A

Project Report on

A STUDY OF BUDGET AND COMPREHENSIVE ANALYSIS

(A case study of Dainik Bhaskar Corp. Ltd.)

By

(Saloni Jain)

(18MTTXX697)

Submitted To

RAJASTHAN TECHNICAL UNIVERSITY

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

(Mrs.Priyanka Goyal) (Mr. Ankit Agarwal)

(Assistant Professor) (Finance Manager)

Department Of Management

(TIRUPATI COLLEGE OF TECHNICAL EDUCATION)

(2018-2020)

1
 CERTIFICATE
This is to certify that Saloni Jain bearing roll no. 18MTTXX697, is a bonafide student of Master
of Business Administration course of TIRUPATI COLLEGE OF TECHNICAL EDUCATION (2018-
2020), affiliated to Rajasthan Technical University, Kota

Project work report on “Budget & Comprehensive Analysis” is prepared by him/her under the
guidance of Mrs. Priyanka Goyal (Asst. Prof), in partial fulfillment of the requirements for
the award of the degree of Master of Business Administration of Rajasthan Technical
University, Kota, and Rajasthan.

Signature Of Internal Guide Signature Of HOD Signature of Principal

 CANDIDATE’S DECLARATION
I Saloni Jain hear by declare that the project work report entitled “Budget &
Comprehensive Analysis” with reference to ”DAINIK BHASKAR CORPORATION LTD.”
Prepared by me under the guidance of Mrs. Priyanka Goyal (Asst. Prof.) faculty of M.B.A.
department, TIRUPATI COLLEGE OF TECHNICAL EDUCATION and external
assistance by (Mr. Ankit Agarwal Finance Manager at Dainik Bhaskar Corp. Ltd.)

I also declare that this project work is towards the partial fulfillment of the university regulations
for the award of degree of master of business administration by Rajasthan Technical University,
Kota.

I further declare that the project is based on the original study under taken by me and has not
been submitted for the award of any degree/diploma from any other University/Institution.

Place: Signature of the student

Date:
 PREFACE
People are a company’s most important assets. They can make or break the fortunes of a
business. In today’s highly competitive business environment placing the right person in the
right position is very critical for the success of any organization.

In this context, practical training is the important part of the management study. During the
course of training a trainee learns to co relate the practical problems and situations to possible
theory knowledge.

A professional course like M.B.A. has to have a provision of these type of practical practices
during its course time, to enhance the skill in corporate world and to meet this requirements in
our management curriculum provided.
 ACKNOWLEDGEMENT

I express sincerely thanks Mrs, Priyanka Goyal HOD of management department, for consistent
encouragement and support for shaping my project in the presentable form.

I wish to express my deep sense of gratitude to my project guide to Mrs. Kirtika Gupta for
guiding me from the inspection till the completion of the training. I sincerely acknowledge him
for giving his valuable guidance, support for literature survey, critical review and comments for
my project.

I also like to express my thanks to all supporting management department faculty members who
have been a constant source of encouragement for successful completion of the project.

Also my warm thanks TIRUPATI COLLEGE OF TECHNICAL EDUCATION who provided

me this opportunity to carry out this prestigious project and enhance my learning in various
technical fields.

Saloni Jain

(18MTTXX697)
 TABLE OF CONTENTS

CHAPTER NO. TOPIC PAGENO.

TITLE PAGE
CERTIFICATE
CANDIDATE
DECLARATION
PREFACE
ACKNOWLEDGEMENT
INTRODUCTION ABOUT
1
THE PROJECT
1.1 NEED OF THE STUDY
OBJECTIVE OF THE
1.2
STUDY
1.3 SCOPE OF THE STUDY
2 LITERATURE REVIEW
HISTORY OF FINANCE
2.1
MANAGEMENT
FUNCTION OF FINANCE
2.2
MANAGEMENT
LIMITATION OF THE
3
STUDY
4 COMPANY PROFILE
INTRODUCTION OF DB
4.1
GROUP
HISTORY AND SUCCESS
4.2
STORY
4.3 FEATURES
SETUP OF THE
4.4
NEWSPAPER
5 METHODOLOGY
5.1 SAP
5.2 MS EXCEL
5.3 SAP FUNCTIONALITY
5.4 TRANSACTION CODES
6 BUDGET
6.1 INTRODUCTION
6.2 PURPOSE
BOOKS OF ACCOUNTS IN
6.3
GENERAL
COMPREHENSIVE
7
ANALYSIS
CALCULATION OF
7.1
INDIVIDUAL ITEM
RECOMMENDATIONS
8
AND SUGGESTIONS
9 CONCLUSION
10 BIBLIOGRAPHY
11 ANNEXURE
 Chapter: 1

INTRODUCTION ABOUT THE PROJECT

1.1 NEED OF THE STUDY

Proper financial management can insure that:
 Financial priorities are in line with organizational goals and objectives.
 Spending is planned and controlled.
 Sufficient financing is available when it is needed.
 Excess cash is invested in interest bearing securities.
 Tries to generate sufficient profits to finance expansion and modernization of
the enterprise and secure stable growth.
 Ensures safety of funds through creations of reserves, reinvestment of profits, etc.
It is mainly concern with the proper management of funds. The finance manager must see that’s
fund are procured in such a manner that risk cost and control considerations are properly
balanced and there is optimum utilization of funds.

1.2 OBJECTIVE OF THE STUDY

It is generally concerned with procurement, allocation and control of financial resources of a

concern. The objective can be:

 To ensure regular and adequate supply of funds to the concern.

 To ensure adequate return to the share holder this will depend upon the
earning capacity, the market price of the share, expectation of the
shareholders.
 To ensure optimum fund utilization. Once the funds are procured, they should
be utilized.
1.3 SCOPE OF THE STUDY

Investment decisions: - Include investment in fixed assets (called as capital budgeting).

Investment in current assets is also a part of investment decisions called as capital
decisions.

Financial decisions: - They relate to the raising of finance from various resources which will
depend upon the types of resources, the period of financing, the cost of financing and the
return there by.

Dividend decisions: - The finance manager has to take the decision with regard to the net profit
distributions. Net profit is generally divided into two:

1 The dividend for shareholders - Dividend and the rate of it had to be decided
2 Retained profit – Amount of retained profit has to be finalized which will depend
upon expansion and diversification plan of the enterprise.
 CHAPTER 2

LITERATURE REVIEW

HISTORY OF FINANCE MANAGEMENT

Finance Management focuses on ratios, equities, and debts. It is useful for portfolio
management, distribution of dividend, capital raising, hedging and looking after fluctuations in
foreign currency and product cycles.

Finance managers are the people who will do research and based on the research, decide what
sort of capital to obtain in order to fund the company’s assets as well as maximizing the value of
firm for all the stockholders. It also refers to the efficient and effective management of money
(funds) in such a manner as to accomplish the objectives of the organization. It is the specialized
function directly associated with the top management. The significance of this function is not
seen in the ‘line’ but also in the capacity of the ‘staff’ in overall of the company. it has been
defined differently by different experts in the field.

The term typically applies to the organization of the company’s financial strategy, while personal
finance or financial life management refers to an individual’s management strategy. It includes
how to raise the capital and how to allocate capital, i.e. capital budgeting. Not only for long term
budgeting, but also how to allocate the short term resources like current liabilities. It also deals
with the dividend policies of the shareholders.

2.2FUNCTION OF FINANCE MANAGEMENT

Functions of Financial Management:

 Estimation of capital requirements: A finance manager has to make

estimation with regards to capital requirements of the company. This will depend upon
expected costs and profits and future programmes and policies of the concern.
Estimations have to be made in an adequate manner which increases earning capacity of
enterprise.
 Determination of capital composition: Once the estimation has been made, the
 capital structure have to be decided. This involves short-term and long-term debt equity analysis. This
wi
 Choice of source of funds: For additional funds to be procured, a company
has many choices like-
a) Issue of shares and debentures.
b) Loans to be taken from banks and financial institutions.
c) Public deposits to be drawn like in form of bonds.

Choice of factor will depend on relative merits and demerits of each source and period
of financing.

 Investment of funds: The finance manager has to be deciding to allocate funds

into profitable ventures so that there is safety on investment and regular returns is
possible.
 Disposal of surplus: The net profits decisions have to be made by the
finance manager. This can be done in two ways:
1. Dividend declaration- It includes identifying the rate of dividends and other
benefits like bonus.
2. Retained Profits- The volume has to be decides which will depend
upon expansional, innovational, diversification plans of the company.
 Management of cash: Finance manager has to make a decision with regards to
cash management. Cash is required for many purposes like payment of electricity and
water bills, payment to creditors, meeting current liabilities, maintenance of enough
stock, purchase of raw materials, etc.
 CHAPTER-3

LIMITAION OF THE STUDY

The following are all limitations of the study:-

 Dependence on historical costs: Transactions are initially recorded at their cost.

This is to concern when the reviewing the balance sheet, where the value of assets and
liabilities may change over time. Some items, such as marketable securities, are altered to
match changes in their market values, but other items, such as fixed assets, do not change,
thus, the balance sheet could be misleading if a large part of the amount presented is based
on historical costs.
 Inflationary effects: If the inflation rate is relatively high, the amounts associated
with assets and liabilities in the balance sheet will appear in orderly low, since they are not
being adjusted for inflation. This mostly applies to long-term assets.
 Intangible assets not recorded: Many intangible assets are not recorded as
assets. Instead, any expenditure made to create an intangible asset is immediately charged
to expense. This policy can drastically under estimate the value of a business, especially
one that has spent a large amount to build up a brand image or to develop new products. It
is a particular problem for startup companies that have created intellectual property, but
which have so far generated minimal sales.
 Based on specific time period: A user of financial statements can gain an incorrect
view of financial results or cash flows of a business by only looking at one reporting
period. Any one period may vary from the normal operating results of a business, perhaps
due to a sudden spike in sales or seasonality effects. It is better to view a large number of
consecutive financial statements to gain a better view of ongoing results.
 Not always comparable across companies: If a user wants to compare the
results of different companies, their financial statements are not always comparable,
because the entities use different accounting practices. These issues can be located by
examining the disclosure but accompany the financial statements.
 No discussion of non-financial issues: The financial statements do not address
non- financial issues, such as the environmental attentiveness of a company’s operations,
how
 well it works with the local community. A business reporting excellent financial results might be in failure
i
 Not verified: If the financial statements have not been audited, this means that no one
has examined the accounting policies, practices, and control of the issuer to ensure that it
has created accurate financial statements. An audit opinion that accompanies the
financial statements is evidence of such a review.
 No predictive value: The information in a set of financial statement provides
information about either historical results or the financial status of a business as of a
specific date. The statements do not necessarily provide any value in predicting what will
happen in future. For example, a business could report excellent results in one month, and
no sales at all in the next month, because a contract on which it was relying has ended.
 Subject to fraud: The management team of a company may deliberately skew the
results presented. This situation can arise when there is undue pressure to report excellent
results, such as when a bonus plan calls for payouts only if the reported sales level
increases. One might suspect the presense of this issue when the reported results spike to a
level exceeding the industry norm.

Financial statements are normally quite useful documents, but it can pay to be aware or the
preceding issues before relying on them too much.
 CHAPTER -4

COMPANY PROFILE

4.1 INTRODUCTION OF DB GROUP (DAINIK BHASKAR)

D.B. Corp Limited (DBCL) is India’s Largest Newspaper Group, with a significant presence in
Radio and Digital media. Dainik Bhaskar Group is urban India’s #1 newspaper group and has 6
newspapers with 66 editions. The group has a total readership of 1.26 crores in urban India.
The group has a strong presence in the radio business. 94.3 MY FM, the radio brand of the
group is the largest radio network in India, with presence in 30 cities across 7 states. The digital
arm of the group, db Digital has 1 billion page-vies with 100 million unique visitors across its
portals in four languages, Hindi, Gujarati, English and Marathi.

Vision Statement:-

To be the largest and most admired language media brand enabling socio-economic change.

Brand Values:-

Trendsetter, Result-oriented, Analytical, Connected.

Product Portfolio:-

6 Newspapers: - The company’s print presence spans across 12 states through 66 editions;46
of Dainik Bhaskar, 9 of Divya Bhaskar, 6 of Divya Marathi, 4 of DB Star, 1 of DB Post along
with
220 sub editions in 4 languages (Hindi, Gujarati, Marathi and English).

10 Periodicals: - Aha! Zindagi| BAL Bhaskar| Dharmadarshan|Kalash| Lakshya| Madhurima|

Navrang| Rasik| Rasrang| Young Bhaskar.

30 Radio Stations in 7 states- 94.3 MY FM is one of the largest radio networks with a
dominant presence across 7 states and 30 Tier2 and Tier3 cities of India.

9 Digital portals & 4 mobile apps- The digital business has 9 portals and 4 mobile apps,
catering to diverse audiences across segments.

4.2 HISTORY AND SUCCESS STORY

The fastest growing print media in the country today began it journey with a four page
newspaper from Bhopal (MP) in 1958 as one of the business by the late Dwarka Prasad
Agarwal, the father of the Chairman, Shri Ramesh Chandra Agarwal. Ever since Dainik
Bhaskar launched. Its editions one after other in MP Gwalior in 1967, Indore in 1983, Jabalpur
in 1987. Dainik Bhaskar had a curriculum of 350,000 copies per day in Madhya Pradesh.

By 2004, this had grown by more than 1000 percent to 3.5 million (2.3 million in Hindi and 1.2
million in Gujarati across six states in India: Madhya Pradesh, Chhattisgarh, Rajasthan,
Haryana, Chandigarh and Gujarat), making it one of the top twenty-five dailies in the world.

Further its launched its edition from Raipur in 1993 followed by Bilaspur in 1993. 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
pf 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 in India.

Dainik Bhaskar has launched on 19th Dec. 1996 in Jaipur. Its market share in Jaipur is 60%. Its
price in Jaipur City is Rs. 1.50 containing 24 pages and price outside Jaipur is Rs. 1.75
containing of 16 pages.

Its main competition in Jaipur is Rajasthan Patrika. Dainik Bhaskar advance customer in Jaipur
was 80,000.

It distributed gifts, discounts and gave many scheme like subscription, free calendar etc. it also
used for publicity. It ran 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. It
got support of Bhaskar T.V.

It used manpower banners at different locations.

4.3 FEATURES

1) Major Suppliers:
 M/s Rama Newspaper
 Nepa Mills
 Hindustan Ink
2) Major Buyers:

Major buyers of the newspaper are the pupils of Jaipur.

3) 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 provided futile as it failed take off.

4) Market Share:

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

5) 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.
6) Distribution Channel:

They have ten channels for distribution, 30% to 40% are given to distributor. Company
has its own vehicles for transportation. It has its sales depot. The company has its agents
all over Rajasthan.

7) Different agencies for news:

PTI & UNI

8) Source of Revenue:

SOURCE OF REVENUE

ADVERTISING NEWSPAPER DISTRIBUTION

DISPLAY CLASSIFIED
ADVERTISING ADVERTISING

9) Source of expenditure:

Employees

Journalist

Hawkers

Print Machines

Rent
 Machinery

10)Different agencies for Advertisements:

a) Shakun Ad Agency
b) Accurate advertisement Consultancy
c) Pink City advertisement co.

4.4 SET UP OF THE NEWSPAPER

Organizational and Functional Setup of the Newspaper-

Management

Human Resource Management

Finance and Accounts

Training and Development Analysis

Personnel and Administration

Editorial

Marketing

Page Making

Circulation

Scanning

Advertisement

Image setting

Pasting

Dispatch

Distribution

 Departmentalization:
Editorial Department

Advertising Department

Printing & Processing Department

HR & Admin Department

SMD Department

Finance Department

Accounting Department

Personnel

Clerical

Store Department
 CHAPTER-5

METHODOLOGY

5.1SAP

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.

5.2MS EXCEL

Microsoft Excel is a software program produced by Microsoft that allows users to organize,
format and calculate data with formulas using a spreadsheet system. This software is a part of the
Microsoft Office suite and is compatible with other applications in the Office suite.

It features the ability to perform basic calculations, use graphing tools, created pivot tables create
macros.

The advantages of Excel are wide and varied: here are the man advantages:

a. Easy and effective comparisons.

b. Powerful analysis of large amounts of data.
c. Working together.
d. To manipulate, manage and analyze data
e. Assist in decision making and creating efficiencies
5.3SAP FUNCTIONALITY
Chart of Accounts
Maintenance
Document entry
Closing
Preparing Management
reports
Vendor Master Maintenance
Process Invoice and
Recurring Entries
Process Payments
Special Ledger Transactions
Correspondence
Vendor Reports
Customer Master
Maintenance
Process Billing
Process Incoming Payments
Process Account Statements
& Dunning
This includes maintaining account codes and their
descriptions for the tracking of revenue, expenses, assets
and liabilities.
Processing Manual & Automatic document entry
Implementation policies and procedures required to
support all operational activities performed to close on a
monthly and annual basis.
Manage the generation of management reporting.
Develop and maintain vendor profiles this includes
updating current vendor information and marinating
payment history.
Process invoices and other types of documents for
payment, generate periodic entries/ vouchers for payments
on items rented or leased from vendors.
Manual and Computerized Payments
Process updates to ledger accounts when special
transaction are entered and posted(Down Payments, Bills
of Exchange etc)
Monitor correspondence with Vendors
Define and produce reports through the vendor
information system
Create and maintain customer master maintenance
Process outgoing billing/invoice for payment collections.
Process Incoming Payments
Process Dunning and prepare advice statements for
invoices, which are due for certain months. During letters/
statements will be sent to customers.
eration and
Automatic
a mailing of dunning le functionality is required to be implemented for auto gen
Customer Information System Define and produce reports through the SAP R/3
Customer Information system.
Special Ledger Information Define and produce reports through the SAP R/3 Special
System ledger Information Systems to meet specific purpose
application
Report Painter & Report These are two tools offered by SAP to create custom
Writer reports from data in general ledger, special purpose
application
Posting During useful life The transaction possible includes credit memo’s receipts,
post capitalization write-up, subsequent acquisition and
asset transfer Manual value adjustments.
Asset Retirement Asset Retirement is the removal of asset or part of an asset
from the asset portfolio of this removal of fixed asset (part
of an asset) from the asset portfolio is posted from a book
keeping perspective as an asset retirement.
5.4TRANSACTION CODES
A transaction code (or t-code) consists of letters, or both, and is entered in the command field at
the top of the SAP screen. Each function in SAP ERP has an SAP transaction code associated
with it. By entering a t-code instead of using the menu, navigation and execution are combined
into a single step, much like shortcuts in the Windows OS.

Some T-Code:

ACTIVITY TYPE TRANSACTION CODES

GL document posting FB50

Create Purchase Requisition(PR) ME51N
Change Purchase Requisition ME52N

Display Purchase Requisition ME53N

Create Purchase Order(PO) ME21N

Change Purchase Order ME22N
Display Purchase Order ME23N

Movement in Goods Out(MIGO) MIGO

Movement in Receipt Out(MIRO) MIRO

Print Document ZBCBJ

 CHAPTER-6

BUDGET

6.1INTRODUCTION

A Budget is a detailed plan of operations for some specific future period. It is an estimation
prepared in advance of the project to which it applies. It act as a business barometer as it is
complete programmed of activities of the business for the period covered. We can also say that
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 financial terms, for the operations and resources of an enterprise for some specific
period in the future.

Definition of Budget:-

‘’Budget is a predetermined detailed plan of action developed and distributed as a guide to

current operations and as a partial basis for the subsequent evaluation of performance’’

We can also defined budget as ‘’A financial and /or quantitative statement, prepared prior to a
defined period of time, of the policy to be pursued during the period for the purpose of attaining
a given objective.’’

Budgeting:-

‘’Budgeting or profit planning is a detailed plan of action during a period of one year, one month
or less.’’

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.
 Objective of Profit Planning:-

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

6.2PURPOSE OF BUDGETING
Provide a financial framework for decision making process.
Provide a forecast of revenues and expenditure i.e. constructs a model of how our business might
performed financially speaking if certain strategies, events and plans are carried.

6.3BOOKS OF ACCOUNTS IN GENERAL

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 Activation

Operating Expenditure

Capital Expenditure

Financing

Books of accounts are maintained at various centers and all activities are controlled by SAP.
Budget contains the following particulars:-

1. Particulars of Revenue/Income
2. Particulars of Expenditure

Particulars of Revenue/ Income:

1. Advertisement & Other Income

 Advertisement Billing
 Advertisement Collection
2. Non-News Print Wastage Sale
3. Event Income
4. Job Work Receipts
5. Other Receipts

Particular of Expenditure:
1. Operating Expenses
2. Production Expenses

A. Production Materials:-
Ink Consumed
Plate consumed
 Film Consumed
LPF consumed
Tracing Paper Consumed
Fountain Solution
Other Production Material Consumed

B. Power & Fuel:-

Electricity
D.G. Fuel

C. Repair & Maintenance:-

D.G. Maintenance
Multi wash/Nova wash/Kerosene
Dhotis/Cotton Waste
Blankets Consumed
Rubber Roller
Maintenance
D. Loading Unloading & Freight:-
Loading & Unloading: NPRINT &
Cons. Loading & Unloading & Freight:
SUPP Octroi

News Expenses

A. Agency Payments
UNI
PTI
INS
AP
AFP
OTHER Agencies
B. News expenses
Payment for Article & Write-Ups
Payment for Photographs
Payments to stringers/ Correspondents
Photo Films & Developing Charges

C. Other News Expenses

Prizes of Quiz/ Contests
Special Pull out making
charges Other Misc. Expenses

Personnel Cost

A. Salary (Ref.) Salary Budget

A. Management, H.R. & Administration
Marketing
AD. Scheduling
S.M.D. & Dispatch
Editorial
Production
Others
B. Mobile (Fixed & Actual Both)
Vehicle Fuel, Maintenance & Insurance (Actual Only), overtime payments, etc.

B. Staff Welfare Expenses

Canteen & pantry Expenses

Medical Expenses (other than mediclaim)

Club Membership

Other Staff welfare Expenses

C. Other Salary Payments

 Leave Encashment

Gratuity

Employees Transfer Expenses

Recruitment Expenses

D. Incentives

Advertisement Billing

Advertisement Recovery

Wastage Control

Other Incentives

Office & Administration Expenses

Main office/ Press Rent

Godown Rent

Postage & courier

Telephone: Landline

Printing & Stationary

Travelling Expenses

Other Office Expenses

Legal & Professional

S.M.D. Expenses

 Distribution
Expenses Circulation
Expenses Bundle
Expenses
Air Freight/ Distribution/ Handling
  Other S.M.D. Expenses
Rent of circulation centers
Circulation Centers other Expenses
Marriage Gifts to Agents/ Hawkers
Coin Exchange Charges

Marketing & Business Promotion Expenses

1. Business Promotion Expenses

Entertainment (Business
Promotion) Advertisement &
Publicity
Brand Development
Annual Marketing gets together
Professional Charges Marketing

2. Commission & Discount

Annual Incentives to Clients
Advertisement Commission/ Discount
Others

City & Bureau Expenses

City Offices
 CHAPTER-7

COMPREHENSIVE ANALYSIS

7.1 CALCULATION OF INDIVIDUAL ITEM

1. Production Material

a) Ink:-
Ink is that part of press media which plays an important role in printing. How much ink we
required for printing depends upon the following things:
 Print Order (PO)
 Pagination (No. of pages)
 Days
 Ink Mileage
Quantity of ink is calculated through following formula:
Total no. of pages/Mileage  Rate

b) Plates:-
It is that important part of the newspaper on which impression of printing material is seen
before printing.

c) Fountain Solution:-
It is a type of capital which helps in printing process. Its requirements depend upon the
pages that are printed per day.

d) Packing Material (Polythene Bags):-

Packing material is required for packing of newspaper especially in the rainy season. Its budget is
formed in the following manner:
No. of Bundles per day = Average Print Order / Bundle
e) Other Packing Material
Other packing material includes strip role which is used to bind the bundle of newspaper.

2. Other Production Material

a) Electricity consumption:-
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 than contract demand than electric board charge power factor which increase the
electricity consumption.

3. Machine Maintenance

a) 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 prepared on
annual contract basis.

b) Multiwash:-
It is chemical which is required in per liter.

4. Binding Charges

a) Newspaper & Magazine:-

After printing newspaper, we require binders for counting and packaging. The budget of
these based on contract basis.

b) Other Binding Charges:-

Other binding items include Bills, Vouchers. The charges incurred on these items are bas on
fixed basis.
5. News Expenses

a) PTI:-
The Press Trust of India Ltd. is a news service provider company. It provides two types of
services.
 Core Services
 Full services
It has circulation base billing.

b) Payments for Newspapers & Writers:-

Articles and news are written for printing in newspaper. Company paid reimbursement to
those people who write the articles for newspaper.
For coverage of news company appoints agents and correspondents to that plac from where
getting news is not a easy task.
6. Loading & unloading
Materials as well as print material which are kept in store are supply at different sources.
The expenses incurred in loading and unloading are come in this heads. The budget for
these expenses is based on actual average or Contract Basis.

7. Salary
When an employee or an individual works in the organization or in any other service sector
he/she gets salary according their work. Salary includes the following :-

a) Gross Salary:-
 55% or 60% of Basic Salary.
 40% of Basic Salary is HRA.
 25% of Basic Salary or 800 per month which is less is conveyance.
 Other allowance is also considered in the gross salary.

Other allowance include with their rebate are as follows:-

Medical Allowance has rebate of Rs. 1250.
Education Allowance has rebate of Rs. 200.
 Salary is divided in different departments such departments are HR Department, Marketing Department,
Ed

Salary is of three types which are as follows:-

A part salary
B part salary
C part salary
 Mobile expenses and vehicle fuel maintenance are those which come in the B part salary
and are reimburse by the company as per actual or fixed basis.
 Annual benefits are come in the C part salary which includes Bonus< Entertainment and
others.
 Company also gives the overtime in the form of extra age to the employees of production
department.
 Company also provides the uniform to the production staff of every two year.
 Company also provides staff welfare expenses in the form of canteen and pantry
expenses.

b) Provident Fund:-
PF is 12% share of employee on basic salary + Dearness Allowance,
Total % of salary + DA is 25.16%,
Employee Dealing Insurance is .50% on basic + DA,
Administration Charges is 1.11%.
In this way we calculate the amount of Provident Fund.

c) Employee State Insurance Corporation (ESI):-

ESI covered in government declared area. Organization having 7 to 9 employees has ESI.
ESI deduct on gross amount. Its maximum limit is Rs. 10000.

d) Gratuity:-
Gratuity is calculated by the formula as follows:
Basic Salary  15  No. of working year
26 days (month).
e) Leave Encashment:-
There are three types of leaves which are as follows:

1) Casual Leave- These leave cannot be availed for more than 3 days at a stretch. This
leave would be calculated on annual basis and shall automatically lapse after the close
of the year.

2) Medical Leave – This 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.

3) Privileage Leave - This leave can be combined with Medical leave but not with Casual
leave. This leave may be encashed not exceeding 12 days in a year. Encashment would
be affected on the basis of basic salary only.
In general we calculate its amount by the following formula:
BASIC  No. of Paid Leave

8. Office & Administration

a) Main Office - Press Rent:-

Company hires office/building for effective working. For office company has to pay rent.
This rent is on agreement basis. The agreement is done according to the market rate.

b) Godown Rent:-
Godown is 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.

c) 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.
d) 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 connection lines.

e) 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 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.

f) Printing & Stationary:-

In office stationary 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.

g) 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.

h) Travelling Expenses:-
If an employee go outside in respect of office work than his travelling expenses reimbursed
by company as per norms & conditions after making audit of Travelling expenses bills.
The budgeting of these expenses based as per actual basis and policy basis.

i) Conveyance:-
If an employee goes outside for office work within the city then company paid Rs. 2.50
per km. or as per policy.

j) Guest House Expenses:-

 When the guest of the company comes and stays in the guest house. it includes salary of care taker, rent of
g

k) Security expenses:-
For security purpose we appoint security guards who are responsible for safety of vehicles,
keeping records of persons enter in the office building. How many guards we appoint is
depend on our requirement and its budgeting is made on agreement basis.

l) 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
clan environment. For cleaning purpose company appoints sweepers. The budgeting of these
expenses is on agreement basis.

m) 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.

n) 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.

o) Repair & Maintenance Building:-

Building once made remains whole life until we destroy it. In this long period of time
building required maintenance like whitewash, paint, floor, furnishing, etc. the budgeting of
these expenses is on actual average basis.

p) Repair & Maintenance Computer & UPS:-

Computer is an electronic device or machine. A machine when perform its task to nits limit
needs some maintenance especially in case of computer & Ups like changing the ram,
upgrade antivirus software to protect the file or folders stored in computer. The budgeting of
these maintenance expenses is on actual basis.
q) Repair & Maintenance- Office Equipments & Others:-
Office equipment like telephone, fax machine are those equipment whose maintenance is
essential. If we not maintain these equipments work in the office may be stop. The
budgeting of these expenses is on actual average basis.

r) AMC:-
In organization like print media high equipments are involved like UPS, printers, etc. the
budget of these expenses is on agreement basis.

s) Legal & Professional Fees:-

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.

t) Lease Rent & Property Tax:-

We purchase land either form government or from RIICO. If we purchase land from
government than we have to give lease rent and if purchased land from RIICO than we have
to pay as per RICO norms.

u) Newspaper Books & Periodical:-

We bought newspaper, periodicals, magazine for reading purpose for editorial or record
purpose. The budgeting of this is on actual average basis.

v) Meeting & Conference Expenses:-

We can make decision only when we make plans. For planning purpose meeting of SMD,
Marketing & editorial was held on monthly basis.

w) Diwali Expenses:-
This includes expenses regarding Pooja, Crackers, Lighting, staff gifts & sweets. The
expenses incurred at the time of Diwali are known as Diwali Expenses.

9. SMD Expenses
a)
 Circulation Jeep Expenses:-
Circulation jeep is a jeep which helps in distribution of papers from one centre to another
centre. Distribution of newspaper at local centre includes fixed expenses but in outside
centre we calculate the route wise expenses.
b)

Bundle Booking:-
Expenses incurred distribution of newspaper through train from one centre is recorded in
bundle booking. Railway charged according to fixed basis as per bundle weight.
c)

Distribution & Handling Expenses:-

When we send our copies in internal part of the rural areas through bus, motorcycle then we
pays charges of this type of handling. This is known as distribution and handling expenses.
These expenses are of monthly basis.
d)

Rent of Circulation Centre:-

The canters from where the newspaper copies are distributed to the various areas in a city.
These canters are in form of office and for these offices we pay rent. This is known as
circulation center.
10.

Business Promotion

a) Entertainment:-
Meeting is organized by unit head for business promotion. The refreshment expenses like
lunch, dinner, tea are considered in this head. The budgeting of these expenses is on average
basis.

b) Advertisement & Publicity:-

For making the Bhaskar brand popular we do advertisement and publicity like we placed
hoardings at various places, promotion through advertisement either on T.V., Radio,
Magazine or newspaper itself.

c)
 Annual Marketing gets Together:-
Near Diwali Season we organize get together party with our annual clients, agencies,
11. politician, administration for maintaining relationship, business promotion, planning, we
plan budget according to calculation basis.

Bureau Expenses:-
Sub office (outside city) other than main office is known as bureau office.
The expenses incurred under in running the offices are come under this head. This includes:
Rent as per agreement
Travelling, Telephone is according to actual average basis.
12. Postage and courier is on contract basis and other miscellaneous office expenses are as per
contract basis.

Other Expenses

a) Internal Audit Fees:-

An audit fees is given to auditor. Auditor is a person who makes internal audit of every
department like Finance, Billing, Circulation, Advertisement etc so that works is done
effectively as per norms. We pay audit fees to the auditor as per monthly basis.

b) Internal Auditors Expenses :-

An auditor when goes outside the city for office work his travelling expenses is incurred in
this head.

c) Bank Charges:-
If we make DD, issue check books and deposits outside bank cheques (OBC) in bank
then bank charge from us as per their norms. These charges are known as bank charges.
In this way we calculate the individual item of a budget and make budget accordingly.
 CHAPTER-8

RECOMMENDATION &

SUGGESTIONS

 The Company should look at its production department because only through
production they can cut down cost.
 Company should check their liquidity position.
 Company should look at their H.R. Policy.
 Performance should only be criterion for Promotions.
 It is Advisable to prepare cash budgets on a week basis rather than on month or year basis.
 Per year Rs. 30 lacs spent as godown rent is a huge amount. Thus Bhaskar Jiapur can
cut down its cost through buying a godown for storing its materials.
 Per year Rs. 40 lacs 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.
 CHAPTER-9

CONCLUSION
The newspaper is unique product as it is unlikely any other commodity whose life is just like
for few hours. It has to be replenished in every 24 hours.

The structure of the Indian Print Media Industry is highly fragmented with the importance to
regional dominance.

In my training I come to know the main source of income for newspaper companies are only
advertisement. There are so many expenses which occurs right from manufacturing of
newspaper to convert it into finished product and providing it place utility i.e. making
available the product to their consumer at place where they require the product.

My project shows the importance of budget on any organization, as it provide a forecast of

revenue and expenditure i.e. construct a model of how our business might perform
financially speaking if certain strategic events and plans are carried out. It also provides a
financial framework for the decision making process.

In the end I only want to conclude that the important thing require for efficient and effective
working is the Team Work with communication and cooperation.
 CHAPTER-10

BIBLIOGRAPHY
 Principles of Management – by Koontz o’Donel
 Principles and Practice of Management – by C.B. Gupta
 Human Resource Management – by U.B. Singh
 Principle and Practice of Management – L.M. Prasad
 Personnel Management – by C.B. Mamoria
 Management of Human Resource
 Dynamic of Personnel Administration – by M.N. Rudrabasavaraj
 Personal Management & Industrial Relation – by R.S.Davar
 World Resources – M.S.Kar
 Financial Management – Bright, M.G
 The Financial Manager – Cohen, J.B. & Robbins
 www.slideshare.net
 CHAPTER-11
ANNEXURE

QUESTIONNAIRE
Company’s Name
 Name:
 Age:
€ 20-29 years
€ 30-39 years
€ 40-49 years
€ 50-59 years
 Gender:
€ Male
€ Female
 What is your maximum level of education?
€ School
€ Under graduate
€ Post graduate
 Your current employment status is:
€ Public Sector Employee
€ Private Sector Employee
€ Self-employed
€ Unemployed
 Income:
€ Below 5 lakhs
€ 5-10 lakhs
€ 10-15 lakhs
€ Above 15 lakhs
Q.1 Do you read newspaper?

€ Yes

€ No

Q.2 Which language newspapers do you buy?

€ English

€ Hindi

€ Both

Q.3 Which English newspapers do you prefer?

€ Times of India

€ Hindustan Times

€ Economic Times

€ Other

Q.4 Which Hindi newspapers do you prefer?

€ Dainik Bhaskar

€ Rajasthan Patrika

€ Naiduniya

€ Other

Q.5 Given a choice between Dainik Bhaskar and Times Of India I would prefer:

€ Dainik Bhaskar

€ Times of India
I prefer the above newspaper because:

Strongly Agree Neutral Disagree Strongly

Disagree
Agree
It have a wider coverage (I get news from
all over the world)
I get timely information of all the events
and happening around me
The reporter provides absolutely correct
info.
It have a good image in the market
It’s a fair and unbiased media
organization
It’s the best newspaper for local news
It’s the best newspaper for national and
international news
It is meant for business class people
It is meant for working professionals
As per the requirement to youths
I like the content of the news
The picture quality is excellent
It never exaggerate the news
Reporters are righteous
Reporters are straight forward and clear
in presenting information
It not cluttered with too many ads
Only relevant information is provided
It’s fairly priced
The supplements carry interesting information

Easily available near my residence

My hawker insisted on it

My friends and family recommended it