1-intoduction 1-6.doc

8/15/2019 1-intoduction 1-6.doc

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CHAPTER-1

INTRODUCTION


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minorsu-head wise estimates along with actual of the past three years .where necessary,

item-wise rea! up should also e furnished so as to highlight individual item-wise rea!

up should also e furnished so as to highlight individual items of significance. Any maor

variation in estimates with references to past actual or and udget estimates will e

supported y cogent reasons.

RULE 4.(1) E!PENDITURE ESTIMATES- he e*penditure estimates shall show

separately the sums reuired to meet the e*penditure charged on the consolidated fund

under article 112(3) of the constitution and sums reuired to meet other e*penditure for

which a vote of the o! 4aha is reuired under article 113(2) of the constitution.

RULE 4".(1) DEMAND FOR GRANTS-he estimates for e*penditure for which vote of

o! 4aha is reuired shall e in form of demand for grants.

RULE 4#.(1) FORM OF ANNUAL FINANCIAL STATEMENT AND DEMANDS

GRANTS - he form of the annual financial statement and demands for grants shall e laid

down y the finance ministry and no alternation of arrangement or classification shall e

made without the approval of that ministry.

RULE 4$.(1) ACCEPTANCE AND INCLUSION OF ESTIMATES-he estimates of

receipts and e*penditure of each ministry department will e scrutini5ed in the udget

division of the ministry of finance. 0inance secretary or secretary may hold meeting with

secretaries or financial advisers administrative ministries or departments to discus th%

totality of the reuirements of funds for various programmers and schemes, along with

receipts of the ministries or departments.

RULE 51. COMMUNICATION AND DISTRIBUTION OF GRANTS AND

APPROPRIATIONS- after the appropriation ill relating to udget is passed the ministry

of finance shall comminicate udget provision to the ministries department which, in turn,

shall distriute the same to their suordinate formations. he distriution so made shall also

e communicated to the respective pay and accounts officers who shall e*ercise chec!

against the allocation to each suordinate authority.

CONTROL OF E!PENDITURE AGAINST BUDGET&

RULE 52.(1) RESPONSIBILITY FOR CONTROL OF E!PENDITURE- departments

of the central government shall e responsile for the control of e*penditure against the

sanctioned grants and appropriations placed at their disposal. he control shall e e*ercised


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through the heads of departments and other controlling officers, if any, and disursing

officers suordinate to them.

RULE 5.(1) SURRENDER OF SA'ING- department of the central government shall

surrender to the finance ministry, y the dates prescried y that ministry efore the close

of the financial year, all the anticipated saving noticed in the grants or appropriation

controlled y them. he finance ministry shall communicate the acceptance of such

surrenders as are accepted y them to the accounts officers, efore the close of the year. he

funds provided during the financial year and not utili5ed efore the close of the financial

year shall stand lapsed at the close of the financial year.

RULE 5#.(1) ADDITIONAL ALLOTMENT FOR E!CESS E!PENDITURE –

a suordinate authority incurring the e*penditure will e responsile for seeing that the

allotment placed at its disposal is not e*ceeded. 6here any e*cess over the allotment is

apprehended, the suordinate authority should otain additional allotment incurring the

e*cess e*penditure. 0or this purposes, the authorities incurring e*penditures should

maintain a "liaility register in form &07 +.

RULE 0 SUPPLEMENTARY GRANTS- if saving are not availale within the grant to

which the payment is reuired to e deited or if the e*penditures is on 8new service9 or

8new instrument of service9 not provided in the udget, necessary supplementary grant or

appropriation in accordance with article 11:(1) of the constitution should e otained

efore payment is authori5ed.

RULE 2. INE'ITABLE PAYMENTS

(i) 4uect to the provision of articles 11/(3) of the constitution, money indisputaly

payale y governmental shall not ordinarily e left unpaid.

(ii). 4uitale provision for anticipated liailities should invarialy e made in demands for

grants to e placed efore parliament.

1. INTRODUCTION

A udget is a very commonly used term. t is a widely practiced techniue and most

of them use udgets in some way or the other. #udget is one of the emphasi5ed terms in

efficient methods of planning and control. #udget in common parlance is understood as

planning for e*penditure.


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#udgetary control is the feedac! lin! that allows us to monitor what actually

happened during the udget period, alerts us as to what happened that was not in

accordance with our plan, and then gives us indications as to what we should then do to

correct for what went wrong.

he estalishment of udget relating the responsiilities of e*ecutives to the

reuirements of a policy, and the continuous comparison of actual with udgeted results,

either to secure y individual action the oectives of the policy or to provide a asis for its

revision(;MA 1


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SCOPE OF THE STUDY

?;0 o study udget in government companies li!e ?0;(?uclear 0uel ;omple*)

4alaries

Materials @ 4uppliers

Machinery @ 'uipments

ffice e*penses

$nder allocation of funds in ?0; to study the revenue udget in central government

with reference to

NEED OF THE STUDY

o study the e*istence system of revenue udget in ?0; (nuclear fuel comple*) and

to suggest further improvements.

o !now the present system of revenue udget in government organi5ation

o analy5e the proposal for e*pansion or creating additional capacities

METHODOLOGY OF THE STUDY

0irst of all, the profit of the company is understood y acuiring with the asic

activities of the organi5ation using past and present records. 4econdly the internal analysis

is done to !now the procedure for preparation of udget estimates. #udget estimates are

compared with the actual to compute the variance and perform udget.

4tudied the usage of information technology in the process of udget and udgetary

control, analy5ed how it can e modify for etter performance.

SOURCES OF COLLECTION OF DATA

PRIMARY DATA

he data is collected through interaction with personnel who are wor!ing in finance and

accounts departments of the organi5ation.


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SECONDARY DATA

he data is collected from the company annual and other relevant records. Afterwards,

data is processed and analy5ed y using appropriate analytical tools and techniue so as to

e*amine efficiently.


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CHAPTER-2

RE'IE OF LITERATURE


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2. RE'IE OF LITERATURE

DEFINITION OF BUDGET

According to the institute of cost and management accountants (;MA), 'ngland, a udgetis a 8a financial and or uantitative statement, prepared and approved prior to a definite

period of time, of the policy to e pursued during that period for the purpose of attending a

given oective. t may include income, e*penditure and the employment of capital9

8A udget a written plan covering proected activities of affirm for a defined period9-

%ic!ey

8A udget is a plan of action to achieve stated oectives ased on pre-determined series of related assumptions-Beller and 0errari

According to &ordon and shilling law, a udget is 8a pre-determined detailed plan of

action developed and distriuted as a guide to current operations and as a partial asic for

the suseuent evaluation of performances9.

MEANING OF BUDGET

he chartered institute of management accountants of 'ngland and 6ales has defined the

terms "udget as 8 A financial and or uantitative statement, prepared and approved prior

to a defined period of time of the policy to e pursed during that period for the purpose of

attaining a given oective. t may include income, e*penditure and employment of

capital9.

A udget is a detailed plan of operations for same specific future period. t is an estimate

prepared in advance of the period to which it applies.

t acts as a usiness arometer as it is a complete programme of activities of the usiness

for the period covered.

#udgets are usually, set up in the light of past e*perience after ta!ing into account the

changes that are e*pected to occur in the future. t is, therefore, to e e*pected that actual

figures will correspond to the udget unless there is some important change in the

conditions. t must e the constant endeavor of the management to see that actual

performances do correspond with the udget concerned. 4ince udget assume the optimum


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efficiency attainale, the system of udgetary control helps to increase efficiency and

enales the concern to achieve the targets which are considered attainale.

ESSENTIALS OF BUDGET

t is a statement.

t pertains to a future period.

t states action points that need to e followed to attain the oectives of the

organi5ation.

t may e e*pressed in monetary units or in physical units or oth.

t forms the asis for monitoring and control.

t is prepared in advances and is ased on a future plan of actions.

t relates to a future period and is ased on oectives to e otained.

t is a statement e*pressed in monetary and or physical units prepared for the

implementation of policy formulated y the management.

CHARACTERISTICS OF BUDGET

A udget is concerned for a definite future period.

A udget is a written document.

A udget is a detailed plan of all the economic activities of a usiness.

All the departments of a usiness unit co-operate for the preparation of a usiness

udget.

#udget is a mean to achieve usiness and it is not an end in itself.

#udget needs to e updated, corrected and controlled every time when

circumstances changes. herefore it is a continuous process.

#udget helps in planning, coordination and control.


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%ifferent types of udgets are prepared y industries according to usiness

reuirements.

OBECTI'ES OF BUDGETING

he process of udgeting is initiated with the estalishment of specific targets of

performance and is followed y e*ecuting plans to achieve such desired goals and form

time to time comparing actual results with the targets of performancesgoals.

hese target include oth the overall usiness target as well as the specific targets for the

individual units within the usiness. 'stalishing specific target for future operations is a

part of the planning function of management, while e*ecuting actions to meet the goals is

the directing function of management.

A set of targetsgoals is often necessary to guide and focus individual and group

actions.

0or e*amples, students set academic goals, atmens runs, employee set career

goals, and usiness set financial goals. n the same way, udgeting supports the

planning process y reuiring all organi5ational units to estalish their targets for

the upcoming period. he targets, in turn, motivate individuals and groups to

perform at high levels.

$sing the udget to communicate these e*pectations throughout the organi5ation

has helped many a companies to reduce e*penses during a severe usiness

recession.

=lanning not only motivates employees to attain goals ut also improves over all

decision ma!ing. %uring the planning phase of the udget process,

DIRECTING

nce the udget plans are in place, they can e used to direct and coordinate

operations in order to achieve the stated targets.


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0or e*ample, committees in professional institutes have udget to support faculty

travel to conferences and meeting. he travel udget communicates to the officers

the upper limit in travel. ften, desired travel e*ceeds the udget. hus the udget

reuires the officers to priorities travel- related opportunities.

DEFINITION OF BUDGETARY CONTROL

According to ;MA 'ngland, udgetary control is 8the estalishment of udget relating to

the responsiilities of e*ecutive to the reuirements of a policy, and the continuous

comparison of actual with udgeted results, either to secure y individual action, the

oective of the policy or to provide asis for its revision9.

n the words of F.#atty 8udgetary control is a system which uses udgets as means of

planning and controlling all aspects of producing and or selling commodities and services9.

o uote F.A. 4colt 8udgetary control is the system of management control and accounting

in which all operations are forecast and so far as possile planned ahead and the actual

results compared with the forecasted and the planed ones+.

MEANING OF BUDGETARY CONTROL

he chartered institute of management accountants of 'ngland and 6ales has defined the

terms "udgetary control as 8udgetary control is the estalishment of udgets relating to

the responsiliilities of e*ecutives of a policy and the continuous comparison of the actual

with the udgeted results, either to secure y individual action the oective of the policy or

to provide a asis for its revision9.

t is the system of management control and accounting in which all the operations are

forecasted and planned in advance to the e*tent possile and the actual results compared

with the forecasted and planned ones.

BUDGETARY CONTROL IN'OL'ES

'stalishment of udgets

;ontinuous comparison of actual with udgets for achievement of targets

7evisions of udgets after considering changed circumstances


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=lacing the responsiility for failure to achieve the udget targets.

THE SALIENT FEATURES

%etermining the oectives to e achieved, over the udget period, and the policy or

policies that might e adopted for the achievement of these ends.

%etermining the variety of activities that should e understood for the achievement

of the oectives.

%rawing up a plan or a scheme of operation in respect of each class of activity, in

physical as well as monetary terms for the full udget period and its parts.

aying out a system of comparison of actual performances y each person, section

or department with the relevant udget and determination of causes for the

discrepancies, if any.

'nsuring that corrective action will e ta!en where the plan is not eing achieved

and, if that not is possile, for the revision of the plan .

n rief it is a system to assist management in the allocation of responsiility and authority,to provide it with aid for ma!ing, estimates and planning for the future and to facilitate the

analysis of the variation etween estimates and actual performance.

n order that udgetary control may function may function effectively, it is necessary that

the concern should develop proper asis of measurement or standards with which to

evaluate the efficiency of operations it should have in operation a system of standards

costing.

#esides this, the organi5ation of the concern should e so integrated that all lines of

authority and responsiility are laid, allocated and defined. his is essential since the

system of udgetary control postulates separation of functions and division of

responsiilities and thus reuires that the organi5ation shall e planned in such a manner

that everyone, from the managing director down to the shop foreman, will have his duties

properly defined.

AD'ANTAGES OF BUDGETARY CONTROL


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t defines the oectives and policies of the underta!ing as a whole.

t helps in estimating the final needs of the concern and there y reduces the

possiility of over or under capitali5ation.

t secures planned allocation of productive facilities and resources for their est

utili5ation.

t facilitates "management y e*ception, attention of management is attracted only

to areas reuiring remedial action.

t facilities decentrali5ation of authority and responsiilities in definite departmental

as well as individual authority and responsiilities in define terms. his prevents

tendencies of passing the lame or responsiility on someone else, when the

udgeted results are not achieved.

t results in effective coordinates of activities of different departments and develops

sound communication system through meeting and discussions. t promotes etter

understanding of each others prolems and develops team spirit within the

underta!ing.

t helps in measuring the efficiency of departments and individuals udget provides

the yardstic!s against which actual results can e compared.

t instills into the managers the hait of carefully evaluating their prolems efore

ma!ing any decision.

t helps in promoting a feeling of cost- continuous. 6asteful e*penditure is avoided

and e*penditure is avoided and e*penditure eyond the udgeted figure is not

incurred without the prior approval of higher authority.

t increases the morale and the productivity of employees y see!ing their effective

participation in the formulation of plants and policies. t rings aout a harmony

etween individual goals and goals of the enterprise.

#udgets create the necessary condition for the setting up one of standards costing.


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#udgetary control reduces delays as udgets, once adoptedG operate as a sanction to

proceed. here is no need to wait for further clearances.

#udgetary control provides the asis for the introduction of incentive remuneration

plans ased on performances.

t serves as a asis for future policy and also for reviewing current policy in the

e*periences. t helpful in reviewing current trends in the usiness and in

determining future policy of the usiness.

t serves as internal audit y continuous scrutiny of departmental results and costs.

6hen there is udgetary control, seasonal and cyclical fluctuations in the usiness

can e anticipated n advances and news product lines may e ta!en to maintain the

level of production. hus, udgeting assists in the staili5ation of industry.

LIMITATIONS OF BUDGETARY CONTROL

#udgets are essentially ased on forecasted and estimates whose accuracy depends

upon the correctness of facts and good udgment. hus udgets are a matter of

opinion rather than a scientific tool. his reduces the reliaility of udgets.

here is danger of over udgeting, spelling out maor e*penses in detail. his

deprives the managers of freedom of action in managing their departments.

$nder the fast changing usiness condition and government policies, udgeting

ecomes a difficult tas!. #udgets may ecome outdated even efore they are

approved.

0or the success of udgetary program, all levels of management should ta!e active

interest in its e*ecution. his is usually not the case.

#udgeting may result in every e*ecutive ust trying to achieve the udgeted targets.

hus, udgets serve as constraints on managerial initiative.

=reparation and operational of udgetary program is e*pensive. Hence, small

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#udgetary control may lead to conflicts among functional e*ecutives, ecause every

e*ecutive may try to get a larger share of udgetary allocation, shir! responsiility

and lame other for pit-falls.

#udgetary tends to ring rigidity in control. #udgets, once made, ecome

irrevocale.

#udgeting may lower the morale and productivity of personnel, if unrealistic targets

are set and if udget is used as a pressure tool.

#udgeting may hide inefficiencies instead of e*posing them, if there is no

evaluation system. $nless there is continuous evaluation of the actual performances,

udgeting cannot e a success.

#udgets will ecome a mere routine and lose their dynamic unless the udget

program is revised from time to time, in tune with the changes in usiness condition

and management policies. However, freuent revisions may e a costly affair.

OBECTI'ES OF BUDGETARY CONTROL SYSTEM

=ortraying with precision the overall aims of the usiness and determining

targets of performances for each section or department of the usiness.

aying down the responsiilities of each of the e*ecutives and other personnel

so that everyone !nows what is e*pected of him and how he will e udged.

#udgetary control is one of the few ways in which an oective assessment of

e*ecutives or department is possile.

=roviding a asis for the comparison of actual performances with the

predetermined targets and investigation of deviation, if any, of actual

performances and e*penses from the udgeted figures. his naturally helps in

adopting correctives measures.

'nsuring the est use of all availale resources to ma*imum profit or

production. 4uect to the limiting factors. 4ince udgets cannot e properly

drawn up without considering all aspects usually there is good coordination

when a system of udgetary control operates.


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;oordinating the various activities of the usiness and centrali5ing control and

yet enaling management to decentrali5e responsiility and delegate authority in

the overall interest of the usiness.

'ngendering a spirit of careful forethought, assessment of what is possile and

an attempt at it. t leads to dynamism without rec!lessness. f course, much

depends on the oectives of the firms and the vigor of its management.

=roviding a asis for revision of current and future policies.

%rawing up long range plans with a fair measures of accuracy

=roviding a yardstic! against which actual results can e compared.

OR,ING OF A BUDGETARY CONTROL SYSTEM

he responsiility for successfully introducing and implementing a udgetary control

system rests with the udget committee acting through the udget officer. he udget

committee would e compared of all functional heads and memers from the oards to

preside over and guide the delierations.

THE MAIN RESPONSIBILITIES OF THE BUDGET OFFICERS

o assist in the preparation of the various udgets y coordinating the wor! of the

accounts departments which is normally responsile to compile the udgets- with

the relevant functional departments li!e sales, production, plant maintenance etc.

o forward the udget to the individual who are responsile to adhere to them and

to guide them in overcoming any practical difficulties in its wor!ing

o prepare the periodical udget reports for circulation to the individuals concerned.

o follow up action to e ta!en on the udget reports.

o prepare an overall udget wor!ing report for discussion at the udget committee

meeting and to ensure follow-up on the lines of action suggested y the committee.


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o prepare periodical reports for the oard meeting comparing the udgeted profit

and loss account and the alance sheet with the actual.

7esults attained.

t is necessary that every udget should e thoroughly discussed with the functional head

efore it is finali5ed.

t is the duty of the udget officer to see that the periodical udget reports are supplied to

the recipients at freuent intervals as far as possile.

he efficiency of the udget officer, and through him of the udget committee, will e

udged more y the smooth wor!ing of the system and the agreement etween the actual

figures and the udgeted figures.

#udgets are primarily an incentive and challenges for a etter performances, it is up to the

udget officers to see that attention of the different functional heads is drawn to it face the

challenge in a successful manner.

COMPONENTS OF BUDGETARY CONTROL SYSTEM

he policy of a usiness for a defined period is represented y the master udget the details

of which are given in a numer of individual udgets called functional udgets. hese

functional udgets are roadly grouped under the following heads.

=hysical udgets those udgets which contains information in terms of physical units

aout sales, production etc. for e*ample uantity of sales, uantity of production,

inventories and manpower udgets and physical udgets.

;ost udgets #udgets which provides cost information in respect of the manufacturing,

selling, administration etc. for e*ample, manufacturing costs, selling costs,

administration cost, and research and development cost udgets

=rofit udget a udget which enales in the ascertainment of profit, for e*ample, sales

udget, profit and loss udget, etc.

.FUNCTION OF BUDGET SECTION


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ssue of udget circular.

;ontroller of data relating to actual receipts and e*penditure of previous years.

=reparation of various supporting rea!up statements of receipts and e*penditure.

;ompilation of estimates of receipts and e*penditure received from various

authorities.

;ompilation of udget estimates in respect of receipts, revenue e*penditure, capital

e*penditure, loans and advances, provident fund etc.

Monthly uarterly phasing of receipts and e*penditure for periodical review andfinancial control.

=reparation of monthly reports of receipts and e*penditure with supportive rea!up

statements.

7eview of receipts and e*penditure for final grand of e*penditure and surrender of

funds, if any.

ntimation of progress of e*penditure in respect of capital proect to the concerned

proect coordinators.

;orrespondence with concerned authorities in respect of all of the aove.

PREPARATION OF BUDGET

n ?0;, the udget of the organi5ation is to e prepared for the following a details

estimate of-

7eceipts

'*penditure on revenue account.

he e*penditure on capital account.

he udget estimates shall give the anticipated receipts and e*penditure for the

ensuring financial year, under each maor, su and detailed heads of accounts.


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nterest

CHAPTER-3

INDUSTRY PROFILE

COMPANY PROFILE


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INDUSTRY PROFILE

n the most general sense of the word, a %%/ is a inder, a sustance which sets and hardens

independently, and can ind other materials together. he word IcementI traces to the 7omans, who

used the term Iopus caementiciumI to descrie masonry which resemled concrete and was made

from crushed roc! with urnt lime as inder. he volcanic ash and pulveri5ed ric! additives which

were added to the urnt lime to otain a hydraulic inder were later referred to as cementum,

cimentum, cJment and cement. ;ements used in construction are characteri5ed as 678 or

/9/-678.

he most important use of cement is the production of mortar and concrete Kthe onding of natural

or artificial aggregates to form a strong uilding material which is durale in the face of normal

environmental effects.

;oncrete should not e confused with cement ecause the term cement refers only to the dry

powder sustance used to ind the aggregate materials of concrete. $pon the addition of water

andor additives the cement mi*ture is referred to as concrete, especially if aggregates have eenadded.

t is uncertain where it was first discovered that a comination of hydrated non-hydraulic lime and a

po55olan produces a hydraulic mi*ture (see also =o55olanic reaction), ut concrete made from such

mi*tures was first used on a large scale y 7oman engineers.hey used oth natural po55olans

(trass or pumice) and artificial po55olans (ground ric! or pottery) in these concretes. Many

e*cellent e*amples of structures made from these concretes are still standing, notaly the huge

monolithic dome of the =antheon in 7ome and the massive #aths of ;aracalla. he vast system of

7oman aueducts also made e*tensive use of hydraulic cement. he use of structural concrete

disappeared in medieval 'urope, although wea! po55olanic concretes continued to e used as a core

fill in stone walls and columns.

http://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/Calcium_oxidehttp://en.wikipedia.org/wiki/Calcium_oxidehttp://en.wikipedia.org/wiki/Mortar_(masonry)http://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Slaked_limehttp://en.wikipedia.org/wiki/Pozzolanhttp://en.wikipedia.org/wiki/Pozzolanic_reactionhttp://en.wikipedia.org/wiki/Roman_engineeringhttp://en.wikipedia.org/wiki/Roman_engineeringhttp://en.wikipedia.org/wiki/Trasshttp://en.wikipedia.org/wiki/Pumicehttp://en.wikipedia.org/wiki/Pumicehttp://en.wikipedia.org/wiki/Pantheon,_Romehttp://en.wikipedia.org/wiki/Pantheon,_Romehttp://en.wikipedia.org/wiki/Romehttp://en.wikipedia.org/wiki/Romehttp://en.wikipedia.org/wiki/Baths_of_Caracallahttp://en.wikipedia.org/wiki/Roman_aqueducthttp://en.wikipedia.org/wiki/Calcium_oxidehttp://en.wikipedia.org/wiki/Mortar_(masonry)http://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Slaked_limehttp://en.wikipedia.org/wiki/Pozzolanhttp://en.wikipedia.org/wiki/Pozzolanic_reactionhttp://en.wikipedia.org/wiki/Roman_engineeringhttp://en.wikipedia.org/wiki/Trasshttp://en.wikipedia.org/wiki/Pumicehttp://en.wikipedia.org/wiki/Pantheon,_Romehttp://en.wikipedia.org/wiki/Romehttp://en.wikipedia.org/wiki/Baths_of_Caracallahttp://en.wikipedia.org/wiki/Roman_aqueducthttp://en.wikipedia.org/wiki/Ancient_Rome


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Modern cement

Modern hydraulic cements egan to e developed from the start of the ndustrial 7evolution

(around 1DCC), driven y three main needs

Hydraulic renders for finishing ric! uildings in wet climates

Hydraulic mortars for masonry construction of haror wor!s etc, in contact with sea water.

%evelopment of strong concretes.

n #ritain particularly, good uality uilding stone ecame ever more e*pensive during a period of

rapid growth, and it ecame a common practice to construct prestige uildings from the new

industrial ric!s, and to finish them with a stucco to imitate stone. Hydraulic limes were favored for

this, ut the need for a fast set time encouraged the development of new cements. Most famous was

=ar!erLs I7oman cement.I his was developed y Fames =ar!er in the 1EDCs, and finally patented in

1E


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All the aove products could not compete with limepo55olan concretes ecause of fast-setting

(giving insufficient time for placement) and low early strengths (reuiring a delay of many wee!s

efore formwor! could e removed). Hydraulic limes, InaturalI cements and IartificialI cements all

rely upon their elite content for strength development. #elite develops strength slowly. #ecause

they were urned at temperatures elow 12:C O;, they contained no alite, which is responsile for

early strength in modern cements. he first cement to consistently contain alite was made y Foseph

AspdinLs son 6illiam in the early 1D/Cs. his was what we call today ImodernI =ortland cement.

#ecause of the air of mystery with which 6illiam Aspdin surrounded his product, others (e.g. Nicat

and ; Fohnson) have claimed precedence in this invention, ut recent analysis of oth his concrete

and raw cement have shown that 6illiam AspdinLs product made at ?orthfleet, Bent was a true

alite-ased cement. However, AspdinLs methods were Irule-of-thumI Nicat is responsile for

estalishing the chemical asis of these cements, and Fohnson estalished the importance of

sintering the mi* in the !iln.

6illiam AspdinLs innovation was counter-intuitive for manufacturers of Iartificial cementsI,

ecause they reuired more lime in the mi* (a prolem for his father), ecause they reuired a much

higher !iln temperature (and therefore more fuel) and ecause the resulting clin!er was very hard

and rapidly wore down the millstones which were the only availale grinding technology of the

time. Manufacturing costs were therefore consideraly higher, ut the product set reasonaly slowly

and developed strength uic!ly, thus opening up a mar!et for use in concrete. he use of concrete in

construction grew rapidly from 1D:C onwards, and was soon the dominant use for cements. hus

=ortland cement egan its predominant role. it is made from water and sand

T:%; 9< 9%/ %%/

=ortland cement

;ement is made y heating limestone (calcium caronate), with small uantities of other materials

(such as clay) to 1/:CO; in a !iln, in a process !nown as calcination, wherey a molecule of caron

dio*ide is lierated from the calcium caronate to form calcium o*ide, or lime, which is then

lended with the other materials that have een included in the mi* . he resulting hard sustance,

called Lclin!erL, is then ground with a small amount of gypsum into a powder to ma!e Lrdinary

=ortland ;ementL, the most commonly used type of cement (often referred to as =;).

=ortland cement is a asic ingredient of concrete, mortar and most non-specialitygrout. he most

common use for =ortland cement is in the production of concrete. ;oncrete is a composite material

consisting of aggregate (gravel and sand), cement, and water. As a construction material, concrete

can e cast in almost any shape desired, and once hardened, can ecome a structural (load earing)

element. =ortland cement may e gray or white.

http://en.wikipedia.org/wiki/Belitehttp://en.wikipedia.org/wiki/Alitehttp://en.wikipedia.org/wiki/William_Aspdinhttp://en.wikipedia.org/wiki/William_Aspdinhttp://en.wikipedia.org/wiki/Isaac_Charles_Johnsonhttp://en.wikipedia.org/wiki/Northfleethttp://en.wikipedia.org/wiki/Kenthttp://en.wikipedia.org/wiki/Clinker_(cement)http://en.wikipedia.org/wiki/Limestonehttp://en.wikipedia.org/wiki/Clayhttp://en.wikipedia.org/wiki/Kilnhttp://en.wikipedia.org/wiki/Kilnhttp://en.wikipedia.org/wiki/Calcinationhttp://en.wikipedia.org/wiki/Carbon_dioxidehttp://en.wikipedia.org/wiki/Carbon_dioxidehttp://en.wikipedia.org/wiki/Calcium_oxidehttp://en.wikipedia.org/wiki/Gypsumhttp://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Mortar_(masonry)http://en.wikipedia.org/wiki/Grouthttp://en.wikipedia.org/wiki/Grouthttp://en.wikipedia.org/wiki/Construction_aggregatehttp://en.wikipedia.org/wiki/Belitehttp://en.wikipedia.org/wiki/Alitehttp://en.wikipedia.org/wiki/William_Aspdinhttp://en.wikipedia.org/wiki/Isaac_Charles_Johnsonhttp://en.wikipedia.org/wiki/Northfleethttp://en.wikipedia.org/wiki/Kenthttp://en.wikipedia.org/wiki/Clinker_(cement)http://en.wikipedia.org/wiki/Limestonehttp://en.wikipedia.org/wiki/Clayhttp://en.wikipedia.org/wiki/Kilnhttp://en.wikipedia.org/wiki/Calcinationhttp://en.wikipedia.org/wiki/Carbon_dioxidehttp://en.wikipedia.org/wiki/Carbon_dioxidehttp://en.wikipedia.org/wiki/Calcium_oxidehttp://en.wikipedia.org/wiki/Gypsumhttp://en.wikipedia.org/wiki/Concretehttp://en.wikipedia.org/wiki/Mortar_(masonry)http://en.wikipedia.org/wiki/Grouthttp://en.wikipedia.org/wiki/Construction_aggregate


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=ortland cement lends

hese are often availale as inter-ground mi*tures from cement manufacturers, ut similar

formulations are often also mi*ed from the ground components at the concrete mi*ing plant.

P97/ =7;97/ %%/ includes fly ash cement, since fly ash is a po55olan, ut also includes

cements made from other natural or artificial po55olans. n countries where volcanic ashes are

availale (e.g. taly, ;hile, Me*ico, the =hilippines) these cements are often the most common form

in use.

P97/ ;878


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C979% %%/; are used for decorative purposes. n some standards, the addition of pigments to

produce Icolored =ortland cementI is allowed. n other standards (e.g. A4M), pigments are not

allowed constituents of =ortland cement, and colored cements are sold as Ilended hydraulic

cementsI.

'%


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reuirements are lower ecause of the lower !iln temperatures reuired for reaction, and the lower

amount of limestone (which must e endothermicallydecaronated) in the mi*. n addition, the

lower limestone content and lower fuel consumption leads to a ; 2 emission around half that

associated with =ortland clin!er. However, 42 emissions are usually significantly higher.

N67 C%%/; correspond to certain cements of the pre-=ortland era, produced y urning

argillaceous limestones at moderate temperatures. he level of clay components in the limestone

(around 3C-3:P) is such that large amounts of elite (the low-early strength, high-late strength

mineral in =ortland cement) are formed without the formation of e*cessive amounts of free lime. As

with any natural material, such cements have highly variale properties.

COMPANY PROFILE

Besoram ;ement ndustry is one of the leading manufacturer of cement in ndia. t is a day process

cement =lant. he plant capacity is D.2+ la!h tones per annum t is located at #asanthnagar in

Barimnagar district of Andhra =radesh. #asanthnagar is D !m away from the 7amagundram

7ailway station, lin!ing Madras to ?ew %elhi. he ;hairman of the ;ompany is syt. #.B.#irla,

H47R

T%


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he 0irst =lant for manufacturing of rayon yarn was estalished at rieni, %istrict Hooghly, 6est

#engal and the same was commissioned in %ecemer, 1


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iuid ;hlorine, +,2C: mtpa of 4odium Hypochlorite, D,2CC mtpa of Hydrochloric Acid, 3,2CC mtpa

of 0erric Alum, 1D,ECC mtpa of 4ulphuric Acid and 1,+2C,CCC m3pa of purified Hydrogen &as.

he ;ompany is a well-diversified entity in the fields of ;ement, yre, 7ayon Rarn, ransparent

=aper, 4pun =ipes and Heavy ;hemicals with two core usiness segments i.e. ;ement and yres.

n 4pun =ipes @ 0oundries, a unit of the ;ompany, wor! suspended from 2nd May, 2CCD still

commences till further notice.

he ;ompany as of now is listed on three maor 4toc! '*changes in ndia i.e. #omay 4toc!

'*change td., Mumai, ;alcutta 4toc! '*change Association td., Bol!ata and ?ational 4toc!

'*change of ndia td., Mumai and at the 4ociete de la #ourse de u*emourg, u*emourg.

A further e*pansion upto 1.+: million tons of cement per annum in Nasavadatta ;ement at 4edam in

Barnata!a as unit N at the same site is in progress, with a 1E.: M6 ;aptive =ower =lant, involving

a capital e*penditure of aout 7s. ED3.:C crores (including the cost of ;aptive =ower =lant).

he commercial production of cement in the aforesaid unit N has commenced in Fune 2CC


31/56

he company has vigorously underta!ing different promotional measures for promoting

their product through different media, which includes the use of news papers maga5ine, hoarding

etc.

Besoram cement industry distinguished itself among all the cement factories in ndian y aggingthe ?ational =roductivity Award consecutively for two years i.e. for the year 1


32/56

t has een the endeavor of Besoram to incorporate the 6orlds latest technology in the

plant and today the plant has the most sophisticated.

T-ray analysis

0ully computeri5ed T70 and T7% T-7AR Analy5ers !eep a constant round the cloc! vigil

on uality.

4upreme performance

ne of the largest ;ement =lants in Andhra =radesh, the plant in corporate the latest

technology in ;ement - ma!ing.

t is professionally managed and well estalished ;ement Manufacturing ;ompany

enoying the confidence of the consumers. Besoram has outstanding trac! record in performance

and productivity with uite a few national and state awards to its credit.

#7A 4$=7'M', the /3 &rade ;ement, is a widely accepted and popular rand in the

mar!et, commanding a premium.

However to meet the specific demands of the consumer, Besoram ought out the :3 grade

#7A 4$=7'M' &%, which has special ualities li!e higher fineness, uic!-setting, highcompressive strength and duraility.

4upreme 4trength

Besoram ;ement has huge captive imestone %eposits, which ma!e it possile to feed

high- grade limestone consistently, ts natural &rey colour is anion- orn ingredient and gives good

shade.

#oth the products offered y Besoram, i.e. #7A 4$=7'M'-/3 &rade and #7A

4$=7'M'-&%-:3 &rade cement are outstanding with much higher compressive strength and

duraility.


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he following characteristics show their distinctive ualities.

;omprehensive

4trength

pc /3

grls D112

1


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he #est echnical eam, e*clusive to Besoram, mans the =lant and monitors the process, to

lend the cement in ust the reuired proportions, to ma!e #7A 4$=7'M'&% 0 7oc!

4trength.

1D M? ?'4 0 4% 0$?%A?

4taying at the top for over a Suarter ;entury, Suarter ;entury is no less an achievement.

nfact.Besoram is synonymous with for over 2D years.

ver the years, Besoram has dispatched 1D million tones of cement to the noo! and corners of the

country and oined hands in strengthening the ?ation. ?o one else in Andhra =radesh has this

distinction. he prestigious 6orld #an! aided 7amagundam 4uper hermal =ower =roect of ?=;

and Mannair %am of =ochampad proect in A= arc a couple of proects for which Besoram ;ement

was e*clusively uses to cite an e*ample.

;H'M;A ;HA7A;'74;4

pc /3 gr

s D1 132-


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Besoram has outstanding trac! record, achieving over 1CCP capacity utili5ation productivity

and energy conservation. t has proved its distinction y agging several national and state

awards, noteworthy eing.

?A?A

1. ?ational productivity award for 1


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=ower

4ingarein collieries ma!e the supply of coal for this industry and the power was otained

from A= 7A?4;. he power demand for the factory is aout 21M6. Besoram has got 2-diesel

generator seats of / M6 each installed in the year 1


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camps, animal health camps lood donation camps, children immuni5ation camps, seeds, training

for farmers etc were arranged.

6elfare and 7ecreation 0acilities

0or the purpose of recreation facilities 2 auditoriums were provided for playing

indoor games, cultural function and activities li!e drama, music and dance

he industry has provided liraries and reading rooms. Aout 1CCC oo!s are availale in the

lirary. All !inds of newspaper, maga5ines are made availale.

;anteen is provided to cater to the needs of the employees for supply of snac!s, tea, coffee and

meals etc.ne 'nglish medium and one elugu medium school are provided to meet the educational

reuirements.he company has provided a dispensar with a ualified medical office and

paramedical staff for the enefit of the employees. he employees covered under '4 scheme have

to avail the medical facilities from the '4 hospital.

;ompetitions in sports and games are conducted ever year for august 1: th ndependence %ay and

Fanuary 2+th, repulic day among the employees.

'lectricity

he power consumption per ton of cement has come down to 1CD units against 113 units

last year, due to implementation of various energy saving measures. he performance of captive

power plant of this section continues to e satisfactory. otal power generation during the year was

D/ million units last year. his captive power plant is a maor role in !eeping power costs with in

economic levels.

he management has introduced various H7% programs for training and development and has ta!en

various other measures for the etterment of employees efficiency.

he section has installed adeuate air pollution control system and euipment and is 41/CC1 such

as 'nvironment management system is under implementation.

Awards

Besoram cement agged many prestigious awards including national awards for

productivity, technology, conservation and several state awards since 1


38/56

A6A7%4 0 B'47AM ;'M'?

?o Rear Awards

?ational

state

1 1


39/56

=roducts of the organi5ation


40/56

CHAPTER-4

DATA ANALYSIS AND INTERPRETION

ANALYSIS OF SALARIES & (RS IN LA,HS)

Rear #udget 'stimation Actual Nariation Nariation (P)

2C1C-11


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REASONS FOR POSTI'E 'ARIATION& (#udget 'stimated W Actual '*penditure)

7etirement of the employees.

he organi5ation must have stopped the contract asis employees.

REASONS FOR NEGATI'E 'ARIATION& (#udget 'stimated V Actual '*penditure)

ncrease in the salaries of the employees y the &overnment.

7ecruitment of new employees y the organi5ation.

More numer of contract employees. =romotion of the employees.

ANALYSIS OF O'ERTIME ALLOANCE& (RS IN LA,HS)

Rear

#udget

'stimation Actual Nariation

Nariation

(P)

2C1C-11


42/56

GRAPHICAL REPRESENTATION&

REASONS FOR POSITI'E 'ARIATION& (#udget 'stimated W Actual '*penditure)

;ompletion of the proect on time.


he organi5ation is giving more incentives on the productivity level. 4udden rise in the production of the product. Hence the organi5ation has spent

more on the overtime allowance for the completion of the production in the

prescried time.

4ome of the employees are doing other employees wor! in their asence.

ANALYSIS OF DOMESTIC TRA'EL E!PENSES & (RS IN LA,HS)


2C1C-11 1CC


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2C1/-1: 1/3 1:


44/56

2C13-1/ /C 2D.E+ 11.2/ 2D.1

2C1/-1: :C 3D.


45/56

LA,HS)&


2C1C-11 +CC +CC.+3 -C.+3 -C.1C:

2C11-12 +CC :E3.:2 2+./D /./133333332C12-13 :3: /D3.C: :1.


46/56

LA,HS)


2C1C-11 /: /C.+3 /.3E


47/56


2C1C-11 +++33 :2:1D./D 1/11/.:2 21.1D

2C11-12 /D13: EC11/.C+ -21


48/56

2C12-13 :C 1


49/56

2C13-1/ /CCC /CCC C C

2C1/-1: /CCC 3CCC 1CCC 2:

GRAPHICAL REPRESENTATION&

REASONS FOR POSTI'E 'ARIATION& (#udget 'stimated W Actual '*penditure)

he interest rates are not fluctuating. he organi5ation is following the

predetermined rate of interest or organi5ation has completed paying some of the

loan amount with interest and principal amount.


he organi5ation has ta!en few more loans.

7ate of interest has increased from the past value

ANALYSIS OF MACHINERY EUIPMENT& ( RS IN LA,HS)

Rear

#udget

'stimation Actual Nariation

Nariation

(P)

2C1C-11 2CC 21D./: -1D./: -


50/56

2C13-1/ 31/D +CC.DDD 2:/E.112 DC.


51/56


52/56

CHAPTER-5

FINDING SUGGESTION

CONCLUSION

BIBLIOGRAPHY


53/56

FINDINGS

After carrying a detailed study on the udgetary process and udgetary control at ?uclear

0uel ;omple*, the following

servations were made

?uclear 0uel ;omple* prepares udget every year.

A study on udget of year shows high inconsistency. ;ertain e*penditures and incomes

show maor variation

n case of revenue e*penses, the organi5ation tries to stic! to its udgetary figureshis matches with the actual figures for the year.

'*penditure relating to the raw materials is showing faster growth rate of ?0;.

Administrative e*penses in the year 2CCD-2CC< decreased when compared to other years

data.

%omestic travel e*penses and overtime allowances in the year 2CC


54/56

SUGGESTIONS

A udget is treated as an important tool y an organi5ation in the management of its

financial resources .with the help of proper maintenance of udget and udgetary control,

can allocate funds for appropriate purposeG !eep spending within ounds and etter use of

its funds.

he following are the things which help in increased effectiveness of udgetary control. As

the result of the study #udget and #udgetary control at ?0;, the following suggestions are

given

?0; needs to divide the organi5ation into su units. 4uch as decision and profit

centers.

his will also e used as investment, profit and cost centers which improve the

responsiility and accountaility of employees towards their wor!.

?0; should prepare the financial udget considering all items of proale e*penses.

he udget should e prepared in such a way that the deviations in the e*penses are

reduced to minimal. he higher the consistency in the udget, the higher is the

fluctuation in the financial position of ?0;.

?0; should involve all the departments in the preparation of udgets. t would ridge the

&ap etween the udgeted figures and actual figures of the year.


55/56

CONCLUSION

#udgetary control is an important tool for the management to have an effective chec! on its

wor!ing as well as the staff. However, it is seen as time consuming techniue y various

organi5ations and thus do not pay much attention to it.

hrough this study it was found that the udget shows high inconsistency and the

actual performance varies consideraly from the udgeted figures.

#udgetary control department acts as a ac! of top management.

#udgetary control department collects information from each departments and

converts the data into information.

6ith the support of the udgetary control the management and converts the data

into information.

6ith the help of proper udgetary planning and control system ?0; has een ale

to improve operating performances and profitaility of the organi5ation.

he financial system in ?0; has een very uic!ly and well planned one which

could e implanted in other such government organi5ation.

BIBLIOGRAPHY


56/56

BOO,S&

M.R BHA? @ =.B FA?, (2CC3), 80?A?;A MA?A&'M'?9, 3 rd '%?,

AA M; &7A6 H =$#4H?& ;.%, ?'6 %'H.

7.=. 7$4A&, (2CC:), 80?A?;A MA?A&'M'?9, 2 nd '%?, &A&A

=$#4H?&, ?'6 %'H.

4.? MAH'4H6A7, (2CC/), 8;4 @ MA?A&'M'? A;;$??&9, /th

'%?, 4$A? ;HA?% @ 4?4, ?'6 %'H.

OURNALS&

A?AMBA M$BH'7F'', (2C1C),9 #$%&' 2C1C @ %'N'=M'?9, N

/:, ?./

4AN7 B$MA7,(2C1C),9#$%&' 2C1C &76H 47A'&R 07 2C2C

,N/:.

EB-SITES&

www.nfc.gov.in

www.dae.gov.in

www. indiaudget.nic.in

www.wi!ipiedia. org.

www.finmin.nic.in

1-intoduction 1-6.doc

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