SUMMER TRAINING REPORT

On
“Study of Budget & Budgetary Control”
At
Thomson Press Pvt. Ltd.
Submitted to
MAHARSHI DAYANAND UNIVERSITY, ROHTAK
for
The partial fulfillment of the award of degree of
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SESSION (2016-2019)
Submitted To: Submitted by:
Controller of Examination Name- UTTAM
MDU, Rohtak Roll no-
Ms. Reg.no-

Institute of Management & Technology, Faridabad

(Approved by AICTE & Affiliated to Maharshi Dayanand University, Rohtak)
Near Sai Dham, Tigaon Road, Faridabad -121002
 CHAPTER -1

INTRODUCTION

Budget and Budgetary control, both at management and operational level looks at the future and

lays down what has to be achieved. Control checks whether or not the plans are realized, and puts

into effect corrective measures where deviation or shortfall is occurring. The project was

undertaken to determine the Budgeting and Budgetary control in government owned companies.

The Study was also restricted to Nigeria National Petrolum Corporation (NNPC). Data was collected

through questionnaire. Investigation further revealed that in the event of deviation in the actual performance

from what was budgeted, the management usually investigates into the cause of such deviation and

thereafter corrective action taken. A good number of authors have attempted to define the term

‘budget’ we shall however consider some of these definitions in the later part of this work but for

the purpose of this introduction, we shall consider the general definition Briefly defined, a budget

could be seen as a plan showing how resources will be required and used over a specific period of time. It

represents a plan for the future expressed in quantitative terms. This definition however may seen over

simplified, but it contains a general idea of the budgetary system. However, a more comprehensive

definition of a budget will be considered in order to have an insight into the actual meaning of the term.
SIGNIFICANCE PROBLEM OF STUDY

Study of project needed for the systematized effort to gain new knowledge. It is systemizing study
consisting of a problem using the any hypothesis for the collection of the facts, data, analysis and
conclusion.
1. Combined judgment of entire organization: The budgeting process helps the organization
in determining the most profitable course, thus the bias or prejudice is eliminated and the final
plans are expressive of combined judgment of entire organization.
2. Optimum use of available facilities: The Budgeting process helps the organization in the
most effective use of physical equipment and other facilities. It helps in checking waste related
to their uneconomical use.
3. Prevention of waste: A searching inquiry into every contemplated expenditure and the reason
therefore an analytical approach extending to every function and every department of the
business- is constitute an effective prevention of waste.
4. Responsibility Accounting: The transactions or events are recorded in such a manner as to
identify them with individual in the organization who controls the activity and is to be held
accountable for it. The business plan are developed by the responsibility centers.

REVIEW OF LITERATURE

Cost accounting not only ascertainments but also at cost-control, and cost reduction. In order to
draw the maximum benefit from the limited resources of a business, it is necessary that there
should be effective and efficient utilization of the limited resources with a scientific and rational
approach. how much money should be expended on the various activities of business, in how
much time the work should be finished, what mode of sale should be adopted , consideration
should be paid on these matters and a formal planning should be made in this regard . The
Budgetary controls helps to achieve this objective.
“Every one is familiar with the idea of a budget as, in private life; few people embark on a project
involving expenditure without some idea of what that project will cost, even if this is never
committed to paper”.

SCOPE OF THE STUDY

1. TO FORMULATE A PLAN OF ACTION: Budget is a formal plan. The plans of action

depend upon the policy that the business decides to execute.

2. TO PROVIDE A MEANS OF CO-ORDINATION: All the activities of the business are to

co-ordinate together to achieve the aims goals of the business. Although different budgets will
be prepared for different activities e.g.: raw. Materials budget, labor budget, production budget,
sales budget, etc .Yet they are correlated to each other and co-ordination between the different
activities is provided by the means of master budget.

3. TO FACILITATE CENTRALIZED CONTROL: Budget is means for the top management

to control the business operations centrally. For the proper implementation of the policy and
achieving the targets, there is a need for delegation of authority and responsibility to the
executives.

4. BUDGETARY CONTROL AND STANDARD COSTING: Of these two budgetary

controls is based on the preparation of budgets, and standard costing has the system of

budgetary control as a pre-requisite

OBJECTIVES OF THE STUDY

The objectives of the study are as follows:-

1. I will study the budgets and budgetary control process of company.

2. I will compare the correct items with the preplanned items with a view to attain
equilibrium between ends and means , output and effort.

3. I will correct the deviations from preplanned path through the media of observation, research
planning control and decision making.

4. I will establish divisional and departmental responsibility.

5. I will know the straights, weakness, threats and opportunities of the company.

6. I will study the budget and budgetary control process also helpful to decided the path of the
goals of the company.

RESEARCH METHDOLOGY

Thomson Press (India) Ltd. is the largest and the most diversified printing house in South Asia
having a turnover of more than 200 cores with multi vocational units. It has been in operation for
over 40 years and is part of the India Today GROUP. A major multimedia company having
interests in printing, publishing Group, internet, Television and Radio. Customer Service is taken
care of by its wide network of sales offices in Delhi, Mumbai, Kolkata, and Bangalore and overseas
in New York, London, and Melbourne. Thomson press is a member of two prestigious World
Bodies GATF and PIRA. Revenue for the year 2016-2017 was us $60 million on an asset base of
us $ 34 million. Thomson press (I) limited, an ISO 9002 company was incorporated in 1967
with technical & financial collaboration of Thomson International Corporation of Canada,
as a public limited concern with 51% equity. The parent plant located at Faridabad was
inaugurated on 9th march 1967, by Dr. Zakir Hussein which is celebrated as company annual
day. Today it is recognized as India’s most well equipped and comprehensive printing plant,
employing a work force of over 1700 people. It possesses a unique infrastructure among
printing establishment in the country providing under one roof, turnkey services for a
range of printed work.

RESEARCH DESIGN

A research design is a framework or blueprint for conducting the research project. It gives details,
of the procedures necessary for obtaining the information needed to structure or solve research
problem. A research design involves following components:
1. I will define the information needed.
2. I will design the exploratory, descriptive and casual phases of the research.
3. I will specify the measurement and scaling procedures.
4. I will appropriate form of data collection.
5. I will specify the sampling process and sample size.

DATA COLLECTION

Data are facts, and other relevant materials, such as past and present are considered as bases for

study and analysis. For the study of research, the data requirement can be classified as:

Data relating to human beings.

Data relating to organizations.

The classification of data sources can be done as:

Primary sources.

Secondary sources.

PRIMARY DATA

The data which is collected by our self directly from original sources, is called primary data the

original source is called primary source for data collection. In this research study the primary

data is collected by the Interview Method.

Interview Method:

One of the main methods of data collection is conducting interviews. It takes place as a two-way

conversation between the researcher and respondent, whereby information is gathered by asking

topic related questions

SECONDARY DATA

The secondary data are data are collected from information which is used by other. It is not direct

information. This information is already collected and analysis by other and that information is

used by others. The secondary data are collected from following: -

Company’s annual report

Company’s website

Manual

Data analysis
ANALYSIS PATTERN

Analysis is placing the collected data in some order or format so that the data acquire a meaning.
Raw data become information only when they are placed in a meaningful form. Interpretation
involves drawing conclusions from the gathered data. Correlation method is used for analysis and
interpretation.The term analysis means the computations of certain measures or indices along with
searching for patterns of relationship that exists among data group.
“It is a process under which the relationship or differences supporting or conflicting with original
or new hypothesis should be, subjected to statistical tests of significance, determine with validity
data can be said to indicate any conclusion”.
Types of Analysis
 Descriptive Analysis
 Casual Analysis
 Co-relative Analysis
 Inferential Analysis

LIMITATIONS OF THE STUDY

The various limitations I faced while making the research were

 Differences in definitions

 Limitations of accounting records

 Lack of proper standards

 No allowances for price level changes

 Changes in accounting procedures

 Quantitative factors are ignored

 Limited use of single ratio

 Background is over looked

 One of the factors of the study was lack of availability of ample information. Most of the
information has been kept confidential and as such as not assed as art of policy of company.

 Time is an important limitation. The whole study was conducted in a period of 30 days, which
is not sufficient to carry out proper interpretation and analysis.

Chapter-2

Organization of study
 Chapter 1: - this chapter will contain the information about the introduction of the topic
“Study of Budget & Budgetary Control” on Thomson Press Pvt. Ltd
 Chapter 2: -This chapter will contain the information about the research methodology and

profile of an organization

 Chapter 3: -This chapter will contain the information about the micro analysis means

objective wise analysis

 Chapter 4: -This chapter will contain the information about the macro analysis and this

analysis is important as it contains the conclusion of this study also

 Chapter 5: -This chapter will contain the information about the summary of major

observations and recommendation

REFERENCE

Kothari, C.R,” Research Methodology” “Sultan Chand Publication, New Delhi, 2017

Maheshwari And Mittal,”Cost Accounting “Mahavir Publication, New Delhi, 2017

Singal A.K,” Accounting For Managers” JBC Publishers,New Delhi, 2017

Agarwal, M.L., “COST ACCOUNTING “Sahitya Bhavan Publications, Agra, 2017