F&a - Budget Analysis

Analysis of Budgeting Controlling Procedure at KRIBHCO
PROJECT REPORT
ON
AT
KRISHAK BHARTI CO-OPERATIVE LTD.,
HAZIRA 2006-2007
AS THE PARTIAL FULFILMENT OF

MASTER OF BUSINESS
ADMINISTRATION,
BHAVNAGAR UNIVERSITY
TANK SANJAYKUMAR
M.B.A. (FINANCE)
Department of Business Administration Bhavnagar University, Bhavnagar
PREFACE
This project report is prepared during the vocational training

undertaken at KRIBHCO SURAT, on partial fulfillment of the
degree in Management of Business Administration.
Theory of any subject is important but without its practical

knowledge it becomes useless particularly for the Management
students. As a student of the Business Administration, we have
studied many theories in the classroom, but only after taking up
this project work we have experienced & understood these
Management theories & practices in its fullest sense, which plays a
very vital role in business field today. The knowledge of
Management
is
incomplete
without
knowing
the
practical
applications of the theories studied. This training provides golden

opportunity for all students, especially when the Management
student does not have perfect understanding of the working of a
unit.
Hence, this report is designed with the objective to gain

practical knowledge & is undertaken on
ANALYSIS OF
BUDGETING CONTROL PROCEDURE AT KRIBHCO
ACKNOWLEDGEMENT
I am glad to express my profound sentiments of gratitude to all who

rendered their valuable help for the successful completion of this project
report titled, ANALYSIS OF BUDGETING CONTROLLING PROCEDURE AT
KRIBHCO And to know the functions of FINANCE AND ACCOUNTS
DEPARTMENT.
I record my deep sense of gratitude to Mr. D.K.RAVAL (Mgr.-Account)
who had given me a chance to do a project under this roof of KRIBHCO and
given opportunity to know the functions of FINANCE AND ACCOUNTS
DEPARTMENT.
Im also thankful and would like to show my special gratitude to
Mr.R.K.Aggrawal (F & A), Mr. S.Gajjar (F & A), Mr. N.K.Shahoo (P& A), Mr.
S.Goswami (Estate Dept.),
Mr. Mukesh Jani (Estate Dept.), Mr. Rajesh
Sampat (Stores Dept.), Mr. M. N. Patel Sr. Pvt. Secy. (HRD),who

supervised my entire project. I would like to thank sincerely from the deep of
my heart as they were the persons who constantly guided me and gave me
the practical knowledge of the subject.
As books were the source of our knowledge and data I would also like
to thank Mr. P.T. Solanki Asst. Mgr. (Library head) and Mr. Thomas TS,
Pvt. Secretary, who helped me whenever required.
My genuine sense of gratitude goes to the respective universities that
gave me a chance to brighten my academic qualification that provided me this
opportunity to have a practical knowledge of relevant fields.
INDEX
Sr. No
Particulars
1
2
3
4
5
Fertilizer industry in the service of farmers

Objective of the Project
Company Overview
Research Methodology
Introduction of budgeting
Meaning
Definition
Source of Budget
Essential of Budgeting
Purpose of Budgeting
Factors Considered
Statement of Expectation
Budget Administration
Types of Budget
Classification of Budget
Budget Formulation Process
Advanced Budgeting Technique - Zero Based
Budgeting
Advantages of Budgeting
Problems and Limitations Of Budgeting
Budgeting in KRIBHCO
Budget Process in KRIBHCO
Conclusion
Bibliography
6
7
8
9
FERTILIZER INDUSTRY IN THE SERVICE OF

FARMERS
THE INDIAN FERTILIZER INDUSTRY has come a

long way since the establishment of the first super
phosphate factory with a capacity of 6400 tonnes
P2O5 per annum at Ranipet (Tamil Nadu) in
1906.The
growth
in
fertilizer
production
and
consumption remained very slow in the first 50

years due to lack of awareness about the benefits of
fertilizer use. The Bengal Famine in 1943 and acute
shortage of food
immediately after the Second World War necessitated increasing food grains
production and consequently fertilizers consumption. The introduction of
fertilizer responsive HYV (High Yielding varieties) of wheat and rice in the midsixties proved to be a turning point in Indian agriculture. The expansion in
area under irrigation and increasing coverage of HYVs led to a remarkable
growth in fertilizer use and crop production. India became self sufficient in
food grain production and has emerged as the third largest producer and user
of chemical fertilizer in the world. Adoption of an imaginative and innovative
approach by the Government of India and the fertilizer
In the initial years, the farmers were reluctant to use fertilizers. The
fertilizers industry had to put in considerable efforts to convince farmers
regarding the benefits of fertilizer use in crop production. The fertilizer industry
also improved the availability of fertilizers at the farmers door by
strengthening its dealer network. Conscious of the fact that making fertilizer
available alone would not be enough to increase fertilizer consumption and
keeping in view that Seeing is Believing and Doing is Learning, the industry
conducted a large number of demonstrations at the farmers fields. Even

today thousands of fertilizer demonstrations are conducted every year. Group
communication method like field days, crop seminars, kisan melas, etc., are
undertaken by the industry to increase the level of awareness among farmers.
Soil testing is a vital tool to assess the fertility status of the soil and
ensure balance and efficient use of fertilizers. Accordingly, to enable farmers
to use fertilizers in balanced proportions, the industry has set up 40 soil
testing laboratories (28 static and 12 mobile) and more than 4 lakhs soil
samples are tested annually. Intensive efforts are being made by the industry
to make the farmers understand the need and importance of soil laid on
conservation of natural resources through watershed development; farm level
water management; soil conservation and soil reclamation/ amendment.
THE FERTILIZER INDUSTRY introduced the concept of village
adoption for overall socio-economic development of the village way back in
1968 in Patrenahalli village in the state of Karnataka. Since then village
adoption has become a very effective mode of socio-economic development
and now hundreds of villages are being adopted by the industry every year.
Besides transfer of improved technology farmers are trained in scientific
cultivation, fertigation and post-harvest technology. The fertilizer companies
are encouraging farmers to go for crop diversification like horticulture,
floriculture, and off season vegetable cultivation to make farming a profitable
venture. Social services like empowerment of woman, distribution of school
bags to primary school students, girl childs education, camps for medical and
veterinary checkup, rural sports, debates, entertainment, agree-club, hand
pump installation, etc. are also provided for the benefits of farmers and their
families.
INTRODUCTION TO FERTILIZER INDUSTRIES

INDIAN FARMER FERTILIZER COOPERATIVE COMPANY (IFFCO)
IFFCO was registered as a multi-unit cooperative society on November
3.1967 with an initial membership of 57societies, which contributed sum of Rs
0.549 million to its share capital. In the last over three decades the
cooperatives have contributed immensely to the growth of IFFCO and their
membership has steadily increased to 37381 with a share capital of Rs.
4210.8 million.
NAGARJUNA FERTILISERS AND CHEMICALS LIMITED (NFCL)

Society has an equity participation of Rs.10.00 Crores in M/s. NFCL,
which is involved in manufacturing a wide range of plant nutrients and low

toxicity plant protection products.
KRIBHCO SHYAM FERTILIZERS LIMITED (KSFL)

KRIBHCO along with M/s Shyam Basic Infrastructure Projects Pvt.
Ltd. Joint Venture company to acquire ammonia - urea fertilizer complex of
Oswal Chemicals and Fertilizers at Shahjahanpur, with annual urea capacity
of 8.64 lakhs MT.
KRIBHCO Shyam Fertilizers Limited (KSFL) thus formed has been
registered on December 8, 2005. KRIBHCO has 60% equity in the Joint
Venture Company and management control. Balance 40% equity is held by
M/s Shyam Basic Infrastructure Projects Pvt. Ltd.
Total equity contribution of the society is Rs. 420 Crores.
OMAN INDIA FERTILISER COMPANY SAOC (OMIFCO)

KRIBHCO along with IFFCO as Indian partner and M/S Oman Oil
Company has set up a joint venture fertilizer
plant known as OMIFCO of
capacity 5060 MTPD Urea and 3500 MTPD Ammonia in Oman. Total equity
contribution of the Society is US $ 80 Million.
THE ROLE OF THE FERTILIZER IN THE NATIONAL ECONOMY
AGRICULTURE
As critical input in
crop production
Fertilizer use
promotes. It
promoters
agriculture growth
food security & rural
INDUSTRY
SERVICES
ENVIRONMENT
Fertilizer
industry Distribution network The proper use of
promotes Use of promotes domestic Fertilizers
can
gas, sulfur etc.
world trade; credit help in
Banking,
services,
Foreign Exchange and
of
research, 1-maintainance
saving
transport and storage soil structure
services.
2-prevention of soil
erosion
and
degradation.
3-control
deforestation
of
OBJECTIVE OF THE PROJECT
A. PRIMARY OBJECTIVE:
The primary objective of the present study is to understand the

techniques of the
budgeting control used in this concern, with a view to find
out the extent to which the concepts of scientific budgeting control are being
applied to them and introduce scientific and practical budgeting controlling.
COMPANY OVERVIEW
BIRTH OF KRIBHCO
Krishak Bharati Co-operative Limited KRIBHCO, a premier Cooperative Society for manufacture of fertilizer, registered under Multi-State
Cooperative Societies Act 1985, was promoted by the Govt. of India,
IFFCO, NCDC and other agricultural co-operative societies spread all over
the country.
Oil & Gas findings in Bombay High and South Basin triggered off the
birth of eight new generations fertilizer plants to fulfill ever-growing food
needs of the country. KRIBHCO was amongst the first two Projects in the
first phase.
KRIBHCO has setup a Fertilizer Complex to manufacture Urea,
Ammonia & Bio-fertilizers at Hazira in the State of Gujarat, on the bank of
river Tapi, near Kawas village, 15 Kms from Surat city and 20 Kms from
Surat Railway Station on Surat Hazira State Highway.
Late Smt. Indira Gandhi, former Prime Minister of India laid the
Foundation Stone on February 5, 1982.
The trial production of Urea commenced from November 26, 1985
and within a very short time of 3 months, the commercial production
commenced from March 01, 1986.
Since then, it has excelled in
performance in all areas of its operations.

The total Project cost was Rs. 890 crores as against the estimated
cost of Rs. 957 crores. This shows a saving of Rs. 67 crores (approximately
7%) in Capital Cost of the Project, which is a rare feature in the history of a
Public Sector Unit.
In order to serve the farming community better, a Bio-fertilizer Plant of
100 MT per year capacity was commissioned at Hazira on August 15, 1995.
An additional capacity of 150 MT was added to that Plant on December 1,
1998. Subsequently, two more Bio-fertilizer Plants, each of 100 MT capacity,
were installed at Varanasi, UP and Lanja, Maharashtra on Oct 15, 2003 and
Oct 01, 2004 respectively.
MISSION, VISION & OBJECTIVES
MISSION
To act as a catalyst to agricultural and rural development by selecting,

financing and managing projects that are both socially desirable and
commercially profitable.
VISION
KRIBHCO will become one of the leading fertilizer producers in the
world, funding growth through
Efficient production
Efficient diversification
Efficient distribution
Efficient utilization of resources
OBJECTIVES
MAIN
To increase the Urea installed capacity, maintaining its market

share.
To ensure optimum utilization of existing plant and machinery

through
proper maintenance
To diversify into other core sectors like power, LNG terminal/port,

Chemicals etc.
OTHERS
To
enlarge
product-mix
through
product
development
To continue and intensify efforts towards rural
development and co-operative movement.

To encourage the use of bio-fertilizers and increase
its production
capacity.
REGISTERED OFFICE
Red Rose House,

49-50, Nehru Place,
New Delhi 110 019.
CORPORATE OFFICE
A: 8-10, Sector-1, NOIDA-201 301, District: Gautam Budh Nagar (UP).

Phone
: (0120) (253 46 13, 253 46 29-32, 253 45 64)
Voice Mail
: (0120) (254 91 12-14)
Fax
: (0120) (253 71 13, 252 70 04)
Website
: www.kribhco.net
HAZIRA PLANT SITE

PO: KRIBHCONAGAR, SURAT 394 515.
Phone
: (0261) (286 2766-70)
Fax
: (0261) (286 0283)
Website
: www.kribhcosurat.com
CENTRAL MARKETING OFFICE

A 8-10, Sector-1, NOIDA-201 301, District: Gautam Budh Nagar (UP).
Phone
: (0120) (253 46 13, 253 46 29-32, 253 45 64)
Voice Mail
: (0120) (254 91 12-14)
Fax
: (0120) (253 4861)
MAJOR MILESTONES FOR HAZIRA PLANT

PIB Clearance for the Project
Land acquisition
Project Zero Date
Foundation Stone laying by Late PM Smt. Indira
17.04.1980
07.07.1980
31.03.1981
Gandhi
05.02.1982
Project Completed
Plant Completed
Mech. Completion of Plants:
31.05.1985
26.11.1985
30.04.1984
a. 1st Phase of Ammonia & two streams of Urea plants
31.08.1984
b. 2nd Phase of Ammonia & two streams of Urea plants

Receipt of gas for - Phase-1
18.09.1985
- Phase-2
Commencement of Trial production - Ammonia
06.11.1985
14.11.1985
- Urea
Start of Commercial Production Ammonia & Urea
OTHER PROJECT HIGHLIGHTS:
26.11.1985
01.03.1986
Total Plant Land

1,700 acres
Total Land for Township
100 acres
Cement
15,000 MT
Steel
28,000 MT
Piping
8,80,300inchmeter
Electrical Cabling
700 Kms
Excavation
32Lakhs cum
Concreting
3.0Lakhs cum
Reinforcement
30,000 MT
PLANT DETAIL
1.
AMMONIA
No of plant
: Two
Capacity of each
Plan
: 1350 MT per day.
Rate of production : 2700 MT/DAY.

Process used
: KELLOGG High Pressure Reforming Technology
By product
: Carbon Dioxide (CO2).
Raw Material
ammonia are:
: Principle Raw Materials used for the production of

Nitrogen gas (N2)
Hydrogen gas (H2)
Source of Raw Materials:

H2: from Natural gas supplied by O.N.G.C.
N2: from air.

Annual Capacity
: 8.91 lakhs MT originally, which has been

reassessed
and revised upwards to 10.032
lakhs MT wef 01.04.2002

Consultants
: M/s Kellogg, (at present Kellogg Brown & Root),

USA supported by M/s Fact Engineering and
Decision Organisation (FEDO), India.
BRIEF PROCESS DESCRIPTION:

The ammonia process involves steam reforming of natural gas.
Natural gas is used as feed and fuel in the ammonia plants.
The following are the basic steps in the ammonia manufacturing
process:
Desulphurisation of natural gas
Steam Reforming of natural gas
Shift Conversion
Carbon Dioxide removal
Methanation
Ammonia Synthesis
Refrigeration system
2. UREA
No of plant
: Four
Capacity of each
Plan
: 1100 MT per day.
Rate of production : 4400 MT/DAY.

Process used
: SNAM PROGETTI ammonia stripping

Process.
By product
: Carbon Dioxide (CO2).
Raw Material
: Principle Raw Materials used for the production
of
ammonia are:
Ammonia (NH3)
Carbon Dioxide (CO2)
Source of Raw Materials:

NH3: from own Ammonia Plant.
CO2: from own Ammonia Plant
Annual Capacity
: 14.52 lakhs MT originally, which has been

reassessed and revised upwards to 17.292 lakhs
MT wef 01.04.2002
Consultants
M/s.
Snamprogetti,
Italy
Supported by M/s. Project & Development Ltd.

(PDIL), India. BRIEF PROCESS DESCRIPTION:
BRIEF PROCESS DESCRIPTION
The production of urea by ammonia stripping process involves the
following steps:
Synthesis
Purification and Recirculation
Concentration and prilling
STEAM AND POWER GENERATION:

The steam generation plant supplied by FOSTER WHEEL POWER,
UK consist of 3 boilers (2 running & 1 stand by) capable of producing 275 MT
steam per boiler per hour at 105 at pressure and 510C to supply steam to the
process plant and power generation. The boilers are of single drum Monowall
Balanced draft type, complete with all accessories and mountings. The boilers
can fired to 100% MCR with gas. All three boilers are connected to a single
common header and from their distribution of steam to different use points.
In power plant with help of boiler, heater, deaerator and other instrument
steam is generated. From this steam about 65% is used in production plant
and about 35% is used for power generation. Power is generated with the
help of two turbo generators.
The power plant consists of two extractions cum condensing type T.G. sets
each of 15 MW capacities, supplied by BHEL. Out of this KRIBHCO require
25 MW power and remaining supplied to G.E.B.
CAPACITY OF PLANT
1. Presently the society has Gas based Ammonia and Urea Complex,
which is one of the largest in the cooperative sector in the world,
situated on the bank of the river Tapti near Surat in Gujarat. Two
Phase of Ammonia Plant 1520 MTDP (Metric Ton Per Day) Capacity
each and Two Phase of Urea Plant 2620MTDP Capacity each. Annual
capacity of produces is 16.24 Lacs Tones of Urea.
2. The production capacity of captive power plant is 30 Mega watts.
3. The Production capacity of Bio-Fertilizer Plant is 250 MT per annumSurat, 150 each MT per annum-Varanasi, Lanza Maharashtra.
4. Seed Processing -1.21 Quintals in 2003-2004, highest ever production
so far.
FINANCIAL PERFORMANCE
SOURCE OF FINANCE: The following is the graphical representation of
Sources of Finance:
DISTRI
BUTION OF FINANCE:
The following is the graphical representation of Distribution of Finance:
KRIBHCO NETWORK
A) Head Office
: Fertilizer Plant, Noida Delhi.
B) Plant
: Surat Gujarat.
Bio-fertilizer Plant
: Surat (Gujarat), Varanasi (UP), Lanza
(Maharastra)
Seed Processing Plant: Andhra Pradesh, Gujarat, Haryana, M.P., Punjab
C) Zonal Office
: Bhopal, Banglore, Luckhnow, Chandhigarh.
D) State Mktg.Office
: Jaipur, Ahmedabad, Chennai,Mumbai,Bangalore,

Patna, Luckhnow, Guwahati, Dehradun, Kolkatta.
MARKETING ACTIVITIES
As per its byelaws, the society has been marketing its product(s) only
through Cooperative and Institutional Agencies. Besides providing its
product(s) to Apex Level Cooperative Federation/ Institutions in most of the
states, it has also been supplying its product(s) to grass-root level societies in
the States of Uttar Pradesh, Andhra Pradesh, Rajasthan, Uttaranchal, Bihar
and the focal points in Punjab, apart form Krishak Bharati Seva Kendras
(KBSKs). The direct supplies to Primary Agricultural Cooperative Societies
(PACSs) / Focal point not only helps in timely availability and increase in
fertilizer consumption, but also provide maximum benefits to these societies
for making the financially strong.
AWARDS
The Society has been honored with various prestigious awards for its
excellent performance during the year some of which are mentioned below:
Ugadi Puraskar (Samaikya Bharat Gourav Satkar)-2005 bestowed

on
Shri V.N.Rai, Managing Director, KRIBHCO by Delhi Telugu
Academy for outstanding contribution in fertilizer Industry &

Cooperative Sector.
Award from the South Gujarat Chambers of Commerce & Industry for
outstanding performance in Pollution Control and outstanding
Achievement in Agriculture & Agro Industry.
Indira Gandhi Rajbhasha Award 2003-2004 (Second) was awarded

by Sh.Shivraj Patil, Honble Home Minister, Government of India, for
maximum use of Hindi.
Third prize of 6th All India Awards of Hyderabad Chapter of Public

Relations Society of India for CD/Video Production.
DEPARTMENTS
KRIBHCO plant site Surat having 1379 employees including both
officers and staff. KRIBHCO is having functional organisation structure. There
are 15 departments and each having linking system related to work. Each
department is having their individual required man power for performing their
jobs.
For e.g. Production Department is doing an operation job of various

machines like compressors, pumps, blowers, valves etc. The maintenance of
above machines and equipments are done by Mechanical, Instrument,
Electrical and Civil Departments based on job specified. The material required
for above work are arranging by purchase and store department with
requirement from various maintenance department after taking financial
clearance from finance department and competent authority.
MAN POWER
Department
No
Finance and Accounting

Personnel and Administration
HRD
Security
Material
Medical
Mechanical
Transportation
Fire and safety
Purchase and store
Instrumentation
Electrical/Civil
MS System
Laboratory
Production(HEAO Plant) Phase-I and Phase-II
Total
Contract Labours
Total ManPower
Employees
62
82
9
101
55
32
210
29
45
56
90
101
13
54
440
1379
1600
2979
of
ORGANISATION STRUCTURE
KRIBHCO-Surat having their Site-in charge designated as operations
director, who is responsible for operations, maintenance, administration,
financial decisions, maintaining pollution norms, which is given by Gujarat
Pollution Control Board and Central Pollution Control Board and Other welfare
activities. Under him there are six General Manager working, who are heading
the department like Personnel and Administration, Finance and Account,
production, Maintenance, Commercial (stores and Purchase) and Technical.
The individual Departments General Managers are responsible for
smooth and efficient operation of plant and other related matters. The Chief
Managers, who are working under General Managers, are heading Sub
Section of Main Department. Under him there are individual Plant Senior
managers, who are responsible for plant production target, day-to-day
activities related to plant or Machineries preventing and break down
maintenance.
Under
senior
manager,
there
are
Managers/Deputy
Managers/Senior Engineers working who are responsible for round the clock
plant production, safety and machine maintenance. There are field
engineers/Chief Operators/Unit operators, who are responsible for plant
operations and maintenance round the clock.
GRADE SYSTEM IN KRIBHCOPLANT SITE HAZIRA
A
B
B1
C
D
E
F
F1
G
G1
G2
H
Managing Director
Director (Operations/Marketing/Finance)
Executive Director
Senior General Manager/General Manager
Joint General Manager/Chief Manager
Senior Manager/CMO
Manager
Deputy Manager/Senior Manager M.O.
Sr. Assistant Manager/ Sr, Area Manager/Sr. Engineer/Foreman
Assistant manager/Engineer/Assistant Foreman
Assistant Engineer/Assistant Manager
Joint Manager/P.S.
FUTURE PLANS
A joint venture fertilizer project in Oman:
Society has invested US$ 80 million as equity in Oman India Fertilizer

plant which has achieved commercial production on 14 th July 2005. The
Project has annual capacity of 16.52 lakhs MT Urea and 2.50 lakhs MT
surplus ammonia and has been built at a cost of US$ 969 million. Marketing of
Urea produced by this plant has since been commenced by the society.
Hazira Phase-II
Society is in the process of setting up a state of the art mega size
ammonia plant of capacity of 1850 MTDP and urea plant of capacity of 3250
MTDP at existing fertilizer complex at Hazira. Existing infrastructure facilities
will be utilized resulting in saving of cost. Plant will be based on natural gas
and we have energy consumption.
Gujarat state energy generation limited(GSEG)
Society has diversified to power sector and has invested Rs. 48.75
crores being 30% equity in Gujarat State Energy Generation Limited, a joint
venture company promoted by government of Gujarat, GSEG is operating 156
MW Power Plant at Mora, District Surat.
KRIBHCOs Hazira plant is also going to be expanded. The society is
also exploring the possibilities to set up a 200 MW liquid fuel based power
project at Jhunjhunu, Rajasthan. Society has deposited a development
security of Rs.25 lakhs with Rajasthan State Electricity Board (RSEB).
Minister of power has given No Objection Certificate (NOC).
RESEARCH METHODOLOGY
Objective
To gain the familiarity with the phenomenon of budget or to achieve

new insights into it.
To know how the budget is being prepared in KRIBHCO.
To have the practical knowledge and details about the budget.
To find new recommendations or suggestions for the budget, that is
being prepared in KRIBHCO.
Problem to investigate
We have very limited time period for the training and project report so
we prepared it within the sort time.
All the data are realistic but I have to keep it confidential from the
outsiders, so I cant disclose that data.
I tried very hard to get the data from the officers due to MR RAMVILAS
PASVAN came for visiting of KRIBHCO. All the employees were busy
for the preparation of that function.
Research methodology
Type of the data: For the survey we have to collect two types of data:
1. Primary Data: This project no need any primary data.
2. Secondary data.
Source of the data: All the data collected from the officers of the
Finance and Account Department. The data is stored in krims LAN
system that is the shared network used in KRIBHCO.
Instrument of the data collection
a. Primary Data: There is no primary data has collected
b. Secondary Data: All the data are secondary, that I have collected
form the Finance and account Department.
INTRODUCTION OF BUDGETING
MEANING OF A BUDGET
A budget is a comprehensive and coordinated plan, expressed in
financial terms, for the operations and resources of an enterprise for some
specific period
1) It is a comprehensive and coordinated plan.
2) It is expressed in financial terms.
3) It is a plan for the firms operation and resources.
4) It is a future plan for a specified period.
A budget is the plan of the firms expectations in the future. Planning
involves the control and manipulation of relevant variables- controllable and
non-controllable,
and
reduces
the
impact
of
uncertainty.
It
makes
management active to influence the environment in the interest of the

enterprise. A budget expresses the plan in formal terms and helps to realize
the firms expectations. It is a comprehensive plan in the sense that all
activities and operations are considered when it is prepared. It is a budget of
the enterprise as a whole, Budgets are indeed prepared for various segments
of the enterprise, but they are components of the total budget- the master
budget. The budget for a segment or department will not have much
significance unless it is a part of the master budget for the entire enterprise.
The comprehensive, or the master, budget is prepared after coordinating
budgets for various segments of the enterprise. If budgets for various
segments of the enterprise are not prepared jointly and in harmony with each
other, the master budget will lose much of its importance and may even prove
to be harmful in realizing the firms expectations.
For operational purposes, a budget is always quantified in financial
terms. Initially the budgets may be developed in terms of varieties of
quantities, but finally they must be expressed in the money unit (rupees,
dollars or pounds, etc). For example, purchase and production budgets will
involves units of raw-material and finished products respectively, the labour

budget will involve men and labour-hours, or the sales budget may involves
territories and customers to be served. But a coordinated and comprehensive
budget can be developed only when all these budgets are expressed in some
common denominator: the money unit undoubtedly serves as the common
denominator.
A budget is a mechanism to plan for firms all operations or activities.
The two aspects of every operation are: revenues and expenses. The budget
must plan for and quantify revenues and expenses related to a specific
operation. Planning should not only be done for revenues and expenses, but
the resources necessary to carry out operations should also be planned. The
planning of resources will include planning for assets and sources of funds.
Time dimension must be added to a budget. A budget is meaningful
only when it is related to a specified period of time, the budget estimates will
be relevant only for some specific period. For example, a production target of
10 lacks units or a profit target of Rs. 50 lacks has no meaning unless it is
stated that when these targets have to be met. As we have stated previously,
a firm may have its long range, broad objectives, such as a long run survival,
maximum sales, maximum long run profit, employee satisfaction, customer
satisfaction, social responsibilities, etc., expressed in vague, qualitative terms.
But to achieve these qualitative expectations of the firm, the short-term
objectives or goals, expressed in quantitative terms, must be related to the
time period within which they have to be achieved.
DEFINITION
Planning
is
selection
of
objectives,
policies,
procedures
and
programmers from among various alternatives for achievement of enterprises

objectives. It is thus essentially a decision making process affecting futures
course of action of an enterprise or department.
BUDGETING
A budget is essentially a plan, a statement of expected results
expressed in numerical term i.e. term or quantity terms.
The institute of Cost and Management Accountants of U.K. has defined
Budget as a financial or quantitative interpretation prior of to a defined period
of time of a policy to be pursued for that period to attain a given objective
What is a Budget?
Simply stated, a budget is a quantified, planned course of action over a
definitive time period. It is an attempt to estimate inputs and the costs of
inputs along with associated outputs and revenues from outputs. Creating a
budget is important because it:
Forces an organization to carefully consider the expected demand for
its products and services and the resources required to meet that demand
translates the organization's higher priorities into the appropriate resources
required to achieve those priorities Highlights potential problems in sufficient
time to take corrective actions Creates a baseline against which actual results
can be compared.
The Primary Sources for a Budget

There are three primary inputs to a typical budgeting process:

Plansan organizations plans and priorities should be an important driver to
the budgeting process. Budgets should reflect management's planned change
initiatives, related costs, and expected results.
Performancepast and current performance, as well as that of like
organizations, should contribute to the budgeting process. Consideration
needs to be given to uncontrollable external changes that could dramatically
affect the operation and its results. Examples of such events include rising
energy costs, economic slowdowns, foreign threats, shifts in technology, and
changing global markets.
Peoplegood intra- and inter-organizational communications are essential to
developing both good plans and good budgets. From customers to suppliers
to internal personnel, the higher the quality of information, thought, and input
into the process, the more likely a more realistic budget will result.
A remindera budget is simply a result. The quality and meaningfulness of a
budget is only as good as the process that led to its development.
The Difference between a Budget and a Forecast

One thing is virtually certain about a budgetit will be wrong. Thats because
nobody can accurately predict the future, regardless of what process,
information, tools, or models are used. That is why many organizations also
develop forecasts throughout the budget execution period. The purpose of a
forecast is to continually update the expected results for the period based
upon the latest information available.
Many things can cause a budget to be wrong, such as changes in:
Customer demand
Suppliers processes and costs
Internal procedures and/or priorities
Government policy
Technology
The global economy
Global stability.
ESSENTIALS OF BUDGETING
A successful and sound budgeting system is based upon certain
prerequisites.
These
prerequisites
represent
management
attitude,
organisation structure and managerial approaches necessary for the effective

and efficient application of the budgeting system. The following are some of
the important essentials or fundamentals of a successful budgeting:
1) Top management support.
2) Clear and realistic goals.
3) Assignment of authority and responsibility.
4) Creation of responsibility centres.
5) Adaptation of the accounting system (responsibility accounting).
6) Full participation.
7) Effective communication.
8) Budget education.
9) Flexibility.
Top Management Support:A budgeting system will be an utter failure if it is not initiated and
supported by top management. Top management must realise that budgeting
is not merely an accounting device, but it is an important management tool.
Top management must:
a) understand the nature and characteristics of budgeting;
b) be convinced that this particular approach to managing is preferable for
their situation;
c) be willing to devote the effort required to make it operative;
d) support the programme in all its ramification;
e) view the result of the planning process as performance commitments.
A company will be able to implement the budget plans proficiently and
effectively if top management has a positive attitude towards budgeting and
gives directions for budget implementations. It is, therefore, one of the most
difficult problems of the financial manager or the budget director to sell the
idea of budgeting to the managing director and other top officials.
The support of top management for the budgeting system implies that it
is confident about its capability to plan the future course of action and run the
enterprise successfully. Top management must be convinced that it can
predict future with reasonable accuracy; and that realistic objectives and goals
can be predetermined. Top managements confidence in the budgeting
process makes the subordinates more confident and conscious. It has been
shown by the behavioural research that subordinates of a manager will be
approximately three times more cost-conscious than the subordinates of a
manager who is not cost-conscious.
Top management should not only have a positive attitude towards
budgeting but should also devote necessary time and resources to the
preparation and implementation of budgets. Budget estimates are generally
prepared by the line managers, but top management has the responsibility of
coordinating budgets of different departments regarding resources allocation.
Top management should also initiate a follow-up to see that there is effective
implementation of budgets.
Clear and Realistic Goals:Budgeting is a means to achieve goals and objectives. All planning
presupposes that objectives and goals have been clearly and unambiguously
established. Budgeting will not succeed if the goals achieved are not clear;
budget implementation will not be systematic. In the absence of goal clarity,
employees will lack a proper direction; the efforts of management will be
wasted. The financial manager or budget director, therefore, must ensure that
objectives and goals have been properly laid down. As far as possible,
objectives and goals should be written in formal terms. But too much formality
should be avoided as it can make budgeting system inflexible.
The enterprise objectives and budget goals to be accomplished
through budgeting should be reasonable and realistic they should be capable
of attainment. Budget goals should not be set at too high or too low a level.
Goals set at a very high level are impossible to attain and, as a result, have a
depressing effect on the employees morale. Once the employees know that
they are unrealistic and unattainable, they do not put any serious efforts to
achieve them. Goals set at a very low level do not provide any challenge to
employees. Their achievement does not require any special effort and,
therefore, employees do not feel motivated. The enterprise objectives and
budget goals must provide a real challenge and should be capable to
motivating employees. What are the realistic objectives and goals for an
enterprise depend upon a host of factors, such as size of the enterprise,
managerial philosophy and quality, age of the enterprise, nature of activities
and many psychological and other factors. Goals set realistically provide
better motivation to employees in the long run.
Assignment of Authority and Responsibility:A sound organisational structure is essential for the success of the
budgetory system. Authorities and responsibilities of each manager should be
clearly identified and established. A sound organisational structure and a
clear-cut assignment of authorities and responsibilities provide an effective
means to achieve enterprise objectives and budget goals in a coordinated and
efficient manner. The budgetory system should be established in terms of the
assigned authorities and responsibilities; the performance of each manager
should be evaluated in terms of the assigned authorities and responsibilities.
If there is no synchronization between the budgeting system and the
organisation structure of the enterprise, the planning and control system
would not be effective. In the absence of the clear-cut assignment of
authorities and responsibilities either manager cannot be held accountable, or
they will be held accountable for those activities for those activities for which
they have no responsibility.
The type of organisational structure for an enterprise will depend upon
the leadership style of top management. An enterprise may have a formally
defined organisational structure or an information organisational structure.
Usually, firm have a combination of both formal and informal organisational

structure. Whatever the organisational structure, the budgetory system should
be tuned in accordance with such structure.
Creation of Responsibility Centers:A small firm can possible be managed by an individual or a small group
or individuals. But the activities of a large firm cannot supervise by an
individual or a few individuals. For effective control of all activities, a large firm
is divided into meaningful segments, departments or divisions. Each sub-unit
has certain activities to perform and its manager is assigned specific authority
and responsibility to carry out those activities, and is held responsible for his
decisions affecting those activities. The sub-units of an enterprise for the
purpose of control are called responsibility centres or decision centres. A
responsibility centre is a sub-unit of an organizational under the control of a
manager who has the responsibility for the activities of the responsibility
center. The responsibility center can be a big unit, such as a production
department or a small unit, such as a case section of an accounting
department or a machine in the production department. The important criteria
for creating a responsibility center are that the unit of the organization should
be separable and identifiable for operating purposes, and that the
performance measurement should be possible.
For planning and control purposes, responsibility centers are usually
classified into three classes:
a) Cost centres
b) Profit centres and
c) Investment centres.
Cost Centre:A cost centre is a responsibility center where the manager is
responsible only for cost or expanses incurred in the sub-unit. He is not
responsible for profit or investment in the centre. Thus costs are the primary
planning and control data in a cost centre. The performance of the managers
is evaluated by comparing the actual expenses incurred with the budgeted
expenses for the cost centers. For control purposes the manager attention is
focus upon the variance between actual and budgeted expenses.
In a cost center the consequences of decisions are measured by cost
alone the accomplishment of the cost center are not measured in financial
terms. Thus the effectiveness and efficiency of the cost centre cannot be
properly
evaluated. A cost center spending the least is considered as the
best. This kind of analysis, of course, ignores the contributions made by the
center to the firms overall profitability.
Profit Centre:A profit centre, also known as a contributions margin centre, is a
responsibility center where the manager is responsible for the both costs and
revenues and thus, for profit. A profit center provides more effective
assessment of performance as both costs and revenues are measured in
financial terms. A profit centre is more relevant for profit planning and control
as it allows the measurement of both output and input units of the centre.
To ensure effective control through the profit centre control system, the
controllable and non controllable activities should be identified. The manager
of a profit center should be held responsible only for those costs and
revenues which are controllable by him through his decisions. The indirect
costs are usually non- controllable therefore, they may not be allocated to a
profit centre. If the allocation of indirect cost avoided, one may think in terms
of contribution margin centers, rather that profit centers, contribution margin is
the difference between variable costs and revenues of the center.
Investment Center:An investment centre is a responsibility center where the manager is
responsibility for costs and revenues as well as the investment in assets used
by the centre. In an investment center, performance is assessed not only by
profit, but by relating profit to the investment. Thus, return on investment is
used as the performance evaluation criterion in an investment center. In a
sense, investment centres are treated as separate firms where the manager is
responsible for the overall activities affecting costs, revenues and investment.
The creation o responsibility centres costs centres, profit centres and

investment centre is essential for successfully implementing plans (budgets),
attaining objectives and accomplishing control. A budgetary system should be
tailored to the organisational sub units the responsibility centres.
Adaptation of the Accounting System:The accounting system catering only to the needs of external users is
not adequate for the purpose of profit planning and control and internal
management. Budgeting is based on the data generated by the accounting
system. Control of performance involves the comparison of actual
performance or results with the plant performance. Therefore the accounting
system should suitable adapted to facilitate the planning and control process it
should be structured around the areas of responsibility. In fact a sound
budgetary system needs the certain of a responsibility accounting system. A
responsibility accounting system is primarily oriented towards the organisation
responsibilities and is a means to achieve affective control. The accounts are
classified and prepared by responsibilities centers. An accounting system
tailored to the responsibility structured of this enterprise generates data that
are relevant to the planning and controls system.
A cost accounting system has two primary aims:
a) To measure the cost of production and
b) To furnish data for planning and control.
Historical cost accounting has paid more attention to the measurement
of cost of production than planning and control functions. In responsibility
accounting, the emphasis is on planning on control accounts are classified on
responsibilities basis, not on a product cost basis. The cost accumulated for
planning and control purposes can easily be recast for product costing
purpose. But it is difficult to use cost data accumulated for product costing
purposes for planning and control.
Full Participation:Full participation of managers and there subordinates at all levels

should be shout in developing the budgeting system. The participation should
be meaning full and real. If employees have effectively participated in
developing budget goals and targets, they will make special efforts to see that
the budgeting process succeeds. A meaning full participation creates a
positive motivation. Participation tends to increase commitment, commitment
tends to heighten motivation; motivation which is job oriented tends to make
managers work harder and more productively and harder and more
productive work by manager tends to enhance the companys prosperity
therefore participation is good. A non serious efforts on the part of top
management to seek the participation of managers and there subordinates
will not motivate them, at this time, it procedure negative motivation and
makes employees less productive.
To seek meaning full participation of all persons in the enterprise is a
difficult task. Some persons do not at all react to any screen of participation
while other reacts very favourably. All individual should be motivated to
participate in the budgeting process. All the participation of all should be
sought in budget preparation and implementation, the suggestion made by
various persons should be carefully evaluated and analysed before they are
accepted.
If should be understood well that the responsibility to prepare budgets
lies on the line managers. The financial manager or the budget director is a
staff manager, and his role is to coordinate and supervise in the preparation of
budgets. The budgets develop by the line executive will be there own budgets
they will have no reason to say the budgets can not be carried out. Thus it is
essential that those line executive who must achieve the plans and goals
must be deeply involved in providing the planning and decisional inputs for
their respective departments. The procedure makes possible effective
implementation of participation principle in management.
Effective Communication:Communication is the process of transmitting thought or information

form one person to another. The basic purpose of communication is to bring
mutual understanding between two or more persons. It is a device to bring
people together in an enterprise. A sound budgeting system requires effective
communication of enterprise objectives and budgets goals and means of
implementing budgets through the organisation so that a unified effort may be
directed to accomplish those objectives and goals.
Communication is fundamental and vital to all decision. It should not be
taken for granted. For an adequate flow of information, it must be ensured that
communication is effective. Effective communication implies transmission of
information as well as understanding. The receiver may hear a sender but
may not understand what he means. An information has been effectively
communicated if the receiver has understood its intended implication. This
does not mean that, for effective communication, the receiver must agree with
the sender; communication has taken place if the receiver at least
understands what the sender means to convey. A comprehensive system of
budgeting is not only based on a sound communication system, but also helps
to improve the effectiveness of communication within as enterprise. Budgeting
is formal way of communicating plans, objectives and budget goals to various
responsibility centres. It brings about the harmony of understanding between
managers and their subordinates. Budget, developed through full participation
and tailored around the organisational structure of authorities and
responsibilities, provides for better understanding of goals and plans that is
not otherwise possible.
Budget Education:We have noted earlier that participation of all should be sought in
preparing budgets and that the budgets are prepared by line executives,
though the final approval is accorded by top management. Participation can
be meaningful only when people at all levels of management are convinced of
the usefulness of budgets, understand the nature and characteristics of
budgets, and know the role which they have to play in profit planning and
control. In fact, for the success of budgeting, every one in the enterprise
should have confidence in the budgeting system and should be involved and
committed to it. The line executives, who actually prepare the budgets, should
not only be confident of their ability to plan for the future with reasonable
precision, but also should understand the technicalities of budgeting. They
should know now to readjust budgets when the circumstances in order to
seek their meaningful participation and involvement. This requires a
continuous budget education. The employees of an enterprise must be
educated about the nature, characteristics value and method of budgeting.
They should also be taught how to interpret the budget result and how the
performance is evaluated through budgets.
Flexibility:The budgeting system should be flexible enough to take advantage of
all opportunities that arise from time to time and are not covered by the
budget. Inflexibility impairs the initiative and freedom of managers and
subordinates
in
making
decisions. A rigidly
administered
budgeting
programme dominates the business and imposes strait jacket in implementing

the budgets. On the other hand, if the budgeting programme is administered
in a flexible and sophisticated way, managers at all levels get greater freedom
in applying the budgets. In fact budgeting is a device to bring all levels of
management together into the decision-making process of the enterprise.
Once the budgets have been developed with full participation of all and have
been approved, top management can delegate more authority and
responsibility to lower levels of management can exercise better control over
them through budgets. In other words, budgeting allows more freedom to
management at lower levels; within the broad framework of budgets they are
free to make decisions. Top management would exercise a tight control over
lower levels of management and would put restrictions on them to make
decisions in the absence of a sophisticated budgeting system. A flexible and
comprehensive budgeting permits management to readjust plans when
situation arises.
The principal of flexibility is particularly significant in cost control. The

expenses budgeted for an anticipated level of activity cannot be compared
with the actual expenses incurred for an actual level of activities to find out the
variance. For a rational answer, we should compare actual expenses with
budgeted expenses for the actual level of activity. Expenses budgets should
not be used rigidly, therefore. Variable or flexible expense, budgets are
employed to make a meaningful comparison of the actual and budgeted
expenses when the anticipated circumstance change.
It is a financial r quantitative interpretation of policy;
It involves selection of policy from among various alternatives;
It is must be for a specified period say a year, half year or quarter

during which the above policy is to be followed;
It is futuristic in character;
The above policy is to be followed to achieve to achieve the set

objectives inmost economical and efficient manner.
PURPOSES OF BUDGETING
Simple stated the process of preparing and using budgets to achieve
management
objectives
is
called
budgeting.
More
specifically,
comprehensive profit planning and controlling or budgeting is a systematic

and formalized approach for stating and communicating the firms
expectations and accomplishing the planning, coordination, and control
responsibilities of management in such a way as to maximize the use of given
resources. It is a management technique; in fact it is a way of managing. It is
the only comprehensive approach to managing so far developed that, if
utilized with sophistication and good judgments, fully recognizes the dominant
role of the manager and provides a framework for implementing such
fundamental aspects of scientific management as management by objectives,
effective, participative management, dynamic control, continuous feedback,
responsibility accounting, management by exception, and managerial
flexibility.
The major purposes of budgets or budgeting are:

1. To state the firms expectations / goals in clear; formal terms to avoid
confusion and to facilitate their attainability.
2. To communicate expectations to all concerned with the management
of the firm so that they are understood, supported and implemented.
3. To provide a detailed plant of action for reducing uncertainty and for
the proper direction of individual and group efforts to achieve goals.
4. To coordinate the activities and efforts in such a way that the use of
resources in maximized.
5. To provide a means of measuring and controlling the performance of
individuals and units and to supply information on the basis of which
the necessary corrective action can be taken.
IMPORTANT FACTORS TO BE CONSIDERED FOR FORMULATION AND

IMPLEMENTATION OF BUDGET
1.
Determination of Key Factor

The most important factor in formulation and implementation
of
budget is the limiting factor or key factor i.e. who there is any limitation in
respect of raw-material capacity utilization of the plant; sales, finance human
resources etc. having considered the limiting factor, the production and sales
targets are to be fixed and based on the functional budget: master budget is
to be prepared.
Now, in KRIBHCO major factor gas availability is the production key
factor. If in market gas is not available so definitely production should be less.
Some time high price of gas and some another factors are consider so
management purchase raw materials are less so should be less production.
So this is a major factor in kribhco.
2.
Participation and Co-operation of the person responsible for

preparation and Implementation of Budget
Next important point to be considered is the participation and
cooperation of the person responsible for preparation and implementation of

the budget. In fact, efficacy of the budget i.e. the controlling aspect entirely
depends on the persons who are responsible for preparation and
implementation of the budget. Unless a person is serious in preparation and
implementation of the budget, the objective of cost minimization and wealth
maximization will not be achieved.
3.
Control Technique
The budget may be so prepared and analyzed that it can be used as a
technique for control.
STATEMENT OF EXPECTATIONS
As observed earlier, a firm establishes broad, longrange objectives.
The long-run objectives are pursued in successive, shortrun steps in the
future periods of time. A budget is a means of expressing goals to be
achieved in short-run in formal terms. It establishes a harmony between the
short-run goals and the long-run objective of the firm. The targets of expected
performance are late down when a budget is prepared. These targets are
directional and motivational in nature. They direct individual and group efforts
and operations towards and common goal. They motivate individuals since
expected targets are used to evaluated performance. A budget helps to clarify
the assumption underlying future goal. For example, if a sales target for the
next year is formulated, the budget gives details about the prices, quantities,
sales efforts, territories to be served and so on. The assumption underlying
the budgets or goals are based on a number of factors, such as economic
conditions, political and social environment, supply and demand force,
competition, consumers attitude, technological changes, etc. the short-term
goals and policies should be modified whenever these factors change and
should be incorporated in the budgeting system.
Communication:A more explicit statement of goals and means to achieve them does
not imply that goals will be accomplished. The people of an enterprise should
know what the goals are; they should understand and support them. It is the
function of too management to inform people at lower level of management
about the performance expected of them. Top management uses budgeting
as a vehicle to communicate goals or expectation of employees. A clear
written communication of goals through budget will help employees to
understand support and accomplish goals through a proper coordination or
goals and means.
Planning:Planning is essential to accomplish goals. It reduces uncertainty and

provides direction to the employees by determining the course of action in
advance. Budgeting compels management to plan the comprehensive and
coherent way. It is essentially a formalised planning of managements intended
action and desired result. Formalised planning indicates the responsibility of
management and provides on alternative to groping without direction. It
should realised that budgeting is not merely for casting although forecasts
from the basis of budgeting. Forecasting is the estimate of the future
environment within which the company will operate. Budgeting or planning, on
the other end, involves the determination of what should be done, how the
goals may be reached, and what individuals or unites are to assume
responsibility and be held accountable. Budgets provide and orderly way to
proceed to attain goals and also provide a time schedule for future actions to
produce measurable results.
Coordination:Coordination is a major function of budgeting. Coordination implies
striking a proper balance labour, material, and other resource so that the
goals are attained at a minimum cost. The activities of various departments
must remain in harmony with each other. For example, there should be
coordination between the activities of the production department and the sales
department. It is undesirable to produce a product which cannot be profitably
sold by the sales department. Likewise, the sales department should not
create demands for the products which cannot be produced by the production
department. Coordination between the purchase department and the
production department is also required. The production department should not
undertake to manufacture the product for the purchase department cannot
procure materials, and the purchase department should not accumulate that
material which will not be needed for production. The point to be emphasised
is that the activities of all departments must mesh. It is through budgeting that
the activities of various departments are coordinated, and unnecessary
wastage of resources and efforts is stopped. Budgeting requires each
manager to establish a proper rapport between the activities of his department

and that of other departments. Any imbalance in the relationship between the
department activities should be identified and corrected.
Control:Once a comprehensive and coordinated plan of action has been
developed with the cooperation and participation of employees and has been
communicated to them, each employee is required to implement plan and
accomplish goals of the enterprise. As observed earlier, the budget indicates
the performance expected of employees. A budget may, therefore, be used to
serve as an index for measuring employees performance. It, thus, acts as a
control device. The actual performance of employee is compared with the
budgeted performance to provide a feedback-whether or not employees
achieved the level of performance expected of them. The actual performance
should be adjudged favorable or unfavorable in the light of budgets and
changed conditions. The factors which underlie the preparation of budgets are
subject to change. Therefore, this point should be taken care of while
evaluating the performance of employees. Once the causes for the difference
between the actual and budgeted performance have been identified, a
corrective action should be initiated. It is noteworthy that may other criteria
such as past performance or the other workers doing the same job, exits to
measure employees performance; but budgets are frequently used for this
purpose because of their objectivity and clarity of goals and the means of
accomplishing goals. It should, however, be remembered that budget is just a
method of control it is not a control system in itself.
BUDGET ADMINISTRATION
It need be emphasised again that the budget preparation is a line
function, while the organisation and administration of budgeting is a staff
function. The line executives have the responsibility of deciding what the
plans or budgets are to be. It is not the function of the staff organisation to
decide what the plans are to be for areas of responsibility other then its own.
The primary responsibility of the staff organisation is to assist line executives
in preparing budgets by providing data and technical advice and coordinating
the budgets of various departments to from a master budget.
Budget Committee:A joint effort of all managers is needed to prepared budgets. All should
participate in setting goals, developing plans and formulating policies.
Generally the administration of budgeting may be delegated to a budget
committee. The members of budget committee consist of executive from each
department. Frequently members from production, sales and finance are
included in the budget committee. The budget director is the overall incharge
of the budget committee. The budget director may be the controller or the
chief accountant or an independent person. Sometimes the membership of
the budget committee may be confined to the budget director, the financial
manager, the managing director and the economist. Special budget
committee may also be formed such as a production budget committee or a
sales budget committee.
The major functions of the budget committee are:
a) To provide general guidelines for preparing budgets.
b) To offer technical advice.
c) To receive and review individual budgets.
d) To suggest changes.
e) To reconcile divergent activities.
f)
To coordinate budgetory activities.
g) To approve budgets with or without revisions.

h) To scrutinize budget reports later on.
The budget committee, in fact is a management committee. It brings to

gether activities of all departments in a coordinated way and controls those
activities in an effective manner. It should be remembered that the budget
committee has an advisory role only; but its advice is very significant and is
usually carried out by managers. As its first function, the committee decides
on general policies for the enterprise and review and supplies economic
information. It sees that all departments prepare budgets, provides them
technical advice, whenever needed and reviews individual budget estimates.
On reviewing budget estimates, it may suggest a modification. After
necessary revision, the budgets will be finally approved by the budget
committee. The committee also ensures that the budget goals of the
departments are not in conflict with the enterprise objectives. It coordinates
the budgetory activities of various departments and reconciles the divergent
views of the line executives. The budget committee also enforces control by
scrutinizing the budget reports and determining the responsibility for favorable
and unfavorable results.
Budget Director:The overall responsibility of the functions of the budget committee lies
on the budget director or the budget officer. He is responsible for drawing up a
detailed time-table for the preparation of budgets and making necessary
adjustments and calculations to consolidated individual budgets into a master
budget. The other functions of the budget director include:
a) Designing necessary procedures and forms.
b) Selling the idea of budgeting to all levels to management.
c) Educating the executives in the mechanics of budgeting.
d) Collecting, analysing and coordinating data.
e) Evaluating and reporting actual performance.
The budget director is usually the controller or the chief accountant. He
should be unbiased and objective in his approach. He is a staff expert, who
provides technical assistance to the line executives. He should keep good
rapport with line managers and should not enforce his advice upon them.
Budget Manual:It is usually desirable to express objectives, goals, procedures,

organisational structure and authority and responsibility in writing. These
matters are explicitly set out in a budget manual. The budget manual is a
written set of instructions and pertinent information that serves as a rule book
and a reference for the implementation of a budget programme. It tells what to
do, how to do it, when to do it and which form to do it on.
TYPES OF BUDGETS
All enterprises make plans some in a systematic and formal way, while
others in informal manner. However, they differ in their budgeting practices.
Generally, the large and medium firms have a comprehensive system of
budgeting they prepare budget for all of their important operations; but the
small firms and some large and medium firms do not have a comprehensive
system of budgeting they prepare budgets for of their operations. We have
emphasised previously that a comprehensive budgeting involves the
preparation of a master budget with a complete package of the component
budgets. The three important components of the master budget are:
1) Operation budgets,
2) Financial budgets, and
Operation Budgets:Operation budgets relate to the planning of the activities or operations
of the enterprise, such as production, sales and purchase. Operating budget
is composed of two parts;
a) A programme or activity budget and
b) A responsibility budget.
These represent two different ways of looking at the operations of the
enterprise; but arriving at the same results.
The programme or activity budget specifies the operations or functions
to be performed during the next year. One logical way to prepare this kind of
budget is to plan for each product the expected revenues and their associated
cost. The programme budget exhibits the expected future in an impersonal
manner and is helpful in ensuring balance among various operations or

functions an enterprise.
The responsibility budget specifies plans in terms of individual
responsibility. The basis purpose of this kind of budget is to achieve control by
comparing the actual performance of a responsible only for the controllable
activities. An individual should be involved to prepare those parts of the
operating budget which related to his are of responsibility.
These two ways of depicting the operating budget are significant,
because the programme budget is primarily a planning process while the
responsibility budget is a control device. The programme budget needs to
tailored to the organisation structure of the enterprise, but the responsibility
budget must be. Therefore, the plan or programme budget must be converted
into the control or responsibility budget before the actual implementation, and
communicated to the persons involved in the execution of the plan so that
they may precisely know what is expected of them.
There are two ways in which the operating budget may be prepared;
a) periodic budgeting and
b) continuous budgeting.
The method of periodic budgeting involves the preparation of the
budget for the forthcoming year without providing for a comprehensive
revision as the budget period passes. The budget period is generally dividing
into months; that the annual budget consists of the monthly estimates.
Continuous budgeting provides for a system of revising the budget for
the changing conditions continuously. The method involves the preparation of
a tentative annual budget with the provision that the month or quarter just
ended is dropped and a month or quarter in the future is added. Continuous
budgeting forces management constantly to think in concrete terms about its
short range planning.
In case of the stable firms, which can forecast with reasonable
precision, periodic budgeting can be used. Continuous budgeting would,
however be desirable in case of those firms which operate under uncertainties
of consumer demands and are exposed to a greater degree of cyclical
fluctuations.
Financial Budgets:Financial budgets are concerned with the financial implications of the
operating budgets the expected cash inflows and cash outflows, financial
position and the operating results. The important components of financial
budgets are: cash budget, pro forma balance sheet and income statement
and statements of changes in financial position.
Cash budget is the most important component of the financial budgets.
A good management would keep cash balance at optimum level; too little
cash endangers the liquidity of a company, and too much cash tends to impair
profitability. The major objective of the cash budget, therefore is to plan cash
in such a way that the idle cash in the most profitable manner.
In addition to a cash budget, it is also useful to prepare a project, or pro
forma, balance sheet and income statement. A cash budget reveals the
expected cash position of an enterprise while pro forma financial statements
give information as to the future assets, liabilities and income statement items.
The pro forma statements are prepared to identify the anticipated results of
the budgeted operations. The analysis of the present and past financial
statements indicates the direction of change in the financial position and
performance of the enterprise. The future can be planned to follow the past
direction or to chance it. The preparation of the cash budget and pro forma
statements compels management to look ahead and balance its policies and
activities.
The cause of the change in the financial position of an enterprise is
better revealed by the statement of change in financial position. The
statements have become quite significant now-a-day and is being prepared as
a third financial statement by the firms. The statement very clearly shows the
sources and use of the firms financial resources. The projected statement of
change in financial position can be prepared from the pro forma balance
sheets and income statement to show the effect of the budgeted operations
on the financial resources of the firm and, accordingly, the firm can plan its
policies to pay dividends, refund debt, acquire fixed assets, borrow loans or
issue share capital.
CLASSIFICATION OF BUDGET
The budget may be so broadly classified as Master Revenue Budget,
Operation Budget and Capital Budget.
Master Revenue Budget is based on the following functional Budget:I. Cash budget
II. Selling budget
III. Production budget
IV. Procurement budget
V. Plant utilization budget
VI. Cost of production budget
Material budget
Purchase budget
R & D cost budget
Labour cost budget
Plant utilization budget
Maintenance cost budget
Production overhead budget
VII. Selling and distribution cost budget
Capital Budget is based on the following elements

I. Source of finance
II. Capital cost estimates
III. Expenditure and phasing of expenditure
IV. Commitment and phasing of commitment
REVENUE BUDGET
A letter duly signed by Chief Manager (F&A) is sent to all departments
asking them to submit the likely requirements of the year, before specific date
(mostly last day of November). They will also have to send the justification
with adequate proof for the sum they demand. Concerned department while
submitting their proposals will also submit the report containing details of
expenditure done under the same head last year.
From all the information thus available, a preliminary budget formation
takes place. Subsequently discussions are held at various levels to check the
validity of the budget so formed and finally after passing through all checks it
is presented before the Board of Directors for final approval.
The above written procedure is not as simple as it seems and takes 4-5
months. The concerned department also has to ensure that it neither asks for
too much or too less amount for in first case it would be questionable for
excess amount lying unutilized, whereas in later case they would not be given
any additional amount to purchase in excess of budget.
CAPITAL BUDGET
The other major budget is capital budget. The formation of capital
budget is on the same pattern and follows same procedure as revenue
budget.
It is important to understand distinction between capital and revenue
expenditure. It benefits of an expenditure are expected to accrue for long
time; the expenditure is of capital nature. Any expenditure whose benefit
expires within the accounting year or expenditure that merely seeks to
maintain the business or keep assets in good working condition is revenue
expenditure.
On face of it, this distinction seems easy, but many of times it becomes
quite complicated to differentiate between these two expenditures.
Capital budget involves the planning to acquire worth while projects,
together with the timings of the estimated cost and cash flows of each project.
Such projects require large some of funds and have long term implications for
the firm. Capital budgets are difficult to prepare because estimate of the cash
flows over a long period have to be made which involve a grater degree of
uncertainty.
The capital budgets are generally prepared separately from the
operating budgets. In many companies, there is a committee separate from
the budget committee. To appropriate funds for capital investment projects. In
the capital budgeting, the profitability of each project has to be carefully
evaluated. Various techniques can be used to determine the profitableness
biases and capable of clearly indicating whether the project should be
accepted or not.
BUDGET FORMULATION PROCESS

Capital budgeting decisions are generally broken down into two levelsdepartmental levels and the organization vides level in any firm preparing a
capital budget. There are instances whose break-down process follows other
lines, like, e.g., geographically on the basis of a country or some world region
in the case of multinationals or intermediate levels are added between the
departmental and the organization level, however, two-level capital budgeting
procedure is found to be in vogue in most business enterprises.
Every department head usually determines the various possible capital
expenditures which are considered economically desirable for his department.
This is bound to result in number of conflicting proposals being mooted. To
illustrate, the production manager would like the space to be converted into a
canteen; and so on. Every department head is required to submit sound
arguments in support of his particular proposal and these may be so couched
as to bring out their anticipated contribution to efficiency, employee moral,
their welfare, etc.
It is quite observed that the three proposals cannot be effectively
reconciled within the space available and, therefore, top management has to
decide and select the alternative to be implemented. The important points to
note is that the proposal happen to be mutually exclusive inasmuch as, if one
is adopted, others are rejected. Such a difficult situation can be explained by
the example of the manager of the department store deciding to discontinue
the operations of its cafeteria and to allocate the space to childrens wear,
whereupon the managers of higher priced as well as low priced were file their
proposals for the space thus made available, but a decision either way on
these requests would depend upon the basic policy of the store regarding the
image it would like to have among its shoppers of children readymade
garments the stress it would like to place either on low price with bargain or
on high price with quality and the decision might get involved in a conflict
between two possible images.
On the other hand, competing proposals are not mutually exclusive in

the same manner as conflicting proposals are but they may not be equally
desirable from the point of view of the larger interests of the enterprise.
Therefore, it becomes necessary for the department head to rank the various
competing proposal in some order of printing before submitting his proposal to
top management.
For example, the factory manager may put in a proposal for the
installation of sophisticated equipment; and the accounting department stakes
its claim for a brand new computer to facilitate record-keeping operations.
Taken in isolation, every proposal seems worth implementing to the extent
that it would affect sizable savings in the present labour cost of the respective
departments.
It is at this stage that the financial manager would enter into the picture
with the object of bringing to bear a rational attitude on the consideration of
the competing proposals. He examines not only the prospective profit but also
the feasibility and desirability of making the proposed investments in terms of
the cost of funds.
Since the budget is a blue print of the desired plan of action to be
followed a given period care must be taken preparation of the budget.
Normally, Chief Executive is the Chairman of the Budget Committee who is
consultation with the Senior Executives takes an overall view of external and
internal factors of the organization and sets production sales target for the
budget period. Subsequently, the same is conveyed to respective department
who will prepare the functional budget based on the overall target fixed by the
chief executive or the Chairman of the Budget Committee. Once the functional
is prepared, the same is sent to the budget committee / Finance Director who
will review the same and put up to the Chief executive / Board of Directors for
their approval. Once the budget is approved by the competent authority it is a
Blue Print of desired plan of action according to which future action is to be
made. Thus budget is a two-tier communication starting from top to bottom
indication the basic target of production and sales for the organization and
from bottom to top indicating the detailed action plan to achieve the target for
the approval of the competent authority.
BUDGETORY CONTROL
Budget is an important instrument in controlling the course of action to
be followed for the given future period for the purpose of maximization of the
profit of an organization. But more preparation of budget will be show piece
unless the same is followed and actual activities are measured in terms of
budget to ensure that the actual is going on in correct directions. In fact,
budget may be used for control purposes and utility of budget depends on the
budgetory control process. The Institute of Cost of Management Accountants
of U.K. has defined budgetory control as The establishment of Department
Budgets relating to the responsibilities of the 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 its revision. Thus, a budgetory control system ensures
continuous comparison of actual results with the budgeted results and brings
out variances on a periodical basis say a month or a quarter. Deviations or
variances are required to be further analyses to locate the areas where there
is inefficiency or shortfall so that action may immediately be taken to avoid
wasteful losses/wastage.
ADVANCED BUDGETING TECHNIQUE - ZERO BASED BUDGETING

Zero based budgeting is a most advance budgeting technique where
the executives have to justify the funds require in the budget. They have also
to justify the existing activities. The zero based budgeting techniques implies
that the executive has to justify why he needs funds even for existing activities
that is to say he must start from zero level. Funds are very scarce and various
decision packages are to be kept in existing activities or other profitable
channel. Therefore, zero based budgeting ensures the following steps:I. Preparation of decision package
II. Ranking and selection of decision package
Although, this advanced budgeting technique has been adopted in
U.S.A. in sixties, it is still in its infant stage in India. Some of the private
sectors have accepted this but none of the public sector has yet adopted this
technique.
ADVANTAGES OF BUDGETING
To reiterate budgeting is a management tool; it is a way of managing.
Many benefits are derived from budgeting, although it is a means not an end
in itself. Budgeting is a feed forward process; it makes an evaluation of the
variables likely to affect future operations of the enterprise. It predicts future
with reasonable precision and removes uncertainty to a greater extent. The
following are some of the more significant advantages of budgeting:
1) Budgeting compels management to plan for future. The budgeting
process forces management to look ahead and become more efficient
in administering the business operations. It instills into managers the
habit of evaluating carefully their problems and related variables before
making any decisions.
2) Budgeting helps to coordinate, integrate and balance the efforts of
various departments in the light of the overall objectives of the
enterprise. This results in goal congruency and harmony among the
departments.
3) Budgeting facilitates control by providing definite expectations in the
planning phase that can be used as a frame of reference for judging
the subsequent performance. Undoubtedly, budgeted performance is
more relevant standard for comparison than past performance, since
past performance is based on historical factors which are constantly
changing.
4) Budgeting improves the quality of communication. The enterprise
objectives, budget goals, plans, authority and responsibility and
procedures to implement plans are clearly written and communicated
through budgets to all individuals in the enterprise. This results in better
understanding and harmonious relations among managers and
subordinates.
5) Budgeting helps to optimise the use of the firms resources capital and
human; it aids in directing the total efforts of the firm into the most
profitable channels.
6) Budgeting increases the moral and thus, the productivity of the

employees by seeking their meaningful participation in the formulation
of plans and policies, bringing a harmony between individual goals and
the enterprise objectives and by providing incentives to perform more
effectively.
7) Budgeting permits to focus management attention on significant
matters through budgetory reports; thus, it facilitates management by
exception
and
thereby
saves
management
time
and
energy
considerably.
8) Budgeting measures efficiency, permits management self evaluation
and indicates the progress in attaining the enterprise objectives.
PROBLEMS AND LIMITATIONS OF BUDGETING
Budgeting is a systemic approach to the solution of problems. But it is
not fool proof; it suffers from certain problems and limitations. The major
problems in developing a budgeting system are:
a) Seeking the support and involvement of all levels of management.
b) Developing meaningful forecasts and plans, specially the sales plan.
c) Educating all individuals to be involved in the budgeting process and
gaining their full participation.
d) Establishing realistic objectives, policies, procedures and standards of
desired performance.
e) Applying the budgeting system in a flexible manner.
f)
Maintaining effective follow-up procedures and adapting the budgeting

system whenever the circumstances change.
Management must consider the following limitations in using the out
getting system as a device to solve managerial problems:

1) Budgeting is not an exact science; its success hinges upon the
precision of estimates. Estimates are based on facts and managerial
judgment. Managerial judgment can suffer from subjectivism and
personal biases. The adequacy of budgeting thus depends upon the
adequacy of managerial judgment.
2) The installation of a perfect system of budgeting is not possible in a

short period. Business conditions change rapidly; therefore budgeting
programme should be continuously adapted. Budgeting has to be a
continuous exercise; it is a dynamic process. Management should not
loss patience; they should go on trying various techniques and
procedures in developing and using the budgeting system. Ultimately
they will achieve the success and reap the benefits of budgeting.
3) A skillfully prepared budgetary programme will not itself improve the
management of an enterprise unless it is properly implemented. For
the success of the budgetory programme, it is essential that it is
understood by all and that the managers and subordinates put
concerted efforts for accomplishing the budget goals. All persons in the
enterprise must have full involvement in the preparation and execution
of budgets, otherwise budgeting will not be effective.
4) Budgeting is a management tool a way of managing not the
management. The presence of a budgetory system should not make
management complacent. To get the best results of managing,
management should use budgeting with intelligence and foresight,
along
with
other
managerial
techniques.
Budgeting
assists
management; it cannot replace management.

5) Budgeting will be ineffective and expensive if it is unnecessarily
detailed and complicated. A budget should be precise in format and
simple to understand; it should be flexible, not rigid in application.
6) The purpose of budgeting will be defeated if carelessly set budget
goals conflict with enterprise objectives. This confuses means with the
and results. Budget goals are the definite targets to achieve the overall
enterprise objectives. They must be in harmony with enterprise aims.
7) Budgeting will hide inefficiencies instead of revealing them if a proper
evaluation system lacks. There should be continuous evaluation of the
actual performance. Standards also should be re-examined regularly.
8) Budgeting will lower morale and productivity if unrealistic targets are
set and if it is used as a pressure tactic. To some extent budgeting may
be used as a pressure device, but its extent must be carefully
determined.
BUDGETING IN KRIBHCO
As per the Buy laws of KRIBHCO, the annual budget is required to

be approved by the Board of Directors after the same is recommended by the
Executive Committee of the Board.
The budget preparation is made much ahead of the commencement of
the budget period based on the production and sales of the current year and
expected production and sales for the next period for which budget is required
to be made. High level committees under the Chairmanship of Managing
Director consider the various factors and fixes production and sales target as
well as and energy consumption factor for ammonia. Based on this, detailed
circular is issued by Head Office Finance department to all the departments,
Production, Personnel Sales etc. for preparation of detailed budget giving
justification for each item. The three main annual budgets prepared are as
under:I. Revenue Budget which is supported by Production Budget, Sales
Budget, Procurement Budget and Advance Budget
II. Project Capital Budget
III. Capital Budget for normal additions
After scrutinizing the various budget provisions and their justification
Head Office, Finance prepares the above budget and put up the same for
recommendation of the Executive
Committee and approval of the Board after the same is duly approval by the
Managing Director. Once the budget is approval by the Board, the is
circulated to divisional head for further circulation to functional head so that
the functional head must execute the work in terms of the budget. Budget
gives the overall limit through which each section or department is to act and
no additional expenditure can be made without further appropriation from the
competent authority. Along with the budget for the next year, revised budget of
the current year is also prepared and submitted to the Board for approval.
Head Office, Finance also prepares a report to the ministry as well as
Board of Directors indicating the budgeted profit, actual profits and variances.
BUDGET PROCESS IN KRIBHCO
REVENUE BUDGET PROCESS

BUDGET SUBMITTED
ALL DEPERTMENT
FINANCE & ASSETS DEPARTMENT
BOARD OF DIRECTORS
GENERAL MANAGER F&A
MANAGING DIRECTOR
HEAD OFFICE
CAPITAL BUDGET PROCESS

BUDGET SUBMITTED ALL DEPERTMENT
MS DEPARTMENT
HEAD OFFICE
MANAGING DIRECTOR
BOARD OF DIRECTORS
CONCLUSION
Planning and Budgeting is one of the important technique used in modern
management for effective utilization of scarce resources for achievement of
the objective of an enterprise. The objective of an enterprise is to maximize
the wealth of the owner i.e. shareholders. Various alternative courses of
actions are there to get the things done. The above techniques assist in
selection of desired course of action and application of the same effectively to
get the things done in most economical and desired manner.
From the above discussion, it would be observed that the budget is not
a appropriation of funds but is a control instrument according to which the
execution is to be made. It is also observed that in production side budget is
taken seriously and serious attempt is made in compilation of the budget.
However, in the marketing budget is not taken seriously resulting various in
factitious expenditure which is causing adverse criticism from the various
quarters. It is to be remembered that no expenditure particularly, expenditure
incurred for purchasing any assets or durable item can be incurred unless the
same is authorized in the budget. Whenever there is any proposal either for
purchase of material or a services is must be companied with the required
provision made in the budget. If the proposed expenditure exceeds the budget
provision, the proposal will not be considered unless fund is appropriated. It is
there fore, requested that the officers/staff in the marketing department must
taking interest in preparation and implementation of Budget.
BIBLIOGRAPHY
WWW.KRIBHCOSURAT.COM
WWW.KRIBHCO.NET
RESEARCH METHODOLOGY
~~ C R Kothri
FINANCIAL MANAGEMENT
~~ I M Pandey
PRINCIPLES OF MANAGEMENT ACCOUNTING
~~ Man Mohan
~~ S N Goyal
COST AND MANAGEMENT ACCOUNTING
~~ V K Saxena
~~ C D Vashist

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Analysis of Budgeting Controlling Procedure at KRIBHCO

AS THE PARTIAL FULFILMENT OF

Analysis of Budgeting Controlling Procedure at KRIBHCO

This project report is prepared during the vocational training

Theory of any subject is important but without its practical

applications of the theories studied. This training provides golden

Hence, this report is designed with the objective to gain

BUDGETING CONTROL PROCEDURE AT KRIBHCO

Department of Business Administration Bhavnagar University, Bhavnagar

Analysis of Budgeting Controlling Procedure at KRIBHCO

I am glad to express my profound sentiments of gratitude to all who

Mr. Mukesh Jani (Estate Dept.), Mr. Rajesh

Sampat (Stores Dept.), Mr. M. N. Patel Sr. Pvt. Secy. (HRD),who

Department of Business Administration Bhavnagar University, Bhavnagar

Analysis of Budgeting Controlling Procedure at KRIBHCO

Fertilizer industry in the service of farmers

Department of Business Administration Bhavnagar University, Bhavnagar

Analysis of Budgeting Controlling Procedure at KRIBHCO

FERTILIZER INDUSTRY IN THE SERVICE OF

THE INDIAN FERTILIZER INDUSTRY has come a

consumption remained very slow in the first 50

Department of Business Administration Bhavnagar University, Bhavnagar

Analysis of Budgeting Controlling Procedure at KRIBHCO

conducted a large number of demonstrations at the farmers fields. Even

Department of Business Administration Bhavnagar University, Bhavnagar

Analysis of Budgeting Controlling Procedure at KRIBHCO

INTRODUCTION TO FERTILIZER INDUSTRIES

NAGARJUNA FERTILISERS AND CHEMICALS LIMITED (NFCL)

which is involved in manufacturing a wide range of plant nutrients and low

KRIBHCO SHYAM FERTILIZERS LIMITED (KSFL)

Department of Business Administration Bhavnagar University, Bhavnagar

Analysis of Budgeting Controlling Procedure at KRIBHCO

OMAN INDIA FERTILISER COMPANY SAOC (OMIFCO)

plant known as OMIFCO of

THE ROLE OF THE FERTILIZER IN THE NATIONAL ECONOMY

Department of Business Administration Bhavnagar University, Bhavnagar

Analysis of Budgeting Controlling Procedure at KRIBHCO

OBJECTIVE OF THE PROJECT

The primary objective of the present study is to understand the

budgeting control used in this concern, with a view to find

Department of Business Administration Bhavnagar University, Bhavnagar

Analysis of Budgeting Controlling Procedure at KRIBHCO

Since then, it has excelled in

performance in all areas of its operations.

Department of Business Administration Bhavnagar University, Bhavnagar

Analysis of Budgeting Controlling Procedure at KRIBHCO

MISSION, VISION & OBJECTIVES

To act as a catalyst to agricultural and rural development by selecting,

Department of Business Administration Bhavnagar University, Bhavnagar

Analysis of Budgeting Controlling Procedure at KRIBHCO

To increase the Urea installed capacity, maintaining its market

To ensure optimum utilization of existing plant and machinery

To diversify into other core sectors like power, LNG terminal/port,

development and co-operative movement.

Department of Business Administration Bhavnagar University, Bhavnagar

Analysis of Budgeting Controlling Procedure at KRIBHCO

Red Rose House,

A: 8-10, Sector-1, NOIDA-201 301, District: Gautam Budh Nagar (UP).

: (0120) (253 46 13, 253 46 29-32, 253 45 64)

: (0120) (254 91 12-14)

: (0120) (253 71 13, 252 70 04)

HAZIRA PLANT SITE