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Organization study at chamundeshwari sugar

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Organization study at chamundeshwari sugar

Organization study at chamundeshwari sugar

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  • 1. Sri Chamundeswari Sugar Limited ___________________________________________________________ CHAPTER – 1 INTRODUCTION Sugar is a major form of carbohydrates and is found probably in all green plants. They occur in signification amounts in most fruits and vegetables. There are three main simple sugars sucrose, fructose, and glucose. Sucrose is in fact a combination of fructose and glucose and the body quickly breaks down into these separate substances. HISTORY The discovery of sugarcane from which sugar was produced had been known since thousands of years. It is thought to have originated in New Guinea, and was spread along routes to Southeast Asia and India. The process known for creation of sugar, by pressing out the juice and then boiling it into crystals, was developed in India around 500 BC. Its cultivation was not introduced into Europe until the middle-ages, when it was brought to Spain by Arabs to thrive in a most favorable climate. Dept. of Mgmt. Studies, SAMS, Bangalore 1
  • 2. Sri Chamundeswari Sugar Limited ___________________________________________________________ It was not until the eighteen century that sugarcane cultivation was began in the United States, where it was planted in the southern climate of New Orleans. The very first refinery was built in New York City around 1960; the industry was established by him 1830s. Earlier attempts to create a successful industry in the U.S. did not fare well; from the last 1830s, when the first factory was built. Until 1872, sugar factories closed down almost as quickly as they had opened. It was 1872 before, built in California, and was finally able to successfully produce sugar in a profitable manner. At the end of that century, more than thirty factories were in operation in the U.S. INDUSTRY PROFILE Indian sugar industry is going through a rough weather on account of decline in international / domestic market prices for sugar, higher cost of production, high carry over of stocks, higher cane price fixed by some state government through the SAP(state advised price) than the SMP (statutory minimum price) announced by the government of India have initiated certain measures such as rationalization of sugar cane prices, operationalisation of futures /forward trading etc., aiming to complete decontrol of sugar industry. Export incentives like inland transport subsidy up to port for export of sugar are also offered. To tide over surplus stocks of sugar, the government of India have approved three exchanges for futures /forward trading in sugar viz. e-commodities Ltd., Mumbai; NCS InfoTech Ltd., Dept. of Mgmt. Studies, SAMS, Bangalore 2
  • 3. Sri Chamundeswari Sugar Limited ___________________________________________________________ Sugar is most important agro based industry of India and it has marked place in the country’s economy the reforms the liberalization policies of government of India are fast taking place and changing the industry scene in the country in the country. However it appears that the winds of liberalization and deregulation with are blowing presently through other industrial sectors has bypassed the sugar industry. More over Indian sugar industry have spread over mainly in rural areas, as such major share of benefits should flow towards rural population. Besides present position of the industries shake less the policy of supporting farming economy by increasing sugar cane prices will ultimately raise the sugar crop. So emphasis has to be towards cane development both by Yield and quality. So at this junction it would be appropriate to consider, if no full liberalization at least partial by eliminating some of the undesirable constraints which would help industry in the changing environment when India needs to increase its foreign earnings, in the world market. India has been known as the original of sugar and sugarcane. Indian mythology support the above fact as it contains some legends showing the origin of sugarcane, the growth of the sugar industry is full of tales of adventure and conquest. Hyderabad and e-sugar India, Mumbai, the introduction of futures trading may help in correcting the price distributions, but for it to be effective, the mounting stocks should be managed properly. India has emerged as the largest producer in the world. The sugar production in India during 2001-2002 seasons was around 183 lakh tones with the carry over of stocks of around 118 lakh tones of the previous season. With the internal consumption of 160 lakh tones and exports of around 10 lakh tones, the industry is estimated to be saddled with the carry over stock of around131 lakh tones to the 2002-03 seasons. As on April 30-2002, the co-operative sugar mills had a stock of 114.73 lakh tones. Dept. of Mgmt. Studies, SAMS, Bangalore 3
  • 4. Sri Chamundeswari Sugar Limited ___________________________________________________________ MANUFACTURING PROCESS & TECHNOLOGY Sugar (Sucrose) is a carbohydrate that occurs naturally in every fruit and vegetables. It is a major production of photosynthesis, the process by which plants transform the sun’s energy into food. Sugar occurs in greatest quantities in sugarcane and sugar beets from which it is separated for commercial use. The nature sugar stored in the cane stalk or root is separated from rest of the plant material though a process as refining. For sugarcane, the process of refining is carried out in following steps  Pressing of sugarcane to extract the juice.  Boiling the juice until it begins to thicken and sugar to crystallize.  Spinning the crystals in a centrifuge to removed the syrup, producing raw sugar.  Shipping the raw sugar to a refinery where it is washed and filtered to remove remaining non-sugar ingredients and color.  Crystallizing, drying and packaging the refined sugar. For the sugar industry, capacity utilization is conceptually different from that applicable to industries in general. It depends on three crucial factors the actual number of ton of sugarcane in a day, the recovery rate which generally depends on the quality of the cane and actual length of the crushing season. Since cane is not transported to any great extent, the quality of the cane that a factory receives depends on its location and is outside its control. The length of the crushing season also depends upon location with the maximum being is South India. Sugarcane in India is used to make either sugar, khandsari basic categories, granulated, brown, liquid, or invert sugar. Dept. of Mgmt. Studies, SAMS, Bangalore 4
  • 5. Sri Chamundeswari Sugar Limited ___________________________________________________________ SUGAR IN INDIA Sugar is a controlled commodity in India under the essential commodities act, 1955. the government controls sugar capacity additions through industrial licensing determines the price of the major input sugarcane, decides the quantity that can be sold in the open in the open market, fixes the prices of the levy quota sugar and determines maximum stock levels for wholesales, etc., India is the largest consumer and second largest produces of sugar in the world. With over 450 sugar factories located throughout the country, the sugar industry is amongst the largest agro-processing industries in India, with an annual turnover of Rs 150bilion. India has been known as the original home of sugarcane and sugar. Indians knew the art of making sugar since the forth century. However the advent of modern sugar industry in India dates back to mid 1930s when a few vacuum pan units were established in the sub- tropical belts of Uttar parades and Bihar. Dept. of Mgmt. Studies, SAMS, Bangalore 5
  • 6. Sri Chamundeswari Sugar Limited ___________________________________________________________ Until the mid 50s the sugar industry was almost wholly confined to the states of Uttar Pradesh and Bihar. After late fifties or early sixties the industry dispersed into southern India, western India and other parts of Northern India. India is the largest consumer and second largest produces of sugar in the world. The sufficient and well-distributed monsoon rains, rapid population growth and substantial increases in sugar production capacity have combined to make India the largest consumer and largest produces of sugar in the world. With over 450 sugar factories located throughout the country, the sugar industry is amongst the largest agro processing industry, with an annual turnover of Rs 150bn. It plays a major role in rural development and its importance for India stretches far beyond the role of a sweetener supplier. The sugar factories located in various parts of the country work as nuclei for development of rural areas by mobilizing rural resources and generating employment, transport and communication facilities. Over 45mn formers, their department and a large mass of agriculture labor are involved in sugarcane cultivation, harvesting and ancillary activities constituting 7.5% of the rural population. The sugar industry; employs over 0.5mn skilled and unskilled workmen, mostly from the rural areas. After alternating between control and decontrol, the government adopted the policy of partial decontrol in 1967-68, which has since been the mainstay of government policy except for two short periods of decontrol in the 1970s. Under this policy, the government procures 40% of production at controlled prices based on the statutory minimum price for sugarcane, for supply through the public distribution system. And the balance 60% is allowed to be sold by the mills in free market subject to the monthly release mechanism. The levy quota for sugar mills has been brought down from the peak levels of 70% in 1968-69 to the present levels of 40% as a gradual process of deregulation of sugar industry. Dept. of Mgmt. Studies, SAMS, Bangalore 6
  • 7. Sri Chamundeswari Sugar Limited ___________________________________________________________ The number of operating sugar mills in the country has increased from 29 in sugar year (SY) 1930-31 to 1969-97 (sugar year October 1st to September 30th ). The addition in number of mills was at its peak during seventies that when nearly 100 mills were added between 1970 and 1980 to increase the number of operating units to 300. SUGAR DEMAND Demand for sugar increased with the growing world population, and even faster, perhaps because improving technology made its production cheaper. In the 1980s when the world population was 1,000 millions tones, recorded sugar production was 800,000 tones a year. By 1900 it was 8 million, by the mid-1970 with a world population in excess of 4,000 million, world production of sugar was about 80 million tones, almost equally divided between sugar cane and beet. Today annually production stands at 115,000,000 tones. Dept. of Mgmt. Studies, SAMS, Bangalore 7
  • 8. Sri Chamundeswari Sugar Limited ___________________________________________________________ CHAPTER -2 RESEARCH DESIGN STATEMENT OF THE PROBLEM Channarayapattana is one of the major cities in Karnataka state. Major raw material viz., sugar cane for sugar factory is available in and around the city. The importance of study lies in the fact that there has been no systematic and comprehensive study in the tax by researchers on working capital management with reference to the unit seeks further this study. The study covers a brief history of Chamundeswari Sugar Limited, (Lessee of H.S.S.K Ltd.,) , its performance and working capital management system of Chamundeswari Sugar Limited,(Lessee of H.S.S.K Ltd.,)The study also covers the receivable management, inventory management and cash management. OBJECTIVES OF THE STUDY The following are the main objectives of the study  To study the management of current assets and current liabilities with respect to working capital management in Chamundeswari Sugar Limited, (Lessee of H.S.S.K Ltd.,)  To study the factors responsible for the increase to decrease in the level of working capital in Chamundeswari Sugar Limited,(Lessee of H.S.S.K Ltd.,) during study period.  To study the existing system of receivable management, inventory management of Chamundeswari Sugar Limited,(Lessee of H.S.S.K Ltd.,) To evaluate the working capital policy Dept. of Mgmt. Studies, SAMS, Bangalore 8
  • 9. Sri Chamundeswari Sugar Limited ___________________________________________________________  To highlight the structure and utilization of working capital and to asses the liquidity position of Chamundeswari Sugar Limited,(Lessee of H.S.S.K Ltd.,) during study period.  To study the organization structure of the company and functioning various department.  To offer suggestion for the improvement in the management of working capital. SCOPE OF THE STUDY The study examines the working management in Chamundeswari Sugar Limited, (Lessee of H.S.S.K Ltd.,).The focus is only on analyzing and evaluating effectiveness of working capital management in Chamundeswari Sugar Limited,(Lessee of H.S.S.K Ltd.,) The issues relating to working capital management include: 1. How much money is to be invested in current assets. 2. Management of Account Receivables. 3. Management of Inventory. Dept. of Mgmt. Studies, SAMS, Bangalore 9
  • 10. Sri Chamundeswari Sugar Limited ___________________________________________________________ SOURCES OF DATA It is very well known that success or failure of the research depends upon the data. Therefore, selection of appropriate methodology for collection of relevant data is important. The sources include both primary and secondary sources. PRIMARY Personal interview with SOURCES OF CAO and other top-level DATA officers SOURCES OF DATA Company annual reports SECONDARY SOURCES OF Journals DATA Magazines Dept. of Mgmt. Studies, SAMS, Bangalore 10
  • 11. Sri Chamundeswari Sugar Limited ___________________________________________________________ Limitations of the Study The limitations of the study are: 1. The study is confined only to HSCL. 2. The study is restricted to only the current assets and current liabilities. Hence, the study of fixed assets and capital are excluded in this study. 3. The major part of the analysis has been based on the audited financial reports of HSCL. . Dept. of Mgmt. Studies, SAMS, Bangalore 11
  • 12. Sri Chamundeswari Sugar Limited ___________________________________________________________ CHAPTER - 3 COMPANY PROFILE Chamundeswari Sugar Limited,(Lessee of H.S.S.K Ltd.,)is established in the year of 1984 in the interest of local farmers and pre planned to provide job for the soil sons under the register no 2599/73-74. The plant was erected by buck Wolf Company from Pune, it is having capacity of 1250 TCD per day. The first estimated cost of the factory increased up to 7.3 crore. After this cost it is not enough for establishment of factory. So the third estimated cost of this project is 9.70 crore. Today’s establishment of factory cost approximately more than 50crore.. The site was selected for the location of the factory near the village Srinivaspura 6- Km from Channrayapatna taluk head quarter which is situated at an NH 48 on BM road which is 150 km from Bangalore. The Government of Karnataka granted 150 acres of land near Srinivasapura village. The river Hemavathy is flowing at about 2.5 km from the site. Water is constantly fed from the river water by factory jack well pump. Dept. of Mgmt. Studies, SAMS, Bangalore 12
  • 13. Sri Chamundeswari Sugar Limited ___________________________________________________________ The starting moment of the factory, some important technicians were called from the other factories only for trial season. After some employees were selected on their experience and remaining employees were selected on contract basis. Ultimately the contract employees were appointed in the year of 1991 -92 according to the rules these posts are approved by the director of sugar, Karnataka govt Bangalore (as per staffing pattern). At present the total strength of the employees working in this factory is 567. PRODUCT SERVICE PROFILE: - CANE: - Sugarcane is a plant is mixing more CO2 by efficient process of photosynthesis and translucent. The sugar synthesized in the leaves or translated to the steam in the form of sucrose and is converted into glucose and other sugars. The glucose molecules are used for the developments of the plant at the growth phase. Sugarcane contains about 14% fiber and 86% juice, sugarcane juice consists of 13% of sucrose and 73% moisture and non-sugar solids. The transport of sugarcane from farmers to the factory will be engaged through Lorries which will be taken through bidding at the time of harvesting and also farmers themselves supply by their own bullock carts or by tractors. For the purchase of other raw materials Manager will receive the material requisition slips from the usage department, which should be signed by all the department heads and by the General Manager. Then the purchase department will evaluate the list of vendors and the tabulated comparative statement will be sent to the usage department. Then on the basis of the opinion of the usage department the purchase department will send a file to the management, and then on the basis of this file the purchase department will place the purchase order. Dept. of Mgmt. Studies, SAMS, Bangalore 13
  • 14. Sri Chamundeswari Sugar Limited ___________________________________________________________ Cane varieties in Chamundeswari Sugar Limited, (Lessee of H.S.S.K Ltd.,) 1) CO 419. 2) CO 7804. 3) COC- 671. 4) CO 8371. 5) CO 62175. 6) CO 8014. 7) CO 32175. PRODUCT DETAILS: CANE HANDLING: The transport system of cane should be established for efficient supply of cane. At present 80% of the cane crushed per day is through tractors and Lorries and 20% by bullock carts. The transport is entirely arranged by the growers. The cane is unloaded on the feeding table after measuring the weight. . CANE SUPPLY: The indent for crushing cane is given by the chief engineer to the agricultural dept daily. The agricultural dept allots the cane quota to each circle in three days in advance. The laboratory section takes the samples of the cane from the cane yard randomly and makes the analysis for the expected recovery and external material percent cane. If both are beyond the normal level, instruction will be sent to agricultural dept. to staff the harvesting of the particular cultivator field or farm. Dept. of Mgmt. Studies, SAMS, Bangalore 14
  • 15. Sri Chamundeswari Sugar Limited ___________________________________________________________ QUALITY POLICY CANE QUALITY: The cane should be free from traps, tops, dirt, soil etc. After unloading the cane from the trucks the company has arranged contract labors to remove the remaining dry cane, water shoot trash, binding materials etc from the cane supply to the factory. This practice improves not only the quality of cane but also the efficiency of the factory performance. AREA OF OPERATION: - SUGARCANE GROWN AREA: Sugarcane is grown in 130-140 villages under different circle names mentioned as bellows: SL.NO. Name of the circle 1 Channarayapattna-1. 2 Hassan. 3 Holenarasipura. 4 Kikkeri. 5 Shravanabelagola. 6 Srinivasapura. Area of operation means, the place where the company carries business operation companies is always used to carry business, where the required resources are easily available. Area of operation plays a vital role while fixing price, there by development of the company. Because if the area has suitable environment , raw material, labors for less wages , then it will reduces the cost of production. Dept. of Mgmt. Studies, SAMS, Bangalore 15
  • 16. Sri Chamundeswari Sugar Limited ___________________________________________________________ OWNERSHIP PATTERN: It is a government based company and major contribution for this company is from the state government, and remaining contribution is from the share holders of the company. And the company is mainly controlled by govt. Company conducts election to elect president for the company, and share holders has voting power for this election, and these are the members for the company. If any members have any queries they can discuss with president in the meeting. In case president absence, they can meet general manager for the solution. Now the president of H.S.S.K Ltd is Sri H.S Shrikantappa .The entire union is controlled by president of the company. If the company earns profit, profit will be distributed to the formers based on their contribution. VISION: “To achieve organizational profitability by attaining the high level of productivity, to earning the trust of customer, and providing better value for sugar cane to attract the customer”. MISSION: • To increase their sales. • To achieve the recovery level of 9.5% at the end of 2008 • During 2007-2008 company has a target to crush a sugar cane of 250000 MT. • To increase quality of the product & fulfill the needs of the customer. Dept. of Mgmt. Studies, SAMS, Bangalore 16
  • 17. Sri Chamundeswari Sugar Limited ___________________________________________________________ GOALS AND OBJECTIVES: • The sugar union was started 16-06-1973 and it has started from crushing from 1984. They want to develop their product union like CO-OPERATIVE SOCIETY. • To increase quality of sugar. • To increase their sales. • Increase the sales by conducting many programs like consumer information programs. • To increase the members of the union. • To regularly supply there product all the customers according to customer needs. COMPETITORS INFORMATION H.S.S.K Ltd has many competitors in different places around there area, and the main competitors are from MANDYA sugar factory. They attract customers by providing some benefits in terms of traveling expenses. There is a more competition mainly through supply of sugar cane. Company set a proper equivalent price to the sugar cane to attract more customers, and make good relation with the customers through cash settlements for sugar cane purchase. INFRASTRUCTURAL FACILITIES The factory premises have an area by 86.22 acres of land. In the premises has there is a factory building, management office, accounting section, cane department, cane yard, quarters, weight bridge, cane sugar & 20 acres of land to undertake Research & Development. Dept. of Mgmt. Studies, SAMS, Bangalore 17
  • 18. Sri Chamundeswari Sugar Limited ___________________________________________________________ Present sugarcane plantation in the year of 1998-99 as given below, SI NO Name of the circle 1998-99 1. Channarayapattna-1 2624 2. Srinivasapura 1507 3. Holenarasipura 1684 4. Kikkeri 533 5. Hassan 307 Nearly 85% of cane area is under wet land condition and 15% of cane area is under dry lands. ACHIEVEMENTS 1. It has been awarded as the good infrastructure In the Karnataka in 1994. 2. It achieves more profit during 1989 in the Karnataka. 3. It has been awarded as the best quality product producer by the government of Karnataka. 4. It holds more number of customers and it has many share holders with good relation, they are the strength of the company. CHAPTER – 4 Dept. of Mgmt. Studies, SAMS, Bangalore 18
  • 19. Sri Chamundeswari Sugar Limited ___________________________________________________________ DEPARTMENTATION INTRODUCTION Department is s a process of dividing the large functional organization in so small and flexible administrative units. The basic need of departmentation arises because of limitation on the number of subordinates that can be directly managed by the superior. BASIS OF DEPARTMENTATION Departmentalization may be on the basis of function, products, regions, customers, process, time, number, and marketing channel Functional basis is a very popular method of departmentalization. It refers to grouping of activities of the organization into major functional departments like, production, purchase, and marketing act. In Chamundeswari Sugar Limited, (Lessee of H.S.S.K Ltd.,) departmentalization is on the basis of function. The major functional departments of Chamundeswari Sugar Limited,(Lessee of H.S.S.K Ltd.,) , are as follows. ORGANIZATION STRUCTURE Organization structure is a basic framework within which the decision making behavior of executives takes place. It is an established pattern of relationship among the components of the organization. Chamundeshwari sugar industry limited is headed by the Chairman under whom M.D. and can advisor will take place. This crew guides the G.M. who is assisted by the department manager and heads. Dept. of Mgmt. Studies, SAMS, Bangalore 19
  • 20. Sri Chamundeswari Sugar Limited ___________________________________________________________ ORGANIZATION CHART CHAIR PERSON BOARD OF DIRECTORS Mechanical Dept. Production Department Power Plant Dept Cane Dept. ADM/TIME/OFFICE GM (Tech) Admn. Manager Chief Chemist Duty Engineer Cane Manager and. Officer Chief Engineer Sr. Mfg. Chemist Asst. Engrs. Dy. Cane Manager Sr. Engineer Asst. Per. Officer Mfg. Chemist Turbine Optrs Asst. Cane Dept Officer Asst. Engineer Asst. Admn Officer Panamaa Bioler Optrs Cane procurement Asst. Time Shift Engineer officer Keeper Centrifugal Optrs Fitters General A/c section Workshop section Eng. Dept Store Section Sales Dept. Dy. Foreman Boiling House Filter Chief Engr Head Store Keeper Manager(Finance) Turners Sale I/C Sr. A/c’s Officer Welders Sr.Engr. Computer Optr Welders Sales Officer Accountant Fitter Helpers Asst. Engr. Clerk Mechanist Assistants Cashiers Helper Fitter Store Boys Dept. of Mgmt. Studies, SAMS, Bangalore 20
  • 21. Sri Chamundeswari Sugar Limited ___________________________________________________________ 1 PURCHASES DEPARTMENT 2 STORES DEPARTMENT 3 ADMINISTRATION DEPARTMENT 4 FINANCE DEPARTMENT 5 CANE DEPARTMENT 6 ENGINEERING DEPARTMENT 7 SALES DEPARTMENT 8 CHEMICALS DEPARTMENT Dept. of Mgmt. Studies, SAMS, Bangalore 21
  • 22. Sri Chamundeswari Sugar Limited ___________________________________________________________ PRODUCTION DEPARTMENT PRODUCTION DEPT CHIEF CHEMIST SR.MFG. CHEMIST MFG. CHEMIST PANAMAN CENTRIFUGAL OPTRS JUICE SUPERVISOR SUGAR HOUSE CLERK Dept. of Mgmt. Studies, SAMS, Bangalore 22
  • 23. Sri Chamundeswari Sugar Limited ___________________________________________________________ PRODUCTION ACTIVITY The department deals with the production activities on the production floor where men and machines are employed to convert the cane and chemicals into finished product (sugar) for handling them over to sales department. PRODUCTION PROCESS Sugar (sucrose) is a carbohydrate that occurs naturally in every frurt and vegetable. It is a major product of photosynthesis, the process by which plant transform the sun’s energy into food. Sugar occurs in greatest quantities in sugarcane and sugar beets from which it is separated for commercial use. Dept. of Mgmt. Studies, SAMS, Bangalore 23
  • 24. Sri Chamundeswari Sugar Limited ___________________________________________________________ The natural sugar stored in the cane stalk or beetroot is separated from rest of the plant material through a process known as refining. For sugarcane, the process of refining is carried out in the following steps: 1. Pressing of sugarcane to extract the Juice. 2. Boiling the juice until it begins to thicken and sugar begins to crystallize. 3. Spinning the crystals in a centrifuge to remove the syrup, producing raw sugar 4. Shipping the raw sugar to a refinery where it is washed and filtered to remove remaining non-sugar ingredients and color. 5. Crystallizing, drying and packaging the refined sugar. For the sugar industry, capacity utilization is conceptually different from that applicable to industries in general. It depends on three crucial factors-the actual number of ton of sugarcane crushed in a day, the recovery rate that generally depends on the quality of the cane and actual length of the crushing season. Since cane is not transported to any great extent, the quality of the cane that a factory receives depends on its location and is outside its control. The length of the crushing season also depends UJKMI location with the maximum being in south India. FERTILIZER Mud and spent wash from distillery plant are mixed and fertilized is produced. Fertilizer later is transported to fields of farmers who gave ordered for. Dept. of Mgmt. Studies, SAMS, Bangalore 24
  • 25. Sri Chamundeswari Sugar Limited ___________________________________________________________ PRODUCATION PROCESS CANE PREPARATION STEAM CANE PREPARATION WATER ---------------------------------------------------------------------BAGASSES RAW JUICE BOILER EXHAUSTED STEM ----------------------- CONDENSATE SULPHURED JUICE FILTERED JUICE SULPHUR DIOXIDE EXHUSTED STEAM -------------------------------- CONDENSATE WATER CLEAR JUICE EXHUSTED STEAM---------------------------------- JUICE+MUD MUDE SURUP SULPHUR DIOXIED ----------------- ------------- VAPOURS EXHAUSTED STEAM----------- ---- ------ CONDENSED MOLASSES CLEAR JUICE STEAM OR SUPAER HEAT WASH WATER GODOWN CLEAR JUICE Dept. of Mgmt. Studies, SAMS, Bangalore 25
  • 26. Sri Chamundeswari Sugar Limited ___________________________________________________________ PURCHASES DERPARTMENT The head of the department heads purchasing department. Purchasing decisions are divided into two. One for purchase of capital assets and another is regular purchase. Purchase of capital assets requires approval of management CONSIDERABLE POINTS WHILE PURCHASING CAPITAL ASSETS • life duration of the asset • cost of the asset • capacity etc., REGULAR PURCHASES Indent from the user is original document to issue purchase order for regular purchase of materials and goods. PROCESS:  Receiving indent from user.  Calling tenders if necessary.  Preparing purchase order.  Ordering to supplier.  Making purchase return if the material doesn’t match order. Dept. of Mgmt. Studies, SAMS, Bangalore 26
  • 27. Sri Chamundeswari Sugar Limited ___________________________________________________________ STORE DEPARTMENT HEAD STORE KEEPER COMPUTER OPERATIONS CLERKS STORE BOYS Stores dept. holds the entire inventory required in the organization. All the materials coming are subject to record at stores and are held in the stores until they are issued to the required department. Dept. of Mgmt. Studies, SAMS, Bangalore 27
  • 28. Sri Chamundeswari Sugar Limited ___________________________________________________________ FUNCTIONS: 1. Receipt of materials. 2. Inspect it with ordered quantity quality and any specifications. 3. Some of the materials like chemicals are to be sent to laboratory for inspection and testing. 4. Getting indents from the departmental head or the concerned person and issuing it 5. To make purchase-returns if the materials are rejected. 6. Maintain minimum level of material. 7. Informing purchase department when materials require. MATERIALS HANDLED A. Engineering: tools, Spares. B. Raw-materials. C. Stationery. D. Packing materials. Dept. of Mgmt. Studies, SAMS, Bangalore 28
  • 29. Sri Chamundeswari Sugar Limited ___________________________________________________________ ADMINISTRATION DEPARTMENT At Hemavathi sugar Ltd., has administration department control and monitor the activities of time arid security personnel. Human Resource Development is the challenging function in front of administration department. GENERAL MANAGER ADMINISTRATION MANAGER PERSONNEL DEPT TIME OFFICE SECURITY Dept. of Mgmt. Studies, SAMS, Bangalore 29
  • 30. Sri Chamundeswari Sugar Limited ___________________________________________________________ PERSONAL DEPARTMENT FUNCTIONS; 1. To maintain the Personnel administration of the manpower strength of 350. 2. Recruitment and selection: The advertisements for recruitment of employee are made though leading news papers. Apart from this as a statutory obligation, Hemavathi sugar Ltd., appoint trainee also. Among the application received, eligible candidates are selected though scrutiny competent candidates are appointed for the job. 3. Training and development: Training and development skills to newly employed. Training is necessary production, mechanical and electrical department. On the job training is arranged at the plant. 4. Remuneration: Remuneration refers to the reward for labor and service. Basically remuneration is fixed on the basis of hours worded. Each shift is of 8hours and 3 shifts a day. FRINGE BENEFITS • Canteen facility. Food is providing at subsidized rates. • Transportation facility. Cars are providing to managerial levels and executives. Supervisors are given two wheelers. • Housing facility. The company has its own quarters and providing quarters to employees. Dept. of Mgmt. Studies, SAMS, Bangalore 30
  • 31. Sri Chamundeswari Sugar Limited ___________________________________________________________ TIME OFFICE Objectives of time office are:  Keeping attendance records for administration and payment purposes.  Maintaining records for giving increments and promotions. FINANCE DEPARTMENT Dept. of Mgmt. Studies, SAMS, Bangalore 31
  • 32. Sri Chamundeswari Sugar Limited ___________________________________________________________ Finance is the lifeblood of any business it is concerned with the activation 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. It is the most important department in which most of the functions are carried out such as accounting, planning, mobilization and effective utilization of funds. OBJECTIVES:  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 cost control and cost reduction techniques.  To see that financial interest of the company.  To protect the financial interest of the company.  It helps in achieving the business results profitably.  Waste management. SOURCES OF FINANCE:  ICICI.  IDBI.  IFCI.  Corporation Bank.  Canara Bank.  Vijaya Bank.  Syndicate Bank.  State Bank of India. Dept. of Mgmt. Studies, SAMS, Bangalore 32
  • 33. Sri Chamundeswari Sugar Limited ___________________________________________________________  Government of Karnataka CHART OF FINANCIAL DEPARTMENTS MANAGING DIRECTOR FINANCE MANAGER DEPUTY FINANCE MANAGER ACCOUNTS OFFICER ACCOUNTS CASHIER Dept. of Mgmt. Studies, SAMS, Bangalore 33
  • 34. Sri Chamundeswari Sugar Limited ___________________________________________________________ ACCOUNT ING DEPARTMENT INTRODUCTION : Chamundeswari Sugar Limited,(Lessee of H.S.S.K Ltd.,) is an industrial organization manufacturing sugar, power, and ethanol accounts department of HSCL plays role in achieving objectives NEEDS FOR ACCOUNTING SYSTEM:  To ascertain the profit and loss of the business.  To ascertain the financial position of the business.  To providing control over assets and properties of the company.  To providing information to tax authorities like, sales tax, income tax, control excise etc.  Assistance to management on a) Decision-making b) Forward planning and budgeting. c) Controlling various management functions.  To provide information to government central, state and various local bodies. Dept. of Mgmt. Studies, SAMS, Bangalore 34
  • 35. Sri Chamundeswari Sugar Limited ___________________________________________________________ CANE DEPARTMENT INTRODUCTION Cane is the only raw material for producing the sugar. Cane department keeps the direct link with farmer to procurer and the development of the cane. SUGARCANE In India Sugar is produced only from Sugarcane, as the country’s climatic conditions are suitable for cane cultivation sugarcane being agricultural crops subject to the unpredictable vagaries of natures, yielding either a bumper crop of a massive shortfall in its cultivation from year to year. The quality of sugarcane improves with age, reaching a peak, and gradually declining. A rapid deterioration begins from the most purity of juice cane has to be crushed within 8 to 10 hours of cutting The usual sugarcane constituents along with their content I sugarcane as a % of total weight is as given below SUGARECANE CONSTITUENTS Constituent % of total weight Water 69-75 Sucrose 8-16 Reducing sugar 0.5-3 Organic substances 0.5-1 Nitrogenous bodies 0.5-1 Ash 0.3-0.8 Fiber 10-16 Dept. of Mgmt. Studies, SAMS, Bangalore 35
  • 36. Sri Chamundeswari Sugar Limited ___________________________________________________________ Rainfall and temperature are the two important determining factors for the yield and quality of sugarcane, although reduced level of rainfall can be substituted by irrigation or sprinkling of cane water. Even ton of cane cultivation requires approximately 60-70 ton of water under controlled conditions. But under field conditions the water requirement for sugarcane varies with variations in soil and climatic conditions. The efficiency of water uptake and use varies with different varieties. Sugarcane yield in the country has doubled in the past sixty five years from 30.90 ton per hectare in SY 1930-31 to 66.5 ton hectare in SY 1996-97. The sugarcane yield has decreased since the peak 71.3 ton per hectare in SY 1994-95. The sugarcane yield varies widely across the country in the range of 40 to 100 ton per hectare. Tamilnadu and Karnataka lead among the states with a yield of 100 to 85.7 ton per hectare respectively. Madhya Pradesh and Bihar have the lowest yield in the country in the range between the quantities of 40 tons to 44 tons per hectare. SUGARCANE JUICE Sugar cane juice is acidic in nature. Besides sugar it contains many other organic and inorganic and soluble as well as insoluble substance in varying amounts, together called as non-sugars, to the extent of 3 to 7.5 % of total quantity. These insoluble suspended matters make the juice viscous and turbid. The constituent of sugarcane juice as a percentage of total quantity is as given below. Dept. of Mgmt. Studies, SAMS, Bangalore 36
  • 37. Sri Chamundeswari Sugar Limited ___________________________________________________________ SUGARCANE JUICE CONSTITUENTS Constituent % of total quantity Water 75-85 Sucrose 10-21 Other sugar 0.3-3 Other organic Substances 0.2-0.6 Nitrogenous bodies 0.5-1 Bricks Test must be made before cane is cut. It is also called Recovery Test OBJECTIVES OF CANE DEPARTMENT 1. To procure the cane at proper time and at proper condition. 2. To look after the transportation of cane from farmers through trucks tractors and carts. 3. To develop the cane and giving proper guidelines to grow. 4. To keep and maintain concerned land database. 5. Hiring trucks and tractors. 6. Harvesting cane. CIRCLE OFFICES Assistant Cane Development Officer heads the circle office. There are ten circle officer located at different places surrounding from where cane is being procured. Supervisors assist circle officer. Supervisors are to report corresponding circle offices. Weekly report has to be sent to the Cane manager. Dept. of Mgmt. Studies, SAMS, Bangalore 37
  • 38. Sri Chamundeswari Sugar Limited ___________________________________________________________ CHART OF CANE DEPARTMENT GENERAL MANAGER (CANE) CANE MANAGER DEPUTY CANE MANAGER CANE DEVELOPMENT SUPERVISORS CLERKS Dept. of Mgmt. Studies, SAMS, Bangalore 38
  • 39. Sri Chamundeswari Sugar Limited ___________________________________________________________ SALES DEPARTMENT SALES INCHARGE SALES OFFICER ASSISTANTS INTRODUCTION Sales Manager is in charge of the sales department. The sales department takes care of all the sales. The Asst. Sales Manager has to supervise the sales. Marketing and advertisements are not necessary in sugar industry, because customer won’t ask for specific company produced sugar and that not even separable. Anyhow the contacts with dealers and agents are to be developed. FUNCTIONS As mentioned above, marketing and advertising efforts are not made to promote sales. But the sales department has to keep in contact with dealers and agents. • Getting orders from parties. • Arranging for delivery to parties. • Maintaining records of sales. • Sending reports to Managing Director (Head Office) Dept. of Mgmt. Studies, SAMS, Bangalore 39
  • 40. Sri Chamundeswari Sugar Limited ___________________________________________________________ EXPORTS Sugar is exported to Middle-East and European countries. DEMAND-SUPPLY, IMPORT-EXPORT DEMAND Indians by nature have a sweet tooth and sugar is a prime requirement in every household. Bulk consumers like bakers, candy makers, sweet madders, and soft drink manufacturers consume almost 75% of the sugar available in the open market. Khandsari sugar is less refined and is typically consumed by sweet makers. Gur an unrefined form of lumpy brown sugar, is mostly consumed in rural areas, and with some quantities illegally diverted for alcohol production. Industrial consumption for sugar is also growing rapidly particularly from the food- processing sector and sugar based bulk consumers such as soft drink and ice cream manufacturers. The demand for sugar has increased from 3.69million ton in SY 1975-76 to 14.8mn ton for SY 1997-98 at a CAGR of.6.48%. The per capita consumption of total sugar (Gur & Khandsari) in the country has been increasing at phenomenal rate. The total per capita consumption has increased form 19.8 kg in SY 1975-76 to 2455 kg in SY 1997-98. It is evident from the table (2) that in states with a higher net per capital state domestic product and also a higher proportion of urban population. The consumption of sugar is significantly higher and compares favorably with developed countries such as the USA and countries of the I’TJ. In fact, in urban areas of comparatively affluent Indian states like Punjab, Haryana etc., per capita consumption of sugar is substantially higher. SUPPLY Dept. of Mgmt. Studies, SAMS, Bangalore 40
  • 41. Sri Chamundeswari Sugar Limited ___________________________________________________________ Indian sugar industry has grown horizontally primarily because of GOL policy to support small size sugar factories by excluding them from the requirement of supplying. The production of sugar has increased in the past from 0.12mn ton in SY 1930-31 to 12.85mn ton in SY 1997-98 at a CAGR if 7.23%. The number of operating sugar mills for the corresponding period has i9ncreased from just 29 in SY1930-31 to around 412 in SY1997-98. The addition of mills was at its peak during the period of seventies and eighties when 100 and 70 new mills respectively were commissioned. The sugar production in the country fluctuates widely based on sugarcane availability in the country. For example; the sugar production increased in SY 1991-92 by 58% to 13.4 million ton, but decreased in SY 1993-94 by 27% to 9.83 million ton. Similarly the production increased in SY 1995-96 by 67% to 16.45mn ton, but decreased by 22% in SY 1996-97 million tons. Dept. of Mgmt. Studies, SAMS, Bangalore 41
  • 42. Sri Chamundeswari Sugar Limited ___________________________________________________________ S-30 grade sugar has the maximum production in the country constituting around 72% of the total; production. The remaining 24% is of M-30 and the rest is from L-30 and the other different grades under 29 series. IMPORTS The government controls import of sugar thought policy and custom duties based on a demand-supply mismatch in the county. In the past, imports were allowed only though government agencies or institutions, but since 1997, private were allowed to import and distribution sugar in the country. In 1997, sugar was placed under Open General License (OGL) and allowed to be imported at zero import duty, so as to overcome the domestic shortage of sugar production. This led to a sudden spurt in imports to 0.94mn to for SY1997-98 The zero import duty was continued in the early part of 1997-98 season in spite of a bumper crop of sugarcane leading to excess supply and closing stock in the industry, the slowdown in demand in other Asian countries only further added to boost exports from other Asian countries into India, which have freight cost advantages. Pakistan and Brazil are the major exporters of sugar to the country. Pakistan has advantages of freight cost and provides a subsidy of Rs.4 per kg for exported sugar. To overcome the problem, the GOI announced customs duly of 5% and valorem and countervailing duty of Rs. 850 per ton on 26th April 1998. But the devaluation of Asian currencies along with a depression in the region pushed up the supply through imports in to the country. In September 1998, all imports were asked to register with APFPDA (Agricultural and Processed Food Products Development Authority) so as to monitor the amount of sugar imported into the country, presently imports are mainly carried out by Dept. of Mgmt. Studies, SAMS, Bangalore 42
  • 43. Sri Chamundeswari Sugar Limited ___________________________________________________________ multination trading firms having a well-establishment distribution network in the country. On January 15th,1999, the customs duties on sugar were increased to 20% and valorem so as to protect the Indian sugar industry from excess supply though imports , but this has made little impact from Pakistan, which has raised subsidies for exports and Brazil, which has devalued its currency. To further discourage imports, Indian sugar companies are demanding an increase in; duty to 50% as India is allowed to impose a maximum of 150% customs duty on agro processed foods as per WTO. But the GOI is in hurry to increase customs duty as it feels domestic sugar prices will increase in customs duty. In the recent budget for 1999-2000, customs duty on sugar was marginally increased to 25% as a process of rationalization of duty slabs in their tax systems, taking into account the 10% across the board surcharge on all imports, the effective import duty for sugar work out to be 27.5% ad-valorem plus a countervailing duty of Rs. 850 per ton. First SY 1998-99, imports are expected to be around O.S. million ton, But to protect the interests of farmer in the period of high sugar production, the GOI is expected to customs duty, leading to a drop in imports for SY 1999-2000 to 0.6 million ton and 0.4 million ton in SY 2000-01 Dept. of Mgmt. Studies, SAMS, Bangalore 43
  • 44. Sri Chamundeswari Sugar Limited ___________________________________________________________ EXPORTS The substantial increase in the volume of free international trade in sugar presents an excellent opportunity to the Indian sugar industry to embark on a regular plan for sugar exports. But the restrictive sugar; policies along with unstable sugar production pattern make it an erratic trader on the world market. In quick succession, India changes guard from the position of exporter of sugar to that of an importer. To quote a recent example, sugar of O.S million ton SY 1991-92 and SY 1992-93 was followed by import of 2mn ton in SY 1993-94 and 0.2 million ton SY 1994-95. This was again followed by an export of I million ton in SY 1995-96 and 0.4 million ton is SY1996-97. This circle has been completed last year SY 1997-98) with 0.94 million ton imports. The different up cursing period in India and other major producers exporter like Brazil and Australia can be utilized to tap the export marking in a big way. For the purpose of a comparison, the crushing season for different sugarcane producing countries vis-à-vis India is as given in table no (3) In demand-supply calculation projection, the exports are expected to increase from the present level of 0.07 million ton to the earlier levels of around 0.1 million ton in SY 1999-2000 and 0.2 million ton in SY 2000-2001. DEMAND SUPPLY By estimating sugar cycle to top in season 1999-2000 by clocking a growth of 7%, and then witness a drop in production for the season 2000-01. The closing stock will come down to 3.3 million ton by September 30th 2001 form present level of 5.4 million ton by September 30th 1998. Dept. of Mgmt. Studies, SAMS, Bangalore 44
  • 45. Sri Chamundeswari Sugar Limited ___________________________________________________________ CHEMICALS DEPARTMENT INTRODUCTION Chemicals department is directly concerned with production. When the production is on process, mixing proper quantity and proper chemicals is necessary. Chemicals department is the production department. IMPORTANT CHEMICALS Lime and sulphur dioxide CHART OF CHEMICAL DEPARTMENT GENERAL MANAGER CHIEF CHEMIST CHEMIST MANUFACTURING SHIFT CHEMIST LAB CHEMIST PAN MEN CENTRIFUGAL OPERATORS Dept. of Mgmt. Studies, SAMS, Bangalore 45
  • 46. Sri Chamundeswari Sugar Limited ___________________________________________________________ ENGINEERING DEPARTMENT INTRODUCTION This department takes care of all the repairs-and maintenance units. The Chief Engineer is the head of the department. Deputy Engineer and an instrumentation engineer assist him. The department is responsible for rectifying any breakdown machinery & equipment. FUNCTIONS  Maintenance of tools used in manufacturing process  Maintenance of the plant and machinery.  Providing technical service of the company. CHART OF ENGINEERING DEPARTMENT GENERAL MANAGER CHIEF ENGINEER INSTRUMENTATION STORE DEPT DEPT.CH. ENGINEER WOKE SHOP ENGINEER TRAINEE ENGR. INSTRUMENTATION TECHNICIANS FITTERS HELPER Dept. of Mgmt. Studies, SAMS, Bangalore 46
  • 47. Sri Chamundeswari Sugar Limited ___________________________________________________________ ELECTRICAL ENGINEERING DEPARTMENT INTRODUCTION This department takes care of all repairs and maintenance of fittings and fixtures of the plant. The Senior Engineer is the head of the department. Assistant Electrical engineer and junior engineers assist him. ELECTRILCAL ENFINEERING DEPARTMENT GENERAL MANAGER SENIOR ELECTRICAL ENGINEER ASSISTANT ENGINEER SUPERVISORS WORKMEN Dept. of Mgmt. Studies, SAMS, Bangalore 47
  • 48. Sri Chamundeswari Sugar Limited ___________________________________________________________ POWER PLANT Power plant uses the fiber of processed sugarcane (basgass) as fuel to generate electricity in an environment responsible manner. An integrated 15 M W power plant generator and supplies electricity to the state grid produced from sugarcane waste. Steam used to rotate turbines, 7WM power is utilized within the plant, and remaining power is supplied to KPTGL. CHART OF POWER PLANT GENERAL MANAGER HEAR POWER PLANT ASSISTANT ENGINEER JUNIOR ENGINEER BOILER OPERATORS Dept. of Mgmt. Studies, SAMS, Bangalore 48
  • 49. Sri Chamundeswari Sugar Limited ___________________________________________________________ DISTILLERY Distillery plant was installed in the year 2002 at the same location, Spirit produced at the distillery plant, Molasses is converted into rectified spirit. Molasses is waste product form sugar juice. It is the byproduct in sugar industry. Production of spirit is subject to control of excise department (Karnataka State Government) the same department makes distribution and sale of spirit only. Ethanol also subject to control of excise department, 0.55 Ethanol is used in petrol. Dept. of Mgmt. Studies, SAMS, Bangalore 49
  • 50. Sri Chamundeswari Sugar Limited ___________________________________________________________ CHART OF DISTILLERY PLANT GENERAL MANAGER DISTILLERY MANAGER SHIFT CHEMIST SENIOR CHEMIST LAB CHEMIST DISTILLERY OPERATORS HELPER Dept. of Mgmt. Studies, SAMS, Bangalore 50
  • 51. Sri Chamundeswari Sugar Limited ___________________________________________________________ PRICING POLICY INTRODUCTION Unlike other consumer goods, sugar cane will not be differing in price, because it is subject to control of Government will fix the sugar price. Price for export will be fixed by the firm. It is management’s policy to fix the price. Sugar Price Sugar is a controlled commodity in India the essential commodities Act, 1995. Sugar prices in the country can be classified into two broad categories at the user end as free market prices and prices of sugar through public distribution system. The GOI announces PDS sugar prices based on levy sugar prices fixed by it and the subsidy to be provided through budgetary system. The realization to sugar mills from government levy quota is called levy prices. Levy prices are fixed by the GOI based on SMP for the year. But usually levy prices are very low and fall below the cost of production. Therefore the producers are left with only free sugar quota to run the business profitably. GOI controls extend to free market prices also though the issue of monthly dispatch orders to all the sugar mills and the country on demand supply situation in the country. In September IS1998, PDS sugar prices were increased from Rs.11.40 per kg to Rs. 12 per kg. The sugar price range in the country for last few years is given below the sugar prices move in close relation to production of sugar and the inventory in the country. Sugar prices are the lowest in India when compared to the leading sugar consuming countries in the world. Converted into India rupees the prices equivalent in Dept. of Mgmt. Studies, SAMS, Bangalore 51
  • 52. Sri Chamundeswari Sugar Limited ___________________________________________________________ Japan is of the order Rs.64.8 per kg USA Rs 31.5 per kg China Rs.25.78 per kg Indonesia Rs. 18.62 per kg Brazil and Pakistan Rs.17.9 per kg and Sri Lanka, Thailand and Malaysia Rs.17.81per kg Dept. of Mgmt. Studies, SAMS, Bangalore 52
  • 53. Sri Chamundeswari Sugar Limited ___________________________________________________________ CHAPTER 5 SWOT ANALYSIS STRENGTHS  It is located in a place where good infrastructure is available.  The company’s concentration towards the quality of the product.  The technological standard of the company.  Modern equipments.  High production efficiency.  Good sources of raw material.  Power generation.  Large supply of fertilizers and good quality seeds.  Experienced labor force. Dept. of Mgmt. Studies, SAMS, Bangalore 53
  • 54. Sri Chamundeswari Sugar Limited ___________________________________________________________ WEAKNESSESS  The company needs improvement and should concentrate on timely customer services.  Delay in payments.  Labors turnovers.  The promotion procedure in the organization is too rigid.  The company has to focus more on sales. Marketing.  No specific HRD department  No scheme offers are given. Dept. of Mgmt. Studies, SAMS, Bangalore 54
  • 55. Sri Chamundeswari Sugar Limited ___________________________________________________________ OPPORTUNITIES  Expansion of project like paper units, ethanol production, bio-fertilizers.  All these above projects will give the company maximum profits. THREATS  Stiff competition from other sugar industries.  Government intervention  Production of sugarcane depends upon the rainy season.  Substitute products.  Crisis between managements and employees. Dept. of Mgmt. Studies, SAMS, Bangalore 55
  • 56. Sri Chamundeswari Sugar Limited ___________________________________________________________ CHAPTER 6 FINDINGS AND SUGGESTIONS FINDINGS  The company is making good profits this year as compared to last three years and the company is expanding its business by increasing the installed capacity to 600 TCD. And by another two units at Ajara and Mohan nagar on leased basis.  During the study it was found that the company is making huge profit compared to previous years and equivalent amount of dividend is also declared to the shareholder of the company.  The computerization is not done fully.  75% of the products produced by Chamundeshwari Sugar Ltd are sold.  During the observation study we can found out that there are no safety precautions followed in the organization especially in the production department. Dept. of Mgmt. Studies, SAMS, Bangalore 56
  • 57. Sri Chamundeswari Sugar Limited ___________________________________________________________ SUGGESTIONS  It is suggested that company need to be computerized fully to do the work easily and economically.  It should adopt strong marketing strategy.  Safety measures like fire fighting, water facilities must be maintained. Dept. of Mgmt. Studies, SAMS, Bangalore 57
  • 58. Sri Chamundeswari Sugar Limited ___________________________________________________________ CONCLUSION Chamundeswari Sugar Limited,(Lessee of H.S.S.K Ltd.,) has stated of art equipment and Hilly competent technical team that produces one of the highest quality sugars. It is growing very fast in the industry. It is dynamic achievement of lady entrepreneur Mrs.Vidya.M.Murkaumbi. Chamundeswari Sugar Limited,(Lessee of H.S.S.K Ltd.,) is not only concentrating in production of quality of quality sugar, but also engaged in developing new seeds which will be more suitable to the climate. Irrigation planning by Chamundeswari Sugar Limited,(Lessee of H.S.S.K Ltd.,) is appreciable, It arranges loans from banks for pipeline facilities fanner’s fields. Lots of irrigation is being done under this scheme and repayment to banks in made from the bill of concerned farmer. Chamundeswari Sugar Limited,(Lessee of H.S.S.K Ltd.,) is agro based and monsoon season hilts the production. This is the reason when sugar factories will be closed because of inconvenience of harvesting and even transporting the cane factory Indian sugar industry is highly fragmented with organization and unorganized ;players. The unorganized players mainly produce gur and khandsri, the less refined form of sugar. The company is very active in trading portfolio and second last merchant exporter in FY 02-04 when the sugar was being exported. It is the largest raw sugar importer in the current fiscal year. The company’s trade flow in sugar is largest its own manufactured products.This leverages the company to understand to understand the market and to play an active part in both domestic and international markets. The company is the only one in the industry today with a formal risk managements system in place. As a significant step forward in dedging own sugar Dept. of Mgmt. Studies, SAMS, Bangalore 58
  • 59. Sri Chamundeswari Sugar Limited ___________________________________________________________ price risk as well as that of customers, the company because an active corporate member on NCDX dealing in sugar commodities to trade in spot market and in future. It has a strategic relationship with one of the largest overseas players Tate and Lyle plc, UK and continues its focus and plans to play an active role in global market. With an able management and robust vision, Chamundeswari Sugar Limited, (Lessee of H.S.S.K Ltd.,) today is one of the fastest growing manufactures in the country. Dept. of Mgmt. Studies, SAMS, Bangalore 59
  • 60. Sri Chamundeswari Sugar Limited ___________________________________________________________ LEARNING EXPERIENCE GAINED BY THE CANDIDATE DURING THE INPLANT TRAINING. My overall experience in the company was very pleasant. The response and support got from the management and staff was appreciable. I would like to mention the name of MR.NARAYAN sir and who guided me in this project and who helped me in the course of my in plant training. The atmosphere and working conditions were encouraging in the company. In plant training in the company helped me to know the practicalities. I learned about management from the practical perspective and I learnt about organization as to how it works in management aspects and the policies and procedures. Totally it was a highly useful training for me in the company. This has added value in my academic learning. To conclude this project has given me practical exposure in the study of organization. It was a dream come true for me who always wanted to work in the industries which is my area of interest and it was a great experience working where I learnt many things about the functioning of an organization in accordance with the present market trends. The main purpose of the organization study is to make the students acquainted with the practical knowledge about the overall functioning of the organization. It given me the opportunity to study the human behavior and also makes one ready to face different situations, which normally would come across while on work in the office or factory environment During the first week, it was totally a new experience entering into the organization. On the first day of the training, senior assistant (HRD) detailed us very clearly about the guidelines to be followed with respect to maintaining the discipline of the organization. After the initial session, they were taken to different departments and it was great interaction with the various departmental heads and i came to know the real situation, duties, responsibilities and functions of the departments. I visited the R & D department, i came to know about the various tests undertaken by them to achieve the desired level of quality. Dept. of Mgmt. Studies, SAMS, Bangalore 60
  • 61. Sri Chamundeswari Sugar Limited ___________________________________________________________ Each department has separate Manager, Deputy Manager, Purchase Officer, Assistant Officer and Supervisor. It was really a fruitful and great experience while working in the organization. Employees from every corner of the department helped me in getting the required information for the successful completion of this project. They cooperated well when we had to disturb them with so many queries in our mind to be cleared from the concerned person during the visits to the respective departments. The atmosphere was so friendly and we did not feel any difficulty during the whole training period of four weeks, which gave me a great deal information and knowledge as to how an organization really functions Dept. of Mgmt. Studies, SAMS, Bangalore 61
  • 62. Sri Chamundeswari Sugar Limited ___________________________________________________________ BIBLIOGRAPHY SL NO TITLE AUTHOR PUBLISHERS EDITION Marketing Prentice - Hall of 1 Management Philip Kotler India Pvt Ltd. 2005 Human Tata Mc Graw-hill Resource Publishing com. 2 Management K. Ashwathappa Ltd 2000 Research 3 Methodology C R Kothari Wishwa Prakashan 2nd edition Website • www.chamundeswarisugar.com • www.google.com Dept. of Mgmt. Studies, SAMS, Bangalore 62
  • 63. Sri Chamundeswari Sugar Limited ___________________________________________________________ ANNEXURE Balance sheet as on 2007-2008 Sl Expense Amount Sl Income Amount NO. NO. 1 Opening stock. 1 Byproduct sales. a. molasis. a) molasis 19979419.00 b. Sugar production 14951915.00 b) pressmud 164875.00 990000.00 15941915.70 c) Ash sales 26520.00 d) damaged bags 10000.00 20180814.00 2 Cane purchase a/c 143080357.00 2 Cane purchase 504739.00 3 Cane transportation 3866365.00 3 Closing stock. a. Molasis 16132252.50 b. cane production 956250.00 17088502.50 4 560580.00 4 Production cost 178010552.25 5 Cane purchase tax 7733514.00 6 1546702.00 7 Production cost 43055144.00 Total 215784607.75 Total 215784607.75 Dept. of Mgmt. Studies, SAMS, Bangalore 63