Organization Profile: Industry Profile:: Savitribai Phule Pune University, Pune

Savitribai Phule Pune University, Pune.
1. ORGANIZATION PROFILE:
1.1 Industry profile:
Major companies in electrical product manufacturing industries include Anchor electrical

Pvt. Ltd. (Japan) Energizer Holdings, General Cable, Hubbell, Rockwell Automation, and
Whirlpool (all based in US), as well as Legrand (France), LG Electronics (South Korea),
Mitsubishi Electric (Japan), Philips Lighting (the Netherlands), Prysmian (Italy), and
Siemens (Germany).Top countries for electrical products manufacturing include Japan,
China, France, Germany, South Korea, and the US. Key components of the electrical
products manufacturing industry are also addressed in the following industry profiles:
Battery Manufacturing; Household Appliance Manufacturing; Industrial Control Products
Manufacturing; Lighting Equipment Manufacturing; Motor & Generator Manufacturing;
and Switch, Connector & Other Wiring Device Manufacturing.
1.2 Past, Present & Future Of The Industry:
Electrical product production and demand have traditionally come from established
markets in North America and Western Europe, but industrialization and urbanization in
emerging markets are creating new electrical product market opportunities, as well as
competitive pressures. The US electrical products manufacturing industry includes about
5,700 establishments (single-location companies and units of multi-location companies)
with combined annual revenue exceeding $125 billion.
1.3 Company Profile
Founders and Visionaries
In 1963, Damji L. Shah and his younger brother Jadavji L. Shah embarked on the journey
towards the creation of Anchor with a clear mission of producing quality products and
not mere products. They created the first ever Indian brand of switches which hitherto
were largely imported and locally sold. The duo began with a small unit in Mumbai
suburbs to make ‘Tumbler Switches’ and the operation grew and eventually reached up to
Daman. The increasing sale and variety of the business reflected the uncanny ability of
Jadavjibhai (as Shri. J. L. Shah was fondly addressed) to spot an opportunity.
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Jadhavjibhai’s keen business acumen and talent to utilize human resource and the
remarkable design and marketing skills of Damjibhai made for a potent combination,
which enabled Anchor to launch winning products year after year and helped spread its
operations nationwide. Both worked on the principle that to be successful, a product must
be good, of consistent quality and cost-effective enable it to compete and at the same time
offer great value-for-money to the customers. This belief led them to launch extremely
innovative distribution and marketing strategies that were much ahead of the time vis-à-
vis those used by other Indian manufacturers. They were pioneers in many ways, for
instance, they introduced the concept of branches and stock points being fully operated
by agents on commission, they arranged foreign tours for dealers as business incentives,
and they made extensive use of print and (later) electronic media to promote their brands.
Current Ownership
In April 2007, Panasonic Electric Works (PEW) acquired 80% of all issued shares of
Anchor Electricals Pvt. Ltd.
In October 2009, PEW acquired the remaining 20% of all issued unlisted shares of
Anchor.
The founding products, business philosophy and current operational profile of Anchor
closely resemble those of PEW, thus making the company an ideal match for its Asia
strategy in the Electricals Construction Material segment. Moreover, PEW has more than
80% market share in Japan alone. In the Asian market, PEW ranks no. 1 in service with
manufacturing facilities in Thailand, Taiwan, Indonesia, China and Korea, in addition to
Japan. Over the last five decades, Anchor has managed to capture the attention of every
citizen in this country. It started with a humble vision of manufacturing electrical
products of outstanding quality at a time when the market involving electrical switches or
wiring devices was handled by the unorganized sector. Anchor’s experience, skill set, and
understanding of the Indian market is unmatched in the field of electrical product since
1963. With a constantly expanding product range and growing market share, Anchor is
one of the largest domestic manufacturers of electrical construction materials. Anchor
Electrical Pvt. Ltd. is a company wholly owned subsidiary of Panasonic Corporation.
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Anchor and Panasonic’s synergy in 2007 resulted in products that cater to better energy
generation, management and conservation. With Panasonic’s cutting-edge technology
and Anchor’s vast customer support network, Anchor Panasonic today delivers a
seamless and vast range of innovative electrical, light and ventilation products that
exceed global standards.
Anchor Electricals Private Limited is an unlisted private company incorporated on 02

April, 1981. The registered office of the company is at 3rd Floor, B wing I- Think
Techno Campus Pokhran Road No 2 Thane (West), Thane, Thane, Maharashtra.
Company’s Vision and Mission
Anchor’s mission is to manufacture, innovative, eco-friendly, energy saving world-class

products for making user’s life simpler, safer and comfortable.
While a business must continually adapt to its competitive environment, there are
corporate ideals at Anchor that remain relatively steady and provide guidance in the
process of strategic decision-making.
Corporate Values
1. Integrity & Honesty: Wes shall be ethical, sincere and honest in all our internal
and external relationship. We commit to uphold the highest ethical standards in all
our business dealings.
2. Teamwork: We believe that people are our key performance differentiator. We
nurture an environment where Teamwork is most valued.
3. Customer Focus: We are committed to surpassing expectations of our customers
at all times. We believe that our quality of customer responsiveness will lead to
greater customer loyalty.
4. Accountability: We shall be fully accountable for our actions and we commit to
be objective and transaction-oriented, thereby earning respect from others.
5. Innovation: We shall continuously encourage entrepreneurial and innovative ideas
in pursuit of excellence so as to become the best.
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6. Adaptability: We will continually adapt our thinking and behavior to meet the
ever-changing conditions around us, taking care to act in harmony with nature to
ensure progress and success in our endeavors.
7. Social Responsibility: We are committed towards making a positive and proactive

contribution to the community. As a responsible corporate, we will contribute to
and abide by environmental and legal norms.
Panasonic Vision
Panasonic aims to be the No.1 Green Innovation Company in the Electronics Industry
in 2018, the 100th anniversary of our founding.
It will make the ‘environment’ central to all of our business activities and take the
lead in promoting the ‘Green Revolution’ which is taking place around the world for
the next generation. Specifically, it will work to realize its vision with these two
‘innovations.’
Green Life Innovation
We will offer better living, which provides people around the world with a sense of
security, comfort and joy in a sustainable way.
For example,
 Living with virtually zero CO2 emissions for the entire home and building.
 Living surrounded by recycling-oriented products.
 Living which sees the evolution and spread of eco cars.
We will realize this green life by creating innovative businesses, products and
services one after the other, and offer them throughout the community.
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Green Business Innovation
There is the concept that the ideal goal of a manufacturer is to realize ‘Zero cost, Zero
time, and Zero inventory.’ Zero represents the ideal, and our aim is to get as close to
this ideal as we possibly can. We will add ‘zero
emissions,’ in other words, zero emissions of CO2
and other wastes are to be considered equal in
importance to the other ‘zeroes.’
For example,
 We will minimize the amount of CO2

emissions throughout the entire business
process.
 We will implement recycling-oriented manufacturing which generates
minimum waste.
 This know-how will be offered to and shared with the public.
Core Values of Panasonic
 Our business philosophy as the Foundation of our Business.

 Creation of Value and Contribution to Society
 Close ties with society
 An enterprise as a Public Institution
 Only one Earth
 Global Perspectives-Global Conduct
 Carrying out our Basic Business Philosophy.
Seven Principles of Panasonic
1. Contribution to Society
2. Fairness and Honesty
3. Cooperation and Team Spirit
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4. Untiring effort for Improvement

5. Courtesy and Humility
6. Adaptability
7. Gratitude
Anchor’s Quality Policy
We pledge to our customers and ourselves that we will strive to offer most dependable
and contemporary products and will Endeavour to continually improve Quality in our
operations by increasing employee awareness and providing required training.
We will act with honesty, integrity and responsibility in all relationships professionally
and personally.
PRODUCTS
 SWITCHES & ACCESSORIES
For the last five decades, Anchor has captivated the minds of the prosaic and the prolific
with its wide range of quality electrical switches and accessories. It is also India’s only
electrical “Super Brand” in this particular segment of the electrical industry and the
amassed popularity has simply made it a synonym for a switch nationally. Empowered by
the technological proficiency from Panasonic, it has constantly endeavored to deliver
simplistic solutions for the residential and commercial premises. It categorizes its
switches in the following category:
LUXURY SWITCHES
MODULAR SWITCHES
NON MODULAR SWITCHES
 WIRES & CABLES N' PVC TAPE
Anchor Wires and Cables business unit is a leading manufacturer of wires and cables
catering to the need of domestic as well as Industrial needs. We rate our customers as
first priority, quality as our first commitment and people as our greatest resource.
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Anchor’s manufacturing facilities consist of two of the

most modern state-of-art units located at Daman &
Kutch. These plants incorporate the latest in cable
technology and manufacturing machines, which ensure
a high degree of quality and consistency. At the core of
Anchor’s strength is a team of highly qualified and
experienced engineers and technicians, who oversee operations with total commitment in
order to give the customers value for their money. Company’s goal is to provide
customers with high-quality products by understanding customer's needs and translating
those needs into continual improved products and services.
 FANS
Breathe in the airy enchantment with our breath-taking

fans range! Anchor manufacture the widest range of high
– performance-ceiling fans that are designed for
excellence and backed with a powerful combination of
rich experience and ADM (aerodynamic mechanism) with
computer-aided alignment. Company’s Ceiling Fans are
available in attractive colors and sizes. They not only
deliver the highest performance levels, but their elegant styling compliments your
interiors as well. The superior quality of Anchor fans is harnessed by immaculate
expertise with a quest for perfection.
Anchor’s fans are manufactured in a state of the art facility at Dhamdachi. In order to
meet the growing demand of quality, the working practices are aligned to the
requirements of ISO 9001:2008.
 SWITCHGEAR & PROTECTION DEVICES
‘Electric Safety” is the top mantra for all our Anchor switchgear and Protection Devices.
Offering continuity of service, greater convenience and operating cost management, our
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switchgear and protection devices range is widely utilized by the industrial, commercial
and the residential sector.
Anchor has already launched the new Panasonic MCB range in India. These super
advanced MCBs are one of a kind with unique three
level indicators and comply with the RoHS (Restriction
of Hazardous Substances) compliance defined by the
European standards. Our manufacturing facilities at
Haridwar and Daman are equipped with modern
manufacturing equipment and testing laboratories that
are operated and controlled by highly qualified
production and quality control and testing expert staff.
Company is also in the process of developing a
complete range of environment friendly products such as a MCB that makes complete
use of environment friendly raw materials.
Anchor’s Factory Locations
Anchor manufactures all its products at its own factories located at:
Daman
 In 1991, Anchor opened its first plant in Daman, and since then it has opened 5
different manufacturing units at Daman, including the new addition of Unit 5 in
May 2012.
Products Manufactured in Daman:
1. Wiring Devices
2. Switch Gear & Protection Devices
3. Wires and Cables
Kutch
 Anchor purchased land in Kutch for Lamps Manufacturing 2004.
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 It commissioned the 1st and 2nd Fluorescent Tubular Lamps (FTL) chain, 1 st GLS
chain and 1st Capsule-Badalax Chain.
 In 2006 Anchor commissioned the 3rd and 4th FTL chain.
 It also commissioned the CFL Falma chain, and as part of the green movement,
GLS production was stopped in 2008.
 Anchor slowly started the CFL assembly in-house & has a capacity of producing
1 million CFL’s per month.
 Anchor also has state of the art Electronic Ballast & CFL PCB manufacturing
facility.
Products Manufactured at Kutch
 Wires & Cables
Haridwar
 Haridwar is located in Uttarakhand state of India

 Haridwar is rapidly developing as an important industrial town of Uttarakhand.
 Anchor has 3 units at Bhadrabad location located near SIDCUL.
 Haridwar plant came up in year 2005.
Products manufactured at Haridwar
1. Wiring Devices
2. Switch Gear & Protection Devices.
Roorkee
 Anchor acquired a Lighting Factory at Roorkee on September 17th, 2010. The said
factory was formerly known as Globus Lamps. This was the first acquisition of
Anchor after Panasonic’s Take Over.
 It has world class Electronic Printed Circuit Board (PCB) manufacturing SMT &
AI machines.
 The existing capacity of this plant is 5 lakh lamps and 20 lakhs PCB per month.
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Products Manufactured at Roorkee
1. Luminaries
2. Fittings & Fixtures.
 THIS ARE THE FEW GOLDEN MOMENT OF ANCHOR:
Years Of Products Manufacture.

Starting.
1963 Tumbler switches.
1971 Commissioning of Valsad factory (Wiring Devices)
1973 First Piano switch unveiled under the brand name Penta.
1978 Initiates manufacturing of the monoblock switches...Dyna
1984 Commissions Valsad Unit - ll and starts manufacturing switches from
Engineered Polymers
1989 Commissions Valsad Unit for fans.
1994 Commissions Daman unit for Wiring Devices Starts manufacturing
Incandescent Bulb and Fluorescent Tubes.
1999 Starts manufacturing Fire Retardant Wires
2007 Matsushita Electric Works, Japan acquires 80% stake in Anchor Adds
T5 Lighting portfolio.
2009 Becomes a wholly owned subsidiary of Matsushita Electric Works.
Receives Business Super brand Status Unveils a new CFL
2010 Acquires Globus Lamps Unveils its first major channel partner loyalty
Program Zulu Launches Roma Viola Switches.
2011 Introduces Ave Sistema 44 Luxury range of switches and accessories
from Ave Italy. New Fan Factory at Dhamdachi. Unveils Panasonic
Switchgear MCB, RCCB and Isolator.
2012 Commissions 1st Greenfield facility at Daman (Unit V) Acquires
majority stake in Firepro Systems Pvt. Ltd.
Introduces Panasonic - Vision Switches Panasonic Vision receives
‘Good Design Award 2012’ by Japan Institute Of Design
2013 Launches Panasonic Ventilation Fans range. Introduces Residential
Lighting range of Panasonic Panasonic Vision Wiring Devices awarded
IF Product Design Award in Germany. Awarded ‘Masterbrand’ status
2014
Awarded Asia’s Most Promising Brand Unveils Uno Switchgear Starts
selling Solar Modules under Anchor & Panasonic Brands Unveils LED
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Lighting for Commercial, Retail and Hospitality Sectors Panasonic HIT

Solar PV Module wins Gold Award for Innovative Product at Acetech
Awarded Global HR Excellence awards for: outstanding Contribution to
the cause of Education and Innovative HR Practices by World HRD
Congress
2015 Unveils Penta Modular Switches Awarded Global Excellence awards
for: Outstanding Contribution to the cause of Education and Diversity
Impact by World HRD Congress Award for Continuous Innovation in
HR Strategy at work Initiates CSR Project at Jawahar and in villages
near Haridwar Starts offering EPC services for Solar Customers
DIFFERENT BRANDS SEGMENT UNDER ANCHOR
AWARDS AND CERTIFICATIONS
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MAJOR COMPETITORS IN MARKET
Organization Structure.
Dinesh kumar Aggarwal Managing Director

Manoj Vasant Deshmukh Company Secretary
Takaki Oguri Director
Mitsuru Shirasawa Managing Director
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Kazuyoshi Kajita Director

Takafumi Mizund Director
Hiroshi Miyasaki Director
Vivek Sharma Director
Masaharu Kawakatsu Director
Tetsuyasu Kawamoto Director
2. PROJECT INTRODUCTION.
2.1Introduction of the topic:
An analytical study on factory overheads:
It is a study through which a factory overhead of a company is being done. Budget
of the company is being analyzed and further step are taken to rectify the
upcoming uncertainty and to frame the future budget of the company. It supervise
whether all the work are working according to the budget. It provied information
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regarding which overhead should be given more focus and where the plan is being
failing
 Identify the activities to be undertaken during the budgetary period.
 Estimated expenditure for the organization’s activities during the financial
year/budgetary period.
 Compels management to think about the future.
 To set out detailed plans for achieving the targets for each department and
(ideally) each manager, to anticipate and give the organization purpose and
direction.
2.2 Overview of Theme and Topic.
 It is an analytical study regarding the factory overhead of Anchor Electrical
Pvt. Ltd, Daman. In which a brief explanation is given regarding to the
preparation of budget in the company.
 It is a study regarding the classification of important factor which majorly
fluctuate the budget of the company.
 Through this project, the researcher tried to study the areas where major care
is to be taken while preparation of budget
2.3 Importance of the theme “ An analytical study on factory overheads with

reference to Anchor Electricals Pvt. Ltd”
 Generate a sense of caution and care.
Budget help the department to look after expenses with caution and care as it
supervise over all the expense of the organization and also see whether all the
expense are done according to the plan.
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 Plan for spending.
Budget helps the organization to make expenses according to the pre-planned

budget and make the purchase and other necessary expenses.
 Prevent from blockage of investment.
Budget help the organization to make the purchase and do the investment when it
is needed because if purchase of any asset is done before hand than the
unnecessary blockage of fund will be done which is not good for the
organization.
 Tool to evaluate expense periodically.
Budget helps the organization to evaluate the expenses periodically which can be
used to measure the performance of the department and if the plan is not working
according to the plan than a step can be taken to verify it.
 Measurement of departmental performance.
As said above budget can be used to measure the performance of the department
as budget provide a periodical data which is to be achieve every month as it can
help us to measure the performance
2.4Problem Statement.
The research on the topic “An analytical study on factory overheads with reference
to Anchor Electricals Pvt. Ltd” was chosen with the project guide at the
organization. This topic will be helpful in enhancing the researcher’s knowledge in
the field of financial management. As per the study the researcher has tried to
understand the “budget on the factory overhead of the company” by analyzing the
expense budget of the organization. The topic was set by keeping light on the set
objectives of the project.
 The main problem regarding the preparation of budget is about to see which
are the controllable cost and which are the uncontrollable cost.
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 It requires more supervisory person to see after the preparation and

implementation of budget.
 This are the sub heads used under the project:
Table no: 1
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The above table shows the different sub-overhear under the main overhead which are
mainly classified as; Employee cost, Depreciation, Power, Repairs, Traveling and
Other expense.
3. Literature Review
3.1Theoretical Background:
Budget:
According to The Institute of Cost and Management Accountant (UK) defines a budget
as “a financial and/or quantitative statement, prepared and approved prior to a defined
period of time, of the policy to be pursued during that period for the purpose of attaining
a given objective. It may include income, expenditure and the employment of capital.”
Budgeting and Forecasting:
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Sometimes the term “budgeting” and “forecasting” are used interchangeably. Both terms
have some similarities, for example, both relate to future events and involve prediction of
something. The basic difference between budgeting and forecasting lies in degree of
sophistication involved in the predictions used by them. According to the National
Association of Accountants (USA), “forecasting is a process of predicting or estimating a
future happening”
Budget Planning:
Almost all business activities require some planning to ensure efficient and maximum use
of scare resources. The budget is a formal planning framework that provides specific
deadlines to achieve departmental objectives and contribute towards the overall
objectives of an organization. A budget incorporated expected performance and present
managerial targets. These targets guide the business operations and help in overcoming
problems and analyzing the future. Budgeting influences the formulation of all business
strategies and subsequently assists business managers in executing such strategies.
Employee Cost:
Employee costs are the cost which occurs for the payment for all the human resources
required for the purpose of the production for the upcoming year. It is mainly decided on
the basis of available employee and requirement of it in future to fulfill the production
need. It consists of Staff, Expert, Payroll Worker, Contract Worker, Staff Welfare &
Others and over time workers.
Depreciation:
In accountancy, depreciation refers to two aspects of the same concept: the decrease in
value of assets, and the allocation of the cost of assets to periods in which the assets are
used. The former affects the balance sheet of a business or entity, and the latter affects the
net income that they report. Generally the cost is allocated, as depreciation expense,
among the periods in which the asset is expected to be used. This expense is recognized
by businesses for financial reporting and tax purposes.
Vehicle:
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Vehicle costs are the cost which occurs for the purpose of transport of good from one
place to another. It includes the cost of sending the good from manufacturing plant to
assembly plant or to the various distributors.
Traveling:
Traveling is the cost which occurs for the various purposes of travels of employee of the
organization for the purpose of the company. It includes the expenses which are being
occurred for the purpose of travel which can be domestic or overseas.
Repairs:
Repair costs are the cost which occurs during the process of production due to the
breakdown of the machinery or other asset of the company.
Other Expenses:
Other expenses includes Miscellaneous, Legal & Professional, Rent, Rates & Taxes,
production, packing, commission, bank charges, printing and stationary, insurance, bad
debt, sundry expense, postage expense, R&D expenses, office expense, security charges,
garden expenses etc.
3.2 LITERATURE REVIEW:
 “BUDGET AND BUDGETARY CONTROL PRACTICES OF SOME

SELECTED CREDIT UNIONS WITHIN THE ASHANTI CHAPTER.”-
MICHAEL OWUSU-A thesis submitted to the School of Business, Kwame
Nkrumah University of Science and Technology.
 Budgeting has it place in the management functions of planning and
controlling. Planning involves the development of future objectives, and
budgeting quantifies these future objectives usually in monetary terms.
Management wishes to make sure every sectors of the organization is
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functioning in a manner consistent with the objectives of the organization set

at the planning stage through control.
 There is no doubt that budgeting is inevitable and it is the driving force behind
every organization. Planning, directing, organizing and controlling of
economic resources are activities that are made to suit the nature and
objectives of the organization and must be well tailored towards the
achievement of general predetermined objectives of the organization.
 There is an excessive amount of worth in the end result to maintain a business
without a budget. Budgets are basic key tool for assigning power to people in
an organization. It also guarantees that managers unmistakably comprehend
the quantifiable parameters used to judge their performance. Also, budgets
make businesses act in a more proactive manner rather than just been reactive.
 “Budgeting and Budgetary Control System: A study on Selected Indian

Companies.”-Dr.K.Manoharan Nair International Journal of Management and
Social Sciences Research (IJMSSR) ISSN: 2319-4421 Volume 6, No. 8, August
2017
 Budgeting is very important and it determines the way in which the
organization can attain its financial and other goals. It is an estimate about the
future actions of the management in the form of financial Statements.
 The study recommends that in order to increase organizational efficiency,
senior management should put in place measures to solve the problems
associated in budgetary control system procedure. Moreover, budget
participation should be take place within organizations in order to enhance
employee’s perception in regards to budgeting and planning
 Most of the respondents agreed that there is a strong relationship between
budgetary control system and organizational efficiency. Interestingly, finding
of the study revealed that budgetary control system serves different purposes
within Indian organizations, in some organizations BCS (budgetary control
system) is used for cost reduction and in other cases it used for maximize
profitability as well as to minimize variances.
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 “HOW WELL DO HOSPITALS BUDGET OPERATING RESULTS? THE

RELATIONSHIP BETWEEN BUDGET VARIANCES AND OPERATING
MARGIN”- MARK F. SLYTER. - Submitted to the graduate faculty of The
University of Alabama at Birmingham, in partial fulfillment of the
requirements for the degree of Doctor of Science in Health Services
Administration.
 The results of this study indicate greater accuracy in forecasting and/or tighter
management to the budget, or favorably exceeding it, leads to improved
profitability. More specifically, smaller unfavorable budget variances are
associated with greater operating margins while greater favorable budget
variances are associated with greater operating margins. Managers can
improve hospitals’ operating margins by first prioritizing the reduction and/or
eliminating unfavorable variances, and second increasing favorable variances.
 Negative deviations in both revenue and expenses have a greater impact on
operating margin than positive deviations. A potential reason could be the
level of fixed cost incorporated in expenses that does fluctuate when there are
changes in revenue and volume.
 In sum, a budget variance in revenue and expense had a significant impact on
operating margins. Managers can improve the hospital’s operating margin by
first prioritizing the reduction and/or elimination of unfavorable variances and
second increasing favorable variances.
 “A SYSTEMATIC REVIEW OF BUGETING AND BUDGETARY

CONTROL IN GOVERNMENT OWNED ORGANIZATIONS”. Research
journal of finance and accounting ISSN 2222-2847 (Online) Vol.6, No.6, 2015
 A systematic review of budgeting and budgetary control in government
owned organizations and roles they play towards determining the corporate
objective and profit making, it is imperative to conclude that budgeting and
budgetary control is an indispensable tool to any organization.
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 When matter relating to budget and budgetary control are carefully planned
an implemented by any organization (most especially government owned
organization), it can lead to decrease in cost and increase in revenue, which
in turn leads to maximization of profit.
 Though budgeting and budgetary control could enhance the efficiency of the
organization’s performance, it should be noted that it is not a “magic stick”
that can replace effective management or ensuring the going concern of an
organization and sustainability of operations.
 “THE EFFECT OF BUDGETS ON FINANCIAL PERFORMANCE OF

MANUFACTURING COMPANIES IN NAIROBI COUNTY”- EVANS
OBARA ONDUSO- A research project submitted in partial fulfillment of the
requirement for the award of master of science in finance, university of nairobi
 Budgeting as a tool in financial management regularly prepares performance
plans and budget requests that describe performance goals, measures of output
and outcomes in various activities aimed at achieving performance goals. This
helps in the sense that annual plans set forth in measurable terms form the
levels of performance for each objectives in the budget period.
 Effective budget implementation at the company level should be facilitated
through capacity building, robust systems and processes, prioritization close
monitoring and evaluation. All stakeholders should get involved in budget
execution in enhancing the overall budget implementation.
 The financial management systems need to be supported in order to ensure
prudent management of funds. There is a need for adequate sensitization of
both the employees and the public on best financial management practices so
that the oversight role is enhanced.
 “THE IMPACT OF BUDGETING AND BUDGETARY CONTROL ON THE

PERFORMANCE OF MANUFACTURING COMPANY IN NIGERIA”-
Siyanbola, Trimisiu Tunji.- Journal of Business Management & Social Sciences
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Research (JBM&SSR) ISSN No: 2319-5614 Volume 2, No.12,

December 2013
 Since wants are plenty while resources are limited, every organization tends to
find means by which it can get what it wants with the limited resources at its
disposal. Therefore, firms seek to adopt the concept of budgeting and
budgetary control to satisfy their needs at the least possible cost and at the
same time fulfill their stewardship obligations to the numerous stakeholders.
 For any organization to make progress or achieve its goals it needs capital and
to be able to make profit, it requires planning of its resources, which can only
be achieved through budgeting, hence budgeting serves as a tool for financial
planning.
 It can be said that dedicated work force, improved technology and effective
policies (budgeting inclusive) has helped the manufacturing companies to
remain effective and efficient in fulfilling their stewardship obligations to the
stakeholders.
 “A STUDY ON ANNUAL BUDGET OF ADVANCED AND DEVELOPING

ECONOMIES WITH SPECIAL REFERENCE TO U.S.A AND INDIA
BUDGETING PATTERNS”
 The budget is government’s most important economic policy tool. Budgets
translate a government’s policies, political commitments and action plans into
decisions. A budget system that functions well is crucial to developing
sustainable fiscal policies and economic growth. In many countries economic
problems are exacerbated by weak budget systems and faulty budget choices.
The budget is more than just a single document. It is a year-long cycle whose
different phases offer civil society varying access points to influence how
public resources are raised and spent and, ultimately, the budgets desired
outcomes.
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 Government budget affects the lives of every citizens, it can have the greatest
impact on the wellbeing and prospects of the people. A cut in budget can have
a great impact on programs that benefit the poor and vulnerable, as well as
other items, such as interest on the debt, the public-sector wage bill, or
military expenditures
 Budgeting has always been an opera, complicated, laborious and sometimes

difficult process. With the emergence of Welfare State, it has become the duty
of the governments to look after virtually every sphere of human life. They
have to perform manifold functions from maintaining law and order,
protecting their territories to implementation of plans for economic and social
betterment.
 “Cost Accounting” Chapter-08 BUDGETING AND BUDGETARY
CONTROLING Third Edition- Jawahar Lal, Professor Delhi school

of Economics, University of Delhi – Delhi.
 A financial and/or quantitative statement prepared and approved prior to a
defined period of time, of the policy to be pursued during that period for the
purpose of attaining a given objective. It may include income, expenditure
and the employment of capital.
 Sometimes the term budgeting and forecasting are used interchangeably.
Both terms have some similarities, for example, both relate to future events
and involve prediction of something. The basic difference between budgeting
and forecasting lies in degree of sophistication involved in the predictions
used by them.
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 The budget is a formal planning framework that provides specific deadlines

to achieve departmental objectives and contribute towards the overall
objectives of an organization. A budget incorporated expected performance
and present managerial targets.
 Cost & Management Accounting- text and cases. 5 th Edition Ravi M.
Kishore (TAXMANN’S) Chapter-22 “BUDGETING AND

BUDGETARY CONTROL.” Page no: 701.
 Budgeting is the whole process of designing, implementing and operating
budgets. Short-term planning and control is formalized in the budgetary process.
Budgeting is a management tool used for short-term planning and control.
 Traditionally budgets have been employed as devices to limit expenditure, but a
much more effective and profitable use of the company’s resources via planning
and control.
 A forecast is the prediction of what is going to happen as a result of a given set
of circumstance. A forecast is a prediction of the future state of world, in
connection with those aspects of the world which are relevant to and likely to
affect on future activities. Budgeting is an operating and financial plan to a
business enterprise. At planning stage it is necessary to prepare forecasts of
probable course of action for the business in future.
 Financial Management- Tenth Edition- I M Pandey- Professor Dept
of commerce- Delhi School Of Economics (University of Delhi)

Chapter-8 “CAPITAL BUDGETING DECISIONS.”
 A capital budgeting decision may be defined as the firm’s decision to
invest its current funds most efficiently in the long-term assets in
anticipation of an expected flow of benefits over a series of years.
 Decision like the change in the methods of sales distribution, or an
advertisement campaign or a research and development programmed
have long term implications for the firm’s expenditure and benefits and
therefore, they should also be evaluated as investment decision.
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 It is important to note that investment in the long term assets invariably

requires large funds to be tied-up in the current assets such as inventories
and receivables.
4. RESEARCH METHODOLOGY:
4.1 Research Design & Methodology
 Research Design:
The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent an logical way, thereby, ensuring you will
effectively address the research problem; it constitutes the blueprint for the collection,
measurement and analysis of data.
 TYPE OF RESEARCH DESIGN:
There are various types of research design
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i. Descriptive Research Design.

ii. Exploratory Research Design.
iii. Analytical Research Design.
Descriptive Research Design:
Descriptive Research is a study designed to depict the participants in an accurate way.

The three main ways to collect the information are: Observational, defined as a method of
viewing and recording the participants. Case study, designed as an in-depth study of an
individual or group of individuals.
Exploratory Research Design:
An exploratory research design is conducted about a research problem when there are
few or no earlier studies to refer. The focus is on gaining insights and familiarity for later
investigation or undertaken when problems are in a preliminary stage of investigation.
Analytical Research Design:
Analytical research is a specific type of research that involves critical thinking skills and
the evaluation of facts and information relative to the research being conducted. From
analytical research, a person finds out critical details to add new idea to the material
being produced.
The researcher has used analytical research for the study conducted.
 RESEARCH METHODOLOGY:
A research method is a systematic plan for conducting research. Sociologists draw on a

variety of both qualitative and quantitative research method, including experiment,
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survey research, participant observation and secondary data. Quantitative method aim to
classify features, count them, create statistical, models to test hypotheses and explain
observation. Qualitative methods aim for a complete, detailed description of
observations, including the context of events and circumstances.
4.2 Objective of the study:

 To study the various criterions used in preparation of expenses budgets.
 To analyse the factory overheads for the past five years
 To prepare the factory overhead budget for the year 2018-19 on the basis
of the past five years data.
4.3 Sampling Techniques:

 Data Collection
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Data collection is the process of gathering and measuring information on targeted

variables in an established systematic fashion, which then enables one to answer relevant
questions and outcomes.
 DEFINITION:
Data collection is the systematic approach to gathering and measuring information from a
variety of sources to get a complete and accurate picture of an area of interest. Data
collection enables a person or organization to answer relevant questions, evaluate
outcomes and make predictions about future probabilities and trends.
 TYPE OF DATA:
Data are mainly collected by following two methods:
 PRIMARY DATA:
Primary data are those which are collected for the first time. It is type of data which are
collected by the researcher himself.
 SECONARY DATA:
Secondary data are those data that have already been collected by others. These are
usually in journals, periodicals, dailies, research publications, official’s records etc.
 Sources of data of data collection:
The required data for the study are collected from secondary sources. The data are
collected from the annual report of the company and from the financial reports.
 TIME FRAME:
The research study covers a period of five years commencing from 2013-2014 to
2017-2018.
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4.4 Tools for financial analysis:

 Comparative Statement Analysis:
A comparative statement is a document that compares a particular budget expense with it

actual expense of the same year. Analyst and managers of different department uses
Business plan, estimate, budget, forecast and actual for the purpose of Comparative
statement. The process reveals trends in the budget and compare budget with the actual
expense.
 GAP Analysis:
GAP analysis is a tool which is used to find out the difference between budgeted
expenses and actual expenses. It gives the number which represents the difference
between the amount allocated and the actual expense which had occurred. It gives the
percentage increase or decrease between actual and budget.
 PARETO Analysis:
PARETO analysis gives the percentage of overhead occupied by them in budget. It help
the manager to find out which factor should be given more preference at time of framing
budget of the organisation.
4.5 Scope & Limitation Of The Study:

 Scope:
 Generate a sense of caution and care about utilization of various resources in the
organization for the process of production and also utilization of fund in the
organization as there can be maximum utilization of both Fund as well as of resources
as less number of wastage is being done.
 A proper plan for the spending can be given through the help of the budget as a
concrete plan is being generated.
 If we work according to the plan of the budget than the blockage of fund can be
prohibited. For example: If we are going to bu. For example: If we are going to buy a
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machine in the month of October than we should buy it in October only as if we buy
it before that than an unnecessary blockage of fund will be one which can be used for
other investment activity.
 Budget is a tool which can be used to measure the expense of the organization which
is used for the purpose to meet different expenses occurred in the business
 Through budget one can measure the performance of the different department as it
give the proper result between the plan and actual.
 Limitation:
 Budgeting is based on the estimate and forecasted data as the accuracy of budget
can’t be said to be 100% accurate as it’s mainly dependent on the past data.
 The preparation of budget can consume more time than needed as more focus is
needed to prepare it and the management cannot focus on the main purpose of their
core work.
 When a budget is being allotted to the department and if it is not being utilized till
the end of the year than the department tries to utilize the fund in the unwanted
material or assets which become a death stock for the organization.
5. Data Presentation & Analysis

5.1 Criterion used in preparation of factory expenses budget:
A. Sales:
The very first step while planning for the business plan of budget is to decide about the
amount of sales for the forthcoming year which is being decided by the head office of the
company. And then planning is made according to it for the purpose of its production and
sale. After estimation of amount of sale, the amount is divided into different product
segment as of which amount the production of different product is to be made
For example:
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The amount of sale is decided by head office if we assume that the sale to be made is of
Rs3,000cr than the following division should be made according to product wise.
Types of Product according to their Sales target

Wiring Device 2000cr
Wire and Cable 500cr
Switches 50cr
Tape 200cr
Lighting 50cr
Fan 200cr
TOTAL 3000cr
Here now out of this 2000cr production are allotted to wiring devices. Hence in Anchor
the main production are of:
 ROMA.
 VISION.
 AVE.
 KITKAT.
 WOODS.
 PENTA MODULAR.
 RIDER.
 PENTA
 MODULAR BOXES.
Wiring device are produced in the form of finished goods and semi finished goods in
Daman and Haridwar. From Daman semi finished goods are shifted to Haridwar which
are then converted into finished good after assembling them. And finished goods
produced in Daman are shifted to Dalwada warehouse (in Daman) from where all the
finished good are distributed to the different distributor in the country and also overseas.
Hence the sales target will be distributed among this UNIT.
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Anchor
Daman Haridwar
Semi Finished
Finished goods Finished goods
Goods
500cr 1500cr
Finished Good Export

300cr 200cr
Out of this, total production quantity is being found out through which the total cost and
per unit cost is being found out:
PRODUCTION QUANTITY= VALUE / COST PER UNIT.
B. CALCULATION OF EMPLOYE EXPENSE:
Wage/day Wage rate ****

Overtime/hour rate ****
Allowance Bonus, Leave Pay, Gratuity etc. ****
Charges Labor commission agent ****
TOTAL ****
Here is the calculation of wage rates of contract worker:
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CONTRACT WORKER WAGE CONSIDERATION (table no: 2)

As On 31.03.2018Changes As Per HR Guideline
: 17-18 April-18’ Oct-18’
Existing Wage Rate 295.5
Basic 0 0 0
Other Wages 0 20 10
Bonus@8.33% 24.62 1.67 0.83
Leave Pay@5% 14.78 1 0.5

P.F @13.36% 39.48 2.67 1.34
ESIC@4.75% 0 0 0
Service Charges 29.55 2 1
Total Expense
Per Head Count 404 +27 +14
While calculating employee expense the calculation is done on the basis of total available
employee in the certain month for which the calculation will be done. For Example; if the
calculation of month of April is to be done than the total requirement of the employee
will be found out and then the total employee expense will be calculated out of that.
C. CALCULATION OF ASSET (DEPRECIATION):
While calculation of depreciation the total available machine and the new purchase
machine are being considered. For calculation of depreciation of machine straight line
method (Depreciation Expense = (Cost – Salvage value) / Useful life) is being used
through which the existence of machine is being not disappeared in books of account
after the value of machine become nil. Different types of rate are being used for the
different asset as guided by the companies act. And there is also variation in the rate of
calculation of depreciation for the machine which are working for different shifts.
Here is the list of percentage of rates of depreciation on different assets:
DEP.
ASSET TYPE
RATE
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FREEHOLD LAND 0.00%

GOODWILL 0.00%
SHED BUILDING 3.17%
PLANT & MACHINERY Single Shift 6.33%
PLANT & MACHINERY Triple Shift 12.67%
MOTOR CAR 11.88%
VEHICLE 11.88%
OFFICE EQUIPMENT 19.00%
COMPUTER 31.67%
ELECTRIC FITTINGS 9.50%
DIES & MOULDS 6.33%
FURNITURE & FIXTURES 9.50%
SOFTWARE 33.33%
Depreciation for the year 2018-2019 (table no: 3)

Asset Group TOTAL
COMPUTER 7,916,964
DIES & MOULDS_Single Shift 724,879
DIES & MOULDS_Triple Shift 89,635,174
ELECTRIC FITTINGS 15,895,594
FREEHOLD LAND -
FURNITURE & FIXTURES 2,518,776
MOTOR CAR 131,025
OFFICE EQUIPMENT 2,451,563
PLANT & MACHINERY_Single Shift 36,511,541
PLANT & MACHINERY_Triple Shift 64,619,833
SHED BUILDING 24,313,244
SOFTWARE 1,367,894
VEHICLE 1,165,930
Grand Total 247,252,418
D. TRANSPORTATION EXPENSES:
While calculation of transportation expense the total amount of quantity to be transited is

calculated, out of which the total distance between two place is considered, the capacity
of the vehicle is considered.
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Distance in Km. Rate per Km. ****

Total quantity Vehicle capacity ****
E. TRAVELING EXPENSE:
Traveling expenses are calculated on the basis of travel of a person for the purpose of
organization over the specific period of time.
F. OTHER EXPENSE:
All the expenses are mainly dependent on the quantity of production, usage of asset,
employee, and other such expenses which are directly linked with the purpose of
production like electricity charges, repairs of fixed asset (machine-building-plant etc.),
rent, stationary and other such expenses
G. CALCLATION OF POWER EXPENSES:
Table no: 4
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. INTERPRETATION:
Calculation of power is mainly done on the basis of the rate per unit of the electric power
and on the basis of the need of production to be done in upcoming year. Different
percentage of electricity is allotted to different department.
5.2 Analysis of budget for last 5 years.

 Scale to measure the appropriation of budget.
Evaluation ==>
0% -
Target
Unbalanced
PLAN
0%～85%
△ ◎
90%～100% ACCEPTED
Need Inappropriate
85%～90% ×
Improvement ○ More than 100% PLAN
 GAP Analysis Of Actual & Budgeted Expense For The F.Y. 2012-2013.
Table no: 5 Result _ 2013

Plan
Vs.
Type of Expenses Budget Actual Actual Judgment
( Chan
ge % )
Employee Cost 236,745, 269,259,
153 848 114% ×
Depreciation 122,912, 115,068,
434 001 94% ◎
Vehicle 363,017, 377,277,
381 598 104% ×
Traveling 7,315, 9,932,
364 892 136% ×
Power 55,818, 43,004,
182 049 77% △
Repairs 25,590, 14,386,
087 470 56% △
Other Expense 43,367, 38,979,
846 907 90% ○
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INTERPRETATION:
 In the year of 2013 researcher found that employee cost, vehicle cost and traveling
cost is more than budget and through this it can be said that the budget was
inappropriate.
 The percentage of depreciation was 94% which was very near to the budgeted plan
through which researcher found that the plan was appropriate.
 But in power and repairs it was found that budgeted value is more than actual so it
needs to be improved through proper control.
 GAP Analysis Of Actual & Budgeted Expense For The F.Y.2013-2014
Table no: 6 Result_2014

Plan Vs.
Actual
Type of Expenses Budget Actual Judgment
( Change
%)
260,419, 270,83
Employee Cost
668 3,757 104% ×
135,203, 118,66
Depreciation
677 2,224 88% ○
399,319, 378,52
Vehicle
119 5,928 95% ◎
8,046, 6,14
Traveling
900 7,573 76% △
61,400, 30,72
Power
000 7,283 50% △
28,149, 13,47
Repairs
096 0,713 48% △
47,704, 34,93
Other Expense
630 2,928 73% △
INTERPRETATION:
 In year 2014 the above table shows that employee cost is more than the budgeted
plan so more supervision was required in this area.
 The percentage of vehicle is 95% which was very near to the budgeted plan
through which researcher found that the plan was appropriate.
 Utilization of depreciation is being done properly as compared to 2013. Travelling,
power repairs and other expenses are less than budget so it is an unbalanced plan.
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 GAP Analysis Of Actual & Budgeted Expense For The F.Y.2014-2015

Plan
Vs.
Type of Expenses Budget Actual Actual Judgment
( Chan
ge % )
Employee Cost 416,447,21 414,457,52
9 7 98% ◎
Depreciation 144,641,53 138,417,98
8 5 96% ◎
Vehicle 543,000,66 525,358,51
1 3 97% ◎
Traveling 18,973,67 7,401,32
1 5 39% △
Power 41,346,57 35,086,77
6 4 85% △
Repairs 34,960,12 28,386,70
3 0 81% △
Other Expense 59,687,94 48,864,07
6 3 82% △
INTERPRETATION:
 In the year 2015, the above table shows that employee cost, deprecation and
vehicle budgeted plan are made appropriate or it can be said that the plan are
followed very appropriately.
 But still the more care should be given on traveling, power, repairs and other
expenses as they are less than 85%.
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 GAP Analysis Of Actual & Budgeted Expense For The F.Y.2015-2016.

Plan
Vs.
Type of Expenses Budget Actual Actual Judgement
( Chan
ge % )
Employee Cost 589,095,2 478,882
73 ,690 81% △
Depreciation 167,118,5 160,009
79 ,952 96% ◎
Vehicle 715,155,1 618,853
14 ,625 87% ○
Traveling 9,294,0 8,493
00 ,595 91% ◎
Power 45,167,4 38,390
01 ,229 85% △
Repairs 54,188,0 52,398
00 ,079 97% ◎
Other Expense 93,530,4 63,533
29 ,954 68% △
INTERPRETATION:
 In the year 2016, the above table shows that depreciation, traveling and repairs are
being occurred according to the budgeted plan as they all are above 90%.
 But yet organization should have to take more care on employee cost, power and
other expense as they are not able to reach the plan.
 The organization should work on vehicle budget as it is very near to the
appropriate plan.
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 GAP Analysis Of Actual & Budgeted Expense For The F.Y.2016-2017.

Plan Vs.
Actual
Type of Expenses Budget Actual Judgement
(Change
%)
Employee Cost 561,188,2 523,313,75
16 2 93% ◎
Depreciation 213,766,8 194,108,29
43 7 91% ◎
Vehicle 754,593,7 689,410,41
30 5 91% ◎
Traveling 10,916,4 9,498,79
44 0 87% ○
Power 48,101,9 39,747,19
59 6 83% △
Repairs 62,580,0 54,101,40
33 0 86% ○
Other Expense 82,302,4 61,140,67
02 4 74% △
INTERPRETATION:
 In the year 2017 researcher found that employ cost, depreciation and vehicle
budget are made appropriate as it is meeting the nearest to the planned budget.
 But traveling and repairs need to get more improvement as they are near get
accepted as they are above 85% but less than 95%.
 But power and other expense budget are very unbalance plan as they are below
85%.
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 Comparative Analysis:
 2013 Comparative Analysis
Table no: 10 2013

Type of absolute relative
Budget Actual
Expenses change change
Employee
Cost 236745153 269259848 32514695 14%
Depreciation 122912434 115068001 -7844433 -6%
Vehicle 363017381 377277598 14260217 4%
Traveling 7315364 9932892 2617528 36%
Power 55818182 43004049 -12814133 -23%
Repairs 25590087 14386470 -11203617 -44%
Other
Expense 43367846 38979907 -4387939 -10%
Total 854766447 867908765 13142318 2%
INTERPRETATION:
 The above table shows the comparative analysis of ANCHOR ELECTRICAL
Pvt. Ltd. of 2013 budget with its actual.
 In this year we can see that employee cost, vehicle and traveling cost are more
than the budget which is not a good sign for the company.
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Table no: 11 2014

Type of Absolute relative
Budget Actual
Expenses Change change
Employee
Cost 260419668 270833757 10414089 4%
Depreciation 135203677 118662224 -16541453 -12%
Vehicle 399319119 378525928 -20793191 -5%
Traveling 8046900 6147573 -1899327 -24%
Power 61400000 30727283 -30672717 -50%
Repairs 28149096 13470713 -14678383 -52%
Other
Expense
47704630 34932928 -12771702 -27%
Total 940243091 853300407 -86942684 -9%
INTERPRETATION:
 From the above table researcher found that yet organization have to work on
the planning of employee cost as actual is yet more than the budget.
 The budget of the year 2014 can be consider as unbalance plan as the total of
the budget is more than the actual cost.
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Table no: 12 2015

Budget Actual
Employee
Cost 416447219 414457527 -1989691 -0.5%
Depreciation 144641538 138417985 -6223553 -4.3%
Vehicle 543000661 525358513 -17642148 -3.2%
Traveling 18973671 7401325 -11572346 -61.0%
Power 41346576 35086774 -6259802 -15.1%
Repairs 34960123 28386700 -6573423 -18.8%
Other
Expense 59687946 48864073 -10823872 -18.1%
Total 1259057734 1197972898 -61084836 -4.9%
INTERPRETATION:
 From the above figure researcher found that the budget of the company is
being becoming appropriate as compare to the above year.
 The total difference between budget and actual is very minute so it can be
said that the budget was efficient.
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Table no:
13 2016
Budget Actual
Employee (110,212,58
Cost 589,095,273 478,882,690 3) -19%
Depreciatio (7,108,62
n 167,118,579 160,009,952 8) -4%
Vehicle (96,301,48
715,155,114 618,853,625 9) -13%
(800,4
Traveling
9,294,000 8,493,595 05) -9%
Power (6,777,17
45,167,401 38,390,229 2) -15%
Repairs (1,789,92
54,188,000 52,398,079 1) -3%
Other (29,996,47
Expense 93,530,429 63,533,954 5) -32%
1,673,548,7 1,420,562,1 (252,986,67
total 97 24 4) -15%
INTERPRETATION:
 From the above table researcher found that budget of other expense should be
made more appropriate as there is more blockage of fund than require.
 In the year 2016 the actual is not meeting the budget as company should work
more on it.
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Table no:
14 2017
Budget Actual
Employee (37,874,46
Cost 561,188,216 523,313,752 5) -7%
Depreciatio (19,658,54
n 213,766,843 194,108,297 6) -9%
Vehicle (65,183,31
754,593,730 689,410,415 5) -9%
(1,417,65
Traveling
10,916,444 9,498,790 4) -13%
Power (8,354,76
48,101,959 39,747,196 3) -17%
Repairs (8,478,63
62,580,033 54,101,400 3) -14%
Other (21,161,72
Expense 82,302,402 61,140,674 7) -26%
1,733,449,6 1,571,320,5 (162,129,10
total 27 24 3) -9%
INTERPRETATION:
 From above table researcher found that the organization has managed to make
their budget improve than the above years.
 They should yet work to get the difference minimum to make it more efficient.
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 PARETO ANALYSIS:
Table no: 15
Factory Expenses for the year of 5 year average

Result
Budget Heads Percentage % Cumulative %
(In '000)
Employee Cost 452,438 52.4% 0.0
Depreciation 194,108 22.5% 52.4
Repairs 54,101 6.3% 74.9
Vehicle 42,864 4.9% 81.2
Power 39,747 4.6% 86.1
Other Expense 37,884 4.4% 90.7
Miscellaneous expenses 23,256 2.7% 95.1
Traveling 9,499 1.1% 97.8
Overtime Cost 9,499 1.1% 98.9
Total 863397 100% 100.0
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97.8 98.9 100.0

95.1 100.0
90.7
810,000 86.1 90.0
81.2
710,000 74.9 80.0
610,000 70.0
510,000 52.4 60.0
50.0
410,000
40.0
310,000
30.0
210,000 20.0
110,000 10.0
0.0
10,000 0.0
10
1
9
INTERPRETATION:
 From the above table of PARETO ANALYSIS researcher found that major cost is
being incurring in employee cost so more focus should be given on it as it is
occupying 52.4% of total budget. As it is the major factor influencing budget of
the company.
 The researcher also found that depreciation is also incurring major cost out of the
total budget that is 22.5%. So the organization should also give more focus on
depreciation too.
 Though repairs, vehicle, power, travelling and other expenses are having low
share as compare to employee cost and depreciation but they should also be given
focus as they also influence the total budget.
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 Budget for the financial year of 2018-2019.
TYPE OF EXPENSES
(Table no: 16) Budget
659,426
Employee Cost ,610
247,252
Depreciation ,418
54,87
Vehicle 3,147
12,79
Traveling 6,101
35,77
Power 0,044
80,30
Repairs 1,544
85,30
Other Expense 0,814
1,175,720
Grand Total ,677
INTERPRETATION:
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 From the table no: 2 researcher have forecasted the employee cost on the basis of
requirement of employee in the upcoming year by considering their wage rate,
bonus and their increment in the future.
 From the table no:3 researcher have forecasted the depreciation on the basis of
available machinery and also considering the future plan to purchase new
machinery. And by also considering different rate for different assets and also on
the basis of their utilization.
 As vehicle, travelling, repairs and other expense are not certain so we cannot
calculate it on the basis of future data so it is being forecasted by considering it as
115% than the preceding year.
 From the table no:4 researcher have forecasted the budget for electricity by
considering its unit price and also use of it in the upcoming year.
6. FINDINGS & CONCLUSION:
6.1 Findings:
 PARETO ANALYSIS reveals that
 Major cost is being incurring in employee cost so more focus should be
given on it as it is occupying 52.4% of total budget.
 Depreciation should also be given more focus as it is also occupying more
shares in budget as compare to other.
 The difference between the budget and actual is due to the unplanned budget
which occurs when some unpredicted event occur in the year which was not
stated in the budget which increases the actual than the budget in some
department or reduce the actual than budget.
 Many time departments are not able to utilize the given fund which are
allotted to them for the purpose to incur expenses of the company (budget are
allotted mainly on the basis of month) and to meet the budget target they
mainly utilize the fund by the end of the term.
 GAP analysis reveals that;
 The GAP in the initial year that is 2013-14 was very high because of
employee cost, vehicle and traveling budget was inappropriate as the
actual cost was more than the actual expense which has occurs.
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 The GAP between budget and actual is reducing as in many overhead the
expense are nearly to meet it budget and it is also not increasing than
actual in the year 2017 due to proper analysis of the past data used for the
preparation of budget.
6.2 CONCLUSION:
The study has helped the researcher to successfully achieve the predetermine objective of
the study. The project has assisted the researcher to learn various things relate to
preparation of budget and to analyze it with the help of different tools like PARETO
ANALYSIS, GAP analysis and comparative analysis.
The budget plan of the company is becoming efficient during last five year but still the
budget is not efficient as there is a gap between budget and actual. Overall it was very
good opportunity for researcher to get the practical exposure and good learning in the
corporate world. The experience and learning has enhanced the knowledge of the
researcher in the field of Financial Management and it will be beneficial for career
prospects.
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7. LEARNING THROUGH THE PROJECT
7.1 PERSONAL LEARNING BEYON PROJECT
Summer Internship Project is good opportunity given to explore the theoretical

knowledge. This opportunity has helped the researcher in learning beyond project work.
The researcher had gained knowledge, leadership skills, interpersonal communication

and analytical skills. The researcher had also gained knowledge regarding the use of
ORACLE application for the various purpose of the organization.
7.2 PROFESIONAL LEARNING:
Professional learning is the continuous process of acquiring new knowledge and skills
that relate to ones profession, job responsibilities or work environment.
That researcher had learned the actual culture of the organization, responsibilities and the
way of working actually.
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The researcher has learned about how the functioning of each department works an how
all the department works are inter-related and the work to achieve a common goal.
7.3 BUSINESS LEARNING :
The researcher ha learned had learned about to deal with actual workload and behave
accordingly, in the business environment.
The researcher also learned to take initiative and complete the work in the given deadline.
8. PROJECT CONTRIBUTION:
 SUGGESTION:
 Through this it can be concluded that the overhead which are having more
overhead with more percentage should be given more preference at the
time of budgeting. As we had seen that more of the budget is being
covered by employee cost and depreciation so we should more concentrate
on it.
 With the increase in number of quantity or sales the cost will increase as
more the quantity to be produce it will require more number of overhead
so the organization will have to frame it budget according to their future
production.
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REFERENCE:
Industry profile and past, present & future: https://www.firstresearch.com/Industry-
Research/Electrical-Products-Manufacturing.html
Company profile: http://anchor-world.com/history
Director: https://www.google.co.in/search?
q=anchor+electrical+balance+sheet&oq=anchor+electrical+balance+sheet&aqs=chrome..
69i57.24653j0j7&sourceid=chrome&ie=UTF-8
SSR IMR Page 54

Organization Profile: Industry Profile:: Savitribai Phule Pune University, Pune

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Savitribai Phule Pune University, Pune.

Major companies in electrical product manufacturing industries include Anchor electrical

1.2 Past, Present & Future Of The Industry:

1.3 Company Profile

Founders and Visionaries

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Anchor Electricals Private Limited is an unlisted private company incorporated on 02

Company’s Vision and Mission

Anchor’s mission is to manufacture, innovative, eco-friendly, energy saving world-class

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7. Social Responsibility: We are committed towards making a positive and proactive

Green Life Innovation

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Green Business Innovation

 We will minimize the amount of CO2

Core Values of Panasonic

 Our business philosophy as the Foundation of our Business.

Seven Principles of Panasonic

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4. Untiring effort for Improvement

Anchor’s Quality Policy

 SWITCHES & ACCESSORIES

 WIRES & CABLES N' PVC TAPE

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Anchor’s manufacturing facilities consist of two of the

Breathe in the airy enchantment with our breath-taking

 SWITCHGEAR & PROTECTION DEVICES

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Anchor’s Factory Locations

Products Manufactured in Daman:

 Anchor purchased land in Kutch for Lamps Manufacturing 2004.

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Products Manufactured at Kutch

 Wires & Cables

 Haridwar is located in Uttarakhand state of India

Products manufactured at Haridwar

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Products Manufactured at Roorkee

Years Of Products Manufacture.

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Lighting for Commercial, Retail and Hospitality Sectors Panasonic HIT

DIFFERENT BRANDS SEGMENT UNDER ANCHOR

AWARDS AND CERTIFICATIONS

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MAJOR COMPETITORS IN MARKET

Dinesh kumar Aggarwal Managing Director

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Kazuyoshi Kajita Director

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2.3 Importance of the theme “ An analytical study on factory overheads with

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 Plan for spending.

Budget helps the organization to make expenses according to the pre-planned

 Prevent from blockage of investment.

 Tool to evaluate expense periodically.

 Measurement of departmental performance.

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 It requires more supervisory person to see after the preparation and

 This are the sub heads used under the project:

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Budgeting and Forecasting: