Business finance

Assignment Report on industry. Presented to: Respected Sir Riaz. Presented by: Goup#07 Members are: Roll # Qamar sultan MBS-09-06 Adil Ameen MBS-09-18 Umaira MBS-09-37 Syed Raza Imam MBS-09-48 Huma Zahra MBS-09-56 Fida Hussain MBS-09-63 Irfan Kiayni MBS-09-59

History behind sugar cane:

It would thus clear that India is the birth place of the manufacturing of sugar from . The history of modern sugar industries in India may be said to begin from 1932. Five factories, however, were started in 1932-1935 but excepting one, at Rahwali, all other enterprises failed due to their uneconomic size. Inadequate sugar cane supplies and inefficient management. At the time of partition we had the only factory at Rahwali in the Punjab. Hence we had to start with a scratch. Punjab is the second largest sugar cane growing province in Indo-Pakistan subcontinent. Now update position of sugar industries in Pakistan is 38 sugar factories in Punjab and 31 in Sindh and 6 in NWFP and Pakistan is now exporting sugar to other countries.

It was the major expansion of the Arab peoples in the seventh century AD that led to a breaking of the secret. When they invaded Persia in 642 AD they found sugar cane being grown and learnt how sugar was made. As their expansion continued they established sugar production in other lands that they conquered including North Africa and Spain.

Sugar was only discovered by western Europeans as a result of the Crusades in the 11th Century AD. Crusaders returning home talked of this "new spice" and how pleasant it was. The first sugar was recorded in England in 1099. The subsequent centuries saw a major expansion of western European trade with the East, including the importation of sugar. It is recorded, for instance, that sugar was available in London at "two shillings a pound" in 1319 AD. This equates to about US$100 per kilo at today's prices so it was very much a luxury.

In the 15th century AD, European sugar was refined in Venice, confirmation that even then when quantities were small, it was difficult to transport sugar as a food grade product. In the same century, Columbus sailed to the Americas, the "New World". It is recorded that in 1493 he took sugar cane plants to grow in the Caribbean. The climate there was so advantageous for the growth of the cane that an industry was quickly established.

By 1750 there were 120 sugar refineries operating in Britain. Their combined output was only 30,000 tons per annum. At this stage sugar was still a luxury and vast profits were made to the extent that sugar was called "white gold". Governments recognized the vast profits to be made from sugar and taxed it highly. In Britain for instance, sugar tax in 1781 totaled £326,000, a figure that had grown by 1815 to £3,000,000. This situation was to stay until 1874 when the British government, under Prime Minister Gladstone, abolished the tax and brought sugar prices within the means of the ordinary citizen.

Sugar beet was first identified as a source of sugar in 1747. No doubt the vested interests in the cane sugar made sure that it stayed as no more than a curiosity, a situation that prevailed until the Napoleonic wars at the start of the 19th century when Britain blockaded sugar imports to continental Europe. By 1880 had replaced sugar cane as the main source of sugar on continental Europe. Those same vested interests probably delayed the introduction of beet sugar to England until the First World War when Britain's sugar imports were threatened.

Today's modern is still beset with government interference at many levels and throughout the world. The overall pattern can be seen by investigating the mid 1990s' position in the interactive map on the Introduction page. Annual consumption is now running at about 120 million tons and is expanding at a rate of about 2 million tons per annum. The European Union, Brazil and India are the top three producers and together account for some 40% of the annual production. However most sugar is consumed within the country of production and only approximately 25% is traded internationally.

One of the most important examples of governmental actions is within the European Union where sugar prices are so heavily subsidized that over 5 million tons of white beet sugar have to be exported annually and yet a million tons of raw cane sugar are imported from former colonies. This latter activity is a form of overseas aid which is also practiced by the USA. The EU's over-production and subsequent dumping has now been subjected to GATT requirements which should see a substantial cut-back in production over the next few years.

How Cane Sugar is Made:

1. Growing the Cane Sugar cane is a sub-tropical and tropical crop that prefers lots of sun and lots of water - provided that its roots are not waterlogged. It typically takes about 12 months to reach maturity although the time varies widely around the world from as short as six months in Louisiana to 24 months in some places. Where it differs from many crops is that it re-grows from the roots so the plant lasts many cycles [or 'ratoons', a word derived from the Spanish to sprout] before it is worn out.

2. Harvesting Sugar cane is harvested by chopping down the stems but leaving the roots so that it re-grows in time for the next crop. Harvest times tend to be during the dry season and the length of the harvest ranges from as little as 2 ½ months up to 11 months. The cane is taken to the factory: often by truck or rail wagon but sometimes on a cart pulled by a bullock or a donkey!

3. Extraction The first stage of processing is the extraction of the cane juice. In many factories the cane is crushed in a series of large roller mills: similar to a mangle [wringer] which was used to squeeze the water out of clean washing a century ago. The sweet juice comes gushing out and the cane fiber is carried away for use in the boilers. In other factories a diffuser is used as is described for beet sugar manufacture. Either way the juice is pretty dirty: the soil from the fields, some small fibers and the green extracts from the plant are all mixed in with the sugar.

4. Evaporation The factory can clean up the juice quite easily with slaked lime (a relative of chalk) which settles out a lot of the dirt so that it can be sent back to the fields. Once this is done, the juice is thickened up into a by boiling off the water using steam in a process called evaporation. Sometimes the syrup is cleaned up again but more often it just goes on to the crystal-making step without any more cleaning. The evaporation is undertaken in order to improve the energy efficiency of the factory.

5. Boiling The syrup is placed into a very large pan for boiling, the last stage. In the pan even more water is boiled off until conditions are right for sugar crystals to grow. You may have done something like this at school but probably not with sugar because it is difficult to get the crystals to grow well. In the factory the workers usually have to throw in some sugar dust to initiate crystal formation. Once the crystals have grown the resulting mixture of crystals and mother liquor is spun in centrifuges to separate the two, rather like washing is spin dried. The crystals are then given a final dry with hot air before being stored ready for dispatch.

6. Storage The final raw sugar forms a sticky brown mountain in the store and looks rather like the soft found in domestic kitchens. It could be used like that but usually it gets dirty in storage and has a distinctive taste which most people don't want. That is why it is refined when it gets to the country where it will be used. Additionally, because one cannot get all the sugar out of the juice, there is a sweet by-product made: . This is usually turned into a cattle food or is sent to a distillery where alcohol is made. 7. Power So what happened to all that fiber from crushing the sugar cane? It is called "" in the industry. The factory needs electricity and steam to run, both of which are generated using this fiber.

The bagasse is burnt in large furnaces where a lot of heat is given out which can be used in turn to boil water and make high pressure steam. The steam is then used to drive a turbine in order to make electricity and create low pressure steam for the sugar making process. This is the same process that makes most of our electricity but there are several important differences. When a large power station produces electricity it burns a fossil fuel [once used, a fuel that cannot be replaced] which contaminates the atmosphere and the station has to dump a lot of low grade heat. All this contributes to global warming. In the cane sugar

factory the bagasse fuel is renewable and the gases it produces, essentially CO2, are more than used up by the new cane growing. Add to that the factory use of low grade heat [a system called co-generation] and one can see that a well run cane sugar estate is environmentally friendly.

HOW SUGAR CANE IS MADE

Sugar is made by some plants to store energy that they don't need straight away, rather like animals make fat. People like sugar for its and its energy so some of these plants are grown commercially to extract the sugar:

Sugar is produced in 121 Countries and global production now exceeds 120 Million tons a year. Approximately 70% is produced from sugar cane, a very tall grass with big stems which is largely grown in the tropical countries. The remaining 30% is produced from sugar beet, a root crop resembling a large parsnip grown mostly in the temperate zones of the north.

What we call sugar, the chemist knows as '', one of the family of otherwise known as saccharine in the grouping called carbohydrates. Carbohydrates, as the name implies, contain carbon and hydrogen plus oxygen in the same ratio as in

water. The saccharides is a large family with the general formula CnH2nOn. The simplest of the sugars is , C6H12O6, although its physical chemistry is not that simple

Because it is occur in two distinct forms which affect some of its properties. Sucrose,

C12H22O11, is a , a condensation molecule made up of two glucose molecules [less a water molecule to make the chemistry work].

The process whereby plants make sugars is photosynthesis. The plant takes in carbon dioxide from the air though pores in its leaves and absorbs water through its roots. These are combined to make sugar using energy from the sun and with the help of a substance called chlorophyll. Chlorophyll is green which allows it to absorb the sun's energy more readily and which, of course, gives the plants' leaves their green colour. The reaction of photosynthesis can be written as the following chemical equation when sucrose is being made:

12 CO2 + 11 H2 O = C12 H22 O11 + 12 O2

carbon dioxide + water = sucrose + oxygen

This shows that oxygen is given off during the process of photosynthesis.

Historically, sugar was only produced from sugar cane and then only in relatively small quantities. This resulted in it being considered a great luxury, particularly in Europe where cane could not be grown. The history of man and sugar is a subject in its own right but suffice to say that, even today, it isn't easy to ship food quality sugar across the world so a high proportion of cane sugar is made in two stages. Raw sugar is made where the sugar cane grows and is made from the raw sugar in the country where it is needed. Beet sugar is easier to purify and most is grown where it is needed so white sugar is made in only one stage.

Sugar Cane Sugar cane is a genus of tropical grasses which requires strong sunlight and abundant water for satisfactory growth. The Latin names of the species include Saccharin officinarum, S. spontaneum, S. barberi and S. sinense. As with most commercial crops, there are many cultivars available to the cane farmer, usually hybrids of several species. Some varieties grow up to 5 meters tall.

The cane itself looks rather like bamboo cane and it is here that the sucrose is stored. In the right climate the cane will grow in 12 months and, when cut, will re-grow in another 12 months provided the roots are undisturbed. Typical sugar content for mature cane would be 10% by weight but the figure depends on the variety and varies from season to season and location to location. Equally, the yield of cane from the field varies considerably but a rough and ready overall value to use in estimating sugar production is 100 tons of cane per hectare or 10 tons of sugar per hectare.

Sugar Beet Sugar beet is a temperate climate biennial root crop. It produces sugar during the first year of growth in order to see it over the winter and then flowers and seeds in the second year. It is therefore sown in spring and harvested in the first autumn/early winter. As for sugar cane, there are many cultivars available to the beet farmer. The beet stores the sucrose in the bulbous root which bears a strong resemblance to a fat parsnip.

Typical sugar content for mature beets is 17% by weight but the value depends on the variety and it does vary from year to year and location to location. This is substantially more than the sucrose content of mature cane but the yields of beet per hectare are much lower than for cane so that the expected sugar production is only about 7 tons per hectare.

Sugar production in world:

AUSTRALIA

Exports: 4.7 million tons

Production: 5.5 million tons

Population: 19 million

Per Capita Consumption: 45 kg

BRAZIL

Exports: 6 million tons

Production: 14.5 million tons

Population: 167 million

Per Capita Consumption: 48 kg

India

Exports: 0.5 million tons

Production: 14 million tons

Population: 981 million

Per Capita Consumption: 14 kg

SOUTH AFRICA

Exports: 1.1 million tons

Production: 2.5 million tons

Population: 45 million

Per Capita Consumption: 30 kg

THAILAND

Exports: 4 million tons Production: 6 million tons

Population: 62 million

Per Capita Consumption: 27 kg

USA

Exports: nil

Production: 6.5 million tons

Population: 269 million

Per Capita Consumption: 30 kg

 White sugar  Brown sugar

There are a bewildering number of sugars and available in the shops while other types are available for the industrial user. Some of the basic differences are discussed below.

1. White sugar:

White sugar is essentially pure sucrose and there is no difference between that derived from cane and that from beet. Different manufacturers produce crystals of different sizes however and this leads to some apparent differences. Smaller crystals dissolve more readily and might therefore appear to be sweeter because none is left at the bottom of the cup and they seem sweeter on the tongue if eaten alone. Similarly smaller crystals have more surfaces per spoonful and appear whiter than larger crystals. [Having said that, some white sugars are less white than others: it depends on how much processing the manufacturer applies.]

There are several specialty white sugars:

y caster sugar is just a very small crystal size white sugar y icing sugar is ground up white sugar, essentially sugar dust y sugar cubes are lumps of sugar crystals "glued" together with a sugar syrup y preserving sugar is a special large crystal

2. Brown sugar

Brown sugars come in many different styles but are essentially one of two types: sticky browns and free-flowing browns. The sticky browns were originally the sort of mixture that comes out of a cane sugar crystallising pan. The extreme of this, still made in India today, is "juggeri" or "gur" which is essentially such a mixture boiled until dry.

In modern refining practice both of these types are made by mixing a refined or at least purified sugar with suitable syrup. The colour of the sugar and the syrup determines the colour of the final product and the ratio of syrup to sugar plus any drying applied determines whether the product is sticky or free- flowing.

Syrups, of which there are again an enormous range, range from pure sucrose solutions as sold to industrial users to heavily treated syrups incorporating flavors and colours. Refiners or "Golden" syrup is a sugar solution which has been carefully treated to invert some of the sucrose. Inversion is a chemical process which breaks down the disaccharide sucrose to its constituent sugars: glucose and . This helps ensure that crystallisation does not occur during storage. is a similar product made from molasses rather than a pure sugar solution.

The Board of Directors has adopted the following:

 VISION

To be the leader in sugar industry by building the Company's image through quality improvement, competitive prices and meeting social obligations.

 MISSION

 To Endeavour to be the market leader by offering high quality sugar to our customers at competitive prices.  To continue improving operating performance and profitability thereby ensuring growth for the Company while serving best interest of shareholders.

Management of ADAM Sugar Mill Ltd.

COMPANY INFORMATION

1. Boards of directors

Mr. Ghulam Ahmed Adam

Mr. Sysed Rafique Mohammad Shah

Mr. Jawaid Ahmed

Mr. LT. COL (R) Muhammad Mujtaba

Mr. Junaid G. Adam

Mr. Omar G. Adam

2. Audit Committee (all non-executive directors)

Chairman Mr. Junaid G. Adam

Member Mr. Jawaid Ahmed

Member Mr. Omar G. Adam

General Manager Finance/

Corporate Secretary Mr. Qamar Rafi Khan, ACA

Auditors Gangat & Company

Chartered Accountants

Registered Office Haji Adam Chambers,

Altaf Hussain Road, New Challi, Karachi-2

Factory Chak No.4, Fordwah, Chishtian

District Bhawalnagar.

Scope of Sugar Mills in Pakistan:

PUNJAB 1. Adam Chishtian Bahawalnagar 2. Ashraf Ashrafabad Bahawalpur 3. Baba Farid Okara 4. Brothers Pattoki Kasur 5. Chanar Tandlianwala Faisalabad 6. Choudary Pensara Road Gojra 7. Chistia Sillianwali Sargodha 8. Crescent Nishatabad Faisalabad 9. Fatima Kot Addu Muzaffarghar 10. Fauji Sheikhupura 11. Fecto Darya Khan Bhakkar Gojra Sam Gogra Faisalabad 13. Haseeb Waqas Mirajabad Nankana Sahib 14. Hussein Jaranwala Faisalabad 15. Hyesons Jetha Bhutta Rahimyar Khan 16. Ittefaq Sahiwal 17. JDW Mouza Sharin Rahim Yar Khan 18. Kamalia Tobatek singh 19. Kohinoor Jauharabad Khushab 20. Layyah Layyah Layyab 21. National Sargodha 22. Noon Bhalwal Sargodha 23. Pasrur Pasrur Sialkot 24. Pattoki Pattoki Kasur 25. Phalia Karmanwala Gujrat 26. Punjab Man Channu Khanewal 27. Pahirianwali Lalian Jhang 28. Ramzan Chiniot Sargodha 29. Shahtaj Mandi Bahauddin Gujrat 30. Shakarganj Jhang Jhang . Sheikhoo Kot Addu Muzafargarh 32. Tandlianwala Kanjwani Faisalabad 33. United Sadiqabad Rahimyar Khan 34. Indus Kot Bahadur Rajan Pur 35. Madina Chattah Khankah Hafizabad 36. Qand Ghar Shahkot Faisalabad 37. Yousaf Shahpur Sargodha SINDH 38. Al-Abbas Mirwah Gorchani Mirpurkhas 39. Al-Asif Garho Thatta 40. Al-Noor Moro Naushero Feroz 41. Ansari Tando M.Khan Hyderabad 42. Army Welfare Badin Badin 43. Bawany Talhar Badin 44. Dadu Piarogoth Dadu 45. Dewan Budho Talpur Thatta 46. Faran Sheikh Bhirkio Hyderabad 47. Fauji-Kho Khoski Badin 48. Fauji TMK Tando M. Khan Hyderabad Habib Nawabshah Nawabshah 50. Kiran Rohri Sukkur 51. Khairpur Khairpur Khairpur 52. Larr Sajawal Thatta 53. Matiari Matiari Hyderabad 54. Mehran Tando M. Khan Hyderabad 55. Mirpurkhas Mirpurkhas Mirpurkhas 56. Mirza Kadhan Badin 57. Pangrio Deh Rajauri-2 Badin 58. Sakrand Sakrand Nawabshah 59. Sanghar Sindhri Sanghar 60. Shahmurad Jhok Sharif Thatta 61. Sindabadgar Deenpur Hyderabad 62. Thatta Deh Bijoro Thatta 63. Consolidated Ranipur Khairpur 64. Larkana Naudero Larkana N.W.F.P 65. Bannu Sarai Naurang Bannu 66. Chshma D.I. Khan D.I. Khan Frontier Takht-I-Bhai Mardan 68. Khazana Peshawar Peshawar 69. Premier Mardan Mardan 70. Saleem Charsadda Charsadda AZAD KASHMIR 71. Mian Mohammad Mirpur Azad Kashmir

Introduction to Organization: The company was incorporated in Pakistan on September 19, 1964 as a public limited company and is listed at Karachi and Lahore stock exchanges of Pakistan. The company is principally engaged in the manufacture and sale of sugar. The company has set up a Particle Board unit.

Main product: The main product of the ADAM Sugar Mills is white crystalline sugar.

BY PRODUCT: The by products are following 1««««« BAGGASSES 2««««« MALLASSES 3««««« PRESS MUD

DEPARTMENTS OF the ORGANIZATION

There are six main departments in Indus Sugar Mills. i) Cane Department ii) Mechanical Deptt. iii) Chemical Deptt. iv) Electrical Deptt. v) Accounts Deptt. vi) Administration Deptt.

Hierarchy Level of ADAM Sugar Mill Ltd.

CHAIRMAN Ň Ň Ň M.D. (Managing Director) Ň Ň Ň Board of Directors Ň Ň Ň Ň G.M. Ň Ň ň------Ŏ------Ő------ʼn Ň Ň Ň Ň Ň Ň Ň Ň G.M. G.M. G.M. Manager (Cane) (Tech.) (Production Administration Ň Ň Ň ň------ŋ Ň Ň Technical Commercial Plant Production Electrical Manager Manager Manager Manager Manager Ň Ň Ň Chief Engineer Ň Ň ň------ŏ------ʼn Ň Ň Ň Ň Shift Engineer Senior Engineer

Process of Different Departments to refine the sugar in Adam Mills Ltd:

Raw sugar is made in tropical countries where sugar cane can be grown profitably. It is then shipped in bulk to a refinery in the country where the sugar is required. It now has to be finally clea It helps to think of refining as a series of steps from left to right where colour and non-sugars are concentrating to the left and pure sugar is concentrating to the right. However the raw sugar comes into the process to the left of centre, not at one end. In the description that follows the flow of sugar is followed first and then the remainder of the process is reviewed.

Affination The first stage of processing the raw sugar is to soften and then remove the layer of mother liquor surrounding the crystals with a process called "affination". The raw sugar is mixed with a warm, concentrated syrup of slightly higher purity than the syrup layer so that it will not dissolve the crystals. The resulting magma is centrifuged to separate the crystals from the syrup thus removing the greater part of the impurities from the input sugar and leaving the crystals ready for dissolving before further treatment. The liquor which results from dissolving the washed crystals still contains some colour, fine

particles, gums and resins and other non-sugars.

Carbonatation The first stage of processing the liquor is aimed at removing the solids which make the liquor turbid. Coincidentally some of the colour is removed too. One of the two common processing techniques is known as carbonatation where small clumps of chalk are grown in the juice. The clumps, as they form, collect a lot of the non-sugars so that by filtering out the chalk one also takes out the non-sugars. Once this is done, the sugar liquor is now ready for decolourisation. The other technique, phosphatation, is chemically similar but uses phosphate rather than carbonate formation.

Working of ADAM Sugar Mill Department

3. Special ACTIVITIES OF ADIMINISTRATION DEPARTMENT

1«RECRUITMENT, SELECTION AND RETRENCHMENT OF EMPLOYEES

2«MAINTENANCE OF PERSONAL RECORD

3«TIME OFFICE MANAGEMENT

4« Interactions with following govt. department: Social security Employee old age benefit Labor department Liaison with local administration Worker welfare programmed programmed arrangement for company executives

5«. Mail receiving and distribution

6«Legal matters

7«Supervision of faire price shops 8«AUTHORIZING DISPATCH SALES

9«. SUPERVISION OF

10«. ENTERTAINMENT OF VISITORS

4. Labor and personal department

Labor and personal department may be considered as the heart of any organization. The head of this department is called labor officer. This department includes: Supervisor Senior officer Junior clerks

These employees are under the control of labor officer and are accountable to him. The function of supervisors is to supervise all the activities of the other clerk¶s. They are responsible to maintain all the records of this department. If the labor officer is in need of any old record he produces it to him. I worked in this department for the period of one week and observed all the information in detail. Function of Labor and Personal Department

1«APPOINTMENT This department has a special policy for the appointment of employees the labor department advertises information of general public. usually the advertisement consists of posts for which the application are required, pay, other allowances if any, qualifications for the candidates, and last date for the receipt of application. On the expiry of the last date for the receipt of application from the candidates at merit list is prepared and only those candidates are called for interview that are considered suitable for the post. On the date of interview managing director of the project, manager, the head of the department in which the vacancy exist conduct the interview. There is also written test and medical test for the candidates to be selected for the post. The candidate who is declared medically fit and also considered suitable for the post is then selected for the post on the terms and conditions decided with the applicant. The labor personal department issues the orders of the appointment with the approval of the project manager.

2« PROMOTION

The promotion of employees depends upon the seniority of the employee. When vacancy of higher post occurs the senior most person is promoted first to fill up the vacant post. In this project all permanent employees are provided 50%chance of promotion. For example two posts are lying vacant in any department, the first post is filled up from temporary or the manager selects direct new person for the post. Moreover the seniority of all confirmed employees is considered from the date of regular appointment. In a case of two or more appointments are made at the same date, then their seniority is accounted from the dispatch number of the order of the appointment respectively. In case of vacancy in any department, all the employees of the department are equally considered to be promoted to that post the employees who is the most senior and who have got the necessary qualification for the post promoted to that post. If any employee is the senior most but does not posses the required qualification he is not to be promoted and the next senior one who have the required qualification is promoted to the post. In case of transfer of employee from one department to the other department or from one section to the other section a seniority of employee for promotion is considered of appointment and confirmation. It is not to be considered from the date on which the employee has been transferred.

3«Punishment All the employees are required to obey and abide the rules and regulations of the project. Violation of rules and regulations by the employees is considered as misconduct of the employees and consequently leads to the punishment.

The following acts of the employees are considered to be a violation of the law. 1«.disobedience to the supervisors 2«. refusal to obey the lawful orders of the supervisors 3«. taking or giving bribes 3«. to damage the property of the factory 5«. absence without leave from the factory 6«. late arrival in the office 7«. found sleeping during the working hours 8«. found absence from the work for one or two hours

5. Any employee who is found guilty of the above miss conducts, action may be taken against him, which leads to the following punishments

1«. the management will issue a warning to the employees to be careful for future and not to repeat this action or otherwise he will be punished.

2«. some time the management makes deduction from the salary.

3«. some time the management will hold the increments or promotions for a certain period of time. They not give them increment and promotion during that a period of time

4«. some time he his demoted to the lower post

5«. in case of serious miss conduct the management will dismiss him from the services.

The head of the department to which the guilty employee is concerned sends the case of employee to the personal department. The personal department will call for his explanation and the employee will explain his position in the light of charge framed against him within a specified period of time. The explanation is received from the employee and then the case of the employee with explanation is forwarded to the project manager for the final decision. If the employee is found guilty he is punished otherwise the case is dropped by the project manager.

4«Transfers One of the functions of this department is the transfer of employees. Usually the employees are not transferred from one department to the other department. But if any employee of a department wants to transfer to another department consent of the department is essential. After positive reply from both departments i.e. the department from which he wants to be transferred and the department to whom he want to be transferred. The case is transferred to the project manager who posses the transfer orders.

6. Leave procedure The following leaves are allowed to the employees of the mill. 1«CASUAL LEAVE 2«MEDICAL LEAVE 3«LAVE WITHOUT PAY There are special rules and regulations for leaves made be the factory. These rules are applied to each employee of the mill. The explanation of above leaves are as followed a«. casual leave

A«CASUAL LEAVE The project manager grants the casual leave. The leave is allowed only to the permanent employees of the project. Every employee has the right to avail ten days casual leave per annum, Three days at a time is the maximum ceiling for the leave.

B«MEDICAL LEAVE

This leave is also allowed to the permanent employees. This leave can be granted on the basis of medical certificate issued by any authorized medical officer. In the case of one day no medical certificate is necessary, every employee is allowed ten days medical leave per annum. If the disease of the employee is such that it requires more than a day then the approval of the project manager is necessary.

C«LEAVE WITHOUT PAY

This leave is granted to the employees when leave without pay is exhausted and none of the type of leave is available at his credit, leave without pay is granted by the management of the projection cases this leave can not be more than one month at a time. But can be extended in special cases.

Any employee who is found guilty of the above miss conducts, action is liable to be taken against which it leads to the following punishments

1«. the management ill issue a warning to the employees to be careful for future and not to repeat this action or otherwise he will be punished. 2«. some time the management makes deduction from the salary. 3«. some time the management will hold rhea increments or promotions for a certain period of time. They not give them increment and promotion during that a period of time 4«. some time he his demoted to the lower post 5«. in case of serious miss conduct the management will dismiss him from the services.

7. Workman compensation In this project compensation is paid to the workers when they receive injuries in the cause of work during accident. If the worker has violated the safety precaution the management is not bound to pay compensation. The management also pays compensation for any kind of diseases, which are caused as a result of the type of duty. Also in this case he must prove that he has suffered disease during the employment. If the disease pertain to preposition period, compensations cannot be claimed.

8. Fringes benefits The employee of this mill is given the following fringe benefits in the form of money or shape of certain facility in addition to their monthly wages. These benefits are mentioned below

9. FUNDS The project maintain a provident fund for the employee under the rule of provident fund every permanent employee of factory who have completed six month continue service in the factory is eligible subscribe towards the fund. Provident fund consists of deductions from the monthly wages of the employees as equal amount is also contributed toward the provident fund by the mills. The total amount of provident fund is deposited in the account of provident fund and separate account is maintained for every employee in the account office of the factory. The total amount alongside interest is paid to the employee in lump sum upon completion of office tenure. During the employment an employee can take loan from the provident fund for the urgent needs. The management sanctioned the required loan upon 50% of the total loan is recovered in easy installment from the monthly salaries. Place allowance Place allowance are given in the following ways 1«. those employees whose pay is unto Rs. 300 p.m. is given 205of the basic pay 2«. those employees whose pay is up to 301 to 500 per month are allowed Rs. 155of their basic pay. 3« those whose salary is more than R.s. 500 are given 10%of their basic pay.

10. HOUSE RENT The employees are also paid hose rent at the basic pay=claw 405 means cost of leaving allowance up to Rs. 500 = 110 fix Rs. 501/-uptors 735/-=10%of basic pay+25+25 Rs735/-and above 9736)=105 of their basic pay=25

11. MEDICAL ALLOWANCE Every employee and his family are given free medical facilities. Whenever any employee or any of his family member fall ill, the management is responsible for their medical allowances, payment made as a result of medical treatment are disbursed later on. The medical parishioners prepare the bills of medicine, and these bills are offered to the finance manager for payment.

12. FACED WASHING ALLOWANCE Washing allowance is given to all the employees at the rate of rs 6 per month.

13. EDUCATION FACILITIES In the Fecto sugar mills there is special arrangement for the employees children education. Educational facilities are intro under worker children ordinance 1967, under the ordinance each factory should provide free education to the children of the employees. This ordinance applied to all those organizations 29 or more than 20 workers. The employee receiving monthly wages less than Rs.10000 are entitled to avail these facilities. Under the ordinance the education will be free for one child of each employee of the factory. The children of the employee are free from tuition fee school funds and the cast of the books. There is also transportation system for the children of employees. 14. Scholar Ships To Children of Employees In this mill without free education to the children of the workers scholarship at the rate of rs 15 rs25 rs 30 are awarded to the deserving children of the employees in their 5th 8th and 10th classes

15. CANTEEN FACILITIES The mill has provided the canteen facility to its employees. Adequate furniture¶s and other facilities are available in the canteen.

16. FAIR PRICE SHOP The mill has provided a fair price shop facility to the employees. In the fair price shop a person can buy the comm. duties of daily use on their prices

17. BONUSES In this mill employees are given the bonus also. The number of bonus usually is divided between the management and workers unions on production basis. / 1« one bonus is given on the production of 1000000 lack bags of sugar 2«. The production of 2000000 lack bags of sugar are given the two bonuses

3«on additional 50 thousand bags of sugar one bonus is given. The amount of one bonus is equal to one basic pay of the employee, but after up to the present time the required limit for bonus is not attained as the project is running in losses and the production has always been less than the actual capacity.

Employees /Personnel in various section

CLASSIFICATIN OF WORKERS

The workers of Fecto sugar mills can be classified as under: 1««««« PERMANENT WORKERS 2««««« TEMPORARY WORKERS 3««««.. SEASONAL WORKERS 4««««.. DAILY WAGE WORKERS 5««««.. APPRENTICES

y Permanent workers Those workers who are engaged on performing their services for the whole year are called permanent workers. They are appointed on those jobs, which are of permanent nature.

y Temporary workers Temporary workers are appointed on those jobs, which are of temporary nature. They are likely to be financed in a maximum period of nine months.

y Seasonal workers These workers are hired during the cane crushing seasons, when the season is over they are lay off.

y Daily wage workers These are the workers who worked and get their remuneration on daily bases. They can be hired in any section where they are needed.

Apprentices These are the learners. This is a work mean, to which allowances are paid during the training and after the completion of the course.

Report on Sugar Industry