19-01-2013, 03:54 PM
A STUDY ON BUDGETARY CONTROL at RANNA SUGARS
A STUDY ON BUDGETARY CONTROL at RANNA SUGARS.doc (Size: 445 KB / Downloads: 41)
OBJECTIVES OF THE STUDY:
1) To study the existing budgetary controls method & practices at Ranna Sugars .
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’s 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 Ranna Sugars also adapted this system. In Ranna Sugars 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 authority 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 Ranna Sugars 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 compete 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 input, output are 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 2005-06 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.