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COMPANY PROFILE

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We are part of one of the oldest conglomerates in India and were incorporated in October 1919. Since 1924, we have been under the leadership of late G.D. Birla, late B.M. Birla, and our current Promoter, Mr. B.K. Birla. We have diversified business interests in various sectors including tyres, cement and rayon.

We are among the top five largest tyre manufacturing companies in India by production volume for the year ended 31 March 2012 (Source : Automotive Tyre Manufactures Association 2011-12 ("ATMA")). We own and operate two integrated tyre manufacturing plants located at Balasore, Odisha (the "Balasore Tyre Plant") and Haridwar, Uttarakhand (the "Laksar Tyre Plant") with a combined total installed capacity of 298,660 MT of tyres as of 31 March 2013. Our tyres are marketed under the brand name "Birla Tyres".

We own and operate two cement manufacturing plants, located at Sedam, Karnataka (the "Vasavadatta Cement Plant") and Basantnagar, Andhra Pradesh (the "Kesoram Cement Plant"). Our cement business has enjoyed an operating history of over 40 years, catering to the regional demands in Karnataka, Andhra Pradesh and Maharashtra. Our plants are strategically located near our leased limestone deposits in the states of Karnataka and Andhra Pradesh. We have a combined total installed capacity of 7.25 million MT as of 31 March 2013. Our cement is marketed under the brand name "Birla Shakti" and "Vasavadatta Cement".

We maintain separate marketing and distribution networks for our tyre and cement operations, comprising internal sales and marketing teams of 491 persons for tyre products and 132 persons for cement products. We also have agreements with approximately 209 tyre agents and 16 cement agents and a network of more than 8,831 tyre dealers and 1,544 cement dealers as of 31 March 2013, who market our tyre and cement products. Our tyre products are primarily distributed to purchasers located across India, while our cement and clinker is sold regionally to purchasers located in Karnataka, Andhra Pradesh and Maharashtra.

710. we also manufacture viscose rayon. We plan to recommence construction of a new manufacturing unit at our Balasore Tyre Plant for the production of passenger car radial tyres with an expected capacity of 80 MT per day.5%. We have also started expansion of our existing truck and bus radial tyre manufacturing capacity. 35. Our rayon is marketed under the brand name "Kesoram Rayon".9% and 4. 9/1. while our transparent paper is marketed under the brand name "Kesophane". West Bengal.2 crore. The tyre.2% and 5. and our net loss for the year was Rs. our loss before tax was Rs. The GDRs of our Company are listed on the Luxembourg Stock Exchange. respectively. Kolkata 700 001.3 crore and Rs. 74.In addition. We own our registered office at 8th floor. respectively.5%.2 crore. We believe that this new capacity when added will make us one of few tyre companies in India that is able to offer a complete range of tyres across all vehicle sectors. Our Equity Shares are currently not traded on the CSE. respectively. Our Equity Shares are currently listed on the BSE.17 crore. For the years ended 31 March 2012 and 2013. R. Birla Building. 379. subject to certain regulatory approvals. cement and rayon (including transparent paper and chemicals) business operations contributed 62. Our rayon and transparent paper plant is located at Hooghly.6%. 32. 73. . of our total revenues for the year ended 31 March 2012 and 59.15 per Equity Share. The closing price of our Equity Shares on 21 May 2013 on the BSE was Rs. See "-On going capacity expansion initiative-Truck and bus radial expansion at Laksar Tyre Plant". 338. See "-On going capacity expansion initiative-Passenger car radial unit at Balasore Tyre Plant". 377. filament yarn and transparent paper. NSE and CSE in India. 339. 329.25 crore and on the NSE was Rs. India. Mukherjee Road.3%. As of 21 May 2013.95 per Equity Share and on the NSE was Rs.7 crore and Rs. of our total revenues for the year ended 31 March 2013. our market capitalization on the BSE was Rs.N.

It may include income. Budgeting is therefore an integral part of management in a way. MEANING OF BUDGET: It is a financial and quantitative statement. Budget is the end product of budgeting. . A systematic approach to facilitate effective management performance is profit planning and control or budgeting. From above definition it is clear that budgeting is the actual act of preparing the budget. It includes providing for the detailed allocation of expected available future resources to projects. functions. MEANING OF BUDGETING: The process of planning all flows of financial resources into with in and from an entity during some specified future period. It is the process of evolving the final statement. In other words is a pre-determined detailed plan of action developed and distributed as a guide to current operations and as a partial basis for the subsequent evaluation of performance. expenditure and employment capital. a budgetary control system has been described as a historical combination of a “goal setting machine for increasing an enterprises profits and a goal achieving machine for facilitating organizational co ordination and planning while achieving the budgeted targets”. MEANING OF BUDGETORY CONTROL: It is the process of establishing of departmental budgets relating the responsibilities of executives to the requirements of a policy. and the continuous comparison of actual with budgeted results. It is effective when it accomplishes the objectives with minimum effort and cost in order to attain long-range efficiency and effectiveness management must chat out its course in advance. either to secure by individual action the objectives of the policy a firm basis for its revision. responsibilities and time periods.INTRODUCION T BUDGET BUDGETING BUDGETARY CONTROL The management is efficient if it is able to accomplish the objective of the enterprise. prepared and approved prior to a defined period of time of policy to be pursued during that period for purpose of attaining a given objective.

ESSENTIALS OF BUDGETARY CONTROL: Budgeting. Continuous comparison of actual performance with budgeted performance. In the word of J. Initiation of corrective action to ensure that actual performance is in line with budgeted performance Revision of budgeted if it is felt that the budgets prepared are no longer relevant on account of unforeseen developments. The primary objective can be met only of there is proper communication and coordination amongst different within the organization. strategies to achieve the desired goals are formulated and tentative schedule of eh proposed combinations of the various factors of production. is the starting point for budgetary control Distribution of budgets pertaining to each function to all the relevant section within organization.First of all budgets are prepared and then actual results are the comparison of budgeted and actual figures will enable the management to find out discrepancies and take remedial measures at a proper time. . Then. It provides a method of control too. OBJECTIVES OF BUDGETARY CONTROL: The primary objective of budgetary control’s to help the management is systematic planning and in controlling the operations of the enterprise. Budget influences strategies that need to be followed by the originations. which helps in planning and co ordination.A Solt “budgetary control is the system of management control and accounting in which all operations are forecast and so as possible planned ahead and actual results compared with the forecast and the planned ones. It cultivates forced planning aiming managers. Thus the objectives can be stated as: 1. which is the most profitable for the defined period. A budget is a means and budgetary control is the end result. PLANNING: Businesses require planning to ensure efficient and maximum use of their resources. The first step in planning is to define the broad aims and objectives of the business. or the process of preparing the budget. The budgetary control is continuous process. Collection of actual data pertaining to till budgeted activities.

COMMUNICATIONS: All people in the organization must know the objectives.  To analyze the budgetary system in practice in Kesoram Cement Industries Limited with particular reference to their objectives and phases of organizational and re-appropriation. 3. It also helps to identify weaknesses in the organization structure. . CO-ORDINATION: Co-ordination is managerial functions under which all factors of production and all departmental activities are balanced and integrated achieve the objectives of the organization. Budget’s also from the basis of performance evaluation in an organization as they reflect realistic estimates of acceptable and expected performance. The study aims at evaluation and modification to the current budgetary system with reference to the various types of budgets. 4. The scope in the formulation of performance budget is also studied. OBJECTIVES OF STUDY  To provide the material frame work of budget and budgetary control  To describe the profit of the organization as a backdrop for undertaking a study of budgetary control system. Budgeting provides the basis for individual in all department to exchange ides on how best the organizations objectives can be realized. They must have a clear understanding of their part in the organizations goals. This is made possible by ensuring their participation in the budgeting process. Variances are highlighted and corrective action can be initiated. This removes unconscious bases against other departments.  In addition to the analysis of the conventional budgetary system in practice in Kesoram Cement Industries Limited.2. policies and performances of the organizations. CONTROLS AND PERFORMANCE EVALUTION: Control ensures control by continuous comparison of actual performance with the budgeted performance. Executives are forced ot think of the relationship between their department and the company as a whole.

the study is restricted to Kesoram Cement only. manuals and other published material of the company. Accounting books. SCOPE OF THE STUDY: Since it will not be possible to conduct a micro level study of all cement industries in Andhra Pradesh. records.       Form the concerned officers of the Kesoram Cement Industries Limited Kesoram Cement Industries Limited journals.. SECONDARY DATA: All the secondary data used for the study has been extracted from the annual reports. Statistical records Kesoram Cement Industries Limited library. have been collected mainly from secondary sources viz. . METHODOLOGY: The proposed study is carried with the help of both primary and secondary sources of data. PRIMARY DATA: The primary data is collected by interacting with the finance manager and other concerned executives at the administrative office of the company. Key books of concerned title.SOURCES OF DATA: The data of Basanth Nagar Kesoram Cement Industries Limited.

google. PANDEY  88TH ANNUAL REPORT OF KESORAM CEMENT INDUSTRIES LIMITED  FUNDAMENTAL OF FINANCIAL MANAGEMENT PRASANNA CHANDRA www.BIBLIOGRAPHY  FINANCIAL ACCOUNTING  FINANCIAL MANAGEMENT RP TRIVEDI I.M.com .