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SYNOPSIS

This Project is done for the Chennai Port Trust to analyze the Budgetary Control.
For researcher various areas of vital information are:

 To find the Variance between the Actual and the Budget Estimates of the Organization for the Past Five Years.

 To find the Income and Expenses are Increasing year by year or Decreasing.

 This Project aims to make the Trend Analysis, Variance Analysis and prepare the Comparative Statement.

 This details enables the organization to have clear picture about budgetary control. This could be help the top management in arriving at a corrective decision.

INTRODUCTION

BUDGET:
 In our daily life, we use to prepare budgets for matching the expenses with income; and available funds can be invested in a profitable manner.  Similarly in government Organization, budgets are prepared on the basis of future estimated Income in order to find out the profit in a specified period.  A budget is in the nature of an Estimate and is a qualified plan for the future activities to co-ordination and controls the activities for a specific period.

DEFINITION OF BUDGET AND BUDGETARY CONTROL:
 Budgeting is a process, which includes two important functions. Budget and budgetary control. Budget is a planning function and Budgetary Control is a controlling systems or technique.  A control technique whereby actual results are compared with budget’s is known as Budgetary Control.  The exercise of control in the Organization with the help of Budgets is known as Budgetary Control.

THE PROCESS OF BUDGETARY CONTROL INCLUDES:
A budget is defined as a comprehensive and coordinated plan, expressed in financial for the Operations and resources of an enterprise for some specified period in the future.  Preparation of various budgets.  Continuous Comparison of Actual Performance with Budgetary Performance.  Revision of Budgets in the light of changed circumstances. Budgeting plays an important in any Organization. Forecasting the events, Planning allocation of funds are the major sources of Budgetary Control.

KINDS OF BUDGET:
Budgets may be divided into two basic classes: 1. Capital Budgets 2. Operating Budget Capital Budgets are directed towards proposed expenditure for new projects and often require special financing. The Operating Budgets are directed towards achieving short-term operational goals of the organization, for instance, production or profit goals in a business firm. Operating budgets may be sub-divided into various departmental of functional budgets. Sales budget, Production budget, Administrative Expenses budget, Raw –material budget, All these sectional budgets are afterwards integrated into a master budget, which represents an overall plan of the organization.

The other Types of Budgeting Known as: • Zero Based Budgeting • Performance Based Budgeting ZERO BASED BUDGETING: Each manager prepares estimates of his or her proposed expenses for a specific period of time as though they were being performed for the first time. In other words, each activity starts from a budget base zero. By starting from scratch at each budget cycle, managers are required to take a close look at all their expenses and justify them to top management, thereby minimizing waste. PERFORMANCE BASED BUDGETING: Performance Budgeting results in a Budget which present the operations of an enterprise in term of functions, programmes, activities and projects. The measurement of actual performance with Budgeted performance in terms of financial and physical is known as performance Based Budgeting. ADVANTAGES OF BUDGETARY CONTROL: There are a number of advantages of Budgetary Control: • Compels management of think about the future, which is probably the most important feature of a budgetary planning and control system. Forces management to look ahead, to set out detailed plans for achieving the targets for each department, operation and (ideally) each manager, to anticipate and give the organization purpose and direction. • Promotes coordination and communication. • Clearly defines areas of responsibility. Requires managers of budget centers to be made responsible for the achievement of budget targets for the operations under their personal control.

• Provides a basis for performance appraisal (variance analysis). A budget is basically a yardstick against which actual performance is measured and assessed. Control is provided by comparisons of actual result against budget plan. Departures from budget can then be investigated and the reasons for the differences can be divided into controllable and noncontrollable factor • Enables remedial action to be taken as variances emerge. • Motivates employees by participating in the setting of budgets. • Improves the allocation of scarce resources. Main characteristics of a Budgetary Control are: 1. It is prepared in advance and is derived from the long-term strategy of the organization. 2. It relates to future period for which objectives or goals have been laid down. 3. It is expressed in quantitative form, physical or monetary units, or both. BUDGET AND BUDGETARY CONTROL IN CHENNAI PORT TRUST: • The Budgets in Chennai port Trust are prepared to meet their expenses with their income in the forth coming year. • Budget Estimates are made on the basis of the Previous Year Income and an approval form is sent to the Government for the sanction of Amount • The Actual exceed the Budget Estimates so the necessary for budgetary control arise.

OBJECTIVE

PRIMARY OBJECTIVE:

• The Primary Objective of this Study is to explore the activities in Chennai Port in achieving the Budgeted Estimates.

SECONDARY OBJECTIVE:

• To compare the Budget Estimates and Actual of Chennai Port Trust for the Past Five Years. • To carry out the Trend Analysis, Variance Analysis and to prepare Comparative Statement.

SCOPE
Any Organization has to look back, if it wants go to forward. This study which is done at Chennai Port Trust aims at Studying the Budgetary System and the ways of making it more Effective.

 The scope of this study is to compare the Budget Estimates, with the Actuals.

 The study helps to know about the Budgetary Control at Chennai Port Trust.

LIMITATIONS
BUDGETARY CONTROL IS AN EFFECTIVE TOOL FOR MANAGEMENT CONTROL. HOWEVER IT HAS CERTAIN LIMITATION WHILE OPERATING IT AS A TECHNIQUE.  Budgeting is a process of forecasting and estimation. Forecasting may not be accurate.

 It is prepared on the basis of certain prevailing conditions. If the conditions. If the conditions change budget are also to be revised.

 The data used for this is collected only from the Income and Expenditure Statement

 At Present they are following the Zero Based Budgeting Method which is not Properly Implemented.

COMPANY PROFILE
PORT PROFILE: Chennai port is an artificial harbour situated on the coromandel cost in southeast India and it is the second principal port handling containers. Chennai port has 24 alongside berths and 1 mooring in the 3 dock viz. Dr.Ambedkar Dock, Bharathi Dock, Jawahar Dock and container Terminal the major items being handled are liquid and dry bulk.

COMPANY PROFILE: INDRODUCTION:
In the sea borne trade of India the Chennai Port is one of the most important ports in the east coast, it is growing as a hub port for handling containers in the Eastern India, In terms of volume of cargo handled the Chennai port stands in third place. The port is handling all kind of cargoes and the infrastructure avails in the port is an asset to the shipping industry in the southern region. Chennai port in one of the eleven major ports of the country. Out of seventy three thousand among the Major ports, nearly ten thousand employees are working in Chennai port the main advantage of the port is Geographical location, which caters to the needs of the user. UN the sea borne trade of India, the Chennai port is one of the most important ports in the Eastern Coast. It is growing as a hub port for handling containers in the eastern India. In term of volume of cargo handled, the Chennai ports stands In third place. The port is handling all kinds of cargoes. The infrastructure

and human resources available in the port is an asset to the shipping industry in the southern region.

INFRASTRUCTURE OF THE PORT:
The Chennai port has considerable to handle 45 millions tons of cargo. The details on the infrastructure are described as follows: Inner harbour Outer harbour Chennai port Water spread 218 acres 200 acres 418 acres Land area 413 acres 100 acres 513 acres No of berths 16 7 23

The port’s operational area is grouped into three dock system namely 1. Ambedkar Dock 2. Jawahar Dock 3. Bharathi Dock There are 23 berths distributed in the above 3 dock systems. ORGANISATION STRUCTURE AND DEPARTMENTS: Chennai port, is go reined by board of trustees numbering about 21 presenting various losers, port management agencies, representatives of labour, the customs, shipping personnel, the electricity food most [ Ministry of surface transport ] apart from the Central Government and local state government. A Deputy Chairman, who is a trustee and head of various departments, is assistant the chairman as the executive head.

THE HIERARCHIES IN THE CHENNAI PORT TRUST IN AS FOLLOWS:

CHAIRMAN ↓ DEPUTY CHAIRMAN ↓ DEPARTMENT HEADS ↓ CHIEF OFFICER ↓ DEPUTY CHIEF OFFICER ↓ SUPERINTENDENT ↓ LABOURERS

PORT HISTORY:
The little fishing village called Chennai pattinam, which was founded in 1639, became prominent during the early part of the 18th century when the East India Company was active on the East Coast. In the Harbour, to and from ships were anchored about quarter mile offshore and the cargo to and from the ships were transported through small lighters called masula boats as the loss of cargo while transporting through masula boats was high, it was proposed to build a pier to berth larger crafts and an Iron screw pile Pier was built in 1861 to a length of 1100 ft., perpendicular to the shore during November 1881, due to violent cyclone over half a mile of breakwater was breached and equipments and human lives lost. Through there was a demand for relocating the entrance, the restoration was resumed in 1885.

Port of Chennai [madras then] until the year 1875 was simply an open roadstead on open sandy coast swept by storms and occasional monsoons. Sir Frands Sprig, the then chairman of madras port trust in 1904 created a new north-eastern Entrance after closing the original eastern Entrance to control the siltation of the Chennai in front of the basin. Subsequently quays were constructed at different period[i.e.] south quay-1 in 1913, the five west quay berths in 1916 to 1920, North Quay in North Quay in 1931 and south Quay-2 in 1936 in the Inner Harbour which was later, christened as Dr. Ambedkar DOCK.

The bharathi dock originally constructed as an outer harbour to handle vessels up to [-] 16-2 m draft. An oil jetty to handle crude oil imported by the manali oil Refinery [presently Chennai petroleum Corporation Ltd ] was constructed initially during the year 1970 An Iron ore berth was constructed in the same dock in 1974 for exporting Iron ore to Japan and other far East countries subsequently one more oil jetty was constructed during the year 1985 to meet the additional demand for crude/products.

In 1970s the madras port trust started handling container traffic was increasing, a container Terminal of 380 m length was constructed at Bharathi Dock during the year 1983 as a first full-fledged container hub of the country with container storage year of 51,000 sq. m and a area. The terminal was provided with tow shore cranes and other shore facilities required for container terminal.

Subsequently the terminal was farther extended by 220 m. during the year 1991 with additional two shore cranes and other matching infrastructural facility. As the traffic was constantly increasing the terminal was further extended by 285 m, during fully 2002. This container terminal of 885 in total berth length with backup area was privatized lender concessional agreement with M/s. X Chennai container. Terminal private ltd., On BOT Basis for 30 years from November 2001.

MAJAOR PORTS

Major ports are technically well developed with reference to men and machinery.

In India, we have the following 12 major ports.

Chennai Tuticorin Visakhapatnam Phsredip Cochin Mangalore New Mormugoa Port Mumbai J.N.P Kantla

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Tamil Nadu Tamil Nadu Andhra Pradesh Calcutta Kerala Karnataka Goa Maharastra New Bombay Kutch Region of Gujarat State

GEOGRAPHY OF CHENNAI PORT
GEOGRAPHY OF THE PORT: 1. Ambedhkar Dock 2. Jawaher Dock 3. Bharathi Dock 4. AMBEDKAR DOCK Type of cargo handled Other usage Terminal Name of Berth General cargo, cars, granite steel, food grains. Passenger vessels Terminal Car Terminal Cruise Terminal North Quay, West Quay-I,II, West Quay-III,IV, South Quay I,II,III, East Quay Second container terminal

Ambedkar Dock the type of cargo handled are general cargo, cars, granite steel, and food grains. In this dock the scheduled depth meters is from 8.50 to 12.00 meters. And its quay length is of 198.00 meters to 372.00. The transist shed is attached to this dock. The E.Q services berth is 0 to 60 m from south, from south 9.00 m 60 to 372 m 12.00 m and the naval navy vessel berth is 200.00, to 60 m from north 9.00 m to 60 to 200 m 1200 m.

JAWAHER DOCK:
Type of cargo handled Other usage Terminal Name of berth Coal fertilizer, Iron one lumps, pellets, edible oil, phosperic acid Nil Nil JD,1,2,3,4,5,6.

In jawahar dock the type of cargo handled are coal, fertilizer, iron ore lumps, pellets, edible oil, phosperic acid, and there is no other usage and terminal in this dock. The names of the berths handled in this dock are 1,2,3,4,5,6. In this dock the scheduled depth is from 10.40 to 11.00 in meters and the quay length is from 218.33 meters. It has the transit shed attached and overflow shed attached.

BHARATHI DOCK:

Types of cargo handled Other usage Terminal

Container, Iron Nil i. Container terminal ii. Iron one terminal iii. Oil terminal Container ( T, 1,2,3) Iron one – B02 Oil – B 21, 3D3

Name of berth

In this dock the type of cargo handled are containers, iron ore, POL, there is no other usage in this dock. The are three types of terminal they container terminal, iron ore teorminal, and oil terminal. The names of the berths are container (T,1,2,3), Iron ore – B02, Oil – B 21, 3D3. The scheduled depth is from 355.65 to 307.50. The length between the extreme dolphins is 67.50 m on the southern side was damaged during Tsunami in 26-12-2004.

DEPARTMENTS

The Major Five Departments which have selected to use in the Study.

TRAFFIC DEPARTMENT:
It looks after all the matters relating to the provision of facilities for cargo handling. It also licenses to hawkers, controls allotment of rent stocking area, what’s rent etc.

MARINE DEPARTMENT:
It manages the movement of the ships in and out of the harbours. It guards against fire hazards in and out of the harbour.

CIVIL ENGINEERING DEPARTMENT:
It executes such formation as preparation of project, report, estimates, design and scrutinizing of tender documents, procurement of stores & protection of the employees.

ELECTRICAL AND MECHANICAL DEPARTMENT:
This department is responsible for the operational and working of the iron ore handling plant and running of port work shops, operation and maintenance of port.

SECRETARIAL DEPARTMENT:
It deals with matters like industrial relation public relation and training center and dealing with establishment matters to all department. It co-ordinates all department. It also looks after the welfare of the employees.

OUR MISSION:
The Chennai Port Trust is committed to:

 To achieve excellence in port operations through dedicated, loyal and committed workforce to enhance customer satisfaction.  Strive for continual improvement at all levels by enhancing skills, knowledge and enthusiasm to meet the needs of the challenging world.  Strive to achieve maximum values addition through the most effective use of resources.

OUR VISION:
 To become the best among all Ports in all aspects.  Empower employees for shouldering higher responsibilities resulting in job enrichment and job satisfaction.  To become the best Port in environmental management and it controlling pollution.

OUR POLICY:
 The Chennai Port Trust is committed to;  Provide efficient, prompt, safe and timely services at optimum cost.  Ensure quick turn round of vessels by providing facilities for efficient handling of cargo.  Maintain total transparency in all our transactions and  Continuously improve our services to meet the expectations of the Port Users, employees and the Society.

DEVELOPMENT OF PORT TRUST
1877- Construction of the south pier was commenced with stones brought from Pallavaram on the old Indian railway which had been opened by them and which was extended the harbour works authorities. 1881- Construction of a harbour was completed and handling of ships inside the harbour was started. A disastrous cyclone occurred on 12.11. 1881 the sea swept over the break waters from both sides of the harbour damaging the work to an enormous extent. 1906- Sir Francis Spring assumed charge as the chief engineer if the port. 1912- Construction of south quay – I was completed. 1916- A harbour office building was constructed at centre quay-of west quay berths. 1936- Construction of south quay- II was completed.. 1959- Passenger station on the 1st floor of the transit shed at north quay was commissioned. 1961- Construction of signal station was completed at north quay. 1965- Construction of outer harbour “Bhartathi dock”. 1972- Construction of oil jetty was completed at Bharathi dock. 2000- Exports of cars was started in this year. 2001- Container terminal was handed over to M/s CCTL under 30- years lease for managing and operating the terminal. 2003- Berth (574 mts) was reconstructed and a port was given to Navy for 30-years lease (200 mts)

FUTURE PLANS:
 Second container terminal with a capacity of 1 million TEU’s perannum,developed by PSA-SICAL  Master plan for port railway, realigning rail and road network  Mechanized conveyor system for coal to handle 9 MT  Dedicated evaluated expressway from Chennai Port Trust madura royal to NH4 as been approved by the government to enhance the hinterland connectivity.  Development of Ro-Ro terminal and multi level car parking facility with a capacity of 5000 cars  The break water extension from existing outer arm will be utilized to develop deep draft oil berth for handling VLCCs.

PORT DETAILS:
GEOGRAPHICAL LOCATION Latitude Longitude Climate Time Temperature Annual rainfall Spring Tides Water area Land area 13 06’N 80 18’E Tropical +5 hrs 30 minutes 30 c max 18 c min About 125 cms 1.2 meters 420.00 acres (169.97 hectares) 586.96 acres (237.54 hectares)

FUNCTION OF THE PORT

The port renders two types of services:
 Ship related  Cargo related

(i) Ship related services:
• Berthing / Un berthing of ship. • Provision of pilots to the ship. • Marine crew to provide assistance on shore while berthing / un berthing. • Provision of pilot launches. • Water supply to ships. • Bunkering.

(ii)Cargo related services:
• Labors on board. • Hire of cranes & if necessitated stevedoring, operation etc.