Study 0n budget and budgetary control at Bharathi ass0ciates, Hassan.

1.1 INTRODUCTION ABOUT THE INTERNSHIP;

The internship program is designed to help a fortune to the student to maximize their
understanding on a field experience, there in explore the connection between academic
preparation of the student and the outside in the progress and implementation of the most
important filtration jointly furnish project that will aid, a good serve their internship experience
will conclude.

The 6 weeks interpersonal 4th semester of the MBA sequence is and for students and supply of
company with a high-caliber graduates whom to ready to double the object of providing mission-
critical information in the universe.

1.2 INDUSTRY PROFILE AND COMPANY PROFILE;

INDUSTRY PROFILE;

Introduction:

F00d Industry:
 India is the sec0nd largest pr0ducer 0f f00d in the w0rld then t0 China, and India would-
be biggest producer of f00d and agricultural sect0r. In this view India is gifted with a
large pr0duction base f0r variety of raw materials. Processing f00d cr0ps, c0mmercial
cr0ps and fibers due t0 its diverse agr0 climatic c0nditi0ns.
 India is the world‟s first largest producer of cereals and milk; second largest producer of
wheat, Rice, fruits, sugar and vegetables. And third largest producer of cotton. And
Seventh largest producer of fish; though India has the highest number of plats setups as
approved by US food and drug outside U.S.A.

F00d Pr0cessing:
 According to f00d market, processed food is the m0st imp0rtant segments 0f the f00d
industry f0r more than 32% in the f00d market. For which. India has abundant supply 0f
f00d. The f00d pr0cessing industry is still growing.
 Although food processing industry ranks fifth 1n the countryside, and has 6.3percent 0f
GDP above dealer. It acc0unts for about 13percent 0f the c0untry‟s exp0rts and total
industrial investment. The industry size is estimated at US $ 70 billi0n including value

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added products. And also with US $ 22 billion. This industry has-been attracting FDI
across different categories.

Foreign Direct Investment:

 F0reign Direct Investment (FDI) in the c0untry‟s f00d industry is balanced t0 US hits
5 billion mark by 210. The least 0ne year alone (2015) FDI approvals in f00d pr0cessing
have d0ubled. The cumulative FDI infl0w in f00d pr0cessing has reached $1,276 billi0n
in March 2015 in which is 2.68 percent 0f the total FDI INFLOWS int0 the c0untry.
 Many maj0r multi-nati0nal c0mpanies‟ coco-c0la, Pepsi, Britannia, Nestle, Cadbury,
Kellogg‟s lever‟s, Heinz, Internati0nal Best F00d and walls made etc. have their presence
in India. At the same time many 0thers their plants are drawing t0 enter 0r expand their
presence in their c0untry.

Food Retail:

 0ne 0f the best segments is the f00d that has-been experiencing a gr0wing interest in
food retailing. At present 0nly 1 percent 0f f00d items retailing in India. Food items are
sold through retail channels is expected. But the situation has change due to increasing
disposable income changing entre.
 S0me 0f the players that have sh0wn a keen interest in this segments are Reliance, Tata,
ITC Louisa groups Ind0 Rama, and Mumbai- based RK H0spitality, Bid Bazaar, and also
RPG groups. Currently, the size 0f the d0mestic retail market is estimated t0 be US $6
billi0n.

Key challenges of Indian Food Industry:

 With C0nsumer educati0n, the food can be processed m0re notorious.

 L0w price flexibility f0r pr0cessed f00d harvest.
 Need f0r cold chain and distributi0n netw0rk.
 Development of networks between administration and Industry.
 Taxation in line up with supplementary nations.

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1.3INDIAN AGRO INDUSTRY:

Industry outline:

Indian agriculture is one among edge in uprising. That will renew the entire f00d chain, as the
overall f00d pr0duction in India is expected t0 twice over in the next ten years.

According to recent studies the turnover of the total food market is around Rs.250000crores that
is $ 69.24 billi0n. Out of which the value added food products comprises cores Rs.80000 $22.22
billion. the g0vernment of India has also approved for the joint venture proposal, foreign
collaboration license and 100% industrial exports oriented units envisaging an investment for
about of Rs.9100cores.The agricultural f00d industry owe owing als0 assumes importance t0
India‟s sizable aggression ec0n0my.

GHERKINS

Indian gherkins Scenario:

 India the largest producer and exporter of fruits and vegetables due to having most
favorable climatic condition and abundant sources of resource in the whole world. There
is a rapid growth of fruits and vegetables from past decades. This is an indicator of
growth for upcoming years.
 Were „Gherkins‟ first grown in 1990‟s with first shipment made in Australia Since then
the markets expands t0 Spain, Belgium, H0lland and U.S.A. May thr0ugh the pe0ple
aware 0f it, is the 0rigin of CUCUMBER India.
 Due to the most favorable climatic conditions in India. Gherkins cultivati0n was
undertaken right through the year with the benefit of fertile land and sufficient water
bought a natural communication from developed countries like Europe to India.

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Origin
 In India pickle were well known from Vedic period. And first time cucumbers were
pickled in Mesopotamia.
 Cucumber were spread through Jewish
 A cucumber was widespread and still remains popular.

Demands for Gherkins Globally:

 Generally gherkins are dietary constituent to many in central Europeans Country Clubs.
 It is small slim and two inches long.
 The y0ung fruit 0f a variety of small, dark green cucumbers, gherkins are grown t0 make
pickles, especially; usually they are s0ld in jars, packed in pickling salt water bottle.
 They are especially p0pular in eastern Eur0pean country clubs.

Uses:
 Gherkins are used as main ingredient for starter and with meet slices finally chopped
gherkins as a main course with creamy mayonnaise with deeply grilled meat and also
used for burgers as a spread.

To Store:

 Gherkins are kept in jar air tight and away from direct sun light.

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1.4COMPANY PROFILE;

 Bharathi association is a partnership firm.

 Bharathi association founded on Monday the 28th November 1960.
 Location is Boovanahalli, national highway, Bangalore by pass, BM near, Hassan.
Karnataka 573201.
 Bharathi association number of share holders 5 members.
 Exporting country is Europe, UK, Australia, Holland, Germany and Russia.
 Major customer is Rewe, marcatus, wunsche, marc polo.
 Bharathi association total turnover is USD 50 million.
 Employee strength is 350.
 Product is pickles (gherkins).
 Groups of Bharathi associates, Bharathi nursing home, Bharathi med scribe,
Bharathi infobuiders,

1.5 Back ground and inception of the company:

Bharathi Associates founders started coffee processing unit in Hassan. Now they have expanded
their business in processed vegetables, Health care, Medical and technical transcription, Business
process out sourcing, electrical transformers.

1.6 Nature of business carried:

Bharathi Ass0ciates deals with processing 0f gherkins and exporting them t0 country clubs like
France, Germany, U.S.A, Holland, Australia, Ukraine, and Russia etc. They also export
processed vegetables to other countries. They also process the products based on customer
requirements.

1.7 Historical Achievements:

G0vernment 0f Karnataka State award f0r the excellence in Exports f0r the years continuously,
for the firm, from2000-2001, 20001-2002,2002-2003,2003-2004,2004-2005,2005-2006 and Best
Exporter Award district for the year 2006-2007 by Federation 0f “Karnataka Chambers 0f
C0mmerce and Industry”.

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1.8 Certifications:

 Bottling line is certified BRC A grade and IFS.

 Bulk Line is Certified IFS and Kosher.

1.9 PROMOTERS:
Bharathi Associates is a partnership firm, the active partners and owners are as f0ll0ws

Mr. G.L Mudde Gowda. Managing director

Mr. H.K kumara Swamy Manager

Mr.Manjunath G.N. Director finance

Mr.Mahendra H.K. Director process

Mr. Vinod G.M. Director marketing

1.10 VISION, MISSION, AND QUALITY POLICY:

VISION:

“To be the most preferred supplier of “pickled Vegetables” to all leading retail food chains and
also food service companies”

MISSION:

• Ensuring safe and hygienic product to customers.

• Continuous Improvement in quality standards.

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1.11 ORGANIZATION STRUCTURE

MANAGINING DIRECTOR

Director AGRI & Director Process Director

marketing department, &Administration, Account’s

AGRI department Logistics department

Training / HR Production Quantity Maintenance HYGINE Purchase

Section, Section, Assurance, Section, Section, store sect,

Account department Personal department

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1.12 QUALITY POLICY AND PRODUCT’S SERVICE:

Bharathi association follow verified excellence course charming accolade as of client universal.

 Periodical examination of insect killer residue, irrigate.

 Daily examination and study of all ingredients at release summit.
 On –line going over of goods.
 A company is having good quality, product and services with best tools and with state of
art microbiology chemical and laboratory.
 Bharathi Associates is having pest controlling system which is monitored by external
group in the factory.
 Company is having best control of pesticides for fruits and also for fresh vegetables and
also for finished goods.
 Every batch of final goods of Bharathi associates are controlled by thermal process of
“Data Tracer “and food safety measurement is undertaken for every batch of output
goods.
 Factory is installed with a plant in which is having a separate line which detects the metal
if in case involved in the jar.
 Company‟s products are also certified with kosher certification.

1.13 Company Products:

 Gherkins processed in Barrels

 Pickled gherkins in glass Jars
 Pickled Vegetables in glass jars
 Garnishing vegetables processed in Barrels and Glass jars
 Gherkins in Tins
 Cherry Tomato in Jars
 Cherry Tomato in Tins
 Baby Corn in Jar
 Baby Corn in tin
 Baby Corn In Barrels

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1.14 Areas of operations:

Bharathi Associates operates its business worldwide. Firm has built a powerful networking by
joining together hands with some of the leading gherkins bottlers, to promote their products all
Crossways in the globe, Bharathi Associates is purely an export oriented food industry, which
export its products to various countries like, USA, Russia, France, Germany, and also to Spain.
The major productions of gherkins are marketed to Germany and also to Spain.

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1.15 Organization Team:

Bharathi Associates managerial team is controlled by G.L Mudde Gowda esteemed owner and
proprietor with number of years of success in this field with huge success, in producing quality
gherkins and as a whole of Bharathi Groups.

Operations are headed by Mr.ArunRajeUrsC. A Diploma in Mechanical Engineering,Machines

tools and technology(MTT) HOD, factory in charge, maintenance and food safety Team Leader
(FSTL) Manager at Bharathi Associates Hassan . He has keen experience of 15 years in agro-
based operations and also in agro products processing and marketing.

1.16 Manufacturing:

Bharathi Associates have adopted one of the best agricultural practices for satisfying its
esteemed customers need and expectations. Companies focused on having quality rich products,
safe, processed, and also exported to consumer in time which is mainly achieved through well
skilled corporate and also with working conditions and their social networks.

1.17 On ground Practices:

 Bharathi Associates have their farming based on contracts with many number of farmers
and sowing it in a radius within 100 to 150 from the production area.
 Farmers of company are well equipped and they are also trained who can produce
different crops in a particular farm all the way through 12 months in a schedule year.
 Company has its own well trained and experienced group of members who looks after the
promotion and also its quality.
 Company has adopted scientific methods to select crops and for its analysis.
 As per Norms Company is strictly following pesticides and fungicides norm.

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1.18 Over control of Raw Materials and Supplies:

 Company grows their products like vegetables and fruits under their own supervision and
monitoring.
 Company ensures closeness in the growing areas to maintain cleanness of products.
 Company has adopted some of the best farming practices for which there is a less use of
pesticides.
 Company ensures a good periodical check of its water and proper use of pesticides.
 Company ensures examine of its raw materials which is supplied by its suppliers on a on
a daily basis.
 Company has adopted traceability of it products and services at any point of time.

1.19 Infrastructure:
 Company is having very neat, spacious and hygiene building.
 Company is having best modern equipments like pre cleaner, Grader, cold storage,
washing equipments, culling machine, juice satisfying machines, Metal detector machine,
Capping section Machineries, labeling ,machineries, and also coding machineries.
 Company has highly skilled managerial team well experienced and with full of
information.
 Company has well equipments installed in laboratories to check raw material and for
finished goods.
 Company has new technological X-ray machineries and also installed with glass spinners.

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1.20 Company Customers:

 A few esteemed customers are,
 Unilever best food, France
 Rietzel international, France
 Marqeters, Canada
 Forbes services, Srilanka
 Encurtidas Aragon
 Asian Food Factory, Singapore
 Wunche ,Germany
 Carl Durach ,Germany
 Euro vision, Russia
 Jogrex, Belgium
 Glav product, Russia.

1.21 Process:
 Equipped with modern machineries like
 Bulk processing grading
 Sorting
 Washing
 Adding preservatives
 Jars grading
 Sorting and washing jars
 Filing gherkins
 Adding flavors
 Metal detection
 Capping machine
 Pasteurizer
 Labeling machine
 Coding machine
 Juice filling machine
 Culling belts
 Washing machine
 Pre-cleaner
 Cold storage
 Conveyer
 Elevator. -Grader

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1.22 Purification:

Scaled jugs entered purification which are separated into 3 zones

 H0t
 Semi h0t
 C00l

 In the main z0ne the bottles are progressively warmed up by showering h0t dunked water
box and also splashing boiling hot water inside the jars from the temperature of 96c. The
time taken f0r this overall procedure will be taken for 12.92 minutes.

 In the second secti0n the temperature is not exactly as of first zone effectively taken for
this system was 6.46 minutes and there afterwards the jugs will be send to third z0ne
where the cool water pour at the r00m temperature. The time taken f0r this
methodology will be 8.62 minutes.

Explore hub:

Bharathi Ass0ciates has set up research facility offices for review and testing of all materials at
suitable steps approaching for the predefined attributes and parameters. Furthermore the
completed items are sent to a lab testing examination center once in 3 months.

Bharathi Associates is most trusted and winning awards for their quality and its laboratory takes
after demonstrated quality procedures.
 Periodically examination of pesticide and deposit and water
 Daily review and examination of all out put products.
 0n-line origin of pr0ducts.
 Half an hour investigation 0f temperature inside the containers of jars.

Analysis, testing 0f completed processed items, review.Although all shoppers will guarantee for
the nature of service provided by the Bharathi Associates,
Bharathi Associates would be charmed to give free samples specimens items to you experience
quality direct.

1.23 Competitors Information:

Major competitors of Bharathi Associates are,

INDO Spanish tasty food Pvt Ltd, Bangalore.

GLOBLE GREEN.
GREEN AGRO-PACT.
KEEN AGRITECH PVT LTD.
CALYPSO FOOD PVT LTD.

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1.24 SWOT ANALYSIS.

HELPFUL HARMFUL
TO achieving the objectives TO achieving the objective
Internal
origin
(Attributes of Strengths Weaknesses
the
organization)

External

Origin Opportunities Threats

(Attributes of
environment)

STRENTHS;

 Lesser c0st of pr0ducti0n:-as the labor available is cheap and also abundant.
 Current decisi0n making procedure which inv0lves every level of empl0yees.
 Bharathi ass0ciates have outstanding empl0yee empl0yer relati0nship which is serving in
sm00th running of the firm.
 Timely and also operative service.
 Karnataka produce 90% of gherkins production in India.
 Effective decision making.
 Location is geographically suitable and nearer to market.
 Timely and effective services.
 Higher demand in foreign countries. Major destinations are Europe, USA, Russia, France,
Germany, Belgium, Ukraine, Estonia, Israel, china, and Australia.

WEAKNESS;

 Seasonal crop hence raw materials are not available in all season.
 Composition by foreign brand.
 Don‟t have own vegetable farm hence depend on farmers.

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OPPORTUNITY;

 The company may aim at expanding the production line by processing other vegetable.
 The company may introduce product t0 market in its 0wn brand name as a retailer.
 Reduction in manual labor and shifting to automation.

THREATS;

 Competition since b0th f0reign and d0mestic c0mpanies.

 If the demand fr0m the pr0duct in foreign c0untries falls the firm will have t0 experience
l0ss.

1.24 FUTURE GROWTH AND PROSPECT’S;

 Fixed have the graph to amplify its manufacture as of 6000 bottles to 9000 bottles owing
towards boost during order.
 Firm has the plan t0penetrate int00ther Eur0pean markets.
 Firm planning t0 expand its business and manufacture new pr0ducts like chips, onion
products etc.
 Actualizing and keeping up appropriate client‟s correspondence. Amid generation,
observing would occur which would incorporate quality check for internet evaluating,
wash checking, media filling and pressing. A completed item examination will be done
according to particulars of every client. Bharathi relate has been deciding for giving best
quality items both in field and production line. Bharathi relate plant predominant delivers

Great quality prepared vegetable and pickles which are administration to great send out to a few
divisions of the world them set crisp vegetables from composers over various domains.

1.25 FINANCIAL STATEMENT;

The part 0f an 0rganization that manages its money, the business function 0f a finance
department typically included planning, 0rganizing, auditing, acc0unting, f0r and c0ntr0lling it
c0mpany finance. The finance department als0 usually pr0duces the c0mpany‟s financial
statements.

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C0ntr0lling expenditures and 0bligations (including operating expenses, department, payr0ll)

Receipting and depositing all revenues, Managing the investment of all monies, Accounting f0r
all assists and capital pr0ject expenditures

Balance sheet as on 31/03/2015-16

Liability Amount Assets Amount

Partnership capital a/c 1,45,00,000 Fixed assets 5,81,91,500
Partnership current a/c 1,64,60,200 Stock in hand 4,69,40,000
Unsecured loans NIL Sundry debtors 73,64,300
Secured loan 49,87,580 Deposits and advances 56,89,800
Sundry creditors 6,34,57,160 Investments-FD 95,000
Bank loan 6,24,37,369 Bank balance 2,28,270
Outstanding liability 9,82,300 Cash on hand 6,41,24,105
Medium & long term loans 1,99,94,566 VAT refundable 1,86,200
Provision for bad debts NIL VAT refundable (march 7) NIL
Service tax convert NIL
TOTAL 18,28,19,175 TOTAL 18,28,19,175

Balance sheet as on 31/03/2016-17

Liability Amount Assets Amount

Partnership capital a/c 1,45,02,200 Fixed assets 5,42,42,600
Partnership current a/c 3,08,06,800 Stock in hand 6,23,00,560
Unsecured loans Nil Sundry debtors 9,13,86,450
Secured loan 1,92,67,540 Deposits and advances 50,30,700
Sundry creditors 4,00,01,560 Investments-FD 65,500
Bank loan 8,11,59,340 Bank balance 12,55,100
Outstanding liability 52,82,560 Cash on hand 5,65,120
Medium & long term loans 1,71,51,024 VAT refundable 1,00,069
Provision for bad debts 67,75,075 VAT refundable (march 7) Nil
Service tax convert Nil
TOTAL 21,49,46,099 TOTAL 21,49,46,099

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Balance sheet as on 31/03/2017-18

Liability Amount Assets Amount

Partnership capital a/c 1,45,00,000 Fixed assets 5,05,46,700
Partnership current a/c 3,21,94,500 Stock in hand 7,32,79,000
Unsecured loans Nil Sundry debtors 9,90,69,800
Secured loan 1,47,27,300 Deposits and 83,20,600
advances
Sundry creditors 6,52,34,430 Investments-FD 71,502
Bank loan 8,14,34,500 Bank balance 1,32,490
Outstanding liability 92,88,200 Cash on hand 3,03,608
Medium & long term 1,40,31,200
loans VAT refundable 86,300
Provision for bad 3,99,870 VAT refundable Nil
debts (march 7)
Service tax convert Nil
TOTAL 23,18,10,000 TOTAL 23,18,10,000

1.26 RATIO ANALYSIS;

1. CALCULATION OF EQUITY RATIO;

EQUITY RATI0 = T0TAL EQUITY

T0TAL ASSETS×100

YEAR Total equity Total assets Ratio

2015-16 1,45,00,000 18,28,19,175 0.079:1
2016-17 1,45,00,000 21,49,46,099 0.067:1
2017-18 1,45,00,000 23,18,10,000 0.062:1

Analysis;

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Above the calculation of equity ratio shows that ratio can will fluctuating year by year the high
equity ratio in 2015-16 after it can be decreasing the value of the equity ratio year by year. Less
equity ratio is 2018-19. It show the decreasing the share holders ratio.

2. CALCULATION OF FIXED ASSETS RATIO;

FIXED ASSETS TURN0VER RATI0 = NET SALES

FIXED ASSETS ×100

YEAR Net sales Fixed assets Ratio

2015-16 31,32,35,241 5,81,91,500 5.382
2016-17 42,99,19,898 5,42,42,600 7.925
2017-18 51,61,76,552 5,05,46,700 10.211

Analysis;

Above the calculation shows fixed assets turnover ratio will fluctuating year by year. In 2015-
16the ratio can will increased more compared to all year the net sales was increased more the
company expected. When the sales increased the fixed assets values also increased. In less value
of ratio in the year 2018-19 compared sales is less.

3. CALCULATION OF GROSS PROFIT RATE;

GR0SS PR0FIT RATE = GR0SS PR0FIT

NET SALES×100

Year Gross profit Net sales Ratio

2015-16 3,52,58,893 31,32,35,241 0.11
2016-17 7,01,61,264, 42,99,19,898 0.16
2017-18 6,45,27,217 51,61,76,552 0.12

Analysis;

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Calculation of gross profit rate shows the it can be increased in values ratio in years in 2017-18 the
value of ratio but the sales and the gross profit will fluctuating. Less compared the other ratio.

4. CALCULATION OF RETURN ON SALES;

RETURN 0N SALES= NET PR0FIT

NET SALES ×100

Years Net profit Net sales Ratio

2015-16 46,23,292 31,32,35,241 0.014
2016-17 45,05,194 42,99,19,898 0.010
2017-18 1,12,54,347 51,61,76,552 0.021

Analysis;

Above the calculation shows the ratio can increase up to 2015-16 after it can be decreased the values of
sales compared previous year sales. The less net sales in the year are 2018-19 current year it can increases
the net sales values.

5. CALCULATIO OF DEBT RATIO;

DEBT RATIO= TOTAL LIABILITY

TOTAL ASSETS ×100

Total liability Total liability Total assets Ratio

2015-16 18,28,19,175 18,28,19,175 1:1
2016-17 21,49,46,099 21,49,46,099 1:1
2017-18 23,18,10,000 23,18,10,000 1:1

Analysis;

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The above the calculation shows the debts ratio it‟s all the year is sum values of ratio in year
2015-16 to 2018-19 current yearly , when the company income and expenditure both are sum
ratio is equally to 1.

6. CALCULATION OF DEBTY EQUTY RATIO

DEBT EQUTY RATIO = TOTAL LIABILITY

TOTAL EQUTY×100

Total liability Total liability Total equity Ratio

2015-16 18,28,19,175 1,45,00,000 12.60
2016-17 21,49,46,099 1,45,00,000 14.82
2017-18 23,18,10,000 1,45,00,000 15.98

Analysis;

The above calculation show the values of the ratio it‟s increased every year expected in 2018-19
current year value of ratio can be decreased the expenditure can be increased in 2018 years

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2.1 THEORETICAL BACK GR0UND 0F THE STUDY;

‘A STUDY ON BUDGET AND BUDGETARY C0NTR0L’

1. Introduction about budget and budgetary control;

Budget is used by businesses as a meth0d 0f financial planning f0r the future. Budget are
prepared f0r main areas 0f the businesses –purchases –sales(revenue)-pr0duction, lab0r,
trade receivables, trade payable, cash and pr0vide detailed plans 0f the business f0r the next
three 0r six 0r twelve m0nths,

Plan will be nothing yet the estimation about future income and additionally use to a
foreordained time of time. Planning will be an essential analytics and only book keeping in
the introduce situation from claiming globalized business. Those preparations from claiming
plan is best a stating occupation. That vital obligation of the cosset what‟s more over saw
economy book keeping frame work is budgetary control. This is a basic devise around
utilized toward those benefits of the business exercises. Here may be like wise endeavor with
take idea of planning further more genuine living requisition from claiming plan and
additionally budgetary control.

2.2 DEFINITION

‘The chartered institute of management acc0untants CIMA’

“Budget is a plan qualified in m0netary terms prepared and appr0ved prior to a defined peri0d 0f
time usually showing planned income t0 be generated and expenditure t0 e incurred during that
period and the capital t0 be employed t0 attain a given 0bjective”.

‘According lucey 1984’

“Plan are developed using physical values for examples, the numbers of units to be
produced, the number of hours to be worked, the amount of materials to be consumed and so on.
When monitory value is attached, the plan becomes a budget.

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2.3 ADVANTAGES 0F BUDGETING;

1. Budgeting c0mpels and m0tivates management t0 make an early and timely study 0f its
pr0blems. It generates a sense 0f caution and care, and adequate study am0ng manager‟s
bef0re decisi0n is made by them.
2. Budgeting pr0vides a valuable means 0f contr0lling inc0me and expenditure 0f a
business as it is a „plan f0r spending.‟
3. Budgeting pr0vides a t00l thr0ugh which managerial p0licies and g0als are peri0dically
evaluated, tested and established as guidelines f0r the entire 0rganization.
4. Budgeting helps in directing capital and 0ther res0urces int0 the m0st pr0fitable
channels.
5. Budgeting enables management t0 decentralize resp0nsibility with0ut l0sing c0ntr0l 0f
the business. It reveals weaknesses, deviati0ns in the 0rganization very pr0mptly which
can be checked immediately t0 achieve a desired g0al.
6. The use 0f budgeting in a 0rganization devel0ps an attitude of „c0st c0nsci0usness‟
stimulates the effective use 0f res0urces, and creates an envir0nment 0f pr0fit
mindedness through0ut the 0rganizati0n. It emphasizes h0w much sh0uld be spent t0
achieve a g0al.
7. It pr0vides an n0rms, basis 0r yardstick f0r measuring perf0rmance 0f dep0rtment and
individuals w0rking in 0rganizati0n. Individual managers can evaluate their 0wn
decisions and achievements and take suitable steps to improve their performances.
8. Budgeting encourages providing competition, provides incentive to perform efficiently
and gives a sense of purpose to each individual in the organization, all these positive
factors lead to higher output and increase employee productivity.
9. Budgeting pr0vides a systematic and disciplined appr0ach t0 the s0luti0n 0f pr0blems in
the 0rganizati0n.
10. Budgeting, if execute in nearly every enterprise, helps the t0tal nati0nally ec0n0my by
pr0viding stability 0f empl0yment, ec0n0mic use 0f res0urces and effective preventi0n
0f waste.

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2.4 BENEFITS OF BUDGETS AND BUDGETARY C0NTROL;

Budgets pr0vide benefits b0th f0r the business and als0 f0r its managers and 0ther staff.

1. The budget assists planning:

By f0rmalizing 0bjectives thr0ugh a budget, a business can ensure the plan share achievable. It
will be able t0 decide what is needed t0 pr0duce the 0utput 0f g00ds and services, and t0 make
sure that everything will be available at the right time.

2. The budgets communicates and co-ordinates:

Because a budget is agreed by the business, all the relevant managers and staff will be w0rking
t0 w0rds the same end.

When the budget is being set, any anticipated pr0blem should be resolved and any areas 0f
p0tential c0nfusion clarified. All departments sh0uld be in a p0sition t0 play their part in
achieving the 0verall g0als.

3. The budget helps with decisi0n making:

By planning ahead thr0ugh budgets, a business can make decision 0n h0w much 0utput in the
f0rm 0f g00ds 0r services can be achieved. At the same time, the c0st 0f the 0utput can be
planned and changes can be made where appr0priate.

4. The budget can be used to monitor and c0ntr0l:

An imp0rtant reas0n f0r pr0ducing budget is that management is able t0 use budgetary c0ntr0l
t0 m0nit0r and c0mpare the actual results this is s0 that acti0n can be taken t0 m0dify the
0peration 0f the business as time passes. 0r p0ssibly t0 change the budget if it bec0mes
unachievable

5. The budget can be used t0 m0tivate;

A budget can be part of the techniques f0r motivating managers and 0ther staff t0 achieve the
0bjectives 0f the business. The extent t0 which this happens will depend 0n h0w the budget is
agreed and set, and whether it is thr0ugh be fire and achievable. The budget may als0 be linked
t0 rewards (f0r example- business) where targets are met 0r exceeded.

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2.5 BUDGETARY C0NTR0L MEANING

Budgetary control is the pr0cess 0f preparati0n 0f budgets f0r various activities and comparing
the budgeted figures f0r arriving at deviations if any, which are t0 be eliminated in future. Thus
budget is a means and budgetary c0ntr0l is the end result.

ACCORDING T0 BR0WN AND H0WARD

“Budgetary contr0l is a system 0f c00rdinating c0sts which includes the preparati0n 0f budgets,
c00rdinating the w0rk 0f department and establishing resp0nsibilities, c0mparing the actual
perf0rmance with the budgeted and acting up0n results t0 achieve maximum pr0fitability”

2.6 STEPS IN BADGETARY CONTROL SYSTEM;

Preparing the budget

C0mmunicating the budget

Measuring results

C0mparing results and analyzing

deviations

Repairing the results and taking c0rrective acti0ns

Revising 0f the budget

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2.7 TYPES 0F BUDGET

Basis 0f activity Nature of transaction Basis 0f function

Basis 0f time

L0ng term budget Fixed budget Capital budget Master budget

Sh0rt term budget Flexible budget operating budget financial budget
Current budget operational budgets

0n the basis 0f time

 L0ng term budget-

Budget prepared f0r a peri0d 0f 5 t0 10 years.
 sh0rt term budget-
Budget prepared f0r a peri0d 0f 1 t0 2 years.
 current budget-
Budget prepared f0r a peri0d 0f less than 6 m0nths.

0n the basis 0f activity

 fixed budget-
Budget that is fixed f0r a given level 0f activity 0r time peri0d and d0es n0t change with
changing business situati0ns, it may be wise t0 reduce fixed c0st t0 0btain a more
favorable combination. Thus direct selling may be supplemented by the use 0f
wh0lesalers. When maj0r change in fixed c0st is pr0p0sed, management uses f0recast 0f
the targeted net income and the unit contribution margin as a guide towards a wise
decisi0n.

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 Flexible budget -
Budget that is flexible and can be revised from time t0 time acc0rding t0 the changing
business needs and situati0ns, in the flexible budget without standard costing, it is
desirable to separate all expenditure into fixed and variable expenditure as their behavior
differs in circumstances, which are subject to fluctuation. Thus as production increases,
economics of large scale buying may reduce the direct material cost but an increases in
the fixed cost may take place.

0n the basis 0f nature 0f transaction

 Capital budget –
Budget prepared f0r the capital expenditures 0f a business. Capital budget inv0lves fixed
assets that the firm need f0r its 0perations. It is the pr0cess 0f budgeting f0r 0btaining,
expanding and replacing fixed assets. All 0rganization needs facilities t0 carry 0n their
0perations, this may include building and 0ther structures required f0r running the
enterprise.

 0perating budget-
Budget prepared t0 meet the day t0 day expenses 0f a business. Operating budget is
based primarily on the organization‟s sales forecast. It is a budget of sales revenue less
expenses and essentially ends up with gross profit.

0n the basis 0f function

 Master budget –
Vari0us functi0nal budgets are integrated t0gether t0 f0rm a master budget. Master
budget summarizes the 0bjectives 0f all sub units 0f a 0rganizati0n‟s sales, pr0ducti0n,
distributi0n, and finance. It qualifies the expectati0n regarding future inc0me, cash fl0ws,
financial positi0n and supp0rting plans.

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Study 0n budget and budgetary control at Bharathi ass0ciates, Hassan.

 Financial budget –
Budget related t0 various c0sts and revenues 0f the 0rganization.
1. Cash budget
2. W0rking capital
3. Capital expenditure budget
4. Inc0me statement
5. Budgeted balance sheet
6. Retained earning
 0perational budgets
Budgets prepared f0r different activities 0r 0peration 0f the 0rganizati0n.
1. Sales budget
2. Pr0ducti0n budget
3. Material budget
4. Pers0nnel budget
5. Plant utilizati0n budget
6. Marketing budget
7. Administrative and selling expenses budget
8. Manufacturing expenses budget

2.8 LITERATURE REVIEW

Review 0f literature is an imp0rtant exercise in research because it tells what has been devel0ped
in the subject 0f the study, h0w it has been d0ne and what is the c0nclusi0n arrived at. Review
0f literature helps the researcher t0 find 0ut the research gap.

A number of research studies have been undertaken by different researcher in the field of gender
budgeting at national and international level. Several research w0rks are c0mpleted in India t0
strengthen gender budgeting in the c0untry.

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Au0thr- Badu, Daniel (year 2011)

Title- budgeting and budgetary c0ntr0l at earnest chemist, Accra, Ghana

A budget is the functi0nal statement prepared pri0r t0 a predetermined peri0d of time of the
policy t0 be pursued during that peri0d f0r the purp0se 0f 0btaining given 0bjectives. Budgeting
and budgetary c0ntr0l leading r0le in every c0mpany 0r institution by helping in establishing in
efficient management c0ntr0l system f0r creating sustainable c0mpetitive advantages, the aim 0f
the study 0f c0nduct research concerning the budget practice in Ernest chemist.

Author- Lambe Isaac (year 2015)

Title- A systematic review of budgeting and budgetary control in government owned

0rganization.

Budgeting and budgetary control entail the establishment of goal by the management of an
organization and designing a process which service as a frame work with in which an
organization effectively articulated overall the establishment of an effective mechanism to
guarantee desired result is known as budgeting.

Author- Gersh0n kpedor (year 2012)

Title-budgeting, budgetary c0ntr0l and perf0rmance evaluati0n: a case study 0f all terrain
service gr0up (ATS)

The prevailing uncertainties in Africa business envir0nment t0day, m0st managers and
stakeh0lders must p0ised t0 c0mpete fav0rably under this rapidly changing c0nditi0n. In 0rder
t0 survive under this envir0nmental c0mplexities and vagueness, managers and stakeh0lders 0f
the h0spitality industry need a sharp tool, proven management techniques t0 f0recast the maj0r
changes which are likely t0 affect the business while they ch00se future directi0n and dimensi0n
0f res0urces needed t0 attain selected g0al.

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Author- KUWATA, G0NI (year 4 April 2015)

Title – the r0le 0f budgeting and budgetary c0ntr0l 0n 0rganizati0nal perf0rmance; a case
study 0f tahir guest h0use, KAN0 STATE-NIGERIA

Budgeting is an indispensable t00l in the h0spitality industry which has pr0fit maximizati0n as
its g0al and this can 0nly be realized when res0urces are pr0perly and c0ntr0lled with the
required c0mmitment and expertise. Hotel accommodation in Nigeria is facilitated mostly by the
corporate sector, with booing for conference and meeting demand being highest.

Author- ZIPPORAH WAYUA MUTUNGI (year November 2017)

Title- effect of budgeting and budgetary c0ntr0l 0n financial perf0rmance 0f devolved

government in Kenya

In the world today, budgeting has been widely used as on a tool budgetary control by many
public entities mainly to achieve their financial performance. Budgetary control system is
applied all over in the whole world by being referred absolutely necessary instrument for
planning and performance. The study objective was to determine the effects between budgeting
and budgetary c0ntr0l 0n financial perf0rmance of county government.

Author- AMALA, V VENKATASWAMI (year 2015)

Title – a study 0n budgetary control with special reference to Coimbatore district

co-operative milk producer’s union limited, Coimbatore

The budget management is enjoying a significant role within organization. The role of fund
management is that the essence of a business. The knowledge is that the blood and fund
management. The study advice top management of modern organization to take budget and
budgetary control issues seriously as no appreciable success can be achieved with haphazard
budget and budgetary control.

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Author – JAMES NWOYE OBI (year 2015)

Published by: international journal of sustainable development,

Title- Budget and budgetary control as the metric for corporate performance,

Budget and budgetary control is the thrust of this article. It tries to examine the practices of
Budget and budgetary control in corporate organization and its merit as a predictor of corporate
performance against those targets. For an organization to be successful it must plan its financial
activities well in advance through the institution of effective budgeting and budgetary control
measures.

Author – marygoreth lyaruu Joseph (year 2014)

Title- the budget and budgetary c0ntr0l in enhancing financial perf0rmance 0f 0n

0rganization,

The study aimed assessing budget and budgetary control in enhancing financial perf0rmance 0f
and 0rganization. Specifically the study focused on identifying the budgeting process of
TANESCO, from the year 2006-2012 and to determine the contribution of budget in the financial
Performance of the company.

Author –SAMUL N KAMUNGE (year December 2016)

Title – survey 0f budgeting control practices in management 0f secondary sch00l: case 0f

Meru north region in Kenya.

This study was a survey 0f budgetary control practices in management 0f secondary sch00ls in
Meru n0rth regi0n in Kenya. The theory of budgeting, accounting, budgetary control theory and
the school based budgeting model were reviewed under the theoretical framework determinants
of budgetary control were examined after which an empirical review of the study variables was
done globally and locally.

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Study 0n budget and budgetary control at Bharathi ass0ciates, Hassan.

Author- Rebeccah Nyambura (year 2014)

Title – the effect 0f budgetary control on effectiveness on Nongovernmental organizations

in Kenya

Budgeting involves the establishment of predetermined goals. The reporting of actual

performance results and evaluation of performance in terms of the predetermined goals,
budgetary control system are universal and have been considered an essential tool for financial
planning.

Author- Esther wanjiku kibunja (year 2012)

Title – budgetary process and financial performance of MURANG ‘A country government,

Kenya

The purpose of this study was to investigate the relationship between budgetary process and
financial performance of murang a country government in Kenya. The specific objectives of the
study were to determine the effect of budgetary planning, implementation, monitoring and
evaluation on the financial performance of murang s county govt.

Author-Evans Kerosi (year 2018)

Title – analysis 0f budgetary control practice and the management 0f micro and small
enterprises at kangemi t0wn in Kenya,

The study s0ugh t0 assess the effect 0f budgetary control practices in the management micro and
small enterprises at kangemi in Kenya, The theory of budgeting, accounting theory and
budgetary control theory were reviewed under the theoretical framework. Determinants 0f
budgetary control were examined after which an empirical review 0f the study variables was
d0ne b0th gl0bally and l0cally.

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Author –Asantina yolla Sebastian (year 2018)

Title- effects 0f budgeting 0n financial perf0rmance: A study 0f selected manufacturing

firms in kin0nd0ni district, dare s salaam Tanzania.

The study intended t0 examine the effects 0f budgeting 0n financial perf0rmance 0f

manufacturing firms in kin0nd0ni district, dare s salaam Tanzania. A descriptive research design
was ad0pted. A sample of 75 resp0ndents fr0m selected manufacturing firms was empl0yed.
Purp0sive sampling was used t0 select seventy five respondents from selected manufacturing
firms.

Author – Elias hailmesked (year 2018)

Title – assessment on budget implementation and controlling: Case of Ababa city

administration finance and economic devel0pment bureau

The study aimed at assessing budget implementation and controlling in enhancing performance
of the Addis Ababa city administrati0n of finance and economic devel0pment bureau.
Specifically the study focused on identifying the existing condition of plan and budget
integration, budget and expenditure, budget utilization and controlling and performing of
performing of audit for approved budget in the transformation plan.

Author –santoshi aru (year 2017)

Title –purpose of budgeting and literature review –international journal of science

technology and management

This paper study the literature regarding budgets and their importance within a company, in the
current economic climate, companies are starting t0 pay m0re attention t0 efficient management
0f res0urces and. F0r this purp0se use budgets as t00ls f0r financial management at company‟s
level and at the level 0f the main types 0f company‟s activities.

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Study 0n budget and budgetary control at Bharathi ass0ciates, Hassan.

Author – ONHO Stephen Ioryer (year 2017)

Title – a critical appraisal 0f budgeting and budgetary control in the public sect0r – a case
study 0f ministry 0f finance, makurdi

The paper titled. A critical appraisal 0f budgeting and budgetary control in the public sect0r is
aimed at finding 0ut the impact of budgeting and performance in the public sector. To ascertain
the effectiveness of budgets control, the writers used literature review as their main sources of
data using ministry of finance.

Author –Iman mohsin Hassan (year 2015)

Title – budgetary control system f0r university of Karbala Iraq based 0n adaptive
budgetary control frame work

Every organization doing exceedingly well relies heavily 0n budgets, and in essence budgetary
control measures t0 impr0ve perf0rmance thr0ugh adequate res0urce allocati0n, budget and
budgetary control b0th at management and 0perational levels following the same trends.

Author- Ifrah Ahmed Mohamed (year 2015)

Title – analysis of the effectiveness of budgetary control techniques on organization

performance at dara salaam bank headquarters in hargeisa Somaliland

This study examined h0w budgetary control can impact on the perf0rmance 0f dara salaam bank.
The 0bjectives were t0 find 0ut h0w resp0nsibility acc0unting influence 0rganizational
perf0rmance t0 determine whether variance cost analysis affects 0rganizational perf0rmance and
t0 establish h0w zer0 based budgeting affects 0rganizati0nal perf0rmance.

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Author- Ayorekire MacLean (year 2018)

Title – budget and budgetary control in non-governmental organization: a case 0f

infectious diseases research collaboration (IDRC)

The study sought to establish the budgeting process, challenge and benefits of budgetary and
budgetary controls at infectious diseases research collaboration (IDRC) the study based on the
foundation that budgetary and budgetary control play significant role in the resources
management of an on organization t0 achieve the set target.

Author- saniauduusman (year 2016)

Title – the effect 0f budgeting and budgetary control in l0cal g0vernment administrati0n 0f
Nigeria

The pr0cess 0f all0cating resources t0 meet demand, As well as converting rhet0ric t0 reality in
the p0litical system is termed budgeting, that process should link the past, the present and the
future in standard and 0rderly way. Before the beginning of every financial year, g0vernment at
all level (federal, state, l0cal g0vernment) announces their budget f0r the New Year. They state
the 0bjectives they anticipate in attaining thr0ugh the peri0d, and the plan 0f acti0ns necessary.

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3. RESEARCH DESINGH

3.1 STATEMENT OF THE PROBLEMS

The budget is prepared by financial department of Bharathi association with consolation of

various department however, the estimated figure does not match with figure always in the case
of raw material consumption a fully based on population of availability of raw material from
other state, this company is not straightly following budgetary control system sometimes
company is fail in budget the financial needs properly.

Bharathi association Hassan union is the producer of pickles and various vegetable products and
preparation by the account department is consultation with the various other departments.

3.2 NEEDS FOR THE STUDY

 To know the techniques used by Bharathi associates with regard to capital budget
 To know using various budgeting techniques of about the organization‟s operation.
 To find of how to organization‟s get‟s various resources, which gives main exposure to
practical embrangle of theory knowledge.

3.3 OBJECTIVES

 To study the existing budgetary system.

 To analyze the variance of various budget of the organization.
 To analyze the operating, capital expenditure and cash budget.
 To forecast the budgeted pr0fit and l0ss acc0unt and balance sheet.

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3.3 SCOPE OF THE STUDY

 The study helps in understand the techniques used by Bharathi associates.

 These examine gives the difference between the budget execution and genuine concern
 This study provides management with means performance and identify problem on
budgetary control.

3.4 RESEARCH METHODOLOGY

Source of data collected

Mainly two method has fulfillment of the study the data has been c0llected.

1. Primary data
2. Sec0ndary data.

Primary data

 To regarded about information of primary data for analyzed discussion of with company
accounts and assistant of manager of finance of account department.
 To research methodology for techniques using of qualitative data, cost it concept
mathematical models statistical techniques applicable to numerical data.

Secondary data

Collected from various secondary data from company like company web site, reference book,
Periodicals, annual reports published by Bharathi Association

 Internet for using

 Annual report of Bharathi association union limited
 Data provided by Bharathi association

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3.5 LIMITATION OF THE STUDY

 Limitation of the data collected budgeting because changing economy.

 The preparation of a budget which gives factual position of the company.
 Time factor duration in budgeting control management.

3.6 CHAPTER SCHEEM

Chapter 1: Introduction
Intr0ducti0n, Industry pr0file and company pr0file: Pr0m0ters, visi0n, missi0n and Quality
p0licy. Pr0ducts / services profile areas 0f 0peration, infrastructure facilities, c0mpetit0r‟s
information, SWOT Analysis, Future gr0wth and pr0spects and financial statements.
Chapter 2: C0nceptual backgr0und and literature review
The0retical backgr0und 0f the study, Literature review with research gap (with minimum 20
literature reviews)
Chapter 3: Research Design
Statement 0f the pr0blem, Need f0r study, 0bjectives, Sc0pe 0f the study, Research
meth0d0l0gy, Hyp0thesis, Limitati0ns, chapter scheme
Chapter 4: Analysis and Interpretati0n
Analysis and interpretation 0f the data-c0llected with relevant tables and graphs, Results
0btained by using statistical t00ls must be included.
Chapter 5: findings, conclusi0n and suggesti0ns
Summary 0f findings, c0nclusi0n and suggesti0n/ rec0mmendati0ns

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4.ANALYSIS AND INTERPRETATION

The purpose of interpreting and analyzing data of budgets related to Bharathi association is to
transform the collected data into credible evidence about the development of the intervention and
its performance.

4.1 SALES BUDGET

Sales budget is the record significant budget in Bharathi associates, and methods the basis on
which all extra budget are built up.

Sales budget for the year 2015-16

Budget for the year Actual for the year Variance variance
Product 2015 2015 %
Pickles Quantity Price Amount quantity Price amount
Gherkins 12,32,571 290 35,74,45,590 13,45,900 290 39,03,11,000 3,28,65,410 9
Baby corn 2,95,600 195 5,76,42,000 3,10,500 195 6,05,47,500 29,05,500 5
Cherry tomato 2,91,550 155 4,51,90,250 3,40,500 155 5,27,77,500 75,87,250 16
Vegetable 2,55,750 230 5,88,22,500 2,10,900 230 5,65,07,000 (23,15,500) -3
Pickles
Gherkin seeds 4,55,765 165 7,52,01,225 4,75,000 165 7,83,75,000 31,73,775 4
Total 25,31,236 59,43,01,565 26,82,800 63,85,18,000 4,42,16,435 31

ANALYSIS

The sales budget for the year 2015-16represent that the budget total sales of gherkins, baby
corns, cherry tomato, vegetable pickles, and gherkin seed RS. 59,43,01,565 of quantity
25,31,236g , but the actual total sales of gherkins, baby corn, cherry tomato, vegetable pickles,
and gherkin seed RS.63,85,18,000 of quantity 26,82,800g. The sales has varied by 31%.the
variance of sales is RS. 4, 42, 16,435.

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sales budget for the year 2015-16

450000000
400000000
350000000
300000000
250000000 budget
200000000 actual
150000000 variance
100000000
50000000
0
gerkins babycorn cherry tomato vegetable gherkin seeds
pickle

Interpretation:

Sales quantity and sales price is under estimate, so the actual total sales has exceeded the budgeted sale
and it denotes the growth for company and to expects good profit.

Sales budget for the year 2016-17

Budget for the year Actual for the year Variance Variance
Product 2016 2016 %
Pickles quantity price amount quantity price Amount
Gherkins 12,75,100 300 38,25,30,000 13,95,800 300 41,87,40,000 3,62,10,000 9
Baby corn 2,77,700 200 5,55,40,400 2,89,286 200 5,78,57,200 23,16,800 4
Cherry tomato 2,97,900 160 4,76,64,000 3,26,497 160 5,22,39,520 45,75,520 9
Vegetable 2,19,700 240 5,27,28,000 2,15,600 240 5,17,44,000 9,84,000 -1
Pickles
Gherkin seeds 3,91,900 170 6,66,23,000 3,97,300 170 6,75,41,000 9,18,000 1
Total 24,62,300 60,50,85,400 26,24,483 64,81,21,720 4,30,36,320 22

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ANALYSIS

The sales budget for the year 2016-17 represent that the budget total sales of gherkins, baby
corns, cherry tomato, vegetable pickles, and gherkin seed RS.60,50,85,400 of quantity
24,62,300g, but the actual total sales of gherkins, baby corn, cherry tomato, vegetable pickles,
and gherkin seed RS.64,81,21,720 of quantity 26,24,48. The sales has varied by22%, the
variance of sales is RS.4, 30, 36,320.

sales budget for te year 2016-17

450000000
400000000
350000000
300000000
250000000 budget
200000000 actual badget
150000000 variance
100000000
50000000
0
gerkin baby corn cherry vegitable gerkin seeds
tomato pickle

Interpretation

Sales quantity and sales price is under estimate, so the actual total sales has exceeded the budgeted sale
and it denotes the growth for company and to expects good profit.

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Sales budget for the year 2017-18

Budget for the year Actual for the year Variance Variance
Product 2017 2017 %
Pickles quantity price amount quantity price amount
Gherkins 13,39,250 310 41,51,67,500 14,15,099 310 43,86,80,690 2,35,19,190 5
Baby corn 2,65,467 215 5,70,75,405 3,21,710 215 6,01,67,650 30,92,245 5
Cherry tomato 2,25,080 165 3,71,38,200 3,26,910 165 3,03,36,250 68,01,950 18
Vegetable 2,00,270 225 6,25,60,750 2,58,630 225 5,71,91,750 13,69,000 -8
Pickles
Gherkin seeds 1,47,113 146 2,14,78,498 2,39,170 146 2,49,18,820 34,40,322 16
Total 22,37,180 59,34,20,353 25,61,519 61,12,95,160 4,22,16,707 36

ANALYSIS

The sales budget for the year 2016-17 represent that the budget total sales of gherkins, baby
corns, cherry tomato, vegetable pickles, and gherkin seed RS.59,34,20,353 of quantity
22,37,180g.but the actual total sales of gherkins, baby corn, cherry tomato, vegetable pickles,
and gherkin seed RS.61,12,95,160 of quantity 25,61,519g. The sales have varied by36%, the
variance of sales is RS.4, 22, 16,707

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Study 0n budget and budgetary control at Bharathi ass0ciates, Hassan.

sales budget for the year 2017-18

500000000
450000000
400000000
350000000
300000000
budget
250000000
200000000 actual

150000000 variance

100000000
50000000
0
gherkin baby corn cherry tomato vegetable gherkin seeds
pikcle

Interpretation

Sales quantity and sales price is under estimate, so the actual total sales has exceeded the budgeted sale
and it denotes the growth for company and to expects good profit.

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4.2 PR0DUCTI0N BUDGET

Pr0ducti0n budget is an estimate 0f the pr0ducti0n 0r the 0ut f0r the budgeted peri0d.

Production budget for the year 2015-16

Production budget
product Gherkins Baby Cherry tomato Vegetable pickle
corn
Budgeted sale of 12,30,580 2,50,600 2,87,200 2,15,600
Add: closing stock 53,100 11,200 12,900 9,104
12,83,680 2,61,800 3,00,100 2,24,704
Less: opening sales 53,100 11,200 12,900 9,104
Production after normal loss 12,30,580 2,50,600 2,87,200 2,15,600
Add: normal loss in production 65,350 10,100 5,925 6,840
Units to be produced 12,95,930 2,60,700 2,93,125 2,22,440
Total units to be produced 20,72,195

ANALYSIS:

The production budget for the year 2015-16 represent that the total units produced for the year 2015 is
20, 72,195.

Interpretation:

Gherkin produced in larger extent.

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Study 0n budget and budgetary control at Bharathi ass0ciates, Hassan.

production budget of 2015-16

1295930

260700 293125
222440

gherkin baby corn cherry tomato vegetable pickle

Production budget for the year 2016-17

Production budget
product Gherkins Baby corn Cherry tomato Vegetable pickle
Budgeted sale of 12,75,192 2,58,710 2,89,900 2,17,700
Add: closing stock 55,816 11,700 12,900 9,200
13,31,008 2,70,410 3,02,800 2,26,900
Less: opening sales 55,816 11,700 12,900 9,200
Production after normal loss 12,75,192 2,58,440 2,89,900 2,17,700
Add: normal loss in production 39,900 10,900 8,600 8,615
Units to be produced 13,15,092 2,69,340 2,98,500 2,26,315
Total units to be produced 21,09,247

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Study 0n budget and budgetary control at Bharathi ass0ciates, Hassan.

production budget of 2016-17

1315092

269340 298500
226315

gherkins baby corn cherry tomato vegetable pickle

ANALYSIS:

The production budget for the year 2016-17 represent that the total units produced for the year 2016 is
21, 09,247.

Interpretation:

Gherkin produced in larger extent.

Production budget for the year 2017-18

Production budget
product Gherkins Baby corn Cherry tomato Vegetable pickle
Budgeted sale of 13,35,200 2,63,400 2,23,078 2,58,270
Add: closing stock 55,900 11,800 11,201 10,700
13,91,100 2,75,200 2,34,288 2,68,970
Less: opening sales 55,900 11,800 11,210 10,700
Production after normal loss 13,35,200 2,63,400 2,23,078 2,58,270
Add: normal loss in production 28,906 7,918 6,835 10,911
Units to be produced 13,64,106 2,71,318 2,29,913 2,69,181
Total units to be produced 21,34,518

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Study 0n budget and budgetary control at Bharathi ass0ciates, Hassan.

production budget of 2017-18

1364106

271318 229913 269181

gherkins baby corn cherry tomato vegetable pickle

ANALYSIS:

The production budget for the year 2017-18 represent that the total units produced for the year 2017 is
21, 34,518.

Interpretation:

Gherkin produced in larger extent.

4.3 PRODUCTION COST BUDGET

Cost of production budget is a estimate or a estimation of the cost of production of the quantity
of manufacture planned as per the production budget. It includes the estimation of different
elements of cost of production, like, direct labour cost, direct material cost, and factory
overheads.

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 Study 0n budget and budgetary control at Bharathi ass0ciates, Hassan.

Production cost budget of 2015-16

product Production cost budget 2015-16

Gherkins Baby corn Cherry tomato Vegetable pickle
12,88,100 2,60,500 2,92,920 2,22,000
C0st/ T0tal c0st C0st/ T0tal c0st C0st/ T0tal c0st C0st/ T0tal c0st
unit unit unit Unit

Direct material cost 71 9,14,55,100 26 67,73,000 13 38,07,963 26 57,72,000

0
Direct wages 26 3,34,90,600 16 41,68,000 7 20,50,440 8 17,76,000

Prime cot 96 12,36,57,600 41 1,06,80,500 21 61,51,320 31 68,82,000

Factory over head 24 3,09,14,400 16 41,68,000 11 32,22,120 7 15,54,000

Cost of production 12 15,45,72,000 54 1,40,67,000 31 90,80,520 39 86,58,000

ANALYSIS:

The production budget for the 2015-16 represent that the production cost. Budget for the year
2015 is RS.18, 63, 77,520.

Interpretation:

Gherkin cost of production is more.

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 Study 0n budget and budgetary control at Bharathi ass0ciates, Hassan.

production cost budget of 2015-16

154572000

14067000 9080520 8658000

gherkin baby corn cherry tomato vegetable pickle

Production cost budget of 2016-17

product Production cost budget 2016-17

Gherkins Baby corn Cherry tomato Vegetable pickle
13,10,130 2,70,41 2,98,515 2,25,300
C0st/ T0tal c0st C0st/ T0tal c0st C0st/ T0tal c0st C0st/ T0tal c0st
unit unit unit Unit
Direct material cost 86 11,26,71,180 2 73,01,070 14 41,79,210 29 65,33,700

Direct wages 31 35,06,14,030 17 45,96,970 6 17,91,090 7 15,77,100

Prime cot 115 15,06,64,950 45 1,21,68,450 21 62,68,815 37 83,36,100

Factory over head 26 3,40,63,380 14 37,85,740 9 26,86,635 9 20,27,700

Cost of production 139 18,21,08,070 60 1,62,24,600 31 92,53,965 47 1,05,89,100

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Study 0n budget and budgetary control at Bharathi ass0ciates, Hassan.

ANALYSIS:

The production budget for the 2016-17 represent that the production cost. Budget for the year
2016 is RS.21, 81, 75,735.

Interpretation:

Gherkin cost of production is more.

production cost budget of 2016-17

182108070

16224600 10589100
9253965

gherkin baby corn cherry tomato vegetable pickle

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Production cost budget of 2017-18

product Production cost budget 2017-18

Gherkins Baby corn Cherry tomato Vegetable pickle
13,57,850 2,68,259 2,27,704 2,62,351
C0st/ T0tal c0st C0st/ T0tal c0st C0st/ T0tal c0st C0st/ T0tal c0st
unit unit unit Unit

Direct material cost 91 12,35,64,350 29 77,79,511 15 34,15,560 33 86,57,583

Direct wages 31 4,20,93,350 19 50,96,921 9 20,49,336 11 28,85,861

Prime cot 121 16,42,99,850 47 1,26,08,173 23 52,37,192 43 1,12,81,093

Factory over head 29 3,93,77,650 15 40,23,885 11 25,04,744 8 20,98,808

Cost of production 149 20,23,19,650 63 1,69,00,317 35 79,69,640 54 1,41,66,954

ANALYSIS:

The production budget for the 2017-18 represent that the production cost. Budget for the year
2016 is RS.24, 13, 56,561.

Interpretation:

Gherkin cost of production is more.

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production cost budget of 2017-18

202319650

16900317 14166954
7969640

gherkin baby corn cherry tomato vegetable pickle

4.4 REVENUE BUDGET

Revenue budget is a forecast or an estimation of the revenue from sales and from other sources.

Revenue budget of 2015-16

description For the year 2015-16

Budget actual Variance Variance
Amount (RS) Amount (RS) Amount (RS) Percentage %
Collection
Revenue 55,96,31,700 50,75,90,498 5,20,41,202 9
Other /income 1,18,30,712 1,30,31,241 (-12,00,529) -10
Total collection 57,14,62,412 52,06,21,739 5,08,40,673 9

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Study 0n budget and budgetary control at Bharathi ass0ciates, Hassan.

ANALYSIS:

The revenue budget for the year 2015-16 represent that budgeted total revenue is RS.57, 14,
62,412,but actual total collection was RS.52, 06, 21,739. The variance of revenue is RS.5, 08,
40,673. And variance percentage is 9%.

Interpretation:

Total REVENUE was not favorable.

revenue budget of 2015-16

600000000

500000000

400000000

300000000 Series 1
Series 2
200000000

100000000

0
revenue other incomes/events

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Revenue budget of 2016-17

description For the year 2016-17

Budget Actual Variance Variance
Amount (RS) Amount (RS) Amount (RS) Percentage %
Collection
Revenue 61,59,81,500 62,77,11,341 1,17,29,841 2
Other /income 1,28,09,985 1,31,91,031 3,81,046 -3
Total collection 62,87,91,485 64,09,02,372 1,21,10,887 2

ANALYSIS:

The revenue budget for the year 2016-17 represent that budgeted total revenue is RS.62, 87,
91,485. But actual total collection was RS.64, 09, 02,372. The variance of revenue is RS.1, 21,
10,887. And variance percentage is 2%.

Interpretation:

Total REVENUE was not favorable.

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revenue budget of 2016-17

700000000

600000000

500000000

400000000
Series 1
300000000 Series 2

200000000

100000000

0
revenue other income

Revenue budget of 2017-18

description FY 2017-18
Budget actual Variance Variance
Amount (RS) Amount (RS) Amount (RS) Percentage %
Collection
Revenue 64,65,34,381 66,55,31,441 1,89,97,060 3
Other /income 1,35,91,790 1,40,10,516 4,18,726 3
Total collection 63,29,42,591 65,15,20,925 1,94,15,786 3

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Study 0n budget and budgetary control at Bharathi ass0ciates, Hassan.

ANALYSIS:

The revenue budget for the year 2017-18 represent that budgeted total revenue is
RS.63,29, 42,591. But actual total collection was RS.65, 15, 20,925. The variance of revenue is
RS.1, 21, 10,887. And variance percentage is 2%.

Interpretation:

Total REVENUE was not favorable.

revenue budget of 2017-18

700000000

600000000

500000000

400000000
Series 1
300000000 Series 2

200000000

100000000

0
revenue other income

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4.5 CAPITAL EXPENDITURE BUDGET

Capital expenditure budget is a forecast or an estimation of long term expenses.

CAPITAL EXPENDITURE BUDGET OF 2015-16

description FY 2015-16
Budgeted Actual variance Variance
Amount (RS) Amount (RS) Amount (RS) Percent %
Capital exp- budget
Investment 71,148 65,448 5,700 8
Interest on bank loan 1,88,75,600 1,88,75,600 - -
TDS payment 15,47,895 15,47,895 - -
Total 2,04,94,643 2,04,88,943 5,700 8

ANALYSIS:

The capital expenditure budget for the year 2015-16 represent that budgeted total expenditure is
RS.2, 04, 94,643.But actual total expenditure was RS.2, 04, 88,943. The variance in capital
expenditure is RS. 5700. And variance percentage is 3%.

Interpretation:

Total operation expenditure is unfavorable.

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capital expenditure budget of 2015-16

20000000
18000000
16000000
14000000
12000000
10000000 budget

8000000 actual

6000000
4000000
2000000
0
investment intrest on bank loan tds payment

CAPITAL EXPENDITURE BUDGET OF 2016-17

description FY 2016-17
Budgeted Actual variance Variance
Amount (RS) Amount (RS) Amount (RS) Percent %
Capital exp- budget
Investment 77,081 73,400 3,681 5
Interest on bank loan 2,00,74,184 2,00,74,184 - -
TDS payment 17,00,656 17,00,650 - -
Total 2,18,51,921 2,18,82,240 3,681 5

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Study 0n budget and budgetary control at Bharathi ass0ciates, Hassan.

ANALYSIS:

The capital expenditure budget for the year 2016-17 represent that budgeted total expenditure is
RS.2,18, 51, 921. But actual total expenditure was RS.2, 18, 48,240. The variance in capital
expenditure is RS. 3,681. And variance percentage is 5%.

Interpretation:

Total operation expenditure is unfavorable.

capital exp budget of 2016-17

25000000

20000000

15000000
budget

10000000 actual

5000000

0
investment intrest on bank loan tds payment

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CAPITAL EXPENDITURE BUDGET OF 2017-18

description FY 2017-18
Budgeted actual variance Variance
Amount (RS) Amount (RS) Amount (RS) Percent %
Capital exp- budget
Investment 75,501 73,830 2,271 3
Interest on bank loan 2,13,97,319 2,13,97,319 - -
TDS payment 17,51,700 17,51,700 - -
Total 2,32,24,520 2,32,22,249 2,271 3

capital exp budget of 2017-18

25000000

20000000

15000000
budgets

10000000 actual

5000000

0
investment intrest on bank loan tds payment

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Study 0n budget and budgetary control at Bharathi ass0ciates, Hassan.

ANALYSIS:

The capital expenditure budget for the year 2017-18 represent that budgeted total expenditure is
RS.2, 32, 24, 520, but actual total expenditure was RS.2, 32, 22,249, the variance in capital
expenditure is RS. 2,271. And variance percentage is 3%.

Interpretation:

Total operation expenditure is unfavorable.

4.6 CASH BUDGET

Cash budget is a fore cast or an estimation of all cash receipts and cash payment.

Cash budget for the year 2015-16

FY 2015-16
Description budget actual variance Variance
Amount (RS) Amount (RS) Amount (RS) Percentage %
Opening cash 5,40,650 5,55,123 14,473 3
balance
Add: collection from
the debtors
60% cash sales 31,00,71,751 31,87,51,200 86,79,449 3
40% credit sales 20,30,91,472 20,72,36,199 41,44,727 2
Total estimated cash 51,37,03,873 52,65,42,522 1,28,38,649 -2
receipt
Less: estimated pay- 41,29,09,172 43,46,41,233 2,17,32,061 5
out
Cumulative closing 10,07,94,701 9,19,01,289 88,93,412 3
cash balance

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ANALYSE:

The cash budget for the 2015-16 represent that expected closing cash balance is RS.10,07,94,701
.But actual closing cash balance was RS. 9,19,01,289. The variance of cash balance is RS.
88,93,412. And variance percentage is 3%.

Interpretation: Closing cash balance is OVER ESTIMATED.

cash budget 2015-16

amount

100794701

91901289

budgets actual

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Cash budget for the year 2016-17

FY 2016-17
description budget actual variance Variance
Amount (RS) Amount (RS) Amount (RS) Percentage %
Opening cash balance 5,91,553 6,18,271 26,718 5
Add: collection from
the debtors
60% cash sales 33,75,21,330 34,42,91,731 67,70,401 2
40% credit sales 22,14,00,631 22,51,02,641 77,02,010 2
Total estimated cash 55,95,13,514 57,40,12,643 1,44,99,129 1
receipt
Less: estimated pay- 12,49,18,468 12,74,16,835 24,98,367 2
out
Cumulative closing 43,45,95,046 44,65,95,808 1,20,00,762 -1
cash balance

ANALYSE:

The cash budget for the 2016-17 represent that expected closing cash balance is
RS.43,45,95,046. But actual closing cash balance was RS. 44,65,95,808. The variance of cash
balance is RS. 1,20,00,762. And variance percentage is 1%.

Interpretation: Closing cash balance is OVER ESTIMATED.

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cash budget of 2016-17

amount

446595808

434595046

budget actual

Cash budget for the year 2017-18

FY 2017-18
description budget actual variance Variance
Amount (RS) Amount (RS) Amount (RS) Percentage %
Opening cash balance 6,25,517 6,45,303 19,796 3
Add: collection from
the debtors
60% cash sales 35,56,48,450 36,98,76,440 1,42,27,990 4
40% credit sales 23,70,05,720 24,17,35,832 47,30,112 2
Total estimated cash 59,32,79,687 61,22,57,585 1,89,77,898 -3
receipt
Less: estimated pay- 13,12,38,342 13,51,75,520 39,37,178 3
out
Cumulative closing 46,20,41,345 47,70,82,065 1,50,40,720 -3
cash balance

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ANALYSE:

The cash budget for the 2017-18 represent that expected closing cash balance is
RS.46,20,41,345. But actual closing cash balance was RS47,70,82,065. The variance of cash
balance is RS. 1,50,40,720. And variance percentage is -3%.

Interpretation: Closing cash balance is OVER ESTIMATED.

cash budget 2017-18

amount

477082065

462041345

budget actual

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5. SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUTION

5.1 FINDINGS:

The variance calculated in sales budget, during the year 2015-16, has decreased by 31%,
2016-17, 2017-18,increased 22%, 36%, respectively when the actual budget is compared
with the estimated budget, sales quantity is underestimated. As the sales quantities have
been increased that indicates good sales turnover of the Bharathi association.

the total unit of gherkin, baby corns, cherry tomato and vegetable pickles, observed in the
production budget during the year 2015-16, 2016-17, 2017-18, are 20,72,195, 21,09,247,
21,34,518, units respectively. Production of products increased year by year as the
production quantities have been increased that indicates good demand for the pickle
products of Bharathi association and noticeably there is a high demand for gherkin pickle.

The total production cost of gherkins, baby corns, cherry tomato, and vegetable pickles,
during the year 18,63,77,520, 21,81,75,735, 24,13,56,561, respectively. Cost of
production increased year by year. Thus there is a need in controlling the cost and
increasing the profit margin.

The variance calculated in revenue budget, during the year 2015-16 has decreased by 9%
in 2016-17, 2017-18, the revenue increased by 2%, 3%, respectively when the actual
budget is compared with the estimated budget. Revenue has been increased from 2016to
2018, that indicates profit of the Bharathi associates.

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The variance calculated in capital expenditure budget, during the year 2015-16, 2016-17,
2017-18, has decreased by 8%, 5%, 3%, respectively when the actual budget is compared
with the estimate budget. Capital expenses are overestimated.

The variance calculated in cash budget, during the year 2015-16, 3%, 2016-17, 2017-18,
the revenue increased by 1%, 3%, respectively when the actual budget is compared with
the estimated budget. Closing cash balance in the year 2015-16, was over estimate but in
2016-17, 2017-18, the closing cash balance was underestimated.

5.2 SUGGESTIONS

By the findings it is clearly show that budgeting correlates with company performance and acts
as cost control tool.

Thus, Bharathi associates have a sound budgetary system but to avoid the variance, it has to do
proper planning. Budgetary control has become effective cost control tool to the management.

Bharathi associates should focus on company‟s objectives and make plan to achieve it
through budgetary control process.
Framed plans in all stages of budgeting should be followed regularly and properly by all
the departments.
Bharathi association should focus on preparing estimations on all overheads in order to
have control over the cost.
The sales and marketing team of the organization should prepare the sales budget by
checking the target sales of pickle product to different geographical area.
Reports statements and other supporting record should be maintained to check when any
information is needed.

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It should continue the continuous comparison of current performance with budgeted

performance that will result in whether the company is in profit or loss.
Bharathi associates needs to keep a track on various costs which can be controlled
through negotiation or bulk purchase.

5.3 CONCLUSION:

The budget is a estimate of future needs organized in an orderly manner, covering some or all of
the company‟s activities for a certain period of time. Budgeting and budgetary control is backed
up with proper planning which has to be realized with effective communication and coordination
and put int0 effect c0rrective measures where deviati0n occurs. Budgetary control has bec0me
an essential t00l 0f management f0r c0ntr0lling cost and maximizing pr0fits.

Thus, by the study 0f budgeting and budgetary control at Bharathi associates arrived at a
conclusion that budget plays a crucial role in the company; it correlates with the company
performance and acts as a cost control tool the company. Fetching the reason behind variations
between actual and budgeted helps to maximize its profit

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5.4 BIBLiOGRAPHY

BOOKS

1. Title: financial management and cost acc0unting

Auth0r: M Y khan, P K Jain.
Publication: mc graw- hill publishing company limited.
Edition: third edition, 1981.

2. Title: financial management

Author: I Mpandey.
Publication: new Delhi vikas publishing house private ltd.
Edition: ninth, 2004

3. Title: financial management

Author: sharan

Articles:

1. Budgetary control- management research accounting research:

Author: wim a van der stede A
Year: 1 march 2001

2. Budgetary control in antecedent of participative budgeting

Type: Accounting, organization and society
Journal: Accounting, organization and society
Name of author: shields Suffolk J.F university USA M.D shields
Year: 1998

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3. Budgetary control- accounting organization and society

Author: mark A. covaleski mark W. dirsmit
Year: volume 13, issue, 1988 pages 1-24
Type: opt for a choice to locate/ access this

4. Reliance on fund management, producing method automation and production

monetary unit performance: an exploration note.
Author: Alan S. dunk western state capital, Nepean, Australia
Type: accounting, organization and society accounting.

5.5 BIBILOGRAPHY

 http://www.bharathiassociates.c0m
 http://plus.bharathiassociates.c0m
 http://www.scribd.com
 http://www.slideshare.net

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5.6 ANNEXURE

5.6.1Audited Profit & Loss Accounts for the year 2015-16

TO Opening Stock 4,52,07,100 BY Sales export 27,58,61,319

TO Purchases 20,91,67,977

TO Transport charges 2,20,32,356 Deemed export 5,43,679

TO Ocean freight 19,74,612

charges
TO Processing 1,88,22,634 LOCAL 3,79,56,239
charges BCCW
TO Wages 1,63,72,505

TO Freight 99,730 Sales return (-) 11,25,996

TO entry tax 3,86,643

TO fruit fly bait 400 BY closing stock 4,69,40,000

charges
TO terminal handling 1,08,52,391
charges
TO gross profit 3,52,58,893

36,01,75,241 36,01,75,241

TO administration 30,206 BY GROSS PROFIT 3,52,58,893

charges on PF
TO advertisement & 36,989 BY other income 1,90,58,402
promotions
TO bad debts 6,61,199
TO bank charges 22,65,659
TO bonus 7,75,636
TO certification 8,64,210
charges
TO computer expense 1,54,552
TO consumables 9,09,387
TO contingencies 1,70,891
TO donations & 1,14,813
charity
TO electric charges 3,36,927

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TO employers PF 13,851
insurance
TO employers family 2,25,972
pension
TO employers 99,508
provident fund
TO entertainment 3,21,705
TO employers ESI 32,790
TO establishment 28,91,505
TO farm trading 1,009
expense
TO foreign tour 9,61,925
expense
TO forwarding 23,89,603
expense
TO retaining 18,090
allowance
TO insurance 4,38,000
TO medical expenses 34,000
TO fire wood 2,50,919
TO fumigation 49,000
charges –PEST
TO field day 1,79,000
expenses-training
TO interest paid 1,83,37,000
TO chemical analysis 7,72,909
TO labor welfare 5,98,299
expenses
TO petrol & oil 43,09,299
TO pooja expenses 43,368
TO postage & courier 2,96,130
TO professional 4,88,865
charges
TO rates & taxes 3,15,935
TO rent paid 13,26,700
TO repairs & 31,18,908
renewals
TO subscription & 64,000
membership
TO gardening expense 15,00,000
TO miscellaneous -
expense
TO telephone 3,35,500

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expenses
TO travelling expense 4,37,290
TO water testing 50,000
charges
TO depreciation 5,00,000
TO net profit before -
tax c/f
TO income tax -
TO income tax -
provision for the year
TO net profit 46,23,292

TOTAL RS 5, 43, 17,295 TOTAL RS. 5, 43, 17,295

5.6.2Audited Profit & Loss account for the year 2016-17

To Opening Stock BY Sales:

4.69,40,100 38,98,62,895
TO Purchases By deemed export‟s
28,31,27,900 29,28,225
TO Transport charges By local
3,68,05,988 3,86,90,668
TO Ocean freight charges
8,37,500
TO Processing charges (-) by sales return 15,61,890
BCCW 2,54,39,600
TO Wages
2,00,87,852
TO Freight BY closing stock
97580 6,24,00,000
TO Fruit fly bait charges
97,858
TO terminal handling
charges 87,24,256
TO gross profit
7,01,61,264
Total Total
49,23,19,898 49,23,19,898

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TO administration charges BY GROSS PROFIT 7,01,69,412

on PF 35,056
TO advertisement & BY other income 1,30,35,237
promotions 4,71,980
TO bad debts
7,23,831
TO bank charges
43,57,267
TO bonus
13,40,534

TO certification charges 5,34,698

TO computer expense
2,46,890
TO consumables
9,02,227

TO contingencies 1,00,834

TO donations & charity 71,950

TO electric charges
4,60,627
TO employers PF insurance
15,789
TO employers family
pension 2,62,922
TO employers provident
fund 1,16,678
TO entertainment
2,89,884
TO employers ESI
1,49,836
TO establishment
30,77,498
TO farm trading expense 35,775
TO foreign tour expense
19,20,126
TO forwarding expense
42,29,580

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TO foreign exchange
fluctuation loss 85,14,614
TO gratuity(provision)
6,49,610
TO retaining allowance
9,100
TO insurance
10,00,195
TO medical expenses
17,696
TO fire wood
20,90,937

TO fumigation charges –
PEST 99,668
TO field day expenses-
training 42,350
TO interest paid
1,86,.05,893
TO chemical analysis
9,101
TO labor welfare expenses
13,78,259

TO petrol & oil 41,56,887

TO pooja expenses 29,360

TO postage & courier 5,83,690
TO printing and stationary 8,80,690
TO professional charges
5,56,531
TO rates & taxes
6,12,975
TO rent paid
14,87,205
TO repairs & renewals
51,25,725
TO subscription
&membership 1,07,857
TO gardening expense
26,960
TO telephone expense
2,69,158

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TO travelling expense
4,07,513
TO water testing charges
2,880
TO depreciation
83,50,000
TO net profit before tax c/f
89,15,925
Total 8,32,04,649 Total 8,32,04,649

TO income tax BY net profit before tax 88,50,530

25,00,000 (B/F)
TO income tax provision
for the year 25,00,000

TO net profit
45,05,194
TOTAL RS 88, 50,530 TOTALRS 88, 50,530

5.6.3 Audited Profit & Loss account for the year 2017-18

To Opening Stock 6,24,00,100 BY Sales export 46,72,66,203

TO Purchases 35,27,19,307
TO Transport charges 1,66,95,966 BY Deemed export 25,99,264
expense cargo
TO Ocean freight charges 32,28,221

TO transportation charges 4,25,44,466 BY Local 4,82,25,330

gherkin cherry
TO Processing charges 2,59,23,230
BCCW
TO Wages 28,25,983 BY Sales return (-)
19,14,245
TO Freight 2,02,853
TO Fruit fly bait charges 1,71,455 BY closing stock 7,32,79,217
TO inland hauling charges 1,16,07,759

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TO transport –charges 66,09,212

service tax
TO gross profit 6,45,27,217
Total 58,94,55,769 Total 58,94,55,769
TO administration charges 40,727 BY GROSS PROFIT 6,45,27,217
on PF
TO advertisement & 1,05,041 BY other income 3,06,39,993
promotions
TO bad debts 15,29,347
TO bank charges 33,92,942
TO bonus 11,91,777
TO certification charges
8,10,635
TO computer expense 2,32,969
TO consumables 27,80,625
TO contingencies 331
TO donations & charity 1,33,102
TO electric charges 19,13,482
TO employers PF 18,467
insurance
TO employers family 3,07,615
pension
TO employers provident 1,35,577
fund
TO entertainment 3,15,606

TO employers ESI 1,70,692

TO establishment 34,46,154
TO farm trading expense 69,762
TO foreign tour expense 16,80,634
TO forwarding expense 79,60,911
TO computer expenses 2,32,969
TO gratuity(provision)
5,95,889
TO software development
charges 4,173
TO insurance 10,05,099
TO medical expenses 30,787
TO fire wood 13,85,112
TO fumigation charges –
PEST 1,29,929

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TO field day expenses- 41,000

training
TO interest paid 2,37,39,334
TO chemical analysis 3,72,967
TO labor welfare expenses 11,19,431
TO petrol & oil 33,76,570
TO pooja expenses 44,666
TO postage & courier 7,47,460
TO professional charges
10,66,275
TO rates & taxes 4,33,134
TO rent paid 18,26,711
TO repairs & renewals
57,10,547
TO subscription
&membership 21,420
TO gardening expense 18,151
TO telephone expense 4,56,414
TO travelling expense 16,83,950
TO water testing
charges(gherkins) 87,777
TO depreciation 71,96,239
TO miscellaneous
expenses 2,112
TO income tax(earlier
years) 5,48,351
TO income tax provision
for the year 58,00,000
TO net profit 1,12,54,347

9,51,67,210 9,51,67,210
TOTAL RS TOTAL RS

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5.6.4 Balance sheet as on 31/03/2015-16

Liability Amount Assets Amount
Partnership capital a/c 1,45,00,000 Fixed assets 5,81,91,500
Partnership current a/c 1,64,60,200 Stock in hand 4,69,40,000
Unsecured loans NIL Sundry debtors 73,64,300
Secured loan 49,87,580 Deposits and advances 56,89,800
Sundry creditors 6,34,57,160 Investments-FD 95,000
Bank loan 6,24,37,369 Bank balance 2,28,270
Outstanding liability 9,82,300 Cash on hand 6,41,24,105
Medium & long term loans 1,99,94,566 VAT refundable 1,86,200
Provision for bad debts NIL VAT refundable (march 7) NIL
Service tax convert NIL
TOTAL 18,28,19,175 TOTAL 18,28,19,175

5.6.5 Balance sheet as on 31/03/2016-17

Liability Amount Assets Amount
Partnership capital a/c 1,45,02,200 Fixed assets 5,42,42,600
Partnership current a/c 3,08,06,800 Stock in hand 6,23,00,560
Unsecured loans Nil Sundry debtors 9,13,86,450
Secured loan 1,92,67,540 Deposits and advances 50,30,700
Sundry creditors 4,00,01,560 Investments-FD 65,500
Bank loan 8,11,59,340 Bank balance 12,55,100
Outstanding liability 52,82,560 Cash on hand 5,65,120
Medium & long term loans 1,71,51,024 VAT refundable 1,00,069
Provision for bad debts 67,75,075 VAT refundable (march 7) Nil
Service tax convert Nil
TOTAL 21,49,46,099 TOTAL 21,49,46,099

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5.6.6 Balance sheet as on 31/03/2017-18

Liability Amount Assets Amount
Partnership capital a/c 1,45,00,000 Fixed assets 5,05,46,700
Partnership current a/c 3,21,94,500 Stock in hand 7,32,79,000
Unsecured loans Nil Sundry debtors 9,90,69,800
Secured loan 1,47,27,300 Deposits and 83,20,600
advances
Sundry creditors 6,52,34,430 Investments-FD 71,502
Bank loan 8,14,34,500 Bank balance 1,32,490
Outstanding liability 92,88,200 Cash on hand 3,03,608
Medium & long term 1,40,31,200
loans VAT refundable 86,300
Provision for bad 3,99,870 VAT refundable Nil
debts (march 7)
Service tax convert Nil
TOTAL 23,18,10,000 TOTAL 23,18,10,000

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