A

PROJECT REPORT
ON

Monthly Budgeted & Actual review (Plan)

AT

Submitted in partial fulfillment for the

Award of degree of Master of Business Administration

SUBMITTED BY: SUBMITTED TO:

Ms. Pooja Gurjar Ms. Uttara Goswami

(MBA III Sem.)

1
 PREFACE

I had undergone a practical training under “Dainik Bhaskar”. It was a good exposure for
me to undergo training in such a company to get the knowledge and experience regarding
Financial Budgets.

Summer training is one of the major experiencing components of the knowledge, gain of
relevant of information for dealing with situations in a professional course like M.B.A.
where a professional person faces a problem in a field.

To analyze the Dainik Bhaskar Monthly Review Report on Which basis I can make my
Own JUNE month Projected Budget of Dainik Bhaskar With effective Profit Planning &
Cost Cutting.

Hence my study will highlight the Important Area of Costs where company can really have
to look upon.

This project really helped me to analyze the financial tools very closely.

“It is good to have enthusiasm but it is essential to have training. Training can be in all
way of life.” Thus I would say that this training was beneficial educative & good exposure
to me, which will certainly help in my near future. This project was designed with respect
to this company. The project made me to get the enhanced knowledge regarding
Financial Budgets.

2
 Acknowledgement

I express my sincere thanks to my project guide, Mr. Pradeep Soni Designation General
Manager, Department Finance , for guiding me right form the inception till the successful
completion of the project. I sincerely acknowledge him/her/them for extending their
valuable guidance, support for literature, critical reviews of project and the report and
above all the moral support he/she/they had provided to me with all stages of this project.
I would also like to thank the supporting staff of DAINIK BHASKAR Department, for their
help and cooperation throughout our project.

(Signature of Student)

3
 EXECUTIVE SUMMARY

The newspaper is the most popular media in the print category. Today reading newspaper
is a habitual activity for educated people all over the world.
A booming Indian economy literate population on the rise, increasing consumerism, entry
of global brands in the country and opening of the sector to foreign investors would drive
the growth in print media. Also, with newspaper companies entering into newer regions
and segments would lead to stronger growth. Newspaper in India can benefit a lot from
an exchange of ideas within the industry and be learning from other industries as well.
Newspapers are valuable and they can be sustained by making them good brands.
Building the brand value of a newspaper is really important for circulation, audiences and
advertising revenues. In any organization Finance and Accounts department work as
backbone of the organization. As we already know importance of newspaper, I decided to
understand the Financial and Accounting work of the newspaper company. Then we
undergo training in Dainik Bhaskar. I learn here, how Financial and Accounting work is
done. The Finance work in Dainik Bhaskar is based on Budget. A budget is a detailed
plan of operations for some specific future period. It is an estimate prepared in advance of
the period to which it applies.
In Dainik Bhaskar I learn how budget of month for all expenses are made and how actual
expenses incurred is also derived, they also taught us how variance between budget and
actual are calculated and how corrective measure is taken to minimum the variance, if
any.
Budget acts as a business barometer as it is a complete programmed of activities of the
business for the period covered.

4
 CONTENTS

PART I
INTRODUCTION TO INDUSTRY 7
 Industry Scenario
8
 Overview of Newspaper Industry
9

PART II
 COMPANY PROFILE 12
 Bhaskar Group
14
 A Brief History & Success Story
17
 Dainik Bhaskar – Jaipur Position
19
 Dainik Bhaskar – Its Features
20
 Organization Structure

PART III 23

 METHODOLOGY 24

 SAP
25
 ERP

5
26
 Implementation of SAP in Organization
29

 BUDGET
32
 Budgeting

 Calculation of Individual Heads

PART V 66

 FACTS & FINDINGS

67
Graphical Presentations

PART VI

 CONCLUSIONS
72
 SUGGESTION & RECOMMENDATION
73
 BIBLIOGRAPHY
74

6
 INTODUCTION TO INDUSTRY

 Industry Scenario

 Overview of Newspaper Industry

7
 INDUSTRY SCENARIO

A Brief History of Newspapers:- The newspaper as we know it today is a

product borne of necessity, invention, the middle class, democracy, free enterprise, and
professional standards.
Pre-history "newspapers" were one-to-one in nature. The earliest variation on a
newspaper was a daily sheet published in 59 BC in Rome called Acta Diurna (Daily
Events), which Julius Caesar ordered posted throughout the city. The earliest known
printed newspaper was in Beijing in 748.
The 1700s was a century in which market elements were created that encouraged the
development of daily newspapers: rising literacy, the formation of nation-states, a
developing postal system, the proliferation of urban centers, a rising literary and
philosophical tradition emphasizing democratic involvement in government, and
technologies that supported newspaper production. In short, it was a great news century.
The first daily newspaper was The Daily Courant in London, 1702. In 1754, The Daily
Advertiser in London uses the first four-column format. France's first daily newspaper
appears in 1777, Journal de Paris, while the first United States daily was the
Pennsylvania Packet in 1784. In 1878 the first full-page newspaper advertisements
appear, and in 1880 the first photographs are seen in newspapers, using halftones.
By 2000, newspapers were juggling priorities: fragmentation of news consumption,
fragmentation of advertising investments, the advantages and disadvantages of being a
mass medium, balancing the wants of the marketplace with the company's duty to provide
the needs of the marketplace, a journalistic backlash against industry changes, the sheer
physicality of ink-on-paper production and distribution versus digital distribution,

8
increasing profit pressure surrounding the core print product, and extension of the
company's core brand into other profit centers.

Overview of Newspaper Industry

The newspaper is the most popular media in the print category. The newspaper as we
know it today is product born of necessity invention the middle class, democracy, free
enterprise & professional standards.

Today reading newspaper is a habitual activity for educated people all over the world
because of the following reasons:-

1. Information- One major purpose of newspaper is to provide information about

current events. On issue of social, political, cultural and technological importance through
news, articles & advertisement.

2. Education- Another important purpose is to increase the educational level of the

people by providing information regarding medicine, agriculture, history, economics
geography, politics & various other such dimensions.

3. Aims-A Newspaper also aims at protecting the rights of people and creating
awareness among people about their duties and rights. It guards the people interest.

4. Providing Discussion Forum- Yet another aim of newspaper is to provide a

forum for public debate & discussion on matters of general interest.

5. Entertainment- A newspaper also aims at entertaining people through cartons,

puzzles, comedy & other feature pieces.

9
The newspaper is a unique as it is unlike any other commodity whose life is just like for
few hours. It has to be replenished in every 34 hrs.There are two type of consumers of
newspaper; one the reader who are actually consumers or use the final product for their
intellectual, emotional, cultural and informational needs. The other are advertisers who
use space in the pages of newspapers to make announcement, issue public notice, etc.

Today newspaper industry is facing a major threat from broadcast media (TV, radio etc.).
Various channels are introduced where one can receive the news of any happening
instantly and at any moment, and it is also highly preferred medium of advertisement
because of its audio visual qualities. Thus press naturally felt the measure of competition.

The newspaper industry reacted very positively to this situation through better printing
technology and started publishing colored pages. Thus the get-ups and visuals appeal
improved considerably.

They also bring out several local editions, offering more focused target audience &
consequent cost advantages to advertisement. This changing profile of the newspaper
considerably helped the medium in facing the competition emerging from the T.V.

10
 COMPANY PROFILE

 Bhaskar Group
 A Brief History & Success Story
 Dainik Bhaskar – Jaipur Position
 Dainik Bhaskar – Its Features
 Organization Structure

11
 COMPANY PROFILE

VISION MEETS MISSION:-

Bhaskar Dream- “Bhaskar Group has a dream to create a niche for itself in the
international media scenario.”

Bhaskar Group has its roots in India but its action and thoughts are of the world standard.
The groups study the best in the world and implement them as per its local requirement,
which would enable it to emerge as strong media group in the future. Its efforts in this
direction will not be limited to the newspaper alone, It would march ahead with the times
and would reach where its consumer are.

Its group actions and thoughts are based on the following principles:-

1. Entrepreneurship
2. Innovation
3. Ambition
4. Professionalism

Background:

12
The Rs. 4400 crores Bhaskar Group is a leading news services group in India with a
strong presence in the Media Industry, Entertainment, Printing, Textiles, Fast moving
consumer good, oils, Solvent and Internet Services.
Its Media business includes ownership of Print Media, Radio Stations and TV Channels.
The group is the largest read newspaper group of India with a total readership of 2.67 crores, as per
NRS 2006. Its flagship Hindi daily newspaper, Dainik Bhaskar, and the Gujarati newspaper, Divya
Bhaskar collectively make it the largest read daily newspapers. MY FM has already launched In
Jaipur, Chandigarh and Jalandhar and will soon be available in a total of 17 cities , it would be the
4th largest FM station network of the Country. DNA launched jointly with the Zee Group has
already achieved the distinction of being Mumbai’s Second largest English daily.
DAINIK BHASKAR is a big name in the print media. Bhaskar Group has a dream to create a
niche for itself in the international media scenario.

It efforts in this direction marching ahead with the times and reaching where its consumer are.
Bhaskar Group

A 4400 crore media house with 10000 manpower strengths & 160 offices all over India
has 6 daily newspaper, 2 stand-alone weeklies & 1 magazine in 10 states of the country.
Bhaskar is the largest read newspaper group containing 28% potential of India with
Bhaskar markets. The company board consists of:-

 Chairman - Ramesh Chandra Agarwal

 Managing Director - Sudhir Agarwal
 Directors - Girish Agarwal & Pawan Agarwal

Daily Newspapers (Broadsheets):-

 Dainik Bhaskar
 Divya Bhaskar
 Saurashatra Samachar
 Prabhat Kiran

13
 DNA & DNA Money.

Weeklies (Tobloid):-

 New York and Indore Editions.

Magazines:-

 Monthly- Aha! Zindgi!- Hindi&Gujarati& Lakshya (New Magazine)

 Bi- Monthly- Young Bhaskar, Bal Bhaskar

T.V.:-
 BTV

Activations:-
 DB Aktivations

Radio:-
Synergy Media Entertainment Ltd (FM Radio) is a wholly owned company of the Bhaskar
Group has acquired FM Radio Licenses in 7 states, 17 cities.

The stations are operational in

 Madhya Pradesh: Indore, Bhopal, Gwalior, Jabalpur.

 Chhattisgarh: Raipur, Bilaspur.
 Rajasthan: Jaipur, Jodhpur,Udaipur, Kota, Ajmer.

14
 Gujarat: Ahmedabad, Surat.
 Punjab: Jalandhar, Amristsar, Chandigarh.
 Maharashtra: Nagpur.

The Brand is now “94.3 MY FM jiyo dil se”

The group uses latest ERP Solution application Product (SAP) to integrate all
departments in every edition of newspaper. All centers are interconnected through leased
lines and Centrex facility.

Diversification:-
Beside print media, the group has diversified into:
 Textiles

 Oil Extraction & Refining

 FMGC

 Cable TV

 Broadband

 Family Entertainment

 Art & Culture

 Event

 Promotion & Real Estate

 Shopping Mall.

In order to raise equity for further expansion, the group is planning to list on the stock
exchange and is going for an IPO very soon.

15
 A Brief History & Success Story

Dainik Bhaskar:
The fastest growing print media in the country today began its journey with a four page
newspaper from Bhopal [MP] in 1958 as one of the business by the late Dwarka Parasad
Agarwal, the father of the Chairman, Shri Ramesh Chandra Agarwal. Ever since, Dainik
Bhaskar launched. Its editions one after the other in MP Gwalior in 1967, Indore in 1983,
Jabalapur in 1987.

Further, it launched its edition from Raipur in 1992 followed by Bilaspur in 1993. This was
the time when Rameshji officially inducted Shri Sudhir Agarwal and his younger brother
Shri Girish Agarwal in the business. Shri Sudhir Agarwal had a passion for editorial & Shri
Girish Agarwal preferred to take part into core marketing.

After achieved No. 1 status and strong leadership in 1995 in MP, the group identified
RAJASTHAN as a potential market in Dec. 1996, launched its Jaipur edition with net paid
sale of 1,72,933 copies on day 1. JAIPUR launch of Dainik Bhaskar created a history in
the Newspaper industry, which is now a “case study” In the top business school of India.

Since 1996 father & sons began transforming the group into a customer centre
organization. Keeping this in mind, Dainik Bhaskar launched its Chandigarh edition in
mid 2000 adapting Hinglish language pattern in editorial contents. Today it is the No.1

16
newspaper in Chandigarh, Panchkula & Mohali. In the same year Bhaskar entered
Haryana & Captured the spillover market by launching its edition in Panipat & Hissar
Followed by Faridabad edition.

After achieving the leadership position in Hindi belts, the group entered into the state of
Gujarat a non Hindi Market, where local player were formidable. The group launched its
Gujarat, newspaper, Divya Bhaskar in Ahmedabad in June 2003 is a ‘Case study with IIM
AHMEDABAD for its first day net paid sale of 4, 52,000 lakh copies.
After setting many new trends in Hindi & Gujarati market, Bhaskar group in association
with Zee, launched Its English newspaper DNA [Daily News & Analysis] in July 2005 with
a circulation of 3 lakhs + copies Per day.

In September 2004, the group had also launched a monthly complete Hindi magazine
‘Aha Zindigi’ for Positive and good life. Today the magazine enjoys circulation of 1.35
lakh copies with 5.95 lakh readers.

Recently on 7th June, 2008 the group successfully launched DNA JAIPUR edition. And on
6th June the group celebrated 3 years completion of its Daily supplement CITY
BHASKAR.

As of today Bhaskar group is a 4400 crore company.

17
 DAINIK BHASKAR - JAIPUR POSITION

Dainik Bhaskar was launched on 19 th Dec. 1996 in Jaipur. Its market share in Jaipur is
60%. Its price in Jaipur City is Rs. 2.25 containing 24 pages and price outside Jaipur is
Rs. 2.00 containing 16 pages.

Its main competitior in Jaipur is Rajasthan Patrika. Jaipur office of Dainik Bhaskar has
some separate units like “My F.M.”, BTV and “Aha Zindagi”. It has state of art technology
for printing purpose, and Dainik Bhaskar at Jaipur is headed by Mr. Pawan Agarwal.

Before launch of Dainik Bhaskar a survey is conducted to find the taste & performance of
the customers. Its design is based on requirements of customers. Its initial customers in
Jaipur were 80,000.

It adopted many strategies before and after its launch. It run many promotional
campaigns with the help of hoardings at prime locations like theatre, temples, flyovers,
malls and also conducted road shows. It used manpower banners at different locations.
It has support of Bhaskar T.V.

It distributed gifts, discounts & gave many scheme like subscription, free calendar etc. It
also used posters for publicity. It run a 45 day campaign to increase the circulation in
which they conducted many events, games, road shows etc. which made its circulation
doubled of Rajasthan Patrika.

18
 DAINIK BHASKAR - Its Features

 Address :
Registered Office & Factory work –
11, Opposite Vidya Ashram School,
J.L.N. Marg, Malviya Nagar,
Jaipur – Rajasthan.

 Major Suppliers:
 M/s Rama Newspaper

 Nepa Mills

 Hindustan Ink

Newsprint material is purchased from Delhi & Mumbai. Foreign Newsprint material comes
from Mumbai, Surat & Nepanagar.

 Major Buyers :
Major buyers of the newspaper are the Jaipurites.

 Major Competitors:
Rajasthan has been a state which continued to be an exclusive domain of a particular
newspaper. “Rajasthan Patrika” for the past 50 years. Attempts even by giants like “The
Times of India” to make a dent in this territory proved futile as it failed take off.

 Market Share:

19
In a recent survey conducted it was found that 8 out of 10 readers subscribe to
DAINIK BHASKAR.

 Product Profile:
The product is a Hindi Daily. The news is quality oriented and the coverage is wide
enough to cover almost every aspect. Dainik Bhaskar was the first newspaper to come
up with the concept of colored front Hindi Daily.

 Supplements & Magazines :

 City Bhaskar & Women Bhaskar:

It is daily supplement with 6 numbers of pages with the main newspaper. It
was launched in June 2005.

 Navrang & Madhurima:

Both are the weekly supplements which Dainik Bhaskar issue every Saturday &
Wednesday. Navrang consists of 4 pages & Madhurima is of 8 pages.

 Rasrang:
It’s a Sunday supplement. It contains the mix news for every customer.
It is of 4 pages.

 SHE Magazine:
It was launched on 8th June 2008 all over India. It is printed at Noida & its matter is from
Bhopal. It is magazine targeted towards women customer with 40 No. of pages pricing
Rs.5

 Aha Zindagi :
In September 2004, the group launched a monthly complete Hindi Magazine
Aha Zindigi for positive & good life. The print office is in Noida. It is of 84 pages & priced
Rs.25.

20
 Lakshy:
It is a career magazine targeting to students mainly. It is monthly magazine of 68
pages pricing Rs. 10 only.

 DNA:
After setting many new trends in Hindi & Gujarati market, Bhaskar group in
association with Zee, launched its English newspaper DNA [Daily News Analysis] in July
2005.

 Distribution Channel :
They have ten channels for distribution, 30% to 40% share are given to distributors.
Company has its own Taxies for transportation. It has its sales depot. The company has
its agents all over Rajasthan.

 Source of revenue :
Main source of revenue is through advertisements.

 Different agencies for advertisements:

1. Shakun Ad agency
2. Accurate Advertisement Consultancy
3. Pink City Advertisement Co.

 DIFFERENT AGENCIES FOR NEWS :

1. PTI
2. UNI

21
 Departmentalization :
The job functions of the employees in the organization are divided among them &
combined in a logical ways. Employees with related functions usually share a common
work area and constitute a work unit.
Departments are therefore constituted as:

 Editorial Department

 Advertising Department

 Printing & Processing Department

 H R & Admin Department

 SMD Department

 F & A Department

ORGANIZATIONAL STRUCTURE
Dainik Bhaskar has ten units in Rajasthan. Namely Jaipur, Sikar, Alwar, Jodhpur,
Udaipur, Kota, Ajmer, Bhilwara, Bikaner, Sriganganagar. It has six vertical departments.
Reporting is done in two ways first is Administrating reporting to unit heads & second is
functional reporting. So it has mainly functional type of structure. The structure is like
this:- Dainik Bhaskar
(Jaipur-State Office)

Manageme
Editorial
nt

H.R. & Administration Production

Finance & Accounts

Ad. & Sales

22
SMD
 METHODOLOGY

 SAP
 ERP

23
 METHODOLOGY

The methodology adopted in Dainik Bhaskar is SAP.

What is SAP?
SAP R/3 is popular ERP software from the German-based company SAP AG.
The acronym of SAP stands for “Systems, Applications & Products in data processing”
R/3 is a Client-Server three-tiered Architecture Base, which is introduced in 1992.
The R/3 System’s three-tiered client/server architecture separates the system into areas
devoted to database, application functionality, and desktop presentation.

About ERP:
“In the era of stiff competition, demanding customers and shrinking margins, it is
important for a brand to acquire and retain the best.”

24
Being the leading media house, we ensure correct information exchange at every stage
and every level in its day- to-day execution.
 What is ERP?
 Role of Integration in ERP
 ERP Improves Productivity
 Implementation of an ERP System

What is ERP?

ERP stands for Enterprise Resource Planning.

“It is process-oriented information system for identifying and planning the enterprise wide
resources needed to take, make, ship and account for customer orders.”
Enterprise Resource Planning (ERP) systems attempt to integrate several data sources
and processes of an organization into a unified system. A typical ERP system will use
multiple components of computer software and hardware to achieve the integration. A key
ingredient of most ERP systems is the use of a unified database to store data for the
various system modules.
ERP is package software solution that addresses the enterprise needs of an organization
by tightly integrating the various functions of an organization using a process view of the
organization. It is package software and not custom made software for a specific firm. It
understands the needs of any organization within a specific industry segment. Many of
the processes implemented in an ERP software are core processes such as order

25
processing, order fulfillment, shipping, invoicing, BOM processing, purchase order
processing, preparation of Balance Sheet, Profit and Loss statement etc., that are
common to all industry segments. That is the reason why the package software solution
works so well. The firm specific needs are met through a process of customization. ERP
addresses not merely the needs of a single function such as finance, marketing,
production or HR. Rather it addresses the entire needs of an enterprise that cuts across
these functions to meaningfully execute any of the core processes.
ERP integrates the functional modules tightly. It is not merely the import and export of
data across the functional modules. The integration ensures that the logic of a process
that cuts across the function is captured genuinely. This in turn implies that data once
entered in any of the functional modules (whichever of the module owns the data) is
made available to every other module that needs this data. This leads to significant
improvements by way of improved consistency and integrity of data. ERP users the
process view of the organization in the place of function view which dominated the
enterprise software before the advent of ERP. The process view provides a much better
insight into the organizational systems and procedures and also breaks the "kingdoms"
that work at cross-purposes in many organizations. To implement such a demanding
software one needs high performance computing, high availability systems, large, high
speed high availability on line storage and high speed, high reliable net works, all at
affordable cost. Though many ERP software vendors have been around for more than
two decades, ERP software started to make major inroads into the corporate world only in
the last couple of years. Interestingly Indian corporate houses are taking the ERP route
exceptionally fast, even by world standards in the past two years.
Thus, it is an industry term for integrated, multi-module application software packages
that are designed to serve and support multiple business functions. It attempts to
integrate all departments and functions across a company to create a single software
program that runs on one database. ERP modules may be able to interface with an
organization’s own software with varying degrees of effort, and depending on the software
ERP modules may be alterable via the vendor’s proprietary tools as well as proprietary or
standard programming languages.

Advantages of SAP Implementation:

26
1. The R/3 System will bring a common platform that covers all commercial
processes and transactions commonly occurring in a company or group of companies so
that every people can speak one language.
2. Better-informed environment
3. Integrate and optimize business processes.
4. It will avoid the interaction among the people, which might leave chaos or
misunderstanding.
5. Management can have each information at their fingertips. SAP System
provides up-to-the-minute, real-time information wherever and whenever you need it
6. Increase productivity at desired level
7. Optimum and effective utilization of available resources to respond market
need
8. To reduce the throughput cycle (Gap between demand and supply)
9. Well-controlled and balanced financial management
10. Single source for your financial information
11. Capturing your business transactions in one location allows you to easily
review inventory, customer and vendor activity
12. On the technical side, a solution on a single platform will enable easier
maintenance and support, reducing costs.
13. Having a consolidated system means fewer interfaces to support
14. By having a single system of record your human resources will become familiar
with terminology associated with this data and the standard processes.
15. This may improve communication and create a work force that is easier to
transfer between roles
16. Improve alignment of strategies and operations by running the enterprise in
accordance with strategy and plans, accessing the right information in real time to identify
concerns early.
17. Improve productivity and insight
18. Find the best people and leverage their talent in the right job at the right time.
19. Achieve corporate objectives by aligning workforce and organizational
objectives.
20. Leverage self-services and analytics across your organization.

27
21. Improve operational efficiency and productivity within and beyond your
enterprise.
22. Give employees new ways to access the enterprise information required for
their daily activities.

Implementaion of SAP in the Organization

ORGANIZATION STRUCTURE:

The organization structure for controlling is “DBCA”.

Controlling area is related to costing and MIS reporting.
All Company codes are assigned to only controlling area i.e. “DBCA”.

1.1 Cost center :

Cost center is an organization unit, which captures actual and planned (Budgeted) costs.
In DBCA we have defined cost centers on the basis of center and products.
Example: Bhopal Dainik Bhaskar Production
Bhopal Dainik Bhaskar Editorial
Jaipur Dainik Bhaskar Production
Jaipur Dainik Bhaskar Marketing Etc.

2.1 Internal Order :

Internal order is also an organization unit which captures actual & planned cost. Internal
order capture can capture sales revenue also where as cost center can capture only
Cost.
3.1 Profit Center :

Profit Center is also an organizational unit, which displays Revenue, Cost & Profit.
In PCA, we can have certain balance sheet values also.
In DBCA we have defined profit center based on Center & Product.
Example:Bhopal Dainik Bhaskar

28
 Bhopal City Bhaskar
Jaipur Dainik Bhaskar
Jaipur City Bhaskar
Bhopal Aha Zindgi
Jaipur Madhurima, likewise.
Cost centers and profit centers are codified so that the digits indicates center and product
for example
P100100 P=Profit Center first 3 digits that is 100 indicates Bhopal Center, next 100
indicates Dainik Bhaskar(Product)
P200100 p=Profit Center first 3 digits that is 200 indicates Jaipur Center, next 100
indicates Dainik Bhaskar (Product)

All profit center codes will begin with ‘P’ and all cost center values will begin with ‘C ‘
All the above objects are grouped to facilitate MIS reporting.

1.1.02 Cost Center Reporting :

In cost center reporting we have actual plan variance reports for a cost center & group of
cost centers.

The report can be had both for the month & YTD basis.
The menu path & Transaction codes as follows:

Menu Path: Sap Easy > Information System > Controlling > Report for Cost Center
Accounting > Plan/Actual > S_ALR_87013611

29
30
 BUDGET

 Budgeting
 Important Heads comes under Monthly & Annual Report
of Dainik Bhaskar
 Calculation of Individual Heads

31
 BUDGET

A budget is defined as a “comprehensive and coordinated plan, expressed in financial

terms, for the operations and resources of an enterprise for some specified period in the
future”.
A budget is a money plan. With it, you can organize and control your financial resources,
set and realize goals, and decide in advance how your money will work for you. A budget
can be as simple as it is powerful.
The basic idea behind budgeting is to save money up front for both known and unknown
expenses.

Budgeting:
“Budgeting or profit planning is a detailed plan of action during a period of one year, one-
month or less.”

Introduction:
Profit plan (Or Budget) is a short term financial plan. It is an action plan to guide
managers in achieving the objective of the firm.
Thus a profit plan is a comprehensive and co-ordinate plan, expressed in financial terms,
for the operations and resources of an enterprise for some specific period in the future.

Objective of Profit Planning:

1. To state the firms expectations (Goals) in clear and formal terms to avoid
confusion and to facilitate their attainability.
2. To communicate Expectation to all concerned with the Management of the firm
so that they are understood, supported and implemented.
3. To provide a detailed plan of action for reducing uncertainty and for the proper
direction of individual and group efforts to achieve goals.

32
Types of Budgets:
1. Operating Budgets
2. Financial Budgets
3. Special Decision Budgets
4. Fixed / Static Budgets
5. Flexible / Variable / Sliding Budgets

Elements:
1. It is comprehensive and co-ordinate plan.
2. It is expressed in financial terms.
3. It is a plan for the firms operation & resources.
4. It is a future plan for a specific period.

Seven Benefits of Budgeting

Know What is Going On: Personal budgeting allows you to know exactly how much
money you have. Furthermore, a budget is a self-education tool that shows you how your
funds are allocated, how they are working for you, what your plans are for them, and how
far along you are toward reaching your goals. "Knowledge is power," as the oft-quoted
saying of George Eliot goes, and knowing about your money is the first step toward
controlling it. That leads us to our next benefit.

Control: A budget is the key to enabling you to take charge of your finances. With a
budget, you have the tools to decide exactly what is going to happen to your hard-earned
money—and when. You can be in control of your money, instead of having your money
limit what you do. This bears repeating: you can be in control of your money, instead of
letting it control you.

33
Organization: Even in its simplest form, a budget divides funds into categories of
expenditures and savings. Beyond that, however, budgets can provide further
organization by automatically providing records of all your monetary transactions. They
can also provide the foundation for a simple filing system to organize bills, receipts, and
financial statements.

Communication: If you are married, have a family, or share money with anyone,
having a budget that you both (or all) create together is a key to resolving personal
differences about money handling. The budget is a communication tool to discuss the
priorities for where your money should be spent, as well as enabling all involved parties to
"run" the system.

Take Advantage of Opportunities: Knowing the exact state of your personal

monetary affairs, and being in control of them, allows you to take advantage of
opportunities that you might otherwise miss. Have you ever wondered if you could afford
something? With a budget, you will never have to wonder again—you will know.

Extra Time: All your financial transactions are automatically organized for tax time, for
creditor questions, in fact, for any query which may come up regarding how and when
you spent money. Being armed with such information sure saves time digging through old
records.

Extra Money: This might well be everyone's favorite benefit. A budget will almost
certainly produce extra money for you to do with as you wish. Hidden fees and lost
interest paid to outsiders can be eliminated forever. Unnecessary expenditures, once
identified, can be stripped out. Savings, even small ones, can be accumulated and made
to work for you.

34
 BOOKS OF ACCOUNTS IN GENERAL

COMPANY’S Accounting policies are framed to ensure control in the main activities like:-

News print Purchase & Consumption

Circulation

Production & waste control

Job Work

Advertisement

Events/ DB AKTIVATION

Operating Expenditure

Capital Expenditure

Financing

35
 BOOKS OF ACCOUNTS GENERAL
IN ORGAINZATION

 Books are maintained at various centers.

 Activities which are related to Advertisement are controlled by SAP. From

August onwards all accounts will be controlled by SAP (Finance, marketing, H.R. or I.T.)
 Monthly Circulation is controlled by SAP.

 Consolidated entries on monthly are made in financial books in respect of

circulation & advertisement.
 Others transaction are recorded directed in tally.

 Balance sheet is prepared for each main center on monthly basis.

 Analysis is made on each activity level.

 Analysis is made at product level also.

 Consolidation is made at regional level & H.O. level.

TYPES OF DOCUMENTS MAINTAINED

 JOURNAL ( Debit note/ Credit note )

 CONTRA
 CASH (Receipt & Payment)
 BANK (Receipt & Payment)
 Purchase
 SALE

36
 COMPANY POLICIES AGAINST INVENTORY MANAGEMENT
 We follow FIFO method for issue of Newsprint reels.

 Ageing analysis is done as 0-15, 15-30 days, 30-60 days, 60-90 days, and 90-
180 days and above.
 We keep material quality wise separately i.e. Imported SNP, Imported GNP,
Rama Type, Indian A Type, Indian B Type and others (LWC, Art papers, ABC Gold, etc..)
 We keep damaged material and material rejected, by production manager
separately centers informed to the H.O. and material will be disposed as per the norms of
the company.
 We take fire floater insurance policy for fire, earthquake flood etc. we file
monthly declarations to insurance company and revise our policy from time to time to
maintain the coverage of Godown stocks.
 We take daily stock position and daily consumption report from all publishing
centers and supplements printing centers.
 We maintain group coverage Indian newsprint stock level for 10 days
depending upon the distance from centers from the mill, stock level of centers may vary
make wise.
 Daily stock report copy is sent to H.O. Bhopal for groups compel- nation
planning.

Process of Newsprint Wastage Material

 News print wastage is generated at the time of issue newsprint, during

production process.
 There are four types of wastage, i.e. print wastage layer, core (bhongla),
and scrap.
 News print in charge, receives wastage from production department and
rewinding room on daily basis

37
 Important Heads comes under Monthly & Annual
Report of Dainik Bhaskar

OPERATING EXPENSES
A. PRODUCTION EXPENSES

1. PRODUCTION MATERIALS
1.1 Ink Consumed
1.2 Plate consumed
1.3 LPF consumed
1.4 Tracing paper consumed
1.5 Fountain Solution
1.6 Other prod. Material
1.7 Packing Material Cons.: Polythenes
1.8 Packing Material Cons.: Others
1.9 Printer Toners cons. - prod.

2 OTHER PRODUCTION MATERIAL

2.1 Electricity Consumption
2.2 D.G. Fuel

3 MACHINE MAINTENANCE
3.1 D.G. Maintenance
3.2 Multi Wash / Nova Wash
3.3 Dhotis
3.4 Blankets
3.5 Rubber Roller Maintenance

38
3.6 Repair & Maintenance P. & M.
3.7 A.M.C. - Plant & machinery
3.8 Repair & Maintenance - Electric
4 LOADING UNLOADING & FREIGHT

5 BINDING CHARGES

B. NEWS EXPENSES

1. AGENCY PAYMENTS
1.1 PTI

2. NEWS EXPENSES
2.1 Payments for Photographs
2.2 Payments to Stringers / Correspondents

C. PERSONNEL COST

1. SALARY (REF.) Salary Budget

1.1 Gross Salary
1.2 EPF (Employee Providend Fund)
1.3 ESI
1.4 Mobile Expenses (Fix & Actual Basis)
1.5 Vehicle Fuel Maintenance & Insurance

39
1.6 Annual Benefits
1.7 Bonus / Ex-Gratia (Diwali)
1.8 Overtime Payment

2 STAFF WELFARE EXPENSES

2.1 Canteen & Pantry Expenses
2.2 Medical Expenses (Other than Mediclaim)
2.3 Mediclaim Policy’s Premium
2.4 Pooja Expenses
2.5 Marriage Gift

3. OTHER SALARY PAYMENTS

Gratuity
Leave Encashment

D. OFFICE & ADMINISTRATION EXPENSES

1.1 Main Office/ Press Rent
1.2 Godown Rent
1.3 Postage & Courier
1.4 Telephone: Landline
1.5 Internet Expenses
1.6 Printing & Stationary
1.7 Photocopy Expenses
1.8 Traveling Expenses

40
1.9 Conveyance Other than salary
1.10 Guest House Expenses
1.11 Security Expenses
1.12 House keeping Expenses
1.13 Gardening Expenses
1.14 Water Expenses
1.15 Repair & Maintenance (Building)
1.16 Repairs & Maintenance Office Equipment & Others
1.17 Repairs & Maintenance–Computer & UPS
1.18 Annual Maint. Contracts (AMC) –Computer & UPS
1.19 Legal & Professional Fees
1.20 Legal & Professional Expenses

E. S.M.D. EXPENSES
1.1 Circulation Jeep Expenses
1.2 Rent of Circulation Centers

F. BUSINESS PROMOTION EXPENSES

1 Barter Expense

G. CITY & BUREAU EXPENSES

H. OTHER EXPENSES
1.1 Internal Audit Fees

41
1.2 Statutory Audit Fees

Calculation of Individual Heads

A. PRODUCTION EXPENSES

1. PRODUCTION MATERIAL:

1.1 Ink- Ink is an important part of print media. The Coloured and Black & White
pages we saw in newspaper are result of ink. Ink provides colour to pages and also the
news is printed with the help of ink. The requirement of ink in printing depends upon the
following things:-
1. Print Order (P.O.)
2. Pagination (No. of Pages)
3. Days
4. Ink Mileage
There are four types of ink used in print media, these are:-
 Black
 Magenta
 Cyan
 Yellow
These four types of ink are used to from multi colours in newspaper quantity of ink used
are calculated with the help of following formulae:-

42
General Calculation:

 Ink Consumed = Total Number of Pages / Mileage * Rate of Ink

 Black Ink = Total Number of Pages / Black Mileage * Rate of Black Ink

 Cyan Ink = Colour Pages / Colour Mileage (Cyan) * Rate of Colour Ink

 Magenta Ink = Colour Pages / Colour Mileage (Magenta) * Rate of Colour Ink

 Yellow Ink = Colour Pages / Colour Mileage (Yellow) * Rate of colour

Ink
A newspaper is a combination of both black and while and coloured pages. The numbers
of pages are calculated with the help of following formula:-
 For Total Pages = Total Print Order * No. of Pagination * Days

 For Coloured Pages = Total Print Order * No. of Coloured Pages * Days

Ink Calculation- For 15 Pages and 80000 Copies

10 Colour + 5 Black & White
Days = 30
No. of Black & White Pages = 15 * 30 * 80000 = 36000000
No of Colour Pages = 10 * 30 * 80000 = 24000000

 Black Ink = 36000000 / 18000 = 2000 Kg.

Cost = 2000 * Rs. 50 = Rs. 100000
 Yellow Ink = 24000000 / 25000 = 960 Kg
Cost = 960 * Rs. 150 = Rs. 144000
 Cyan Ink = 24000000 / 40000 = 600 Kg
Cost = 600 * Rs. 150 = Rs. 90000
 Magenta Ink = 21000000 / 35000 = 686 kg
Cost = 686 * Rs. 150 = Rs. 102900

Budget for All Types of Ink-

Black = Rs. 100000
Yellow = Rs. 144000

43
Cyan = Rs 90000

1.2 Plates- Plates are very important in print media. Plates are used for seeing
impression of printing material before actual printing is done:

Plates Required in the Printing Machine:

Machines- 4Hi 3C 3C Mono Mono
Pages- 4 2+2 2+2 2 1
Plates- 5 4 4 2 0.5

Calculation of Number of Plates Required in Month is as Follows:-

 Basically 2 colour page require 4 plates,

 Let us suppose that a newspaper contains 15 pages i.e., 15 printed pages,
then the number of plates required is as follows:-

 4 Plates - 2 Coloured Pages

 4 Plates - 2 Coloured Pages

 4 Plates - 2 Coloured Pages

 4 Plates - 2 Coloured Pages

 4 Plates - 2 Coloured Pages

 1 Plate - 2 Black & White Pages

 1 Plate - 2 Black & White Pages

 1 Plate - 2 Black & White Pages

 0.5 Plate - 1 Black & White Page

Total Required Plates = 22.5
Rate of One Plate = Rs. 100
Requirement per Month = 22.5 * 30 =675 Plates
Budget for Month - 675 * 100 = 67500

44
1.3 LPF- LPF is a butter paper which is used in colour pages. It is used for
printing coloured impressions on the plate.
 Per Page per Colour = 2 LPF
 1 Plate Requires = 4 LPF

LPF Required in the Printing Machine:

Machines- 4Hi 3C 3C
Pages- 4 2+2 2+2
Plates- 5 4 4
LPF- 20 16 16
 52 LPF are requires for 1 Day

 For 1 Month LPF Required = 52 * 30 = 1560 LPF per Month

 1 Packet of LPF Contains = 100 LPF Sheets

 Cost Of 1 Packet = Rs. 600

Budget for Month - 1560 / 100 * 600 = Rs. 9360

1.4 Tracing- Tracing is used for printing black and white impressions on the
plate.

Tracing Sheet Required in the Printing Machines:

Machines- Mono Mono
Pages- 2 1
Tracing Sheet- 4 2
 Tracing Sheet required per month:- 6 * 30 = 180

 1 Packet contains 250 Tracing Sheets and cost of each packet is Rs. 700
Therefore,
Budget for Month - 180 / 250 * 700 = Rs. 504

45
1.5 Fountain Solution- Fountain Solution is a chemical which improves
quality of printing. Fountain Solution improves hardness of water, improves mileage of ink
colours. This chemical is required in liters.
Suppose 80000 copies of newspaper have to be printed. On an average number of pages
in a newspaper are 15.
Therefore,
Total Pages to be printed – 80000 * 15 = 1200000 Pages
Now, Fountain Solution required per day is calculated as below:-
Water Tank Capacity = 200 Litres
Water required per day = 150 Litres
Requirement of solution = 1.5% of Water tank capacity
Therefore,
1.5% of 150 Liters = 2.25 Liters
Rate pf solution per Liter = Rs. 35
Cost of Solution required per day = 35 * 2.25 = Rs 78.75 or Rs. 79
Requirement of Solution in a month = 2.25 * 30 = 67.5 Liters
Budget for Month – 67.5 * 35 = Rs. 2362.50

1.6 Packing Material (Polythene Bags)- Packing Material is essential

for packing of newspaper in rainy season. There is a gear of spoilage of finished goods
i.e., newspaper (as it is finished goods for the print media).For prevention of spoilage of

newspaper packing material is used.

As a precaution packing material is also used in other seasons also.

For making budget of packing material the calculation shown below is used:-
Let average page order = 80000
1 Bundle contains= 150 Polythene
Therefore,
No of bundle used per day=Average Page Order / Copy in 1 Bundle
80000 / 150 = 533 Bundles per Day
No. of Polythene Bag per Kg. is 35

46
Therefore,
Polythene required per Day in Kg is = No of Bundles per Day / No. of Polybags
533 / 35 = 15.2
Publishing Days in Month 30 Days
Therefore Total requirement in the month = 30*15.2 = 456 Kg
Rate of Polythene per Kg = Rs. 100
Therefore,
Budget for Month- 456 * 100 = 45600

1.7 Other Packing Material- Other Packing Material is also used for
efficient packing of newspaper. Other packing material like Strip Role is used for binding
the bundle.
Suppose that print order = 80000 Copies
No. of strips in Bundle = 200
Total No. of Bundle = 80000/200 = 400
1 Strip contains = 2.00 Meter Strip
Per day requirement = 400 * 2 = 800 Meter
Requirement for a month- 800 * 30 = 24000 Meter
1 roll contain 2000 meter strip
Total strip in month = 24000 / 2000 = 12 Roll
Rate = Rs. 350
Budget for month- Rs.350 * 12 = Rs 4200

1.8 Printer Tonner-Production- Printer Tonner is also an essential

material used in printing of a newspaper.
One single printer Tonner gives 150 impressions per print out.
Mileage of Tonner = 3500
Requirement of Tonner per month – 150 * 30 = 4500 per month
Requirement of Tonner = 4500 / 3500 =1.28 Tonner
Cost of Tonner = Rs. 7500

47
So,
Budget for Month- 1.28 * 7500 = Rs. 9600

2
3 OTHER PRODUCTION MATERIAL:

3.1 Electricity Consumption- Electricity is an essential part not only in

organization but also in our life. The budget of electricity is prepared or based on annual
consumption basis or on trend basis.
Besides this we have to keep certain things that are Billing Demand which we have to
maintain less than 20% to 30% on contract demand. This is because if billing demand is
higher from the contract demand than electric board charge power factor which increase
the electricity consumption.
Electricity Bill of Dainik Bhaskar is given below:

48
DAINIK BHASKAR
Electricity Bill

MONTH April'09
PARTICULARS UNIT

Contract Demand KVA

Billing Demand KVA

Gross Consumption KWH A

Rate per KWH Rs. B
Energy Charges Rs. C=AXB

Billing Demand KVA D

Fixed Charges Rate [Per KVA] Rs. E
Fixed Charges Rs. F=DxE

Sub Total G=C+F

Power Factor & Other Adjustments H

Electricity Duty Rate [Per KWH] Rs. I

Electricity Duty J=A X I

Total Bill K=G+H+J

Budget for Month- On Actual Average Basis

3.2 DG Fuel- It is based on power consumption. As much power we consume

that much fuel we require. Its requirement is calculated in the followings ways:-
1 D G is of 325kva
It consumed 20-25ltr in 1Hour.
If we have power cut of 15 days then,
DG running timing in a month for 15hrs is as follows:-
In 1hour, 25 ltr fuel is consumed.

49
In 15hour diesel consumed per liter- 15x25 = 375 liter
Rate of 1 liter diesel = Rs. 35
Budget for Month- 375 Liter xRs.35 = Rs. 13125per month.

4 MACNINE MAINTIENANCE:

4.1 DG Maintenance- DG works like generator or inverter. Its maintenance

is essential task so that we can always have electricity supply even in the case of power
cut. Therefore its budget is prepared on annual contract basis.

4.2 Multiwash / Nova Wash- Multiwash or Nova Wash is used for

cleaning of machines.
Let us take an example for making Monthly Budget for requirement and cost of
Multiwash.
Suppose 10 Liters of Multiwash is used per day.
Therefore,
Multiwash required per month- 10 * 30 = 300 Liters
Cost of Multiwash per liter = Rs. 40
Budget for Month- 300 * 40 = Rs. 12000

4.3 Blanket- Blanket is made of rubber and is used for supporting the plate. 1
Blanket gives 65 Lakhs impression pages. Thickness of Blanket is 8-10mm
1 Blanket Cost = Rs. 2500 Per Piece
Master Blanket Cost = Rs. 5000 Per Piece
In the Machine:
Machines- 4Hi 3C 3C Mono Mono
Blanket- 8 5 5 2 2
Total Blanket Required = 22
Budget for Month- 22 * 2500 = Rs. 55000

50
4.4 Dhotis- Dhotis are used for cleaning purpose in machines like 4HI, 3C,
Mono, etc.
In the Machine:
Machines- 4Hi 3C 3C Mono Mono
Blanket- 8 5 5 2 2
Dhotis (In No.)- 40 25 25 8 8
Estimation: 1 Blanket requires 5 Dhotis in 4Hi and 3C, and 4 Dhotis in Mono.
Per day requirement = 106
Per Month Dhotis Required = 106 * 30 = 3180 Dhotis per Day
Rate per Dhoti = 2.25
Budget for Month – 3180 * 2.25 = Rs. 7155

4.5 Rubber Rollers- Rubber rollers are used in printing machines.

If Rubber Rollers are required 5 per month.
Cost varies from Rs. 900/-
Budget for Month-900 * 5 = Rs. 4500

4.6 Repairs and Maintenance - Plant and Machinery- Plant and

Machinery once installed remains until the life of the plant and machinery. In this long
period of time plant and machinery require maintenance like repairs of small wear ad tear,
any technical problem, etc.
Budget for Month- On Actual Average Basis

5 LOADING AND UNLOADING - The expenses in Loading and

Unloading comes under this head. We need Loading and Unloading when we keep
material in stores and also when we have to supply printed or other material at different
sources. The budget for such expenses is based on actual average.
Budget for Month- On Actual Average Basis

51
6 BINDING CHARGES- When printing of newspapers or magazines is
completed then we have to count the printed material. After that we have to bind the
newspapers and magazines to make them in proper form to sell. For these purposes we
require binders to count and bind the printed material. Binding work is given on contract
basis. They are also paid by vouchers or on fix basis.
Budget for Month- On Calculation & Contract Basis.

B. NEWS EXPENSES

1 AGENCY PAYMENT:

1.1 PTI- As we all know that PTI stands for Press Trust of India which is a news
provider company.

52
It gives two types of services:
 Core Services

 Full Services
Core Services Cost Rs. 365 per 1000 Copies. And;
Full Services Cost Rs 540 per 1000 Copies.
It has circulation base filling,
If our circulation is 80000 copies then PTI can claim amount average core service tax i.e,
we have to pay= 80000 / 1000= 80
80 * 365 = Rs. 29200
Budget for Month- On Actual Average / Calculation Basis

2 NEWS EXPENSES - NEWSPAPER:

2.1 Payments for Photograph- Photographs are very useful for

Newspaper Company as it supports the written articles published in the newspaper. Such
photographs are made available to company by photographers. Photographers when
appointed on payroll are liable for receiving salary and other benefits, but many
companies hire photographers on contract basis, Such photographers are gives Rs. 30
per published photograph irrespective of the number of photographs he have.
Budget for Month- On Actual Average Basis

2.2 Payment to Stringers / Correspondents- Newspaper printing is

not a child’s play. The scope of newspaper printing is very wide. For getting news from
various areas company appoints agents and correspondents of that place. The agents
and correspondents provide news to the company. The agents and correspondents are
paid Rs. 2.50 per centimeter column.

C. PERSONAL COST

53
1. SALARY:

1.1 Gross Salary- Gross Salary is 55-60% of basic salary (Excluding and
Including Office Part)
 40% of basic Salary is HRA i.e., house rent allowance

 25% for Conveyance or Rs. 800 whichever is minimum.

 Rest for other allowances

Medical (Rs. 1250 Maximum), Education Allowance (Rs. 200 Maximum), Performance
Allowance, Other Allowances.

Now comes CTC i.e., Cost to Company which includes Bonus, Medical, Transportation,
FBT (Fringe Benefit Tax), Gratuity.
Budget for Month- On Fixed Monthly Basis

1.2 EPF (Employee Providend Fund)- EPF is 12% share of

employee on basic salary
And Basic D.A. (Dearness Allowance) is 25.61 %
12% share comprises of 8.33% for pension fund and 3.67% for providend fund.
EDCI- Employee Dealing Insurance = 50%
Administration Charges = 1.11%
Total = 51.11%

Forms used in EPF:

Form No. 2:- Nomination form (Declaration of Nominee for P.F. and Pension)
Form No.5:- New joining declaration during the month submitted by company to P.F.
Department.
Form No. 10:- Submitted to company (Details of the employee left in the
month).
Form No. 12:- Monthly return (Details of form no. 5,10 deposits of challans).
Form No. 13:- Transfer of P.F. Amount to other P.F. Company Account.

54
Budget for Month- On Calculation Basis

1.3 ESI- ESI is applicable on organizations which have more than seven
employees. For deduction of ESI maximum limit for gross salary is Rs. 10000
How ESI is deducted
 ESI is deducted 1.75% employee share on higher side.

 And 4.75% of employee’s share on higher side

 Total ESI deducted is 1.75% + 4.75% =6.50%

ESI is applied only on government declared area.
Budget for Month- On Calculation Basis

1.4 Mobile Expenses (Fix&Actual Basis)- Mobile expenses are

given to the employees for doing business conversation on mobile phones. Mobile
expenses are given on fix and actual basis both. On fix basis employees are given a fix
amount for their mobile expenses, and on actual basis mobile expenses are paid on
reimbursement basis.
Budget for Month- On Actual Average or Fixed Basis

1.5 Vehicle Fuel Maintenance & Insurance- Vehicle fuel,

maintenance and installation expenses are given to employees to commute place to
place for business purposes. Budget for these expenses are made on actual average
basis.
Budget for Month- On Actual Average Basis

1.6 Annual Benefits- Annual benefits are given to employees once in a

year and budget for such expense is made up on actual average basis.
Budget for Month- On Actual Average Basis

1.7 Bonus / Ex-Gratia (Diwali)- It is a sub head covered under the

head salary bonus is given to employee on some special occasion like diwali festival.

55
Such bonus is given on 10% of basic salary of the employees. The budgets for such
expenses are made on actual average basis.
Budget for Month- On Actual Average Basis

1.8 Overtime Payment- Overtime payments are given to employees who

work extra hours then their normal working hours, such extra hours are known as
overtime. Overtime payments are given to the employees of production department.
Budget for such payments are made on actual average basis.
Budget for Month- On Actual Average Basis

2. STAFF WELFARE EXPENSES:

2.1 Canteen and Pantry Expenses- Canteen and Pantry expenses incurred
when employees are paid for their refreshment at workplace. Employer is issued coupons
for employees of a fix amount of their refreshment in the office canteen.
Budget for Month- On Actual Average Basis

2.2 Medical Expenses (Other than Mediclaim)- Medical

Expenses incurred when there are certain medical checkup camps and first aid provided
to employees
Budget for Month- On Actual Average Basis

2.3 Mediclaim Premium Amount- Medical Policy Premium amount

depends on grades.

 E1 – Employee covered under ESI is not liable and if liable .

. Premium amount is Rs. 2500p.a.

 M5 – Rs. 3200p.a.

 M4 / M3 – Rs. 4800 p.a.

56
 M2 – Rs. 5400 p.a.

 M1 – Rs. 6000 p.a.

No. of Coverdness- Self, Spouse and two children.

Budget for Month- On Actual Average Basis

2.4 Pooja Expenses- Pooja Expenses incur in maintenance of the temple

which is situated in the office campus. Priests are paid for maintenance o the temple and
performing worship on various festivals. Budget for such expenses are made on actual
average basis.
Budget for Month- On Actual Average Basis

2.5 Marriage Gift- Marriage gift are given to employees for their immediate
family. The following amount for marriage within their immediate family are as follow:

Family Member Amount

Self 2100
Sister 3100
Children (Maximum Two):
Son 3100
Daughter 5100

Budget for Month- On Actual Average Basis

3. OTHER SALARY PAYMAENTS:

3.1 Gratuity- Gratuity is paid according to Factory Act 1948
Condition – It is applicable on minimum 5 Years completion of job.
Formula for calculation Gratuity:

Gratuity from basic = Basic Salary *15 * No. of Working Year / 26

57
Example – Ram Employee’s Basic Salary is Rs. 8000. He joind the organization in 1996
and he leave organization in March 2005
Calculate Amount of Gratuity
Solution- Basic Salary = Rs. 8000
No. of Working Years = 9 Years
Gratuity = 8000 * 15 * 9 / 26 = Rs. 41538
Budget for Month- On Calculation Basis

3.2 Leave Encashment- Leave encashment refers to payment received by

employee for working instead of taking leave.

Formula for Calculation is as under:-

Basic Salary * No. of Paid Leave (Maximum) /30
Example- Ram employee’s basic salary is Rs. 8000. The Maximum paid leave is 5 Days.
Calculate leave encashment
Solution- Basic Salary * No. of paid leave (Maximum) / 30
8000*5 / 30 = Rs. 1600

Types of Leave:-

1. Casual Leave (CL)-

 Casual leave cannot be availed for more than 3 days at a stretch.

 Casual leave cannot be calculated on annual basis and shall automatically laps
after the close of the year.
 Casual leave is not encashable.

2. Medical Leave (ML)-

58
 Medical leave cannot be encashed.
 Medical leave availed in excess of entitled / accumulated leave can be adjusted
against PL.
 Those employees covered under ESI / Factories act and therein would not be
covered under this scheme.
 A medical certificate from an authorized medical practitioner would be required to
claim the entitlement.

3. Privilege Leave (PL)-

 Privilege Leave can be combined with medical leave but no with casual leave.
 Privilege leave may be encashed not exceeding 12 days in a year (Only for M grade
Employees). Encashment would be affected on the basis of basic salary only.

Type of
Entitlement for the Year
Accumulation Level
Encashment Numbers (Annual)
Leave

Casual 9 No Accumulative No
Medical 12 36 Days No

Privilege 21 54 Days 12

4. Special Leave-The organization also allows certain special leaves to its

employees. These are treated as leave with pay and are in addition to the normal leaves
available:

Budget for Month- On Actual Average Basis

D. OFFICE & ADMINISTATION EXPENSES:

1.1 Main Office / Press Rent- A Company can work efficiently if working area is
assembled in same place or a re connected with each other. For efficient working

59
company hires office building. A company has to ay rent for hiring building. The rent is
paid on agreement basis. Such agreement is done on market rate.
Budget for Month- On Agreement Basis

1.2 Godown Rent- Godown is an essential part of every organization

especially where we have to purchase the material. These purchased material we have
to keep in stock in Godown. For Godown we have to paid rent & this rent is on
agreement basic according to market rate.
Budget for Month- On Agreement Basis

1.3 Postage & Courier- Company letter, Dak corresponded to be sent

another place. Courier Company provides service for dispatching the same. These
courier services are paid as per contract basis or as per document basis
Budget for Month- On Actual or Agreement Basis

1.4 Telephone- Telephone is a means of communication. In a big organization

we require telephone in a huge amount so that every members of company remains in
touch with each other. The budgeting of this is based on actual average trend basis. If a
company has 5 telephones connection lines than for budgeting purpose we see past
trend of all the connection lines.
Budget for Month- On Actual Average Basis

1.5 Internet Expenses- Internet now a day is the fastest mode of

communication. Organization which has large number of branches in all over India for
them Internet is the effective mode. The internet connection is taken on plan basis.
Internet is used for data transfer & exchange from the main office to the bureau office and
it also used for global information.
Budget for Month- On Actual Average Basis

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1.6 Printing & Stationery- In office stationery items like pen, pencil,
registers, alpines, calculator, are required as well as printing material like office receipts,
bills, files are also required. The budgeting of these expenses is as per trend basic or as
per requirement basis.
Budget for Month- On Actual Average Basis

1.7 Photocopy Expenses- Photocopy is required to make extra copy of any

type of office document. These expenses are paid as per agreement or as per copy.
Budget for Month- On Actual Average Basis

1.8 Traveling Expenses- If an employee go outside in respect of office work

than his traveling expenses reimbursed by company as per norms & conditions after
making audit of Traveling expenses bills. The budgeting of these expenses is based as
per actual basis and policy basis.
Budget for Month- On Actual Average Basis

1.9 Conveyance- If an employee goes outside for office work within the city
then company paid Rs. 2.50 per km. or as per policy.
Budget for Month- On Actual Average Basis

1.10 Guest House Expenses- When the guest of the company comes and
stays in the guest house. Guest house includes salary of care taker, rent of guest house,
food expenses and electricity exp. The budgeting of these expenses is based on actual
basis or on calculation basis.
Budget for Month- On Actual Average Basis

1.11 Security Expenses- For security purpose we appoint security guards

who are responsible for safety of vehicles; keeping records of persons enter in the office

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building. How many guards we appoint is depend on our requirement & its budgeting is
made on agreement basis.
Budget for Month- On Agreement/Contract Basis

1.12 Housekeeping Expenses- Cleanliness is most important part of our

life. When we work in clean environment we can work efficiently & effectively as per
saying “Healthy mind in Healthy body” we require clean environment. For cleaning
purpose company appoints sweepers. The budgeting of these expenses is on agreement
basis.
Budget for Month- On Agreement/Contract Basis

1.13 Gardening Expenses- To keep the environment fresh & clean we make
plantation or form garden. The maintenance of garden contains certain expenses like
salary of gardener, purchasing cost of plants, manure, fertilizers etc. Its budgeting is
based on actual expenses incurred.
Budget for Month- On Actual Average Basis

1.14 Water Expenses- Water connection if we take from PWD its expenses is
paid as per PWD rate but if we are water from outside agency is paid as per their fixed
rate basis.
Budget for Month- On Consumption / Fixed Rate Basis

1.15 Repairs and Maintenance - Building- The maintenance required

in case of building is whitewash, paint, floor furnishing, etc. Budgeting of this expense is
done on actual average bases.
Budget for Month- On Actual Average Basis

1.16 Repairs & Maintenance–Computer & UPS- Computer is an

electronic device which performs various task to enable its user to achieve his objective
or to complete work efficiently and effectively, In case of computer maintenance is done in

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the form of changing or enhancing RAM, upgrading antivirus software to protect the
various files in the computer. The budgeting of such expense is done on actual average
basis.
Budget for Month- On Actual Average Basis

1.17 Repairs & Maintenance Office Equipment and Others-

Various office equipments like Fax Machine, Xerox Machine, Telephone, A.C., Cooler, etc.
are those which require proper maintenance otherwise it changes work into tedious task.
Budgeting of some expenses are done on actual average basis.
Budget for Month- On Actual Average Basis

1.18 Annual Maint. Contracts (AMC)- In organization like print media

high equipments are involved like UPS, printers, etc. If we not maintain this equipment it
affects our working. Therefore we have to maintain this. The budget of these expenses
is on agreement basis.
Budget for Month- On Contract / Agreement Basis

1.19 Legal & Professional Fees- The fees paid to the advocate for case is
known as legal or professional fees. It budgeting is on fixed or case to case basis.
Budget for Month- On Fixed / Actual Average Basis

1.20 Legal & Professional Expenses- When we made any expenses

regarding the case like stamp duty is known as legal & professional expenses. It
budgeting is on fixed or case to case basis.
Budget for Month- On Actual Average Basis

E. SMD EXPENSES:

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1.1 Circulation Jeep Expenses- Circulation Jeep Expenses incur when
circulation of newspaper is done by means of jeep. Bhaskar owns some jeep and it has to
hire some jeeps for circulation purpose. Budget for such expenses are made on the basis
of actual average/Contract basis.
Budget for Month- On Actual Average / Contract Basis

1.2 Rent of Circulation Centers- Some centers are hired for distribution of
newspaper for which rent is paid. Budget for such expenses are made on the agreement
basis.
Budget for Month- On Agreement Basis

F. BUSINESS PROMOTION:

1.1 Advertisement & Publicity- Expenses incurred on advertisement

and publicity of newspaper is covered under this head. Budget for such expenses are
made on actual average basis.
Budget for Month- On Actual Average Basis

1.2 Barter Expenses- Barter Expenses are incurred when there is only
exchange of goods and services, the goods and services are not exchange with money.
Suppose an LCD is purchased from Sony then rather paying them that amount in money,
we issue advertisements for Sony of particular cost. But barter system is not in practice
now-a-days.
Budget for Month- On Actual Average Basis

G. CITY AND BUREAU EXPENSES- Performing and managing so

many activities from a single office is not a child’s play. Therefore, many bureau offices
are opened to manage and perform some activities there. The expense incurred on such

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offices comes under city and bureau expenses. The budgets for such expenses are made
on the basis of actual average basis.

 FACTS & FINDINGS

 Graphical Presentations

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INTERPRETATION:-

Advertisement collection is a main source of generate the income from the market, thus
on the basis of average ratio and comparison of actual and budgeted amount of previous
month the growth rate of Advertisement collection is around 12.5% thus the projected
amount of collection could be 45,255,370.

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INTERPRETATION:-

SMD Expenses are fixed in nature as per the previous two months trends are showing,
and their Budgeted and Actual Amount also very closed to each other so the next month
budget is also keep the same trend value of 921150.

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INTERPRETATION:-

In the month of April & May the BUDGETED amount of BUSINESS & MARKETING
PROMOTION was 2235580. While the Actual expenses was quite lesser than the
Budgeted amount thus on the basis of two months budget & actual Expenses & also in
the June month company is not going to launch any big promotion strategy thus in the
month of June the projected budgeted amount could be much lesser than previous
budget (20, 45,000).

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 90000
88000
86000
84000
Budget
82000
Actual
80000
78000
76000
74000
APRIL MAY Projected JUNE
Month

INTERPRETATION:-

CITY & BUREAU Expenses are quite STATIC in nature. Because there is no scope of
advancement in this area. Thus the Projected budgeted amount of June month in this
head will remain the same (88000).

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INTERPRETATION:-

In the month of June Company is not going to launch any new Scheme in the market thus
on basis of previous schemes and ratios the next month projected center transfer amount
could be around 14,750,000.

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INTERPRETATION:-

On the basis of whole actual & budgeted expenses review it has been clearly seen that
there is a lot of difference between company’s actual & budgeted expenses.

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 CONCLUSION

The newspaper is unique product as it is unlike any other commodity whose life is just like
for few hours. It has to be replenished in every 24hours.
The structure of the Indian print media industry is highly fragmented with importance to
regional dominance.
In our training we come to know that the sources of income for newspaper companies are
only advertisement. There are so many expenses which incur right from manufacturing of
newspaper to convert it into finished product and providing it place utility i.e., making
available the product to their final consumer at the place where they require the product.
The expenses are categorized into two categories:-
 Consumption Based Expenses

 Budgeted Expenses
The budgeting for both expenses are done differently.
In my training I am also understand the methodology of Dainik Bhaskar which is SAP.
SAP stands for System Application Product, which enables the organization to effectively
and efficiently utilize the resources of the organization.
Our project shows the importance of budget in any organization, as it provide a forecast
of revenues and expenditure i.e., construct a model of how our business might perform
financially speaking if certain strategies events and plans are carried out. It also provides
a financial framework for the decision making process.

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 SUGGESTION & RECOMMENDATION

1. Company should look at their H.R. Policy.

2. Performance should only be criterion for Promotions.
3. Dainik Bhaskar should look at their production Department because only through
production they can cut down their Costs.
4. It is Advisable to prepare Cash budgets on a Week basis rather than on Month or
Year basis.
5. Per year 30 lacs. Rs. Spent as Godown rent is a huge amount. Thus Bhaskar, Jaipur
can cut down its cost through buying a Godown for storing its materials.
6. Per year 40 lacs. Rs. Spent as a Binding Charges Which is a huge Amount for the
company thus if company set up its own Binding Machine for its purpose they can Save a
lot of money for it.
7. In other Expenses head company should look at their attention
Because this head really make a big difference between actual & Company budgeted
amount level.
8. Company also should check their liquidity position.
9. Top management level should try to start the ABC or XYZ analysis method to
maintain their stock level. Because during the project I come to know that because of
FIFO method it has been seen that material which comes last is going to wasted and sold
as wastage. Thus company top level management should look at the store management.
 INVENTORY MANAGEMENT is a great concern for the DAINIK BHASKAR
specially stores & Spares. The purchase manager should take certain steps for
procurement of material.
 Keep stock level as low as possible, consistent not without running out of stock
and not ordering stock in a small uneconomically quantity. JUST IN STOCK Management
is fine, as long as it is JIT and never fails to deliver on time.
 JUST IN TIME management process could beneficial for the firm if company
maintain this process they can avoid the wastage of material quite effectively.

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 BIBLIOGRAPHY

Books
1. Sharma R.K. and Sashi K. Gupta, Text Book of Management Accounting, Kalyani
Publishers, New Delhi, 1998.
2.Jain S.P. and Narang K.L., Advanced Cost and Management Accounting, Kalyani
Publishers, New Delhi, 1999.
3.Srivastav R.M., Essentials of Business Finance, Himalaya Publishing House,
Bangalore, 1998.
4. Raman B.S., Financial Management, United Publisher, Mangalore, 2001.

Websites
1. www.Bhaskar.com
2. www.google.com
3. www.wikipedia.com
4. www.newspaperindustry.com

Others
1. Dainik Bhaskar monthly Review report.
2. Monthly Variance report of Dainik Bhaskar
3. Annual Financial Report
4. Annual Report of Market share of Bhaskar group Corporation.

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