A STUDY ON BUDGET AND BUDGETARY CONTROL AT GLPP LLC,

SHARJAH, THE UNITED ARAB EMIRATES

CHAPTER 1
1. INTRODUCTION
1. 1 INTRODUCTION

A budget is an overall blue print of a comprehensive plan of action expressed physical and financial terms. It

includes plan for each of activity responsibility centers of the business and provides link between the

physical and financial of various departments of a company. It is also a document to serve as a control for

monitoring review. It is a quantitative expression of a plan of action relating to the forth coming budget

period. It represents a written operational plan of management for the budget period. It is always expressed

in terms of money and quantity. It can also be said that it is formal statement by the management of its plan

for a given future period which will be used as a blue print during the period it includes a plan for each of the

activity responsibility center of the organization and provides a link between the physical and financial

planning of the various department of the company. It acts as the “ Yard stick “ to measure the performance.

1.2. OBJECTIVES OF THE STUDY

1. To study and assess the existing budgeting and budgetary control system at
GLPP LLC, Sharjah
2. To study the factors affecting customer preference for GLPP
3. To study the impact of technology on printing and allied services in respect
of GLPP.

1.3. STATEMENT OF THE PROBLEM

The essence of profitable business organization lies in its ability to meet the changing

conditions, consumer requirements and technological development through sound

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decisions, budgeting is the most effective and widely used tool for planning in any

organization by establishing a budgetary control system covering all the activities of the

enterprise. It is important to determine the effectiveness of budgetary control system by

analyzing the deviations between the actual achievements and the budget targets. The

budgetary control system has been found to be an effective instrument in exercising control

and as an end for sound planning.

Sustainable competitive advantage and the resultant core competencies through efficient

service delivery has become success mantra for Printing industry. Service efficiency is a

contributory factor in profit maximization of the firm. This project is an attempt to

understand and analyze the key variables influencing the challenges and prospects of a fast

evolving industry with emphasis to budget and budgetary control initiated by GLPP..

Many successful companies in services industry have realized that internal efficiencies

cannot be improved beyond a point without compromising on quality and any attempt to

compromise on quality might erode their brand equities and the only way to remain

competitive and profitable is to develop linkages with external channel partners in the

value chain for customer value creation and delivery.

The study assumes importance on account of the ensuing Dubai Expo 2020 which is

expected to boost printing s business. The Global Enabling Trade Report 2012 ranked the

UAE as the top most performer in the region and 11th globally for the quality and

availability ofstate of the art printing solutions.

If a firm does not consistently satisfy time and place requirement it has nothing to sell in

the market, it is simply out of business. Good service delivery alone can enable

organizations to do business. To enjoy full benefits of printing business, full range of

functional work must be performed on an integrated basis. Excellence in each aspect of

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functional work is relevant only when it is viewed in terms improving overall efficiency

and effectiveness of printing industry.

A sound budget and budgetary control mechanisms are vital for sustained profits and

profitability of firms which operate with low profit margins. The efficiency with which the

firm monitors and controls the input costs make or mar business enterprises

A budgeting system is a comprehensive system of planning and control converting all

systems of an undertaking and giving a sense of direction. The budget system should be

such that it makes it imperative for and to establish a goals and objectives, define policies,

develop programs, both long term and short term and allocate resources, measures

performance against the targets and the process, revise the objectives and policies if

necessary during the budget period.

The budget is being presented for a 3 – year time frame considering the lead time for the

supply form the date of order and the reasonable span of control of expenditure, keeping in

view fluctuations in prices.

The process of monitoring and review is an important aspect of budgetary control it is also

important that this monitoring and review shall be timely so that corrective actions can be

taken to avoid over runs of slippages, for this propose a frame work for computerization of

the monitoring of the actuals versus budgets send the resulting variances in certain key

areas like over heads should be revolved. The process of computerization will includes

tally be helpful in preserving the basic status based on which the budgets are prepared at

retrieving the same for any subsequent requirement.

Budgeting and budgetary control

The term budgetary control and budgeting are often used interchanged to refer to a system

of managerial control. Budgetary control implies that are of comprehensive system of

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budget to the management is carrying out its function like planning and controlling

different activities of business this system involves.

a. Preparation of separate budgets for each “Budget centre”.

b. Division of organizations functions into different sections ( each sections

technically known as a budget center)

c. Consideration of al functional budgets to present overall Organizational

objects during the fourth budget period.

d. Comparisons actual performance against budget comparison process is

stretched at enough to disclose either afferents of objectives or a basis of

versions of plan of action.

e. Reporting the variances with proper analysis to provides basis for future

course of action.

“Budgetary control is the establishment of budgets relating to responsibilities of executives

to the requirements of policy and the budgeted results either to secure by individual action

the objectives of that policy to provide basis for revision.”

Thus the budgetary control involves comparison of actual with the budgets and

ascertainment of the variances with a view to find out the reasons for such variances and

taking suitable remedies. It is very important activity to ensure that actual contain to the

plans set through the budgets. The very purpose of selecting of budgets will be lost without

an effective budgetary control system.

1.4. HYPOTHESES:

To study customer preference variables for a printing solutions provider, the researcher

proposes the following hypotheses.

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H0: Budgetary control measures do not impact profitability in respect of GLPP’s

operations

Ha: Budgetary control measures have a direct impact on the profitability of GLPP’s

operations

H0: Reliability, accuracy and competitive pricing are not the prime determinants of

customer preference in respect of GLPP

Ha: Reliability, accuracy and competitive pricing are the prime determinants of customer

preference in respect of GLPP

1.5, THEORETICAL FRAMEWORK/REVIEW OF LITERATURE

The printing industry plays a crucial role in the UAE’s national economy and is a major contributor

of its GDP. Printing industry is growing by leaps and bounds as can be seen from the setting up of

International Media Production Zone (IMPZ) spreading over an area of 35 million square feet. This

will help UAE emerge as a major outsourcing centre offering cost effective printing solutions

across the world. IMPZ will provide a tremendous boost to the UAE’s printing Industry since all

the facilities like pre-press, post-press, warehousing and consumables will be at one location. This

will bring great advantages to the print buyer, who will get services ranging from pre-press to

distribution from one location. Also, being a capital-intensive industry, the printers within the Zone

can work together and utilize the services of each other instead of making costly investments in

equipment that is already available with other printers in the Zone. Demanding and knowledgeable

customers want printers to go the digital way. “Printers will have to go the digital way. Though,

offset cannot be overlooked, but digital printing will gain increasing importance and printing for

packaging is sure to maintain a healthy growth. Also, another concern is rising costs - rents, labour

accommodation - everything is becoming more expensive. Skilled workforce is also becoming very

5
difficult to source.”

Management of funds is a critical aspect of financial management; it acts as a foremost

concern whether it is in a business undertaking or an educational institution. Thus

Financial Management refers to that part to the management activity which is concerned

with the planning and controlling of firm’s financial resources. Budget is one such major

functional area of financial area of financial management which connotes quantitative

expression of the specified objective to know whether the efficient in utilization of funds.

Budget and Budgetary Control

The word “Budget” is derived from a French word “Baguette” which means a leather

pouch in which the funds are appropriated for meeting the anticipated expenses.

According to the ICWA London, “A Budget is a Financial and quantitative statement

prepared prior to a definite period of time of the policy to be pursued during that period for

attaining a given objective”.

Budgetary Control

Budgetary Control is a means of control in which the actual state of affairs is compared

with the budget so that appropriate action may be taken. It is a tool to control the cost with

the budgeted amount. In brief, the use of budget to control firm’s activity is known as

Budgetary Control.

Objective of Budgetary Control

 Planning

 Co-ordination

 Communication

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  Control

 To anticipate capital expenditure for future

 Fixation of responsibility of various individuals in the organization.

ADVANTAGES OF BUDGETARY CONTROL

 It aims at maximization of profits through careful planning and control.

 It co-ordinates the activities of various department and functions of business.

 It increases productivity efficiency, eliminates waste and control costs.

 It motivates employees to attain the given goals.

 It provides a tool for measuring managerial performance.

 It will be able to take corrective measures whenever there is a discrepancy in

performance.

LIMITATIONS OF BUDGETARY CONTROL

 It is an expensive tool which requires employment of expert staff.

 There exists danger of rigidity i.e., budget programs may not be dynamic or

continuously adopted to fit changes circumstances.

 It is only a tool of management but does not take the place of management.

 It is based on estimates; any error in estimation may lead to far reaching bad

effects.

TYPES OF BUDGET

Budget may be classified by following two angles:

 FUNCTIONAL CLASSIFICATION

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 A Functional budget is on which relates to any of the functions of an organization.

Though the number of individual’s budget varies from firm to firm, they act as an

important tool for efficient management of resources.

 FLEXIBILITY CLASSIFICATION

It is a type of budget which is designed to change in according with the level of

activity actually attained.

BUDGETING PROCESS

The Budgeting process in the companyis yearly exercise and by convention all Budgets

submitted to the Board of Directors will reflect the plan of three years.

a) Budget Estimate of the next financial year [B.E]

b) Forecast Estimate for the Current Year after next year [F.E]

c) Revised Estimate of the Current financial Year [R.E]

It can be seen that there is a possibility to revise statement of the current financial year.

This flexibility to review the original Budget and make revision may become necessary if

there are significant changes in either the internal or external environment. Ideally the

changes in Revised Estimate should be kept to the minimum, since large scale changes

defeat the purpose of preparing the original Budget Estimate itself.

TIME FRAME FOR PREPARATION OF BUDGETS.

The Capital Budget and Revenue Budget proposal from the units should reach corporate

office by end September. The Consolidated Budget is put up the Board in

October/November, so that unites/Division have sufficient time to initiate midterm course

correction, if necessary for the current year and also take advance action for achieving

target in the succeeding years.

TYPES OF BUDGETS PREPARED

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The Budgeting process in Bharat Electronics is a yearly exercise and is done by

Convention of all budgets submitted to the Board of Directors which will reflect the plan

for 3 years.Here in the company there is flexibility to revise the original budget and make

revision if necessary. There are 2 types of Budgets by the company:

a. Capital Budget

b. Revenue Budget

a. Capital Budget

It may be defined as the Company’s decision to invest presently in the long term activities,

in anticipation of an expected flow of future benefits. The long term activities are those

which affect the company’s operation beyond a period of 1 year. Generally the company’s

Capital budgeting decision will involve addition, disposal, modification & replacement of

long term fixed assets. Capital investments fall under three broad categories:

 Projects

 Augmentation needs (other than projects)

 Civil Works

b. Revenue Budget

It lays down the operating plan of the Company. Ideally such plans should reflect the

operational goals of the Company which gave to be in line with the long term strategic

goals/vision of the top management. Companies striving for steady growth should increase

sales and operational activity. Revenue budgeting exercise helps the company to focus on

areas which need constant monitoring and follow up action in the budget year. The

examples are:

 SALES BUDGET- Sales Budget not only indicates the target turnover but also

points out areas where efforts must be made to secure orders, it the targets is too

much.

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 OPERATING ESTIMATES- Operating estimates list out the revenue as well

as the cost parameters. The major cost elements are the material cost, employee

remuneration and benefits and other revenue expenses.

 CASH BUDGET- Cash budget helps to find out whether a unit could have a

net cash surplus or deficit from the operation during the year. The method

followed by Bharat Electronics is the receipt and payments method.

 INVENTORY MANAGEMENT- Inventory budget will reflect the estimated

transaction ion purchase of materials. Issue of materials which unit in the

closing balance.

 R&D BUDGET- R&D budget throws light on the extent of R&D activity

planned during a year and the new products expected to come out of R &D

efforts.

 MANPOWER BUDGET- Manpower budget highlights the manpower

requirements for the planned level of activity taking into account actual

retirements, resignations, promotions and fresh recruitment.

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 CHAPTER II
INDUSTRY PROFILE
INDUSTRY PROFILE

The printing industry plays a crucial role in the UAE’s national economy and is a major
contributor of its GDP. Printing industry is growing by leaps and bounds as can be seen
from the setting up of International Media Production Zone (IMPZ) spreading over an area
of 35 million square feet. This will help UAE emerge as a major outsourcing centre
offering cost effective printing solutions across the world. IMPZ will provide a
tremendous boost to the UAE’s printing Industry since all the facilities like pre-press, post-
press, warehousing and consumables will be at one location. This will bring great
advantages to the print buyer, who will get services ranging from pre-press to distribution
from one location. Also, being a capital-intensive industry, the printers within the Zone can
work together and utilize the services of each other instead of making costly investments in
equipment that is already available with other printers in the Zone. Demanding and
knowledgeable customers want printers to go the digital way. “Printers will have to go the
digital way. Though, offset cannot be overlooked, but digital printing will gain increasing
importance and printing for packaging is sure to maintain a healthy growth. Also, another
concern is rising costs - rents, labour accommodation - everything is becoming more
expensive. Skilled workforce is also becoming very difficult to source.”

The unrelenting development of Dubai has created opportunities in all kinds of industries.
Whilst perceptions of the future of print are mixed, the city’s expansion has very much
provided the impetus for a range of printing possibilities.
Locally-based Power Print was established in 2004 and has developed into one of the
leading print solutions specialists in the region.

The privately-owned business is located in the industrial Al Quoz area of Dubai and caters
for a variety of clients and projects. Significant investment in the latest technology has
very much broadened the capabilities at Power Print, as Zahir Hassan, owner and
Managing Director, since June 2006, explains:

“Power Print is a commercial printing company, specialising in marketing oriented print

jobs. We provide a comprehensive one-stop printing service along with printing and
creative consultancy to help our clients maximise their budget. Along with offering a high-

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quality, cost-effective print products, we can also advise our clients on logistical planning
so that material is always delivered on time to wherever they need it.
“We have invested in our printing machinery in order to serve every segment of print
buying market. Our specialised products ranges from high end corporates stationery,
brochures, catalogues, point of sale material, merchandising packaging, promo boxes,
carrier bags, leaflets, invitations, stationery, direct mailers, calendars and books to the most
demanding luxury packaging.”
The company operates a production facility that comprises skilled workforce and
sophisticated machinery and has a separate site for warehousing and finished goods. In
addition to its traditional printing capabilities, in 2009 Power Print launched a subsidiary
called Power Fill Packaging, which provides a turnkey print and packaging service on SIM
cards for telecommunications companies.

“Power Fill has grown and we are currently providing services for 2 telecom companies in
the UAE and we are now looking at other markets to expand our operations to other
emirates over the next 2 years,” confirms Hassan.
“We are currently in negotiations with a company in France, who operate in Afghanistan
and are also exploring opportunities in Kenya at the moment,” he adds.
It is not that long ago that Dubai would not have been considered as a haven for printing
business, however in a short space of time that has changed.

“When we launched Power Print, we understood that the business needed to have the
creative parity to match the unique character of Dubai and the UAE. There was a need to
match great design with great printing services too in order to match increasing demand,”
recalls Hassan.
“We still work closely with our creative partners to this day and we feel that there is huge
scope for creative printing in this region. Our production capacity and people are very
much aligned to produce the services our discerning customers expect.”
At present the company employs roughly 200 people, with Hassan indicating that up to 90
per cent of these are skilled workers. Dubai’s attractions allow Power Print to recruit
people with the right experience and innovations such as Media City have merely added to
talent pool.

“Media City is unique and has attracted skilled individuals but most of the older and
established advertising agencies are located outside. Media City is owned by TECOM and

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we are proud to announce that TECOM, one of the region’s most dynamic conglomerates,
has recognised Power Print’s consistently high levels of service and standard of work. A
Certificate of Appreciation for Power Print’s contribution was awarded to us earlier this
year as a “Most Valued Supplier”. We also have been recognised with quality awards by
the Printing and Publishing Group of Dubai Chamber since the last 7 years of award’s
inception.” Hassan states.
Such recognition is indicative that Power Print is getting things right. However, Hassan is
fully aware of the challenges confronting the printing industry around the world:

“In my opinion, in Dubai we are not seeing problems for the print industry. However, it is
easy to see how, without specialist skills and services a company could go down. By
concentrating on promotional materials, we are definitely not seeing a slump in demand
and there are always opportunities for creative printing here.
“The packaging side of the business is still increasing and because we deliver solutions
across the whole printing range, our market remains buoyant.
“When you factor in our opportunities in Kenya and France, the outlook remains positive.
When it comes to Kenya, I don’t think there are any other companies in that region that can
offer the same unique services as Power Print.
“For the French company, finding a partner in Dubai was an ideal circumstance as it
enables them to deal with the whole of the Middle East and I believe that a lot of our
success is also down to word of mouth recommendations.”
Of course third party endorsement is a powerful tool – but it has to be earned. To gain a
strong reputation requires a special attention to quality and roughly a year ago Power Print
attained ISO 9001 and ISO 14001 accreditation.

“We always believed in systems and procedures so the transition to ISO standards was not
too challenging and we only had to make minor changes,” Hassan explains.
“On the environmental side we operate a disposal system for paper and chemicals and all
of the paper we dispose of is recycled. We also have to comply with strict local authority
rules and we undergo monthly inspections.”
Driving the processes that have helped to forge Power Print’s excellent reputation is a
state-of-the-art set of printing machinery, with an average life span of 3 years, combined
with highly skilled workforce. The company operates in over 30,000 square feet of
integrated units.

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“Dubai is always the hub of the Middle East and is constantly evolving with innovation
and we have to stay at the cutting edge of progress. We made a huge investment of 30
million Dirhams in October 2011 on new machinery and this means that we have the
capacity to meet the current local market. There might be an opportunity for us to further
improve in the second part of 2014,” affirms Hassan.
“The investment we made was in packaging machinery and means we can now service
packaging companies as well as high-end catalogues. We have the capacity to meet the
requirements of any print buyer and luxury packaging now accounts for up to 40 per cent
of our business,” he continues.
Hassan feels that Power Print is now set for an exciting future, with all of the necessary
pieces of the jigsaw in place to achieve growth:

“Every print job we undertake is done with lots of attention to detail from the right set of
people, who understand the concept of design and delivery. We have the right combination
of people and machinery now.
“As long as we can continue to do things the way we are, we can achieve great things. The
next 2 years are going to be a crucial time with tourism numbers on the increase from other
areas of the region and Dubai in the running for the World Expo 2020.
“If everything goes well we will aim to have our own building in the next 2 years and we
will of course keep abreast of new technologies as we must continue to match the city’s
growth.”
The Middle East is one of the fastest growing markets in the world for the printing and
packaging industries, and Dubai Export Development Corporation (EDC) is developing
Dubai to become the export hub for these sectors in the entire region.

EDC is exhibiting for the first time at the Gulf Pack and Gulf Print Exhibitions, the Middle
East’s only dedicated vertical trade exhibitions for the international printing, publishing
and packaging industries. As the government body responsible for promoting exports from
Dubai and the UAE, EDC is fostering potential businesses regionally and internationally to
its members in the printing and packaging sectors.

The Middle East printing market is predicted to grow an average of 7.7 per cent annually
until 2012 or a value of US$7.6 billion (AED27.9 billion), according to Pira International,
the leading information provider for the printing, paper, packaging and publishing

14
industries. Dubai has seen this unparalleled growth in this sector and has introduced
several initiatives such as the International Media Production Zone (IMPZ), a fast
developing community of popular titles and related media services, said Engr. Saed Al
Awadi, Chief Executive Officer, EDC.

Digital Technology is gaining momentum around the globe and everyone in the print and
packaging industry needs to address the right investment in equipment and software to take
advantage of it.
Gulf Print attracts key international suppliers of printing machinery, printing and
publishing software and ancillary equipment, whilst Gulf Pack is the only packaging event
for the entire region and is targeted at packaging machinery manufacturers who want to
present their products to the dynamic Middle East market.

With its world class infrastructure and geographical position, and its encouragement of free
enterprise and low government interference, the future looked very bright for the industry
in the Gulf. Already 175 publishing companies and 184 graphic arts companies had set up
in Dubai?s IMPZ, whilst some 2,000 similar companies and freelancers were operational in
the area overall.

Barb Pellow, Group Leader of Info-Trends, a market research company in the industry
sector, explained that digital print equipment and software solutions are driving efficiency
both in print operations and in business communications for customers. ?With the
abundance of new technology, especially in the areas of high speed colour engines and the
interface using the web, this is a very bright spot in the industry and is responsible for a
huge increase in productivity and cost savings,? she said.

As more and more companies move across to digital printing, there has been a decline in
the amount of offset print volumes, whilst there is a compound annual growth rate in retail
value of print of over nine percent in digital printing depending on region; and
establishments categorising themselves as digital printers have increased by 250 per cent
since 1998. This has also increased employment in the sector by 300 per cent in the past
decade,?she added.

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One of the most significant drivers of this growth is the demand for shorter print runs with
line lengths of less than 500 growing much more than larger print runs, which digital is
ideally placed to handle.

The print industry will continue to dominate the media landscape in the Gulf region
despite the increasing role of online, digital and social media in modern-day life, top
executives say.

The region’s print industry is driven by growing economies and supported by core sectors
such as real estate, retail and mega projects. The printing and packing sector is interrelated
with all industrial sectors and will continue to grow with them, however the industry needs
to adopt latest innovative technology to stay competitive in the market.

“The current value of the print market in the Middle East and North Africa region is
approximately $7.7 billion, growing at a rate of 42 per cent to $11 billion by 2015,” Saif Al
Midfa, chief executive, Expo Centre Sharjah, told Khaleej Times ahead of inaugural
edition of Print Pack Arabia this week.

Al Midfa said the print segment accounts for nearly three-fourths of the total ad spend in
the GCC against a global trend where online and digital platforms are overshadowing the
print and other media. “It accounted for 71 per cent of total ad spending in the GCC,” he
said.

“A growing economy and mega events like World Expo 2020 in Dubai and the 2022 Fifa
World Cup in Qatar will continue to generate massive opportunities for the printing
industry,” he added.

Al Midfa said regional printing companies will have to acquire new technology to achieve
the quality and speed required while addressing growing demand for short runs, quick
turnarounds and variable content.

“The printing industry is a state of continuous transition... both conventional and digital
printing platforms have their pros and cons. While offset is most commonly used for high
volume commercial printing, the growth of digital printing technology has brought

16
technical advancements, more options, and exciting new features for today’s commercial
printing,” he said.

“Advance printing technologies that facilitate distribution of newspapers and magazines

quicker than the country of origin mean that print is still a big business in the digital age.
Acquiring latest technologies will be key for the sector to scale newer heights,” Al Midfa
said.

Paul said the print and packaging industry will have to be innovative and adopt new
technologies to meet the growing demand in various key sectors. He said new
developments in print technology are environment focused compared to digital and online

Al Midfa said the print industry will be facing numerous challenges in years to come to
stay afloat against growing presence of digital, online and social media in the
region“Greater fragmentation of media channels, contracting marketing spends or margins,
constantly evolving market trends and continually evolving technology are some of the
challenges facing the industry,” he

17
 CHAPTER III
COMPANY PROFILE

GLPP LLC is a leading printing press in Sharjah’s industrial area offering state of the art
printing and packing material solutions provider. GLPP was established in 2004 and it
witnessed tremendous growth in this decade one stop printing and packaging material
provider in UAE supplying perfume boxes, medicine boxes, cake boxes, corporate
brochures, annual reports, product catalogues, coffee table books, magazines, calendars,
shopping bags, promotional posters, danglers etc.

GLPP is one of the leading and well equipped printing press located in Sharjah industrial
area 15, near national paints. Ever since our inception in the year 2004, the company has
achieved tremendous growth and nurtured to become a professionally managed
organization of high repute with highly qualified technical personnel. With our vast
expertise and superb quality standards, we have been recognized as challenging contenders
in the commercial printing business in UAE. Besides this we are also specialized in
manufacturing packaging products for perfumery, food industries etc. Over the years, we
have catered to a wide gamut of clientele. These include industries such as Airlines, Banks,
Hotels, Exhibition Organizers, Advertising Agencies, Large Corporations, Government
Organizations, Pharmaceuticals, Ice Cream Companies etc.

PRODUCTS The product categories encompass, Perfume Boxes, Electrical Light Boxes,
Medicine Boxes, Cake Boxes, Corporate Broachers, Annual Reports, Product Catalogues,
Labels, Coffee Table Books, Magazines, Calendars, Shopping Bags, Promotional leaflets,
Posters, Danglers, Stickers, Ice Cream Lids etc. We also have a dedicated facility to handle
the stationery. We sincerely serve to satisfy our customers with good and consistent quality
products and services. Constantly on the move to upgrade and strengthen our resources to
meet the ever growing demands of the market. FACILITIES • 5 Colour Machine 70 X 100
cm with Water Base Varnish
• 2 Colour Machine 70 X 100 cm
• 4 Colour Machine Speed Master 52 x 35 cm
• Fully Automatic 70 x 100 cm Die Cutting & Foiling • Folder Gluing
• 100 X 70 cm Image Setter

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• 50 X 70 cm Image Setter
• Cold & Thermal Lamination
• Die Making requirements. Paper Folding Machine Presstek Dimension 800 (CTP)
SANWA Die Cutting Machine Heidelberg - Speedmaster SM 52 5 Color Machine YAVA
Die Cutting Machine Mitsubishi (5 Color Machine)
PACKAGING JOBS All Kinds of Boxes S
TATIONARIES JOBS
• Letter Head
• Envelope
• Invoice
• Business Cards
COMMERCIAL JOBS
• Brochures
• Folders
• Bags
• Leaflet
• Books
OBJECTIVE

To deliver consistently, outstanding, creative and quality products that significantly

enhance our client’s image, by providing uncompromising service that contributes to

strong, long-term relationship with our clients.

AIM • Available customized designs and products to suit the client’s needs • Excellent

Quality Control and service • Competitive pricing • On-time delivery performance

PORTFOLIO

GLPP’s experience and commitment in dealing with our clients within UAE, creatively

and technically, are so increasingly recognized and we have a strong presence throughout

UAE.

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 CHAPTER IV

4. RESEARCH MEDTHODOLOGY

Research is basically an inquiry to examine the extent of the validity of the old conclusions

or to find out some new facts and generating new ideas in connection with the existing

ones. A research finding may lead to further research. Research means search for

knowledge. It aims at discovering the truth. It is the search for knowledge through

objective and systematic method to find solution/s to research problems. Therefore

research is a process of systematic and in-depth study or search of any particular topic,

subject or area of investigation backed by collection, computation, presentation and

interpretation of relevant data.

Research methodology describes various steps that can be adopted by the researcher in

studying his research problems. Research methodology deals with the objectives of a

research study, the method of defining the research problem, the type of hypothesis

formulated, the type of data collected, methods used for collecting the and analyzing the

data etc.

4,1. RESEARCH DESIGN

The researcher conducted a descriptive research since the study was confined to only one

firm in the industry. Research design is a conceptual structure within which the research is

conducted; it constitutes the blue print for the collection, measurement and analysis of

data.

4.2. DATA SOURCES

Primary Data:The researcher collected primary data through a pretested structured

questionnaire and an unstructured interview The respondents included past clients, present

clients, channel partners and internal customers

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Secondary Data:Secondary data required for the study was collected from government

publications, industry publications, company literature, internet, academic journals and

other available secondary sources the researcher could lay hands on.

4.3 SAMPLING DESIGN

Sampling Design:

Sampling helps a researcher to select a subset of units from a target population for the

purpose of collecting information. This information is used to draw inferences about the

population as a whole. The subset of units so selected is referred to as sample.

The sample design encompasses all aspects of how to group units on the frame, determine

the sample size, allocate the sample to the various classifications of frame units, and

finally, select the sample.

The researcher used Non-probability sampling for this research. Non-probability sampling

uses a subjective method of selecting units from a population, and is generally fast, easy

and inexpensive.

The sample size was limited to 55respondents comprising 25internal customersand

30external customers. The company has only 55 permanent employees and 69 loyal

customers.

4.4. DATA COLLECTION INSTRUMENT

Questionnaire:A structured pretested questionnaire was used as data collection

instrument. This was supplemented by need based interviews of the respondents

Interview; Anunstructured interview schedule was used to elicit information from

employees.Interviews with company personnel while travelling with them on the way to

their office and back formed the back bone of data collection method.

4.5. STATISTICAL TOOLS USED

21
1. Percentage analysis:

To study the objectives a simple tool like percentage has been used. The purpose of using

ratio or percentage is to simplify the problem of comparison. Percentages reduce two

distributions to a common base, thus make comparison simple.

2. Chi Square Analysis: The researcher has used Chi- square test in order to study the

relationship between customer satisfaction and GLPP’s operational efficiency which gets

translated into service quality.

Chi-square is a statistical test commonly used to compare observed data with data we

would expect to obtain according to a specific hypothesis Were the deviations (differences

between observed and expected) the result of chance, or were they due to other factors.

How much deviation can occur before you, the investigator, must conclude that something

other than chance is at work, causing the observed to differ from the expected? The chi-

square test is always testing what scientists call the null hypothesis, which states that there

is no significant difference between the expected and observed result. The Chi square test

was done in order to study the relationship between customer satisfaction and logistics

services delivery. The formula applied can be given as follows:

(O – E) 2

Chi square = ∑ ______

Where O = Observed frequencies

E = Expected frequencies

3. Correlation Analysis
Correlation Analysis is a good statistical tool widely used in social sciences and business
research.Correlation is a term that refers to the strength of a relationship between two
variables. A strong, or high, correlation means that two or more variables have a strong
relationship with each other while a weak, or low, correlation means that the variables are

22
hardly related. Correlation coefficients can range from -1.00 to +1.00. The value of -1.00
represents a perfect negative correlation while a value of +1.00 represents a perfect
positive correlation. A value, 0.00 means that there is no relationship between the variables
being tested.

3.6. LIMITATIONS OF THE STUDY

 Several key operational parameters in the firm are firm specific, industry specific
and country specific and hence generalizations are not always possible. The data
obtained is pertaining to a single firm in the industry. Since market forces and
environmental forces do not affect firms in the industry uniformly on account of
their relative competitive positions in the industry generalizations even if possible
may not always be true.
 Time constraint.
 Respondents’ bias.
 Difficulty in obtaining competitor information to compare operational efficiencies
 Since the firm keeps its financial data confidential actual financial analysis may
not reflect reality.
 Estimates are used as basis for budget plan and estimates are based on available
facts and best managerial judgment
 Budgetary control cannot reduce the managerial function to a formula. It is only a
managerial
 Tool which increase effectiveness of managerial control
 The use of budget may lead to restricted use of resources.
 Efforts may therefore not be made to exceed the performance beyond the
budgeted targets.
 Frequent changes may be called for in budgets due to fast changing industrial
climate.
 In order that a system may be successful, adequate budget education should be
imparted at least through the formative period. Sufficient training programs
should be arranged to make employees gibe positive response to budgetary
activities.
 The study is the limited up to the date and information provided by Kesoram
cement industry Limited and its annual reports

23
 CHAPTER V

5. ANALYSIS AND INTERPRETATION

Data analysis and interpretation is the process of assigning meaning to the collected

information and determining the conclusions, significance, and implications of the

findings. Meaningful interpretation of the collected data is essential for any meaningful

and productive research.

A STUDY ONBUDGET AND BUDGETARY CONTROL AT GLPP, UAE

Table No. 5. 1

Gender wise Distribution of Respondents

Gender No. of Respondents Percentage

Male 47 85

Female 8 15

Total 55 100

Inference: The demographic distribution with respect to Gender among the respondents

has been arrived at using percentage analysis and the same is depicted in Table 5.1. It has

been observed from the above table that out of 55 respondents, 47 are males and the

remaining 8 are females. The composition of the same is being represented by the bar chart

–5.1.

24
 Graph No. 5.1 Gender wise Distribution of Respondents

Gender wise Distribution of

Respondents
100

80

60

40

20

0
Male Female Total

No. of Respondents Percentage

Table No.5.2

Age wise Distribution of Respondents

Age Group No. of Respondents Percentage

Below 25 Years 4 07

25-35 Years 12 22

35-45 years 30 55

45 years & above 9 16

Total 55 100

Inference: The demographic distribution with respect to Age of the respondents has been

arrived at using percentage analysis and the same is depicted in Table 5.2. It has been

25
observed from the above table that out of 20 respondents, 5 belong to the age group of

below 25 years, 12 of the respondents belong to the age group of 25 to 35 years and out of

the remaining 3 respondents, 2 of them belong to the age group of 35 to 45 years and the

only one of the respondents belong to the age group of 45 years and above. The

composition of the same is being represented by the bar chart under Figure –5. 2.

Graph No. 5.2Age wise Distribution of Respondents

Age wise Distribution of Respondents

0 0
4
12 0
0

55
30

9
00
0 0

Below 25 Years 25-35 Years 35-45 years 45 years & above Total

26
 Table No. 5.3

Marital status wise Distribution of Respondents

Marital status No. of Respondents Percentage

Single 8 15

Married 38 68

Divorced 2 4

Others 7 13

Total 55 100

Inference: The demographic distribution with respect to marital status of the respondents
has been arrived at using percentage analysis. It has been observed from the above table
that out of 55 respondents, 8 respondents are single, 38 married, 2 are divorced and the rest
have lost their spouses. The composition of the same is being represented by the bar chart
under Figure –5. 3.

Graph No. 5.3

Marital status wise Distribution of Respondents

27
 Marital status wise Distribution of Respondents

100
90
80
70
60
50
40
30
20
10
0
No. of Respondents Percentage

Single Married Divorced Others Total

Table No. 5.4

Income wise Distribution of Respondents

Income No. of Respondents Percentage

AED 2000-3000 08 15

AED 3000-4000 35 63

AED 4000-5000 07 13

AED 5000-10000 05 09

Total 55 100

28
Inference:Regarding the income distribution among the respondents, it can be observed

from the above Table No. 5.3, 8respondents belong to the income level of AED 2000 to

3000 and 35 respondents belong to AED 3000 to 4000, 7 respondents belong to the

income level of AED 4000 to 5000 and 5respondents each belong to AED 5000 to 10000.

This distribution has been depicted in Figure No.5. 3.

Graph No. 5.4

Income wise Distribution of Respondents

Income wise Distribution of Respondents

0 0 0
8

35
55

7
55

00
0
0 0 0
AED 2000-3000 AED 3000-4000 AED 4000-5000 AED 5000-10000 Total

Table No. 5.5

Education wise Distribution of Respondents

Education No. of Respondents Percentage

High School 2 4

Diploma/Certificate 30 54

Graduation 8 15

29
 Post Graduation 10 18

Professional Degree 5 09

Total 55 100

Inference: Regarding the educational background of the respondents, it can be observed

from the above Table No. 5.4, that 5 are having Professional Degree, 30 having

Diploma/Certificate, 8 are Graduates, 10 are Post Graduates and only 2 is having High

School qualification. This distribution has been depicted in Figure No.5 3.

Graph No. 5.5

Education wise Distribution of Respondents

Education wise Distribution of Respondents

100

80

60

40

20

0
No. of Respondents Percentage

High School Diploma/Certificate Graduation

Post Graduation Professional Degree Total

30
 Table No. 5.6

Respondents’ opinion about growth prospect of Printing Services

Opinion No. of Respondents Percentage

Not at all Successful 0 0

Not Successful 0 0

No opinion 0 0

Good Prospects 48 87

Highly Successful 07 13

Total 55 100

Inference:Regarding the growth prospects of printing industry , as can be seen from the

Table No. 5.5, 48 of the respondents have expressed that the growth prospect of the

industry is good and 7 respondents feel that it is very good.. This distribution of the same

has been depicted in Figure No. 5.5.

31
 Graph No. 5.6

Respondents’ Opinion about Growth Prospects of Printing Industry

Growth prospect of Printing Services

100

80

60

40

20

0
No. of Respondents Percentage

Not at all Successful Not Successful No opinion

Successful Highly Successful Total

Table No.5.7

Employees’ Opinion regarding Customer Satisfaction

Opinion No. of Respondents Percentage

Not at all Satisfied 2 04

Somewhat Satisfied 4 07

No Opinion 0 0

Satisfied 44 80

Highly Satisfied 05 09

TOTAL 55 100

32
Inference: Regarding customer satisfaction, out of 55 respondents, it has been found that

44 respondents were satisfied, followed by 5 respondents who were highly satisfied, 4

respondents as somewhat satisfied and finally only 2 respondents are not at all satisfied.

The results of the same are calculated and depicted in the form of percentage in the column

under percentage. The same is represented under Figure No. 5.9

Graph No.5.7

Employees’ Opinion regarding Customer Satisfaction

Employees' Opinion regarding Customer

Satisfaction provided by GLPP
00 000
0
0 0
24

55 44

0 000

Not at all Satisfied Somewhat Satisfied No Opinion

Satisfied Highly Satisfied TOTAL

Table No. 5.8.

Distribution showing Customer Complaints for the last 3 years

Total No. of Total No. of Customer Percentage

Year Customers complaints received

2013 65 8 12

2012 41 18 44

2011 28 16 57

33
Inference: The table given above shows that FML received 16 service complaints from 28
customers in 2011, 18 complaints from 41 customers in 2012 and 8 service complaints
from 65 customers in 2013. This means that in 2011 there were 57% customer complaints
and in 2012 it increased to 44% and in 2013 it decreased to 12. Data from other players in
the industry substantiate this observation because business was dull in 2012 on account of
the recession. The statistics is depicted in Figure No. 5.13 given below

Graph No. 5.8.

Distribution showing Customer Complaints for the last 3 years

Distribution showing Customer complaints for

the last three years

70
60
50
40
30
20
10
0
2013 2012 2011

Total No. of Customers Total No. of Customer complaints received Percentage

34
 Table No. 5.9

Distribution showing Major strengths of GLPP

Total No No. of
Strength Respondents Respondents Percentage

Loyal Customers 55 40 73

Technological Leadership 55 20 36

Superior Quality Customer Service 55 38 69

Committed Workforce 55 100 100

Ethical & transparent business 55 22 40

practices

Inference: The Table No.5.9 given above shows that according to GLPP employees the
biggest strength of FML is its work force and all the respondents unanimously agreed to
this. Next comes, superior customer service at 38%, followed by loyal customers at 73%.
36% of respondents are of the opinion that technological leadership is one of GLPP’s
strengths and the remaining 40% respondents felt that ethical and transparent business
practices is another strength of GLPP. This is shown by a bar diagram -Figure No. 5.14.

Graph No. 5.9.

Distribution showing Customer Complaints for the last 3 years

35
 Distribution showing Major Strengths of GLPP
0
00
22 40
0
0
20
0
0
100
38

0 0

Loyal Customers Technological Leadership

Superior Quality Customer Service Committed Workforce
Ethical & transparent business practices

Table No. 5.10

Distribution showing Weaknesses of GLPP

Weakness No. ofRespondents Percentage

Shortage of Skilled Manpower 5 09

Company size 20 36

Delay in decision Making 0 0

Pro-labour policy 0 0

Lack of Professional Management 30 55

TOTAL 55 100

Inference: The Table No.5.10 given above shows that according to GLPP employees the
biggest weakness of GLPP is the lack of professional management. 55% of the

36
respondents share this view. 36% of respondents feel that company’s size is a weakness
and 9% of respondents feel that shortage of skilled manpower is a weakness. The same is
represented by a bar diagram under Figure No. 5.15.

Graph No. 5.10

Distribution showing Weaknesses of GLPP

Distribution showing Weaknesses of GLPP

100

80

60

40

20

0
No. of Respondents Percentage

Shortage of Skilled Manpower Company size

Delay in decision Making Pro-labour policy
Lack of Professional Management TOTAL

The analysis and interpretation of data involves the objectives material in the
possession of the research and subjective reactions and desire to derive from the
data, the inherent relation among variable pertaining to the problem. Analysis and
interpretation of variable statement of Budget refers to means of control where
actual state of affairs is compared with the budgeted value in order to focus on
analysing the variation between budgeted and actual figures with special reference
to the following statements of Budget prepared at GLPP.

 Budget Operating Estimates

 Cash Budget
 Inventory Budget

37
  Research and Development Budget
 Foreign Exchange Budget
 Sales and Services Budget.

Table No. 5.11.

Sales Budget(AED in millions)
Particulars 2009 - 10 2010 – 11 2011 – 12 2012– 13

B.E 2608 3377 3502 5685

R.E 2905 3666 3682 5685
ACTUALS 2987 5507 4654 8652

Analysis:
From the above table it indicates in the year 2003 – 2004 the actual is around .2987
millions. And gradually it is increased year by year and in the year 2006-2007 AED
8652 millions.

Graph No. 5.11.

Sales Budget

80

70

60

50

40 B.E
R.E
30
ACTUALS
20

10

0
2009 - 10 2010 – 11 2011 – 12 2012– 13

38
Inference:
The graph shows that in the year 2006-2007 the actual has been increased to a
greater extent.

Table No. 5.12

Consumption of Raw Materials (AED in millions)

Particulars 2009 - 10 2010 – 11 2011 – 12 2012– 13

B.E 840 1613 4210 4514

R.E 799 1650 1320 4150
ACTUALS 898 2690 2283 5260

Graph No. 5.12

Consumption of Raw Materials

6000

5000

4000
B.E
3000 R.E
ACTUALS
2000

1000

0
2009 - 10 2010 – 11 2011 – 12 2012– 13

39
 Analysis:
From the above table it indicates in the year 2009 – 2010 the actual is around
AED898 millions and gradually it is increased year by year and in the year 2012
-2013 AED 5260 Million. This is due to the fact that the sales have been more
than the revised estimated to meet this increase there is more consumption of
raw materials.
Table No.5.13
Power and Fuel / Budget (AED in millions )

Particulars 2009 - 10 2010 – 11 2011 – 12 2012– 13

B.E 18 27 30 39
R.E 19 26 34 40
ACTUALS 21 30 36 84

Analysis:
From the above table it indicates in the year 2009 – 2010 the actual is around AED
21millions and gradually it is increased year by and in the year 2012 – 2013 AED
84 million to greater extent.

40
 Graph No.5.13
Power and Fuel / Budget (AED in millions )

90

80

70

60

50 B.E

40 R.E
ACTUALS
30

20

10

0
2009 - 10 2010 – 11 2011 – 12 2012– 13

Inference:
he above graph shows that in the 2009-2010 the actuals has been increased to a
greater extent.
Table No. 5.14
Cash incentives
Particulars 2009 - 10 2010 – 11 2011 – 12 2012– 13

B.E 38 41 54 59
R.E 41 49 55 60
ACTUALS 42 46 58 68

Analysis:
From the above table it indicates in the year 2009 – 2010 the actual is around AED
42 millions and gradually it is increased year by and in the year 2012 – 2013 AED

41
68 million. This is due to the fact that the actual sales have been more than the
revised estimates. To meet this increase in sales incentives bonus has been paid to
the employees to increase production.
Graph No. 5.14
Cash Incentives
80

70

60

50
B.E
40
R.E
30 ACTUALS

20

10

0
2009 - 10 2010 – 11 2011 – 12 2012– 13

Inference:
The above graph shows that in the 2009-2010 the actuals has been increased to a
greater extent.

Table No. 5.15

Overtime Allowance
Particulars 2009 - 10 2010 – 11 2011 – 12 2012– 13

B.E 3 3 0 3
R.E 4 7 15 12
ACTUALS 6 12 20 18

Analysis:

42
 From the above table it indicates in the year 2009 – 2010 the actual is around
AED 6 million and gradually it is increased year by and in the year 2012 – 2013
AED 18 millions. To meet the increase in sales the overtime has also increased.
Graph No. 5.15
Overtime Allowance
35

30

25

20

15 B.E

10 R.E

0
2009 - 10 2010 – 11 2011 – 12 2012– 13

Inference:
The above graph shows that in the 2011-2012 the actuals has been increased to a
greater extent.

Table No. 5.16 Showing salaries and wages

Particulars 2009 - 10 2010 – 11 2011 – 12 2012– 13

B.E 2369 2359 2396 2606

R.E 2409 2384 2704 3539
ACTUALS 2428 2691 3793 4299

Analysis:

43
From the above table it indicates in the year 2009 – 2010 the actual is around AED
2428millions and gradually it is increased year by and in the year 2012 – 2013 AED
4299 million. This leads to the expenditure the division is not properly estimating
the increase in the wages due to improper estimation of the inflation effects.
Graph No. 5.16 Salaries and Wages

5000
4500
4000
3500
3000
2500 B.E

2000 R.E

1500 ACTUALS

1000
500
0
2009 - 10 2010 – 11 2011 – 12 2012– 13

Inference:
The above graph shows that in the 2006-2007 the actuals has been increased to a
greater extent.
Table No. 5.17
Printing and Stationary (AED in millions )
Particulars 2009 - 10 2010 – 11 2011 – 12 2012– 13

B.E 7 15 15 17
R.E 9 10 15 30
ACTUALS 10 13 28 35

44
Analysis:
From the above table it indicates in the year 2009 – 2010 the actual is around AED
10 million and gradually it is increased year by and in the year 2012 – 2013 AED 35
million. This leads to the expenditure shooting of leading to no control on the
expenditures.
Graph No. 5.17
Printing and Stationary
35

30

25

20

15 B.E

10 R.E

0
2009 - 10 2010 – 11 2011 – 12 2012– 13

Inference:
The above graph shows that in the 2012-2013 the actuals has been increased to a
greater extent.

45
 Chi - Square Table No. 5.18

Customer Satisfaction * GLPP’s Service Quality

Cross tabulation
Count

How successful do you

think is your company in
providing printing services
to your customers
Highly
Successful successful Total
How satisfied are your Successful 15 0 15
customers Highly 0 15 15
successful
Total 15 15 30

Chi-Square Test No 5.18

Asymp. Sig. Exact Sig. Exact Sig.

Value df (2-sided) (2-sided) (1-sided)
Pearson Chi-Square 30.000a 1 .000
b
Continuity Correction 26.133 1 .000
Likelihood Ratio 41.589 1 .000
Fisher's Exact Test .000 .000
Linear-by-Linear 29.000 1 .000
Association
N of Valid Cases 30
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 7.50.
b. Computed only for a 2x2 table

Inference: When customer expectations and business success were considered, tested and
analysed, it was found that customer expectations and business success do not show any
correlation.

46
 Chi - Square Table No. 5.19

Customer Satisfaction * GLPP’s Pricing

Cross tabulation
Count

How satisfied are your customers

Successful Highly successful Total
P Good 15 3 18
r Average 0 5 5
i Poor 0 7 7
c
e
Total 15 15 30

Chi-Square Test No 5.19

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 20.000a 2 .000
Likelihood Ratio 25.369 2 .000
Linear-by-Linear 16.644 1 .000
Association
N of Valid Cases 30
a. 4 cells (66.7%) have expected count less than 5. The
minimum expected count is 2.50.

Inference: When customer satisfaction/preference and pricing were considered, tested and
analysed, it was found that customer satisfaction/preference and price are associated.

47
 Chi - Square Table No. 5.20

Reliability * Customer preference

Crosstab
Count
How satisfied are your
customers
Highly
Successful successful Total
Reliability Good 15 0 15
Average 0 15 15
Total 15 15 30

Chi-Square Test No 5.20

Asymp. Sig. Exact Sig. Exact Sig.

Value df (2-sided) (2-sided) (1-sided)
Pearson Chi-Square 30.000a 1 .000
Continuity Correctionb 26.133 1 .000
Likelihood Ratio 41.589 1 .000
Fisher's Exact Test .000 .000
Linear-by-Linear 29.000 1 .000
Association
N of Valid Cases 30
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 7.50.
b. Computed only for a 2x2 table

Inference: When customer satisfaction and service reliability were considered, tested and
analysed, it was found that customer satisfaction and service exhibit a linear relationship.

Hypotheses Testing
The following hypotheses were tested based on the data collected
H0: Budgetary control measures do not impact profitability in respect of GLPP’s

operations

Ha : Budgetary control measureshave a direct impact on theprofitability of GLPP’s

operations

48
H0: Reliability, accuracy and competitive pricing are not the prime determinants of

customer preference in respect of Golden line Printing Press

Ha: Reliability, accuracy and competitive pricing are the prime determinants of customer

preference in respect of Golden line Printing Press

Based on the analysis of data regarding budget and budgetary control, the researcher

hereby rejects the null hypothesis and accepts the alternate hypothesis which states that

budgetary control measures have a direct impact on the profitability of GLPP’s operations

Based on the analysis of data regarding customer preference for service provider selection,

the researcher rejects the null hypothesis and accepts the alternate hypothesis which states

that :reliability, accuracy and competitive pricing are the prime determinants of customer

preference in respect of Golden line Printing Press

CHAPTER VI

FINDINGS

49
Some of the findings after the analysis of various reports of the company for a period form
2009-2010 to 2012-2013 are as follows:

1. The budgeting process allows for a midyear review by revising the budget
estimates, the variances in the year 2009-10 & 2010-11 are significant.

2. Variances are due to anticipated sale orders not materializing during the year,
which has resulted in the variations in the Operating estimates, Inventory and Cash
Flow Budgets.

3. The main reason for variance between the budgeted and actual is mainly due to the
over estimation of the project.

4. It is found that the variance caused is form postponing of the project from one year
to the next.

5. There are years where the actual is more than the budgeted estimate. This is mainly
due to not going with the thing according to the budgeted plans.

6. By looking at the various charts in budgeted operating estimates we say that there is
a substantial amount of variation between the budgeted and actual.

7. There is a decrease in materials and there is an increase in salaries and wages than
budgeted,

8. Reliability is an important variable in customer preference for service provider.

9. Customer loyalty and brand name play an important role in choosing a service
provider.

SUGGESTIONS

50
1. Capital and Revenue budget appear to be stand-alone budgets with no link

established. Once strategy for revenue is drawn up, capital budget should reflect

the gap between the facilities required to generate the revenue facilities

available.

2. The budget estimates can be linked with the actual expenditure incurred during

last year to avoid the huge variation in budgets and actual.

3. Budgets are either over estimated or under estimated. So the incremental basis

system must not be used, instead proper system can be adopted.

4. Responsibility accounting should be followed i.e. method of accumulating and

reporting and both budgeted and actual cost and revenue by individual mangers

of each division must be recorded.

5. Responsibility center can be adopted i.e. it is a section of an organization where

individual manger is held responsible for the performance of that section like

cost centre, investment centre and profit centre.

6. By using the financial accounting system as a major component which is

proposed to complete to provide quality data and report in format which

supports easier and better analysis.

51
 7. Identify extra expenditure spend towards a particular area and adopt measure to

control cost. Conservation of electricity, Minimization wastage of stationery

and other expenditure can contribute to reduction of unnecessary cost.

8. The projection for the future is required, the projection are done in the form of

budget estimations once in a year it consists of marketing budgets, operating

budgets and financial budgets these estimates are useful, it should be done

appropriately.

CONCLUSION

Printing industry is a flourishing industry in the UAE and has earned a pride of place in the

national economy. Golden Line Printing Press LLC is a major player in the industry. Cut throat

competition among the hundreds of firms is the hall mark of the industry. Technology up-gradation

entails huge investments. Rising input costs affect profitability of firms in the industry. Efficient

financial management is the key to survival and sustained profits. The proposed project will throw

light on the functioning of printing industry in UAE. This will highlight how a leading player in the

industry uses technology and its dominant position in the industry to derive competitive advantage

and lasting customer loyalty through proactive customer retention strategies.

Budgetary process should not be just a core of top management and financial department,

but there should be organization wide commitment. This should an exercise where senior

management sets realistic targets and requires departmental managers to produce their own

plans to achieve their goal.

To study on budgetary control shows how the use of the various statements of budget

improves decision making in relation to costing, control, transparency in administrative

activities and helps taking corrective measures more quickly. The study also throws light

52
on how crucial the budgetary control system is to coordinate the activities of various units

to realize the vision and objectives of the company.

This study on budgetary control has helped the researcher to gain lot of knowledge on the

management of financial resources and its allocation to fund various processes and

operation of the company.

BIBLIOGRAPHY

1. Prasanna Chandra,Financial Management: Theory and Practice, 7/e, 2008, Tata

McGraw-Hill Education.

2. I.M.Pandey, financial management: Principles and Practice 9/e, 2005, Vikas

publishing.

3. R.K Sharma Shashi K Gupta, financial management: Principal and Management, 7/e,

2002, Kalyani Publishers.

4. Dr.S N Maheshwari: management Accounting and financial control, 6/e, 1996, sultan

chand and sons.

5. M.Y.Khan, and P.K Jain: Basic financial management, 3/e, 1982, Tata McGraw-Hill.

6. A. W. Willsmore: business budget and budgetary control, 2/e1949, pitman&sons.

INTERNET SITES w

www.google.com

www.google.co.in

www.google.ae

www.glppu.com

53
APPENDIX

QUESTIONNAIRE

A STUDY ON BUDGET AND BUDGETARY CONTROL WITH REFERENCE TO

GLPP LLC, SHARJAH, THE UNITED ARAB EMIRATES
QUESTIONNAIRE FOR EMPLOYEES

1. Name (Optional): ---------------------------------------------------------------------------

2. Gender: (a) Male (b) Female

3. Address:--------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------

4. Designation:----------------------------------------------------------------------------------

5. E-mail :---------------------------------------------------------------------------------------

6. Contact Phone No.--------------------------------------------------------------------------

7. Age Group: (a) Below 25 (b) 25-35 (c) 35-45 (d) 45 and above

8. Your income Group: (a) AED 2000 -3000 (b) AED 3000- 4000

(c) AED 4000-5000 (d) AED 5000-10000 (e) AED 10000& Above

9. Marital status: (a) Single (b) Married (c) Divorced (d) Others

10. Education; (a) High School (b) Technical Diploma (c) Graduate (d) Post

graduate

(e) Graduate Professional (f) Post graduate Professional

11. How long have you been working in this company? ----------------------------------

12. What are the different kinds ofprinting services you provide?

(a) Printing (b)Publishing (c Packaging services (d) Other value added services

13. How successful do you is your company in managing printing business?

54
 (a) Not very successful (b) Not successful (c) Neutral

(d) Successful (e)Very successful

14. What are the major strengths of your company?

(a) Loyal customers (b) Customer centric marketing (c) Technological

leadership (d) Competitive pricing (e) Superior quality service

15. What are the key success factors that give market leadership to your company?

(a) Service Quality (b) Pricing (c) Technological leadership (d) One stop

total logistics solution for the customer (e) Any other factor (Specify) ------

16. According to you, what are the major opportunities for of your company?

(a)2020 Expo (b) Business boom after recession (c) UAE’s accelerated growth

(d) Price wars (e ) Any other factor (Specify) -------------------------------

17. How satisfied are your customers?

(a) Highly dissatisfied (b) Dissatisfied(c) Neither satisfied nor dissatisfied

(d) Satisfied (e ) Highly satisfied

18. What is the total number of customer complaints received in logistics division last year?

(a) Less than 25 (b) Above 25 but less than 50 (c) 50 and above but less than 75

(d) 75 and above but less than 100 (e ) 100 and above

19. Do you have a proper system of handling customer complaints?

(a) Yes (b) No

20. What is the number of customers you had business last year? ---------------------------

21. Out of the above how many are there who availed your services repeatedly? ---------

22. How many of them avail same services from others (your competitors) as well?------

23. What customer retention strategy does your organization follow?

(a) Pricing (b) Ethical and transparent dealings (c) One stop solution for all

customers’ printing needs (d) Best in class customer service (e ) Brand image

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 24. What do you do better than your competitors?

(a) Uncompromising quality service at an affordable price point (b) Most reliable

Service provider in the industry (c) Total one stop Logistics Solutions provider

(d) Class leading experience in providing printing service

CUSTOMER PREFERENCE SURVEY QUESTIONNAIRE

1. Name of Company

2. Address

3. Country

4. Tel 5. Fax 6. Website

7. Contact person: 8. E-mail:

9. Designation:

10. How satisfied are you with GLPP’s services?

Not at all satisfied No opinion somewhat satisfied

Satisfied Quite satisfied

11. Have you ever contacted GLPP regarding any service complaint?

YES NO

12. Based on your experience with GLPP , would you like to continue using its services?

YES NO

13. Based on your experience with Golden Line Printing Press would you recommend
GLPP to other firms in the industry?

YES NO

14. What makes GLPP’s services different from competitors?

Reliability Speed Economy Service Quality

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15. How do you rate the behaviour of GLPP employees towards a customer like you?

Excellent Very good Good Average Poor

16. Do you suggest any improvement in GLPP’s Customer Complaint Handling

Mechanism?

YES NO

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