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1. Preface 1
2. Acknowledgment 2
3. Structure of Management 3
4. Growth of Sugar Industry in Pakistan 4
5. Group Profile 5
6. Board of Directors 6
7. Mission of NSML 7
8. Objectives 8
9. Introduction 9
10. Working Force 11
11. Products of the Company 12
12. Production 13
13. Departments at Site 16
14. Departments at Head Office 33
15. Banking Section 47
16. Data Administration 51
17. Organizational Incentives 55
18. Quality Management 57
19. Problems of Sugar Industry 59
20. Comments & Suggestions 60
PREFACE
This report describes the effort made by me for the learning by first hand practical
by quotation “Experience makes a man perfect.” No body can deny the importance
Through internship students get the first touch of professional exposure of the roles;
they have to play during their professional careers. The students not only
submitting all my experiences. No doubt, omissions and errors are expected but it is
NAJMA Sugar Mills Limited KARACHI. I learnt a lot about the practical business
and above all, the mental discipline and awareness, which are the most useful tools
HASEEB AKHLAQUE
KHAN
ACKNOWLEDGEMENT
First of all, I want to express all and thanks to ALMIGHTY ALLAH whose
blessings are above each and every thing which make me able to present my tiny
effort. All prays to HAZRAT MUHAMMAD (PBUH) who is the reason for
acknowledging with sincere gratitude for the valuable guidance I have received from
They have been a constant source of enthusiastic encouragement through out the
internship as well as this report. Their advice, criticism and remarks were of the
Furthermore all the other executives and staff members of NAJMA Sugar Mills
Limited, Head Office and Site deserve my thankfulness for their co-operation and
guidance during the course my internship at NAJMA Sugar Mills Limited. Finally I
role for development of any country’s economy. In Pakistan this industry play a
Its share in the large scale industry is 18% and in GDP is 1.9%.sugar industry
HISTORY
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.
At present Pakistan’s sugar industry is facing lot of problems like lesser demand of
sugar in the country due to recession in the economy, declining prices into the
Government role in R & D for developing the sugarcane varieties is not very
significance; only few private institutions are doing some research in R & D in
by further developing the 13224 hectares area along the main feeder canal from
Indus river in Sindh. By which we can increase our export to 50000 ton. ( this
export to Arab World can be exchange of half million barrels of crude oil for
Pakistan.
In Pakistan present sugar cane varieties are not yielding reasonable production and
GROUP PROFILE
ISLAM ABAD. The sponsors comprise of a family of good repute and their friends.
Site:
JUDHO,
HEAD OFFICE:
CLIFFTON KARACHI
HEAD OFFICE:
ISLAM ABAD
MANAGEMENT PROFILE
KHAN
Legal Advisors:
Mr. Muneeb Akhter Advocate
A.K.Brohi & co.
Banks Muslim Commercial Bank Limited
National Bank of Pakistan
Habib Bank of Pakistan
INCORPORATION
NAJMA Sugar Mills Limited was incorporated on May 26, 1991 as a public
limited company. The authorized capital of the share of the company was
in Feb., 9,1992. The previous sponsor of the company (the family of chief
minister of Sindh, JAM SADIQ ALI (late) could not manage to setup the project
The management of the project was transferred to the new sponsors in 1998.
The name of the company was changed to NAJMA SUGR MILLS Ltd. On
November 15,2000.
NATURE OF BUSINESS
NAJMA Sugar Mills Limited starts its first crushing season (trial) in 2002-2003.
LOCATION
Head Office of NAJMA Sugar Mills Limited is located at Sikander Munzil Park
FINANCIAL YEAR
The financial year of the company is from 1st October to 30th September.
RAW MATERIAL
The main raw material for the mill is sugarcane, which is abundantly available in
Pakistan.
The second raw material is Baggas. Some of which is obtained by the own crushing
MAIN COMPETITORS
AT SITE
Temporary Employees 30
Total 597
AT HEAD OFFICE
Permanent employees 25
Temporary Employees 5
Total 30
PRODUCTS OF THE COMPANY
SUGAR INDUSTRY IS AN AGRO-BASED INDUSTRY, WHICH PROVIDES
EMPLOYMENT TO THE LANDLESS RURAL POPULATION AND HASE A GREATE
IMPECT ON THE ECONOMY OF A COUNTRY.
The main product of the company is White Refined Sugar.
4. MUD
intermission standard and from the erased cane and three different components are
MOLASSES:
THIS IS A BY-PRODUCT AND IT IS SOLD TO MOLASSES CONTRACTORS. ONE OF
THE ALLIED CONCERN, RELIANCE COMMODITIES (PVT.) LIMITED IS THE MAIN
BUYER OF THE MOLASSES OF NAJMA SUGAR MILLS LIMITED AND ALSO THE
MAIN BUYER OF MOLASSES FROM WHOLE THE COUNTRY.RELIANCE
COMMODITIES (PVT) LIMITED IS THE MAIN EXPORTER OF MOLASSES IN
PAKISTAN. Molasses may be used for the production of power alcohol acid portable
spirits.
BAGGAS:
This is also a by-product of the company. Begass is used as source of energy fuel for
sugar industry for juice heating. and also used for making medium density fiber
MUD:
Mud is also the by-product of the company. It is sold to the Mud Contractors.
PRESS CAKE:
Press cake of sulphitation factories are used as manure and that of carbonation
(trial season)
Season start Date & Time 05-01-2003 At 6:25 P.M
AT SITE
1. MECHANICAL
2. ELECTRICAL
3. CHEMICAL
4. CANE
5. ACCOUNTS
6. COMPUTER
7. ADMINISTRATION
AT HEAD OFFICE
1. FINANCE
2. ACCOUNTS
3. ADMINISTRATION
4. PURCHASE
5. SALE
MECHANICAL DEPARTMENT
Mechanical department is the main department of any sugar mill. This department
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 effectively
Mechanical department has qualified engineers who are very professional about
their work. All the work is done under supervision of Chief Mechanical Engineer.
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 department, with
the help of this department; mechanical department has a better control on whole
plant & machinery. The main goal of this department is to supply electricity to
Electrical department has also qualified engineers who are very professional about
their work. All the work is done under supervision of Chief Electrical Engineer.
CHEMICAL DEPARTMENT
Chemical department is another main department of any sugar mill. This department
FUNCTIONS
The main function of this department is to test the quality of sugar, with the help of
this department sugarcane is crushed in to white refined sugar. The main goal of this
This department plays his role during whole the process because different types of
chemicals are mixed in sugarcane juice for making the juice in to liquid shape. This
Chemical department is working under very experienced person who has vast
knowledge about chemical. All the chemists are very experienced and professional.
CANE DEPARTMENT
Cane department is the major department of any sugar mill. This department is
FUNCTIONS
Cane department is working under General Manager Cane, 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 sugarcane. The main goal
Main input of NAJMA Sugar Mills Limited is the raw fresh sugarcane. To control
important role.
This department has purchased sugarcane from different villages of the country.
Cane field officers are surveying regularly and motivate growers. This department
small grower’s exit and yield different varieties of sugarcane that profitable to the
growers. Cane department also play very important role for granting a loan to the
growers in the shape of seed, fertilizer and machinery, which has to be returned in
arranges a survey of the growers of surrounding area of the mill for the availability
of sugarcane. They collect data about varieties, quality and quantity that would be
CANE ACCOUNTING
After receiving sugarcane from the grower, process of payment starts. Cane
accounts generate the payment that is sent to the banks for disbursement.
Cane accounts generate the following output from cane accounting package.
Grower Ledger
Cane Payment
Contractor Register
Loan Register
Daily Cane Purchase & Receipt Summery
Cane Accounts Department is working under Main Accounts Department. All the
printed data sent to Head Office on biweekly basis. Payment to grower is made
through bank after getting approval from Head Office, in case of emergency
ACCOUNTS DEPARTMENT
Accounts department is the department, which is recording all the business
transactions into books of accounts. With the help of this department, we should
know the actual position of the company about profit or loss. Accounts department
FUNCTIONS
The main function of this department is recording & classifying all transactions into
books of accounts, keeping whole record of the company about payments, receipts,
profits & losses. The main goal of this department is to work effectively &
efficiently within the accounting standards all the time. Main Accounts Department
Maintaining Records
Store Accounts
Cane Accounts
Stock Position
Stock Taking
CANE ACCOUNTING
Main Accounts Department also supervises the Cane Accounts. This department
STORE
Inventory means stocks of things and items, which are used with in the company for
producing goods, and finished goods offering for sales. Inventory can be divided
1. Raw Material
It is very important for store that it has to maintain sufficient stock of all the
related parts / goods to make the factory continue its production and functions of
other departments without any hurdle. This department receives the demand from
available in store, then Purchase Incharge makes the purchase indent for
required material/items.
purchase manager can purchase within this amount but if it exceed from
issue Purchase Order for required material / items, which contains Mode
9. Gate Inward sent to store, which contains complete report about Quantity
11.After issuance of Store Inspection Report then Store Incharge issue Goods
material/items.
12.When any item or material has to go out from store for any purpose then
All the above-mentioned documents have three copies. First copy hold down at
Store, Second copy is hand over to the seller and third copy sent to accounts
department.
Store’s issue material/items to various departments according to their demands and
then posted all transactions into accounts. At the end of each month store
Normally accounts department sends all record to head office on weekly basis, but
they are maintaining some record at mills, which is necessary for routine work and
Now a day’s computer plays very effective role in all fields of life. At present all
who is a very efficient person and have a vast experience about different software’s
and hardware.
There are two departments in which computer is being used in NAJMA Sugar Mills
1. Cane Department
2. Accounts Department
Main input of the NAJMA Sugar Mills Limited is the raw sugarcane. To control the
of sugar industry has brought about certain changes that demand application of
CANE APPLICATION
good sign for the company keeping the record of each grower and give
Before starts of the crushing season, cane department of NAJMA Sugar Mills
Limited arranges a survey of the growers of surrounding area of the mill for the
availability of sugarcane. They collect the data about varieties and quantity that
This data is posted in to the computer to accommodate each and every grower
Survey
Agreed Cane
Schedule Summery
Indent Printing
Work Order Printing
When sugarcane reaches the factory gate then cane yard management starts. Cane
Weighting of sugarcane
Printing of CPR’s
When sugarcane enters in the mill, first of all its weight is checked at weighbridge,
then this weight is posted into computer and gives a CPR to the grower.
CANE ACCOUNTING
The most important and the typical part of accounting is the cane accounting. Which
After receiving sugarcane from the grower’s process of payment starts. Cane
Accounting Package generates the payment that is sent to the banks for
disbursement.
Following are the main reports generated from Cane Accounting Software.
Grower Ledger
Cane Payment
Contractor Register
Loan Register
Cane Accounts Department is working under Main Accounts Department. All the
printed data sent to Head Office on biweekly basis. Payment to grower is made
through bank after getting approval from Head Office, in case of emergency
sometimes payment is to be made at Head Office, but during routine, payment made
ACCOUNTS DEPARTMENT
Accounts dept. at NAJMA SUGAR MILLS Ltd. Is working under the supervision
Accounting software is also used in Accounts Department. All the transactions are
posted into computer. The accounts System has capability of making different sorts
reports.
Taxation Reports
M.Rs
ADMIN DEPARTMENT
Admin department is the department, which is dealing matters about administration.
This department plays very important role for maintaining discipline in the mills.
Admin department is working under Admin Officer, who has much more experience
FUNCTIONS
The main function of this department is to handle all the administrative matters and
maintaining discipline. The main goal of this department is to provide easy working
shows; this department has to administrate all the operations of the organization.
Gate Office
Time Office
Labor Office
GATE OFFICE
This office has been made to keep the record of each and every thing coming into
For this purpose gate office clerk maintains two types of registers called;
When every thing including raw material, stores supplies, 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 material and any other remarks are
written. In the same way, O.G.P is prepared for out going things etc.
TIME OFFICE
This office keeps and maintains the time record of all the workers on time
cards and pay register for the final costing of the workers salaries.
It keeps the attendance records, which is than used to calculate the salary
It keeps the records of the over time, leaves, number of days worked of
all the workers and than calculate their over time on the basis of the basic
It keeps the records of Gratuity, Bonus, Pensions and other benefits including CPL
The main objectives of the security office is to safe handling of the goods from / to
the mill premises. For the achievement of such objective a team of security guards
has been employed by the company. All the keys relating to the mills office, labor
colony, (quarters) are lying into the responsibility of the security officer.
No out side visitor can come into the mills premises without the
Whenever any visitor wants to enter into the mill, security guards firstly
contact with the authority in the mill to grant the permission to enter into
Security guards can check each and every person before coming in or
They see and check the outward going pass of the certain things when
The organization also has purchased a human scanning security system, through
which the record of each employee and visitor is maintained. This system has
reduced the fair of any type of theft.
has been setup to deal with all the matters that are related with labor and other
any other hind of matter, which may arise from time to time between the labor
and the immediate supervisor, or with any other person in the organization.
payment of bonus, gratuity, and other benefits to labor and to keep their
keep his knowledge up to date regarding the rules and regulations of the labor
department.
making.
FINANCE DEPARTMENT
Finance department is the department, which provides funds to the company. This
department plays very important for fulfilling the need of fund. Finance department
Chartered Accountants of Pakistan and has vast experience about financial matters.
FUNCTIONS
The main function of this department is to get Cash Finance and Running Finance,
Financial Planning.
Fund Raising.
Evaluation.
Finance department analyzes the financial information and then presents them into
proper form, so that financial position of the company can be properly viewed.
All the functions are based upon Balance Sheet, Income Statement and other
Financial Statements.
ACCOUNTS DEPARTMENT
Accounts department is the department, which is recording all the business
transactions into books of accounts. With the help of this department, we should
know the actual position of the company about profit or loss. Accounts department
FUNCTIONS
The main function of this department is recording & classifying all transactions into
books of accounts, keeping whole record of site and head office. The main goal of
this department is to work effectively & efficiently within the accounting standards
Maintaining Records
Control of Funds
Cash management
Receipt of Cash
Tax Matters
Cash Flow
Arrangement of Heavy Funds
Analysis of Reports
We can say that this department acts as a nervous system. Every matter is first
brought in the knowledge of the head of this department, then he take appropriate
action according to the situation. The members of this department are every
experienced.
basis, the amount paid to the party is tax deducted. When the company will make
the payment to the party (supplier, contractor or commission agent) it will deducted
Tax deducted are payable to the Income Tax authorities. When the company makes
the payment of this tax, a Tax Challan is filled and prepared by the section and after
payment it is filed into the tax Challan file after debiting the tax payable. The sellers,
contractors and agents from this section then receive these challans for their official
uses.
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 amount is
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
B.Com + C.A-Articles.
FUNCTIONS
The main function of this department is to purchase Spare parts, Store Material,
Chemicals, P.P Bags etc. The main goal of this department is to purchase required
This department conducts all the purchases. There is also a Purchase Assistant in
this department to keep the records. Whenever any particular department requires
any part of material/goods, its head makes a demand of items to be required. This
demands contains the information like, items description, quality, quantity and
others. The departmental head signs the demand and sent to the purchase
department, then purchase department sent it to Chief Executive for final approval.
The Manager Purchase has the list of preferable 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 rate after obtaining verbal or written approval from
Purchased material sent to the mills premises through rented vehicle or the supplier
approval.
3. Purchase Department collects quotations from different sellers after
The Data Flow Diagram of the purchase system is on the next page.
User at site Request for item
Store at site
Yes No
Daily
if Purchase sec. At site
Special
If
Req< 50000 Req >50000
R
eq.
Not accepted
IF
Accepted
1 Order for items
1
Supply the items
Duplicate GRR
SALE DEPARTMENT
Sales department is the department, which deals the sale of sugar and other by-
mud. The main goal of this department is to sell the stock at best available market
price. To keep the record of sale of sugar and other by-products Computer Software
1. Sales Register.
2. Stock Reports.
3. Delivery Orders.
4. Invoices.
5. Sales Tax Detail.
6. Parties Position.
In NAJMA Sugar Mills Limited normally all the sale is done through agents. There
are three main parties of sale; all sales are done through these parties. Delivery
Orders are sent to site according to contract. Without delivery order go down
BANKING SECTION
The Company kept Current Accounts almost in every bank, but most business is
The company has also kept Loan Accounts in all above-mentioned banks. The
company has routed its most of the import business from Muslim Commercial Bank
Limited, most of the L/C’s are opened in Muslim Commercial Bank Limited.
The company is also availing Cash 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 market, because these bags are used against Cash
Finance Facility from banks. Cash Finance is the main source of the company when
The company has also availed Short Term & Long Term Finances from following
banks.
This section is the very important part of the Accounts Department. All the functions
that are related to the banks are done in this section. Key functions of the section are
as under:
Some banks of the company sends the statements of the accounts to the company on
daily basis and some sends at the end of every month or on the demand of the
company from time to time. This statement has all the records of transactions
between the company and the bank during that specific period.
Accounts department reconciles the bank statements with accounts, some time due
to some reasons; transactions do not equally matched with the company’s records.
1. Cheques issued by the company to any party but not still presented to the
3. Any amount debited or credited by the bank but not treated in the
company’s accounts.
All these missing items are required to be settled in the company’s accounts.
Banks sends debit and credit advices to the company according to the transactions.
These advices are the reflection of the transactions between the company and the
bank.
When any amount is deducted from the company account due to any reason like:
For these amounts, the bank made the Debit Advice, means that certain amount has
been deducted from the company’s account, and sends it to the company. Moreover,
when the bank adds any amount in the company’s account due to some reason like:
3. Depositing of any amount in the bank from any party in the company’s
deposits.
For these, the bank sends the Credit Advice to the company, means that the certain
amount has been added to the company’s account and sends advice to the company.
The company add this amount to the banks ledger. Accounts department debit these
amounts to the banks ledger through B.D.N Voucher (Bank Debit, Credit Note),
Auditor and at the end this voucher sends to Chief Executive for final signature.
DATA ADMINISTRATION
Business environments are becoming more and more complex with the passage of
time. The cope with changing environment and modern technology, a lot of energy
& knowledge is needed. Media and information technology are of utmost important
and discoveries in the computer technology have been made in the past few
decades.
SOFTWARE SPECIFICATION:
NSML got their system development in FoxPro Language from ICS (Pvt.) Ltd. They
• Accounts system
• Sales System
• Purchase System
• Store System
HARDWARE SPECIFICATION:
AT SITE:
ACCOUNTS DEPARTMENT:
3. Printer LQ-2170
SALE DEPARTMENT:
Printer LQ-2170
PURCHASE DEPARTMENT:
4. Printer LQ-2180
AT HEAD OFFICE:
In NSML, they are using network computer system. Their terminals are network
All the terminals are the intelligent terminals and the main server is installed in the
PRESENTATION OF REPORTS
No one system can said computer until it generals certain reports. So the system of
NSML is also generating a broad no. of reports. Following are some important
Sub ledgers
Edit lists
Due balances
Day Book
Trail Balance
Cash Book
Monthly Balances
Outstanding Cheques
Trail Balance
DATA SECURITY:
The issue of data security is crucial in the era of centralized database. We use the
term “data security” to mean protection of the data in the database against the
perfect security is unattainable, the objective of data security is to minimize the risk
Backup
Watchman
Stabilizer
We have already described that NSML is being running their computer network
under the environment of VM.s / CMs Operating Systems. Their Operating Systems
provides them he facility to set different level passwords. Each level may be
allocated different rights that are pre-specified. They are using four levels of data
securing and only the authorized person can access the system up to the extent they
This is highest level of security. It has all the possible rights. It has access to change
the different operating system protocols. It can change the different passwords. It
can modify the level of rights given to different users. In NSML, M. FIAZ, the head
This level of somewhat different, with reference to other levels. The manufacturer of
operating system uses this level. Whenever, there is any problem in system,
manufacturing personnel are called. The personnel of manufacturing firm come there
and input their password and work there to save the problem without disturbing the
This is the top most level in operational work. Manager MIS Dept also holds this
level. Under this level, the manager can perform any kind of activity regarding the
This is also called the K.P.O level. At this level user of the system have the
minimum rights. Their main work is to input the data and to generate different
reports. They have also rights to enter in their own files. But others files are
inaccessible.
ORGANIZATIONAL INCENTIVES
NSML has a well-formed human resource department (HRD), due to which a lot
had been done and is being done to make the moral of the workers of the
Organization high & high.
This is the name of the fund given to workers when company earns profit. It is 5%
of the total profits earned during an accounting year. Every workers / Employee
whose not pay is up to Rs. 3000/= is eligible for getting this fund.
BONUS POLICY:
The company maintains a bonus policy for its workers to initiate the motive to work
this policy, company shall give sum equivalent 60% basic salaries of worker at the
The company deducts a nominal amount in the account of social security from the
salaries of the workers on monthly basis. This deducted amount is submitted to the
social security and they allot a social security number with an identification card,
which shows that the worker had got the facility of social security. Major advantage
provided through social security number is the free health care including medical
income in the old age / post retirement age so that workers have a thought of relief
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 future use when
HOUSING FACILITIES:
The workers have provided with the residential facilities and small quarters are
provided to the workers. These quarters are often visited by the resident director for
the checking of cleanliness and other important matters if raised by any situation
COMPANY CANTEEN:
Company has given the provision of a canteen / café-teria for its workers and
employees. The quality of the food available in the factory canteen is under the
According to the scheme, company gives lunch to all its workers / employees once
in every month.
It also gives two times tea and lunch free to the executive level.
PROBLEMS OF SUGAR INDUSTRY
sector.
Instability of exchange rate also creates problems for exports and imports.
STRENGTH:
WEAKNESSES
Lack of research and development.
The area of the sight is reasonably at low height from the surroundings so the
rainy season can create difficulty during the season.
The water of the sight is not good and there is no proper arrangement for this.
Tranportation to the site is not available easily.
Opportunities:
THREATS:
De-zoning policy has created great competition between the organizations.
Due to great competitions the availability of the raw material is the problem.
After a short careful analysis, I come to know that the financial position of the
company is very strong than the other sugar mills in sugar industry.
promote and introduce its output in local & international market. There is a
boost up sales.
NAJMA Sugar Mills Limited should advise its field supervisors to be more
active in field, coordinate with growers and try to understand problems of the
growers.
department.
NAJMA Sugar Mills Limited should introduce the new brands of sugar
NAJMA Sugar Mills Limited should conduct market surveys and research to
know the customer’s views and suggestions.
Sale Department should be engaged only in sales activities and perform only
following activities.
4. Sale of Mud.
follows:
No room is available for external auditors in whole group, at least two rooms
The H/O should be connected through Internet with the site. Due to which