sip nirani sugars
TRANSCRIPT
ACKNOWLEDGMENT
I am the student of “Sana College of Information Science & Management
BBA III semester” very grateful to all the people who have provide their precious
time and advice for making this project successful.
Firstly, I am very grateful to “The Nirani Sugars Ltd.” for giving me an
opportunity to make this project in their organization.
I am thankful to “Mr. S.V.Kariyannavar (CEO) of Nirani Sugars Ltd,
Mudhol” for permitting me to do my project in their organization.
I sincerely express my thanks to my company project guide “Mr. M.S.
Heggalagi Manager (PMP)” of Nirani Sugars Ltd, Mudhol. For his strong support
and inspiration during my project period.
I am heartily thankful to all the Executives of the company for their valuable
guidance and for sharing their experience in completing this project successfully.
I am heartily thankful to my internal guide “Prof.Pradeep Gupta” and all
faculty members of my institution for their valuable guidance in completing this
project successfully.
I express my sincere thanks to our Director “Prof.Uttam Kinnange” for
providing us all the facilities to complete the report and study successfully.
THOUDAM ALEX SINGH
BBA 3rd Semester
NIRANI SUGARS LTD.MUDHOL
DECLARATION
I, the undersigned, hereby do declare that the project report entitled “The Study of
Organization in Nirani sugars ltd. Mudhol” prepared and submitted in partial
fulfillment of the requirement of the degree of Bachelor of Business Administration;
Awarded by the Karnataka University, Dharwad. Is my original work. The
empirical findings in this report are based on data collected by me.
This has not been previously submitted for the award of any Degree, Diploma
or Associate ship or any other similar titles.
Place: HUBLI
Date: THOUDAM ALEX SINGH
BBA 3rd Semester
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CONTENTS
S.NO TITLES PAGE NO
1.
CHAPTER – I
1) EXECUTIVE SUMMARY
2) OBJECTIVES OF STUDY
3) THE WORKING CAPITALPURPOSE
4) SCOPE OF STUDY
5) LIMITATION OF THE STUDY
6) METHODOLOGY
1-12
2.CHAPTER – II
COMPANY PROFILE 13-18
3.
CHAPTER – III
PRODUCTION PROFILE 19-24
4.CHAPTER – IV
STUDY OF DEPARTMENTS 25-46
5CHAPTER – V
WORKING CAPITAL MANAGEMENT47-51
6CHAPTER – VI
DATA REPORT52-62
7 FINDINGS AND RECOMANDATION 63-64
8 SUGGESTION AND CONCLUSION 65-66
9 BIBLIOGRAPHY 67
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NIRANI SUGARS LTD.MUDHOL
CHAPTER - I
1) EXECUTIVE SUMMARY
This summer project “A STUDY OF WORKING CAPITAL IN NIRANI
SUGARS LTD.” deals to ascertain this efficiency of working capital management of
the company.
Working capital may be regarded as lifeblood of business. Working capital is
needed to meet the day-to-day requirement of the business unit. The utilization of
working capital assets is possible only by efficient working capital management. This
study on working capital management is conducted in Nirani sugars Ltd.
Working capital management not only shows the financial efficiency of
business, but also its credit worthiness, which has gained importance in these days of
credit squeeze. Therefore, study of the management of working capital is very
necessary. Objective of the project was to study the pattern and procedures followed
for managing various components of working capital, so as to evaluate the efficiency
of working capital management. So, this study intends to comprehensively evaluate
the inventory, receivables, creditors and cash management. The study also aims to
analyze the alternative sources of working capital financing employed by Nirani
sugars Ltd.
Desk Research method is adopted for this study. The required information was
collected through secondary sources.
Secondary data were collected from various sources including the annual
reports of the company for the year 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09,
2009-10.
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NIRANI SUGARS LTD.MUDHOL
2) OBJECTIVES OF STUDY
1) To study the overall working of the organization. i.e. study of all
department & organization structure
2) To study the efficiency of working capital management of the company
3) To study the efficiency of cash, inventory and receivables management of
the company
4) To understand and analyze the working capital position of Nirani Sugars Ltd.
During the period of 2004-2010
3) THE WORKING CAPITAL PURPOSE
For purchasing raw materials, components and spare parts
For paying wages and salaries
To increase day-to-day expense and overhead costs like fuel, power and office
expense etc.
To meet selling costs of packaging, advertising etc…
To provide credit facilities to customers
4) SCOPE OF STUDY
Since the decision regarding working capital are of an operating nature not one
time decision, the scope of the study is regarded towards identifying important areas
of control and to establish model for better control of the various components of
working capital.
The study would also attempt to identify the various sources available for
financing of working capital.
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NIRANI SUGARS LTD.MUDHOL
The study gives a fair idea of improvement in efficiency of working capital
management and also to have proper control over the components of working capital
and managing of efficiency.
5) LIMITATION OF THE STUDY
This study deals only with the data made available. Hence the result of this
study cannot judge the business of the firm in general
The study have been influenced by the limitation of the ratio analysis
The study extensively uses the data provided is the financial reports of the
firm which may also have their own limited perspective
The analysis made on the working capital management is for a particular
period of time the current assets and current liabilities will change for an
analysis made at any other of time.
6) METHODOLOGY
Desk Research method is adopted for this study. The required information was
collected through secondary sources.
Secondary data were collected from various sources including the annual
reports of the company for the year 2004-05, 2005-06, 2006-07, 2007-08, and 2008-
09, 2009-10.
Ratio analysis is the major tool for analyzing the working capital management
of Nirani Sugars Ltd... And also the information for 6 years is collected.
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INDUSTRIAL PROFILE
India is the largest consumer & second largest producer of sugar in the world.
The Indian sugar industry second large agro industry Located in the rural India.
The Indian sugar has a turnover of rs.500 billion per annum & it contributes almost
rs.22.5 billion to the central & state exchequer as tax’s & excise duty every year. It is
the second largest agro-processing industry in the country after cotton textiles. With
453 operating sugar mills in different part of the country, Indian sugar industry has
been a focal point for a socio-economic development in the rural areas. About 50
million sugarcane farmers & a large number of agricultural labors are involved in
sugarcane cultivation & ancillary activities, constituting 7.5 % of the rural population.
Besides, the industry provides employment to about 2 million skilled/semi-skilled
workers & others mostly from the rural areas. The industry not only generates power
for its own requirement but surplus power for export to the grid based on by-product-
bagasse. It also produces ethyl alcohol, which is used for industrial &portable uses, &
can be used to manufacture ethanol, an ecology friendly &renewable fuel for blending
with petrol.
The sugar industry in the country uses only sugarcane as input; hence Sugar
Company’s have been established in large sugarcane growing states like Uttar
Pradesh, Maharashtra, Karnataka, Gujarat, and Tamil Nadu & Andhra Pradesh. In the
year 2005-06 these six states contributed more than 85 % of total sugar production in
the country; Uttar Pradesh, Maharashtra & Karnataka together contribute more than 65
% of total production.
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The given chart shows the state manner wise production in India for 2003-04 &
2005-06.
Sugar production by state in India
Source: Indian sugar magazine December 2005, published by sigma.
The government de-licensed the sugar sector in august 1998, thereby removing the
restrictions on expansion of existing capacity as well as on establishment of new units,
with the only stipulation that a minimum distance of Kms would continue to be observed
between an existing sugar mill & a new mill.
State 2003-04 % of total 2005-06 % of total
Uttar Pradesh 5.65 28.06% 4.55 33.60%
Maharashtra 6.22 30.86% 3.18 23.44%
Karnataka 1.87 9.28% 1.12 8.24%
Gujarat 1.25 6.22% 1.07 7.87%
Tamil Nadu 1.64 8.16% 0.92 6.80%
Andhra Pradesh 1.21 6.01% 0.89 6.54%
Haryana 0.64 3.16% 0.58 4.30%
Punjab 0.59 2.91% 0.39 2.88%
Uttaranchal 0.50 2.47% 0.39 2.86%
Bihar 0.41 2.03% 0.27 2.02%
Others 0.17 0.85% 0.20 1.46%
Total 20.14 100.00% 13.55 100.00%
There are 566 installed sugar mills in the country with a production
capacity of 180 lack mts of sugar, of which only 453working.These mills are located
in 18 states of the country. Around 315 of the total installed mills are co-operative
sector, 189 in the private sector & 62 in public sector.
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Sugarcane availability
Sugarcane occupies about 2.7% of the total cultivated area & it is one of
the most important cash crops in the country. The area under sugarcane gradually
increased from 2.7 million hectors in 1980-81 to 4.3 million hector in 2003-04, mainly
because of much larger diversion of land from other crops to sugarcane by the farmer
for economic reason. The sugarcane area however declined in the year 2005-06 to 3.9
million hector & to 3.7 million hector in 2004-05, mainly due to drought & insect
attacks. From a level of 154 MMT in 1980-81, the sugar production increased to 241
MMT IN 1990-91 & further to 296 MMT in 2000-01. Since then it has been hovering
around 300 MMT until last year. In the season 2004-05, however, sugarcane
production decline to 236 MMT mainly due to deficiency & insect attacks. Not only
sugarcane acreage & sugarcane production has been increasing, ever drawl of
sugarcane by the sugar industry has also been increased over the period. In India,
sugarcane is utilized by sugar mils as well as by traditional sweeteners like jiggery &
khadisakhar producers.
The chart given below gives data on sugarcane utilization for different purposes:
SUGARCANE UTILIZATION
(% of sugarcane utilization for)
Year White
Sugar
Gur &
Khandsari
Seed, feed
& chewing
1990-1991 33.4 54.8 11.8
2000-2001 50.7 37.4 11.8
2001-2002 59.7 28.8 11.5
2002-2003 57.4 31.5 11.1
2003-2004 68.9 20.1 11.1
2004-2005 56.1 32.5 11.4
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NIRANI SUGARS LTD.MUDHOL
Sugar production:
Most of the sugar in India is manufacture & sold as “plantation white
sugar” which is produced by double sulphitation process, while the norms in
developed & emerging nations is refined sugar which is produced by the phosphitation
process.
Most of the mills in India are not equipped to make refined sugar mills
which are designed to produce refined sugar can manufacture sugar not only from
sugarcane but also from raw sugar which can be imported. Therefore, such mills can
run their production all the year round, as opposed to single state mills, which are
dependent upon the seasonal supply of sugarcane.
International sugar industry demand & supply
Brazil & India are the largest sugar producing countries followed by china, USA, Thailand, Austria, Mexico, Pakistan, and France & German. Global sugar production inched from approximately 125.88 MMT in 1995-96 to 149.4 MMT in 2002-03 & then declined to 143.7 MMT in 2003-04, where as consumption increased steadily from 118.1 MMT in 1995-96 to142.8 MMT in 2003-04 as shown in below given chart. The word consumption is projected to grow to 160.7 MMT by 2012 & 176.1 MMT by 2015.
The worlds largest consumers of sugars are India, china, Brazil, USA, Russia, Mexico, Pakistan, Indonesia, Germany & Egypt. According to USDA foreign agriculture service, the consumption of sugar in Asian countries has increased at a faster rate, as a direct result of increasing population, increasing per capita income & increased availability.
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NIRANI SUGARS LTD.MUDHOL
World sugar trade
World trade in raw sugar is typically around 22MMT & white sugar around 16MMT. Brazil is the largest importer followed by EU, Thailand, Australia & Cuba. The largest importers are Russia, Indonesia, UK, South Korea, Japan, Malaysia, and the Middle East & North Africa.
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NIRANI SUGARS LTD.MUDHOL
CHAPTER- 2
COMPANY PROFILE
INTRODUCTION
M/s Nirani sugars Ltd, Promoted by Mr.Murugesh R Nirani. B.E, D.B.M. a technical Graduate and local MLA of Bilagi and Minister of large and Medium Scale Industry Govt of Karnataka. He comes from an agricultural family from Bilagi Taluk of Bagalkot Dt. He started as an industrialist with setting up of a modern Khandasari Unit at Mudhol. He is also very actively involved as a Managing Director of Bilagi sugars mill Ltd, a new 2500 TCD sugar and Co-gen plant at his constituency Bilagi. The new unit is completed and commenced commercial production in December 2005. He has also been recognized and awarded Bharat Udyog Ratna award from Govt of India. He has also taken over
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NIRANI SUGARS LTD.MUDHOL
a sick mini cement plant of 100 TPD capacities at Mudhol area, which has now been put into commercial operation with a capacity of 200 TDP within a short span of time. Nirani sugars Ltd.is presently operating a sugar mill of 5000 tones cane / day (5000 TCD). This sugar mill was originally established as a khandasari sugar factory of 500 TCD in the year 1997-98. In fact this was the most modern khandasari sugar factory & was first in the country to have started with high pressure boiler, turbo generator set with captive power generation, multiple effect pressure evaporator system with falling film evaporators etc. it successfully produced goods quality white crystal sugar. But as khandasari unit, it had its own constraints due to technical limitations and govt policies.
Subsequently, making use of the govt. of India’s liberalized policy, vide govt of India notification DCS /S/14/97 dated 2-6-98, which permitted conversion of khandsari sugar Readopting vaccum evaporation & vaccum pan boiling systems along with related changes. NSL did not lose time to expand the capacity to 5000 TCD, side by side taking development measures to increase cane area & cane availability. Today NSL is a regular sugar factory with 5000 TCD capacity with improved efficiencies.
But however, NSL could not enjoy the economy of scale. According the company conceived a project to expand the sugar mill to 2500 TCD with cogeneration of power of 16MW. In order to reach the minimum viable capacity for a sugar unit, as per govt of India’s norms. While the same was in conceptual stage, the industrial scenario started changing. The industry in general started realizing that the sugar mills with cogeneration of power should have still higher capacities up to 10000 TCD. This has been widely recognized & appreciated by the policy makers at all levels, & the financial institutions. Further, it is also recognized that the stand alone sugar mills, even with viable capacity may find it difficult to operate profitably on a sustained basis in a view of the exposure to the international market. The industry has to with stand the pulls & pressures or ups & downs of the global market, which fluctuates depending upon the sugar scenario in different part of the world.
Having regard to the above. The new sugar projects in the country are coming up with a capacity of 5000 TCD & more with the facility of cogeneration of power. A number of existing mills in the country are expanding to even bigger capacities like 7500 TCD, 10000 TCD & so on.
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Falling in line with the above, NSL thought it prudent to make an upward revision and accordingly enhance the capacity to 5000 TCD from 2500 TCD as conceived earlier.
The cogeneration of power permits generation of surplus power, which is encashable and thus helps increase of income to the industry substantially on a sustained basis. The profitability of the cogeneration plant increases with increase in the size of the plant. Bigger cogeneration plants are feasible only with bigger sugar mills, either as forward integration or with back up support for fuel.
The market and the price for the power produced are assured as the surplus power so generated is under written by KPTCL through “power purchase Agreement”. The govt of Karnataka also shares the aforesaid viewpoint & encourages cogeneration of power by sugar factories using bagasse as a fuel. In support of this, the govt has announced a capital subsidy of Rs. 25 lakhs per MW of surplus power, for such cozen projects.
More importantly, it is important to note that private companies have come forward to purchase power from cozen. Plants offering even higher prices than those offered by electricity corporations of the state. In fact NSL has already entered into an agreement with TATA power trading company Ltd. For sale of power at a price of Rs3.61 per unit.
Having appreciated the above, it is imperative for NSL to go for expansion of the sugar mill from the present capacity of 5000 TCD to 10000 TCD. While doing so, it makes sense to update the technologies & modernize the entire plant. It needs no emphasis that the expansion project would be meaningful only if associated with the cogeneration of power & in turn associated with energy saving devices.
To match the sugar mill expansion from 5000 TCD to 10000 TCD, NSL proposes to double its cogeneration capacity also from 16MW to 48MW.
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NIRANI SUGARS LTD.MUDHOL
COMPANY PROFILE
Name of the company : NIRANI SUGARS LIMITED. MUDHOL
Address : Nirani Sugars Limited.
Vinayak Nagar, Sy No-166
Near Kulali Cross,
Jamakhandi Road
Mudhol – 587313
Dist: Bagalkot
Regd. Office : # 2053, High Point- II
45 Palace Road,
Bangalore – 560 001
Branch Office : Bijapur
Status of Company : Sole trading concern.
Constitution of the firm : Registered under companies act 1956
Financial Institutions : K.S.I.D.C, IDBI, BOI,
K.S.F.C
Bankers of the Company : I.C.I.C.I Bank Jamakhandi
S.B.I Mudhol Branch.
Indian Bank Lokapur.
Grameen bank Mudhol.
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NIRANI SUGARS LTD.MUDHOL
Products : Sugar (L30, M30, S30)
Molasses, Press Mud, Bagasse, Electricity.
Press Mud / Filter cake : This is also another type of product.
Sugar Storing Capacity : 3 lakh Bags.
AIMS AND OBJECTIVES
To make available good working condition and opportunity development with proper training and high moral.
To produce good quality sugar at acceptable prices to meet the increasing demand.
VISION
To establish production 60000 T.C.D at Mudhol.
To produce 40 Megawatt electricity.
To produce 12,000 liters of distillery unit.
To produce 10,000 ton Bio fertilizers.
MISSION
We will provide products of superior quality at competitive price and ensure
sustained profitability and growth.
We will protect the interest of all concerned promoters, shareholders,
customers, distributors, employees and community.
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NIRANI SUGARS LTD.MUDHOL
ORGANIZATION STRUCTURE
Chairman&MD : Murugesh R Nirani. (B.E.Civil)
Board of Directors : H R Nirani.Advocative
Kamala M Nirani
L R.Nirani
S R.Nirani
Administration : Sangamesh R Nirani (ExecutiveDirector)
R.V. Vatnal (Technical Director)
S.V. Karriyannavar (CEO)
S.C. Iitnal (GM of Plant)
M.R. Dabade (Dy GM Production)
M.S. Heggalagi (Manager, PMP)
B.S. Khandekar (GM Cane)
M.M. Hiremath (Finance)
S.C. Salagare (Chief Engineer)
S.G. Yaragatti (Stores purchase officer)
M.R. Agnihotri (Personnel officer)
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NIRANI SUGARS LTD.MUDHOL
CHAPTER 3
PRODUCT PROFILE
BY-PRODUCTS OF SUGAR INDUSTRY
The factory produces about 184400 Tones of plantation crystal white sugar. As per statute from Govt of India the sugar can be packed in 100 Kg net Gunny bags and 50 Kg net Polythene bags. As per the Indian sugar standards the sugar can be graded in 3 grades by size and color namely L, M, S (Size) and 29, 30 (color).
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Sugar Cane
Fuel Gases Bagasse
Utilization as Fuel for CO-GEN
Sugar
Direct Utilization
Filter Mud
Composite Fertilizer
Protein From Cane Juice
Distillery Industry
Fibrous Products
Furnace Ash
Molasses
EthanolRectified Spirit
NIRANI SUGARS LTD.MUDHOL
The factory envisages producing M30 and s30 grades. The storage of sugar will be done in a warehouse built in masonry and roofed with AC sheets. The size of the warehouse will be suitable to store about 50% of a season’s production.
The molasses which is a by product, is a highly viscous liquid.
The total production of molasses in a season will be about 40,480 Tone. Two steel
storage tanks of capacity 4000 tone each will be added. This can accommodate about 2
month’s production. As the demand for molasses is high, it is proposed to sell the
molasses to distilleries as raw material to produce alcohol.
Beside the finished goods and molasses storage space is required for Bagasse,
ash and filter mud. Adequate open will be provided for these in the factory for easy
and smooth working of the factory.
Main Product-White Crystal Sugar
The main product of the sugar manufacturing process is white crystal sugar.
This white crystal sugar is manufactured in the following grades:
1) L-30 [Large size sugar]
2) M-30 [Medium size sugar]
3) S1-30 [small size sugar]
PERFORMANCE OF NSL
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NIRANI SUGARS LTD.MUDHOL
1. TABLE SHOWING PRODUCTION OF SUGAR
2. TABLE SHOWING PRODUCTION OF BAGASSE
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YEAR SUGAR (in Qtls)
2005-2006 47,995
2006-2007 1,62,446
2007-2008 2,65,148
2008-2009 3,43,132
2009-2010 4,55,765
NIRANI SUGARS LTD.MUDHOL
3. TABLE SHOWING PRODUCTION OF MOLASSES
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YEAR BAGASSE (in Qtls)
2005-2006 142322.22
2006-2007 402859.12
20007-2008 684097.67
2008-2009 759807.39
2009-2010 897842.98
YEAR MOLASSES (in Qtls)
2005-2006 17895.70
2006-2007 49700.00
20007-2008 90781.42
2008-2009 143572.53
2009-2010 187673.87
NIRANI SUGARS LTD.MUDHOL
4. TABLE SHOWING SUGAR RECOVRY
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PRODUCTION
NIRANI SUGARS LTD.MUDHOL
CHAPTER 4
STUDY OF DEPARTMENTS
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YEAR SUGAR RECOVRY (%)
2005-2006 10.09 %
2006-2007 12.11 %
20007-2008 11.62 %
2008-2009 12.09%
2009-2010 13.87%
NIRANI SUGARS LTD.MUDHOL
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NIRANI SUGARS LTD.MUDHOL
FUNCTIONAL DEPARTMENTS
1. Human Resource Department
2. Marketing Department
3. Purchase Department
4. Cane Development Department
5. Production Department
6. Finance Department
7. Sales and Distribution Department
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NIRANI SUGARS LTD.MUDHOL
1. HUMAN RESOURCE DEPARTMENT
The Human Resource department is the primarily concerned with the human
constitution of an organization. It is concerned with the manpower recruitment,
remuneration, promotion, retirement etc., all related to human resource or labors of the
organization.
The Human Resource Department refers to the systematic approach to the
problem of selection, training motivating and retaining personnel in any organization.
It also considers with planning, organizing, directing the personnel functions in the
organization.
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NIRANI SUGARS LTD.MUDHOL
The department is also concerned with recruitment, selection and placement.
1 Development and training to the workers.
2 Development evaluation of the workers.
3 Wage and salary administration.
In Nirani Sugars the personnel manager takes all the above responsibilities and
undertakes the activities concerned with him.
Suitable candidates are selected to a particular job according to their
qualification and experience.
There is no necessary to give training to the workers on separate machine other
than actual production process. Hence training is given on the job only.
Manager and supervisor are continuously inspecting every worker to access
their performance and there is a better scope for hard workers.
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, dit, etc. it evaluates the workers punctuality,
discipline and uniforms and maintains documents and records for the future reference
purpose.
FUNCTIONS
1. Showing the absenteeism report of HOD.
2 .To receive the attendance cards from the workers.
3. To put attendance of the workers in he muster role.
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NIRANI SUGARS LTD.MUDHOL
In time office there are 4 types of leaves.
SICK LEAVE: employees are eligible to take have 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 the every workman.
PRIVILEGED LEAVE: 15 Days privileged leave shall be granted with full wages or
pay including DA to the every workman for every completed year.
SECURITY OFFICE: Security officer also one of the important section of the
administration department. There are totally 39 guards.
DUTIES OF SECURITY OFFICER
1 Maintain the silencing in the factory area.
2 Time maintenance of workers.
3 Raw materials are checked according to the voucher.
4 Incoming materials are checked, if they are right, they will records
inward and seal the bill and leave inside.
5 If out going material from the industry that person must and should have
got pass and it is entered in outwards.
6 If goods are returnable, it will be entered in return A/C book.
7 All times of A/C’s are submitted to M.D. daily.
FACILITY TO WORKERS
1 Availability of rest house with TV facility.
2 Availability of quarters.
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NIRANI SUGARS LTD.MUDHOL
3 Providing 2 wheelers for employees who are visiting the field to supervise
and check the availability cane.
4 Executive levels are provided with 4 wheelers.
5 Weekly one holiday of any in a week
NATIONAL HOLIDAYS
The industry can give 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.
DUTIES OF TIME OFFICE:-
1 Maintenance of clock
2 Sequencing the punching cards
3 Siren maintenance ( signal value )
4 Observation of employees
5 Maintaining Notice Board
6 Accepting leave letter application
7 Over time requisition
8 Absent statement
SHIFT WORKING:-
In a shift of 8 hours factory is providing 4 types of shifts:-
1st shift 4 am – 12 pm
2nd shift 12 pm – 8 pm
3rd shift 8 pm – 4 am
General shift 8.30 am – 5.30 pm
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NIRANI SUGARS LTD.MUDHOL
OBJECTIVES
1. To maintain good relation between employer and employees.
2. To maintain good industrial relation.
3. To select right person at right job.
4. To cope with a chain.
5. To develop employees in organization.
6. To full utilization of human resource.
FUNCTIONS
Recruitment
Job analysis and job description
Promotion
Wages and salary administration
Training and development
Records and incentives
Welfare maintenance
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NIRANI SUGARS LTD.MUDHOL
H. R. D
NUMBER OF WORKERS
Officers - 24
Regular - 172
Trainees - 351
Daily wages with order - 17
Total - 564
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NIRANI SUGARS LTD.MUDHOL
2 .MARKETING DEPARTMENT
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NIRANI SUGARS LTD.MUDHOL
MARKETING PROCESS
The term marketing has been derived from the word MARKET. Market is
generally understood as a place or geographical area where buyers and sellers meet
and enter in to transactions involving transfer of ownership of goods, service, and
securities.
Features of Marketing
1 It is consumer oriented.
2 It starts and ends with consumer.
3 Marketing is a system
4 It is a goal oriented.
5 Exchange process is the essence of marketing.
6 It is the guiding element of business.
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NIRANI SUGARS LTD.MUDHOL
MARKETING
Marketing is a social and managerial process by which individual and
group obtains what they need and what through creating, offering and exchanging
products of values with others. This marketing is important element in every
organization, which should be maintained compulsory in a systematic manner.
This section will take care of all sale transactions like sale of sugar,
molasses, Bagasse and scrap material. This section works by 7 employees including
sales manager. The factory has sold 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.
PRODUCT OF SALE
The organization undertakes selling activities in two methods:-
1 FREE SALE: - free sale of sugar is being done to bulk purchases on the basis
of tenders called, collected, negotiated and sold.
2 LEVY SALE: - This is being sold to the government of Karnataka on levy
basis. The government then distributes the same to the public through public
distribution outlets at predetermined reasonable price.
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NIRANI SUGARS LTD.MUDHOL
3. PURCHASE DEPARTMENT
Purchase success and failure of any company depends on the cost of materials,
the proper buying of materials and procurement of materials at the right time from the
right source is having greater importance in any business. There is a need for separate
department for buying the materials known as purchasing department.
The purchase section also connected to administrative department. In this
section 3 workers are working including purchase officers. This section is purchasing
all types of materials for the factory, plant and machinery.
This department also maintains the quality of raw materials, by taking the
sample of cane to laboratory test then if the raw material will below standard then will
be rejected, otherwise the raw material will be purchased at the particular price.
FUNCTIONS
Receiving purchasing requisition
Determining the volume of materials to be ordered
Placing orders
Inviting tenders and quotations from different suppliers
Checking and passing bills for payment.
Receiving and inspecting materials.
QUALITIES
Good knowledge of industry and material used in the industry.
Administrative and organizing ability
Knowledge and contract of law
Knowledge of economic principles and demand and supply
Knowledge of government policies
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NIRANI SUGARS LTD.MUDHOL
RESPONSIBILITIES
Purchasing of materials at right time and in proper way from right
source.
Receiving of materials.
Storing of materials.
Issuing of materials.
Accounting of materials.
Keeping proper records of material purchased.
Properly planned for material required.
Co-ordination and co-operation between different departments.
4. CANE DEVELOPMENT DEPARTMENT
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NIRANI SUGARS LTD.MUDHOL
OBJECTIVES
To get high yield of sugarcane to the factory in right time.
To improve variety of cane
To provide all facilities like seeds, fertilizers, unloading and loading
charges
To maintain registration of cane, gang and cultivated area.
To undertake seed distribution programme
The soil of this area is varying alluvial fertile soil is there on the bank of Krishna
and Ghataprabha rivers. Further upwards, there is a medium deep black soil, vary
fertile well drained light to medium clay soil, which has received heavy application if
from yard Manu science last 10-12 years also is presently in some parts.
The main function of cane development department is to arrange for raw
material, which is required to the factory. For this the order is received by priority
basis (that is growers who grows sugar cane first in his lead). They also provide a
loading gang with 8 to 10 members per village and also a bonded tractor for
transportation.
SUGAR CANE VARIETIES
At present COC-671, COC-8011 is very popular sugar cane varieties growing in
this area. The factory had introduced a new variety of sugar cane that is COC – 86032
two years back. Here more than 85% of sugar cane is of variety COC – 671 which is
mainly grown in this area.
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NIRANI SUGARS LTD.MUDHOL
S.LNAME OF THE
VARIETY
AREA IN HA
(P)(R)
1 COC-671 1153 ha 60.02%
2 CO-8011 480 ha 24.99%
3 CO-86032 1921 ha 14.99%
5. PRODUCTION DEPARTMENT
The production department is center of the organization. The main function of
the production department:-
To maintain close and co-ordinates relationship with all others.
To upgrade the technical efficiency of the production.
To flow up the daily production schedule of as per plan.
To produce the future needs of the company and to promote the organization.
OBJECTIVES:-
To plan and meet the production requirements as per customer specification
through the continuous improvement in the planning processing and optimum
utilization of resource.
To identify control the customer supplied products.
To produce for future needs and customers specification.
In every sugar industry production is divided in to two sections.
Engineering section
Manufacturing section
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NIRANI SUGARS LTD.MUDHOL
PRODUCTION PROCESS
Step 1. Weighing of sugar cane, it means, when the sugar cane comes to the factory.
After weighing of sugar cane the unloaded carrier cane weigh bridge.
Step 2. In the next step sugar cane go to the cane cutter machine and it cuts the fine
pieces after that, there are 3 mills and 5 mills tandem that is sequential mill.
Step 3. After the milling of sugar cane there is a separation of baggasse and juice
milk, baggasse will be used as a fuel. There are 7 boilers. They used as a fuel and there
is production steam and steam is used to produce the electricity.
Step 4. The juice, weighing takes place and there are mixing the juice and there is
addition of phosphoric. After heated of juice milk 75 C that juice is called as raw
juice.
Additional of milk of lime and SO2 is called Sulfur and this again goes to juice
heater it heated up to 104 C.
Step 5. Then the next step, the juice sent to clarifier and in that there is a separation of
dust and clear transferals juice.
Clear juice sends to “Bhoomi Labh”. This is the produce fertilizer. Clear juice
will be thick. It calls as syrup. Again add to the milk and SO2 then it is called syrup
suplitation.
Step 6. Sulpitation comes to the pan boiling station and this there are 3 categories, A,
B and C first of all the sulpitation goes to the “A” category.
And the pan boiling directly goes to pan crystal. Raw sugar goes to the
centrifugal machine routed to the high speed of around 1200 rpm. It will be separated
sugar crystal and molasses.
Step 7. In this, the sugar crystal downs and passes through grass happer. In the grass
happer the sugar goes to the one place to another place.
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NIRANI SUGARS LTD.MUDHOL
After there is gradation, in that there are 3 grades. It will be divide the 3 grades:-
high grade, small grade, low grade.
Step 8. And then the sugar goes to the different vessels. In that, package of sugar. In
this there are 2 types packing exporting and domestic is different.
FINISHED PRODUCTS
Finished product is sugar. There are 3 types of finished sugars, High Quality,
Middle Quality and Low Quality.
These are 3 types of bye products
Molasses
Bagasse
Filters mud
ENGINEERING SECTION
This section is assisted by workshop. It maintains all the work connected with
plant and machinery.
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NIRANI SUGARS LTD.MUDHOL
WORKSHOP
In this workshop machinery work is done. The spares, materials are fabricated
using the lathe machines in the workshop, shaping like square cutting etc is also done
in the workshop. Following machines are used in this workshop.
o 2 lathe machines for round job
o 1 redial drilling machines for drilling hole
o 1 shaping machine of 32* for right angle planning
o 1 hacksaw machine for cutting
o 1 grinding machine for tool grinding
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 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. The lab prepares hourly reports which advice on the addition of
other chemicals in his production.
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NIRANI SUGARS LTD.MUDHOL
6. CHEMICAL DEPARTMENT
CHEMICALS USED IN PRODUCTION
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NIRANI SUGARS LTD.MUDHOL
Caustic Soda (Sodium Carbonate)
Washing soda (Sodium Bicarbonate)
Common salt (sodium Chloride)
Phosphoric Acid (To maintain the PH)
Ammonium Bi-fluoride
Formalin quality maintain and preservative
Mill sanitation chemical to prevent the generation of bacteria and germs
Hydrous - Used for Color
Viscosity - Used for reducer
Misopropile - Used for Alcohol
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NIRANI SUGARS LTD.MUDHOL
7.FINANCE
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NIRANI SUGARS LTD.MUDHOL
8. SALES AND DISTRIBUTION DEPARTMENT
SALES MANGEMENT PRACTICE
The marketing department of Nirani Sugars is working in two ways.
1. Free Scale
2. Levy Scale
The out put of the factory produced is sold to public and Government in the
ratio of 40 : 60 all the functions of marketing department are generally done by the
sales manager who is in charge of assistant manager.
The factory has big market area for sugar in Bagalkot, Bijapur and Belgaum
Districts, little in local area covered by local sugar dealers. The bi-products are also
sold in large volume to biscuits, chocolate and wine industries and also are used by
distilleries.
SALESMANSHIP AT NIRANI SUGARS
It is the duty of marketing manager to appoint sales representatives salesmanship is
not necessary at Nirani Sugar, because the reasons are:-
Because their product is available at ever corner of the district
As the product is not a lectury one so it is not necessary to appoint sales man.
As the product is an essential one salesman are not required to approach the customers
at their door step and induce them to purchase their product.
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NIRANI SUGARS LTD.MUDHOL
CHAPTER 5
WORKING CAPITALWORKING CAPITAL MANAGEMENTMANAGEMENT
INTRODUCTION:
The aim of the present study (project) is to examine the Working Capital
management. “Since the efficiency of the Working Capital management is determined
by the efficient administration of its various components- cash, accounts receivable
and inventory, the study attempts to determine the management of each component”.
“Working Capital in a business enterprise may be compared to the blood in a
human body: Blood gives life and strength to the human body. Similarly Working
Capital injects life and strength- profits and solvency - to the business organization”.
Working Capital refers to short term funds required for the purpose of business
operations. The funds used for meeting day to day expenses like, purchase of raw
materials, payment of wages and other expenses, stocking of goods, granting of credit
to customers and maintenance of the minimum balance. It is not necessary that the
funds should be in the form of cash only. It can be in the form of near cash items like,
marketable securities, inventories and account receivable
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NIRANI SUGARS LTD.MUDHOL
CONCEPT OF WORKING CAPITAL
Like most other financial concepts, the concept of ‘Working Capital’ is used in
different connotations by different writers. Obviously, it is understood either as the
total current assets or as the excess of current assets over current liabilities. The
former is referred to the gross working Capital and the latter the net Working Capital.
So there are two concepts in Working Capital:
1. Gross Working Capital.
2. Net Working Capital.
Gross Working Capital is the total of all current assets, viz. cash, marketable
securities account receivable and inventory. Net Working Capital refers to excess of
current assets over current liabilities. Both of these concepts have their own
importance. “The gross concept is a going concern concept in which management is
particularly interested because for the productive utilization of fixed assets all the
currents are necessary. The net concept is useful to gauge the financial soundness of a
form and is of special interest to sundry creditors and suppliers of short-term loans and
advances. It creates confidence among the creditors about the security of their
amounts”.
No special distinction is made between the terms ‘total current assets’ and ‘Working
Capital’ by some authors “ Working Capital is nothing but total of current assets. It is
a substitute for Working Capital, though not a perfect one”
“Working Capital is the capital circulating into cash over an operating cycle. Working
Capital is equated with all the current assets”.
“Working Capital and current assets are interchangeable”.
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NIRANI SUGARS LTD.MUDHOL
ESTIMATION OF WORKING CAPITAL REQIUREMENTS
Managing the working capital is a matter of balance. The firms must have sufficient
funds on hand to meet its immediate needs. The NSL is manufacturing oriented
organization; the following aspects have to be taken into consideration while
estimating the working capital requirements. They are:
Total costs incurred on material, wages and overheads.
The length of time for which raw material are to remain in stores before they are
issued for production.
The length of the production cycle or work-in-process, i.e., the time taken for
conversion of raw material into finished goods.
The length of sales cycle during which finished goods to be kept waiting for sales.
The average period of credit allowed to customers.
The amount of cash required paying day-today expenses of the business.
The average amount of cash required to make advance payments.
The average credit period expected to be allowed by suppliers.
Time lag in the payment of wages and other expenses.
FINANCING OF WORKING CAPITAL
In that NSL, it was financing the working capital from the following five
common sources. They are:
1. SHARES: The NSL has issued the equity shares for raising the funds. The Equity
Shares do not have any fixed commitment charges and the dividend on these shares is
to be paid subject to the availability of sufficient funds. These funds have been
injected from the company’s own personal resources, from the members and from the
third party investors.
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NIRANI SUGARS LTD.MUDHOL
2. TRADE CREDITORS: The trade creditors refer to the credit extended by the
suppliers of milk in the normal course of business. The firm has a good relationship
with the trade creditors. So that suppliers send the milk to the firm for the payment to
be received in future as per the agreement or sales invoice. In this way, the firm
generates the short-term finances from the trade creditors. It is an easy and
convenient method to finance and it is informal and spontaneous source of finance for
the firm.
3. FACTORING OR ACCOUNTS RECIEVABLE CREDIT: Another method of raising
short-term finance in the NSL is through accounts receivables credit offered by the
commercial banks and factors. A commercial bank has provided finance by
discounting the bills or invoices of its customers. Thus, a firm gets immediate
payment for sales made on credit. The factor is also a financial institution, which
offers services relating to management and financing of debts arising out of credit
sales. Factors render services varying from bill discounting facilities provide
commercial banks to the total take over of administration of credit sales including
maintenance of sales ledger, collection of accounts receivables, credit control, and
protection from bad debts, provision of finance and rendering of advisory services to
the firm’s clients.
4. LINE-OF-CREDIT: The business is well capitalized by equity and is has a very
good collateral, the business (the firm) might quality fore one. A line-of-credit allows
firm to borrow funds for short-term needs when they arise. The funds are rapid once
the collections of accounts receivables that result from the short-term sales peak.
Lines-of-credit typically are made for one year at a time and expected to be paid it for
30 to 60 consecutive days some times during the year to ensure funds are used for
short-term needs only.
5. SHORT-TERM LOAN: The firm has borrowed the funds from the commercial
banks to finance for the working capital needs. The short-term loans duration is less
than one year. They provide a wide verity of loans to meet the specific requirements
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NIRANI SUGARS LTD.MUDHOL
of a concern. The different forms in which the banks normally provide loan and
advances are –
Loans
Cash credits
Overdraft
DATA ANLYSISS
ANLYSIS 0F WORKING CAPITAL MANAGEMENT
Working Capital management involves deciding upon the amount and
composition of current asset and how to finance the asset. This decision involves trade
off between risk and profitability.
Working Capital Balances are measured from the financial dates of the
company’s balance sheet. A study of the causes for changes of working capital that
take place in the balance from time to time is necessary. These changes can be
measured in rupee amount and also in percentage by comparing current assets, current
liabilities and working capital over the given period.
The importance tools of Working Capital are,
I. Ratio Analysis of Working Capital
II. Funds Flow Analysis of Working Capital
III. Working Capital Budget
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NIRANI SUGARS LTD.MUDHOL
CHAPTER-6
DATA REPORTDATA REPORT
CALCULATOIN OF GROSS WORKING CAPITAL
TABLE – 01
TABLE SHOWING GROSS WORKING CAPITAL OF NIRANI SUGARS LTD
Particulars 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Current Assets
Cash and Bank
Balance21347 16680 9679 9217 13618
16321
Other Current Assets 6300 6300 6300 6300 ------- ----------
Loans & advances 18663 32726 42916 56818 34813 31645
Inventories 92717 89713 96322 33818 84221 98769
Sundry Debtors 69265 76180 45153 583 2408 2789
Gross Working
Capital208292 221599 200370 106758 135060
149524
INFERENCE
The gross working capital has fluctuated with the growth of the business over a
period of 2004-2010. There is a fluctuating in the current assets of the company.
CALCULATION OF NET WORKING CAPITAL
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NIRANI SUGARS LTD.MUDHOL
TABLE – 02
TABLE SHOWING NET WORKING CAPITAL NIRANI SUGARS,
LTD.
Particulars 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Current
Assets208292 221599 200370 106758 135060
149524
a) Current
Liabilities 327456 451021 499078
524,2
3973665
53879
Net Working
Capital
(a-b)-119164 -229422 -298708 -417481 61395 95645
INTERPRETATION:
The net working capital table indicates that excess current asset is available at the
disposal of the company for the operational requirements.
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NIRANI SUGARS LTD.MUDHOL
GRAPH SHOWING NET WORKING CAPITAL IN DIFFERENT YEARS.
INTERENCE
The graph shows that there is a decrease in the working capital in the year 2007-08
In this year Inventories, Debtors and Loans & advances are increases, Due to increase
in the production Capacity of the Co, so in this year Working capital is increase from
Rs 29387228 to Rs 157043223.
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NIRANI SUGARS LTD.MUDHOL
1) Statement of changes in working capital (2004and2005)
(Rs in Lakhs)
ParticularsAs @
01/4/04As @
31/3/05Effect of wc
IncreaseDecrease
A. Current assets
Cash and bank balance 2,44,36 2,13,47 - 3089
Other current assets 79,00 63,00 - 1600
Loans and advances 2,94,34 1,86,63 -- 10771
Inventories 8,91,91 9,27,17 3526 --
Sundry debtors
7,23,76 6,92,05--
3171
Total current assets 22,33,37 20,82,32
B. Current liabilities
Current liabilities 27,46,63 31,53,27--
40664
Provisions 88,64 1,21,29--
3265
Total current liability 2835,27 32,74,56
Net current assets(A-B)-
601,90 -11,92,24 3526 62560
Increase or decrease in working capital
59034 59034
Total working capital -60190 -60190 62560 62560
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NIRANI SUGARS LTD.MUDHOL
Interpretation
The statement shows that the changes in working capital in the year 2003-2004
and 2004-2005. The changes in capital of two years is Rs. 59034 in 2004 - 2005 so
its shows the working capital decreased of Rs 59034 in 2004 -2005 which compare to
2003 -2004hear due to decreased the firm is no satisfactory with its working capital.
2) Statement of changes in working capital (2005and 2006)
(Rs in Lakhs)
ParticularsAs @
01/4/05As @
31/3/06Effect of wc
DecreaseIncrease
A. Current assets
Cash and bank balance 2,13,47 1,66,80 4667
Other current assets 63,00 63,00
Loans and advances 1,86,63 3,27,26 14063
Inventories 9,27,17
8,97,13 3004
Sundry debtors
6,92,05 7,61,80 6975
Total current assets 20,82,32 22,15,99
B. Current liabilities
Current liabilities 31,53,27 44,11,54 125827
Provisions 1,21,29 98,67 2262
Total current liability 32,74,56 45,10,21
Net current assets(A-B) - -22,94,22 23300 33498
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NIRANI SUGARS LTD.MUDHOL
11,92,24 Increase or decrease in working capital
110198 110198
Total working capital -119224
-119224 133498 33498
Interpretation
The statement shows that the changes in working capital in the year 2004-2005
and 2005-2006. The changes in capital of two years are Rs. 11098 in 2005- 2006 so
its shows the working capital decreased of Rs 110198 in 2005- 2006 which compare to
2004-2005 hear due to decreased the firm is not satisfactory with its working capital.
3) STATEMENT SHOWING CHANGES IN THE WORKING CAPITAL IN
(2006-07) (Rs in
Lakhs)
ParticularsAs @ 01/4/06 As @ 31/3/07
Effect of wc Increase
Decrease
A. Current assets
Cash and bank balance
1,66,80 96,79 7001
Other current assets
63,00 63,00
Loans and advances
3,27,26
4,29,16 10190
Inventories 8,97,13
9,63,22 6609
Sundry debtors 7,61,80
4,51,53
31027
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NIRANI SUGARS LTD.MUDHOL
Total current assets
22,15,99 20,03,70
B. Current liabilities
46415
Current liabilities 4
4,11,54 48,75,69
1642
Provisions 98,67 1,15,09
Total current liability
45,10,21
49,90,78
Net current assets(A-B)
-22,94,22 -29,87,08 16799 86085
Increase or decrease in working capital
69286 69286
Total working capital
-229422 -229422 86085 86085
Interpretation
The statement shows that the changes in working capital in the year 2005-
2006 and 2006-2007. The changes in capital of two years are Rs. 69286 in 2006-
2007 so its shows the working capital decreased of Rs 69286 in 2006- 2007 which
compare to 2005-2006 hear due to decreased the firm is not satisfactory with its
working capital.
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NIRANI SUGARS LTD.MUDHOL
4) Statement of changes in working capital in (2007and 2008)
(Rs in Lakhs)
Particulars As @ 01/4/07
As @31/3/08
Effect of wc
Decrease
Increase A. Current assets Cash and bank balance 96,79 92,17 4,62
Other current assets63,00 63,00
Loans and advances 4,29,16 5,68,18 13902
Inventories 9,63,22 3,38,40 6,24,82
Sundry debtors 4,51,53 5,83 4,45,70
Total current assets 20,03,70 10,67,58
B. Current liabilities
Current liabilities 48,75,69 51,72,04 2,96,35
Provisions 1,15,09 70,35 4474
Total current liability 49,90,78 52,42,39 18376 137149
Net current assets(A-B) -29,87,08 -417481
Increase or decrease in working capital
118773 118773
Total working capital -29,87,08 -29,87,08 137149 137149
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NIRANI SUGARS LTD.MUDHOL
Interpretation
The statement shows that the changes in working capital in the year 2006-
2007 and 2007-2008. The changes in capital of two years is Rs. 118773 in 2007- 2008
so its shows the working capital decreased of Rs 118773 in 2007- 2008 which
compare to 2006-2007 hear due to decreased the firm is not satisfactory with its
working capital.
5) Statement of changes in working capital (2008and 2009)
(Rs in Lakhs)
ParticularsAs @
01/4/08As @
31/3/09
Effect of wc
IncreaseDecrease
A. Current assets
Cash and bank balance 92,17 13618 4401 Other current assets 63,00 - 63,00
Loans and advances 5,68,18 34813 22005
Inventories 3,38,40 84221 50381
Sundry debtors 5,83 2408 1825
Total current assets 10,67,58 135060
B. Current liabilities Current liabilities 51,72,04 66597 450607 Provisions 70,35 7068 33
Total current liability 52,42,39 73665
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NIRANI SUGARS LTD.MUDHOL
Net current assets(A-B) -417481 61395 507214 28338
Increase or decrease in working capital
478876 478876
Total working capital 61395 61395 507214 507214
Interpretation
The statement shows that the changes in working capital in the year 2007-
2008 and 2008-2009. The changes in capital of two years are Rs. 478876 in 2007-
2008 so its shows the working capital increased of Rs 478876 in 2008- 2009 which
compare to 2007-2008 hear due to decreased the firm is not satisfactory with its
working capital
5) Statement of changes in working capital (2009and 2010)
(Rs in lakhs)
Particulars As @ 01/4/09
As @31/3/10
Effect of wc
Decrease
Increase A. Current assets Cash and bank balance 13618 16321 2703
Other current assets-------- --------
Loans and advances 34813 31645 3168
Inventories 84221 98769 14548
Sundry debtors 2408 2789 381
Total current assets 135060 149524
B. Current liabilities
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NIRANI SUGARS LTD.MUDHOL
20665
Current liabilities 65665 45000
Provisions 8000 8879 879
Total current liability 73665 53879 24214 24214
Net current assets(A-B) 61395 95645
Increase or decrease in working capital
34250
Total working capital 95645 95645 24212 24212
Interpretation
The statement shows that the changes in working capital in the year 2008-
2009 and 2009-2010. The changes in capital of two years are Rs. 34250 in 2009-
2010 so its shows the working capital decreased of Rs 34250 in 2009- 2010 which
compare to 2008-2009 hear due to decreased the firm is not satisfactory with its
working capital
FINDINGS
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NIRANI SUGARS LTD.MUDHOL
1. The net working capital during the year 2004-05 is -119164
2. The net working capital during the year 2005-06 is -229422
3. The net working capital during the year 2006-07 is -298708
4. The net working capital during the year 2007-08 is -417481
5. The net working capital during the year 2008-09 is 61395
6. The net working capital during the year 2009-10 is 95645
7. The increase net change in working capital from 2004-2010 is (95645+119164)
214809
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NIRANI SUGARS LTD.MUDHOL
RECOMMANDATION
As this factory is well managed in itself it doesn’t need much of recommendations.
But I will like to provide some of my suggestions and I hope it could further help this
factory to improve.
Especially one person must be employed who must sit with the workers and
look out for what further changes they want in the existing system. It means
start the Human Resource department for knowing problems of workers as well
as employees.
Workers must be given more liberty to meet the higher officials and talk about
their difficulties.
Improve the payment method as the payment is poor to the cane growers.
It should see that the facilities to workers are somewhat improved and brought
up to the expectations of the workers.
Worker-management meet should be conducted regularly to handle the
grievances of the workers and other matters.
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NIRANI SUGARS LTD.MUDHOL
SUGGESTIONS
1. Whether the company’s expectations for employees are extremely high or simply
average, the company should always be clear and precise in communicating their
official desires.
2. Actively train, educate, and adviser the staff: It is seen that the overwhelming
majority of employees want to learn more, enlarge their education, and become more
valuable to their employers
3. The management should ensure that the Promotion of employees is based on a fair
and transparent process i.e. the employees with the same qualification, work ability
and experience should be promoted at the same time.
4. The organization should give importance to factors like Pay and rewards as the
employees feel that they are not being paid adequately for their performance on job.
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NIRANI SUGARS LTD.MUDHOL
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NIRANI SUGARS LTD.MUDHOL
CONCLUSION Nirani Sugars Ltd is one of the best sugar factories. It takes care of all the
employees, workers. It has a good management. There are well qualified staffs,
engineers in each every department who are highly experienced in those fields in
which they are working. After all the study I came out with the following conclusion,
that the organization sounds good when it has good financial background,NSL has a
sound financial background of promoters including chief promoters which will help
to raise required equity.
NSL has got one of the integrated sugar co-gen projects in Karnataka which will help
to reduce national problem of power shortage also.
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NIRANI SUGARS LTD.MUDHOL
BIBLIOGRAPHY
1. Financial Management by M.Y. Khan & P.K. Jain
2. Financial Management by I.M. Pandy
3. Internet websites
www.niranisugars.com
www.google.com
www.sugarindustry.com
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