Toaz - Info A Project Report On Budgetary Control PR

“A STUDY ON BUDGETARY CONTROL at ANAND AGROCHEM INDIA LIMITED”
A
REPORT ON
Budgetary Control System in
Anand Agrochem India Limited
Paint and coating manufacturing company
Submitted By: MONIKA PEDNEKAR

Emba- 18020
A Report submitted to the institute in partial fulfillment

of the requirement for the award of Emba for the year
2018-2020.
Under the guidance of: Prof. L.N. CHOPADE
MUMBAI EDUCATIONAL TRUST -1-

CONTENTS
SL NO PARTICULAR PAGE NO
1 Executive Summary 3
2 Objective of the Study 4
3 Introduction 5
4 Industrial Profile 6-7
5 Company Profile 8
6 Organization Profile 9-13
7 Introduction to Budgetary Control 14-15
8 Data Analysis and Interpretation 16-24
9 Findings 25
10 Suggestion 26
11 Conclusion 27
12 Bibliography 28

EXECUTIVE SUMMARY
Anand Agrochem India Limited is the co-operative company. The project has been
undertaken on the topic “A STUDY ON BUDGETARY CONTROL at Anand Agrochem India
Limited
” As budgetary control helps to understand goal of the concern whether it may be short or
long term goal.
As the budget is playing an important role in any organization which helps to compare the
actual performance with the budgeted performance. The concept of the Budget and way of
adaptability, which creates new challenges to industrial sector for surviving in this current
competitive edge. It indicates the progress of the concern by way of its sales or profit, market
shares, process of the concern etc.

OBJECTIVES OF THE STUDY:
1) To study the existing budgetary controls method & practices at Anand Agrochem India
Limited.
2) To compare the budgeted figures with actual figures and Comparison of financial
statements for different financial years.
3) To find out any loopholes in the budgetary control system.
4) To Forecast the future and plan to avoid losses but more positively to maximize the
profits
METHODOLOGY:
PRIMARY SOURCE:
The information of the budgetary control where obtained from.
Departmental heads.
 Discussion with manager of costing.
 Budgetary control statement.
SECONDARY SOURCE
This type means secondary data are collected from
 Office records.
 Files & manual.
 Annual Reports.

INTRODUCTION:
Budgetary control is the important aspect for industry development because budgets
provide yard stick against which the actual performance is measured. It always helps to the top
management to take the appropriate decision to motivate and directing their personnel towards
well set plans and policies of the company.
By considering the advantage of the budgetary control the Anand Agrochem India
Limited also adapted this system. In Anand Agrochem India Limited they were maintaining the
monthly budget with the help of daily reports. The daily reports must contain the item like
production efficiency, sugar cane utilization, man power requirement, consumption of
electricity, wages etc. With this the budgetary control manager prepares a monthly profitability
statement of a particular month & submitted that one of the appropriate authorities like
production manager. By this statement or submitted report, they will take correct decision about
the organizational activities.
A study has been conducted on the “BUDGETARY CONTROL” which is most
probably adopted in the Anand Agrochem India Limited organization.
Budgetary control i.e. a most powerful tool to the management for performing its function
i.e. formulating plans, coordinating activities and controlling operations etc, effectively as well
as effectively.
Now a day, the number of companies are competing with each other for the survival in the
present market. Whether it may be other sugars industries. but no one company can comete
without proper planning. So, the Cost-Budgetary control may help them to make proper
decision in the number of various fields.
Budgetary control is applied to a system of management & accounting control by which
all operations & output are forecasted as for ahead as possible. And actual results are known
that are compared without budget estimates.
The budgetary system integrates key managerial functions as it links top management’s
planning function with the control function performed at all the levels in the managerial
hierarchy. A more accurate budget can be developed for those activates where direct
relationship exists between inputs & outputs. These inputs, output is base for developing
budgets & exercising control.

INDUSTRIAL PROFILE
Indian sugar industry
India is the largest consumer & second largest producer of sugar in the world.
The Indian sugar industry second large agro industry Located in the rural India. The
Indian sugar has a turnover of rs.500 billion per annum & it contributes almost rs.22.5 billion to
the central & state exchequer as tax, cess & excise duty every year. Indian sugar industry has been
a focal point for a socio-economic development in the rural areas. About 50 million sugarcane
farmers & a large number of agricultural labors are involved in sugarcane cultivation & ancillary
activities, constituting 7.5 % of the rural population. Besides, the industry provides employment to
about 2 million skilled/semi-skilled workers & others mostly from the rural areas. The industry not
only generates power for its own requirement but surplus power for export to the grid based on by-
product-bagasse. It also produces ethyl alcohol, which is used for industrial &portable uses, & can
be used to manufacture ethanol, an ecology friendly &renewable fuel for blending with petrol.
The sugar industry in the country uses only sugarcane as input; hence Sugar Company’s
have been established in large sugarcane growing states like Uttar Pradesh, Maharashtra,
Karnataka, Gujarat, and Tamil Nadu & Andhra Pradesh. In the year 2015-06 these six states
contributed more than 85 % of total sugar production in the country; Uttar Pradesh, Maharashtra &
Karnataka together contribute more than 65 % of total production

Product Profile:
The main & direct product of the sugarcane is a sugar. The factory has by-products like
distillery, arrack, co-generation & ethanol etc.
SUGARCANE
MAIN PRODUCTION BY PRODUCT
Sugar distillery
L arrack
M compost
S1 power by Co-generation
S ethanol
L=large M=medium S1=small S2=small2
Size of bags: 50kg &100kg
Packing: plastic & jute bags.

COMPANY PROFILE:
LOCATION : Hotel Ajanta Complex, Juhu Tara Road, Nr HTC Bank,
Santacruz, Mumbai-400054
District: MUMBAI
ESTABLISHED IN : 25/11/1999
REGESTERED NO : 13450
WEEKLY HOLIDAY : SUNDAY
WORKING SHIFT : 12 pm to 8 pm
M.D : Srinath V Chaturvedi, Raju Chaturvedi, Dharamveer Singh
WORKERS : 947
PRODUCT : Sugar
BY PRODUCT : Two Types Product
 Molasses
 Bagasse
Vision
 To become one of the dignified companies in the country.
 To give due importance for the development of society.

Mission
To employee support and farmers development for the fullest extent.

Improving our operation activities.
Quality policy:
The quality policy is to meet & exceed customer satisfaction by
 Adopting better quality management system practices
Setting suitable objectives & targeted of reviewing them periodically for continually improving
the effectiveness of the quality management system

ORGANIZATION PROFILE
1] ADMINISTRATIVE DEPARTMENT:
Administrative department is classified into four sections sales, purchases, store, time
office and security.
A) TIME OFFICE SECTION:
Function-
1) Distribution of salary according to the workers attendance.
2) Sanctioning of leaves to workers.
3) Maintaining working bell.
4) It maintains present and absent record daily.
5) It reports daily attendance to concerned section.
6) Showing the absent report to the HOD’
7) It maintains salary register book
There are 581 workers working in this factory. As this is a new establishment of all
working on daily wages. Within a few months the management is going to take workers as
permanent at present only on leave in a month is sectioned to the workers.
The Types of Leaves:

1. Sick leaves:
Sick leave provided to employees 15 days Per year
2. Casual leaves:
Casual leave provided to employees 12 days Per year
3. Earn leaves:
If employee attends 30 days in a month then he is eligible for 3 days Earn leave

B) TELEPHONE OPERATING SECTION:
In this section EPABX system is i.e. “Electronic Private Automotive Branch

Exchange”. Hear only one person is operating in this section. He is the person who connects
the incoming calls to different departments of the factory and also out going calls.
C) WATCH & WARD SECTION:

The main function of this section is to secure factor related assets. It maintains books
regarding in & out vehicles & visitors. Report to concerned section & to general accounts.
Total number of security guards is 35. There are 7 to 8 security guards in every shift.
D) COMPUTER SECTION:
The total number of employees working in this department is 4. This section is to maintain
all types of records that are very important for the organization and the following departments are
computerized in the factory,
Weight bridge department
a) Cane accounts department

b) Time office department
c) Laboratory department
d) Stores department
e) Sales department
f) Purchase department
g) General accounts department
h) Sales accounts section
PURCHASE SECTION
This section gives identity card only. This section is also sent notice to the concerned
members on behalf of the factory. They maintain two types of books of accounts viz.
MUMBAI EDUCATIONAL TRUST - 10 -

It is also an important section in administrative department in performing the activities of

purchasing. In this section there are two employees, one is purchase manager and another one is
purchase assistant. The purchase manager issues the purchase order from various section of the
factory. He estimates the cost purchase and accordingly he goes for direct purchases or purchases
through purchase committee.
SALES SECTION
This section will take care of all the sales transactions like sale of
 Sugar,
 Molasses,
 Bagasse.
 Scrap material.
Function
1) Getting order from parties.
2) Arranging for delivery to parties.
3) Maintaining record of sales.
4) Sending report to managing director
5) Stocking planning go down maintenance
Sales of the sugar are done in two ways
a) free sales
b) levy sales
a) Free sales:
Government allows the sugar factory to sale certain percentage of sugar by calling
tender is known as free sales.
b) Levy sales:
This means to sell the product to the govt. i.e. to sell the product under the guidance of
the govt

2) Account section
Finance is the lifeblood of business one cannot imagin a business without finance
department because it is the central point of all business activities. Finance dept. of RSSKN
factory plays a very important role, as it is here that decision with to procurement & utilization
of funds are taken. Such decision includes the preparation of various budgets, allocation of
funds for various activities or division of the firm as well as distribution of profits etc.
An account section is also including in the finance dept. it helps in achieving the
objectives of the company. Proper management of the fund is necessary for effective
management
MECHANICAL SECTION
This includes all the mechanical process that is right from the cane weighment till milling
(obtaining of sugar juice) for further processing. This section includes 4 main steps they are….
a. Cane weighment arrangements

b. Cane unloading arrangement
c. Cane preparation
Cane Weighment Arrangements:

Cane weighment is totally computerized process. Hear the cane weightment is carried
through electronic platform called “weighs bridge”. This electronic platform is of two types. One
with the capacity of 40 tons for lorry and tractors and other with a capacity of 10 tones for only
cart.
Hear after weighing the cane a slip is provided so that particular farmer which has the
details of total weight of the cane, total trips, timing, vehicle number, variety of sugarcane and
other details. And after this when the vehicle comes back after unloading the sugar cane, empty
vehicle weight all their data stored in the computer and final copies are listed for further actions.

Cane unloading arrangements:

Hear the weighed sugar cane is unloaded and sent further for cane preparation. Further
unloading cane there are 2 unloaders with the help of sling attached instruments cane is loading on
the feeding table.
Cane preparation:
After feeding the sugar cane on feeding tables with the help of levelers which avoid
overloading of sugar cane is sent to primary cutter, which cut the sugar canes in to small pieces,
further fine fibers are obtained from there process by passing them in the fibrizer.
Milling:
After fibrizering the cane passing the prepared fiber cane through a set of mills carries on
milling weighted hot water is also added in the course of crushing for better extraction of juice.
After crushing the juice is sent for further process
STORES SECTION
Various section spare parts are stored in stall system and all the units are computerized and
given a code number. Bin card and other system are followed hear. These stores materials are
normally required for preventive maintenance during seasons and off seasons for servicing and
overalling
GODOWN SECTION
Godown section is also one of the important parts of the factory. Where the finished sugar is
stored. This factory has 15 godowns; there are 2 big godowns its capacity 2 lakhs bags and other
13 godowns capacity 30000 bags.

CONCEPT OF BUDGETING
One of the primary objects of cost accounting is to provide information to business management
for planning and control. Budgeting act as a toll of both planning and control. Budgeting is a
formal process of financial planning using estimated and accounting data.
DEFINITION OF THE BUDGETING:
The institute of cost and management accounts (UK) defines

A budget as a “a financial and/ or quantities statement, prepaid and approved prior to
a defined period of time, of the policy to be pursued during that period of the
purpose of attaining a given object. It may include income, expenditure and the
payment of capital”.
ESSENTIALS OF BUDGET:
It is prepared in advance based on a future plan of action
It relates to a future period and based on objectives.
CLASSIFICATION OF BUDGET:
According to time:
 Long term budgets: A budget is designed for a period of 5 to 10 years.
 Short term budgets: A budget is a generally prepared for a period of not
exceeding 5 years.
 Current budget: the budgeted is prepared for a month or a quarter.
According to flexibility
 Fixed budget: A budget prepared on the basis of fixed or a standard Level of
activity.
 Flexible budget: a budget is prepared depend upon the level of the
Activity.
NEED FOR THE STUDY:
 To make myself well known about organization structure at Anand Agrochem India
Limited.
 To get the knowledge about budgetary performance through trend analysis antivirally
performance of Anand Agrochem India Limited through primary and secondary data.
 So, studying the various practices carried out in finance will be helpful to me in my
MBA course.
LIMITATIONS:
Considering the scope mentioned above, some or few limitations are arising i.e. the Anand
Agrochem India ltd. is big organization. This finance & accounts is also big departments. But due
to shortage of training period, I am concentrating only on the budgetary control of costing
departments.
 Time constraints.
 Only Three years data is used for the analysis of the study

DATA ANALYSIS
AND
INTERPETATION

1) COMPARISION OF PREVIOUS BUDGETED FIGURES WITH

SUBSEQUENT YEAR
RECEIPTS
2016- 2017-
2016-2017
Sl. 20017 Actual Actual 2018 Actual
Particular At Rs. In
No At Rs. In Income Income At Rs. In Income
Lakhs
Lakhs Lakhs
1 Sugar Sales 9487.50 1985.40 7187.50 7189.50 6440.00 1593.86
Sale of By
1053.50 57.37 1046.36 679.13 909.36 2672.92
2 Products
3 Dividend 7.55 7550.46 7.55 360.50 3.60 1371.05
4 Interest on Loans 14.40 1285.63 2.00 1003.17 3.02 5619.10
2016-17 Actual Exp's 2017-18 Actual Exp's

20015-016 Actual exp's
Sl. No Particulars At Rs. In At Rs.in At Rs. In At Rs. In
At Rs. In Lakhs At Rs.in Lakhs
Lakhs Lakhs Lakhs Lakhs
1 Sugarcane purchased 7250.00 6162.81 5230.00 5230.00 4400.00 5616.18

2 Reconstruction expenses 2.00 79.28 3.00 3.00 3.00 15.13
3 Vehicles management 8.00 114275.50 8.00 80.00 12.00 108,00
4 Interest on loan 1800.00 756040.98 1800.00 18000.00 1600.00 8268.57
5 Salary to staff 264.00 48219.82 264.00 18000.00 338.00 70.49
6 Auditors fees 2.00 1874.94 2.50 2.50 3.00 2.79
7 Rent and taxes 8.00 18723.36 20.00 200.00 20.00 15.98
8 Insurance 10.00 51.71 10.00 100.00 10.00 0.17

Repairs and maintenance of
9 200.00 191679.06 300.00 3000.00 300.00 235.84
machinery
Telegram and telephone
10 5.00 2655.46 4.00 40.00 3.00 2.95
charges
11 Bank commission 4.00 2960.78 4.00 ------- 1.50 0.74
Comparisons of Actual expenses
2) COMPARISION OF PREVIOUS BUDGETED FIGURES WITH

SUBSEQUENT YEAR
RECEIPTS
2015-2016 2016-2017 2017-2018 2018-2019
At Rs. In At Rs. In At Rs.in At Rs. In
Sl. No Particulars Lakhs Lakhs Lakhs Lakhs
1 Sugar Sales 6160.00 9487.50 7187.50 6440.00
2 Sale of By Products 877.21 1053.50 1046.36 909.36
3 Dividend 10.00 7.55 7.55 3.60
4 Interest on Loans 3.00 1,44 2.00 3.02
5 Loss 1370.89 1007.51 ------- -------
TOTAL 8421.10 11557.50 8243.41 7355.98
PAYMENTS
2015-2016 2016-2017 2017-2018 2018-2019
Sl. Amt Rs. In Am Rs. In Am Rs.IN Amt Rs. in
No Particulars Lakhs Lakhs Lakhs Lakhs
1 Sugarcane purchased 4900.00 7250.00 5230.00 4400.00
2 Reconstruction expenses 10.10 2.00 3.00 3.00
3 Vehicles management 6.00 8.00 8.0 12.00
4 Interest on loan 1400.00 1800.00 1800.00 1600.00
5 Salary to staff 250.00 264.00 264.00 338.00
6 Auditors fees 3.00 2.00 2.50 3.0
7 Rent and taxes 6.00 8.00 20.00 20.00
8 Insurance 10.00 10.00 10.00 10.00
9 Repairs and maintenance of 300.00 300.00 300.00

machinery
10 Telegram and telephone charges 4.00 5.00 4.00 3.0
11 Bank commission 1.75 4.00 4.00 1.50
12 Other expenses 1831.00 1904.00 442.50 418.50
13 Net Profit carry forward to C/B 155.41 246.98
TOTAL 8421.10 11557.50 8243.41 7355.98
A) 2016-17 Receipts.
2015-2016 2016-2017
Increase Decrease
Sl. No Particulars At Rs. In At Rs. in
In % In%
Lakhs Lakhs
1 Sugar Sales 6160.00 9487.50 54.00% -------
2 Sale of By Products 877.21 1053.50 20.09% -------
3 10.00 7.55 ------ 24.50%

Dividend
4 Interest on Loans 3.00 1.44 ------ 52.00%
5 Loss 1370.89 1007.51 ------ 26.50%
TOTAL 8421.10 11575.10 37.45% -------
INTREPRETATION
 Sugar sales increased by 54.00% in the year 2016-2017 compared to 2015-2016.

 Sales of by product decreased by 20.09% in the year 2016-2017 compared to 2015-2016
 Interest on loans decreased by 52.00% in the year 2017-2018 compared to 2016-2017

PAYMENTS: -2016-2017
2015-2016 2016-2017
At Rs.in At in Rs. Increase Decrease
Sl. No Particulars Lakhs Lakhs In % In %
1 Sugarcane purchased 4900.00 7250.00 47.95% ------
2 Reconstruction expenses 10.10 2.00 ------ 80.20%
3 Vehicles management 6.00 80.00 33.33% ------
4 Interest on loan 1400.00 1800.00 28.57% ------
5 Salary to staff 250.00 264.00 5.60% ------
6 Auditors fees 3.00 2.00 ------ 33.33%
7 Rent and taxes 6.00 8.00 33.00% ------
8 Insurance 10.00 10.00 ------ -------
9 Repairs and maintenance of machinery 300.00 ------ ------
10 Telegram and telephone charges 40.00 5.00 ----- 87.50%
11 Bank commission 1.00 4.00 350% -----
12 Other expenses 1831.00 1904.50 4.01% ------
13 Net Profit carry forward to C/B ------- ------- ----- ------
TOTAL 8421.10 11557.50 37.24% ------
INTREPRETATION
 Sugarcane purchased increased by 47.95% in the year 2016-2017 compared to 2015-2016

 Reconstruction expenses decreased by 80.20% in the year 2016-2017 compared to 2015-
2016.
 Auditor fees decreased by 33.33% in the year 2016-2017 compared to 2015-2016.
 Bank commission increased by 350% in the year 2016-2017 compared to 2015-2016.
B)2017-2018 Receipts
2016-2017 2017-2018
At in Rs. In At Rs. In Increase Decrease
Sl. No Particulars Lakhs Lakhs % %
1 Sugar Sales 9487.50 7187.0 -------- 24.24%

2 Sale of By Products 1053.50 1046.36 -------- 0.68%
3 Dividend 7.55 7.55 -------- ------
4 Interest on Loans 1.44 2.00 39.8% ------
5 Loss 1007.51 ------ ------ ------
TOTAL 11557.50 8243.41 ------- 28.67%
INTREPRETATION
 Sugar sales decreased by 32% in the year 2017-2018 compared to 2016-2017

 Sales of by product decreased by 0.68% in the year 2017-2018 compared to 2016-2017
 Interest on loans increased by 28% in the year 2017-2018 compared to 2016-2017

PAYMENT:2017-2018
2016-2017 2017-2018
At Rs. In At Rs. In Increase Decrease
Sl. No Particulars Lakhs Lakhs % %
1 Sugarcane purchased 7250.00 5230.00 ------ 27.87%
2 Reconstruction expenses 2.00 3.00 50% ------
3 Vehicles management 8.00 8.00 ------- ------
4 Interest on loan 1800.00 1800.00 ------ -------
5 Salary to staff 264.00 264.00 ------ ------
6 Auditors fees 2.00 2.50 25% ------
7 Rent and taxes 8.00 20.00 60% -----
8 Insurance 10.00 10.00 ------ ------
9 Repairs and maintenance of machinery 300.00 300.00 ------ ------
10 Telegram and telephone charges 5.00 4.00 ----- 20%
11 Bank commission 4.00 4.00 ----- ------
12 Other expenses 1904.00 442.50 ----- 77%
13 Net Profit carry forward to C/B 155.41 ----- ------
TOTAL 11557.50 8243.41 ------ 29%
INTREPRETATION
 Sugar purchased decrease by 27.87% in the year 2017-2018 compared to 2016-2017

 Reconstruction expenses increase by 50% in the year 2017-2018 compared to 2016-2017
 Rent and taxes increased by 60% in the year 2017-2018 compared to 2016-200
C)2018-2019 Receipts
2017-2018 2018-2019
Increase Decrease
Sl. No Particulars At Rs. In At Rs. In
% %
Lakhs Lakhs
1 Sugar Sales 7187.00 6440.00 ----- 10.40%

Sale of By Products 1046.36 909.36 ------ 13.10%

2
3 Dividend 7.55 3.60 ------ 52.32%
4 Interest on Loans 2.00 3.02 33.78% -----
5 Loss ------ -----
TOTAL 8243.41 735598000 ------ 10.77%
INTREPRETATION
 Sugar sales decreased by 10.40% in the year 2018-2019 compared to 2017-2018

 Sales of by product decrease by 13.10% in the 2018-2019 compared to 2017-2018
 Interest on loan increased by 33.78% in the 2018-2019 compared to 2017-2018
PAYMENTS: -2018-2019
2017-2018 2018-2019
Sl. Increase Decrease
Particulars At Rs. In At Rs. In
No % In %
Lakhs Lakhs
1 Sugarcane purchased 5230.00 4400.00 ----- 16%
2 Reconstruction expenses 3.00 3.00 ----- -----
3 Vehicles management 8.00 12.00 50% ------
4 Interest on loan 1800.00 1600.00 ------ 11.11%
5 Salary to staff 264.00 338.00 22% -----
6 Auditors fees 2.50 3.00 17% -----

7 Rent and taxes 20.50 20.00 ------ 2.43%
8 Insurance 10.50 10.50 ------ -----
Repairs and maintenance of
9 machinery 300.50 300.00 ------ 0.16%
10 Telegram and telephone charges 4.50 3.00 ------ 33.33%
11 Bank commission 4.00 1.50 ------ 63%
12 Other expenses 442.50 418.50 ----- 5.00%
13 Net Profit carry forward to C/B 155.41 246.98 58.92% ----
TOTAL 8243.41 7355.98 ------ 11%
INTREPRETATION
 Sugarcane consumption is decreased by 16%in the year 2018-2019 compared to
2017-2018
 Vehicles management costs are increased by 50% in the year 2018-2019 compared
to 20007-2018
 Bank commission is decreased by 63% in the year 2018-2019 compared to 2017-
2018
FINDINGS:
 In Anand Agrochem India Limited both monthly operation plan and annual operation plan
are prepared ascertaining the budgeting performance with actual performance.
 Budgetary control system is adopted for checking the industrial performance
 Sugar sales increased by 54.00% in the year 2016-2017 compared to 2015-2016-
 Interest on loans decreased by 39.8% in the year 2017-2018 compared to 2016-2017
 Sugarcane purchased increased by 47.95% in the year 2016-2017 compared to 2015 – 2016
 Sugar purchased decrease by 27.87% in the year 2017-2018 compared to 2016- 2017
 Vehicles management costs are increased by 50% in the year 2018-2019 compared to
20007-2018


SUGGESTIONS
 Accurate position of the business cannot be estimated:

 It arises due to inflationary pressure and change in Government policies all these
affect the budgeting performance.
 Anand Agrochem India Limited can carry out some promotional activities, so as to
increase its sales and beat the competition
 Use of quarter Budget it leads to chances of improvement or modification.
 Quarter Budget helps industrial concerns to checks its actual performance. After
ascertaining the actual performance if any modification requires that can be adjusted
in next quarter.
 Anand Agrochem India Limited may appoint specialized and experienced finance
manager to improve its finance performance.
 The company should have proper co-ordination between finance and marketing
department.
 The company should have close watch on the market which helps to make new
strategies.

CONCLUSION:
From the study it can be concluded that to know that budgetary control is treated as one of
the better techniques for minimizing cost and maximizing profit in Anand Agrochem India
Limited. Budgetary control technique Plays important role in the profit making or smooth
running of the company
It co ordinates all the departments like Finance, Marketing, Production in the company. It
makes the decentralization of authority in the organization which helps organization goal with
in stipulated period of time. Budgetary control acts as safety for an organization because it helps
to identify business risk and necessary steps can be taken to avoid the risk.
Budgetary control techniques help to know how the available monetary resources can be
utilized effectively. This technique focusses on efficiency in the allocation of resources in
particular time. As the finance department is the soul of any organization. Budgetary control
helps the organization by making finance department effectives

BIBOLOGRAPHY
 Financial details from finance department “ANAND AGROCHEM INDIA

LIMITED” Sale and purchase details from sales and purchase department
from “ANAND AGROCHEM INDIA LIMITED”.
 Budgetary control system details from head of controlling budgetary system.

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“A STUDY ON BUDGETARY CONTROL at ANAND AGROCHEM INDIA LIMITED”

Submitted By: MONIKA PEDNEKAR

A Report submitted to the institute in partial fulfillment

MUMBAI EDUCATIONAL TRUST -1-

2 Objective of the Study 4

4 Industrial Profile 6-7

6 Organization Profile 9-13

7 Introduction to Budgetary Control 14-15

8 Data Analysis and Interpretation 16-24

MUMBAI EDUCATIONAL TRUST -2-

undertaken on the topic “A STUDY ON BUDGETARY CONTROL at Anand Agrochem India

long term goal.

shares, process of the concern etc.

MUMBAI EDUCATIONAL TRUST -3-

OBJECTIVES OF THE STUDY:

3) To find out any loopholes in the budgetary control system.

MUMBAI EDUCATIONAL TRUST -4-

MUMBAI EDUCATIONAL TRUST -5-

Indian sugar industry

MUMBAI EDUCATIONAL TRUST -6-

MAIN PRODUCTION BY PRODUCT

MUMBAI EDUCATIONAL TRUST -7-

 To give due importance for the development of society.

To employee support and farmers development for the fullest extent.

MUMBAI EDUCATIONAL TRUST -8-

A) TIME OFFICE SECTION:

The Types of Leaves:

MUMBAI EDUCATIONAL TRUST -9-

B) TELEPHONE OPERATING SECTION:

In this section EPABX system is i.e. “Electronic Private Automotive Branch

C) WATCH & WARD SECTION:

a) Cane accounts department

MUMBAI EDUCATIONAL TRUST - 10 -

It is also an important section in administrative department in performing the activities of

MUMBAI EDUCATIONAL TRUST - 11 -

a. Cane weighment arrangements

Cane Weighment Arrangements:

MUMBAI EDUCATIONAL TRUST - 12 -

Cane unloading arrangements:

MUMBAI EDUCATIONAL TRUST - 13 -

DEFINITION OF THE BUDGETING:

The institute of cost and management accounts (UK) defines

NEED FOR THE STUDY:

MUMBAI EDUCATIONAL TRUST - 15 -

MUMBAI EDUCATIONAL TRUST - 16 -

1) COMPARISION OF PREVIOUS BUDGETED FIGURES WITH

2016-17 Actual Exp's 2017-18 Actual Exp's

MUMBAI EDUCATIONAL TRUST - 17 -

2 Reconstruction expenses 2.00 79.28 3.00 3.00 3.00 15.13

3 Vehicles management 8.00 114275.50 8.00 80.00 12.00 108,00

4 Interest on loan 1800.00 756040.98 1800.00 18000.00 1600.00 8268.57

5 Salary to staff 264.00 48219.82 264.00 18000.00 338.00 70.49

6 Auditors fees 2.00 1874.94 2.50 2.50 3.00 2.79

7 Rent and taxes 8.00 18723.36 20.00 200.00 20.00 15.98

8 Insurance 10.00 51.71 10.00 100.00 10.00 0.17

11 Bank commission 4.00 2960.78 4.00 ------- 1.50 0.74

Comparisons of Actual expenses

2) COMPARISION OF PREVIOUS BUDGETED FIGURES WITH

MUMBAI EDUCATIONAL TRUST - 18 -

1 Sugar Sales 6160.00 9487.50 54.00% -------

2 Sale of By Products 877.21 1053.50 20.09% -------

3 10.00 7.55 ------ 24.50%

4 Interest on Loans 3.00 1.44 ------ 52.00%