A

PROJECT REPORT
ON
A STUDY OF CASH BUDGET
WITH SPECIAL REFERENCE TO
SHRI. DATTA SHETKARI SAHAKARI SAKHAR KARKHANA LTD, SHIROL.
SUBMITTED TO
SHIVAJI UNIVERSITY, KOLHAPUR
FOR THE PARTIAL FULLFILLMENT OF THE
MASTER OF BUSINESS ADMINISTRATION
BY
MISS MANISHA VYAKATRAO PATIL.
UNDER THE GUIDANCE OF
MS. ASHWINI Y. RASTE
THROUGH
THE DIRECTOR OF,

WOMENS EDUCATION SOCIETYS

ABASAHEB GARAWARE INSTITUTE OF MANAGEMENT STUDIES, SANGLI.

2013-2015

CERTIFICATE

This is to certify that the project report prepared & submitted by Miss Manisha
Vyakatrao Patil,titledA Study of Cash Budget with special reference to Shri. Datta
Shetkari Sahakari Sakhar Karkhana Ltd., Shiorl. is an original work.
She has not copied data from any of the project reports submitted to this
university previously.
The data collected by the student is an independent research work carried out by her
during her project report.

Ms. AshwiniY. Raste

Project Guide

Place: Sangli.
Date:

Mrs. Suhas C. Marathe.

Director

Declaration

I hereby declare that project report entitled on A Study of Cash Budgetwith

specialreference toShri. DattaShetkariSahakariSakharKarkhana Ltd., Shirol is an
independent research work carried out by me under the guidance of Ms.AshwiniRaste.
I have not copied from any report submitted earlier to Shivaji University, Kolhapur. I
understand that any such copy is liable to be punished in a way that the University
Authority deemed fit.

Place: Sangli.
Date:

(MissManishaVyaketraoPatil.)

Acknowledgement

I would like to take this opportunity to thank our Director Mrs. Suhas C. Marathe who
gave me this opportunity.
I am extremely obliged to the concerned people for giving me the information. I would
like to thanks Ms. AshiwiniRaste my Institute Guide andMr. B. G. Patilmy Industry
Guide who has assisted and helped me. My sincere thanks to all of them who spared their
precious time and provided the required information.
I express deep sense of obligation to my parents and my friends for their valuable time
and guidance that helped me in improving the quality of work.

Place: Sangli
Date:

(Miss.ManishaVyaketraoPatil)

PREFACE

The MBA degree is thought to be one of the most prestigious and sought after degrees in
the world. Student of MBA program study the theory and application of business and
management principles. This type of study equips students with knowledge that can be
applied to a variety of real world business situations.
Cash budget is the most significant tool to estimate future cash income and
expenditure. A cash budget is a summary statement of the firms expected cash inflows
and outflow over a projected time period. It gives information on the timing and
magnitude of expected cash flows and cash balances over the projected period. This
information helps the financial manager to determine the future cash needs of the firm,
plan for the financing of these needs and exercise control over the cash and liquidity of
the firm.
The cash budget is one of the most important and one of the last to be prepared. It is a
detailed estimate of the cash receipt from all sources and cash payment for all purpose
and the resultant
In accordance with the requirement of MBA course researcher have summer training
project on the topic of A Study of cash budget with the special reference to, Shri.
DattaShetkariSahakariSakharKarkhana Ltd., Shirol. The main objective of the
project was to make study of cash budget and give suggestion to improvement in practice
with respect to Shri. DattaShetkariSahakarSakharKarkhana Ltd., Shirol.

Executive Summary
The researcher has selected the project entitled A Study of Cash Budget with special
reference to Shri. DattaShetkariSahakariSakharKarkhana Limited, Shirol.
Chapter 1: Introduction to the Study & Methodology
The objectives of project work, importance of the cash budget, limitations &
methodology used to collect the data is given in this chapter.
1.1 Objectives of study:Budgets are the basis of performance evaluation in an organization. Hence the objective
is to examine the usefulness of budgets in the measurements of current performance as
against a budgeted of performance.
1) To understand how budgeting influence the formulation of business objective and
strategies.
2) To understand the receipt and payment of organization used to form the cash
budget.
3) To the study how the firm has utilized budgeting process in achieving the goal and
action of each department to accomplishoverall objective of the firm.
4) To examine the participation and improvementof all concern manager in the
process of budgeting.
5) To observe findings and give suggestions.
1.2 Scope and Importance of the study:The scope of the study extends to prepare the financial performance of
Shri.DattaShetakriSahakariSakharKarakhana Ltd., Shirol by studying the cash
budget. The data used for the study is of past three financial years that is from 2012 to
2014.
The cash budget is help in building the economic viability of company in all
departments. To understand the overall fiscal health of the company it is necessary to
know the adequate knowledge of the subject. Also, to know the financial condition of
the company cash budget is necessary.

1.3 Research Methodology:

1) Primary Data:The primary data used in the study is obtained by following sources.
i) Observation:In these, researcher has personally attempted to look around and see how things
are done and pass judgment as an individual. As per the requirementresearcher
used the direct and indirect observation of facts.
2) Secondary Data:-

i) Company records:The information mainly depends upon company records and reports.

1.4 Limitations of the study:The study covers data collection of three years I e 2012-2014.
1) Study is limited to the latest 3year period from 2011-12 2012-13 2013-14.
2) It is also experienced that most of the person individual are not positive to provide
the detail information &business statistics for the study.
3) Study is limited to Shri. DattaShetakariSakhariSakharKarkhana.Ltd, Shirol.
4) The study may not sufficient to forecasting & estimation of all aspects in entire
firm.

Chapter- 2.Introduction to Organization

The chapter consists of brief introduction of the organization.
Shri.DattaShetkariSahakariSakharKarkhanaLimited, Shirol is the leading co-operative
sugar factory. The brief information of factory comprising its products and services,
organization structure, achievements are included.
Chapter 3. Theoretical Background
Introduction and meaning of the cash budget, its definition, types & functions are
included by the researcher. Also its usefulness and limitations are mentioned.

Chapter 4.Data Analysis & Interpretation

The data analysis, interpretation & calculations are shown. This chapter gives the
comparative study of the cash budget of past three financial years i.e. from 2011-2014.
On the basis of the calculations of receipt and payment this chapter the findings are
given.
Chapter 5.FindingsandSuggestion
On the basis of findings the researcher has given the suggestions.
Findings:
The findings are given below on the basis of data analysis and interpretation:
The cash budget is prepared for the current financial year by considering the
previous financial year of. Organizationsincome is compared to the budgeted and
actual. In the financial year 2011-2012, the actual income is more than the
budgeted one. The variance is of 1.59%. Whereas the expenditure is decreased by
-8.05%. (Table No VII and VIII)
In thefinancial year 2012-2013 the actual income is decreased than the budgeted
one giving a negative variance of 6.56%. The actual expenditure is decreased in
the same year showing negative variance of 8.05%. (Table No VII and VIII)
For the financial year 2013-2014 the actual income is increased compared to
previous financial year but it is less than the budgeted one showing negative
variance of 2.73%. (Table No VII and VIII)
In financial year 2013-2014, the actual sugar sales have decreased as compared to
the other two years.(Table No I, III and V)
The sale from byproducts has always shown decrease in actual sales.Also there is
no income from Petrol pump in the year 2013-2014 (Table No I, III and V).
The purchases related to sugarcane are the same for consecutive two years and it
has decreased in the year 2013-2014. (Table no II, V and VI)
The salary and wages, interest on loan and depreciation are on the increasing side.
(Table no II, V and VI)
The administrative expenses in the year 2013-2014 are decreased. (Table no II, V
and VI)

Suggestions:
On the basis of findings, suggestions are as follows:
The factory should continue in preparing cash budget in the future.
It may be noted that the preparation of cash budget (as per receipt & payments method)
require forecast of different receipt and disbursement by the firm during each of the
interim period.
For improvement and the modifications it is suggested thatthe factory can carry out a
yearly or quarterly bases, receipt and payment analysis.
The factory can improve the financial position in future consequences.
The factory should increase their investments, to increase profit maximization.
It is suggested that factory try to reduce its operating costs, so that it will result in
increase their receipt.
The factory should have proper co-ordination between all the departments to make new
strategies.

Chapter 6. Conclusion
From the study, it can be concluded that:
It can be concluded that the budgetary control is treated as one of the better techniques
for minimizing cost and maximizing profit in the factory.

 A study of cash budget is very essential to understand the receipt and payment of the
factory where cash transactions are considered.
Here, the financial position of the factory is in good condition due to increase in the sugar
sales.
It indicates the budgeted and actual performance vary with each other for a particular
year but not for all the financial years.

As the finance department is the soul of any organization, budgetary control helps the
organization by making finance department effective.

INDEX
Chapter
No.

Contents

Introduction To The Study & Methodology

Page No.

1.
2.
3.
4.
5.
6.

Introduction of the Study

Objective of the Study
Importance of the Study
Scope of the Study
Limitation of the Study
Research Methodology

II

Introduction to Organization
1. Origin
2. Introduction to Organization
3. Area of Operation
4. Some features of the organization
5. Organization Chart

III

Theoretical Background

1.
2.
3.
4.
5.

Nature of the Cash budget

Introduction of the Cash Budget
Meaning and Definition of the Cash Budget
Importance and Uses of Cash budget
Advantages and Limitations of the Cash budget

Chapter
No.
6. Types of the Cash budget
IV

Contents

Data Analysis & Interpretation

1. Tables, Graphs and Interpretation

Findings, Suggestion
1. Findings
2. Suggestion

VI

Conclusion

Bibliography

10

Page No.

Annexure
1.
2.
3.
4.
5.

Balance Sheet
Profit and Loss Account
Joining Report
Progress Report
Guide Student Report