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Sekha M.


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M/s A B Sugars Limited (ABSL) is a private sector company with varied business interest including sugar, ABSL, formerly known as Guru Teg Bahadur Sugar ltd, It was taken over by Chadda Group in the year 1997, operates the sugar plant in village Randhawa in Dasuya Tehsil in Hoshiarpur District in Punjab, The capacity of Sugar Plant is 7000 TCD, It is from those few Sugar mills who have ushered in the new technologies in business such as installation of DCS (SCADA) system for mill.

Due to emphasis on the quality throughout the process, it produce high quality of sugar both in terms of grain size and color which leads to better realization in comparison to competitors, It have installed high pressure and efficient boiler and turbine to generate power to the tune of 33MW,excess power about 20MW is exported to Grid and sold to Punjab State Electricity Board. Company have bio composting process in its Distillary.In bio-composting process windows are prepared from press mud which is available from sugar unit.

To analyze variance of actual performance with the target


To highlight the key areas where actions needs to be taken. To learn and understand the budget forecast, activity planning, preparation of budget, monitoring and

controlling of budget, To ensure availability of adequate working capital for efficient operation of plants,

Budget is company’s income and expenses for some

period in the future.Budget.

With a budget,a company is able to carefully look at

how much money is taking in a given period by a
company and figure out the best way to divide it among a variety of categories.

1. 2. 3.

Definition of Objectives, Identification of budget factor, Budget Committee and Controller,

5. 6.

Budget Manual,
Budget Period, Standard of Activity or Output.


Long term

(b) Short


Fixed Master Budget Sales Budget Budget

(d) Flexible (e) (f)

(g) Purchase

Budgeting ia an exercise in allocating scarce

economic resources among alternative uses.The necessity of budgeting arises out of the scarcity of

economic resources and the number of alternative uses
in which these scarce resources can be deployed.

To prevent wastes.

To control economic expenditures.
To ensure availability of adequate working capital for efficient operation of plants. To ensure adequate return on capital employed. To identify and bring to the light areas where prompt action / remedial actions are required to be taken up by the management. To facilitate the control process by comparing actual results with

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plan and provide feedback.

No system of planning can be successful without having an effective and efficient system of control. Budgeting is closely connected with control. The exercise of control in the organization with the help of budget is known as budgetary control.

Establishment of budget for each function and section of the

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organization. Executive responsibility in order to perform the specific tasks so that objectives of the company may be attained, Continues comparison of the actual performance with that of the budget and placing the responsibility of executives for failure to
achieve the desired result a given in the budget.

Taking suitable action to achieve the desired objective if there is a Revision of budgets in the light of changed circumstances.

variation of the actual performance from the budgeted performance.


Variance Analysis ,

(b) Responsibility Accounting, (c)

Adjustment of funds ,

(d) Revised


ABS LTD. follows ZERO BASED BUDGETING system to prepare its budgets. Zero Base Budgeting is an expenditure control device

where each divisional head has to justify the requirement of funds for each head of the expenditure and prepare the budget accordingly, without reference to

the past budget.

Priority allocation of scarce resources.

It ensures the maximum efficiency and the areas of wasteful
expenditures are easily identified and eliminated. It provides opportunity to the management to allocate

resources for various activities only after having a thorough
cost-benefit analysis.

The technique can be used for the introduction and implementation of the system of Management By Objectives.

exploratory research and personal interviews, It is unstructured and informal way to get information about the company, all other related data to complete project had collected through the research and survey, Experience survey had been conducted in order to gather information from the knowledgeable person on the issues relevant to the research project

Primary datai). Budgetary control as periodic systems,,

ii).Company websites,

Secondary data-

i).Balance sheet,
ii).profit and loss account, iii).annual budget,

1. 2. 3.

Time limitations, Unable to visit store locations,

No physical record generated by the company,  Lack in production exposure.