed toward the provident fund by the mills.

The total amount of provident fund is deposited in the of provident fund and separate is maintained for every employee in the 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 tak e loan from the provident fund for the urgent needs. The management authorized t he required loan upon 50% of the total loan is recovered in easy installment fro m the monthly salaries. HOUSE RENT: The employees are also paid hose rent at the basic pay=claw 405 means cost leavi ng allowance up to Rs. 500 = 110 fix Rs. 501/-up to Rs 735/-=10%of basic pay+25+ 25 Rs735/-and above 9736) =105 of their basic pay=25 MEDICAL ALLOWANCE: Every employee and his family are given free medical facilities. Whenever any em ployee or any of his family member fall ill, the management is responsible for t heir medical allowances, payment made as a result of medical treatment are disbu rsed later on. The medical officer prepares the bills of medicine, and these bil ls are offered to the finance manager for payment. FACED WASHING ALLOWANCE: Washing allowance is given to all the employees at the rate of Rs 100 per month.

EDUCATION FACILITIES: In Noon sugar mills there is special arrangement for the employees children Educ ation. Educational facilities are intro under worker children ordinance 1967, un der 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.8000 are entitled to avail these facilities. Under the ordinance the education will be free for o ne child of each employee of the factory. The children of the employee are free from tuition fee school funds and the cost of the books. There is also transport ation system for the children of employees. Scholarships to Children of Employees: In this mill without free education to the children of the workers award scholar ship at the rate of Rs150 are awarded to the deserving children of the employees in their 5th 8th and 10th classes Rs 200 are given to intermediate student s. Students who have either ed part 1 or 2. After this all scholarship are a rranged by PWWB (Punjab Workers Welfare Board). CANTEEN FACILITIES: The mill has provided the canteen facility to its employees. Adequate furniture’s and other facilities are available in the canteen, where employees can get lunch at discounted rates.

FAIR PRICE SHOP: The mill has provided a fair price shop facility to the employees. In the fair p rice shop a person can buy the commodities of daily use on their discounted pric es. BONUSES: In this mill employees are given bonuses also. The number of bonus usually is di vided between the management and workers unions on production basis. The amount of one bonus is equal to one basic pay of the employee. E.O.B.I (EMPLOYEES OLD AGE BENEFITS INSTITUTION): This is an important deduction from the salaries of the workers for the regular income in the old age / post retirement age so that workers have a thought of re lief that there would be no financial problem after the expiry of his employment . EOBI is an institution where this deducted amount is accumulated for the futur e use when these people will not be able for employment.

MECHANICAL DEPARTMENT: Mechanical department is the main department of noon sugar mills. This departmen t plays very effective role for crushing of sugarcane. Functions: The main function of this department is to control the whole plant & machinery. The main goal of this department is that the whole process is going through effe ctively and efficiently without any hurdle. Mechanical department has qualified engineers who are very professional about their work. All the work is done under supervision of Chief Mechanical Engineer. The hierarchy of Mechanical departmen t is a. General Manager (Technical) b. Dy. General Manager (Tech) c. Technical M anager/Chief Engr. d. Dy. Chief Engr. /Sr. Engr. e. Sr. Shift Engr. /Shift Engr. f. Assistant Engr. /Tr. Engr. g. Drawing Engr. /A.D. Engr. h. Draftsman/A.D. Ma n/Tracer i. Typist Clerk j. Qasid

There is also a mechanical workshop in which work is conducted for betterment or repair of old machine. In this department workers are equipped with latest equi pment to improve the work efficiency. Workers according to their designation in workshop are under; MECHANICAL WORKSHOP: Workshop In charge Sr. Engr Workshop /Engr Workshop /Foreman Foreman/Mechanic Sr . Fitters Fitters Fitter/Helpers Master Turner Sr. Turner/Turner Turner Foreman Welder/Hd. Welder Welders Helper Welder/Assistant Welder Pattern Maker Black Smi th Hammer man Molder/Asstt Molder Shaper man Planner man Coolies

ELECTRICAL DEPARTMENT: Electrical department is also very important department of any sugar mill. This department plays very effective role for keeping the plant in running conditions . FUNCTIONS: The main function of this department is to assist the mechanical de partment, with the help of this department; mechanical department has a better c ontrol on whole plant & machinery. The main goal of this department is to supply electricity to whole plant & machinery. Electrical department has also qualifie d engineers who are very professional about their work. All the work is done und er supervision of Chief Electrical Engineer.

The hierarchy of Electrical department is under; Chief Electrical Engineer Deput y Chief Engineer/ Sr. Assistant Elect Engg Qasid POWER HOSUE: Main purpose of po wer house is to supply electricity to all the plant and colony when required. In case of breakage of electricity from WAPDA this department has to turn on gener ator for smooth running of production process. Workers in power house are Superv isor Switch Board Supervisor Asstt. Switch Board Operator. ELECTRICAL WORKSHOP: Foreman/Supervisor Asstt. Foreman (Head Winder) Senior Wind er/Winder Asstt. Winder/Winder Helper Electrician Wireman/Electrician Assistant Wireman Lineman/Khalasi Welder Asstt. Lineman / Asstt. Khalasi / Asstt. Electric ian Electrical Fitter Coolly

CHEMICAL DEPARTMENT: Chemical department is another main department of any sugar mill. This departmen t plays very important role for crushing of sugarcane. FUNCTIONS: The main function of this department is to test the quality of sugar, with the h elp of this department sugarcane is crushed in to white refined sugar. The main goal of this department is to maintain a quality standard. This department plays its role during whole the process because different types of chemicals are mixe d in sugarcane juice for making the juice in to liquid shape. This department ch ecks the quality during the whole crushing process. Chemical department is worki ng under very experienced person who has vast knowledge about chemical. All the chemists are very experienced and professional.

Designations in chemical department are; Process Manager (Deputy General Manager Production) Chief Chemist/Dy. chief Chem. Senior Chemist / Assistant Chemist / Trainee Chemist. Office Superintendent Qasid Different laboratories are working under chemical department that check the quality of sugarcane and its juice by d ifferent methods. After clearance of sugarcane the whole trolley of sugarcane is put into production process. Laboratory office has employed these persons; Seni or Lab. Officer/Lab Officer Lab. Chemist Lab. Analyst Assistant Analyst CANE DEPARTMENT: Cane department is the major department of any sugar mill. This department is pu rchasing sugarcane from growers. FUNCTIONS: Cane department is working under can e advisor, who is a very experienced person and has a much more knowledge about sugarcane quality. The main function of this department is the purchasing of sug arcane. The main goal of this department is to supply high quality sugarcane. Ma in input of Noon Sugar Mills Limited is the raw fresh sugarcane. To control the different activities of purchase of sugarcane, cane department play very importa nt role. This department has

purchased sugarcane from different villages of the country. Cane field officers are surveying regularly and motivate growers. This department opens depots in di fferent villages for purchasing of sugarcane. Cane department also play very imp ortant role for granting a loan to the growers in the shape of seed, fertilizer and machinery, which has to be returned in the shape of supply of sugarcane to t he respective mill. This is perhaps the most important department of the establi shment outside the factory. Cane department produces the basic raw material whic h is usually in short supply and for which there are competing forces namely “Alte rnate crops, Gurr market crushers and other sugar mills”. Therefore, only the effe ctive working of the department can ensure full capacity operation of the mill t hroughout the crushing season and thus reduce the fixed costs. This department i s considered as the backbone of the mill. The function of this department is as under which are two folded. 64 cane department 65 cane procurement Cane Department: The head of the Cane Department is known as Cane Advisor. There is a Cane Inspec tor who is under the direct supervision of Cane Advisor. The Cane Inspector exam ines the work and steps that are undertaken for the cane development. Also a lar ge 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 7 circles The Field officer & 3 field men supervises each zone. The main reason of dividi ng 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 surv ey of the sugar cane crops. Each Field officer is responsible to make the first survey in his respective area. If a long-term incentive development programme 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 cult ivation may be ensures. For the purpose of the cane procurement department condu ct a survey of the area under sugar cane only is sufficient. For the procurement purpose complete list of the Mohall’s under various field staff is to be prepared showing distance of each village from the mill. Convenient place in consultatio n with the local people are also to be fixed as loading centers and their accura te 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 the ir distance from the mills is accurately and carefully prepared. The cane superi ntendent will provide this to the Cane ant for calculation of transport c harges where such a calculation is required. While preparing list of villages, e ach village should be continuous to the other. This list and serial orders will also be followed in the programme and during the issuance of indents. SURVEYS: 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 pr epare weekly advance programmes of the visit of the villages in his area and als o makes an announcement among the sugar cane growers of his visit, so that they may also be able to the field man during the visit. Local information ha s to be collected about the area actually surveyed. Physically, by walking aroun d the plot and counting the number of steps he should do the survey. The surveyo r step should be measured which will give the length of the plot. All survey rec ords 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 su rvey the Field Man s the growers and then takes a note of their demand fo r seeds sand fertilizers. The field men 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 t his Cane Inspector will visit these areas along with the Field Man who has surve yed it so that the cane inspector will take up any plot and first see the area n oted 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 c hecking (D.D. form) and sent to the cane superintendent every week along with a weekly progress report and explanation of the field man for any discrepancy in h is founding during the checking. If facilities are available survey record shoul d 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 prov ided 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 su rvey, he makes agreement with the grower. In his agreement the Field Man gives s urety 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 p roduction 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 th e cane superintendent. The cane superintendent will then issue instructions for filling up agreement forms with the zamindars ISSUE OF BOOK (IDENTITY CARDS): Each cane grower whose record is existed will be issued a book, which will s erve the purpose of a presentation. It will be presented by the grower at the ti me weightment of the cane in the mills and at the time of payment. When all the books are thus ready they will be handed over to the field staff for the dis tribution to the zamindar in their areas. Here the programme in charge while han ding over the book to the field staff for distribution will note down the se rial of the book having handed over to the Field Man and obtain his signatur e.

The field man while distributing the identity cards will maintain the . The work of writing and distribution of identity cards should be completed by th e end of September. Upon the receipt of the identity cards the grower became res ponsible to deliver his cane to the Mill within six days. When the identity card s are issued to the grower then cane department makes transportation arrangement for the supply of the cane to the mill The transportation facilities are provid ed to the growers according to their productive capacity. WEIGHMENTS: When the vehicle arrives at the gross weight bridge the weightment c lerk will observe the following procedures THE INDENT: The vehicle has a valid i ndent for that day and there is no over writing or cutting on it. If there is an y 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. BOOK: The vehicle got a book and has br ought the cane according to the movement order. There is no other load on the ve hicle except the sugar cane. It must be properly placed on the weight bridge CAN E YARD: The whole area from the weightment to the cane carrier (cane yard) inclu des 66 Tare Weight Bridge.

67 Gross Weight Bridge 68 Cane carrier After gross weightment, vehicle is proces sed toward the cane carrier for unloading. Then without cane 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 sugarca ne is remained. When cane is weighted parchi is prepared in the quadruplicate. T his 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 Seco nd copy is sent to the cane section and the third one is given to the ca rriage contractor for receiving payments. Payments: All the payments will be mad e on the bases of the purchasing sheets received by the Cane ant from the Cane Superintendent. Any parchi not appearing in the purchasing sheets will not be paid. The procedure for payment is distributed according to the above princi ple. The cane superintendent after making the necessary checking will forward th e posting sheet parchi and duplicate copy of gross and tare to the cane . While receiving these documents, cane ant will check that all d ocuments have been completed according to the requirement. If any paper is incom plete the cane will immediately return the paper to the cane superintend ent for necessary completion Corrections should be made immediately in parches a nd 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 sho uld be properly initiated

erosion and overwriting in the parches and should not be accepted by th e Cane and should be referred back to the Cane Superintendent for inquir y 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 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 figur es also The posting sheet after checking by the cane will be countersign ed by the cane superintendent and then it will be ready for payment. It will als o be sent to the cane ant that will prepare the necessary vouchers with t he manager’s signature for drawl and payment of the amount of cane price against t his posting sheet. Payment will be made of one day of the posting sheet or the p osting sheet for Monday may be paid on the next day. 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 of amount paid by hem sh ould produce the zamindars copy of the parchee of the same value. Under agreemen t, 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 ident ity cards in the column provided for. Facilities provided to the Cane grower The following types of loan are provided to the growers 69 Seeds Loan 70 Fertili zer Loan 71 Pesticides Loan Each year the project sanctions a fixed amount of lo an from Agriculture

Development Bank of Pakistan (ADBP). The amount of loan then is divided into two parts; 72 One part is specified for the seeds 73 Other Part for fertilizers and pesticides. Management of the project then informs the grower through their res pect field man to their programme officer for loan purposes. Procedure of Providing the Loan The procedure of providing the loan to the growers is as under: Seed and Fertili zer Loan The grower who wants to acquire seeds and fertilizers from the mill sho uld 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 num ber, which he has specified for seeds in his application After the fulfillment o f 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 can e 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. Pesticide s 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. CANE YARD MANAGEMENT Sugarcane comes to the mills in different ways, which are as follows: 1. Grower brings the sugarcane on his own vehicle

2. Grower brings the sugarcane on rented vehicle 3. Sugarcane comes through the purchasing centers on rented vehicles. Sugarcane reaches the factory gate then c ane yard management starts. Cane yard management produces the following informat ion: 74 Weightment of Sugarcane 75 Recording the Weight 76 Recording the Vehicle Number 77 Recording the Date 78 Printing of R’s 79 Daily Crushing Summery 80 Co ntractor wise summery PRODUCTION DEPARTMENT: The head of this department is called the Production Manager. The Production Man ager is also is called the Deputy Manager of the project. There are four Shift C hemists and one Assistant Chemist under the control of Production Manager. Functions: The main function of this department is to produce maximum sugar from the cane a vailable 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 81 Pr oduction 82 Laboratories

83 Bagging House 84 Sugar Go Down PRODUCTION: Supervising the process of product ion in three shifts vise; crushing of about 1500 tons of sugar cane, delousing o f juice, its carbonation, sulphination, filtration and concentration by operatin g juice heaters liming gassing etc The process involves washing of filter cloth and press mud, operation of sulphur furnace, vacuum evaporators, steam boilers, and pan boiling molasses tanks juice, molasses pumps crystallizers and centrifug al machine etc 2-LABORATORIES: Conducting special and routine analysis far quali ty 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 ana lyses assisted by lab boys and laboratory samples conduct 10 to 15 analyses per hour. In charge is responsible of preparation of daily, weekly, forth nightly, m onthly reports, and laboratory charts. Sr. Lab. Officer/Lab Officer Lab. Chemist Lab. Analyst Assistant Analyst Lab. Points man Sampler 3-BAGGING 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 fil ter cloth is done by the bogging house. Bagging Clerk Mate/Asstt Supervisor Asst t Mate Bagging Filling Optr. Bagging Coolies 4-SUGAR GODOWN: Stocking and dispatch of sugar bags to various Government Agenci es, dealing with the food Directorate of Punjab. Excise departments, preparing p eriodical reports of disposal of stock, sticking of damaged bags during off seas on etc. is done by this department. Deputy Manager/Off. I/C. 1 Supervisor 1 Asstt. Store Keeper 4 Godown Boy. 5 Qasi d 1 In production department the following materials are used during manufacturing. 85 Lime Stone

86 Hard Coke 87 Filter Clothe 88 Sugar 89 Cotton Bags 90 Furnace Oil DISTILLERY: An Alcohol Distillery of French origin was added during 1986 with a production c apacity of 50,000 liters /day in 2002. Another facility with an option to provid e either 30,000 LPD Industrial of fuel Grade Ethanol was added in 2002. A new Fu el Ethanol plant of 100,000 LPD, based on Molecular Sieve technology has been ad ded in 2005. An Effluent Treatment Plant employing the Canadian technology of AB V Bio-Gas reactors has been installed since 1997, to use its bio-degradable wast e water as

a renewable source of energy to replace 70% of fuel oil / natural gas, for gener ation of process steam. This has also enabled the Company to fulfill its obligat ion towards reducing the environmental pollution. Distillery has following main products 91 Ethyl Alcohol 92 Fuel Grade (Anhydrous) 93 Molasses Ethyl Alcohol: T he essential ingredient is usually a natural sugar or a starchy substance that m ay be easily converted into a sugar. The distillation process is based on the di fferent boiling points of water (212 °F [100 °C]) and alcohol (173 °F [78.5 °C]). The al cohol vapors that arise while the fermented liquid boils are trapped and reconde nsed to create a liquid of much greater alcoholic strength. The resultant distil late is matured ethyl alcohol. Export Proceeds of Rectified Spirit: Export Year 1998-99 1999-2000 2000-01 US $ 1,600,149 2,332,884 2,444,997

2001-02 2002-03 3,516,775 2,462,964 COMPUTER DEPARTMENT Now a day’s computer plays very effective role in all fields of life. At present a ll sugar mills in Pakistan are using various software. Computer department of No on Sugar Mills Limited is working under in charge Computer Section, who is a ver y

efficient person and have a vast experience about different software’s and hardwar e. There are different departments in which computer are being used in Noon Suga r Mills Limited (site), which is as follows: 1. Cane Department 2. in Whole Acco unts Department 3. istrative Department Software used in Noon sugar mills i s ASIAN SOFT. All salary slips, notices and office orders are being prepared in computer section. E mail to any other office is also under computer department. This department is responsible for maintenance of computer hardware’s, software. A ny installation relating to computer is also done by this section. PURCHASE DEPARTMENT: Purchase department is the department, which conducts all the purchase for head office and site. This department plays very important role for maintaining

discipline in the mills. Purchase department is working under Manager Purchase. FUNCTIONS The main function of this department is to purchase Spare parts, Store Material, Chemicals, and P.P Bags etc. The main goal of this department is to purchase re quired items at convenient rates. This department conducts all the purchases. Th ere is also a Purchase Assistant in this department to keep the records. Wheneve r any particular department requires any part of material/goods, its head makes a demand of items to be required. This demand contains the information like, ite ms description, quality, quantity and others. The departmental head signs the de mand and sent to the purchase department, and then purchase department sent it t o Resident Director for final approval. The Manager Purchase has the list of pre ferable suppliers of the certain items. When any item is required, first he get rates from market though purchasers, then he compare market rates, and making a purchase order of the supplier which provide the material/items at convenient ra te after obtaining verbal or written approval from the Resident Director. Purcha sed material sent to the mills premises through rented vehicle or the supplier i s sending material/items according to the contract. In Purchase Department work is done according to the following process: 94 Purchase Requisition received fro m store of site or head office, which contains items code, items description and balance in the store. 95 .Purchase Department sends this requisition to Residen t Director for approval.

FINANCE DEPARTMENT The head of this department is known as Finance Manager. The Department has two sections. 96 Main Section 97 Cane Section There are Assistant Ac count Officers under the control of Finance Manager. They supervise the activiti es of main section and cane section respectively The Finance Man ager control all the financial activities of the project along with general i nistration and make arrangement of funds to meet the requirement of the project. Main section This section has to supervise all the work of the department. The details of the above section is given as under Finance Section In this era of information technology, Noon sugar mill is also fully equipped wi th computer technology in almost all of its sections. The finance section of thi s department prepares the monthly and annual budget and financial statement bill s. The cheques are also prepared in this section. Moreover the following books o f are maintained in this section. Main cashbook This is a separate book for all kinds of cash receipts and payments known as main cash book .All the cas h payments and receipts vouchers are posted to this book. This book is summarize d at the end of each month. The transaction in this book is reconciled with the bank statement at the end of each month. The final posting from this book are ma de in the general ledger.

General All the daily transactions are recorded in the general .At the end of day the transactions are posted to the general ledger in their r espective s. Ledger The ledger is called the kings of a ll the s of different types of s. The reason for this is because all the entries from the books for original entry must be posted for various acc ounts in the ledger. At the end of the day all the transactions are transferred from the general to the ledger .The debits and credits columns of the ledger and these balances are used to prepare the trial balance and financial statements Petty cash book The cashier makes all the petty cash p ayments of miscellaneous bills and post them to the petty cash book in computer and these are summarized at the end of each month and then posted them to the ge neral ledger. PAYROLL SECTION This section prepares the salaries of officers and workers on receipt of their a ttendance from the time office. TIME OFFICE In this office, daily attendance of factory workers is noted. The in charge of this section is called as Time Keeper . At the end of each month the attendance sheet is prepared and send it to the p ayroll section .The payroll section prepares the monthly salaries of the workers according to their total attendance as shown by their attendance sheets.

SALES TAX MATTERS Sales Tax is deducted from sellers at the time of sale. The company also pays th e sales tax to the suppliers, but this sales tax has claimed as refund and it is to be adjusted from total amount of Sales Tax payable, then remaining payable a mount is to pay to the Sales Tax Department. In sales tax there are two main hea ds Output Tax Input Tax Output tax is calculated on sales. Sales are made normal ly to two types of persons. According to sale tax act 1990 those persons are 98 ed person 99 Uned person ed person are those who have th eir own NTN (National tax no), sales tax registration number. Tax rate on these sales are 16%. Uned person are those who haven’t NTN or sale tax registrat ion number. Tax rate is also 16%. Other kinds of supplies are Zero rated supplie s Exports Exempted goods 0% 0% exempt

Input tax is calculated on purchases. Domestic purchases have tax rate of 17% an d imports have 18.5%. All sales tax returns are filed through web by using FBR f ederal board of revenue) website. On which, all the particulars are mentioned an d firm or person have to put the amounts in destination column. On website of FB R (Federal Board of Revenue) a specimen is available on which taxpayer has to re turn his file. This format has 4 annex. Those are Annex A. Annex B Annex C Annex D It contains domestic purchases. it contains imports it contains domestic sale s to ed & uned persons. it contains exports. After putting all values it manually calculates the exact tax that should be tal ly with mills record. General Excise Duty is also calculated while amount of tax is being calculated. On sugar sale tax rate is 8%. Sales section: Sales department plays vital role in any organization. Each organization wants t o maximize its product sale which it is producing. Customer dealing , maintain s tock position and building strong relations with customers is also done by this department.

In Noon Sugar Mills main functions and duties of sales ant are 100Prepara tion of Daily Fund Report 101Preparation of Bank Receipt Voucher 102Sale of Suga r , Mud , scrap 103Reconciliation of Trade Debtors 104Check sale invoice s and posting of these in ledger. In department there are two types of t erm relating to finance are used. That are; 105Running Finance (R.F) 106Cash Fin ance (C.F) Running finance means the total amounts available for company’s operati ons. This amount is a loan from bank. On this loan company has to pay a fixed am ount of interest. Cash finance means company has pledged a certain quantity of s ugar to its bankers, then it enjoys loan from these banks. From profit it has to pay all amounts of loan so that they can sell pledged sugar. Types of Vouchers: In Noon Sugar sales section for each transaction different vouchers are being po sted in software and a hard printed copy along with its all s is sent to finance manager, who checks the voucher, its posting and related s. These are of two types 107Bank Receipt Voucher

108General Voucher Bank receipt voucher: In this we ed an entry against any type of sale. Bank receipt voucher is being prepared against any deposit in bank . This change in may be due to 109Sale of sugar 110Sale of mud 1 11Sale of scrap General Voucher: General voucher means any deposit in Head Office of company is being posted in company’s s. In case of sale of sugar, mud or scrap we debi ted UBL (CD 1 ) a/c and credited the specific sale item. Trade debtors of Noon Sugar mills. These are the main debtors of Noon Sugar Mills are; 112Tauqir traders Rawalpindi 113Haji manzoor& co Khushab 114Aamir traders Mirpur 115Madina traders Sargodha On sale of sugar to these debtors income tax has been deducted at source. The ra te is 10 % of total sales. These are commission agents of Noon Sugar mill. They daily deposit amounts in company’s , and then ant has to post this i n ledger and then reconcile its ledger with bank reconciliation statement.

Sales invoices and posting of these in ledger. When there is any sale being made to any party then on its physical delivery gat e keeper and excise department issue an invoice that sugar has been delivered to this party. Sometimes mill doesn’t pay its suppliers their amounts, but company i ssues sugar bags against their amount of material supplied. For this purpose we have to prepare an invoice showing the exact balance of sugar bags issued, value of sale tax and special excise duty. Sale tax on 1 kg of sugar is 2.3741 Rs. Sa le department has a party wise sale on which each party and cities are written. In this each and every buyer’s complete name and address has bee n written. We use different types of codes for software purpose. So, here we hav e to write code on manual invoices. After this these are ready to be put in comp uter. Reconciliation of Trade Debtors : For this purpose we use bank reconciliation statement, our ledger balance and ba lance report provided by debtors. In this we calculate the amount of sugar bags, total sales tax and income tax deducted at source, debtor’s payments. When debtor deposits any amount in the bank we confirm it from bank then made a bank receip t voucher. From these 3 documents we prepare reconciliation statement. BANKING SECTION:

The Company kept Current s almost in every bank, but most business is rou ted through these banks, which are as follows. 116Allied Bank of Pakistan Limite d 117United Bank of Pakistan Limited 118Allied Bank of Pakistan 119Bank Alfalah Limited Pakistan The company has also kept Loan s in all above-mentioned banks. The company has routed its most of the import business from United Bank L imited; most of the L/C’s are opened in this Bank. The company is also availing Ca sh Finance Facility from the above-mentioned banks against pledge of sugar bags. Normally at the beginning of the crushing season sugar bags are not sold in mar ket, because these bags are used against Cash Finance Facility from banks. Cash Finance is the main source of the company when there is a shortage of funds. The company has also availed Short Term & Long Term Finances from following banks. Muslim Commercial Bank Limited Habib Bank Limited United Bank Limited Z.T.B.L Pa kistan. BANK RECONCILIATION STATEMENT: Some banks of the company sends the statements of the s to the company on daily basis and some sends at the end of every month or on the demand of the co mpany from time to time. This statement has all the records of

transactions between the company and the bank during that specific period. Accou nts department reconciles the bank statements with s, some time due to so me reasons; transactions do not equally matched with the company’s records. Reason s are as follows: 1. Cheques issued by the company to any party but not still pr esented to the bank for payment. 2. Cheques deposited but not cashed or canceled due to some reason. 3. Any amount debited or credited by the bank but not treat ed in the company’s s STORE SECTION: This section maintains the record of machinery and different parts used in the p roject .The purchases and consumption of different parts is adjusted monthly and annually. In preparation of computerized purchase demand store keeper makes a m anual PD and sends it to office. ant checks all the previous rate s of that good, its quantity and withholding stock. After this he put a rate and transfer it to RD. RD approves the best city for purchase of that good among La hore, Karachi and Sargodha. Supplier bills The main section pays all the suppliers’ bills. When some i tems are purchased and received in the store, the store in charge prepare the re ceiving

report showing the amount and quantity of items received .the receiving report i s sent to the main section. This section then makes arrangement for paym ent to the supplier. Cane section: The cane or the assistant section performs the following functions It su pervises and checks the cane price bills, sugar bills. Recovery bills of seeds a nd fertilizers loan from the cane grower and make arrangements for funds to the concern banks for payment. Department is working under Main s Department. All the printed data sent to Head Office on biweekly basis. Payment to grower i s made through bank after getting approval from Head Office, in case of emergenc y sometimes payment is to be made at Head Office, but during routine, payment to growers is done at site through bank. 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 section and the last copy is sent to the carriage conta ctor. After receiving copy of the voucher, cane department makes entry in the gr oss tire . Then cash voucher and control ledger posting sheet is prepare d and the posting sheet along with the tire is sent to the main section. When the posting sheet and gross tire reaches in the tire acc ount 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 s end 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 super checking of the posting sheet .the gross checker then sent the po sting sheet along with the bills in the duplicate. 1 CANE PRICE BILLS 2 SUGAR BI LLS 3 CARRIAGE CONTRACTOR BILLS One copy of each of the above bill is sent to th e concerned bank for payment .The bank makes the payment after fifteen days of r eceiving the bill from the cane section. The project has specified some branches of the scheduled banks in different zones. At the beginning of the seas on 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 a t the end of each month to the cane section The cane record of payment i s checked with the posting sheet of different zones .The cane section th en makes the vouchers of payment to the cane growers and submit it to the main a ccount section. 120Grower Ledger 121Cane Payment 122Contractor 123Loan 124Daily Cane Purchase & Receipt 125Summery Cane s

STORE: Main s Department also supervises the Inventory / Store Department. Inven tory means stocks of things and items, which are used with in the company for pr oducing goods, and finished goods offering for sales. Inventory can be divided i nto following four groups: 1. Raw Material 2. Work in Process Inventory 3. Finis hed Goods Inventory 4. Spare Parts Inventory For effective control over the company’s inventory, it is necessary that overall w ork should be done under s department. It is very important for store tha t it has to maintain sufficient stock of all the related parts / goods to make t he factory continue its production and functions of other departments without an y hurdle. This department receives the demand from various departments and then arranges the required goods / items. When demand of items / goods received, then following process starts. 1. Purchase Requisition received at store, through re lative department’s head, which contains item’s name & quantity. 2. Store In charge checks the required material/items and issue to relative department according to demand, if required material/items currently not available in store, then Purch ase In charge makes the purchase indent for

required material/items. 3. Purchase indent sent to the Purchase Department at H ead Office after getting approval from General Manager at Site. 4. Purchase Depa rtment examine the quotation if it is less then 50,000 , the purchase manager ca n purchase within this amount but if it exceed from 50,000 to 150,000 it will be approved by the R.D 5. Purchase Department collects quotations from different l isted seller

ing Policies adopted by Noon Sugar Mills: Going concern: These s have been prepared on going concern basis despite the fact that during the year the company has incurred a net after tax profit of Rs. 0.314 Million However the going concern basis is valid as: The company is a ble to arrange finance for its smooth operations. Repayment of liabilities is be ing made and arrangements for matured finance have been made and there are not d efaults. Projected cash flows show better results in future. ing conventi on: These s have been prepared under the historical cost convention. Staf f retirement benefits: The company operates a defined Contribution Recognized Pr ovident Fund Scheme for its eligible permanent employees who opted for the benef its. Equal monthly contribution is made, both by the company and the employee to the fund at the rate of 10% of basic pay. Depreciation: Depreciation is taken t o profit & loss applying reducing balance method

so as to write off he specific rates. ach financial year ayments: These are

depreciable amount of asset to its remaining useful life at t The assets residual values and useful lives are reviewed at e end and adjusted its impact on depreciation is significant. P recorded at original cost

Receipts: Trade debts are carried at original invoice amount less an estimate fo r doubtful debts based on review of outstanding amounts at the end of the year. Bad debts are written off when identified. Taxation: Current: Provision for current taxation is based on taxable income at the curren t rates of taxation after taking into issible tax credits and rebates , if any. Deferred: The company s for deferred taxation on all significan t timing difference using liability method. Fixed assets: Company’s owned: Operating fixed assets are stated at cost less accumulated deprec iation except freehold land and capital work-in-progress which are stated at cos t. Depreciation is computed by applying reducing balance method whereby the cost of an asset is written off over its estimated useful life. Full year depreciati on 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 incurr ed. Major renewals and improvements are capitalized and assets so replaced if an y, are retired. Profit or loss on disposal of fixed assets is included in the cu rrent year’s income. Leased assets: The company s for plant and machinery u nder financial lease by recording the asset and related liability. The amount is 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 compan y. Lease rentals payable on assets held under operating lease are charged to pro fit and loss for the year. 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 126In stock -At cost on FIF O basis. 127In transit -At actual cost. 128Loose tools -At valuation. 129Work-in -process -At average cost of raw materials.

130Finished stock -At lower of average cost and net Realizable value. 131Molasse s -At net realizable value OBJECTIVES OF FINANCIAL ANALYSIS: The particular objectives sought to the served by financial analysis determine t he type of ratios as well as the extent and depth of ratio analysis to be carrie d out to draw conclusions. Financial analysis is carried out by; Business Concer n: 132For assessment of profitability of the business. 133For assessment of stab ility and financial strength of the business entity. Management 134Assessment of efficiency of resources utilization. 135Assessment of potentials of profitabili ty. 136Evaluation of different management controls. Investors:

137Assessment of earnings and divided prospects. 138Growth in economic value of investments vis-à-vis risks undertaken. Bankers/Creditors Concern: 139Assessment o f the ability of the business to service its debt obligations. 140Debt coverage. 141Proper utilization of assets financed. Government Concern: 142Evaluation of the economic contributions of the business entity. 143Determination of the entit y’s 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 com monly used are as follows, 1. Trend analysis 2. Common size analysis 3. Ratio an alysis

ISTRATIVE / MANAGEMENT STYLES: Success or failure of any organization largely depends on the management. Manger s have following four major roles to perform. 144Planning 145Organizing 146Leadi ng 147Controlling For effective performance of the above mentioned functions the managers need

different skills. Like, effective managers require communication skills, in writ ten, oral and non verbal form. They should be creative and innovative, Should be able to manage time. Motivate and influence the others. They should be able to manage the conflicts etc. There are two major sections of the organization. 148P lant. 2 Head office Plant related istration is only up to plant, and head office isters on ly the head office. Here in head office people are very well discipline’s 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 are very strict by the rules and regulation. Otherwise the here is very friendly. People fell free to talk w ith each other. Here the istrative style is democratic not the autocratic. These things are really affecting the efficiency of the people performance. Ther e are a bundle of incentives like hajj ticket, allowances, really encouraged the employee to show there best and they are showing their best here, because all t hese activities encouraged the people. PROBLEMS OF SUGAR INDUSTRY: 149Current flood has badly affected sugarcane production due to which sugar prod uction will decrease next season. 150Quality of sugarcane is not very good, beca use of lack of research in this sector. 151Role of Government in developing vari eties of sugarcane is not very

significant; only some private institutions are doing some research in developin g various varieties for higher yield. 152Government’s wrong policy for import of r aw sugar. 153Heavy duties on export of sugar. 154Instability of exchange rate al so creates problems for exports and imports. 155Increase in cost, due to Governm ent policy of increasing prices of sugarcane, furnace oil & electricity. 156High er rate of mark-up on Finance Facilities. 157Lack of institutional finance for m odernization efforts. RECOMMENDATIONS: 158There should be a safety department in the company to assure the safety of th e workers. 159Noon Sugar Mills limited has the web site, which has not been upda ted. The web site is very less informative and it won’t leave a good impression on the visitor. So I suggest that it should be updated to meet the

requirements of the visitors. 160A regular training programme should be a perman ent policy of the management so as to provide not only the required skill to emp loyees but also to help them keeping their skills up to date. 161There should be card system for every employee from helper to manager for punctuality. 162Wages of workers should not be less than Rs7000 per month. 163There should be transpo rt facility for workers within the district. 164All the employees especially tho se associated with production should be encouraged, and should be involved in de cision making and empowered to make innovative decisions. In this way employees can add to the organization, a lot. CONCLUSION:

At present there is no such organization in the world that is free from problem and challenges. Every concern has to strive and struggle a lot to be more profit able and to get more competitive edge. The management of Noon Sugar Mills is taking strategic steps to enable the mill to become strong and progressive institution. It is continuing to make efforts t o refine its products and operations to make them more compatible. As the business and economic conditions remain uncertain, NSM continues to devel op the new products like it has been doing in past. Bibliography 165s Department

166Mr. Babar, Mr. Qaiser 167istration department 168www.nsm.net 169www.goog le.com.pk 170Yearly annual financial report 2009