BUDGETARY CONTROL

-By Dakshayini

INTRODUCTION
The management is efficient if it is able to accomplish the objective of the enterprise. A systematic approach to facilitate effective management performance is profit planning and control or budgeting. Budgeting--Goal setting machine for increasing an enterprises profits, and goal achieving machine

MEANING OF BUDGET
It is a financial and quantitative statement, prepared and approved prior to a define period of time of policy to pursue during that period for purpose of attaining a given objective. It may include income, expenditure and employment capital.

ESSENTIAL OF GOOD BUDGET

It is prepared prior to a defined period of time. It is prepared for the definite future period. The policy to be followed to attain the given objectives must be laid before the budget as prepared. It is monetary and / or quantitative statement of the policy.

MEANING OF BUDGETARY CONTROL

It is the process of executives to the requirements of a policy, and the continuous comparison of actual with budgeted results, either to secure by basis individual action the objectives of that policy, or to provide a firm basis for its revision.

OBJECTIVES OF STUDY
To analyze the budgetary system in practice in Diesel Loco Shed(South Central Railway) Kazipet. To describe the profile of the organization as a backdrop for undertaking a study of budgetary control system To analyze the revenue and operational budget system in DLS, Kzpt. Planned action engendering a spirit of careful forethought assessment of what is possible and an attempt at it. It leads to dynamism without recklessness. It also helps to draw up long range plans with a fair measure of accuracy.

METHODOLOGY
The date of DLS, Kzpt have been collected mainly from secondary sources viz., From the concerned officers of the DLS, Kzpt From the journals of the DLS, Kzpt From the 88th annual report of DLS, Kzpt and detailed project report of the Industry From the concerned accounting books

SOUTH CENTRAL RAILWAY

The youngest of the nine zonal Railway in India, South Central Railway was born on 2, 1966 South Central railway has built a modern system of the mass transport, fulfilled the aspiration of the passengers and made a mark for itself in Indian Railway, Strategically positioned extending from the East Coast to West coast in the Southern at Secunderabad, serves six manor states Andhra Pradesh, Karnataka, Maharashtra, Goa, Madhya Pradesh and Tamilnadu.

ABOUT DIESEL LOCO SHED KAZIPET

Diesel Loco shed Kazipet is established on 21st April, 1973 with an intention to maintain the 30 number of locomotives to meet the demands of passengers & goods services between Chennai & Delhi, Howrah & Mumbai in its phase one. In the course of it has come up to hold the loco engines for maintenance purpose.

QUALITY CIRLES
It is small group of employees in the same work areal or doing similar type of work who voluntarily meet regularly for about an hour every week to identify, analyze and resolve work related problems not only to improve quality, productivity and the total performance of the organization, but also to enrich the quality of work life of employees.

Objectives of the Quality Circles

To develop, enhance and utilize human resources effectively. To improve quality of products/services, productivity and reduce cost of production per unit of output. To satisfy the workers psychological need for self-urge, participation, recognizing etc., with a view to motivating them. To improve varies supervisory skills like leadership, problem solving, inter personal and conflict resolution.

 Benefits of Quality Circles: Quality Circles benefit both members and the organization. Benefits for members include: Satisfaction of self-esteems and esteem from others. Improved job satisfaction. Benefits to the organization include: Promotion of participative management culture and team work. Increased managerial effectiveness. Development of problem solving ethic in the organization.

WELFARE MESURES
Certain welfare measures are given in industry to develop or improve of employees and develop confidence level, love & affection on the join and to meet the foreseen circumstances. CGIS: (Central Government Employee group insurance scheme)1980 Deposit linked insurance scheme Incentives providing for small family Railways staff benefit fund Compassionate Appointment Retired employee liberalized health scheme Diet charges

Ex-gratia lump sum compensation Recreational facilities Hospital Leave Study leave Maternity Leave Paternity Leave Quarentine Leave Childrens Educational Assistance Retirement Benefits Pension Scholarship for Technical Education

REVIEW OF LITERATURE
A budget is a blue print of a plan expressed in a quantitative terms. Budgeting is a technique for formulating budgets. Budgetary control refers to the principles, procedures, and practice of achieving given objectives through budgets. Budgetary control embraces all and in addition includes the science of planning the budgets to effect on overall management tool for the business planning and control

ESSENTIALS OF BUDGETARY CONTROL

ORGANISATION FOR BUDGETARY CONTROL: The proper organization is essential for the successful preparation, maintenance and administration of budgets. BUDGET OFFICER: The chief executive appoints officer. Such budget officer also called as Budget Controller: or Budget Director. His rank should be equal to other functional managers.

BUDGET COMMITTEE: A budget committee is formed to assist the budget officer. The heads of all the important departments are made members of this committee. BUDGETS CENTERS: A budget center is that part of the organization for which the budget is prepared. A budget center may be a department, section of a department or any other part of the department.

BUDGET MANUAL A budget manual is a document that spells out the duties and responsibilities. All the various executives concerned with it specifies among various functional Areas. BUDGET PERIOD: A budget period is the length of time for which a budget is prepared. It depends upon a number of factors. The choice of a budget period depends upon the following considerations. The type budget (long/short) The nature of demand for the products. The timings for the availability of the finance. The economic situations of the cycles.

CONTINOUS BUDGETING SYSTEM

A continuous budgeting system is a method of having to different budget periods within the same budget. The purpose of having this system is to have greater control in terms of operational activities with losing site is to have greater control in terms of it results

DETERMINATION OF KEY FACTOR

The budgets are prepared for all functional areas. These budgets are inter dependent and inter-related. A proper co-ordination among different budgets is necessary for budgetary control to be successful the constraints on some budgets may have an effect on other budgets too.

REQUISITES FOR A SUCCESSFUL BUDGETARY CONTROL SYSTEM

For making a budgetary control system successful requisites are required. 1. CLARYFING OBJECTIVES: The budgets are used to realize objectives of the business. The objective must be clearly spelt out so that budgets are properly prepared. In the clear goals, the budgets will also be unrealistic. 2. PROPER DELIGATION OF AUTHORITY AND RESPONSIBILITY: Budget preparation and control is done at every level of management even though are finalized at top level but involvement of persons from lower levels of management is essential of their success. This necessitates proper delegation of authority and responsibility. 3. PROPER COMMUNICATION SYSTEM: An effective system of communication is required for a successful budgetary control. The flow of information regarding budgets should be quick so that these are implemented. The upward communication will help in knowing the difficulties in implementation of budgets. The performance reports of various levels will help top management in budgetary control.

4. BUDGET EDUCATION: The employees should be educated about the benefits of budgeting system they should be the benefits of budgeting system should be educate about their roles in the success of the success of the system. Budgetary control may not be taken only as a control device by the employees but it should be used as a tool to improve their efficiency. 5. FLEXIBILITY: Flexibility in budgets is required to make them suitable under changed circumstances. Budgets are prepared for the future, which is always uncertain, even though budgets are prepared by considering the future possibilities but still some adjustments. Flexible makes the budgets more appropriate and realistic. 6. MOTIVATION: Budgets are to be implemented by human beings. The success full implementation will depend upon the interest shown by the employees. All people should be motivated to improve their working so that budgeting is successful. A proper system of motivation should be introduced of making the system a success.

TYPES OF BUDGETS
LONG TERM BUDGETS: The long-term budgets are the prepared for a long period of five to ten years. They are concerned with planning the operations of a firm over a considerably long period of time. SHORT TERM BUDGETS: Short-term budgets are budgets prepared for a short period of one to two years. They are those activities the trend in which cannot be foreseen easily over long periods.

CURRENT BUDGETS: Current budget is a budget, is established for use over a period of time and is related to current conditions. INTERIM BUDGETS: Interim budgets are budget, which are prepared in between two budget periods. These budgets may get integrated with the budget of the following period.

CLASSIFICATION OF BUDGETS ACCORDING TO FUNCTION

OPERATING BUDGET: These budgets relate to different activities or operations of a firm. The number of such budgets depends upon the size and nature of the business FINANCIAL BUDGETS: Financial budgets are concerned with cash receipts and disbursements, working capital, financial: position and results of business operations. MASTER BUDGET The master budget is the summary budget incorporating its functional budgets. All the operational and financial budgets are integrated into the master budget.

TYPES OF BUDGETS IN DIESEL LOCO SHED

According to the nature expenditure budget are classified as under: Direct capital outlay on works Technical consultancy Incidental expenditure during construction Employee cost Other establishment expenses: Training and recruitment Preliminary expenses Misc brought out assets Cash budget Township budget

REPAIRS & MAINTANANCE

In line, with costing system following three activities can represent major classification of repairs and maintenance. Major overhaul Preventive maintenance Break down maintenance

THE DIESEL LOCO SHED REVENUE BUDGET

INTERPRETATION
The data pertaining to be generation and consumption of DLS, Kzpt have been obtained from the year 2011-2012 represented in Table1 the aspect included are total generation of in (crores rs) and utilization for auxiliary consumption, raw material consumption and lime stone respectively.

During the year 2011-2012 the sales, fixed cost, variable cost, fuel price, own consumption was decreased. When the estimated budgeted, so sales consumption is 289.0% respectively.
During the year 2011-2012 the average intensives are decreased 8.6% the other income also decreased 2.8% respectively. Finally, with regard to the resulting revenue budget of DLS, Kzpt, totally decreased 294.3% in the year 2011-2012 respectively.

Conclusions
Portraying with precision, the overall aims of the business and determining targets of performing for each section or department of the business. Laying down the responsibilities of each of the executives and other personnel so that everyone knows what is expected of him ad how he will be judged. Provide basis for the comparison of actual performance with the predetermined targets and investigation of deviation, if any, of actual performance and expenses from the budgeted figures. It helps to take timely corrective measures. Ensuring the best use of all available resources to maximize profit or production, subject to the limiting factors. Co-ordinating the various activities of the business and centralizing control.

BIBILIOGRAPHY
Financial management
Financial management

- Prasanna Chandra
-I. M. Panday

Financial management
Accounting for Management Website

-S.N. Maheshwari
-R.K. Sharma & Shashi k. Gupta -www. Google.com