BUDGET AND BUDGETORY CONTROL

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INTRODUCTION OF COMPANY
M/s A B Sugars Limited (ABSL) is a private sector company with varied business interest including sugar, ABSL, formerly known as Guru Teg Bahadur Sugar ltd, It was taken over by Chadda Group in the year 1997, operates the sugar plant in village Randhawa in Dasuya Tehsil in Hoshiarpur District in Punjab, The capacity of Sugar Plant is 7000 TCD, It is from those few Sugar mills who have ushered in the new technologies in business such as installation of DCS (SCADA) system for mill.

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Continued..
Due

to emphasis on the quality throughout the process, it produce high quality of sugar both in terms of grain size and color which leads to better realization in comparison to competitors, It have installed high pressure and efficient boiler and turbine to generate power to the tune of 33MW,excess power about 20MW is exported to Grid and sold to Punjab State Electricity Board. Company have bio composting process in its Distillary.In bio-composting process windows are prepared from press mud which is available from sugar unit.
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OBJECTIVES OF PROJECT

To analyze variance of actual performance with the target set. To highlight the key areas where actions needs to be taken. To learn and understand the budget forecast, activity planning, preparation of budget, monitoring and controlling of budget,

To

ensure availability of adequate working capital for

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efficient operation of plants,

WHAT IS BUDGET .???

Budget

is companys income and expenses for some

period in the future.Budget.

With

a budget,a company is able to carefully look at

how much money is taking in a given period by a company and figure out the best way to divide it among a variety of categories.

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PREPARTION OF BUDGET
1. 2. 3. 4. 5. 6.

Definition of Objectives, Identification of budget factor, Budget Committee and Controller, Budget Manual, Budget Period, Standard of Activity or Output.

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TYPES OF BUDGET
(a)

Long term term Fixed Master Budget Sales Budget Budget

(b) Short (c)

(d) Flexible (e) (f)

(g) Purchase

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WHAT IS BUDGETING..??
Budgeting

ia an exercise in allocating scarce economic

resources among alternative uses.The necessity of budgeting arises out of the scarcity of economic resources and the number of alternative uses in which these scarce resources can be deployed.

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OBJECTIVES OF BUGETING..??

To prevent wastes. To control economic expenditures. To ensure availability of adequate working capital for efficient operation of plants. To ensure adequate return on capital employed. To identify and bring to the light areas where prompt action / remedial actions are required to be taken up by the management.

To facilitate the control process by comparing actual 8/29/12

WHAT IS BUDGETORY CONTROL..??

No

system of planning can be successful without having an effective and efficient system of control. Budgeting is closely connected with control. The exercise of control in the organization with the help of budget is known as budgetary control.

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PROCESS OF BUDGETORY CONTROL Establishment of budget for each function and section
of the organization.
Executive

responsibility in order to perform the

specific tasks so that objectives of the company may be attained,

Continues comparison of the actual performance with that of the budget and placing the responsibility of executives for failure to achieve the desired result a given in the budget.
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TECHNIQUES OF BUDGETING
(a)

Variance Analysis , Adjustment of funds , Budgeting.

(b) Responsibility Accounting, (c)

(d) Revised

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TECHNIQUE OF METHODOLOGY AT ABS ltd. ABS LTD. follows ZERO BASED BUDGETING
system to prepare its budgets.
Zero

Base Budgeting is an expenditure control device

where each divisional head has to justify the requirement of funds for each head of the expenditure and prepare the budget accordingly, without reference to the past budget.

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ADVANTAGES OF ZBB

Priority allocation of scarce resources. It ensures the maximum efficiency and the areas of wasteful expenditures are easily identified and eliminated.

It provides opportunity to the management to allocate resources for various activities only after having a thorough cost-benefit analysis.

The technique can be used for the introduction and implementation of the system of Management By 8/29/12

RESEARCH METHODOLOGY
exploratory

research and personal interviews, It is unstructured and informal way to get information about the company, all other related data to complete project had collected through the research and survey, Experience survey had been conducted in order to gather information from the knowledgeable person on the issues relevant to the research project

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DATA COLLECTION
Primary

data-

i). Budgetary control as periodic systems,,

ii).Company websites,

Secondary datai).Balance sheet, ii).profit and loss account, iii).annual budget,

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PROBLEMS
1. 2. 3.

Time limitations, Unable to visit store locations, No physical record generated by the company, in production exposure.

.Lack

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SUGGESTIONS

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CONCLUSION

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