1.

INTRODUCTION
A budget is a very commonly used term. It is a widely practiced technique and most
of them use budgets in some way or the other. Budget is one of the emphasized terms in
efficient methods of planning and control. Budget in common parlance is understood as
planning for expenditure.
Budgetary control is the feedback link that allows us to monitor what actually
happened during the budget period, alerts us as to what happened that was not in
accordance with our plan, and then gives us indications as to what we should then do to
correct for what went wrong.
The establishment of budget relating the responsibilities of executives to the
requirements of a policy, and the continuous comparison of actual with budgeted results,
either to secure by individual action the objectives of the policy or to provide a basis for its
revision(CIMA 1991).
Budget is always expressed in terms of money and quantity. The technique of
budgeting is important application of management accounting. Budgets are set in large
business houses as well as in families. It is basically a statement of intentions of expected
income and expenses under certain anticipates operating conditions.
Example: The most common example of a budget is the family budget which is
prepared by the housewife after adjusting all expenses with the budget, almost every month
for deficit or surplus of the previous month.
In private organization, government organization, business and non-profit
organizations, the budgets are used as efficient techniques for planning and control. Plan is
a decision in advance about what to do? And who will do task? Control is a process of
checking whether the plans are beings adhered to or not. Budgets also act as a tool of
coordination among different activities in the organization.

OBJECTIVES OF THE STUDY

To study the various aspects and end analysis of the revenue budget in kesoram
cements ltd

To study the implications of budgetary control on the organization.

To study the revenue receipts and revenue expenditure of the organization to enable
the management in having a check on its working.

To study the usage of information technology (IT) in the process of budget and
budgetary control.

SCOPE OF THE STUDY

Kesoram cements To study budget in government companies like kesoram cements

Salaries

Materials & Suppliers

Machinery & Equipments
Office expenses
Under allocation of funds in kesoram to study the revenue budget in central
government with reference to
NEED OF THE STUDY

To study the existence system of revenue budget in kesoram cements and to suggest
further improvements.

To know the present system of revenue budget in government organization

To analyze the proposal for expansion or creating additional capacities

METHODOLOGY OF THE STUDY

First of all, the profit of the company is understood by acquiring with the basic
activities of the organization using past and present records. Secondly the internal analysis

is done to know the procedure for preparation of budget estimates. Budget estimates are
compared with the actual to compute the variance and perform budget.
Studied the usage of information technology in the process of budget and budgetary
control, analyzed how it can be modify for better performance.
SOURCES OF COLLECTION OF DATA
PRIMARY DATA
The data is collected through interaction with personnel who are working in finance and
accounts departments of the organization.

SECONDARY DATA
The data is collected from the company annual and other relevant records. Afterwards,
data is processed and analyzed by using appropriate analytical tools and technique so as to
examine efficiently.

2. REVIEW OF LITERATURE
DEFINITION OF BUDGET
According to the institute of cost and management accountants (ICMA), England, a budget
is a a financial and /or quantitative statement, prepared and approved prior to a definite
period of time, of the policy to be pursued during that period for the purpose of attending a
given objective. It may include income, expenditure and the employment of capital
A budget a written plan covering projected activities of affirm for a defined periodDickey
A budget is a plan of action to achieve stated objectives based on pre-determined series of
related assumptions:-Keller and Ferrari
According to Gordon and shilling law, a budget is a pre-determined detailed plan of
action developed and distributed as a guide to current operations and as a partial basic for
the subsequent evaluation of performances.
MEANING OF BUDGET
The chartered institute of management accountants of England and Wales has defined the
terms budget as A financial and/ or quantitative statement, prepared and approved prior
to a defined period of time of the policy to be pursed during that period for the purpose of
attaining a given objective. It may include income, expenditure and employment of
capital.
A budget is a detailed plan of operations for same specific future period. It is an estimate
prepared in advance of the period to which it applies.
It acts as a business barometer as it is a complete programme of activities of the business
for the period covered.
Budgets are usually, set up in the light of past experience after taking into account the
changes that are expected to occur in the future. It is, therefore, to be expected that actual
figures will correspond to the budget unless there is some important change in the
conditions. It must be the constant endeavor of the management to see that actual
performances do correspond with the budget concerned. Since budget assume the optimum

efficiency attainable, the system of budgetary control helps to increase efficiency and
enables the concern to achieve the targets which are considered attainable.
ESSENTIALS OF BUDGET

It is a statement.

It pertains to a future period.

It states action points that need to be followed to attain the objectives of the
organization.

It may be expressed in monetary units or in physical units or both.

It forms the basis for monitoring and control.

It is prepared in advances and is based on a future plan of actions.

It relates to a future period and is based on objectives to be obtained.

It is a statement expressed in monetary and/ or physical units prepared for the

implementation of policy formulated by the management.

CHARACTERISTICS OF BUDGET

A budget is concerned for a definite future period.

A budget is a written document.

A budget is a detailed plan of all the economic activities of a business.

All the departments of a business unit co-operate for the preparation of a business
budget.

Budget is a mean to achieve business and it is not an end in itself.

Budget needs to be updated, corrected and controlled every time when

circumstances changes. Therefore it is a continuous process.

Budget helps in planning, coordination and control.

Different types of budgets are prepared by industries according to business

requirements.

OBJECTIVES OF BUDGETING
The process of budgeting is initiated with the establishment of specific targets of
performance and is followed by executing plans to achieve such desired goals and form
time to time comparing actual results with the targets of performances/goals.
These target include both the overall business target as well as the specific targets for the
individual units within the business. Establishing specific target for future operations is a
part of the planning function of management, while executing actions to meet the goals is
the directing function of management.

A set of targets/goals is often necessary to guide and focus individual and group
actions.

For examples, students set academic goals, batmens runs, employee set career
goals, and business set financial goals. In the same way, budgeting supports the
planning process by requiring all organizational units to establish their targets for
the upcoming period. The targets, in turn, motivate individuals and groups to
perform at high levels.

Using the budget to communicate these expectations throughout the organization

has helped many a companies to reduce expenses during a severe business
recession.

Planning not only motivates employees to attain goals but also improves over all
decision making. During the planning phase of the budget process,

DIRECTING

Once the budget plans are in place, they can be used to direct and coordinate
operations in order to achieve the stated targets.

For example, your target to receive in an exam would result in certain

activities, such as reading books, completing assignments, participating in class,
and studying for exams. Such actions are fairly easy to direct and coordinate.

A business, however, is much more complex and requires more formal direction
and coordination.

The budget is one way to direct and coordinate business activities and units to
achieve stated target of performances.

The budgetary units of an organization are called responsibility centers. Each

responsibility center is led by a manager who has the authority over and
responsibility for the units performance.

CONTROLLING

As time passes, the actual performance of an operation can be compared against the
planned target. This provides prompt feedback to employees about their
performances. If necessary. Employees can use such feedback to adjust their
activities in the future.

For example, a salesperson may be given a quota to achieve Rs 10,00,000 in sales

for a particulars period. If actual sales are only Rs 8,75,000 the salesperson can use
this feedback about underperformance to change sales tactics and improve future
sales.

Feedback is not only helpful to individuals, but it can also redirect a complete
organization,

For example Mc Donalds corporation recently decided to reverse its growth plans
by closing stores and pulling out of a few countries as a result of reporting its first
quarterly loss since becoming a public company in 1965.

Comparing actual results to the plan also helps prevent unplanned expenditures. The
budget encourages employees to establish their spending priorities.

For example, committees in professional institutes have budget to support faculty

travel to conferences and meeting. The travel budget communicates to the officers
the upper limit in travel. Often, desired travel exceeds the budget. Thus the budget
requires the officers to priorities travel- related opportunities.

DEFINITION OF BUDGETARY CONTROL

According to ICMA England, budgetary control is the establishment of budget relating to
the responsibilities of executive to the requirements of a policy, and the continuous
comparison of actual with budgeted results, either to secure by individual action, the
objective of the policy or to provide basis for its revision.
In the words of J.Batty budgetary control is a system which uses budgets as means of
planning and controlling all aspects of producing and /or selling commodities and services.
To quote J.A. Scolt budgetary control is the system of management control and accounting
in which all operations are forecast and so far as possible planned ahead and the actual
results compared with the forecasted and the planed ones.
MEANING OF BUDGETARY CONTROL
The chartered institute of management accountants of England and Wales has defined the
terms budgetary control as budgetary control is the establishment of budgets relating to
the responsilibilities of executives of a policy and the continuous comparison of the actual
with the budgeted results, either to secure by individual action the objective of the policy or
to provide a basis for its revision.
It is the system of management control and accounting in which all the operations are
forecasted and planned in advance to the extent possible and the actual results compared
with the forecasted and planned ones.

BUDGETARY CONTROL INVOLVES

Establishment of budgets

Continuous comparison of actual with budgets for achievement of targets

Revisions of budgets after considering changed circumstances

Placing the responsibility for failure to achieve the budget targets.

THE SALIENT FEATURES

Determining the objectives to be achieved, over the budget period, and the policy or
policies that might be adopted for the achievement of these ends.

Determining the variety of activities that should be understood for the achievement
of the objectives.

Drawing up a plan or a scheme of operation in respect of each class of activity, in

physical as well as monetary terms for the full budget period and its parts.

Laying out a system of comparison of actual performances by each person, section

or department with the relevant budget and determination of causes for the
discrepancies, if any.

Ensuring that corrective action will be taken where the plan is not being achieved
and, if that not is possible, for the revision of the plan.

In brief it is a system to assist management in the allocation of responsibility and authority,

to provide it with aid for making, estimates and planning for the future and to facilitate the
analysis of the variation between estimates and actual performance.
In order that budgetary control may function may function effectively, it is necessary that
the concern should develop proper basis of measurement or standards with which to

evaluate the efficiency of operations it should have in operation a system of standards

costing.
Besides this, the organization of the concern should be so integrated that all lines of
authority and responsibility are laid, allocated and defined. This is essential since the
system of budgetary control postulates separation of functions and division of
responsibilities and thus requires that the organization shall be planned in such a manner
that everyone, from the managing director down to the shop foreman, will have his duties
properly defined.
ADVANTAGES OF BUDGETARY CONTROL

It defines the objectives and policies of the undertaking as a whole.

It helps in estimating the final needs of the concern and there by reduces the
possibility of over or under capitalization.

It secures planned allocation of productive facilities and resources for their best
utilization.

It facilitates management by exception, attention of management is attracted only

to areas requiring remedial action.

It facilities decentralization of authority and responsibilities in definite departmental

as well as individual authority and responsibilities in define terms. This prevents
tendencies of passing the blame or responsibility on someone else, when the
budgeted results are not achieved.

It results in effective coordinates of activities of different departments and develops

sound communication system through meeting and discussions. It promotes better
understanding of each others problems and develops team spirit within the
undertaking.

It helps in measuring the efficiency of departments and individuals budget provides

the yardsticks against which actual results can be compared.

It instills into the managers the habit of carefully evaluating their problems before
making any decision.

It helps in promoting a feeling of cost- continuous. Wasteful expenditure is avoided

and expenditure is avoided and expenditure beyond the budgeted figure is not
incurred without the prior approval of higher authority.

It increases the morale and the productivity of employees by seeking their effective
participation in the formulation of plants and policies. It brings about a harmony
between individual goals and goals of the enterprise.

Budgets create the necessary condition for the setting up one of standards costing.

Budgetary control reduces delays as budgets, once adopted; operate as a sanction to

proceed. There is no need to wait for further clearances.

Budgetary control provides the basis for the introduction of incentive remuneration
plans based on performances.

It serves as a basis for future policy and also for reviewing current policy in the
experiences. It helpful in reviewing current trends in the business and in
determining future policy of the business.

It serves as internal audit by continuous scrutiny of departmental results and costs.

When there is budgetary control, seasonal and cyclical fluctuations in the business
can be anticipated n advances and news product lines may be taken to maintain the
level of production. Thus, budgeting assists in the stabilization of industry.

LIMITATIONS OF BUDGETARY CONTROL

Budgets are essentially based on forecasted and estimates whose accuracy depends
upon the correctness of facts and good judgment. Thus budgets are a matter of
opinion rather than a scientific tool. This reduces the reliability of budgets.

There is danger of over budgeting, spelling out major expenses in detail. This
deprives the managers of freedom of action in managing their departments.

Under the fast changing business condition and government policies, budgeting
becomes a difficult task. Budgets may become outdated even before they are
approved.

For the success of budgetary program, all levels of management should take active
interest in its execution. This is usually not the case.

Budgeting may result in every executive just trying to achieve the budgeted targets.
Thus, budgets serve as constraints on managerial initiative.

Preparation and operational of budgetary program is expensive. Hence, small

concern may not be able to afford having a system of budgetary control

Budgetary control may lead to conflicts among functional executives, because every
executive may try to get a larger share of budgetary allocation, shirk responsibility
and blame other for pit-falls.

Budgetary tends to bring rigidity in control. Budgets, once made, become

irrevocable.

Budgeting may lower the morale and productivity of personnel, if unrealistic targets
are set and if budget is used as a pressure tool.

Budgeting may hide inefficiencies instead of exposing them, if there is no

evaluation system. Unless there is continuous evaluation of the actual performances,
budgeting cannot be a success.

Budgets will become a mere routine and lose their dynamic unless the budget
program is revised from time to time, in tune with the changes in business condition
and management policies. However, frequent revisions may be a costly affair.

OBJECTIVES OF BUDGETARY CONTROL SYSTEM

Portraying with precision the overall aims of the business and determining
targets of performances for each section or department of the business.

Laying down the responsibilities of each of the executives and other personnel
so that everyone knows what is expected of him and how he will be judged.

Budgetary control is one of the few ways in which an objective assessment of

executives or department is possible.

Providing a basis for the comparison of actual performances with the

predetermined targets and investigation of deviation, if any, of actual
performances and expenses from the budgeted figures. This naturally helps in
adopting correctives measures.

Ensuring the best use of all available resources to maximum profit or

production. Subject to the limiting factors. Since budgets cannot be properly
drawn up without considering all aspects usually there is good coordination
when a system of budgetary control operates.

Coordinating the various activities of the business and centralizing control and
yet enabling management to decentralize responsibility and delegate authority in
the overall interest of the business.

Engendering a spirit of careful forethought, assessment of what is possible and

an attempt at it. It leads to dynamism without recklessness. Of course, much
depends on the objectives of the firms and the vigor of its management.

Providing a basis for revision of current and future policies.

Drawing up long range plans with a fair measures of accuracy

Providing a yardstick against which actual results can be compared.

WORKING OF A BUDGETARY CONTROL SYSTEM

The responsibility for successfully introducing and implementing a budgetary control
system rests with the budget committee acting through the budget officer. The budget
committee would be compared of all functional heads and members from the boards to
preside over and guide the deliberations.
THE MAIN RESPONSIBILITIES OF THE BUDGET OFFICERS

To assist in the preparation of the various budgets by coordinating the work of the
accounts departments which is normally responsible to compile the budgets- with
the relevant functional departments like sales, production, plant maintenance etc.

To forward the budget to the individual who are responsible to adhere to them and
to guide them in overcoming any practical difficulties in its working

To prepare the periodical budget reports for circulation to the individuals concerned.

To follow up action to be taken on the budget reports.

To prepare an overall budget working report for discussion at the budget committee
meeting and to ensure follow-up on the lines of action suggested by the committee.

To prepare periodical reports for the board meeting comparing the budgeted profit
and loss account and the balance sheet with the actual.

Results attained.

It is necessary that every budget should be thoroughly discussed with the functional head
before it is finalized.
It is the duty of the budget officer to see that the periodical budget reports are supplied to
the recipients at frequent intervals as far as possible.
The efficiency of the budget officer, and through him of the budget committee, will be
judged more by the smooth working of the system and the agreement between the actual
figures and the budgeted figures.
Budgets are primarily an incentive and challenges for a better performances, it is up to the
budget officers to see that attention of the different functional heads is drawn to it face the
challenge in a successful manner.
COMPONENTS OF BUDGETARY CONTROL SYSTEM
The policy of a business for a defined period is represented by the master budget the details
of which are given in a number of individual budgets called functional budgets. These
functional budgets are broadly grouped under the following heads.

Physical budgets: those budgets which contains information in terms of physical units
about sales, production etc. for example quantity of sales, quantity of production,
inventories and manpower budgets and physical budgets.

Cost budgets: Budgets which provides cost information in respect of the manufacturing,
selling, administration etc. for example, manufacturing costs, selling costs,
administration cost, and research and development cost budgets

Profit budget: a budget which enables in the ascertainment of profit, for example, sales
budget, profit and loss budget, etc.

.FUNCTION OF BUDGET SECTION

Issue of budget circular.

Controller of data relating to actual receipts and expenditure of previous years.

Preparation of various supporting breakup statements of receipts and expenditure.

Compilation of estimates of receipts and expenditure received from various

authorities.

Compilation of budget estimates in respect of receipts, revenue expenditure, capital

expenditure, loans and advances, provident fund etc.

Monthly / quarterly phasing of receipts and expenditure for periodical review and
financial control.

Preparation of monthly reports of receipts and expenditure with supportive breakup

statements.

Review of receipts and expenditure for final grand of expenditure and surrender of
funds, if any.

Intimation of progress of expenditure in respect of capital project to the concerned

project coordinators.

Correspondence with concerned authorities in respect of all of the above.

PREPARATION OF BUDGET
In kesoram cements the budget of the organization is to be prepared for the following
a details estimate of:

Receipts

Expenditure on revenue account.

The expenditure on capital account.

The budget estimates shall give the anticipated receipts and expenditure for the
ensuring financial year, under each major, sub and detailed heads of accounts.
BUDGET
This consists of expenditure on capital proposed by Kesoram cements, the capital budget is
prepared based on the sanctioned cost of the project approved in the five-year plan outlay.
Capital payments consist of capital expenditure on acquisition of assets like land, buildings,
machinery, equipment and other establishment charges. For capital projects the approval of
the planning commission has to be obtained before execution of any ongoing new project.
The budget estimates under the capital head will have to be made separately for each
project according to the aims and objectives of the projects and necessary requirements for
the same. The allocation of funds will finally have to b approved by the implementation and
available of funds.
REVENUE EXPENDITURE BUDGET
Revenue expenditure budget consists of the expenditure in connection with operating the
plans. It consists of the expenditure relating to the following items;

Purchases of raw materials

Purchases of consumables

Purchases of spares and tools

Establishment charges

Contingent expenditure

Cost of fuel and maintenance of vehicles

Depreciation

Interest

BUDGET FORMULATION AND IMPLEMENTATION RULES

AS PER GFR-2005.

RULE 42. FINANCIAL YEAR- financial year of the government shall commence
on the 1st day of April of each year and end on the 31 st day of March of the
following year.

RULE 43. PRESENTATION OF BUDGET TO PARLIAMENT in accordance

with the provisions of Article 112(1) of the constitution, the finance minister shall
arrange to lay before both the houses of parliament, an annual financial statement
also known as the BUDGET showing the estimated receipts and expenditure of the
central government in respect of a financial year, before the commencement of that
year.

RULE 43.(2) A separate statement of estimated receipts and expenditure relating to

the railways shall similarly be presented to the parliament by the ministry of
railways in advances of the annual financial statement. As the receipts and
expenditure of the railways are the receipts and expenditure of the government, the
figure relating to these are included in lump in the annual financial statement.

RULE 43.(3) The provision for preparation, formulation and submission of budget
to the parliament are contained in articles 112 to 116 of the constitution of India.

RULE 43.(4) The ministry of finance, budget division, shall issue guidelines for
preparation of budget estimates from time to time. All the ministries shall comply in
full with these guidelines

RULE 44. The budget shall contain the following:-

1. Estimates of all revenue expected to be raised during the financial year to which
the budget relates.

2. Estimates of all expenditures for each programme and project in that financial
year.

3. Estimates of all interest and debt serving charges and any repayments on loans in
that financial year.

4. Any other information as may be prescribed.

RULE45. RECEIPT ESTIMATES- The detailed estimates of the receipts will be

prepared by the estimating authorities separately for each major head of account in
the prescribed form. For each major head, the estimating authority will give the
break up on the minor/sub-head wise estimates along with actual of the past three
years .where necessary, item-wise break up should also be furnished so as to
highlight individual item-wise break up should also be furnished so as to highlight
individual items of significance. Any major variation in estimates with references to
past actual or/ and budget estimates will be supported by cogent reasons.

RULE 46.(1) EXPENDITURE ESTIMATES- The expenditure estimates shall

show separately the sums required to meet the expenditure charged on the
consolidated fund under article 112(3) of the constitution and sums required to meet
other expenditure for which a vote of the Lok Sabha is required under article 113(2)
of the constitution.

RULE 47.(1) DEMAND FOR GRANTS-The estimates for expenditure for which
vote of Lok Sabha is required shall be in form of demand for grants.

RULE 48.(1) FORM OF ANNUAL FINANCIAL STATEMENT AND

DEMANDS GRANTS - The form of the annual financial statement and demands
for grants shall be laid down by the finance ministry and no alternation of
arrangement or classification shall be made without the approval of that ministry.

RULE 49.(1) ACCEPTANCE AND INCLUSION OF ESTIMATES-The

estimates of receipts and expenditure of each ministry/ department will be
scrutinized in the budget division of the ministry of finance. Finance secretary or

secretary may hold meeting with secretaries or financial advisers administrative

ministries or departments to discus the totality of the requirements of funds for
various programmers and schemes, along with receipts of the ministries or
departments.

RULE 51. COMMUNICATION AND DISTRIBUTION OF GRANTS AND

APPROPRIATIONS- after the appropriation bill relating to budget is passed the
ministry of finance shall comminicate budget provision to the ministries /
department which, in turn, shall distribute the same to their subordinate formations.
The distribution so made shall also be communicated to the respective pay and
accounts officers who shall exercise check against the allocation to each subordinate authority.

CONTROL OF EXPENDITURE AGAINST BUDGET:

RULE 52.(1) RESPONSIBILITY FOR CONTROL OF EXPENDITUREdepartments of the central government shall be responsible for the control of
expenditure against the sanctioned grants and appropriations placed at their
disposal. The control shall be exercised through the heads of departments and other
controlling officers, if any, and disbursing officers subordinate to them.

RULE 56.(1) SURRENDER OF SAVING- department of the central government

shall surrender to the finance ministry, by the dates prescribed by that ministry
before the close of the financial year, all the anticipated saving noticed in the grants
or appropriation controlled by them. The finance ministry shall communicate the
acceptance of such surrenders as are accepted by them to the accounts officers,
before the close of the year. The funds provided during the financial year and not
utilized before the close of the financial year shall stand lapsed at the close of the
financial year.

RULE 58.(1) ADDITIONAL ALLOTMENT FOR EXCESS EXPENDITURE

a subordinate authority incurring the expenditure will be responsible for seeing that
the allotment placed at its disposal is not exceeded. Where any excess over the
allotment is apprehended, the subordinate authority should obtain additional

allotment incurring the excess expenditure. For this purposes, the authorities
incurring expenditures should maintain a liability register in form GFR 6.

RULE 60 SUPPLEMENTARY GRANTS- if saving are not available within the

grant to which the payment is required to be debited or if the expenditures is on
new service or new instrument of service not provided in the budget, necessary
supplementary grant or appropriation in accordance with article 115(1) of the
constitution should be obtained before payment is authorized.

RULE 62. INEVITABLE PAYMENTS

(i) Subject to the provision of articles 114(3) of the constitution, money
indisputably payable by governmental shall not ordinarily be left unpaid.

(ii). Suitable provision for anticipated liabilities should invariably be made in

demands for grants to be placed before parliament.

INDUSTRY PROFILE&COMPANY PROFILE

INDUSTRY PROFILE
In the most general sense of the word, a cement is a binder, a substance which sets and hardens
independently, and can bind other materials together. The word "cement" traces to the Romans, who
used the term "opus caementicium" to describe masonry which resembled concrete and was made
from crushed rock with burnt lime as binder. The volcanic ash and pulverized brick additives which
were added to the burnt lime to obtain a hydraulic binder were later referred to as cementum,
cimentum, cment and cement. Cements used in construction are characterized as hydraulic or
non-hydraulic.
The most important use of cement is the production of mortar and concretethe bonding of natural
or artificial aggregates to form a strong building material which is durable in the face of normal
environmental effects.
Concrete should not be confused with cement because the term cement refers only to the dry
powder substance used to bind the aggregate materials of concrete. Upon the addition of water
and/or additives the cement mixture is referred to as concrete, especially if aggregates have been
added.
It is uncertain where it was first discovered that a combination of hydrated non-hydraulic lime and a
pozzolan produces a hydraulic mixture (see also: Pozzolanic reaction), but concrete made from such
mixtures was first used on a large scale by Roman engineers.They used both natural pozzolans
(trass or pumice) and artificial pozzolans (ground brick or pottery) in these concretes. Many
excellent examples of structures made from these concretes are still standing, notably the huge

monolithic dome of the Pantheon in Rome and the massive Baths of Caracalla. The vast system of
Roman aqueducts also made extensive use of hydraulic cement. The use of structural concrete
disappeared in medieval Europe, although weak pozzolanic concretes continued to be used as a core
fill in stone walls and columns.

Modern cement
Modern hydraulic cements began to be developed from the start of the Industrial Revolution
(around 1800), driven by three main needs:
Hydraulic renders for finishing brick buildings in wet climates
Hydraulic mortars for masonry construction of harbor works etc, in contact with sea water.
Development of strong concretes.
In Britain particularly, good quality building stone became ever more expensive during a period of
rapid growth, and it became a common practice to construct prestige buildings from the new
industrial bricks, and to finish them with a stucco to imitate stone. Hydraulic limes were favored for
this, but the need for a fast set time encouraged the development of new cements. Most famous was
Parker's "Roman cement." This was developed by James Parker in the 1780s, and finally patented in
1796. It was, in fact, nothing like any material used by the Romans, but was a "Natural cement"
made by burning septaria - nodules that are found in certain clay deposits, and that contain both clay
minerals and calcium carbonate. The burnt nodules were ground to a fine powder. This product,
made into a mortar with sand, set in 515 minutes. The success of "Roman Cement" led other
manufacturers to develop rival products by burning artificial mixtures of clay and chalk.
John Smeaton made an important contribution to the development of cements when he was
planning the construction of the third Eddystone Lighthouse (1755-9) in the English Channel. He
needed a hydraulic mortar that would set and develop some strength in the twelve hour period
between successive high tides. He performed an exhaustive market research on the available

hydraulic limes, visiting their production sites, and noted that the "hydraulicity" of the lime was
directly related to the clay content of the limestone from which it was made. Smeaton was a civil
engineer by profession, and took the idea no further. Apparently unaware of Smeaton's work, the
same principle was identified by Louis Vicat in the first decade of the nineteenth century. Vicat went
on to devise a method of combining chalk and clay into an intimate mixture, and, burning this,
produced an "artificial cement" in 1817. James Frost,orking in Britain, produced what he called
"British cement" in a similar manner around the same time, but did not obtain a patent until 1822. In
1824, Joseph Aspdin patented a similar material, which he called Portland cement, because the
render made from it was in color similar to the prestigious Portland stone.
All the above products could not compete with lime/pozzolan concretes because of fast-setting
(giving insufficient time for placement) and low early strengths (requiring a delay of many weeks
before formwork could be removed). Hydraulic limes, "natural" cements and "artificial" cements all
rely upon their belite content for strength development. Belite develops strength slowly. Because
they were burned at temperatures below 1250 C, they contained no alite, which is responsible for
early strength in modern cements. The first cement to consistently contain alite was made by Joseph
Aspdin's son William in the early 1840s. This was what we call today "modern" Portland cement.
Because of the air of mystery with which William Aspdin surrounded his product, others (e.g. Vicat
and I C Johnson) have claimed precedence in this invention, but recent analysis of both his concrete
and raw cement have shown that William Aspdin's product made at Northfleet, Kent was a true
alite-based cement. However, Aspdin's methods were "rule-of-thumb": Vicat is responsible for
establishing the chemical basis of these cements, and Johnson established the importance of
sintering the mix in the kiln.
William Aspdin's innovation was counter-intuitive for manufacturers of "artificial cements",
because they required more lime in the mix (a problem for his father), because they required a much
higher kiln temperature (and therefore more fuel) and because the resulting clinker was very hard
and rapidly wore down the millstones which were the only available grinding technology of the
time. Manufacturing costs were therefore considerably higher, but the product set reasonably slowly
and developed strength quickly, thus opening up a market for use in concrete. The use of concrete in
construction grew rapidly from 1850 onwards, and was soon the dominant use for cements. Thus
Portland cement began its predominant role. it is made from water and sand
Types of modern cement
Portland cement
Cement is made by heating limestone (calcium carbonate), with small quantities of other materials
(such as clay) to 1450C in a kiln, in a process known as calcination, whereby a molecule of carbon

dioxide is liberated from the calcium carbonate to form calcium oxide, or lime, which is then
blended with the other materials that have been included in the mix . The resulting hard substance,
called 'clinker', is then ground with a small amount of gypsum into a powder to make 'Ordinary
Portland Cement', the most commonly used type of cement (often referred to as OPC).
Portland cement is a basic ingredient of concrete, mortar and most non-specialitygrout. The most
common use for Portland cement is in the production of concrete. Concrete is a composite material
consisting of aggregate (gravel and sand), cement, and water. As a construction material, concrete
can be cast in almost any shape desired, and once hardened, can become a structural (load bearing)
element. Portland cement may be gray or white.
Portland cement blends
These are often available as inter-ground mixtures from cement manufacturers, but similar
formulations are often also mixed from the ground components at the concrete mixing plant.
Portland blastfurnace cement contains up to 70% ground granulated blast furnace slag, with the
rest Portland clinker and a little gypsum. All compositions produce high ultimate strength, but as
slag content is increased, early strength is reduced, while sulfate resistance increases and heat
evolution diminishes. Used as an economic alternative to Portland sulfate-resisting and low-heat
cements.
Portland flyash cement contains up to 30% fly ash. The fly ash is pozzolanic, so that ultimate
strength is maintained. Because fly ash addition allows a lower concrete water content, early
strength can also be maintained. Where good quality cheap fly ash is available, this can be an
economic alternative to ordinary Portland cement.
Portland pozzolan cement includes fly ash cement, since fly ash is a pozzolan, but also includes
cements made from other natural or artificial pozzolans. In countries where volcanic ashes are
available (e.g. Italy, Chile, Mexico, the Philippines) these cements are often the most common form
in use.
Portland silica fume cement. Addition of silica fume can yield exceptionally high strengths, and
cements containing 5-20% silica fume are occasionally produced. However, silica fume is more
usually added to Portland cement at the concrete mixer.
Masonry cements are used for preparing bricklaying mortars and stuccos, and must not be used in
concrete. They are usually complex proprietary formulations containing Portland clinker and a
number of other ingredients that may include limestone, hydrated lime, air entrainers, retarders,
waterproofers and coloring agents. They are formulated to yield workable mortars that allow rapid

and consistent masonry work. Subtle variations of Masonry cement in the US are Plastic Cements
and Stucco Cements. These are designed to produce controlled bond with masonry blocks.
Expansive cements contain, in addition to Portland clinker, expansive clinkers (usually
sulfoaluminate clinkers), and are designed to offset the effects of drying shrinkage that is normally
encountered with hydraulic cements. This allows large floor slabs (up to 60 m square) to be
prepared without contraction joints.
White blended cements may be made using white clinker and white supplementary materials such
as high-purity metakaolin.
Colored cements are used for decorative purposes. In some standards, the addition of pigments to
produce "colored Portland cement" is allowed. In other standards (e.g. ASTM), pigments are not
allowed constituents of Portland cement, and colored cements are sold as "blended hydraulic
cements".
Very finely ground cements are made from mixtures of cement with sand or with slag or other
pozzolan type minerals which are extremely finely ground together. Such cements can have the
same physical characteristics as normal cement but with 50% less cement particularly due to their
increased surface area for the chemical reaction. Even with intensive grinding they can use up to
50% less energy to fabricate than ordinary Portland cements.
Non-Portland hydraulic cements
Pozzolan-lime cements. Mixtures of ground pozzolan and lime are the cements used by the
Romans, and are to be found in Roman structures still standing (e.g. the Pantheon in Rome). They
develop strength slowly, but their ultimate strength can be very high. The hydration products that
produce strength are essentially the same as those produced by Portland cement.
Slag-lime cements.Ground granulated blast furnace slag is not hydraulic on its own, but is
"activated" by addition of alkalis, most economically using lime. They are similar to pozzolan lime
cements in their properties. Only granulated slag (i.e. water-quenched, glassy slag) is effective as a
cement component.
Supersulfated cements. These contain about 80% ground granulated blast furnace slag, 15%
gypsum or anhydrite and a little Portland clinker or lime as an activator. They produce strength by
formation of ettringite, with strength growth similar to a slow Portland cement. They exhibit good
resistance to aggressive agents, including sulfate.
Calcium aluminate cements are hydraulic cements made primarily from limestone and bauxite.
The active ingredients are monocalcium aluminate CaAl 2O4 (CaO Al2O3 or CA in Cement chemist

notation, CCN) and mayenite Ca12Al14O33 (12 CaO 7 Al2O3 , or C12A7 in CCN). Strength forms by
hydration to calcium aluminate hydrates. They are well-adapted for use in refractory (hightemperature resistant) concretes, e.g. for furnace linings.
Calcium sulfoaluminate cements are made from clinkers that include ye'elimite (Ca4(AlO2)6SO4 or
C4A3

in Cement chemist's notation) as a primary phase. They are used in expansive cements, in

ultra-high early strength cements, and in "low-energy" cements. Hydration produces ettringite, and
specialized physical properties (such as expansion or rapid reaction) are obtained by adjustment of
the availability of calcium and sulfate ions. Their use as a low-energy alternative to Portland cement
has been pioneered in China, where several million tonnes per year are produced. Energy
requirements are lower because of the lower kiln temperatures required for reaction, and the lower
amount of limestone (which must be endothermicallydecarbonated) in the mix. In addition, the
lower limestone content and lower fuel consumption leads to a CO 2 emission around half that
associated with Portland clinker. However, SO2 emissions are usually significantly higher.
"Natural" Cements correspond to certain cements of the pre-Portland era, produced by burning
argillaceous limestones at moderate temperatures. The level of clay components in the limestone
(around 30-35%) is such that large amounts of belite (the low-early strength, high-late strength
mineral in Portland cement) are formed without the formation of excessive amounts of free lime. As
with any natural material, such cements have highly variable properties.

COMPANY PROFILE
Kesoram Cement Industry is one of the leading manufacturer of cement in India. It is a day process
cement Plant. The plant capacity is 8.26 lakh tones per annum It is located at Basanthnagar in
Karimnagar district of Andhra Pradesh. Basanthnagar is 8 km away from the Ramagundram
Railway station, linking Madras to New Delhi. The Chairman of the Company is syt. B.K.Birla,
HISTORY:
The first unit at Basanthnagar with a capacity of 2.1 lakh tones per annum incorporating
humble suspension preheated system was commissioner during the year 1969. The second unit was
setup in year 1971 with a capacity of 2.1 lakh tones per annum went on stream in the year 1978. The
coal for this company is being supplied from SingereniColleries and the power is obtained from
APSEB. The power demand for the factory is about 21 MW. Kesoram has got 2 DG sets of 4 MW
each installed in the year 1987.
Kesoram Cement has setup a 15 KW captor power plant to facilitate for uninterrupted
power supply for manufacturing of cement at 24th august 1997 per hour 12 mw, actual power is 15
mw.
The Company was incorporated on 18th October, 1919 under the Indian Companies Act, 1913, in
the name and style of Kesoram Cotton Mills Ltd. It had a Textile Mill at 42, Garden Reach Road,
Calcutta 700 024. The name of the Company was changed to Kesoram Industries & Cotton Mills
Ltd. on 30th

August, 1961 and the same was further changed to Kesoram Industries Limited on 9th July, 1986.
The said Textile Mill at Garden Reach Road was eventually demerged into a separate company.

The First Plant for manufacturing of rayon yarn was established at Tribeni, District Hooghly, West
Bengal and the same was commissioned in December, 1959 and the second plant was
commissioned in the year 1962 enabling it to manufacture 4,635 metric tons per annum (mtpa) of
rayon yarn. This Unit has 6,500 metric tons per annum (mtpa) capacity as on 31.3.2009.
The plant for manufacturing of transparent paper was also set up at the same location at Tribeni,
District Hooghly, West Bengal, in June, 1961. It has the annual capacity to manufacture 3,600
metric tons per annum (mtpa) of transparent Paper.
The Company diversified into manufacturing of cast iron spun pipes and pipe fittings at Bansberia,
District Hooghly, West Bengal, with a production capacity of 45,000 metric tons per annum (mtpa)
of cast iron spun pipes and pipe fittings in December, 1964.
The Company subsequently diversified into the manufacturing of Cement and in 1969 established
its first cement plant under the name 'Kesoram Cement' at Basantnagar, Dist. Karimnagar (Andhra
Pradesh) and to take advantage of favourable market conditions, in 1986 another cement plant,
known as 'Vasavadatta Cement', was commissioned by it at Sedam, Dist.
Gulbarga (Karnataka). The cement manufacturing capacities at both the plants were augmented
from time to time according to the market conditions and as on 31.3.2009 Kesoram Cement and
Vasavadatta Cement have annual cement manufacturing capacities of 1.5 million metric tons and
4.1 million metric tons respectively.
The Company in March 1992, commissioned a plant at Balasore known as Birla Tyres in Orissa, for
manufacturing of 10 lac MT p.a. automotive tyres and tubes in the first phase in collaboration with
Pirelli Ltd., U.K., a subsidiary company of the world famous Pirelli Group of Italy - a pioneer in
production and development of automotive tyres in the world.
The capacity at the said plant was further augmented during the year by 19 MT per day aggregating
to 271 MT per day production facility. The Greenfield Project of 257 MT per day capacity in the
State of Uttarakhand with a capex of about Rs.760 crores commenced the commercial production in
phases during the financial year 2008-09.The Company as on 31.3.2009 had the manufacturing
capacities of 3.71 million tyres, 2.95 million tubes and 1.53 million flaps per annum in the Plants
including at Uttarakhand Plant.
It has small manufacturing capacities of various Chemicals at Kharda in the State of West Bengal

also. It has the annual manufacturing capacities of 12,410 mtpa of Caustic Soda Lye, 5,045 mtpa of
Liquid Chlorine, 6,205 mtpa of Sodium Hypochlorite, 8,200 mtpa of Hydrochloric Acid, 3,200 mtpa
of Ferric Alum, 18,700 mtpa of Sulphuric Acid and 1,620,000 m3pa of purified Hydrogen Gas.
The Company is a well-diversified entity in the fields of Cement, Tyre, Rayon Yarn, Transparent
Paper, Spun Pipes and Heavy Chemicals with two core business segments i.e. Cement and Tyres.
In Spun Pipes & Foundries, a unit of the Company, work suspended from 2nd May, 2008 still
commences till further notice.
The Company as of now is listed on three major Stock Exchanges in India i.e. Bombay Stock
Exchange Ltd., Mumbai, Calcutta Stock Exchange Association Ltd., Kolkata and National Stock
Exchange of India Ltd., Mumbai and at the Societe de la Bourse de Luxembourg, Luxembourg.
A further expansion upto 1.65 million tons of cement per annum in Vasavadatta Cement at Sedam in
Karnataka as unit IV at the same site is in progress, with a 17.5 MW Captive Power Plant, involving
a capital expenditure of about Rs. 783.50 crores (including the cost of Captive Power Plant).
The commercial production of cement in the aforesaid unit IV has commenced in June 2009.
The work for the further expansion in the Tyres Section at Uttarakhand for radial tyres with 100
MT per day capacity and bias tyres with 125 MT per day capacity involving an estimated aggregate
capital outlay of about Rs. 840 crores is under progress. The Board has further approved a Motor
Cycle Tyre Project of 70 MT per day capacity at the same site involving a capital outlay of Rs.190
crore. The civil construction of both the Projects is in full swing. The commercial production in
both the Projects is likely to start by December 2009/ January 2010.
Birla Supreme in popular brand of Kesoram cement from its prestigious plant of
Basantnagar in AP which has outstanding track record.In performance and productivity serving the
nation for the last two and half decades. It has proved its distinction by bagging several national
awards. It also has the distinction of achieving optimum capacity utilization.
Kesoram offers a choice of top quality portioned cement for light, heavy constructions and
allied applications. Quality is built every fact of the operations.
The plant lay out is rational to begin with. The limestone is rich in calcium carbonate a
key factor that influence the quality of final product. The day process technology uses in the latest
computerized monitoring overseas the manufacturing process. Samples are sent regularly to the
bureau of Indian standards. National council of construction and building material for certification
of derived quality norms.

The company has vigorously undertaking different promotional measures for promoting
their product through different media, which includes the use of news papers magazine, hoarding
etc.
Kesoram cement industry distinguished itself among all the cement factories in Indian by bagging
the National Productivity Award consecutively for two years i.e. for the year 1985-1987. The
federation of Andhra Pradesh Chamber & Commerce and Industries (FAPCCI) also conferred on
Kesoram Cement. An award for the best industrial promotion expansion efforts in the state for the
year 1984.Kesoram also bagged FAPCCI awarded for Best Family Planning Effort in the state for
the year 1987-1988.
One among the industrial giants in the country today, serving the nation on the industrial
front. Kesoram industry ltd., has a checked and eventful history dating back to the twenties when
the Industrial House of Birlas acquired it. With only a textile mill under its banner 1924, it grew
from strength to strength and spread its activities to newer fields like Rayon, Transparent paper,
pipes, Refractors, tyres and other products.
Looking to the wide gap between the demand and supply of a vital commodity cement,
which play in important role in National building activity the Government of India had de-licensed
the cement industry in the year 1966 with a review to attract private entrepreneur to augment the
cement production. Kesoram rose to the occasions and divided to set up a few cement plants in the
country.
Kesoram cement undertaking marketing activities extensively in the state of Andhra
Pradesh, Karnataka, Tamilnadu, Kerala, Maharashtra and Gujarat. In A.P. sales Depts., are located
in different areas like Karimnagar, Warangal, Nizamabad, Vijayawada and Nellore. In other states it
has opened around 10 depots.
The market share of Kesoram Cement in AP is 7.05%. The market share of the company in
various states is shown as under.
STATES

MARKET SHARE

Karnataka

4.09%

Tamilnadu

0.94%

Kerala

0.29%

Maharashtra
Process and Quality Control :

2.81%

It has been the endeavor of Kesoram to incorporate the Worlds latest technology in the
plant and today the plant has the most sophisticated.

X-ray analysis :
Fully computerized XRF and XRD X-RAY Analyzers keep a constant round the clock vigil
on quality.
Supreme performance :
One of the largest Cement Plants in Andhra Pradesh, the plant in corporate the latest
technology in Cement - making.
It is professionally managed and well established Cement Manufacturing Company
enjoying the confidence of the consumers. Kesoram has outstanding track record in performance
and productivity with quite a few national and state awards to its credit.
BIRLA SUPREME, the 43 Grade Cement, is a widely accepted and popular brand in the
market, commanding a premium.
However to meet the specific demands of the consumer, Kesoram bought out the 53 grade
BIRLA SUPREME GOLD, which has special qualities like higher fineness, quick-setting, high
compressive strength and durability.
Supreme Strength :
Kesoram Cement has huge captive Limestone Deposits, which make it possible to feed
high- grade limestone consistently, Its natural Grey colour is anion- born ingredient and gives good
shade.
Both the products offered by Kesoram, i.e. BIRLA SUPREME-43 Grade and BIRLA
SUPREME-GOLD-53 Grade cement are outstanding with much higher compressive strength and
durability.
The following characteristics show their distinctive qualities.
Comprehensive
Strength

Opc 43
grls 8112
1989

Birla Supreme
43 grade

Opc 43 gr

Birla

Is 1226987

Supreme
Gold 53 gr

3 days mpa

Min. 23

31 +

Min. 27

38+

7 days mpa

Min. 23

42+

Min. 37

48+

28 days mpa

Min. 43

50+

Min. 53

60+

D.C. SYSTEM :
Clinker making process is a key step in the overall cement making process. In the case of BIRLA
SUPREME/GOLD, the clinker-making process is totally computer. control. The Distributed Control
System (DCS) constantly monitors the process and ensures operating efficiency. This eliminates
variation and ensures consistency in the quality of Clinker.
PHYSICAL CHARACTERISTICS
Ope 43

Birla Supreme Ope 53 gr

Birla Supreme

Is 8 112-89

43 grade

Is 12269-87

Gold 53 gr

Setting time

Min30

120-180

Min 30

130-170

a. Initial (mats)

Max 600

180-240

Max 600

170-220

b. final (mats)

Min 225

270-280

300-320

Fincncssm 2/Kg

Max 10

1.0-2.0

Max 10

0.5-1.0

Soundness

Max 0.8

0.04-0.08

Max 0.080.

0.04-0.2

Min 225

a. le-chart (mm)
b. autoclave (%)

SUPREME EXPERTISE:
The Best Technical Team, exclusive to Kesoram, mans the Plant and monitors the process, to
blend the cement in just the required proportions, to make BIRLA SUPREME/GOLD OF Rock
Strength.
18 MILLION TONES OF SOLID FOUNDATION :
Staying at the top for over a Quarter Century, Quarter Century is no less an achievement.
Infact.Kesoram is synonymous with for over 28 years.

Over the years, Kesoram has dispatched 18 million tones of cement to the nook and corners of the
country and joined hands in strengthening the Nation. No one else in Andhra Pradesh has this
distinction. The prestigious World Bank aided Ramagundam Super Thermal Power Project of NTPC
and Mannair Dam of Pochampad project in AP arc a couple of projects for which Kesoram Cement
was exclusively uses: to cite an example.

CHEMICAL CHARACTERISTICS :
Opc 43 gr
Is 81 132-989

Birla
Supreme

Ope 53 gr

Birla Supreme

Is 12269-

Gold 53 gr.

Loss on inflection %

Max 5

43 grade
<1.6

87 4.0
Max

<1.5

Insoluble residue %

Max 2.0

<0.8

Max 2.0

< 0.6

Magnesium oxide %

Max 6.0

< 1.3

Max 6.0

< 1.3

Lime saturation factor

0.66-1.02

0.8-0.9

0.8-1.02

0.88-0.9

Alumna: iron ratio

MinO.66

1.5-1.7

MinO.66

1.5-1.7

Sulfuric anhydride %

Max 2.5/3

1.6-2.0

Max 2. 5/3

1.6-2.0

Alkalis Chlorides

Max 0.05

Max 0.01

Max 0.05

Max 0.4

Kesoram Cement - advantages :

Helps in designing sleeker and more elegant.
Structures, giving greater flexibility in design concept.
Due to its fine quality, super fine construction can be achieved..Its gives maximum strength at
Minimum use of cement with water in the water cement ratio, especially the 53 grade Birlas
supreme-gold.
Feathers in Kesoram'scap :

Kesoram has outstanding track record, achieving over 100% capacity utilization I productivity
and energy conservation. It has proved its distinction by bagging several national and state
awards, noteworthy being.
NATIONAL :
1.

National productivity award for 1985-86

2.

National productivity award for 1986-87

3.

National award for mines safety for 1985-86

4.

National award for mines safety for 1986-87

5.

National award for energy conservation 1989-90

STATE
1.

A.P. State productivity award for 1988

2.

State award for best industrial management 1988-89.

3.

Best industrial productivity award of FAPCCI (federation of A.P. chamber of commerce

and industry), 1991

4.

Best management award of the state Govt. 1993

5.

FAPCCI award for the workers welfare, 1995-96.

I.S.O. 9002
All quality systems of Kesoram have been certified under I.S.O. 9002/1.S. 4002, which proves the
worldwide acceptance of the products.
All quality systems in production and marketing of the product have been certified by B.I.S. under
ISO 9002/1S 14002.
The first unit was installed at basanthnagar with a capacity of 2.5 lakhs TPA (tones per annum)
incorporating humble supervision, preheated system, during the year 1969.
The second unit followed suit with added a capacity of 2 lakhs TPA in 1971.
The plant was further expanded to 9 lakhs by adding 2.5 lakhs tones in august 1978, 1.13 lakhs
tones in January 1981 and 0.87 lakhs tones in September 1981.

Power:
Singarein collieries make the supply of coal for this industry and the power was obtained
from AP TRANSCO. The power demand for the factory is about 21MW. Kesoram has got 2-diesel
generator seats of 4 MW each installed in the year 1987.
Kesoram cement now has a 15MWcaptive power plant to facilities for uninterrupted power supply
for manufacturing of cement.
Performance:
The performance of kersoram cement industry has been outstanding achieving over
cent percent capacity utilization all through despite many odds like power cuts and which most 40%
was wasted due to wagon shortage etc.
The company being a continuous process industry works round the clock and has
excellent records of performance achieving over 1005 capacity utilization.
Kesoram has always combined technical progress with industrial performance. The company had
glorious track record for the last 27 years in the industry.
Technology:
Kesoram cement uses most modern technology and the computerized control in the
plant. A team of dedicated and well- experienced experts manages the plant.
The quality is maintained much above the bureau of Indian standards.
The raw materials used for manufacturing cement are:
Lime stone
Bauxite
Hematite
Gypsum
Environmental and Social Obligations:
For environmental promotion and to keep up the ecologicalbalancae,this section has
planted over two lakhs trees .on social obligation front ,this section has undertaken various social
welfare programs by adopting ten nearly villages, organizing family welfare campus, surgical

camps, animal health camps blood donation camps, children immunization camps, seeds, training
for farmers etc were arranged.
Welfare and Recreation Facilities:
For the purpose of recreation facilities 2 auditoriums were provided for playing
indoor games, cultural function and activities like drama, music and dance
The industry has provided libraries and reading rooms. About 1000 books are available in the
library. All kinds of newspaper, magazines are made available.
Canteen is provided to cater to the needs of the employees for supply of snacks, tea, coffee and
meals etc.One English medium and one Telugu medium school are provided to meet the educational
requirements.The company has provided a dispensar with a qualified medical office and
paramedical staff for the benefit of the employees. The employees covered under ESI scheme have
to avail the medical facilities from the ESI hospital.
Competitions in sports and games are conducted ever year for august 15 th Independence Day and
January 26th, republic day among the employees.
Electricity:
The power consumption per ton of cement has come down to 108 units against 113 units
last year, due to implementation of various energy saving measures. The performance of captive
power plant of this section continues to be satisfactory. Total power generation during the year was
84 million units last year. This captive power plant is a major role in keeping power costs with in
economic levels.
The management has introduced various HRD programs for training and development and has taken
various other measures for the betterment of employees efficiency.
The section has installed adequate air pollution control system and equipment and is ISO14001 such
as Environment management system is under implementation.
Awards:
Kesoram cement bagged many prestigious awards including national awards for
productivity, technology, conservation and several state awards since 1984. The following are the
some of important awards.
AWARDS OF KESORAM CEMENT:

National/
No

Year

1989-90

Awards
Management award community

state
State

Development
2

1991

Energy conservation may day award of the

State

Govt.
3

1991

Pandit Jawaharlal Nehru rolling trophy for best

State

1993

National productivity effort indira Gandhi

State

national award
5

1994

Best management award

State

1994-

Best industrial rebellion award

State

Rural development by chief minister

State

1995
7

1995

Environment and mineral conservation award

8

2003

Best industrial rebellion award

State

2004

Best effort of an industrial unit to development

National

rural economy shri.s.r.rungta award for social

10

2005

Awareness for best rural development efforts

State

11

2005

Best workers welfare best family welfare

State

award
12

2010

First prize for mine environment &pollution

State

rd

control for the 3 year in succession

13

2011

Vanamithra award from AP Govt

State

14

2012

Company has got OHSAS-18001

State

15

2015

Certification from DNV, New Delhi.

State

16

2015

Award for pollution control and environmental

State

protection FAPCCI award for best rural

development in the state

Products of the organization:

DATA ANALYSIS AND INTERPRETION

ANALYSIS OF SALARIES : (RS IN LAKHS)

Year

Budget
Estimation

2011-12

9000

13321.08

-4321.08

-48.012

2012-13

16300

19107.41

-2807.41

-17.223374

2013-14

11788

12849.98

-1061.98

-9.0089922

2014-15

15627.62

14118.93

1508.69

9.65399722

2015-16

17288.86

16482.93

805.93

4.66155663

Actual

GRAPHICAL REPRESENTATION:

Variation

Variation (%)

REASONS FOR POSTIVE VARIATION: (Budget Estimated > Actual Expenditure)

Retirement of the employees.

The organization must have stopped the contract basis employees.

REASONS FOR NEGATIVE VARIATION: (Budget Estimated < Actual Expenditure)

Increase in the salaries of the employees by the Government.

Recruitment of new employees by the organization.
More number of contract employees.
Promotion of the employees.

ANALYSIS OF OVERTIME ALLOWANCE: (RS IN LAKHS)

Year
2011-12
2012-13
2013-14
2014-15
2015-16

Budget
Estimation
900
1100
1600
1809
2140

Variation
Actual
Variation (%)
1321.48
-421.48 -46.8311111
1999.71
-899.71 -81.7918182
1564.32
35.68
2.23
1700.54
108.46 5.995577667
2154.24
-14.24 -0.66542056

GRAPHICAL REPRESENTATION:

REASONS FOR POSITIVE VARIATION: (Budget Estimated > Actual Expenditure)

Completion of the project on time.

REASONS FOR NEGATIVE VARIATION: (Budget Estimated < Actual Expenditure)

The organization is giving more incentives on the productivity level.

Sudden rise in the production of the product. Hence the organization has spent
more on the overtime allowance for the completion of the production in the
prescribed time.
Some of the employees are doing other employees work in their absence.

ANALYSIS OF DOMESTIC TRAVEL EXPENSES

: (RS IN LAKHS)

Year

Budget
Estimation

Actual

Variation

Variation (%)

2011-12

100

99.53

0.47

0.47

2012-13

110

153.35

-43.35

-39.4090909

2013-14

122

112.98

9.02

7.393442623

2014-15

132

129.37

2.63

1.992424242

2015-16

143

159.91

-16.91

-11.8251748

GRAPHICAL REPRESENTATION:

REASONS FOR POSITIVE VARIATION: (Budget Estimated > Actual Expenditure)

Due to less travel expenses in the internal organization.

Official visits to the other units of organization have finished.

REASONS FOR NEGATIVE VARIATION: (Budget Estimated < Actual Expenditure)

Continuous visits to the other units of the organization for the office work.
Continuous visits of the officials to different branches of the organization for
seminar and training programs.
Official visiting to other units of the organization for inspection of plant and
machinery.

ANALYSIS OF FOREIGN TRAVEL

EXPENS
Year

Budget Estimation

Actual

Variation

Variation (%)

2011-12

25

21.61

3.39 13.56

2012-13
201314

30

26.83

3.17 10.56666667

30

36.38

-6.38 -21.2666667

2014-15

40

28.76

11.24 28.1

2015-16

50

38.97

11.03 22.06

GRAPHICAL REPRESENTATION:

REASONS FOR POSITIVE VARIATION: (Budget Estimated > Actual Expenditure)

Less number of visits to the foreign countries by top level employees.

REASONS FOR NEGATIVE VARIATION: (Budget Estimated < Actual Expenditure)

More number of visits by top level employees to foreign countries

Year

Budget Estimation

Actual

Variation

Variation (%)

2011-12

600

600.63

-0.63

-0.105

2012-13

600

573.52

26.48

4.413333333

2013-14

535

483.05

51.95

9.710280374

2014-15

550

535.91

14.09

2.561818182

2015-16

610

597.06

12.94

2.121311475

GRAPHICAL PRESENTATION:

REASONS FOR POSTIVE VARIATION: (Budget Estimated > Actual Expenditure)

Decrease in the number of workers for the maintenance of office work.

Reduction in the charges and repairs.

REASONS FOR NEGATIVE VARIATION: (Budget Estimated < Actual Expenditure)

Increase in the price on stationery items and number of items.

Number of furniture items for the office purpose increased.
High maintenance of office premises.

Tariff rate of power increased.

ANALYSIS OF ADMINISTRATIVE EXPENSES: (RS IN LAKHS)

Year

Budget
Estimation

Actual

2011-12

45

40.63

2012-13

45

45.36

-0.36 -0.8

2013-14

37

37.02

-0.02 -0.05405405

Variation

Variation (%)
4.37 9.711111111

2014-15

45

45.3

2015-16

50

72.21

-0.3 -0.66666667
-22.21 -44.42

GRAPHICAL PRESENTATION:

REASONS FOR POSITIVE VARIATION: (Budget Estimated > Actual Expenditure)

It shows that the organization expenditure is favorable towards the administrative

side. Hence, we can estimate that the organization has spent less on the variable and
fixed administrative expenses.

REASONS FOR NEGATIVE VARIATION: (Budget Estimated < Actual Expenditure)

Rise of directors remuneration.

Rise in legal charges.
Increase in audit fees.

ANALYSIS OF SUPPLIES AND MATERIAL: (RS IN LAKHS)

Year

Budget Estimation

Actual

2011-12

66633

52518.48

Variation
14114.52

Variation (%)
21.18

2012-13

48135

70114.06

-21979.06

-45.661286

2013-14

83153

81919.03

1233.97

1.483975323

2014-15

80679.18

84149.59

-3470.41

-4.30149389

2015-16

60373.3

85141.92

-24768.62

-41.0257846

GRAPHICAL PRESENTATION :

REASONS FOR POSITIVE VARIATION: (Budget Estimated > Actual Expenditure)

The materials are being supplied at the estimated costs.

REASONS FOR NEGATIVE VARIATION: (Budget Estimated < Actual Expenditure)

Increase in the material costs

REASONS FOR NEGATIVE VARIATION: (Budget Estimated < Actual Expenditure)

More amount of money on training and development programmers for the professional
employees to improve their skills for more effectively, So that they can utilize time
properly so that they can be balanced along the product line.

ANALYSIS OF SCHOLARSHIP AND STIPEND : (RS IN

LAKHS)

Year
2011-12
2012-13
2013-14
2014-15
2015-16

Budget Estimation
100
100
50
50
45

Actual Variation Variation (%)

54.6
45.4
45.4
86.6
13.4
13.4
19.51
30.49
60.98
27.11
22.89
45.78
28.3
16.7
37.11111111

GRAPHICAL PRESENTATION :

REASONS FOR POSITIVE VARIATION: (Budget Estimated > Actual Expenditure)

Number of students getting trained reduced.
Training students have become full time working employees.
Students who are working as apprentices have become less.
Organization has stopped taking apprentices.
REASONS FOR NEGATIVE VARIATION: (Budget Estimated < Actual Expenditure)
More number of trainee students is getting stipend and scholarship in training
according to their performance.

ANALYSIS OF INTEREST: (RS IN LAKHS)

Year
2011-12
2012-13

Budget Estimation
Actual Variation Variation (%)
6000
6000
0
0
7500
5000
2500
33.33333333

2013-14
2014-15
2015-16

5000
4000
4000

4000
4000
3000

1000
0
1000

20
0
25

GRAPHICAL REPRESENTATION:

REASONS FOR POSTIVE VARIATION: (Budget Estimated > Actual Expenditure)

The interest rates are not fluctuating. The organization is following the
predetermined rate of interest or organization has completed paying some of the
loan amount with interest and principal amount.

REASONS FOR NEGATIVE VARIATION: (Budget Estimated < Actual Expenditure)

The organization has taken few more loans.

Rate of interest has increased from the past value

ANALYSIS OF MACHINERY & EQUIPMENT: ( RS IN LAKHS)

Year
2011-12
2012-13

Budget
Estimation

Variation
Actual
Variation (%)
200
218.45
-18.45
-9.225
800
763.11
36.89
4.61125

2013-14

1000

1773.75

2014-15

3148

600.888

2015-16

2500

600.13

-773.75

-77.375

2547.112 80.91207116
1899.87

75.9948

GRAPHICAL REPRESENTATION:

REASONS FOR POSITIVE VARIATION: (Budget Estimated > Actual Expenditure)

Only minor repairs or replacement of small instruments have taken place.

The machinery and equipments are in proper running condition and there is no need
of spending more on the maintenance of machinery.

REASONS FOR NEGATIVE VARIATION: (Budget Estimated <Actual Expenditure)

The break-down of machine may occur due to no proper maintenance or due to

voltage fluctuation.
Replacement of damaged parts in the machines.

ANALYSIS OF DEPRECIATION: (RS IN LAKHS)

Year
2011-12
2012-13

Budget Estimation
2200
2200

Actual Variation
2200
0
2200
0

Variation (%)
0
0

2013-14
2014-15
2015-16

3200
2400
2400

2200
2400
1800

1000
0
600

31.25
0
25

GRAPHICAL PRESENTATION :

REASONS FOR NO VARIATION: (budget Estimated = Actual Expenditure)

The organization has correctly estimated the written down value of assets . So,
it has been equally depreciated.

REASONS FOR NEGATIVE VARIATION: (budget Estimated < Actual Expenditure)

It may be because of the more usage of the assets which is outdated. The assets may
be rusted and it may be kept for scrap.

CHAPTER-5
FINDING & SUGGESTION
& CONCLUSION &
BIBLIOGRAPHY

FINDINGS

After carrying a detailed study on the budgetary process and budgetary control at kesoram
cements ltd, the following
Observations were made:
Kesoram cements ltd prepares budget every year.
A study on budget of year shows high inconsistency. Certain expenditures and incomes
show major variation:
In case of revenue expenses, the organization tries to stick to its budgetary figures
This matches with the actual figures for the year.
Expenditure relating to the raw materials is showing faster growth rate of kesoram cements
ltd.
Administrative expenses in the year 2011-2012 decreased when compared to other years
data.
Domestic travel expenses and overtime allowances in the year 2012-2013 increased when
compared to other years data.
Salaries in the year 2012-2013 increased to 4321.08 Lakhs this is due to implementation of
6th Pay Commission recommendation.
Investments made by the kesoram cements is huge and played a vital role in carrying good
name and frame in the mind of investors, suppliers etc.

SUGGESTIONS
A budget is treated as an important tool by an organization in the management of its
financial resources .with the help of proper maintenance of budget and budgetary control,
can allocate funds for appropriate purpose; keep spending within bounds and better use of
its funds.
The following are the things which help in increased effectiveness of budgetary control. As
the result of the study Budget and Budgetary control at kesoram cements, the following
suggestions are given:

Kesoram cements needs to divide the organization into sub units. Such as decision
and profit centers.
This will also be used as investment, profit and cost centers which improve the
responsibility and accountability of employees towards their work.
Kesoram cements should prepare the financial budget considering all items of
probable expenses.
The budget should be prepared in such a way that the deviations in the expenses are
reduced to minimal. The higher the consistency in the budget, the higher is the
fluctuation in the financial position of Kesoram.

Kesoram should involve all the departments in the preparation of budgets. It would bridge
the Gap between the budgeted figures and actual figures of the year.

CONCLUSION

Budgetary control is an important tool for the management to have an effective check on its
working as well as the staff. However, it is seen as time consuming technique by various
organizations and thus do not pay much attention to it.

Through this study it was found that the budget shows high inconsistency and the
actual performance varies considerably from the budgeted figures.
Budgetary control department acts as a back of top management.
Budgetary control department collects information from each departments and
converts the data into information.
With the support of the budgetary control the management and converts the data
into information.
With the help of proper budgetary planning and control system Kesoram Cements
has been able to improve operating performances and profitability of the
organization.
The financial system in Kesoram Cements has been very quickly and well planned
one which could be implanted in other such government organization.

BIBLIOGRAPHY

BOOKS:
M.Y KHAN & P.K JAIN, (2003), FINANCIAL MANAGEMENT, 3 rd EDITION,
TATA MC GRAW HILL PUBLISHING CO.LTD, NEW DELHI.
R.P. RUSTAGI, (2005), FINANCIAL MANAGEMENT, 2nd EDITION, GALGOTIA
PUBLISHING, NEW DELHI.
S.N MAHESHWARI, (2004), COST & MANAGEMENT ACCOUNTING, 4 th
EDITION, SULTAN CHAND & SONS, NEW DELHI.

JOURNALS:

ANAMIKA MUKHERJEE, (2010), BUDGET 2010 & DEVELOPMENT, VOL:

45, NO.4

SAVITRI KUMARI,(2010),BUDGET 2010: GROWTH STRATEGY FOR 2020

,VOL:45.

WEB-SITES:

www.kesoramcements.com

www. indiabudget.nic.in

www.wikipiedia. org.

www.finmin.nic.in