“Analysis of Effect

of Budgeting and
Budgetary Control
in Minimizing the  With reference to Balmer Lawrie & Co. Ltd
Cost and
Improving the
Organizational
Effectiveness”
Introduction
Balmer Lawrie & Co. Ltd. (BL) is a Government owned oil and gas explorer, It is under the ownership
of Ministry of Petroleum and Natural Gas, Government of India It was a partnership firm founded on 1
February 1867 in Calcutta , British India by two Scotsmen: George Stephen Balmer and Alexander Lawrie.
Today Balmer Lawrie is a government corporation with a turnover of ₹1612 crores and a profit of ₹232
crores as of 31 March 2020.

It became a private limited company in 1924 with a paid up share capital of ₹40 lakhs, a public limited
company in 1936 and then a Government of India Enterprise in 1972.

It has six Strategic Business Units – Industrial Packaging, Greases & Lubricants, Leather Chemicals, Travel
& Vacations, Logistics and Refinery & Oil Field Services, with offices spread across the country and abroad
  Koontz and O' Donnell define, “Budgets are statements
of anticipated results, in Financial terms as in revenue
and expense and capital budgets or in non- financial
Literature terms as in budgets of direct labour-hours,
materials, physical sales volume, on units of production. 

Review  The budgeting system of every organization provides

those saddled with the responsibilities of managing such
organization the basis to determine how to source,
allocate and utilize funds to support logical
decision making and achieve organizational goal.
Through the budgetary system, organizations have
planned activities which are effectively quantified
into monetary terms and definite periods.
 Literature Review
 One of the emerging issues in today’s globalized world is that mangers are planning for the future of their
organizations in an environment where changes in conditions are experienced at frequent intervals. The
value of currencies rise and fall, prices of input materials suddenly fluctuates and there are generally
structural imbalances and rigidities in the global economic systems. Amid these conditions, management
must make comprehensive appraisals and take critical decisions about the future of the organization in other
to remain a going concern and result oriented. According to Lambe (2014), one of the effective ways to
prepare for changing conditions is to provide a frame work that contains specific plan that is sufficiently
flexible to adapt to unanticipated changes. A comprehensive process of providing such frame work is known
as budgeting. It involves the setting of targets, and effectively monitoring of actual performance against
those budgeted. 
                      Problem Definition

 The study is Focused on Effect of Budgeting and

Budgetary Control in Minimizing the Cost and Improving
the Organizational Effectiveness”
Objectives
PRIMARY OBJECTIVES:
• TO ANALYSE THE PROCESS OF BUDGET
• TYPES OF BUDGET FOLLOWED IN AN ORGANISATION

SECONDARY OBJECTIVES :
• Measures taken in the Process of Reduction of Expenses through Budget.
• Identifying the reason of variance in the budget
• Preparation of future budget based on the Actual budget
Scope of the Study

To Understand and Providing Solution for

apply Knowledge of Allocating of Funds
Budget in the that is Required for
Industrial Perspective. every Department.
 Methodology

• The type of research is Applied research.

• The data source used for the study is Secondary data.

• For the Purpose of Preparing a Budget with the Reference to the Existing Performence Budget.
 Data Collection

• 2019-2020 Performance Budget is used for completing this study

• Company Performance budget format is included with data.
• Further Data is collected from the annual report of the organization.
Analysis Undertaken

VARIANCE ANALYSIS

VARIANCE ANALYSIS IS THE STUDY OF DEVIATIONS OF ACTUAL BEHAVIOUR

VERSUS FORECASTED OR PLANNED BEHAVIOUR IN BUDGETING OR
MANAGEMENT ACCOUNTING. THIS IS ESSENTIALLY CONCERNED WITH HOW
THE DIFFERENCE OF ACTUAL AND PLANNED BEHAVIOURS INDICATES HOW
BUSINESS PERFORMANCE IS BEING IMPACTED