Zuari Industries limited

Zuari Industries limited

Sachin S. Acharya

PROCESS MAPPING OF DOCUMENTS

IN FINANCE DIVISION

INTRODUCTION Zuari Agro Chemicals Limited was setup in 1967 to

produce 220,000 tonnes of Ammonia & 340,000 tonnes of Urea in collaboration between the House of Birla & US steel corporations.

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

PRODUCT MARKETING Zuari’s ‘Jai Kisaan’ range of fertilizers is marketed in the

five states of Maharashtra, Karnataka, Andhra Pradesh, Goa and Tamil Nadu through a network of 2500 authorised dealers.

Products Jai Kisaan Urea Sampurna Samrat Samarth Sampatti

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

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

literature & audio visual aids.

HUMAN RESOURCE DEVELOPMENT Zuari believes in employee satisfaction &

Engagement and believes in continuously evolving building new practices to develop the people and organisation.

Facilities like:- Canteen facilities Service Award Facilities for children and other facilities are

provided to the employees.

SWOT ANALYSIS STRENGTH Full range of Agri inputs needed by farming

community, such as fertilisers, pesticides, micronutrients, speciality fertilisers, compost.

Company is now regarded as one of the major suppliers of imported fertilisers in the country.

WEAKNESS The company has to relie on imported products

for raw materials. The import dues are more so the cost of the

product increases.

CONTD.. OPPORTUNITIES Government initiative in terms of increase in

Foreign Institutional Investors (FII) will help the company by way of funds and accelerating its growth.

WEAKNESS Dependence on imports to cater to market

needs(Phosphatic fertilisers).

PORTERS 5 FORCESTHREAT OF ENTRY LIMITEDDue to the government restriction the barrier to entry for urea is limited /under the control of the government

BARGAINING POWER OF BUYERS LOW• The bargaining power of buyers is low as the

rates of the fertiliser product are controlled by the government.

BARGAINING POWER OF SUPPLIERS LIMITED• Rates are based on the guidelines fixed by

the government, the bargaining power of suppliers is very limited.

CONTD…THREAT OF SUBSTITUTES LOW• Suppliers are less in number as

compared to the demand for the fertiliser product

COMPETITIVE RIVALRY LIMITED• The fertiliser product is a bulky

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

PROJECT

OPERATIONAL ACCOUNTS DEPARTMENT

COMMERCIAL ACCOUNTS DEPARTMENT

TREASURY DEPARTMENT

COST ACCOUNTS & MGT INFORMATION SYSTEM

FINANCIAL ACCOUNTS DEPARTMENT

PROCESS MAPPING OF DOCUMENTS IN FINANCE DIVISION

OPERATIONALACCOUNTS DEPARTMENT

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

PURCHASES

ACTIVITY

PURCHASE PROCESS

PROCESSREORDER LEVEL OF

INVENTORY

INDENT PREPARED BY USER DEPARTMENT

INDENT RECOMMENDED BY

LIMITS OF AUTHORITY

LIMITS OF AUTHORITY AUTH. APPROVE

SCREENING COMMITTEE

STORES DEPT. APPROVES

PURCHASE DEPT

POS SENT TO OAD

DOCUMENTS

GRIN (SAP & HARD COPY)

PURCHASE ORDER

DOCUMENTS Documents Received are: Indent Purchase Order Bill Of Lading/ Air Way Bill Packing List Certificate of Origin Suppliers Challan Invoice Bill Insurance

CONTD… Documents Created are: MIRO Documents Forwarded are: MIRO Payment request to Treasury

COMMERCIALACCOUNTS DEPARTMENT Deals with the accounting sales and collection,

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

SALES

ACTIVITY

SALES PROCESS

PROCESS

I-NOTIFIER

SALES ORDER BY DEALER

DELIVERY OF GOODS

INVOICNG & COLLECTION

DOCUMENTS

SALES ORDER

INVOICE BILLDEBIT NOTE/ CREDIT NOTE

DEALERS STATEMENT A/C

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

CONTD…

Documents Created are: Payment, Journal Vouchers Invoice Debit, Credit Note Subsidy Claim Bills

Documents Forwarded are: Payment Voucher

Regions (16): Release Order Documents (ROD) Invoice Price Card

TREASURY DEPARTMENT Treasury department is into raising and realising

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

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

PAYMENTS ACTIVITY

PAYMENTS

PROCESS

REQUEST FROM PURCHASE/OPERATION

DEPARTMENT

PROCESS SAP - BANK PAYMENT VOUCHER IS

PREPARED

COLLATES AND CREATE AN ENCRYPTED FILE

UPLOADS THE FILE ON THE HDFC E-NET

VERIFICATION OF THE FILES

TWO - AUTHORISATIONS

CONFIRMATION

PAYMENT

PAYMENT CONFIRMATION MAIL

DOCUMENTS

BANK PAYMENT VOUCHER

SUMMARY OF PAYMENT - REPORT

CHEQUE / DD REQUEST / RTGS LETTER

DOCUMENTS Documents Received are: MIRO

Documents Created are: Payment Voucher

Documents Forwarded are: ---

COST ACCOUNT & MGT INFORMATION SYSTEM Cost Accounts department is into compiling all

MIS reports (management information reports) accounts related to all departments.

Budget (capital and revenue expenditures)

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

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

FINANCIAL ACCOUNTS DEPARTMENT

The compilation and finalisation of accounts is done in this department.

It also looks after all the employee related expenses like salary, Provident Fund, Super Annuation Fund

It also makes establishment and administrative payments like travelling and consultation expenses, and taxation i.e. tax audit, tax returns

SALARY

ACTIVITY

SALARY PROCESS

PROCESS

SALARY MASTER

ATTENDANCE

STATUTORY DEDUCTION

PROCESSING OF SALARY IN FINANCIAL

ACCOUNTS

DISBURSMENT

DOCUMENTS

INTER-DEPARTMENTAL MEMO

CONTROL OF ATTENDANCE

& CONTROL OF LEAVE

ADVICE FOR CREDITING EMPLOYEE

BANK ACCOUNT

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

RECOMMENDATIONS All import related documents which are office copies

for e.g.. bill of lading, packing slips, etc. can be scanned and stored so that use of less files and space to store.

INDEX with each individuals (Pertaining to his department records) for easily locating the files.

Payment request (f-47) is taken 2 copies, one is forwarded to Treasury and the other is filled within the department records. As there is a workflow, only a mail to Treasury department can be sent or in case Treasury department wants Hardcopy and at least ONLY ONE copy can be printed.

CONTD… Company can create more awareness about filing

the LTA and Declaration forms online. If possible the vouchers generated can be

printed both sides to save paper and easy filing of documents.

More system driven workflow should be adopted rather than depending on hard copies.

LEARNINGS &CONCLUSION

LEARNINGS Letter of Credit Procedure/ Process. Payments(Domestic ) Salary Process. Sale Procedure /Process. Investments made by the company in increase

Funds. Flow of documents for payments. Overall working of Finance Division.

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

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

REFERENCES  Annual Report ZIL 2010-2011

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

http://economictimes.indiatimes.com/zuari-industries-ltd/directorsreport/companyid-12793.cms

http://duncansfertiliser.blogspot.in/2012/02/zuari-industries-q3-fy12-results-net.html

THANK YOU