1 INTRODUCTION
Of all business activities, budgeting is one of the most important and, therefore,
requires detailed attention. Budgets can take many forms and serve many functions. Budgets
can provide the basis for detailed sales targets, staffing plans, inventory production, cash
investment/borrowing, capital expenditures (for plant assets, etc.), and on and on. Budgets
provide benchmarks against which to compare actual results and develop corrective
measures. Budgets give managers "preapproval" for execution of spending plans. Budgets
allow managers to provide forward looking guidance to investors and creditors. Budgets are
necessary to convince banks and other lenders to extend credit.
Budgetary control is the process of ascertaining several budgeted figures for the future
of a business enterprise and then making comparison of these budgeted figures with the
actual results for finding out discrepancies, if any. The comparison of budgeted and actual
figures will allow the management to take curative actions at a proper time.
Budgetary control can be defined as, A means of achieving the financial control of
an entity whereby the actual results for a defined period of time are compared with the
budgeted results, any differences (or variances) being noted, and some corrective action taken
to bring the actual activities back into line with the budgeted ones if such variances need to
be dealt with.
Planning has become the primary function of management these days. Most of the
planning relates to individual situations and individual proposals. However, this has to be
supplemented and reinforced by overall periodic planning followed by continuous
comparison of the actual performance with the planned performance. Budgets are nothing but
expressions, largely in financial terms of managements plan for operating and financing the
enterprise during specific periods of time.
Budgets are the most important tool of profit planning and control. They also act as an
instrument of co-ordination.
Definition:
According to CIMA, official Terminology, A budget is a financial and quantitative
statement prepared prior to a defined period, of time, of the policy to be pursed during that
period for the purpose of attaining a given objective.
According to Crown and Howard, A budget is a predetermined Statement of
management policy during a given period, which provided a standard for comparison with the
result actually achieved.
Definition:
According to Brown and Howard a budgetary control is a system if controlling costs,
which includes the preparation of budgets, coordination the department and establishing the
responsibilities, comparing actual performance with the budgeted and acting upon result to
achieve maximum profitability.
According to Weldon he criticizes budgetary control as planning in advance of the
various function of a business so that the business as whole is controlled.
Budget, Budgeting & Budgetary Control:A budget is a blue print of plan expressed in quantitative terms.
Budgeting is
technique for formulating budgetary control, on the hand; refer to the principles, procedures
2
Definition:
According to Rowland and William have differentiated the three terms as;
Budgets are the individual objective of a department, etc., whereas Budgetary many be said
to be the act of building budgets. Budgetary control embraces all and in addition includes the
science the budgets to affect an overall management tool for the business planning control.
importance when compared to the rest of the concepts of management studies, because of its
nature, scope application acceptability standards.
The situation created an interest for me to study and analysis the financial aspects of
this VCHD. Through budget and budgetary control of an organization is moving so as to
decide and compliment the future course of action to achieve the objectives of the
organization. The firm investment and financing decisions unavoidable and continuous. In
order to make them rationally, the firm must have a goal. It is generally agreed in theory that
the financial goal of the firm should be the maximization of owners economic welfare could
be maximized be maximizing the shareholders wealth maximization is theoretically logical
and operationally feasible normative goal for guiding the financial decision making.
Budgetary control is a strong tool of business to maximize profits. The management is
therefore always trying to focus on the proper planning. Effective coordination and control in
order to maximize profits. There are various managerial tools and techniques useful for the
management to plan and control business operations. Budget is also used for the management
to plan and control business operations and it is widely used as a standard device of planning
and control.
Budget provide as a valuable and aid to management through planning , coordination
and control. It is a tool which measures the managerial performance of an organization.
1.4 OBJECTIVES
To ensure planning for future by setting up various budgets. The requirement and
expected performance of the enterprise are anticipated.
To create definite ideas in terms of number about the long term and short term
desired aims and objectives of the enterprise.
To perform integration and coordination among the different departments and
activities.
To motivate and related departments and persons for attaining the desired ends
and goals.
To operate various cost centers and departments with efficiency and economy.
Elimination of wastes and increase in profitability.
1.5 METHODOLOGY
Methodology is a systematic procedure of collecting information in order to analyze
and verify a phenomenon. The collection of information is done by two principle sources:
1. Primary Data
2. Secondary Data
Primary Data:
It is the information collected directly without any references. In this study it is to be
gathered through interviews with concerned officers and staff, either individually or
collectively. Some of the information were verified and supplemented through personal
observation. The data collection includes conducting personal interviews with the concerned
officers of officers of finance department of Visakhapatnam Dock Labor Board.
Secondary Data:
It was collected from already published sources such as pamphlets of annual reports,
returns and internal records. The data collection includes collection of required data from
annul records of Visakhapatnam Dock Labor Board and reference from text books and
journals relating of financial management.
1.6 LIMITATIONS
The budgetary control system is however not free most short comings which are a
follows.
This system proves useless in those firms where policies and processes,
techniques, etc., are frequently changing since it does not take into account such
charges.
It is very costly in case of small firms and serves no purpose in the event of
abnormal situation, such as strikes, lockouts, etc.
There are many factors over which the management has no control but the
budgetary control depends on them. In that case, if it is prepared, it may be
inaccurate and fails to serve the purposes for which it is meant.
One of the most limiting factors for a thorough and complete study of the subject
has been the insufficient period of study.
Elaborate study was not possible due to lack of financial resources.
Executives are not available because they were involved in various activities in
dealing with their market and stores.
facilities for the ships and landing facilities for the cargo. A part from this port provides
cranes, ware houses, labour for cargo handling transport.
India is situated at the head of the Indian Ocean with a coast-line of about 3535 miles,
and occupies an important place in the maritime world. There are about 232 ports in India, of
which 12 are major ports, 14 intermediary ports, 132 minor ports and 76 sub-ports. As a
country having a coastal line of about 6000 kms and major ports and minor ports are situated
along the coastal line and at sea islands.
(Gujarat)
Mumbai port
(Maharashtra)
(Orissa)
(Mumbai)
Cochin port
(Kerala)
Chennai port
(Tamil Nadu)
Kolkata port
(West Bengal)
Tuticorn port
(Tamil Nadu)
Visakhapatnam port
(Andhra Pradesh)
Haldia port
(West Bengal)
Mormugoa port
(Goa)
Mangalore port
(Karnataka)
In these twelve ports, six ports are situated on East coast and are as follows:
Chennai port
(Tamil Nadu)
(Orissa)
Kolkata port
(West Bengal)
Tuticorn port
(Tamil Nadu)
Visakhapatnam port
(Andhra Pradesh)
Haldia port
(West Bengal)
(Gujarat)
Mumbai port
(Maharashtra)
(Mumbai)
Mormugoa port
(Goa)
Mangalore port
(Karnataka)
9
Cochin port
(Kerala)
ISO9001, ISO14001&OHSAS18001
JAMMU&
KASHMIR
HIMACHAL
PUNJAB
ARUNACHAL
PRADESH
LUCKNOW
HARYANA
ASSAM
SIKKIM
UTTARPRADESH
RAJASTHAN
NAGALAND
MEGHALAYA
BIHAR
Kandla
BENGAL
MADHYAPRADESH
MANIPUR
TRIPURA
MIZORAM
GUJARAT
Kolkata/Haldia
ORISSA
Paradip
JNPT
Mumbai
MAHARASHTRA
ANDHRA
PRADESH
Mormugao
VPT
GOA
NewMangaloreKARNATAKA
Ennore
Koch
i
KERALA
TAMILNADUChennai
Tuticorin
10
Neendakara
Pindhara
Pipavav
Ponnani
Tellicherry
Growth of port
Ports are classified as Major ports, Medium ports and minor ports. The Major Port
Trust Act, 1963 and the Indian Sea Ports Act, 1908, generate the Major ports and the rules
and regulations framed there under.
Each Major port has a Board of Trustees representing various interests connected with
12
the port operations and the shipping industry. The Chairman of each Major Port Trust is
appointed by the Central Government. Besides Chairman, the Port Trust Board consists of
Deputy Chairman, representatives of Customs, Railways, Defense, State Government, Ship
owners, Shippers, etc. All the members of the Board, Chairman and the Deputy Chairman are
part time members.
VISAKHAPATNAM PORT VIEW
Exim park
STP
EQ
WQ 7
OHC
EQ9
BELT CONVEYOR
GC
In n e
-1
-2
L
OI I NG
OR
IP
SL Y S
A
W
Darga
Hill
MO
Ross Hill
CB
Turning
basin
r Harbour Channel
LP
Eastern break-water
EQ 2
Dock
yard
North
Break water
FISHING
HARBOUR
M
PB
Turning
basin
Hindustan
Shipyard
Limited
Visakhapatnam
d
oa
City
R
h
ac
Be
Ar
BELT CONVEYOR
EQ 3
AOB
EQ 1
rn
OR 1
W Q1
s te
WQ 2
We
OR 2
West
ern A
rm
EQ
EQ 4
rth
W Q3
No
FB
A rm
N o rthern
W Q4
EQ
Indian
NAVY
EQ
WQ 5
Sand
Trap
Proposed berths
OS
TT
ak w
bre
n
r
the
Sou
ater
10
Visakhapatnam was an ancient port city, which had trade relations with Middle East
and Rome. Ships were anchored at open roads and loaded with cargo from Visakhapatnam
shore by means of small boats.
Visakhapatnam Port is one of the major ports on the eastern seaboard of Bay of
Bengal at a latitude 170 41N & longitude 83018E. It is situated in between Kolkata &
Chennai Ports. It has acted as a catalyst in the process of Industrialization of its hinterland
along with other ancillary industries. The Port plays a dynamic role in fostering accelerated
development in the region shall contributed significantly to the National Development.
13
NaturalHarbour:
Visakhapatnam is one of the best, natural ports in India and its location provides
protection from cyclones, which strikes the east coast regularly during May/November. The
Dolphins Nose hills which is to the south of the entrance channel, Ross and Durga hill
which are to the north of the entrance channel are land forms which provide tranquil waters
for the port for the outer harbor, to artificial break waters provide necessary conditions for
tranquil waters. This low range of a maximum of 1.82 meters this section of the sea is
advantages for the location of the port.
History:
The origin of Visakhapatnam goes back as far as the 6th Century, when it formed a
port of the famous kingdom of kalinga in 6th century A.D. Kalinga was conquered by the
chalulkyas of Bandai and in the 7th century by eastern chalulkyas, which led to the
establishment of the avenge kingdom under Vishnu Vardhan 1 (615 633 A.D.).
Visakhapatnam, the anglicized from of which is Visakhapatnam is an ancient town.
According to the district manual writers 1989, in the early years of 14th Century Kullotunga
choler of the Andhra Dynasty visited the presented site of Visakhapatnam and was so pleased
with the place that he built a temple dedicated to Issaquah. The sea has since engulfed this
temple.
In 1858 a survey partly stressed the need for a major port between Madras&Calcutta.
A detailed report called Visage the port of central provinces in 1877 made out a strong case
of the establishment of a port. However this proposal was temporarily frozen due to the
advent of the First World War.
It is only in 1914, that the Bengal Nagpur Railway initiated a proposal for a harbor at
Visakhapatnam. Colonel Cart Wright Reid of the British Admiralty initiated a proposal for
the construction of a harbor at the mouth of river meghadrigedda for B.N.Railways, which
was finally adopted in 1922. The construction started in 1927 and the port was open to ocean
going vessels in 1933 with the arrival of passenger ship S. S. Jala durga. The Bengal, Nagpur
Railway was responsible in constructing the port, as it needed a sea outlet for Manganese is
mined in the central provinces. (M. P.).
His Excellency Lord Wellington formally inaugurated the port, the then Viceroy &
Governor General of India on 19th Dec. 1933. The Island breakwater was constructed by
sinking 2 old ships Janis and Wellston which acted as a skeleton around which a rubble
mound was formed. Mr. W. C. Ash & W.B. Rattenbury was the engineer who played
14
prominent role in constructing this beautiful harbor. The port was constructed at a cost of
Rs.378 lakhs and when it was opened it consist of three berths & handled 1.3 lakhs tones of
Traffic.
Visakhapatnam was a minor port; ships were anchored in the open of shore area and
the cargo transported in small muscular boats. The gained the status of a major port in 1963
and it was in February 1964 that the Visakhapatnam port was constituted.
V.P.T Berths
Inner Harbor:
Multipurpose:
14
Oil
Mooring
Fertilizer berth:
--------------------Total:
18
---------------------
Outer Harbor:
LPG Terminal:
ORE:
GCB: (South/North): 2
OSTT:
Multipurpose:
--------------------Total:
8
---------------------
Location:
Visakhapatnam port lies on the Eastern seaboard of India in the state of Andhra
Pradesh, midway between Kolkata and Mumbai rail route. This harbor situated in the mouth
of Meghadri Gedda is natural and is connected to the sea by a narrow channel. It is a wellprotected deep-sea port formed by a turning basin and three arms. The approach to the harbor
is through a channel about 1km. in length.
Latitude 1741 North
Longitude 8318 East
15
With the protection afforded by a high promontory into the sea known as Dolphins
Nose and a low tidal range to a maximum of a 6 feet (1.82m), the location of the port is
ideal. Though the construction of the port is started in 1927, Visakhapatnam port took its
concrete shape in 1933 as a mono-commodity port initially and blossomed shortly into a
multi-commodity port with a variegated cargo profile.
This port is enriched with a naturally protected deep-water basin, most suitable for
deep draft berths. It is located in such a way that it offers protection from the cyclonic storms
which strike the East Coast, by a high promontory into the sea, popularly known as Dolphins
nose hill which is to the south of entrance channel. This port was the first port in the country,
to build an outer port.
Visakhapatnam Port Trust was an ancient port city, which had trade religious with
Middle East and Rome. The construction of harbor at Visakhapatnam was thought after the
transfer of power from East India Company to the crown. In fostering the countries foreign
trade and economic development Visakhapatnam is playing a vital role. Visakhapatnam is a
natural harbor such that surrounded by chain of hills providing safe anchorage to ships.
Notable among the chain of hills are Dolphins nose Ross hill.
16
Objectives of Port:
The main objective the port is to facilitate the import & export cargo on sea through
ships. By this the very benefit that occurs to the nation follows:
a) Securing the required goods for the country.
b) Exporting the surplus cargo from the country.
c) Maintaining the economic balance within the country.
d) Earning foreign exchange to the country.
17
There are 10 departments in Visakhapatnam Port Trust and those departments are
categorized under 2 heads:
Non-Operational Departments
Operational Departments
NON-OPERATIONAL DEPARTMENTS
Administration Department
Finance Department
Personnel Department
Researchs Planning Department
Materials Management Department
Medical Department
OPERATIONAL DEPARTMENTS
Marine Department
Traffic Department
Mechanical Department
Engineering Department
2. Accounts Department: Financial adviser & Chief Accounts Officer head this
Department.
preparation and computation of budgets; inter audit and revenue realization etc.
10. Engineering Department: Chief Engineer heads this Department. The functions
of this department are construction of project works and maintenance of civil works
like building quarters & mainly berths etc.
commercial vessel S.S. JALADURGA of M/s. Scindia Steam Navigation Co., entered the
Port on the 7th October 1933 providing initially a sea outlet for ManganeseOre.
The Saga of the construction of the Harbour particularly forming of entrance channel, sinking
of two old ships `JANUS and `WELLESDONE to form breakwater instead of building a
wall in the sea were all feats in engineering and are subjects of discussion even today. Mr.
W.C. Ash and Mr. D.B. Rattenbury were the Engineers who played prominent role in
constructing this beautiful Harbour. His Excellency Lord Wellingdon, the then Viceroy and
Governor General of India formally inaugurated the port on 19th Dec. 1933.
Nestling among a chain of hills, the VizagHarbour is really one of the wonders of the
nature, as if it has been intended by God that a man in this area must benefit by a very safe
anchorage to ships. The entrance channel is protected by, two massive rock hills, namely
Dolphins Nose on the Southern side and Ross Hill on the Northern side and these two hills
shelter a bay which possessed sufficient depth for the ships which were engaged in sea trade
upto 1950s. The high promontory of the Dolphins Nose hill into the sea provides protection
from cyclones, which strike the East Coast. The low tidal range of a maximum of 1.82
meters is also advantageous for the location of the Port. The existence of this natural Harbour
has transformed the sleepy fisherman village once called as `Vizag into one of the fastest
growing industrial cities of the world.
The Port has striking similarities with DurbanPort of Africa in the sense that the later
is also surrounded by a hill on the South Side. It is due to this reason that Engineer Mr. W.C.
Ash studied DurbanPort before developing this Port. Mr. Chalapathi Rao, one of the famous
writers described the Docks and Harbour works of this Port as `Picassos cubist pictures. The
port Administration which was under Bengal-Nagpur Railway in 1933 passed through
different departments and Ministries of the Government. of India till its transfer to the Port
Trust in Feb. 1964 under the Major Port Trusts Act, 1963 as shown below:
1926-35
RAILWAY BOARD
1935-37
COMMERCIAL DEPT.
1937-42
COMMUNICATIONS DEPT
1042-44
1944-46
1946-56
1956-64
MINISTRY OF TRANSPORT
1964-FEB
When opened for sea going vessels in 1933, the port had only three berths with a cargo
handling capacity of 0.3 million tonnes. The chronological events of developments are
described in the succeeding paras.
1951-61: During this period, three jetty berths and one quay berth
(EQ.4) were constructed. One transit shed (T-5)
(T
was built and T-1
was upgraded.
To enable M/s. Caltex (renamed as M/s. Hindustan Petroleum
Corporation Ltd.) to establish a refinery and to facilitate discharging
crude oil and pumping petroleum products direct to/from the storage
tanks, an oil wharf consisting two oil berths was constructed in 1957.
During 1950s, slings and pallets for cargo loading/unloading were
introduced which were later augmented and replaced by grabs.
Electrical wharf cranes of 3 tonne capacity, fork-lift-trucks
fork
of 1 to 3
tonne capacity and a floating crane of 30 tonne capacity were procured during the 1950s. A
self-propelled
propelled 150 tonne floating crane, Bheema the first of its kind in major ports was
added to the fleet of craft. Facilities for discharge/pumping of mineral oils, through pipel
pipelines,
direct to the storage tanks of the refinery were introduced in 1957.
1961-71: In tune with the deployment of specialized ships for specific cargo and to fulfil the
long term agreement entered by the Government of India for exporting Bailadilla ore to
Japan, two captive berths were added in 1965.
In order to meet the long term ore export commitments to Japan, the system of
loading iron ore by semi-mechanised
mechanised means was dispensed with. A Mechanical ore handling
plant to load iron ore at the rate of 88000 TPH the first of its kind in the Indian Port Sector
and acclaimed as `Gem of Automation was built in 1965.
In response to requirements projected by a private fertilizer factory M/s. Coromandel
Fertilisers Ltd., a captive berth for unloading fertilizers
fertilizers was constructed in the year and leased
out way back in 1967 and thus earned the reputation of the first major port to introduce the
concept
of
privatization.
Mechanised
facilities
for
discharging fertilizer
raw
technological trends in shipping and transportation systems, an outer port was commissioned
in 1976 to accommodate ships of size 150,000 DWT at a cost of about Rs.110 crores, which
stands out as the biggest expansion programme of the Indian Port Sector during the firth five
year plan. The outer port construction gave further fillip to the cargo throughput and in the
succeeding years, the cargo throughput at outer port dominated the founding port (inner
port). The primary objective of the outer port was to provide an outlet for export of iron ore
through deep draft bulk carriers.
1981-91: As a response to the increasing trading of oil by large crude carriers, an off shore
tanker terminal
1985. In conformity with the increasing trading of bulk carriers of 50,000 to 85,000 DWT, a
General-cum-Bulk cargo berth to cater to ships upto 60,000 DWT was commissioned in
1985.
1991-2001:Keeping in view the changing needs of sea transportation system, the old jetties
were converted into a regular quay berth with more apron width in 1992 and 1994 to facilitate
installation of heavier loads. A multi-purpose berth to cater to ships upto 11 mtrs. Draft was
commissioned on 30.7.1995. An exclusive and specialized terminal for discharging LPG
from gas carriers at the outer harbour was constructed in 2001.
2001-2006:
Berths: The first BOT project - Container terminal at outer harbour - commenced its
operation in June, 2003 which was concession to Visakha Container Terminal P Ltd.,- A
Joint venture company owned by Dubai Port International and J.M. Baxi (P) Limited. Two
new berths in the extended Northern arm of InnerHarbour (EQ.8 & EQ.9) were developed on
BOT basis by M/s.Vizag Sea Port Pvt. Ltd., a Joint Venture between Portia Management
Services, U.K. & M/s.Gammon India Ltd., Mumbai and commissioned during 1994 and
1995. One multipurpose berth WQ-7 in the inner harbour was commissioned on 29th July
2005 by Hon able Minister for Shipping , Road Transport and High ways.
Other facilities:One 50 tonne BP tug was commissioned in the year 2000-01. Ten No.s of
15 Tonne Electric Wharf cranes were commissioned in 2001. Mechanised dust suppression
system designed and erected by MECONS was commissioned on 5th June 2002. One rail
mounted stacker of 2700 TPH capacity was commissioned on 28th May, 2003. One No. fire
float of Agni Class-I was commissioned on 2nd September, 2003. Four wharf cranes of 20
Tonne were commissioned in 2004-05. One FRP launch was commissioned on 2nd January,
2005. One dredger built by M/s. Hindustan Shipyard Ltd., was commissioned on 9th Feb.
22
2005. Information Technology was introduced into port operations 1st. April, 2002.
OUR VALUES
Quality and productivity in performance
Concern for safety and environment
Responsive and Transparent administration
User friendly attitude
Teamwork
A learning environment
Innovation
OUR STRENGTH
Tranquil deep water berths to handle cape size and suez max vessals
Efficient port Railway system acclaimed as the best among major ports in the
country and ranked as one of the top ten railway divisions of the country
Economic stevedoring cost
Dedicated fecilities for bulk handling
Harmonious industrial relations
Quality service at optimum cost
Natural positional advantage for trading with countries like Bangaladesh, Myanmar,
South East Asia and far East and West coast of USA and Canada.
BULK
23
SHORE EQUIPMENT
Description
Capacity
Availability in Nos.
10 T
11
15 T
10
20 T
04
47.05 T
02
03 T
10 T
01
12 T
02
42 T
01
1400 HP
12
1430 HP
07
09
24
Intermediate port is one which handles not less than 1500 tonnes of cargo annually
and is important from the view point of passengers traffic defense and customers. Example
Kakinada, a port handling less than 1500 tonnes of cargo is termed as minor.
Example: Machalipatnam, Bheemunipatnam etc.
The major ports are governed by the major port trust act 1963 and the Indian ports act,
1908 and the rules and regulations framed under. Each major port has a board of trustees
representing various interests connected with the port operations and the shipping industry.
The chairman of each port trust is appointed by the central government. Besides, chairman,
there are representatives of customers, railways, defense, state owner ships etc.
All the members of the board other than the chairman and deputy chairman are part
time members.
development of major ports. Port mainly derives their revenues from cargo handled in their
port areas charges on the ships visiting their areas and other related charges.
26
2.2COMPANY PROFILE
CARGO HANDLING DIVISON
(Erstwhile Visakhapatnam Dock Labour Board)
INTRODUCTION:
India is situated at the head of the Indian Ocean with a coast-line of about 3535 miles,
and occupies an important place in the maritime world. There are about 232 ports in India, of
which 12 are major ports, 14 intermediary ports, 132 minor ports and 76 sub-ports,
Visakhapatnam Port is one of the 12 major Ports in India. The port lies on the eastern
coast of India and midway on the rail route between Kolkata to north-east and Chennai to the
south. It is situated at the mount of river Magadri Gedda, and adjoining the Dolphin
Nose a Hill nearby projecting into the Bay of Bengal. This Port has been so laid out as to
have the advantage of natural protection offered by this Hill to the ships carrying cargoes
from cyclones which are usual on this coast during the North east monsoon. And, another
favorable and important factor to this Port is a low tidal range. Thus, the VisakhapatnamPort
is considered as a natural port, attracting the many cargo ships for shipments etc.
VisakhapatnamPort started functioning during the year 1933 and later formed into a
Trust under Major Port Trusts Act.
handling autonomous bodies, viz., Visakhapatnam Port Trust & Visakhapatnam Dock Labour
Board (VDLB). The Visakhapatnam Dock Labour Board was established during 1961 under
Dock Workers (Regulation of Employment) Act 1948.
CONSTITUTION OF VDLB:
When the Dock Labour Board was not formed, the workers were supplied by the
middlemen to the stevedores as and when required. There was no proper basis of recruiting
workers to work in major parts. Their earnings depended upon the mercy of the intermediary
agencies. There was no proper basis for determining the wage rate. The demand for
the
dock workers depended upon the arrival and departure of vessels, the size of cargo and
seasonal cyclical fluctuations.
No regularity of employment and earnings coupled with the ignorance of workers,
made the intermediate agencies to exploit the Labour. They were paid less and made to
perform more work.
providing fair earnings to the Labour working in Visakhapatnam port, Visakhapatnam Dock
Labour Worker (Regulation of Employment Scheme) was formed on 30-11-1959 by the
Government of India.
27
The Dock Labour Board maintains a list of employers who carry-out the work of
recruiting Dockworkers. The employers have to pay some amount towards the deposit,
depending up on the volume of workers carried by them. There are 45 employers under
registered scheme, and 66 employers under unregistered scheme 31-12-2001.
The Dock Labour Board is directly under the administrative control of the
Government of India. New Delhi. The Visakhapatnam Dock Labour Board is tripartite
body, which has representatives from Government side, representatives from employers
(Stevedores) and representatives from trade unions. Under the Dock Workers Regulation
Employment Act of 1959, the registered scheme was established and under the Dock
Workers Regulation Act of 1961, the unregistered scheme was established.
The Dock Labour Board collects levy from the employers for supplying the Human
Resources to them. The levy rate is usually fixed by the government of India out of this levy
the Dock Labour Board pays the wages to the workers and carries out the welfare
programmers for the dock workers. The levy rages are subject to change according to
Government decisions.
The main function of the board is to supply man-power to the employers of both the
schemes for cargo handling operations. Basically, it is labor intensive organization. About,
1500 employees / workers are working in the Board. There is a Board which comprises 12
members having equal representation from Central Government, the Dock workers and the
employers of shipping companies. The Chairman of the Board is the Chief Executive of the
Board. Deputy Chairman is whole time officer of the Board, who looks after the day to day
administration, and the Board is under the control of Ministry of shipping, Government of
India, New Delhi.
BOARD MEMBERS:
Four Members representing central government
Four members representing dock workers
Four members representing employers of dock workers / shipping companies.
The representative from the government is appointed by the government, and an I.A.S
officer is appointed as the Chairman.
BACKGROUND:
Before the formation of Dock Labour Boards, in all the major ports, the workers were
directly under the contract of the middlemen, who supplied the workers to stevedores as per
28
the needs. There was neither regularity in employment nor in the earnings of the Dock
workers. The demand for the workers was mostly dependent on the highly fluctuating traffic
of the cargo vessels. The exploitation of the workers was at the maximum level in those
days. The Royal Commission on labour which was constituted by the Government, reviewing
the deplorable service conditions of Dock labour, stressed in its report submitted to the
Government of India in 1931, the need to ensure the regularity of employment for Dock
workers and also the necessity to ensure adequate number of Dock workers available to load
and unload the vessels.
It was also recommended to ensure that the distribution of work depends on a system
rather than the wish of the middlemen, so that the workers get equal share. Basing on the
recommendations of the royal commission on labour, the Government of India has taken the
legislative action and passed the Dock workers (regulation of employment) Act of 1948, to
regularize the employment for the Dock workers and to improve the service condition of the
Dock workers.
In view of the recommendation of Royal Commission on a draft scheme was prepared
in 1939, but could not take off due to the employment act which was enacted by the
Government of India in 1948. It was based on the Dock workers (regulation of employment)
Act,1946, which clearly states that the Dock workers is a person employed in or in vicinity of
any Government worker, in connection with loading, unloading movements or storage of
cargoes. Cargoes have been defined as anything carried or to be carried in a ship or in other
vessels. The power conferred by subsection A (2) of section 5 of the Dock Workers Act of
1948 which was exercised by the Central Government and Visakhapatnam dock Labour
Board came in to effect from 5th June 1961.
One such measure is making provision for the merging DLBs with the Port Trusts.
The Government informed that the Dock Workers (Regulation of Employment)
(Inapplicability to Major Ports Bill) 1997 to provide for inapplicability of the Dock Workers
(Regulation of Employment) Act, 1948 to the dock workers of Major Port Trusts and matters
connected therewith are incidental there to was passed by the Rajya Sabha and Lok Sabha.
The Government of India communicated to initiate necessary steps for eventual merger in
terms of provisions of this Bill and the Ministry may be kept informed the developments
from time to time.
There are 12 Major Ports existed in India.
Government of India, the Visakhapatnam Dock Labour Board has been merged with the
Visakhapatnam Port Trust wef 26th September, 2008 and re-designated as Cargo Handling
Division under the control of the Traffic Manager, Visakhapatnam Port Trust.
Now, this Visakhapatnam Dock Labour Board ceased to be in existence with its
merger with Visakhapatnam Port Trust during Sep, 2008, thereby all the functions hitherto
carried out by the erstwhile VDLB have been carried out by this Cargo Handling Division of
VPT.
or record
temporarily not available and whose absence has been approved by the
administration.
Grouping or re-grouping of all dock workers into such groups as was determined
and reviewing thereafter.
Making provisions for the training and welfare of the dock workers.
Levying and recovering from the registered employers.
Making provisions for the health and safety measures in the places where dock
workers are employed.
Workers
Participation
in
Cargo
Handling
Division
(Erstwhile
On receipt of the cargo handling order, the stevedore or shipping agent approach the
Cargo Handling Division (C H D) of the Port for the required labour force to handle the
cargo, by indenting the workers with the call stand of the C.H.D. Then the concerned staff in
the call stands, after due and proper planning, allot the required workers to the indenting
employers for the handling of cargoes. In the event of any shortage of workers, the C.H.D.
procures the remaining workers from cargo handling labour pool of Vishapatnam port trust
and the Cargo Handling Private Workers Pool.
At every port there is a call stand for workers maintained by its C.H.D. This looks
after the engagement of workers to the various berths for loading and unloading operations in
all 3 shifts in a day. The call stand staff also arranges transport to the workers to their allotted
work spots. The C.H.D. provide welfare facilities to the workers as per the Factories Act,
1948 which include place for rest, recreation , canteen, drying and storing of clothes etc., in
the call stand premises.
ASSISTANT SUPERVISOR
SENIOR INSPECTOR
BOOKING STAFF
DOCK SUPERRINTENDENT
33
PRODUCTION FUNCTION
The Cargo Handling Division of Visakhapatnam Port Trust, being a nonmanufacturing organization, the services rendered by it include the supply of dock labour to
the concern stevedores for efficient loading and unloading of various cargoes into ships
vessels for exports or imports:Different types of ores.
Imports:
Bulk cargoes.
General cargoes.
Food grains.
Heavy lifts on Deck.
Anthracite Coal.
Zinc ignites.
Alumina Powder Bags.
Gas Coke.
Ammonium Nitrate.
Petroleum Coke.
Iron ore fines.
Exports:
Rice in bags.
Wheat in bags.
Sugar in bags.
ManganeseOre.
Thermal Coal.
Pig Iron.
General Cargo.
Cement in bags.
Iron & Steel.
Soya Bean Meal.
Roofing Sheets.
Timber Logs.
H.C.F. Chrome
34
HR FUNCTION
Secretary:
Secretary of the Cargo Handling Division is responsible for advising the Traffic
manager on matters pertaining to procedure and for arranging general, statutory and special
meetings of the Board; He shall be responsible for compilation of the Boards annual
administration report placing the same for Boards approval and submission to the
Government in due time. He shall be in general control of the Boards Secretariat. He shall
deal with matters relating to Industrial Relations. He shall be responsible for compilation,
maintenance and furnishing of all labor statistics. He shall deal with cases of registration and
listing of employers. He shall assist the Traffic manager and carry out the functions delegated
to him by the traffic manager. He shall perform such other duties as may be entrusted to him
from time to time by the Chairman or the Traffic manager with the approval of the Chairman.
Administrative Officer:
Administrative Officer shall be incharge of all purchases and stores for the Board and
Administrative Bodies. He shall deal with all matters concerning lands, buildings and other
properties and assets of the Board. He shall be incharge of all vehicles and communication
systems of the Board. He shall be incharge of security of all properties of the Board. He shall
be the authority for allotment of Boards quarters.
He shall assist the Deputy Chairman in his functions as Estate Officer of the Board He
shall deal with all legal matters concerning the Board. He shall deal with matters relating to
organization & methods and Work Study including control of records. He shall attend to
matters relating to public relations. He shall perform any other functions that may be
entrusted to him by the Chairman with the approval of the Chairman.
35
Administrative Bodies. He shall conduct periodical verification of assets and stores in all
Divisions of the Board and Administrative Bodies. He shall be incharge of all financial
transactions will regard to the funds operated by the Board. He shall deal with matters
concerning audit of accounts maintained by the Board and Administrative Bodies. He shall
coordinate the accounts work in the Registered Scheme, the Unregistered Scheme and the
Boards Division. He shall perform any other function that may be entrusted by the Chairman
or the Deputy Chairman with approval of the Chairman.
Personnel Officer:
Personnel Officer shall carry out the duties specifically lay down under clause 44 of
the Registered Scheme and clause 32 of the Unregistered Scheme. He shall deal with all
personnel matters, via, recruitment, training (including study leave), grievances, promotions,
applications for outside employment, retirements, maintenance of service records of workers
and staff of the Board and Administrative Bodies. He shall assist the Deputy Chairman in
processing the disciplinary cases reported by the Labour Officer and also in processing of
appeals of workers against the orders of the Labour Officers. He shall also assist the Deputy
Chairman in dealing with disciplinary cases against the employees of the Board. He shall
perform such other duties as may be entrusted to him by the Chairman or the Deputy
Chairman with the approval of the Chairman.
Medical Officer is being looked after by the Deputy Chief Medical Officer.
The Deputy
Chief Medical Officer is the overall charge of the medical services preventive, promotive
and curative and is responsible for the smooth running of the Medical Department.
He shall
the administrative head of the Medical Division of the Board and make periodical/surprises
checks/visits of the Hospital and Branch Dispensary.
36
Sanitary Section and proper sanitation of the Boards Office, Call stands and Housing Colony
at Kailasapuram. He shall visit those places twice in a week for inspection and report to the
Chief Medical Officer.. He shall deal with the Unions in matters related to hospital working,
under the guidance of the Deputy Chairman.
bills and recommend for sanction. He shall approve issues of special /specified drugs. He
shall be the Chairman/ Convener of Medical Boards for examination of cases for retirement
on medical grounds.
He shall be
responsible for the procurement of drugs and equipment recommended by the Drugs
Committee and Specialists attending the Boards Hospital.
control and shall be responsible for the imp rest cash and sign all the vouchers. He shall
attend to any other duties as may be assigned by the Chairman or the traffic manager with the
approval of the Chairman.
provided, especially as regards canteens, rest rooms, washing and toilet facilities and drinking
water. He shall examine grievances voiced by the dock workers and employees in respect of
welfare facilities and other amenities.
Asst Secretary:
Asst Secretary shall deal with all establishment matters like salary bills, annual
increments, conveyance allowance, TA & DA, LTC claims, advances, recovery of advances,
leaving including leave encashment, conveyance allowance. He shall be in charge of Boards
Library. He shall perform such other functions that may be entrusted to him by the Chairman
or the Deputy Chairman with the approval of the Chairman.
37
Accounts Officer:
Accounts Officer shall be in charge of all financial transactions of Funds operated by
the Administrative Body, Registered Scheme and maintain accounts of the Funds. He shall be
responsible for collection of Wages (including piece-rate wages) levy and other dues from
employees in proper time. He shall advise on investments and financial matters of the
Registered Scheme. He shall be responsible for wages and other payments to the workers in
proper time and for collection of advances and other dues from them as per recovery advices.
He shall prepare budget for the funds maintained by the Administrative Body, Registered
Scheme. He shall deal with matters concerning audit of accounts maintained by the
Administrative Body.
He shall be responsible for proper assessment of levy contributions, dues payable to
the Administrative Body and collection thereof. He shall be responsible for submission of
monthly and annual statistics to the Board. He shall perform any other functions that may be
entrusted by the Chairman or the traffic manager or the Administrative Body, Registered
Scheme, with the approval of the Chairman.
Labour Officer:
The Labour Officer shall be in charge of allocation of workers. He shall visit the work
spots to see that the work goes on efficiently. He shall settle disputes that arise between the
employers and the workers or among the workers and ensure that the workers comply with
38
the provisions of the Scheme and rules and regulations of the Board. He shall be sanctioning
authority for casual leave/earned leave/sick leave and processing of applications for
advances, etc to the workers. He shall deal with all disciplinary matters. He shall be
responsible for submission of monthly and annual statistics relating to employment of
workers. He shall advise the Administrative Body on all labor management matters through
the Senior Labour Officer. He shall be in charge and submit reports to the Deputy Chairman
about any signs of Labour unrest in proper time. He shall perform such other duties as may be
entrusted to him by the Chairman or the traffic manager with the approval of the Chairman.
Medical Officers:
The Medical Officer shall attend to shift duties in Causality to render outpatient/emergency treatment. He / She shall also work in General Shift when posted either at
Main Hospital or Kailasapuram Dispensary. He/She shall make rounds of various wards
during 2nd and 3rd shifts and attend to inpatients. He/She shall attend to any other duties as
may be assigned to him/her by the Chairman or the Chief Medical Officer with the approval
of the Chairman.
Hindi Officer:
The Hindi Officer shall be responsible for implementation of Section 3 (3) of Official
Language Act. She shall conduct Official Language Implementation Committee Meetings for
every quarter. She shall be responsible for Hindi Training Programme of Officers and
Employees. She shall be responsible for conducting Hindi work-shops. She shall perform any
other work that may be entrusted by the Chairman and with the approval of the Chairman.
WORK ACTIVITIES:
Port and Docks are services industries and play on important role in the economy of
a country. They are
the
gateways
carried out through port and docks. Beside there are a large
cargo
ships, signaling them. Thus ports and dock are center of multifarious activities and provide
employment to a large number of people. The dock labor board, Visakhapatnam is service
industry. The nature of work performed here is nothing but handling of cargo.
The CHD
has two schemes namely RS and URS, both for workers and stevedores. It applies gangs of
workers to stevedores i.e. Agents
of cargo.
As on 1-06-2014
REGISTERED SCHEME
STRENGTH
53
Winch drivers
139
Tindals
13
T/signal man
78
Mazdoors
471
TOTAL
754
40
UN-REGISTERED SCHEME
STRENGTH
Masteries
58
Tindals
Casual Mazdoors
11
303
TOTAL
381
STAFF
STRENGTH
Class-I
11
Class-II
03
Class-III
71
Class-IV
47
Total
132
754
381
1135
132
TOTAL
1267
Managerial Staff
Class 1:
Secretary
Administrative Officer
Assistant Secretary
Senior Labor Officer
Personal Officer
Labor Welfare Officer
Chief Accounts Officer
Chief Medical Officer
Deputy Chief Medical Officer
Accounts Officer(R)
Assistant Executive Engineer
41
Class 2:
Accounts Officer (L)
Labor Officer
Assistant Director (Systems)
Hindi Officer
Assistant Engineer
Class 3:
Office Super dent
Head Assistant /A.W.O.
Senior Assistant
Senior Investigator Junior Assistant
Clerk
Junior Clerk
Vigilance Inspector
Telephone Operator
Senior Driver
Typist-Cum-Telephone Operator
I.O.W. Gr- ii
Overseer
Fitter
Mason Gr- II
Senior Staff Nurse
Senior Pharmacist
Class 4:
Mason Gr- II
Pump Attendant
Khalasi
Gardener
Record Sorter
Messenger
Naik
Senior Watch Man
Driver
42
Gesture Operator
F.N.O.
Ward Boy
Sanitary Zamedar
Sanitary Khalasi
Conclusion:
On the recommendations of the Royal Commission on Labour submitted to the
Government in 1931, the government of India has taken the legislative action and passed the
Dock Workers (Regulation of Employment) Act, 1948. The Visakhapatnam Dock Labour
Board was constituted under the Dock Workers (Regulation of Employment) Act, 1948.
Under the said act, two schemes viz., The Visakhapatnam Dock Workers (Regulation of
Employment) Scheme, 1959 and The Visakhapatnam Unregistered Dock Workers
(Regulation of Employment) Scheme, 1968 were formulated.
The Visakhapatnam Dock Labour Board is intended to ensure great regularity of
employment for Dock workers and to ensure that an adequate number of workers are
available for the efficient performance of the Dock workers. VDLB being a nonmanufacturing organization, the services rendered by it are, supply of labour to stevedores for
loading and unloading of cargo for exports and import.
employees & workers are extended to a greater extent and meeting all the statutory and nonstatutory requirements. VDLB is having very good environment in these labour management
relations because it has laid down all basic policies and procedures in a constructive attitude
for maintaining harmonious industrial relations which is very important to reach the target of
production and productivity of the organization.
In the year 1991, the Government has introduced new Industrial Policy in which the
Port sector was considered and one of the measures taken by the Government is to merge
Dock Labour Boards with the respective Port Trusts. Accordingly, five Dock Labour Boards
have been merged with respective Port Trusts and there are two Dock Labour Boards
remaining to be merged with the respective Port Trusts viz., Visakhapatnam Dock Labour
Board and Calcutta Dock Labour Board. The Ministry of Shipping, Road Transport &
Highways have communicated its approval on the draft Terms of Settlement with certain
conditions and making minor corrections. A Memorandum of Settlement under Section 12
(3) of the Industrial Dispute Act, 1947 was arrived before the Asst Commissioner of Labour
(Central),
Visakhapatnam
with
the
Management
43
of
Visakhapatnam
Port
Trust,
Visakhapatnam Dock Labour Board and Workmen represented by its Unions for eventual
merger of Visakhapatnam Dock Labour Board with Visakhapatnam Port Trust.
The
Government of India had issued a notification dated 26-09-2008 stating that the provisions of
the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948) shall cease to have
effect in relation to that major port with effect from 26th September, 2008. Consequent to
the issue of notification by the Government of India, the Visakhapatnam Dock Labour Board
has been merged with the Visakhapatnam Port Trust wef 26th September, 2008 and redesignated as Cargo Handling Division under the control of the Traffic Manager,
Visakhapatnam Port Trust.
44
DEFINITION:
Budget is defined as A financial and /or quantitative statement, prepared and
approved prior to a defined period of time, of the policy to be pursued during that period for
the purpose of attaining a given objective. It may include income, expenditure and capital.
An analysis of this definition reveals the following essentials of a budget: The budget is
monitory and/or quantitative statement of that policy. A budget is prepared prior to a defined
period of time. It is prepared for the definite future period of time. The policy to be followed
to attain the given objectives must be laid before the budget is prepared. Thus, a budget fixes
a target in terms of rupees or quantities against which the actual performance is measured. A
budget is a document which is closely related to both the management function as well as the
accounting of an organization.
Sales Budget
Sales being the principal budget factor, sales budget are the most important budget
and form the basis on which all the other budgets are built up. This budget is a forecast of
quantities and values of sales to be achieved in a budget period. Every effort should be made
to ensure that its figures are as accurate as possible because this is usually the starting budget
(sales being limiting factor on which all the other budgets are built up).
The sales manager should be made directly responsible for the preparation and
execution of this budget. In the preparation of the sales budget, the sales manager should take
into consideration the following factors.
45
Salesmens estimates:
In preparing the sales budget, the sales manager should consider the estimates of sales
received from salesmen because they can make more accurate estimates being in direct
contact with the customers. However, it should be seen that salesmens estimates should
neither be over optimistic nor too conservative.
Plant Capacity:
The budget should be within the plant capacity available and should ensure proper
utilization of plant facilities. Proposed plant extension should be allowed for in the
preparation of the sales budget.
Seasonal fluctuations:
In preparation of the sales budget, seasonal fluctuations should be considered because
sales are affected by these fluctuations. In order to have an even flow of production, efforts
should be made to minimize the effects of seasonal fluctuations on sales by giving special
concessions or added inducements during the off seasons. The sales manager after taking into
consideration the above factors, should prepare the sales budget in terms of quantities and
amounts and the sales estimates must be analyzed for products, period and territories. The
sales budget should include an estimate of selling and distribution costs in addition to an
estimate of the total proceeds.
46
Production Budget
Production budget is a forecast of the total output of the whole organization broke
down into estimates of output of each type of product with a scheduling operations (by weeks
and months) to be performed and a forecast of the closing finished stock. This budget may be
expressed in quantitative (weight, units etc) or financial (rupees) units or both. This budget is
prepared after taking into consideration the estimated opening stock, the estimated sales and
the desired closing finished stock of each product. The following factors are considered in
preparing the production budget. The material, labour and plant requirements should
ascertain to have the desired production to meet the sales programme. The sales and the
production budget are inter-dependent because production budget is governed by the sales
budget is largely determined by the production capacity and by production cost.
overhead budget because cost of production includes materials, labour, and overheads.
Materials Budget
In drawing up the production budget, one of the first requirements to be considered is
materials. As we know, materials may be direct or indirect. This materials budget deals with
the requirement and procurement of direct materials. Indirect materials are dealt with under
the works overhead budget. The budget should be related to the production budget and the
period of the budget should be of short duration because this budget has an important bearing
on the cash budget. Material budget can be classified into material requirement budget and
procurement budget. The former gives information about the quantity of material required
during the budget period to attain the production target; while the latter provides the
information about the materials to be acquired from the market during the budget period.
Material procurement budget, taken into consideration the inventory of materials and the
materials on order at the beginning of the budget period and the anticipated inventory of
materials and the materials to be on order on the closing date of the budget period.
Fixed budget
This budget is drawn for one level of activity and one set of conditions. It is a rigid
budget and is drawn on the assumptions that there is no change in budgeted level of activity.
It does not take into consideration any change in expenditures arising out of level of activity.
Thus, it does not provide for changes in expenditure arising out of changes in the anticipated
conditions and activity. A fixed budget will, therefore, be useful only when the actual level of
activity corresponds to the budgeted level of activity. But in practice, the level of activity and
set conditions will change as a result of internal limitations and external factors like changes
in demand and prices, shortage of materials and power, acute competition etc. it is hardly any
use as a mechanism of budgetary control because it does not make any distinction between
fixed, variable, and semi-variable costs and provides for no adjusted in the budgeted figures
48
as a result of change in costs due to change in level of activity. However, a fixed budget is
useful at the planning stage when it serves to define the board objectives of the organization.
Flexible budget:
It is defined as a budget designed to change in accordance with the level of activity
actually attained. Thus, a flexible budget gives different budgeted costs for different levels of
activity. A flexible budget is prepared after making an intelligent classification of all
expenses between fixed, variable and semi variable because the usefulness of such a budget
depends upon the accuracy with which the expenses can be classified.
A flexible budget is very useful for purpose of budgetary control because it
corresponds with changes in level of activity. It is helpful in assessing the performance of
departmental heads because their performance can be judged in relation to the level of
activity attained by the organisation. Cost ascertainment at different levels of activity is
possible because a flexible budget is prepared for various levels of activity. So it is helpful in
price fixation and sending quotations.
Performance budgeting
In conventional system of budgeting, the money concept was given more prominence
i.e. estimating or projecting rupee value for the various accounting heads or classification of
revenue and cost. Such system of budgeting was more popularly used in government
departments and many business enterprises. But in such budgeting system control of
performance in terms of physical units or the related costs cannot be achieved. These days
budgets are established in such a way so that each item of expenditure is related to a specific
responsibility center and is closely linked with the performance of that center. Developing
work programmes and performance expectations by assigned responsibility is the main issue
involved in fixation of performance budgets and is necessary for the achievement of the goals
and objectives of the enterprise.
Definition:
According to Brown and Howard a budgetary control is a system if controlling
costs,
establishing the responsibilities, comparing actual performance with the budgeted and acting
upon result to achieve maximum profitability. According to Weldon he criticizes budgetary
control as planning in advance of the various function of a business so that the business as
whole is controlled. The establishment of the budgets relating to the responsibilities of
executives to the requirements of a policy and the continuous comparison of actual with
budgeted result either to secure by individual action the objectives of that policy or to provide
firm basis for its revision. Budgets are the individual objectives of a department, etc whereas
budgeting may be said to be the act of building budgets. Budgetary control embraces all this
and in addition includes the science of planning the budgets to effect an overall management
tool for the business planning and control. Thus, budget is financial plan and budgetary
control results from the administration of the financial plan.
Process and Importance:
Management and many investors and bank loan officers have become increasingly
aware of the merits of formal business plans. The major technical work of a budgetary
accountant involves expected future and data rather than historical data.
There is one
philosophical difference. The advocates of budgeting maintain that the process of preparing
the budget forces the executives to become better administrators. Budgeting puts planning
where it belongs in the forefront of the manager mind. Budgeting is primarily attention
directing because it helps manager to become on operating or financial problems early
enough for effectively or action.
1. Planning:
A budget is a plan of the policy to be pursued during the defined period of time to
attain a given objective. The budgetary control will force management at all levels to plan in
time all activates to be done during the future periods. A budget as a plan of action achieves
some purposes i.e., (a) Action is guided by well thought out plan because a budget is
prepared after a careful study and research. (b) The budget serves as a mechanism through
which managements objectives and policies are affected. (c) It is a bridge through which
communication is established between the top management and the operatives who are to
implement the policies of the top management. (d) the most profitable course of action is
selected from the various available alternatives. (e) A budget is complete formulation of the
policy of the undertaking to be pursued for the purpose of attaining a given objective.
2. Coordination:
The budgetary control coordinates the various activities of the firm and secure
cooperation of all concerned so that the common objective of the firm may be successfully
achieved. It forces executives to think and think as a group. It coordinates the border
economic trends and the economic position of an undertaking. It is also helpful in
coordinating the policies, plans and actions. An organization without a budgetary control is
like a ship sailing in a charted sea. A budget gives direction to the business and imparts
meaning and significance to its achievement by making comparison of actual performance
and budgeted performance.
3. Control:
Control consists of the action necessary to ensure that the performance of the
organization conforms to the plans and objectives. Control of performance is possible with
51
pre-determined standards which are laid down in a budget. Thus, budgetary control makes
control possible by continuous comparison of actual performance with that of the budget so
as to report the variations from the budget to the management for corrective action.
Thus, budgeting system interacts key managerial function performed at all levels in
the managerial hierarchy. But the efficiency of the budget as ma planning and control device
depends up on the activity in which it is being used. A more accurate budget can be
developed for those activities where direct relationship exists between inputs. The
relationship between inputs and outputs becomes the basis of developing budget and
exercising control.
Budget Manual:
A budget manual is defined as a document schedule or booklet which sets out, inter
alia, the responsibilities of the persons engaged in the routine of and the forms and records
required for budgetary control. Thus, it is a written document which guides the executives in
preparing various budgets. Budgets are to be drawn keeping in view the objectives of the
organization given in the budget manual. Responsibility and functions of each executive in
regard to budgeting are written down in the budget manual to avoid any duplication or
overlapping of responsibilities. Steps and the methods for developing various budgets and the
method of reporting performance against the budget are written down in the budget manual.
In short, it is a written document which gives everything relating to the preparation
and execution of various budgets. It should be clear and there should be no ambiguity in it.
The manual is divided into separate sections so that each manager can be issued only that
section appropriate to his work and responsibilities.
Budget Period:
This may be defined as the period for which a budget is prepared and employed. The
budget period will depend upon the type of business and the control aspect. For example in
case of seasonal industries (i.e., food or clothing), the budget period should be long enough to
meet the requirements of the business. From control point of view, the budget period should
be short one so that the actual results may be compared with the budget each week-end or
month-end and discussed with the budget committee. Long-term budgets should be
supplemented by short term budgets to make the budgetary control successful, as short-term
budgets will help in exercising control over day-to-day operations. In short, the budget period
should not be too long so that estimates may not become unreliable. Similarly it should also
be not too short so that there may be sufficient time before budget implementation. For must
52
business, annual budget is quite common because it compares with the financial accounting
year. There should be a regular time plan for budget preparation.
53
3.3 Budgets in Cargo Handling Division (CHD) of Visakhapatnam dock labour board
Chairman
Budget committee
Medical Department:
Head by the chief medical officer, this department is responsible for maintaining the health of
the employees of the organization.
CMDs Secretariat:
This department is responsible for planning all the activities to be undertaken by the CMD.
Works Department:
Head by director, this is the life and flood of the organization.
System Department:
This department is responsible for maintaining the various computer facilities of organization
and improves efficiency of labour.
55
Capital Budget
b.
Revenue Budget
Capital Budget:
Capital budget deals with new schemes to be intimated during the year and also with
completion of scheme already implemented. It is prepared and approved by VCHD and send
to ministry of finance to enable to ministry to release the required funds.
Capital budget consists of
Continue Schemes.
New Schemes.
Budget:
CHD would organize quarterly meeting under the chairman ship of the board. They
will be organizing of annual accounts and annual report meeting in the month of October and
budget meeting in the month of January, including special meetings to discuss various urgent
and emergency maters regarding all interests in the port trust and CHD.
Before commencing every quarterly meeting, the agenda sets will be distributed to
every member hold discussions in each section separately and record observations of the
department individual. The observations will be put in the forward in the board meeting.
The labor trustees will participate in every meeting of the board. Labor trustees point out the
problems and appreciate the progress growth of the D.L.B. and give suggestions for
advantage of workers of the CHD.
The budget meeting will be organized in the month of January to discuss over all
budget allocation in each department and over all department of the dock labor board. In
budget meeting there is allotment of money to each committee like welfare committee,
development of education in organization. The labor trustees to take advantage with their
demands from the board.
In certain matters there will be prevalence of voting and conducting of voting will be
responsible of the board, in the labor trustees would not have the right to participate in the
meeting. In board meeting they discuss various matters like working and serving policies,
granting festival advances levy of charges on the trade, safety measures of the worker, grant
56
of incentives to maintain the staff, improving the conditions of the equipment, medical
reimbursement, practical training and other related matters regarding the employees of the
CHD.
57
Receipts
Budgets
2010-11(Rs)
Actuals
2010-11 (Rs)
107,896,000
109,208,000
Change
in %
-0.44%
75,000,000
76,015,000
-1015000
-0.34%
General levy
101,732,000
89,294,000
12438000
4.17%
Levy on coals
5,556,000
6,219,000
-663000
-0.22%
1,290,000
3,119,000
-1829000
-0.61%
Interest on investment/bank
A/C
1,842,000
-0.05%
1,691,500
-150500
1,691,500
1,842,000
-150500
-0.05%
6,00,000
600000
0.20%
533,000
525,000
8000
2.68%
2,500,000
14,280,000
11780000
-3.94%
298,490,000
302,344,000
-3854000
-1.29%
Misc Receipts
Total Receipts (A)
1,31,2000
EXPENDITURE
1
Payments to workers
246,975,000
251,882,000
-4907000
-1.64%
payments to staff
19,448,000
20,804,000
-1356000
-0.45%
Office maintenance
4,061,000
4,761,000
-700000
-0.23%
2,400,000
2,231,000
169000
0.057
Boards contribution
1,365,000
48,323,000
46958000
15.73%
Depreciation
505,000
762,000
-257000
-0.09%
274,754,000
328,763,000
54009000
18.09%
23,736,000
-26,419,000
-2683000
-0.89%
58
Axis Title
change in % -0.4
-0.3
Inter
est
on
Gen Levy
inves
eral on
tme
levy coals
nt/b
ank
A/C
Boar
d
shar
e of
expe
ndit
ure
4.17
-0.0
-0.2
-0.6
Levy
from
M/S
coro
man
del
fertil
ize
-0.0
Rent
ADM Misc
offic Rece
e
ipts
build
ing
0.20 2.68
-3.9
20.00%
15.00%
10.00%
5.00%
0.00%
-5.00%
change in %
Paymen
ts to
workers
paymen
ts to
staff
Office
mainte
nance
Repairs
&
Mainte
nance
Boards
contrib
ution
Depreci
ation
-1.64%
-0.45%
-0.23%
0.057
15.73%
-0.09%
NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT
59
SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)
0
-10,000,000
ACTUALS
BUDGETS
-20,000,000
-30,000,000
INTERPRETATION:
From the above table we observed that the revised estimates expenditures are more
than the receipts, hence it shows
hows deficit in the year 2010-11
2010
i.e. -26,419,000.
26,419,000. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows
shows surplus in the
year 2010-11 i.e. 23,736,000.
INCOMES:
The change in the Actual Receipts and Budgeted Receipts is increased by 38,54,000
Rupees so the percentage change in the income is 1.2911 % so the income is raised.
EXPENDITURE:
The change in the Actual Expenditure is increased by 54,009,000 Rupees comparing
to Budgeted Expenditures. So the percentage change in the expenditure is 19.65 % so deficit
occurred.
60
Sl.
No
Receipts
Budgets
2011-12 (Rs)
Actuals
2011-12 (Rs)
Change
in Rupees
Change
in %
137,147,000
130,104,000
70,43,000
1.83%
79,816,000
83,688,000
38,72,000
-1.01%
General levy
121,915,000
84,199,000
37,71,600
0
9.82%
Levy on coals
6,582,000
6,166,000
416,000
0.11%
Additional Levy
7,256,000
-7256000
-1.89%
Special Levy
35,037,000
35037000
-9.12%
Interest on
investment/bank A/C/
Deleyed payments
2,963,000
1,437,000
1526000
0.40%
Board share of
expenditure
2,111,000
1,993,000
118000
0.030%
2,111,000
1,993,000
118000
0.030%
Rent-ADM office
building
525,000
838,000
-313000
-0.08%
10
Misc Receipts
30,784,000
10,342,000
20,442,00
0
5.32%
383,954,000
363,053,000
20,901,00
0
5.44%
Expenditures
1
Payments to workers
289,637,000
275,824,000
13813000
3.60%
payments to staff
24,784,000
24,000,000
784000
0.20
Office maintenances
4,786,000
4,431,000
355000
0.09
Repairs &
Maintainance
2,165,000
2,295,000
-130000
-0.03
Boards contribution
48,433,000
51,645,000
-3212000
-0.84
Depriciation
572,000
528,000
500000
0.013
370,377,000
358,723,000
11654000
3.03
13,577,000
4,330,000
9247000
2.41
61
Axis Title
-1.
9.8
Add
Inte Boa
Spe
itio
rest rd
cial
nal
on sha
Lev
Lev
inve re
y
y
st of
0.1
-1.
-9.
0.4
0.0
Ren Mis
t-A
c
DM Rec
offi eipt
ce s
0.0
-0.
5.3
Axis Title
change in %
Payme
nts to
worker
s
payme
nts to
staff
Office
mainta
inance
Repairs
&
Mainta
inance
Boards
contrib
ution
Deprici
ation
3.60%
0.2
0.09
-0.03
-0.84
0.013
NOTE:
RECEIPTS > EXPENDITURES
RECEIPTS < EXPENDITURES
= SURPLUS
= DEFICIT
62
14,000,000
12,000,000
10,000,000
8,000,000
SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)
6,000,000
4,000,000
2,000,000
0
ACTUALS
BUDGETS
Interpretation:
From the above table we observed that the revised estimates receipts are more than
the expenditures, hence it shows
hows surplus in the year 2011-12 i.e. 4,330,000. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows surplus
surp in the
year 2011-12 i.e. 13,577,000.
INCOME:
The Actual Receipts and when comparing to Budgeted Receipts so the Budgeted
Receipts are increased 20,901,000 Rupees. So the percentage change in the 5.44 % was
income is raised
EXPENDITURE:
The Actual Expenditure and when comparing to Budgeted Expenditures so the Actual
Expenditure is decreased. So the change in the Budgeted
Budgeted Expenditure is 11,654,000 Rupees.
So the percentage change in the expenditure is
Expenditure is increased
63
03.15 % expenditure
is Budgeted
Sl.
Receipts
No
Budgets
2012-13 (Rs)
Actuals
2012-13 (Rs)
Change in
(Rs)
Change
in %
1,918,589,930
301,576,000
1617013930
83.51
Cargo
2
5,504,253
300,000
5204253
0.269
4,614,450
429,000
32450
1.67
Recoverable charges
248,490
224,000
24490
1.26
Finance &
Miscellaneous Income
7,350,000
4,568,000
2782000
0.14
1,936,307,123
307,097,000
1629210123
84.14
Expenditures
52,989,507
218,843,000
-165853493
-8.56
Stores
7,999,411
2,225,000
5774411
0.30
General Expenses
453,992
397,400
56592
2.92
Sundry Expenses
6,419,060
8,788,000
-2368940
-0.12
Depreciation
1,172,006
1,301,000
-128994
-6.66
Total Expenditure
(B)
69,033,976
231,554,400
-162520424
-8.39
(+)
1,867,273,147
(+)
75,542,600
1791730547
92.53
64
90
80
70
60
50
40
30
20
10
0
Change in %
Handling &
Storage
charges on
General
Cargo
Estate
Ground
Rents
Rent from
Quarters
Recoverable
charges
Finance &
Miscellaneou
s Income
83.51
0.269
1.67
1.26
0.14
Axis Title
0
-2
-4
-6
-8
-10
changes in %
Salaries &
Wages
Stores
General
Expenses
Sundry
Expenses
Depreciati
on
-8.56
0.3
2.92
-0.12
-6.66
NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT
65
SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)
500,000,000
0
ACTUALS
BUDGETS
Interpretation:
From the above table we observed that the revised estimates receipts are more than
the expenditures, hence it shows
hows surplus in the year 2012-13
2012
i.e. 75,542,600.. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows sur
surplus in the
year 2012-13 i.e. 1,867,273,147.
INCOME:
The actual Receipts is compared to the Budgeted Recepits so the change is the
1,629,210,123 Rupees .so the Budgeted Recepits is change in the percentage 84.14 %
EXPENDITURE:
The actual expenditure is compared to the budgeted expenditure is so the change in
the expenditure is 162,520,424 rupees. so change in the percentage of expenditure is incurred
in percentage 8.39%
66
Sl.
No
Receipts
Budgets
Actuals
2013-14 (Rs)
2013-14 (Rs)
change
Change in
%
charges on General
Cargo
560,880,000
1,89,574,000
1,118,000
4
5
-132694000
-23.35
5,500,000
-4382000
-0.77
735,000
4,612,000
-38770000
-1.05
Recoverable charges
400,000
12,510,000
-12110000
-2.13
Finance &
Miscellaneous Income
5,019,000
11,142,000
-6123000
-1.08
568,152,000
22,33,38,000
344814000
60.69
Expenditures
1
391,896,000
154,590,000
237306000
41.76
Stores
4,030,000
7,400,000
-3370000
-0.59
General Expenses
797,400
5,196,000
-4398600
-0.77
Sundry Expenses
20,289,000
14,830,000
5459000
0.96
Depreciation
2,298,000
2,760,000
-462000
-0.081
Total Expenditure
(B)
419,310,400
184,776,000
-234534400
-41.28
(+) 148,841,600
(+) 3,85,62,000
110279600
19.41
67
Axis Title
change in %
Handling
& Storage
charges
on
General
Estate
Ground
Rents
Rent from
Quarters
Recovera
ble
charges
Finance &
Miscellan
eous
Income
-23.35
-0.77
-1.05
-2.13
-1.08
Axis Title
40
30
20
10
0
-10
change in %
Salaries &
Wages
Stores
General
Expenses
Sundry
Expenses
Depreciat
ion
41.76
-0.59
-0.77
0.96
-0.081
NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICI
68
SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)
ACTUALS
BUDGETS
Interpretation:
From the above table we observed that the revised estimates receipts are more than
the expenditures, hence it shows
hows surplus in the year 2013-14
2013
i.e. 1,739,562,000.. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows
shows surplus in the
year 2013-14 i.e. 148,841,600.
INCOME:
The actual receipts is compared to the budgeted receipts so the budgeted receipts are
increased Rupees 344,814,000 so the change in the budgeted receipts in the percentage is
60.69%
EXPENDITURE:
The actual expenditure compared to the budgeted expenditure so the budgeted
expenditure is increased so the change in the rupees is 234,534,000 so the percentage change
in the expenditure is 55.93 %
69
Budgets
Actuals
Change
in %
No
Receipts
2014-15 (Rs)
2014-15 (Rs)
15,46,34,000
15,83,39,000
-3705000
-0.98
Piece Rate
4,17,00,000
3,06,08,000
11092000
2.93
16,19,79,000
59,33,82,000
-108.39
lLevy
Rent on AOB,other
building and electric
charges
Miscellaneous
receipts
Other income
Total Receipts
6,72,000
431403000
14,55,000
-783000
-0.21
16,64,000
17,61,999
-97999
-0.025
76,00,000
1,81,00,000
-10500000
-2.78
97,43,000
9,22,24,000
-82481000
-21.82
81,28,69,999
434877999
115.04
(A) 37,79,92,000
Expenditures
1
15,46,34,000
15,83,39,000
-3705000
-0.98
4,17,00,000
3,06,08,000
11092000
2.93
19,26,22,000
19,89,46,000
-6324000
-1.67
Payments to
workers
-1126000
-0.30
3678000
0.97
31700000
8.39
6,96,52,000
6,85,26,000
Payments to staff
Office maintenance
61,78,000
25,00,000
Repairs and
maintenance
3,47,00,000
30,00,000
Boards contribution
8,50,55,000
17,87,29,000
-93674000
-24.78
Other expenditure
6,95,96,000
10,26,08,000
-33012000
-8.73
Total Expenditures
(B)
65,30,11,000
74,43,82,000
-91371000
-24.17
(-) 27,50,19,000
(+) 6,78,87,999
207131001
54.80
70
Axis Title
Change in %
Rent
Rent
Miscell
on
and
AOB,ot aneous Other
electric
her
receipt income
quarte
buildin
s
rs
g and
Time
Rate
wage
Piece
Rate
lLevy
-0.98
2.93
-108.39
-0.21
-0.025
-2.78
-21.82
Axis Title
2.93
-1.67
-0.3
NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT
71
0.97
8.39
-24.78 -8.73
BUDGETS
ACTUALS
SURPLUS(+)/DEFICIT(-)
-100,000,000
-150,000,000
-200,000,000
-250,000,000
-300,000,000
Interpretation:
From the above table we observed that the revised estimates receipts are more than
the expenditures, hence it shows
ws surplus in the year 2014-15
2014
i.e. 6,78,87,999. Whereas the
actual budget estimates receipts are less than expenditures, hence it shows
shows deficit in the year
2014-15 i.e. 27,50,19,000
INCOME:
When comparing to actual receipts to budgeted receipts so the income is increased in
the actual receipts is Rupees 434,877,999, so the percentage change in the income is 115.05%
EXPENDITURE:
When comparing to actual expenditure and budgeted expenditure the actual
expenditure is more than the budgeted expenditure so the rupees is 679,081,000. So the
percentage change in the expenditure is 103.99 % so in this year it shows Deficit
72
Account
REGISTERED
scheme
Year
Change
in (%)
Incomes
2010-11
-3854000
2011-12
2091000
2012-13
1629210123
2013-14
2014-15
-1.29
Expenditure
-54009000
-5.44
Change in(%)
-18.09
1165000
3.03
84.14
-162520424
-8.39
344814000
60.69
-234534400
-41.28
4344877999
115.04
-91371000
-24.17
Axis Title
2011-12
2012-13
REGISTERED
change in(%)
expenditure
change in (%)
incomes
-18.09
3.03
-1.29
-1.63E+0
-5.44
84.14
-3854000 2091000
2014-15
scheme
-8.39
-5400900 1165000
2013-14
-41.28
-24.17
-2.35E+0 -9137100
60.69
115.04
73
Sl.
No
Receipts
Budgets
Actuals
2010-11(Rs)
2010-11 (Rs)
Change in Rs.
Change
in %
7,200,000
7,376,000
-176,000
-0.21
1,800,000
5,200,000
-3,400,000
-4.08
General Levy
11,000,000
4,182,000
6,818,000
8.17
404,000
417,000
-13,000
-0.016
Interest on investment
60,000,000
61,644,000
-1644000
-1.97
2,528,000
2,500,000
28000
0.033
Misc Income
500,000
3,789,000
-3289000
-3.94
83,432,000
85,108,000
-1676000
-2.01
Total Receipts
Expenditures
1
Payments to workers
16,431,000
21,423,000
-4,992,000
-5.98
Payments to staff
8,539,000
9,179,000
-640,000
-0.76
Board's Contribution
2,279,000
2,337,500
-58500
-0.07
Share of board's
expenditure
3,938,000
2,897,500
1040500
1.25
Depriciation
747,000
803,000
-56000
-0.067
Total Expenditures
31,934,000
36,640,000
-4,706,000
-5.64
51,498,000
21,423,000
3030000
3.63
74
Axis Title
Change in %
Time
rate
wages
Piece
Genera
rate
l Levy
wages
-0.21
-4.08
-0.016
8.17
-1.97
0.033
-3.94
Axis Title
change in %
Payments
to
workers
Payments
to staff
Board's
Contributi
on
Share of
board's
expenditu
re
Depriciati
on
-5.98
-0.76
-0.07
1.25
-0.067
NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT
75
49,000,000
48,000,000
47,000,000
46,000,000
BUDGETS
ACTUALS
Interpretation:
From the above table we observed that the revised estimates receipts are more than
the expenditures, hence it shows
hows surplus in the year 2010-11
2010
i.e. 48,468,000. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows
shows surplus in the
year 2010-11 i.e. 51,498,000.
INCOME:
The actual receipts is more than the budgeted receipts so the earned receipts in this
year is Rupees 16,76,000 so the percentage of change in the income is 2.01 %
EXPENDITURE:
The actual expenditure is more than the budgeted expenditure so the variation in the
expenditure in Rupees.47,06,000 so the percentage of change in expenditure is 14.74%
76
Sl.
No
Receipts
Budgets
2011-12
Actuals
2011-12
(Rs)
(Rs)
Change in
(Rs)
Change in
(%)
7,745,000
7,832,000
-87000
-0.24
5,200,000
5,589,000
-389000
-1.07
General Levy
2,943,000
3,817,000
-8,74,000
-2.40
420,000
310,000
110,000
0.30
Interest on investment
15,000,000
9,652,000
5,348,000
14.71
2,050,000
4,900,000
-2,850,000
-7.84
Misc Income
3,000,000
1,100,000
1,900,000
5.23
36,358,000
33,200,000
3,158,000
8.69
Total Receipts
Expenditures
1
Payments to workers
22,119,500
25,793,500
-3,674,000
-10.11
Payments to staff
9,431,000
10,026,800
-5,95,800
-1.64
Board's Contribution
1,074,500
2,695,100
-1620600
-4.46
2,755,000
2,417,600
337,400
0.92
Depriciation
665,000
948,000
-283,000
-0.78
Total Expenditures
36,045,000
41,881,000
-5,836,000
-16.05
313,000
-8,681,000
-8,368,000
-23.01
77
Axis Title
change in %
Time
rate
wages
Piece
rate
wages
Gener
al Levy
-0.24
-1.07
-2.4
14.71
-7.84
5.23
Axis Title
change in %
Payments
to
workers
Payments
to staff
Board's
Contributi
on
Share of
board's
expenditu
re
Depriciati
on
-10.11
-1.64
-4.46
0.92
-0.78
NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT
78
BUDGETS
ACTUALS
SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)
Interpretation:
From the above table we observed that the revised estimates expenditures are more
than the receipts, hence it shows
hows deficit in the year 2011-12
2011
i.e. -8,681,000.
8,681,000. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows
shows surplus in the
year 2011-12 i.e. 313,000.
INCOME:
The budgeted receipts is more than the actual receipts so the earned receipts is
Rupees 31,58,000 so the percentage of change in receipts is 8.68 %.
EXPENDITURE:
The actual expenditure is more than the budgeted expenditure so the variation
in expenditure in Rupees.58,, 36,000 so the percentage of change in the expenditure is
16.69%
79
Sl.
No
Receipts
Budgets
Actuals
2012-13
2012-13
(Rs)
(Rs)
Change in
(Rs)
Change in
(%)
8,224,000
8,420,000
-1,96,000
-0.68
5,868,000
3,994,000
1,874,000
6.53
General Levy
4,626,000
14,129,000
-9,503,000
-33.11
Rent on office
building
302,000
476,000
-174,000
-0.61
Interest on
investment
2,827,000
1,089,000
1,738,000
6.06
Interest on loan to
co-operative credit
society
5,700,000
5,148,000
5,52,000
1.92
Misc Income
1,150,000
100,000
1,050,000
3.66
28,697,000
33,356,000
-4,659,000
-16.23
Total Receipts
Expenditures
1 Payments to workers
26,243,500
24,122,000
2121500
7.39
2 Payments to staff
10,296,800
10,322,000
-25,200
-0.08
3 Board's Contribution
3,693,400
727,000
2966400
10.34
Share of board's
expenditure
2,479,700
1,912,400
567,300
1.98
800,000
808,000
-8000
-0.03
Total Expenditures
43,513,400
37,891,400
5,622,000
19.59
-14,816,400
-4,535,400
-10,281,000
-35.83
5 Depriciation
80
10
0
-10
-20
-30
-40
Time
rate
wages
Change in (%)
-0.68
Piece
Gener
rate
al Levy
wages
6.53
-33.11
6.06
1.92
3.66
Axis Title
%change
Payments
to workers
Payments
to staff
Board's
Contributi
on
7.39
-0.08
10.34
NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT
81
Share of
board's
Depriciatio
expenditur
n
e
1.98
-0.03
0
BUDGETS
ACTUALS
SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)
-5,000,000
-10,000,000
-15,000,000
Interpretation:
From the above table we observe that the revised estimates expenditures are more
than the receipts, hence
ence it shows deficit in 2012
2012-13 i.e. -4,535,400.
4,535,400. Whereas the actual budget
estimates expenditures are more than the receipts, hence it shows deficit in 2012
2012-13 i.e. 14,816,400.
INCOME:
The actual receipts is more than the budgeted receipts so the variation
variation in receipts
Rupees 46, 59,000. So the percentage of change in receipts is 16.23% change is incurred.
EXPENDITURE:
The budgeted estimates expenditure is over than the actual expenditure so the
variation in expenditure in Rupees. 56,22,000 so the percentage of change in expenditure is
12.92 %
82
Sl.
No
Receipts
Budgets
2013-14
Actuals
2013-14
(Rs)
(Rs)
Change in
(Rs)
Change
in (%)
9,262,000
14,559,000
-5,297,000
-15.62
3,900,000
6,679,000
-2,779,000
-8.19
General Levy
14,534,000
15,479,000
-945,000
-2.78
533,000
525,000
8000
0.02
Interest on investment
1,000,000
2,100,000
-1,100,000
-3.24
4,603,000
5,500,000
-897,000
-2.64
Misc Income
100,000
2,480,000
-2,380,000
-7.01
33,932,000
47,322,000
-13,390,000
-39.46
Total Receipts
Expenditures
1
Payments to workers
22,261,000
31,934,000
-9,673,000
-28.51
Payments to staff
7,107,000
6,950,000
1,57,000
0.46
Board's Contribution
311,500
6,900,500
-6,589,000
-19.42
1,691,500
1,842,000
-150,500
-0.44
Depriciation
685,000
938,000
-253000
-0.745
Total Expenditures
32,056,000
48,564,500
-16,508,500
-48.65
1,876,000
-1,242,500
633,500
1.87
83
Axis Title
Piece
rate
wages
change in % -15.62
-8.19
Rent
on
Genera
office
l Levy
buildin
g
-2.78
0.02
Interes
t on
invest
ment
-3.24
Interes
t on
Misc
loan to
Income
coopera
-2.64
-7.01
Axis Title
change in %
Payments
to
workers
Payments
to staff
Board's
Contributi
on
Share of
board's
expenditu
re
Depriciati
on
-28.51
0.46
-19.42
-0.44
-0.745
NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT
84
500,000
0
-500,000
BUDGETS
ACTUALS
-1,000,000
-1,500,000
Interpretation:
From the above table we observed that the revised estimates expenditures are more
than the receipts, hence it shows
hows deficit in the year 2013-14
2013
i.e. -1,242,500.
1,242,500. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows
shows surplus in the
year 2013-14 i.e. 1,876,000.
INCOME:
The actual receipts is more than the budgeted receipts so variation in the receipts in
Rupees.1,33,90,000 so the percentage change of the income is 39.46%
EXPENDITURE:
The actual expenditure is more than the budgeted expenditure so the variation in
Rupees is 1,65,08,500 so the percentage change in the expenditure is 51.50 %. So in this year
actual estimates faces the Deficit in this year.
85
Change in
(Rs)
Change
in (%)
19,197,000
-1,897,000
-3.41
7,013,000
7,227,000
-214,000
-0.38
19,104,000
15,863,000
3,241,000
5.83
Additional Levy
1,096,000
-1,096,000
-1.97
Special Levy
5,291,000
-5,291,000
-9.52
525,000
838,000
-313,000
-0.56
Interest on investment
2,000,000
829,000
1,171,000
2.11
5,325,000
3,279,000
2,046,000
3.68
Misc Income
4,297,000
1,995,000
2,302,000
4.14
55,564,000
55,615,000
-51,000
-0.09
Sl.
No
Budgets
2014-15 (Rs)
Actuals
2014-15 (Rs)
17,300,000
General Levy
Receipts
Total Receipts
Expenditures
1
Payments to workers
36,238,000
36,266,000
-28,000
-0.05
Payments to staff
8,029,000
7,531,000
498,000
0.90
Board's Contribution
6,926,600
7,587,400
-660,800
-1.19
2,111,000
1,993,000
118,000
0.21
Depriciation
694,000
681,000
13000
0.02
Total Expenditures
53,998,600
54,058,400
-59,800
-0.11
1,565,400
1,556,600
8,800
0.016
86
10
5
0
-5
-10
-15
Time Piece
Rent Inter Inter
Gene Addit Speci
Misc
rate rate
on
est
est
ral ional al
Inco
wage wage
offic on
on
Levy Levy Levy
me
s
s
e inv loa
Change in (%) -3.41 -0.38 5.83 -1.97 -9.52 -0.56 2.11
3.68
4.14
Axis Title
% change
Payments
to
workers
Payments
to staff
Board's
Contributi
on
Share of
board's
expenditu
re
Depriciati
on
-0.05
0.9
-1.19
0.21
0.02
NOTE:
RECEIPTS > EXPENDITURES
RECEIPTS < EXPENDITURES
= SURPLUS
= DEFICIT
87
SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)
1,558,000
1,556,000
1,554,000
1,552,000
BUDGETS
ACTUALS
Interpretation:
From the above table we observed that the revised estimates receipts are more than
the expenditures, hence it shows
hows surplus in the year 2014-15
2014
i.e. 1,556,600. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows
shows surplus in the
year 2014-15 i.e. 1,565,400.
INCOME:
The actual receipts are
re more than the budgeted receipts so the variation in Receipts in
Rupees is 51000. So the receipts are increased so the percentage change in income is 0.091 %
EXPENDITURE:
The actual expenditure is more than the budgeted expenditure so the variation in
expenditure
penditure is Rupees. 59800 so the percentage of change in the expenditure is 0.11 % so the
expenditure also increased over the receipts.
88
Incomes
Change in
(%)
Expenditures
Change
in (%)
2010-11
-1676000
-2.01
-4706000
-5.64
2011-12
3158000
8.69
-5836000
-16.05
2012-13
-4659000
-16.23
5622000
19.59
2013-14
13390000
-39.46
-16508500
-48.65
2014-15
-51000
0.09
8800
0.016
Account
UN
REGISTERED
Axis Title
2011-12
2012-13
2013-14
2014-15
Change in (%)
-5.64
-16.05
19.59
-48.65
0.016
expenditures
-4706000
-5836000
5622000
-16508500
8800
Change in (%)
-2.01
8.69
-16.23
-39.46
0.09
-1676000
3158000
-4659000
-13390000
-51000
incomes
89
4.3Capital Budgets
Actual for Five Years
ADMINISTRATIVE BODY - REGISTERED SCHEME
Actuals for the year 2010-11 & 11-12 &12-13 & 13-14 &14-15
ACTUALS
ACTUALS
ACTUALS
ACTUALS
ACTUALS
2010-11
2011-12
2012-13
2013-14
2014-15
(Rs)
(Rs)
(Rs)
(Rs)
(Rs)
Improvements to
office buildings,
call stands &
generators
Water coolers at
AOB & Air
Conditioners
1,22,000
Computers
12,50,000
2,50,000
5,00,000
2,50,000
2,50,000
Furniture &
Equipment
50,000
40,000
10,000
Total
12,50,000
3,00,000
5,00,000
4,12,000
2,60,000
SL.
NO
DESCRIPTION
90
2500000
2000000
Series6
Series5
1500000
Series4
Series3
1000000
Series2
Series1
500000
0
2010-11
2011-12
2011
2012-13
2013-14
2014-15
Interpretation:
For the year 2010-11,, the Actual shows 1,25,0000 and the year 2011-12,, the Actuals
shows
ows 300,000 and the year 2012
2012-13, the actuals shows 500,000 and the year 2013-14,
2013
the
budget shows
ws 4,12,000 and the year 2014-15,
2014
the budget shows 260,000
91
Changing values
Years
2010-11
2011-12
2012-13
2013-14
2014-15
Change
9,50,000
2,00,000
78000
1,52,000
change in Actuals
1000000
800000
600000
400000
200000
0
2010-11
2011-12
2012-13
2013-14
2014-15
15
Interpretation
Wharf age rates are revised downwards for some of the cargo items like food
grains, Aluminum & its products, edible oils, R. R. Materials and increased for
most of the items in the range of 10% to 30%. No hike proposed for crude, POL,
LPG, phosphoric acid, charge
charge chrome, Ferro manganese, etc. Volume discount
scheme is proposed for LPG.
Pollution control charges proposed to be introduced for break bulk cargo also at
0.50 paise per tonne.
The actuarial valuation of pension liability of employees on rolls, pensioner
pensioners and
pension liability of family pensioners is stated to be Rs.865.00 crores. After
adjustment of balances available as on 31
The decrease in the cargo handi
handing Income projections in 2010-11
11 compared to BE
2010-11 despite of increase in traffic projections by 50 lakh tons is mainly due to
decrease in tippled quantity of iron ore due to manual unloading of ore consequent
rd
on major break down of 3 Wagon Tippler, anticipated receipt of ore fines by M/s.
HGPL through slurry pipeline (4.2 MT) (impact is reduction
ion in revenue by
Rs.22.55 crores). Further, diversion of traffic to the BOT operators i.e. VSPL to
the tune of 42 lakh tonnes has an impact of reducing the revenue by Rs.11.50
crores and extension of concessions to coastal cargo by 40% as per the
Government
nt directives will result into Rs.43.08 lakhs reduction in its revenue.
a) Increase in salaries and wages by Rs.306.50 lakhs due to normal increase in wage
bill and operation of 210 vacant posts
b) Increase in stores expenditure by Rs.488.57 lakhs due to steep increase in fuel oil
prices besides normal escalation in other stores & materials and issue of gold
medallions to employees.
c) Increase in dredging expenditure by Rs.209.14 lakhs due to escalation in fuel cost
and anticipated increase in quant
quantity to be dredged
92
BUDGETS
2010-11
BUDGETS
2011-12
BUDGETS
2012-13
BUDGETS
2013-14
BUDGETS
2014-15
(Rs)
(Rs)
(Rs)
(Rs)
(Rs)
Improvements to
office buildings,
call stands &
generators
50,000
Water coolers at
AOB & Air
Conditioners
50,000
150,000
25,000
Computers
1,250,000
1,250,000
1,250,000
250,000
2,50,000
15,000
50,000
Furniture &
Equipment
50,000
50,000
10,000
1,365,000
1,300,000
13,00,000
4,50,000
2,85,000
SL
NO
DESCRIPTION
Total
93
2011-12
2012-13
2013-14
2014-15
Interpretation:
In the year 2010-11 the budgets
bud
is 13,65,000 and in 2011-12 the budgets is of 13
13,
00,000 and in the year 2012-13 the budgets is 13,00,000
1
and in the year 2013-14
14 the budgets
is 4,50,000 and in the year 2014-15
2014
the budgets is 2,85,000
94
Change in budgets
Year
2010-11
2011-12
2012-13
2013-14
2014-15
Change
65000
8,50,000
1,65,000
change in Budgets
1000000
800000
600000
400000
200000
0
2010--11
2011-12
2012-13
2013-14
2014-15
15
Interpretation:
The projection of general cargo includes cargo of VSPL and VCTPL also. If the
general cargo traffic of VPT alone is considered, there is a reduction of 0.36 lakh
tonnes in 2010-11
11 compared to 2011-12. Similarly, there is a reduction of 14.40 lakh
tonnes in 2012-13 and 16.95 lakh tonnes in 2013
2013-14 compared to corresponding
previous years. The same were also indicated in the cost statements and hence the
income appeared to decrease.
The operating expenditure estimates incorporated in the revised cost statements now
furnished
d are as per approved RE 2010-11
2010
and BE2011-12.. The percentage of
increase is 9.38% in 2012-13,
2012
13.62% in 2013-14
14 and 5.42% in 2014
2014-15 over the
corresponding previous years. The percentage of increase is comparatively higher in
2010-11 and 2011-12 in view of wage revision, which
which is due from 01 January 2012.
2012
The impact of wage revision is estimated at Rs. 6 crores for
for 3 months for the year
2010-11 since it is due from 1 January 2011.
20 . Provision of Rs. 10 crores per annum
has been made towards insurance premium as per the decision taken by the Secretary
Shipping in the IPA meeting held on 15 October 2010.
20 . These additional provisions
were not considered while formulating
form
the Budget 2011-12
95
Additional charge at 7.5% of applicable pilotage fee for each movements i.e. either
berthing or sailing. The user Associations have submitted that requisition for
according priority would be given by the concerned steamer agent as and when
priority is required. Whenever priority is sought, pilot should board the vessel within
3 hours of its arrival into port limits / hosting S flag or sailing signals. In case of
delay in boarding the vessel by pilot beyond 3 hours, that particular movement would
not attract any priority charges while the vessel will be accorded priority movement
Alternatively, to levy additional charge at 10% of applicable pilotage fee per call as a
separate charge for all container vessels towards priority charge for berthing and
sailing of a vessel. However, in case pilot cannot board the vessel within 3 hours, the
port may consider refunding the additional charges of 10%.
96
Sl. No
Receipts
Welfare levy
Budgets
2010-11
(Rs)
Actuals
2010-11
Change
in (%)
(Rs)
Change in (Rs)
5,00,00,000
5,30,00,000
-30,00,000
-5.32
10,20,000
6,02,000
4,18,000
0.74
3,30,000
20,000
3,10,000
0.55
Grent-in -aid
15,00,000
10,00,000
5,00,000
0.89
2,50,000
2,00,000
50,000
0.09
Miscellaneous receipts
10,000
10,000
70,000
50,000
20,000
0.035
1,20,000
1,20,000
13,00,000
98,00,000
-85,00,000
-15.07
10
3,75,000
3,00,000
75,000
0.13
5,64,18,000
6,51,02,000
-86,84,000
-15.39
Expenditures
1
A-Welfare
42,36,000
42,48,000
-12,000
-0.021
B-Financial assistants
4,30,000
2,30,000
200,000
0.35
C-Recreation
2,85,000
2,51,000
34,000
0.06
D-Housing
2,18,84,000
2,98,86,000
-80,02,000
-14.18
E-Health
3,52,40,000
2,13,15,000
1,39,25,000
24.68
F-Education
83,29,000
32,07,000
51,22,000
9.08
41,57,000
49,24,000
-7,67,000
-1.36
7,42,61,000
6,70,61,000
72,00,000
12.76
-1,78,43,000
-19,59,000
-1,58,84,000
-28.15
97
Axis Title
0.03
-15. 0.13
Axis Title
0.35
0.06
-14.18
24.68
9.08
-1.36
NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT
Interpretation:
From the above table we observe that the revised estimates expenditures are more
than the receipts, hence it shows deficit in 2010-11 i.e. -19,59,000 where as the actual budget
estimates expenditures are more than the receipts, hence it shows deficit in 2010-11 i.e. 1,78,43,000.
98
Budgets
Sl.
No
Receipts
2011-12
(Rs)
Welfare levy
Actuals
Change in
2011-12
(Rs)
Change
in (%)
(Rs)
4,50,00,000
4,20,10,000
2,990,000
5.94
60,2000
5,17,000
85,000
0.17
20,000
20,000
Grent-in -aid
10,00,000
10,00,000
2,00,000
30,000
1,70,000
0.34
Miscellaneous receiptes
10,000
2,70,000
-2,60,000
-0.52
50,000
40,000
10,000
0.0199
1,20,000
76,000
44,000
0.09
30,00,000
20,00,000
10,00,000
1.99
10
3,00,000
3,50,000
-50,000
-0.099
5,03,02,000
4,63,13,000
39,89,000
7.93
Expenditure
1
A-Welfare
42,04,000
30,48,000
1,156,000
2.23
B-Financial assistants
2,30,000
1,50,000
80,000
0.16
C-Recreation
2,51,000
2,51,000
D-Housing
2,41,22,000
1,60,77,000
8,045,000
15.99
E-Health
2,87,57,000
2,09,39,000
7,818,000
15.54
F-Education
61,57,000
61,55,000
2000
3.97
22,10,000
63,84,000
-4,174,000
-8.30
6,59,31,000
5,30,34,000
12,897,000
25.64
-1,56,29,000
-66,91,000
-8,938,000
-17.77
99
7
6
5
4
3
2
1
0
-1
Rece Welf
Med Misc Sale
Welf ipts are Gren ical ellan of
are from char t-in - atte eous tend
levy work ges aid nda recei er
ers fro
nc ptes for
Change in (%) 5.94 0.17
Rent
on
mar
ket
stall
Inter Shra
est
m
on Shak
inve thi
st Vih
Axis Title
2.23
B-Finan
Ccial
Recrea
assista
tion
nts
0.16
DHousin
g
G-Gen
FADMN
EEducati
and
Health
Expend
on
iture
15.99
15.54
NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT
100
3.97
-8.3
surplus/deficit
0
-2000000
actuals
budgets
-4000000
-6000000
-8000000
-1000000
surplus/deficit
-1200000
-1400000
-1600000
-1800000
-2000000
Interpretation:
From the above table we observe that the revised estimates expenditures are more
than the receipts, hence it shows deficit in 2011-12 i.e. -66,91,000 where as the actual budget
estimates expenditures are more than the receipts, hence it shows deficit in 2011-12 i.e. 1,56,29,000.
101
Budgets
2007 08
Actuals
2007 08
Receipts
(Rs)
(Rs)
Welfare levy
2,77,50,000
1,58,12,000
11,938,000
38.84
51,7000
4,87,000
30,000
0.098
20,000
20,000
Grent-in -aid
3,05,000
-3,05,000
-0.99
30,000
65,000
-35,000
-0.11
Miscellaneous receiptes
20,000
20,000
40,000
75,000
-35,000
-0.11
10,000
72,000
-62,000
-0.20
20,00,000
15,40,000
4,60,000
1.50
10
3,50,000
2,85,000
65,000
0.21
3,07,37,000
1,86,81,000
12,056,000
39.92
Sl.
No
Change in
(Rs)
Change in
(%)
Expenditures
1
A-Welfare
30,86,281
15,52,000
15,34,281
4.99
B-Financial assistants
1,50,000
1,30,000
20,000
0.065
C-Recreation
2,51,000
2,03,000
48,000
0.16
D-Housing
15,86,000
1,69,88,000
-1,54,02,000
-50.11
E-Health
2,04,25,000
2,23,34,000
-19,09,000
-6.21
F-Education
31,53,000
40,80,000
-9,27,000
-3.01
63,33,000
53,11,500
10,21,500
3.32
4,94,27,000
5,22,68,500
-28,41,500
-9.24
-1,86,90,000
-3,35,87,500
-1,48,97,500
-48.47
102
45
40
35
30
25
20
15
10
5
0
-5
Rec Wel
Gre
Wel eipt fare
ntfare s char
in levy fro ges
aid
m fro
Change in
Med
ical
atte
nda
nc
-0.9 -0.1
Axis Title
4.99
B-Finan
Ccial
Recrea
assista
tion
nts
0.065
0.16
DHousin
g
-50.11
NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT
103
G-Gen
FADMN
EEducati
and
Health
Expend
on
iture
-6.21
-3.01
3.32
surplus/deficit
0
-2000000
actuals
budgets
-4000000
-6000000
surplus/deficit
-8000000
-1000000
-1200000
-1400000
-1600000
Interpretation:
From the above table we observe that the revised estimates expenditures are more
than the receipts, hence
ence it shows deficit in 2012-13
2012
i.e. -3,35,87,500 whereas the actual
budget estimates expenditures are more than the receipts, hence
hence it shows deficit in 2012
2012-13
i.e. -1,86,90,000.
104
Change
Budgets
2013-14
actuals
2013-14
change in
(Rs)
in (%)
Receipts
(Rs)
(Rs)
Welfare levy
97,33,000
13,39,000
83,94,000
68.90
5,17,000
6,80,000
-1,63,000
-1.33
20,000
20,000
Grent-in -aid
25,000
60,000
-35000
-2.87
2,000
5,34,000
-5,32,000
-0.044
Miscellaneous receiptes
75,000
13,000
62,000
0.51
1,00,000
72,000
28000
0.23
14,00,000
36,38,000
-22,38,000 -0.18
3,20,000
3,20,000
10
1,21,82,000
1,93,04,000
-71,22,000 -58.46
Sl. No
Expenditures
1
A-Welfare
33,19,000
35,05,250
-1,86,250
-0.015
B-Financial assistants
1,30,000
1,30,000
C-Recreation
2,01,000
1,51,000
50,000
0.41
D-Housing
1,67,77,000
95,69,600
72,07,400
59.16
E-Health
2,29,14,000
2,12,10,000
17,04,000
13.99
F-Education
31,20,500
37,70,000
-6,49,500
-5.33
49,23,000
46,18,600
3,04,400
2.50
5,13,80,500
5,00,54,450
13,26,050
10.88
-3,91,98,500
-3,07,50,450
-84,48,050
-69.35
105
80
70
60
50
40
30
20
10
0
-10
Rece Welf
Welf ipts are Gre
are from char nt-in
levy wor ges -aid
ker fro
Change in (%) 68.9 1.33
Med
ical
atte
nda
nc
Axis Title
B-Finan
Ccial
Recrea
assista
tion
nts
0
0.41
DHousin
g
G-Gen
FADMN
EEducati
and
Health
Expend
on
iture
59.16
13.99
NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT
106
-5.33
2.5
surplus/deficit
0
-5000000
actuals
budgets
-1000000
surplus/deficit
-1500000
-2000000
-2500000
-3000000
-3500000
Interpretation:
From the above table we observe that the revised estimates expenditures are more
than the receipts, hence
ence it shows deficit in 2013-14
2013
i.e. -3,07,50,450
3,07,50,450 whereas the actual
budget estimates expenditures are more than the receipts,
rece
hence
ence it shows deficit in 2013
2013-14
i.e. -3,91,98,500.
107
Change in (Rs)
Change
in
(%)
3,69,97,000
17,58,000
4.075
11,50,000
10,63,000
87,000
0.20
20,000
19,000
1000
2.32
Grent-in -aid
30,000
29,000
1000
2.32
Miscellaneous receiptes
1,00,000
26,79,000
-25,79,000
-5.98
20,000
22,000
-2000
-4.64
1,25,000
1,23,000
2000
4.64
15,00,000
19,05,000
-4,05,000
-0.94
10
4,00,000
3,00,000
1,00,000
0.23
11
Dis by L.O
2,000
2,000
4,21,02,000
4,31,39,000
-10,37,000
-2.40
Budgets
2014-15
Actuals
2014-15
Sl.
No
Receipts
(Rs)
(Rs)
Welfare levy
3,87,55,000
Expenditures
1
A-Welfare
39,82,000
39,80,000
2000
4.64
B-Financial assistants
1,45,000
1,58,000
-13000
-0.030
C-Recreation
1,46,000
1,71,000
-25000
-0.06
D-Housing
2,12,71,000
1,97,60,000
15,11,0000
3.50
E-Health
2,37,80,000
2,39,45,000
-1,65,000
-0.38
F-Education
33,97,000
48,36,000
-14,39,000
-3.33
35,76,000
37,40,000
-1,64,000
-0.38
5,62,97,000
5,65,90,000
-2,93,000
-0.68
-1,41,95,000
-1,34,51,000
-7,44,000
-1.72
108
Axis Title
Med
ical
atte
nda
nc
Axis Title
4.64
B-Finan
CDcial
Recreat Housin
assista
ion
g
nts
-0.03
-0.06
3.5
NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT
109
G-Gen
FADMN
EEducati
and
Health
Expend
on
iture
-0.38
-3.33
-0.38
surplus/deficit
0
-5000000
actuals
budgets
-1E+08
-1.5E+08
surplus/deficit
-2E+08
-2.5E+08
-3E+08
-3.5E+08
-4E+08
Interpretation:
From the above table we observe that the revised estimates expenditures are more
than the receipts, hence
ence it shows deficit in 2014
2014-15 i.e. -14195000
14195000 whereas the actual budget
estimates expenditures are more than the receipts, hence it show
shows deficit in 2014
2014-15 i.e. 1,34,51,000.
110
Incomes
Change in (%)
Expenditures
Change in
(%)
2010-11
-8684000
-15.39
7200000
12.76
2011-12
3989000
7.93
12897000
25.64
2012-13
12056000
38.92
-2841500
-9.24
2013-14
-7122000
-58.46
1326050
-10.88
2014-15
-1037000
-2.4
-293000
-0.068
Axis Title
15000000
10000000
5000000
0
-5000000
-1000000
2010-11
2011-12
2012-13
2013-14
2014-15
change in (%)
12.76
25.64
-9.24
-10.88
-0.068
expenditures
7200000
12897000
-2841500
1326050
-293000
change in (%)
-15.39
7.93
38.92
-58.46
-2.4
-8684000
3989000
12056000
-7122000
-1037000
incomes
111
5.1 SUMMARY
The project entitled by budget and budgetary control in VCHD is divided into 6
chapters.
The first chapter is deals with the introduction to budget and budgetary control
along with the objectives, methodology and limitations of the study. In this chapter the
overall summary was given briefly to understand the total project at a glance. The project
entitled Budget and Budgetary Control with reference to Visakha Cargo Handling
Division at Visakhapatnam Port, has been divided into six chapters to arrange the total
information in perfect manner.
The First chapter includes the introduction, need for the study, objectives of the study and
limitations of the study. Through this chapter we can know the overview of in our day to day
life we face lot of problem about the financial position because of immaterial imbalance of
income and expenditure. Therefore we can stabilize our self with the structure of budget and
budgetary control. In the Introduction (1.1). The details of the budget are a detailed plan of
operation for future period.
It is an estimate prepared in advance for the period of which it applies. It acts as a business
barometer as it is complete programme of activities of the business for the period covered.
The study of budgets undertaken for the purpose of presenting a periodical review or report
by the management and to deal with the state of investment in business and the results
achieved during the period under review. After giving the topic the details of the company,
the topic introduction was given like the definition of the topic co9llected from different
sources and the definition, the importance of the study and use of the study to the company
were clearly explained. This help to understand why the researcher has chosen the topic as his
project.
After the introduction the Need for the Study (1.2) has been explained briefly. In this,
why the financial manager has chosen that the topic and what can she gets from that study
and how it is useful to him is explained briefly. Because without any need the study will not
be conducted. After explaining the need of the study the Objectives of the study (1.3) was
given. In this part, what information the financial position wanted collect and why he wanted
to the project in that particular company and what goal she wanted to reach through this
project has been clearly explained. After explaining the objectives of the study
methodology was given. This clearly explains the data that we are considering.
Finally the Limitations of the study (1.5) were given in the next part. Forever study
there will be some limitation and we may call those as hurdles for the study. The limitations
112
may be the time limits, financial limits or troubles from the environment in this study.
The second is chapter deals with the industry profile. The second chapter includes
genesis and growth of the company, organization structure of the company, all the functional
areas like exports, imports, HR, finance and production, finally the future trends of the
company.
All these functions are explained. In Genesis and Growth of the Company (2.1).
The Government of India has started the Cargo Handling Division keeping in view the
growing contribution of the industry to the economy. This will benefit Cargo growers, the
workers engaged in the sector, CHD and others employed in related activities. It will play a
vital role in modernizing the port and help the country to reap the benefits of enhanced levels
of CHD diversification. Organization Structure (2.2) of the company and its importance
and use has been explained with the organization chart of the company. By using the
organization chart we can understand the position of the management.
In that company and the relation between the superiors and subordinates in the
company. The organization structure can decided the future of the company whether it is
going to be successful or a failure one. After this The Marketing function of the company
has been explained in a very detailed manner. In the marketing strategies of the company and
the technique of the company has been explained. After the marketing function the HR
function (2.4) of the has been explained. In this the company providing education, health
and welfare activities.
After the HR functions the Financial functions (2.5) of the company has been
explained in a very detailed manner. In the financial functions of the company and the
financial technique of the company has been explained. After the financial functions the
production Function (2.6) was explained very clearly point by point. In this chapter the
detail starting from the different types of machines etc. Finally the future trend of the
company also explained.
The third chapter deals with the organization profile of genesis & growth, objectives,
structure of organization, information about various functional departments and organization
at glance. The third chapter includes theoretical frame work. In this chapter, detail
information of the Budget Analysis i.e. optimal utilization of resources, management by
exception,
performance
evaluation,
coordination,
assignment
of
responsibility,
period and then comparing the budget figures with actual performances for calculating
variances if any first of all budgets are prepared and then comparing the budget figures with
actual performances for calculating variances if any first of all budgets are prepared and then
results recorded. The comparison of budget and actual budget figures will enable the
management to find out discrepancies and take remedial measures at a proper time
continuous process which helps in planning and coordination.
The fourth chapter deals with the totally theoretical frame work of the budget and
budgetary control analysis theory and practices of the VCHD which includes comparative
balance sheet, comparative income and expenditure statements, common size balance sheet
and common size income and expenditure statements of the organization. It includes the
Analysis and Interpretation of the study. It contains lot of valuable information regarding the
company.
The fifth chapter is deals with the statements of budgets and budgetary control
analysis and practices of the VCHD in the last five years.
The sixth chapter deals with the summary, findings, suggestions of the overall project.
Then the suggestions are given for the important of the VCHD. It includes the summary,
findings, of the study, suggestions and conclusion which were given to the company.
Summary is a tool to understand the total study of the investigator at a glance very briefly. In
this summary the details of each and every chapter were kept to make the observer
understood the total project clearly. After the summary part the findings of the study part, the
suggestions were given to observations that we have observed through whole the project.
These suggestions may be useful to rectify to the faults of the company. Finally the
conclusion that we have concluded through project. Finally appendix of the analysis and data
interpretation and the bibliography were attached to the project work, which were used to
complete the project successfully.
Visakhapatnam Port started functioning during the year 1933 and later formed into a
Trust under Major Port Trusts Act. In Visakhapatnam Port, there are two major cargo
handling autonomous bodies, viz., Visakhapatnam Port Trust & Visakhapatnam Dock Labour
Board (VDLB). The Visakhapatnam Dock Labour Board was established during 1961 under
Dock Workers (Regulation of Employment) Act 1948. However, during Sep.2008, the
Visakhapatnam Dock Labour Board merged into Visakhapatnam Port Trust (VPT) as one of
its Divisions, as Cargo Handling Division, in Traffic Department.
Ports are commonly known as places of safe shelter with necessary infrastructure for
purpose of trade. In that view there is airports; seaports are gateways to the world. Seaport is
the essential link, in the international maritime transport chain. Seaports play a very
114
important in one countries growth. At present over 80% of all international trade goes up by
sea. In the case of development country like ours percentage of international trade would be
in the range of 70%-80%. So there is an imperative need for all the sea ports in our country to
expand very rapidly to have economic growth and for well being of our country in all its
various factor. Technically speaking port is one which handles not less than one million tone
of cargo annually and which posses harbors and other facilities to receive ships of 4000 DWT
or more. Example: Mumbai, VSP etc.
Visakhapatnam Port is one of the major ports on the eastern seaboard of Bay of
Bengal at a latitude 170 41N & longitude 83018E. It is situated in between Kolkata &
Chennai Ports. It has acted as a catalyst in the process of Industrialization of its hinterland
along with other ancillary industries. The Port plays a dynamic role in fostering accelerated
development in the region shall contributed significantly to the National Development.
Visakhapatnam is one of the best, natural ports in India and its location provides
protection from cyclones, which strikes the east coast regularly during May/November. The
Dolphins Nose hills which is to the south of the entrance channel, Ross and Durga hill
which are to the north of the entrance channel are land forms which provide tranquil waters
for the port for the outer harbor, to artificial break waters provide necessary conditions for
tranquil waters. This low range of a maximum of 1.82 meters this section of the sea is
advantages for the location of the port.
The origin of Visakhapatnam goes back as far as the 6th Century, when it formed a
port of the famous kingdom of kalinga in 6th century A.D. Kalinga was conquered by the
chalulkyas of Bandai and in the 7th century by eastern chalulkyas, which led to the
establishment of the avenge kingdom under Vishnu Vardhan 1 (615 633 A.D.).
Visakhapatnam, the anglicized from of which is Visakhapatnam is an ancient town.
According to the district manual writers 1989, in the early years of 14th Century Kullotunga
choler of the Andhra Dynasty visited the presented site of Visakhapatnam and was so pleased
with the place that he built a temple dedicated to Issaquah. The sea has since engulfed this
temple.
BOARD means a C.H.D LABOUR Board established under section, 5 (A).
CARGO includes anything carried or to be carried in a ship or other vessel.CARGO
HANDLING DIVISION means a person employed in the vicinity of any port of work in
connected with loading, movement or storage of Cargoes or work in connection with the
preparation of ships or other vessels For the Receipt of discharged of cargoes (or) leaving
India is situated at the head of the Indian Ocean with a coast-line of about 3535 miles,
and occupies an important place in the maritime world. There are about 232 ports in India, of
which 12 are major ports, 14 intermediary ports, 132 minor ports and 76 sub-ports.
The Dock Labour Board is directly under the administrative control of the
Government of India. New Delhi. The Visakhapatnam Dock Labour Board is tripartite
115
body, which has representatives from Government side, representatives from employers
(Stevedores) and representatives from trade unions. Under the Dock Workers Regulation
Employment Act of 1959, the registered scheme was established and under the Dock
Workers Regulation Act of 1961, the unregistered scheme was established.
The Dock Labour Board collects levy from the employers for supplying the Human
Resources to them. The levy rate is usually fixed by the government of India out of this levy
the Dock Labour Board pays the wages to the workers and carries out the welfare
programmers for the dock workers. The levy rages are subject to change according to
Government decisions.
The main function of the board is to supply man-power to the employers of both the
schemes for cargo handling operations. Basically, it is labor intensive organization. About,
1500 employees / workers are working in the Board. There is a Board which comprises 12
members having equal representation from Central Government, the Dock workers and the
employers of shipping companies. The Chairman of the Board is the Chief Executive of the
Board. Deputy Chairman is whole time officer of the Board, who looks after the day to day
administration, and the Board is under the control of Ministry of shipping, Government of
India, New Delhi.
A budget is a plan for coordinating the various operations of the business expressed
in financial terms. It is a detailed schedule of prepared combination of various factors of
production which the management deems to be most profitable for the ensuring period.
Budgetary Control is the process of ascertaining several budgeted figures for the
future of a business enterprise and then making comparison of these budgeted figures with
the actual results for finding out discrepancies. The comparison of budgeted and actual
figures will allow the management to take curative actions at a proper time.
116
5.2 FINDINGS
The advantages of budgetary control arise from the objectives of budgeting i.e.,
planning, coordination, and control can be summed up as follows: The most important
advantage of budgetary control is to enable management to conduct business in the most
efficient manner because budgets are prepared to get the effective utilization of resources and
the realization of objectives as possible. Budgetary control takes the help of different levels
of management in the preparation of the budget. Budget finally approved represents the
judgment of the entire organization and not merely that of an individual or a group of
individuals. Thus, it ensures team work. Budget act as a measure of efficiency of departments
and persons working in the organization because budgets provide yard-stick against which
actual performance of departments and employees can be compared. It is helpful in reviewing
current trends in the business and in determining future policy of the business because current
and future trends are studied in the preparation of budgets. It enhances the studying and credit
of the undertaking with the government and the banks because an efficient technique of cost
control is used. Thus, it helps in obtaining bank credit. When we observe the budgets there is
a large variations in actual and revised budgets.
The advantages of budgetary control arise from the objectives of budgeting i.e.
planning, coordinating, and control can be summed up as follows. The most
important advantage of budgetary control is to enable management to conduct
business in the most efficient manner.
According to table no 11 revised estimates expenditures are more than the
receipts, hence it shows deficit in the year 2012-13 i.e. Rs -4,535,400 whereas the
actual budget estimates receipts are more than the receipts hence it shows deficit
Rs -14,816,400.
In the year revised estimates receipts are more than the expenditures, hence it
shows surplus in the year 2014-15 i.e. Rs 1,556,600. Whereas the actual budget
estimates receipts are more than expenditures, hence it shows surplus Rs
1,565,400.
According to Capital Budget registered scheme table no 18 clearly shows that the
117
revised estimates for the year 2013-14 the budget shows Rs 260,000 as against the
budget estimates of Rs 2, 85,000. So the difference of Rs 25000.
Based on the Administrative Un-Registered scheme table no 21 clearly shows that
the revised estimates for the year 2011-12, the budget shows Rs 500,000 as
against the budget estimates of Rs 13, 00,000. So that the difference of Rs 8,
00,000.
Regarding the Administrative body Un-Registered scheme table no 23 clearly
shows that the revised estimates for the year 2013-14, the budget shows RS
2,60,000 as against the budget estimates of RS 2,85,000. So there is a difference
of Rs 25,000.
118
5.3 SUGGESTIONS
Workers of the VCHD are encouraged by making them to their suggestions regarding
the improvement in the production through suggestion their by stimulating creative thinking
of the workers.
VCHD is also following basic procedures and policies for equipment selection,
promotion grievance handling and disciplinary and action. In order to maintain harmonious
labour management relations effective communicated system should be developed by
explaining regarding the organization to the workers and make them to understand the
problems of the management and also mutual trust for the develop between the workers and
management.
Workers satisfaction and workers satisfaction take organization to greater heights so
the management should develop free mind and trust in the workers which will survey lead to
further success.
119
BIBLIOGRAPHY
S. no
Author
Prepare of books
S.P.Jain &
K.L.Narang
I.M. Pandey
Cost accounting
principles &
practices
Financial
Management
M.Y. KHAN
& P.K.JAIN
Tata Mc Graw
Hill
Publishing co.ltd
Prasanna Chandra,
L.M.Bhole
V.A.Avadhani
Himalya Publishers,
Mumbai
Publisher
Magazine
Kalyani
Publisher
Year
Vikas
Publishing
House pvt.ltd
9th Edition
4th edition
Financial
Management
Theory and
Practice
Financial
Institutions and
Market
Marketing of
Financial
Services
REFERENCES
Annual reports of Visakhapatnam Cargo Handling Division
Web site: www.vizagport.com.
120
18th Edition
2005
5th edition
4th edition
6th edition