Krishna Ok of BSSK LTD 143

PRDUCTION BUDGETORY ANALYSIS ON BSSK LTD BIDAR
INTRODUCTION
Every organization is compassed of many departments and studying about the

roles responsibilities and functions of those departments in one of the most crucial jobs
each departments in an organization are inter related and inter dependent with each other
and if a single departments fails in achieving its objectives the whole cycle gets
collapsed.
Co-ordination, co-operation, mutual understanding, good inter personal

communication etc are most among the department heads and sub ordinizational goals
and lead the organization to progress.
Consumer decision making is an activity carried out by the customer while

arriving to that decision to buy or not to buy a particular product the outcome of the
activity is applied by both internal and external variables market has understood is a set a
potential buyers of customers denotes that companies marketing mix source had input in
the mental process of taking decision or services.
In support of the meaning selling is not an end itself but it is the beginning of
sales to the performance other sales. Services are the factors that are evaluated by the
customer after buying the product or using the service with its background is necessary to
find out past purchase performance to find carried out
The study was to testify customer satisfaction towards company which has
adopted age technology for its product of Sugar and competitive strategy for distribution
domestic places that enjoy very supportive environment for the product can give the very
tough competition
DEPARTMENT OF MBA -2017-18 1

CHAPTER-I
INTRODUCTION

CHAPTER-1
INDUSTORY PROFILE
1.1 Introduction to the study

The sugar industry is basically an agro based industry playing an important role in
achieving socio- economic development of the rural community in particular and of the
region in general. It not only occupies a prominent role in the economy of the rural but
at the same time it contributes to the economic development of the nation. Sugar
industry holds second rank next to cotton textiles in the country and it shows its
importance.
It generates employment nearly to 5 lakhs of people directly and indirectly.
India produces white crystal sugar, khandasari and jaggery. There are about 450 sugar
industries working in the country. Among them 120 are in private sector, 235 in co-
operative sector and 95 are in public sector respectively. In Karnataka state there are
about 40 sugar industries are existing and out of 40, 20 are in private setor,18 are in
cooperative sector and remaining 2 are in public sector. The sugar industries are
located in rural areas and have an intrinsic symbiotic relationship with rural mass.
Some sugar industries are having its own co-gen units which are supplying their surplus
power to state grids or to private parties.
Pre-1995 Era
Until 1995, the industry was totally regulated and to certain extend protected. Sugar
was a scheduled industry and for which there had to be an exclusive demarcation of
select geographical area for the proposed sugar mill. The commodity was select to dual
pricing with obligation imposed on the mills to supply a percentage of output of
government at a fixed price A review of the industry’s growth since 1950 reveals that no
withstanding the control and regulation, the industry did grow substantially while the
number of factories rise from 139 in 1950 -51 to 423 in 2000-01.sugar production
swelled from 1.1 million tons during the same period. The government laid down targets
for small production, consumption installed capacity during each of the few year planes
and ensured the growth the industry to meet steady in consumption. Imports of sugar

were not generally permitted. And when imports were necessary, the government was the
sole importer and availability of foreign exchange was a constraint. Experts were
canalized and were affected in year of surplus stocks.
Post 1995 scenario
Even while retaining partial control. The government has been initiating since 1995 a
number of measures as part of the process of liberalization to unleash the potential of
the industry. Some of the significant initiatives are.
The molasses control order, under which the price movement and distribution of
molasses were all controlled, was rescinded, enabling the industry to realize the full value
of molasses and setup molasses based downstream industries. The export promotion act
as repealed and export PF sugar was decimalized, enabling mills to undertake export on
their own and complete directly in the international market. Likewise, imports to sugar
were placed under open general license linking India to global market.
Type of sectors In India In Karnataka
Co-operative sector 235 18
Private sector 120 31
Public sector 95 02
TOTAL 450 51
Location Details:
The Bidar Sahakar Sakkare Karkhane Ltd.Hallikhed (S.F.) Tq-Humnabad,

Dist-Bidar. Nearest district Bidar 30 km, nearest airport-Hyderabad 170 km.

1.2 THEORETICAL BACKGROUND OF THE STUDY
Budget is a planned statement which shows the income & expenditure of

organization budget is declared in yearly once in time in very company.
The budget of estimated income & Expenditure for a future work programmer is
prepared and approved prior to commencement of the work so that the financial policies
adopted to achieve certain objectives may be implemented.
A production budget incorporates the estimates of the total volume of production

with the scheduling of operation by days, weeks & months.
Budget is a statement showing the planned income & expenditure for a future
period in term of money or quantity or both. Budget acts as a business barometer as it
is a complete programmer of activities of the business for the period covered. A budget
is a detailed plan of operation for some specific future period. It is an estimate prepared
in advance of the period to which it applies.
Budget is a record plan of action. It is a statement of anticipated results either in

financial term or even in non – financial thus budget is one of the control devices used
by modern management.

1.6 Facilities Available:
Facilities for Employees:
 Bonus is 8.33 Percent based on the worker’s salary.

 Quarters, hospital etc. facilities and allowances are given.
 Canteen facility is made available to the employees.
 Promotion facilities available.
 Permanent workers get one increment every year.
 Factory provides 2 pair of uniforms and 1 pair of shoes ever year
to the workers.
 School facilities and bus facilities are provided to the factory
employees children’s.
 Compensations and medical facilities are available if any
accident occurs.

CHATER-2
COMPANY PROFILE

CHATER-2
COMPANY PROFILE
2.1 profile of the organization
India is one of the largest producers of sugar in the world. It has large number of sugar
manufacturers located throughout the country.
BSSK LTD. Hallikhed:
The Bidar co-operative sugar factory Hallikhed (s.f.) was established in the year 1961-62
under dynamic leadership of Mr. Gurupadappa M. Kheny. The factory started on the
basis of co-operative society system. Estimated cost of project was 3 corers and this
occupies the area around 168 acres and its crushing capacity was 1250 TCD in 1969, in
the year 1991-92 it was increased to 2000 TCD. Now it is 3500TCD.This factory is
located near KARANJA River and it is 30 km away from the Bidar and just 4 km away
from the Hallikhed.
Bidar is centre place for transportation because NH-9 passes here and it also connects
various talukas and districts. The company has more than 1000 employees including
administration and technical experts. Human resources being the most important asset of
the factory, all the efforts are made to enhance the motivational level and efficiency of
the employees.

Background and Inception of the BSSK Ltd., Hallikhed (s.f.)
THE BIDAR SAHAKAR SAKKARE

NAME OF THE FACTORY KARKHANE LTD.HALLIKHED (S.F.)
YEAR OF ESTABLISHEMENT 1961-62
1 CRUSHING SEASON 1969-70
LOCATION OF THE UNIT JUST 4 KMS. AWAY FROM

HALLIKHED, Dt: Bidar
REGISTRATION NUMBER 1961
REGISTRATION DATE 1903 / R.C.N./ 1961
ADDRESS FOR CORRESPONDENCE The Bidar sahakar sakkare karkhane Ltd.

Hallikhed (s. f.)
Phone: 08483- 274427

2.2 BOARD OF DIRECTORS
Hanmanthap MD
Mr. Ashok Amruthrao M Patil Director
Mr. Sanjay.Guru basappa khenny Chairman
Mr. Wajeeduddin Nizamuddin patel Vice Chairman
Mr. Aniyappa
Mr. kiran shankriyappa Chanda Directors
Mr. Bakkappa Shankriappa bhose Reddy Directors
Mr. Rachappa Saad Directors
Mr. Laximan Ishwarappa Bullea Directors
Mrs .Eramma Shankarrao patel Directors
Mrs. Kamlabai Nitture Directors
Mr. Parmeshwar kishan rao patel Directors
Mr. Rajshekar Baswaraj Patel Directors
Mr. Dattatreya Vishwanath. Director
Mr. Bheemrao Basvaraj Patel Director
Mr. Sangmesh Kashinath rao Patel Director
Mrs.Arllee Suriyakanth Director

Management team
Mr. Sanjay Gurubasappa khenny Chairman
Mr. Wajeeduddin Nizamuddin Patel Vice Chairman
Mr. Arllee Suriyakanth J R C S MD
Mr. G. Papanna GM
Mr.Sanju Patel Chief Chemist
Mr. Shivashankar Patil Cane Development officer
Mr. Hanmanthappa Account Officer
Mr. Subash hunjee Personal Manager
Mr. Madeppa Purchase Assistant
Internal Auditor
Mr. K.K. Attal CA, Bidar
External Auditor
Mr. S. Rangaswamy, CA
2.3 Business Operations
Sugar Production:
The plant is capable of crushing about 3,500 tons per day and would be producing
export quality crystal white sugar the latest techniques in the country. The factory has got
one of the most advanced technologies n India. Robust and reliable equipment of latest
design, high
Efficiency and low power consumption have been installed for continuous operation all
around the year. Due to abundant cane available in the area of operation, a minimum

duration for the season is of 6 to 7 months which is assured i.e. to say about 67,659
thousands tones of sugarcane was crushed during the last season to produce around
59,430 thousands of quintal of the company right from the beginning would be 120
corers.
Power Generation:
The company has undertaken to establish a mega project to generate power using
non conventional energy fuel i.e. bagasse which is a byproduct coming out of sugarcane
and available in plenty at the location employing very high pressure (67ata) and high
efficiency boiler and turbo generator sets. About
4.5 MW power is generated during the season and will be used for captive
consumption.
By- Products;
The company has ambitious plans to utilize various by-products in a systematic

way as follows,
Biogases
a. Power Generation
b. Paper production
c. Particle Board
d. Cattle Feed & Furniture
Molasses:
a. Butanol
b. Yeast
c. Industrial Alcohol
d. High Protein Molasses

Filter cake:
a. Manure
b. Refined Wax
2.4 Product Profile:
Sugar is a sweet, white or brown, usually crystalline substance obtained

chiefly from sugar cane or sugar beets and used commonly in food products.
Sugar means something sweet in from of taste.
Formula: 12CO2 + 11H2O = C12H22O11 +12O2
Carbon dioxide+ water = sucrose+ oxygen
In chemistry sugar refers to any of the class of carbohydrates to which this

substance belongs Glucose, lactose, and maltose are sugar most plants
manufacture sugar is solute in water, sweet to the taste and either directly or
indirectly for mutable. The chemist knows as “sucrose” one of the family of
sugars otherwise known as saccharine as the name implies, contain carbon and
hydrogen plus oxygen in the same ratio as in water.
Sugar is controlled commodity in India under the essential commodities

Act, 1955. The government controls sugar capacity additions through industrial
licensing determines the price. The major input sugar cane, decides the quantity
that can be sold in the open market, fixes the prices of the levy quarter sugar and
determines maximum stock levels for wholesalers etc.
Sugar
 L 30 [large size]
 M 30 [medium size]
 S1 30 [small size]
 S2 30 [very small size

Harvesting and processing;
Harvesting and processing season may vary from country to country and area to area
and factory to factory depending on the convenience. Usually the harvest starts in
July/August and continues to April/May. Some factories have the continuous supply of
cane throughout the year, and they process throughout the year without idling the factory
Handling and transport of cane:
The bulk of the world’s sugar cane is harvested and loaded by hand and transported by
trucks, Lorries, tractors, and bullock carts from growing place to factories. Some factories
have railway track for the purpose of transporting sugar cane and sugar.
Utilization of sugar:
Sugar is necessary product, which provides carbohydrates to human body, which is the
source of energy for doing work. Sugar is contained in sugar cane, fruits and other food
The following are the main utilities of sugar:
 In our houses and hotels the sugar is commonly used for preparing
coffee, tea, badam milk etc.
 The different manufacturers of chocolate, ice cream and soft drinks

often use sugar for preparing their products.
 Distilleries and beverages, alcohol producers will also use sugar in

different forms.
By – Productions of Sugarcane:
The sugar mill produces many by-products along with sugar. A typical sugarcane
complex of 30000 ted capacity can produce 345 ton of sugar, 6000 litters’ alcohol, 3 ton
of yeast, 15 ton of potash fertilizer, 25 ton of pulp, 15 ton of wax, 150 ton of press-mud
fertilizer and 750KM of power from bagasse.

Molasses:
Molasses is the final effluent obtained in the preparation of sugar by repeated

crystallization. It is the end product from a refining process carried out yield sugar.
Sucrose and invert sugar constitution a major portion (40 to 60percent) of molasses. The
yield of molasses per ton of sugarcane varies in the range of 3.5 to 4.5 percent. Molasses
is mainly used for the manufacture of ethyl alcohol (ethanol), yeast and cattle feed.
Ethanol is in turn used to produce portable Liquor and downstream value added chemical
such as acetone, acetic acid, butanol, acetic anhydride, MEG, etc. Some of the alcohol
based chemicals like MEG, acetic acid, and acetone etc., face stiff competition from
production through the petrochemical route. In tandem with a glut in sugarcane in1995-
96, the country witnessed surplus production of molasses. The government controls the
export of molasses through export licenses issued for every quarter. Molasses and alcohol
based industries were decontrolled in 1993 and are being controlled by respective state
government policy Neatly 70per of molasses produced are consumed by the industrial
alcohol manufactures and the remaining 30% if consumed by the portable alcohol sector.
The molasses prices that used to around Rs 200 per ton during early nineties shot up to
Rs 1400 per ton as a result of decontrol of the industry in 1993, but with the reduction of
import duties in 1995 and bumper crop in 1996, the prices come down to Rs 4-00 level.
The increase in excise duty for molasses from 20% ad valorem (approximately Rs 120 to
ton) to specific rate of Rs 500 per ton in 1997 budget lead to sharp increase in molasses
price. With over 450 sugar factories located throughout the country, the sugar industry is
amongst the largest agro processing industries, with and 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 farmers, their dependants and a large
mass of agricultural labour are involved in sugarcane cultivation. The sugar industry
employs over 0.5mn skilled and unskilled workmen, mostly from the rural 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 1970’s under this policy, the government procures
40per of production at
Controlled prices based on the statutory minimum price for sugar cane, for supply
through the public distribution system and the balance 60per is allowed to be sold by the
mills in free market subject to the monthly release of 70per in 1968-69 to the present
levels of 40per as a gradual process of deregulation of sugar industry.
The number of operating sugar mills in the country has increased from 29 in sugar year
(SY) 1930-31 to 412 by SY 1996-97 (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. The
development of industry in the parts is as given in table below. The average capacity of
the sugar mills in the industry has considerably moved up from just 644 ton per day in
SY 1930-31 to 2656 ton per day. But still the production of sugar in India is inching.
Industry was driven by horizontal growth (increase in number of unite) compared to the
vertical growth witnessed in other countries (increase in average capacity) Refer table (1)
Bagasses;
Bagasses is & fibrous residue of cane stalk that is obtained after crushing and extraction
of juice. It composition of bagasses varies based on the variety of sugarcane, maturity of
cane, method of harvesting and the efficiency of the sugar mill. The usual bagasses
Bagasses are usually as a combustible in the furnaces to produce steam, which in turn
used to generate power. It is also used as raw materials for production of paper and as
feedstock for cattle.
Area of operation:
Its area of operation is extended up to 30 kms. of radius from the factory

site.
 BIDAR

 HUMNANABAD
 BASAVAKALYAN
 BHALKI
 CHITGUPPA
 GULBARGA
 HALLIKHED
Including small hamlets of Bidar district as well as Gulbarga district. Statement of
the Problem:
Fast global and technological developments have made today’s business environment
highly uncertain. Changes are occurring today in the environment of management that is
required to play on ever more crucial role in the organization. The first and most
important factor, which focuses this study, is the need of student to about the practical
aspects of the functions of an organization. This study will help the individual when
he/she finishes the course and goes for a job. No doubt that the necessary training will
be imparted at work place but having a brief knowledge before entering the organization
will certainly help the individual in learning about the organization for which he/she is
working.This research is done to study the organization structure of BSSK .ltd, BIDAR.
Analyzing the effectiveness of the various departments in the organization.
Share Section:
The share section is one of the important sections because more than half of the
total authorized capital is collected from shareholders. According to law, the factories
authorized share capital is Rs. 20crores. At present the numbers of shareholders are
15641 and capital collected from all the shareholders is Rs. 882.64 lakhs.
Factory issues mainly 5 types of shares
1. A class----Producer members
2. B class----Government
3. C class----Non growers of ordinary members
4. D class----Cooperative societies

5. E class----Nominal members
Share Value:
The face value of the each share ---250 rupees
Share admission fee ----10 rupees
Share fee ----5 rupees
Total share value ----265 rupees
Eligibility to Become me Shareholders of the Factory:
 He should be more than 18 years of age and is competent enough to get

into contract.
 He should hold land and is a producer of sugarcane of not less than half
acre of it and contract to sell to society sugarcane of the required standard.
 His written application for membership and contract for supply of
sugarcane is approved by the board of directors.
 He must have paid an entrance fee of Rs. 5 and share fee of Rs. 1 per share
and has paid the amount of share and shares allotted to him.
 He enters into an agreement with the society to carry out the plans,
programmes and methods of cultivation under the direction of the board of
directors or a person authorized in that behalf.
Cancellation of Shares:
 On death
 Explosion from the society under by law no. 10
 On the transfer of share standing in his name
 On registration oh his membership under by law no. 9
 A sum of Rs. 250 shall be payable on application. The balance shall be on
calls in installments fixed by the BOD.

Purchase Department:
Purchase officer
Clerks
Attainders
Here this section will get requisition from different departments of company.
According to the requirements of the company it arranges to purchase materials
and supplies to each and every department required material in time.
Steps Involved in Purchasing of Materials:
 Raising Requisition: It is first step and necessary for only the user
of the material can use particular.
 Scrutinizing Requisition: The manager scrutinizes the demands of
materials. He examines whether the items mentioned in the requisition
note is necessary or not.
 Vendor Selection: After scrutinizing, if a material is necessary then
tender advertisement is given or if they have permanent vendors the
manager chooses the powerful vendor. The BOD do the selection of
vendors.
 Enquiry: After selecting the vendor enquiry is send to the vendor.
 Receiving Quotation: The purchase manager receives the
quotation from vendors to whom the enquires were sent. Through
these quotations a right vendor is chosen.
 Sending Purchase Order: Lastly the purchase order is placed to the
selected vendor. In this way purchase of materials takes place.

Vision, Mission and Policy
Vision:
The setting up of the sugar factory in Hallikhed that would enable to create employment
opportunity in rural areas to the unemployed specially the weak and backward section of
the community not in the sugar unit in Hallikhed but also in the ancillary units enabling
them to increase their purchasing power and consequent leading to higher living
standards.
Mission:
 Production of white crystal sugar to meet the increased demand for

domestic consumption
 Co- generation of 4.5 MW power for its own use.
Quality policy:
 Providing good quality seed material and other input

 Providing training in sugarcane cultivation etc.

Competitors:
a) The Mahatma Gandhi Sahakar Sakkare Karkhane Ltd., Bhalki
Performance of sugar factory:

Season 2015-16 2014-15
Crushing capacity 2500 2500
Cane crushed 1.85 0.67
Sugar produced 1.70 0.45
Sugar recovery 9.41 9.38
Molasses produced 1.81 0.43

b) The Naranja Sahakara Sakkare Karkhane Niyamit, Imampur Tq & Dt-Bidar
Performance of sugar factory:
Season 2015-16 2014-15
Crushing capacity 2500 2500
Cane crushed 4.07 1.09
Sugar produced 4.35 1.32
Sugar recovery 10.65 11.05
Molasses produced 4.05 0.45
Organization structure:
Organization structure is a basic framework with in which the decision making
behavior of an executive takes place. It is an established pattern of relationship among the
components of the organization. BSSK Sugars Ltd is headed by the chairman &M.D.
And can advisor will take place. This crew guides the G.M. who is assisted by and the
departmental managers and heads

2.5Financial Statements for five years
ASSETS 2013 2014 2015 2016 2017

Cash balance 949212.72 1478205.77 1000839.38 431713.34 1031072.19
Bank balance 1521711.93 458534.39 4174270.14 1687298.23 4006448.50
Investment 457024.00 498895.00 615961.00 1984502.00 4559973.00
Share investment 9069100.00 9069100.00 9069100.00 9069100.00 9069100.00
Current assets 465439527.24 379800452.18 584183124.89 533237534.85 639752705.94
Loan & advances -- -- -- -- --
1) Advances to 38154048.37 77826192.40 34769251.76 35773330.56 3743974.51
suppliers
2) advances to 2368630.86 2758082.03 1291638.30 1225270.19 1156991.65
cane suppliers
3) Advances to 16870905.73 27715568.73 26478772.83 31848059.28 37044688.09
contractors
4) Advances to 14605286.53 15629966.46 15233330.02 10204322.70 9483591.57
staff
5) Deposit current 1237203.54 1658479.08 918906.00 1975037.00 4267113.12
6) Others 1957837.36 5487442.09 1976949.70 2309759.89 1925016.54
Fixed assts (AT -- -- -- -- --
COST)
1) land 215594.13 215594.13 215594.13 215594.13 215594.13
2) Building 18461808.29 18461808.29 18462331.73 18462331.73 18462331.73
3) Plant & 257716052.92 257716052.92 257716052.92 257716052.92 260598732.92
Machinery
Other assets 4895354.88 13511528.17 12011886.80 12042844.87 12107201.29
Road sanitary and 12248003.06 12248003.06 12467009.06 12468684.06 12468684.06
other works
Expansion 1454573.70 1309116.33 1178204.70 1060384.23 954345.84
expenses
Misappropriation 64650.07 64650.07 64650.07 64650.07 64650.07
Audit objection 141467.65 141467.65 141467.65 141467.65 141467.65
Profit & Loss A/c 479767747.56 547864566.49 605545526.51 617667703.96 689001896.92
Net Loss 60333329.81 68096818.93 57780960.02 12022177.45 71334192.96
TOTAL 1327605740.54 1373913705.24 1587614867.59 1549585641.66 1743746579.74
Liabilities 2013 2014 2015 2016 2017

Paid up share 86904270.00 86904570.00 93231120.00 93235420.00 93239235.00

capital
Share suspense 1248290.00 4825001.00 275524.00 2868089.00 64752752.00
Reserve and 278320765.03 280847960.93 282336340.56 284900408.08 287108675.37
surplus
Bank DF 18491948.08 12588541.57 9275838.61 38607340.87 39053950.48
Balance
Served loans 569574049.61 369100647.86 633261175.30 765560642.00 712622658.64
Fund deposited 4524952.81 4524952.81 4524952.81 4524952.81 4524952.81
for marked
Current -- -- -- -- --
liabilities
1) Due to 665699.65 437626.47 482062.40 837364.79 1452992.41
suppliers
2) Due to 4718928.24 3703717.43 4617042.28 4484905.25 13733271.12
customers
3) Due to 74399164.31 232685844.51 196708957.52 1720624.25 216815880.87
Contractors
4) Pay 6706575.35 10847034.76 3976340.99 739768.69 2747080.79
deduction
5) Others 66997517.43 66657309.17 69447231.83 40394638.57 39229178.68
Provisions 214916787.13 300653705.83 289341438.39 311574694.45 326606638.67
Audit 136792.90 136792.90 136792.90 136792.90 136792.90
Objection
TOTAL 1327605740.54 1373913705.24 1587614867.59 1549585641.66 1743746579.74
2.6 Future Prosecgs/ Growth:
a. Expansion of company’s business

b. Distillery and Ethanol project

A. Expansion of Company’s Business:
B.S.S.K. Ltd. directors are pleased to inform that the company has been permitted
for the enhancement in cane crushing capacity from 3500 to 4500 T.C.D. from the
government of Karnataka in its global investors meeting held during July 2003. The
company has taken for increasing the production capacity during the season 2001-2002
and achieved the sizable production despite initial troubles in installing modern sugar
cum co-generation plant. Further over company has undertaken expansion scheme to
overcome operation problems in the form of constructing an additional Godown, capacity
up gradation of boilers, additional molasses tanks, additional staff quarters and such
allied facilities.
B. Distillery or Ethanol Project:
B.S.S.K. Ltd. board of directors has received a letter of intent from Government of
Karnataka to take up distillery unit. Further discussion and approval given in the 7th
annual general meeting to establish a distillery or ethanol project, the name of the
company got The B.S.S.K. Ltd. And implementation of distillery project commenced by
appointing M/r Vasantdada Sugar Institute, Pune, as a consultant for the said project.
However this decision had to be dropped as no financial institution or bankers have come
forward for financing the project, due to loss incurred by the company during 2002-03
and depressing sugar scenario.
Growth of an Organization:
On 1 July 1990, the government of India issued new guidelines for licensing new
sugar factories and for the expansion of the existing sugar factories. Under this guidance
the licensing policy has been ma de very liberal so as to boost the sugar production.
India is the original home of sugarcane and has a flourishing sugar industry in
ancient time. But the modern sugar manufacturing industries were established in the
Bihar. But the real development of the industry took place only after 1932 when
protection was given to this industry against foreign competition within a short

CHATER-3
INDUSTRY ROFILE

CHATER-3
INDUSTRY ROFILE
A Brief History of Sugar:
Sugar as a commodity in its own right can be traced back several thousand
years in China and India. A definite reference dates to 510 B.C. when soldiers of
the Persian Emperor Darius saw sugar cane growing on the banks of the River
Indus. They called it the reeds which produce honey without bees.
Much later it was grown in Persia and the Arabs took it to Egypt. The word
sugar is itself derived from an Arabic word.
Sugar cane, to which all the earliest references refer, is a member of the
grass family. It can grow up to 15 feet tall, with leaves at the top and a hollow
stalk filled with a sweet juice or sap from which sugar can be extracted. A
perennial tropical plant, it grows best in very warm climates. It is ready for
harvesting after 10 to 20 months.
Alexander the Great (356-232 B.C.) introduced sugar to the Mediterranean

countries, from whence it spread down the east coast of Africa.
India has been known as the original home of sugerscne.The growth of the
sugar industry is full of tales of adventure and conquest.
Sugar is produced in 121 countries and global production now exceeds 120
million tons in a year. Approximately 70% is produced from sugarcane a very
grass with big steem.The remaining 30% produced from beet.

FUNCTIONAL DEPARTMENT
Basis of Departmentalization:
Departmentalization may be on the basis of function, products, regions, customers,

process, time, number and marketing channel. Functional basis is very popular method of
departmentalization. It refers to grouping of activities of the organization in to the major
functional departments like, production, purchase, finance, marketing, HR, etc.
In BSSK Sugars Ltd, departmentalization is on the basis of function. The major
functional departments of BSSK Sugars Ltd are as follows:
a. Administrative department
b. Production department
c. Purchases department
d. Stores department
e. Personal department
f. Finance department
g. Cane department
h. Sales department

Production Process:
Sugar production process flow diagram:
Cane weighing
Can unloading
Can preparation
Milling
Raw juice weighing
Suspiration carotid with

SO2 gas and lime
Sedimentation
Filtration
Evaporation
Syrup Sulphitation
Crystallization

Cane weight: In this they measure sugar cane including vehicles.

Unloading the cane, they measure vehicle weight and deduct that weight from the
total weight. Thus they get the actual weight of the cane.
Cane carrier: unloaded cane is put down in the carrier and the motor drives
carrier. It is connected to cane cutter.
Cane cutter: Cane cutter of two types,
 First cutter----- here canes are cut into 12 to 20 inches.

 Second cutter--- here canes are cut into 3 to 5 inches.
After cane cutting canes are forwarded in fib riser. The furbished canes are taken into
mill section.
Mill section: In this section, the canes are squeezed. Whatever the quantity of juice
squeezed in the mill is pumped into the clarification house. At this time they get
the byproduct called biogases.
Clarification: The juice, which is taken from Mill section, is heated by passing steam
of 80 degree Celsius to 100 degree Celsius. At this level they add milk of lime and
sulphur dioxide gas to the heated juice, after this mixed juice is stored in Dorr, because it
has some impurities.
D Orr: The juice has some byproducts like press mud and bagasse before it is stored in
the Dorr. After storing in the Dorr, these are separated and move downward.
Evaporation: After clarification the juice stored in the Dorr, is taken into Evaporators
to evaporate the water. After evaporation juice is taken into pan section.
PAN Section: this section again syrup (juice) is heated by a steam. In this section
they remove water, which is mixed in the syrup. After that they make a crystal, which is
done in the crystallizers.

Centrifugals: This is the last process in the process in producing sugar.
In this section 3 Mossecuites are there,
 A-Mossecuite --------- by this only sugar is produced.

 B-Mossecuite -------- produced sugar will be melted
in this section and
Goes to A Masscuits
 C-Mossecuite --------- In this section sugar becomes
melt and goes to A-Masscuits
Principles of conduct:
 Professional commitment
 Respect to others
 Integrity
 Loyalty
 Solidarity
Principles of action:
 Respect for law

 Environment protection
 Workers health and safety
 Protection of employees right
It concerned with the workers salary, wages, bonus and leaves
of workers.

Establishment Section:
Permanent Seasonal Total

Department
General
administration
274 175 449
Engineering 20 186 206
Manufacturing 112 191 303
Cane development
109 - 109
Total 515 552 1067
Varieties of Sugar Cane:
i. CO 67-O1
ii. CO 86032
iii. CO 8014
iv. CO 62175
v. CO 92061
vi. COC 85061
vii. COC 85061
viii. CO 85002
ix. CO 98071 CO : Coimbatore
x. KHS 3296 KHS: Karnataka Hybrid seeds

.8 Engineering Department:
Chief Engineer
Dy. Chief Engineer
Mechanical Electrical Workshop Civil Environment Instrument

Engineer Engineer Engineer Engineer Engineer Engineer
Supervisors Supervisors supervisor Supervisors Supervisors Supervisor
Workers Workers Workers Workers Workers Workers

CHAPTER-4
COMPETATIVE ANALYSIS

CHAPTER-4
COMPETATIVE ANALYSIS
4.1SWOT ANALYSIS
Strengths:
a. Adequate infrastructure facility.
b. Company concentrates on product quality.
c. High production efficiency.
d. Own Power generation.
Weakness:
a. High labor turn over

b. Rigid promotion procedure in the organization
c. No specific department such as HRD
d. No schemes offered
e. No computerized departments
f. Old and traditional machines and equipments are used for
manufacturing
g. Process.
Opportunities:
a. Expansion of projects like paper unit, ethanol production, bio-

fertilizers and power generation
b. All these above mentioned projects may give high profits
c. Cost of production can be minimized by computerization of all the
Dept.
d. As sufficient power is not supplied by the KPTCL, there is an
opportunity for the factory to produce electricity by its wastages.

e. Residues left over after production process of sugar cane can be used
for making ply wood as well as used to generate almost 4.0 KW
power.
Threats:
Strong competition from neighboring factories such as MGSSK, NSSKAnd others.
Often government intervention in its operation.
Opposition from neighboring people to the factory as it disposes some harm
Full chemical content wastages to the Karanja River which is just one km
Away from fact
Cost of production is higher compared to other neighboring factories as it ha
Old and traditional machines and equipments for manufacturing process.
Non co-operation from the govt. in setting up of new distillery unit
4.2 Mc Kinsey’s 7-S MODEL:

The Mckinsey Company, a global management consultancy firm of USA, developed this
7.5 framework in the later part of 1970’s to probe into causes of problems for
improvement. Based on discussions with consultants, academics and business leaders,
Mckinsey’s consultants found that neglecting any one of seven key factors
could make the effort to change a slow, painful, and even doomed process.
From the figure, it is clearly understood that all these variables are interlinked and have
individual as well as combined influences on the organization. All these variables are
complex in nature. There are various factors that influence the ability to change and the
proper mode of change. All these variables are interconnected and it leads us to a
conundrum as to the starting point of their hierarchy.
These can be depicted as the seven levers necessary to bring about an organizational
change. While strategy, structure, and system are generally as hard elements of
‘hardware’ all other components are treated as soft elements or ‘software’ the exact or
actual influence of a particular variable cannot be ascertained nor can it be given in a
functional from, so as to repeat the same behavior at a different point of time and
circumstances.
Structure: Organization structure refers to the way in which organization activities are
divided, grouped and co-ordinate into relationship between managers and employees,
managers and managers, employees. Organization departments can be formally
structured in three ways,
 By function
 By service
 In matrix from
The structure of organization is basically a network of authorities and responsibilities,
which has been assumed by and delegated to employees.
It provides basis for managers and non-managers to perform the job assigned to
them. The structure of an organization is deliberately designed and planned on the
following

Factors:
 Technology
 Environment
 People
Skills: The skills set processed by the company is one of the plus points of the company
to move towards the mile stones of success by understanding significant and challenging
projects, and at the same time, training its employees to acquire the necessary skills.
The term “skills ‘’ include those characteristics which most people use to describe a
company Organizations have strength in a number of areas but their key strength or
dominant skills are few. Skills are the distinctive capabilities or competences of
personnel of the organization as a whole. The company as a whole is very much skilled
with availability of specialized manpower and resources.
Style: Style refers to a pattern of substantive and symbolic action undertaken by top
managers. It communicates priorities more clearly than words alone and may profoundly
influence performance. One element of manager style is he or she chooses to spend time;
another aspect of style is symbolic behavior Style includes two things that is
management style. Management style the way in which the managerial personnel
behave and collectively spend their time to achieve organizational goals, it consists of the
way of leading, motivating and the style of leadership in the management. The
management style is both directive and supportive leadership. The management
gives specific guidance of performance to subordinates also; the management is
friendly and shows concern for the subordinates. This makes the working of the
organization more effective.
Strategy: Strategy means the actions, which a company plans in response to or

anticipation of changes in its external environment. In other words, it is the determination
of basic long-term objectives of courses of action and allocation of resources to
achieve the organization goals

System: System includes formal and informal procedures to support the strategy and
structure. In other words, the process and flow show how an organization gets its day-to-
day things done. This includes the procedure and routine that characterized whole
important work is to be done that is financial systems, hiring, promotion and
performance appraisal systems, information system, etc.
Staff: Staff refers to the people in the enterprise and their socialization in the
organization culture. Productive high performing employees are the company’s most
valuable assets. The company follows a progress policy of taking keen interest in its
personnel’s well-being and progress which a strong sense of belongingness for this the
company has taken various welfare measures such as
 Provident fund
 Gratuity scheme, pension scheme,
 Medical reimbursement
 Educational benefit.
Shared values: The Company is aiming to become market leader in the industry by
establishing an ever-lasting impression in the minds of the customers. These are the
values shared by the members of the organization. It is the super ordinate goal that is
centrally responsible for providing a core mission to the organization, used as an
umbrella, which embraces all the other managerial activities. In short, it says, what does
the organization stands for and what it believes in.

FORMAT
Production budget for the period ending
Months or
Unit required Add closing Less opening Units to be
name of the
for sales stock stock produced
products
PRODUCTION BUDGET MONTHS
Particular J F M A M J J A S O N D
A B C D E F G H I J K L
Sales add:- closing

stock
Less:- opening stock

Table1 showing the 4 years sugar production
Year Item Amount % Percentage
2014 Sugar 607246589.00 19%
2015 Sugar 791886267.88 24%
2016 Sugar 646958449.00 20%
2017 Sugar 1208899690.00 37%
Interpretation:
The above table indicate that in the year 2014 sugar production was very lees
only its 19% In the year 2017 sugar production was 37% increasing compare to the
2007.
Graph1 showing 4 year how much sugar production
% Percentage
40%
35%
30%
25%
20% % Percentage
15%
10%
5%
0%
sugar sugar sugar sugar
2014 2015 2016 2017

Table.2 showing 4 year how much mollasses production
Year Item Amount % Percentage
2014 Mollasses 2945508.00 2%
2015 Mollasses 10795058.00 8%
2016 Mollasses 56637699.00 41%
2017 Mollasses 6563610.00 49%
Interpretation:
The above table indicates that in the year 2014 mollasses production was very
low only its 2%. In the year 2017 also mollasses production was more produce
compare to the 2014, 2015 &2017 it produced 49%.

Table3 showing 4 year how much the Bagasse production was produced
Year Item Amount (Rs) % Percentage
2014 Bagasse (-)6582646.00 -20%
2015 Bagasse 9584384.00 28%
2016 Bagasse 6563610.00 20%
2017 Bagasse 10931147.00 32%

Interpretation:
The above table indicates that in the year 2014 production was showing negative
trend in the year in respectively. In the year 2015 the bagasse production was compare
to 2014 it was increasing bagasse production was 28% in the year 2015 bagasse
production was decreased compare to the 20 8% less In the year 2017 bagasse
production was compare to the last 3 year increasing 32% .

Table 4.4 Showing 4 year how much the Sugar, Mollasses& Bagasse
production was produced
Year Item Amount (Rs) % Percentage

2014 Sugar 607246589.00 19%
Mollasses 2945508.00 2%
Bagasse (-)6582646.00 -20%
2015 Sugar 791886267.00 24%
Mollasses 10795058.00 8%
Bagasse 9584384.00 28%
2016 Sugar 646958449.00 20%
Mollasses 56637699.00 41%
Bagasse 6563610.00 20%
2017 Sugar 1208899690.51 37%
Mollasses 68941909.89 49%
Bagasse 10931147.00 31%
Interpretation:
The above table indicates that in the year 2014. In the year 2014 sugar
production was 19%& the molasses production is 2% & the bagasse production was
negative trend -20%. 2015 In the year 2015 sugar production was 24% percent & the
molasses production was 8% percent & the bagasse production was 28% percent. 2016
In the year 2016 sugar production was 20% percent & the molasses production was
41% percent & the bagasse production was 20%. 2017 In the year 2017 sugar
production was 37% percent & the molasses production was 49% percent & the
bagasse production was 32% percent.

CHAPTER-5
SUMMARY OF FINDINGS

CHAPTER-5
SUMMARY OF FINDINGS
Findings
1. It is found from the study that the total debts are more than capital employed.
2. It is found from the study that the total debts are more than capital employed.
3. The company use to produce less time & produce more production.
4. The worker use there skill & image to produce to more production.
5. The management helps to workers how to increase production they give them to
training.
6. N.S.S.K sugar factory not providing any other credit factilicatly.
7. When they produced production before production they make systematic process
of planning applied.
8. .During the study it was found that the company is making huge profits compared to
previous years.
9. equivalent amount of dividend is also declared to the shareholders of the company.
10. though there is computerization not fully 100 percent. Hence the company must be
computerized fully to do the work easily and economically.
11. produced are sold yet some more efforts are required to ensure increase in sale of the
goods produced.
12. On-the-job organization method is used mostly in B.S.S.K LTD
13. The organization program is used to some extent to do a better job and the
subject contains both theoretical and practical organization program.

14. The organization is important to the employees for the organizational
growth and self-development.
15. The respondents feel that the duration of the organization program should
be short duration, which more effective.
16. Maximum no of employees told that their performance level of
organization program that the employees have under gone in very much
relevant to the job and helps them in day to day activities and the
organization has helped the employees largely in performing their job
more effectively and efficiently.
17. The organization under gone by the employees has led to improve their
knowledge, ability and capability.
18. The overall rating of the organization programs is excellent.
19. Management provides adequate support for organization .
20. Evaluation of organization is done by taking feedback from employees.
21. The organization material are well equipped in the B.S.S.K LTD
22. The concepts and skills covered in the organization program are relevant to
the job
23. The overall opinion about the organization and development program
provided by organization is good.

CHAPTER-6
RECMMENDATIONS
AND CONCLUSION

CHAPTER-6
RECMMENDATIONS AND CONCLUSION
SUGGESTIONS:
 Company has to sell its products on the basis of credit to increase sales more & more.
 Company try to utilize its production capacity properly. So that it will help in
Avoiding both under trading & over trading.
 The company should take effective steps to increase the sales to overcome from net
loss.
 The company management motivtion to workers.
 Company need to impress the investor & can go for conservation production.
 Company likes to follow stable investors.

CONCLUSION:
BSSK Sugars Ltd has state of art equipment and a hilly competent technical team
that produces one of the highest quality sugars. It is vary fast in the industry. It is
dynamic achievement of the company entrepreneurs Sri .SUBHASH KALURE
AND Sri. GOPAL CHAUHAN
BSSK Sugars is not only concentrating in production of quality sugar. But

also engaged in developing the new seeds from which will be most suitable to the
climate.
Share members are satisfied with the performance of the company. The
management provides an opportunity for the growth & welfare of its employees share
members & worker help to each other for company impartment. They discuss to how
worker work to impartment a company the company try to utilize its production capacity
properly so that it will help in voiding both under trading & over trading .company has to
sell its production on the basis of credit to increase sales more &more In the production
Department there where several tools, techniques & methods were used by different
analysis the management provided use high class machines to increase a production.
Overseas players Tate & Lyle plc, UK and continues its focus and plans to play an
active role in global market Growing sugar manufacturers in the country.

BIBLIOGRAPHY

BIBLIOGRAPHY
Books referred:
1. Financial I.M. Pandey Vikas book 10th
Management house pvt.ltd
2. Human Resource P.S. Rao Tata 2006
Management Mcgrawhill
3. Annual report BSSK ------------- 2016-17
Text Book’s
1. COST ACCOUNTING : Dr.G.B.BALIGAR
2. FINANCIAL MANAGEMENT : KHAN
3. FINANCIAL MANAGEMENT ACCOUNTING: G.B.BALIGAR
Web Sites
a. www.bssk.com
b. www.sugarindustry.com

ANNUXARE

ANNEXURE
Financial Statements for five years
ASSETS 2013 2014 2015 2016 2017

Cash balance 949212.72 1478205.77 1000839.38 431713.34 1031072.19
Bank balance 1521711.93 458534.39 4174270.14 1687298.23 4006448.50
Investment 457024.00 498895.00 615961.00 1984502.00 4559973.00
Share investment 9069100.00 9069100.00 9069100.00 9069100.00 9069100.00
Current assets 465439527.24 379800452.18 584183124.89 533237534.85 639752705.94
Loan & advances -- -- -- -- --
1) Advances to 38154048.37 77826192.40 34769251.76 35773330.56 3743974.51
suppliers
2) advances to 2368630.86 2758082.03 1291638.30 1225270.19 1156991.65
cane suppliers
3) Advances to 16870905.73 27715568.73 26478772.83 31848059.28 37044688.09
contractors
4) Advances to 14605286.53 15629966.46 15233330.02 10204322.70 9483591.57
staff
5) Deposit current 1237203.54 1658479.08 918906.00 1975037.00 4267113.12
6) Others 1957837.36 5487442.09 1976949.70 2309759.89 1925016.54
Fixed assts (AT -- -- -- -- --
COST)
1) land 215594.13 215594.13 215594.13 215594.13 215594.13
2) Building 18461808.29 18461808.29 18462331.73 18462331.73 18462331.73
3) Plant & 257716052.92 257716052.92 257716052.92 257716052.92 260598732.92
Machinery
Other assets 4895354.88 13511528.17 12011886.80 12042844.87 12107201.29
Road sanitary and 12248003.06 12248003.06 12467009.06 12468684.06 12468684.06
other works
Expansion 1454573.70 1309116.33 1178204.70 1060384.23 954345.84
expenses
Misappropriation 64650.07 64650.07 64650.07 64650.07 64650.07
Audit objection 141467.65 141467.65 141467.65 141467.65 141467.65
Profit & Loss A/c 479767747.56 547864566.49 605545526.51 617667703.96 689001896.92
Net Loss 60333329.81 68096818.93 57780960.02 12022177.45 71334192.96
TOTAL 1327605740.54 1373913705.24 1587614867.59 1549585641.66 1743746579.74

Liabilities 2013 2014 2015 2016 2017

Paid up share 86904270.00 86904570.00 93231120.00 93235420.00 93239235.00
capital
Share suspense 1248290.00 4825001.00 275524.00 2868089.00 64752752.00
Reserve and 278320765.03 280847960.93 282336340.56 284900408.08 287108675.37
surplus
Bank DF 18491948.08 12588541.57 9275838.61 38607340.87 39053950.48
Balance
Served loans 569574049.61 369100647.86 633261175.30 765560642.00 712622658.64
Fund deposited 4524952.81 4524952.81 4524952.81 4524952.81 4524952.81
for marked
Current -- -- -- -- --
liabilities
1) Due to 665699.65 437626.47 482062.40 837364.79 1452992.41
suppliers
2) Due to 4718928.24 3703717.43 4617042.28 4484905.25 13733271.12
customers
3) Due to 74399164.31 232685844.51 196708957.52 1720624.25 216815880.87
Contractors
4) Pay 6706575.35 10847034.76 3976340.99 739768.69 2747080.79
deduction
5) Others 66997517.43 66657309.17 69447231.83 40394638.57 39229178.68
Provisions 214916787.13 300653705.83 289341438.39 311574694.45 326606638.67
Audit 136792.90 136792.90 136792.90 136792.90 136792.90
Objection
TOTAL 1327605740.54 1373913705.24 1587614867.59 1549585641.66 1743746579.74

CONTENTS
Sl.
PARTICULARS Page No
No.
Executive Summary 1
01 Introduction 2-6
1.1 Introduction
1.2 Theoretical background of the study
1.3 Objective of the study
1.4 Scope of the study
1.5 Limitations of the study
1.6 Rationale for selection of the toic
02 Company Profile 7-24

03 Industry Profile 25-32
04 Competitive Analysis 33-44
05 Summary of Findings, 45-47
06 Suggestions & Conclusion 48-50
07 Bibliography 51-52
08 Annexure 53-55

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PRDUCTION BUDGETORY ANALYSIS ON BSSK LTD BIDAR

Every organization is compassed of many departments and studying about the

Co-ordination, co-operation, mutual understanding, good inter personal

Consumer decision making is an activity carried out by the customer while

DEPARTMENT OF MBA -2017-18 1

DEPARTMENT OF MBA -2017-18 2

1.1 Introduction to the study

DEPARTMENT OF MBA -2017-18 3

Post 1995 scenario

Type of sectors In India In Karnataka

Co-operative sector 235 18

Private sector 120 31

The Bidar Sahakar Sakkare Karkhane Ltd.Hallikhed (S.F.) Tq-Humnabad,

DEPARTMENT OF MBA -2017-18 4

1.2 THEORETICAL BACKGROUND OF THE STUDY

Budget is a planned statement which shows the income & expenditure of

A production budget incorporates the estimates of the total volume of production

Budget is a record plan of action. It is a statement of anticipated results either in

DEPARTMENT OF MBA -2017-18 5

1.6 Facilities Available:

Facilities for Employees:

 Bonus is 8.33 Percent based on the worker’s salary.

DEPARTMENT OF MBA -2017-18 6

DEPARTMENT OF MBA -2017-18 7

2.1 profile of the organization

BSSK LTD. Hallikhed:

DEPARTMENT OF MBA -2017-18 8

Background and Inception of the BSSK Ltd., Hallikhed (s.f.)

THE BIDAR SAHAKAR SAKKARE

YEAR OF ESTABLISHEMENT 1961-62

1 CRUSHING SEASON 1969-70

LOCATION OF THE UNIT JUST 4 KMS. AWAY FROM

REGISTRATION NUMBER 1961

REGISTRATION DATE 1903 / R.C.N./ 1961

ADDRESS FOR CORRESPONDENCE The Bidar sahakar sakkare karkhane Ltd.

DEPARTMENT OF MBA -2017-18 9

2.2 BOARD OF DIRECTORS

Mr. Ashok Amruthrao M Patil Director

Mr. Sanjay.Guru basappa khenny Chairman

Mr. Wajeeduddin Nizamuddin patel Vice Chairman

Mr. kiran shankriyappa Chanda Directors

Mr. Bakkappa Shankriappa bhose Reddy Directors

Mr. Rachappa Saad Directors

Mr. Laximan Ishwarappa Bullea Directors

Mrs .Eramma Shankarrao patel Directors

Mrs. Kamlabai Nitture Directors

Mr. Parmeshwar kishan rao patel Directors

Mr. Rajshekar Baswaraj Patel Directors

Mr. Dattatreya Vishwanath. Director

Mr. Bheemrao Basvaraj Patel Director

Mr. Sangmesh Kashinath rao Patel Director

Mrs.Arllee Suriyakanth Director

DEPARTMENT OF MBA -2017-18 10

Mr. Sanjay Gurubasappa khenny Chairman

Mr. Wajeeduddin Nizamuddin Patel Vice Chairman

Mr. Arllee Suriyakanth J R C S MD

Mr.Sanju Patel Chief Chemist

Mr. Shivashankar Patil Cane Development officer

Mr. Hanmanthappa Account Officer

Mr. Subash hunjee Personal Manager

Mr. Madeppa Purchase Assistant

Mr. K.K. Attal CA, Bidar

2.3 Business Operations