Professional Documents
Culture Documents
Jai Project2
Jai Project2
MEANING OF BUDGET
DEFINITION OF BUDGET
MEANING OF BUDGETING
Budgeting refers to the process of preparing the budgets. It involves a detailed study of
business environment clearly grasping the management objective, the available
resources of the enterprise and capacity of the enterprise.
DEFINITION OF BUDGETING
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1.2 STATEMENT OF THE PROBLEM
Planning is essential in every type of company. Finance is the life blood of the organization.
Planning is very much important to forecast the financial performance of the company. Preparing
various budgets is very essential to forecast the future related activities of the company from time
to time particularly it is related to cost, sales & profit. To stand in the competitive environment
ever company has to prepare the budget in a effective manner without any deviations.
Without preparing & following the budgets the company cannot predict their future outcomes.
To forecast the future cost, sales& profitability position of the company the budgeting is the major
key to take this as the base for this research.
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1.3 OBJECTIVES OF THE STUDY
Primary objective
To study various budgeting and cost control techniques in kakkalur technokrat’s ltd.,
Secondary objectives
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1.4 NEED FOR THE STUDY
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1.5. SCOPE OF THE STUDY
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1.6 LIMITATIONS OF THE STUDY
The study of financial statement analysis on kakkalur technokrat’s pvt ltd, Tiruvallur is having
its own limitations as detailed below:
Duration of the study for period of the one month is one the limiting factor for this study
The availability of data pertaining to five years is one of the constraints.
Any change in the methods or procedures of accounting systems limits the utility of
budgeting.
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1.7 Industry profile
pathak Machine Tools Pvt Ltd is the manufacturer and dealer of Electronic
Diesel Fuel Pump Test Bench Machine. The Electronic Diesel Fuel Pump Test
Bench Machine falls in the category automobile garage machineries.
The Electronic Diesel Fuel Pump Test Bench Machine is an effective machine
for testing of diesel fuel injection pump functions of automobiles. The salient
features of Electronic Diesel Fuel Pump Test Bench Machine are as follows:
• Machine fitted with Electric Controls such as: Push Buttons Starter,
Reversible Switch and no Volt overload relays within easy access of the
operator.
• Accessories such as: Driving attachment for Rotary Pumps, Flexible Steel
Coupling & Heating Unit can also be provided with the machine on demand.
Diesel Fuel Pump Test Benches comes equipped with A.C frequency
controlled panel to attain infinitely variable speed from 0 to 3000 RPM in
both the direction. The Benches are equipped with Bi-directional swiveling
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measuring console. The Benches are durable that ensures long lasting life.
The Diesel Fuel Pump Test Benches is capable of providing efficient
performance.
• Durable
Auto Electrical Test Bench is equipped with a 220V single phase 2HP 1440
RPM motor. The Test Bench is equipped with fixed load resistances of 5A,
10A, 20A and 40A to give a wide range of currents from 5A to 75A for 12V
alternators and 10A, 20A and 40A to give currents from 10A to 70A for 24
volts alternators. The Test Bench is made using quality grade material that
ensures good quality. The Auto Electrical Test Bench is durable that ensures
long lasting life.
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• Equipped with a 220V single phase 2HP 1440 RPM motor.
• Equipped with fixed load resistances of 5A, 10A, 20A and 40A to give a
wide range of currents from 5A to 75A for 12v alternators and 10A, 20A and
40A to give currents from 10A to 70A for 24 volts alternators
Motor industries co [mico] has developed a user friendly and compact, hi tech
auto electrical test bench, model h-s/efep 145. The test bench facility enable
easy, fast and accurate testing of wide range of alternators and starting
motors. The auto electrical test bench are easy to operate with two running
speeds,to ensure thorough testing both at higher and lower speeds. The model
h-s/efep 145 also include vacuum testing and is ideal for functioning at a
workshop. The salient characteristics include table top model, built in power
source for free run testing of starter motor [no requirement of external
battery], capable of testing 12/24 system, with digital ammeter/voltmeter for
easy reading, provided with vacuum testing arrangement and 6 v dc for
testing excitation winding and 40/80 v ac for testing shorting of
armature/stator/rotor. The h-s/efep 145 are available with technical
specifications such as 2.2 kw drive motor capacity, 3-phase and 415 v supply;
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12/24 v starter motors up to 150 a free running current and 14 v alternators
up to 120 a capacity and 28 v alternator with up to 75 a capacity can be tested;
vacuum pump alternators up to 730 mm hg can be tested. These models come
in 900 [l] x 750 [b] x 550 [h] dimensions [mm] and 120 kg weight.
Features :-
Features :-
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Power Supply 440V 15 AMP
INSTRUMENTATION
PROTECTION
VICE
Heavy Duty Fast Mounting vice for Alternators & starters. Maximum dia of
device under test 175 mm.
the Central Illinois. We service all makes models of cars, trucks, construction,
farm, marine, and aircraft ground support vehicles.
Additional Features: -
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4. Alternator Fault light 12 / 24 V
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performs regular clinics for the organization and is involved with technicians
training program for a few national and regional electrical remaunfacturer.
Our Facility
We have a modern 6500 Sq.Ft facility with 8 bays that can accommodate
larger vehicles. We have computerized state-of-art alternator and starter test
benches that analyze a variety of component parameters and issues
performance reports along with PC based scope (Pico) and Scan tool (Ease &
Auto Enginuity). We are a member of APRA (automotive Parts
Remanufacturers Association) as well as SAE and are ASE certified.
DIMENSION
Features:
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• High in functionality
Further Details:
Ampro EPI-1
Diesel Common Rail High Pressure Pump, Injector & Rail Tester
For the testing and cleaning of Common Rail High Pressure Injectors with
air operated high pressure pump.
Key Diagnoses:
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• Bosch
• Delphi
• Denso
Features:
• Volumetric Testing
Control Panel:
• Fully programmable (CPU) control panel for future updates and for
test-plans.
• A user-friendly menu.
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• Stylish enclosure designed for bench top use.
Operating range:
• For the testing and cleaning of Common Rail High Pressure Injectors
with air operated.
Established in the year 2005, we are one of the professionally managed organizations, engaged
in manufacturing and exporting of electric panels and other automation equipment. Moreover,
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the hard work and sincerity of ours has led us achieve the prestigious ISO 9001:2008 Certificate,
which has brought our company to new heights of growth and prosperity.
Our product range includes Auto Electrical Diagnostic Equipments, Computerized Alternator
Test Equipment, Fuel Injection Pump Test Bench, Automobile Electrical System, Alternator
Test Rigs, Starter Test Rig, Automobile Electrical Parts Testers, Starter Test Bench, Alternator
Test Bench, Diesel Fuel Pump Test Bench, Control Panel, ETP Panels, Furnace Control Panels,
RO Panels, PLCC Panels, MCC Panels, APFC Panels, SCADA Based Control Panels and many
more.
Operating in the industry since a long time, we have gained industry experience and are
committed to offer our clients the products as per their requirements. Keeping pace with the
time we have ensure to adopt newer technologies so as to deliver a superior range of products,
which meet the international standards of quality, functionality and reliability. Leveraging on
latest technology, we are the pioneers to have designed a compact auto-electrical test bench.
Company Profile
Basic Information
Business Type
• Manufacturer
• Exporter
• Supplier
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• Service Provider
Key Customers
Industry
Registered Address
Plot No. 42, Senthil Nagar, Neelankarai Canal Road, Seevaram, Perungudi, Chennai,
Tamil Nadu - 600 096, India
Year of Establishment
2005
Proprietorship Firm
Proprietor Name
Mr. B. K. Muralidaran
Annual Turnover
18
Infrastructure
Location Type
Urban
Building Infrastructure
Permanent
Size of Premises
11 to 25 People
Statutory Profile
AHZPM9425F
847662C
33210924677V
0407014683
Banker
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• Lakshmi Vilas Bank
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Testing Equipments and Automation Control Panels Share:
Technokrats has developed Alternator Test Bench to test the speed against voltage
performance of the alternator motors.
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The alternate test bench consists of electronic instrumentation to capture voltage, current,
load readings along with motor rpm.
Control Panel
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We also provide electrical control panels which can be used for varied processes and in
various industries. Our range of control panels is available in different models and
operating capacities to suit various applications. We design and manufacture control
panels for hydro pneumatic systems. These control panels are appropriate for all types of
Hp working,
PLCC Panels
MCC Panels
RO Panels
AFC Panels
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A brief review of literature would help the researcher, reader and other research scholars in
gaining an insight into the studies, which were made in areas related to the subject of this study.
The findings of some of the studies are briefly summarized as follows;
Budgeting
According to (Merchant, 1982). Merchant a budget is a result-oriented control system. This form
of control involves holding employees responsible for certain results. This type of control is
future-oriented and means that targets have to be set by management and that employees have
to be motivated to reach these targets.
According to Horngren, Sundem and Stratton there are three major benefits of budgeting
(Horngren, 2005):
1. Budgeting compels managers to think ahead by formalizing their responsibilities for
Planning.
2. Budgeting provides definite expectations that are the best framework for judging subsequent
Performance.
3. Budgeting aids managers in coordinating their efforts, so that the plans of an organization’s
Subunits meet the objectives of the organization as a whole.
Horngren further states that a budget is a tool that aids managers in both their planning and
control functions.
Vosselman gives the following definitions for a budget (Vosselman et al., 2008):
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The origin of the word budget is the Latin bulga, a little pouch or knapsack, which may have
come from a Gaulish source that is related to the Irish blog, “bag”. The word turned up in English
in the fifteenth century, having traveled via the French bougette, a diminutive form of bouge,
“leather bag”. Its first meaning in English indeed was “pouch, wallet, bag”, and followed its
French original in usually implying something made of leather. By the end of the sixteenth
century, the word could refer to the contents of one’s budget as well as to the container itself.
this in the figurative sense of a bundle of news, or of a long letter full of news, and the word
formed part of the name of several defunct British newspapers, such as the Pall Mall Budget.
The connection with finance appeared first only in 1733, as the result scurrilous pamphlet
entitled The Budget Opened. The allusion was that the government minister responsible for
financial affairs opened his budget, or wallet, to reveal his proposals. It probably also echoed
the Idiom to open one’s budget, “to speak one’s mind”, which was current then and continued
to be so down into Victorian time. If he survived a few years, the pamphlet writer must have
been chagrined to see his intended victims expropriate his satirical term and turn it into political
jargon. By the1760s, it was clearly well established, and has been the standard term ever since.
But it was only in the 1880s that it began to be used as a verb in the sense of planning one’s
expenditure, and the attributive meaning of “inexpensive; suitable for someone of limited
means” was first recorded only in 1958
Budgets help managers plan for the future. However, managers also use them to evaluate what
happened in the past. They use budgets as a benchmark – a measure of estimated or desired
performance – against which they compare actual performance. Business owners and managers
need to budget their resources – which include everything from raw materials to human
resources to facilities – to make the best and most profitable use of what they have to work with.
Budgets highlight potential problems and advantages early, allowing managers to take steps
to avoid these problems or use the advantages wisely. All managers do some kind of planning
Review of literature
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All anticipated costs should be covered. Refer to the Developing Budgets section for more
guidance.
Because a clinical trial contract is a fixed-price agreement, you are obligated to perform the
work described in the contract, even if your actual costs exceed the total contracted amount.
Also, in most cases you receive payment as milestones. Often costs are incurred costs without
reaching a milestone. Therefore, a clinical trials budget focuses more on the milestones. A
standard budget format can be found on the .
In developing the clinical trial budget, you should estimate the number of patients that may be
enrolled in the study and multiply that by the milestone payments of each patient. This will
estimate the revenue planned for the study. Then, estimate the expenditure budget based on the
overall costs of delivering the study. Most clinical trial agreements provide for number of
payments associated with the start-up of the study. These costs are normally; 1) an IRB fee, 2)
a pharmacy set-up fee, 3) a CTO fee, etc. This process ensures that regardless of the patient
enrollment, WSU will receive reimbursement for costs it did incur.
Most proposals span a number of years. It is important that in the development of the budget a
provision for the “inflation” is used in order to appropriately plan for increased costs. WSU
recommends using a 3% inflation factor for subsequent years. Any significant increases or
decreases, and budgets with increases above the standard rate must be justified. Contact your
GRANT AND CONTRACT OFFICER in SPA to find out if the sponsor has a predetermined
increase.
Materials and supplies encompass all consumable or disposable items. Included in this category
are lab supplies, chemicals, etc.
Laboratory animal purchases are normally put in this category. List the animal species and numb
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The university defines capital equipment as moveable items with useful lives of more than one
year and costs of $5000 or more per unit (items not meeting this definition should be listed as
supplies in the budget).
The budget should list the specific equipment items and their estimated purchase or lease costs.
Shipping and installation should be budgeted. If installation involves substantial structural
changes, these costs should be budgeted as renovations and alterations. Maintenance costs of
equipment already available to the researcher can be budgeted under the Other Category of the
budget.
General purpose equipment refers to items not limited to scientific or other technical
use. Examples of this type include office equipment, office furnishings, computers, etc.
General purpose equipment typically is used for multiple activities so it is inappropriate
to charge its entire cost to a single project. If it is determined this type of equipment is
required, the need should be fully explained in the budget justification.
Specialized equipment can be used only for specialized scientific or technical purposes
and is allowable if it is needed to conduct the project. The need should be fully explained
in the budget justification.
The cost of conducting projects can be categorized in two ways: as direct costs, or as indirect
costs, which are referred to as facilities and administrative (F&A) costs.
Direct costs are defined as "those costs that can be identified specifically with a particular
sponsored project relatively easily with a high degree of accuracy." For example, the purchase
of a chemical reagent for a specific experiment is a direct cost to the project. Direct costs must
be reasonable - what a prudent person would spend; allocable - limited to that portion of
expenses directly benefiting the project; and consistently treated by the university as direct
charges.
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By contrast, F&A costs are defined as "those that are incurred for common or joint objectives."
In other words, F&A costs are costs that cannot be specifically attributed to an individual
project. Examples of F&A costs include the services of the accounting staff, the cost of a roof
or utilities for a building housing several research projects, office supplies, postage, local
telephones, or salaries of personnel engaged in providing a broad range of departmental support
activities.
When preparing a proposal budget, the F&A costs are expressed as a percentage of the direct
costs of the project. The appropriate rate and basis to be used is driven by two characteristics of
the program. First, you must determine if the project is conducted “on-campus” or “off-
campus”. The driving factor here is where is the majority of costs incurred. (Note: the costs refer
only to the WSU costs; if there is one or more subcontractors, their costs should be ignored.)
After that determination is made, the second factor in determining the appropriate F&A rate is
the classification of the activity to be undertaken. There are three possible classifications: 1)
Instruction, 2) Research, and, 3) Other Sponsored Activity. These classifications, as defined by
the Federal government, are a follows:
Instruction means the teaching and training activities of an institution. Except for
research training as provided in subsection b, this term includes all teaching and training
activities, whether they are offered for credits toward a degree or certificate or on a non
credit basis, and whether they are offered through regular academic departments or
separate divisions, such as a summer school division or an extension division. Also
considered part of this major function are departmental research, and, where agreed to,
university research.
Organized research means all research and development activities of an institution that
are separately budgeted and accounted for. It includes:
(a) Sponsored research means all research and development activities that are
sponsored by Federal and non Federal agencies and organizations. This term
includes activities involving the training of individuals in research techniques
(commonly called research training) where such activities utilize the same facilities
as other research and development activities and where such activities are not
included in the instruction function.
(b) University research means all research and development activities that are
separately budgeted and accounted for by the institution under an internal
application of institutional funds. University research, for purposes of this
document, shall be combined with sponsored research under the function of
organized research.
Other sponsored activities means programs and projects financed by Federal and non
Federal agencies and organizati0ons which involve the performance of work other than
instruction and organized research. Examples of such programs and projects are health
service projects, and community service programs.
Once the determination of the appropriate rate had been made, it should be included in the
budget. Remember, some programs have restriction on the amount or rates that can be used.
Check the sponsor's guidelines or consult with your Grant and Contact Officer to understand
any
The rate that is used at the time of the application is utilized for the entire award period
regardless of the changes in a subsequent year or budget period.
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Some programs are specific to providing funding only for trainees or participants. The term
TRAINEE is used to refer to WSU-enrolled students who are receiving support from the
sponsor. An example of this is National Institutes of Health (NIH) trainees who receive support
as they continue their studies or residencies. The term PARTICIPANTS is used to refer to
non-university individuals who receive support. An example of this would be an individual
receiving support to attend a conference or professional development workshops. In either case,
a budget line should be listed for the different type of support they may be receiving. In the case
of trainees, types of support would include stipends, research supplies, tuition, travel and health
care benefits. Participants often receive travel and subsistence support on a regular research
grant. In both cases, be sure to read the program guidelines to understand amounts available for
support.
Most funding agencies issue various forms of proposal solicitations that can be called requests
for proposals (RFPs), request for applications (RFAs), program announcements (PAs) or
funding opportunities announcements (FOAs). Whatever term the agency uses, the solicitation
is a researcher’s point of reference for the entire proposal development process. Most
solicitations include a variety of items such as: the goals and objectives of the agency; scope of
the project; general and specific topics to be addressed; budget requirements; outcomes;
eligibility requirements; timelines and deadlines; and review criteria. Most agencies require
clear compliance with every element of the solicitation in order to justify review of a proposal;
many are rejected by agencies even before they are evaluated on the basis of not following the
solicitation requirements. If aspects of a solicitation are unclear, a researcher can often
communicate with a designated program officer or another individual responsible for fielding
questions.
In addition, some solicitations may limit the number of proposals that an eligible institution may
submit. This limitation can be inserted by: 1) limiting the number of proposals from any given
entity, or 2) requiring a preliminary proposal or letter of intent. If you encounter a solicitation
that limits the number of proposals an institution can submit, go first to WSU' web site. Funding
opportunities with limited submissions are coordinated internally by the Office of the Vice
President for Research and an internal deadline for submitting an abstract should be listed on
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the website. If you do not see your funding opportunity listed, and include a link to the funding
announcement in your e-mail. If the solicitation requests a preliminary proposal, usually a
shorter version of the proposal, the deadline is typically months prior to the full proposal
deadline. Sponsors review these and then reduce the number of applications eligible to submit
full proposals.
Reading a program solicitation for the first time can be overwhelming. However, by planning
early, developing clear timelines and creating content outlines using the solicitation as a guide
for writing, the process is manageable.
Cost sharing consists of the portion of the total costs of a sponsored project that is born by WSU
or a third party. These funds are generally contributed from the department's general fund, an
indirect cost return fund or other non-restricted funds identified by the appropriate department
personnel. Funds obtained under another research project (grant or contract) are generally not
allowed for use to meet cost sharing obligations.
Mandatory - The funding agency requires the university to contribute funds to accomplish
the goals of the research project. The mandate is typically stated in the Request For
Proposal (RFP). The researcher must specifically state the cost sharing details in proposal
documentation.
Voluntary Committed - Although the agency does not require cost sharing, the university
has indicated that it plans to either contribute effort or other funds, to aid in the
accomplishment of the research goals. If the university includes this commitment in the
proposal documentation, the university must adhere to it and track it separately in the
financial management system. The commitment may either be found in the budget, or
within the budget justification or a project narrative.
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Voluntary Uncommitted - The department plans to contribute effort or other funds, to the
project but the obligation was not stated in the proposal submitted to the agency. The
university is not required to track this obligation separately in the financial management
system.
How are cost sharing expenses recorded, reported (when appropriate) and reconciled?
Recording and Reconciling - The university is required to track both mandatory and
voluntary committed cost sharing obligations in the financial system. Funds are
established in Banner by SPA's grant and contract officers. Budgets are funded, reconciled
and updated by SPA's accounting services group.
Reporting - In most cases, agencies that require a mandatory cost sharing obligation, also
require the university to report those costs on a periodic basis. This way, they are given
assurance that the university is contributing as stated in the proposal. Cost sharing
expenditures are reported to the agency via the Financial Status Report (FSR). The FSR
is completed by SPA's financial team and/or billing group.
Please take note of a few important process revisions that have taken place:
• Drafts of the verification forms are emailed to department representatives for validation. SPA
allows 15 days to confirm the information or recommend changes. If the department does not
respond within the period allotted, the cost sharing fund is funded using the information
provided to the department in the draft.
• Once the entry has been completed to fund the budget, a finalized copy of the verification form
will be imaged and available to view via the Researcher's Dashboard.
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Who in SPA to Contact for Cost Sharing Inquiries/Concerns?
SPA's accounting services group has been established to address the research community's
questions or concerns relating to grant/contracts. If there are general questions concerning these
funds, contact any member of this team and they will assist you.
If there are specific questions concerning expenditure reporting, contact a member of the SPA
financial team. Questions concerning fund establishment can be directed to your grant and
contract officer.
Hopefully at the time you decided to go forward with your proposal submission, you also
notified your Grant and Contract Officer (GCO) of your intent (see link to the right to identify
your GCO).
Some agencies require institutional and/or individual registration if you intend to apply for a
grant, as is the case with many federal agencies. You may request individual login access or
reactivate your login to NIH and/or NFS agency by clicking on the respective link: Note: this
process can take anywhere from 3-5 days if Institutional registration has not already been
obtained. Additionally, you will need to download the appropriate software system requirements
for your PC or MAC or higher, and to allow you and your GCO to submit your to verify if
your Adobe software version is compatible with Grants.gov.
WSU utilizes an internal electronic submission process through . This process requires all
proposals, with their requisite approvals and signatures, to be submitted electronically to WSU's
All funding agencies require some level of institutional approval of applications they receive.
Most agencies, especially federal ones, require approval from the university's Authorized
Official(AO). At WSU, our AO is your Grant & Contract Officer (see link to the right to identify
your GCO); however, there are some agencies that may require a department and/or dean’s
signature in addition to the Authorized Official (GCO) or only a departmental chairs and/or a
dean’s signature. In these cases, it is best to contact your GCO for procedure and approval.
Since involvement in a sponsored project requires personnel time, departmental space and
resources, and possible compliance and regulatory issues, all department heads for the key
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personnel, whether paid or not, and the deans or a designee of all participating units must review
and approve the proposal through eProp/COEUS. This routing occurs electronically and
automatically within eProp/COEUS.
Personnel who have approval responsibility should regularly check their inbox. See for more
information on how to retrieve, review and approve proposals. To ensure efficient handling of
these proposals, every approver must have at least one alternate approver. Proposals in process
are routed to both primary and alternate approvers.
No application may be submitted to any external sponsor without the prior approval of the
university.The signature of the institution's authorized official (AO) is necessary to show
university compliance with sponsor and government regulations, acceptance of responsibility
for the administration of the sponsored project, including the provision of adequate facilities
and services, and compliance with applicable university policies and procedures. Authorization
may also represent pre-acceptance of terms and conditions of an award. The WSU Board of
Governors has authorized the Vice President for Research to designate signature authority on
sponsored projects to the Office of Sponsored Program Administration.
Reviews cost sharing commitments and prepares necessary cost share supporting
documentation
Reviews proposal format requirements, page limitations, etc. with the PI/PD and/or other
administrative support staff
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What should you do during the several months duration in which the funding agency goes
through the process of reviewing your proposal and obtaining peer review on the proposals
submitted? We provide you with two sets of advice: one from faculty and one from our
Research Compliance Office. Both are important, and can be accessed by viewing the drop-
down menu on the left.
In addition, if you are interested in viewing previous Professional and Academic Development
Seminars on what takes place during an NIH or NSF review process, please see the Relevant
Links bar on the right
Don’t get angry or discouraged as you read the comments of the reviewers. Don’t
respond immediately – or alternatively, type a response if you need to vent, but don’t
send it.
When you’ve calmed down, re-read the reviews carefully. Waiting a few days is
appropriate, but waiting a few months may deprive you of the courage to deal with the
issues.
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It’s a good idea to have an experienced grant writer review the comments from the
funding agency. Someone who has been through both writing and review committee
experiences can better understand the nature of the criticism and provide an in-depth
explanation of what the reviewer is saying.
Some faculty recommend reading the reviews alongside the proposal. They’ll read one
comment at a time, go to the corresponding section of the proposal and re-read that
portion with an open eye. Might the reviewer be correct or even partially correct? Did
the reviewer point out something that you might not have thought about, or might have
thought about but did not address adequately? Did she/he misinterpret something
because it wasn’t quite clear in the proposal? Remember that this is a learning process
and think of the comments as a helpful guide to improve your next proposal. Therefore,
don’t take the comments as a personal attack on you. The reviewers may be blunt in their
assessment, but their job is to detect inconsistencies and logical or methodological flaws,
question assumptions and demand perfection.
If the founder declined to review your application, you might want to contact your
program officer to see if you can obtain information on what happened. If reviewers
found major flaws, you’ll have to correct them and will probably need to re-submit your
proposal at another agency. If your program officer can’t provide tangible advice, it
helps to have a mentor or someone else in your department go over the proposal and
help discern what might be problematic.
Occasionally, we hear faculty opine that a review panel did not have sufficient expertise
to provide an appropriate review. Did that happen despite the fact that you read carefully
the agency’s mission statement for congruence with your research topic and talked to
the program officer before submitting the proposal? If so, a friendly call to your program
officer might be helpful. If not, take the time to contact the program officer (via e-mail)
and ask for an appropriate time for you to call to ask questions your research topic and
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how appropriate it sounds to the agency’s mission.
Did your mentor or a group of faculty review your grant before you submitted it? If they
did and could not find anything to correct, think about finding someone who is a bit more
discerning who can offer helpful advice. The Office of the VP for Research will help
identify a mentor if you can’t find one. Contact Sarah James (sjames@wayne.edu) for
more information. It will be very important to have your next submission reviewed
before it is submitted, and for you to be able to explain what you did to respond to the
reviewers’ comments.
When a researcher initiates a research project she/he must be aware of, and comply with, an
array of federal, state and university regulations regarding a variety of issues such as research
integrity; conflict of interest; and use of human subjects, vertebrate animals, biohazardous
materials, radioactive materials and controlled substances. Other projects involve legal issues
regarding intellectual property and patents. This section discusses some of these issues and
provides guidance as to how to assure that a research project meets all reporting requirements.
First and foremost, there is a project to be completed based on the proposal which was
awarded. The award document functions as the framework under which the project should
be completed. It should identify the required reporting (technical and financial) outline the
rules and guidelines that govern the project. It is incumbent on the PRINCIPAL
INVESTIGATOR and their staff that they understand the agreement and execute the work
under these guidelines
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Most sponsored program agreements, regardless if they are a grant, contract or other type of
agreement, have a number of reporting requirements throughout the life of the agreement.
Fulfilling these reporting requirements is one of the responsibilities WSU agrees to when it
accepts funds to complete the work. Therefore, it is critically important for the success of the
project, the relationship with the sponsor and the reputation of the university that effort is
expended to meet these obligations.
The Principal Investigator (PI)/Project Director (PD) is responsible for promptly submitting any
required technical or progress reports. The sponsor’s award notice or contract specifies the
required frequency of reports and the sponsor's expected dates. Inform the sponsor promptly of
any delays. Before drafting a report, review the award terms and sponsor policies to see if a
specific report form or style is required. Failure to comply with reporting requirements could
result in withheld or incomplete payments from the sponsor. The Principal Investigator
(PI)/Project Director (PD) and departments are responsible for covering payments not received
because technical or progress reports were not appropriately submitted.
Invention Reports
Any invention conceived or first brought to practice that is related to the inventor’s work
assignment or was invented using university resources is owned by the university and subject
to any rights of the sponsor. Inventors have obligations to report these inventions to the
university and the sponsor. A Principal Investigator (PI)/Project Director (PD) should
coordinate this disclosure with WSU's Technology Commercialization (TC) office (see the
Relevant Links bar on the right).
Through the course of the project, there may be a situation that arises that was not planned for
during the proposal development. In general, any substantial deviation from the agreed-upon
project probably needs prior approval from the sponsor. However, all awards have their own set
of guidelines so it is necessary to understand the rules governing your specific award. You can
38
check the award document, the sponsor's policy guidelines, or contact your Sponsored Program
Administration Grant and Contract Officer (see the Relevant Link bar on the right to identify
your officer) if questions arise.
Many of the changes that occur in the course of a project can be handled internally. In many
cases, the university has been delegated authority to approve certain changes. These changes
need to be coordinated with the Sponsored Program Administration office so be sure to
communicate these situations prior to their occurrence.
The below rules are general guidelines when administering awards from our federal sponsors.
These are monitored and published by a federal work group. To obtain the latest set of rules,
please review.
Remember that all sponsors provide guidelines at the program and grant level. You should
always check with your Sponsored Program Administration Grant and Contract Officer for
advice regarding changes.
Below is a list of program/project changes for which WSU may retain authority to approve, all
related to re-budgeting among budget categories, including direct and indirect categories:
However, there are some changes that require the approval of the sponsor. Again, these changes
need to be requested in advance of the change and should be coordinated. It is important that
the request and subsequent approval comes from the appropriate sponsor representative. Often,
a program manager may “endorse” an activity; however, in most cases, approval must come
from the appropriate grant official.
39
Once you have identified your niche (your unique contribution), it is important to identify
the long-term goal you have within that niche area. Think broader than what you can
achieve with a single grant, but be realistic so that the goalcan be accomplished within
your career. Think in terms of a continuum of research and plan logical steps needed along
the continuum.
Think of a problem that could be solved through one awarded project - an idea that can
contribute something new within the context of your field. The idea is your launching off
point. Getting funded starts with a good preliminary idea and a vision of a step by step
long-term process that your one-grant idea will build upon.
Foundations usually do NOT support ongoing programs, provide operating funds, or fund
projects for more than a three to five-year period. Once potential foundation support has been
identified, the preferred initial approach is through a letter of preliminary inquiry, which outlines
the project briefly and asks if the foundation's interest is sufficient to receive a formal proposal
through official university procedures. Personal contact with foundation officials is often
helpful.
Go first to WSU's Corporate and Foundation Relations (CFR) office before contacting any
private funders. The CFR office is responsible for the coordination of all private corporate and
foundation funding requests on behalf of the university, and collaborates closely with Sponsored
Program Administration to ensure appropriate accountability. A team of prospect researchers,
writers and CFR directors can help plan fundraising strategies, find prospective funders,
write/edit letters and proposals, develop budgets, and set up accounts and fulfill reporting
requirements. For more informati
To allow faculty and students easy access to information about research funding opportunities
available through these university units, the Office of the Vice President for Research annually
compiles the .
40
3.1 RESEARCH METHODOLOGY
Research
Research is the process of findings solutions to a problem after a thorough study and analysis of
situational factors.
Research design
41
A research design is a plan, structure and strategy of investigation. So convinced to obtain
answers the question to the research problems. The plan is the complete scheme or program of
the research.
Exploratory research
TYPES OF DATA
Secondary data
The secondary data, on the other hand, are those which have already been collected by someone
else and which have already been passed through the statistical process. The researcher of the
purpose of the study has collected data which was purely secondary in nature the information
collected from journals, annual report of the company manuals.
Trend analysis
Trend analysis
The trend analysis is a technique of studying several financial statements over a series of years.
In this analysis the trend percentages are calculated for each item by taking the figure of that
item for the base year taken as 100. Generally the first year is taken as a base year . the analyst
42
is able to see the trend of figures, whether moving upward or downward. In brief, the procedure
for calculating trends is as;
One year is taken as a base year which is generally is the first year or last year.
Trend percentages are calculated in relation to base year.
43
Elecricity 59259 69136 79102 88889 98765
charges
Inference
The above table 4.1.1 shows the Manufacturing overhead budget the Manufacturing overheads
was continously increasing from 2009 to 2013 i.e from Rs.4368177 to Rs.7279294.
Chart 4.1.1
Bar diagram show the manufacturing overhead budget
44
8000000
7000000
6000000
5000000
years
Table 4.1.2
The Administration overhead budget
45
PARTICULAR 2009 2010 2011 2012 2013
Inference
The above table 4.2.1 shows the administrative overhead budget the administrative overheads
was continously increasing from 2009 to 2013.The administrative overheads was increasing
from Rs.1114209 to Rs.1802115 from above mentioned periods.
Chart 4.1.2
46
2000000
1800000
1600000
1400000
1200000
rupees
1000000
800000
600000 Administration overhead
400000
200000
Administration salaries
0
years
Table 4.1.3
Selling and distribution overhead budget
47
PARTICULAR 2009 2010 2011 2012 2013
Inferences
The above table 4.1.3 shows the selling and distribution overhead budget the selling and
distribution overheads was continuously increasing from 2009 to 2013.the selling and
distribution overhead was increasing from Rs.18025103 to Rs. 27730928.
Chart 4.1.3
Bar diagram shows the selling and distribution over head
48
30000000
25000000
20000000
rupees
15000000
5000000
years
Table 4.1.4
49
Raw material budget
Chart4.1.4
The bar chart shows the Raw Material budget
50
25000000
20000000
15000000
rupees
10000000
years
Table 4.1.5
Cash budget
51
PARTICULAR 2009 2010 2011 2012 2013
Opening balance 1625202 1395274 1129968 885288 3451134
cash
Inferences
The above table 4.1.5 shows the cash budget from 2009 -2013 the organization cash
position shows positive cash balance only. It indicates the organization cash position has been
decreasing from Rs. 1395274 to Rs. 3097394 further it has been decreased .
Chart 4.1.5
The bar diagram show the cash budget
52
100000000
90000000
80000000
70000000
rupees 60000000
50000000 (-)expenditure
40000000
30000000 (+)income
20000000 Opening balance cash
10000000
0
years
Table 4.1.6
Table showing the Flexible budget at 60%, 70% & 80%
53
Particulars 52% 60% 70% 80%
530 612 713 815
Per amount Per amount Per unit amount Per Amount
unit unit unit
Variable
over heads
Labour 4347 2304053 4347 2660529 4347 3099603 4347 3543025
charges
Wages 8668 4594073 8668 5304854 8668 6180328 8668 7064471
Bonus 219 116144 219 134113 219 156247 219 178599
Conveyance 65 34200 65 39491 65 46009 65 52591
TOTAL 1329 7048470 13299 8138987 13299 9482187 13299 10838686
A 9
Semi-
variable
over heads
Repair&main 18 9600 18 11085 18 12915 18 14762
taince (30%
variable)
Electric 75 39506 75 45618 75 53147 75 60750
charges (40%
variable)
Repair&main 42 22400 37 22400 31 22400 27 22400
taince (70%
Fixed)
Electric 112 59259 97 59259 83 59259 73 59259
charges (60%
fixed)
Total B 247 130765 227 138362 207 147721 193 157081
Fixed over
head’s
Rent 226 120000 196 120000 168 120000 147 120000
Insurance 32000 52 32000 45 32000 39 32000
Bank interest 275 145656 238 145656 204 145656 179 145656
Bank charges 10 5453 9 5453 8 5453 7 5453
54
Computer 40 21300 35 21300 30 21300 26 21300
maintaince
Staff salary 124 65880 102 65880 92 65880 81 65880
Professional 38 20000 33 20000 28 20000 25 20000
charges
Staff welfare 143 76000 124 76000 107 76000 93 76000
Business 57 30000 49 30000 42 30000 37 30000
promotion
Travelling 144 76100 124 76100 107 76100 93 76100
expenses
Telephone 157 82979 136 82979 116 82979 102 82979
charges
Printing& 11 6000 10 6000 8 6000 7 6000
Stationary
Total c 1757 931771 1517 931771 1306 931771 1143 931771
Total=a+b+c=d 15303 8111006 15043 9209120 14812 10561679 14635 11927538
Inference
The above table shows the flexible budget at 52%, 60%, 70% & 80%. The current
level of capacity is at 52% the cost at this level is Rs. 8111006 , at 60% level the cost is Rs.
9209120 at 70% the cost is Rs. 10561679 & at 80% the cost is 11927538.
Chart 4.1.6.6 A
55
Flexible budget at 52% in 530 units
9000000
8000000
7000000
6000000
5000000
4000000
52% 530 amount
3000000
52% 530 Per unit
2000000
1000000
Chart 4.1.6.6 B
56
Flexible budget at 60% in 612 units
10000000
9000000
8000000
7000000
6000000
5000000
4000000
60% 612 amount
3000000 60% 612 Per unit
2000000
1000000
Chart 4.1.6.6.C
57
Flexible budget at 70% in 713 unit
12000000
10000000
8000000
6000000
Chart 4.1.6.6.D
58
Flexible budget at 80% in 815 units
14000000
12000000
10000000
8000000
6000000
80% 815 Amount
80% 815 Per unit
4000000
2000000
59
5.1Findings
Manufacturing overhead budget has been continuously increasing & very high in the year of
2013
Administration overhead budget has been continuously increasing & very high in the year of
2013
Selling and distribute overhead budget has been continuously increasing & very high in the
year of 2013
Raw material overhead budget has been continuously increasing & very high in the year of
2013
Cash budget has been maintained positive cash balance & it has been continuously decreased
from 2009 to 2013.
Flexible budget at 60%,70%,80% level capacity the forecasted cost has been varies
according to the various level
60
5.2Suggestions
The company has to concentrate more on procuring raw material at low cost to reduce
manufacturing expenses
The company can try to reduce administrative cost like salaries overhead in the
forthcoming period.
The company can try to reduce selling and distribution cost in the future periods
The company can invest their positive cash balance in a profitable way like invest on
securities & others.
The company can increase their capacity from 530 units at 52% to 60% OR 70% OR
80%
61
5.3Conclusion
Budgeting is a major technique to analyze the financial position of the company from
the budgeting analysis it is found that various budgeting techniques shows the
continuous increases in the overheads like administration, selling & distribution &
manufacturing & expenditure at the same level of capacity from 2009-2013. so the
organization has to take some action to reduce cost in the further year then it will helps
to improve the profitability position of the company.
62
BIBLIOGRAPHY
M.Y. KHAN AND P.K. JAIN “financial management’’ (tata mcgraw –bill publishing
company limited, fifth edition)
WEBLIOGRAPHY
www.thefreedictionar.com
www.business dictionar.com
Oxford dictionaries.com
www.forbes.com
www.icaew.com
www.investpedia.com
63
Techn krat’s profit& loss A/C as on 31-03-2009
64
Techn krat’s profit& loss A/C as on 31-03-2010
65
Techn krat’s profit& loss A/C as on 31-03-2011
66
Techn krat’s profit& loss A/C as on 31-03-2012
67
Techn krat’s profit& loss A/C as on 31-03-2013
68
ABSTRACT
69
“A Study on budgeting in technokrat’s (India)Pvt.
Ltd kakkalur”
PROJECT REPORTBY
S.JAYAKUMAR
A PROJECT REPORT
Submitted to the
finance
JUNE- 2014.
70
GRT INSTITUTE OF ENGINEERING ANDTECHNOLOGY,
TIRUTTANI
(AFFILIATED TO ANNA UNIVERSITY)
BONAFIDE CERTIFICATE
Mrs.,MBA,PGDMM. Dr.C.Dhasarathan,MBA.,MA.,(Eco),M.Ed.,
M.Phil., Ph.D.
71
DECLARATION
0Place:Tiruttani. (S.JAYAKUMAR)
Date:
(Reg.No:110312631015)
72
ACKNOWLEDGEMENT
With the divine blessing of god, I take immense pleasure in starting the acknowledgement for
this project.
I would like to extend my sincere thanks to my department faculty members and friends and
parents motivation to complete this project.
I am also thankful to the all customers of technokrat’s (India) Pvt. Ltd for providing me the
detail about the company for the encouragement of completes the project successfully.
73
TABLE OF CONTENTS
IV
5.1 FINDINGS 74
5.2 SUGGESTIONS 75
V
5.3 CONCLUSION 76
APPENDIX
REFERENCES
QUESTIONNAIRE
74