Documente Academic
Documente Profesional
Documente Cultură
SL NO
PARTICULAR
PAGE NO
Executive Summary
Introduction
Industrial Profile
Company Profile
Organization Profile
38-50
51-61
Findings
62
10
Suggestion
63
11
Conclusion
64
12
Bibliography
65
13
Annexure
66
EXECUTIVE SUMMARY
RANNA SUGARS. Is the co-operative company. The project has been undertaken on the
topic A STUDY ON BUDGETARY CONTROL at RANNA SUGARS As budgetary control
helps to understand goal of the concern whether it may be short or long term goal.
As the budget is playing an important role in any organization which helps to compare the
actual performance with the budgeted performance .The concept of the Budget and way of
adaptability, which creates new challenges to industrial sector for surviving in this current
competitive edge. It indicates the progress of the concern by way of its sales or profit, market
shares, process of the concern etc.
METHODOLOGY:
PRIMARY SOURCE:
The information of the budgetary control where obtained from.
Departmental heads.
Discussion with manager of costing.
Budgetary control statement.
SECONDARY SOURCE
This type means secondary datas are collected from
Office records.
Files & manual.
Annual Reports.
INTRODUCTION:
Budgetary control is the important aspect for industry development because budgets
provide yard stick against which the actual performance is measured. It always helps to the top
management to take the appropriate decision to motivate and directing their personnel towards
well set plans and policies of the company.
By considering the advantage of the budgetary control the Ranna Sugars also adapted
this system. In Ranna Sugars they were maintaining the monthly budget with the help of daily
reports. The daily reports must contain the item like production efficiency, sugar cane
utilization, man power requirement, consumption of electricity, wages etc. With this the
budgetary control manager prepares a monthly profitability statement of a particular month &
submitted that one of the appropriate authority like production manager. By this statement or
submitted report, they will take correct decision about the organizational activities.
A study has been conducted on the BUDGETARY CONTROL which is most
probably adopted in the Ranna Sugars organization.
Budgetary control i.e. a most powerful tool to the management for performing its function
i.e. formulating plans, coordinating activities and controlling operations etc, effectively as well
as effectively.
Now a day, the number of companies are compete with each other for the survival in the
present market. Whether it may be other sugars industries .but no one company can comete
without proper planning. So the Cost-Budgetary control may help them to make proper decision
in the number of various fields.
Budgetary control is applied to a system of management & accounting control by which
all operations & output are forecasted as for ahead as possible. And actual results are known
that are compared without budget estimates.
The budgetary system integrates key managerial functions as it links top managements
planning function with the control function performed at all the levels in the managerial
hierarchy. A more accurate budget can be developed for those activates where direct
relationship exists between inputs & outputs. These input, output are base for developing
budgets & exercising control.
INDUSTRIAL PROFILE
65 % of total production
Product Profile:
The main & direct product of the sugarcane is a sugar. The factory has by-products like
distillery, arrack, co-generation & ethanol etc.
SUGARCANE
MAIN PRODUCTION
Sugar
BY PRODUCT
distillery
arrack
compost
S1
power by Co-generation
ethanol
L=large
M=medium
S1=small S2=small2
COMPANY PROFILE:
LOCATION
ESTABLISHED IN
25/11/1999
REGESTERED NO
DSK/REG/182-83
WEEKLY HOLIDAY
SUNDAY
WORKING SHIFT
4 am to 12 pm, 12 pm to 8 pm, 8 pm to 4 am
CHAIRMAN
R.S.Talewad
VOICE CHAIRMEN
M.D
S.S.Pujari
FINANCIAL INSTITUTION :
OF THE COMPANY
, Bangalore
BANKERS OF THE
IDBI Bangalore
COMPANY
ARAE OF OPERATION
(NATIONALLY)
Bihar
(LOCALLY)
AWARD
PARTHA SARATHI
COMPRTATORS
Nirani sugars
Prabhulingeshwar sugar Pvt
WORKERS
947
NO OF SHAREHOLDER
10822
PRODUCT
Sugar
BY PRODUCT
Molasses
Bagasse
ORGANISATIONAL PROFILE
Chairman
Shri. R.S.Talewad
Voice chairman
Managing Director
Shri, S.S.Pujari
Board of Directors
Head of Department:
Finance
Administration
Cane section
Production
Shri, S.K.Kulkarni.
4,07,989 MT
Sugar produced
5,10,015 Qtls
SAHAKARI
SAKKRE
Recovery
12.50%
Molasses produced
17,360 NT
KARKHANE
(R.S.S.K.N)
scale
Agro-
industry.
RAYATAR
It
NYIYAMIT
is
large
based
sugar
covers under
Co-operative sector.
This factory was registered on 29th July 1982 itself and government has given licensee for
2,500 TCD (Tone Capacity per day). In the same year government has given registration number is
DSK/REG/182-83 dated: 27/07/1982. From that onwards it started issuing the shares to the public
this issuing of shares comes to end in the year 1997. During these periods they purchased 200
acres of land at Timmapur (Mudhol Taluka) village at a cost of Rs.24 lakh. The 1 st trial crushing
was taken in the month of May from 19/05/1999 to 10/06/1999. The performance of the factory in
this period is as under.
123.28MT
407989Qtls.
Recovery
12.50
The 1st regular season starts in the yar of 1999-2000, from 25th NOV 1999 to 28th
June 2000 (217 days). The progress achieved during this season is as follows:
The estimated project cost of R.S.S.K.N Sugar factory was Rs.47.250res as prepared by the
Karnataka State Co-operative sugar Factories , Bangalore. And this report has been appraised by
the IFCI, New Delhi.
10%
Member shares
Rs.4,725 corers
30%
60%
Government
Term loan from
Financial Institutions
Total
Rs.14,175 corers
Rs.28,350 crores
47,250 crores
Investment
Member shares
10%
Financial
Institutions
60%
Government
30%
Vision
Mission
To employee support and farmers development for the fullest extent.
Improving our operation activities.
Quality policy:
The quality policy is to meet & exceed customer satisfaction by
Adopting better quality management system practices
Setting suitable objectives & targeted of reviewing them periodically for continually improving
the effectiveness of the quality management system
ORGANISATIONAL STRUCTURE
BOARD OF DIRECTORS
MANAGING DIRECTOR
ADMINISTRATION
PURCHASE
SALES
ENGINEERING
AGRICULTRAL
ACCOUNTS
ELECTRICAL
MANUFACTURING
INFROSTRUCTURE
CO-GENERATION
1] ADMINISTRATIVE DEPARTMENT:
Administrative department is classified into five sections share, sales, purchases, store, time
office and security.
A) SHARE SECTION:
The share section is one of the important section because more than half of the share capital
is collected from the share holders.
Leave clerks
Attendee
Attendee peon
Shift
Starting time
Closing time
1st Shift
4am
12pm
2nd Shift
12pm
8pm
3rd Shift
8pm
4am
One general shift 8.30am to 5.30pm for both season and off season.
Types of Leaves:
1. Sick leaves:
Sick leave provided to employees 15 days Per year
2. Casual leaves:
Casual leave provided to employees 12 days Per year
3. Earn leaves:
If employee attends 30 days in a month then he is eligible for 3 days Earn leave
Structure
SECURITY OFFICER
ASSISTANT SECURITY
ZAMADA
R
LEAVE CLERK
GATE CLERK
SECURITY OFFICER
ASSISTANT SECURITY
ZAMADA
R
LEAVE CLERK
GATE CLERK
F) COMPUTER SECTION:
The total number of employees working in this department is 4. This section is to maintain
all types of records that are very important for the organization and the following departments are
computerized in the factory,
Weight bridge department
a) Cane accounts department
b) Time office department
c) Laboratory department
d) Stores department
e) Sales department
f) Purchase department
g) General accounts department
h) Sales accounts section
STRUCTURE:
COMPUTER OPERATOR
PEON
Function
1) Designing of the packages required.
2) Programming of the LAN.
3) Maintaining of server.
PURCHASE SECTION:
This section gives identity card only. This section is also send notice to the concerned
members on behalf of the factory. They maintain two types of books of accounts viz.
It is also a important section in administrative department in performing the activities of
purchasing. In this section there are two employees, one is purchase manager and another one is
purchase assistant. The purchase manager issues the purchase order from various section of the
factory. He estimates the cost purchase and accordingly he go for direct purchases or purchases
through purchase committee.
FUNCTIONS:
Purchasing materials
Calling quotation
STRUCTURE
PURCHASE OFFICER
CLARKS
ATTAINDERS
3] SALES SECTION
This section will take care of all the sales transactions like sale of
Sugar,
Molasses,
Bagasse.
Scrap material.
STRUCTURE:
SALES OFFICER
SENIOR ASSISTANT
JUNIOR ASSISTANT
ATTAINDER
In the sugar industry sugar is sold according to central govt. guidance & release.
Marketing & advertising is not necessary in sugar industry. Any how customer
relationship is necessary to convert the stock into cash.
Function
1) Getting order from parties.
2) Arranging for delivery to parties.
3) Maintaining record of sales.
4) Sending report to managing director
5) Stocking planning godown maintainance
Sales of the sugar are done in two ways
a) free sales
b) levy sales
a) Free sales:
Government allows the sugar factory to sale certain percentage of sugar by calling
tender is known as free sales.
b) Levy sales:
This means to sell the product to the govt. i.e. to sell the product under the guidance of
the govt
5) Account section
Finance is the lifeblood of business one cannot imagin a business without finance
department because it is the central point of all business activities. Finance dept. of RSSKN
factory plays a very important role, as it is here that decision with to procurement & utilization
of funds are taken. Such decision includes the preparation of various budgets, allocation of
funds for various activities or division of the firm as well as distribution of profits etc.
An account section is also including in the finance dept. it helps in achieving the
objectives of the company. Proper management of the fund is necessary for effective
management
Structure:
ACCOUNT OFFICER
CANE ACCOUNTANT
GENERAL ACCOUNTANT
CASHER
CANE MANAGER
CANE OFFICERS
FIELD ASSISTANT
CANE OFFICERS
FIELD ASSISTANT
To provide all facilities like seeds, fertilizers, unloading and loading charges
IN CANE DEVELOPMENT
YEAR
DATE
CANE
DAYS
SUGAR
RECOVERY
DEVELOPMENT PRODUCTION
1999 - 00
25/11/1999 TO 28/06/2000
217
407989 510015
12.50
2000 - 01
19/11/2000 TO 15/05/2001
178
352938 436300
11.91
2001 - 02
29/10/2001 TO 05/04/2002
159
354028 424670
11.41
2002 - 03
21/10/2002 TO 29/04/2003
191
503083 585700
11.47
2003 - 04
05/11/2003 TO 13/01/2004
69
115321 127000
10.68
2004 - 05
21/10/2004 TO 18/01/2005
90
105687 115850
10.88
2005 - 06
02/11/2005 TO 21/04/2006
170
351953 400151
11.39
2006 - 07
28/10/2006 TO 09/06/2007
225
520288 608549
11.60
2007 - 08
20/11/2007 TO 26/05/2008
189
379020 446699
11.65
2008 - 09
02/10/2008 TO 25/02/2009
145
238681 255400
10.60
6 )PRODUCTION DEPARTMENT:
To utilize the installed capacity of 3500 in proper manner the following personality the
duty to manage the Production department.
PRODUCTION DEPARTMENT
LABORATORY INCHARGE
LABORATORY CHEMIST
MANUFACTURING CHEMIST
LABORATORY BOYS
The production department is one of the core parts in every process based industry.
In addition, it plays a vital role in the organization for smooth going in every sugar industries;
Production department is divided in to two sections.
a)Engineering department
b)Manufacturing department
a) Engineering Department.
STRUCTURE:
CHIEF ENGINEER
MECHANICAL
SECTION
ELECTRICAL
SECTION
CANE
WEIGHMENT
BOILER SECTION
CANE
UNHOLDING
URANGMENTS
CANE
PREPARATION
MILLING
POWER
GENERATION
WORKSHOP
STORE SECTION
Mechanical section :
This includes all the mechanical process that is right from the cane weighment till milling
( obtaining of sugar juice ) for further processing. This section includes 4 main steps they are..
a. Cane weighment arrangements
b. Cane unloading arrangement
c. Cane preparation
d. Milling
Cane preparation:
After feeding the sugar cane on feeding tables with the help of levelers which avoid
overloading of sugar cane is sent to primary cutter, which cut the sugar canes in to small pieces,
further fine fibers are obtained from there process by passing them in the fibrizer.
Milling:
After fibrizering the cane passing the prepared fiber cane through a set of mills carries on
milling weighted hot water is also added in the course of crushing for better extraction of juice.
After crushing the juice is sent for further process
Power generation
Process chart of Co-generation
Water treatment
Make up water
Deareator tank
[Heating 1100 C]
Pumping
Stream drum
Turbine
Generator [electricity]
Stores Section
Various section spare parts are stored in stall system and all the units are computerized and
given a code number. Bin card and other system are followed hear. These stores materials are
normally required for preventive maintenance during seasons and off seasons for servicing and
overalling
Function
1) To make the material requisitions for the purpose of knowing the quantity material.
2) To make purchase order or in simple terms the tender.
3) To make approval memo for verification of materials.
4) The main function of store department is to prepare a bin card.
5) The store department issued material with reference with store requisition.
6) To make classification & codification of materials.
7) Receipt of material.
8) Inspect it with ordered quantity, quality & if any other specifications.
9) Some of the material like chemical is to be sent to laboratory for incepatation & testing.
10) Getting indents from departmental head & issuing it.
11) To make purchase return if the material are rejected.
12) To maintain minimum level of materials.
13) Infringing purchase department when material required
Structure
STORE KEEPER
CLARKS
TOOL ROOM
CLARK
DIESEL ROOM
CLARK
ATTAINDERS
TOOL ROOM
ATTAINDER
CLARKS
DAILY WAGE
LABOURS
ATTAINDERS
Store section is also important section in the administrative department. All types of
materials are kept in this section. Which are required for the factory smooth running. The section
works day and night. Shift is changing every 8 hours. This section is maintained by the stores
keeper. The main work of this section is providing the materials to the required departments.
Those stores section maintains some books like :
a. Transport.
b. Bin card.
c. Daily issued.
d. Monthly issued.
It is also one of the section under Administration department, there are total of 7 employees
working in this section.
STORES ACCOUNT:
After receiving the materials from suppliers quantity will be verified. The details of the
materials will be entered in to transport registered and approved memo will be sent to the
concerned departments for getting quality approval. They keep bin cards for each different items
receipt from the suppliers with details.
DIESEL BANK:
They issue diesel to the party against indents brought by the parties and issued is entered in
the daily issue register.
TOOL ROOM:
Tool room is personnel issue the materials to the workers on temporary loan and retainable
basis entering in the register.
Laboratory
Godown
LABORATORY:
Laboratory plays a significant role in sugar production. The Key activity of laboratory is
checking the content of sugar in the sugar cone and fixing the correct shape and size of sugar. The
la prepared hourly reports which advise on the addition of other chemicals in the production.
Structure
Chief chemist
Depute chief
Chemist
Manufacturing
Chemist
Lab in charge
Lab chemist
Function
1) It takes care of quality of sugar juice.
2) It mixes the chemical as per requirement.
3) It examines the sugar quantity.
Lab boy
Sample boy
Mill sanitation chemical to prevent generation of bacteria and increases the rate of
boiling.
Mesopropile alcohol.
SUGAR:
It means something sweet in form of taste.
FORMULA:
Carbon dioxide + Water = sucrose + oxygen
12CO2 +11H22O11+12O2
CANE
IMBITION WATER
MILLING
BAGASSE
RAW JUICE
EXHAUST STEAM
CONDENSATE WATER
SULPHURDIOXIDES + LIME
SULPHURED JUICE
CONDENSATE WATER
EXHAUST STEAM
CLEAR JUICE
EXHAUST STEAM
JUISE + MUD
VAPOURS
CONDENSATE WATER
SYRUP
SULPHURDIOXIDE GAS
MASSCUITE
FINAL MOLASSES
SUGAR
RAW JUICE: Before sending ra juice to process house it has to be weighted in order to
excise the chemical control and making material balance for efficient control of the
process.
JUCE HEATING: In this process the raw juce is heated and is converted to clear juce
the required temperature is 100c to 105c in the boiling house.
SULPHURED JUCE: In this process the raw juce is added with time and sulphur gas
and is mixes temperature 105c to 110c. and the sulphur juce received from in the from
milk will be coloured.
CLARIFICATION: In this process through the vacuum filters the mud particles and
the juce filtration takes places.
EVAPORATION: In the process the juce is boiled to make it solid. The solid from of
sugar is than again passed to sulphur tank.
CENTRIFUGATION: In this the mass masscult is cured I,e sugar crystals separated
from the liquor in high speed centrifugal machine of around 1200/RPM
GRADATION: Is the last process in the manufacturing of sugar. It collects the totally
mixed sugar from the centrifugal section through happen and sugar passes from it each
elector sugar is lifted to mixer part from the grader part the sugar is separated by grad
wise it has grades.
BAGGING: The sugar is packed in 100kg, 50kg,& 25kg bags with latest with a
technology of bagging with the mechanized stitching.
STORAGE: After it is sent to god own for storage through machines Factory has
totally 2 big Godowns with a capacity of 2.5 lakhs each.
GODOWN SECTION:
Godown section is also one of the important part of the factory. Where the finished sugar is stored.
This factory has 15 godowns; there are 2 big godowns its capacity 2 lakhs bags and other 13
godowns capacity 30000 bags.
STRUCTURE:
Godown Keeper
Clerks
Attender
{Early Maturity}
2.CO8011
{Middle Maturity}
3.CO86032
{Early Maturity}
4.CO8021
{Early Maturity}
5.CO94012
{Early Maturity}
Civil section
Structure
CIVIL ENGINEER
ASSISTANT
ENGINEER
OFFICIAL
NON OFFICIAL
HEAD CLARK
WORKER
WORKER
INFRASTRUCTURE SECTION
The infrastructure is one of the co-operative sectors in sugar production, which is
located in rannaagar, at timmapur village and is 16KM away from Mudhol. It is located
near the bank of Ghtaprabha River, so the factory has obtained the premises for lifting
Water from this river for factory use.
THE INFRASTRUCTURE FACILITIES PROVIDED TO THE EMPLOYEES IN THE
FACTORY LIKE:
Medical facility
Housing facility
Safety measures
Contingencies
1) Planning:
A budget is a plan of the policy to be pursed during the defined period of timed to attain
a given objectives. The budgetary control will force management at all levels to plan in time all
the activities to be done during the future periods.
A budgeted as a plan of action achieves the following purposes.
Action is guided by well thought out plan because a budget is prepared after a careful study
and research.
The budget serves as a mechanism through which managements objectives and polices are
affected.
It is bridge through which communication is established.
The most profitable course of plan is selected.
Budget is a complete formulation of the policy of the undertaking to be pursed for the
purpose of attaining a given objectives.
2). Co-Ordination:
The common objectives of the firm may be successfully achieved by the way of budgetary
control because it stimulates the co-operation of all concerns with the co-ordinates the various
activities.
3) Communication:
It is necessary in an efficient organization that all people be informed about the objectives,
polices, programmers and performance. This is made possible through their Participant in the
budgeting process. Budgets inform each manager of what others have agreed to do. They also
inform managers of the resources available objects and targets.
Thus the budgeting system integrates key managerial functions as it links top managements
planning function with the function performed at all the levels in the managerial hierarchy. But the
efficiency of the budget as a planning and control device depends upon the activity in which it is
being used. A more accurate budget can be develop for those activities where direct relationship
between inputs and outputs. The basis for developing budgets and exercising control.
CONCEPT OF BUDGETING:
ESSENTIALS OF BUDGET:
It is prepared in advance based on a future plan of action.
It relates to a future period and based on objective to be attained.
It is a statement expressed in monetary and for physical units prepared for the
implementation of policy formulated by the management.
ADVANTAGES OF BUDGETING:
Budgeting plays an important role in the effective use of resources and achieving overall
organizational goals.
Budgeting compels and motivates management to make an early and timely study of its
problem.
budgeting provides a valuable means of controlling income and expenditure of a business
as it is a plan for spreading
Budgeting provides a too through which managerial polices and goals are periodically
evaluated, tested and established as a guidelines for the entire organization.
Budgeting help in directing capital and others resources into the most profitable channels.
Budgeting coordinates and correlates all business activates.
The use of budgeting in an organization develops an attitude of Cost Consciousness,
stimulates the effective use of resources, and creates an environment of profit-mindedness
throughout the organization.
The uppermost point is that budgets provide a discipline that brings planning
fore front as a key managerial responsibility.
Budgeting encourage productive competition.
to the
CLASSIFICATION OF BUDGETS:
A. According to time:
Long term budgets: A budget is designed for a period of 5 to 10yrs.
Short term budgets: A budget is a generally prepared for a period of Not exceeding 5
years
Current Budgets: The budgeted is prepared for a month or a quarter.
B. According to flexibility
Fixed budget: A budget prepared on the basis of fixed or a standard level of activity. It
does not change with respect to level of activity.
Flexible budget: A budget is prepared depend upon the level of the
Activity.
Forecasting sales:
The three main factors that should be considered by management in forecasting sales.
1) Information concerning past performance.
2) Information about present condition with in the individual company & in each sales territory.
3) Data concerning the industry & generally business.
2) Production budget:
A production budget is stated in physical units. Essentially the production budget is the
sales budget adjusted for inventory changes as follows.
Units produced= Budgeted Sales+ (Desired Closing Inventory of Finished Goods-Beginning
Inventory of Finished Goods.)
2.
i.
Inventory budget:
An inventory budget can be prepared to find out the values of direct materials & finished
goods inventory.
manufacturing business activates. The administrative expenses budgets contains expenses like
directors remunerations, legal charges, audit fees, salaries, rent office expenses, interest, property
tax, put etc.
C. BUDGET MANUAL:
The budget manual is a written document, which specifies the objective of the budgeting
organization & procedures.
F. BUDGETED PROCEDURE:
The procedure followed while designing and operating a budgetary control system depends
upon the nature of the business.
THE PROCEDURE AS FOLLOWS:
2. Making of forecasts:
Forecast is nothing but estimation of probabilities for a given period. Forecasts are made
regarding sales, production cost and financial requirements of the business.
4. Preparation of budgets:
After finalization of forecasts the budgets will be prepared.
Tips:
1. Don't try to fit your expenses into somebody else's budget categories. Tailor the categories
to fit your own situation.
2. Make your categories detailed enough to provide useful information, but not so detailed
that you become bogged down in trivial details.
3. Think of your budget as a tool to help you get out of debt and save money, not as a
financial diet.
LIMITATIONS:
Considering the scope mentioned above, some or few limitations are arising i.e. the Rona
Sugars is big organization. This finance & accounts is also big departments. But due to shortage of
training period, I am concentrating only on the budgetary control of costing departments.
Time constraints.
Only Three years data is used for the analysis of the study
DATA ANALYSIS
AND
INTERPETATION
RECEIPTS
2006Sl.No
Particular
Sugar Sales
Sale of By
2
3
4
Products
Dividend
Interest on Loans
2007
Actual
At Rs. In
Income
2007-2008
At Rs. In
Lakhs
2008Actual
2009
Actual
Income
At Rs. In
Income
Lakhs
9487.50
1985.40
7187.50
7189.50
Lakhs
6440.00
1593.86
1053.50
57.37
1046.36
679.13
909.36
2672.92
7.55
14.40
7550.46
1285.63
7.55
2.00
360.50
1003.17
3.60
3.02
1371.05
5619.10
Sl.No
Particulars
Sugarcane purchased
Reconstruction expenses
Vehicles management
Interest on loan
2006-07
Actual exp's
At Rs. In Lakhs
At Rs.in Lakhs
2007-08
At Rs. In
7250.00
6162.81
Lakhs
5230.00
2.00
79.28
3.00
Actual
2008-09
Actual
Exp's At
At Rs. In
Exp's At Rs.
Rs.in Lakhs
5230.00
Lakhs
4400.00
In Lakhs
5616.18
3.00
3.00
15.13
8.00
114275.50
8.00
80.00
12.00
108,00
1800.00
756040.98
1800.00
18000.00
1600.00
8268.57
Salary to staff
264.00
48219.82
264.00
18000.00
338.00
70.49
Auditors fees
2.00
1874.94
2.50
2.50
3.00
2.79
8.00
18723.36
20.00
200.00
20.00
15.98
Insurance
Repairs and maintenance of
10.00
51.71
10.00
100.00
10.00
0.17
200.00
191679.06
300.00
3000.00
300.00
235.84
5.00
2655.46
4.00
40.00
3.00
2.95
4.00
2960.78
4.00
-------
1.50
0.74
9
10
machinery
Telegram and telephone charges
11
Bank commission
Sl.No
1
2
3
4
5
Particulars
Sugar Sales
Sale of By Products
Dividend
Interest on Loans
Loss
TOTAL
2005-2006
2006-2007
2007-2008
2008-2009
At Rs. In
At Rs. In
At Rs.in
At Rs. In
Lakhs
6160.00
877.21
10.00
3.00
1370.89
8421.10
Lakhs
9487.50
1053.50
7.55
1,44
1007.51
11557.50
Lakhs
7187.50
1046.36
7.55
2.00
------8243.41
Lakhs
6440.00
909.36
3.60
3.02
------7355.98
PAYMENTS
Sl.No
Particulars
1
2
3
4
5
6
7
8
Sugarcane purchased
Reconstruction expenses
Vehicles management
Interest on loan
Salary to staff
Auditors fees
Rent and taxes
Insurance
Repairs and maintenance of
9
10
11
12
13
machinery
Telegram and telephone charges
Bank commission
Other expenses
Net Profit carry forward to C/B
TOTAL
2005-2006
2006-2007
2007-2008
2008-2009
Amt Rs. In
Am Rs. In
Am Rs.IN
Amt Rs. in
Lakhs
4900.00
10.10
6.00
1400.00
250.00
3.00
6.00
10.00
Lakhs
7250.00
2.00
8.00
1800.00
264.00
2.00
8.00
10.00
Lakhs
5230.00
3.00
8.0
1800.00
264.00
2.50
20.00
10.00
Lakhs
4400.00
3.00
12.00
1600.00
338.00
3.0
20.00
10.00
4.00
1.75
1831.00
300.00
5.00
4.00
1904.00
8421.10
11557.50
300.00
4.00
4.00
442.50
155.41
8243.41
300.00
3.0
1.50
418.50
246.98
7355.98
A) 2006-07 Receipts.
Sl.No
Particulars
2005-2006
2006-2007
At Rs. In
At Rs. in
Lakhs
Lakhs
Increase
Decrease
In %
In%
Sugar Sales
6160.00
9487.50
54.00%
-------
Sale of By Products
877.21
1053.50
20.09%
-------
10.00
7.55
------
24.50%
3.00
1.44
------
52.00%
1370.89
1007.51
------
26.50%
8421.10
11575.10
37.45%
-------
Dividend
Interest On Loans
Loss
TOTAL
INTREPRETATION
Sugar sales increased by 54.00% in the year 2006-2007 compared to 2005-2006.
Sales of by product decreased by 20.09% in the year 2006-2007 compared to 2005-2006
Interest on loans decreased by 52.00% in the year 2007-2008 compared to 2006-2007
PAYMENTS:-2006-2007
Sl.No
1
2
3
4
5
6
7
8
9
10
11
12
13
Particulars
Sugarcane purchased
Reconstruction expenses
Vehicles management
Interest on loan
Salary to staff
Auditors fees
Rent and taxes
Insurance
Repairs and maintenance of machinery
Telegram and telephone charges
Bank commission
Other expenses
Net Profit carry forward to C/B
TOTAL
2005-2006
2006-2007
At Rs.in
At in
Lakhs
4900.00
10.10
6.00
1400.00
250.00
3.00
6.00
10.00
40.00
1.00
1831.00
------8421.10
Rs.Lakhs
7250.00
2.00
80.00
1800.00
264.00
2.00
8.00
10.00
300.00
5.00
4.00
1904.50
------11557.50
Increase
In %
47.95%
-----33.33%
28.57%
5.60%
-----33.00%
--------------350%
4.01%
----37.24%
Decrease
In %
-----80.20%
---------------33.33%
----------------87.50%
--------------------
INTREPRETATION
Sugarcane purchased increased by 47.95% in the year 2006-2007 compared to 2005-2006
Reconstruction expenses decreased by 80.20% in the year 2006-2007 compared to 20052006.
B)2007-2008 Receipts
Sl.No
Particulars
2006-2007
2007-2008
At in Rs. In
At Rs. In
Increase
Decrease
Lakhs
Lakhs
Sugar Sales
9487.50
7187.0
--------
24.24%
Sale of By Products
1053.50
1046.36
--------
0.68%
Dividend
7.55
7.55
--------
------
Interest On Loans
1.44
2.00
39.8%
------
Loss
1007.51
------
------
------
11557.50
8243.41
-------
28.67%
TOTAL
INTREPRETATION
Sugar sales decreased by 32% in the year 2007-2008 compared to 2006-2007
Sales of by product decreased by 0.68% in the year 2007-2008 compared to 2006-2007
Interest on loans increased by 28% in the year 2007-2008 compared to 2006-2007
PAYMENT:2007-2008
Sl.No
1
2
3
4
5
6
7
8
9
10
11
12
13
Particulars
Sugarcane purchased
Reconstruction expenses
Vehicles management
Interest on loan
Salary to staff
Auditors fees
Rent and taxes
Insurance
Repairs and maintenance of machinery
Telegram and telephone charges
Bank commission
Other expenses
Net Profit carry forward to C/B
TOTAL
2006-2007
2007-2008
At Rs. In
At Rs. In
Lakhs
7250.00
2.00
8.00
1800.00
264.00
2.00
8.00
10.00
300.00
5.00
4.00
1904.00
11557.50
Lakhs
5230.00
3.00
8.00
1800.00
264.00
2.50
20.00
10.00
300.00
4.00
4.00
442.50
155.41
8243.41
Increase
Decrease
%
27.87%
----------------------------------------20%
-----77%
-----29%
-----50%
----------------25%
60%
--------------------------------
INTREPRETATION
Sugar purchased decrease by 27.87% in the year 2007-2008 compared to 2006-2007
Reconstruction expenses increase by 50% in the year 2007-2008 compared to 2006-2007
Rent and taxes increased by 60% in the year 2007-2008 compared to 2006-200
C)2008-2009 Receipts
Sl.No
Particulars
Sugar Sales
2007-2008
2008-2009
At Rs. In
At Rs. In
Lakhs
Lakhs
7187.00
6440.00
Increase
Decrease
-----
10.40%
Sale of By Products
1046.36
909.36
------
13.10%
Dividend
7.55
3.60
------
52.32%
Interest On Loans
2.00
3.02
33.78%
-----
Loss
------
-----
------
10.77%
TOTAL
8243.41
735598000
INTREPRETATION
Sugar sales decreased by 10.40% in the year 2008-2009 compared to 2007-2008
Sales of by product decrease by 13.10% in the 2008-2009 compared to 2007-2008
Interest on loan increased by 33.78% in the 2008-2009 compared to 2007-2008
PAYMENTS:-2008-2009
Sl.No
1
2
3
4
Particulars
Sugarcane purchased
Reconstruction expenses
Vehicles management
Interest on loan
2007-2008
2008-2009
At Rs. In
At Rs. In
Lakhs
5230.00
3.00
8.00
1800.00
Lakhs
4400.00
3.00
12.00
1600.00
Increase
Decrease
In %
--------50%
------
16%
---------11.11%
5
6
7
8
Salary to staff
Auditors fees
Rent and taxes
Insurance
Repairs and maintenance of
9
10
11
12
13
machinery
Telegram and telephone charges
Bank commission
Other expenses
Net Profit carry forward to C/B
TOTAL
264.00
2.50
20.50
10.50
338.00
3.00
20.00
10.50
22%
17%
-----------
--------2.43%
-----
300.50
4.50
4.00
442.50
155.41
8243.41
300.00
3.00
1.50
418.50
246.98
7355.98
-------------------58.92%
------
0.16%
33.33%
63%
5.00%
---11%
INTREPRETATION
Vehicales management costs are increased by 50% in the year 2008-2009 compared
to 20007-2008
FINDINGS:
In Ranna Sugars both monthly operation plan and annual operation plan are prepared
ascertaining the budgeting performance with actual performance.
Sugarcane purchased increased by 47.95% in the year 2006-2007 compared to 2005 2006
Sugar purchased decrease by 27.87% in the year 2007-2008 compared to 2006- 2007
Vehicles management costs are increased by 50% in the year 2008-2009 compared to
20007-2008
SUGGESTIONS
Accurate position of the business cannot be estimated:
It arises due to inflationary pressure and change in Government policies all these
affect the budgeting performance.
Ranna Sugars can carry out some promotional activities, so as to increase its sales
and beat
the competition
CONCLUSION:
From the study it can be concluded that to know that budgetary control is treated as one of
the better techniques for minimizing cost and maximizing profit in Ranna Sugars. Budgetary
control technique Plays important role in the profit making or smooth running of the company
It co ordinates all the departments like Finance, Marketing, Production in the company. It
makes the decentralization of authority in the organization which helps organization goal with
in stipulated period of time. Budgetary control acts as safety for an organization because it helps
to identify business risk and necessary steps can be taken to avoid the risk.
Budgetary control techniques help to know how the available monetary resources can be
utilized effectively. This technique focus on efficiency in the allocation of resources in
particular time. As the finance department is the soul of any organization. Budgetary control
helps the organization by making finance department effectives
BIBOLOGRAPHY
Financial management by M.Y. Khan and P.K. Jain
Financial management by I.M. Pandey
ANNEXURE