Professional Documents
Culture Documents
CONTENTS
SL NO 1 2 3 4 5 6 7 8 9 10 11 12 13 PARTICULAR Executive Summary Objective Of the Study Introduction Industrial Profile Company Profile Organization Profile Introduction to Budgetary Control Data Analysis and Interpretation Findings Suggestion Conclusion Bibliography Annexure PAGE NO 1 2 3 4 6 7 38-50 51-61 62 63 64 65 66
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EXECUTIVE SUMMARY
RANNA SUGARS. Is the co-operative company. The project has been undertaken on the topic A STUDY ON BUDGETARY CONTROL at RANNA SUGARS As budgetary control helps to understand goal of the concern whether it may be short or long term goal. As the budget is playing an important role in any organization which helps to compare the actual performance with the budgeted performance .The concept of the Budget and way of adaptability, which creates new challenges to industrial sector for surviving in this current competitive edge. It indicates the progress of the concern by way of its sales or profit, market shares, process of the concern etc.
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Departmental heads.
Discussion with manager of costing. Budgetary control statement.
SECONDARY SOURCE
This type means secondary datas are collected from Office records. Files & manual. Annual Reports.
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INTRODUCTION:
Budgetary control is the important aspect for industry development because budgets provide yard stick against which the actual performance is measured. It always helps to the top management to take the appropriate decision to motivate and directing their personnel towards well set plans and policies of the company. By considering the advantage of the budgetary control the Ranna Sugars also adapted this system. In Ranna Sugars they were maintaining the monthly budget with the help of daily reports. The daily reports must contain the item like production efficiency, sugar cane utilization, man power requirement, consumption of electricity, wages etc. With this the budgetary control manager prepares a monthly profitability statement of a particular month & submitted that one of the appropriate authority like production manager. By this statement or submitted report, they will take correct decision about the organizational activities. A study has been conducted on the BUDGETARY CONTROL which is most probably adopted in the Ranna Sugars organization. Budgetary control i.e. a most powerful tool to the management for performing its function i.e. formulating plans, coordinating activities and controlling operations etc, effectively as well as effectively. Now a day, the number of companies are compete with each other for the survival in the present market. Whether it may be other sugars industries .but no one company can comete without proper planning. So the Cost-Budgetary control may help them to make proper decision in the number of various fields. Budgetary control is applied to a system of management & accounting control by which all operations & output are forecasted as for ahead as possible. And actual results are known that are compared without budget estimates. The budgetary system integrates key managerial functions as it links top managements planning function with the control function performed at all the levels in the managerial hierarchy. A more accurate budget can be developed for those activates where direct relationship exists between inputs & outputs. These input, output are base for developing budgets & exercising control.
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Product Profile:
The main & direct product of the sugarcane is a sugar. The factory has by-products like distillery, arrack, co-generation & ethanol etc.
SUGARCANE
MAIN PRODUCTION
BY PRODUCT
distillery arrack compost power by Co-generation ethanol S1=small S2=small2 Size of bags: 50kg &100kg Packing: plastic & jute bags.
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COMPANY PROFILE:
LOCATION : The RAYATAR SAHAKARI SAKKRE KARKHANE NYIYAMIT RANNA NAGAR TMMAPUR Factory: Timmapur Mudhol, Tq: Mudhol District: Bagalkot ESTABLISHED IN REGESTERED NO WEEKLY HOLIDAY WORKING SHIFT CHAIRMAN VOICE CHAIRMEN M.D OF THE COMPANY BANKERS OF THE COMPANY : : : : : : : : 25/11/1999 DSK/REG/182-83 SUNDAY 4 am to 12 pm, 12 pm to 8 pm, 8 pm to 4 am R.S.Talewad Anant Rao Gorphade S.S.Pujari The Karnataka State Co-operative sugar Factories , Bangalore IDBI Bangalore D.C.C Bank Timmapur, D.C.C.Bank Mudhol DCC Bank Bijapur ARAE OF OPERATION (NATIONALLY) (LOCALLY) AWARD COMPRTATORS WORKERS NO OF SHAREHOLDER PRODUCT BY PRODUCT : : : : : : : : Andra Pradesh, Uttar Prades, Tamilnadu, Maharashtra Bihar Mudhol, Bagalkot,Bilagi, Jamakhandi, Badami PARTHA SARATHI Nirani sugars Prabhulingeshwar sugar Pvt 947 10822 Sugar Two Types Product Molasses Bagasse ,
FINANCIAL INSTITUTION :
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ORGANISATIONAL PROFILE
Chairman Voice chairman Managing Director Board of Directors : : : : Shri. R.S.Talewad Shri, AnantRao Ghorpadhe. Shri, S.S.Pujari Shri, Ashok M Patil. Shri, Uday V Sarwad Shri, K.S.Patil Shri, G.P.Patil Shri, L.S.Chinnanavar. Shri, Ramesh. Tungal Shri, L.S.Talewad. Shri, Rajugouda Patil. Shri, Dayanand Patil. Head of Department: Finance Administration Cane section Production : : : : Shri, R.N.Patil (Chief engineer). Shri, S.K.Kulkarni.
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123.28MT 407989Qtls.
12.50
The 1st regular season starts in the yar of 1999-2000, from 25th NOV 1999 to 28th June 2000 (217 days). The progress achieved during this season is as follows: The estimated project cost of R.S.S.K.N Sugar factory was Rs.47.250res as prepared by the Karnataka State Co-operative sugar Factories , Bangalore. And this report has been appraised by the IFCI, New Delhi.
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A STUDY ON BUDGETARY CONTROL at RANNA SUGARS 10% 30% 60% Member shares Government Term loan from Financial Institutions Total Rs.4,725 corers Rs.14,175 corers Rs.28,350 crores 47,250 crores
Investment
Government 30%
Vision
To become one of the dignified company in the country. To give due importance for the development of society.
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Mission
To employee support and farmers development for the fullest extent. Improving our operation activities.
Quality policy:
The quality policy is to meet & exceed customer satisfaction by Adopting better quality management system practices Setting suitable objectives & targeted of reviewing them periodically for continually improving the effectiveness of the quality management system
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ORGANISATIONAL STRUCTURE
BOARD OF DIRECTORS
MANAGING DIRECTOR
ADMINISTRATION
PURCHASE
SALES
AGRICULTRAL
ACCOUNTS
ENGINEERING MANUFACTURING
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1] ADMINISTRATIVE DEPARTMENT:
Administrative department is classified into five sections share, sales, purchases, store, time office and security.
A) SHARE SECTION:
The share section is one of the important section because more than half of the share capital is collected from the share holders.
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B) TIME OFFICE SECTION: Function1) Distribution of salary according to the workers attendance. 2) Sanctioning of leaves to workers. 3) Maintaining working bell. 4) It maintain present and absent record daily. 5) It reports daily attendance to concerned section. 6) Showing the absent report to the HOD 7) It maintains salary regester book There are 581 workers working in this factory. As this is a new establishment of all working on daily wages. Within a few months the management is going to take workers as permanent at present only on leave in a month is sectioned to the workers. STRUCTURE Time keeper Assistant time keeper genre Bill clerk
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One general shift 8.30am to 5.30pm for both season and off season.
Types of Leaves:
1. Sick leaves: Sick leave provided to employees 15 days Per year 2. Casual leaves: Casual leave provided to employees 12 days Per year 3. Earn leaves: If employee attends 30 days in a month then he is eligible for 3 days Earn leave
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Structure
SECURITY OFFICER
ASSISTANT SECURITY
GATE CLERK
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SECURITY OFFICER
ASSISTANT SECURITY
GATE CLERK
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F) COMPUTER SECTION:
The total number of employees working in this department is 4. This section is to maintain all types of records that are very important for the organization and the following departments are computerized in the factory, Weight bridge department a) Cane accounts department b) Time office department c) Laboratory department d) Stores department e) Sales department f) Purchase department g) General accounts department h) Sales accounts section
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STRUCTURE:
COMPUTER OPERATOR
PEON
Function
1) Designing of the packages required. 2) Programming of the LAN. 3) Maintaining of server.
PURCHASE SECTION:
This section gives identity card only. This section is also send notice to the concerned members on behalf of the factory. They maintain two types of books of accounts viz. It is also a important section in administrative department in performing the activities of purchasing. In this section there are two employees, one is purchase manager and another one is purchase assistant. The purchase manager issues the purchase order from various section of the factory. He estimates the cost purchase and accordingly he go for direct purchases or purchases through purchase committee.
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FUNCTIONS:
Purchasing materials Calling quotation Placing before meeting for decision Passing bill to Account section for payment
STRUCTURE
PURCHASE OFFICER
CLARKS
ATTAINDERS
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3] SALES SECTION This section will take care of all the sales transactions like sale of Sugar, Molasses, Bagasse. Scrap material. STRUCTURE:
SALES OFFICER SENIOR ASSISTANT JUNIOR ASSISTANT ATTAINDER
In the sugar industry sugar is sold according to central govt. guidance & release. Marketing & advertising is not necessary in sugar industry. Any how customer relationship is necessary to convert the stock into cash.
Function
1) Getting order from parties. 2) Arranging for delivery to parties. 3) Maintaining record of sales. 4) Sending report to managing director 5) Stocking planning godown maintainance Sales of the sugar are done in two ways a) free sales b) levy sales
A STUDY ON BUDGETARY CONTROL at RANNA SUGARS Government allows the sugar factory to sale certain percentage of sugar by calling tender is known as free sales.
b) Levy sales:
This means to sell the product to the govt. i.e. to sell the product under the guidance of the govt
5) Account section
Finance is the lifeblood of business one cannot imagin a business without finance department because it is the central point of all business activities. Finance dept. of RSSKN factory plays a very important role, as it is here that decision with to procurement & utilization of funds are taken. Such decision includes the preparation of various budgets, allocation of funds for various activities or division of the firm as well as distribution of profits etc. An account section is also including in the finance dept. it helps in achieving the objectives of the company. Proper management of the fund is necessary for effective management
Structure:
ACCOUNT OFFICER
CANE ACCOUNTANT
GENERAL ACCOUNTANT
CASHER
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CANE MANAGER
CANE OFFICERS
CANE OFFICERS
FIELD ASSISTANT
FIELD ASSISTANT
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IN CANE DEVELOPMENT
CANE DAYS 217 178 159 191 69 90 170 225 189 145 SUGAR RECOVERY DEVELOPMENT PRODUCTION 407989 510015 352938 436300 354028 424670 503083 585700 115321 127000 105687 115850 351953 400151 520288 608549 379020 446699 238681 255400 12.50 11.91 11.41 11.47 10.68 10.88 11.39 11.60 11.65 10.60
YEAR 1999 - 00 2000 - 01 2001 - 02 2002 - 03 2003 - 04 2004 - 05 2005 - 06 2006 - 07 2007 - 08 2008 - 09
DATE 25/11/1999 TO 28/06/2000 19/11/2000 TO 15/05/2001 29/10/2001 TO 05/04/2002 21/10/2002 TO 29/04/2003 05/11/2003 TO 13/01/2004 21/10/2004 TO 18/01/2005 02/11/2005 TO 21/04/2006 28/10/2006 TO 09/06/2007 20/11/2007 TO 26/05/2008 02/10/2008 TO 25/02/2009
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A STUDY ON BUDGETARY CONTROL at RANNA SUGARS 6 )PRODUCTION DEPARTMENT: To utilize the installed capacity of 3500 in proper manner the following personality the duty to manage the Production department.
PRODUCTION DEPARTMENT
LABORATORY INCHARGE
LABORATORY CHEMIST
MANUFACTURING CHEMIST
LABORATORY BOYS
The production department is one of the core parts in every process based industry. In addition, it plays a vital role in the organization for smooth going in every sugar industries; Production department is divided in to two sections. a)Engineering department b)Manufacturing department a) Engineering Department.
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STRUCTURE:
CHIEF ENGINEER
MECHANICAL SECTION
ELECTRICAL SECTION
WORKSHOP
STORE SECTION
CANE WEIGHMENT
BOILER SECTION
POWER GENERATION
CANE PREPARATION
MILLING
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Mechanical section :
This includes all the mechanical process that is right from the cane weighment till milling ( obtaining of sugar juice ) for further processing. This section includes 4 main steps they are.. a. Cane weighment arrangements b. Cane unloading arrangement c. Cane preparation d. Milling
Cane preparation:
After feeding the sugar cane on feeding tables with the help of levelers which avoid overloading of sugar cane is sent to primary cutter, which cut the sugar canes in to small pieces, further fine fibers are obtained from there process by passing them in the fibrizer.
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Milling:
After fibrizering the cane passing the prepared fiber cane through a set of mills carries on milling weighted hot water is also added in the course of crushing for better extraction of juice. After crushing the juice is sent for further process Power generation Process chart of Co-generation
Water treatment
Make up water
Pumping
Stream drum
Turbine
Generator [electricity]
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Stores Section
Various section spare parts are stored in stall system and all the units are computerized and given a code number. Bin card and other system are followed hear. These stores materials are normally required for preventive maintenance during seasons and off seasons for servicing and overalling
Function
1) To make the material requisitions for the purpose of knowing the quantity material. 2) To make purchase order or in simple terms the tender. 3) To make approval memo for verification of materials. 4) The main function of store department is to prepare a bin card. 5) The store department issued material with reference with store requisition. 6) To make classification & codification of materials. 7) Receipt of material. 8) Inspect it with ordered quantity, quality & if any other specifications. 9) Some of the material like chemical is to be sent to laboratory for incepatation & testing. 10) Getting indents from departmental head & issuing it. 11) To make purchase return if the material are rejected. 12) To maintain minimum level of materials. 13) Infringing purchase department when material required
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Structure
STORE KEEPER
CLARKS
ATTAINDERS
CLARKS
ATTAINDERS
Store section is also important section in the administrative department. All types of materials are kept in this section. Which are required for the factory smooth running. The section works day and night. Shift is changing every 8 hours. This section is maintained by the stores keeper. The main work of this section is providing the materials to the required departments. Those stores section maintains some books like : a. Transport. b. Bin card. c. Daily issued. d. Monthly issued. It is also one of the section under Administration department, there are total of 7 employees working in this section.
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STORES ACCOUNT:
After receiving the materials from suppliers quantity will be verified. The details of the materials will be entered in to transport registered and approved memo will be sent to the concerned departments for getting quality approval. They keep bin cards for each different items receipt from the suppliers with details.
DIESEL BANK:
They issue diesel to the party against indents brought by the parties and issued is entered in the daily issue register.
TOOL ROOM:
Tool room is personnel issue the materials to the workers on temporary loan and retainable basis entering in the register.
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LABORATORY: Laboratory plays a significant role in sugar production. The Key activity of laboratory is checking the content of sugar in the sugar cone and fixing the correct shape and size of sugar. The la prepared hourly reports which advise on the addition of other chemicals in the production.
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Structure
Chief chemist
Lab in charge
Lab chemist
Lab boy
Sample boy
Function
1) It takes care of quality of sugar juice. 2) It mixes the chemical as per requirement. 3) It examines the sugar quantity.
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SUGAR:
It means something sweet in form of taste.
FORMULA:
Carbon dioxide + Water = sucrose + oxygen 12CO2 +11H22O11+12O2
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CANE
IMBITION WATER
MILLING
BAGASSE
RAW JUICE
EXHAUST STEAM SULPHURDIOXIDES + LIME CONDENSATE WATER
SULPHURED JUICE
EXHAUST STEAM CONDENSATE WATER
CLEAR JUICE
EXHAUST STEAM VAPOURS JUISE + MUD CONDENSATE WATER
SYRUP
SULPHURDIOXIDE GAS VAPOURS, CONDENSATE WATER EXHAUST STEAM, VAPOURS
MASSCUITE
STEAM OR SUPER HEATED WASH WATER
FINAL MOLASSES
SUGAR Babasabpatilfreepptmba.com
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RAW JUICE: Before sending ra juice to process house it has to be weighted in order to
excise the chemical control and making material balance for efficient control of the process.
JUCE HEATING: In this process the raw juce is heated and is converted to clear juce
the required temperature is 100c to 105c in the boiling house.
SULPHURED JUCE: In this process the raw juce is added with time and sulphur gas
and is mixes temperature 105c to 110c. and the sulphur juce received from in the from milk will be coloured.
CLARIFICATION: In this process through the vacuum filters the mud particles and
the juce filtration takes places.
EVAPORATION: In the process the juce is boiled to make it solid. The solid from of
sugar is than again passed to sulphur tank.
CENTRIFUGATION: In this the mass masscult is cured I,e sugar crystals separated
from the liquor in high speed centrifugal machine of around 1200/RPM
GRADATION: Is the last process in the manufacturing of sugar. It collects the totally
mixed sugar from the centrifugal section through happen and sugar passes from it each elector sugar is lifted to mixer part from the grader part the sugar is separated by grad wise it has grades.
BAGGING: The sugar is packed in 100kg, 50kg,& 25kg bags with latest with a
technology of bagging with the mechanized stitching.
STORAGE: After it is sent to god own for storage through machines Factory has
totally 2 big Godowns with a capacity of 2.5 lakhs each.
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GODOWN SECTION:
Godown section is also one of the important part of the factory. Where the finished sugar is stored. This factory has 15 godowns; there are 2 big godowns its capacity 2 lakhs bags and other 13 godowns capacity 30000 bags.
STRUCTURE:
Godown Keeper
Clerks
Attender
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ASSISTANT ENGINEER
OFFICIAL
NON OFFICIAL
HEAD CLARK
WORKER
WORKER
1) Planning for new project. 2) Water supply to the factory & quarters. 3) Looking over cleanliness of the factory. 4) Making arrangement for the functions. 5) Maintenance of factory building.
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A STUDY ON BUDGETARY CONTROL at RANNA SUGARS 6) Maintenance of roads, which are constructed by factory. 7) Maintaining distillery plant.
INFRASTRUCTURE SECTION
The infrastructure is one of the co-operative sectors in sugar production, which is located in rannaagar, at timmapur village and is 16KM away from Mudhol. It is located near the bank of Ghtaprabha River, so the factory has obtained the premises for lifting Water from this river for factory use. THE INFRASTRUCTURE FACILITIES PROVIDED TO THE EMPLOYEES IN THE FACTORY LIKE: Canteen and mess facility Medical facility Housing facility Safety measures Guest house facility Contingencies Insurance facility Etc;
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A STUDY ON BUDGETARY CONTROL at RANNA SUGARS GENERAL OBJECTIVES OF BUDGETARY CONTROL ARE AS FOLLOWS:
1) Planning:
A budget is a plan of the policy to be pursed during the defined period of timed to attain a given objectives. The budgetary control will force management at all levels to plan in time all the activities to be done during the future periods. A budgeted as a plan of action achieves the following purposes. Action is guided by well thought out plan because a budget is prepared after a careful study and research. The budget serves as a mechanism through which managements objectives and polices are affected. It is bridge through which communication is established. The most profitable course of plan is selected. Budget is a complete formulation of the policy of the undertaking to be pursed for the purpose of attaining a given objectives.
2). Co-Ordination:
The common objectives of the firm may be successfully achieved by the way of budgetary control because it stimulates the co-operation of all concerns with the co-ordinates the various activities.
3) Communication:
It is necessary in an efficient organization that all people be informed about the objectives, polices, programmers and performance. This is made possible through their Participant in the budgeting process. Budgets inform each manager of what others have agreed to do. They also inform managers of the resources available objects and targets. Thus the budgeting system integrates key managerial functions as it links top managements planning function with the function performed at all the levels in the managerial hierarchy. But the efficiency of the budget as a planning and control device depends upon the activity in which it is being used. A more accurate budget can be develop for those activities where direct relationship between inputs and outputs. The basis for developing budgets and exercising control.
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CONCEPT OF BUDGETING:
One of the primary objects of cost accounting is to provide information to business management for planning and control. Budgeting act as a toll of both planning and control. Budgeting is a formal process of financial planning using estimated and accounting data.
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ESSENTIALS OF BUDGET:
It is prepared in advance based on a future plan of action. It relates to a future period and based on objective to be attained. It is a statement expressed in monetary and for physical units prepared for the implementation of policy formulated by the management.
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ADVANTAGES OF BUDGETING:
Budgeting plays an important role in the effective use of resources and achieving overall organizational goals. Budgeting compels and motivates management to make an early and timely study of its problem. budgeting provides a valuable means of controlling income and expenditure of a business as it is a plan for spreading Budgeting provides a too through which managerial polices and goals are periodically evaluated, tested and established as a guidelines for the entire organization. Budgeting help in directing capital and others resources into the most profitable channels. Budgeting coordinates and correlates all business activates. The use of budgeting in an organization develops an attitude of Cost Consciousness, stimulates the effective use of resources, and creates an environment of profit-mindedness throughout the organization. The uppermost point is that budgets provide a discipline that brings planning fore front as a key managerial responsibility. Budgeting encourage productive competition. to the
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B. According to flexibility
Fixed budget: A budget prepared on the basis of fixed or a standard level of activity. It does not change with respect to level of activity. Flexible budget: A budget is prepared depend upon the level of the Activity.
Forecasting sales:
The three main factors that should be considered by management in forecasting sales. 1) Information concerning past performance. 2) Information about present condition with in the individual company & in each sales territory. 3) Data concerning the industry & generally business.
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2) Production budget:
A production budget is stated in physical units. Essentially the production budget is the sales budget adjusted for inventory changes as follows. Units produced= Budgeted Sales+ (Desired Closing Inventory of Finished Goods-Beginning Inventory of Finished Goods.)
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i.
Inventory budget:
An inventory budget can be prepared to find out the values of direct materials & finished
goods inventory.
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C. BUDGET MANUAL:
The budget manual is a written document, which specifies the objective of the budgeting organization & procedures.
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F. BUDGETED PROCEDURE:
The procedure followed while designing and operating a budgetary control system depends upon the nature of the business. THE PROCEDURE AS FOLLOWS:
2. Making of forecasts:
Forecast is nothing but estimation of probabilities for a given period. Forecasts are made regarding sales, production cost and financial requirements of the business.
4. Preparation of budgets:
After finalization of forecasts the budgets will be prepared.
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Tips:
1. Don't try to fit your expenses into somebody else's budget categories. Tailor the categories to fit your own situation. 2. Make your categories detailed enough to provide useful information, but not so detailed that you become bogged down in trivial details. 3. Think of your budget as a tool to help you get out of debt and save money, not as a financial diet.
To get the knowledge about budgetary performance through trend analysis and over all performance of Rona Sugars through primary and secondary data.
So studying the various practices carried out in finance will be helpful to me in my MBA course.
LIMITATIONS:
Considering the scope mentioned above, some or few limitations are arising i.e. the Rona Sugars is big organization. This finance & accounts is also big departments. But due to shortage of training period, I am concentrating only on the budgetary control of costing departments. Time constraints. Only Three years data is used for the analysis of the study
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RECEIPTS
2006Sl.No Particular 2007 At Rs. In Lakhs 9487.50 1053.50 7.55 14.40 Actual Income 1985.40 57.37 7550.46 1285.63 2007-2008 At Rs. In Lakhs 7187.50 1046.36 7.55 2.00 2008Actual Income 7189.50 679.13 360.50 1003.17 2009 At Rs. In Lakhs 6440.00 909.36 3.60 3.02 Actual Income 1593.86 2672.92 1371.05 5619.10
1 2 3 4
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Sl.N o 1 2 3 4 5 6 7 8 9 10 11
Particulars Sugarcane purchased Reconstruction expenses Vehicles management Interest on loan Salary to staff Auditors fees Rent and taxes Insurance Repairs and maintenance of machinery Telegram and telephone charges Bank commission
2006-07 At Rs. In Lakhs 7250.00 2.00 8.00 1800.00 264.00 2.00 8.00 10.00 200.00 5.00 4.00
Actual exp's At Rs.in Lakhs 6162.81 79.28 114275.50 756040.98 48219.82 1874.94 18723.36 51.71 191679.06 2655.46 2960.78
2007-08 At Rs. In Lakhs 5230.00 3.00 8.00 1800.00 264.00 2.50 20.00 10.00 300.00 4.00 4.00
Actual Exp's At Rs.in Lakhs 5230.00 3.00 80.00 18000.00 18000.00 2.50 200.00 100.00 3000.00 40.00 -------
2008-09 At Rs. In Lakhs 4400.00 3.00 12.00 1600.00 338.00 3.00 20.00 10.00 300.00 3.00 1.50
Actual Exp's At Rs. In Lakhs 5616.18 15.13 108,00 8268.57 70.49 2.79 15.98 0.17 235.84 2.95 0.74
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RECEIPTS
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 At Rs. In Lakhs 2005-2006 At Rs. In Lakhs 2006-2007 At Rs.in Lakhs 2007-2008 At Rs. In Lakhs 2008-2009
RUPEES
YEAR
PAYMENTS
2005-2006 Amt Rs. In 2006-2007 Am Rs. In Lakhs 7250.00 2.00 8.00 1800.00 264.00 2.00 8.00 10.00 300.00 5.00 4.00 1904.00 11557.50 2007-2008 Am Rs.IN Lakhs 5230.00 3.00 8.0 1800.00 264.00 2.50 20.00 10.00 300.00 4.00 4.00 442.50 155.41 8243.41 2008-2009 Amt Rs. in Lakhs 4400.00 3.00 12.00 1600.00 338.00 3.0 20.00 10.00 300.00 3.0 1.50 418.50 246.98 7355.98
Sl.No
1 2 3 4 5 6 7 8 9 10 11 12 13
Particulars
Sugarcane purchased Reconstruction expenses Vehicles management Interest on loan Salary to staff Auditors fees Rent and taxes Insurance Repairs and maintenance of machinery Telegram and telephone charges Bank commission Other expenses Net Profit carry forward to C/B TOTAL
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PAYMENTS
8000 7000 6000 5000 4000 3000 2000 1000 0 Amt Rs. In Lakhs 2005-2006 Am Rs. In Lakhs Am Rs.IN Lakhs Amt Rs. in Lakhs 2008-2009
Sugarcane purchased Reconstruction expenses Vehicles management Interest on loan Salary to staff Auditors fees Rent and taxes Insurance Repairs and maintenance of machinery Telegram and telephone charges
RUPEES
A) 2006-07 Receipts.
2005-2006 Sl.No Particulars At Rs. In Lakhs 1 Sugar Sales 6160.00 2006-2007 At Rs. in Lakhs 9487.50 Increase In % 54.00%
Bank commission
Decrease In%
Other expenses
Sale of By Products
877.21
1053.50
20.09%
10.00
7.55
------
24.50%
3.00
1.44
------
52.00%
Loss
1370.89
1007.51
------
26.50%
TOTAL
8421.10
11575.10
37.45%
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INTREPRETATION Sugar sales increased by 54.00% in the year 2006-2007 compared to 2005-2006. Sales of by product decreased by 20.09% in the year 2006-2007 compared to 2005-2006 Interest on loans decreased by 52.00% in the year 2007-2008 compared to 2006-2007
PAYMENTS:-2006-2007
2005-2006 At Rs.in 2006-2007 At in Rs.Lakhs 7250.00 2.00 80.00 1800.00 264.00 2.00 8.00 10.00 300.00 5.00 4.00 1904.50 ------11557.50 Increase In % 47.95% -----33.33% 28.57% 5.60% -----33.00% --------------350% 4.01% ----37.24% Decrease In % -----80.20% ---------------33.33% ----------------87.50% --------------------
Sl.No
1 2 3 4 5 6 7 8 9 10 11 12 13
Particulars
Sugarcane purchased Reconstruction expenses Vehicles management Interest on loan Salary to staff Auditors fees Rent and taxes Insurance Repairs and maintenance of machinery Telegram and telephone charges Bank commission Other expenses Net Profit carry forward to C/B TOTAL
Lakhs 4900.00 10.10 6.00 1400.00 250.00 3.00 6.00 10.00 40.00 1.00 1831.00 ------8421.10
INTREPRETATION Sugarcane purchased increased by 47.95% in the year 2006-2007 compared to 2005-2006
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A STUDY ON BUDGETARY CONTROL at RANNA SUGARS Reconstruction expenses decreased by 80.20% in the year 2006-2007 compared to 20052006. Auditor fees decreased by 33.33% in the year 2006-2007 compared to 2005-2006. Bank commission increased by 350% in the year 2006-2007 compared to 2005-2006.
B)2007-2008 Receipts
2006-2007 At in Rs. In Sl.No 1 2 3 4 5 Sugar Sales Sale of By Products Dividend Interest On Loans Loss TOTAL Particulars Lakhs 9487.50 1053.50 7.55 1.44 1007.51 11557.50 2007-2008 At Rs. In Lakhs 7187.0 1046.36 7.55 2.00 -----8243.41 Increase % ---------------------39.8% -----------Decrease % 24.24% 0.68% ---------------28.67%
INTREPRETATION Sugar sales decreased by 32% in the year 2007-2008 compared to 2006-2007 Sales of by product decreased by 0.68% in the year 2007-2008 compared to 2006-2007 Interest on loans increased by 28% in the year 2007-2008 compared to 2006-2007
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PAYMENT:2007-2008
2006-2007 At Rs. In 2007-2008 At Rs. In Lakhs 5230.00 3.00 8.00 1800.00 264.00 2.50 20.00 10.00 300.00 4.00 4.00 442.50 155.41 8243.41 Increase % -----50% ----------------25% 60% -------------------------------Decrease % 27.87% ----------------------------------------20% -----77% -----29%
Sl.No
1 2 3 4 5 6 7 8 9 10 11 12 13
Particulars
Sugarcane purchased Reconstruction expenses Vehicles management Interest on loan Salary to staff Auditors fees Rent and taxes Insurance Repairs and maintenance of machinery Telegram and telephone charges Bank commission Other expenses Net Profit carry forward to C/B TOTAL
Lakhs 7250.00 2.00 8.00 1800.00 264.00 2.00 8.00 10.00 300.00 5.00 4.00 1904.00 11557.50
INTREPRETATION Sugar purchased decrease by 27.87% in the year 2007-2008 compared to 2006-2007 Reconstruction expenses increase by 50% in the year 2007-2008 compared to 2006-2007 Rent and taxes increased by 60% in the year 2007-2008 compared to 2006-200
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C)2008-2009 Receipts
2007-2008 Sl.No Particulars At Rs. In Lakhs 2008-2009 At Rs. In Lakhs Increase % Decrease %
--------------33.78% ------
2 3 4 5
8243.41
735598000
------
INTREPRETATION Sugar sales decreased by 10.40% in the year 2008-2009 compared to 2007-2008 Sales of by product decrease by 13.10% in the 2008-2009 compared to 2007-2008 Interest on loan increased by 33.78% in the 2008-2009 compared to 2007-2008
PAYMENTS:-2008-2009 Babasabpatilfreepptmba.com
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A STUDY ON BUDGETARY CONTROL at RANNA SUGARS 2007-2008 Sl.No 1 2 3 4 5 6 7 8 9 10 11 12 13 Particulars Sugarcane purchased Reconstruction expenses Vehicles management Interest on loan Salary to staff Auditors fees Rent and taxes Insurance Repairs and maintenance of machinery Telegram and telephone charges Bank commission Other expenses Net Profit carry forward to C/B TOTAL At Rs. In Lakhs 5230.00 3.00 8.00 1800.00 264.00 2.50 20.50 10.50 300.50 4.50 4.00 442.50 155.41 8243.41 2008-2009 At Rs. In Lakhs 4400.00 3.00 12.00 1600.00 338.00 3.00 20.00 10.50 300.00 3.00 1.50 418.50 246.98 7355.98
INTREPRETATION Sugarecane consumption is decreased by 16%in the year 2008-2009 compared to 2007-2008 Vehicales management costs are increased by 50% in the year 2008-2009 compared to 20007-2008 Bank commission is decreased by 63% in the year 2008-2009 compared to 20072008
FINDINGS:
In Ranna Sugars both monthly operation plan and annual operation plan are prepared ascertaining the budgeting performance with actual performance. Budgetary control system is adopted for checking the industrial performance Sugar sales increased by 54.00% in the year 2006-2007 compared to 2005-2006Interest on loans decreased by 39.8% in the year 2007-2008 compared to 2006-2007 - 65 -
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Vehicles management costs are increased by 50% in the year 2008-2009 compared to 20007-2008
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SUGGESTIONS
Accurate position of the business cannot be estimated: It arises due to inflationary pressure and change in Government policies all these Ranna Sugars can carry out some promotional activities, so as to increase its sales the competition Use of quarter Budget it leads to chances of improvement or modification. Quarter Budget helps industrial concerns to checks its actual performance. After
ascertaining the actual performance if any modification requires that can be adjusted in next
department.
Ranna Sugars may appoint specialized and experienced finance manager to improve
its finance performance. The company should have proper co-ordination between finance and marketing
strategies.
The company should have close watch on the market which helps to make new
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CONCLUSION:
From the study it can be concluded that to know that budgetary control is treated as one of the better techniques for minimizing cost and maximizing profit in Ranna Sugars. Budgetary control technique Plays important role in the profit making or smooth running of the company It co ordinates all the departments like Finance, Marketing, Production in the company. It makes the decentralization of authority in the organization which helps organization goal with in stipulated period of time. Budgetary control acts as safety for an organization because it helps to identify business risk and necessary steps can be taken to avoid the risk. Budgetary control techniques help to know how the available monetary resources can be utilized effectively. This technique focus on efficiency in the allocation of resources in particular time. As the finance department is the soul of any organization. Budgetary control helps the organization by making finance department effectives
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BIBOLOGRAPHY
Financial management by M.Y. Khan and P.K. Jain Financial management by I.M. Pandey
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ANNEXURE
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