COMPANY PROFILE

COMPANY PROFILE
The Indian Council of Agricultural Research (ICAR), New Delhi, India is an autonomous organization under the Department of Agricultural Research and Education, Ministry of Agriculture, government of India. Formerly known as the Imperial Council of Agricultural Research, it was established in 1929 as a registered society under the Societies Registration Act, 1860 in pursuance of the report of the Royal Commission on Agriculture. ICAR has its headquarters at New Delhi. The Council is the apex body for coordinating, guiding and managing research and education in agriculture including horticulture, fisheries and animal sciences in the country. It has 99 ICAR institutes and 53 agricultural universities spread across the country. Union Minister of Agriculture, SharadPawar is President and Dr. S. Ayyappan is Director General of ICAR. ICAR has the following organizational structure:

Union Minister of Agriculture is the ex-officio President of the ICAR Society. Secretary, Department of Agricultural Research & Education Ministry of Agriculture, Govt. of India & Director-General, ICAR the Principal Executive Officer of the Council.

Governing Body is the policy-making authority Agricultural Scientists' Recruitment Board Deputy Directors-General (8) Additional Secretary (DARE) and Secretary (ICAR) Additional Secretary and Financial Advisor 24 Assistant Directors-General National Director, National Agricultural Innovation Project Directorate of Information and Publications of Agriculture

ICAR has two bodies:

The General Body, the supreme authority of the ICAR, is headed by the Minister of Agriculture, Government of India

The Governing Body which is the chief executive and decision making authority of the ICAR. It is headed by the Director-General.

PRESIDENT OF ICAR SHARAD PAWAR

Dr. S. Ayyappan is Director General of ICAR

The ICAR has played a pioneering role in ushering Green Revolution and subsequent developments in agriculture in India through its research and technology development that has enabled the country to increase the production of food grains by 4 times, horticultural crops by 6 times, fish by 9 times (marine 5 times and inland 17 times), milk 6 times and eggs 27 times. Since 1950-51, thus making a visible impact on the national food and nutritional security. It has played a major role in promoting excellence in higher education in agriculture. It is engaged in cutting edge areas of science and technology development and its scientists are internationally acknowledged in their fields.

Milestones

1957: Initiation of the first All-India Co-ordinate Research Project on maize. 1958: Status of Deemed University accorded to IARI. 1960: Establishment of the first State Agricultural University on land grant pattern at Pantnagar.

1966: Placement of agricultural research institutes under the purview of ICAR. 1973: Creation of the Department of Agricultural Research and Education (DARE) in the Ministry of Agriculture.

1974: Opening of first KrishiVigyan Kendra (KVK) in Pondicherry. 1975: Establishment of Agricultural Research Service and Agricultural Scientists' Recruitment Board.

1979: Launching of Lab-to-Land Programme and the National Agricultural Research Project (NARP).

1995: Initiation of institution-village linkage programme (IVLP). 1996: Establishment of National Gene Bank at New Delhi. 1989: The ICAR was bestowed with the King Baudouin Award for its contribution in ushering in the Green Revolution. Again awarded King in 2004 for research and development efforts made under partnership in Rice Wheat Consortium.

Launching of National Agricultural Technology Project (NATP) in 1998 and National Agricultural Innovation Project (NAIP) in 2005

As of July, 2006 it has developed a vaccine against flu. The vaccine was developed at the High Security Animal Disease Laboratory, Bhopal, the only facility in the country to conduct tests for the H5N1 variant of bird flu.It was entrusted with the task of developing a vaccine by the ICAR after the Avian Influenza outbreak in February. The ICAR provided Rs.8crore for the purpose.

VISION AND MISSION OF THE ORGANISATION

Vision
Companys Values: Ensure food and income security for all, through technological innovations and sustainable agriculture. Promote innovations and improve human resource capacity by involving all stakeholders in the food-supply chain Promote adaptation and preparedness for meeting climate change challenge and evolve mechanisms for effective drought and flood management.

Mission
To Harness power of science and education with a human touch for higher and sustainable agricultural production. To maintain the trusts of the farmers To contribute in research and development poverty alleviation and hunger reduction

INTRODUCTION

INTRODUCTION

Budget- Definition
A budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. It expresses strategic plans of business units, organizations, activities or events in measurable terms.

Budget helps to aid the planning of actual operations by forcing managers to consider how the conditions might change and what steps should be taken now and by encouraging managers to consider problems before they arise. It also helps co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments. Other essentials of budget include:

To control resources To communicate plans to various responsibility center managers. To motivate managers to strive to achieve budget goals. To evaluate the performance of managers To provide visibility into the company's performance For accountability

Budgetary control is the important aspect for industry development because budgets provide yard stick against which the actual performance is measured. It always helps to the top management to take the appropriate decision to motivate and directing their personnel towards well set plans and policies of the company. By considering the advantage of the budgetary control the ICAR also adapted this system. In ICAR they were maintaining the monthly budget with the help of daily reports. The daily reports must contain the item like production efficiency, agriculture facilities, man power requirement, consumption of electricity etc. With this the budgetary control manager prepares a monthly profitability statement of a particular month & submitted that one of the appropriate authority like production manager. By this statement or submitted report, they will take correct decision about the organizational activities.

A study has been conducted on the BUDGETARY CONTROL which is most probably adopted in the ICAR. Budgetary control i.e. a most powerful tool to the management for performing its function i.e. formulating plans, coordinating activities and controlling operations etc. BUDGETARY CONTROL Budgetary control is the use of the comprehensive system of budgeting to aid management in carrying out its functions like planning, coordination and control. This system involves: Division of organization on functional basis into different sections known as a budget center. Preparation of separate budgets for each budget center. Consolidation of all functional budgets to present overall organizational objectives during the forthcoming budget period. Comparison of actual level of performance against budgets. Reporting the errors with proper analysis to provide basis for future course of action. GENERAL OBJECTIVES OF BUDGETARY CONTROL ARE AS FOLLOW:

1) Planning:
A budget is a plan of the policy to be pursed during the defined period of timed to attain a given objectives. The budgetary control will force management at all levels to plan in time all the activities to be done during the future periods. A budgeted as a plan of action achieves the following purposes. Action is guided by well thought out plan because a budget is prepared after a careful study and research. The budget serves as a mechanism through which managements objectives and policies are affected. It is bridge through which communication is established. The most profitable course of plan is selected.
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2). Co-Ordination:

The common objectives of the firm may be successfully achieved by the way of budgetary control because it stimulates the co-operation of all concerns with the co-ordinates the various activities.

3) Communication: It is necessary in an efficient organization that all people be informed about the objectives, polices, programmers and performance. This is made possible through their Participant in the budgeting process. Budgets inform each manager of what others have agreed to do. They also inform managers of the resources available objects and targets. Thus the budgeting system integrates key managerial functions as it links top managements planning function with the function performed at all the levels in the managerial hierarchy. But the efficiency of the budget as a planning and control device depends upon the activity in which it is being used. A more accurate budget can be develop for those activities where direct relationship between inputs and outputs. The basis for developing budgets and exercising control RELATION BETWEEN BUDGETING AND FORECASTING: Budgeting and forecasting are used interchangeably According to the national association of accountants (USA)forecasting is a process of predicating or estimating a future happening, Forecasting is an essential part of the budgeting process. Forecasting is estimating future events and their effects on the budget. Forecasting comes to an end after mere estimating. Budgeting is a process of preparing budgets and further control aspects are involved in its procedure.

ESSENTIALS OF BUDGET: It is prepared in advance based on a future plan of action.

It relates to a future period and based on objective to be attained.

It is a statement expressed in monetary and for physical units prepared for the implementation of policy formulated by the management.

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ADVANTAGES OF BUDGETING:

Budgeting plays an important role in the effective use of resources and achieving overall organizational goals. Budgeting compels and motivates management to make an early and timely study of its problem. Budgeting provides a valuable means of controlling income and expenditure of a business Budgeting provides a tool through which managerial polices and goals are periodically evaluated, tested and established as a guidelines for the entire organization. Budgeting help in directing capital and others resources into the most profitable channels. Budgeting coordinates and correlates all business activates. The use of budgeting in an organization develops an attitude of Cost Consciousness, stimulates the effective use of resources, and creates an environment of profit-mindedness throughout the organization. The uppermost point is that budgets provide a discipline that brings planning the fore front as a key managerial responsibility.
Budgeting encourage productive competition.

to

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CLASSIFICATION OF BUDGETS:

A. According to time: Long term budgets: A budget is designed for a period of 5 to 10yrs. Short term budgets: A budget is a generally prepared for a period of Not exceeding 5 years Current Budgets: The budgeted is prepared for a month or a quarter.

B. According to flexibility Fixed budget: A budget prepared on the basis of fixed or a standard level of activity. It does not change with respect to level of activity. Flexible budget: A budget is prepared depend upon the level of theActivity.

OPERATING AND FUNCTIONAL BUDGETS:

1) Sales budget: The most important budget, which all other budgets are contingent upon, is the sales budget. All budgets, such as production budget, selling & distribution budget & other all affected by the sales budgeted & are depended upon the revenue derived from sales. Forecasting sales: The three main factors that should be considered by management in forecasting sales. 1) Information concerning past performance. 2) Information about present condition with in the individual company & in each sales territory. 3) Data concerning the industry & generally business.

2) Production budget: A production budget is stated in physical units. Essentially the production budget is the sales budget adjusted for inventory changes as follows. Units produced= Budgeted Sales+ (Desired Closing Inventory of Finished GoodsBeginning Inventory of Finished Goods.)

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3) Production cost budget: A production cost budgeted summaries the materials budget, labor budget, the factory budget, and may be expressed and analyzed by departments and or products. It is also known as manufacturing budget.

4) Direct material budget: This budget specifies the cost if direct materials used and the Cost of the direct materials purchased. Use of direct material budget 1. It helps the purchasing departments to prepare a schedule to ensure

Delivery of material when needed.

2.

It helps in fixing minimum and maximum levels of inventories in stores department.

5. Direct labor budget: The labor budget estimates the labor, adequate in number and grades, to enable the production budget to be achieved. It is generally preferable to prepare a separate direct labor budget and to include indirect labor in the factory overhead budget.

6. Factory overhead budget: This budget is prepared on the basis of chart of accounts which reflects different expenses accounts & which properly classified expenses accounts and details the cost centers or departments factory overhead budgeted where in overhead costs have been classified in to fixed and variable components.

i. Inventory budget: An inventory budget can be prepared to find out the values of direct materials & finished goods inventory a. Selling expenses budget: It is also known as the marketing expenses budget. The selling cost budget is made up of a number of cost items, some of which are fixed and some variable. Fixed expenses are salaries and depreciation; the principal variable expenses are commission, travel advertising and bad debts.
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b. Administrative expenses budget The Administrative expenses budget covers the administrative costs for non-

manufacturing business activates. The administrative expenses budgets contains expenses like directors remunerations, legal charges, audit fees, salaries, rent office expenses, interest, property tax, put etc.

BUDGETED INCOME STATEMENT A budgeted income statement summaries all the individual Budgets i.e. sales budgeted, cost of the goods sold budget, selling budget, and administrative expenses budget. This budget determines income before taxes (If the tax rate is available, net income after taxes can also be computed).A system of budgetary control installation in an organization is very much beneficial which may be result in proper planning & control of activities. It ultimately results in minimizing costs and maximizing profits. If the company wants to prepare the budgets for future period of time, it is very much essential that company have to consider the past performance. Thus the past performance is treated as vital basis for the future period. Suppose in case of past performance is not available than the company has to follow the following process.

A. DETERMINATION OF THE OBJECTIVES BY WHICH COMPANY CAN CONTROL THE BUDGET: The installation of budgetary control system needs to have proper objective i.e. for what purposes it has been installed. The objectivesby which company can control the budget are as follows Minimizing costs or maximizing profits. Co-ordination of activities of different departments. Controlling the management functions.

B. ORGANIZATION FOR BUDGETING: Under this process the authorities and responsibilities of each executive are clearly stated. i.e. delegation of work means dividing the work between departmental heads.

C. BUDGET MANUAL: The budget manual is a written document, which specifies the objective of the budgeting organization & procedures.
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SOME IMPORTANT MATTERS COVERED IN A BUDGET MANUAL A statement related to objectives of the organization & how they can be achieved through budgetary control. Reports, statements, forms & other records to be maintained. Timetables for all stages of budgeting. A statement related to functions and responsibilities of each executive. There should be proper classification of accounts, which are lost, revenues and other financial amounts are to be classified with their respective nature.

D. REPONSIBILITY FOR BUDGETING:

1. Budget controller: The chief executive is ultimately responsible for the budget program and past of work designated as budget controller. The budget controller should have knowledge of technical skill of the business and report to chief executive.

2. Budget committee: Budget committees are framed for true delegation of authority and responsibilities. The work should be divided under different heads i.e. Sales, production, and finance etc. The duty of budget committee to submit, discuss and finally approve of the budgeted big figures.

E. FIXATION OF THE BUDGETED PERIOD: Budgeted period: The period for which a budget is prepared & employed.

The budget period depend upon: The nature of the business. The control techniques.

F. BUDGETED PROCEDURE: The procedure followed while designing and operating a budgetary control system depends upon the nature of the business.

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THE PROCEDURE AS FOLLOWS: Determination of key factor: Key factor is that factor the extent of whose influence must first be assessed in order to ensure that functioned budgets are reasonably capable of fulfillment. Ex: Sales, production, purchases, cash etc. Key factor must be identified & diagnosed. Budget are meaning & unless key factor identified. Making of forecasts: Forecast is nothing but estimation of probabilities for a given period. Forecasts are made regarding sales, production cost and financial requirements of the business. Consideration of alternative combinations of forecasts: Alternative combination of forecasts is considered for efficient of overall plan with the motive to maximum profits. Preparation of budgets: After finalization of forecasts the budgets will be prepared.

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LITERATURE REVIEW

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REVIEW OF LITERATURE:

Carolyn M. Callahan, Doris M. Cook Professor, Tammy R. Way mire (2007) examined that every company prepares the budget after completion of a year whether it is public company or any private company as they want to know that how much money is required for a future period. The main aim of conducting this study is to know the researchers how important will be the budgeting for both public and private companies whether it plays any important part while earning profit in a given time of period or not. It was found that the companies that are their in England gives important to their budget as these budgets helps many companies in England to overcome from the period of recession by carefully examined and studying the budget every year.

Ishola Rufus Akintoye (2008) mentioned that various types of budget are their which helps the SMEs company to prepare and plan the budget and can help their companies in knowing the total expenditure that will be spent during the given period of time.. The study then tries to examine whether established relationship between budgeting and performance is confirmed by the actual budgetary practice of SMEs. The following is a list of the objectives of this study: To explore the theoretical impact of budgeting on performance in small and Medium enterprises. To define and determine how to measure performance in SMEs after preparing the budget To understand how budgeting affects on the performance in SMEs companies

In this research more emphasis was given on the SMEs companies that how much importance does the budget plays for this companies when these companies are preparing their budget. The researcher has given emphasis more on affect of budget while preparing it for the SMEs.

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K.Joshteal (2003) examines budgeting planning, control, and performance evaluation practices in a developing country. He conducts a questionnaire survey of 54 medium- and large-sized firms, including both the listed and non-listed firms located in Bahrain. His conclusion of research was that most of the firms prepare long-range plans and operating budgets, and use budget variances to measure a managers performance, for timely recognition of problems, and to improve the next periods budget. His motive was to recognize that whether the companies prepare budget timely or not and on what parameters they take while preparing the budget.

Ezzam & Hart (1987) conducted a study concerning the budgeting practice in Ernest Chemist and identify the perception of the budgeting experts while assessing their views towards the current status of the company. The main aim of this research is to assess whether the current budgeting practice used in Ernest Chemist are the best possible for the company`s success. During this research process questionnaires were sent to a staff member who deals budgeting to seek his views to know what are the problems and concerns regarding budgeting and budgetary control in the organization. This research comes up with some findings and provides insightful recommendation on budgeting and budgetary control in relation to development of Ernest Chemist. The research helps the researcher to know that the budgeting is very important for the Ernest chemist company as it helps them in achieving the success and also helps them in earning a good profit.

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Oyo State, Nigeria, West Africa (2008) examined how budget and budgetary control can impact on the performance of the selected food and beverages companies in Nigeria, as considered in this study; he had taken the sample of the entire population of the firms in the Nigerian Manufacturing Industry. He reviewed the performance of the Nigeria manufacturing industry in previous and recent times. He found out that the performance of this industry is dependent on budgeting and the cost of the items of foods and beverages is affected by it. In the findings, he advise managers and business operators to pay more attention to their budgetary control systems, for those without an existing budgetary control system, they should put one in place, and those with a dummy or passive budgetary control system, it is time they re-established a result-oriented budgetary control system as it goes a long way in repositioning the manufacturing industry from its creeping performance level to an improved high capacity utilization point of the customer.

Horngren Forster and Datan (1997) examined budget as a quantitative expression for period of time designed for future plan of action by management. A budget can cover both financial and non-financial aspect of these plans and act as a blue print for the company to follow in the upcoming period. Thus a budget is also an itemized estimate of operating result of an enterprise for a future time period. He founded that budgeting control is very important for most of the organization as it will help them in estimating the future cost that will be required to collect in present time.

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OBJECTIVES OF THE STUDY

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OBJECTIVES OF THE STUDY The project on budgeting control system has been undertaken while keeping the following objectives in consideration:

To learn and understand the budget forecast, activity planning of the company

To analyze variance of actual performance of the company with the target set

To highlight the key areas where action needs to be taken by the company

To learn preparation of budget, monitoring and controlling of budget

To Forecast the future and plan to avoid losses but more positively to maximize the profits

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY Research is a structured enquiry that utilizes acceptable scientific methodology to solve problems and create new knowledge that is generallyapplicable. The system of collecting data for research is known as research methodology.

Research Design

: Exploratory research

Data Collection Method

: Secondary Data Collection Method and Primary Data

Exploratory Research: Exploratory research is undertaken to gain background information about the general nature of the problem. It is usually conducted when researcher doesnt know much about the problem or situation SECONDARY DATA Secondary data is data collected by someone other than the user. It is the data which is readily available from other sources which can be relied upon.Secondary data is information gathered for purposes other than the completion of a research project. A variety of secondary information sources is available to the researcher gathering data on an industry, potential product applications and the market place. Secondary data is also used to gain initial insight into the research problem. SECONDARY SOURCE This type means secondary datas are collected from Office records of ICAR Files & manual. Annual Reports of ICAR

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PRIMARY DATA
Primary data is a type of information that is obtained directly from first-hand sources by means of surveys, observation or experimentation. It is data that has not been previously published and is derived from a new or original research study and collected at the source such as in marketing.

PRIMARY SOURCE Employees of a company survey research, and experiments

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DATA ANALYSIS AND INTERPETATION

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COMPARISION OF PREVIOUS BUDGETED FIGURES WITH SUBSEQUENT YEAR

RECEIPTS
20102011 At Rs. Sl.No Particular In Lakhs Total Cost value 1 Agriculture Sales Sale of By 2 3 4 Products Dividend Interest on Loans 9487.50 1985.40 7187.50 7189.50 Earned by the company Actual Income 2011-2012 At Rs. In Lakhs Total Cost value Actual IncomeEarned by the company

20122013 At Rs. In Lakhs Total cost value Actual Income Earned by the company

6440.00

1593.86

1053.50

57.37

1046.36

679.13

909.36

2672.92

7.55 14.40

7550.46 1285.63

7.55 2.00

360.50 1003.17

3.60 3.02

1371.05 5619.10

SOURCE: ICAR financial management system manual book 2010-2012

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PAYMENTS

2010-11 Sl.No Particulars At Rs. In Lakhs

Actual exp's At Rs.in Lakhs

2011-12 At Rs. In Lakhs

Actual Exp's At Rs.in Lakhs

2012-13 At Rs. In Lakhs

Actual Exp's At Rs. In Lakhs

1 2 3 4 5 6

Agriculture product purchased Reconstruction expenses Vehicles management Interest on loan Salary to staff Auditors fees

7250.00 2.00 8.00 1800.00 264.00 2.00

6162.81 79.28 114275.50 756040.98 48219.82 1874.94

5230.00 3.00 8.00 1800.00 264.00 2.50

5230.00 3.00 80.00 18000.00 18000.00 2.50

4400.00 3.00 12.00 1600.00 338.00 3.00

5616.18 15.13 108,00 8268.57 70.49 2.79

SOURCE: ICAR budget implementation journal 2010-2012

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2) COMPARISION OF PREVIOUS BUDGETED FIGURES WITH SUBSEQUENT

YEAR
RECEIPTS
2009-2010 At Rs. In Sl.No 1 2 3 4 5 Particulars Agriculture Sales Sale of By Products Dividend Interest on Loans Loss TOTAL Lakhs 6160.00 877.21 10.00 3.00 1370.89 8421.10 2010-2011 At Rs. In Lakhs 9487.50 1053.50 7.55 1,44 1007.51 11557.50 2011-2012 At Rs.in Lakhs 7187.50 1046.36 7.55 2.00 ------8243.41 2012-2013 At Rs. In Lakhs 6440.00 909.36 3.60 3.02 ------7355.98

INTREPRETATION

Agriculture product sales decreased by 14.00% in the year 2012-2013 compared to 2011-2012. Sale of by product decreased by 20.09% in the year 2012-2013 compared to 20112012 Interest on loans increased by 52.00% in the year 2012-2013 compared to 20112012

SOURCE: ICAR financial management system manual book 2011- 2013

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PAYMENTS
2010-2011 2009-2010 Amt.Rs. In Lakhs 7250.00 2.00 8.00 1800.00 264.00 2.00 8.00 10.00 300.00 4.00 1.75 1831.00 5.00 4.00 1904.00 2011-2012 Amt. Rs.IN Lakhs 5230.00 3.00 8.0 1800.00 264.00 2.50 20.00 10.00 300.00 4.00 4.00 442.50 155.41 8421.10 11557.50 8243.41 2012-2013 Amt.Rs. in Lakhs 4400.00 3.00 12.00 1600.00 338.00 3.0 20.00 10.00 300.00 3.0 1.50 418.50 246.98 7355.98

Particulars
Agriculture product purchased Reconstruction expenses Vehicles management Interest on loan Salary to staff Auditors fees Rent and taxes Insurance Repairs and maintenance of machinery Telegram and telephone charges Bank commission Other expenses Net Profit carry forward to C/B TOTAL

Amt.Rs. In Lakhs 4900.00 10.10 6.00 1400.00 250.00 3.00 6.00 10.00

SOURCE: ICAR annual account budget report 2010-2012

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INTERPRETATION Agriculture product purchased increased by 47.95% in the year 2010-2011 compared to 2009-2010 Reconstruction expenses decreased by 80.20% in the year 2011-2012 compared to 20092010. Auditor fees decreased by 33.33% in the year 2012-2013

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B)2012-2013 Receipts
2011-2012 At in Rs. In Sl.No Particulars Lakhs 2012-2013 Increase At Rs. In Lakhs % % Decrease

Agriculture product Sales

9487.50

7187.0

--------

24.24%

Sale of By Products

1053.50

1046.36

--------

0.68%

Dividend

7.55

7.55

--------

------

Interest On Loans

1.44

2.00

39.8%

------

Loss TOTAL

1007.51 11557.50

-----8243.41

------------

-----28.67%

SOURCE: ICAR financial management manual book 2010-2012

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INTREPRETATION

Agriculture purchased sale decreased by 24.24% in the year 2012-2013 compared to 2011-2012 Sale of by products decreased by 0.68% in the year 2012-2013 compared to 2011-2012 Interest on loan increased by 39.8% in the year 2012-2013 compared to 2011-2012

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PAYMENT:2012-2013
2011-2012 At Rs. In 2012-2013 At Rs. In Lakhs 5230.00 3.00 8.00 1800.00 264.00 2.50 20.00 10.00 300.00 4.00 4.00 442.50 155.41 11557.50 8243.41 Increase % -----50% ----------------25% 60% -------------------------------Decrease % 27.87% ----------------------------------------20% -----77% -----29%

Sl.No
1 2 3 4 5 6 7 8 9 10 11 12 13

Particulars
Agriculture product purchased Reconstruction expenses Vehicles management Interest on loan Salary to staff Auditors fees Rent and taxes Insurance Repairs and maintenance of machinery Telegram and telephone charges Bank commission Other expenses Net Profit carry forward to C/B TOTAL

Lakhs 7250.00 2.00 8.00 1800.00 264.00 2.00 8.00 10.00 300.00 5.00 4.00 1904.00

SOURCE: ICAR annual account budget report 2010-2012

INTERPRETATION

Agriculture products purchased decreased by 27.87% in the year 2012-2013 compared to 2011-2012 Reconstruction expenses increased by 50% in the year 2012-2013 compared to 2011-212 Auditor fees increased by 25% in the year 2012-2013 compared to 2011-2012
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C)2011-2012 Receipts
2010-2011 Sl.No Particulars At Rs. In Lakhs 2011-2012 At Rs. In Lakhs Increase % Decrease %

Sugar Sales

7187.00

6440.00

-----

10.40%

Sale of By Products 2

1046.36

909.36

------

13.10%

Dividend

7.55

3.60

------

52.32%

Interest On Loans

2.00

3.02

33.78%

-----

Loss

------

-----

TOTAL

8243.41

735598000

------

10.77%

SOURCE: ICAR financial management system manual

INTREPRETATION

Sugar sales decreased by 10.40% in the year 2011-2012 compared to 2010-2011 Sales of by product decrease by 13.10% in the 2011-2012 compared to 2010-2011 Interest on loan increased by 33.78% in the 2011-2012 compared to 2010-2011 Dividend decreased by 52.32% in the year 2011-2012 compared tp 2010-2011
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PAYMENTS:-2011-2012
2010-2011 Sl.No Particulars At Rs. In Lakhs 2011-2012 At Rs. In Lakhs 4400.00 3.00 12.00 1600.00 338.00 3.00 20.00 10.50 Increase % Decrease In %

1 2 3 4 5 6 7 8

Sugarcane purchased Reconstruction expenses Vehicles management Interest on loan Salary to staff Auditors fees Rent and taxes Insurance Repairs and maintenance of

5230.00 3.00 8.00 1800.00 264.00 2.50 20.50 10.50

--------50% -----22% 17% -----------

16% ---------11.11% --------2.43% -----

9 10 11 12 13

machinery Telegram and telephone charges Bank commission Other expenses Net Profit carry forward to C/B TOTAL

300.50 4.50 4.00 442.50 155.41 8243.41

300.00 3.00 1.50 418.50 246.98 7355.98

-------------------58.92% ------

0.16% 33.33% 63% 5.00% ---11%

SOURCE: ICAR BUDGET BOOK 2010-2012

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INTREPRETATION

Sugarcane consumption is decreased by 16%in the year 2011-2012 compared to 20102011 Vehicle Management costs are increased by 50% in the year 2011-2012 compared to 2010-2011 Bank commission is decreased by 63% in the year 2011-2012 compared to 2010-2011 Repairs and maintenance of machinery is decreased by 0.16% in the year 2011-2012 compared to 2010-2011

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FINDINGS

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FINDINGS
Some of the major findings of this study are as follows: Agriculture sales increased by 54.00% in the year 20012-2013 compared to 2011-2012 Interest on loans decreased by 39.8% in the year 2012-2013 compared to 2011-2012 Agriculture products purchased increased by 47.95% in the year 2012-2013 compared to 2011 2012 In ICAR both monthly operation plan and annual operation plan are prepared ascertaining the budgeting performance with actual performance Budget is very important for ICAR as it helps them in defining a clear vision which helps them in giving better facility to the farmers ICAR was earning more profit as compare to the last year profit.

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CONCLUSION

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CONCLUSION
From the study it can be concluded that to know that budgetary control is treated as one of the better techniques for minimizing cost and maximizing profit in ICAR. Budgetary control technique plays important role in the profit making or smooth running of the company.

It coordinates all the departments like Finance, Marketing, Production in the company. Budgetary control acts as safety for an organization because it helps to identify business risk necessary steps can be taken to avoid the risk.

Budgetary control techniques help to know how the available monetary resources can be utilized effectively. This technique focus on efficiency in the allocation of resources in particular time. As the finance department is the soul of any organization. Budgetary control helps the organization by making finance department effective.

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RECOMMENDATIONS

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RECOMMENDATIONS
Proper review of monthly and quarterly Budget should be there as it leads to Chance of improvement or modification. Quarter Budget helps industrial concerns to checks its actual performance. After ascertaining the actual performance if any modification requires that can be adjusted in next quarter. ICAR may appoint specialized and experienced finance manager to improve its finance performance. The company should have proper co-ordination between finance and marketing department. The company should have close watch on the market which helps to make new strategies. ICAR should focus equally to its all departments that is finance, marketing, human resource etc. so that all departments can help ICAR in earning more profit and helps them in providing better facility to the customers.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

BOOKS:
Khan M.Y and Jain P.K,(2012), Financial management (3rd edition), New Delhi, Tata McGraw hill Pg no 205-212 I.M Pandey,(2012), Financial management (10th edition) , New Delhi, Vikas Publishing house, Pg no 157-165

JOURNALS: Oyo State, Nigeria, West Africa (2008), Budgeting control system of food and beverages companies, Journal of food companies research management, 102 (1), 115-121 Ezzam & Hart (1987), Evaluation of the budgeting practice in Ernest Chemist company, International Journal of Business Research and Management, 5(4), 103-112 Robinson M (2009), Application of the Budgeting in the various companies, Journal of Financial budget , 6(3), 93-99 Ishola Rufus Akintoye (2008),Importance of budget for SMEs during a fiscalyear,15(4), 205-210

MAGAZINES:
Economic Outlook Business Today

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 WEBSITES: http://www.icar.org.in/files/BudgetCircular2012-13-Non-Plan-23082013.pdf

http://www.icar.org.in/files/BUDGET-BOOK-FINAL-2012-13.pdf http://www.fao.org/docrep/w4343e/w4343e05.htm http://publications.theseus.fi/bitstream/handle/10024/36754/THesis%20on%20budgeting%20and% 20budgetary%20control%205%20PDF.pdf?sequence=1 http://www.wisegeek.com/what-is-budgetary-control.htm

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