Fatima Sugar Mills Limited

Table of Contents

Sr. # Topic
01 Organizational Chart
02 Acknowledgment
03 Group Profile
04 Introduction
05 Board of Director
06 Growth And History
07 Mission & Objective
08 Working Force
09 Products of Company
10 Production
11 Departments At Head Office
12 Organizational Incentives
13 Quality Management
14 Problems Of Sugar Industry
15 SWOT Analysis
16 Ratio Analysis
17 Statement Of Cash Flow
18 Comments & Suggestion

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C H IE F E X E C U T IV E

D IR E C T O R S

E X E C U T IV E D IR E C T O R

GROUP GENERAL M ANAGER

IS O -9 0 0 2
C O -O R D IN A T O R

GENERAL M ANAGER C H IE F E N G IN E E R GENERAL M ANAGER P R O D U C T IO N S R .D E P U T Y S R . A D M IN

CANE M E C H A N IC A L F IN A N C E M ANAGER C H IE F E N G IN E E R O F F IC E R
E L E C T R IC A L

C A N E A D V IS O R S R .D E P U T Y F IN A N C IA L C O N T R O L L E R IN T E R N A L A U D IT O R S A S S IS T A N T E L E C T R IC A L J R .A D M I N
C H IE F E N G IN E E R C H IE F E N G IN E E R O F F IC E R
C H E M IS T

DEPUTY CANE M ANAGER S R .E N G I N E E R M ANAGER ACCOUNTS Q U A L IT Y IN S T R U M E N T

CONTROL E N G IN E E R
M ANAGER

IN C H A R G E
C .P .D .O S H IF T E N G IN E E R COM PUTER SR.LAB S U P E R V IS O R S
OPERATOR C H E M IS T

K .P .O 'S
C .P .O A S S IS T A N T L A B C H E M IS T S R . T E C H N IC IA N S
E N G IN E E R

C H IE F A C C O U N T A N T
F IE L D O F F IC E R S FOREM AN LAB S R .F I T T E R S
A N A L Y IS T

CANE A S S IS T A N T D .C H I E F A C C O U N T A N T A S S IS T A N T J R . F IT T E R S
IN S P E C T O R S FOREM AN LAB
A N A L Y IS T

S R .A C C O U N T A N T
CANE M E C H A N IC S LAB H ELPERS
S U P E R V IS O R S SAM PLERS

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ACKNOWLEDGEMENT
First of all, I want to express all and thanks to ALMIGHTY ALLAH
whose blessings are above each and every thing which make me able to
present my tiny effort. All prays to HAZRAT MUHAMMAD (PBUH)
who is the reason for creation of the universe and whose kindness came to
my part.
Secondly on the successful completion of my internship program, I whish
to express my gratitude and heart worthy acknowledgement to managers
for full co-operation and helped me in completing this report. I feel utmost
pride in acknowledging with sincere gratitude for the valuable guidance I
have received from Mr. Amanullah.
He has been a constant source of enthusiastic encouragement through out
the internship program. Due to his guidance I have become able to
complete internship as well as this report. His advice, criticism and
remarks were of the most value to me.
I am also thankful to executives and staff members of Fatima Sugar Mills
Limited, Head Office and Site deserve my thankfulness for their co-
operation and guidance during the course my internship at Fatima Sugar
Mills Limited. Finally I would like acknowledging the contributions by
many other sources of information used in preparation of this report.

GROUP PROFILE

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The company has been sponsored by FATIMA GROUP OF INDUSTRIES

in MULTAN. The sponsors are already engaged in the field of textile.
Their company, Reliance Weaving Mills Limited has been awarded Best
Performance Trophies in the field of export. The group engages the
following companies and firms.

Sr. #Company Name

1. FATIMA SUGAR MILLS LIMITED

2. FATIMA FIBRES LIMITED
3. FATIMA TRADING COMPANY LIMITED
4. FAZAL CLOTH MILLS LIMITED
5. FAZAL WEAVING MILLS LIMITED
6. RELIANCE WEAVING MILLS LIMITED
7. RELIANCE EXPORTS LIMITED
8. RELIANCE FIBRICS LIMITED
9. RELIANCE COMMODITIES (PVT) LIMITED
10. RELIANCE COTTON (PVT) LIMITED
11. FARRUKH TRADING COMPANY (PVT) LIMITED
12. MUKHTAR TRADING COMPANY (PVT) LIMITED
13. RELIANCE COTTON (PVT) LIMITED
14. PAK ARAB FERTILIZER LIMITED
15. FATIMA FERTILIZER COMPANY LIMITED

INTRODUCTION

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INCORPORATION
Fatima Sugar Mills Limited was incorporated in 1988.
NATURE OF BUSINESS
Crushing of Sugarcane & Raw Sugar in to White Refined Sugar.
FIRST CRUSHING SEASON
Fatima Sugar Mills Limited starts its first crushing season in 1993-
1994.
LOCATION
Fatima Sugar Mills Limited is located at Fazal Garh, Sanawan, Kot
Addu.
HEAD OFFICE
Head Office of Fatima Sugar Mills Limited is located at 2 nd Floor,
Trust Plaza, and L.M.Q Road Multan.
FINANCIAL YEAR
The financial year of the company is from 1st October to 30th
September.
RAW MATERIAL
The main raw material for the mill is sugarcane, which is abundantly
available in Pakistan.

BOARD OF DIRECTORS

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Chief Executive Mian Fawad Ahmed Mukhtar

Directors Mian Fazal Ahmed Sheikh
Mian Faisal Mukhtar
Secretary Khan
Auditors M/s Hameed Chaudhri & Company
Banks Muslim Commercial Bank Limited
National Bank of Pakistan
United Bank Limited
Allied Bank Limited
Habib Bank of Pakistan
Head Office 2nd Floor, Trust Plaza, L.M.Q Road
Multan, Pakistan.
Phone No. Head Office (061) 4512031-32
Mills 066-2550512-13
Fax No. Head Office 061-4511677
Mills 066-2250514
Email: fatmagrp@mul.paknet.com.pk

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MAIN COMPETITORS
 Sheikho Sugar Mills Limited, Anwar Abad, Kot Addu.
 Layyah Sugar Mills Limited, Layyah.
 Ashraf Sugar Mills Limited, Bahawalpur.
 Indus Sugar Mills Limited, Rajanpur.

GROWTH OF SUGAR INDUSTRY IN

PAKISTAN
Sugar is the important sector of the Pakistan’s economy. Sugar industry
plays a vital role for development of any country’s economy. In Pakistan
this industry play a significant role for economic development.

HISTORY
The sugar industry, which is endowed with a strong base of sugarcane, had
started its journey from almost non-existence in 1947. The industry has
gone through a long way and now possesses 77 sugar mills in all over the
country. The Sugar industry not only fulfills the entire local requirement
but also sharing out the total foreign exchange earning.
At present Pakistan’s sugar industry is facing lot of problems like lesser
demand of sugar in the country due to recession in the economy, declining
prices into the domestic as well as international markets & huge unsold
stock of sugar. Government role in R & D for developing the sugarcane

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varieties is not very significance; only few private institutions are doing
some research in R & D in developing various varieties with higher yield.

MISSION OF FATIMA SUGAR MILLS

LIMITED

 To produce superior quality White Refined sugar.

 To face competition in the Local & International Market.
 Total Quality Management.

OBJECTIVES
Following are the objectives of company.

 Total quality focus to meet customer’s requirements.

 The highest standard of business ethics.
 To care on the business ethics.
 To carry on the business at best possible level.To guarantee
performance of contracts by members or persons having dealing
with the company.

WORKING FORCE

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Detail of total working force at site and at head office is as under:

AT SITE

Officer up to foreman 068

Permanent Employees 250
Seasonal Employees 525
Daily Wages Employees 115
Total 958

AT HEAD OFFICE

Permanent employees 32
Temporary Employees 16
Total 48

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PRODUCTS OF THE COMPANY

The main product of the company is White Refined Sugar and also other
sugar by products, which are as follows.
1. Molasses
2. Baggasse
3. Mud

WHITE REFINED SUGAR

Major business of the company is to produce white refined cane sugar of
intermission standard and from the erased cane and three different
components are achieved that are fibber, Pith and Moisture.
In the last crushing season 2005-2006 the company also import raw sugar
from India and other different countries of the world.

MOLASSES
This is a by-product and it is sold to Molasses Contractors. One of the
allied concern, Reliance Commodities (Pvt) Limited is the main buyer of
the molasses of Fatima Sugar Mills Limited and also the main buyer of
Molasses from whole the country.
Reliance Commodities (Pvt) Limited is the main exporter of Molasses in
Pakistan.
BAGASSE
This is also a by-product of the company. It is also used in boiler but the
entire Baggasse is sold to the Baggasse Contractors.

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MUD
Mud is also the by-product of the company. It is sold to the Mud
Contractors.

PRODUCTION

PERIOD SUGAR BAGS

2003-2004 712,500
2004-2005 790,200
2005-2006 980,322
2006-2007 1,142,217
2007-2008 1,512,600

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DEPARTMENT AT HEAD OFFICE

Sr. No. Description

1. Finance Department
2. Accounts Department
3. Purchase Department
4. Sales Department
5. Cane Depatment

FINANCE DEPARTMENT
Finance department is the department, which provides funds to the
company. This department plays very important for fulfilling the need of
fund. Finance department is working under Chief Financial Controller,
who is a Fellow Member of Institute of Chartered Accountants of Pakistan
and has vast experience about financial matters.

FUNCTIONS

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The main function of this department is to get Cash Finance and Running
Finance, according working capital requirements, from different Financial
Institutions against pledge of sugar stocks. This department also performs
following activities:
 Financial Planning.
 Fund Raising.
 Managing Cash & Credit Activities.
 Capital Expenditure Decisions.
 Analyze the Financial Information.
 Evaluation.
 Short Term & Long Term Financing.
Finance department analyzes the financial information and then presents
them into proper form, so that financial position of the company can be
properly viewed. Finance Department evaluating and determining about
required additional finance. All the functions are based upon Balance
Sheet, Income Statement and other Financial Statements.

ACCOUNTS DEPARTMENT
Accounts department is the department, which is recording all the business
transactions into books of accounts. With the help of this department, we
should know the actual position of the company about profit or loss.
Accounts department is working under Manager Accounts, who is a very
experienced person.

FUNCTIONS

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The main function of this department is recording & classifying all

transactions into books of accounts, keeping whole record of the company
about payments, receipts, profits & losses. The main goal of this
department is to work effectively & efficiently within the accounting
standards all the time. Main Accounts Department also supervises the
Cane and Store Accounts.
Normally Accounts Department performs following activities:
 Maintaining Records
 Keeping Accounts Record of All Departments
 Payment of Wages & Salary
 Store Accounts
 Cane Accounts
 Dealing With Banks
 Tax related matters
 Stock Position
 Stock Taking

CANE ACCOUNTING
Main Accounts Department also supervises the Cane Accounts. This
department deals with following matters:
 Keeping Sugarcane Purchase Record
 Keeping Record for Growers
 Arranging payment for growers
 Recovery of Advances from Growers

STORE

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Main Accounts Department also supervises the Inventory / Store

Department. Inventory means stocks of things and items, which are used
with in the company for producing goods, and finished goods offering for
sales. Inventory can be divided into following four groups:
1. Raw Material
2. Work in Process Inventory
3. Finished Goods Inventory
4. Spare Parts Inventory
For effective control over the company’s inventory, it is necessary that
overall work should be done under Accounts department.
It is very important for store that it has to maintain sufficient stock of
all the related parts / goods to make the factory continue its production
and functions of other departments without any hurdle. This department
receives the demand from various departments and then arranges the
required goods / items.
When demand of items / goods received, then following process starts.
1. Purchase Requisition received at store, through relative
department’s head, which contains item’s name & quantity.
2. Store Incharge checks the required material/items and issue to
relative department according to demand, if required
material/items currently not available in store, then Purchase
Incharge makes the purchase indent for required material/items.
3. Purchase indent sent to the Purchase Department at Head Office
after getting approval from General Manager at Site.
4. Purchase Department collects quotations from different listed
sellers.

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5. Purchase Manager compare all quotations and send summery of

favorable rates to Chief Executive for approval.
6. After getting approval from the Chief Executive, Purchase
Department issue Purchase Order for required material / items,
which contains Mode of Payment, Mode of Delivery, Item
Name, Quantity etc.
7. Delivery of required items at Site through supplier’s own vehicle
or through rented vehicle on company’s expenses according to
the contract.

PURCHASE DEPARTMENT

Purchase department is the department, which conducts all the purchase

for head office and site. This department plays very important role for
maintaining discipline in the mills. Purchase department is working under
Manager Purchase, who is B.Com + C.A-Articles.

FUNCTIONS
The main function of this department is to purchase Spareparts, Store
Material, Chemicals, P.P Bags etc. The main goal of this department is to
purchase required items at convenient rates.
This department conducts all the purchases. There is also a Purchase
Assistant in this department to keep the records. Whenever any particular

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department requires any part of material/goods, its head makes a demand

of items to be required. This demands contains the information like, items
description, quality, quantity and others. The departmental head signs the
demand and sent to the purchase department, then purchase department
sent it to Chief Executive for final approval.
The Manager Purchase has the list of preferable suppliers of the certain
items. When any item is required, first he get rates from market though
purchasers, then he compare market rates, and making a purchase order of
the supplier which provide the material/items at convenient rate after
obtaining verbal or written approval from the Chief Executive.
Purchased material sent to the mills premises through rented vehicle or the
supplier is sending material/items according to the contract.
In Purchase Department work is done according to the following process:
1. Purchase Requisition received from store of site or head office,
which contains items code, items description and balance in the
store.
2. Purchase Department sends this requisition to Chief Executive
for approval.
3. Purchase Department collects quotations from different sellers
after approval from Chief Executive.
4. Quotations are compared and summery sent to Chief Executive.
5. Purchase Order is prepared for required material / items after
getting approval from the Chief Executive.
6. Delivery of required items to Site Store / Head Office Store.

SALE DEPARTMENT

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Sales department is the department, which deals the sale of sugar and
other by-products. Sales department is working under Sales Manager.

FUNCTIONS
The main function of this department is the sale of sugar, molasses,
baggasse & mud. The main goal of this department is to sell the stock at
best available market price. To keep the record of sale of sugar and other
by-products Computer Software is used. All transactions of sale are posted
daily in computer.

Following record are maintain by Sale Department:

1. Sales Register.
2. Stock Reports.
3. Delivery Orders.
4. Invoices.
5. Sales Tax Detail.
6. Parties Position.

In Fatima Sugar Mills Limited normally all the sale is done through agents.
There are three main parties of sale; all sales are done through these
parties. Delivery Orders are sent to site according to contract. Without
delivery order godown incharge cannot dispatch the sugar bags.

CANE DEPARTMENT

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Cane department is the major department of any sugar mill. This

department is purchasing sugarcane from growers.
FUNCTIONS
Cane department is working under General Manager Cane, who is a very
experienced person and has a much more knowledge about sugarcane
quality.
The main function of this department is the purchasing of sugarcane. The
main goal of this department is to supply high quality sugarcane.
Main input of Fatima Sugar Mills Limited is the raw fresh sugarcane. To
control the different activities of purchase of sugarcane, cane department
play very important role.
This department has purchased sugarcane from different villages of the
country. Cane field officers are surveying regularly and motivate growers.
This department opens depots in different villages for purchasing of
sugarcane. In Punjab a number of small grower’s exit and yield different
varieties of sugarcane that profitable to the growers. Cane department also
play very important role for granting a loan to the growers in the shape of
seed, fertilizer and machinery, which has to be returned in the shape of
supply of sugarcane to the respective mill.
Before start of crushing season, cane department of Fatima Sugar Mills
Limited arranges a survey of the growers of surrounding area of the mill
for the availability of sugarcane. They collect data about varieties, quality
and quantity that would be available during the season.

CANE ACCOUNTING

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After receiving sugarcane from the grower, process of payment starts.

Cane accounts generate the payment that is sent to the banks for
disbursement.
Cane accounts generate the following output from cane accounting
package.
 Grower Ledger
 Cane Payment
 Contractor Register
 Loan Register
 Daily Cane Purchase & Receipt Summery
Cane Accounts Department is working under Main Accounts Department.
All the printed data sent to Head Office on daily basis. Payment to grower
is made through bank after getting approval from Head Office, in case of
emergency sometimes payment is to be made at Head Office, but during
routine, payment to growers is done at site through bank.

INCOME TAX MATTERS

As required by the tax authorities of the Govt. of Pakistan, whenever the

company makes purchases from the supplier, gets services on contract or
on commission basis, the amount paid to the party is tax deducted. When
the company will make the payment to the party (supplier, contractor or
commission agent) it will deducted the tax from the amount to be paid to
them.
Tax deducted are payable to the Income Tax authorities. When the

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company makes the payment of this tax, a Tax Challan is filled and
prepared by the section and after payment it is filed into the tax Challan
file after debiting the tax payable. The sellers, contractors and agents from
this section then receive these challans for their official uses.

SALES TAX MATTERS

Sales Tax is deducted from sellers at the time of sale. The company also
pays the sales tax to the suppliers, but this sales tax has claimed as refund
and it is to be adjusted from total amount of Sales Tax payable, then
remaining payable amount is to pay to the Sales Tax Department.

ORGANIZATIONAL INCENTIVES

Although the FSML has no formal human resource department (HRD), a

lot had been done and is being done to make the moral of the workers of
the Organization high & high.

1. WPPF (WORKERS PROFIT PARTICIPATION

FUND)
This is the name of the fund given to workers when company earns profit.

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It is 5% of the total profits earned during an accounting year. Every

workers / Employee whose not pay is up to Rs. 3000/= is eligible for
getting this fund.

2. BONUS POLICY
The company maintains a bonus policy for its workers to initiate the
motive to work whole-heartedly for increasing workers and organizational
efficiency. According to this policy, company shall give a sum equivalent
60% basic salaries of worker at the end of the every accounting year in
case of report earning.

3. SOCIAL SECURITY FACILITY

The company deducts a nominal amount in the account of social security
from the salaries of the workers on monthly basis. This deducted amount is
submitted to the social security and they allot a social security number
with an identification card, which shows that the worker had got the
facility of social security. Major advantage provided through social
security number is the free health care including medical and surgery
facilities from the specified social security hospitals.

E.O.B.I(EMPLOYEES OLD AGE BENEFITS

INSTITUTION)
This is an important deduction from the salaries of the workers for the
regular income in the old age / post retirement age so that workers have a
thought of relief that there would be no financial problem after the expiry
of his employment. EOBI is an institution where this deducted amount is

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accumulated for the future use when these people will not be able for
employment.
1. HOUSING FACILITIES
The workers have provided with the residential facilities and small
quarters are provided to the workers. These quarters are often visited by
the resident director for the checking of cleanliness and other important
matters if raised by any situation from the workers side.

2. TRANSPORTATION FACILITIES
As the Mills is located at 10 KM on Khanewal Road, which is far from
Multan city. So the company provides transportation facilities for its
workers and employees at limited level.

3. FOR SCHOOL CHILDREN

School Children of the housing area of the factory are provided with a KIA
Van for transportation on both sides from factory to their schools.

4. COMPANY CANTEEN
Company has given the provision of a canteen / café-teria for its workers
and employees. I provided food and refreshment items to the workers on
very cheap rates. The quality of the food available in the factory canteen is
under the supervision of the labor officer.

5. BIG LUNCH
According to this scheme, company gives lunch to all its workers /

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employees at Mills, once in every month.

6. LOAN TAKING FACILITY

The company has provision for loan to its workers / employees. The
workers / employees refund this loan in installments. These installments
are deducted from their respective salaries.

QUALITY MANAGEMENT

The ISO 9000 is major consideration for the every type of organization
and especially for the textile industry. No firm can export its products in
future without ISO 9000 certification. Realizing the situation organization
is analyzing the situation for necessary actions. This discussion includes
following topics:

ISO 9000
ISO 9000 Quality System standards are currently, one of the highest
criteria of quality in the world trade. Up to now more than 60 countries in
the world have officially adopted this standard. The European Community
(EC) is the most active region in prompting them. Presently companies
that produce regulated products, such as medical devices, must be
registered. The EC encourages all products to register their products.
QUALITY MANAGEMENT IN PAKISTAN
The industrial culture in Pakistan is undergoing changes from traditional

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information management to modern formal management. With the wide

spread establishment of management schools, increasing collaboration
with international companies and deregulation policies of government, the
management crises in industries is minimizing. The industries are
expanding an people are looking more and more into new avenues for
exports. Due to this phenomenon, the competition in both local and export
market is increasing.

WHAT IS ISO 9000

The ISO 9000 (International Organization for Standardization), is a

worldwide federation national standards bodies that prepares and issued
standards. The ISO 9000 series was issued for the first time in 1987 and
has had a great impact on the manufacturing industries. They establish
requirements for Quality Assurance and Quality Management System of
manufacturing, services and other organizations. They do not refer to any
specific technical specification of products. The elements that are
described in them cove: organizational structure, personal responsibilities,
authorities, training organizational channels, procedures, documentation
and records process control and resources allocation for production and all
related departments that directly affect product quality.
These standards are generic and apply to all types and sizes of companies.
However, they are written in general terms. While applying these
standards to a company, they must be interpreted professionally to suit the
applicability. Clear concepts, professionalism, and involvement of all
employees (from top to the very bottom) are required.

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The basic aim of ISO 9000 is to provide a management framework to

prevent “Non-Confirming” in every stage. From design through to after
sale servicing. A minimum framework is provided for a quality
management system to ensure a basis for contracts between purchaser and
suppliers.
ISO 9000 registration is given only after assessment by an approved
registration body.A company seeking registration is free to choose any
accredited registration body.

PROBLEMS OF SUGAR INDUSTRY

 Quality of sugarcane is not very good, because of lack of research

in this sector.
 Role of Government in developing varieties of sugarcane is not very
significant; only some private institutions are doing some research
in developing various varieties for higher yield.
 Government’s wrong policy for import of raw sugar.
 Heavy duties on export of sugar.
 Instability of exchange rate also creates problems for exports and
imports.
 Increase in cost, due to Government policy of increasing prices of
sugarcane, furnace oil & electricity.
 Low sale price of sugar in the market.
 Higher rate of mark-up on Finance Facilities.
 Lack of institutional finance for modernization efforts.

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SWOT ANALYSIS
STRENGTH

 Having a professional management.

 Friendly and cooperative working environment.
 Technical know how and well qualified staff.
 Better financial resources.

WEAKNESSES
 Lack of research and development.
 Lack of market survey

OPPORTUNITIES
 Entering into new markets
 New government and industrial projects
THREATS
 Invisible trade barriers.
 Strict Govt. policies
 Instability of exchange rate
 Low sale price of sugar in market
 Higher rate of mark up

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RATIO ANALYSIS
LIQUIDITY ANALYSIS
NETWORKING CAPITAL RATIO
Year 2006 2007
Current Asset 224290711 503118870
Current liabilities 249930033 619463159
NWC 25639322 116344289

CURRENT RATIO
Year 2006 2007
Current Asset 224290711 619463159
Current liabilities 249930033 619463159
Ratio 0.89:1 0.812:1

QUICK RATIO
Year 2006 2007
(CA-INV) 176241782 150200878
Current liabilities 249930033 619463159
Ratio 0.7:1 0.24:1

CASH RATIO
Year 2006 2007
Ratio 0.09:1 0.009:1

ACTIVITY RATIO

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INVENTORY TURNOVER RATIO

Year 2006 2007
CGS 604089035 2387843626
Inventory 48048929 352918000
Ratio 12.57 6.76

ACCOUNT RECEIVABLE TURN OVER

Year 2006 2007
A/RTO 360/1.38 360/2.98
Ratio 260 120
OPERATING CYCLE
Year 2006 2007
Operating cycle 1.38+28.6 2.98+53.25
Ratio 29.98 56.23

AVERAGE PAYMENT PERIOD

Year 2006 2007
APP 8675929/1466468
7390871/6736804
Ratio 5.91 1.09

ACCOUNT PAYABLE TURN OVER

Year 2006 2007
A/PTO 360/5.91 360/1.09
A/PTO 60.91 330

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FIXED ASSET TURN OVER

Year 2006 2007
FATO 812457543/644644379 2491526879/602625379
Ratio 1.26 4.13

TOTAL ASSET TURN OVER

Year 2006 2007
TATO 812457543/880682087 24915267879/1117663503
Ratio 0.92 2.229DEBT
ANALYSIS

DEBT RATIO
Year 2006 2007
Debt Ratio 619990432/880682087
928967379/1117663503
Ratio 0.7 0.83

DEBT EQUITY RATIO

Year 2006 2007
DER 370060399/260691655
309504220/188696124
Ratio 1.4 1.6

TIME INTEREST EARNED RATIO

Year 2006 2007
T.I.E.R 191923537/65960804 53316779/121874095
Ratio 2.90 times 0.43 times

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PROFITABILITY ANALYSIS
GROSS PROFIT RATIO
Year 2006 2007
GPR 208368508/182457543*100
103683253/2491526879*100
Ratio 25.6% 4.16%

OPERATING PROFIT RATIO

Year 2006 2007
O.P.R 191923537/812457543*100 53316779/2491526879*100
Ratio 23.6% 2.13

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FATIMA SUGAR MILLS LIMITED

STATEMENT OF CASH FLOW
AS ON 30TH SEPTEMBER 2008

Cash from operating activity Rs. Rs. Rs.

Earning before interest and tax 52622125
Less taxes 6189
Earning after interest and tax 52615936
NON CASH EXPENSE
+ Accumulated depreciation 45466558
Total 98082494
CHANGE IN ALL CURRENT
LIABILITIES
+ Current portion of redeemable (5198226)
capital
+ Short term finances 295703363
+ Creditors 79027989
Total Cash Provided By 369533126
Change in current assets other
than cash and market
securities
+ Stores (8370733)
+ Stock (304869071)
+ Debtor (17511021)
+ Advances 33365214
Total (297385611)
72147515
Cash providing by operating 170230009
activity
INVESTMENT ACTIVITY
+ Change in gross fixed assets (34475589)
+ Change in long term liabilities 267043
+ Change in long term deposit (439300)
Cash used by investing activity (3619815)

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FINANCING ACTIVITY
+ Change in stock holders equity 0
+ Change in redeemable capital (61911973)
+ Change in deferred liability 1355799
+ Interest payment 124611467
+ Dividend 0
Cash used by financing activity (185167646)
+Opening balance of cash & 24709462
M/S
Ending balance of cash & M/S 6152010

COMMENTS IN BRIEF & SUGGESTIONS

 After a short careful analysis, I come to know that the

financial position of the company is very strong than the other
sugar mills in sugar industry.
 In Fatima Sugar Mills Limited there is no formal marketing
department to promote and introduce its output in local &
international market. There is a crucial need for having a
disciplined & coordinated program of marketing to boost up
sales.
 There is a need of searching the new customers in local
market.
 Sugarcane seeds should be provided to the growers.

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 Fatima Sugar Mills Limited should appoint skilled persons in

every department.
 Local worker should be preferred.
 Fatima Sugar Mills Limited should introduce the new brands
of sugar packets, such as 5 Kgs, 10 Kgs, and 25 Kgs.

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