A report on

Study of the SAP Design and Implementation in the Finance and Accounts Section of the Aligarh Manufacturing Facility of M/s Heinz India Pvt. Ltd. Submitted in partial fulfillment of the requirement of the award of the degree of Master of Business Administration
Under supervision of: Mr. C.S. Tripathi Accounts Officer Heinz India Private Limited, Aligarh Submitted by: Miss.Shubhra Dixit M.B.A. II Semester School of Management, Doon University, Dehradun

Submitted to

School of Management Doon University, Dehradun

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Contents and Page Numbers

1. Declaration Pg. 3

2. Acknowledgement

Pg. 4

3. About FMCG Sector...

Pg. 5

4. Introduction to Macro Environment of Heinz

Pg. 7

5. Introduction to Micro Environment of Heinz..

Pg. 21

6. Design of Study.

Pg. 42

7. The Study (Part-A)..

Pg. 47

8. The Study (Part-B)..

Pg. 95

9. Annexure-A..

Pg. 104

10. Annexure-B

Pg. 105

11. Findings

Pg. 108

12. Recommendations....

Pg. 109

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13. Bibliography.

Pg. 110

Declaration
I hereby declare that the work for Dissertation report titled A Study of the SAP Design and Implementation in the Finance and Accounts Section of the Aligarh Manufacturing Facility of M/s Heinz India Pvt. Ltd is completed by me. The report is based on the work conducted at Heinz India Pvt. Ltd., by me. I also declare that this project work has not been submitted to any other University or Institution for the award of any degree, diploma, fellowship or other similar title. Admittedly, I have received suggestions and guidance from my guides for the partial fulfillment of the course That is, master of Business Administration.

(Shubhra Dixit)

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Acknowledgement
I Shubhra Dixit take the opportunity with great pleasure to plot the circle of

compliment, deep sense of gratitude & profound thanks to all those who have spared their valuable time and giving me their co-operation to make this complete. I am grateful to Mr. Rajesh B. Sharma (Manager- H.R.), Mrs. Seema Singh (H.R. Officer) & Mr. Ajay Kansal (Manager- Finance) to allow me for training at Heinz India Pvt. Ltd. I also express my profound thanks to Mr. Manoj Sharma who help me a lot during the training period. First of all I would like to express my sincere thanks to my project supervisor. Mr. C.S. Tripathi (Accounts officer) and also thankful to Mr. Rakesh Kumar, Mr.A.Adil & Mrs. Deepa Singh HEINZ INDIA PRIVATE LIMITED ALIGARH for his effort , proper guidance, supervision and generous co-operation throughout this work that has enabled me to present this project report. I express my profound thanks to all office members and our Head of the Department School of Management, Doon University, who helped a lot during the training period for giving precious time, giving encouragement time to time. Without which I would be failing in my duty, and also my heartiest thanks to lecturers of the School of Management, Doon University for giving all possible support, suggestion and valuable time in preparing this project.

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The FMCG Sector

Fast moving consumer goods (FMCG) or Consumer Packaged Goods (CPG) are products that are sold quickly and at relatively low cost. Examples include nondurable goods such as soft drinks, toiletries and grocery items. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large. The term FMCG refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years. FMCGs have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs such as meat, fruits and vegetables, dairy products and baked goods are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks and cleaning products have high turnover rates.

The following are the main characteristics of FMCGs:

1.

From the consumers' perspective: Frequent purchase. Low involvement (little or no effort to choose the item -- products with strong brand loyalty are exceptions to this rule). Low price.

2.

From the marketers' angle: High volumes. Low contribution margins. Extensive distribution networks. High stock turnover.

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FMCG Sector- India, 2011

Inflation-led price hikes and contribution from acquisitions is expected to perk sales growth to strong double digits year-on-year for fast-moving consumer goods (FMCG) companies for the first quarter this fiscal. Though volume growth is likely to sustain for most of the product categories, the highly competitive categories (like shampoos) are likely to witness some moderation due to down-trading by consumers at the bottom of the pyramid in the current high inflationary scenario. Favourable macroeconomic drivers such as GDP, rising income levels and population growth are driving growth in the FMCG sector. For Q1 FY12, expected sales growth is around 17% year-on-year for FMCG companies. The expected topline growth of most FMCG companies to be a mix of higher sales volume and price increases witnessed in 2011. Over the past few months, commodity prices have shown a mixed trend. The prices of crude-linked derivatives, palm oil, kardi oil and sunflower oil have softened in recent months while copra and raw coffee have maintained their upward momentum. However, the average price of raw materials for most of the FMCG companies was significantly higher on a year-on-year basis (as most of the commodities had seen a significant increase in their prices in the second half of FY2011). Fast Moving Consumer Goods Companies have been expanding rapidly in the Indian market and and are set to grow to the next level as Indias middle class grows bigg er and bigger and the existing middle class becomes richer.Indias Fast Moving Consumer Goods Stocks form a great defensive investment class.They not only have defensive characteristics but also growth as well.Indias FMCG sector is expected to grow by more than 100% in the next 5-6 years as more and more consumers move from unorganized part of the industry to the organized industry. The penetration of many product categories in the segment is still low, and thus, the growth potential of the FMCG industry looks promising. Some of the key challenges for the sector include complicated tax structure and GST implementation, fragmented and weak agricultural supply chain, and bureaucratic regulatory processes.

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Introduction to Macro Environment of Heinz

i. About ii. The Founder iii. Global Scenario of Heinz iv. Mission and Values v. Awards vi. Heinz Culture vii. Financial Strategies viii. Operational Strategies ix. Financial Highlights x. Board of Directors

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About Heinz
The H.J. Heinz Company, headquartered in Pittsburgh, Pennsylvania, is the most global of all U.S.based food companies. Famous for our iconic brands on five continents, Heinz provides delicious, nutritious and convenient foods for families in 200 countries around the world. In more than 50 of those countries, we enjoy the number-one or number-two market position. H. J.HEINZ Company is a well known player in FMCG category. It stands second in the world among food product companies next to NESTLE. It has been certified by ISO9000. Heinz came to India in 1994 by taking over the Family Products Division of Glaxo with powerful brands such as Complan, Glucon-D, Nycil and Sampriti. Heinz India is fully integrated into the global Heinz operations employing high standards in quality at its state-of-the-art manufacturing facility at Aligarh in the State of Uttar Pradesh. This manufacturing facility is HACCP certified and follows GFMP (Good Food Manufacturing Practices) to deliver nutritious and safe food products to our discerning consumers. Heinz in India provides taste and nutrition through globally trusted products like Heinz Tomato Ketchup and strong local products like Complan - with extra growing power, Glucon-D - the refreshing energy drink, Nycil - the most effective prickly heat powder and Sampriti Ghee Mahek bhara swaad. Heinz products synergize the three pillars of the Heinz tradition namely TRUST, TASTE & NUTRITION. Today, iconic brands like Complan & Heinz and category leaders like Glucon D & Nycil are being nurtured with a combination of formulation and flavour upgradation, packaging innovations and new positioning strategies with strong equity quotients.

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The Founder- Henry Jones Heinz

Henry John Heinz was very much the product of his parents, and the lessons he learned from them echo down into the character of the H.J. Heinz Company today. Henry John Heinz (called Harry or Harry by his family was a country boy and practical man). His mother was a family gardener, and Harry was very much his mothers son.Henry Heinz learned from his mother a genuine and enduring concern and respect for every person, rich or poor, and always tried to practice her favorite rule for living: Always remember to place yourself in the other persons shoes. At 15, Harry joined his father as a practical assistant in the brick business. Harry supervised his brother and sister in garden and with the help of his mother, began to sell prepared horseradish. Henrys parents taught him thrift rather than greed. He knew nothing of get rich quick business schemes and couldnt bear the thought of ill -gotten gain. Many of his business ideals and principles, almost unheard of at the time, remain progressive to this day. For example, Henry Heinz did business based on the simple idea that every profit should be fairly earned. One of his mottos still guides Heinzs purchasing practices today: Deal with the seller so justly that he will want to sell to you again. Another driving principle of Henry Heinzs that resonates in todays resourceconscious world was his hatred of waste of any kind. Leading by example, he inspired each of his employees to avoid even the slightest waste of material, time or opportunity. The year 1869 proved to have a seminal one in the life of Henry John Heinz the history of the food business. He and his Sharpsburg friend and neighbor, L. clearance Noble founded Heinz & Noble.This laying the foundation of todays global company their first product was the Heinz familys pure and superior grated horseradish in a clear bottle.

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Heinz Global
The H.J. Heinz Company, headquartered in Pittsburgh, Pennsylvania, is the most global of all U.S.-based food companies. Famous for our iconic brands on six continents, Heinz provides delicious, nutritious and convenient foods for families in 200 countries around the world. In more than 50 of those countries, we enjoy the number-one or number-two market position. Key Heinz markets are segmented as North American Consumer Products, U.S. Foodservice, Europe, Asia Pacific and Rest of World. Our commitment to providing a variety of wholesome foods, with an unwavering emphasis on health and wellness, makes Heinz like no other company on earth.Throughout the world, Heinz is synonymous with ketchup. We sell 650 million bottles of Heinz ketchup every year and approximately two single-serve packets of ketchup for every man, woman and child on the planet. For millions of families the world over, if it isnt Heinz, it isnt ketchup.Beyond ketchup, Heinz also markets an ever-expanding selection of other great tasting foods. Our core products include ketchup, sauces, meals, snacks, and infant/nutrition. Among them are our 15 Power Brands, which comprise approximately 70% of our global sales. In short, Heinz is committed to enriching your familys eating experience, whether youre at home, dining out, or on the go!. At any given moment, on any given continent, the 35,000 employees of Heinz are hard at work...creating new products, perfecting fresh ideas, and developing nutritious and innovative foods for today's families. Heinz is a trusted name for consumers, a valued partner in the community, and a great investment with tremendous growth potential.

LEADING HEINZ BRANDS AROUND THE WORLD

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Mission and Values

Heinz_Mission:
As the trusted leader in nutrition and wellness, Heinz the original Pure Food Company is dedicated to the sustainable health of people, the planet and our Company.

Heinz Values:

Team Building & Collaboration - We embrace great ideas from everywhere and everyone and respect all individuals. Innovation - We spot consumer and customer needs and meet them with simple, creative solutions. Vision - We define a compelling, sustainable future and create the path to achieve it. Results - We deliver on commitments, take accountability and balance the short- and long-term. Integrity - We always tell the truth, act with the highest ethical standards and ensure that our products are of the highest quality.

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Awards 2011
Heinz Poland: Pudliszki named The Strongest Polish Brand 2011 (food sector category) Heinz Poland: Pudliszki named The Best in Poland for Pudliszki dumplings Heinz Poland: Pudliszki awarded Golden Receipt for Pudliszkis ketchup Heinz Australia: Golden Circle was awarded Beverage Supplier of the Year at Junes (Foodservice Suppliers Association Australia) National Awards of Excellence 2011 Heinz China: Heinz wins China Children Charity Award Heinz China: Heinz wins China Infant and Children Corporate Social Responsibility Award Heinz UK: Heinz Beanz Fridge Pack wins Gold in Grocers Food & Drink Awards 2011 Heinz UK: Heinz wins Grocery Supplier and Foodservice Supplier of the Year at the Todays group supplier awards

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Heinz Culture
Worlds largest food product Company. Heinz has a conductive environment, which is not only integrates and motivates all the employees towards achieving high standard but also makes sufficient room for everybodys growth. People are value assets as at Heinz, main emphases are on task. Efforts are toward satisfying the customers and expanding the market share. A good blend of behavioral and skill development programs provide stimulus for growth and career development. Over the years Heinz has concentrated on developing internal relationship so that external relationship is enhanced.

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Financial Strategies
Deliver growth in Organic Sales, EPS and Operating Income. Maintain a strong balance sheet with robust Operating Free Cash Flow. Reduce costs and increase productivity to drive margins. Invest in Heinzs leading brands and core categories to drive growth. Return a high percentage of EPS to shareholders through top-tier dividend. Generate strong Return on Invested Capital. Enhance Total Shareholder Return.

FINANCIAL HIGHLIGHTS

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Operational Strategies
Grow the core portfolio: Grow through health & wellness, taste, and convenience. Leverage the science of innovation. Continue to invest in the business. Execute strategic M&A. Accelerate growth in emerging markets: Invest for double-digit sales & profit growth. Leverage infrastructure/expand distribution. Win with global customers/modern trade. Grow through health & wellness, taste, and convenience. Leverage the science of innovation. Execute strategic M&A. Strengthen and Leverage Global Scale: Innovation transfer. Global procurement. Global customers. Global process design. Wall-to-Wall SAP. Productivity. Make talent an advantage: Right leadership. Strengthen bench. Excel at recruitment development. Right incentives. Optimize talent placement

GROW THE CORE PORTFOLIO

ACCELERATE GROWTH IN EMERGING MARKET Four Key Strategies

STRENGTHEN AND LEVERAGE GLOBAL SCALE

MAKE TALENT AN ADVANTAGE

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Financial Highlights, 2011

(1) Amounts are continuing operations, FY06 EPS excludes special items (2) Operating Free Cash Flow is cash from operations less capital expenditures net of proceeds from disposal of PP&E (3) CAGR = Compound Annual Growth Rate (4) Volume plus price

Dividends

Overall, Heinz has delivered a total shareholder return of more than 46% over the last five fiscal years, three times the return of the S&P 500. Our common stock price finished the fiscal year up 12%.

Accelerate Growth in Emerging Markets

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The excellent results in Fiscal 2011 reflected continued strong execution of our proven plan to:

Expand the Core Portfolio Strengthen and Leverage Global Scale Make Talent a Competitive Advantage for Heinz. Under this plan, Heinz has delivered 24 consecutive quarters of organic(2) sales growth despite the recession, weak consumer confidence, global uncertainty and rising commodity costs.

Market Growth

In Fiscal 2011, our growth in Emerging Markets was led by record sales of: Heinz baby food in China; Complan and Glucon-D nutritional beverages in India; ABC sauces in Indonesia; and Heinz Ketchup and baby cereal in Russia, where we hold the number-one position in both categories. Overall, Heinz has become the most global U.S.-based food company, with almost two-thirds of our sales generated outside the U.S. and leading brands across six continents.

Partnership with Coca-Cola:

Heinz announced a landmark agreement in February 2011 that enables us to manufacture Heinz Ketchup bottles using The Coca-Cola Company's innovative PlantBottle technology. The PlantBottle packaging (featured on the cover of this report) is more sustainable because up to 30% of the bottle material is made from plants, unlike traditional plastic bottles made from non-renewable fossil fuels. Heinz Ketchup will convert globally to PlantBottle packaging, which is still fully recyclable, starting with a U.S. rollout of more than 120 million retail and foodservice bottles this summer. This partnership with Coca-Cola will help further our sustainability efforts.

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Consumer Focussed Innovation

focus on innovation that delivers added value and convenience extended beyond ketchup. In the U.S., Heinz introduced T.G.I. Friday's single-serve entres to expand its growing restaurant-quality line; new Weight Watchers Smart Ones breakfast wraps; and Classico Light Creamy Alfredo sauce. In the U.K., we launched resealable Fridge Pack Beanz; Heinz Lemon & Black Pepper Salad Cream; and HP Sauce with Guinness, a new twist on a British classic. In other regions of the world, Heinz introduced our first line of Heinz canned vegetables in Russia; new varieties of ABC soy sauces in Indonesia; and Heinz Infant Formula in China.
Heinz

To support its brands, Heinz has increased marketing investments around 60% since Fiscal 2006 and significantly increased our presence in social media to capitalize on its growing global impact as a forum for consumers. Fueled by innovation and effective marketing, reported sales of Heinz Top 15 brands grew nearly 3% for the year and generated 70% of the Company's total sales. Finally, Heinz ranked first in customer satisfaction among food manufacturing companies for the 11th consecutive year in the American Customer Satisfaction Index, an achievement reflecting our focus on quality, innovation and value.

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Board of Directors
William R. Johnson Chairman, President and Chief Executive Officer, H. J. Heinz Company Charles E. Bunch Chairman and Chief Executive Officer, PPG Industries, Inc.

Leonard S. Coleman, Jr. Former President of the National League of Professional Baseball Clubs

John G. Jack Drosdick Retired Chairman, President and Chief Executive Officer of Sunoco, Inc.

Edith E. Holiday Attorney and Director, Various Corporations Candace Kendle Chairman and Chief Executive Officer, Kendle International, Inc.

Dean R. O'Hare Retired Chairman and Chief Executive Officer, The Chubb Corporation.

Nelson Peltz Chief Executive Officer and a founding partner of Trian Fund Management, L.P.

Dennis H. Reilley Chairman, Covidien, Retired Chairman, President and Edge Capital Partners, LLC.

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Chief Executive z President, Swann, Inc. and Managing Director of Diamond

Thomas J. Usher Chairman of Marathon Oil Company, Retired Chairman, U.S. Steel Corporation. Michael F. Weinstein Chairman and co-founder of INOV8 Beverage Company, LLC

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Introduction to Micro Environment of Heinz:

i. Change from Glaxo to Heinz ii. About Heinz India Pvt. Ltd. iii. Key Products iv. Quality Policy v. Heinz India Vision and Values vi. Heinz India Mission vii. Heinz across India viii. Aligarh Factory Inside ix. Structural Environment x. Welfare Activities

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Heinz India
History Changing Name From GLAXO to HEINZ
The Glaxo India Limited was incorporated in India on Nov.1924 as an agency house for distributing. The well known baby Glacto of British Company. It was recognized internationally 5 one of the leading manufactures of the Research Based Pharmaceuticals and food products. In the early 1990s Glaxo was going in losses in the manufacturing of food products over the entire Globe. However, Aligarh plant was running in profits so it did not want to close the unit and hence asked the Glaxo headquarter agreed on a condition to continue the food products after changing the name. Glaxo India limited was remaining as Glaxo laboratories India limited (GLINDIA). This change in name caused a negative effect on the sales of pharmaceutical products, so GLINDIA further enquired headquarter again to allow using the old name of Glaxo India limited. The permission was henceforth granted. But due to competition in food products market Glaxo India limited. Though that as the headquarter is not facilitating R&D programmes regarding food products so it would become difficult in the near future to survive in the growing stiff competition.

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Therefore Glaxo India limited thought that they should sell their Aligarh plant at the time when it is making profits so that good value could be earned from it. Ultimately in 1994 Glaxo India limited took a decision to sell its food products manufacturing unit at Aligarh, Heinz India private limited took over from Glaxo India limited. On October 1984, as Glaxo has decided to concentrate only on pharmaceuticals. Heinz India private limited by 1999 has become Deemed Public Co. As it has crossed the annual average turnover of Rs 10 corers for three consecutive years. A limit set by Companys Act, 1956 which permits a Co. to omit writing the word private in its name. So, Heinz India private limited has now re Heinz India private limited names as Heinz India limited, and again renames the Co. Heinz India limited.

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Heinz India Private Limited

Heinz came to India in 1994 by taking over the Family Products Division of Glaxo with powerful brands such as Complan, Glucon-D, Nycil and Sampriti. Heinz India is fully integrated into the global Heinz operations employing high standards in quality at its state-of-the-art manufacturing facility at Aligarh in the State of Uttar Pradesh. This manufacturing facility is HACCP certified and follows GFMP (Good Food Manufacturing Practices) to deliver nutritious and safe food products to our discerning consumers. Heinz in India provides taste and nutrition through globally trusted products like Heinz Tomato Ketchup and strong local products like Complan - with extra growing power, Glucon-D - the refreshing energy drink, Nycil - the most effective prickly heat powder and Sampriti Ghee Mahek bhara swaad. Heinz products synergize the three pillars of the Heinz tradition namely TRUST, TASTE & NUTRITION. Heinz India Private Limited manufactures food products, including tomato ketchups, energy drinks, and ghee. The company also offers prickly heat powders. It provides its products through distributors in India. The company was incorporated in 1994 and is based in Mumbai, India with branch offices in Delhi, Kolkata, and Chennai, India. Heinz India Private Limited operates as a subsidiary of HJ Heinz Co.

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Heinz India, Key Products

Heinz Ketchup
Heinz Ketchup is available in glass bottles in India with two varieties, one is the normal Heinz Ketchup, and one is an alternative which does not contain any traces of garlic or onion, two vital ingredients in the original ketchup. This is due to the large number of Indians who refrain from eating garlic and onion for religious and cultural reasons. Heinz ketchup is manufactured in Aligarh.

Complan
Complan is a delicious drink, enjoyed by a wide range of people of different ages for a variety of different reasons. Complan is a trusted, fortified dietary supplement formulated to provide high quality nutrition. It provides a balanced mix of high-quality, essential protein, fat and carbohydrate to provide energy, as well as an extensive range of vitamins and minerals, and it provides a useful boost to energy even in small servings. A single serving, when made with water, provides around 250 calories, and when mixed with skimmed milk it provides around 320 calories. Complan is manufactured in Aligarh branch.

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Glucon-D
Since 1933, Glucon-D has been a dominant leader among glucose-based beverages. Glucon-D is the preferred choice in summer when the scorching heat drains out body glucose. Glucon-D contains 99.4% glucose. It is easily absorbed by body, thus giving instant energy & rejuvenation. As part of the Brand Equity Survey in 2010, Glucon-D was adjudged the 19th most trusted brand and 3rd among beverages. Glucon-D is available in 3 delicious flavours Original, Tangy Orange & NimbuPani. Glucon-D Isotonik Energy Drink is an Isotonic energy drink for quick replenishment of essential body salts during sports & high-intensity activities.

Sampriti Ghee
As a byproduct of milk ghee is manufactured under the brand name of Sampriti . It is manufactured at Aligarh plant through backward integration process of procuring milk directly from farmers. The ghee is primarily made of buffalo milk and is sold in India through retail, civil supplies and through bulk ghee channels.

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Nycil
Prickly heat powder is prepared in the brand name of Nycil. This is available in following three fragrances: Plain Sandal Lavender Classic

Nycil is manufactured by third party and is marketed by Heinz India.

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Quality Policy
Heinz India Private Limited is committed to:

a) Procurement, development, production and marketing of safe clean whole some food of high quality, keeping focus on needs of customers by establishing and maintain proper facilities necessary for the controlled production consistently in a sanitary manner so as to ensure that customer confidence is generated and maintained consistently. b) Establishing and maintaining proper operation and maintaining procedures necessary for the controlled production establishing and maintaining proper training programs so that the person responsible for product integrity and safe guarding quality environment is competent to carry out her responsibilities. c) Achieving high safety. Occupational health and environmental standards by establishing internal review procedure to ensure compliance of applicable laws and regulations.

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Heinz India Vision

The words Premier Food Company Offering Nutrition, Superior Tasting Food, to people everywhere .

Delivering high quality products. Adhering to standards. Be a company with a strong and motivated workforce. Satisfying customers needs. To become renounced in commercial as well as social.

Premier Values
Passion Risk tolerance Excellence Motivation Innovation Empowerment Respect

Chairmans Four Imperative

Drive Profitable Growth Remove the clutter Squeeze the cost Measure & Recognize Performance.

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Heinz Worldwide: A Pure Food Company

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Heinz Values
Team Building & Collaboration - We embrace great ideas from everywhere and everyone and respect all individuals. Innovation - We spot consumer and customer needs and meet them with simple, creative solutions.

Vision - We define a compelling, sustainable future and create the path to achieve it. Results - We deliver on commitments, take accountability and balance the short and long-term.

Integrity - We always tell the truth, act with the highest ethical standards and ensure that our products are of the highest quality.

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Heinz across India

Head Office Mumbai

Plant/Factory

Copackers

Branch

Aligarh

Sitarganj

Chennai

Kolkatta

Mumbai

Chennai

CFA

CFA

CFA

CFA

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Aligarh Factory Inside

HEINZ took over from Glaxo on 1st October 1994. They continue with the same brand name. It now manufactures Complan, Glucon-C and Glucon-D at its Aligarh Unit. Sampriti Ghee being a by-product. Rest Nycil is manufacturing by 3rd party. Factory is located 10Kms away from Aligarh city at a place known as Manzoorgarhi. Factory has an area of 41.7 acres, one-third of area is vacant and rest has permanent infrastructure.

Main office is situated at Annie Besant Road, Worli, Mumbai. It has its two manufacturing unit located at Sitarganj, Aligarh. Milk collected from its centers, bulk supplier and private contractors. Heinz center are located in a radius of 125 Kms around Aligarh district, part of Bulandshaher district and Mathura. Heinz has collected 70,000 tones of milk/annum costing around Rs.70 crores. Its total milk holding capacity is 4 lack liters. In flush session (April-July) the milk collection is 5 lack liters per day.

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The factory is connected both by roadways and railways. It has a turnover around of Rs.650 corers. Heinz has only one trade union H. S. A. (Heinz Staff Association). There are no interfaces from outside unions. For the security purposes, Heinz has divided the whole into different zones follows: Zone Department A Administration block, MPO office, analytical lab, goddown nos. 17 officers colony, area new boundary well.

Engineering

office, stores, workshop platforms, and generator house, old

and new boiler.

C D

Production department, old lab, sprays drier no. 1 and no. 2, factory stores. R.P.U. 1, 2, 3 all eastern wings godown and acid stores.

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Structural Environment
Total area covered by the building of department is appro. 500sq. m and the entire area is divided into small wooden partition. Every separated area is allotted to every single employ. There are many tube lights, fans, moveable chairs, 24hrs chilled and pure water supply. The capacity of water cooler is 60ltr/hr.

There are eleven departments in the facility. They are as follows:-

1. Production Department 2. Quality Assurance Department 3. Retail Packing Unit 4. H.R.(Personal) Department 5. Purchase Department 6. Distribution & Planning Department 7. Factory Service Unit(FSU) 8. Engineering Department 9. Finance department 10. Milk Procurement Department

11. Safety Department

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FINANCE DEPARTMENT: It is concerned with the accounts and budgets

preparation, its functions are: Fund management and budgetary control. Purchase and expenses accounts control. Statutory and audit compliance. Wages administration. Variance analysis and information technology. Revenue budgeting and sending it to the main corporate office. Estimation of taxes sales tax, service tax, income tax, excise duty, MandiSamiti tax.

PRODUCTION DEPARTMENT: -This department is concerned with production of

FMCG goods. Their functions are: I: Processing area: To conduct the dairy activities effectively To dry up the skimmed milk for the preparation of COMPLAN.

II: R .P .U: This unit is set up for the purpose of packaging the products.

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PERSONNEL DEPARTMENT: - This department is concerned with managing

people and matters therewith. Their functions are: Selection and Recruitment of employees. Maintaining the personal record. Training, promotion, and job rotation. Maintaining the record of temporary casual, contract, and apprentice workmen.

ENGINEERING DEPARTMENT: - Its main function are as follows: To provide support to operation and maintenance of various equipment used in production process. To provide effluent treatment and pollution control.

Transportation facility by engineering department:-To provide tankers for carrying milk from milk collection centers.

QUALITY ASSURANCE DEPARMENT: - As the name indicates quality is just not an

accident, it is a collective work of intelligent people with a team of well trained and experienced people in quality assurance department.

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Welfare Activities
CANTEEN: Canteen is providing food on highly subsidies rate. It has different timing for lunch of management staff and workers and is situated in one building only. Company`s own staff only runs canteen.Activities are also coordinated by members of canteen .It caters approx 500 person daily. REST ROOMS: -There are 4 rest rooms to facilitate the workers in the evening and nightshift both. SPORTS CLUB: - In this committee there are 14 members. The committee coordinates the activities of sports club members like annual sports, games, picnic tours, annual function of cultural programmes. G.M operation is the president of the sports club.

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HEINZ INDIA PRIVATE LIMITED is committed to: Procurement, Development, production and Marketing of safe clean wholesome foods of high quality, keeping focus on needs of customer by establishing and maintaining proper facilities necessary for controlled production consistency in a sanitary manner, so as to ensure that customers confidence is generated and maintained consistency. Establishing and Maintaining appropriate operating and monitoring procedure necessary for controlled production and every person is responsible for product integrity and safe guarding quality environment competent to carry out his responsibilities. Achieving high safety, occupation health and environment standards establishing internal review procedures to ensure compliance of applicable laws and regulation. Its main functions are: Maintenance of quality assurance department and lab equipments. To conduct quality test of raw material and Packaging materials.

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MILK PROCURMENT UNIT: - Its main functions are

Collection of milk from the various collecting centers. To conduct milk purity test. To provide storage and refrigeration to the milk. Safe transportation of milk collecting centers to the company .

PURCHASE DEPARTMENT: -Its main functions are

Material procurement. Asking for quotation and their evolution.

STORAGE DEPARTMENT: - This department is concern about management of

inventory and control. Its main functions are Ensure storage of material under hygienic condition and meet good food manufacturing practice standards. Ensure compliance of ISO norms. Ensure safe unloading of stocks and no discrepancy with ledger balance.

SAFETY DEPARTMENT: -For the purpose of providing safety and security to the
company from various contingencies. It has been divided into several zones. Every department in the company has been equipped with fire extinguishers and first aid boxes. At the time of any contingency, the security officers appointed for different zoned & perform their responsibilities. Their main functions are Safety of employee and company` s property. Companies own staff is engaged for security. Controlling and guarding the movement of guards at the gate. Security alert around the factory / boundary wall area. Its aim to make safety and health working condition to the employees in the organization.

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The working condition of the organization is obeying the FACTORY ACT1948. The company is also obeying the rule of U.P state FACTORY ACT1950. Watch the working condition like water facility, food facility etc.

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Design of Study

i. Research Methodology ii. Steps in Research Methodology iii. Action Plan Followed.

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Research Methodology
Research methodology involves the process to systematically solve the research problem or research objective of the research. It not only includes research method uses in conduction the research but also consider the logic behind the method we adopt in the context of our research study and explain why we are using a particular method of techniques and why are not using others so the research results are capable of being evaluated either by the researcher himself or by other. Research is a systematized efforts to gain new knowledge it is a movement a movement from the know to the unknown. It is actually a voyage of discovery. A careful investigation or inquiry specially through search for new facts in any branch of knowledge. Research methodology is a way to systematically solve the problem .it may be understood as a science of studying how research is done scientifically .in it we study the various steps that are generally adopted by the researcher in studying his research problem along with logic behind them. It is necessary for the researcher to know not only need to know how to develop certain indices or tests, how to calculate mean or median or mode ,how to apply particular research techniques but must also know which of these methods or techniques are relevant and what would they mean and indicate and why . Research process consists of series of action or steps necessary to effectively carry out the research.

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The Research Process The research process is similar to undertaking a journey. For a research journey there are two important decisions to make-

1) What you want to find out about or what research questions (problems) you want to find answers to; 2) How to go about finding their answers.

There are practical steps through which you must pass in your research journey in order to find answers to your research questions. The path to finding answers to your research questions constitutes research methodology. At each operational step in the research process you are required to choose from a multiplicity of methods, procedures and models of research methodology which will help you to best achieve your objectives. This is where your knowledge base of research methodology plays a crucial role.

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Steps in Research Process:

1. Formulating the Research Problem 2. Extensive Literature Review 3. Developing the objectives 4. Preparing the Research Design including Sample Design 5. Collecting the Data 6. Analysis of Data 7. Generalisation and Interpretation 8. Preparation of the Report or Presentation of Results-Formal write ups of conclusions reached.

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Methodology Followed
Act 1. Act 2. Act 3. Act 4. Act 5. Act 6. Act 7. Act. 8. Act. 9. Act. 10. Act..11. Joining Formalities . Finalizing on the Title of the Project Finalizing on the Work Methodology Study of the Organization Study of the Macro/Micro Environment Study of the Subject and its implications Study of the IT implications of the subject Drafting of recommendations / report Presentation of Draft Recommendations Final Recommendations and Report Project Completion / Closure Formalities 15th June, 20XI 16th June, 20XI to 25th June, 20XI 27th June, 20XI to 1st July, 20XI 4th July, 20XI to 8th July, 20XI 11th July, 20XI to 15th July, 20XI 18th July, 20XI to 22nd July, 20XI 25th July, 20XI to 29th July, 20XI 1st Aug, 20XI to 5th Aug, 20XI 8th Aug., 20XI 12th Aug., 20XI. 12th August, 20XI

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The Study: (Part A)

Objective of Study:
A Study of the SAP Design and Implementation in the Finance and Accounts Section of the Aligarh Manufacturing Facility of M/s Heinz India Pvt. Ltd.
i. Information Technology in Management ii. Information Technology Infrastructure iii. Need of Information Technology in Management iv. Management Information Systems v. Enterprise Applications vi. Information System used at Heinz India Aligarh Facility Location vii. SAP(Systems, Applications and Products in Data Processing) at Heinz India Aligarh Facility viii. Financial Performance Management at Heinz India Aligarh Facility ix. Plant Finance Efficiency x. Plant Accounting xi. Planning department xii. Preparation of Indent, PR, PO xiii. Purchase Order xiv. Role of Factory Service Unit xv. Quality Assurance Department xvi. Process of Working in Factory Store of Heinz India Pvt. Ltd. xvii. Short term Finance Policy. xix. Construction of Current Assets and Current Liabilities xx. Payment System

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Information technology in Management

IT Management is the discipline whereby all of the technology resources of a firm are managed in accordance with its needs and priorities. These resources may include tangible investments like computer hardware, software, data, networks and data centre facilities, as well as the staffs who are hired to maintain them. Managing this responsibility within a company entails many of the basic management functions, like budgeting, staffing, and organizing and controlling, along with other aspects that are unique to technology, like change management, software design, network planning, tech support etc. IT Management is a different subject from Management Information Systems. Management Information Systems refer to information management methods tied to the automation or support of human decision making. IT Management, as stated in the above definition, refers to the IT related management activities in organizations. MIS as it is referred to is focused mainly on the business aspect with a strong input into the technology phase of the business/organization. A primary focus of IT Management is the value creation made possible by technology. This requires the alignment of technology and business strategies. While the value creation for an organization involves a network of relationships between internal and external environments, technology plays an important role in improving the overall value chain of an organization. However, this increase requires business and technology management to work as a creative, synergistic, and collaborative team instead of a purely mechanistic span of control according to.

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IT Infrastructure
The term IT Infrastructure is defined as a combined set of hardware, software, networks, facilities, etc. (including all of the Information Technology), in order to develop, test, deliver, monitor, control or support IT services. Associated people, Processes and documentation are not part of IT Infrastructure.

The below concepts are commonly listed or investigated under the broad term IT Management

Business/IT alignment IT Governance IT Financial Management IT Service Management Sourcing IT configuration management

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Need of Information Technology in Management

Initially in businesses and other organizations, internal reporting was made manually and only periodically, as a by-product of the accounting system and with some additional statistic(s), and gave limited and delayed information on management performance. Previously, data had to be separated individually by the people as per the requirement and necessity of the organization. Later, data was distinguished from information, and so instead of the collection of mass of data, important and to the point data that is needed by the organization was stored. Earlier, business computers were mostly used for relatively simple operations such as tracking sales or payroll data, often without much detail. Over time, these applications became more complex and began to store increasing amount of information while also interlinking with previously separate information systems. As more and more data was stored and linked man began to analyze this information into further detail, creating entire management reports from the raw, stored data.

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Management Information System A management information system (MIS) is a system that provides

information needed to manage organizations effectively. Management information systems involve three primary resources: technology, information, and people. It's important to recognize that while all three resources are key components when studying management information systems, the most important resource is people. Management information systems are regarded as a subset of the overall internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems. The term "MIS" arose to describe kinds of applications, which were developed to provide managers with information about sales, inventories, and other data that would help in managing the enterprise. Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support systems, resource and people management applications, Enterprise Resource Planning (ERP), Enterprise Performance Management (EPM), Supply Chain

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Management (SCM), Customer Relationship management and database retrieval applications.

Management (CRM), project

The terms MIS and information system are often confused. Information systems include systems that are not intended for decision making. The area of study called MIS is sometimes referred to, in a restrictive sense, as information technology management. That area of study should not be confused with computer science. IT service management is a practitioner-focused discipline. MIS has also some differences with ERP which incorporates elements that are not necessarily focused on decision support. The successful MIS must support a business's Five Year Plan or its equivalent. It must provide for reports based upon performance analysis in areas critical to that plan, with feedback loops that allow for titivation of every aspect of the business, including recruitment and training regimens. In effect, MIS must not only indicate how things are going, but why they are not going as well as planned where that is the case. These reports would include performance relative to cost centers and projects that drive profit or loss, and do so in such a way that identifies individual accountability, and in virtual real-time. Anytime a business is looking at implementing a new business system it is very important to use a system development method such as System Development Life Cycle. The life cycle includes Analysis, Requirements, Design, Development, Testing and Implementation.

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Enterprise Applications

Enterprise systems, also known as enterprise resource planning

(ERP) systems provide an organization with integrated software modules and a unified database which enable efficient planning, managing, and controlling of all core business processes across multiple locations. Modules of ERP systems may include finance, accounting, marketing, human resources, production, inventory management and distribution.

Supply Chain Management (SCM) systems enable more efficient management

of the supply chain by integrating the links in a supply chain. This may include suppliers, manufacturer, wholesalers, retailers and final customers.

Customer Relationship Management (CRM) systems help businesses

manage relationships with potential and current customers and business partners across marketing, sales, and service.

Knowledge Management System (KMS) helps organizations facilitate the

collection, recording, organization, retrieval, and dissemination of knowledge. This may include documents, accounting records, and unrecorded procedures, practices and skills.

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There are many types of information management systems in the market that provide a wide range of benefits for companies.

Transaction processing systems (TPS) collect and record the routine transactions

of an organization. Examples of such systems are sales order entry, hotel reservations, payroll, employee record keeping, and shipping.

Management information systems (MIS) produce fixed, regularly scheduled reports

based on data extracted and summarized from the firms underlying transaction processing systems (TPS) to middle and operational level managers to provide answers to structured and semi-structured decision problems.

Decision-support systems (DSS) are computer program applications used by

middle management to compile information from a wide range of sources to solve problems and make decisions.

Executive support systems (ESS) is a reporting tool that provides quick access to

summarized reports coming from all company levels and departments such as accounting, human resources and operations

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Information System used at Heinz India Aligarh Facility Location

SAP(Systems, Applications and Products in Data Processing)
SAP was founded in June 1972 as Systemanalyse und Programmentwicklung ("System Analysis and Program Development") by five former IBMengineers in Mannheim, Baden-Wrttemberg (Dietmar Hopp, Klaus Tschira, Hans-Werner Hector, Hasso Plattner, and Claus Wellenreuther). As part of the Xerox exit strategy from the computer industry, Xerox retained IBM to migrate their business systems to IBM technology. As part of IBM's compensation for the migration, IBM acquired the SDS/SAPE software, reportedly for a contract credit of $80,000. The SAPE software was given by IBM to the founding ex-IBM employees in exchange for founding stock provided to IBM, reportedly 8%. Imperial Chemical Industries (ICI) was SAP's first ever customer in 1972. The acronym was later changed to stand for Systeme, Anwendungen und Produkte in der Datenverarbeitung ("Systems, Applications and Products in Data Processing"). SAP focuses on six industry sectors: process industries, discrete industries, consumer industries, service industries, financial services, and public services. It offers more than 25 industry solution portfolios for large enterprises and more than 550 microvertical solutions for midsize companies and small businesses. SAP's products focus on Enterprise Resource Planning (ERP). The company's main product is SAP ERP. The other four applications are:

Customer Relationship Management (CRM) helps companies acquire and

retain customers, gain marketing and customer insight

Product Lifecycle Management (PLM) helps manufacturers with productrelated information

Supply Chain Management (SCM) helps companies with the process of

resourcing its manufacturing and service processes from suppliers.

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Supplier Relationship Management (SRM) enables companies to procure

SAP(Systems, Applications and Products in Data Processing) at Heinz India Aligarh Facility
Globalization. Escalating costs. Ever-changing customer preferences and retailer and regulatory requirements. To thrive in this environment, consumer products manufacturers must develop new ways to become more consumer-driven and stay ahead of the competition, while further establishing a foundation for profitable growth. With its industry-specific processes, best practices, and technology, SAP for Consumer Products serves as a business process platform, enabling innovation of your core business processes.

How Does SAP for Consumer Products Drive Business Improvements?

SAP's comprehensive suite of applications, integrated with leading business support and analytical software, enables you to optimize key end-to-end business processes and achieve key business goals:

Best people and talent Workforce and talent management processes enable you to spend less time on administration and more time on high-value activities.

Financial excellence Financial performance management processes help you reduce operating costs, drive business performance, and mitigate risks.

Differentiated consumer marketing Marketing processes enable you to deliver coordinated, compelling, and differentiated programs to your customers and consumers.

Product and service leadership Product innovation processes enable you to be the first to market with products that consumers want.

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A responsive supply network Supply chain management and manufacturing processes that improve your ability to respond faster and more profitably to demand and supply dynamics.

Superior customer value Sales and service processes enable you to link global strategies to customer program execution, driving profitable long-term customer relationships.

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Financial Performance Management at Heinz India Aligarh Facility

Achieving financial excellence and becoming a more effective partner in business when one can leverage resources, people, and technology to focus on ones most critical business requirements: reducing operating costs, driving business performance, and mitigating risks. SAP at Heinz India Aligarh facility supports a full range of financial processes, including:

Operational finance Optimize working capital through more effective

management of sources and uses of cash and liquidity. Streamline accounts receivable, accounts payable, and cash management processes decreasing days sales outstanding (DSO) and costs, accelerating cash flow, and improving the return on invested cash.

Financial close Streamline, automate, and standardize labor-intensive tasks

such as closing journal entries, accruals, intercompany reconciliations, and consolidations to improve scheduling, visibility, and control and enable faster cycle times, greater accuracy, improved compliance, and lower operating costs.

Financial analytics and reporting Give your business users the information
and analytical tools they need to conduct value-added analysis and make recommendations to business units that support strategic decisions and take advantage of economic opportunities.

Enterprise performance management Provide optimal control and

empower all stakeholders to respond quickly to dynamic business conditions and opportunities with capabilities for effective modeling and analysis of cost drivers, profitability, and corporate spending, as well as accurate planning, forecasting, consolidation, and reporting of financial resources.

Risk and compliance management Proactively align, automate, and

monitor key risks and controls including commodity risk to maximize strategic and operational effectiveness, improving business predictability and enabling sustained profitable growth and business excellence across the enterprise.

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Plant Finance Efficiency

Budgeting Planning

Schedule Production/

Procurement (purchase)

Request for Quotations

Quotations

P.O (Purchase order)

Materials

Factory Stores

G.R.N(Goods Receipts Note)

Quality Assurance Department

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Plant Finance

Introduction to Plant Accounting

Plant Accounting comprises two words that is PLANT and ACCOUNTING. Firstly, PLANT have so many meanings but here, PLANT mean a unit that is established in ALIGARH for manufacturing purpose. Secondly, ACCOUNTING is the language of business because it is through accounting that various monetary matters related with business are communicated. According to American Institute of Certified Public Accountants ( AICPA),:-Accounting is the art of recording , classifying and summarizing in a significant manner and in terms of money, transactions and events which are of a financial character and interpreting the results thereof. Really speaking, Accounting is art as well as science of recording, classifying and summarizing of business transactions which are of a financial character and are expressed in terms of money for fulfilment of certain objectives. It also includes analysis and interpretation aspect of the recorded information. In simple Accounting is Book-keeping. Book-keeping is art as well as science of recording business transactions of an individual, firm, company, corporation, and other association of persons and institutions in a certain prescribed rules and regulations on the basis of some definite system for fulfillment of certain objects. Lucia Pacioli, who was resident of Benice (Italy), is regarded as the founder of Book-keeping. His book De Computiset Scripturise was published in 1494, which is regarded as the first book on Book-keeping. In simple, PLANT ACCOUNTING is recording of information in monetary terms, in a manufacturing unit that is established in ALIGARH.

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Objects of plant Accounting

1-Main objects are:-

To know profit or loss of Business for a certain period. To know the assets and liabilities of the Business at a particular date. To know about the progress or downfall of Business. To know as to what amount is to be paid to a particular person or what amount is to be received from a certain person on a particular date. To the case of the companies to comply the provisions of the Companies Act, 1956 as under this Act it is compulsory for the companies to maintain accounting record.

2-Other objects:-

To know about the position of goods. To know the position of cash. To know about the errors and frauds of employee. To have detailed information about capital employed in the business. To satisfy the taxation authorities. To know the requirements of business at a particular time. To make estimates for future.

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Users of Plant Accounting Information

Following chart indicates various types of users of Plant Accounting Information that utilize information in best manner:-

Users of Plant Accounting Information

Internal users

External users

Proprietor Management Employees

Investors

Creditors

Government

Consumers

Foreigners

Research Scholars

Other Persons

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Functions of Plant Accounting

Following functions are given below: To Record Business Transactions To Indicate Earning Capacity And Financial Position To Satisfy Govt. Officers To Comply Legal Requirements To Assist Management To Protect Assets To Depict True And Fair Position

PLANT ACCOUNTING is a Book keeping, i.e. Record of a Unit which is established in Aligarh and It is Heinz Pvt. Ltd. It is FMCG Company and the owner of this company is H.J.Heinz.

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Flow Chart

Planning

Purchase Department

Request for Quotation

Purchase order

Quotation Screening

Material Received

Quotation Finalization

Checking by FSU

Factory Store

GRN in SAP by 103 movement

GAN by Quality Assurance Department

Material Passed / Approved Issue to Production

Invoice Finance Department Bill Process and Others

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Payment to Vendor

64

Planning Department
Planning & Control has become the primary function of management these days. Most of the planning relate to individual proposals According to this production required raw materials purchase with this following procedure: Make a list for required raw material with the help of indent. Check with shortage department. Planning is a main department of any organization. Planning is decided the future needs and demand. According to future plan, needs and demand company purchase raw material, estimate required fund, make budget. Make target according demand of product in market the manager select the target. After that they make a budget. 1. Sales Budget: - The budget of forecast total sales in terms of quantity, values, items, periods, areas etc. 2. Production Budget: - The budget is based on sales budget. It forecast quantity of production in terms of item, periods, areas etc. 3. Purchase Budget: - The budget forecasts the quantity & value of purchase required for production. It gives quantity-wise, money-wise & period-wise information about the materials to be purchased. 4. Cash Budget:- The budget is a forecast of cash position by time period for a specific duration of time. It states the estimation amount of cash payment receipt and the estimation of cash payment and the likely balance of cash in hand at the end of different period.

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According to step by step they make a budget and make whole things and procedure in advance .If any disturbances that create a problem. And make final purchase requisition.

Purchase Requisition: - It is a slip which contains required material list with other
specification ---1. 2. 3. 4. 5. 6. Purchase requisition should be clear Required product name Product quantity Product quality Time Terms & Conditions And send it in purchase department

Problem in Planning and Control Department: If the estimated product is more than requirement than they create a problem. If any wrong details about payment procedure that create a delay in payment at a time. If the target is not accurate like demand is more and supply is less than thats create a problem and company going in loss. In all the condition if the company bearing loss. Than they are not fulfill all payments or time and property. No accurate/proper idea about inventory material in factory store. Less coordination with other department. If planning is not accurate about purchase of raw material, required time limit, forecasting etc.

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Prepration of Indent, PR, PO

After planning in planning department purchase departments duties and responsibility arise means purchase department forecast the demand of FMCG product and they check that material is available in stores or not .If the requirement of goods is available in stores so they can received goods from factory stores. It the required material is not available in stores then they purchase department prepare indent Firstly we have to understand what is indent.

Indent
It is a slip, which contains the required material with standard quality and quantity and time and make after singing of H.O.D of concern department it complete. Indent signed by H.O.D send to engineering on behalf of the indent slip.

Purchase Requisition
After issued the indent slip user send the indent in store and storehouse workers check the requirement of the user and issue the purchase requisition.

PROBLEMS IN PURCHASE DEPARTMENT: Standard may be incorrect and wrong. Writing problem. Misprinting. If H.O.D not present than delay in signing. Misplacing in sending to planning department

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Flow in Preparing of Indent, PR, PO

USER INDENT STORES PLANNING PURCHASE REQUSITION DEPARTMEN T PURCHASE DEPARTMENT
DEPARTMENT REQUEST

PROPOSAL VENDOR 1 VENDOR 2 VENDOR 3

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PURCHASE ORDER
Purchase department raised a purchase order (P.O.) when they accept or get purchase requisition that they make a request for proposal

Request for proposal: Request for proposal is a slip which contains information about material quantity and required time for product. This is making for vendors quotation and this is a pre stage for making purchase order.

This request for proposal sends to specific vendors. (3- 4Parties ). When the vendor receipts this request for proposal than they send quotation.

Quotation: Quotation is a type or rate list of required material and make by the vendors according to standards of required material.

Purchase department get quotation and then select it in following way Purchase department may be negotiating with vendors on the basis of quotations. Then purchase department make a purchase order.

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It is a Document which is made by purchase department and sends to selected vendor or vendors. It contains

* Purchase order no * Vendors full name and address * Delivery address * Delivery time * Terms and conditions * Standards * Product quantity * Product quality * Specified time * Product rate * Tax code/ rate * Made of payment * Payment credit period * Payment place * Transportation name and address * And many other information

All the fields are properly checked by purchase department and send to vendors by post. Purchase department make its entry in S.A.P. system of Heinz India Private Limited.

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Terms and Conditions for Purchase Order

1. Quantity
The supplier will be responsible for any shortage / pilferage / leakage at any point / time prior to receipt of goods by the buyer. The supply quantities shall be strictly within the tolerance allowed and any quantity beyond this limit will not be accepted, without approval from Purchase Department. For Raw and Packing Materials, tolerance is 5%. For other materials tolerance is 2%. 2. Prior approvals has to be taken in case of developmental works before commercial supply such as in Printing Plates making, Printing Cylinder Development, Die & mould making, etc.

3.Qulity Inspection and Rejection

The goods shall be in accordance with the sample and/or satisfy our specifications fully. All goods delivered are subject to our inspection and approval before acceptance, and all goods rejected for inferior quality and/or failure to satisfy our specifications / samples / drawings will be returned at the supplier's expense. The supplier will have to make its own arrangements to remove the rejected materials at its own expense either from the buyer's factory or from any other place of storage. Till they are not removed, the rejected materials will lie entirely at supplier's risk and responsibility. Replacement of such defective goods shall be dispatched with in 48 hours from the receipt of information of rejection. Materials received after the physical verification will be further subjected to Quality Inspection and the rejects on this account along with that rejected online while on packing will be intimated to the vendor for replacement or cost debited to the vendors account depending on the quantity of rejection.

4.Packaging
i. Goods must be securely packed to withstand all hazards up to the destination. ii. The net weight/length/numbers and batch number/item name should be marked clearly and conspicuously on each container / package iii. In case of Ex-Godown / F.O.B deliveries the vendor will be responsible for transit worthy packaging of goods to eliminate any chance of pilferages

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5. Delivery
In the event of delivery not being effected by due date mentioned in this order, the buyer shall have the rights to impose a penalty & 0.5% per week on the total value of the ordered items. The buyer also reserves the right to make alternate sourcing and the cost differential, if any, along with the additional transportation costs will be debited to the vendor's account. Buyer has the right to refuse acceptance of the material in case of delayed delivery. If the consignment cannot be delivered within the delivery date mentioned in this order, the vendor can inform the buyer in writing 15 days in advance of the scheduled delivery date quoting reasons for such delays. If the reasons are found to be acceptable, extension of delivery time will be granted, otherwise we will make alternate sourcing arrangement.

6. Documentation
Along with the consignment to the destination:a) Duplicate copy of the Excise Commercial Invoice / Gate pass cum Invoice depending on applicability of Excise Duty (Original invoice must be sent to person raising purchase order) b) Original copy of Challan mentioning the item, quantity, rate and Purchase Order no. c) Certificate of Analysis is a must along with the consignment for the applicable material without which, the consignment is liable for rejection. d) RR/AWB.LR in case of Domestic vendors clearly mentioning the consignee / destination and the company name. e) Duplicate copy of the Road permit / Waybill duly endorsed by the sales tax authorities at the check post, where ever road permits / waybills are applicable f) The equipments and spares are to be guaranteed / waranteed for the maximum period from the date or receipt and shall be replaced along with replacement cost in case of premature failure within the warrantee/guarantee period.

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7. Security:
All designs / drawings / patterns / artworks etc provided by the buyer will remain sole property of the buyer and shall be maintained securely by the vendor and shall not be used for any other purpose than authorized by the buyer. These are to be returned to the vendor immediately on completion of the work without tampering.

8. Statutory & Legality:

Whenever the prices charged by you includes excise duties whether or not shown separately in the invoice you shall furnish a Gate Pass clearance invoice in support of such payment of any other permitted document in accordance with the excise law to enable us to claim set off of such amount under the Modvat CENVAT scheme wherever available or failure to furnish such document will entitle us to deduct the appropriate excise duty amount from your payment. In the event of your subsequently - obtaining a refund of the whole or any part of such taxes, duties etc. concerned tax authorities for any reason whatsoever, you shall be liable to forthwith refund to us such amount of refund without our having to make any claim on you in this behalf. The materials to be supplied under this purchase order shall comply with all the local legislation and regulations.

9. Jurisdiction:
Any dispute arising out of this contract shall be subject to the Jurisdiction of courts having jurisdiction over the area where the buyer's registered office is situated.

10. Pending Orders:

Delivery challans/ invoices should be raised as per pending orders. Separate challans / invoices should be prepared for separate pending orders.

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Role of FSU
F.S.U (Factory Service Units):-

ALL MATERIALS

Factory

EXAMINATION

FACTORY SERVICE UNIT (FSU)

NON INFESTED

INFESTED

CHAMBER

INSIDE FACTORY

NON INFESTED

Heinz has a wide range of products, which are mainly the food products. The Co. has F.S.U., which mainly looks after the hygiene delivery of goods INTO the factory is located. Its functions are as follows:

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 Cleaning the production units, machines, Godown and Other places in the factory. Pests control and infestation control. To provide fumigation to the raw material and packed Products. Maintaining temperature for different goods. Maintaining account for incoming and outgoing materials. Examination of every material Truck or Vehicles carrying material is conducted by FSU according standard parameters to curb infestation. chamber is a place where infested material is made disinfested.

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Role of Quality Assurance Department

When the material enter in the company firstly cleaned in FSU and then match the sample with bulk quantity by the Q/A department, if the bulk quantity is according to specimen and the term and condition, then the quality assurance department will prepare GAN . After that information record is in Factory stores.

HEINZ INDIA PRIVATE LIMITED is committed to: Procurement , Development , production and Marketing of safe clean wholesome foods of high quality , keeping focus on needs of customer by establishing and maintaining proper facilities necessary for controlled production consistency in a sanitary manner , so as to ensure that customers confidence is generated and maintained consistency.

Establishing and Maintaining appropriate operating and monitoring procedure necessary for controlled production and every person is responsible for product integrity and safe guarding quality environment competent to carry out his responsibilities.

Achieving high safety, occupation health and environment standards establishing internal review procedures to ensure compliance of applicable laws and regulation.

Its main functions are: Maintenance of quality assurance department and lab equipments. To conduct quality test of raw material and Packaging materials.

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QA / Department:-

It is a quality assurance department that checks specified quality of product. If the product is up to mark with required quality than that check and give the code is -105. And if reject than give the code 124 and get to vendor. Goods accept after only the checking of quality department. Any rejection in Q/A assured product is going on vendor and gave code is 122.

Material

Factory receive note 103 Goods acceptance note 105 Finance

Check invoice for quality department and factory receive note.

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Record in Factory Store

Factory Store Department has record of the inventories which are stock of the product. A company is manufacturing for sales of goods and use to make up the product.

HEINZ INDIA PRIVATE LIMTED`s factory store have record of inventories which is used to make COMPLAN , GLUCON D , are categories in various form : Raw material Packaging material Rolling on General consummerable goods

RAW MATERIAL: - It includes Dextrose Menobydride, maltrodexprin, sugar, flavor

vitamins, R& D.

PACKAGING MATERIAL: - Corrugated folded cartons, Laminates, Bags ,R & d

material.

ROLLING ON : - It include the ingredient which is used to make the Complain

,Glucon D as CCPM, Infant milk powder ,Phrased modified oil after pressurization of milk by using rolling dryer & spray dryer technique.

GENERAL CONSUMERABLE GOODS: - It include clearing agent (H2SO3, HCL,

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Cystic soda ) ,uniform, stationary & other welfare articles.

From INPUT to OUTPUT

Incoming Material

Raw material

Packing material

Packing material

Production

RPU

Canteen item Finished goods

Stationery & Other

Finished goods store

If any estimation of product is not accurate and the requirement is less the supply than extra product payment is extra may be delay. If any wrong details about payment producer that create a delay in payment at a time

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Process of Working in Factory Store of Heinz India Pvt. Ltd.

Firstly Factory Store receives the material from the Gali house and match the material from Purchase order. PCI (Pest Control India) check the material to find out the consignment, is infested or not an issue White /Red /Green slips. Material is fumigated in quartine chamber , if infested : (Refer Annexure-B) WHITE SLIP- It shows the clearance of material from PCI.

RED SLIP- It shows the chance of infestation in material? Fumigation is

required for material.

GREEN SLIP- This slip is given when material is returned to the supplier due
to infestation. Now material reach document to the factory store & factory store check all the

As : Excise Invoice. Form 31 / Form C & any Laves Form. Goods Carrier Note In Factory Stores material is unloaded in designated place /Godown : According to the nature of the material. According to the quality of the material. Factory Store checks the material `s quality at the time of receiving of Goods. If material`s quality is according to the purchase order and everything is ok , Factory stores make GRN ( Goods Received Note ) and make the entry in SAP software and give a code to this entry in 103 movement. Factory store make 3 copies of GRN : For Purchase department. For Self. For supplier.

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 Factory stores make the GRN for : Raw Material & Packaging material. General Consummerable goods.

In case of General Consummerable Goods, Quality Assurance Department does not check the goods i.e.; it is directly sent to the supplier.

In case of Raw & Packaging material , after checking & receiving the material by Factory stores , Quality Assurance Department check the quality of the material : If the material is according to our standard, they make GAN (Goods Acceptance Note) and make the entry of this in SAP and give a code to this entry in 105. If the quality of material is not according to our standard ,quality Assurance Department having a right to reject this and make the entry of rejection in SAP & give a code to this entry in124 movement. In case of rejection, the amount of rejected material is adjusted in other consignment or makes Credit Note for supplier. Credit note- It is note which is made for supplier to return the amount and in case of excess of material. In this condition supplier is Creditor of the company.

Any damage / Shortage is recorded in consignment, note is written on delivery challen of the supplier and company is obtained a damage / shortage certificate from the transports / driver of the truck. In case of damage / Shortage, company`s planning & stock control Department is informed for the insurance survey before making GRN. Material in excess of the capacity is returned to the supplier / has to be seggrated for fault are diverted to the city / Godown. If the material is returned to the supplier , company make the Material return report and make 4 copies of this: For supplier.

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For Account Dep. For Factory Stores. For Purchase Dep. HEINZ INDIA PRIVATE LIMITED use FIFO (first in first out) method of pricing of material i.e.; which material is come first in stores, is issued first. When it is not finished, other purchased material cannot issue. HEINZ INDIA` s store Dep. does all the transaction in MIGO. If the material and other inventories send to other heads / dep. from factory stores , Foreman of dep. make the Material Requisition Slip and send to the factory stores.

Problem in Factory Stores Material comes according to lot size. Order quantities do not match with purchase order. Tax code problem. Vendor name is misprint and unclear. Expenditure control procedure. Connectivity Problem. Data is not entering at the time of receiving of material. Misprinting problem. Typing Problem.

Suggestion for Factory Store Material purchase after making Purchase order. Factory manager having limit but increase its limit size. Make entry at the time of receiving. Improve the system efficiency of this system.

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Function of Finance management in H.O.

Estimating the requirement of funds Decision regarding capital structure Investment decision Dividend decision Cash management (Supply of funds to all parts of org.) Evaluating financial performance Financial negotiations Obtaining funds at the lowest cost Making optimal use of these funds Capital expenditure requirement Payment of row materials /purchase materials /expenditure capital expenditure /payroll. Keeping touch with stock Exchange Quotation and behavior of share price.

Characteristics/Nature of financial Management

1.) 2.) 3.) 4.) 5.) 6.) 7.) Financial Planning & Control Essence of management Decision Financial Management is a Scientific & analytical analysis Continuous administration function Centralized nature Basic of a management process A measure of performance

Areas/Scope Financial Management

1.) 2.) 3.) 4.) 5.) 6.) 7.) 8.) Determining financial needs Choosing the sources of funds Financial analysis and interpretation Cost value profit analysis Capital Budgeting Working capital management Profit Planning and control Dividend Policy.

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Financial Management Process

Financial Planning and Control

Feedback
Financial Decision: 1.) Investment Decision 2.) Financial Decision 3.) Dividend Decision Risk and Return Characteristics Of the firm Market Price of Share Po Shareholder Wealth Wo = NPo

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Finance Department in Payment and Proceedures

Finance department play a main role in payment system. All the payment related activity moving surrounding to the finance department so finance department play very important and significant role in payment system.

Main function of finance department:

Fund management and budgetary control Purchase and sales account control

Statutory and audit compliance Wages administration Revenue budgeting and sending it to the main corporate office Approve the purchase Check the proper document and invoice of the supplier. Estimation of taxes sales tax, service tax income tax excise duty, Mandi samiti tax.

Payment of raw material / purchase material expenditure capital expenditure / payroll.

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Short Term Finance Policy

Introduction
Working capital management or short term management, which decision relating to current assets and current liabilities Short term finance decision typically involves cash flows within two years or within the operating cycle of the films. There are two working concepts of capital: gross working capital is the total of all current assets. Net working capital is the difference current liabilities. The importance of working capital management is reflected in the fact that financial managers spend a great deal of time in managing current assets and current liabilities. Arranging short term financing negotiating favorable credit terms, administering accounts receivable and monitoring the inventories consume a great deal of time of financial managers .

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Construction of Current Assets and Current Liabilities

Part A :Inventories Raw materials and components Work in process. Finished goods Others Trade debtors Loans and advance Investments Cash and bank balance Sundry creditors Current Assets

Part B :

Trade advance Borrowing Commercial banks. Others. Provisions.

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Payment System
Check the entry in S.A.P. by purchase department factory store and quality assurance department Match with invoice which given by vendor with goods Check details like tax code, address, vendor name delivery address, originality of invoice, purchase order no., date, If the payment amount is less than purchase order amount than finance manager for payment of this invoice. And if the invoice payment amount is more than purchase order amount than finance manager does not allow for payment of this invoice. Individually and properly check all the entry by finance manager in detail before clearing a payment.

INVOICE: It is a legal document for any company. It is a slip which contains the const/ rate invoice is a type of bill and send by the vendor/ supplier. It is important for payment and other work. Its characteristic are 1. 2. 3. It should be original Send by the vendor when they place goods It should having proper elements a. Purchase order no. b. Delivery date c. Purchase date d. Rate e. Vendor Name f. Delivery place, g. Transportation name and address h. Company name, i. Specified product name, j. Include all taxes k. And other terms and condition All the entry is correct and clearly mention.

4.

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Problems:
If invoice is not original, photocopy or duplicate

If not having any one of them element which is shown above.

If payment rate is more than purchase order rate

If having any incorrect entry

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Department Related with Payment System

Engineering/ User Department

Planning Department

Purchase Department

Factory Store

Quality Verification Department

Finance Department

Payment

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Mode of Payment
After verify the invoice /bill the finance manger has right to make payment with different mode of payment, generally payment through at par Cheque.

According to Income Tax Act under section 40(a) (3) the payment through the cash of not more than Rs 20000/-.

PAYMENT

Traditional

Modern

CASH

CHEQUE

B.O.E.

NEFT

RTGS

Cash: Cash payment means direct payment in monitory terms. Cash payment is avoided in Heinz But still used @ 2% o In less amount o Urgent payment

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 Cheque:

Cheque is a bill of exchange drawn on a specified banker and payable on demand (see 6 of negotiable instrument) It is species of a bill of exchange with two additional qualifications o It is always drawn on a specified banker o It is always payable on demand 90% payment is done by Cheque in Heinz India Private Limited (Aligarh unit) Crossing of Cheque: When a Cheque bears across its face two parallel transverse line, the Cheque is said to be crossed The payment of a crossed Cheque can be obtained only through another banker The crossing may be general, special or restricted In case of not negotiable crossing the title of the transferee can be better than of transferor A cheque may be crossed by the drawer, or the holder or the banker Bill of Exchange:

A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to order of a certain person or to the bearer of the instrument (Section 5 of negotiable instrument). Parties to a bill: There are three parties to a bill of exchange 1. 2. 3. Drawer Drawee Payee

Drawer: A person who gives the order to pay or who makes the bill is called

Acceptor: When the Drawee accepts the bill, he is called acceptor

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Drawee: The person who directed to pay is called the Drawee.

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the drawer.

Payee: the person to whom the payment is to be made is called the payee Bearer: When the payee name is in a bill is a fictitious or non existing person, the bill is treated as a payable to bearer In some cases, the drawer and the payee, or when a principal draws and the Drawee may be one and the person. The drawer of the payee who is in possession of the bill is called the holder. The holder must present the bill to the Drawee for his acceptance. Endorser: When the holder indorses the bill, note or cheque to another he is called the endorser. Endorsee: The person to whom the bill note of cheque is indorsed is called indorse Essential element: o o o o o o o o It must be in writing It must contain an order to pay It must be unconditional It requires three parties - drawee, drawee, payee It must be signed by the drawer The sum payable must certain It must contain an order to pay money The formalities relating to number date place and consideration, through usually found in bills are not essential in law

A bill as originally drawn cannot be made payable to bearer on demand. Normal format of bill of exchange.

Rs 5,000

Bombay June 10/2007

To

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Three months after date pay to Ram or order the sum of five thousand rupee, for value received

EFT(Electronic fund Transfer): It is a modern technique by which money send one bank to another bank with the help of internet in a short period of time. This technique is implemented by Heinz India PVT.LTD. It is a easy and secured way of transferring money. Less time consuming. In this way we send the information of payment to bank and bank transfer the money in vendors account directly.

RTGS (Real Time Gross Settlement ): It is same like EFT but having a small difference is that it is used when the companys bank and vendors bank both are different ,then a reputed bank make as a mediator in between two bank and help in transferring money this process is called RTGS. Company makes payment all over India by the help of this new technology.

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The Study: (Part- B)

Objective of Study:
A Study of the SAP Design and Implementation in the Finance and Accounts Section of the Aligarh Manufacturing Facility of M/s Heinz India Pvt. Ltd.
i. S.A.P. for Accounting and Finance ii. Entry Pattern of Accounts in Heinz India iii. Functions of Store in MIRO iv. Payment Procedure. v. Annexure-A vi. Annexure-B vii. Format of Invoice (example Heinz Indias Invoice)

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S.A.P. at Heinz India, Aligarh Manufacturing Plant

Heinz India Private Limited is a full computerized company. The company used very advance. Application software, name S.A.P. (System, analysis and process). The using S.A.P. Company makes accountability and responsibility and employees do their work very quickly. All the clerical work done through S.A.P.

S.A.P. was developed I 2000 in Heinz India Private Limited, Aligarh. The company used its 40B version. It is based on standard costing. Its monitored and controlled by head quarter in Mumbai.

Advantage of S.A.P.
1. Warning system. 2. Online. 3. Fast service. 4. Losing paper work. 5. Easily handle. 6. Visibility. 7. Full data available. 8. Nothing is deleting only edit.

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SAP as Recording Tool in the Company

System Analysis and Process (SAP) is ERP software package, while Heinz India Private Limited is full-computerized company and it use SAP as recoding tool for all the information and data with specified SAP number. SAP was developed in 2000 in Heinz India Private Limited, Aligarh. The Company used its 40B version. It is monitored and controlled by head quarter in Mumbai.

Example of SAP Entry:

Material SAP Entry

Eng. Stores

Goods Receivable Note (GRN)

103

Q... verification

Goods Acceptance Note (GAN)

105

Rejected Goods/Material

124

Finance Department

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103:
Material supplies by vendor to company is check for the quantity at the time of receiving of goods by stores department and makes goods receivable note (GRN) and make an entry in SAP system of the received material / assets and it provided a code in SAP as 103.

105:
After receiving the material it provided to Q.A. department to check the quality of received goods according to the standard of the company and then makes a goods acceptance note (GAN) and makes an entry in SAP with code 105 and Rejected goods which has not standard quality has coded in SAP with 124. The Excise Credit also provided to the goods/material in SAP with 105 at the time of making GAN.

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Entry Pattern of Accounts in the Company

All the entries of accounts of the company are processed through MIRO. MIRO is a transaction by which all the entries are to be made in the SAP.

Transaction Pattern in MIRO is as follows:

User/Engineering Department WIP (work in progress) GR/IR Basic Excise Duty Aligarh Cenvat Clearing Finance Department GR/IR Aligarh Cenvat Clearing Vendor Final Stage (Ready to Use) WIP Assets (e.g. Turbine) Cr. Dr. Dr. Dr. Cr. Dr. Cr. Dr. Cr.

Note:-In SAP System the entry pattern of accounting is done with the symbol of Negative () and

Credit (Cr.)

()

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positive (+) for credit and debit respectively; it defined as follows:-

Debit (Dr.)

(+)

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Function of STORE in MIRO

Similarly MIRO is also one of the transactions in SAP, which is used by the finance personnel to process the bill to make payment for the vendor. All the obligatory heads of in voice covered in MIRO of invoice like calculation of tax, TDS and freight charges.

MIRO means Invoice verification, which is comes from vendor for 3rd party sales processing.

MIRO transaction will use for making payment to the vendor generally we can say posting of invoice. In SAP, the moment you save the MIGO transaction, it automatically generates FI document. It will create following entry:Raw Material Stock A/c To GR/IR Clearing A/c Dr.

Cr.

In MIGO transaction itself, you can post Excise by choosing Capture and Post Excise Invoice. The FI document will be as follows:RG23A Basic Excise Duty A/c RG23A Education Cess A/c To CENVAT Clearing A/c Dr. Dr. Cr.

After doing MIGO, you execute MIRO. In this transaction also, SAP will generate FI document automatically. The entry will be as follows:GR/IR Clearing A/c CENVAT Clearing A/c VAT Setoff A/c To AP-Vendor A/c Dr. Dr. Dr. Cr.

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Reversion of entry of material purchase can be in entered on rejection of material partially or wholly. In this case, you will have to raise a debit note on the vendor. But before raising debit note, you have to first ensure that the Invoice verification of the material (to be rejected) is complete at the time of purchase. Purchase documents cannot be reversed directly like pure financial document entry. To reverse the material document, following procedure should be followed.

1) Create Return Delivery (MIGO) 2) Reverse the Excise Duty Posted (J1IS) 3) Raise the debit Note. (MIRO)

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Payment Procedure

CONCERN DEPARTMENT

PLANNING AND CONTROL DEPARTMENT

PURCHASING REQUISITION

PURCHASING DEPARTMENT REQUEST FOR PROPOSAL VENDORS VENDOR

QUOTATIONS PURCHASE ORDER

INVOICE

MATERIAL FACTORY STORE Q/A DEPARTMENT 103 105

FINANCE DEPARTMENT BANK PAYMENT

CASH

CHEQUE B.O.E NEFT RTGS

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Annexure A

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Annexure- B

White Slip
FS-F-XX Rev No.XX

Truck/Material Clearance Slip

Heinz India

From: PEST CONTROL UNIT, ALIGARH To : FACTORY STORES, ALIGARH Date:

Please note that material.received from M/s. by Truck No...Dispatched by Truck No..by transporter M/s. Has been checked and found O.K Extraneous material Transshipment Yes/No. Signature

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Red Slip
FS-F-XX Rev No.XX

Truck/Material Clearance Slip

Heinz India
Sl. No. From: PEST CONTROL UNIT, ALIGARH To : FACTORY STORES, ALIGARH Date:

Please note that material_______________________________________________ Dispatched by Truck No._______________________________from_____________ by_________________________________________________________________ Received in truck No.___________________________________________________

Green Slip

Has been checked and found slightly infested/heavily infested/100% fumigated Sl. No. Observation of extraneous material:
FS-F-XX

Transshipment

Yes/No.

Rev No.XX

No. of cases/bags cheked___________________________intested found___________ From: Pest Control Unit, Aligarh To : Factory Stores, Aligarh Date: ___________ Signature

Please note that material_______________________________________________ Dispatched by Truck No._______________________________from_____________ by_________________________________________________________________ Received in truck No.___________________________________________________ Has been checked and found slightly infested/heavily infested/100% fumigated Observation of extraneous material: Transshipment Yes/No.

___________ Signature

Page

No. of cases/bags cheked___________________________intested found___________

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FORMAT OF INVOICE WITH EXAMPLE OF HEINZ INDIA `S INVOICE

Authentication. For Firmenich Aromatics (I)Pvt Ltd. Invoice No : 51091234 DT. & Time of preparation of Invoice :17:13hrs , 20 /06 /2008 DT. & Time of removal : 20:30 hrs , 20 /06 /2008 Date : 20/06 / 2008 In word : TWENTY THIRTY HRS. Range : II ,Above Prakesh Guest House Somnath Road, Daman 396210 Division : North Daman , Sunrise Appt. 1st floor, Vapi Daman Road ,Dhabel,DAMAN E.C.C.No :AAA CF 1621MXM002 Commissionerate : DAMAN C.S.T.No. : DA/CST/4028 w.e.f. 01-04-1997 S.T.No. : DA/4534 TIN25000004534 Firmen ich MARKETING ACCOUNT EXTRA TAX INVOICE Name & Address of Consignee HEINZ INDIA PVT . LTD. MANZURGARI ALIGARH P.O BOX NO. 1 ALIGARH ,U.P. 202001 S.T.No.GB 0470995 TIN 09889001759 C.S.T.No.GB 5372020 ECC No. AAACH0667BXM001 FOR INDUSTRIAL USE : FLAVOUR/PERFUME FREE FROM ALCOHOL Order No. 1000108 Date 10 /06 /08 Date

Reged Office:Firmenich aromatics (India)Pvt.Ltd. 74/II c Cross Road MIDC,Andheri(E) MUMBAI-400093,Tel.(022)66400564. Removal of Excisable goods from factory : Rule 11 of the central Excise (No.2) Rules: 2001 ASSESSEE CODE 61091632 c.ex.Regn.No.AAACF1621MXM002/3074 Name of Excise able goods : flavour/Fragrance Chapter No./tariff Sub-Heading No. :33021010/33021090 Rate of the Duty : 147 P.L.A. No. : 327-ch-33/98-99/SRT II Ed.cess + H.S.Ed.Cess(on basic duty) :2% + 1% Firmenich Aromatics (India) Pvt Limited Factory: Unit-2 ,Survey No.57/3(6,8&9) Daman Bhenslore Road,Village Dunetha, Daman 396210, India . Tel: (0260) 2260827,Fax: (0260)2262602 Invoice To HEINZ INDIA PVT . LTD. MANZURGARI ALIGARH P.O BOX NO. 1 ALIGARH ,U.P. 202001 Terms of payment : 45 Days Document to Challan No. 001234 Date Transporters SAFEXPRESS LR/Docket No. DD03 D 9319 Vehicle No. BY ROAD Shipment Mode 20 /06 /08

SE290744

Product descriptions LIME 860006 TD0594

Delivery Condition Identification & Packing N2AI91440 19 /06 /08 6 * 25KGS

Net Weight 150.000

Unit Price 1075.00 Total (INR) 161250.00

We hereby certify that the Food /Foods mentioned in this Invoice is / are warranted to be of the nature and quality which it / they purport to be SALE AGAINST FORM C This sale is subjected to the terms & conditions set on the reserve side hereof ,unless otherwise agreed upon by FIRMENICH in writing. Serial No.& Date of P.L.A.a/c No. : Dated : Serial No. & Date of R.G.23aPartII A/C No. Dated:

SUB TOTAL DUTY PAYABLE Education Cess S .H . E . Cess @ 1% C.S.T 2% FREIGHT INSURANCE

161250.00 22575.00 452.00 226.00 3690.00 0.00

TOTAL AMOUNT 188193.00 Excise Duty in words : TWENTY TWO THOUSAND FIVE HUNDRED SEVENTY FIVE ONLY. Gross total in words : ONE LAKH EIGHTY EIGHT THOUSAND ONE HUNDRED NINTY THREE ONLY. Education Cess : FOUR HUNDRED FIFTY TWO ONLY. H.S.ECess : TWO HUNDRED TWENTY SIX ONLY.

Authorised Signatory

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For Firmenich aromatics (i) Pvt. Ltd

Findings
Very often the objectives of implementing SAP is not defined in terms of measurable value. The norm is Successful Implementations being defined by processes configured and working ! While that is a starting point, to realize optimum value, one need much more.

Organizations needs to be in a process of continuous improvement.

Improving processes, enabling additional functionality and models for planning , optimizing resources and various documentation and statutory compliance is of paramount importance.

Gaps occur between

Managerial objectives & operational reality Business & IT feel good versus measurable value of IT what your vendor commits and what gets done skill-sets of what you have and what you need more , better, and cheaper propositions Statutory compliance and trade documentation resulting in Over 70% of system integration projects failing to meet objectives. Over 55% of software projects failing to meet objectives.

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Recommendations
Strategy bridging business-IT gaps; validating the business needs by making the invisible visible through an objective external intervention. Solution - needs analysis; defining sourcing streams, methodologies, partners, assets & platforms required for the realization.

Roll-out implementing solution; and bridging sourcing gaps through effective program and risk management. Business requirements: 1. Avoid costly delays 2. Faster response to opportunities 3. Corporate governance and to be in Good books. 4. Factors related to workers incentive agreements, policies, duties and taxes, legal and regulatory requirements, etc.-must be taken into consideration when making strategic, tactical, and operational decisions. 5. Electronic documentation, Auditable process & integration with core business system.

The company must adapt system and solution for compliance documentation, achieve operational excellence and meet financial objectives in todays increasingly global, complex, and risky business environment. The company need to act Proactively, Consistently across multiple regions & systems and create Business intelligence information for better decision making.

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Bibliography
Books/ Magazines/ Newspapers referred:
1.The Economist 2.Business Weak 3.Wall Street Journal 4. The Economics Times 5. Business Standard 6. The Essentials of Finance and Accounting for Nonfinancial Managers By: Edward Fields 7. Dictionary of Finance and Banking by Oxford Publication 8. The SAP consultant handbook By: Jon Reed, Michael Doan 9. Management Information System By: Terenc Lucey

Websites referred :
1. www. heinz.com 2. www. heinz. co. in 3. www.livemint.com 4. in.reuters.com

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