A STUDY ON SUMMER INTERNSHIP

PROJECT IN THE COMPANY OF

SAKTHI SUGARS LIMITED.

ERODE

SUMMER INTERNSHIP PROJECT REPORT

Submitted by

NAVINEETHAN. V

Register number: 730518635039

Under the guidance of

Mr. R. MOHANASUNDARAM., MBA, M.Phil.,

Assistant Professor

The summer internship project report submitted to Anna University in partial

Fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

(INTEGRATED MANAGEMENT)
DEPARTMENT OF MANAGEMENT STUDIES

BUSINESS SCHOOL
DEPARTMENT OF MANAGEMENT STUDIES

(Approved by AICTE, New Delhi, Affiliated to Anna University, Chennai)

NH-544, Salem Main Road, Pallakkapalayam (Po), Komarapalayam (Tk),

Namakkal (Dt) - 637 303.

NOV/DEC - 2022
 BUSINESS SCHOOL
DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This is to certify that the project to “A STUDY ON SUMMER INTERNSHIP

PROJECT IN THE COMPANY OF SAKTHI SUGARS LIMITED .
ERODE” is Bonafide record of work done by NAVINEETHAN. V, (Reg. No: 730518635039)
submitted in partial fulfillment of the requirements for the degree of MASTER OF
BUSINESSADMINISTRATION INTEGRATED MANAGEMENT of Anna University, Chennai.

SIGNATURE OF HOD SIGNATURE OF GUIDE

Submitted for the Summer Internship Project Viva – voce examination held on ------------------------

INTERNAL EXAMINER EXTERNAL EXAMIN

 DECLARATION
DECLARATION

Here I declare that this project entitled to “ A STUDY ON SUMMER INTERNSHIP

PROJECT IN THE COMPANY OF SAKTHI SUGARS LIMITED
ERODE” submitted in Anna University in partial fulfillment of the requirements for the award
of the degree of MASTER OF BUSINESS ADMINISTRATION (INTEGRATED MANAGEMENT)
is a record of original work done by me during my period of study at Excel Business School,
Komarapalayam under the guidance of Mr. MOHANA SUNDARAM, MBA., M.Phil.,
Assistant Professor, Excel Business School, Komarapalayam, NAMAKKAL.

NAVINEETHAN. V
(Reg. No: 730518635039)

I certified that the declaration made above by the candidate is true.

 ABSTRACT

The project entitled “A STUDY ON SUMMER INTERNSHIP

PROJECT IN THE COMPANY OF SAKTHI SUGARS LIMITED
ERODE”. This project emphasizes on the importance of management in an industry.
The researcher selected sakthi sugars for the project. This project focuses on the
management of the various department of the firm and controlling them individually to
achieve the collective goal of the organization. are the areas explained in the summer
internship project.

Keywords: Human resource, Marketing, Finance, System and Operation management,

organization, industry

ACKNOWEDGEMENT

The gratification and elation of the project would not be completed without mentioning
each and every one who has assisted the task in any place of its development. First and
foremost, I bow out my head before God Almighty who bestowed upon us his
unequalled blessing that imparted us the capability to complete the project in the most
important manner.

I deeply indebted to Prof. Dr. A. K NATESAN, M. Com, MBA, M. Phil., Ph.D.,

FTA, PHF, the chairman of Excel Education Institution for providing an excellent
environment and infrastructure in Excel Institution.

I am extremely grateful to Dr. B. ADHINARAYANAN, MBA, M. Phil., Ph. D Head

of the Department, Excel Business School and my project guide for her advice right
from the day one which has contributed to great extent to completion of project.

I would like to express my gratitude to my guide Mr. R. MOHANASUNDARAM.,

MBA, M.Phil., Assistant Professor and I would like to express my gratitude to my
parents at this occasion without them I would not have been what I am today. I am
extremely thankful for permitting me to carry out the project and for providing
valuable information regarding the project.
At the successful completion of this project, I would like to express my sincere thanks
to Mr. MOHANKUMAR. N ASST. GENERAL MANAGER – HR & ADMIN and the
employees and staffs of SAKTHI SUGARS LIMITED. Finally, my special thanks to
Teachers and Friends for their valuable suggestions and co-operations for completing
this summer internship project.
 TABLE OF CONTENTS
CHAPTE PAGE
CONTENT
R NO
INTRODUCTION

1. OBJECTIVES 1
SCOPE OF THE STUDY

PROFILE OF THE STUDY

2
2.1 INDUSTRY PROFILE
2.2 COMPANY PROFILE 3
2.3 UNITS 5
4. 2.4 ORGANISATION PROFILE
2.5 COMPETITORS OF COMPANY
6
2.6 MISSION
2.7 VISION
2.8 MANAGEMENT TEAM 7
VARIOUS FUNCTIONAL DEPARTMENT
8
3.1 PRODUCTION DEPARTMENT
3.2 LABOUR OFFICE DEPARTMENT 13
3.3 MARKETING DEPARTMENT 18
13.
3.4 CANE DEPARTMENT 19
3.5 STORE DEPARTMENT 22
3.6 FINANCE DEPARTMENT 23
3.7 ACCOUNTS DEPARTMENT 24
LEARNINGS FROM SAKTHI SUGARS
LIMITED
21. 4.1 LEARNING
27

4.2 ISSUES IDENTIFIED

CONCLUSION
24. 28
REFERENCE
 CHAPTER 1

INTRODUCTION
A Plant Training will provide an industrial exposure to the students as well as to
develop their career in the high-tech industrial requirements. Reputed companies are
providing in-plant training to Students. Here students are initially get counselled in order
to emerge out their interest in various streams and what are all the basic concepts they
know on that domain.

After the successful completion of studies students has to face this competitive
world with this knowledge to face many problems and to find the right solutions which is
to be solved in the minimum duration of time. The in-plant training is got totally
different from the class environments.

OBJECTIVES

To study the systems, policies, practices and procedures followed by the organization.

• To understand the functions performed by various departments  To

study the roles and responsibilities of the managers.
• To understand the decision-making process

SCOPE OF THE STUDY

❖ The study in mainly based on the details collected from each department.
❖ It provides a better understanding at functional level of each department i.e.,
purchase, materials, production, marketing, finance, Human resource
management and store department.
❖ Each and every activity of the company is studied very carefully with the data
available.
❖ Apart from that, I gained knowledge of the functioning of different departments
and their interrelationship with each other.
❖ This study helped me to familiarize myself with the sugar segment.

1
 CHAPTER 2

PROFILE OF THE STUDY

2.1 INDUSTRY PROFILE

Sugar industry in India is well developed with a consumer base of more than
billions of people. It is also the second largest producer of sugar in the world.

There is around 45 million of sugar cane growers in India and a larger portion of
rural human resource in the country largely rely upon this industry. Sugar industry is
one of the agricultural based industries. In India it is the second largest agricultural
industry after. Sugar is one of the oldest commodities in the world and traces its origin
in 4th century AD in India and china. In those days sugar was manufactured only from
sugarcane. But both countries lost their initiatives to the European, American and
Oceanic countries, as the eighteenth century witnessed the development of new
technology to manufacture sugar from sugar beet. However, India is presently a
dominant player in the global sugar industry along with the Brazil in terms of
production. Given the growing sugar production and the structural changes witnessed in
Indian.

Sugar industry, India is all set continue its domination at the global level. Indian
sugar industry is highly fragmented with organized and unorganized players. The
unorganized players mainly produce Gur and Khand sari, the less refined forms of
sugar. The government had a controlling grip over the industry, which has slowly yet
steadily given way to liberalization.

The production sugarcane is cyclical in unit. Hence the sugar production is also
cyclical as it depends on the sugarcane production in the country. As the industry is
fragmented one, even leading players do not control more than 4 percent market in
India. However, the situation is changing and players off late are striving to increase
their market share either by acquiring smaller mills or by going for green field capacity
additions.

Indian sugar industry can be broadly classified into to sub sectors, the organized
sector i.e. sugar factories and unorganized sector i.e. manufactures of traditional

2
 sweeteners like gut and Khand sari. The latter is considering being rural industry and
enjoys much greater freedom than sugar mills.

The production of traditional sweeteners gut and Khand sari is quite substantial.
Though the trends indicate a progressive shift from traditional sweeteners to white
sugar over the years, they still account for about 37% of total sweetener consumption in
India.

Since the sugar industry n the country uses only sugarcane as an input, sugar
companies have been established in large cane growing states like Uttar Pradesh,
Maharashtra, Tamil Nadu, Karnataka, Punjab and Gujarat. Uttar Pradesh leads the tally
by contributing 24 % of the country’s total sugar production and Maharashtra stands
next 20 % contribution.

The farmer’s co-operatives own and operate the largest chunk of the industry’s
total capacity. They are concentrated primarily in Maharashtra and eastern Uttar
Pradesh. The largest number of sugar companies in the private sector is located on
southern India, in the states of Tamil Nadu, Andhra Pradesh and Karnataka.

Out of 453 sugar mills in the country, 252 are in the co-operative sector, 134 are in
the private sector and 67 are in the public sector. Besides 136 units in the private sector
are in various stages of implementation. A few such units are under implementation in
the cooperative sector as well. But no new units have been proposed in the public
sector.

2.2 COMPANY PROFILE

Sakthi Sugars Limited is one of the largest producers of white crystal sugars in the
country accounting to the capacity of 13,500 tons of cane crush per day. Sakthi Groups
is a leading industrial conglomerate in South India. Motivated by a keen desire to
diversification in new areas of business, the Sakthi Group born and grew as a power full
entity, expanding its interest into various spheres of industry.

Sakthi Sugars Limited is committed to conduct its accordance with the applicable
laws, rules and regulations and with highest standards of business ethics.

P. Nachi Muthu Gounder, farmer with a difference owned a few bullocks carts the
hired out. He could feel the impulse of the people and made revolutionary changes. He

3
created history in 1921 by introducing the first taxi service in Pollachi. In1927, he
started the first bus service called Annamalai Bus Transport Company. This company is
the parent of Sakthi group. Sakthi sugars limited were formed in 1961 with commercial
production of sugar commencing in the year 1964 at its Sakthinagar sugar plant.

Today it has four sugar plants with three of them in Tamilnadu located at Sakthi
Nagar, Sivagangai and Modakurichi and one plant in Orissa at Dhenkanal, Orissa in the
year 1996. These two distillery plants, undisputedly the largest in their respective states,
have aggregate capacity of 46 KLPD industry alcohols.

Soya product is another range of products manufactured by Sakthi sugars limited.

It has an advanced soya processing unit with refinery complex near Pollachi,
Tamilnadu. It handles a capacity of 90,000 metric tons (MT) of soya beans per annum.

The company has also installed three co-generation power plants at its sugar
factories in Tamilnadu. The combined capacity of power production of these plants is
92 Mega Watt. After meeting power requirements of the sugar plants, the excess power
generated is exported to power grid.

As a dutiful corporate, Sakthi Group has set up many educational and charitable
institutions, hospitals and religious centers. It also made significant contribution to rural
developments through number of social welfare activities and initiatives; it has created
ample employment opportunities for rural youth through its multi-fold agro-based
institutions and other industries.

The various areas in which the group acts are

• Sugar
• Automobile parts  Bus transport
• Education and IT
• Foundry
• Fruit beverage
• Finance
• Industrial alcohol
• Parcel service
• Sales and Services of Automobiles
• Soft drinks
• Soya products

4
 • Social services
• Textiles

Sakthi Sugars Limited is the flagship company of the Sakthi Group and is one of the
largest producers of sugar in the country accounting for a capacity of 12,750 tons of
cane crush per day in four sugar units. The four units include three in Tamil Nadu and
one in Orissa.

2.3 UNITS:
Sugar

1. Tamil Nadu
• Sakthi Nagar, Erode District-established in 1964.
• Padmathur village, Sivagangai District-established in 1989.
• Ponduraisemur village, Modakurichi Taluk, Erode District-established in 2007.
2. Orissa
• Haripur village, Dhenkanal-established in 1994.

Distilleries

• Sakthi Nagar, Erode District-established in 1972.

• Haripur, Dhenkanal (Industrial Alcohol) – established in 1996.

3. Soya

 Marichinaiken Palayam, Pollachi – established in 1990.

4. Co generation Plant

• SakthiNagar – established in 2003

• Modakurichi – established in 2007
• Sivaganga – established in 2008

5. Ethanol Plant has been established in Sakthi Nagar.

5
2.4 ORGANISATION PROFILE:
Year of incorporation: 1961

Registered office: Sakthi Nagar, Bhavani

talk, Erode district -63831.Tamilnadu.

Corporate office: 180, Race Course Road,

Coimbatore- 641018. Tamilnadu

2.5 COMPETITORS OF COMPANY

• EID Parry (India) Limited
• Dharani Sugars and Chemicals Limited
• Bannari Amman Sugars Limited
• Kothari Sugars and Chemicals Limited
• Ponni Sugars
• Thiru Arooran Sugars Limited

2.6 Mission:

The mission mode project under sugar production technologies aims

towards sharper and focused technological up gradation in selected sugar factories to
accomplish, interlaid the cost effectiveness of sugar production through improvement in
plant efficiency, energy saving, etc. In addition to the above, the focus is also on
improving the capital output ratio through optimization and identification of user-
friendly technologies.

2.7 Vision:

• To be one of the top five sugar producers in India.

• To be one of the top auto component manufacturers in India.
• To be leading producers of alcohol and allied energy producers.
• To have the best possible alternative power producers in the country.

6
 • To maximize the trade in raw sugar so as to maximize the earning of the
company.

2.8 MANAGEMENT TEAM:

Name Title
Dr. N. Mahalingam Chairman
(promoter)

Dr. M. Manickam Vice chairman & managing director

Sri. M. Balasubramaniam Joint managing director- finance

Sri. M. Srinivasan Joint managing director- technical

Sri. V.K. Swaminathan Executive director

Sri. P.K. Chandran Director (independent)

Sri. G.G. Gurumurthy Director (independent)

Sri. S.S. Muthuvellapan Director (independent)

Sri. N.K. Vijayan Director (independent)

Sri. C. Rangamani Director (independent)

Sri. S. Doreswamy Director (independent)

Sri. B. Elangovan Director (TIDCO nominee)

7
 CHAPTER 3
VARIOUS FUNCTIONAL DEPARTMENTS

• Production Department
• Finance Department
• Labor Office Department
• Cane Department
• Marketing Department
• Accounts Department
• Stores Department

3.1 PRODUCTION DEPARTMENT

Sakthi Sugars Limited is the company of the Sakthi Group and is one of the largest
producers of sugar in the country for a capacity of 12,750 tons of cane crush per day in
four sugar units.

Only sugar factory in India which could produce super fine grade of sugar
corresponding to international standard measures at grade 85 and below by
International Commission for Uniform Method of Sugar Analysis (ICUMSA).

Crushing in the unit is done more than 8 months every year. Optimal recovery of sugar
from sugarcane is more than 10%.

In production department following process takes place in stepwise manner.

Weigh Bridge:

The arrived cane is weighed in the cane weigh bridge.

Cane unloaded:

The weighed cane is taken out from the vehicles and fed to the cane carrier by the
cane unloaded equipment for crushing.

8
Cane preparation:

The unloaded cane in the carrier is leveled by the cutting action of leveler and finally
divided into smaller pieces by the miner unit.

Mills:

The milling unit consists of 5 mills. The prepared cane juice is crushed in the mills step
by step with the addition of water to extract the maximum quantity of juice for
processing.

Boilers:

After extracting the juice, the waste fibrous materials of the cane obtained is known as
bagasse. This is used as fuel in the boilers to produce steam This high-pressure steam is
used for producing power.

Power house:

The high-pressure steam from the boiler is used to produce electric power through
turbo generator unit. The electric power generated is used to run the mills and other
equipment’s in the factory. The low-pressure steam coming out of the turbine is used
for the process.
9
Clarification house:

The extracted juice from the mills having pH around 5.0 is weighed in juice weighing
scale. It is pumped through primary juice heaters and heated up to 65°C. The heated
juice is treated with the lime to a pH of 9.0 and again with SO2 gas to 7.0 pH for the
removal of non-sugar material (purification).

This treated juice is further heated to 100°C in the secondary juice heaters and sent to
clarifier in order to remove the formed non-sugar particles (mud) by setting action.

The settled mud liquid is filtered in the vacuum filter and is separated into filtered juice
and mud.

The obtained clear juice from the clarifier is sent to evaporators for concentration.

Evaporation:

The clear juice is concentrated by removal of water in the 5-stage evaporator. Low
pressure steam from the turbo generator is used as the fuel in the evaporator. The vapor
generated in different stages is used as fuel for various boiling. The hot condensate
produced in the evaporator is used for boiling water and other purposes.

The concentrated juice called syrup coming out of the evaporator is sent for further
clarification.

Syrup clarification and sulphitation:

The syrup is clarified with phosphoric acid and flocculants and the mud produced is
separated through filters. The clear syrup is again sulphited to pH of 5.0 with S02 gas
and taken to pan section for sugar crystallization.

Crystallization at pan station:

Crystallization is done in 3 stages (A, B, C) in the pans.

A-Boiling is done with syrup and melt, B-Boiling with A-Molasses and C-Boiling with
B-Molasses. The molasses is sent as raw material for alcohol production in distillery.

Centrifugal:

The boiled massecuite (sugar crystal+ liquid) from the pan is stored in the
crystallizers and sent to centrifugal.

10
 The sugar and molasses in the massecuite are separated by the centrifugal action in
the centrifugal machines. The separated A-sugar is dried/cooled and sent to sugar
grader unit for sieving into separate sizes and sent for bagging. B & C- sugar is again
melted and reprocessed in the A- Boiling.

Sugar bagging:

The sugar is graded as L-30, M-30 and S-30 as per the Indian Sugar Standards and
sent to sugar bins for storing and bagging. The sugar is weighed to 100kgs per bag and
50 kgs per bag in the automatic weighing machine, stitched and sent to go down.

Sugar godown:

The sugar bags are stored in the godown as stacks for marketing. 90% of the total
production is released as free sale and 10% of the total production as levy scale under
release order from the sugar directorate, Government of India

Disposal of the main & By-products:

The main product from the cane is white consumption sugar and by-products are
Bagasse powder, Filter cake and Molasses.

• Sugar is sold to the buyers in the local market in our country and also exported
to foreign countries.
• Bagasse is utilized as fuel in our boiler.
• Excess power is produced and is also sold to Tamil Nadu Electricity Board.
• Filter cake is supplied to cane growers.
• Molasses is stored and sent to distillery.

Production department consists of two sections namely

• Manufacturing section  Engineering section.

11
3.1.1 ENGINEERING SECTION

This section consists of workshop. It maintains all the work connected with plant and
machinery.

Workshop: -

In this workshop machinery work is done. The spares and materials are fabricated
using the lather machines in the workshop, shaping like square cutting etc is also done
in the workshop.

3.1.2 MANUFACTURING SECTION

The manufacturing section again divided in to 3 sub sections.

• Laboratory
• Manufacturing process
• Go down

LABORATORY:

The factory has a separate well-equipped laboratory. The lab prepares hourly reports.

The main activity of the lab is

• To check the content of sugar in the sugarcane and also fixing the correct shape
and size of sugar.
• To determines the percentage of water content in the dilution of juice.
• To determines as well as maintaining the temperature of boiling juice.
• Choice of color and size of sugar.
• To manage time and quality.
• To decided the percentage and contents and chemicals to be added during
production.
• To finds the PH of water through universal indicator.

GODOWN:

The sugar bags are stored in the godown as stacks for marketing. 90% of the total
production is released as free sale and 10% of the total production as levy scale under
release order from the sugar directorate, Government of India.

12
3.2 LABOUR OFFICE DEPARTMENT
This department is concerned with the selection and placement.

• Recruitment.
• Development and training to workers
• Development evaluation of workers
• Wage and salary administration
• Maintenance of statutory records.
• Welfare measures for employee
• Maintenance of personal records
• Preparation of salary
• Promotions, transfers.

3.2.1 ROLE OF LABOUR OFFICER IN SAKTHI SUGAR

In Sakthi sugars, the personal manager takes all the above responsibilities. Personal
manager controls the time office department, hostel maintenance, security and canteen.

The candidates are selected to particular job according to their qualification and
experiences. Training is given on the job only.

Manager and supervisor are continuously inspecting every worker to access their
performance and they give better promotion for hard workers. Managers ensure
development of employee’s competency, motivation and effectiveness in systematic
and planned way.

Equal-Opportunities Employer

Sakthi Sugars Ltd is an equal opportunity employer. It treats its employees and all
qualified aspirants seeking employment with the company equally, regardless of their
race and birth. The employee policies and practices of the company, considers merit
alone as the only factor of discretion and ensures equal opportunity to those eligible.

13
Work / Life balance

The organization believes that employees must have a balanced professional and
personal life. While it respects personal space and time the organization also expects
from its employees a firm commitment to their roles and responsibilities within the
organization.

Industrial Relations

Sakthi Sugars maintains cordial and friendly Industrial Relations with employees
and the Unions. The HR department of the company plays a vital role in crafting and
implementing people oriented industrial practices across the organization for
establishing a healthier value-based relationship between employees and the
organization.

Health, safety and Environment

Sakthi Sugars provides its employees clean, safe and healthy environment inside &
outside the operational areas of its businesses. To ensure this the company has
delineated strict norms on industrial safety. The operational space of our entire
infrastructure has been intuitively designed and maintained for smooth and safe conduct
of business affairs.

The company is particular about the regulations concerning the preservation of

environment in the areas where it has constituted its production facilities. Sakthi Sugars
Limited is committed to prevent any excess or negligent use of natural resources. It also
strives to minimize hazardous secretions in production and disposal of waste/production
excesses that can harm the environment.

Corporate Citizenship

The Sakthi Sugars Limited acts in compliance with all relevant laws and
regulations of the state. In addition to that it has pro actively assumed the role of a
socially responsible business by extending its assistance to people in its surrounding
regions. The social welfare and development initiatives of the company are aimed at
supporting those in dire need and in turn provide them the required assistance to
enhance their quality of life, both economically and socially. In the same way the
company has been contributing extensively in the fields of community health, family
welfare, water management, vocational training, education and literacy, development of

14
 rural roads and in the application of modern scientific and managerial techniques for
nurturing agriculture and uplifting the farming community.

NUMBER OF WORKERS

Officers 24

Regular 172

Trainees 351

Daily wages with order 17

Total 564

SALARY:

Minimum salary is not less than Rs1950. The breakup of salary is under

Badly allowance 50

Cost of living allowance 18% of basic salary

House rent allowance 10% of basic salary

Utility allowance 10% of basic salary

Special allowance 300

SHIFTS

There are 4 types of shifts as follows

Shift I 6.00 am to 2.00 pm

Shift II 2.00 pm to 10.00 pm

Shift III 10.00 pm to 6.00 am

Shift IV 8.30 am to 5.30 pm

General shift 8.00 am to 5.00 pm

Insurance

15
The company is paying Rs 300 for each employee working in the company for any
accidents met by the employees during working hours with medical leave.

Provident fund

The fund is credited by an amount detected from their monthly salary at a certain rate.
The company is contributing 12% of the employee’s wages as provident fund.

Pension

This amount is received by the employee on his retirement. Here 12% of his monthly
salary is given as pension monthly. Here in this 12% (8.33% given under family
pension fund and 3.673% given under employee pension scheme).

Bonus

As per the company’s act 1956, 8.33% of bonus is compulsory for an employee. Here
the employees are given bonus at the time of Diwali. 20% is given as bonus.

3.2.2 TIME OFFICE

Time office is one of the important sections of administration department. This

section maintains the attendance of workers. It also shows records of particular
workers about his working hours etc. It evaluates the workers punctuality, discipline
and uniforms and maintains documents and records for the future reference purpose.

FUNCTIONS

• Showing the absenteeism report to HOD.

• To receive the attendance cards from the workers.
• Siren maintenance (signal value)
• Observation of employees
• Maintaining Notice Board

In time office there are 4 types of leaves.

SICK LEAVE: Employees are eligible to take leave on the sickness. 8 days sick leave
shall be granted with full wages.

CASUAL LEAVE: 10 days casual leave shall be granted with full wages or pay
including DA to every workman.

16
PRIVILEGED LEAVE: 15 Days privileged leave shall be granted with full wages or
pay including DA to every workman for every completed year.

3.2.3 SECURITY OFFICE

Security office is also one of the important sections of the HR department. There are
totally 39 guards

DUTIES OF SECURITY OFFICER

• Maintain the silencing in the factory area.

• Time maintenance of workers.
• Raw materials are checked according to the voucher.
• Incoming materials are checked, if they are right, they will record inward and
seal the bill and leave inside.
• If outgoing material from the industry that person must and should have got
pass and it is entered in outwards.
• If goods are returnable, it will be entered in return A/C book.
• A/C’s are submitted to M.D. daily.

3.2.4 FACILITY TO WORKERS

• Availability of rest house with TV facility.

• Availability of quarters.
• Providing 2 wheelers for employees who are visiting the field to supervise and
check the availability cane.
• Executive levels are provided with 4 wheelers.
• Weekly one holiday of any in a week

NATIONAL HOLIDAY

The industry gives the leave for the national holidays; fair days of national holidays
should be given to the employees, such as Independence Day, Republic Day, and
Gandhi Jayanti etc.

17
3.3 MARKETING DEPARTMENT
This section will take care of all sale transactions like sale of sugar, molasses,
Bagasse and scrap material. The factory sells the sugar according to central
government notification. The central government sends the notice to the factory every
month regarding sale of sugar, without notice the sugar is not sold to anybody. The
government is giving permission for a particular period, particular for sale of sugar.

The sugar is sold to the buyer who quotes highest price. In this section, some
records like sale of sugar register, molasses register, Bagasse registers and scrap
material registers are maintained.

The marketing activities include the following

• Sourcing and supplying information

• Standardization and grading
• Storage
• Financing
• Risk taking

Marketing manager is in charge of the marketing department. Advertisements are not

necessary in sugar industry because customer won’t ask for Specific company branded
sugar.

FUNCTIONS

• Marketing department has to keep in contact with dealers and agents

• Getting order from parties
• Arranging for delivery to parties
• Maintaining records of sales
• Sending reports to managing director

For every organization, marketing is an important factor to get succeed in the field.
This organization has an enhanced marketing value all over India. The products of
Sakthi sugar industry have its customer throughout India

Marketing is important in building relationship with customer also to create product

awareness. Without effective marketing strategy, the company will lose customer and
also loses the revenue.

18
3.3.1 PRODUCT OF SALE

The organization undertakes selling activities in two methods: -

FREE SALE: -

Free sale of sugar is being done to bulk purchases on the basis of tenders called,
collected, negotiated and sold.

LEVY SALE: -

This is being sold to the government of Tamilnadu on levy basis. The government then
distributes the same to the public through public distribution outlets at predetermined
reasonable price.

The primary marketing activity is transport. The purpose of transport is to deliver the
product to the consumer in the quickest and safest way.

EXPORTS:

Refined sugars and less than 45 CUMSA sugar are exported. Efforts are taken to
increase the exports in for coming years.

Foreign exchange used- 1769.48 lakhs

Foreign exchange earned- 10545.11 lakhs.

3.4 CANE DEPARTMENT

The function of cane department is to supply raw materials to the sugar factory. They
provide the agricultural faculties to the4 farmers they provide the guidance and helps
the farmers regarding farming or cultivation and provides loans, fertilizers and water
facilities and also provides the inter crop seeds for planting. Every village is engaged
with the particular cane office and that office provides those help as they require only
sugarcane

There are 13 divisional office and 64 sections around sivagangai. In factory itself there
are two division’s one in mill north division and another in mill south division.

19
 Other divisions are as follows:

1. Thirupuvanam

2. Puthuvayal

3. Paramakudi

4. Devakottai

5. Sivagangai

6. Mathakupatti

7. kamuthi

8. V.Pudur.

Each division office has one officer, one clerk and 6-7 cane assistants. The duty of
Cane assistants to visit the farmers in their nearby villages and make a contract with them after
that the assistants measures the acres owned by the farmers and provide the canes seeds to them
based in the acre level they provide 4-4.5 tons of cane seeds per acre they guide the farmers and
offer the time period up to 12 months at the end of 12 th month cane department allot workers to
harvest and transported to the factory.

3.4.1 SUGAR SEASON

One sugar is 12 months from October to September. The actual crushing will
depend upon the availability of sugar cane. This will normally be about 6 months in a
year.

3.4.2 CANE PRICE:

Statutory Minimum price:

The government of India fixes the statutory minimum cane price the sugar
cane control order, 1966. This price as to be paid by the sugar mill within 14 days from
the date of supply of cane failing which interest at the rate of 15% will have to be paid
to the cane growers till the date of payment. The statutory minimum cane price is fixed
by the government of India for the recovery of 9.50%.

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 The cane price is fixed for a sugar mills based on the peak period recovery
of the mill. The peak period recovery refers to the average recovery obtained from 1 st
December to 31st March of the proceeding season.

State advised price:

The state government announce cane price every over and above the statutory
minimum price fixed by the government of the India and this price is the known as state
advised price. The cane price is fixed by the government and paid by the mills are
furnished in Annexure-II in balance sheet book.

CANE DEPARTMENT

YARD DIVISION RESEARCH AND

DEPARTMENT DEPARTMENT DEVELOPM ENT

The cane department is divided into three departments

Yard department:

Main work here is weighing the loads of sugar from different villages and sent for
processing.

Division department:

It gives all facilities and guidance to the farmers.

Research and development

It researches about the land and take the required measures and maintenance for the
development.

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3.5 STORE DEPARTMENT
It is the department which stores the industrial material and maintains it. Purchase
department receives the purchase order from the user department or from the stores
department. Then purchase department enquires the party and purchase from the regular
party or some other party and packs the material and sends to the purchase department
and they send to the storage. If there is any damage then they will return to them within
a week.

This department has technical persons to test the purchased material. It could be done
by both manual and with the help of testing told. Store department has the storing
capacity of 3000 materials. This department issues 50-60 materials per day to other
department such as processing and engineering etc.

The materials stored in this department are

• Chemicals
• Spares
• Coal
• Bolt-nuts
• Bearings
• V-belts
• Electrical parts
• Steam joints
• Lubricants
• Liquid oxygen
• Caustic soda
• Gunny

When departments require any material, this department sends materials to that
particular department. Each item has a unique item code which is arranged in the racks,
wooden cupboard, shelves etc. They also store the scrap/old material and sell them to
different required parties. They import the hardware spares from brazil and Australia.
Repairing is first done in Bangalore; if it’s not repaired then machines are sent to china.

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3.6 FINANCE DEPARTMENT
Finance is the lifeblood of any business. It is concerned with the activated of funds
and wide application on the funds. The success of a business lies with the effective
management of finance in the company. Finance management is that managerial
activity which is consumed with the planning and controlling of the firm’s financial
resources.

Finance helps in the smooth running of an organization for example a business

needs Finance to commerce operation. One of the major roles of the finance department
is to identify appropriate financial information prior to communicating this information
to managers and decision-makers. Finance is a term used for money. In business it is
used. Planning and organizing and controlling of finance in a business are a primary
activity. We can say that finance is a basic needed thing to start a business.

It is the most important department in which most of the function is carried out such as
accounting.

Planning, mobilization and effective utilization of funds.

Functions:

• Dealing with banks and finance institutions.

• To monitor the budget and budgetary control.
• Monitoring the funds collection and payments.
• Finance planning and mobilization of cash.
• Controlling inflow and outflow of cash.
• To exercise and cost control and cost reduction technique s  To see that
financial interest of the company.
• To protest the financial interest of the company.
• It helps in achieving the business results profitably.
• Waste management.

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3.7 ACCOUNTS DEPARTMENT
Sakthi sugar is an industrial organization, manufacturing sugar, power and ethanol.

Needs for Accounting systems:

a. To ascertain the profit and loss of the business.

b. To ascertain the financial position of the business.

c. To provide control over assets and properties of the company.

d. To provide information to tax authorities like sales tax, income tax, control, exercise,
etc.

e. Assistance to management on

a. Decision Making.

b. Forward planning and Budgeting

c. Controlling various management functions

f. To provide information to Government central, state and various local bodies

The main work of this department is recording the financial transactions and to
receive money and payment and is also responsible for the bank transactions.

The accounts statement such as profit and loss accounts, balance sheet general ledger,
and all other ledger are helpful to the various departments is administered by the
accountant and an accountant.

Accounts manager makes the important financial decisions with consultation of

Director and Chief executive of company.

The accounts department is responsible for the entire accounting process of the
organization regarding the recording of transactions, designing the accounting policies
and accounting system, preparing financial statements and computer application. If we
consider a company a cell then we can say the accounts department has role of nucleus.

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3.7.1 Accounting system:

Accounting system at here is centralized and on accrual basis. all accounts are
maintained in Coimbatore head office. The process of accounting system starts from the
preparation of voucher. The following are different types of vouchers prepared at
Sakthi sugars PVT ltd.

3.7.2 Journal Voucher:

As accounting system is an accrual basis, so according entries are passed on

journal voucher at first step. This is also known adjustment voucher. This is prepared
for adjusting entry. Vouchers are after every transaction. Accounts Manager and
Director verify the voucher respectively. If they have any question they can ask relevant
person if they are no enquiry then they will put their signatures on voucher. Now it is
time to record these vouchers in books of accounts.

3.7.3 Payment voucher:

This voucher is prepared at this time of making payments to any party. Party
name is debited with the amount has been made. Payment vouchers are used for the
payment up to Rs. 6000.Payments more than this are made through bank.

3.7.4 Credit voucher:

As name of voucher represents, this voucher is prepared when some amount is

received from any party. In this case party name is credited by the amount that has been
received. The accounting is mainly divided in two following three sections.

• Stores section
• Salaries and wages section
• General accounts section

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3.7.5 Attendance Allowance:

Leave encashment is given to those employees who save their holidays and don’t
avail them. This is given to their per day salary multiply with number of days of
holidays not availed.

3.7.6 Books of Accounts Department:

• Cash book
• Bank book
• Stores purchase journal
• Raw material purchase journal
• Sales journal
• General journal
• Balance sheet ledger
• Profit and loss account
• Purchase return book
• Sales return book
• Bills payable book

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 CHAPTER-4
LEARNINGS FROM SAKTHI SUGARS LIMITED

4.1 LEARNING
Through my summer internship project, I understood:

• Step wise process taking place in production department

• Efficiency of personal manager in administering labor problems, welfare and
attendance records
• The marketing strategy followed in the company
• Role of accounts department in managing records of all bills payable and
receivable, balance sheet, annual report and in auditing.

4.2 ISSUES IDENTIFIED

• So far now, recent hiring has been not done to post of vacancy

• Less value in the share market

• Exports are comparatively less though they have wide scope

• Ethanol production can be increased

• Retail marketing can be done like parry sugar

• Financial loss is more compared to previous year

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 CHAPTER-5

CONCLUSION:

The summer internship project at SAKTHI SUGARS PRIVATE LTD

helped me the various processes that took place within every department
and about how the departments are integrated to achieve the organizational
goal as a whole. It was beneficial as there was an opportunity to practically
learn some of the concepts that I had been studying theoretically. This
internship helped me a lot in terms of industrial exposure and gaining
knowledge about actual management practices of the corporate.

REFERENCE:

www.sakthisugars.com/ accessed on 3th May 2014

http://economictimes.indiatimes.com/sakthi-sugars-ltd/stocks/companyid-13135.cms

accessed on 8th May 2014

http://www.moneycontrol.com/india/stockpricequote/sugar/sakthisugars/SS accessed on

13th May 2014 http://en.wikipedia.org/wiki/Sakthi_Sugars accessed on 25th May 2014

http://www.sakthigroup.com/home.html accessed on 1st June 2014

http://www.sakthisugars.com/profile.pdf / accessed on 15th June 2014

http://en.wikipedia.org/wiki/N._Mahalingam / accessed on 23rd July 2014

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