Upload
nagireddy-kalluri
View
222
Download
0
Embed Size (px)
Citation preview
8/15/2019 1-intoduction 1-6.doc
1/56
CHAPTER-1
INTRODUCTION
8/15/2019 1-intoduction 1-6.doc
2/56
8/15/2019 1-intoduction 1-6.doc
3/56
minorsu-head wise estimates along with actual of the past three years .where necessary,
item-wise rea! up should also e furnished so as to highlight individual item-wise rea!
up should also e furnished so as to highlight individual items of significance. Any maor
variation in estimates with references to past actual or and udget estimates will e
supported y cogent reasons.
RULE 4.(1) E!PENDITURE ESTIMATES- he e*penditure estimates shall show
separately the sums reuired to meet the e*penditure charged on the consolidated fund
under article 112(3) of the constitution and sums reuired to meet other e*penditure for
which a vote of the o! 4aha is reuired under article 113(2) of the constitution.
RULE 4".(1) DEMAND FOR GRANTS-he estimates for e*penditure for which vote of
o! 4aha is reuired shall e in form of demand for grants.
RULE 4#.(1) FORM OF ANNUAL FINANCIAL STATEMENT AND DEMANDS
GRANTS - he form of the annual financial statement and demands for grants shall e laid
down y the finance ministry and no alternation of arrangement or classification shall e
made without the approval of that ministry.
RULE 4$.(1) ACCEPTANCE AND INCLUSION OF ESTIMATES-he estimates of
receipts and e*penditure of each ministry department will e scrutini5ed in the udget
division of the ministry of finance. 0inance secretary or secretary may hold meeting with
secretaries or financial advisers administrative ministries or departments to discus th%
totality of the reuirements of funds for various programmers and schemes, along with
receipts of the ministries or departments.
RULE 51. COMMUNICATION AND DISTRIBUTION OF GRANTS AND
APPROPRIATIONS- after the appropriation ill relating to udget is passed the ministry
of finance shall comminicate udget provision to the ministries department which, in turn,
shall distriute the same to their suordinate formations. he distriution so made shall also
e communicated to the respective pay and accounts officers who shall e*ercise chec!
against the allocation to each su- ordinate authority.
CONTROL OF E!PENDITURE AGAINST BUDGET&
RULE 52.(1) RESPONSIBILITY FOR CONTROL OF E!PENDITURE- departments
of the central government shall e responsile for the control of e*penditure against the
sanctioned grants and appropriations placed at their disposal. he control shall e e*ercised
8/15/2019 1-intoduction 1-6.doc
4/56
through the heads of departments and other controlling officers, if any, and disursing
officers suordinate to them.
RULE 5.(1) SURRENDER OF SA'ING- department of the central government shall
surrender to the finance ministry, y the dates prescried y that ministry efore the close
of the financial year, all the anticipated saving noticed in the grants or appropriation
controlled y them. he finance ministry shall communicate the acceptance of such
surrenders as are accepted y them to the accounts officers, efore the close of the year. he
funds provided during the financial year and not utili5ed efore the close of the financial
year shall stand lapsed at the close of the financial year.
RULE 5#.(1) ADDITIONAL ALLOTMENT FOR E!CESS E!PENDITURE –
a suordinate authority incurring the e*penditure will e responsile for seeing that the
allotment placed at its disposal is not e*ceeded. 6here any e*cess over the allotment is
apprehended, the suordinate authority should otain additional allotment incurring the
e*cess e*penditure. 0or this purposes, the authorities incurring e*penditures should
maintain a "liaility register in form &07 +.
RULE 0 SUPPLEMENTARY GRANTS- if saving are not availale within the grant to
which the payment is reuired to e deited or if the e*penditures is on 8new service9 or
8new instrument of service9 not provided in the udget, necessary supplementary grant or
appropriation in accordance with article 11:(1) of the constitution should e otained
efore payment is authori5ed.
RULE 2. INE'ITABLE PAYMENTS
(i) 4uect to the provision of articles 11/(3) of the constitution, money indisputaly
payale y governmental shall not ordinarily e left unpaid.
(ii). 4uitale provision for anticipated liailities should invarialy e made in demands for
grants to e placed efore parliament.
1. INTRODUCTION
A udget is a very commonly used term. t is a widely practiced techniue and most
of them use udgets in some way or the other. #udget is one of the emphasi5ed terms in
efficient methods of planning and control. #udget in common parlance is understood as
planning for e*penditure.
8/15/2019 1-intoduction 1-6.doc
5/56
#udgetary control is the feedac! lin! that allows us to monitor what actually
happened during the udget period, alerts us as to what happened that was not in
accordance with our plan, and then gives us indications as to what we should then do to
correct for what went wrong.
he estalishment of udget relating the responsiilities of e*ecutives to the
reuirements of a policy, and the continuous comparison of actual with udgeted results,
either to secure y individual action the oectives of the policy or to provide a asis for its
revision(;MA 1
8/15/2019 1-intoduction 1-6.doc
6/56
SCOPE OF THE STUDY
?;0 o study udget in government companies li!e ?0;(?uclear 0uel ;omple*)
4alaries
Materials @ 4uppliers
Machinery @ 'uipments
ffice e*penses
$nder allocation of funds in ?0; to study the revenue udget in central government
with reference to
NEED OF THE STUDY
o study the e*istence system of revenue udget in ?0; (nuclear fuel comple*) and
to suggest further improvements.
o !now the present system of revenue udget in government organi5ation
o analy5e the proposal for e*pansion or creating additional capacities
METHODOLOGY OF THE STUDY
0irst of all, the profit of the company is understood y acuiring with the asic
activities of the organi5ation using past and present records. 4econdly the internal analysis
is done to !now the procedure for preparation of udget estimates. #udget estimates are
compared with the actual to compute the variance and perform udget.
4tudied the usage of information technology in the process of udget and udgetary
control, analy5ed how it can e modify for etter performance.
SOURCES OF COLLECTION OF DATA
PRIMARY DATA
he data is collected through interaction with personnel who are wor!ing in finance and
accounts departments of the organi5ation.
8/15/2019 1-intoduction 1-6.doc
7/56
SECONDARY DATA
he data is collected from the company annual and other relevant records. Afterwards,
data is processed and analy5ed y using appropriate analytical tools and techniue so as to
e*amine efficiently.
8/15/2019 1-intoduction 1-6.doc
8/56
CHAPTER-2
RE'IE OF LITERATURE
8/15/2019 1-intoduction 1-6.doc
9/56
2. RE'IE OF LITERATURE
DEFINITION OF BUDGET
According to the institute of cost and management accountants (;MA), 'ngland, a udgetis a 8a financial and or uantitative statement, prepared and approved prior to a definite
period of time, of the policy to e pursued during that period for the purpose of attending a
given oective. t may include income, e*penditure and the employment of capital9
8A udget a written plan covering proected activities of affirm for a defined period9-
%ic!ey
8A udget is a plan of action to achieve stated oectives ased on pre-determined series of related assumptions-Beller and 0errari
According to &ordon and shilling law, a udget is 8a pre-determined detailed plan of
action developed and distriuted as a guide to current operations and as a partial asic for
the suseuent evaluation of performances9.
MEANING OF BUDGET
he chartered institute of management accountants of 'ngland and 6ales has defined the
terms "udget as 8 A financial and or uantitative statement, prepared and approved prior
to a defined period of time of the policy to e pursed during that period for the purpose of
attaining a given oective. t may include income, e*penditure and employment of
capital9.
A udget is a detailed plan of operations for same specific future period. t is an estimate
prepared in advance of the period to which it applies.
t acts as a usiness arometer as it is a complete programme of activities of the usiness
for the period covered.
#udgets are usually, set up in the light of past e*perience after ta!ing into account the
changes that are e*pected to occur in the future. t is, therefore, to e e*pected that actual
figures will correspond to the udget unless there is some important change in the
conditions. t must e the constant endeavor of the management to see that actual
performances do correspond with the udget concerned. 4ince udget assume the optimum
8/15/2019 1-intoduction 1-6.doc
10/56
efficiency attainale, the system of udgetary control helps to increase efficiency and
enales the concern to achieve the targets which are considered attainale.
ESSENTIALS OF BUDGET
t is a statement.
t pertains to a future period.
t states action points that need to e followed to attain the oectives of the
organi5ation.
t may e e*pressed in monetary units or in physical units or oth.
t forms the asis for monitoring and control.
t is prepared in advances and is ased on a future plan of actions.
t relates to a future period and is ased on oectives to e otained.
t is a statement e*pressed in monetary and or physical units prepared for the
implementation of policy formulated y the management.
CHARACTERISTICS OF BUDGET
A udget is concerned for a definite future period.
A udget is a written document.
A udget is a detailed plan of all the economic activities of a usiness.
All the departments of a usiness unit co-operate for the preparation of a usiness
udget.
#udget is a mean to achieve usiness and it is not an end in itself.
#udget needs to e updated, corrected and controlled every time when
circumstances changes. herefore it is a continuous process.
#udget helps in planning, coordination and control.
8/15/2019 1-intoduction 1-6.doc
11/56
%ifferent types of udgets are prepared y industries according to usiness
reuirements.
OBECTI'ES OF BUDGETING
he process of udgeting is initiated with the estalishment of specific targets of
performance and is followed y e*ecuting plans to achieve such desired goals and form
time to time comparing actual results with the targets of performancesgoals.
hese target include oth the overall usiness target as well as the specific targets for the
individual units within the usiness. 'stalishing specific target for future operations is a
part of the planning function of management, while e*ecuting actions to meet the goals is
the directing function of management.
A set of targetsgoals is often necessary to guide and focus individual and group
actions.
0or e*amples, students set academic goals, atmens runs, employee set career
goals, and usiness set financial goals. n the same way, udgeting supports the
planning process y reuiring all organi5ational units to estalish their targets for
the upcoming period. he targets, in turn, motivate individuals and groups to
perform at high levels.
$sing the udget to communicate these e*pectations throughout the organi5ation
has helped many a companies to reduce e*penses during a severe usiness
recession.
=lanning not only motivates employees to attain goals ut also improves over all
decision ma!ing. %uring the planning phase of the udget process,
DIRECTING
nce the udget plans are in place, they can e used to direct and coordinate
operations in order to achieve the stated targets.
8/15/2019 1-intoduction 1-6.doc
12/56
8/15/2019 1-intoduction 1-6.doc
13/56
0or e*ample, committees in professional institutes have udget to support faculty
travel to conferences and meeting. he travel udget communicates to the officers
the upper limit in travel. ften, desired travel e*ceeds the udget. hus the udget
reuires the officers to priorities travel- related opportunities.
DEFINITION OF BUDGETARY CONTROL
According to ;MA 'ngland, udgetary control is 8the estalishment of udget relating to
the responsiilities of e*ecutive to the reuirements of a policy, and the continuous
comparison of actual with udgeted results, either to secure y individual action, the
oective of the policy or to provide asis for its revision9.
n the words of F.#atty 8udgetary control is a system which uses udgets as means of
planning and controlling all aspects of producing and or selling commodities and services9.
o uote F.A. 4colt 8udgetary control is the system of management control and accounting
in which all operations are forecast and so far as possile planned ahead and the actual
results compared with the forecasted and the planed ones+.
MEANING OF BUDGETARY CONTROL
he chartered institute of management accountants of 'ngland and 6ales has defined the
terms "udgetary control as 8udgetary control is the estalishment of udgets relating to
the responsiliilities of e*ecutives of a policy and the continuous comparison of the actual
with the udgeted results, either to secure y individual action the oective of the policy or
to provide a asis for its revision9.
t is the system of management control and accounting in which all the operations are
forecasted and planned in advance to the e*tent possile and the actual results compared
with the forecasted and planned ones.
BUDGETARY CONTROL IN'OL'ES
'stalishment of udgets
;ontinuous comparison of actual with udgets for achievement of targets
7evisions of udgets after considering changed circumstances
8/15/2019 1-intoduction 1-6.doc
14/56
=lacing the responsiility for failure to achieve the udget targets.
THE SALIENT FEATURES
%etermining the oectives to e achieved, over the udget period, and the policy or
policies that might e adopted for the achievement of these ends.
%etermining the variety of activities that should e understood for the achievement
of the oectives.
%rawing up a plan or a scheme of operation in respect of each class of activity, in
physical as well as monetary terms for the full udget period and its parts.
aying out a system of comparison of actual performances y each person, section
or department with the relevant udget and determination of causes for the
discrepancies, if any.
'nsuring that corrective action will e ta!en where the plan is not eing achieved
and, if that not is possile, for the revision of the plan .
n rief it is a system to assist management in the allocation of responsiility and authority,to provide it with aid for ma!ing, estimates and planning for the future and to facilitate the
analysis of the variation etween estimates and actual performance.
n order that udgetary control may function may function effectively, it is necessary that
the concern should develop proper asis of measurement or standards with which to
evaluate the efficiency of operations it should have in operation a system of standards
costing.
#esides this, the organi5ation of the concern should e so integrated that all lines of
authority and responsiility are laid, allocated and defined. his is essential since the
system of udgetary control postulates separation of functions and division of
responsiilities and thus reuires that the organi5ation shall e planned in such a manner
that everyone, from the managing director down to the shop foreman, will have his duties
properly defined.
AD'ANTAGES OF BUDGETARY CONTROL
8/15/2019 1-intoduction 1-6.doc
15/56
t defines the oectives and policies of the underta!ing as a whole.
t helps in estimating the final needs of the concern and there y reduces the
possiility of over or under capitali5ation.
t secures planned allocation of productive facilities and resources for their est
utili5ation.
t facilitates "management y e*ception, attention of management is attracted only
to areas reuiring remedial action.
t facilities decentrali5ation of authority and responsiilities in definite departmental
as well as individual authority and responsiilities in define terms. his prevents
tendencies of passing the lame or responsiility on someone else, when the
udgeted results are not achieved.
t results in effective coordinates of activities of different departments and develops
sound communication system through meeting and discussions. t promotes etter
understanding of each others prolems and develops team spirit within the
underta!ing.
t helps in measuring the efficiency of departments and individuals udget provides
the yardstic!s against which actual results can e compared.
t instills into the managers the hait of carefully evaluating their prolems efore
ma!ing any decision.
t helps in promoting a feeling of cost- continuous. 6asteful e*penditure is avoided
and e*penditure is avoided and e*penditure eyond the udgeted figure is not
incurred without the prior approval of higher authority.
t increases the morale and the productivity of employees y see!ing their effective
participation in the formulation of plants and policies. t rings aout a harmony
etween individual goals and goals of the enterprise.
#udgets create the necessary condition for the setting up one of standards costing.
8/15/2019 1-intoduction 1-6.doc
16/56
#udgetary control reduces delays as udgets, once adoptedG operate as a sanction to
proceed. here is no need to wait for further clearances.
#udgetary control provides the asis for the introduction of incentive remuneration
plans ased on performances.
t serves as a asis for future policy and also for reviewing current policy in the
e*periences. t helpful in reviewing current trends in the usiness and in
determining future policy of the usiness.
t serves as internal audit y continuous scrutiny of departmental results and costs.
6hen there is udgetary control, seasonal and cyclical fluctuations in the usiness
can e anticipated n advances and news product lines may e ta!en to maintain the
level of production. hus, udgeting assists in the staili5ation of industry.
LIMITATIONS OF BUDGETARY CONTROL
#udgets are essentially ased on forecasted and estimates whose accuracy depends
upon the correctness of facts and good udgment. hus udgets are a matter of
opinion rather than a scientific tool. his reduces the reliaility of udgets.
here is danger of over udgeting, spelling out maor e*penses in detail. his
deprives the managers of freedom of action in managing their departments.
$nder the fast changing usiness condition and government policies, udgeting
ecomes a difficult tas!. #udgets may ecome outdated even efore they are
approved.
0or the success of udgetary program, all levels of management should ta!e active
interest in its e*ecution. his is usually not the case.
#udgeting may result in every e*ecutive ust trying to achieve the udgeted targets.
hus, udgets serve as constraints on managerial initiative.
=reparation and operational of udgetary program is e*pensive. Hence, small
concern may not e ale to afford having a system of udgetary control
8/15/2019 1-intoduction 1-6.doc
17/56
#udgetary control may lead to conflicts among functional e*ecutives, ecause every
e*ecutive may try to get a larger share of udgetary allocation, shir! responsiility
and lame other for pit-falls.
#udgetary tends to ring rigidity in control. #udgets, once made, ecome
irrevocale.
#udgeting may lower the morale and productivity of personnel, if unrealistic targets
are set and if udget is used as a pressure tool.
#udgeting may hide inefficiencies instead of e*posing them, if there is no
evaluation system. $nless there is continuous evaluation of the actual performances,
udgeting cannot e a success.
#udgets will ecome a mere routine and lose their dynamic unless the udget
program is revised from time to time, in tune with the changes in usiness condition
and management policies. However, freuent revisions may e a costly affair.
OBECTI'ES OF BUDGETARY CONTROL SYSTEM
=ortraying with precision the overall aims of the usiness and determining
targets of performances for each section or department of the usiness.
aying down the responsiilities of each of the e*ecutives and other personnel
so that everyone !nows what is e*pected of him and how he will e udged.
#udgetary control is one of the few ways in which an oective assessment of
e*ecutives or department is possile.
=roviding a asis for the comparison of actual performances with the
predetermined targets and investigation of deviation, if any, of actual
performances and e*penses from the udgeted figures. his naturally helps in
adopting correctives measures.
'nsuring the est use of all availale resources to ma*imum profit or
production. 4uect to the limiting factors. 4ince udgets cannot e properly
drawn up without considering all aspects usually there is good coordination
when a system of udgetary control operates.
8/15/2019 1-intoduction 1-6.doc
18/56
;oordinating the various activities of the usiness and centrali5ing control and
yet enaling management to decentrali5e responsiility and delegate authority in
the overall interest of the usiness.
'ngendering a spirit of careful forethought, assessment of what is possile and
an attempt at it. t leads to dynamism without rec!lessness. f course, much
depends on the oectives of the firms and the vigor of its management.
=roviding a asis for revision of current and future policies.
%rawing up long range plans with a fair measures of accuracy
=roviding a yardstic! against which actual results can e compared.
OR,ING OF A BUDGETARY CONTROL SYSTEM
he responsiility for successfully introducing and implementing a udgetary control
system rests with the udget committee acting through the udget officer. he udget
committee would e compared of all functional heads and memers from the oards to
preside over and guide the delierations.
THE MAIN RESPONSIBILITIES OF THE BUDGET OFFICERS
o assist in the preparation of the various udgets y coordinating the wor! of the
accounts departments which is normally responsile to compile the udgets- with
the relevant functional departments li!e sales, production, plant maintenance etc.
o forward the udget to the individual who are responsile to adhere to them and
to guide them in overcoming any practical difficulties in its wor!ing
o prepare the periodical udget reports for circulation to the individuals concerned.
o follow up action to e ta!en on the udget reports.
o prepare an overall udget wor!ing report for discussion at the udget committee
meeting and to ensure follow-up on the lines of action suggested y the committee.
8/15/2019 1-intoduction 1-6.doc
19/56
o prepare periodical reports for the oard meeting comparing the udgeted profit
and loss account and the alance sheet with the actual.
7esults attained.
t is necessary that every udget should e thoroughly discussed with the functional head
efore it is finali5ed.
t is the duty of the udget officer to see that the periodical udget reports are supplied to
the recipients at freuent intervals as far as possile.
he efficiency of the udget officer, and through him of the udget committee, will e
udged more y the smooth wor!ing of the system and the agreement etween the actual
figures and the udgeted figures.
#udgets are primarily an incentive and challenges for a etter performances, it is up to the
udget officers to see that attention of the different functional heads is drawn to it face the
challenge in a successful manner.
COMPONENTS OF BUDGETARY CONTROL SYSTEM
he policy of a usiness for a defined period is represented y the master udget the details
of which are given in a numer of individual udgets called functional udgets. hese
functional udgets are roadly grouped under the following heads.
=hysical udgets those udgets which contains information in terms of physical units
aout sales, production etc. for e*ample uantity of sales, uantity of production,
inventories and manpower udgets and physical udgets.
;ost udgets #udgets which provides cost information in respect of the manufacturing,
selling, administration etc. for e*ample, manufacturing costs, selling costs,
administration cost, and research and development cost udgets
=rofit udget a udget which enales in the ascertainment of profit, for e*ample, sales
udget, profit and loss udget, etc.
.FUNCTION OF BUDGET SECTION
8/15/2019 1-intoduction 1-6.doc
20/56
ssue of udget circular.
;ontroller of data relating to actual receipts and e*penditure of previous years.
=reparation of various supporting rea!up statements of receipts and e*penditure.
;ompilation of estimates of receipts and e*penditure received from various
authorities.
;ompilation of udget estimates in respect of receipts, revenue e*penditure, capital
e*penditure, loans and advances, provident fund etc.
Monthly uarterly phasing of receipts and e*penditure for periodical review andfinancial control.
=reparation of monthly reports of receipts and e*penditure with supportive rea!up
statements.
7eview of receipts and e*penditure for final grand of e*penditure and surrender of
funds, if any.
ntimation of progress of e*penditure in respect of capital proect to the concerned
proect coordinators.
;orrespondence with concerned authorities in respect of all of the aove.
PREPARATION OF BUDGET
n ?0;, the udget of the organi5ation is to e prepared for the following a details
estimate of-
7eceipts
'*penditure on revenue account.
he e*penditure on capital account.
he udget estimates shall give the anticipated receipts and e*penditure for the
ensuring financial year, under each maor, su and detailed heads of accounts.
8/15/2019 1-intoduction 1-6.doc
21/56
8/15/2019 1-intoduction 1-6.doc
22/56
nterest
CHAPTER-3
INDUSTRY PROFILE
COMPANY PROFILE
8/15/2019 1-intoduction 1-6.doc
23/56
INDUSTRY PROFILE
n the most general sense of the word, a %%/ is a inder, a sustance which sets and hardens
independently, and can ind other materials together. he word IcementI traces to the 7omans, who
used the term Iopus caementiciumI to descrie masonry which resemled concrete and was made
from crushed roc! with urnt lime as inder. he volcanic ash and pulveri5ed ric! additives which
were added to the urnt lime to otain a hydraulic inder were later referred to as cementum,
cimentum, cJment and cement. ;ements used in construction are characteri5ed as 678 or
/9/-678.
he most important use of cement is the production of mortar and concrete Kthe onding of natural
or artificial aggregates to form a strong uilding material which is durale in the face of normal
environmental effects.
;oncrete should not e confused with cement ecause the term cement refers only to the dry
powder sustance used to ind the aggregate materials of concrete. $pon the addition of water
andor additives the cement mi*ture is referred to as concrete, especially if aggregates have eenadded.
t is uncertain where it was first discovered that a comination of hydrated non-hydraulic lime and a
po55olan produces a hydraulic mi*ture (see also =o55olanic reaction), ut concrete made from such
mi*tures was first used on a large scale y 7oman engineers.hey used oth natural po55olans
(trass or pumice) and artificial po55olans (ground ric! or pottery) in these concretes. Many
e*cellent e*amples of structures made from these concretes are still standing, notaly the huge
monolithic dome of the =antheon in 7ome and the massive #aths of ;aracalla. he vast system of
7oman aueducts also made e*tensive use of hydraulic cement. he use of structural concrete
disappeared in medieval 'urope, although wea! po55olanic concretes continued to e used as a core
fill in stone walls and columns.
http://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/Calcium_oxidehttp://en.wikipedia.org/wiki/Calcium_oxidehttp://en.wikipedia.org/wiki/Mortar_(masonry)http://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Slaked_limehttp://en.wikipedia.org/wiki/Pozzolanhttp://en.wikipedia.org/wiki/Pozzolanic_reactionhttp://en.wikipedia.org/wiki/Roman_engineeringhttp://en.wikipedia.org/wiki/Roman_engineeringhttp://en.wikipedia.org/wiki/Trasshttp://en.wikipedia.org/wiki/Pumicehttp://en.wikipedia.org/wiki/Pumicehttp://en.wikipedia.org/wiki/Pantheon,_Romehttp://en.wikipedia.org/wiki/Pantheon,_Romehttp://en.wikipedia.org/wiki/Romehttp://en.wikipedia.org/wiki/Romehttp://en.wikipedia.org/wiki/Baths_of_Caracallahttp://en.wikipedia.org/wiki/Roman_aqueducthttp://en.wikipedia.org/wiki/Calcium_oxidehttp://en.wikipedia.org/wiki/Mortar_(masonry)http://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Slaked_limehttp://en.wikipedia.org/wiki/Pozzolanhttp://en.wikipedia.org/wiki/Pozzolanic_reactionhttp://en.wikipedia.org/wiki/Roman_engineeringhttp://en.wikipedia.org/wiki/Trasshttp://en.wikipedia.org/wiki/Pumicehttp://en.wikipedia.org/wiki/Pantheon,_Romehttp://en.wikipedia.org/wiki/Romehttp://en.wikipedia.org/wiki/Baths_of_Caracallahttp://en.wikipedia.org/wiki/Roman_aqueducthttp://en.wikipedia.org/wiki/Ancient_Rome
8/15/2019 1-intoduction 1-6.doc
24/56
Modern cement
Modern hydraulic cements egan to e developed from the start of the ndustrial 7evolution
(around 1DCC), driven y three main needs
Hydraulic renders for finishing ric! uildings in wet climates
Hydraulic mortars for masonry construction of haror wor!s etc, in contact with sea water.
%evelopment of strong concretes.
n #ritain particularly, good uality uilding stone ecame ever more e*pensive during a period of
rapid growth, and it ecame a common practice to construct prestige uildings from the new
industrial ric!s, and to finish them with a stucco to imitate stone. Hydraulic limes were favored for
this, ut the need for a fast set time encouraged the development of new cements. Most famous was
=ar!erLs I7oman cement.I his was developed y Fames =ar!er in the 1EDCs, and finally patented in
1E
8/15/2019 1-intoduction 1-6.doc
25/56
All the aove products could not compete with limepo55olan concretes ecause of fast-setting
(giving insufficient time for placement) and low early strengths (reuiring a delay of many wee!s
efore formwor! could e removed). Hydraulic limes, InaturalI cements and IartificialI cements all
rely upon their elite content for strength development. #elite develops strength slowly. #ecause
they were urned at temperatures elow 12:C O;, they contained no alite, which is responsile for
early strength in modern cements. he first cement to consistently contain alite was made y Foseph
AspdinLs son 6illiam in the early 1D/Cs. his was what we call today ImodernI =ortland cement.
#ecause of the air of mystery with which 6illiam Aspdin surrounded his product, others (e.g. Nicat
and ; Fohnson) have claimed precedence in this invention, ut recent analysis of oth his concrete
and raw cement have shown that 6illiam AspdinLs product made at ?orthfleet, Bent was a true
alite-ased cement. However, AspdinLs methods were Irule-of-thumI Nicat is responsile for
estalishing the chemical asis of these cements, and Fohnson estalished the importance of
sintering the mi* in the !iln.
6illiam AspdinLs innovation was counter-intuitive for manufacturers of Iartificial cementsI,
ecause they reuired more lime in the mi* (a prolem for his father), ecause they reuired a much
higher !iln temperature (and therefore more fuel) and ecause the resulting clin!er was very hard
and rapidly wore down the millstones which were the only availale grinding technology of the
time. Manufacturing costs were therefore consideraly higher, ut the product set reasonaly slowly
and developed strength uic!ly, thus opening up a mar!et for use in concrete. he use of concrete in
construction grew rapidly from 1D:C onwards, and was soon the dominant use for cements. hus
=ortland cement egan its predominant role. it is made from water and sand
T:%; 9< 9%/ %%/
=ortland cement
;ement is made y heating limestone (calcium caronate), with small uantities of other materials
(such as clay) to 1/:CO; in a !iln, in a process !nown as calcination, wherey a molecule of caron
dio*ide is lierated from the calcium caronate to form calcium o*ide, or lime, which is then
lended with the other materials that have een included in the mi* . he resulting hard sustance,
called Lclin!erL, is then ground with a small amount of gypsum into a powder to ma!e Lrdinary
=ortland ;ementL, the most commonly used type of cement (often referred to as =;).
=ortland cement is a asic ingredient of concrete, mortar and most non-specialitygrout. he most
common use for =ortland cement is in the production of concrete. ;oncrete is a composite material
consisting of aggregate (gravel and sand), cement, and water. As a construction material, concrete
can e cast in almost any shape desired, and once hardened, can ecome a structural (load earing)
element. =ortland cement may e gray or white.
http://en.wikipedia.org/wiki/Belitehttp://en.wikipedia.org/wiki/Alitehttp://en.wikipedia.org/wiki/William_Aspdinhttp://en.wikipedia.org/wiki/William_Aspdinhttp://en.wikipedia.org/wiki/Isaac_Charles_Johnsonhttp://en.wikipedia.org/wiki/Northfleethttp://en.wikipedia.org/wiki/Kenthttp://en.wikipedia.org/wiki/Clinker_(cement)http://en.wikipedia.org/wiki/Limestonehttp://en.wikipedia.org/wiki/Clayhttp://en.wikipedia.org/wiki/Kilnhttp://en.wikipedia.org/wiki/Kilnhttp://en.wikipedia.org/wiki/Calcinationhttp://en.wikipedia.org/wiki/Carbon_dioxidehttp://en.wikipedia.org/wiki/Carbon_dioxidehttp://en.wikipedia.org/wiki/Calcium_oxidehttp://en.wikipedia.org/wiki/Gypsumhttp://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Mortar_(masonry)http://en.wikipedia.org/wiki/Grouthttp://en.wikipedia.org/wiki/Grouthttp://en.wikipedia.org/wiki/Construction_aggregatehttp://en.wikipedia.org/wiki/Belitehttp://en.wikipedia.org/wiki/Alitehttp://en.wikipedia.org/wiki/William_Aspdinhttp://en.wikipedia.org/wiki/Isaac_Charles_Johnsonhttp://en.wikipedia.org/wiki/Northfleethttp://en.wikipedia.org/wiki/Kenthttp://en.wikipedia.org/wiki/Clinker_(cement)http://en.wikipedia.org/wiki/Limestonehttp://en.wikipedia.org/wiki/Clayhttp://en.wikipedia.org/wiki/Kilnhttp://en.wikipedia.org/wiki/Calcinationhttp://en.wikipedia.org/wiki/Carbon_dioxidehttp://en.wikipedia.org/wiki/Carbon_dioxidehttp://en.wikipedia.org/wiki/Calcium_oxidehttp://en.wikipedia.org/wiki/Gypsumhttp://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Mortar_(masonry)http://en.wikipedia.org/wiki/Grouthttp://en.wikipedia.org/wiki/Construction_aggregate
8/15/2019 1-intoduction 1-6.doc
26/56
=ortland cement lends
hese are often availale as inter-ground mi*tures from cement manufacturers, ut similar
formulations are often also mi*ed from the ground components at the concrete mi*ing plant.
P97/ =7;97/ %%/ includes fly ash cement, since fly ash is a po55olan, ut also includes
cements made from other natural or artificial po55olans. n countries where volcanic ashes are
availale (e.g. taly, ;hile, Me*ico, the =hilippines) these cements are often the most common form
in use.
P97/ ;878
8/15/2019 1-intoduction 1-6.doc
27/56
C979% %%/; are used for decorative purposes. n some standards, the addition of pigments to
produce Icolored =ortland cementI is allowed. n other standards (e.g. A4M), pigments are not
allowed constituents of =ortland cement, and colored cements are sold as Ilended hydraulic
cementsI.
'%
8/15/2019 1-intoduction 1-6.doc
28/56
reuirements are lower ecause of the lower !iln temperatures reuired for reaction, and the lower
amount of limestone (which must e endothermicallydecaronated) in the mi*. n addition, the
lower limestone content and lower fuel consumption leads to a ; 2 emission around half that
associated with =ortland clin!er. However, 42 emissions are usually significantly higher.
N67 C%%/; correspond to certain cements of the pre-=ortland era, produced y urning
argillaceous limestones at moderate temperatures. he level of clay components in the limestone
(around 3C-3:P) is such that large amounts of elite (the low-early strength, high-late strength
mineral in =ortland cement) are formed without the formation of e*cessive amounts of free lime. As
with any natural material, such cements have highly variale properties.
COMPANY PROFILE
Besoram ;ement ndustry is one of the leading manufacturer of cement in ndia. t is a day process
cement =lant. he plant capacity is D.2+ la!h tones per annum t is located at #asanthnagar in
Barimnagar district of Andhra =radesh. #asanthnagar is D !m away from the 7amagundram
7ailway station, lin!ing Madras to ?ew %elhi. he ;hairman of the ;ompany is syt. #.B.#irla,
H47R
T%
8/15/2019 1-intoduction 1-6.doc
29/56
he 0irst =lant for manufacturing of rayon yarn was estalished at rieni, %istrict Hooghly, 6est
#engal and the same was commissioned in %ecemer, 1
8/15/2019 1-intoduction 1-6.doc
30/56
iuid ;hlorine, +,2C: mtpa of 4odium Hypochlorite, D,2CC mtpa of Hydrochloric Acid, 3,2CC mtpa
of 0erric Alum, 1D,ECC mtpa of 4ulphuric Acid and 1,+2C,CCC m3pa of purified Hydrogen &as.
he ;ompany is a well-diversified entity in the fields of ;ement, yre, 7ayon Rarn, ransparent
=aper, 4pun =ipes and Heavy ;hemicals with two core usiness segments i.e. ;ement and yres.
n 4pun =ipes @ 0oundries, a unit of the ;ompany, wor! suspended from 2nd May, 2CCD still
commences till further notice.
he ;ompany as of now is listed on three maor 4toc! '*changes in ndia i.e. #omay 4toc!
'*change td., Mumai, ;alcutta 4toc! '*change Association td., Bol!ata and ?ational 4toc!
'*change of ndia td., Mumai and at the 4ociete de la #ourse de u*emourg, u*emourg.
A further e*pansion upto 1.+: million tons of cement per annum in Nasavadatta ;ement at 4edam in
Barnata!a as unit N at the same site is in progress, with a 1E.: M6 ;aptive =ower =lant, involving
a capital e*penditure of aout 7s. ED3.:C crores (including the cost of ;aptive =ower =lant).
he commercial production of cement in the aforesaid unit N has commenced in Fune 2CC
8/15/2019 1-intoduction 1-6.doc
31/56
he company has vigorously underta!ing different promotional measures for promoting
their product through different media, which includes the use of news papers maga5ine, hoarding
etc.
Besoram cement industry distinguished itself among all the cement factories in ndian y aggingthe ?ational =roductivity Award consecutively for two years i.e. for the year 1
8/15/2019 1-intoduction 1-6.doc
32/56
t has een the endeavor of Besoram to incorporate the 6orlds latest technology in the
plant and today the plant has the most sophisticated.
T-ray analysis
0ully computeri5ed T70 and T7% T-7AR Analy5ers !eep a constant round the cloc! vigil
on uality.
4upreme performance
ne of the largest ;ement =lants in Andhra =radesh, the plant in corporate the latest
technology in ;ement - ma!ing.
t is professionally managed and well estalished ;ement Manufacturing ;ompany
enoying the confidence of the consumers. Besoram has outstanding trac! record in performance
and productivity with uite a few national and state awards to its credit.
#7A 4$=7'M', the /3 &rade ;ement, is a widely accepted and popular rand in the
mar!et, commanding a premium.
However to meet the specific demands of the consumer, Besoram ought out the :3 grade
#7A 4$=7'M' &%, which has special ualities li!e higher fineness, uic!-setting, highcompressive strength and duraility.
4upreme 4trength
Besoram ;ement has huge captive imestone %eposits, which ma!e it possile to feed
high- grade limestone consistently, ts natural &rey colour is anion- orn ingredient and gives good
shade.
#oth the products offered y Besoram, i.e. #7A 4$=7'M'-/3 &rade and #7A
4$=7'M'-&%-:3 &rade cement are outstanding with much higher compressive strength and
duraility.
8/15/2019 1-intoduction 1-6.doc
33/56
he following characteristics show their distinctive ualities.
;omprehensive
4trength
pc /3
grls D112
1
8/15/2019 1-intoduction 1-6.doc
34/56
he #est echnical eam, e*clusive to Besoram, mans the =lant and monitors the process, to
lend the cement in ust the reuired proportions, to ma!e #7A 4$=7'M'&% 0 7oc!
4trength.
1D M? ?'4 0 4% 0$?%A?
4taying at the top for over a Suarter ;entury, Suarter ;entury is no less an achievement.
nfact.Besoram is synonymous with for over 2D years.
ver the years, Besoram has dispatched 1D million tones of cement to the noo! and corners of the
country and oined hands in strengthening the ?ation. ?o one else in Andhra =radesh has this
distinction. he prestigious 6orld #an! aided 7amagundam 4uper hermal =ower =roect of ?=;
and Mannair %am of =ochampad proect in A= arc a couple of proects for which Besoram ;ement
was e*clusively uses to cite an e*ample.
;H'M;A ;HA7A;'74;4
pc /3 gr
s D1 132-
8/15/2019 1-intoduction 1-6.doc
35/56
Besoram has outstanding trac! record, achieving over 1CCP capacity utili5ation productivity
and energy conservation. t has proved its distinction y agging several national and state
awards, noteworthy eing.
?A?A
1. ?ational productivity award for 1
8/15/2019 1-intoduction 1-6.doc
36/56
=ower
4ingarein collieries ma!e the supply of coal for this industry and the power was otained
from A= 7A?4;. he power demand for the factory is aout 21M6. Besoram has got 2-diesel
generator seats of / M6 each installed in the year 1
8/15/2019 1-intoduction 1-6.doc
37/56
camps, animal health camps lood donation camps, children immuni5ation camps, seeds, training
for farmers etc were arranged.
6elfare and 7ecreation 0acilities
0or the purpose of recreation facilities 2 auditoriums were provided for playing
indoor games, cultural function and activities li!e drama, music and dance
he industry has provided liraries and reading rooms. Aout 1CCC oo!s are availale in the
lirary. All !inds of newspaper, maga5ines are made availale.
;anteen is provided to cater to the needs of the employees for supply of snac!s, tea, coffee and
meals etc.ne 'nglish medium and one elugu medium school are provided to meet the educational
reuirements.he company has provided a dispensar with a ualified medical office and
paramedical staff for the enefit of the employees. he employees covered under '4 scheme have
to avail the medical facilities from the '4 hospital.
;ompetitions in sports and games are conducted ever year for august 1: th ndependence %ay and
Fanuary 2+th, repulic day among the employees.
'lectricity
he power consumption per ton of cement has come down to 1CD units against 113 units
last year, due to implementation of various energy saving measures. he performance of captive
power plant of this section continues to e satisfactory. otal power generation during the year was
D/ million units last year. his captive power plant is a maor role in !eeping power costs with in
economic levels.
he management has introduced various H7% programs for training and development and has ta!en
various other measures for the etterment of employees efficiency.
he section has installed adeuate air pollution control system and euipment and is 41/CC1 such
as 'nvironment management system is under implementation.
Awards
Besoram cement agged many prestigious awards including national awards for
productivity, technology, conservation and several state awards since 1
8/15/2019 1-intoduction 1-6.doc
38/56
A6A7%4 0 B'47AM ;'M'?
?o Rear Awards
?ational
state
1 1
8/15/2019 1-intoduction 1-6.doc
39/56
=roducts of the organi5ation
8/15/2019 1-intoduction 1-6.doc
40/56
CHAPTER-4
DATA ANALYSIS AND INTERPRETION
ANALYSIS OF SALARIES & (RS IN LA,HS)
Rear #udget 'stimation Actual Nariation Nariation (P)
2C1C-11
8/15/2019 1-intoduction 1-6.doc
41/56
REASONS FOR POSTI'E 'ARIATION& (#udget 'stimated W Actual '*penditure)
7etirement of the employees.
he organi5ation must have stopped the contract asis employees.
REASONS FOR NEGATI'E 'ARIATION& (#udget 'stimated V Actual '*penditure)
ncrease in the salaries of the employees y the &overnment.
7ecruitment of new employees y the organi5ation.
More numer of contract employees. =romotion of the employees.
ANALYSIS OF O'ERTIME ALLOANCE& (RS IN LA,HS)
Rear
#udget
'stimation Actual Nariation
Nariation
(P)
2C1C-11
8/15/2019 1-intoduction 1-6.doc
42/56
GRAPHICAL REPRESENTATION&
REASONS FOR POSITI'E 'ARIATION& (#udget 'stimated W Actual '*penditure)
;ompletion of the proect on time.
REASONS FOR NEGATI'E 'ARIATION& (#udget 'stimated V Actual '*penditure)
he organi5ation is giving more incentives on the productivity level. 4udden rise in the production of the product. Hence the organi5ation has spent
more on the overtime allowance for the completion of the production in the
prescried time.
4ome of the employees are doing other employees wor! in their asence.
ANALYSIS OF DOMESTIC TRA'EL E!PENSES & (RS IN LA,HS)
Rear #udget 'stimation Actual Nariation Nariation (P)
2C1C-11 1CC
8/15/2019 1-intoduction 1-6.doc
43/56
2C1/-1: 1/3 1:
8/15/2019 1-intoduction 1-6.doc
44/56
2C13-1/ /C 2D.E+ 11.2/ 2D.1
2C1/-1: :C 3D.
8/15/2019 1-intoduction 1-6.doc
45/56
LA,HS)&
Rear #udget 'stimation Actual Nariation Nariation (P)
2C1C-11 +CC +CC.+3 -C.+3 -C.1C:
2C11-12 +CC :E3.:2 2+./D /./133333332C12-13 :3: /D3.C: :1.
8/15/2019 1-intoduction 1-6.doc
46/56
LA,HS)
Rear #udget 'stimation Actual Nariation Nariation (P)
2C1C-11 /: /C.+3 /.3E
8/15/2019 1-intoduction 1-6.doc
47/56
Rear #udget 'stimation Actual Nariation Nariation (P)
2C1C-11 +++33 :2:1D./D 1/11/.:2 21.1D
2C11-12 /D13: EC11/.C+ -21
8/15/2019 1-intoduction 1-6.doc
48/56
2C12-13 :C 1
8/15/2019 1-intoduction 1-6.doc
49/56
2C13-1/ /CCC /CCC C C
2C1/-1: /CCC 3CCC 1CCC 2:
GRAPHICAL REPRESENTATION&
REASONS FOR POSTI'E 'ARIATION& (#udget 'stimated W Actual '*penditure)
he interest rates are not fluctuating. he organi5ation is following the
predetermined rate of interest or organi5ation has completed paying some of the
loan amount with interest and principal amount.
REASONS FOR NEGATI'E 'ARIATION& (#udget 'stimated V Actual '*penditure)
he organi5ation has ta!en few more loans.
7ate of interest has increased from the past value
ANALYSIS OF MACHINERY EUIPMENT& ( RS IN LA,HS)
Rear
#udget
'stimation Actual Nariation
Nariation
(P)
2C1C-11 2CC 21D./: -1D./: -
8/15/2019 1-intoduction 1-6.doc
50/56
2C13-1/ 31/D +CC.DDD 2:/E.112 DC.
8/15/2019 1-intoduction 1-6.doc
51/56
8/15/2019 1-intoduction 1-6.doc
52/56
CHAPTER-5
FINDING SUGGESTION
CONCLUSION
BIBLIOGRAPHY
8/15/2019 1-intoduction 1-6.doc
53/56
FINDINGS
After carrying a detailed study on the udgetary process and udgetary control at ?uclear
0uel ;omple*, the following
servations were made
?uclear 0uel ;omple* prepares udget every year.
A study on udget of year shows high inconsistency. ;ertain e*penditures and incomes
show maor variation
n case of revenue e*penses, the organi5ation tries to stic! to its udgetary figureshis matches with the actual figures for the year.
'*penditure relating to the raw materials is showing faster growth rate of ?0;.
Administrative e*penses in the year 2CCD-2CC< decreased when compared to other years
data.
%omestic travel e*penses and overtime allowances in the year 2CC
8/15/2019 1-intoduction 1-6.doc
54/56
SUGGESTIONS
A udget is treated as an important tool y an organi5ation in the management of its
financial resources .with the help of proper maintenance of udget and udgetary control,
can allocate funds for appropriate purposeG !eep spending within ounds and etter use of
its funds.
he following are the things which help in increased effectiveness of udgetary control. As
the result of the study #udget and #udgetary control at ?0;, the following suggestions are
given
?0; needs to divide the organi5ation into su units. 4uch as decision and profit
centers.
his will also e used as investment, profit and cost centers which improve the
responsiility and accountaility of employees towards their wor!.
?0; should prepare the financial udget considering all items of proale e*penses.
he udget should e prepared in such a way that the deviations in the e*penses are
reduced to minimal. he higher the consistency in the udget, the higher is the
fluctuation in the financial position of ?0;.
?0; should involve all the departments in the preparation of udgets. t would ridge the
&ap etween the udgeted figures and actual figures of the year.
8/15/2019 1-intoduction 1-6.doc
55/56
CONCLUSION
#udgetary control is an important tool for the management to have an effective chec! on its
wor!ing as well as the staff. However, it is seen as time consuming techniue y various
organi5ations and thus do not pay much attention to it.
hrough this study it was found that the udget shows high inconsistency and the
actual performance varies consideraly from the udgeted figures.
#udgetary control department acts as a ac! of top management.
#udgetary control department collects information from each departments and
converts the data into information.
6ith the support of the udgetary control the management and converts the data
into information.
6ith the help of proper udgetary planning and control system ?0; has een ale
to improve operating performances and profitaility of the organi5ation.
he financial system in ?0; has een very uic!ly and well planned one which
could e implanted in other such government organi5ation.
BIBLIOGRAPHY
8/15/2019 1-intoduction 1-6.doc
56/56
BOO,S&
M.R BHA? @ =.B FA?, (2CC3), 80?A?;A MA?A&'M'?9, 3 rd '%?,
AA M; &7A6 H =$#4H?& ;.%, ?'6 %'H.
7.=. 7$4A&, (2CC:), 80?A?;A MA?A&'M'?9, 2 nd '%?, &A&A
=$#4H?&, ?'6 %'H.
4.? MAH'4H6A7, (2CC/), 8;4 @ MA?A&'M'? A;;$??&9, /th
'%?, 4$A? ;HA?% @ 4?4, ?'6 %'H.
OURNALS&
A?AMBA M$BH'7F'', (2C1C),9 #$%&' 2C1C @ %'N'=M'?9, N
/:, ?./
4AN7 B$MA7,(2C1C),9#$%&' 2C1C &76H 47A'&R 07 2C2C
,N/:.
EB-SITES&
www.nfc.gov.in
www.dae.gov.in
www. indiaudget.nic.in
www.wi!ipiedia. org.
www.finmin.nic.in