“INTRODUCTION”

“BUDGET”

“INTRODUCTION TO BUDGET AND BUDGETARY CONTROL” Financial plan:

Financial plan is basic in each stroll of our life – national, local and Business. A financial

plan is set up to have viable usage of assets and for the acknowledgment of target as

proficiently as could be expected under the circumstances. Planning is an intense device

to the administration for playing out its capacities i.e.

Definition designs, coordination exercises and controlling tasks and so on., proficiently.

For productive and compelling administration arranging and control are tow exceedingly

basic capacities. Financial plan and budgetary control give an arrangement of essential

procedures for arranging and control.

A financial plan settles an objective as far as rupees or amounts against which the

genuine execution is estimated. A financial plan is firmly identified with both the

administration work and in addition the bookkeeping capacity of an association. As the

extent of the association expands, the requirement for planning is correspondingly more

on the grounds that a financial plan is a viable instrument of arranging and control.

Financial plan is useful in planning the different exercises, (for example, creation, deals,

buy and so on) of the association with result that every one of the exercises go before as

per the goal. Spending plans are methods for correspondence. Thoughts of the best

administration are given the commonsense shape. As the exercises of different office
heads are facilitated at the genuinely necessary for the very accomplishment of an

association.

Financial plan is important to future to inspire the staff related, to facilitate the exercises

of various offices and to control the execution of different people working at various

levels.

Spending plans might be separated into two essential classes. Capital and working

spending plans. Capital spending plan are coordinated towards proposed use for new

ventures and regularly require uncommon financing. The working spending plans are

coordinated towards accomplishing here and now operational objectives of the

association for example, creation or benefit objectives in a business firm. Working

spending plans might be sub-partitioned into different departmental of useful spending

plans.

Meanings of Budget: As indicated by Institute of Charted Management Accountants,

England " An arrangement measured in financial term arranged and endorsed before a

characterized timeframe generally demonstrating arranged wage to be created and/or to

be acquired amid that period and the money to be utilized to accomplish a given goal."

As per ICMA, England, a financial plan is, "a money related as well as quantitative

articulation, arranged and endorsed preceding a characterized timeframe, of the approach

to be pressed together amid the period to attain a given goal." It is likewise characterized

as, "a blue print of anticipated arrangement of an activity of a business for a distinct

timeframe."

BUDGETARY CONTROL: No arrangement of arranging can be fruitful without having

a compelling and productive arrangement of control. Planning is firmly associated with

control. The activity of control in the association with the assistance of spending plans is

known as budgetary control. The procedure of budgetary control incorporates. 1.

Establishment of spending plan for each capacity and segment of the association. 2.

Executive obligation keeping in mind the end goal to play out the particular assignments

with the goal that destinations of the endeavor might be accomplished. 3. Continues

examination of the genuine execution with that of the financial plan and setting the duty

of administrators for inability to accomplish the coveted outcome a given in the financial

plan. 4.

Taking reasonable healing activity to accomplish the coveted target if there is a variety of

the genuine execution from the planned execution. 5. Revision of spending plans in the

light of changed conditions. Meanings of Budgetary Control: As indicated by the Brown

and Howard "Budgetary control is the arrangement of controlling costs which

incorporates the readiness of Budgets, co-planning the division and building up the

obligations, contrasting the genuine execution and the planned and acing upon the

outcomes to accomplish the most extreme productivity" As per the J.Betty: "A framework
which utilizes spending plans as a methods for arranging and controlling all parts of

creating and/or offering items and administrations" As indicated by the CIMA, London,

"Budgetary control is the foundation of spending plans identifying with duties of officials

to the prerequisite of an arrangement, and the ceaseless examination of genuine with

moved outcomes, either to secure by singular activity the goal of that approach or to give

a premise to update.

“OBJECTIVES OF STUDY”

THE STUDY HAS THE FOLLOWING: ?

 To give a hypothetical structure of spending plan, and budgetary control. ?

 To portray the profile of the association as a background for undertaking

an investigation of budgetary control framework. ?

 To break down the budgetary framework by and by in Heritage Foods

India Limited with specific reference to their destinations and periods of

authoritative and re-allocation. ?

 In expansion to the examination of the customary budgetary framework by

and by in Heritage DAIRY PRODUCT Industries restricted.

 The examination goes for assessment and change to the budgetary

framework with reference to the different sorts of spending plans.

 The degree in the plan of execution spending plan is additionally

examined.
SOURCES OF THE DATA

 The data collected from the HERITAGE FOODS,

 HFIL– yearly books.

 Accounting books, records, balance sheets, profit and loss sheets

 Key books of concerned related books from the existing great authors.

 Statistical records based on availability data.

 HERITAGE company library

“METHODOLOGYOF THE STUDY”:

 The investigation depends on the both essential and auxiliary information

The essential Data Collected through organized survey reflecting spending

administration routine with regards to Heritage Dairy items

 The gathered information is classified and reasonable understanding made

by considering the information accumulation through auxiliary information like

yearly reports.

“LIMITATION OF THE STUDY”

 Estimates are utilized as reason for spending design and gauges depend on

accessible certainties and best administrative judgment

 Budgetary control can't diminish the administrative Strength to a recipe.

  It is just an administrative Tool which increment viability of

administrative control • The utilization of spending plan may prompt limited

utilization of assets.

 Efforts may in this manner not be made to surpass the execution past the

planned targets. Frequent changes might be called for in spending plans because

of quick changing modern atmosphere.

 In arrange that a framework might be effective, satisfactory spending

training ought to be conferred anyway through the developmental period.

 Adequate preparing projects ought to be masterminded to influence

representatives to scoff positive reaction to budgetary exercises.

 The think about is the constrained up to the date and data gave by Heritage

Foods India

Limited and its yearly reports •

“SCOPE OF THE STUDY”

 The spending plan for task and upkeep exercises will be called execution

spending activity.

 This, in actuality implies that every monetary focus in the spending will be

founded on execution focuses in physical terms.

 The current budgetary control framework activity pays imagines age and

transmission line extends as independents speculation focuses. It ends up

appropriate to a venture in the year in which is intends that popularize its original
 unit.

REVIEW OF LITERATURE

INTRODUCTION TO BUDGET AND BUDGETORY CONTROL

The BUDGET control management system is efficient if it is equal to whole the objects

are creativity. It is operative when it complete the objectives with minimum resources and

the most in reach long-range efficiency and methodical approach in facilitate real control

presentation is turnover planning and controller or budgeting.

Accounting is so an main part historical combination of a” goal setting machine for

ascending an enterprises profits and the reach the what company expectations for the

general regulator over the planning while achieving the planned gets” PROFIT

BUDGET: It is a financial and scale of the statement prepared and the known or to a

strong old of time of conditions to be the followed during that period purpose of attaining

a given neutral it may include income and spending and employment, capital In other

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

operations and as a partial basis for subsequent evolution of performance PLANNING

OF BUDGETING: The process of planning all currents of financial capitals into within

from an object during some specified future period it includes providing detailed

allocation of available future resources to projects ,responsibilities and time periods From

above definition I it clear that planning is the actual act of caring the budget it is the

process of evolving the final statement yet is the end product of budgeting.
SPENDING PLANS CENTERS:

 A spending focus is the piece of the association for which the financial

support is readied. A spending maker might be an office area of division or some

other piece of office in a perfect world, the front-runner of the each middle must

designate an individual from the spending board of trustees. Anyway it must be

guaranteed that each spending focus in any event has a roundabout portrayal in

the spending council.

 The foundation of spending focuses is basic for covering all parts of the

association turns out to be simple when diverse focuses are built up the spending

focuses are additionally fundamental for cost control reason. Spending

MANUAL: A spending manual is a record that spells out obligations and

dependable the different administrators vanquished with it indicates among

different utilitarian zones A spending manual covers the accompanying issues. 1.

 A spending manual lucidity characterizes the independences of the

budgetary control frameworks it additionally gives the advantages and standards

of this framework. 2. the obligations and obligations of different people managing

arrangement and execution of spending plans are additionally given in the

spending manual it empowers the administration to know the people managing

different angles to spending plans and gives lucidity on their obligations and

duties it gives the data about the endorsing experts of unlike expenditure plans the

monetary forces of authorizing specialists of dissimilar expenditure plans the

money related forces of various oversees are given in the manual for empowering

the spending sum on different costs 3.

 A dropper table for spending plans including the sending of execution

reports is drawn with the goal that each work begins in the and an efficient control

is worked out. 4. the example structures and number of duplicates to be lased fro

metal oaring spending reports is likewise expressed spending focuses included

ought to be obviously expressed. 5. the length of changed costs periods and

control focuses is plainly given 6. The issue take after all in the middle framework

plainly expressed. 7.

 A strategy for bookkeeping to be utilized for different consumptions is

likewise expressed in the manual. 8. A spending manual helps the documentation

the part of each worker his obligations duties the methods for undertaking

different errands and so forth consequently it additionally helps n decreasing

vagueness anytime of time Spending PERIOD: A spending period is the time

allotment for which a budget is set up upon various elements the decision of a

spending period relies on the accompanying contemplations the kind of spending

plan (long\short).

 The nature of interest for the items ? The timing for the accessibility of the

fund ? The development circumstance of the cycles All the previously mentioned

factors are considered while settling the time of spending plans In this planning

procedure the money related choice on the financial plans The money related

administrator typically in charge of arranging this spending he should play out the

accompanying capacities. ? To choose the general polices and rules ? To offer

specialized exhortation.

 To propose changes. ? To get and audit singular spending gauges. ? To

accommodate unique with or without amendments. ? To facilitate planning

exercises. ? To affirm spending plans with or without corrections. ? To examine

controller intelligences later on ? To examine to spending reports later on. ? To

disperse these rules.

 In the wake of finishing the spending proposition the spending panel

 subjects the last spending plan to the Board of Directories or Budget Director for

endorsement. Constant BUDGETING SYSTEM: A constant planning framework

is a strategy for having two diverse spending periods inside the normal spending

plan the inspiration overdue having this framework is to have more noteworthy

control as far as operational exercises without losing sight is have more prominent

control as far as it brings about joining the impact of changes in the here and now

on the long haul focuses of the association Assurance OF KEY FACTOR: The

financial plans are set up for every single utilitarian zone these financial plans are

reliant and between related An appropriate co-appointment among various

spending plans is fundamental for budgetary control to be effective The

requirements a few spending plans too A factor which impacts every other

spending plan is known as "key factor or vital factor".

The key factor may not really continue as before the crude materials might be restricted

at one time however it might be effortlessly accessible at another comparatively different

components may likewise enhance at various circumstances. The key factor features the

constraints of the endeavor. This will empower the administration to enhance the working

of those offices we here degree for development exists.

1. OUISITES FOR A SUCCESSFUL BUDGETARY CONTROL SYSTEM. Making

budgetary control framework fruitful necessities are required.

2. Clearing up OBJECTIVES. The financial plans are utilized to acknowledge goals of

the business. The destinations must be unmistakably spelt out with the goal that financial

plans are legitimately arranged.

In the feeling of clear objectives, the financial plans will likewise be implausible.

3. Appropriate DELEGATION OF AUTHORITY AND RESPONSIBILITY. Spending

readiness and control is done at each level of administration. Despite the fact that

financial plans are finished at top level yet inclusion of people. In bring down levels of

administration is basic for their prosperity. This Hesitates legitimate designation and

obligation.

4. Appropriate COMMUNICATIONS SYSTEM.

A compelling arrangement of correspondence is required for a fruitful budgetary control.

The stream of data with respect to spending plans ought to be fast so that these are

actualized. The upward correspondence will help in knowing the troubles in usage of

spending plans.

The execution reports of different levels will help top administration in budgetary control.

5. Spending EDUCATION. The representatives ought to be taught about the advantages

of planning framework the ought to be the advantages of planning framework they ought

to be teach about their parts in the success of this framework.

Budgetary control may not be taken just as a control gadget by the staffs however it must

to be utilized as an instrument to enhance their proficiency.

6. Adaptability. Adaptability in spending plans is obligatory to make them reasonable

under changed conditions. Spending plans are set up for the future, which is constantly

indeterminate, in spite of the fact that economical plans are set up by thinking about the
future potential outcomes yet the at the time of few changes. Adaptable makes the

financial plans more proper and reasonable.

7. Inspiration Spending plans are actualized by people.

Their fruitful usage will rely on the intrigue appeared by the workers. All people ought to

be roused to enhance their working with the goal that planning is effective. A legitimate

arrangement of inspiration be presented for making is framework a win.

8. Sorts OF BUDGETS. Long haul BUDGETS: The long drag spending plans are the

financial plans arranged for a significant lot of five to years.

They are worried about arranging the activities of a firm finished a significantly extensive

stretch of time. The money related "Controller" only for top administration for the most

part gets ready long haul spending plans. These financial plans are helpful as far as

physical units (i.e.… .. amounts) or rates, the exact qualities might be hard to gauge over

such significant lot.

Introductory consumption, innovative work spending plans, and so on, are illustrations

long haul spending plans.

Here And Now Budgets.

Short - term spending plans are spending plans arranged for a brief time of one to two is.

They are set up for those exercises the pattern in which can't be seen effectively finished

significant lots.

These financial plans are extremely helpful are exceptionally valuable if there should
arise an rate of shopper products ventures, for example, sugar, cotton, materials, and so

on they are by and large, arranged regarding physical units (i.e., Quantities) and in

addition money related units (i.e., values..) Materials spending plan, money spending

plan. And so on are cases of here and now spending plans.

They are valuable to bring down level of administration for control reason.

CURRENT BUDGETS.

A present spending plan is a financial plan, which is built up for use over a brief

timeframe and is identified with current conditions. In this way current spending plans

are basically here and now spending plans changed in accord with current (i.e., present or

winning) conditions or conditions.

They are readied, for a brief period. Say, a quarter or a month. They identify with current

exercises of the financial plans.

BREAK BUDGETS:

Break spending plans are spending plans, which are set up in the middle of two spending

plans periods. These financial plans may get coordinated with the financial plans of the

accompanying time frame.

ORDER OF BUDGETS ACCORDING TO CONTENT:

Financial plan might be ordered into spending plans in physical terms and into spending

plans in money related terms. A) BUDGETS IN PHYSICAL TERMS: Spending plans in

physical terms are planned that financial plan regarding amounts as it were. They do

exclude relating rupee esteem. Long - term spending plans are for the majority in

arranged in physical terms.

Cases of such spending plans are generation spending plan, materials spending plan, and
so out. B) BUDGETS IN MONETAY TERMS: Spending plans in money related terms

are spending plans that financial plan to the extent that amounts and their comparing

rupee esteem. Deals spending plan, buy spending plan, and so out are cases of such

spending plans.

Spending plans, for example, money spending plan, capital use spending plan, and so on

that might not have physical amounts likewise from part of spending plans in Monetary

terms.

CLASSIFCATION OF BUDGETS ACCORDING TO FUNCTION: Spending plans

can be ordered into: 1. Operating Budgets 2. Financial Budgets 3. Master Budget 1)

OPERATING BUDETS. These financial plans identify with various exercises or tasks of

a firm.

The quantity of such spending plans relies on the size and nature of the business, The

usually utilized task spending plans are:

i) Sales Budgets

ii) Purchase Budget

iii) Fresh Materials Budget

iv) Lab our Budget

v) Factory Utilization Budget

vi) Manufacturing Expenses or Works overhead spending plan

vii) Administrative and Selling Expenses Budget and so on.

The working spending plan for a film might be constructed

The working spending plan for a film might be built as far as the software engineers or

duty regions, and henceforth may comprise of: A) Programmed Budget B) Responsibility

Budget A) Program BUDGET It Consists of expected incomes and expenses of different

items or undertakings that are named as the real software engineers of the firm, Such a

financial plan can be set up for every product offering or venture indicating incomes,

Cost and the relative productivity of the different in finding regions where endeavors

might be required to decrease COST advertisement increment incomes.

They are so helpful in deciding irregular characteristics and insufficiencies in developers

so at remedial move might be complete in future. Obligation Budgets: Here the working

of a firm is built as for the obligation territories. Such a spending demonstrates the

arrangement as for the individual's for accomplishing them.

It is operated by the administration as a control in this way operated by the administration

as a control gadget to assess the of administrators who are accountable for different cost

focuses. Their is contrasted with the objectives (Budgets), set for them and appropriate

taken for unfriendly outcomes. Duty regions might be ordered under three brand classes:

I. Cost/cost focus II. Profit focus III.

Investment focus 2) FINANCIAL BUDGETS Money related spending plans are worried

about money receipts and installments, working capital, monetary position and

aftereffects of business. The normally utilized money related spending plans incorporate

Cash spending plan, Capital spending plan, and Income proclamation spending plan,
Statement of profit spending plan, Budgeted monetary record or position articulation.

3) MASTER BUDGET The Master spending plans is the rundown spending plan joining

its utilitarian spending plans. All the operational and money related spending plans are

coordinated into the Main spending plan. The spending officer for the advantages of the

best level administration readies this financial plan.

This fiscal plan is utilized to arrange the exercises of different useful offices. It is

additionally utilized a viable control gadgets. Arrangement of FLEXIBILITY. A) FIXED

BUDGET As per ICMA, London "a settled spending plan is a spending which is intended

to stay unaltered independent of the level of the movement really accomplished".

It depends on a settled volume of movement and shows one volume of yield and related

cost. It isn't balanced by the real level of action accomplished. A settled spending plan is

helpful just when the real level of action relates with the planned level of movement. In

any situation, this, for the most part, does not occur; all things measured a settled

spending plan isn't valuable for administrative purposes.

B) FLEXIBLE VARIABLE SLIDING SCALE OR CONTROL TYPE BUDGET: As

indicated by ICMA, London "an adaptable spending plan is a spending which is intended

to change as per the level of movement) really achieved". Along these lines, an adaptable

spending changes. As indicated by the adjustment in the level of action. As such it gives

the planned expenses at any level of movement. Business action can't be precisely
anticipated by virtue of vulnerabilities of business condition.

An adaptable spending plan contains a few appraisals for various accept conditions rather

than only one gauge, it furnishes for programmed modifications with changes in the

volume of movement. Subsequently, a circumstances working in an eccentric situation.

Planned AND BUDGETART SYSTEM INHERITAGE FOODS (INDIA) LTD ZERO

BASED BUDGETING: Zero planning is the most recent strategy of planning and it has

expanded use as a material apparatus. This method was first utilized as a part of America

in 1962, by the previous president America, Jimmy Carter.

As the name recommends, it is beginning from a "scratch", the typical method of

Planning is to utilize past levels as a base for setting up the current year's financial plan.

This strategy conveys earlier years wasteful aspects to the present year since we taken a

year ago as a guide, and choose "what could possibly be done year when this much was

the execution of the most recent year.

In the zero based planning each year is taken as new year and earlier year isn't as a base,

the financial plan during the current year should be defended by current circumstance,

zero is taken as base and likely future exercises are chosen by current circumstances. In

zero based planning a chief is to legitimize why he needs to spend.

The execution of spending on different exercises will rely on their defense and need for

spending should be that an action is fundamental and the sums requested are extremely
sensible considering the volume of action. Financial plan AND BUDGETARY SYSTEM

IN HERITAGE DAIRY PRODUCT INDUSTRIES LIMITED, BASANTH NAGAR,

KARIMNAGAR The planning procedure is utilized as a part of the execution planning

for the development of stage which incorporates pre appointing exercises. Other than

meeting the basic prerequisites of administrative control.

The planning exercise likewise covers the long haul capital planning, which is displayed

as yearly arrangement. Goals OF THE BUDGETARY SYSTEM: To get ready yearly

spending plans in such a way those supervisors at different levels in association do

periodical exercise in regard of each contact or dependable place for physical arranging

and coordinating assets separated into month to month targets or money streams.

To present and work in charge of accomplishment of determined focuses with the

recourses dispensed for the reason. To realize successful co-ordinate of all exercises of

the association and To adapt benefit divisions to meet adequately the necessities of

undertaking. Spending PERIOD AND PHASING: The spending time frame or yearly

brings forth ought to with the money related year.

In October consistently the monetary allowance should drawn up for the guaranteeing the

money related year as Budget gauges budgetary year as Revised Estimates [R.E].In

expansion the financial plans are to be investigated on month to month premise by

venture audit groups, in the light of genuine use and projections in the spending time

frame. Budegt ought to demonstrate month to month staging of. Use and focuses for the
first and quarterly staging for the second 50% of the year.

At the season of survey of the spending appraisals to outline overhauled gauges the

quarterly Phasing ought to be separated into month to month staging. While drawing up

the real spending plan in October consistently, the long haul capital spending plan for

continuous and new plans ought to be planned as separated of activity as readiness of

yearly arrangement.

The long haul capital spending plan ought to show for a time of six years following the

spending time of six years following the spending time of six years following the

spending time frame insightful yearly staging of the capital use and physical timetables

response based system. Spending HEADS: For uniform bookkeeping, it is basic that

expenses are gathered for every one of the production line however this may include part

up of installments against contracts which grasp in excess of one framework.

Assignment of the cost as framework savvy bears a sound reason for cost bookkeeping,

between firm examinations and gives significant contributions to the information bank.

Spending arrangements are identified with venture gauges and checking of genuine

consumption where as control factors for part control and instrumentation framework.

Manufacturing plant funneling which incorporates pipelines, for fiery debris water mains,

packed air framework and common works channeling. On the off chance that there are,

any agreements not canvassed in the spending sets out arrangements toward such
contracts ought to be appeared against the suitable framework by head by including code

number.

Kinds OF BUDGETS IN HERITAGE DAIRY PRODUCT INDUSTRIES LIMITED: As

indicated by the nature consumption spending plan are grouped under: ? Direct capital

expense on works ? Technical consultancy ? incidental development amid development ?

Employee cost Other foundation costs: ? Training and enlistment ? Preliminary costs ?

misc.brought-out resources ? cash spending plan ? Township spending plan BRIEF

EXPLANATION TO THE NATURE OF EXPENDITURE INCLUDED IN EACH

BUDGET IS INDICATED BELOW: Accidental SPENDING DURING BUILDING

PERSONEL FEE: These includes compensation, compensation, remittance, commitment

of PF and different assets and different costs, for example, LIC, restorative repayment,

container endowment and so on any arrangement of zones of pay/D.A.

OFFICE AND OTHER EXPENSES: Costs coincidental to development and capital

works not traceable straightforwardly to accidental use, amid commitment types of gear,

vehicle running cost, office lease. LC and cost of illustrations, voyaging costs, printing

and stationary, correspondence costs, ad for tenders and so forth., are real things in the

classification.

Preparing RECRUITMENT and OTHER DEFFEREDREVENUE EXPENDITURE: The

initial segment of the spending comprises of costs for preparing administrators, and Non

official learners, lease for preparing lobbies and costs for administration advancement
courses. The second part comprises of costs for enrollment, for example, ad for

enlistment, talk with costs, T.A.

applicant and so forth the third part joins preparatory costs including enlistment charges

and research promotion improvement costs. Various BOUGHT OUTPASSES: Vehicles,

furniture and installations types of gear, clinic and therapeutic hardware. Random

evaluates township figure in the financial plan.

Audit OF PROJECT BUDGET: Month to month REVIEW: At month to month interims,

the monetary allowance ought to be assessed by venture survey council [PRC]. Task

spending plan should report real use against spending heads. Work heads and corporate

spending plan by the seventh of month following the report month. The month to month

audit ought to be analyzed by venture survey group [PRT], who should record varieties

for any varieties and proposed for using works in the minutes of the gatherings purposes

behind any variatio

BUDGET AND BUDGETORY STRUCTURE IN HERITAGE FOODS

(INDIA) LTD ZERO BASED BUDGETING:

Zero planning is the most recent procedure of planning and it has expanded use as a

material device. This strategy was first utilized as a part of America in 1962, by the

previous president America, Jimmy Carter. As the name proposes, it is beginning from a

"scratch", the ordinary procedure of Planning is to utilize past levels as a base for setting

up the current year's financial plan.

This technique conveys earlier years wasteful aspects to the present year since we taken a
year ago as a guide, and choose "what can anyone do year when this much was the

execution of the most recent year. In the zero based planning each year is taken as new

year and earlier year isn't as a base, the financial plan during the current year should be

advocated by current circumstance, zero is taken as base and likely future exercises are

chosen by current circumstances.

In zero based planning a supervisor is to legitimize why he needs to spend. The execution

of spending on different exercises will rely on their support and need for spending should

be that a movement is basic and the sums requested are extremely sensible considering

the volume of action.

Financial plan AND BUDGETARY SYSTEM IN HERITAGE DAIRY PRODUCT

INDUSTRIES LIMITED, The planning procedure is utilized as a part of the execution

planning for the development of stage which incorporates pre dispatching exercises.

Other than meeting the fundamental prerequisites of administrative control. The planning

exercise additionally covers the long haul capital planning, which is introduced as yearly

arrangement.

Targets OF THE BUDGETARY SYSTEM: To get ready yearly spending plans in such a

way those administrators at different levels in association do periodical exercise in regard

of each contact or mindful community for physical arranging and coordinating assets

separated into month to month targets or money streams. To present and work in charge

of accomplishment of indicated focuses with the recourses designated for the reason.

To realize powerful co-ordinate of all exercises of the association and To outfit benefit
divisions to meet viably the prerequisites of task. Spending PERIOD AND PHASING:

The spending time frame or yearly brings forth ought to with the budgetary year. In

October consistently the monetary allowance should drawn up for the guaranteeing the

money related year as Budget gauges budgetary year as Revised Estimates [R.E].In

expansion the financial plans are to be checked on month to month premise by venture

survey groups, in the light of real use and projections in the spending time frame. Budegt

ought to demonstrate month to month staging of. Consumption and focuses for the first

and quarterly staging for the second 50% of the year.

At the season of survey of the spending appraisals to outline reconsidered gauges the

quarterly Phasing ought to be separated into month to month staging. While drawing up

the real spending plan in October consistently, the long haul capital spending plan for

progressing and new plans ought to be planned as separated of activity as arrangement of

yearly arrangement.

The long haul capital spending plan ought to demonstrate for a time of six years

following the spending time of six years following the spending time of six years

following the spending time frame shrewd yearly staging of the capital consumption and

physical timetables response based system. Spending HEADS: For uniform bookkeeping,

it is basic that expenses are gathered for every one of the manufacturing plant however

this may include part up of installments against contracts which grasp in excess of one

framework.
Allotment of the cost as framework insightful manages a sound reason for cost

bookkeeping, between firm examinations and gives important contributions to the

information bank. Spending arrangements are identified with venture gauges and

checking of genuine consumption where as control factors for part control and

instrumentation framework.

Processing plant funneling which incorporates pipelines, for cinder water mains, packed

air framework and common works channeling. Assistant pumps for water treatment plant

and common works framework. On the off chance that there are, any agreements not

canvassed in the spending sets out arrangements toward such contracts ought to be

appeared against the fitting framework by head by including code number.

Kinds OF BUDGETS IN HERITAGE DAIRY PRODUCT INDUSTRIES LIMITED: As

indicated by the nature consumption spending plan are arranged under: ? Direct capital

expense on works ? Technical consultancy ? incidental development amid development ?

Employee cost Other foundation costs: ? Training and enlistment ? Preliminary costs ?

misc.brought-out resources ? cash spending plan ? Township spending plan BRIEF

EXPLANATION TO THE NATURE OF EXPENDITURE INCLUDED IN EACH

BUDGET IS INDICATED BELOW: Accidental EXPENDITURE DURING

CONSTRUCTION PERSONEL PAYMENT: These includes pay, compensation,

recompense, commitment of PF and different assets and different costs, for example,

LIC, medicinal repayment, flask endowment and so forth any arrangement of regions of

pay/D.A.
OFFICE AND OTHER EXPENSES: Costs coincidental to development and capital

works not traceable specifically to accidental use, amid commitment types of gear,

vehicle running cost, office lease. LC and cost of illustrations, voyaging costs, printing

and stationary, correspondence costs, notice for tenders and so forth. are real things in the

classification.

Preparing RECRUITMENT and OTHER DEFFEREDREVENUE EXPENDITURE: The

initial segment of the spending comprises of costs for preparing officials, and Non

official students, lease for preparing corridors and costs for administration improvement

courses. The second part comprises of costs for enlistment, for example, notice for

enrollment, talk with costs, T.A.

Applicant and so on the third part consolidates preparatory costs including enlistment

charges and research promotion improvement costs. Incidental BOUGHT OUTPASSES:

Vehicles, furniture and apparatuses supplies, doctor's facility and restorative gear.

Different evaluates township figure in the financial plan.

Survey OF PROJECT BUDGET: Month to month REVIEW: At month to month

interims, the financial backing ought to be evaluated by venture audit board of trustees

[PRC]. Task spending plan should report genuine use against spending heads. Work heads

and corporate spending plan by the seventh of month following the report month. The

month to month survey ought to be inspected by venture audit group [PRT], who should
record varieties for any varieties and proposed for using works in the minutes of the

gatherings explanations behind any varieties on account of spending heads surpassing

10% of the spending gauges changed evaluations or whichever is Rs.5 lakhs should to be

dissected and report upon. QUTERLY REVIEW: PRT should direct a quarterly spending

audit with a view to anticipating foreseen consumption amid the year against endorsed

spending gauges/updated gauges. As time is quintessence of such survey, just a snappy

audit of foreseen use for singular spending heads including arrangements surpassing

Rs.50 lakhs for each situation should to be made and detailed in minutes to PRT.

For this reason, venture spending plan ought to outfit all the applicable information to

extend director [project] and arranging and framework by the 10th,of the month

following the quarter venture spending advisory group should audit the genuine

consumption and evaluate foreseen use contract co-appointment/designs in control. The

appraisals of foreseen consumption should to be outfitted by the venture spending board

to General Manager [project] by the 30th of the month following the quarter under

survey.

Financial plan OF SERVICE DIVISION/CORPORATE BUDGETS: A survey of

spending plans of administration and corporate divisions should to be led at quarterly

interims by corporate spending plan committee[CS'C].For this reason corporate records

should report genuine use up to the Ned of the quarter by the tenth of the month

following quarter to corporate spending plan and spending plan coordination of the rest

of the time of the year must to be sent to the corporate spending plan should set up a

united report division savvy and venture insightful to corporate spending plan
committee[CBC] by the fifteenth of the may, August, November and February

consistently.

Destinations OF THE CURRENT BUDGETARY CONTROL SYSTEM IN HERITAGE

DAIRY PRODUCT INDUSTRIES LIMITED, The current budgetary control framework

working stage has been arranged to accomplish the accompanying destinations. ? To

control real execution with reference to principles/standards adjusted in the monetary

allowance learn the deviations break down and set up the reasons.

 To recognize requirements in generational and opportune activity for

estimation limitations. ? To screen the age of inner recourses in order to guarantee

the accessibility of sufficient assets. To set up the income spending in order to

determining the periodical Productivity of the association.

 To create benchmarks/standards of execution in the different zones of

Operation and upkeep in light of the experience. ? To guarantee powerful arrange

arranging of all exercises so every one of the sources of info and administrations

vital for accomplishing the physical targets are accessible at fitting time. ? To give

information with respect to operational standards and cost to formulate levy.

 To give information premise to appraisal of working capital

prerequisites ? To control the working capital especially book obligations extras

and different things stock. ? To enhance gainfulness and inside recourses age.

Extent OF THE PERFORAMNCE BUDGET: The financial plan for task and

support exercises will be called execution spending activity.

 This, as a result, implies that every money related focus in the spending will be

founded on execution focuses in physical terms. The current budgetary control

framework activity pays visualizes age

INDUSTRY PROFILE AND COMPANY PROFILE India is second largest maker of

nourishment alongside China, and has the capability of being the greatest with the

sustenance and horticultural part. The aggregate sustenance generation in India is maybe

going to twofold in the following ten years and there is an open door for substantial

interests in nourishment and sustenance preparing advances, abilities and gear,

particularly in territories of Canning, Dairy and Food Processing, Specialty Processing,

Packaging, Frozen Food/Refrigeration and Thermo Processing.

Organic products are milk products and its related products means (butter and gee curd

and butter milk are vital sub-parts of the sustenance handling industry. Wellbeing

nourishment and wellbeing sustenance supplements is another quickly rising fragment of

this industry which is increasing immense notoriety among the wellbeing cognizant. India
one of the bigest universes significant nourishment makers yet represents under 1.5 for

every money of global sustenance exchange.

This demonstrates immense extension for the two speculators and exporters.

Nourishment trades in 1998 remained at US $5.8 billion though the world aggregate was

US $438 billion. The Indian sustenance ventures deals turnover is Rs 150,000 crore every

year as toward the beginning of year 2001.

The business has the most elevated more plants affirmed by the US Food and Drug

Administration outside the USA. India's nourishment preparing area covers leafy foods;

drain and drain items, mixed drinks, fisheries, manor, grain handling and other shopper

item bunches like candy store, chocolates and cocoa items, Soya-based items, mineral

water, high protein sustenances and so on.

We cover a comprehensive database of a variability of providers, makers, exporters and

merchants generally managing in areas like the - Food Industry, Dairy preparing, Indian

drink industry and so into view. We additionally cover segments like dairy plants,

canning, packaging plants, bundling enterprises, process hardware and so on.

The most encouraging sub-areas incorporates - Soft-drink packaging, Confectionery

fabricate, Fishing, aquaculture, Grain-processing and grain-based items, preparing,

Alcoholic refreshments, Milk handling, Tomato glue, Fast-sustenance, Ready-to-have

breakfast oats, Food added substances, flavors. Nourishment handling The nourishment
business is the complicated, worldwide group of different organizations that together

supply a important part of the sustenance energy devoured by the total populace.

Just subsistence agriculturists, the individuals who get by on what they develop, can be

considered outside of the extent of the advanced nourishment industry. Sustenance

handling is the strategies and systems used to change crude fixings into nourishment for

human utilization. Sustenance preparing takes clean, reaped or butchered and butchered

segments and uses them to deliver attractive nourishment items.

There are a few diverse manners by which sustenance can be delivered. One Off

Production This technique is utilized when clients make a appeal for a remark made to

their own particular details, for instance a wedding cake. The making of one off Products

could take days contingent upon how complicated the plan is and furthermore the

capacity of the culinary expert making the item.

Bunch Production This strategy is utilized when the span of the market for an item isn't

clear, and where there is a range inside a product offering. A specific number of similar

merchandise will be delivered to make up a bunch or run, for instance at Gregg's Bakery

they will prepare a specific number of chicken heats. This strategy includes evaluating

the measure of clients that will need to purchase that item.

Large scale manufacturing this strategy is utilized when there is a bulk market for

countless items, for instance, chocolate bars, prepared dinners and canned nourishment.
The item goes starting with one phase of generation then onto the next along a creation

line. Without a moment to spare This strategy for generation is essentially utilized as a

part of sandwich bars, for example, Subway, it is the point at which every one of the

segments of the item are there and the client picks what they need in their item and it is

made for them new before them.

Discount AND DISTRIBUTION An immense worldwide transportation arrange is

required by the sustenance business with a specific end goal to associate its various parts.

These incorporate providers, makers, warehousing, retailers and the end buyers. There are

additionally those organizations that, amid the sustenance handling process, include

vitamins, minerals, and other vital prerequisites typically lost amid readiness.

Discount markets for crisp sustenance items have tended to decrease in significance in

OECD nations and also in Latin America and some Asian nations because of the

development of grocery stores, which get straightforwardly from ranchers or through

favored providers, as opposed to experiencing markets. The consistent and continuous

stream of item from conveyance focuses to store areas is a basic connection in

nourishment industry tasks.

Appropriation focuses run all the more proficiently, throughput can be expanded,

expenses can be brought down, and labor better used if the best conceivable advances are

taken when setting up a material taking care of framework in a distribution center. The

Indian nourishment advertise is assessed at over US$ 182 billion, and records for around
66% of the aggregate Indian retail showcase.

Further, as per consultancy firm McKinsey and Co, the retail nourishment part in India is

probably going to develop from around US$ 650 billion of every 2011 to US$ 160 billion

by 2025, representing an extensive lump of the world sustenance industry, which would

develop to US$ 400 billion from US$ 175 billion by 2025. Fares Fares of farming items

from India are required to dramatically increase to top US$ 20.6 billion in the next five

years, as indicated by the business service.

As per gauges by the APEDA, the offer of India's homestead item sends out in the

worldwide exchange will develop from 2 for every money currently to more than 5 for

each change. Fares of crisp and handled vegetables, natural products, domesticated

animals and grains rose 10 for each currency to US$ 8.67 billion of every 2011-2014.

Flavors In spite of a worldwide lull, Indian flavor sends out are developing.

India sent out 470,520 tons of flavors esteemed at US$ 11.68 billion-an unequaled high-

in 2011-2014. Amid the 2013-14, 444,250 tons esteemed at US$ 11.01 billion were sent

out. Contrasted and 2013-14, sends out had demonstrated an expansion of 19 for each

currency in rupee esteem and six for each currency in dollar terms.

Nourishment PROCESSING The Indian bundled handled sustenances industry is

assessed at US$ 10.87 billion - US$ 13.05 billion, including scones, chocolates, dessert,

candy parlor, bites, cheddar and spread. Developing at a solid 14-15 for every currency in
the course of the last two-three years, significant players in the segment incorporate

Britannia, Nestle, Amul, ITC Foods, Parle, Kellogg's, GlaxoSmithKline, Wrigley and

Frito-Lay, among others. The business got outside direct speculations (FDI) totalling US$

143.80 million out of 2011-2014against US$ 5.70 million in the past financial. The

aggregate FDI got by the business from April 2000-August 2014 remained at US$ 878.32

million. In any case, India's offer in fares of handled sustenance in worldwide exchange is

just 1.5

for each currency; though the span of the worldwide prepared nourishment showcase is

assessed at US$ 3.2 trillion and about 80 for every currency of horticultural items in the

created nations get prepared and bundled. With a exact end goal to additionally develop

the sustenance handling industry, the administration has defined a Vision-2015 activity

design under which particular targets have been set.

This incorporates tripling the span of the sustenance preparing industry from around US$

80 billion to about US$ 210 billion, raising the level of handling of perishables from 5 for

every currency to 20 for each currency, expanding esteem expansion from 20 for every

currency to 35 for every currency, and improving India's offer in worldwide nourishment

exchange from 1.5 for each currency to 3 for every currency. This would require a

venture of US$ 20.6 billion.

As per an Ernst and Young (E&Y) introduction, the nourishment handling industry in

India will grow 30-40 for every currency as against the present 15 for each currency in
the following 10-years. Executive Dr Manmohan Singh on October 6, 2010 laid out an

outline for quick development in the nation's sustenance preparing area. The Prime

Minister said this can be accomplished by disentangling the duty structure, detailing a

National Food Processing Policy and enhancing provincial foundation.

Additionally, as per Union Minister for Food Processing Industries, Subodh Kant Sahai

the focal government is imagining a speculation of US$ 21.50 billion in the sustenance

preparing industry throughout the following five years, a noteworthy lump of which it

intends to pull in from the private area and money related foundations.

Tidbits AND CONFECTIONERY The Indian market holds colossal development

potential for nibble sustenance, which is assessed to be worth US$ 3 billion, with the

marked bite showcase evaluated to be around US$ 1.34 billion, developing at 15-20 for

each currency a year. While the development rate of the US$ 1.56 billion disorderly area

is 7-8 for each currency.

Wellbeing FOOD Perceiving the development capability of the marked wellbeing

nourishment division in India, quick moving shopper merchandise (FMCG) majors are

foraying into this part bigly. As Hindustan Lever Ltd (HUL) is test advertising its

wellbeing sustenance mark, Kissan Amaze, in three southern states in India, Godrej

Hershey Foods and Beverages Ltd (GHFBL), a joint wander between Godrej Beverages

and Foods Ltd and Hershey Company, is intending to present choose brands from its
universal portfolio in the residential market. DAIRY As indicated by Dairy India 2014

assessments, the present size of the Indian dairy area is US$ 62.67 billion and has been

developing at a rate of 5 for each currency a year. The dairy sends out in 2011- 12 rose to

US$ 210.5 million against US$ 113.57 last financial, though the household dairy area is

slated to cross US$ 110 billion in incomes by 2014. India keeps on being the biggest

maker of drain on the planet.

COMPANY PROFILE
ThetHeritagetGroup,tfoundedtint1992tbytSritNaratChandratBabutNaidu,tistonetoftthetfas

testtgrowingtPrivatetSectortEnterprisestintIndia,twithtfour-

businesstdivisionstviz.,tDairy,tRetail,tAgri,tandtBakerytundertitstflagshiptCompanytHeritagetFoo

dst(India)tLimitedt(HFIL).tThetannualtturnovertoftHeritagetFoodstcrossedtRs.1096tcrorestint201

3-14.

PresentlytHeritage’stmilktproductsthavetmarkettpresencetintAndhratPradesh,tKarnataka,t

Kerala,tTamiltNadu,tMaharashtratandtOrissatandtitstretailtstorestacrosstBangalore,tChennaitandt

Hyderabad.tIntegratedtagritoperationstaretintChittoortandtMedaktDistrictstandtthesetaretbackbon

ettotretailtoperationstandtthetstatetoftarttBakerytdivisiontattUppal,tHyderabad,tTelangana.
 Intthetyeart1994,tHFILtwentttotPublictIssuettotraisetresources,twhichtwastoversubscribe

dt54ttimestandtitstsharestaretlistedtundertB1tCategorytontBSEt(StocktCode:t519552)tandtNSEt(

StocktCode:tHERITGFOOD)

Abouttthetfounder:

SritChandratBabutNaidutistonetoftthetgreatesttDynamic,tPragmatic,tProgressivet

andtVisionarytLeaderstoftthet21sttCentury.tWithtantobjectivetoftbringingtprosperitytinttot

thetruraltfamiliestthroughtco-

operativetefforts,thetalongtwiththistrelatives,tfriendstandtassociatestpromotedtHeritagetF

oodstintthetyeart1992ttakingtopportunitytfromtthetIndustrialtPolicy,t1991toftthetGovern

menttoftIndiatandthethastbeentsuccessfultinthistendeavour.t

Attpresent,tHeritagethastmarkettpresencetintalltthetstatestoftSouthtIndia.tMoretth

antthreetthousandtvillagestandtfivetlakhtfarmerstaretbeingtbenefitedtintthesetstates.tOntt

hetothertside,tHeritagetistservingtmoretthant6tlakhtcustomerstneeds,temployingtmorettha

nt700temployeestandtgeneratingtindirectlytemploymenttopportunityttotmoretthant5000tp

eople.tBeginningtwithtathumbletannualtturnovertoftjusttRs.4.38tcrorestint1993-

94,tthetsalestturnoverthastreachedtclosettotRs.1096tcrorestduringtthetfinancialtyeart2010

-2011.

SritNaidutheldtvarioustcovetedtandthonorabletpositionstincludingtChieftMinistert

oftAndhratPradesh,tMinistertfortFinancet&tRevenue,tMinistertfortArchivest&tCinemato

graphy,tMembertoftthetA.P.tLegislativetAssembly,tDirectortoftA.P.tSmalltIndustriestDev

elopmenttCorporation,tandtChairmantoftKarshakatParishad.
 SritNaiduthastwontnumeroustawardstincludingt"tMembertoftthetWorldtEconomic

tForum'stDreamtCabinet"t(TimetAsiat),t"SouthtAsiantoftthetYeart"t(TimetAsiat),t"tBusin

esstPersontoftthetYeart"t(EconomictTimes),tandt"tITtIndiantoftthetMillenniumt"t(tIndiat

Today).

SritNaidutwastchosentastonetoft50tleaderstattthetforefronttoftchangetintthetyeart

2000tbytthetBusinesstWeektmagazinetfortbeingtantunflinchingtproponenttofttechnologyt

andtforthistdrivettottransformtthetStatetoftAndhratPradesht.

Forwardtlookingtstatements:t“Wethavetgrown,tandtintendedttotgrow,tfocusingtontharn

essingtourtwillingnessttotexperimenttandtinnovatetourtabilityttottransformtourtdrivettow

ardstexcellencetintquality,tourtpeopletfirsttattitudetandtourtstrategictdirection.t

Missiont&tvision

Missiont

BringingtprosperitytintotruraltfamiliestoftIndiatthroughtco-

operativeteffortstandtprovidingtcustomerstwiththygienic,taffordabletandtconvenienttsupplytoft"Fr

eshtandtHealthy"tfoodtproducts.

Visiont

TotbetatprogressivetbilliontdollartorganizationtwithtatpantIndiatfoottprinttbyt2015.

Totachievetthistbytdelightingtcustomerstwitht"FreshtandtHealthy"tfoodtproducts,tthosetaretatben

chmarktfortqualitytintthetindustry.

Wetaretcommittedttotenhancedtprosperitytandtthetempowermenttoftthetfarmingtcommunitytthro

ughtourtuniquet"RelationshiptFarming"tModel.
Totbetatpreferredtemployertbytnurturingtentrepreneurship,tmanagingtcareertaspirationstandtprovi

dingtinnovativetavenuestfortenhancedtemployeetprosperity.

HeritagetSlogan:

tWhentyoutarethealthy,twetarethealthyt

tWhentyoutarethappy,twetarethappyt

tWetlivetfortyourt"HEALTHt&tHAPPINESS"t

PROMOTERSt(HINT:t-tCEO,tDIRECTORS)

BoardtOftDirectors

SritD.tSeetharamiah Chairman

Dr.tA.tAppatRao Director

Dr.tV.tNagarajatNaidu Director

Dr.tN.tRtSivaswamy Directort

SritN.tPtRamakrishna Director

SmttN.tBhuvaneswari Vice-Chairmant&tManagingtDirector

SritLokeshtNara ExecutivetDirector

CoretManagementtTeam

Dr.tM.tSambaSivatRao President

CAtAtPrabhakaratNaidu VicetPresidentt

UmakantatBarik CompanytSecretaryt

KtDurgatPrasadatRao ChieftOperatingtOfficert

StJagdishtKrishnan ChieftOperatingtOfficert

AniltKumartSrivastava ChieftOperatingtOfficer
tQualitytpolicytoftHFIL:

tWetaretcommittedttotachievetcustomertsatisfactiontthroughthygienicallytprocessedtandt

packedtMilktandtMilktProducts.tWetstrivettotcontinuallytimprovetthetqualitytoftourtprod

uctstandtservicestthroughtupgradationtofttechnologiestandtsystems.t

Heritage'stsoulthastalwaystbeentimbibedtwithtantunwrittentperpetualtcommitmen

tttotitself,ttotalwaystproducetandtprovidetqualitytproductstwithtcontinuousteffortsttotimp

rovetthetprocesstandtenvironment.t

Adheringttotitstmoraltcommitmenttandtitstcontinuoustdrivettotachievetexcellence

tintqualitytoftMilk,tMilktproductst&tSystems,tHeritagethastalwaystbeentlayingtemphasis

tontnottonlytreviewingt&tre-

definingtqualitytstandards,tbuttalsotintimplementingtthemtsuccessfully.tAlltactivitiestoft

Processing,tQualitytcontrol,tPurchase,tStores,tMarketingtandtTrainingthavetbeentdocum

entedtwithtdetailedtqualitytplanstinteachtoftthetdepartments.

TodaytHeritagetfeelstthattthetISOtcertificatetistnottonlytantepitometoftachievedtt

argets,tbuttalsotatscalettotidentifyt&treckon,twhattistyetttotbetachievedtontatcontinuoust

basis.tThough,tittistatbeginning,tHeritagethastinitiatedtthetprocesstoftstandardizingtandta

doptingtsimilartqualitytsystemstattmosttoftitstothertplants.

Commitments:

MilktProducers:

Changetintlifetstylestoftruraltfamiliestinttermstof:
  Regularthightincometthroughtco-operativetefforts.

 Womentparticipationtintincometgenerationt.

 Savedtfromtpricetexploitationtbytun-organizedtsectort.

 Remunerativetpricestfortmilk.

 Increasetoftmilktproductivitytthroughtinputtandtextensiontactivitiest

 Shifttfromtriskytagriculturettotdairytfarmingt

 Heritaget

 Financialtsupporttfortpurchasetoftcattle;tinsuringtcattlet

 EstablishmenttoftCattletHealthtCaretCenterst

 SupplyingthightqualitytCattletfeedt

 Organizingt"RythutSadasu"tandtVideotprogrammestforteducatingtthetfar

merstintdairytfarmingt

Customers:t

 TimelytSupplytoftQualityt&tHealthytProductst

 Supplythightqualitytmilktandtmilktproductstattaffordabletpricest

 FocusedtontNutritionaltFoodst
  Moretthant4tlakhthappytcustomerst

 Hightcustomertsatisfactiont

 24thoursthelptlinest(t<10tcomplaintstatday)t

Employees:

 EnhancingtthetTechnicaltandtManagerialtskillstoftEmployeestthroughtcon

tinuousttrainingtandtdevelopmentt

 Besttappraisaltsystemsttotmotivatetemployeest

 Incentive,tbonustandtrewardtsystemsttotencouragetemployeest

 Heritagetforgestaheadtwithtatmottot"addtvaluettoteverythingtyoutdo"t

Shareholders:

Returns:tConsistenttDividendtPaymenttsincetPublictIssuet(Januaryt1995)t

Service:t

 Highesttimpotencettotinvestortservice;tnotnoticetfromtanytregulatorytauth

oritytsincet2001tintrespecttoftinvestortservicet

 Veryttransparenttdisclosurest

Suppliers:
tDoehlar:ttechnicaltcollaborationtintMilktdrinks,tyogurtstdrinkstandtfruittflavouredtdrin

kstAlfa-Laval:tsuppliertofthigh-

endtmachinerytandttechnicaltsupporttFocusingtontTetratpacktassociationtfortproductstpa

ckage.

QUALITIEStOFtMANAGEMENTtPRINCIPLES:

1. Customertfocusttotunderstandtandtmeettthetchangingtneedstandtexpectati

onstoftcustomers.

2. Peopletinvolvementttotpromotetteamtworktandttaptthetpotentialtoftpeople

3. Leadershipttotsettconstancytoftpurposetandtpromotetqualitytculturettroug

htouttthetorganization.

4. Processtapproachttotassesstthetefficiencytandteffectivenesstofteachtproces

s.

5. Systemstapproachttotunderstandtthetsequencetandtinteractiontoftprocess.

6. Factualtapproachttotdecisiontmakingttotensuretitstaccuracy.

7. Continualtimprovementtprocessestfortimprovedtbusinesstresults.

8. Developmenttoftsuppliersttotgettrighttproducttandtservicestintrightttimetat

trighttplace.
FacttSheett(Milestones)

Awardst&tRecognitiont1sttprizetintEnergytConservation

MaintDairytPlant,tGokul,tneartKasipentlatontTirupati-

tChittoortHighwaythadtwontthetPrestigioust1sttprizetintEnergytConservationtfortthetYeart2010ta

ttthetNationaltLeveltfortit'stoutstandingtperformancetintconservingtthetNaturaltResourcestthroug

htthetmosttefficienttusetoftEnergy.

THEtGREATtINDIANtICEtCREAMtCONTESTt2009

Contacttust(Hintt:-tAddresstOftthetcompanytortplanttlocationt“HeadtOffice”)

CorporatetOffice

HeritagetFoodst(India)tLimitedt

6-3-541/C,tPanjagutta,

Hyderabad,tAP.t

Phonet:t040t-t23391221/222t

Faxt:t040t-t23318090t

Emailt:thfil@heritagefoods.co.in
Productstoftthetcompanyt(FortMarketingtProjectstwithtLogotiftittistpossible)

Milk

2.FulltCreamtM 3.DoubletTon 4.GoldentCowt 5.Standardisedt

1.TonedtMilk ilk edtMilk Milk Milk 6.SlimtMilk

7.UHTtTonedt 8.UHTtSlimtMi 10.Manjunathat 11.Ezhumalait 12.Padmana

Milk lk 9.SmarttMilk Milk Milk bhatMilkt

MilktProductst-tFresh

1.TonedtMilktC 2.FulltCreamtM 3.CurdtPouc 4.FruittntCurdt 6.JeeratButt

urdtCup ilktCurdtCup h Cup 5.ButtertMilk ertMilk

7.GarlictButtert 9.CookingtB 10.PasturisedtT 11.CheesetChipl 12.Cheeset

Milk 8.Paneer utter abletButter ets Slice

13.Cheeset-

tCartont&tTint 15.MilktCak 16.MalaitLadd 18.SoantPa

Packs 14.Doodhpeda e u 17.Sunundalu pidi

MilktProductst-tLongtShelftLife

1.GheetPolypac

kt- 2.GheetAlutFoil

tCowt&tBuffal t- 3.GheetJart- 4.GheetTint- 5.SkimmedtMil 6.DairytWh

o tCowt&tBuffalo tCow tBuffalo ktPowder itenert

IcetCream

1.SmalltCup 2.LargetCup 3.Kulfi 4.TwintBars 5.Sundae 6.Novelties

7.CelebrationtC 9.BartNovelti 11.SundaetMagi 12.HometP

one 8.Chocobars es 10.JuicytBar c acks

14.PremiumtTu 15.UtsavtPac 16.PartytPacks

13.Eco-Packs bs ks t t t

Beverages
1.PackagedtDri 4.FlavouredtMilkt- 5.FlavouredtMil 6.Sweet

nkingtWater 2.PremiumtTea 3.PopulartTea tBottles kt-tTetrapack tLassi

9.GroundtCof

7.FruittLassi 8.InstanttCoffee feet t t t

CleaningtAids

6.Floort

1.UtensiltClean 2.ToilettCleaner 3.SolidtFresh 4.Glass/OthertClea 5.BartDetergent Cleaner

ers s ener ners s st

DailytFreshtNeeds

6.Herita

2.HeritagetMilk 3.HeritagetBr 4.HeritagetPremiu 5.HeritagetSand getFruitt

1.PoultrytEggs tBread owntBread mtMilktBread wichtBread Bread

7.HeritagetMu 8.InstanttMixtF

mbaitPav oodt t t t

GeneraltMerchandise

6.Kitche

3.FacetTissue ntTowel

1.ToilettTissues 2.PapertTowels s 4.Candles 5.Agarbatti st

Healtht&tBeauty

2.LiquidtHandt 3.ToothtBrus

1.HairtOils Wash h t t t

InstanttFood

6.Southt

Indiant

4.NorthtIndiantRe Readyt

1.Appalams 2.CerealtBased 3.Fryums adytMixes 5.Papads Mixes

7.Vermicelli t t t t t
ReadytFoods

1.Chilly/Soyat 3.IndiantSwe 4.Jams/Marmalade

Based 2.Honey ets s 5.Namkeens 6.Pickle

7.TomatotBase

d t

t
 CHAPTER-4

ANALYSIS AND INTERPRETATION

HERITAGElFOODSlINDIAlLIMITED

REVENUElSTATU

TABLE-Il(RSlINlCRORES)

No Particularsl Budgeted Actuallforlthelyea

rl
Estimatedlforlthel

2016-17
yearl2016-17

Amount SMT Amount Rs\m

P t

1 Sales

2 Fixedlandlrecovery 724 72.4 618 61.8

3 Variablelcostlrecovery 840 84.0 740 74.0

4 Fuellpriceladjustmentlrecove 820 82.0 863 86.3

ry

5 Ownlconsumptionl 132 13.2 148 14.8

6 Totallofl.1 2516 251.6 2369 236.

7 Averagelintensives 102 10.2 98 9.8

8 Otherlincome 56 5.6 49 4.9

9 Grandltotal(1+2+3) 2674 267.4 2516 251.

ANALYSIS:l

lTheldatalpertainingltolthelgenerationlandlconsumptionloflDAIRYlPRODUCTlatlHerita

gelFoodslIndialLimitedlhavelbeenlobtainedlfromlthelyearl2016-

17landlpresentedlinlTable-

1.ThelaspectlincludedlareltotallgenerationloflDAIRYlPRODUCTlin(coreslRs)landlutiliza

tionlforlauxiliarylconsumption,lrawlmateriallconsumptionlandllinelstorelrespectively.

lDuringlthelyearl2016-

17lthelsales,lfixedlcost,lvariablelcost,lfuellprice,lconsumptionlwasldecreased.lWhenlthel

estimatedlbudgeted,lsolsaleslconsumptionlisl236.9%lrespectively.

lDuringlthelyearl2016-

17lthelaveragelintensiveslareldecreasedl9.8%,therelincomelalsoldecreasedl4.9%lrespecti

vely.

lFinally,lwithlregardltolthelresultlinlrevenuelbudgetloflHeritagelDAIRYlPRODUCTlindu

striesllimited,ltotallyldecreasedl251.6%linlthelyearl2016-17lrespectively.

THElHERITAGElINDUSTRIESlLIMITEEDlOPERATIONALlEXPENDITUR

ElBUDGETlFORlTHElYEARl2016-17

TABLE-IIl(RSlINlCRORES)
Sino Particulars Budgetedlestimatedlforlthe Actuallforlthel

l
yearl2016-17

2016-17

1l Variablelcost Amount Rs Amount Rs

2l Rawlmaterial 420 42.0 450 45.0

3 Milk 200 20.0 220 22.0

4 Totallofl.1 870 87.0 920 92.0

5 Operativelmaintainedlcost

6 Chemicalslandlwater 130 13.0 150 15.0

7 Repairsl&lmaintenance 280 28.0 300 30.0

8l Employeelcost 320 32.0 350 35.0

9 Stationaryl&lgenerallexpense 65 6.5 80 8.0

10 Rebate 11 1.1 13 1.3

11 Sharelofloperatinglexpenses 8 0.8 10 1.0

12 Totallof-2 1684 168.4 903 90.3

13 Financelchargesl

14 Deprecation 42 4.2 15 1.5

15 Interestlonlfixedlcapita 18 1.8 20 2.0

16 Totalof-3 60 6.0 35 3.5

17 lGlandltotall(1+2+3) 1744 17.44 1916 191.6

ANALYSIS:

Observedlfromlthelaboveltablelthatlthel"OperationallExpenditurelBudget"loflHeritagelF

oodslIndialLimitedlinlthelyearl2016-17.

lInlthelyearl2016-

17lvariablelcostlcomponents,lRawlmateriallconsumptionl45%lincreasedlandlthelmilklco

nsumptionl47%lalsolincreased.

lInloperatingl&lmaintainlaceslcostlcomponents,lchemicalsl&lwater,lrepairl&lmaintenan

ce,lemployeelcost,lstationaryl&lgenerallexpenseslrebatelandlshareloflotherlexpenseslinl

alllarelfluctuatinglexpensesloflthelyearl2016-

17.howleverltheltotalloperatinglmaintenancelcostslarel90.3%ldecreasinglrespectively.

lInlfinancelchargesldepreciationlandlinterestlonlfixedlcapital,lhaslbeenlincluded,ltheltotal

lfinancelchargeslrecordingldecreasinglofl3.5%linlthelyearl2016-17lrespectively.

FinallylwithlregardltoltheloperationallexpenditurelbudgetloflHeritagelFoodslIndialLimite

dltheltotallprofitlhaslincreaselwithl191.6%lduringlthelyearl2016-17.

TheloveralllbudgetlresultsloflHeritagelDAIRYlPRODUCTlislindustriesllimitedlislear

ninglmorelprofits.

CASHlFLOWlSTATEMENTlFORlTHElYEARlENDEDl31STlMARCH,l2017

CASHlFLOWlFROMlOPERATINGlACTIVITIES
Netlprofitlbeforeltax 3,41,78,32,892 80,92,92,132

lAdjustmentslfor:l

lDeprecation 58,30,64,022 l51,57,16,762l

Loss/profitlonlfoodlassetslsold/disable 5,45,85,229 5l,76,15,772l

Losslonlsalelofllongltermlinvestments 3,58,952 -l

Incomelfromllongltermlinvestmentsl(otherltrades) 4,91,46,881 2,61,37,771

Interestlpaid/payablelonlloansletc 33,50,30,376 32,75,37,771

interestlreceived/receivablelonlloans 2,50,55,563 9,05,21,426

lprovisionlforldoubtfulldebts/advances/deposits 3,82,15,119 -

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

debts/advances/depositslwrittenloff 5,34,50,070 55,44,394

longltermlinvestments(otherlthanltrade)writtenloff 7,700 l-

Unrealizedlloss/gainlonlforeignlcurrencylfluctuatio 2,95,96,073 19,16,075

provisionlforldiminutionlinlvalueloflinvestments ------ 1,10,09,232

4,28,13,42,377 1,46,13,41,338

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

Cashlgeneratedlfromloperationsl

Directltaxes/refund (93,49,80,671) l6,31,57,979

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

OPERATINGlPROFITlBEFORElWORKINGlCAPITALlCHANGES

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

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

CASHlFLOWlSTATEMENTlFORlTHElYEARlENDEDl31STlMARCHl2017

Cashlflowlfromlinvestigatinglactivities

purchaseloflfixedlassets (4,17,22,87,73) (2,22,09,13,891

Saleloflfixedlassets 6,22,31,087 6,83,68,985

Proceedslfromlsaleloflrefractorylunit 1,60,00,000 2,50,00,000

Investmentlinlshares 2,66,224 2,01,87,974

Proceedslfromlsaleloflrefractoryl

Unitlfromlsaleloflshares 13,42,476 --l

Incomefromllonglteamlinvestments 4,91,46,881 2,51,37,527

Loans/depositslgiven 65,05,00,000 1,15,90,00,000

Registrationloflloans/depositslgiven 1,00,80,000 1,48,08,25,000

Interestlreceivedlonlloans 2,13,22,677 8,07,36,965

Netlcashusedlinlinvestinglactivities l3,66,50,30,842 l8,07,36,965

 Cashlflowlfromlfinancinglactivitiesl

Allotmentlmoneylreleased 3,150 4,500l

Longltermlborrowings 3,47,00,00,000 1,93,00,00,000

Short-termlborrowings 11,53,25,82,956 5,53,69,08,223

Long-termlborrowings (70,31,00,557) (48,37,39,218)

Short-termlborrowings (11,99,94,40,000) (5,91,42,30,841

lIncreaselinlcashlcreditlandloverdraftslfromlbanks 23,36,27,575 7,66,75,770

lInterestlpaid (48,27,22,502) (33,84,31,360)

lDividendslpaid (35,06,99,081) (13,05,42,125)

lNetlcashlfromlfinancinglactivities 1,70,53,90,985 67,42,71,694

lNetlincreaselinlcashlandlcashlequivalents 2,41,08,712 5,04,39,979

lOpeninglcashlandlcashlequivalents 24,83,13,629 19,78,35,867l

lCashlandlcashlequivalentsltakenloverl

lConsequentluponlimagination ---- 37,783

Closinglcashlandlcashlequivalents 27,24,22,341 24,83,13,629

PROFITlANDlLOSSlACCOUNTlFORlTHElYEARlENDEDl31STlMARCHl2017

Schedule 2014-15 2015-16

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

Lesslexciselduty 3,07,41,00,000 2,04,63,80,752

Netlsales 22,06,96,60,339 16,13,17,74,542

Otherlincomel13 49,04,06,410 53,74,29,621

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

EXPENDITURE

Finishedlgoodsl14 9,20,98,35,678 7,61,14,89,922

Andladministrationlexpensesl15 9,03,43,03,781 7,40,51,67,576

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

Lessltransferlfromlcapital

reserveloflasserts 1,21,74,487 1,48,449,493

Schedule 52,30,64,022 51,57,16,762

Interestl16 33,l50,30,375 32,75,37,771

PROFITlBEFORElTAXATION

Provisionlforlcurrentltaxation 75,00,00,000 34,00,00,000

Provisionlforlbenefitltax 1,10,00,000 1,22,00,000

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

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

Nl

Proposedldividendl ------l 13,72,29,954

Taxlonlproposedldividend ------ l1,92,46,501

lIntendividendl 18,29,73,272l l--------

lTaxlonlintentldividendl 2,56,,62,001l l-----

lGenerallresenel 30,00,00,000l 5,00,00,000

BalancelCarriedlTolShcedule2l 50,86,35,273l 20,64,70,455

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

Earningslperlsharel 58.08l 9.99

lBALANCElSHEETlOFlHERITAGElFOODSlINDIAlLtd

l(Rs.Crore)
BalancelSheetloflHeritagelFoods -------------------linlRs.lCr.l-------------------

Marl'17 Marl'16 Marl'15 Marl'14 Marl'13

12lmths 12lmths 12lmths 12lmths 12lmths

SourceslOflFunds

TotallSharelCapital 23.20 11.60 11.53 11.53 11.53

EquitylSharelCapital 23.20 11.60 11.53 11.53 11.53

SharelApplicationlMoney 0.00 0.00 0.00 3.19 3.19

PreferencelSharelCapital 0.00 0.00 0.00 0.00 0.00

Reserves 155.79 130.29 81.60 71.82 72.16

Networth 178.99 141.89 93.13 86.54 86.88

SecuredlLoans 127.42 98.18 129.37 176.61 175.53

UnsecuredlLoans 0.00 0.00 11.00 9.45 8.92

TotallDebt 127.42 98.18 140.37 186.06 184.45

TotallLiabilities 306.41 240.07 233.50 272.60 271.33

Marl'15 Marl'14 Marl'13 Marl'12 Marl'11

12lmths 12lmths 12lmths 12lmths 12lmths

ApplicationlOflFunds

GrosslBlock 408.41 353.48 337.29 317.50 294.24

Less:lRevaluationlReserves 0.00 0.00 0.00 0.00 0.00

Less:lAccum.lDepreciation 136.93 116.69 107.03 95.78 79.00

NetlBlock 271.48 236.79 230.26 221.72 215.24

CapitallWorklinlProgress 11.12 8.27 8.92 11.98 8.71

Investments 0.99 1.12 1.12 1.02 0.92

Inventories 108.55 82.09 93.45 66.07 76.31

SundrylDebtors 16.61 15.07 11.20 14.44 12.08

CashlandlBanklBalance 44.42 32.95 29.99 26.58 22.25

TotallCurrentlAssets 169.58 130.11 134.64 107.09 110.64

LoanslandlAdvances 38.88 34.49 34.13 33.41 36.05

FixedlDeposits 0.00 0.00 0.00 3.86 2.39

TotallCA,lLoansl&lAdvances 208.46 164.60 168.77 144.36 149.08

DeferredlCredit 0.00 0.00 0.00 0.00 0.00

CurrentlLiabilities 171.82 161.54 165.56 100.41 95.01

Provisions 13.81 9.19 10.03 6.08 7.60

TotallCLl&lProvisions 185.63 170.73 175.59 106.49 102.61

NetlCurrentlAssets 22.83 -6.13 -6.82 37.87 46.47

MiscellaneouslExpenses 0.00 0.00 0.00 0.00 0.00

TotallAssets 306.42 240.05 233.48 272.59 271.34

ContingentlLiabilities 52.04 55.90 56.00 14.63 8.49

BooklValuel(Rs) 77.16 122.32 80.77 72.29 72.59

Sourcel:lDionlGloballSolutionslLimited

CHAPTER-VI

CONCLUSIONl&lSUGGESTIONS

SUGGESTIONS

lPlanninglhaslbecomelthelprimarylfunctionloflmanagementlmostloflthelplanninglRelatesltolindi

viduallsituationslandlindividuallproposals.lBudgetslarelnothinglbutlExpressionsllargelylinlfina
 nciallterms,lbudgetarylcontrollhas,lthereforelbecomelandlessentiallToolloflmanagementlforlcon

trollinglandlmaximizinglprofits.

Thelcompanylobjectiveslorganizationlandlhowltheylcanlbelachievedlthroughlbudgetarylcontrol

.l

 Time-tableslforlalllstagesloflbudgetinglfollows.

 lReports,lstatements,lformslandlotherlrecordltolbelmaintained.

 Continuouslcomparisonloflactuallperformancelwithlbudgetedlperformance.

CONCLUSIONS

lEverylorganizationlhaslpredeterminedlsetloflobjectiveslandlgoals,lbutlreachingltheirlobjectives

landlgoalslbylproperlplanninglandlexecutinglofltheselplansleconomically.

lThelHeritagelFoodslIndialLimitedlislobjectivesloflplanninglpromotinglandlorganizinglanlinteg

ratedldevelopmentlofldairylproductlCompany.
lThelcorporationlmachineloflHeritagelDairylProductlindustrieslisltolmakelavailablelandlquickl

yldairylproductlinlincreasinglylsmalllquantities,lthelcompanylwilllspearlheadlthelprocessloflacc

eleratedldevelopmentlofldairylproductlsectorlbylexpeditiously.

lThelorganizationlneedslthelcapablelpersonalitieslaslmanagementlmakeslthelplanslandlimpleme

ntlofltheselplanslarelexpressedlinltermsloflbudgetlandlbudgetarylcontrol.

lThelHeritagelFoodslIndialLimitedlhaslbudgetlprocesslinltwolstages.lonelislthelcapitallexpendit

urelbudgetlandlanotherlisloperatinglmaintenancelbudget,lthelcapitallexpenditurelbudgetlshowsl

thellistloflcapitallprojectslselectedlforlinvestmentlalonglwithltheirlestimatedlcosts,loperatinglm

aintenancelbudgets,lthelmedicallbudgetslarelrarelylusedlinlthelorganizationllikellongltermlbudg

ets,lsearchl&ldevelopmentlbudgetlforlconsultancy.l

lThelHeritageldairylproductlindustrieslladiesltolmakelavailablelandlqualityldairylproductlefficie

ntlutilizationloflitslresourcelandlimplementationloflsophisticatedltechnologylandldairylproductl

generationlandlalsolcreatinglambienceloflcollectivelworkingloflitslemployees.

BIBLIOGRAPHY
 Yearlofl
Nameloflthel
S.No Author TitleloflthelBook Edition Publicatio
Publication
n

Sl.KRISHNAl MUTUALlFUNDSl SecondlEditio ChandralBos

1. 1999
MURTHY INlINDIA n el

INVESTMENTl Himalayal
FourthlEditio
2. V.A.lAVADHANI 2000
MANAGEMENT n
publications

DonaldlE.lFischerlan TatalMcGra
SecuritylandlPortfolio
4. dl SixthlEdition 2006 wl
lManagement
RonaldlJ.lJordan Hill.

FACTlSHEETSlOFl:lPRUlICICI,lSBI,lHDFC,lUTIlMUTUALlFUND

WeblReferencesl&lMagazines

www.lMutualfundsindia.com
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www.sbimf.com

www.mutualfundsindia.com

www.bseindia.com

www.nseindia.com

www.amfiindia.com

Economicltimes

Businesslworld