project report onbudgetary control … · web viewa project report on budgetary control system in...

A

PROJECT REPORT ON BUDGETARY CONTROL SYSTEM

IN

KESORAM CEMENT INDUSTRIES LIMITED

By

Mr. …………….

(…………….)

PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF

THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

…………………………………college

(Affiliated to ………….)

HYDERABAD

2011-2013

TABLE OF CONTENTS1

S.NO CHAPTER NO NAME OF THE CHAPTER PAGE NUMBER

1 CHAPTER -I INTRODUCTION:

-Introduction-Need for budget-Objectives of the study-Methodology of the study-Limitations

1-14

2 CHAPTER –II PROFILE OF THE ORGANISATION 15-24

3 CHAPTER – III REVIEW OF LITERATURE:

-Essentials of budgetary control-Requisites for a successful budgetary control system-Types of budgets

25-38

4 CHAPTER - IVBUDGETING AND BUDGETARY SYSTEM IN KESORAM CEMENT 3INDUSTRIES LTD.

39-51

5 CHAPTER – V ANALYSIS AND INTERPRETATIONS 52-64

6 CHAPTER – VI CHARTS

65-71

7 CHAPTER -VII ANNEXURES 72-77

8 CHAPTER - VIII CONCLUSIONS & SUGGESTIONS 78-80

9 - BIBLIOGRAPHY

81

2

CHAPTER-I

INTRODUCTION

INTRODUCTION:

3

It is well recognized that budget are among the essential tools of management of any organization unlike

other management aids, budgets are made use of practically by all functionaries in the organization.

Budgets not only reflect the plan of action for different levels of management but are also useful to

monitor various activates and initiate mid course corrective actions. Budgets just do not reduce the

managerial function to a mere formula but aids as a managerial tool.

Hence”effective use” of this art as well science. Thus it needs continuous budget education and creation of

evaluation and performance through budgets. Budgets provide management summarized picture of the

results to be expected, also forms the proposed plan of operations. They enable the management to

determine whether the plan is satisfactory. Budgets serve as a guide to executives and departmental heads.

They measure performance since” Budget Deviations” reflect either the organization failure to achieve the

planned standards of performance or its ability to better them.

Thus budgeting is a means of obtaining the most productive and profitable use of the companies’ resources

through planning and control. Budgets are helpful in coordination the various activities (Such as

production, sales, purchase etc) of the organization with the result that the activities precede according to

the objective.

Budgets are means of communication. Ideas of the top management are given the shape of the

budget and are passed on the subordinates who are to give them the practical shape. As the activities of

various departmental heads are coordinated at the preparation of budget, it is helpful in developing a team

work which is very much needed for the very success of an organization. Thus, a budget is necessary to

plan for the future, to motivate the staff associated, to coordi9nate the activities of different levels. A

budget is an overall blue print of a comprehensive plan of action expressed in physical and financial terms;

it includes plan for each of the activity responsibility centers of the business and provides a link between

the physical and financial plans of various departments of a company. It is also a document to serve as

control for monitoring and review. The budget system should be such that it makes it imperative for

management to establish goals and objectives, define policies, develop programmers’ both long term and

short term, measure performance against the targets and in the process, revises the part of management. In

a way of budgetary control system has been increasing an enterprise’s profits, and a goals-achieving

machine for facilitating organizational coordination and planning while achieving the budgeted targets.

4

NEED FOR BUDGETS

The rationales for budgets have five aspects:

1. Authorization : The budget is used to authorize the expenditure and activities contained in it.

2. Evaluation of performance : The planned activities and expenditures contained in the budget

provide a standard against which the actual achievement of the firm can be measured and evaluated.

3. Coordination of activities : The piecemeal budgets of the subunits of the firm are so framed that

each sun-unit is made to contribute to the achievement of the overall budget.

4. Control : The setting up of organizational machinery to direct efforts towards the planned aims.

The budgets sets out the planned activity, subsequent deviations between achievement and plan will

indicate the need for investigation and corrective action.

5. Motivation : The budget is so constructed as to move employees form one target goal to another;

indeed it is bound up with the reward punishment type of organization environment and

bureaucratic decision processes, where employees are given incentives to work towards the

achievement of the firm’s targets.

WHY COMPARE ACTUAL AND BUDGET?

One of the objectives of budgeting is to provide a base against which actual performance can be

measured. This is only worth doing if action will be taken as a result.

In too many organizations the production of results compared to budget is seen as the end of the process. If

no action is taken on the basis of management accounts then there is little point in producing them and even

less point is wasting management time discussing them.

5

By identifying progress we are better informed regarding the effects of our actions and have a clear

understanding of the effect of any future action we take. Knowing how much is being spent each month

enables a manager to consider whether action needs to be taken to spend more or less in the future. This

process is only worthwhile if the budget is realistic. Analyzing variances against an unrealistic budget is

pointless.

However in a well runs organization the comparison between actual and budget is used as the basis for

deciding the appropriate action. This paper sets out how the analysis is used to maximum effect. The

process is really part of the normal control process.

WHAT CAUSES BUDGET VARIANCES

There are four key reasons and it is important that good managers recognize the differences, because the

action required is may be completely different in each case.

The four reasons are:

1. Faulty Arithmetic in the Budget figures.

2. Errors in the Arithmetic of the Actual Results

3. Reality is wrong

4. Differences between Budget Assumptions and Actual Outcome

Each of these will be examined in turn.

1) Faulty Arithmetic in the Budget Figures

It is perfectly to have an error in the budget. This includes errors of commission or duplication as well as

pure arithmetic. One action is to make a note to ensure it does not happen again when the next budget is

being done. Other action depends on the error.

Assume the budget stated no overdraft would necessary and it now appears one is required because the

sales forecast was used to predict cash inflows rather than the debtor payments. There are two options: Go

to the bank and ask for an overdraft, or take some other action to improve cash flow to stay within the

6

budget cash figure. The original budget numbers will need to be changed to reflect the new circumstances

and future reporting should be against the revised budget (often called a reforecast or latest estimate.)

Action is required but it may not be within the area where the error was made.

AVOID: “The Accounts figures are always different from ours so we ignore them and keep our records”.

2) Errors in the arithmetic or the actual results

It is perfectly possible for the actual results to be reported wrongly. This includes the use of the wrong

category omission of costs; double counting of income etc. one well known way of staying within budget is

to throw away any invoices received from Suppliers, or charge them someone else’s account code. This

sort of deliberate action makes nonsense of budgetary control and must be avoids. The corrective action

once this is discovered is to prevent it happening again. Improvements in management education and

control procedures are recommended.

One extra consideration is that in order to correct the error the cumulative results will need to be corrected.

This means either putting through a correction in the next period, which will then also be wrong, or

adjusting the past results to correct the error.

Failing to note that the correction can cause misleading results can lead to wrong decisions being made.

AVOID: “The accounts figures are always different from ours so we ignore them and keep our own

records.”

3) Reality is wrong.

Sometimes the actual results are useless as an indicator. A strike or natural disaster will have an impact on

results. This does not mean that the budget process in future should include an allowance for this

happening again. (However in large organizations it is normal to allow for the impact of a disaster centrally

as a contingency even if it is not budgeted at operating unit level.) If necessary, insurance should be taken

out. If business is disrupted for two weeks, then it is pointless to compare the remaining two weeks of the

month against a full month’s budget. Produce a realistic budget for only two weeks and compare against

that to establish true performance under normal circumstances.

7

AVOID: “The variances are distorted because of …..So it’s not my fault”.

4) Differences between budget assumptions and actual outcome

This is the key issue and the one which involves the use of variance analysis techniques. Remember that

all budgets contain errors in the assumption No one knows the future outcome for certain. The important

thing is not to apportion blame by looking backwards, but to look forwards and take action to improve the

future in the light of experience. The action to be take action to be taken depend s on circumstances.

However, punishing deviation from the budget is the best way of destroying the budget process.

Manages will spend up to budget, conceal data, make the actual fit the budget in order to avoid blame.

This is particularly true in large multi-national organizations. The emphasis must be on what can we do

about it, rather than why the results are different.

AVOID: “We are under budget, who can we blame?”

HOW ARE VARIANCES CALCULATED

There are two important rules:

1) The level of variance analysis should be decided by the needs of the decision maker, not the

convenience of the reporter.

2) The budget must always be flexed for volume changes to produce realistic Variances.

EXAMPLE:

PARTCULARS BUDGET TOTAL

8

SALES VOLUME 100 90

SALES VALUE 1000 990

VARIABLE COSTS 500 495

FIXED COSTS 200 210

PROFIT 300 285

The budget committee wishes to blame someone for the fact that profit is down by 15.

“It is obvious who is to blame sales are below target and fixed costs have not been controlled”.

PROPER VARIANCE ANALYSIS

The require some through and some simple calculations. It has 4 Stages:

1) Flexing the budget.

2) Analyzing the variances.

3) Identifying the causes.

4) Taking appropriate action.

Since only the last of these is a value adding activity, the first three are only worth doing if step 4 is taken

in time to help future results. This may mean the first three steps have to be done fast even if that reduces

their accuracy.

FLEXING THE BUDGET

In the example it is futile to compare the actual variable costs with the budget. To do so suggests that the

manager is doing better than budget, but actual volume is below budget so costs should be lower. It is vital

to produce a revised budget to use for comparison. This does not mean that the original budget is useless.

It merely means that in order to analyze the 15 difference it is important to start by removing the impact of

volume changes on the various headings which are by it.

PARTICULARS ORIGINAL BUDGET REVISED BUDGET ACTUAL

SALES VOLUME 100 90 90

SALES VALUE 1000 900 990

9

VARIABLE COSTS 500 450 495

FIXED COSTS (LESS) 200 200 210

PROFIT 300 250 285

This recalculates the budget using actual volume but budget prices and shows that the expected profit for

90 units is 2502. Thus the impact on profit is a reduction of 50 and this can be identified as SALES

VOLUME VARIANCE Rs. (50). A common convention is to put unfavorable variances in brackets.

Now the other variance can be calculated.

ANALYSING THE VARIANCES:

PARTICULARSORIGINAL

BUDGETREVISED BUDGET ACTUAL VARIANCES

SALES VOLUME 100 90 90 -

SALES VALUE 1000 900 990 90

VARIABLE COSTS 500 450 495 (45)

FIXED COSTS (LESS) 200 200 210 (10)

PROFIT 300 250 285 35

The valid set of budget data is to compare against actual. The variance on sales can be due to price. This is

the SALES PRICE VARIANCE of Rs. 90.

The variable costs require further investigation.

Assume that the original budget was to use 2.50 meters of material for each sales unit and that each meter

was expected to cost Rs. 2.00. This gave a budget figure 100 X 2.50 X Rs.2.00=Rs.500.

The Actual result included a price of Rs. 2.75 per meter but only 2.00 meters were used per sales unit. This

gave an actual figure of 90 x 2.50 x Rs.2.00 = Rs. 450.

To identify the cause of the variance of Rs. 45, we need to separate the price impact from the usage

impact.

Price

We expected to pay Rs. 2.00 per meter; we did pay Rs. 2.75 per meter.

10

Each of the 180 meters we bought cost 0.75 extra ….180 x (2.00-2.75) = Rs. (135) this is the MATERIALS

USAGE VARIANCE Rs. (135).

Usage

We expected to use 225 meters in total to make 90 units; we did use 180.

At the budget price of Rs. 2.00 we saved …..Rs.2.00 x (180-225) = Rs.90

This is the MATERIAL USAGE VARIANCE Rs.90.

On fixed costs we expected to spend Rs. 200 but we did spend Rs. 210.

The FIXED COST VARIANCE IS Rs. (10).

SUMMARISING THE VARIANCES

SALES VOLUME (50)

SALES PRICE 90

MATERIALS PRICE (135)

MATERIALS USAGE 90

FIXED COSTS (10)

-----------

(15)

======

IDENTIFING THE CAUSES

11

This is where politics and blame apportionment must be avoided. Consider these possible Comments on

the above figures.

“The price of the raw materials went up so we asked the factory to be careful about waste and told the

manufacturing force to put prices up”.

OBJECTIVES OF STUDY:

To provide a theoretical framework of budget, and budgetary control.

To describe the profile of the organization as a backdrop for undertaking a study of budgetary

control system.

To analyze the budgetary system in practice in Kesoram cement Industries Limited (hereafter

Kesoram) with particular reference to their objectives and phases of organizational and re-

appropriation.

In addition to the analysis of the conventional budgetary system in practice in Kesoram cement

Industries limited. The study aims at evaluation and modification to the budgetary system with

reference to the various types of budgets. The scope in the formulation of performance budget is

also studied

METHODOLOGY

12

SOURCES OF DATA:

A). SOURCES OF THE DATA

There are mainly two important sources through which the whole data is collected.

Primary data

The primary data of the topic is collected by personal interaction with the officials of the finance and

accounting department and also from annuals of the company. The financial data relating to the

organization has been collected for the 5 years

· Secondary data

The data collected from the other sources.

SCOPE OF THE STUDY:

The data of basanthnagar, kesoram cement industries limited, have been collected mainly from secondary

sources via…

1. From the concerned officers of the kesoram cement industries limited.

2. Kesoram cement industries limited-journals.

3. Accounting books, records.

4. Key books of concerned title.

5. Statically records.

6. Kesoram cement industries limited library.

13

LIMITATIONS OF THE STUDY

Estimates are used as basis for budget plan and estimates are based on available facts and best

managerial judgment

Budgetary control cannot reduce the managerial function to a formula. It is only a managerial

Tool which increase effectiveness of managerial control

The use of budget may lead to restricted use of resources.

Efforts may therefore not be made to exceed the performance beyond the budgeted targets.

Frequent changes may be called for in budgets due to fast changing industrial climate.

In order that a system may be successful, adequate budget education should be imparted at least

through the formative period. Sufficient training programs should be arranged to make employees

gibe positive response to budgetary activities.

The study is the limited up to the date and information provided by Kesoram cement industry

Limited and its annual reports

14

CHAPTER-II

PROFILE OF THE ORGANIZATION

15

PROFILE OF THE INDUSTRY:

The 85-year –old Indian cement industry is one of the cardinal and basic infrastructure industries which

enjoys core sector status and played crucial role in the economic development and growth of a country.

Being a core sector this industry was subject to price and distribution controls almost uninterruptedly

from world war-II. When government of India announced the partial decontrol manufacturing cement

became increasingly attractive and the industry experienced substantial expansion. As the supply in

response to the 1982 partial decontrol was significant in March 1989, price and distribution control were

finally dispensed with .It was one of the first Major industries in the country to be so deregulated.

OVERVIEW OF THE INDUSTRY:

The word cement means any substance applied for sticking things. But cement is most vital and

important material for modem construction as a binding agent .In the ancient times ,clay ,bricks and

stones have been used for construction work.

The Romans were using a binding or a cementing material that would harden under water. The first

systematic effort was made by SMEATION who under took the erection of a new lighthouse in 1756.he

observed that the production Obtained by burning limestone was the best cementing material for work

under water.

After eighty years branch chemist produced hydraulic cement by burning finely

ground delay used in the form of paste .cement invented by JOSEPH ASPDIN in 1824. Since

hardened Cement paste resembled Portland stone found in England be named it a s Portland

cement A name that has ensured even Portland cement was list manufactured in USA in 1975 In

Portland cement was produced for the rust time in 1940. By south India industries limited Madras.

This unit had capacity of 30 tonnes per day.

By 1913 however three units started their operations with a combined installed

capacity Of 75000 tones per annum. In 1914 indigenous production fees for short of

domestic demand necessitating an import of 1,65,723 tones .Shipment difficulties and foreign

16

Trade during the first world war acted as a catalyst for the development of indigenous

Industry and by 1924 the total installed capacity grew to 5,59,800 tones per annum.

In 1963 all the cement companies with the exception of SONE VALLEY PORTLAND CEMENT

COMPANY LIMITED merged to form the ASSOCIATED CEMENT COMPANIES LIMITED. This has

more facilitated a cost reduction as well as uniformly in quality. By 1947 the installed

capacity of the industry raised to 2.2million tones per annum. After partition 5 of the

cement producing units in the country went to Pakistan And total installed capacity

of 18 units that remained in India was 1.5 million tonnes per Annum . This is increased to

3.8million tones by 1950-51. In the three decades between 1950-1980 the capacity

expansion was between 7-8 million tonnes per decade the target set in respect of additional

capacity generation was released with impetus given by the partial decontrol announced in

1982. Several units locked up project for expansion of capacity and modernization which

contributed towards increased production.

DEFINITION OF CEMENT :

Cement may is defined as a mixture of calcium sulfate and aluminates which have the

property of setting and hardening under water .The amount of silica which is present on each

crust are sufficient to combine with calcium oxide to form the corresponding calcium silicate and

aluminates

CLASSIFICATION OF CEMENT: Cement is of 3 types

1. Puzzolantic cement

2. Nature cement and

3. Portland cement

17

Puzzolantic cement:

It consists of mixture of silicate of calcium and aluminum .it shows the hydraulic properties when it is in

the form of powder and being mixed with suitable proportions of suitable Proportion of lime

The rate of hardening is much slower and the comprehensive strength developed is about half of Portland

cement .it is found more resistant to the chemical action than others.

Natural cement:

This is nature occurring material it is obtained from cement rocks these cement rocks are

claying lime stones containing silicates and aluminates of calcium the Selling property of this

cement is more than the Portland cement but the comprehensive is half of it.

Portland cement:

This is of various kinds

1. ordinary Portland cement

2. rapid hardening Portland cement

3. low heat cement

4. white colored cement

5. water proof Portland cement

6. Portland slang cement

7. port land puzzling cement

8. sulfate resisting

INDIAN CEMENT INDUSTRY PRESENT STATUS

After the dealing of the industry in July 1991 it reacted positively to the policy changes

new capacities created and the volume of production increased from a situation of

importing cement the country started exploring due to high quality and cost

effectiveness after liberalization the black market in cement also disappeared currently

India stands second largest in the cement production worldwide after china on the other

hand per capita consumption in India is only books as compared To the world average of

260kgs the industry has S9 companies owning 11S plants in the matters of exports the

government considers cement as a extreme Focus area. However Indian cement in the global

18

market is not very competitive Due to high power and full costs. in order to improve its position in

the international market technological up gradation is essential in terms of process

Product diversification cost reduction quality control and energy saying.

ABOUT THE INDUSTRY

This chapter examines a profile of cement industries ltd. i.e. .its history location organization

structures etc.

LOCATION

Kesoram cement industry is one of the leading manufacturer of cement in India it is a day process

cement plant the plant capacity is 8.25 lakh tones per annum .it is located at basanthnagar in

karimnagar district of Andhra Pradesh Basanthnagar is 8km away from the Ramagundam

railway station linking madras to new Delhi. The chairman of the company is syt.B.K.Birla.

19

HISTORY OF THE KESORAM

The first unit at Basantnagar with a capacity or 2.1 lakh tons per annum in corresponding suspension-

preheated system was commissioned during the year of 1969 the second unit Was setup in year 1971

with a capacity of 2.1 tones per annum and the third unit with a capacity of 2.5lakh tons per annum

went on stream in the year 1978 the coal for this company is being supplied iron singareni

collories and the power is obtained from

APSEB the power demand for the factory is about 21MW kesoram has got 2DG sets of 4MW each

installed in the year 1987.

Kesoram cement industry has set up a 15kw capacity power plant to facilitate for uninterrupted

power supply for manufacturing of cement starts at 24 august 2008 per hour 12 mw, actual power is 15mw.

Birla supreme in popular brand of kesoram cement from its prestigious plant of Basantnagar

in A.P which has outstanding track record in performance and productivity serving the nation

for the last two and had decades It distinction by Bagging several national awards .It also has

the distinction optimum capacity utilization.

Kesoram offers a choice of top quality portioned cement for light heavy constructions and

allied applications quality is built every fact of the operations.

The plant layout is rational to begin with the limestone is rich in calcium carbonate a key factor that

influence the quality of final product the day process technology used in the latest computerized

monitoring overseas the manufacturing process samples are sent regularly to the bureau of Indian

standards national council of constructions and Building material for certification of derived quality

norms

The company has vigorously undertaking different promotional measures their product

through different media which includes the use of newspapers ,magazines ,hoardings etc

Kesoram cement industry distinguished itself among all the cement factories in India by bagging the

national productivity award consecutively for two years and the year 1985 -1987.the federation of

Andhra Pradesh chamber of commerce and industries also conferred kesoram cement an award

20

for the best Industrial promotion expansion efforts in the year 1981.kesoram also bagged FAPCCI

Awarded for “best family planning effort in the state “ for the year 1987-1988.

One among the industrial giants in the country today serving the nation on the industrial

front kesoram industrials Ltd has a cheque red and eventful history dating Back to the twenties

when only a textile mill under its banner 1924 it grew from Strength to spread and activities 10

newer fields like Rayan pulp Transport paper spun pipes refractivites types and other products

Looking to the wide gap between the demand and supply of a vital commonly cement Which plays UI

important role in national building activity the government of India had de-licensed the cement

industry in the year 1966 with a view to attract private entrepreneurs to augment the cement industry

production kesoram rose to the occasion And divided to setup a few cement plants in the country

Kesoram cement undertaking marketing activities extensively in the states of Andhra Pradesh,

Karnataka, Tamilnadu, kerala, Maharastraha, and Gujarat. In AP sales depots are located in different

areas like karimnagar Warangal Nizambad Vijayawada and Nellore In other states it has opened around

10 depots.

AWARDS WON BY KESORAM

Kesoram cement bagged prestigious awards like national awards for productivity and technology and

conservation and several state awards for year 1984 kesoram cement is best family planning effort in

the federation of Andhra Pradesh chamber of commerce And industry and also national award for two

successive years 1985-86&1986-87.It has also bagged the national award for energy efficiency for the

year 1989-90 for the performance among all cement plants in India .thus award stall-by national council

For cement and building material in association with the government of India.

Kesoram bagged the prestigious Andhra Pradesh state productivity award in 1987-1989 also Annexed

state award for industrial management in 1988-1989.and also “Best Industrial promotion expansion

efforts “ in the state and yajamanya ratna and best efforts an industrial unit in the state to develop

rural economy was bagged for its contribution towards the year 1991.

21

it also bagged the “may day award” of the government of India For the best management and the Pandit

Jawaharlal Nehru silver rolling trophy for the industrial productivity effort in the state of Andhra

Pradesh by FAPCCI and also the Indira Gandhi memorial national award of the government of

Andhra Pradesh for the year 1993.

During the last 3 years the government of Andhra Pradesh has given the following awards Best

awards for the year 1994.

Best industrial relation award for 1994.

To keep the ecological balance they have also undertaken massive tree plantation in the economy and

government of India has nominated township areas and them for VRIKSHMITHRA award Best effort of

an industrial unit in March 1996.

In the year March 2008 “Best management award 2008” for the best management practices in kesoram

cement industry presented by chief minister.

CEMENT PRODUCTION WORLDWIDE

Country 1981 1983 1986 1989 1990 World ranking

China 83 108 106 210 210 1

Japan 88 85 73 82 87 2

U.s.a 65 61 71 70 72 3

India 21 25 36 45 48 4

Italy 43 40 36 4 41 5

Germany 30 28 24 27 40 6

Today in the cement industry is producing 58.3 million tones per annum indication surplus conditions

while its demand is 56.7 million tones lies per annum Now The cement market has become ‘buyer

market’ which was

A ‘selling market’ till 1970’s and so the quality &brand taken an upper edge for cement marketing.

Today installed at the India cement industry is 771lakh tones But in India 106 Major plants

are producing 583lakh tones leaving the balance for exports.

22

INDIA’S LARGEST CEMENT COMPANIES POST ACQUISITION

Company Cement capacity

In TPA

Cement % of

Sales

Larsen& turbo 12.0 20

ACC 11.3 93

GRASIM 9.7 28

INDIAN CEMENT 6.6 92

GUJRATHI AMBHUJA 6.5 100

WEAKNESSES:

The per capita consumption of the cement in India is very low

The transport costs in India are very high

The cement industry is facing with acute power shortage and raw material problem

The industry is also facing major packaging problems

OPPORTUNITIES:

The industry has tremendous potential for growth in India

In near future cement is going to replace tar for the construction of roads

There are good prospects for export with cement export promotion council

The government polices of reduction in excise duty and exempting cement from the

just packaging may act as boon to the industry.

23

THREATS:

The surplus levels are increasing as the production of the cement is much greater than the

consumption.

In the present scenario of stiff competition there is a declining trend of price

The performance of the smaller unit is badly hit by major takeovers

The crisis situation in south east Asian countries may create problem to the exports of the

industry.

24

CHAPTER-III

REVIEW OF LITERATUTRE

25

INTRODUCTION TO BUDGET AND BUDGETARY CONTROL:

The management is efficient if it is able to accomplish the objectives of the enterprise It is effective when

it accomplish the objectives with minimum effort and most in attain long-range efficiency and

systematic approach in facilitate effective management performance is profit planning and control or

budgeting .Budgeting is therefore an integral part historical combination of a” goal setting machine

for increasing an enterprises profits and a goal achieving machine for facilitating generational

coordination and planning while achieving the budgeted gets”

MEANING OF BUDGET:

It is a financial and quantitative statement prepared and approved or to a defined period of time of

policy to be pursued during that period purpose of attaining a given objective it may include income

expenditure and employment capital

In other words it is a pre-defined detailed plan of action development distributed as a guide operations

and as a partial basis for subsequent evolution of performance

PLANING OF BUDGETING:The process of planning all flows of financial resources into within from an entity during some

specified future period it includes providing detailed allocation of available future resources to

projects ,responsibilities and time periods

From above definition I it clear that budgeting Is the actual act of caring the budget it is the process of

evolving the final statement yet is the end product of budgeting

ESSENTIALS OF GOOD BUDGET:1. it is prepared prior to a defined period of time

2. it is prepared for the definite future period

3. the policy to followed to attain the given objectivities must be laid before the budget is

4. It is monetary and/or quantitative statements of the policy.

26

MEANING OF BUDGETARY CONTROL:

It is the process of establishing of departmental budget relating the responsibilities of executives to

the requirements of a policy and the continuous comparison of actual with budgeted results either to

secure by individual action the objectives of that policy or to provide a firm basis for revision

First of all budgets are prepared and then actual results are the comparison of budgeted and actual

figures will enable the management to out discrepancies and take remedial measures at a proper

time the budgetary control is a continuous process which helps in planning and coordination it

provides a method of control too .A budget is means and budgetary control is the end result.

In the words of J.A.scolt “budgetary control is the system of management control and accounting in

which all operations are forecast so as possible planned ahead and actual results compared with the

forecast and the planned ones

ESSENTIALS OF BUDGETARY CONTROL:

1. Budgetary of the process of preparing the budget is the starting point for budgetary point for

budgetary control.

2. Distribution of budgets pertaining. To each function to all the relevant section with in organization.

3. Collection of actual data pertaining to all budgeted activities.

4. Continuous comparison of actual performance with budgeted performance.

5. Analysis of variances in actual performance and budgeted performance

6. Initiation of corrective action to ensure that actual performance is inline with budgeted

performance

7. Revision of budgeted if it is felt that the budgets prepared are no longer relevant on account of

unforeseen developments

27

OBJECTIVITIES OF BUDGETARY CONTROL:

The primary objective of budgetary controls to help the management in systematic planning and

controlling the operations of the enterprises the primary objective can be met only if there is proper

communication and coordination amongst different organization thus the objectivities can be stated as:

1. Coordination:

Coordination is a managerial function under which all factors of production and all departmental

activities are departmental are balanced and integrated to achieve the objectivities of the organization

budgeting provides the basis for organization objectivities can be realized executives are forced to

think of the relationship between their department and the company as a whole this removes

unconscious biases against other departments it also helps to identify weakness in the organization

structure.

2. Communication: All people in the organization must know the objectivities polices and

performances of the organizations they must have a clear understanding of their part in the organization

goals this is made possible by ensuring their participation in the budgeting process

3. Controls and performance evaluation:

Control ensures control by continuous comparison of actual performance with the budgeted

performance variances are highlighted and corrective action can be initiated budgets also from the

basis if performance evolution in an organization as they reflect realistic estimates of acceptable and

expected performance.

BUDGETING AND BUDGETARY CONTROL:

28

A budget is a blue print of a plan expressed in a quantitative terms budgeting Is a technique

budgetary control terms to the principles procedures and practice of achieving given objectivities

through budgets.

From the above definitions we can differentiated the three terms as budgets are the individual

objectivities of a department etc where as budgeting may be said to act of building budgets budgetary

control embraces all and in addition includes the science of

Planning the budgets to effect on overall management tool the business planning and control

ESSENTIALS OF BUDGETARY CONTROL

1. Organization for budgetary control:

The proper organization is essential for the successful preparation maintenance and

administration of budgets A budgetary committee is formed which comprises the departmental

heads of various departments All the functional heads are entrusted with the responsibility if ensuring

proper implementation of their respective departmental budgets

The chief executive is the overall in the charge of budgetary system he constitutes a budget

committee for preparing realistic budgets A budget officer is the convener of the budget committee who

co-ordinates the budgets of different departments responsible fro their departmental budgets

2. Budget officer:

The chief executives appoints the budget officer such budget officer also called as

Budget controller or budget Director “ thus rank should be equal to other functional managers”

The Budget officer does not have the direct responsibility of preparing the budgets the

various functional managers prepare the budgets his role is that of a supervisor the budget officer has

the specific duty of the budgeting activity by various departments and for co-ordination between

29

them so that there is a proper link between them He is empowered to scrutinize the budgets prepared

by different functional heads and to make changes in them if the situation so demands

The budget officer works as a coordinator among different departments he continuously monitors

the actual performance different departments steps to rectify the defiance if any he also informs the top

management about the performance of different departments

The budget officer will be able to carry out his work only if he is versant with the working of all the

departments he must have technical knowledge of the business and should also process accounting

knowledge

BUDGET COMMITTEE :

A budget committee is formed to assist the budget officer. The heads all the important

departments are made members of this committee. The committee is responsible for preparation and

execution of budgets. The chambers of this committee put up the case of their respective departments to

help the committee to take collective decisions if necessary. The budget committees responsible for

reviewing the budgets prepared by various functional heads coordinate all the budgets and approve the final

budgets. The budget officer acts as a coordinate of this committee all the functional heads are entrusted

with the responsibility of ensuring proper implementation of their respective final departmental budgets.

BUDGET CENTERS:

A budget center is the part of the organization for which the budget is prepared. A budget creator

may be a department section of department or any other part of department ideally, the head of every center

should be a member of the budget committee. However it must be ensured that each budget center at least

has an indirect representation in the budget committee.

The establishment of budget centers is essential for covering all parts of the organization

becomes easy when different centers are established the budget centers are also necessary for cost

control purpose.

BUDGET MANUAL:

30

1. A budget manual is a document that spells out duties and responsible the various executives

conquered with it specifies among various functional areas A budget manual covers the following

matters.

2. A budget manual clarity defines the objectivities of budgetary control systems it also gives the

benefits and principles of this system.

3. the duties and responsibilities of various persons dealing with preparation and execution of

budgets are also given in the budget manual it enables the management to know the persons

dealing with various aspects to budgets and provides clarity on their duties and responsibilities it

gives the information about the sanctioning authorities of various budgets the financial powers

of sanctioning authorities of various budgets the financial powers of different manages are given

in the manual for enabling the spending amount on various expenses

4. a dropper table for budgets including the sending of performance reports is drawn so that every

work starts in the and a systematic control is exercised

5. the specimen forms and number of copies to be lased fro ore oaring budget reports is also stated

budget centers involved should be clearly stated.

6. the length of various budget periods and control points is clearly given

7. The problem follow all in the centre system clearly stated.

8. A method of accounting to be used for various expenditures is also stated in the manual... A

budget manual helps the documentation the role of every employee his duties responsibilities the

ways of undertaking various tasks etc thus it also helps n reducing ambiguity at any point of time

BUDGET PERIOD:

A budget period is the length of time for which a budget is prepared upon a number of factors the choice

of a budget period depends upon the following considerations the type of budget (long\short).

The nature of demand for the products

The timing for the availability of the finance

The construction situation of the cycles

All the above mentioned factors are taken into account while fixing the period of budgets

31

The financial manager usually responsible for organizing this budget he must perform the

following functions.

To decide the general polices and guidelines

To offer technical advice.

To suggest changes.

To receive and review individual budget estimates.

To reconcile divergent with or without revisions.

To coordinate budgeting activities.

To approve budgets with or without revisions.

To scrutinize control reports later on

To scrutinize to budget reports later on.

To disseminate these guidelines.

After finalizing the budget proposal the budget committee subjects the final budget to the Board of

Directories or Budget Director for approval.

CONTINUOUS BUDGETING SYSTEM:

A continuous budgeting system is a method of having two different budget periods within the sane

budget the purpose of having this system is to have greater control in terms of operational activities

without losing sight is have greater control in terms of it results in incorporating the effect of changes

in the short term on the long-term targets of the organization

DETERMINATION OF KEY FACTOR:

The budgets are prepared for all functional areas these budgets are dependent and inter-related A

proper co-ordination among different budgets is necessary for budgetary control to be successful The

constraints some budgets too A factor which influences all other budgets is known as “key factor or

principal factor”.

32

The key factor may not necessarily remain the same the raw materials may be limited at

one time but it may be easily available at another similarly other factors may also improve at different

times. The key factor highlights the limitations of the enterprise. This will enable the management to

improve the working of those departments we here scope for improvement exists.

REQUISITES FOR A SUCCESSFUL BUDGETARY CONTROL SYSTEM.

Making budgetary control system successful requisites are required.

1) Clarifying objectives.

The budgets are used to realize objectives of the business. The objectives must be clearly spelt out so that

budgets are properly prepared. In the sense of clear goals, the budgets will also be unrealistic.

2. Proper delegation of authority and responsibilities.

Budget preparation and control is done at every level of management. Even though budgets are finalized at

top level but involvement of persons. In lower levels of management is essential for their success. This

Hesitates proper delegation and responsibility.

3. Proper communications system.

An effective system of communication is required for a successful budgetary control. The flow of

information regarding budgets should be quick so that these are implemented. The upward communication

will help in knowing the difficulties in implementation of budgets. The performance reports of various

levels will help top management in budgetary control.

4. Budget education.

The employees should be educated about the benefits of budgeting system they should be educated

about their roles in the success of this system. Budgetary control may not be taken only as a control device

by the employees but it should be used as a tool to improve their efficiency.

5. Flexibility.

33

Flexibility in budgets is required to make them suitable under changed circumstances. Budgets are

prepared for the future, which is always uncertain, even though budgets are prepared by considering the

future possibilities but still some adjustments. Flexible makes the budgets more appropriate and realistic.

6. Motivation

Budgets are too implemented by human beings. Their successful implementation will depend upon

the interest shown by the employees. All persons should be motivated to improve their working so that

budgeting is successful. A proper system of motivation is introduced for making is system a success.

TYPES OF BUDGETS.

Long term budgets:

The long-term budgets are the budgets prepared for a long period of five to years. They are concerned with

planning the operations of a firm over a considerably long period of time. The financial “Controller”

exclusively for top management usually prepares long-term budgets. These budgets are useful in terms of

physical units (i.e.….. quantities) or percentages, the accurate values may be difficult to forecast over such

long period. Initial expenditure, research and development budgets, etc, are examples long-term budgets.

Short term budgets.

Short –term budgets are budgets prepared for a short period of one to two is. They are prepared for those

activities the trend in which cannot be seen easily over long periods. These budgets are very useful are very

useful in case of consumer goods industries such as sugar, cotton, textiles, etc. they are generally, prepared

in terms of physical units (i.e., Quantities) as well as monetary units (i.e., values...) Materials budget, cash

budget. Etc are examples of short-term budgets. They are useful to lower level of management for control

purpose.

Current budgets.

34

Current budgets are a budget, which is established for use over a short period of time and is related

to current conditions. Thus current budgets are essentially short term budgets adjusted to current (i.e.,

present or prevailing) conditions or circumstances. They are prepared, for a very short period. Say, a

quarter or a month. They relate to current activities of the budgets.

Interim budgets:

Interim budgets are budgets, which are prepared in between two budgets periods. These budgets may get

integrated with the budgets of the following period.

CLASSIFICATION OF BUDGETS ACCORDING TO CONTENT:

Budget may be classified into budgets in physical terms and into budgets in monetary terms.

A) Budgets in physical terms:

Budgets in physical terms are budgeted that budget in terms of quantities only. They do not include

corresponding rupee value. Long –term budgets are usually in prepared in physical terms. Examples of

such budgets are production budget, materials budget, etc.

B) Budgets in monetary terms:

Budgets in monetary terms are budgets that budget in terms of quantities as well as their corresponding

rupee value. Sales budget, purchase budget, etc are examples of such budgets. Budgets such as cash budget

capital expenditure budget, etc that may not have physical quantities also from part of budgets in monetary

terms.

CLASSIFCATION OF BUDGETS ACCORDING TO FUNCTION:

Budgets can be classified into:

1. Operating Budgets

2. Financial Budgets

35

3. Master Budget

1. Operating Budgets.

These budgets relate to different activities or operations of a firm. The number of such budgets

depends upon the size and nature of the business, the commonly used operation budgets are:

i) Sales Budgets

ii) Purchase Budget

iii) Raw Materials Budget

iv) Lab our Budget

v) Factory Utilization Budget

vi) Manufacturing Expenses or Works overhead budget

vii) Administrative and Selling Expenses Budget etc.

The operating budget for a film may be constructed in terms of programmers or responsibility areas, and

hence may consist of:

A) Programmed Budget

B) Responsibility Budget

A) Programmed Budget:

It Consists of expected revenues and costs of various products or projects that are termed as the major

programmers of the firm, Such a budget can be prepared for each product line or project showing revenues,

Cost and the relative profitability of the various in locating areas where efforts may be required to reduce

36

COST5 ad increase revenues. They are so useful in determining imbalances and inadequacies in

programmers so at corrective action may be taken in future.

B) Responsibility Budget:

Here the operating of a firm is constructed in terms of responsibility areas. Such a budget shows the plan in

terms of person’s for achieving them. It is used by the management as a control thus used by the

management as a control device to evaluate the performance of executives who are in charge of various

cost centers. Their performance is compared to the targets (Budgets), set for them and proper taken for

adverse results.

Responsibility areas may be classified under three brand categories:

I. Cost / expense center

II. Profit center

III. Investment center

2) Financial budgets

Financial budgets are concerned with cash receipts and payments, working capital, financial position and

results of business. The commonly used financial budgets include Cash budget, Capital budget, and Income

statement budget, Statement of earnings budget, Budgeted balance sheet or position statement.

3) Master budget

The Master budget is the summary budget incorporating its functional budgets. All the operational

and financial budgets are integrated into the Master budget. The budget officer for the benefits of the top-

level management prepares this budget. This budget is used to coordinate the activities of various

functional departments. It is also used an effective control devices.

37

CLASSIFICATION ON THE BASIS OF FLEXIBILITY.

A) Fixed budget

According to ICMA London “a fixed budget is a budget which is designed to remain unchanged

irrespective of the level of activity actually attained”. It is based on a fixed volume of activity and shows

one volume of output and related cost. It is not adjusted according to the actual level of activity attained.

A fixed budget is useful only when the actual level of activity corresponds with the budgeted level

of activity. But this, generally, does not happen; as such a fixed budget is not useful for managerial

purposes.

B) Flexible variable sliding scale or control type budget:

According to ICMA, London “a flexible budget is a budget which is designed to change in

accordance with the level of activity) actually attained”. Thus, a flexible budget changes according to the

change in the level of activity. In other words it provides the budgeted costs at any level of activity.

Business activity cannot be accurately predicted on account of uncertainties of business

environment. A flexible budget contains several estimates for different assume circumstances instead of

just one estimate, it provides for automatic adjustments with changes in the volume of activity. Hence a

situations operating in an unpredictable environment.

38

CHAPTER-IV

BUDGETING AND BUDGETARY SYSTEM

IN

KESORAM CEMENT INDUSTRIES LTD

39

ZERO BASED BUDGETING:

Zero budgeting is the latest technique of budgeting and it has increased use as a material tool. This

technique was first used in America in 1962, by the former president America, Jimmy Carter.

As the name suggests, it is starting from a "scratch”, the normal technique of

Budgeting is to use previous levels as a base for preparing this year's budget. This method carries previous

years inefficiencies to the present year because we taken last year as a guide, and decide "what is to be

done this year when this much was the performance of the last year.

In the zero based budgeting every year is taken as new year and previous year is not as a base, the

budget for this year will have to be justified according to present situation, zero is taken as base and likely

future activities are decided according to present situations. In zero based budgeting a manager is to justify

why he wants to spend. The performance of spending on various activities will depend upon their

justification and priority for spending will have to be that an activity is essential and the amounts asked for

are really reasonable taking into account the volume of activity.

BUDGET AND BUDGETARY SYSTEM IN KESORAM CEMENT

INDUSTRIES LIMITED, BASANTH NAGAR, KARIMNAGAR

The budgeting process is used in the performance budgeting for the construction of phase which

includes pre commissioning activities. Besides meeting the essential requirements of managerial control the

budgeting exercise also covers the long term capital budgeting, which is presented in the form of annual

plan.

40

OBJECTIVES OF THE BUDGETARY SYSTEM:

To prepare annual budgets in such a manner those managers at various levels in organization carry

out periodical exercise in respect of each contact or responsible centre for physical planning and matching

resources broke up into monthly targets or cash flows.

To introduce and operate responsible for achievement of specified targets with the recourses

allocated for the purpose.

To bring about effective co-ordinate of all activities of the organization and

To gear up service divisions to meet effectively the requirements of project.

BUDGET PERIOD AND PHASING:

The budget period or annual begets should with the financial year. In October every year the budget

should drawn up for the ensuring the financial year in the form of Budget estimates financial year in the

form of Revised Estimates [R.E]...In addition the budgets are to be reviewed on monthly basis by project

review teams, in the light of actual expenditure and projections in the budget period. Budget should

indicate monthly phasing of expenditure and targets for the first and quarterly phasing for the second half

of the year. At the time of review of the budget estimates to frame revised estimates the quarterly phasing

should be broken up into monthly phasing.

While drawing up the actual budget in October every year, the long term capital budget for ongoing and

new schemes should be formulated as apart of exercise as preparation of annual plan. The long term capital

budget should indicate for a period of six years following the budget period of six years following the

41

budget period of six years following the budget period wise annual phasing of the capital expenditure and

physical schedules recourse based network.

BUDGET HEADS:

For uniform accounting, it is essential that costs are collected for each of the factory though this may

involve splitting up of payments against contracts which embrace more than one system. Allocation of the

cost as system wise affords a sound basis for cost accounting, inter-firm comparisons and provides valuable

inputs to the data bank. Budget provisions are related to project estimates and monitoring of actual

expenditure where as control variables for part control and instrumentation system. Factory piping which

includes pipelines, for ash water mains, compressed air system and civil works piping.

Auxiliary pumps for water treatment plant and civil works system. If there are, any contracts not

covered in the budget heads provision for such contracts should be shown against the appropriate system

by head by adding code number.

TYPES OF BUDGETS IN KESORAM CEMENT INDUSTRIES LIMITED:

According to the nature expenditure budget are classified under:

Direct capital outlay on works

Technical consultancy

incidental construction during construction

Employee cost

Other establishment expenses:

Training and recruitment

Preliminary expenses

42

misc.brought-out assets

cash budget

Township budget

BRIEF EXPLANATION TO THE NATURE OF EXPENDITURE INCLUDED IN EACH BUDGET

IS INDICATED BELOW:

Incidental expenditure during construction personal payment:

These comprises of salary,wages,allowance,contribution of PF and other funds and other expenses

such as LIC,medical reimbursement, canteen subsidy etc. any provision of areas of salary D.A.

Office and other expenses:

Expenses incidental to construction and capital works not traceable directly to incidental expenditure,

during contribution equipments, vehicle running expense, office rent.LC and cost of drawings, travelling

expenses, printing and stationary, communication expenses, advertisement for tenders etc. are major items

in the category.

Training recruitment & other deferred revenue expenditure:

The first part of the budget consists of expenses for training executives, and non executive trainees, rent

for training halls and expenses for management development courses. The second part consists of expenses

for recruitment such as advertisement for recruitment, interview expenses, T.A. candidate etc. the third part

combines preliminary expenses including registration fees and research ad development expenses.

Miscellaneous bought out passes:

Vehicles, furniture and fixtures equipments, hospital and medical equipment. Miscellaneous assesses

township figure in the budget.

43

REVIEW OF PROJECT BUDGET:

Monthly review:

At monthly intervals the budget should be reviewed by project review committee [PRC]. Project budget

should report actual expenditure against budget heads. Work heads and corporate budget by the 7th of

month following the report month. The monthly review should be examined by project review

team[PRC],who should record variations for any variations and proposed for expending works in the

minutes of the meetings reasons for any variations in the case of budget heads exceeding 10% of the budget

estimates revised estimates or which ever is Rs.5 lakhs should be analyzed and report upon.

Quarterly review:

PRT should conduct a quarterly budgets review with a view to projecting anticipated expenditure during

the year against approved budget estimates/revised estimates. As time is essence of such review, only a

quick review of anticipated expenditure for individual budget heads involving provisions exceeding Rs.50

lakhs in each case should be made and reported in minutes to PRT. For this purpose, project budget should

furnish all the relevant data to project manager [project] and planning and system by the 10th, of the month

following the quarter project budget committee should review the actual expenditure and assess anticipated

expenditure contract co-ordination/engineers in charge. The assessments of anticipated expenditure should

be furnished by the project budget committee to General Manager [project] by the 30 th of the month

following the quarter under review.

BUDGET OF SERVICE DIVISION CORPORATE BUDGETS:

A review of budgets of service and corporate divisions should be conducted at quarterly intervals by

corporate budget committee[CS'C].For this purpose corporate accounts should report actual expenditure up

to the need of the quarter by the 10th of the month following quarter to corporate budget and budget-

coordination of the remaining period of the year should be sent to the corporate budget should put up a

consolidated report division wise and project wise to corporate budget committee[CBC] by the 15th of the

may, August, November and February every year.

44

OBJECTIVES OF THE CURRENT BUDGETARY CONTROL SYSTEM IN

KESORAM CEMENT INDUSTRIES LIMITED, BASANTH NAGAR :

The current budgetary control system-operating phase has been compiled to achieve the following

objectives.

To control actual performance with reference to standards/norms adapted in the budget

ascertain the deviations analyze and establish the reasons.

To identify constraints in generation and timely action for estimation constraints.

To monitor the generation of internal recourses so as to ensure the availability of adequate

funds.

To prepare the revenue budget so as to forecasting the periodical profitability of the

organization.

To develop standards/norms of performance in the various areas of operation and

maintenance based on the experience.

To ensure effective coordinate planning of all activities so that all the inputs and services

necessary for achieving the physical targets are available at appropriate time.

To create cost consciousness among the managers responsible for decision making

To provide data regarding operational norms and cost for the purpose of formulating tariff.

To provide data basis for assessment of working capital requirements

To control the working capital particularly book debts spares and other items inventory.

To improve profitability and internal resources generation.

45

SCOPE OF THE PERFORMANCE BUDGET:

The budget for operation and maintenance activities will be called performance budget operation. This

in effect means that all financial targets in the budget will be based on performance targets in physical

terms.

The current budgetary control system operation pays envisages generation and transmission line

projects as independents investment centres. It becomes applicable to a project in the year in which it plans

to commercialize its first generation unit. How ever, the budget infer expenses from the date of

synchronization to the date of commercial generation is to be taken case of in the capital budget of the

respective project similarly in the case of transmission line projects the system becomes applicable from

the year in which it plans to commissions its first line along with substation or the date commercial

generation of the first unit of generative project with which this line is associated, which ever is later. For

subsequent lines, the O&M will be prepared from the case generation of energisation.

The system investigates the preparation of operation and maintenance budget for each of the cost

centers as per the requirements of coasting systems.

The performance budget operation will consists of following budgets along with the supporting

schedules:

1. Budget balance sheet.

2. Budget profit and loss account.

3. Revenue budget.

46

In addition, separate budgets for revenue activities other than operation for research and

development consultancy contracts etc.

The expenses respect of developmental expenditure for improvements additions replacement,

renewals, balancing facilities etc. arc of capital nature and will be budgeted for in the construction budget

of budgetary control system-construction pairs.

To facilitate management control the system also investigates, phasing of these budgets into

monthly targets. The actual performance then will be reasons for variation s will be analyzed and

established for taking corrective remedial actions.

STAGES IN THE FORMULATION OF PERFORMANCE BUDGET:

The system provides for a two stages formulation for performance budget operation the stages are

given below:

Initial proposal:

In the initial proposal the project is required to indicate yearly targets. In the addition to

furnishing basic information like synchronization and commercial generation dates.

Constraints and coal operation at less than the designed specification calorific value of raw material

and limestone, material consumptions. In physical terms for items whose consumption value in Rs.5 lakhs

or more planned shutdown for a maintenance and overhauling and norms for serious operating parameters

provided for designs specifications and in the tariff agreements to the corporate budget committee.

In the initial proposals is planned to be submitted after considering else factors and keeping in view the

perspective plan of the organization, as well as norms for various operating parameters. These targets and

terms are then communicated to all stations and transmissions line offices of the last week of July to be

used for formulating detailed budget in the final proposal.

47

Final proposal:

Budgeted balance sheet. Budgeted profit and loss account and budgets in the form of cash budget

along with the final proposal will consist of detailed supporting schedules for each of the investment

centre/cost centre. This final proposal needs to be submitted to corporate centre with in three weeks of

receiving approval for initial proposal.

The final proposal, after approval by board, will become the basis of monitoring performance for

cost centers and investment centers.

The frequency and extent review and monitoring will be done is under:

1. The monitoring of actual performance against budgeted target for investment center/profit center

on monthly basis and for cost centers on quarterly for remedial/corrective action.

2. The review of performance budget on quarterly basis to assess the anticipated profitability.

The first step in the preparation of performance budget, O&M is formulation of maintenance and

overhauling schedules for boiler and TO with generation, then considering the grid demand, the availability

or inputs and factory problems, if any the utilization of capacity will be worked out on month-month basis

for the budget period the gross generation targets can be worked and accordingly.

NET GENERATION:

The sales value will be determined from quantum of net generation [i.e., grass generation aux.

consumption].

AUXILLARY CONSUMPTION/CONSUMPTION BY UTILITIES:

48

The cement consumption by each of the cost centers for individual unit auxiliaries, station

auxiliaries as well as transformer losses are to be estimated separately based on designed specification and

added in order to work out total auxiliary consumption rather than fixing overall percentage similarly

consumption by utilities will also need to be indicated by concerned cost centers like township and

construction department this will be valued at cost net generation to arrive at the sales values for owns

consumption.

CHEMICAL CONSUMPTION :

The chemicals are used by many cost centers by many cost centers for treatment of water. The

consumption of chemicals will be co-related with volume of water certain norms will have to be developed

for different type of chemicals and different type of treatments.

Based on these norms each of the cost centers will indicate consumptions of chemicals in

quantitative as well as financial terms the most centre wise requirement will be consolidated to arrive at

total chemicals consumption to be charged to profit and loss account.

EMPLOYEE COST:

The basis of employee cost will be the approved manpower budget effective of respective years of

budget period. The estimation of employee cost is to be done for each grade considering mid-point as the

scale as basis pay and after reading various allowances like "D.A., H.R.A., C.C.A" project allowance etc.

admissible in respective grades. This is to be worked 49 out or each of the budget periods based on existing

strength (at the time of estimation) in each grade and additions during each quarter (taking 70% satisfaction

for additions).

The provisions of LTC medical reimbursement, PF and other welfare expenses in previous years

are taken into account policies changes, if any the details of welfare expenses like liveries and uniforms,

safety expenses, accident compensation, games & sports, canteen subsidy etc. are to list out as per chart of

account the provisions for incentive, bonus and payments of one time nature are to be shown separately

based on total employee cost for executives, supervisors and non-supervisors and total man power in these

categories ,separates of cost per employee will be worked out for each of theses categories as under.

1. Salaries and allowance

49

2. Contribution of PF and other funds

3. Welfare expenses

The cost centre of employee cost will be worked out based on these rates separately for theses

executives, supervisors and non-supervisors. This will again be consolidated separately for operations,

maintenance and common [service] function. The employee cost of common functions will be appropriated

between construction and O&M budgets in ratio of capital expenditure and sales during respective years.

REPAIRS & MAINTAINENCE:

In line, with costing system following three activities can represent major classification of repairs

and maintenance.

1. Major overhaul

2. Preventive maintenance

3. Breakdown maintenance

Normally, budgeting will be done for the former two; under each activity separate estimates will be

prepared for consumption of materials and maintenance jobs. This estimation will be done at ach of sub

cost centre wise details are required to be mentioned.

The consumption material for repairs and maintenance will be classified into spares, lubricant loose

tools and plants, consumables and others. The cost centre totals separately for three activities will be added

to arrive at summary of material consumption and maintenance jobs, which will be reflected in the profile

& loss account.

The material consumption, especially of spares, can be estimated based on the expected life of

various components/spares in the installed equipment the frequency of breakdowns in the past and the

50

requirement for preventive maintenance and major overhauls. The actual life of components may be

different from that indicated in the manufacturer's specification. Therefore, it is very difficult to estimate

requirements of spares. But this estimation will become gradually accurate as more experience is gained.

For new stations it will be advisable to collect such information from old stations that have gained

experience in this field.

Normally, maintenance of equipment through contractors should be avoided. But in certain areas, if

the expertise and in house capability or sufficient man power is not available, maintenance jobs can be got

done through contractors. Such contracts will need to be listed out separately .If owner supply items are

covered in such contracts the cost of theses items will be included in the material cost.

FACTORY & GENERAL OVERHEADS:

All the items of an expenditures under this head will be estimated based on past trend with due

adjustment for policy changes. The estimates will be given by cost centre needs for items identified with

respective cost centers. The total administrative cost of service cost centers will be allocated between

construction and O&M in the ratio of capital expenditure and sales during respective years.

Depreciation:

This is to be charged as per ES act from the year following the year in which assets have been

capitalized value and, rates of depreciation furnished by the site finance and account for different

categories of assets. Cost centre-wise depreciation will be added to arrive at total deprecation for the

investment centre.

Interest on fixed capital:

As per existing accounting policy, the interest is to be charged to profit & loss account based on

the loan content in the capitalized assets restricted to total accrued interests on actual loans.

For budgeting purposes, interest will be worked on equated loan content or equated loan which

ever is less.

51

CHAPTER-V

ANALYSIS AND INTERPRETATION

52

Kesoram Industries Limited Revenue Budget (2008-09)Table-I

S.no Particulars Budget

Estimated

Amount(Rs.

Crores)

Actual

Amount(Rs.

Crores)

Variance

Sales

1 Fixed and recovery 689 599 90

2 Variable cost recovery 745 652 93

3 Fuel price adjustment recovery 784 823 -39

4 Own consumption 116 128 -12

5 Total of (1…4) 2334 2202 132

6 Average intensives 98 91 7

7 Other income 51 43 8

Grand total(5+6+7) 2483 2336 147

Interpretation:

The data pertaining to the generation and consumption of cement at kesoram Industries Limited

have been obtained from the year 2008-09 and presented in Table-1.The aspect included are total

generation of cement in (cores Rs) and utilization for auxiliary consumption, raw material consumption and

line store respectively.

53

During the year 2008-09 the sales, fixed cost, variable cost, fuel price, consumption was decreased.

Sales decreased by 132 crores to the estimated budget.

During the year 2008-09 the average intensives are decreased by 7 crores., there income also

decreased by 8 crores respectively.

Finally, with regard to the result in revenue budget of kesoram cement industries limited, totally

decreased by 147 crores in the year 2008-09 respectively.

Kesoram Industries Limited Operational expenditure budget for the year 2008-09Table-II


Estimated

Amount(Rs.

Crores)

Actual

Amount(Rs.

Crores)

Variance

Variable cost

1 Raw material 400 423 23

2 Lime stone 430 450 20

3 Total of (1,2) 830 873 43

Operative

maintained

cost

4 Chemicals and

water

120 140 20

5 Repairs &

maintenance

240 275 35

6 Employee cost 290 335 45

7 Stationary &

general

expenses

55 70 15

8 Rebate 10 12 2

9 Share of 8 10 2

54

operating

expenses

10 Total of(4..9) 723 842 119

Finance

charges

11 Deprecation 38 11 -27

12 Interest on

fixed capital

18 20 2

13 Totalof-3 56 31 -25

Gland total

(3+10+13)

1609 1746 137

Interpretation: Observed from the above table that the "Operational Expenditure Budget" of kesoram cement

industries Limited in the year 2008-09.

In the year 2008-09 variable cost components, Raw material consumption 23 crores increased

and the lime stone consumption 20 crores also increased.

In operating & maintain aces cost components, chemicals & water, repair & maintenance,

employee cost, stationary & general expenses rebate and share of other expenses in all are fluctuating

expenses of the year 2008-09.how ever the total operating maintenance costs are 119 crores increasing

respectively.

In finance charges depreciation and interest on fixed capital, has been included, the total finance

Charges recording decreasing 25 crores in the year 2008-09 respectively.

55

Kesoram Industries Limited Revenue Budget (2009-10)Table-I


Estimated

Amount(Rs.

Crores)

Actual Amount(Rs.

Crores)

variance

Sales

1 Fixed and

recovery

689 617 72

2 Variable cost

recovery

829 735 94

3 Fuel price

adjustment

recovery

815 856 -41

4 Own

consumption

110 132 -22

5 Total of

(1…4)

2443 2340 103

6 Average

intensives

93 86 7


8 Grand

total(5+6+7)

2585 2464 121

Interpretation:

56

The data pertaining to the generation and consumption of cement at kesoram Industries Limited have

been obtained from the year 2009-10 and presented in Table-1.The aspect included are total generation

of cement in (cores Rs) and utilization for auxiliary consumption, raw material consumption and line store

respectively.


Sales consumption is deceased by 103 crores respectively.

During the year 2009-10 the average intensives are decreased by 7 crores and there income also

decreased 11 crores respectively.



Kesoram Industries Limited Operational expenditure budget for the year 2009-10Table-II


Estimated

Amount(Rs.

Crores)

Actual

Amount(Rs.

Crores)

variance

Variable cost


2 Lime stone 420 465 45

3 Total of(1,2) 839 914 75

Operative maintained

cost

4 Chemicals and water 121 148 27

5 Repairs & maintenance 232 289 57


57

7 Stationary & general

expenses

59 77 18

8 Rebate 11 13 2

9 Share of operating

expenses

8 10 2

10 Total of(4..9) 745 885 140

Finance charges


12 Interest on fixed capital 18 20 2

13 Total of(11,12) 56 34 -22

Grand total

(3+10+13)

1640 1833 193





In operating & maintain aces cost components, chemicals & water, repair &

maintainance,employee cost, stationary & general expenses rebate and share of other expenses in all are

fluctuating expenses of the year 2009-10.how ever the total operating maintenance costs are 140crores

increasing respectively.

In finance charges depreciation and interest on fixed capital, has been included, the total

finance charges decreasing by 22 crores in the year 2009-10 respectively.

58

Kesoram Industries Limited Revenue Budget (2010-11) Table-I

s.no Particulars Budget

Estimated

Amount(Rs.

Crores)

Actual

Amount(Rs.

Crores)

Variance

Sales

1 Fixed and

recovery

721 611 110

2 Variable cost

recovery

815 729 86

3 Fuel price

adjustment

recovery

810 823 -13

4 Own

consumption

121 131 -10

5 Total of (1…4) 2467 2294 173

6 Average

intensive

97 92 5


8 Grand

total(5+6+7)

2617 2434 183

Interpretation:



59




Sales consumption is decreased by 173 crores respectively.

During the year 2010-11 the average intensives are decreased by 5 crores and there income also




kesoram industries limited operational expenditure budget for the year 2010-11Table-II


Estimated

Amount(Rs.

Crores)

Actual

Amount(Rs.

Crores)

Variance

Variable cost


2 Lime stone 442 465 23

3 Total o(1,2) 860 910 50

Operative

maintained cost

4 Chemicals and

water

128 150 22

5 Repairs &

maintenance

265 296 31


60

7 Stationary &

general expenses

63 80 17

8 Rebate 11 13 2

9 Share of

operating

expenses

7 10 3

10 Total of(4…9) 790 897 107

Finance charges


12 Interest on fixed

capital

17 19 2

13 Total of(11,12) 58 34 -24

Grand total

(3+10+13)

1708 1841 133





In operating & maintain aces cost components, chemicals & water, repair & maintenance,

employee cost, stationary & general expenses rebate and share of other expenses in all are fluctuating

expenses of the year 2010-11.how ever the total operating maintenance costs are increasing by 107

crores respectively.


finance charges recording decreasing by 24 crores in the year 2010-11 respectively.

61

Finally with regard to the operational expenditure budget of kesoram cement industries limited

the total profit has increased by 133 crores during the year 2010-11.

The overall budget results of kesoram cement industry is industries limited is earning more profits.

Kesoram cement industry Revenue Budget (2011-12)Table-I


Estimated

Amount(Rs.

Crores)

Actual

Amount(Rs.

Crores)

Variance

Sales

1 Fixed and

recovery

724 618 106

2 Variable cost

recovery

840 740 100

3 Fuel price

adjustment

recovery

820 863 -43

4 Own consumption 132 148 -16

5 Total of (1…4) 2516 2369 147

6 Average

intensives

102 98 4


8 Grand

total(5+6+7)

2674 2516 158

Interpretation:



62




Sales consumption is decreased by 147 crores respectively.

During the year 2011-12 the average intensives are decreased by 4 crores and, their income also



decreased by 158 crores in the year 2011-12 respectively

Table showing operating expenditure of for the year 2011-2012Table-II

S.no

Particulars Budget

Estimated amount

(Rs. Crores)

Actual amount

(RS. Crores)

Variance

Variable cost


2 Lime stone 450 470 20

3 Total of (1,2) 870 920 50

Operative maintained cost

4 Chemicals and water 130 150 20

5 Repairs & maintenance 280 300 20


7 Stationary & general expenses 65 80 15

8 Rebate 11 13 2

9 Share of operating expenses 8 10 2

10 Total of(4...9) 814 903 89

Finance charges


12 Interest on fixed capital 18 20 2

63

13 Total of(11,12) 60 35 -25

Grand total (3+10+13) 1744 1858 114

Interpretation:

Observed from the above table that the "Operational Expenditure Budget" of kesoram cement




In operating & maintainaces cost components, chemicals & water, repair &

maintainance,employee cost, stationary & general expenses rebate and share of other expenses in all are

fluctuating expenses of the year 2011-12.how ever the total operating maintenance costs are 89 crores

increasing respectively.


finance charges recording decreasing by 25 crores in the year 2011-12 respectively

finally with regard to the operational expenditure budget of kesoram cement industries limited the total

profit has increased by 114 crores during the year 2011-12.

The overall budget results of kesoram cement industry is industries limited is earning more

profits.

64

CHAPTER-VI

CHARTS

65

SALES

Table showing total sales of Kesoram cement industry

2008-09 2009-10 2010-11 2011-12

BE 2334 2443 2467 2516

ACT 2202 2340 2294 2369

Figure showing on sale of kesoram cement industry

Interpretation

In the year 2008-09 the actual amount is less compared to budgeted amount as the budget is accurate.

In the 2008-09 it shows a slight change between budgeted amount and actual. In the year 2011-12 budgeted

amount is more compared to actual. It shows that the quantity is more comparing to market. Selling of

cement product less than the estimates.

66

AVERAGE INTENSIVES

Table shown on average intensives of kesoram cement industry

2008-09 2009-10 2010-11 2011-12

BE 98 93 97 102

ACT 91 86 92 98

Figure showing on Average Intensicves of kesoram cement industry

Interpretation

In the year 2008-09 the actual amount is less compared to budgeted amount as the budget is accurate. In the

2008-09 it shows a slight change between budgeted amount and actual. In the year 2011-12 budgeted



67

OTHER INCOME

Table shown on other income of kesoram cement industry

2008-09 2009-10 2010-11 2011-12

BE 51 49 53 56

ACT 43 38 48 49

Figure showing on other income of kesoram cement industry

Interpretation

In the year 2008-09 the actual amount is less compared to budgeted amount as the budget is accurate. In the

2008-09 it shows a slight change between budgeted amount and actual. In the year 2011-12 budgeted



68

VARIABLE COST

Table showing on variable cost of kesoram cement industry

2008-09 2009-10 2010-11 2011-12

BE 830 839 860 870

ACT 873 914 910 920

Figure showing on variable cost of kesoram cement industry

Interpretation

FORM above table it can be under that the estimated amount and actual amount of kesoram cement

was recorded at raw materiel 830 during the year 2008-2009 it is increased to actual raw material 873 in the

year 2008-2009. It shows that there is an increased in budget to the actual. The highest amount in budget

was recorded in year 2011-2012..

69

OPERATIVE MAINTAINED COST

Table showing on operative maintained cost of kesoram cement industry

2008-09 2009-10 2010-11 2011-12

BE 723 745 790 814

ACT 842 885 897 903

Figure showing on operative maintained cost of kesoram cement industry

Interpretation:

1. Form the above table it can be understood that the budget of kesoram cement was recorded the

estimated value 723 during the year 2008-2009 and it is decreased to 842 during the year 2008-2009.

2. It shows that there is on decreased in the budgetary to the actual 2011-12.

3. The lowest investment in budgetary was recorded in year 2011-12.

70

FINANCE CHARGES

Table showing on finance charges of kesoram cement industry

2008-09 2009-10 2010-11 2011-12

BE 56 56 58 60

ACT 31 34 34 35

Figure showing on finance charges of kesoram cement industry

Interpretation:

1. Form the above table it can be understood that the budgetary of kesoram cement was recorded at

56 value of estimation during the year 2008-2009.and it decreased to 31 of actual value in during year

2008-2009.

2. It shows that there is increase in the budgetary the lower value in the 2008-2009.

71

3. The lowest investment in budgetary was recorded in year 2011-2012.

CHAPTER - VII

ANNEXURES

72

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 ST MARCH, 2012:

Cash flow from operating

activities

PARTICULARS RS: RS:

Net profit before tax 3,41,78,32,892 80, 92, 92132

Adjustments for:

Depreciation 58, 30, 64,022 51, 57, 16,762

Loss/profit on food

assets sold/disable

5, 45, 85,229 5, 76, 15,772

Loss on sale of long

term investments

3, 58,952 -----

Income from

long term

investment(other

trader)

4,91,46,881 2,61,37,771

Interest paid/payable

on loans etc

33, 50, 30,376 32, 75, 37,771

Interest receivable

on loans

2, 50, 55,563 9, 05, 21,426

Provision for doubtful

Debts/deposits in

add

3,82,15,119 --------

Provision for doubtful

Debts/deposits (net) ------------------ 93, 92,067

73

Debt/advance/

deposits written off

5, 34, 50,070 55, 44,394

Long-term

investment written

off

----------- 7,700

Unrealized loss/gain on

Foreign currency

fluctuation

2, 95, 96,073 19, 16,075

Provision for diminution

in

Value of investment --------------- 1, 10, 09232

Operating profit before

working capital changes:

Adjustment for:

Inventories (1,21,69,75,334) (24,94,24,615)

Trade and other

receivable

(50, 17, 40, 397) 2, 92, 62,288

Trade payables 65, 61, 02,594 (20,01,35,318)

Cash generated from

operations

Direct taxes/ refund (93, 49, 80,671) (20,01,35,318)

Net cash from

operating activities

1,98,37,48,569 1,10,42,01,672

Interpretation:

Observed from the above table that “cash flow statement “of kesoram cement industries limited in the year

2011-2012. In the year 2011-2012variable net profit before tax, depreciation, loss/profit on food asset

sold/disable, loss on sale of long term investments, interest paid/payable on loans etc have been increased.

74

In operating profit before working capital changes of inventory, trade receivable and trade payables of

the year 2011-2012. However the total operating profits is increasing respectively.

In cash generated from operations the direct taxes/refund has been included, the total cash generated from

operations increase in the year 2011-2012 respectively.

Finally with regard to the cash flow statement of kesoram cement industries limited the total cash flow

has been increased during the year 2011-2012. The overall budget results of kesoram cement is industries

limited is earning more cash flows.

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDING 31 st MARCH 2012

PARTICULARS RS Rs

Schedule Income 2010-2011 2011-2012

Sales 18,17,81,55,294 25,16,45,89,369

Less excise duty 2,04,63,80,752 3,07,41,00,000

Net sales 16,13,17,74,542 22,06,9660,339

Other income 53, 74, 29,621 49, 04, 06,410

16,66,92,64,153 22,58,00,66,749

Expenditure

Finished goods 7,61,14,89,922 9,20,98,35,678

Manufacturing selling 7,40,51,67,576 9,03,43,03,781

Deprecation 59, 52, 33,509 53, 05, 56,255

Rescue of assets 1, 48,449,493 1, 21, 74,437

Schedule 51, 57, 16,762 53, 30, 64,022

Interest 32, 75, 37,771 33,50,30,375

Profit before taxation

Provision for

Current taxation 75, 00, 00,000 34, 00, 00,000

Provision benefit tax 1, 22, 00,000 1,10,00,00

Profit after taxation 45, 70,92,132 2,65,68,32,892

75

Profit available for

appropriation

45,70,92,132 2,65,68,32,892

Appropriation

Proposed dividend 13, 72, 29,954 ------------------

Tax on proposed Dividend 1, 92, 46,501 -------------------

In tend Dividend -------------- 18, 29, 73,272

Tax on in tend

Dividend --------------- 2, 56, 62,001

General resend 5, 00, 00,000 30, 00, 00,000

Balance carried to schedule2 20, 64, 70,455 50, 86, 35,273

25, 06, 15,677 2,14,81,97,619

Earnings per share 9.99% 58.08%

Interpretation:Observed from the above table that the” profit and loss account “of kesoram cement industries limited in

the year 2011-2012 In the year 2011-2012.sales and income increased EXPENDITURE of finished goods,

manufacturing selling, and administration expenses are also increased, deprecation, less transfer from

capital, rescue of assets is decreased.

Profit before taxation increased from Rs.34, 00, 00,000 to 75, 00, 00,000 and profit after taxation also

increased from Rs.45, 70, 92,132 to 2,65,68,32,892 in the year 2010-2011 respectively.

Finally with regard to the profit and loss account of kesoram cement industries Limited the total profit have

been increased the year 2011-2012. The overall budget result of kesoram cement is industries limited is

earning profits.

76

FINDINGS:

There is a huge increase in INCOME of the company in 2011-2012, compared to 2010-2011.

Huge increase in earnings per share in 2011-2012, when compared to 2010-2011.

In the year 2007-08, 2010-11 and 2011-12 represents actual are less than budgeted so less purchases

made in every department. In the year 2008-09and 2009-10 actual is more than budgeted it shows

that greater importance given to purchases.

In the year 2006-07 civil expenses are at a very high range. Accruals are high compared to budget

because of construction of cold storage sector, cement plant and bore wells. In the year 2007-08

actual are less compared to budgeted because as the expenses are less. In the year 2011-12 it

incurred high volume of expenses than the budgeted because it incurred heavy expenses.

In the year 2011-12 budgeted amount is more compared to actual. It shows that the quantity is more

compared to market. Selling of cement products, less than the estimates.

In the year 2011-2012 sales and income increased EXPENDITURE of finished goods,

manufacturing selling, and administration expenses are also increased, deprecation, less transfer

from capital, rescue of assets is decreased.

77

CHAPTER-VIII

SUGGESTIONS & CONCLUSIONS

78

SUGGESTIONS

Planning has become the primary function of management most of the planning relates to

individual situations and individual proposals. Budgets are nothing but expressions largely in financial

terms, budgetary control has, therefore become and essential tool of management for controlling and

maximizing profits.

a. Continuous comparison of actual performance with budgeted performance.

b. The company has to maintain super quick assets in order to maintain sound liquidity.

c. A company has to recollect their own standing amount from the debtors regularly.

d. The company has to maintain funds for long-term investment.

e. The company has to monitory from liability position in regular intervals.

f. The company must be conscious about their working capital position.

g. There is lot of pretension consistence demand the cement industry as a cement producer the

company can able to source, their funds throw more share holders funds.

h. Company is maintaining the inventories a part from current assets for the entire study period. To

show that excessive inventory level are not good for any organization and any company. Since

the company has it concentrate much more on inventory maintain.

79

i. During study period there is negative working capital levels for the company so the company

must maintained enough current assets to keep working capital, figure positively.

CONCLUSIONS

a. Every organization has predetermined set of objectives and goals, but reaching their objectives and

goals by proper planning and executing of these plans economically.

b. The kesoram cement industries Limited objectives of planning and organizing promoting an

integrated development of Cement Company.

c. The corporation machine of kesoram cement industries is to make available and quickly cement in

increasingly small quantities, the company will spear head the process of accelerated development

of cement sector by expeditiously.

d. The organization needs the capable personalities as management makes the plans and implement of

these plans are expressed in terms of budget and budgetary control.

e. The kesoram cement Industries Limited has budget process in two stages. one is the capital

expenditure budget and another is operating maintenance budget, the capital expenditure budget

shows the list of capital projects selected for investment along with their estimated costs, operating

maintenance budgets, the medical budgets are rarely used in the organization like long term

budgets, search & development budget for consultancy.

f. The Kesoram cement industries is to make efficient utilization of its resources and implementation

of sophisticated technology to produce available and quality cement and also creating ambience of

collective working of its employees.

80

\

BIBLIOGRAPHY

1. Prasanna Chandra, Financial Management: Theory and Practice, 7/e, 2008, Tata McGraw-Hill

Education.

2. I.M.Pandey, financial management: Principles and Practice 9/e, 2005, Vikas publishing.

3. R.K Sharma Shashi K Gupta, financial management: Principal and Management, 7/e, 2002, Kalyani

Publishers.

4. Dr.S N Maheshwari: management Accounting and financial control, 6/e, 1996, sultan chand and sons.

5. M.Y.Khan, and P.K Jain: Basic financial management, 3/e, 1982, Tata McGraw-Hill.

6. A. W. Willsmore: business budget and budgetary control, 2/e1949, pitman&sons.

7. Edward J Mock: Financial decision making, 2/e, 1969, International Textbook.

8. Eugene F. Brigham: Financial mangament, 12/e, 2008, cengage learning.

9. 88th annual report of kesoram cement industries limited.

10. detailed project report of kesoram cement industries limited

81

http://www.google.co.in/search?tbo=p&tbm=bks&q=inauthor:%22Prasanna+Chandra%22

WEBSITES:

Web site of a companywww.kesoram.com

Web site for cement industrywww.kesoram

Websiteforcementindustrywww.kesoramcement.com

Websiteofacompanywww.kesocorp.com

NEWS PAPERS:

Economic times

The Hindu

Business Standard

MAGAZINES:

Business Today

Business World

Business India

82

project report onbudgetary control … · web viewa project report on budgetary control system in...

Documents