Budget and Budetory Control at Visaka

CHAPTER – 1
INTRODUCTION
INTRODUCTION
lBudgetlislessentiallinleverylwalkloflourllifel–
lnational,ldomesticlandlbusiness.lAlbudgetlislpreparedltolhaveleffectivelutilizationloflfu
ndslandlforlthelrealizationloflobjectiveslaslefficiently,laslpossible.lBudgetlislalwidelylpra
cticedltechniquelandlmostloflusluselbudgetslinlsomelwaylorlthelother.
lBudgetlisloneloflthelemphasizedltermslusedlinlefficientlmethodsloflplanninglandlcontrol
.lItlislemployed,lnoldoubt,linllargelbusinesslhouses,lbutlevenlthelsmalllbusinesseslarelusi
nglit,linlsomelinformallmanner.lBudgetlinlcommonlparlancelislunderstoodlaslplanninglf
orlexpenditure.
lAlbudgetlisldefinedlaslalcomprehensivelandlCo-
ordinatelplanlexpressedlinlfinanciallterms,lforltheloperationslandlresourcesloflanlenterpr
iselforlsomelspecifiedlperiodlinlthelfuture.
lInlthelviewsloflE.lH.lGrahamloflthelChryslerlCorporation,l“Oflthelmanagementltoolslus
edlbylChryslerlCorporation,lincludinglcomputers,lPERT,lOperationslResearchl(OR)lan
dlsystemlanalysislandlsolon,lbudgetslarelunldoublylthelmostlimportantltool”.
lBudgetlislalwayslexpressedlinltermsloflmoneylandlquantity.lTheltechniquesloflbudgetin
glarelimportantlapplicationsloflManagementlaccounting.
lBudgetslarelsetlinllargelbusinesslhouseslaslwelllaslinlfamilies.lItlislbasicallylalstatementl
oflexpectedlincomel&lexpenselunderlcertainlanticipatedloperatinglconditions.
OBJECTIVESlOFlTHElSTUDY
1. Tolstudylthelvariouslaspectsloflbudgetlandlbudgetarylcontrol.
2. Tolstudylthelperformanceloflthelorganizationlinltermsloflprofitability.
3. Tolstudylrevenuelreceiptlandlrevenuelexpenditureloflthelorganization
4. Tolstudylthelactuallperformancelwithlbudgetlperformance.
5. Tolfacilitatelcentralizedlcontrollwithldelegatedlauthoritylandlresponsibility.
SCOPElOFlTHElSTUDY
lThelscopeloflthelstudylislverylwidelaslitlrangeslfromlthelvariouslspecificlbudgetslofleac
hldepartmentltolthelMasterlBudgetlandlPerformancelBudgetloflthelorganization.
lMasterlBudgetlislal“Summaryloflthelbudgetlscheduleslinlcapsulelformlmadelforlthelpu
rposeloflpresentinglinlonelreportlthelhighlightsloflthelbudgetlforecast”.lPerformancelB
udgetlinvolveslevaluationloflthelperformanceloflthelorganizationlinlthelcontextloflbothls
pecificlaslwelllasloveralllobjectivesloflthelorganization.lAccordingltolthelNationallInstit
uteloflbanklManagementlPerformancelBudgetingltechniquelis,l“Thelprocessloflanalyzin
g,lidentifying,lsimplifyinglandlcrystallizinglspecificlperformancelobjectivesloflaljobltolb
elachievedloverlalperiodlinlthelframelworkloflthelorganizationlobjectives,lthelpurposelan
dlobjectiveslofltheljob.lTheltechniquelislcharacteristiclbylitslspecificldirectionsltowardslt
helbusinesslobjectivesloflthelorganization”.
METHODOLOGYlOFlTHElSTUDY
lCaselstudylmethodlhaslbeenladoptedltolcarryloutlthelstudy.lBothlprimarylandlsecondary
ldatalhavelbeenlusedltolcompletelthelstudy.lPrimaryldatalwaslcollectedlthroughlinterac
tionlwithlpersonnellwholarelworkinglinlfinancelandlAccountslDepartmentsloflthelorgani
zation.
lSecondaryldatalwaslcollectedlfromlthelcompanylannuallreportsl&lotherlrelevantlrecor
ds.lAfterwards,ltheldatalcollectedlislprocessedlandlanalyzedlbylusinglappropriatelanalyti
calltoolslandltechniqueslsolasltolexaminelthelefficiency.lThelpresentlstudylwaslcarriedlo
utlforlalperiodloflthirtyldayslinlalprestigiouslorganizationli.e.lVISAKAlINDUSTRIESlLIMI
TED.
LIMITATIONSlOFlTHElSTUDY
lThislcomparativelstudyllimitslitslcoverageltol7lyears.lInformationlpresentedlisllimitedlt
olthelsecondaryldatalinlthelformloflannuallreportslgeographically;lthelfieldlresearchlislli
mitedltolthelcitylHyderabadlandlSecunderabad.
lThelproposedlstudylmaylnotlbelfreelfromlcertainllimitation.lForlinstancelthellimitationl
ofltimelandlcostlcannotlbelignored.lAtltheltime,lthelfindingsloflthelstudylcanlbelappliedlt
olcomparablelfirmslandlnotltolincomparablelones.lBesideslthis,lbudgetedlamountslcalcu
latedlatlonelpointlofltimelmaylnotlbelinformativelasltheylsufferlfromlshort-lfluctuations.
CHAPTERi–iII
REVIEWiOFiLITERATURE
i
REVIEWiOFiLITERATURE
DEFINITIONiOFiBUDGET
iTheitermi“Budget”iappearsitoihaveibeeniderivedifromitheiFrenchiwordi“Baguette”iwh
ichimeansi“LittleiBag”ioriaicontaineriofidocumentsiandiaccounts.iAibudgeticanibeiseeni
asiani“Economiciplan”iforiaigiveniperiodiofitime.
CONCEPTiOFiBUDGET
iBudgetiisiasiquantifiediplaniforifutureiactivitiesi–
iquantitativeiblueprintiforiaction.iItiisireferrediasiaiplanirelatingitoiperiodiofitimeiexpress
ediinimonetaryiandiiniquantitativeiterms.
iTheiChartediinstituteiofiManagementiAccountants,i(CIMA)idefinedibudgetiasifollows:i
-i
iAiplaniexpressediinimoney.iItiisipreparediandiapprovediprioritoitheibudgetiperiodiandi
mayishowiincome,iexpenditureiofitheicapitalitoibeiemployed,imayibeidrawniupishowing
iincrementalieffectsiaiformeribudgetedioriactualifigures.
iAccordingitoiGordonishillingilaw,i“Aibusinessibudgetiisipre-
determinedidetailediplaniofiaction,idevelopediandidistributediasiaiguideitoicurrentiopera
tionsiandiasiaipartialibasisiforisubsequentievaluationiofiperformance”.
TheiEssentialsiofiaiBudgetiare:
 Financialiandiquantitativeistatementiofitheiactioniplan.
 Itiisiplanningideviceiandialsoiservesiasiaibasesiforiperformanceievaluationiandic
ontrol.
 Itiisilaididowniprioritoitheibudgetiperiodiduringiwhichiitiisifollowediandibasedio
nirightsipolicy.
BUDGETiMANUAL
iAibudgetiManualilaysidownitheidetailsiofitheiorganizationalisetiup,itheiroutineiprocedu
resiandiprogrammersitoibeifollowediforidevelopingibudgetsiforivariousiitemsianditheidu
tiesiandiresponsibilitiesiofitheiexecutivesiregardingitheioperationiofitheibudgetaryicontr
olisystem.
iAibudgetimanualiisidefinediasiaidocumentischeduleioribookletiwhichisetsiout,iinterialia,
itheiresponsibilitiesioritheipersonsiengagediinitheiroutineiofianditheiformsiandirecordsire
quirediforibudgetaryicontrol.iBudgetsiareitoibeidrawnikeepingiiniviewitheiobjectivesiofit
heiorganizationigiveniinitheibudgetimanual.
iTheifollowingiareisomeiofitheimostiimportantimattersicoverediiniaiBudgetiManual.
 Introductioniandibriefiexplanationiofitheiobjectives,ibenefitsiandiprinciplesiofib
udgetaryicontrol.
 Organizationichartigivingitheititlesiofidifferentipersonnel’siwithifulliexplanatio
niofitheidutiesiandieachitoioperatingisystemsiandipreparationiofidepartmentalian
difunctionalibudgets.
 Theientireiprocessiofibudgetingiprogrammeriincludingitheitimetableiforiperiodi
calireporting.
 Lengthiofibudgetiperiodsiandicontroliperiodsishouldibeiclearlyistates.
 Proceduresitoibeifollowedithroughoutitheisystemishouldibeiexplainediiniclearite
rms.
 Outlineiofimainibudgetsianditheiriaccountingirelationships.
 ExplanationiofiKeyibudgets.
Theiadvantagesitoibeiderivedifromitheiuseiofibudgetimanualiare:
 Everyioneiknowsiiniwritingithatiwhatiisihisirole,iwhatiisitoibeidoneiandihowiitiisi
toibeidoneiinitheisystemiofibudgetaryicontrol.
 Asieveryithingiisiiniwriting.iAmbiguityiisiavoidediandirelianceionimemoryiisieli
minated.
 Asioneiofitheiobjectivesiofibudgetingiisicommunication,iitiisiimportantitoihaveib
udgetimanualisoithatieveryoneiinitheiorganizationicanireferitoiitiforiguidanceian
diinformationiaboutitheibudgetaryiprocess.
ADMINISTRATIONiOFiBUDGETS
iBudgetingitakesiupiailotiofimanagementitime.iTopimanagersiwantilowerilevelimanager
sitoiparticipateiinitheibudgetiprocess,ibecauseiloweri–
ilevelimanagersihaveivaluableiknowledgeiaboutitheidayi–itoi–
idayiaspectsiofirunningitheibusiness.iParticipatorialso.iCreatesigreatericommitmentiandi
responsibilityitowardsitheibudgetiamongilowerilevelimanages.
iTheiwidespreadiprevalenceiofibudgetsiindicatesithatitheiadvantagesiofibudgetingisyste
msioutweighitheiricost.iToigainitheibenefitsiofibudgeting.iManagementiatiallilevelsiofith
eicompanyishouldiunderstandiandisupportitheibudgetiandialliaspectsiofitheimanagement
icontrolisystem.
iBudgetsishouldinotibeiadministeredirigidly.iChangingiconditionsiusuallyicalliforichang
esiiniplans.iAimanagerimayicommititoitheibudget,ibutiaisituationimightidevelopiiniwhic
hisomeiunplannedirepairsiorianiunplannediadvertisingiprogramiwouldibetteriserveitheiin
iinterestiofitheicompany.iTheimanagersishouldinotideferitheirepairsiofitheiadvertisingiasi
aiwayiofimeetingitheibudgeti–
inotiifidoingisoiwillihartitheicompanyiinitheilongirun.iAttainingitheibudgetishouldinotibei
aniendiiniitself.
BUDGETING
iItiisiconcernediwithitheiimplementationiofitheiapprovediprogrammediwithinitheilong-
rangeiplan.iItiisitheiactiofipreparingibudgets.iBudgetingiisiaiwayiofimanagingiBusinessia
ndiIndustry.
CLASSIFICATIONiANDiTYPESiOFiBUDGETS
iTheibudgetsiareiusuallyiclassifieditoitheirinature.iTheifollowingiareitheitypesiofibudget
s,iwhichiareicommonlyiused.
1. ClassificationiaccordingitoiTime
 Longi–itermiBudgets
 Shorti–itermiBudgets
 CurrentiBudgets
2. ClassificationionitheibasisiofiFunctions
 OperatingiBudgets
 FinancialiBudgets
 MasteriBudgets
3. ClassificationsionitheibasisiofiFlexibility
 FixediBudgets
 FlexibleiBudgets
1) CLASSIFICATIONiACCORDINGiTOiTIME
 Longi–itermiBudgets:itheibudgetsiareiprepareditoidepictilong-
termiplanningiofitheibusiness.iTheiperiodiofilong-
termibudgetsivariesifromifiveitoiteniyears.iTheilong-
termiplanningiisidoneibyitopilevelimanagement.iLongitimeibudgetsiareipreparedifori
someisectorsiofitheiconcernisuchiasicapitaliexpenditure,iresearchiandidevelopment,il
ong-
termifinancesietc.iTheseibudgetsiareiusefuliforithoseiindustriesiwhereigestationiperi
odiisilingii.e.imachinery,ielectricity,iengineeringietc.
 Short-
termiBudgets:iTheseibudgetsiareigenerallyiforioneioritwoiyearsiandiareiinitheifo
rmiofimonetaryiterms.iTheiconsumer’sigoodsiindustriesilikeisugar,icotton,ietc.i
Useishort-termibudgets.
 CurrentiBudgets:iTheiperiodioficurrentibudgetiisigenerallyiofimonthsiandiwee
ks.iTheseibudgetsirelateitoitheicurrentiactivitiesiofitheibusiness.iAccordingitoiIn
stituteioficostiandiWorksiAccounts,iLondoni“CurrentiBudgetiisiaibudgetiwhichii
siestablishediforiuseioveriaishortiperiodiofitimeiandiisirelateditoicurrenticonditio
ns.
2) CLASSIFICATIONiONiTHEiBASISiOFiFUNCTIONS
 OperatingiBudget:iTheseibudgetsirelateitoidifferentiactivitiesiorioperationsiofiaifir
m.iTheinumberiofisuchibudgetidependsiuponitheisizeiandinatureiofitheibusiness.iThe
icommonlyiusedioperatingibudgetsiare:
 SalesiBudget
 ProductioniBudget
 ProductionicostiBudget
 PurchaseiBudget
 RawiMaterialiBudgeti
 LaboriBudget
 PlaniUtilizationiBudget
 ManufacturingiExpenseioriWorksiOverheadiBudget
 AdministrationiandiSellingiExpensesiBudgetietc.
iTheiOperatingiBudgetiforiaifirmimayibeiconstructediinitermsiofiprogrammeioriresponsi
bilityiareas,iandihenceiconsistsiof:
 ProgrammeiBudget
 ResponsibilityiBudget.
ProgrammeiBudget:iIticonsistsiofiexpectedirevenueiandicostsiofivariousiproductsioripr
ojectsithatiareitermediasitheimajoriprogrammesiofitheifirmisuchiasibudgeticanipreparedif
orieachiproductilineioriprojectishowingirevenues,icostsianditheirelativeiprofitabilityiofit
heivariousiprogrammes.iProgrammeiBudgetsiare,ithus,iusefuliinilocatingiareasiwhereief
fortsimayibeirequireditoireduceicostsiandiincreaseirevenues.iTheyiareialsoiusefuliinidete
rminingiimbalancesiandiinadequaciesiiniprogrammeisoithaticorrectiveiactionimayibeitak
eniinifuture.
ResponsibilityiBudget:iWhenitheibudgetiofiaifirmiisiconstructediinitermsiofiresponsibi
lityiareasiitiisicalleditheiresponsibilityibudget.iSuchishowsitheiplaniinitermsiofipersonsir
esponsibleiforiachievingithem.iItiisiusedibyitheimanagementiasiaicontrolideviceitoievalu
ateitheiperformanceiofiexecutivesiwhoiareiini–
ichargeiofivariousicosticenters.iTheiriperformanceiisicompareditoitheitargetsi(Budgets),i
setiforithemiandiproperiactioniisitakeniforiadverseiresult,iifiany.iTheikindsiofiresponsibil
ityiareasidependiuponitheisizeiandinatureiofibusinessiactivitiesianditheiorganizationalistr
ucture.iHowever,iresponsibilityiareaimayibeiclassifiediunderithreeibroadicategories:
 Costi/iExpenseiCentre
 ProfitiCentre
 InvestmentiCentre
FinancialiBudget:iFinancialiBudgetsiareiconcernediwithicaseireceiptiandidisbursement
s,iworkingicapitaliexpenditure,ifinancialipositioniandiresultsiofibusinessioperations.iThe
icommonlyiusedifinancialibudgetsiare:
 CashiBudget
 WorkingiCapitaliBudget
 CapitaliExpenditureiBudget
 IncomeistatementiBudget
 StatementioriRetainediEarningsibudget
 BudgetediBalanceiSheetioripositionistatementiBudget
 MasteriBudget:iVariousifunctionalibudgetsiareiintegratediintoiMasteriBudget.i
TheiBudgetiisipreparedibyitheiultimateiintegrationiofiseparateifunctionaliBudget
.iAccordingitoiInstituteiofiCostiandiWorksiAccounts,iLondon,i“TheiMasteriBud
getiisitheisummaryiBudgetiincorporatingiitsifunctionaliBudget”.iTheiBudgetiOff
iceripreparesiMasteriBudgetiandiitiremainsiwithitheitop-
levelimanagement.iThisibudgetiisiuseditoico-
ordinateitheiactivitiesiofivariousifunctionalidepartmentiandialsoitoihelpiasiaicont
rolidevice.
3) CLASSIFICATIONiONiTHEiBASISiOFiFLEXIBILITY
 FixediBudget:iTheifixedibudgetsiareipreparediforiaigivenileveliofiactivity;itheib
udgetiisipreparedibeforeibeginningiofitheifinancialiyear.iIfitheifinancialiyearistar
tsiiniJanuaryithenibudgetiwillibeiprepareiaimonthioritwoiearlier,iNovemberioriD
ecember.iTheichangesiiniexpenditureiarisingioutiofitheianticipateichangesiwillin
otibeiadjustediinitheiBudget.iTheseiisiaidifferenceiofiaboutitwelveimonthsiinithei
budgetedianiactualifigures.iAccordingiInstituteiofiCostiandiworksiAccounts,iLo
ndon,i“FixediBudgetiisiaibudgetiwhichiisidesigneditoiremainiunchangediirrespe
ctiveiofitheileveliofitheilevelifiactivityiactuallyiattained”.iFixedibudgetiareisuitab
leiunderistaticiconditions.iIfisalesiexpensesiandicostsicanibeiforecastediwithigrea
teriaccuracyithenithisibudgeticanibeiadvantageouslyiused.
 FlexibleiBudget:iAiflexibleibudgeticonsistsiofiseriesiofiBudgetsiforidifferenceil
eveliofiactivity.iItitherefore,ivariesiwithitheileveliofiactivityiattained.iAiflexiblei
Budgetiisipreparediafteritakingiintoiconsiderationiunforeseenichangesiinitheicon
ditionsiofitheibusiness.
i
iAiflexibleiBudgetiisidefinediasiBudgetiwhichibyirecognizingitheidifferenceibetweenifix
ed,isemi-
fixediandivariableicostiisidesigneditoichangeiinirelationitoitheileveliofiactivity.iTheiflexi
bleibudgetsiwillibeiusefuliwhereileveliofiactivityichangesiformitimeitoitime.iWhenitheif
orecastingiofidemandiisiuncertainianditheiundertakingioperateiunderishortageiofimateria
ls,ilaborietc.ithisiBudgetiwillibeimoreisuited.
OPERATINGiBUDGETS
1)iSalesiBudget:iAiSalesiBudgetiisianiestimateiofiexpectedisalesiduringiaiBudgetiperio
d.iAisalesiBudgetiisiknowniasiainerveicenterioribackboneiofitheienterprise.iTheidegreeio
fiaccuracyiwithiwhichisalesiareiestimatediwillidetermineitheipracticabilityiofioperatingi
Budgets.iAisalesiBudgetiisitheistartingipointsioniwhichiotheribudgetsiareialsoibases.iAis
alesiBudgetilayidownipotentialisalesifiguresiinivalueiasiiniquantity.iItilaysidowniaicompr
ehensiveiplaniandiprogrammeiforisalesidepartment.iTheisalesimangeriisimadeiresponsib
leiforipreparingiSaleiBudget.iHeiusesiallipossibleifactorsitoibeitakeniintoiaccountiwhilei
preparingiaisalesiBudget.
2)iProductioniBudget:iProductioniBudgetiisibuiltiupiinitermsiofiquantitiesiandimoney.i
TheiquantitiesiareienterediatitheibeginningsiandiwhenitheiremainderiofitheiBudgetihasib
eenibuiltiupianditheicostiofiproductionicalculateditheicostsiareientereditoicompileiaiprod
uctionicostiBudget.iInipreparingitheiproductioniBudgetitheifollowingifactorsishouldibei
considered.
 PrincipaliBudgetifactor,ie.g.iifitheisalesibeitheikeyifactorithenisalesiBudget,iothe
rwiseiotheriBudget.
 Productioniplanningiandideterminationiofioptimumicapacity.
 Theiopeningiandiclosingistocks.
 Managementipolicyiregardingimakeioribuyioficomponents.
3)iProductioniCostiBudget:iAipurchaseiBudgetigivesitheidetailsiofitheipurchasesiwhic
himustibeimadeitoimeetitheineedsiofitheibusiness.iItiincludesialliitemsiofipurchase,isuchi
asirawimaterials,iindirectimaterialsiandiotheriequipment.iHowever,ipurchaseiBudgetifor
irawimaterialsiisitheimostiimportantianditheifollowingiareirequireditoibeiconsideringiinip
reparingithisiBudget.
4)iPurchaseiBudget:iAiPurchaseibudgetigivesitheidetailsiofitheipurchasesiwhichimusti
beimadeitoimeetitheineedsiofitheibusiness.iItiincludesialliitemsiofipurchase,isuchiasirawi
materials,iindirectimaterialsiandiotheriequipments.iHowever,ipurchaseiBudgetiforirawi
materialsiisitheimostiimportantianditheifollowingifactorsiareirequireditoibeiconsideringii
nipreparingithisiBudget.
 Openingiandiclosingistocks
 Unfulfillediordersiatitheibeginningiofitheibudgetiperiod.
 Storageispace,ieconomicibuyingiquantityiandifinancialiresources.
 Theipricesitoibeipaid.
4) MaterialiBudget:iAiMaterialsiBudgetishowsitheiestimatediquantitiesiasiwellicostsi
ofirawimaterialsiandicomponentsirequirediforiproducingigoodsiasiperiproductioniBu
dget.iAtitheistageiofipreparationiofimaterialsiBudgetiisiuseditoiobtainitheicostiofieac
himaterialiconsumed.iItiservesitheifollowingipurposes.
 Itiassistsipurchasingidepartmentiiniplanningitheipurchases.
 ItihelpsiinitheipreparationiofipurchaseiBudget
 Itiprovidesidataiforirawimaterialsicontrol.
.6)iLabouriBudget:iThisiBudgetigivesiandiestimatesitheirequirementsiofidirectsilabouri
essentialitoimeetitheiproductionitarget.iThisiBudgetimayibeiclassifiediintoi“Labourirequ
irementibudget”iandi“LabouriRequirementiBudget”.iTheipurposeiofiLabouriBudgetiisit
oiassistiinitheiprovisioniofitheicorrectinumberianditypeiofi
Employeeiforitheiprojectedioutput.iOnceitheipreliminaryiclassificationiofilabouriintoiitsi
principaligradesihasibeenicarriediout,itheilabourirequirementsiforieachiproductiareitheni
setiwithitheihelpiofitimeiandimotionistudies.iFromitheitotalimean-
hourirequirediforiproductionilabourirequirementsiareiascertainediandifromitheiestimate
dirateiperihour,ilabouricostiperihour,ilabouricostiperiunitiisidetermined.
7)iPlantiUtilizationiBudget:iThisibudgetiindicatesithatitheiplaniandimachineryirequire
mentitoimeetitheibudgetediproductioniduringitheiperiod.iSuchiaibudgetiwillidetailitheim
achineiloadiinieveryidepartmentiandiindicateitheiextentiofiunderiorioveriloading.iThusi
managementimayigetiusefuliinformationiregardingitheieffectiveiutilizationiofiplantsiand
imachineryiinianiorganization.
8)iManufacturingiOverheadsiBudget:iThisiBudgetigivesianiestimateiofitheiworksiove
rheadiexpensesitoibeiincurrediiniaibudgetiperioditoiachieveitheiproductionitarget.iTheib
udgetiincludesitheicostiofiindirectimaterials,iindirectilabouriandiindirectiworksiexpenses
.iTheibudgetimayibeiclassifiediintoifixedicost,ivariableicostiandisemi-
variableicost.iIticanibeibrokeniintoidepartmentalioverheadicanibeiestimatedionitheibasisi
ofipastiinformationiafteritakingiintoiconsiderationitheiexpectedichangesiwhichimayiocc
uriduringitheiBudgetiperiod.iVariableiexpensesiareiestimatedionitheibasisiofitheibudgete
dioutputibecauseitheseiexpensesiareibounditoichangeiwithitheichangesiinioutput.
9)iAdministrationiCostiBudget:iAllitheiadministrationicostsirelatingitoieachiBudgetic
enterishouldibeiseparatelyianditheniincorporatediinitheiadministrationicostiBudget.iAive
ryiimportantiaspectiofipredeterminingiadministrationicostsiisitoimakeisureithatialliadmi
nistrativeifunctionsiareicarriedioutiasieffectivelyiasipossible.iThus,ithisibudgetirepresent
siforecastiofitheicostiofisellingiandiDistributioniforiBudgetirepresentsiforecastiofitheicos
tiofisellingiandidistributioniofibudgetiperiodiandiisiclearlyirelateditoitheisalesiBudget.iAl
liexpensesirelatingitoisellingiandidistributioniofitheivariousiproductsiasiindicatediinitheis
alesibudgetiareiincludediiniit.iTheseiexpensesiareibasedionitheivolumeiofisalesidistributi
onioverhead.iLong-
termiexpensesiadvertisementiareidividediintoifixediandivariableicategoriesiwithireferen
ceitoivolumeiofisale,iseparateiBudgetsiareiofisellingiandidistributionicostsiasicostiofitran
sportidepartmentiarei
includediinitheidepartmentaliproductionicostiBudgetiformicontrolipointiviewiratherithan
iincludingiinisellingiandidistributionicostsiBudget.
FINANCIALiBUDGET
1)iCashiBudget:iThisiBudgetigivesiandiestimateiofitheianticipatedireceiptsiandipaymen
tiofieachiduringitheiBudgetiperiod.iSo,ithisiBudgetiisidividediintoitwoiparts,ioneishowin
githeiestimatedicashireceiptioniaccountioficashisales,icrediticollectionsiandimiscellaneo
usireceiptianditheiotherishowingitheiestimateidisbursementioniaccountioficashipurchase
s,iamountipayableitoicreditors,iwagesipayableitoiworkers,iindirectiexpensesipayable,iBu
dgeted,iwagesipayableitoiworkers,iindirectiexpensesipayable,ibudgetedicapitaliexpendit
ureietc.iInishort,ieveryifactoriwhichiaffectsitheireceiptsiandipaymentsioficashiareitakenii
ntoiaccountsiinitheipreparationiofithisiBudget.
2)iCapitaliExpenditureiBudget:iTheiCapitaliExpenditureiBudgetigivesianiestimateiofi
theiamountioficapitalithatimayibeineedediforiacquiringitheifixediassetsirequirediforifulfil
lingiproductionirequirementsiasispecifiediinitheiproductionibudget.iTheiBudgetiisiprepa
rediafteritakingiintoiconsiderationitheiavailableiproductiveicapacities,iprobableirealloca
tioniofitheiexistingiassetsiandipossibleiimprovementiiniproductionitechniques.iSeparate
siBudgetimayibeipreparediforidifferentiitemsiofiassetsisuchiasiplantiandiequipmentiBud
get,ibuildingibudget,ietc.i
iTheicapitaliexpenditureiBudgetiisianiimportantiBudgetiprovidingiforiacquisitioniofiasse
ts,inecessitatedibyitheifollowingifactors:
 Replacementiofiexistingiassets.
 Purchaseiofiadditionaliassetsibecauseiofistartingiupiofinewilinesiofiprodu
ction.
 Purchaseiofiadditionaliassetsitoimeetiaiproposediincreasesiiniproductioni
dueitoiincreaseiinidemand.
 Installationiofianiimproveditypeiofimachineryisoiasitoireduceicostiofipro
duction.
Thus,iCapitaliExpenditureiBudgetienablesioneitoiknowiwhatinewifixediassetsiar
eineedediandiwhatiwillitheiricostsirateiofireturn.
Purposes:iTheiobjectivesiofiCapitaliExpenditureiBudgetiareistatedibelow:
 Toienableitheicompanyitoiestablishisystemiofiprioritiesiiniexpenditure
 Toicorrecticapacityiimbalances.
 Toiprovideiaitooliforicontrollingicapitaliexpenditure.
 Toimakeiproperifinancialiprovisionitoimeetiplannediexpenditure.
 ToiprovideiBudgetiofidepreciationiandimaintenanceicostsiforiinclusionii
nitheidepartmentiexpenseiBudgets.
PERFORMANCEiBUDGETING:
i“PerformanceiBudgeting”ihadiitsioriginiinitheiU.S.AiafteriSecond
iWorldiWar.iItitriesitoirectifyisomeiofitheishortcomingsiinitheitraditionaliBudget.iInitheit
raditionaliBudgetsiamountsiareiearmarkediforitheiobjectsiofiexpendituresisuchiasisalarie
s,itravel,iofficeiexpenses,igrant-in-
aidietc.iInisuchisystemiofiBudgetingitheimoneyiconceptiwasigivenimoreiprominenceii.e.
iestimatingioriprojectingirupeeivalueiforitheivariousiaccountingiheadsioriclassificationio
firevenueiandicost.iSuchisystemiofibudgetingiwasimoreipopularlyiusediinigovernmentid
epartmentiandimanyibusinessienterprises.iButisuchisystemiBudgetingicontroliofiperfor
manceiinitermsiofiphysicaliunitsioritheirelatedicostsicannotibeiachieved.
iTheseidaysiBudgetsiareiestablishediinisuchiaiwayisoithatiitemiofiexpenditureiisirelatedit
oispecificiresponsibilityicenteriandiisicloselyilinkediwithiperformanceiofithatistandard.i
Developingiworkiprogramsiandiperformanceiexpectationsibyiassignediresponsibilityiisi
theiachievementiandiobjectsiofitheienterprise.iThus,iiniperformanceiBudgetingiclassific
ationiofiexpenditureifollowsiaithree-tieripatterniviz.iFunction-Programme-Activity.
AdvantagesiofiPerformanceiBudgeting:iTheifollowingiareitheimainiadvantagesiofiper
formanceiBudgeting.
 Itipresentsiclearlyitheipurposeiandiobjectivesiforiwhichifundsiareirequired.i
 ItigivesibetteriappreciationiofiBudgetingibyilegislature.
 ItiimprovesiBudgetiformulationiprocess.
 Itienhancesiaccountabilityiofitheiexecutives.
i
AiSystematiciApproachitoidevelopitheiperformanceibudget
ObjectiveiStru
cture
Organizational
Reviewi Structure
&
Control
Execution Develop
&i Function
RecordiKeeping Programs
DevelopiPhysicaliTar
getsi&iResourcesiInv
olvement:iPerforman
ceiRatios
ZEROiBASEiBUDGETING
iUnderiZeroiBaseiBudgetingimethods,ibeforeipreparingiaiBudgetiaibaseideterminedifor
miwhichitheiBudgetiprocessibegins.iQuiteioftenicurrentiyear’siBudgetiisitakeniasitheiba
seioritheistartingipointiforipreparingitheinextiyear’siBudget.iTheifiguresiinitheibaseiareic
hargediasiperitheiplaniforitheinextiyear.iThisiapproachiofipreparingiBudgetiisicalledi“Inc
rementaliBudgeting”isinceitheiBudgetiprocessiisiconcernedimainlyiwithitheiincreasesior
ichangesiinioperationsithatiareilikelyitoioccuriduringitheiBudgetiperiod.iForiexample,isal
esiofitheicurrentiyear’siBudgetiforisalesiwillibeicurrentiyear’sisalesiplusiandiallowanceif
oripriceiincreasesiandiexpectedichangesiinisalesivolumes.iTheimanidrawbackiofithisiapp
roachiisithatiitiperpetuatesitheipastiinefficiencies.
iZeroiBaseiBudgetingiisianialternativeitoiIncrementaliBudgeting.iItiwasiintroducediatiTe
xasiInstrumentsiiniUSAiini1969ibyipeteriphyrr,iwhoiisiknowniasitheifatheriofiZeroiBasei
Budgeting.iItiisimanagerialitooliandiisisteadilyigainingiacceptanceiinitheibusinessicomm
unity.iZeroiBaseiBudgetingiisinotibasedioniIncrementaliapproachiandipreciousifiguresia
reinotitakeniasitheibaseiforipreparinginextiyear’sibudget.iInstead,itheiBudgetifiguresiarei
developediwithizeroiasitheibase,iwhichimeansithatiaibudgetiwillibeipreparediasiifiitiisibei
ngiprepareiforiainewicompanyiforitheifirstitime.
iIniZeroiBaseibudgeting,ibudgetirequestsiforiappropriationiareiacceptedionitheibasisiofic
osti/ibenefitiapproach,iwhichiensuresivaleiforimoney.iIfiquestionilong-
standingiassumptionsiandisystematicallyiexaminesiandiperhapsiabandonsianyiunproduc
tiveiprojects.
iThisimeansithatithoseiactivitiesiwhichiareiofinoivalueifindinoivalueiinitheiforthcomingi
Budgetievenithoughitheseimightihaveibeenianiintegralipartiofitheipastibudgetipreparediu
nderitheitraditionaliapproach.iZeroiBaseibudgetingiiniwayiareitriesitoilocateithoseiactivit
iesinotiessential.
TheiimportantistepsiiniZeroiBaseiBudgetingiare:
 IdentificationiofidecisioniunitsiiniorderitoijustifyiexpenditureiinitheiriproposediB
udget.
 PreparationiofiDecisioniPackages.iEachipackageiisiaiseparateiandiidentifiablei
iactivity.iTheseipackagesiareilinkediwithicorporateiobjectives.
 Rankingiofidecisionipackagesibasedionicostibenefitianalysis
 Allotmentiofifundsibasedionitheiaboveiresultingibyifollowingipyramid-
rankingisystemitoiensureioptimumiresults.
ZEROiBASEDiBUDGETING
Thisiisimyipreviousileveliofiexpenditure
ThisiisiwhatiIiwantifo
riforthicomingiperiod
,iforireasonsienumera
MANAGER ted.
TheseiareitheiAdditionsirequiresitoim
eetitheiinflationaryieffectsiandiexpan
sioniprograms.
TOPiMANAGEMENT
i
TRADITIONALiBUDGETING
AiCertainiamountitoiSanctioniforiai
decisioniUnit.
T
O
P
i
M
M A
A N
N ThisiExpenditureiwillileaditoithese A
A iAdvertisements
G
G E
E M
R E
N
T
IfitheiProposaliisidiscarded,itheiresult
ORGANIZATIONiCHARTiFORiBUDGETARYiCONTROL
MANAGINGiDIRECTOR
BUDGETiCOMMITEE
BUDGETiDIRECTOR
SALESi PURCHASEiMA PRODUCTIONi PERSONALiMA CHIEFiMANAG

MANAGER NAGER MANAGER NAGER ER
SalesiBudget PurchaseiBud ProductioniB LaboriCostiB CostiBudget

get udget udget
Advertisingi MaseriBudge
Budget PlantiUtilizat t
ioniBudget
SellingiCost CapitaliExpe
nditureiBudg
et
Distributioni
Budget
PRELIMINARIESiINiTHEiINSTALLATIONiOFiBUDGETiSYSTEM
iPrerequisitesiforitheisuccessfuliimplementationiofiaibudgetaryicontrolisystemiareifollo
ws:i
1)iEstablishmentiofiBudgetiCenters:iAiBudgeticenteriisiaisectioniofientityiforiwhichic
ontroliofiexercisediandibudgetiprepared.iAiBudgeticenterimayibeiaidepartmentioripartith
ereiof.iBudgeticenterimustibeiclearlyidefinedibecauseiaiseparateiBudgetihasitoibeisetifori
eachisuchicenteriwithitheihelpiofitheidepartmenticoncerned.
2)iLinkingiofiBudgetirequirementsiwithichartiofiAccounts:iBudgetsiforidifferentibu
dgeticentersiareipreparedionistandardiforms.iIfirequirementsiofiformsiareilinkediwithich
artiofiaccountsiinformationiofidifferentiBudgeticentersiwhichiisiconsistentlyicompiledii
nvolvingiminimumilossiofitime.iSupposeiadvertisementiBudgetiisibeingicompilediandii
nformationiforimiscellaneousiexpenditureiisitoibeicollected.iItiwillibeianiessayiexerciseit
ogetherithisiinformation,iificodeiheadsitoibeireferreditoiinithisiconnectioniareispecifiedii
nitheiformioniwhichiinformationiforiBudgetsiisibeingicollected.
3)iPreparationiofiOrganizationaliChart:iAniOrganizationiChartishouldibeipreparedi
whichiclearlyishowsitheiplaniofitheiorganization.iEachimemberiofimanagementishouldi
knowitheiexactiscopeiofihisiauthorityiandiresponsibilityiandihisirelationshipitoiothersim
embers.iAniorganizationalichartiisistatementidefiningifunctionaliresponsibilitiesiofiexec
utives.iEachimemberiofimanagementishouldiknowitheiexactiscopeiofihisiauthorityiandir
esponsibilityiandihisirelationshipiwithiotherimembers.
TheiOrganizationiChartishows:i
 Functionaliresponsibilityiofiaiparticulariexecutive
 Delegationiofiauthorityitoivariousilevels,iand
 Relativeipositioniofiaifunctionaliheadiwithiheadsiofiotherifunctions.
4)iEstablishmentiofiBudgetiCommittee:iInismalliorganizationiandiinibigiorganization
sihavingidifferentiunitsiatidifferentiplaces,iaiBudgeticommitteeiisiformedihavingireprese
ntationihavingidifferentiunitsiatidifferentiplaces.,iexecutive,ibudgetiofficeriandiheadsiofi
alliBudgetsicenters.iTheiBudgetiOfficeriactsiasiaisecretaryitoichairman.iOtherimembersi
ofitheiBudgeticommitteeiusuallyicompriseivariousiheadsiofifunctionalidepartments,ilike
isalesimanager,ipurchaseimanager,iproductionimanager,ichiefiaccountantietc.iasishownii
nitheiaboveiOrganizationaliChart.
5)iPreparationiofiBudgetiManual:iAiBudgetimanualihasibeenidefinedibyiC.I.M.A.iL
ondoniasi“Aidocumentiwhichisetsioutitheiresponsibilitiesiforitheipersonsiengagediinithe
iroutineiofitheiformsiandirecordsirequirediforibudgetaryicontrol”.iAibudgetimanualiisith
usiaistatementiofibudgetipolicies.iItilayidownitheidetailsitheiorganizationalisetiupiwithid
utiesiandiresponsibilitiesiofiexecutivesiincludingitheiBudgeticommitteeiandibudgetiDire
ctorianditheiproceduresiandiprogrammesitoibeifollowediforidevelopingiBudgetsiforivari
ousiactivities.iTheicontentsiofiaibudgetimanualiareisummarizediasifollows:i
 Descriptioniofitheibudgetisystemiandiitsiobjectives.
 Procedureiandiformsitoibeiusediinibudgetipreparation.
 ResponsibilitiesiofiOperationaliExecutives,iBudgetiCommitteeiandibudgetiDire
ctor.
 Budgeticalendar,ispecifyingidefiniteidatesiforicompletioniofieachipartiofitheiBu
dgetiandisubmissioniofitheireport.
 Methodsiofiaccountingiandiaccounticodesiiniuse.
 Procedureitoibeiadoptediinioperatingitheisystem.
 Followi–iupiprocedure.
6)iBudgetiPeriod:iBudgetiperiodiisitheilengthiofitimeiforiwhichiaiBudgetiisipreparedian
dioperated.iBudgetiperiodsivaryibetweenishort-termiandilong-
termiandinoispecificiperiodicanibeilaididowniforiallibudgets.iItivariesiamongiconcernsia
ndiindustriesiforiseveralifactors.iWhetheriaibudgetiisilong-termediorishort-
termed,iitiisitoidecideiprimaryitheseitwoifactors:i
 Typeiofibusiness.
 Amountioficontrolirequired.
7)iDeterminationiofitheikeyiFactor:iAlsoiknowniasilimitingifactor,igoverningifactoria
ndiprincipaliBudgetifactor,itheikeyifactorimeansitheifactor,iwhichilimitsitheisizeiofioutp
ut.iItiisidefinediasi“theifactoritheiextentiofiwhoseiinfluenceimustifirstibeiassessediiniorde
ritoiensureithatifunctionaliBudgetsiareicapableiofifulfillment”.iSuchiaifactoriisiofivitalii
mportantiandieffectsialliBudgetsitoilargeiextent.
8)iBudgetiOfficer:iTheiChiefiExecutive,iwhoiisiatitheitopiofitheiorganization,iappointsi
someipersoniasiaibudgetiOfficer.iTheiBudgetiOfficeriisiempowereditoiscrutinizeitheiBu
dgetsiprepareibyidifferentifunctionaliheadsianditoimakeichangesiinithem,iifitheisituationi
soidemands.iTheiactualiperformanceiofidifferentidepartmentsiisicommunicateditoitheib
udgetiOfficer.iHeideterminesitheidepartmentsiareicommunicateditoitheiBudgetiOfficer.i
HeideterminesitheideviationsiinitheiBudgetsianditakesinecessaryistepsitoirectifyitheidefi
cienciesiifiany.iHeiworksiasico-
coordinatoriamongidifferentidepartmentsiandimonitorsitheirelevantiinformation.iHeials
oiinformsitheitopimanagementiaboutitheiperformanceiofidifferentidepartments.iTheiBud
getiOfficeriwillibeiableitoicarryioutihisiworkifullyiwellionlyiifiheiisiconversantiwithithei
workingiofitheidepartment.
9)iPatronageifromiTopiManagement:iForitheitrueisuccessiofibudgetaryiactivities,iim
petusiandidirectionimusticomeifromitheitopimanagement.iIfiinvolvementiofitopimanage
mentiisimissing,iitiwillibeidifficultiforiBudgetiOfficeritoibringirounditheireluctantilineim
anagersitoithisiwayiofithinking.iThus,irightiformitheistart,iactivitiesishouldibeiinitiatedii
nisuchiaimannerithatiinvolvementiofitopimanagementiinibudgetaryiactivitiesibecomesia
pparent.i
CONCEPTiOFiBUDGETARYiCONTROL
iBudgetaryiControliandiBudgetingiareiofteniusediinterichangeablyitoireferitoiaisystemiof
imanagementicontrol.i“BudgetaryiControl”iimpliesitheiuseiofiaicomprehensiveisystemi
ofibudgetingitoiaidimanagementiinicarryingioutiitsifunctionsilikeiplanning,ico-
ordinationiandicontrol.iAccordingitoiC.I.M.A,iLondoni“BudgetaryiControliisitheiestabli
shmentiofibudgetirelatingitoitheiresponsibilitiesiofiexecutiveiofiaipolicyianditoicontinuo
usicomparisoniofitheiactualiwithitheibudgetediresults,ieitheritoisecureibyiindividualiacti
onitheiobjectioniofipolicyioritoiprovideiaibasisiforiitsirevision”.
iAccordingitoiBrowniandiHowardi“BudgetaryiControliisiaisystemioficontrollingicostsiw
hichiincludesitheipreparationiofibudgets,ico-
ordinatingitheidebtsiandiestablishingiresponsibilities,icomparingiactualiperformanceiwi
thitheiBudgetiandiactingiuponiresultsitoiachieveimaximumiprofitability.
CharacteristicsiofiBudgetaryiControl:iTheimainicharacteristicsiareiasifollows:i
 EstablishmentiofiBudgetsiforieachifunctionioridepartmentifitheiorganization.
 ComparisoniofiactualiperformanceiwithitheiBudgetsionicontinuousibasis.
 Analysisiofivariationsiofiactualiperformanceiformithatiofitheibudgetediperfo
rmanceitoiknowitheireasonsithereiof.
Co-OrdinaliFeatures:iTheithreeico-
ordinalifeaturesiofiai“BudgetaryiControl”iareiasifollows:i
 Planning
 Co-ordination
 Control
iTherefore,iBudgetaryicontroliembracesialliandiiniadditioniincludesisciencesiofiplannin
githeiBudgetsitoieffectsianioverallimanagementitooliforitheibusinessiplanningiandicontr
ol,iquotesiRowlandiandiWilliam.
ObjectiveiofiBudgetingiControl
iBudgetaryicontroliimprovesiplanningiandiinico-
ordinationiandihelpsiinicontrol.iTheireasonsiforiproducingibudgetsiareiasifollows:
1) Toiaidiplanningiofiannualioperation.i
2) Toico-
ordinateitheiactivitiesiofivariousipartsianditoiensureiharmoniousiconditionsiprev
ailsiinitheiorganizationiwithieachiother
3) Toicommunicatesiplansitoitheivariousiresponsibilityicenterimanagers.
4) Toimotivateimanagersitoistriveitoiachieveitheiorganizationaligoals.
5) Toicontroliactivities.
6) Toievaluateitheiperformanceiofimanagers.
Characteristicsiofiaigoodibudgeting
1) Budgetingiprocessishouldibeibackediandisupportedibyitheichiefiexecutiveiofiani
organization.i
2) TheiOrganizationigoalishouldibeiqualifiediandiclearlyistated.iTheseigoalsishould
ibeiwithinitheiframeiworkiofiorganizationiiniplans.
3) Thereishouldibeiproperifixationiandidelegationiofiauthorityiandiresponsibility.
4) Theipersonsiforiexecutioniofibudgetishouldiparticipateiinibudgetipreparation.i
5) TheiBudgetishouldibeirealistic.iItishouldipresentigoalsithatiareireasonablyiattain
able.
6) Aigoodisystemiofiaccountingiisialsoiessentialitoimakeitheibudgetingisuccessful.
7) Theibudgetishouldicoveriallitheiphasesiofitheiorganizationiandibeicontinuousiex
ercise.
8) Periodicireportishouldibeiprepared.iComparingibudgetiandiactualiresultsii.e..,ith
ereishouldibeieffectiveifollowiup.
9) Clear-
cutiorganizationalilinesishouldibeiestablishedianditheiemployeesishouldibeiimpa
iredibudgetingieducation.
10) Theibudgetingisystemishouldibeibasesioniinformation,icommunicationiandiparti
cipation.
RequisitesiforiaiSuccessfuliBudgetaryiControliSystem
1) Theibudgetsiareiuseditoirealizeiobjectivesiofitheibusiness.iInitheiabsenceioficlear
igoals,itheibudgetsiwillialsoibeiunrealistic.
2) Budgetipreparationiandicontroliisidoneiatieveryileveliofimanagement.iEveryitho
ughibudgetsiareifinalizediatitopilevelibutitheiinvolvementiofipersoniformiloweril
evelsiofimanagementiisiessentialiforitheirisuccess.iThisinecessitatesiproperidele
gationsiofiauthorityiandiresponsibility.
3) Anieffectiveisystemioficommunicationiisirequirediforiaisuccessfulibudgetaryico
ntrol.
4) Budgetaryicontrolimayinotibeitakenionlyiasicontrolideviceibyitheiemployeesibuti
itishouldibeiusediasiaitooliimprovesitheiriefficiency.
5) Budgetingiisidone4iforieveryisegmentiofitheibusiness.iItiwillialsoirequireitheiacti
veiparticipationiandiinvolvementiofialliemployees.iTheisuccessiofibudgetaryico
ntrolisystemsidependsiuponitheiparticipationiofialliemployeesiofitheiorganizatio
ns.
6) Flexibilityiinibudgetsiisirequireditoimakeithemisuitableiunderichangedicircumst
ances.iBudgetsiareipreparediforitheifuture,iwhichiisialwaysiuncertain.iFlexibility
iwillimakeitheibudgetsimoreiappropriateiandirealistic.
7) Allipersonsishouldibeimotivateditoiimproveitheiriworkingisoithatibudgetingiisisu
ccessful.iAiproperisystemiofimotivationishouldibeiintroducediforimakingithisisy
stemiaisuccess.
AdvantagesiofiBudgetaryiControl
 TheiBudgetiprogrammeiforcesitheimanagersiintoiplaniahead.
 Iniforcesiearlyiconsiderationiofibasicipolicies.
 Allimembersiofitopimanagementiparticipateiinibudgeticommittee.iForithisireaso
nieveniplanningiaidepartmentalileveligetsibenefitsiofiexperienceiofiseasonediexe
cutives.
 Managementiisiforcesitoiputidowniinicoldifigures,iwhatiisimeansibyisatisfactoryi
results.
 Itidemandsitheimostieconomicaliuseiofilabour,imaterials,ifacilitiesiandicapital.
 Iniinculcatesiaihabitiofitimely,icareful,iadequateiconsiderationsiofiallifactorsibef
oreireachingiimportantidecisions.
 Theiuseiofibudgetipromotesiunderstandingiofitheiproblemsiofico-workers.
 Itifacilitatesiperiodiself-analysisiofitheiorganization.
 Theiuseiofibudgetsiremovesicloudsiofiuncertaintiesiforilowerilevelsiofimanagem
entiregardingibasicipoliciesiandiobjectives.
 Managementiisiforceditoigiveitimelyiandiadequateiattentionitoitheieffectiofichan
gingibusinessiconditions.
 Budgetingico-
ordinatesitheiactivitiesiofivariousidepartmentiandifunctionsiofitheibusiness.
 Budgetingicontroliaimsiatimaximizationiofiprofitsithroughicarefuliplanningiandi
control.
 Itidirectsicapitaliexpenditureiinimaximizationiofiprofitsithroughicarefuliplanning
iandicontrol
 Itidirectsicapitaliexpenditureiinitheimostiprofitableidirection.
 Budgetaryicontrolisystemicreatesinecessaryiconditionsiforitheiintroductioniofist
andardicastingitechniques.
 Aibudgetaryicontrolisystemiassistsiinidelegationiofiauthorityiandiassignmentiofir
esponsibility.
LimitationsiofiBudgeting
 Budgetingicannotitakeiplaceiofimanagementibutiisionlyiaitooliofimanagementith
eibudgetishouldibeiregardedinotiasiaimaster,ibutiasiaiservant.
 Aibudgetiprogrammeimustibeidynamiciandicontinuouslyidealiwithitheichainingi
businessiconditions.iBudgetsiwilliloseimuchiofitheiriusefulnessiifitheyiacquireiri
gidityiandiareinotirevisediwithitheichangingicircumstances
 Budgetingiisianiexpensiveitechnique.iTheiinstallationiandioperationiofitheibudg
etaryicontrolisystemiisicostlyiaffairiasiitirequiresitheiemploymentiofispecializedi
staffiandiinvolvesiotheriexpenditureiwhichismalliconcernimayifindidifficultitoiin
cur.
 Estimatesiareiusediasibasisiforibudgetiplaniandiestimatesiareibasedimostlyioniav
ailableifactsiandibesetimanagerialijudgments.iSinceiailotiofihumanielementiisiin
volvediiniexercisingimanagerialijudgment.iItiisibutinaturalitoigiveisomeiallowan
ceiinterpretationiandiutilizationiofiestimatediresults.iBudgetingibasedioniinaccur
ateiforecastsiisiuseilessiasiaiyardstickiforitheimeasuringiofitheiactualiperformanc
e.
 Theicircumstancesiareiconstantlyichangingiandithereforeibudgetsiandibudgetary
itechniquesiwillinotibeiuseful,itillitheyiareicontinuallyiadapted.
 Budgetaryicontrolicannotireduceitheimanagerialifunctionitoiformals.iItiisionlyiai
managerialitool,iwhichiincreaseieffectivenessiofimanagerialicontrol.
 Theiuseiofibudgetsimayileaditoirestrictediuseiofiresources.iBudgetsiareioftenitak
eniasilimits.iEffortsimay,itherefore,inotibeimadeitoiexceeditheiperformanceibeyo
nditheibudgeteditargets,ievenithoughiitimayibeiphysicallyipossible.
THEiBUDGETINGiPROCESSiINiNON-PROFITiMAKINGiORGANIZATION
iItinormallyibeginsiwithitheimangersiofitheivariousiactivitiesicalculatingitheiexpectedico
stiofimaintainingicurrentiongoingiactivitiesianditheniaddingitoithose,iwhichiareiconsider
edidesirable.i
iChurches,ihospitals,icharitiesiandiotherino-
profitimakingiorganizationsiproduceiestimatesiforiunderstandingiactivitiesiandilaterifin
ditheimeansitoifinancesithen,iorieveniadjustitheiactivitiesitoitheiavailableifinancialiresou
rces.iOnceidifficultyiiniitiisithatioutputicannotibeimeasurediinimonetaryitermsii.e.,iweica
nnotimeasureiqualityiamountiandiservicesirendered.
INDUSTRY AND COMPANY PROFILE
Fiber concrete is a composite building and development material, utilized
predominantly in material and veneer items in view of its quality and strength.
Substance • Material portrayal • Material history • Material use • References Material
portrayal The expression "concrete" begins from the Latin word "Caementum", which
implies cleaved stone. Bond depicts a substance, which will respond synthetically
with water and form into a material hard as stone.
In fiber concrete there is a fiber support, which adds to influencing the fiber-to bond
material much more grounded. Together with a precisely arranged creation process,
fiber concrete makes it conceivable to create solid and durable development
materials.[1] Today fiber bond is considered as a material physically suited for
development items, for example, cladding and material.
It is basically because of its capacity, execution and business value.[2] Fiber concrete
level sheet grouped, by licensed research facilities, as Category An as indicated by BS

EN 12467: 2004 Fiber-bond level sheets – Product particular and test techniques are
sheets which are proposed for applications where they might be liable to warm, high
dampness and serious ice.
While the most ideal Reaction to Fire Classifications are A1 (development
applications) and A1Fl (flooring applications) individually, both of which signify
"non-flammable" as indicated by EN 13501-1: 2007, as grouped by an informed
research center in Europe, some fiber concrete sheets just accompany Fire
Classification of A2 (constrained instability) or even lower arrangements, in the event
that they are tried by any stretch of the imagination.
Material history Fiber-fortified bond items were designed in the late nineteenth
century by the Austrian Ludwig Hatschek. He blended 90% bond and 10% asbestos
strands with water and ran it through a cardboard machine, framing solid thin sheets.
Initially, the fortifying strands were of asbestos and the material was regularly utilized
as siding in house structures because of its ease, imperviousness to fire, water
snugness, light weight, and other helpful properties.
In the 1970s it turned out to be broadly recognized that introduction to asbestos is
unsafe to wellbeing, being specifically identified with various dangerous ailments
including, asbestosis, pleural mesothelioma (lung) and peritoneal mesothelioma
(stomach area). Thus, asbestos utilize was dynamically precluded and more secure
fiber options were created, basically cellulose, to permit proceeded with misuse of the
generally recognized focal points of fiber concrete. Fiber concrete items were among
the last materials accessible to have contained vast amounts of asbestos.

The asbestos strands are personally bound to the concrete framework and were
thought to be immobilized in the bond and hence less inclined to be discharged in the
earth, suspended noticeable all around, and breathed in the lung than in different
materials or applications, for example, warm protection or rushing, in which free
asbestos filaments were utilized.
Notwithstanding, asbestos strands are definitely discharged amid machining of the
fiber-bond items, and by long haul disintegration of the material after it has been
presented to air weathering and wind, which makes the concrete corrupt. Word related
wellbeing concerns and the security of specialists in the fiber-concrete plants have at
long last prompted the dynamic disposal of asbestos from these products.[1] Clients
of fiber concrete sheets looking for elite and solid green building materials should
source items having been tried by authorize research centers and demonstrated that
they are 100% free from asbestos or other hurtful materials, for example, sepiolite,
inorganic fiber or formaldehyde.
Material utilization Fiber bond is a principle segment of dependable building
materials. The principle application zones are material and cladding. The rundown
underneath gives some regular applications. Interior cladding: • Wet room
applications – tile supporter sheets • Fire security • Partition dividers • Window ledges
• Ceilings and floors Outside cladding: • Flat sheets as base as well as compositional
confronting • Flat sheets for e.g.
wind shields, divider copings, and soffits • Corrugated sheets • Slates as building full
and incomplete confronting • Underroof • Planks Material: • Slates • Corrugated
sheets Fiber-bond items have discovered a wide utilization in different parts of
development: mechanical, agrarian, local and private structures, essentially in material
and cladding applications, for new developments and repair ventures.
Reviews • Overview—fundamental articles of different points • Outlines—subject
rundowns, as takes after: 1. Ease of revelation—diagrams indicate which points have
a place with a subject and why 2. Subject structure—diagrams demonstrate point
connections (what has a place with what) • List of scholastic teaches and sub-
disciplines—subjects examined in school or college • Classification frameworks
giving a layout or outline of learning: o List of Dewey Decimal classes—top two
levels of this library grouping framework, connected to Wikipedia articles o Library
of Congress Classification—LCC subjects connected to Wikipedia articles o Outline
of Roget's Thesaurus—articles sorted out into a framework in light of six classes, with
a large number of branches, following Roget's framework Thing records • Lists—List
of arrangements of related (things) • Two of the broadest thing list accumulations are:
o Lists of nations and regions and numerous rundowns by nation o Lists of individuals
including by nationality and by occupation Timetables • Timelines—list articles
sequentially. o List of hundreds of years o List of decades o List of authentic
commemorations—e.g.
occasions on January 1 of any year o 2015—real occasions this year o Portal:Current
occasions—highlighted current occasions and related venture exercises o Deaths in
2015—records eminent individuals who kicked the bucket this year WEHRHAHN
plants (gear) Exclusively intended to meet your prerequisites. Wehrhahn supplies

plants with limits from 2 - 20 t/h.
The fiber concrete creation process has persistently been additionally created to
diminish material and vitality utilization figures. Process related cut-off materials and
rejects are promptly reused all the while. Surplus water goes through a treatment plant
and returns into the creation procedure. For the creation of the substantial assortment
of sheets, two innovations have ended up being reasonable: Air cured (CC) fiber bond
sheets are ideal for material items and all applications where the sheets are
straightforwardly presented to unforgiving climate conditions.
Autoclaved (CCA) sheets are the decision for façades, cladding and every single
inside application. • CC = Cellulose Cement Sheets CC sheets are produced from
concrete and fillers. A mix of virgin cellulose and manufactured strands, for example,
PVA or PAN are utilized as fiber fortification.
• CCA = Cellulose Cement Autoclaved Sheets CCA sheets are produced from
concrete, finely ground silica sand and a few added substances. Virgin cellulose is
utilized as fiber fortification. Compacted sheets CC and CCA sheets can be
compacted in a solitary sheet or stack press. Squeezing expands the sheet thickness
and quality. The sheet opposition towards solidify/defrost conditions is improved.
Squeezing gives an exceptionally smooth surface wrap up. Which innovation for
which item? CC sheets for CCA sheets for Material (ridged or level) Lap siding (with
timber design, wood grain or smooth) Façades Façades Fencing Fencing - External
base for mortar - All inside applications Plant limit extend Market Capacities t/hour
Number of sheeting machine barrels Sheeting machine width Small 2 - 3 2 single
width Medium 8 - 10 4 - 6 single width Huge up to 20 5 double width WEHRHAHN
driving in autoclave innovation WEHRHAHN is the worldwide pioneer with better
innovation than make machines for the generation of autoclaved calcium-silicate
items, for example, fiber-concrete sheets, circulated air through solid pieces and
boards, protection sheets, and so on.
Sand pounding, sand slurry dosing and also autoclaves, programmed weight control
and programmed condensate release are similarly imperative parts of Wehrhahn's
know-how. Organization PROFILE BRIEF HISTORY OF THE COMPANY: The
Company was fused under the Indian organizations Act, 1956 on eighth June.1985 As
Visaka Asbestos concrete items Limited. With influence from ninth August 1990, the
name of the organization was changed to Visaka Industries Limited.
The organization is a Rs.135 Crores turnover, profit paying Company occupied with
the matter of Building Products and Synthetic Blended Yearns. PROMOTERS: The
organization was together advanced by APIDC and Dr. G.Vivekananda to
Manufacture Fiber Building Products. Dr. G.Vivekananda is an original business
visionary. APIDC has since stripped its whole stake.
PROCESS AND TECHNOLOGY: The Company's Spinning unit utilizes the most
recent turning machines reporting in real time Jet Spinning Technology obtained from
Murata of Japan and Visaka is the greatest pioneer of Air Jet Spinning on the planet
with the most elevated Productivity and effectiveness. The Company two Asbestos
Cement Sheet Manufacturing Units working at over 125% of limit use with ISI
aceditation.These units utilize a constant innovation.
Area : The Company's Building Product plants are situated at Yelumala town,
R.C.Puram Mandal, Medak District, close Hyderabad (Andhra Pradesh) and at
Manickanatham Village, Paramati, Velur Tale, Namkal District, Tamilnadu.The
Synthetic Blended yarn manufacturing plant is situated at Chiruva Village, Moudha
Taluk, Nagpur District, I Manharastra Crude MATERIALS: The principle crude
materials for Building Products are Asbestos Fiber and Cement.
COMPANYiPRODUCTS
iVisakaiIndustriesiainameithatiisiSynonymousiwithiqualityiandiStrength.
AiCompanyithatipridesiitselfionitheiexcellenceiofiitsiproducts,iitsisuperioritechno
logy.iAndimostiosialliitsiprofessionaliexertise.iAllithisicombinesitoiconfirmitheiu
ndisputedifactithatiVisakaiproductsiareihighlyiappreciatediforitheirieconomyiandi
durabilityiandiprotectioniforiallikindsiofiseasons.iTheyiManufactureiAsbestosishe
etsitoiinternationalistandardsiatianiaffordableicost.
Sheetiprofile:
iISIiSPECIFICATIONiTECHNICALiDATA
Standardilengths iTolerance MaximumiUnsupported

(iniMetres) i(inimm) Overhangi:300immi
i:3.00,2.75,2.50,2.25
i2.00,1.75,1.50 i+5
i
iThicknessi:6immi i-10 MaximumiPurlingiSpacing
foriroofingi:1.4iM
i+free
iPitchi:146imm MaximumiRailispacingifor
i-0.5 verticalicladdingi:1.7iM
iDepthi:48imm i+6 SelectioniModulusi
3
i:ZBi:75icm
i
i-2
3
iZTi85icm
i+3
iOveralliWidthi:1050imm MomentiofiRupture
2
i-5 i:200kg/cm
iEffectiveiWidthi:1010imm i+10 Runningimetresiperi

tonnei(approx)i:78
i-5
i+10
i-5
Technologyi&iQualityicontroli:
iVisaka’sihigh-
techiAsbestosiCementiplantiisiaifullyiautomatedifactoryiincorporatingitheilargesti
andimostisophisticateditecjnology.iResultingiiniconsistencyiiniphysicalipropertiesi
andistrength,iwhichifariexceedsitheistandardsiprescribedibyiI.S.I
CustomeriServicei:
iTheiVisakaipersonalisedicustomeriserviceiisigeareditoiensureicustomeris
atisfication.iTheimarkettingianditechnicaliteamiworksicloselyiwithitheicusto
mer,iidentifyingihisineeds,ihelpingiiniRoofiDesign-
Installationiandikeepiniinicloseicontactibeforeiandiafteriheibuysitheiprodu
cts.iVisaka’sicustomeriserviceiisifurtherisupportedibytheiristockistsiwhoiar
eiselectediforitheiriintegrityiandirepute.iTheyiareialsoitraineditoiprovideite
chnicaliadviceitoiclients,isuchiasiadviceioniEstimating,iInstallationietc.,itot
allyifreeioficost.
BudgetiDepartmentiofiVisaka’s
iAiconcernimustihaveianiorganizationichart.iThisinecessaryiiniorderitoihaveiclea
riideaiofiauthorityiandiresponsibilityiofiChiefiExecutiveisoithatitheyimayibeinoic
onflictsiamongiFunctioniExecutiveiforishrinkingiresponsibilityiandimakingiother’s
iresponsibilitiesiforipooriperformances.iInipreparingiMaintainingiandiadministratin
githeiBudgetisectioniatiSSEiconsistsiofianiAccountsiOfficerianditwoiassistantsig
uidedibyioneiDeputyiControlleriofiAccountsiwhoiwillibeisupervisedibyijointicont
rolleri(F&A)iwhoiisitheiresponsibleipersonifromiFinanceiWingitoipresentitheiBu
dgetitoitheiExecutiveiCommitteeianditheiHeadiofiUnitiViz,iChiefiExecutive.
iAfteritheiapprovaliofitheiChiefiExecutive,itheiBudgetiproposalsiwillibeiplacedib
eforeivisakaiBoarditheiBudgetiproposalsiwillibeisubmitteditoitheiDepartmentiofi
AtomiciEnergy,iMumbaiiforiapproval.
iTheiDepartmentiafterireceiptiofiproposalsiscrutinizeitheirequirementsiofieachiuni
tiandiafteriaidetailedidiscussion,icompilediproposaliofitheidepartmentiasiaiwholei
willibeiplacesibeforeiAtomiciEnergyiCommission.iInirespectiofitheicapitaliprojec
tsitheiapprovaliofitheiplanningiCommission.iInirespectiofitheicapitaliprojectsithei
approvaliofitheiplanningiCommissionihasitoibeiobtainedibeforeiexecutioniofianyi
ongoingiforinewiproject.
FunctioniofiBudgetiWingiatiSSE
 IssueiofiBudgetiCircular.
 CollectioniofidatairelatingitoiactualiReceiptsiandiExpenditureiofipreviousi
year.
 CompilationiofiestimatesiofiReceiptsiandiExpenditureireceivedifromivario
usiauthorities
 Preparationiofivariousisupportingibreak-
upistatementiofiReceiptsiandiExpenditure
 CompilationiofibudgetiEstimatesiinirespectiofiReceipts,iRevenueiExpendit
ure,iCapitaliExpenditure,iLoansiandiadvances,iProvidentiFundi(Receiptsian
diPayments)ietc.
 Monthly/Quarterlyiphasingiofireceiptsiandiexpenditureiforiperiodicalirevie
wiandifinancialicontrol.
 PreparationiofimonthlyireportiofiReceiptsiandiExpenditureiwithisupportive
ibreakupistatements.
 PreparationiofiAnnualiplaniproposalsiinirespectiofiCapitaliProjectsi(bothio
ngoingiandinew)iforiapprovaliofiDepartmentiasiwelliasiplanningiCommiss
ion.
 IntimationiofiprogressiofiexpenditureiinirespectiofiCapitaliProjectsitoithei
concernediprojectiCo-ordinates.
 ReviewiofireceiptsiExpenditureiforifinaligrantiofiexpenditureiandisurrende
riofifunds.iIfiany.
 PreparationiofiAppropriationiAccounti(budgetiEstimateiandiActualiExpend
itureiandiVariationsianditheireasonsithereiof)
 Correspondenceiwithiconcernediauthoritiesiinirespectiofiallitheiabove.i
PreparationiofibudgetiatiVisaka’si
iTheiBudgetiofitheiorganizationiisibeingipreparediforitheifollowing.iAidetailedie
stimateiofitheifollowingiisitakeniintoiconsideration.
 Receipts
 ExpenditureioniRevenueiAccount
 TheiExpenditureioniCapitaliAccount
TheiBudgetiestimatesishalligiveitheianticipatedireceiptsiandiexpenditureifo
ritheiensuringifinancialiyeariunderieachimajor,iminor,isubiandidetailediheadsi
ofiaccounts.
BudgetiProposaliatiVisaka’si
i
iTheiproposalsiforitheiensuringiyearihaveitoibeisubmitteditoitheidepartmentibyi
middleiofiAugustieveryiyeariunderivariousiprescribediformatsitoienableitheidepar
tmentsitoiconsolidateitheiproposalsiofiallitheiunitsiofiDepartmentiofiAtomiciEner
gyiandisubmissionitoitheiunitsiofiDepartmentiofiAtomiciEnergyiandisubmissionit
oitheibudgetiandiplanningiDivision.iMinistryiofifinance,iNewiDelhiibyitheiendio
fiNovember.iAfteriscrutinyiandidiscussions,ibudgetiandiplanningiDivisioniwillifin
alizeitheioverallibudgetiforitheidepartmentitentativelyithisihasitoibeivoteibyithei
parliament,iMinistry-wise.
iWhileisubmittingitheibudgetiproposals,ireviewiofitheicurrentiyear’siexpenditurei
withiregarditoiallocatedifundsi(votedibyitheiparliament)ihasitoibeimadeibyieachi
unitiandiassess:i
1)iWhetheritheiprovisionsiapprovediareisufficientitoimeetitheiexpenditureiunderie
achiobjectihead.
2)iWhetherianyiadditionaliprovisionsirequiredidueitoiunforeseenicircumstancesilik
eisteepihikeiinipricesiofisuppliesiandimaterials,iAdditionaliexpenditureioniaccoun
tiofirevisioniinipayiscaleietc.iOrianyiurgentirequirementiofimachineryioriequipm
entiorisuppliesihasiariseniwhichiwasinoticontemplatediearlieriandiwhichiisinowii
nevitableiforirunningitheiunitietc.
3)iWhetherianyisavingiisipossibleifromitheiapprovediprovisionidueitoidelayiiniar
rivaliofianyiofitheimachineryioritheimaterial,ipostponementiofianyimajoriexpendi
tureioriprojectiimplementationietc.
4)iReviseitheiprovisioniaccordinglyiandireviseirequirementiunderieachiobjectihea
dilikeisalaries,iover-
timeitravel,imachineryisuppliesiandimaterialsietc..,ihasitoibeimadeiandisubmitted
itoitheidepartmentiforiapproval.iThisiisicallediRevisediEstimatesiofitheicurrenti
year.
iTheidepartmentiafterireceivingiofiproposalsiscrutinizeitheirequirementsiofiea
chiunitiandiafteridiscussionsiprovisionallyiapprovesitheirevisediestimatesiandi
allocatesieitheribyitransferringitheiunspentiamountifromiotheriunitsiifiavailabl
eioriifinoifundsicouldibeiaugmentediwithinitheidepartmentirequestsitheiMinis
tryioriFinanceiforigrantiofiadditionalifundsigivingitheivalidireasonsiforirevise
diEstimatesiofitheidepartment
iTheiministryiafteridueiscrutinyiallocatesiadditionaliprovisionitoitheidepartme
ntibyimakingitheioveralliadjustmentsiinitheivotedibudgetiofitheiUnioniGover
nment’siprovisionsiandigetsitheiapprovaliofitheiparliamentiaftericompletioniof
itheiyearibeforeisubmissioniofitheicurrentiyear’siBudgetitoitheiparliament.iTh
isiisiknowniasi“AppropriationiBill”i(Reappropriationiofifunds)iwhichiwillibei
approvedibyitheipresidentionipassingiofitheibillibyitheiparliament.
iSeparateibudgetiproposalsiwillibeisubmittediunderiresearchisectorsiViz..,iInd
ustryiandiMineraliSectors,iseparatelyiforibothiplaniExpenditurei(CapitaliProje
cts)iandiNon-
Plani(Revenue)iExpenditure.iTheiplaniExpenditureiprovisionsiareitoibeiappro
vedibyitheiplanningiCommissioniforiutilizationiofifundsiasiproposedibyitheiu
nitsioritheidepartmentiwelliiniadvance.
iTheiplanningiCommissioniwilliscrutinizeialliplaniproposalsiduringiDecember
ioriJanuaryiforitheiensuringiyearitakingiintoiaccountitheinecessityiofiprojecti(
Forinewiones)iandistatusiofitheiprojectiinirespectiofion-
goingiproject.iDepartmenti/iMinistryi–
iwiseiforiwhichidifferentiformatsiwereiprescribed.
BudgetiPeriodiiniVisaka’si
iBudgetiperiodiisitheiperiodiforiwhichiaibudgetiisipreparediandiemployed.iIniter
msiofitime,ibudgeticanibeishortiandiLong-termsiBudget.iShort-
termiBudgetiisipreparedionitheibasisiofiday-to-
dayiadministrations.iTheyiareigenerallyipreparediiniphysicaliasiwelliasiinimonitor
y.iLong-
termiBudgetiisidesignediforiailongiperiod.iThisiisipreparediinitheicaseiofimajori
projectsischemesitoiknowiiniadvancesitheiprobableicapitalicommitments.
iIniSSE,iBudgetiisipreparediforibothiLong-termi(Fiveiyearsiplan),ishort-
termi(OneiyeariPlan)iandiisireviewediperiodically.
 TheiLong-
termsiBudgetiisimadeigenerallyiforitheicapitaliprojectsibothiforiongoingia
ndinewiprojectsiandiactioniplansiwillibeidrawniupiforisettingiupiofinewi
projectsiwithiaiviewitoiattainitheipredeterminediobjectsitoimeetitheifuture
irequirements.iTheiplaniproject,ihaveitoibeifirstiapprovediforitheiprojects,
iwillibeiasineedibasediandirevisediasiperitheiavailabilityiofifunds.
 WhileipreparingitheiBudgetiestimatesiforitheiensuringiyear,iaireviewiofiB
udgetiproposalsimadeiforitheicurrentiyeariwillibeitakeniupiduringimidiJul
yiandiAugustiorieachiyear.iAnyirevisioniinitheiestimatesiwillibeiproposed
ibasedionitheianticipatediexpenditureitilliendiofifinancialiyear,ithisiisikno
wniasiRevisediEstimatesiforitheicurrentiyear.
Pre-requisitesiMetiByiVisaka’siforiEffectiveibudgetaryiControliSystem
iIniorderitoiensureieffectiveiandisuccessfuliimplementationiofibudgetaryicontrolis
ystemiiniorganization,ivisakaiManagementihasifulfilleditheifollowingipre-
requisites.
 Theiobjectives,iplansiandipolicesiofitheiorganizationiareispeltioutiinicleari
cutitermsiwithoutiambiguity.
 TheiorganizationichartiiniSSE,iclearlyidefinesitheidutiesiandiresponsibiliti
esiforieachileveliofiexecutives.
 IniBevconitheioutputileveliforiwhichiBudgetsiareifixediareispellediouticle
arly.i
 AiBudgeticommitteeiisiconstitutediforieffectiveifunctioningiofiBudgetingia
ndibudgetaryicontrolisystem.
 Thereiisiaiwellidefinedisystemioficommunicationiandireportingibetweeniv
ariousilevelsiofimanagementsi
 ManagementihasinominatediHeadiofiFinanceiasiBudgetiControlleriwhoiisi
capableitoishareihisiideasiwithivariousiauthoritiesiand.iCo-
ordinatesitheiactivities.
 ThereiisiaiBudgetimanualiinivisaka,iclearlyidefiningitheiplans,iprocedures
ietc.,iforioperationiofiBudgetiandicontrol.
 TheiBudgetiwillibeipreparediforiallirelatediactivatesitasksiinitheifirm,ithat
itheyirepresenticompleteness.
 Budgetsiareipreparediforiallirelatediactivitiesi/itasksiinitheifirm,itatitheyir
epresenticompleteness.
 Supportiofitopimanagementiforieffectiveiimplementationiofibudgetaryisyst
emiandicontrolsialsoiexistsiatiVisaka’si.
TypesiofiBudgetsiPreparediiniVisaka’si
iTypesiofiBudgetsipreparediiniVisaka’si,iHyderabadiare:
1)iCapitalibudget
2)iRevenueibudgetiandiReceiptiBudget.
3)iPubliciAccountsiBudget.
1.iCapitaliBudget:iThisiconsistsiofiexpenditureiinicapitaliprojectsiproposalsibyiv
isaka.iTheiCapitaliBudgetiisipreparedibasedionitheisanctionedicostiofitheiprojecti
approvediinitheifiveiyeariplaniquality.iCapitalipaymentsiconsistioficapitaliexpend
itureioniacquisitioniofiassetsilikeiland,ibuilding,imachinery,iequipmentiandiotheri
establishmenticharges.iForiCapitaliProjectsitheiapprovaliofitheiplanningiCommiss
ionihasitoibeiobtainedibeforeiexecutioniofianyiOngoing/NewiProject.
iTheiBudgetiEstimatesiunderitheiCapitaliHeadiwillihaveitoibeimadeiseparatelyif
orieachiprojectiaccordingitoitheiaimsiandiobjectsiofitheiprojectiandinecessaryireq
uirementsiforitheisame.iTheiallocationiofifundsiwillidependingiuponitheiprogress
iofithei
2.iRevenueiandiReceiptiBudget:iRevenueiBudgeticonsistsiofitheiexpenditureiini
connectioniwithioperatingitheiplants.iIticonsistsiofitheiexpenditureirelatingitoithei
followingiitems:
 Purchaseiofirawimaterials.i
 PurchaseiofiConsumables
 PurchaseiofiSparesianditools.
 EstablishmentiCharges.
 CostiofifueliandimaintenanceiofiVehicles.
 Depreciation.
 Interest.
iRevenueibudgetiisiproposedioniaiyearlyibasis.iItiisipreparedibasedionitheipr
oductionischeduleiforiaiparticulariyear.
iIniBevcon,itheiRevenueiExpenditureiisimadeiforivariousioperationalifacilities
,itheyiare:
 FuelifabricationiFacilities:iThisidealsiwithimanufactureiofiFuelicomp
onents.
 Tubeiplants:i-
iWhichidealsiwithimanufactureiofiZircalloyiandiStructuraliTubesiforit
heifuelirequirements.
 EstateiManagement:i-
iThisidealsiwithitheiexpenditureitoiwaresimaintenanceiofiHousingiCol
onyiofitheiemployees.
 DepartmentiCanteen:i-
itheiexpenditureitoiwaresimanpoweriandiotherirelatediexpenditureiBud
getiinimaintainingicanteeniforitheiemployeesiwillibeiclassifiediunderit
hisihead.
iIniadditionitoitheiabove,iexpenditureitowardsisecurityianditransportationiofitheie
mployeesietc.,iwillifalliunderiRevenueiHeadiofitheiOrganization.
RevenueiReceipts:iRevenueiReceiptsiBudgetiisipreparedibasedionitheiproduction
ischeduleiandianticipatediscaleiofiproductsiforitheiyear.iTheireceiptsiareiprojecte
dibasedionitheirequirementiofitheifueliboundlessi(PHWRi&iBWR)ibyitheioperat
ingireactorsiofiNucleariPoweriCorporationiandilikelyijobiworksifromiprivateipart
iesiandisaleiofieffluents,ispecialimaterialietc.
3.iPubliciAccountibudget:iBesidesitheinormaliReceiptsiandiExpenditure,iGovern
mentiofiIndiaiactsiasicustodianiinirespectiofifundsicollectediformiitsiemployeesia
ndialsoifromipublic.
iForiexample,itransactionirelatingitoiprovidentifunds,ismallisavingsicollectionsian
diotherisecurityidepositsietc.,itheimoneyithusireceivediisikeptiinitheipubliciaccou
ntitillitheirifinalisettlementiasitheimoney,igenerallyispeaking,idoesinotibelongitoi
theigovernmentiandihasitoibeipaidibackisometimeioritheiotheritoitheipersoniandi
authoritiesiwhoidepositedionifulfillmentsiofitheirulesiandiregulationilaididowniby
itheigovernment.
ActioniatiBevconiatiUnitiLevel
iSinceitheitimeiofisubmissioniofitheiBudgetiproposalsiisistandard,itheiunitihasito
iinitiateiactioniwelliiniadvanceibyicallingiforitheirequirementsiforitheivariousiag
enciesiduringiJuneiofieachiyeariandicollectitheidataibyitheiendiofitheimonth.iVa
riousiperformsiareidesignediforitheicollectionidata.iTheiimportantionesiare:i
i1)iManiPoweriBudget
i2)iMachineryiandiEquipment
i3)iSuppliesiandimaterials
i4)iMotoriVehicles
i5)iMinor/MaintenanceiWorks
i6)iMajoriCivil/ElectricaliWorksiforiconstructionioficapitaliprojects.
i7)iOfficeiandiotheriadministrativeiexpenditure.
i8)iInterestiandiDepreciationiReservesietc.
iTheirequirementiofidataiinirespectiofimachineryiitems,isuppliesiandimaterials,im
ajoriworksiareibeingiobtainediformiplantsithroughionlineiinivariousiformats,iwhic
hiwillibeicompileditoiassessitheitotaliexpenditureiunderitheseiheadsiforitheiuniti
asiwhile.iAllitheiinformationioniplaniprojectsiisidistinctiveiandiwillibeiscrutinize
diforiutilization.i
st
iTheiRevenueiExpenditureiisigrantediforiutilizationsiwithinitheiyeariendingi31 i
Marchiofieveryiyeariandianyiunspentiamountiwillilapseiandinotiavailableiforithe
inextiunlessiprovidediafreshiwhileisubmissioniofirevisediproposals.
iWhereasiinirespectioficapitaliprojectitheiprojecticostiisisanctionediforicompletio
niofitheiprojectianditheiunspenticouldibeispilledioveritoinextiyearibyimakingipr
ovisioniiniRevisediEstimates.iTheirevenueiExpenditureidependsiuponitheirequire
mentiduringitheiyearitowardsitheioperationalicostiofitheicompleteiprojectsiandith
ereiareinoilowerioriupperilimitsiwhereasitheiCapitaliExpenditureiisilimiteditoithe
isanctionedicostiofitheiprojectiasiwelliasitheiapprovedioutlayiduringitheiFiveiyea
riperiod.
Compilationiofiallitheiinformationiobject-
wiseianditheidraftiproposalsiofiprovisionsirequiredibyieachiplantiwithireferenceit
oitheidraftiproposalsiofiprovisionirequiredibyieachiplantiwithireferenceitoitheipr
oposediproductioniandioverallirequirementiforitheiunitiwillibeisubmittediforiappr
ovaliofiChiefiExecutive.
Theimajorirequirementsiforitheiunitiare:
 Rawimaterialsiforiproduction.
 TowardipoweriandiWateriexpenditureipayableitoitheilocalimunicipal.
 TowardsiTransportationiofistaff,ipaymentiofiAPSRTC/PVTitransporters.i
 TowardsiDieseliOilirequirediforibothiplants,ipoweriunitiandialsoiforivehic
les.
 Magnesium,izirconiSand,iZirconiumiSpongeietc.
iProvisioniforitheseiitemsiwillibeicrossimatchediwithitheiproductionitargets,iprev
iousiyear,istockiavailable,iprevailingiratesiandilikelyitimeitakeniforideliveryiofiit
emsietc.iAlligeneraliexpenditureilikeiofficeiandiadministrativeiexpenditure,itaxedi
etc.,iWillibeiassessedibasedionitheiactualirequirementiforitheifinancialiyeariandic
omparisoniwillialsoibeimadeiwithitheiactualiexpenditureiduringitheipreviousifina
ncialiyear.
iRequirementiofiovertimeiwillibeiprovidediasiperitheiproductionitargetsiandiman
poweriavailabilityiandiwillibeirestrictedibasedionitheidirectioniofitheiMinistryiof
iFinanceietc.iTheirequirementiofieachiplantiwillibeireviewediandidiscussediwithi
theiconcernediauthorities,ipossibilityiofiincurringiexpenditure,ipostponementiofire
quirementiofinextiyearietc.,iandifinallyitheientireirequirementitheiunitiwillibeifor
mulated.i
iManufactureiseamlessistainlessisteelianispecialialloyitubesiforiatomiciEnergy,iD
efense,ispaceiandiotheriprivateiindustries,iZirconiumiAlloyiComponentsiforiNon-
Nucleariapplicationisuchiasifertilizeriandiheavyichemicaliindustriesiandialsoihigh
ipurityiandiadvancedimaterialsiforivariousihi-techiapplications
iNearlyidecadesiofiexperienceiinitheimanufactureiofiproductsimeetingistringentiq
ualityirequirementiandicontinuousiinihouseitechnologyiup-
gradationihasidevelopediexpertiseiinidesign,ihasibuildiainumberiofisophisticatedi
equipmentisuchiasispecialichemicaliprocessireactorihighitemperatureisinteringifin
ancesiandipilgerimills,imadeirapidistridesifurnacesiinitheifieldiofimechanicalimat
erialihandlingiandiprocessiautomation.iAifewiofithisiequipmentihaveibeenisuppli
editoiinterestedicustomers.
Visaka’sihasiaicontinuousiHRDiprogrammesiforiupgradingitheiskillsiandi
knowledgeiofimanpower.iItihasievolvediandiimplementedisoundioccupationalihea
lth,isafetyiandienvironmentimanagementisystems.iTheigreenienvironsiofitheiprem
isesievolvediandiimplementedisoundioccupationalihealth,isafetyiandienvironmenti
managementisystems.iAsianiemployer,iprovidesihousingiassistance,imedicalicarei
andieducationalifacilities
ItihasidrawniupiplansiforistrengtheningicorporateiR&Diandiisipasseditoi
meetitheifutureirequirementiofitheiPoweriProgamme.iAsiregardsicapitaliprojects,i
reviewiofitheiexpenditureiupitoidateiwillibeitakeniasibaseiforirevisioniinitheireq
uirementiandiprogressiofiworkiandiarrivaliofimajoriequipmentishipmentiwillibeid
iscussedianditheiprovisioniwillibeiformulatediproject-wise.
Revenueireceiptsiofitheiunitifromitheisaleiofiproductsiproducediwillibeias
sessedibasedionirequirementiofivariousiunits,iandiotheriprivateiparties.iTheirequir
ementiofitheiunitiasiaiwholeiunderibothiRevenueiandiCapitaliheadsiwouldibeisu
bmitteditoitheiBoardiandioniapprovaliofitheisameiproposaliwillibeisentitoidepart
mentiforiconsideration.
CHAPTER-4
DATA ANALYSIS
AND
INTERPRETATION
TABLE NO.1
SHOWING REVENUE EXPENDITURE BUDGET
2010-2011
(Rupees in
Lakhs)
S.No. Item Budget Actual Variation Variation
Estimates (Amount) (Percentage)
1. Salaries and 6231 5918.98 312.02 5

Other
Establishment
Charges
2. Travel 100.1 48.45 41.65 41.55
Expenses(Foreign
Trips)
3. Supplies and 19421 18558.61 862.39 4.44
Materials
4. Minor works 1984.1 1922.61 61.49 3.09
5. Interest and 16 16 - -
Depreciation
6. Motor Vehicle 120 76.64 43.36 36.13
7. Expenses 415 403.04 11.96 2.88
8. Administrative 45.8 22.15 23.65 51.64
Expenses
9. Rent, Rates 25 28.03 -3.03 -12.12
And Taxes
10. Others 1011 854.55 156.45 15.47
Totals 45,353 43,843.06 1509.94 3.32
INCOME SPENDING BUDGET FOR YEAR 2010 -2011
50000
45000 Budget Estimates 6231
40000 100.1 19421 1984.1 16
35000
30000
25000
20000 Actual 5918.98 48.45
15000 18558.61 1922.61 16
10000
5000
0 Variation (Amount)
-5000
Others
Depreciation
Administrative
Motor Vehicle
Expenses
Expenses
And Taxes
Rent, Rates
Totals
312.02 41.65 862.39
61.49 -
Variation (Percentage) 5
41.55 4.44 3.09 -
6 7 8 9 10
Reasons for Differences between Budget estimate & Actual Spending 2010-2011
 Increase in the cost of raw materials/prime consumables.
 Download revision in the power-tariff by state.
 Saving on account of deferment of Leave Concession for employees by the
Government.
TABLE NO. 2
2011-2012
(Rupees in
Lakhs)
1. Salaries and 6274 6087.90 186.10 2.96

Other
Establishment
Charges
2. Travel 100 61.26 38.74 38.74
Expenses(Foreign
Trips)
3. Supplies and 19515 16744.60 2770.4 14.19
Materials
4. Minor works 2481 2057.72 423.28 17.06
5. Interest and 16000 16000 - -
Depreciation
6. Motor Vehicle 90 109.20 -19.2 -21.33
7. Expenses 427 441.34 -14.34 -3.35
8. Administrative 45 23.17 21.83 48.51
Expenses
9. Rent, Rates 30 12.57 17.43 58.10
And Taxes
10. Others 1148 956.86 191.14 16.64
Totals 46,110 42,494.62 3615.38 7.84
REVENUE EXPENDITURE BUDGET FOR YEAR 2011 -2012
50000
40000
30000 Budget Estimates 6274
100 19515 2481 16000
20000
Actual 6087.9 61.26
10000 16744.6 2057.72 16000
0 Variation (Amount) 186.1
Others
Motor Vehicle
Expenses
Expenses
Depreciation
And Taxes
Administrative
Totals
Rent, Rates
38.74 2770.4 423.28 -

-10000
Variation (Percentage)
2.96 38.74 14.19 17.06 -
6 7 8 9 10
Reasons for Variations between Budget Estimate & Actual Expenditure 2011-
2012
 Non-revisions of the rate of prime raw materials which was anticipated and
also short supply of the same by the supplier.
 Partial withdrawal of increased power tariff by the State Government Non-
filling of vacant and new posts as per policy of the Government
TABLE NO. 3
2012-2013
(Rupees in
Lakhs)
S.No. Item Economical Genuine Difference Difference
1. Wages and 6241 6686.20 -445.2 -7.13

Other
Formation
Duties
2. Travel 120 72.88 47.12 39.26
Expenses(Foreign
Trips)
3. Supplies and 21162 20844.36 317.64 1.50
Materials
4. Minor works 2234 1889.79 344.21 15.40
5. Interest and 28200 28200 - -
Depreciation
6. Motor Vehicle 135 51.96 83.04 61.50
7. Expenses 500 470.98 29.02 5.80
8. Administrative 30 29.69 0.31 1.03
Expenses
9. Rent, Rates 17 25.57 -8.57 -50.4
And Taxes
10. Others 732 652.34 79.66 10.88
Totals 59,371 58,923.77 447.23 0.75
70000
60000 Economical Estimates
50000 6241 120 21162 2234
40000 28200
30000 Genuine 6686.2 72.88
20000 20844.36 1889.79
10000 28200
0 Difference (Amount) -
Motor Vehicle
Others
Expenses
Expenses
Administrative
Depreciation
And Taxes
Totals
-10000 Rent, Rates 445.2 47.12 317.64
344.21 -
Difference
(Percentage) -7.13
39.26 1.5 15.4 -
6 7 8 9 10
Reasons for Variations between Budget Estimate & Actual Expenditure 2012-
2013
 Excess under salaries due to payment of updating allowance.

 Saving under the head minor works due to less rates claimed by M/s.
APGPCL.
 Saving under supplies and materials for postponement of procurement of
certain materials.
TABLE NO. 6
2015- 2016
(Rupees in Lakhs)
1. Salaries and 6650 6743.42 -93.42 -1.40

Other
Establishment
Charges
2. Travel 78 75.83 2.17 2.78
Expenses(Foreign
Trips)
3. Supplies and 27052 30947 -3895 -14.39
Materials
4. Minor works 2102 2373.98 -271.98 -12.93
5. Interest and 7300 5500 1800 24.65
Depreciation
6. Motor Vehicle 103 52.47 50.53 49.05
7. Office Expenses 475 503.69 -28.69 -6.04
8. Administrative 35 36.53 -1.53 -4.37
Expenses
9. Rent, Rates 35 38.5 -3.5 -4.37
And Taxes
10. Others 1507 1544..82 -37.82 -2.50
Totals 45,337 47,816.24 -2,479.24 -5.46
50000 Salaries and Other

Establishment Charges
45000 Travel Expenses(Foreign Trips)
Supplies and Materials

40000
Minor works
35000
Interest and Depreciation
30000
Motor Vehicle
25000
Office Expenses
20000
Administrative Expenses
15000
Rent, Rates And Taxes
10000
Others
5000
Totals
0
Budget Actual
Estimates
Reasons for Variations between Budget Estimate & Actual Expenditure (2015-
2016)
 Increase in salaries on Account of liberated LTC provision
 Increase in Office Expenses on Account of increases Transport and issue of
Uniform for Ministerial Staff
 Increase in Rent, Rates & Taxes as per demand for property Tax.
TABLE NO. 7
2016 - 2017
(Rupees in Lakhs)
1. Salaries and 7150 7032.21 117.79 1.64

Other
Establishment
Charges
2. Travel 70 74.40 -4.4 -6.28
Expenses(Foreign
Trips)
3. Supplies and 26872 37477.15 -10605.15 -39.46
Materials
4. Minor works 2600 2191.55 408.45 15.70
5. Interest and 2000 2000 0 0
Depreciation
6. Motor Vehicle 150 66.17 83.83 55.88
7. Office Expenses 35 36.53 -1.53 -4.37
8. Administrative 35 36.53 -1.53 -4.37
Expenses
9. Rent, Rates 35 28.60 6.4 18.28
And Taxes
10. Others 39 33.31 5.69 14.58
Totals 39,489 49,495.88 -10,006.88 -25.34
50000 Salaries and Other

Establishment Charges
45000 Travel Expenses(Foreign Trips)
40000 Supplies and Materials
35000 Minor works
30000 Interest and Depreciation
25000 Motor Vehicle
Office Expenses
20000
15000
Rent, Rates And Taxes
10000
Others
5000
Totals
0
Budget Actual
Estimates
Reasons for Variation between Budget Estimate & Actual Expenditure (2016-
2017)
 Saving under the Head Salaries due to shifting of provision of shifting of

provision to new cities head.
 Increase under supplies and materials due to upwards revision of manuals.
 Saving under the head of motor vehicles due to postponement of replacement
of same vehicles for the next year.
Salaries
Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Variation amount 312.02 186.1 -445.2 548.87 116.18 -93.42 111.79
Variation
Percentage 5 2.96 -7.13 8.8 -1.9 -1.4 1.64
Interpretation
The variations that need to be commented are those falling in a range above +(or) 5
percentage The years in which such variations occurred are 2010-11 where the
variation is +5 percentage on account of liberated LTC provisions and it has increased
to 8.8% in 2013-14.
Travel expenses
Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Variation amount 41.65 38.74 47.12 42.47 48.9 2.17 -4.4
Variation
Percentage 41.6 38.74 39.26 36.61 58.91 2.78 -6.28
Interpretation
The travel expenses had over short the budget consistently five out of seven years
under study. The range was 36 percent to 59 percent which indicated lack of control
and absence of economy measures. The company realized these facts in 2010-2011
and put in place a package of economy measures which raised the bar for out of
budget expenditure. The measures have worked well and as a result the variance of
travel expenses over and above budget was controlled almost in 2012-2013 and more
than expected 2014-2015. The control was so effective that a negative variance have
set in year 2016-2017of the order of -6.28
Supplies and materials
Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Variation 82.39 2770.4 317.64 -3374.56 2851.21 1853 0605.2
Amount
Variation 4.44 14.19 1.5 -15.28 10.05 2863 4439.46
Percentage
Interpretation
It signifies that the trend of increase in the negative variation in last 2 years is on
account of postponement of procurement of materials in the year 2010-2011, 2011-
2012, 2012- 2013 which is not a healthy sign. Under procurements of materials points
out to delay in implementation of projects and impartial negative effects on
profitability which needs to be probed into in detail.
Minor works
Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Variation
Amount 61.49 423.28 344.21 727.69 -62.44 -271.98 408.45
Variation
Percentage 3.09 17.06 15.4 31.8 -3.06 -12.93 15.7
Interpretation
The acceptable range is + (or) - 5%. In general the variation was with in the rage only
in 2 out of 7 years. In 4 out of 7 years it was positive variation of 15% to 31% which
is indicative of the fact that the budgetary process was not being diligently adhered to
in the case of budgets for minor works. There is thus a need to fine-tune budgetary
process implementation in this category.
Interest and Depreciation

Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Variation amount 0 0 0 -2350 954 1800 0
Variation
Percentage 0 0 0 -31.33 9.68 24.65 0
Interpretation
Acceptable range is + (or) - 10%. The variation beyond the above range is observed in
case of 2010-2011 and 2013-2014. The reason was on account of general and rapid
reduction in rates of interest charged by banks
Motor vehicle
Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Variation
Amount 43.36 -19.2 83.04 78.24 71.08 50.53 83.83
Variation
Percentage 36.13 -21.33 61.5 62.59 56.86 49.05 55.88
Interpretation
The acceptable range is + (or) – 25%., As the age of vehicles stock is more, allowing
for increased expenditure in repairs and maintenance on account of age of vehicle
stock it was found that the expenditure under the head was “uncontrollable”. With the
range of over expenditure being from 36% to 63%. There is and urgent need to
formulate and implement a cost reduction program.
Office Expenses
Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Variation
Amount 11.96 -14.34 29.02 81.65 60.1 -28.69 -1.53
Variation
Percentage 2.88 -3.35 5.8 16.13 11.87 -6.04 -4.37
Interpretation
The acceptable range is + (or)-5%. The variation above the range was found to be
sizable in the case of 2010-2011 and 2011-2012 due to issue of uniform to ministerial
staff and increase transport
Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Variation
Amount 23.65 21.83 0.31 1.42 -0.31 -1.53 -1.53
Variation
Percentage 51.64 48.51 1.03 4.05 -0.88 -4.37 -4.37
Interpretation
The acceptable range is + (or)-5%. It was observed that the budget for administrative
expenses was periodically increased to accommodate the positive variation in
previous year during period 2010-2011. Thus the budget peaked in year 2011-2012,
while the variation is high in 2010-2011 and 2011-2012.
Rent, Rates and Taxes
Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Variation
Amount -3.03 17.43 -8.57 -8.8 -0.2 -3.5 6.4
Variation
Percentage -12.12 58.1 -50.41 -48.88 -0.76 -10 18.28
Interpretation:
The acceptable range is + (or) - 20%. The abnormal years were observed to be 2010-
2017 which a positive variation of 58% in 2011-2012 to negative variation of around
50% in 2010-2011 and 2012-2013. This is and account of changes in government /
taxes / municipal polices and changes in valuations during the relevant years.
Others
Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Variation
Amount 156.45 191.14 79.66 -14.07 -49.27 -37.82 5.69
Variation
Percentage 15.47 16.64 10.88 -1.09 -3.83 -2.5 14.58
Interpretation:
The acceptable range is + (or) - 20% as the item indicates miscellaneous of

expenditure the variance is found to be with in the acceptable range.
FINDINGS
Suggestions must be taken from all bureaus of the association for legitimate
arranging and control of spending plans.
There is an earnest need to figure and actualize cost lessening program.
It is essential to have spending manual so every one in visaka can allude to it
for direction and data about the budgetary procedure.
The changes emerging out of each factor ought to be effectively isolated, and
answered to the administration.
There is under obtainment of materials with outcomes for benefit, which
should be demonstrated into in detail.
Uncontrollable differences are outside the ability to control of the association.
Controllable differences ought to be accounted for quickly, with the goal that
obligation can be settled and move made against the people dependable.
Budgetary process has been successful if there should be an occurrence of
movement costs and in viable in the event of engine vehicle repairs and upkeep and
minor works.
Budget process has functioned admirably in controlling travel costs
Recommendations
In conclusion, I wish to outline the financial plan and budgetary control
process and how every trough can draw out of the budgetary arranging and control
framework solid target to enhance the working execution and benefit of the business.
This is a few times called Management by destinations, yet it is additionally,
undeniably, overseeing for handy outcome. A decent arrangement of Budgeting is
two-sided issue that gives.
A formal arranging process prompting a general objective to departmental
destinations inside objective.
Control reports and methods that driving administration to guarantee that such
destinations end up achieved comes about.
At the starting, it is stressed that planning is just and augmentation of the
fundamental administration procedure of arranging, execution and control.
Additionally pushed was the significance of wide investment on a grass root premise
of all levels of administration in budgetary arranging and control process.
It ought to be apparent that the impact of this is to augment the capacities of
all levels of administration to do their essential administration capacities.

Its is likewise clear that great planning is more than budgetary exercise and
that, in reality the part of the spending executive and of bookkeeping staff is to a great
extent one of the part of the Budget chief and of bookkeeping individual is to a great
extent one of authoritative and facilitate direction, joined with the fairly routine
activity of making an interpretation of working designs comes about into the dialect
of the dollar.
CONCLUSION
VISAKA INDUSTRIES LIMITED.has been accomplishing most elevated
generation year throughout the year by saving the comparing use and achieved no
exclusive independence yet in addition been steady to the atomic power Plants spread
all finished India.
With the assistance of legitimate budgetary arranging and control framework,
visaka has possessed the capacity to enhance working execution and gainfulness of
the Organization.
The budgetary framework in visaka has been speedy and very much arranged
one, which could be embedded in other such government association.
The association have taken after powerful spending framework and control for
keeping up the consumption inside the showed up Budget and it likewise kept the
profile high and accomplishing the focused on creation inside the showed up Budget
and it additionally kept the profile high and accomplishing the focused on generation
by least use which use which is apparent shape the most recent seven years Revenue
Expenditure Budget.
Form the varieties between Budget Estimates and Actual Expenditure of most
recent five years it might be seen that the level of variety is getting to be peripheral
from year to year which reflects enhanced arrangement of Budgeting and additionally
control of Expenditure.
BIBLIOGRAPHY
1. Advance Cost Accountancy, S.P. Jain and K.L. Narang, Kalyani
Publishers.
2. Advance Cost Accountancy, Lall Nigam, G.L. Sharma, Himalaya
Publishers.
3. Management Accountancy, M.Y. Khan and P.K.Jain, Tata Mc. Graw
Hill Ltd.,
4. Cost and Management Accountancy, S.N. Maheswari, S. Chand
Publishers.
5. Websites:
Google Search Engine
www.visaka .com

Budget and Budetory Control at Visaka

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Budget and Budetory Control at Visaka

Transféré par

Droits d'auteur :

Formats disponibles

CHAPTER – 1

SALESi PURCHASEiMA PRODUCTIONi PERSONALiMA CHIEFiMANAG

SalesiBudget PurchaseiBud ProductioniB LaboriCostiB CostiBudget

INDUSTRY AND COMPANY PROFILE

Fiber concrete is a composite building and development material, utilized

Substance • Material portrayal • Material history • Material use • References Material

with water and form into a material hard as stone.

fiber concrete makes it conceivable to create solid and durable development

materials.[1] Today fiber bond is considered as a material physically suited for

development items, for example, cladding and material.

level sheet grouped, by licensed research facilities, as Category An as indicated by BS

dampness and serious ice.

While the most ideal Reaction to Fire Classifications are A1 (development

applications) and A1Fl (flooring applications) individually, both of which signify

"non-flammable" as indicated by EN 13501-1: 2007, as grouped by an informed

Classification of A2 (constrained instability) or even lower arrangements, in the event

that they are tried by any stretch of the imagination.

as siding in house structures because of its ease, imperviousness to fire, water

snugness, light weight, and other helpful properties.

In the 1970s it turned out to be broadly recognized that introduction to asbestos is

unsafe to wellbeing, being specifically identified with various dangerous ailments

including, asbestosis, pleural mesothelioma (lung) and peritoneal mesothelioma

the last materials accessible to have contained vast amounts of asbestos.

materials or applications, for example, warm protection or rushing, in which free

asbestos filaments were utilized.

Notwithstanding, asbestos strands are definitely discharged amid machining of the

inorganic fiber or formaldehyde.

Material utilization Fiber bond is a principle segment of dependable building

underneath gives some regular applications. Interior cladding: • Wet room

confronting • Flat sheets for e.g.

sheets Fiber-bond items have discovered a wide utilization in different parts of

development: mechanical, agrarian, local and private structures, essentially in material

and cladding applications, for new developments and repair ventures.

Reviews • Overview—fundamental articles of different points • Outlines—subject

rundowns, as takes after: 1. Ease of revelation—diagrams indicate which points have

a place with a subject and why 2. Subject structure—diagrams demonstrate point

disciplines—subjects examined in school or college • Classification frameworks

giving a layout or outline of learning: o List of Dewey Decimal classes—top two

levels of this library grouping framework, connected to Wikipedia articles o Library

of Congress Classification—LCC subjects connected to Wikipedia articles o Outline

a large number of branches, following Roget's framework Thing records • Lists—List

including by nationality and by occupation Timetables • Timelines—list articles

sequentially. o List of hundreds of years o List of decades o List of authentic

occasions on January 1 of any year o 2015—real occasions this year o Portal:Current

occasions—highlighted current occasions and related venture exercises o Deaths in

plants (gear) Exclusively intended to meet your prerequisites. Wehrhahn supplies

straightforwardly presented to unforgiving climate conditions.

inside application. • CC = Cellulose Cement Sheets CC sheets are produced from

PVA or PAN are utilized as fiber fortification.

utilized as fiber fortification. Compacted sheets CC and CCA sheets can be

and quality. The sheet opposition towards solidify/defrost conditions is improved.

width Medium 8 - 10 4 - 6 single width Huge up to 20 5 double width WEHRHAHN

driving in autoclave innovation WEHRHAHN is the worldwide pioneer with better

innovation than make machines for the generation of autoclaved calcium-silicate

boards, protection sheets, and so on.

and programmed condensate release are similarly imperative parts of Wehrhahn's

know-how. Organization PROFILE BRIEF HISTORY OF THE COMPANY: The

name of the organization was changed to Visaka Industries Limited.

organization was together advanced by APIDC and Dr. G.Vivekananda to

Manufacture Fiber Building Products. Dr. G.Vivekananda is an original business

visionary. APIDC has since stripped its whole stake.

R.C.Puram Mandal, Medak District, close Hyderabad (Andhra Pradesh) and at

Manickanatham Village, Paramati, Velur Tale, Namkal District, Tamilnadu.The