...UNION BUDGET 2013-14 AND THE INDIAN TEXTILE INDUSTRY AN OVERVIEW The Indian Textiles Industry has an overwhelming presence in the economic life of the country. India employees about 100 million people in various forms related to the textile industry. This number is about 1/3rd of the total population of the United States. Owing to the employment and revenue generation, India has a cabinet level ministry for the textile sector. Textile sector can be broadly categorized into jute, sericulture, wool & woolen, man-made fiber & filament yarn industry. The Indian textiles industry contributes substantially to India’s GDP and exports earnings. The export basket consists of wide range of items containing cotton yarn and fabrics, man-made yarn and fabrics, wool and silk fabrics, made-ups and variety of garments. The major competitors for the Indian textile industry are China, Vietnam, and Bangladesh. USA is the single largest importer of textiles & clothing items. The rupee vis-a-vis dollar movement does have an impact on export of the textile industry. A 100% FDI is allowed in the textile sector under the automatic route. Several international retail brands are planning to invest in Indian textile sector as the Central Government has announced many incentives, including tax exemptions, to the textile and garment industry in the Union Budget 2013-14. According to the textile industry analysts, there will be 5-7 percent increase in foreign direct investment (FDI) with global...
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...CASE STUDY VIDEOCON INTERNATIONAL LIMITED Mr Sanjay Nigam has recently got an elevation to the level of area sales manager in Videocon International Ltd. One of the important tasks that he has to perform is to allocate quota among his five divisional sales managers. Mr Sanjay received his quota for 2010 in September 2009. He has to determine an equitable allocation of that quota. The incentive plan of the company is largely based on the quota allocation system. A portion of Mr Sanjay's compensation was also based on the level to which his divisional sales managers would be able to achieve the quota. Mr Sanjay has proved himself to be a successful sales executive after he graduated from one of the leading business schools of India. He was heading the refrigerator business for Videocon and then he was given the responsibility of managing the sales in the area covering different states in south India. In 1985, through a technical tie-up with Toshiba (Corporation of Japan, Videocon International limited launched India's first world-class colour television. Today, Videocon International Ltd., the flagship company of the Videocon Group, is India's leading manufacturer of consumer electronic products. Fired by a passion for innovation, Videocon has kept pace with the changing face of technology, constantly upgrading its manufacturing facilities to incorporate advanced technology and high standards of quality into its product range right across the spectrum. Committed...
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...have Over 6 years of experience in group financial accounting & Financial Management in varied industry area including month end and year end consolidated reports, balance sheet reconciliation, fixed asset maintenance, budgeting and forecasting, GST/BAS and payroll tax, cash flow reporting and variance analysis. As my resume highlights, I have expertise in range of accounting areas, including the following: * Reconciliation and expense reporting * Budget creation, cost analysis, and forecasting * Vendor relations * Accounts payable and accounts receivable * Financial statements and preparation * Business accounting process improvements * Month-end analysis and reconciliation * Non-profit accounting principles * Microsoft office and leading financial software * Reporting and documentation * General ledger audits and entries My key job responsibilities in my present capacity as senior accountant include, among others, the following: * Prepare and submit annual budget. * Audit expenses & adjust for allowable reimbursements. * Management of grant accounting activities; monitoring and submitting detailed reports of financial activities to grant donors; keeping a track of incoming funds and preparing monthly income statements vs. outgoing expenses spreadsheets. * Evaluate effectiveness of business processes and give recommendations for improvement. My strong communication skills...
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...A SUMMER TRAINING REPORT ON “STUDY OF CORPORATE BUDGET AND PROJECT APPRAISAL” SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF POST GRADUATE DIPLOMA IN MANAGEMENT (FINANCE) By Abhay Goyal 13DM006 Under the guidance of Dr. Girish Jain Mr. Anil Kumar Professor DGM (F&A) Accounting and Finance ONGC BIMTECH New Delhi 2013-15 TABLE OF CONTENTS CONTENTS CERTIFICATE FROM MENTOR v CERTIFICATRE FROM HR vi SUMMER PROJECT CERTIFICATE vii ACKNOWLEDGEMENT viii LETTER OF TRANSMITTAL ix LETTER OF AUTHORIZATION x EXECUTIVE SUMMARY 1 1. INTRODUCTION TO THE COMPANY 3 1.1 Background 3 1.2 Overview of the Company 3 1.3 ONGC Group of Companies 4 1.4 Basic Information 5 1.5 Organization Structure (CRC) 5 1.6 Vision and Mission Statement 6 1.6.1 World Class 6 1.6.2 Integrated In Energy Business 6 1.6.3 Dominant Indian Leadership 6 1.7 Strategic Vision 6 1.8 Salient Features about ONGC 6 1.8.1 ONGC in Global Rankings 6 1.8.2 ONGC- Achievements in ensuring Energy Security of India 7 1.9 Corporate Social Responsibility 7 1.10 Future Outlook 8 1.11 ONGC Offices All Over India 8 1.12 Organization Structure of the Finance Function of ONGC 9 2. FINANCIAL STATEMENT ANALYSIS 11 2.1 Financial Performance of ONGC (2012-13) 11 2.1.1 Sales of ONGC 11 2.1.2 Net Profit of ONGC from the Year 2007-13 11 2.1.3 Debt-To-Equity Ratio 12 2.1.4 Dividend of ONGC from 2007-13 12 2.1.5 Earning Per...
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...1) Online auctions: We believe it’s high time that we embrace the technology and make a transition to internet auctions. Develop an online platform through which growers can sell their products and buyers can purchase them. Both of them will be charged a 0.1 % of transaction amount. This will not only bring in additional revenue but also make the whole process of buying and selling a lot easier. These are the financials involved. We estimate that online portal will cost us around $3 million. With the revenue that we will generate from it, cost of portal will be covered in 341 days. 2) Service Customization As per the recent trend, many clients don’t want full range of auction services. Hence sometimes they bypass auctions and directly contact growers. Taking this into account, we have decided to offer clients what they want. Auctioneers will offer services in the form of bundles. Clients can customize their bundles as per their needs. 3. Situational Analysis 3.1. SWOT Analysis Strengths: * Rich heritage ( Considered America’s original motorcycle company) * Strong brand equity because of snowmobiles and off-road vehicles * Strong supply chain and distribution channel of parent company (Polaris): Polaris' marketing activities are designed to promote and communicate directly with consumers as well as to assist the selling and marketing efforts of its dealers and distributors. The company provides and advertises discount or rebate programs...
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...Prices: It helps the management in fixing selling prices of products or services by providing detailed cost information. 5. Helps in Inventory Control: It helps in inventory by using various techniques such as ABC analysis, Economic Order Quantity, Stock levels, Perpetual Inventory system and Continuous Stock Taking, Inventory Turnover Ratio etc. 6. Helps in Cost reduction: It helps in the introduction of cost reduction programme and finding out new and improved method to reduce costs. 7. Helps in measurements of Efficiency: It helps in measurements of efficiency of operations through establishment of standards and variance analysis. 8. Helps in preparation of Budgets: It helps in the preparation of various budgets such as Sales Budget, Production Budget, Purchase Budget, Man-Power Budget, Overheads budget. 9. Helps in identifying Unprofitable Activities: It helps in identifying unprofitable activities so that the necessary...
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...Discussion Budget, Savings, etc., what are the definitions of these terms? According to an article entitled “Financial Literacy to Everyone” at www.practicalmoneyskills.com, budgeting is plan for your future income and expenditures that you can use as a guideline for spending and saving. Budget came from the old French word “bougette” which means purse. It is practically, a plan and list of all planned expenses and revenue. It is a plan for borrowing, saving, and spending. So why Budget? An average student spends his allowance for books, student housing, tuition fee, and food. These are all expenses encountered not only by students but, in general, most of the people in the world. There are generally three types of expenses usually faced by students, the Academic, Living, and Personal Expenditures or Costs. Academic Costs are usually what eats up the total budget of students. It contains the different expenses that are required in able to carry out a student’s academic life. It varies from tuition fees until the very miniscule expenses utilized for photocopying hand-outs from your professor. Living Costs, on the other hand, are expenses that a student need for day to day living however, indirectly related to academics. These include your expenses in utilities (e.g. electricity, water, and internet bills), personal care expenses (shampoo, soap, etc.), and clothing and food expenses. Lastly, Personal Costs are expenditures that are unique yet still a part of a student’s budget. This...
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...of soap has been fixed at $3.00. The company is in the midst of preparing its budget for 2008 and has furnished the following information. Sales esti mates (in bars of soap): January 120,000 February 150,000 March 100,000 April 120,000 May 140,000 Inventory policy: Closing inventory for finished goods is equal to 20% of next month sales estimates. production requirement. This policy has been maintained since the time the company started its soap production. Required: Prepare the following budgets for the 1st quarter ending March 2008: i) Sales budget ii) Production budget iii) Direct Material Purchase budget (monthly breakdown is not required for this part) Note: Round your answer to the nearest unit or dollar. (3 + 4 + 4 = 11 mar ks) Solution i) Sales budget for the quarter ending March 2008 (3 marks) Month January February March Total Estimated Sales units 120,000 150,000 100,000 370,000 Selling Price per unit $3 $3 $3 Sales Revenue ($) 360,000 450,000 300,000 1,110,000 ii) Production budget for the quarter ending March 2008 (4 marks) Particulars / Month Sales estimates (+) Closing inventory requirement Total requirement (-) Opening inventory Production requirement January 120,000 30,000 150,000 24,000 126,000 February 150,000 20,000 170,000 30,000 140,000 March 100,000 24,000 124,000 20,000 104,000 Total 370,000 24,000 394,000 24,000 370,000 iii) Direct Material Purchases budget for the quarter ending March 2008 (in total) Production requirement for the quarter...
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...Cost Accounting Tabitha Smith ACC 310 Christine Errico January 12, 2011 Cost Accounting What is cost accounting? Cost accounting as referred to as managerial accounting is a system of accounting used specifically by managers (Lanen, Anderson, & Maher, 2011, p. 6). Cost accounting measures, records and reports information about costs to help managers to form a well informed decisions for an organization (Lanen, Anderson, & Maher, 2011, p. 6). Cost accounting methods and their use, budgets including discipline, construction, and elements, and variance analysis are important aspects of cost accounting as a whole, which is an important tool for a successful organization. The main goal of cost accounting is to help managers to maximize value within their organization (Lanen, Anderson, & Maher, 2011, p. 3). One of the fundamental services of cost accounting is to provide information to the manager to guide them to make effective valuable decisions (Lanen, Anderson, & Maher, 2011, p. 3). An essential objective of cost accounting is to create an effective value chain (Lanen, Anderson, & Maher, 2011, p. 4). A value chain is a set of activities in which raw materials are converted into goods and services for consumers to purchase (Lanen, Anderson, & Maher, 2011, p. 4). An organization is responsible to coordinate with their vendors and suppliers along with their distributors and customers to accomplish their objective (Lanen, Anderson...
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...The Vershire Company has to keep tight controls over their plants, budgets, and performance in terms of efficiency and effectiveness, because customers can easily purchase from another manufacturer if cost, quality, and service are not met. The planning strength of the Vershire Company is that a sales budget is formulated at the corporate level and starts with a forecast, which is created and sent to the divisional managers for review. This allows divisional managers to have some input for their budget, which will add to the accuracy. Corporate controllers also visit each plant for additional input before final submission. The company I work also formulates a sales budget; we are actually starting the process in October. We look at our historical sales data, our current sales, and our sales targets for the coming year. The sales budget leads to the development of the other budgets, manufacturing, production, purchasing, inventories, sales and other expenses. Our budgets are usually determined by end of November, no later than mid December for the New Year. All departments have input and are responsible for their budgets. Our forecasting and planning efforts are examined on a monthly basis throughout the year as well as daily inputs from the sales quotation department through their quote follow-up efforts. This allows us to keep tighter controls on inventories to keep us within the set budget as well as keep reasonable lead times for the different product lines. The weakness...
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...considerable autonomy in decision-making. Under a general manager were two line managers responsible for production and marketing functions. Over the years, the Aluminum Can Division had built plants scattered throughout the country. Each plant is responsible to serve a geographical area, both for large and small-scale customers. The industry is very competitive, as each manufacturer employs the same technology and everyone was viewed by customers to have the same product quality as anyone in the industry. Thus, customers can readily shift from one supplier to another in cases that delivery schedulesand product qualities were not met. Vershire employs a long-term budgetary control system. Corporate sales budgets are prepared both in a top-down and bottom-up approach. These sales budgets are then translated to sales target per production plants and became the basis of target profits for each plant. Upon the end of the period, managers are then evaluated based on these target profits, even when budgeted sales are not met. Also, other performance measures are at place that is inconsistent and do not derived meaningful results. Although Vershire has been successful especially in the Aluminum Can division, the changing environment and industry conditions may result to necessary changes to company policies and procedures. Problem Statement How can Vershire maintain its profitability and current position in the industry? How can the company delegate...
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...construction of $2,100,000 and $780,000 for plant equipment. At this point it would appear that with a proposed budget limit of $2,750,000 set by the company’s Board of Directors that we are on target with an estimated total budget of $2,633,532 for the Huntsville Plant Project. As you can see we don’t have very much room (budgetary) for any missteps therefore, it will be necessary for very member of the team monitor and control individual budgets and areas of responsibility. Within the Huntsville project is divided into key project phases and probably the most important phase to ensure the success of the entire project is the planning phase. There a few critical deliverables that must be completed within the ten weeks set aside for planning. Just to point out a few key “must happens” such as; procure the plant’s worksite, obtain all needed permits and approvals and the selection of an general contractor not to say we can relax or slack on any part of the project’s tight budget and schedules, again the planning phase is only ten weeks with a budget of only $285,754 the project’s first test. After the planning phase is the preparation phase were the project is really defined and it is critical to the success of the project that the entire team stay focus on their assigned tasks and the big picture, completion of the Huntsville project on budget and on schedule. We have a budget of $1,822,442 and 47 weeks to prepare the worksite and complete building the new plant. If, we are to...
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...the influx of machine cut furniture, the market for his product has been reduced over the years. The company must decide soon to keep things as they are, or spend the money needed to buy the appropriate machinery to produce the high quality products they desire. Although the machinery will be expensive from the start, they would eventually pay for themselves over time on the amount of labor saved. There has also seemed to be a lack of budgets and performance reports in the decision-making process. The company could use these reports in many areas to keep the company making profit, as well as shift the company in the proper direction for the future. One thing that can be taken away from the current data is that the company produced over budget on its mid-grade products, while failing to meet the budget on the high-end products. If there was a proper understanding of the demand for their products, money could have been saved on inventory and overhead while shifting focus to the mid-grade products that consistently produced above budget. The company needs to shift their focus on being a distribution chain for other manufactures while focusing on their profit potential for their current...
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...Analysis of Case Study Christopher Rubio Week 4 HCS/483 When ever an organization is thinking of implementing a New It Initiative they must ensure that they are well organized and fully understand the length and time a project may take. According to Cook “ Project failure occurs when a project is significantly over budget, takes must longer than estimated timeline, or has to be terminated because of so many problems have occurred that proceeding is no longer judged to be viable.” With Memorial Health System failed implementation of a CPOE system they had many problems including an over budgeted project, Lack of belief in project, Insufficient leadership support, Failure to respect uncertainty, Failure to anticipate short-term disruptions, and initiative undernourishment. In this paper we will discuss all six of these problems along with give possible solutions to each of them. Failure to respect uncertainty: When the system was finally implemented it was had a lot of bugs in the system. They implemented the system at all of facilities. Because of this as well as a few other issues such as lack of training the system was taken offline and they continued with the old system. The solution to this problem would have been to implement the system in one location instead of the entire hospital. This place can be used as the test facility in which you can do two things. One you can work all the bugs out and the other would be to use it as a training facility where you can send...
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...FINANCIAL TECHNIQUES USED IN THIS STUDY Budget and budgeting techniques In order to properly plan and set goals, several different budgets must be created. This article discusses some of the more common budgets used by businesses. SALES BUDGET: The sales budget is an estimate of future sales. It is used to create company sales goals. PRODUCTION BUDGET: Product oriented companies create a production budget. It is an estimate of the number of units that must be manufactured in order to meet the sales goals. The production budget also estimates the various costs involved with manufacturing those units, such as labour, material, and other expenses. CASH FLOW BUDGET: The cash flow budget is a prediction of future cash receipts and expenditures for a particular period. It usually covers a period in the short-term future. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside financing. MARKETING BUDGET: The marketing budget is an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service. PROJECT BUDGET: The project budget is a prediction of the costs associated with a particular company project. These costs include labour, materials, and other related expenses. The project budget is often broken down into specific tasks, with task budgets assigned to each. CAPITAL BUDGET: The capital budget is a prediction of company needs in regard...
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