PROCESS MAPPING OF DOCUMENTS IN FINANCE DIVISION

Zuari Industries limited

Sachin S. Acharya

INTRODUCTION

Zuari Agro Chemicals Limited was setup in 1967 to produce 220,000 tonnes of Ammonia & 340,000 tonnes of Urea in collaboration between the House of Birla & US steel corporations.

Annual Turnover:` 5, 52,283 lacs March 2012 Profit before Tax:` 29,911 lacs March 2012 Dividend:` 4.50 per equity share. Net Profit:` 16,688 lacs March 2012

PRODUCT MARKETING

Zuaris Jai Kisaan range of fertilizers is marketed in the five states of Maharashtra, Karnataka, Andhra Pradesh, Goa and Tamil Nadu through a network of 2500 authorised dealers.

Products Jai Kisaan Urea Sampurna Samrat Samarth Sampatti

Market Position The brand equity of the company is very high in the states of Goa, Maharashtra, Karnataka & parts of Andhra Pradesh.

CONTD..
Marketing Strategy Meetings Trainings Field demonstrations Crop seminars Visits to agricultural fairs & education through literature & audio visual aids.

HUMAN RESOURCE DEVELOPMENT

Zuari

believes in employee satisfaction & Engagement and believes in continuously evolving building new practices to develop the people and organisation. like:Canteen facilities Service Award Facilities for children and other facilities are provided to the employees.

Facilities

SWOT ANALYSIS
STRENGTH

Full range of Agri inputs needed by farming community, such as fertilisers, pesticides, micronutrients, speciality fertilisers, compost. Company is now regarded as one of the major suppliers of imported fertilisers in the country.

WEAKNESS

The company has to relie on imported products for raw materials. The import dues are more so the cost of the product increases.

CONTD..
OPPORTUNITIES

Government initiative in terms of increase in Foreign Institutional Investors (FII) will help the company by way of funds and accelerating its growth.

WEAKNESS

Dependence on imports to cater to market needs(Phosphatic fertilisers).

PORTERS 5 FORCES
THREAT OF ENTRY LIMITED Due to the government restriction the barrier to entry for urea is limited /under the control of the government BARGAINING POWER OF BUYERS LOW
The bargaining power of buyers is low as the rates of the fertiliser product are controlled by the government.

BARGAINING POWER OF SUPPLIERS LIMITED

Rates are based on the guidelines fixed by the government, the bargaining power of suppliers is very limited.

CONTD
THREAT OF SUBSTITUTES LOW

Suppliers are less in number as compared to the demand for the fertiliser product

COMPETITIVE RIVALRY LIMITED

The fertiliser product is a bulky material required in huge quantities. Therefore the supply should come from the imports and the country is not self-sufficient. Thus the scope of competitive rivalry is limited for the fertiliser products.

PROJECT

OPERATIONAL ACCOUNTS DEPARTMENT COMMERCIAL ACCOUNTS DEPARTMENT TREASURY DEPARTMENT

COST ACCOUNTS & MGT INFORMATION SYSTEM

FINANCIAL ACCOUNTS DEPARTMENT

OPERATIONAL ACCOUNTS DEPARTMENT

Operational department is subdivided into: Raw material Accounts (Imported & Indigenous) Fixed Assets Accounts Repairs & Maintainance Accounts Indirect Taxes

PURCHASES
ACTIVITY
PROCESS
REORDER LEVEL OF

DOCUMENTS

INVENTORY INDENT PREPARED BY USER DEPARTMENT INDENT RECOMMENDED BY LIMITS OF AUTHORITY LIMITS OF AUTHORITY AUTH. APPROVE SCREENING COMMITTEE GRIN (SAP & HARD COPY)

PURCHASE PROCESS

STORES DEPT. APPROVES

PURCHASE DEPT

PURCHASE ORDER

POS SENT TO OAD

DOCUMENTS
Documents

Received are:

Indent Purchase Order Bill Of Lading/ Air Way Bill Packing List Certificate of Origin Suppliers Challan Invoice Bill Insurance

CONTD
Documents MIRO Documents MIRO

Created are: Forwarded are:

Payment

request to Treasury

COMMERCIAL ACCOUNTS DEPARTMENT

Deals

with the accounting sales and collection, sales related expenses like warehousing, freight, sales promotions, indigenous purchase of fertilisers, indigenous pesticides, imported fertilisers, data compiling, import payment and all work related to import of traded goods.

SALES
ACTIVITY PROCESS
I-NOTIFIER

DOCUMENTS

SALES ORDER BY DEALER SALES PROCESS DELIVERY OF GOODS

SALES ORDER

INVOICE BILL DEBIT NOTE/ CREDIT NOTE DEALERS STATEMENT A/C

INVOICNG & COLLECTION

DOCUMENTS

Documents Received are: Stevedoring Bills Transportation Railway Freight Bills Material Handling Bills Warehousing Bills Custom Duty, Statutory Payments Sales Promotion Expenses, Advertisement Expenses Painting Expenses Credit Notes/ Debit Notes Credit/Debit Note Dealers Statement of Accounts (DSA) Overdue Interest (ODI), Prepaid Interest (PI) Pro-rata Report

CONTD

Documents Created are: Payment, Journal Vouchers Invoice Debit, Credit Note Subsidy Claim Bills
Documents Forwarded are: Payment Voucher Regions (16): Release Order Documents (ROD) Invoice Price Card

TREASURY DEPARTMENT
Treasury

department is into raising and realising funds. Payments are made on a daily basis. Nature of payments is monthly payments to suppliers, services provided towards purchase of assets.

Payment

Electronic 98% Cheques/DD(Demand Draft) 2%

PAYMENTS
ACTIVITY PROCESS
REQUEST FROM PURCHASE/OPERATION DEPARTMENT PROCESS SAP - BANK PAYMENT VOUCHER IS PREPARED COLLATES AND CREATE AN ENCRYPTED FILE UPLOADS THE FILE PAYMENTS ON THE HDFC E-NET VERIFICATION OF THE FILES TWO - AUTHORISATIONS CONFIRMATION PAYMENT PAYMENT CONFIRMATION MAIL SUMMARY OF PAYMENT - REPORT CHEQUE / DD REQUEST / RTGS LETTER BANK PAYMENT VOUCHER

DOCUMENTS

DOCUMENTS
Documents

Received are:

MIRO Created are: Payment Voucher Forwarded are:

Documents

Documents

---

COST ACCOUNT & MGT INFORMATION SYSTEM

Cost Accounts

department is into compiling all MIS reports (management information reports) accounts related to all departments.

Budget

(capital and revenue expenditures)

Performance

Analysis Report (PAR) Calculation of actual usage ratios Statement of defective bags Administrative expenses Overtime report

CONTD

Analysis of sales data region wise Analysis of debtors Freight/ Reimbursement Rail and Road dispatches report Transit handling charges

FINANCIAL ACCOUNTS DEPARTMENT

The

compilation and finalisation of accounts is done in this department. It also looks after all the employee related expenses like salary, Provident Fund, Super Annuation Fund It also makes establishment and administrative payments like travelling and consultation expenses, and taxation i.e. tax audit, tax returns

SALARY
ACTIVITY PROCESS
SALARY MASTER

DOCUMENTS
INTER-DEPARTMENTAL MEMO

ATTENDANCE

CONTROL OF ATTENDANCE &

SALARY PROCESS

STATUTORY DEDUCTION

CONTROL OF LEAVE

PROCESSING OF SALARY IN FINANCIAL ACCOUNTS

ADVICE FOR CREDITING EMPLOYEE BANK ACCOUNT

DISBURSMENT

DOCUMENTS
Documents

Received are:

Bills Documents Created are: Payment Voucher Journal Voucher (JV) Expense Voucher Documents Forwarded are: Payment Voucher Expense Voucher

RECOMMENDATIONS
All

import related documents which are office copies for e.g.. bill of lading, packing slips, etc. can be scanned and stored so that use of less files and space to store. with each individuals (Pertaining to his department records) for easily locating the files. request (f-47) is taken 2 copies, one is forwarded to Treasury and the other is filled within the department records. As there is a workflow, only a mail to Treasury department can be sent or in case Treasury department wants Hardcopy and at least ONLY ONE copy can be printed.

INDEX

Payment

CONTD
Company

can create more awareness about filing the LTA and Declaration forms online. If possible the vouchers generated can be printed both sides to save paper and easy filing of documents. More system driven workflow should be adopted rather than depending on hard copies.

LEARNINGS &CONCLUSION
LEARNINGS

Letter of Credit Procedure/ Process. Payments(Domestic ) Salary Process. Sale Procedure /Process. Investments made by the company in increase Funds. Flow of documents for payments. Overall working of Finance Division.

CONTD
CONCLUSION

After 3 months of exposure in Zuari Industries Limited I came to know the importance of finance playing an important role in the company. Without finance an organisation is incomplete.

Proper utilisation of funds. Utilisation of Financial data to its maximum. Formation of effective cost cutting methods.

REFERENCES

Annual Report ZIL 2010-2011

http://business.mapsofindia.com/india-industry/fertilizer.html

http://economictimes.indiatimes.com/zuari-industries-

ltd/directorsreport/companyid-12793.cms
http://duncansfertiliser.blogspot.in/2012/02/zuari-industries-

q3-fy12-results-net.html