My Final Project

INTRODUCTION
Present business world is full of competition, uncertainty and exposed to different types
of risks. The complexity of managerial problems has led to the development of various
management control techniques and procedures useful for the management in managing
the business successfully. One of the essential features of modern business
management is planning and control.
Budgetary control is the most common, useful and widely used standard device of
planning and control. It is very helpful for the business organization to conduct a
business in the competitive market.
Meaning of budget & budgetary control
A budget is a detailed plain of operations for some specific future period. It is an

estimate prepared in advance of the period to which it applies. It acts as a business
barometer as it is complete programmed of activities of the business for the period
covered
Besides' budgetary control' refers to a system of management and accounting control

by which all operations and output are forecast as far as ahead as possible and the actual
results, when known are compared with the budget estimates. Thus the term budgetary
control is designed to evaluate the performance in terms of goals budgeted.
Types of functional budgets
Sales Budget: These should be analyzed as between products, periods and areas. By
reference to the trends disclosed by the past figures and with the aid of information
supplied by the sales department forecast of anticipated sales for the forthcoming period
can be made. The sales forecast or sales budget is the basic core budget on which other
budget depend. As such rational efforts should be made to develop a proper sales budget
which can be reasonably accomplished. Preparation Of Sales Budget: It has already
been started that sales budget is prepared by the sales manager. He is therefore, to
consider the following matters at the time of its preparation:
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 Analysis of Historical Sales: Analysis of past sales, with the help of statistical
measurements, cyclical trends seasonal fluctuations etc.
 Reports by Salesman: Salesmen also can submit a report to the sales manager
which is highly significant since they are in frequent contact with customer
having an internal knowledge about the habits tastes and demand of customers.
 Business Conditions: The general business condition can be also studied from
the national as well as international economic statistics, political influences
etc…
 Market Analysis: .Market analysis may be employed by the large firms where's
specialists are employed by the small firms for collecting necessary information
about the market demand products-design fashion trends, degree of competition
etc.
 Special Condition: There are certain events which may influence sales outside
the firm e.g. introduction of electricity to a village will increase the demand for
electrical appliance.
Production Budget: Production budget is prepared after the preparation of sales

budget, to the determine quality of goods which should be produced to meet the budget
sales .It is expressed in physical terms, such as (a)Union of output, (b)Labor of house
and (c) Material requirement.
Raw Material Budget: This budget reveals the quantities of materials which are
needed to make the budget production. It also shows the anticipated cost of materials
to be purchased, terms of credit from suppliers, the time taken to procure raw materials
etc.
Direct Labor Budget: The direct labor budget tells about the estimates of direct
labor requirements essential for carrying out the budgeted output. The direct labor cost
is estimated as results of the evaluation of standard hours worked or the quantity of
work done by the individual worker in terms of certain average wage rate. This wage
rate may be different for each department.
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Manufacturing Overhead Budget: Manufacturing overhead include the cost of
indirect labor indirect expenses. The manufacturing overhead can be classified into
three categories (1)Fixed i.e. which tend to remain constant irrespective of any change
in the volume of output.(2)Variable i.e. which tend to vary with the output and(3)Semi-
variable i.e. which are party variable and party fixed.
Selling and Distribution Overhead Budget: The selling expenses include all
items of expenditure on the promotion, maintenance and distribution of finished goods
Sales off cent rent, salaries. Depreciation and miscellaneous expenses are provided for
as a fixed amount per month.
Cash Budget: The cash budget is a summary of the firms expected cash inflows and
outflows over a particular period of time .In other word, cash budget involves of a
projection of future cash receipts and cash disbursements over various time intervals.
There must be a balance between cash and the cash demanding activities.
The Master budget: The institute of cost and management accountings England
defines it as the Summery Budget, incorporating its component functional
budgets, which is finally approved, adopted and employed. In other words, it is a
summery budget which is prepared from and summarizes the entire functional budget.
Fixed Budgets: It is a budget in which targets are rigidly fixed.
Accord ting to I.C.M.A. London. Fixed budget is a budget which to remain in changed
irrespective of the level of activity actually attained. Such budgets are usually prepared
from one to three months in advance of the fiscal year to which they are applicable.
Flexible Budget: Fixed budget is generally rigid as it is based on one level of activity
and one set of condition and hence not quite helpful for control purpose. A flexible
budget is therefore, designed to provide information as to sales, expenses and profits
for different levels of activity which may be obtained.
Performance Budget: Among the methods which relate costs to outputs,

performance budgeting stands out the most prominent. It has emerged as a whole new
way of considering fiscal responsibility.
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Zero-Base Budgeting (ZBB): The ZBB take account consequences that may flow
if the project or responsibility centre is scratched. In other words, the objective of ZBB
is to formulate the budget so as to estimate the amount of expenditure likely to be
incurred if the existing project resumes operation after being scratched. This method is
called Zero Base budgeting since the existing system is discontinued and a fresh is made
or the existing system is reviewed on the assumption of Zero-Base.
Advantages of budgetary control:
Budgetary control has become an essential tool of management for controlling costs
and maximizing profits. It acts as a friend, philosopher and guide to the management.
It advantages to management can be summarized as follows:
 Economy in working: It brings efficiency and economy in the working of the

business enterprises .Even though a monetary reward is not offered, the budget
become a game.
 Buck- passing avoided: It establishes divisional and departmental

responsibility. It thus prevents alibis and buck-passing when the budget figures
are not met.
 Establishes coordination: It coordinates the various divisions of a business, the

production, marketing, financial and administration divisions.
 Acts as a safety signal: It acts as a safety signal for the management. It show
when to proceed cautiously and when manufacturing expansion can be safety
undertaken
 Adoption of uniform policy: Uniform policy without the disadvantages of

military type of business organization can be pursued by all division of business.
 Decrease in production costs: Seasonal variation in production can be reduced

by developing new fill in products.
 Adoption of standard costing principles: The use of budget figures as measures

of operating performance and financial position makes possible the adoption of
the standard costing principle in divisions other than the production division.
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 Optimum mix: It helps management in obtaining the most profitable
combination of different factors of production.
 Favor with credit agencies: management who have developed a well ordered
budget plan and who operate accordingly, receive greater favor from credit
agencies.
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OBJECTIVES OF THE STUDY
The study is based upon the part of financial performance that has been taken in to
consideration i.e., budgetary concepts.
 To study the profiles of cement industry & my home industry private limited.
 To study the financial projections of my home industries from the financial

years 2013-14 to 2017-18.
 To identify the variance between budgeted & actuals of my home industries

from the financial year 2013-14 to 2017-18.
 To offer suggestions if any based on the finding.
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METHODOLOGY OF THE STUDY
The information for the study has been obtained from two sources namely.
 Primary Data
 Secondary Data
Primary data: The data for study has been collected from the management of the
company.The information about the industry profile and company profile was gathered
from HRD, My Home Industries limited.and the data about the budget and budgetary
control was gathered from Financial Department, My Home Industries limited
Secondary data: This is taken from the annual reports, websites, company journals,
magazines and other sources of information of steel plant.
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FRAMEWORK OF THE STUDY
The project report entitled “MY HOME INDUSTRIES LIMITED”,

Visakhapatnam.
 The first chapter gives the introduction to Inventory Management and contains
objectives, scope of the study, methodology, frame work and limitations of the
study.
 The second chapter comprises about the project topic in a detailed manner
collected from textbooks, journals and various other sources.
 The third chapter deals with the profile of industry and company.
 The fourth chapter carries the data analysis of the financial reports available
with tables, graphs and interpretation.
 The last and fifth chapter concludes the study with summary, findings and some
suggestive measures for better performance.
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LIMITATIONS
 The period of study that is 8 weeks was not enough to go into the detailed
aspects of the study.
 The study is carried basing on the information and documents provided by the
organization and based on the interaction with the various employees of the
respective departments.
 Most of the matters related to budgets were confidential. So it is not possible to

gather much information.
 Budget that were prepared are only based upon trend at the time preparation.
 Flexibility with in the budget is not possible.
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INDUSTRY PROFILE
India is the second largest producer of cement in the world. No wonder, India's
cement industry is a vital part of its economy, providing employment to more than a
million people, directly or indirectly. Ever since it was deregulated in 1982, the Indian
cement industry has attracted huge investments, both from Indian as well as foreign
investors.
India has a lot of potential for development in the infrastructure and construction
sector and the cement sector is expected to largely benefit from it. Some of the recent
major initiatives such as development of 98 smart cities are expected to provide a major
boost to the sector.
Expecting such developments in the country and aided by suitable government

foreign policies, several foreign players such as Lafarge-Holcim, Heidelberg Cement,
and Vicat have invested in the country in the recent past. A significant factor which
aids the growth of this sector is the ready availability of the raw materials for making
cement, such as limestone and coal.
Last decade cement industry has a compound growth of 8% with increase in

housing sector. In recent years the growth is not so good as compared to earlier decade,
because of slow economical growth. Cement, being a bulk commodity, the per capita
consumption is still very less, and because of this there is high possibility of growth of
cement industry. At present Lafarge, Ultratech and Wonder cement have installed high
capacitive plants which will further increase the production of cement in India.
India is very vast and this makes cement industry to divide in five regions.
North, East, West, South and Central region, so that transport and logging can be easy
for cement dealers and consumers. The south region has the highest installed capacity
of cement from other regions. One third of total capacity is produced by southern
region.
India is producing 350 million tonnes per year and it is expected to grow to 550
million tonnes by financial year 2020. India is very vast, so the development of cities
and rural areas will certainly starts from infrastructure and demand of cement will
increase also.
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As economy will rise, development of cities and rural areas would increase
cement demand in India. Cement industry plays an important role in development of a
country and has a correlation with Indian GDP also. Projects are coming to make the
world’s highest bridge over Himalayas, expecting to be completed in 2016.
Indian cement industry will be soon among the highest contributor in the growth
of economy. As potential market of cement is increasing day by day, production of
cement will raise and drive our economical growth also.
HISTORY
Cement industry was started in the year 1914. At that time the only plant of
cement production was set in porbandar; Gujarat. Its capacity was only 1000 tonnes per
annum. It was the starting of cement process or learning of cement process in India.
Now India is the second largest producer of cement in whole world. India is
having more than 85 Cement Company with more than 210 plants so far. In cement
industry there are grinding units which only meant for grinding process.
Cement plant started with its capacity from 1000 tonnes per annum. The first
cement produced was by Portland cement in Calcutta. In1889, directory of George
watts wrote “Economic products of India” stated Portland cement but it was an
unorganized procedure for manufacturing cement. In 1914, Porbandar plant showed
direction to others and got succeeded in organized cement process and produced
cement.
After two years many company tried, few company got failed and some others
come up with a new way of cement production. Two plants came into existence, one
was in Lakheri in Rajasthan and other was from Katni from Madhya Pradesh. In 1918,
cement production capacity was raised to 85000 tonnes per annum. Between 1919 and
1924, six new plants came into existence and the earlier plants capacity got raised which
results in increased capacity of cement production of India.
In 1924 total capacity of cement production came to 0.56 million tonnes per
annum. In early twenty century demand of cement by government got decreased and it
affected the production of cement. This was a downfall for cement industry and
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suppliers and dealers got affected by that too. In 1925 committees were formed by the
government to control the prices and tariffs of cement.
The 70’s saw a boost in cement production and capacity raised to 17.6 million tons per
annum. In 1979-80 it touched 24.3 million tons per annum. From here rise and downfall
both starts but rise in production capacity was tremendous as compared to downfall that
time.
In 2018 many other company came into cement market with investing in small
cement plants. Those mini plants now become the major plants of India. At present
India is having a high demand of cement and proper supply to that need also.
GROWTH OF CEMENT INDUSTRTY IN AP
The cement industry in Andhra Pradesh is expected to be least impacted by the

creation of Telangana. This industry in the State is predominantly concentrated in the
Telangana region, which has most of the limestone deposits. In fact, the units located
in the region have easy access to the markets of Karnataka and Maharashtra. The basic
building material can also drive the growth and infrastructure development in the new
State, analysts feel.
The cement industry in Andhra Pradesh, one of the largest in the country, has
around 40 units, with an installed capacity of about 55 million tons. Interestingly,
international majors such as CRH of Ireland, Italicement, Vicat of France all have
presence in the State.
The industry composition is also well balanced with the presence of big players
such as UltraTech, Zuari, India Cements, ACC, Jaypee, JSW, Orient, Kesoram, Madras
Cement. Also present are units promoted by coastal Andhra industrialists like KCP,
Anjani, Hemadri, Rain Group, DCL and NCL to name a few. There are a few major
ones owned by Rayalseema entrepreneurs like Penna Cements, Bharati cement (Y.S.
Jaganmohan Reddy promoted), Panyam etc.
Though, nearly 55 per cent of the units and production come from Telangana,
there are only a few big players from here like the My Home Group, which has a joint
venture with CRH, and Sagar, which has tie-up with Vicat Group and Visakha Cement.
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The ACC unit in Mancherial has also been taken over by entrepreneurs from
Adilabad district in the region. As of now, Nalgonda district has the highest
concentration of cement plants, followed by Ranga Reddy and Adilabad in Telangana.
This is followed by Jaggayyapeta, Krishna district and near Guntur in Andhra region.
In the Rayalaseema area, units are spread across Kadapa, Kurnool and Anantapur
districts.
Interestingly, the cluster comprising Nalgonda (Telangana) and Guntur,

Jaggaypet in the Seemandhra region, which also exports to Maharashtra, Karnataka,
Odisha will continue to do well despite the bifurcation.Nalgonda accounts for 50 per
cent of limestone deposits, followed by Kadapa and Adilabad districts.
“Andhra Pradesh’s bifurcation might turn into an advantage for those units in
Nalgonda due to access to key markets in Karnataka and Maharashtra while those in
Seemandhra region might have limited opportunities,’’ said a senior executive of a
Hyderabad-based listed cement company.
However, the cement sector itself is going through tough times with power cuts
and slowdown in the realty sector and significant drop in funds for Government housing
and irrigation projects. This has led to increase in prices, which are hovering around
Rs. 300 per 50 kg bag and simultaneous cut in production (average of 50-60 per cent of
capacity).The pangs of bifurcation has already led to a lull in the realty sector.
“There are mixed views about growth of real estate after the bifurcation of
Andhra Pradesh. There are also high hopes of huge funds flowing in for the creation of
infrastructure for a new capital in the Seemandhra region.“It remains to be seen how
these developments work out as they will have a huge impact on the cement sector,’’
industry sources said.
GROWTH OF CEMENT INDUSTRY IN INDIA
India's cement industry is a vital part of its economy, providing employment to

more than a million people, directly or indirectly. Ever since it was deregulated in 1982,
the Indian cement industry has attracted huge investments, from both Indian and foreign
investors, making it the second largest in the world. The industry is currently in a
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turnaround phase, trying to achieve global standards in production, safety, and energy-
efficiency.
With nearly 350 million tonnes (MT) of cement production capacity, India is
the second largest cement producer in the world. The cement production capacity was
366 MT in FY15 (December 2014), and is estimated to touch 550 MT by FY 20. Of the
total capacity, 98 per cent lies with the private sector and the rest with the public sector.
A total of 188 large cement plants together account for 97 per cent of the total
installed capacity in the country, while 365 small plants make up the rest. Of the total
188 large cement plants in India, 77 are located in the states of Andhra Pradesh,
Rajasthan and Tamil Nadu.
The Government of India is strongly focused on infrastructure development to

boost economic growth and is aiming for 100 smart cities. It plans to increase
investment in infrastructure to US$ 1 trillion in the 12th Five Year Plan (2012–17). The
government also intends to expand the capacity of the railways and the facilities for
handling and storage to ease the transportation of cement and reduce transportation
costs.
The cement sector has potential to grow in the North Eastern region, which has
been in cement deficit for several years; the present demand in the region is around 5.2
metric tonnes per annum (MTPA). Also, major policy and fiscal initiatives are expected
to catalyse infrastructure and industrial development in the region, driving the demand
for cement.
India has a lot of potential for development in the infrastructure and construction
sector and the cement sector is expected to largely benefit from it. Some of the recent
major government initiatives such as development of 100 smart cities are expected to
provide a major boost to the sector.
Expecting such developments in the country and aided by suitable government

foreign policies, several foreign players such as Lafarge, Holcim and Vicat have
invested in the country in the recent past. A significant factor which aids the growth of
this sector is the ready availability of the raw materials for making cement, such as
limestone and coal.
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The eastern states of India along with the Border States will be the newer and
virgin markets for Cement Company and will contribute to their bottom line in future.
In the next 10 years, India will become the main exporter of clinker and gray cement to
the Middle East, Africa, and other developing nations of the world. Cement plants near
the ports, for instance the plants in Gujarat and Visakhapatnam, will have an added
advantage for exports and will logistically be well armed to face stiff competition from
cement plants in the interior of the country.
A large number of foreign players are also expected to enter the cement sector
in the next 10 years, owing to the profit margins, constant demand, and right valuation.
Cement Company will go for global listings either through the FCCB route or the GDR
route. With help from the government in terms of friendlier laws, lower taxation, and
more infrastructure spending, the sector will grow and will take India’s economy
forward along with it.
Classification of cement
Bonding minerals with the help of its adhesive and cohesive properties firmly is known
as cement. It is adhesive in nature. It is used to bond bricks, stones, sand and other
materials used in building. It is known as hydraulic as with the use of water, it got more
hard and strong. There are different types of cement in markets. Every cement is used
for its specific purpose in building. India produces different types of cement which are
defined below and consist of different chemical proportion.
 Ordinary Portland cement

 Portland pozzolana cement
 White cement
 Water proof cement
 Specialized cement
 Rapid hardening Portland cement
 Portland blast furnace slag cement
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Key Drivers of Cement Industry
Cement industry is driven by many factors or by many sectors such as infrastructure,

housing sector, Indian government economy, GDP of India, government rural
development programs etc.
GDP of India affects housing and infrastructure development of India and this results
in changed prices of cement. These changed prices of cement ultimately affect demand
and supply of cement and it directly influence cement production of company.
Some key drivers of cement industry
 Indian real estate market

 Indian infrastructure scenario
 Government programs like rural or urban development etc.
 GDP of India
 FDI of India
A few years back Indian cement industry has gone through crucial condition when
company stopped their running plant of cement production due to decrease in demand
of cement.
This happened because of the downfall in Indian economy and this resulted in price
reduction of cement too. Rise and downfall in Indian economy directly affects demand
and supply of cement which further affect cement production also.
SWOT Analysis of Cement Industry
Strengths
 India is the second largest producer of cement in whole world and china is at
first place.
 India is a developing country so production cost of cement is very less.
 Easy availability of labor for Cement Company.
 Availability of high grade limestone mines in India.
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Weakness
 Demand supply gap.

 Overcapacity.
 GDP impact over Cement Company.
 Increased cost of production or coal.
 High interest rates on housing sector.
Opportunities
 Strong growth of Indian economy.

 Increased infrastructure growth.
 Technological advancements in machines and equipment’s for production
process of cement in India.
 Rise in housing sector.
 Growing middle class.
 FDI.
Threats
 Overcapacity can decrease margins of cement price.

 Power shortage may affect cement production. Government rules to provide
rebate for foreign company.
 Price of coal may be a threat in future.
GROWTH
With nearly 455 million tonnes (MT) of cement production capacity, India is
the second largest cement producer in the world and accounts for 6.9 per cent of world’s
cement output. The cement production capacity is estimated to touch 550 MT by FY
20. Of the total capacity, 98 per cent lies with the private sector and the rest with the
public sector. The top 20 company account for around 70 per cent of the total
production.
A total of 210 large cement plants together account for 410 million tonnes of
installed capacity in the country, while 350 mini cement plants make up the rest. Of the
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total 210 large cement plants in India, 77 are located in the states of Andhra Pradesh,
Rajasthan and Tamil Nadu. Cement production in India increased from 230.49 million
tons in 2016-17 to 297.56 million tons in 2017-18.
India’s exports of cement, clinker and asbestos cement increased at CAGR of

10.37 per cent between FY12-FY18 to reach US$ 433.87 million. During the same
period imports of cement, clinker and asbestos cement increased at a CAGR of 11.14
per cent to US$ 174.36 million in FY18.
Dalmia Cement Ltd has become the first cement company in India to commit
itself to 100 per cent renewable power. The company plans to increase its capacity from
existing 2.4 MT to 15-20 MT by 2021 by investing US$ 1.27 billion.
The Government of India is strongly focused on infrastructure development to

boost economic growth and is aiming for 100 smart cities. The government also intends
to expand the capacity of the railways and the facilities for handling and storage to ease
the transportation of cement and reduce transportation costs. These measures would
lead to increased construction activity thereby boosting cement demand.
The eastern states of India are likely to be the newer and virgin markets for
Cement Company and could contribute to their bottom line in future. In the next 10
years, India could become the main exporter of clinker and gray cement to the Middle
East, Africa, and other developing nations of the world. Cement plants near the ports,
for instance the plants in Gujarat and Visakhapatnam, will have an added advantage for
exports and will logistically be well armed to face stiff competition from cement plants
in the interior of the country.
Due to the increasing demand in various sectors such as housing, commercial

construction and industrial construction, cement industry is expected to reach 550-600
Million Tons Per Annum (MTPA) by the year 2025.
A large number of foreign players are also expected to enter the cement sector,
owing to the profit margins and steady demand. In future, domestic cement company
could go for global listings either through the FCCB route or the GDR route.
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With help from the government in terms of friendlier laws, lower taxation, and
increased infrastructure spending, the sector will grow and take India’s economy
forward along with it.
EXPORTS
Abounding in about 130 big and 300 small cement plants, India's cement production
capacity stands at 167.36 million tons. Currently, the cement industry in India is
positioned at number 2 in the world. With incorporating modern techniques in the
production, the Indian cement industry has not only been able to meet domestic
demands but also serving well to the international arena. Undoubtedly, the credit for
this can be attached to the superlative quality of the cement produced in India, which
in turn has helped in registering boom in exports.
But, along with that, growth in Indian cement export has also been the result of the
varieties that are produced here. Ordinary Portland Cement (OPC), Portland Blast
Furnace Slag Cement (PBFS), Portland Pozzolana Cement (PPC), Rapid Hardening
Portland Cement, Oil Well Cement, Sulphate Resisting Portland Cement and White
Cement are some of the types of cement that are available here.
Some cement plants have even gone an extra mile in their endeavor to launch
committed jetties in order to promote huge transportation and export.
CHALLENGES
Cement industry currently faces multiple challenges both internal and external. On one
hand, demand is moderating especially in the North region and muted to negative
growth in Southern region, industry is also facing higher input and fuel costs.
The situation was also aggravated due to hike in diesel prices, making transport cost
(freight) dearer. With low demand in over supply regime, industry is unable to pass on
the higher costs to end user thereby keeping their margin under pressure or voluntarily
opt to keep volume low. Given the backdrop of Government thrust to accelerate
economic growth, industry expectations are high to reduce excise duty on cement which
in our view is unlikely.
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With country's GDP pegged to grow more than annually going forward, cement
industry is likely to grow in double digit over long term and outlook for demand remains
positive.
With a view to have inclusive growth of all sectors, emphasis would be to create
demand for real estate sector with focus on affordable housing, government led higher
infra spending in the form of higher fund allocation and incentive for public private
partnership (PPP) to keep robust demand for cement.
OPPORTUNITIES
The housing sector is the biggest demand driver of cement, accounting for about 67 per
cent of the total consumption in India. The other major consumers of cement include
infrastructure at 13 per cent, commercial construction at 11 per cent and industrial
construction at 9 per cent.
India’s total cement production capacity is nearly 425 million tonnes, as of September
2017. The growth of cement industry is expected to be 6-7 per cent in 2017 because of
the government’s focus on infrastructural development. The industry is currently
producing 280 MT for meetings its domestic demand and 5 MT for exports
requirement. The country's per capita consumption stands at around 225 kg.
The Indian cement industry is dominated by a few company. The top 20 cement
company account for almost 70 per cent of the total cement production of the country.
A total of 210 large cement plants account for a cumulative installed capacity of over
350 million tonnes, with 350 small plants accounting for the rest. Of these 210 large
cement plants, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil
Nadu.
On the back of growing demand, due to increased construction and infrastructural

activities, the cement sector in India has seen many investments and developments in
recent times.
According to data released by the Department of Industrial Policy and Promotion

(DIPP), cement and gypsum products attracted Foreign Direct Investment (FDI) worth
US$ 5.25 billion between April 2000 and December 2017.
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Some of the major investments in Indian cement industry are as follows:
 Ultratech Cement has purchased a 98.47 per cent stake in Binani Cements for
Rs 7,266 crore (US$ 1.12 billion). The deal will help Ultratech achieve greater
capacity and markets its product in north-India.
 JK Cement is planning to invest Rs 1,500 crore (US$ 231.7 million) over the
next 3 to 4 years to increase its production capacity at its Mangrol plant from
10.5 MTPA to 14 MTPA.
Government Initiatives
In order to help the private sector company thrive in the industry, the government has
been approving their investment schemes. Some such initiatives by the government in
the recent past are as follows:
 The State Government of Chhattisgarh has auctioned one block of Limestone

(Kesla II) in Raipur District having estimated reserves of 215 million tonnes
valued at Rs 10,367 crore (US$ 1.61 billion), and would earn a cumulative
revenue of Rs 11,894 crore (US$ 1.85 billion) to State Government over the
lease period.
 In Budget 2018-19, Government of India announced setting up of an Affordable
Housing Fund of Rs 25,000 crore (US$ 3.86 billion) under the National Housing
Bank (NHB) which will be utilized for easing credit to homebuyers. The move
is expected to boost the demand of cement from the housing segment.
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COMPANY PROFILE
My Home Industries Pvt. Ltd, part of a leading 4000cr business conglomerate- My

Home Group headquartered at Hyderabad. My Home Industries, manufacturer of
world-class Maha Cement, is a renowned name in the industry. To suit various
construction needs of different geographies, Maha Cement has various brands under its
name. All the products surpass the standards set by Bureau of Indian Standards (BIS).
At My Home Industries Pvt. Ltd. (MHIPL), every process is closely monitored and
controlled, right from the selection of raw materials each process is cautiously carried
out through each and every stage until the finished product is packed and dispatched.
The product ensures easier workability, lesser permeability, guards all the structures
against nature’s fury, shields against corrosion and promises longer life.
MHIPL has a joint venture with CRH Plc. Ireland, the international leader in building
materials. The growth and success of CRH is founded on its exceptional commitment
and capabilities. Sharing the common vision of excellence, MHIPL and CRH as one
entity, is fast emerging as a leading force in the Indian cement industry.MHIPL has
grown from an annual capacity of 0.2 million tonnes to a staggering 10 million tonnes
within a short span of 19 Years. The Company is planning to further increase its annual
capacity in the near future.
Our Partner CRH
CRH is one of the world’s leading building materials company, with a business that
spans 35 countries and more than 3500 locations. It serves demand of all segments of
construction industry. CRH’s vision is to be a responsible international leader in
building materials, delivering superior and sustained shareholder returns. Sustainability
and corporate social responsibility concepts are integral components of the Group’s
performance and growth strategy. In every area of business, CRH seeks to create long-
term value for all stakeholders. CRH’s strategy is to sustain and grow a geographically
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diversified business with exposure to a broad range of segments of construction
demand, enabling CRH to achieve its vision of delivering industry leading returns.
CRH Plc was formed through a merger in 1970 of two leading Irish public company,
Cement Limited (established in 1936) and Road stone Limited (established in 1949).
The newly-formed group was originally called “Cement Road stone Holdings”, later
abbreviated to CRH. Today, CRH is one of the six largest international groups in its
sector. CRH subsidiary company employ approximately 76,000 people at over 3,500
locations around the world. The Group’s major businesses are in the developed markets
of Europe and North America, and it has been growing its foothold in certain
developing economies in Asia. CRH is headquartered at Belgard Castle in Dublin,
Ireland. CRH supplies raw materials and finished products for residential, non-
residential and infrastructure construction applications. It also has distribution
businesses that supply products to the professional building contractor and to the home-
owner. CRH is a Fortune 500 company and is a constituent member of FTSE 100, ISEQ
20, Euro STOXX 50 the Euro STOXX Select Dividend 30 equity indices and its shares
are listed on the London, Dublin and New York stock exchanges. CRH is also ranked
among sector leaders by a number of Socially Responsible Investment (SRI) rating
agencies for its sustainability and corporate social responsibility performance.
OUR VISION :
Our vision is to continue to develop solutions that make “living better”, be it through
Construction of “World Class” Living and Working Spaces or illuminating households
through generation of power or manufacturing products like quality cement to build
dream homes or enriching lives through imparting quality education.
OUR MISSION :
Our mission is to contribute to building the future by social and capital infrastructure
development by providing all kinds of cement that are environmentally efficient,
enhance our competitive position and bring value to our customers, shareholders and
employees through creation of an environment of empowerment with respect for
company’s values.
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OUR REACH:
Maha Cement is marketed through a wide network of 5000+ dealers. The company is
spread all over the country with 20 regional offices and 170+ depots. Maha Cement has
achieved phenomenal success in the states of Andhra Pradesh, Telangana, Tamil Nadu,
Karnataka, Kerala Orissa, Maharashtra, Bihar, Chhattisgarh and West Bengal..
Company has a dedicated fleet of more than 1200 trucks and bulkers that ensure prompt
delivery of Maha Cement to the customers.
Recently, the company has also forayed into international markets by supplying cement
and clinker to Sri Lanka and Bangladesh.
HISTORY
Originally incorporated as “Devi Cements limited under the company act 1956 with the
main objectives manufacturing and selling of cement and cement related products.
In the year 1998 Dr.J .Rameshwar Rao, one of the promoters has acquired the
shareholding interest of other promoters. Consequent to the change in the management,
the name of the company was changed to “My home Cement industries limited’ and
since then there was substantial growth in the operations of the company. The company
is an ISO 9001: 2000 certified company.
Backed with rich expertise and experience in construction business, My Home

Industries has introduced its own product – MAHA CEMENT. The product ensures
easier workability, lesser permeability, guards all the structures against nature’s fury,
shields against corrosion and promises longer life. At My Home Industries every
process is closely monitored and controlled, beginning from the selection of raw
materials this is deliberately carried out through each and every stage until the finished
product is packed and dispatched. To suit various construction needs, the product
MAHA CEMENT has various other brands under its name. All the products surpass
the standards set by Bureau of Indian Standards (BIS).
MHIL has a joint venture with CRH Plc. Ireland, the international leader in building
materials operating in 33 countries across 3500 locations. The growth and success of
CRH is founded on its exceptional commitment and capabilities. Sharing the common
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vision of excellence, MHIL and CRH as one entity, is fast emerging as a leading force
in the Indian cement industry. In recognition of its quality drive, MHIL has been
awarded the ISO 9001-2008 certification.
With three manufacturing units located at Mellacheruvu in Nalgonda district of Andhra

Pradesh, MHIL produces 3.20 million tons of cement per annum. These units are set up
with state-of-the art technology.
In addition to meet the increasing demand for cement both in domestic and international
markets; MHIL has set up a cement grinding unit at Mulkapalli in Visakhapatnam
district of Andhra Pradesh with a capacity of 1.50 million tons of cement per annum.
PLANTS
My Home industries have two plants at Mellacheruvu, Nallagonda District, Andhra

Pradesh and at Vizag. The Mother plant is located at Mellacheruvu. This state of the art
technology plant consists of three units with combined installed capacity of 33 lakh
tones per annum. Mellacheruvu plant was established with world class equipment and
technology from national and internationally renowned suppliers like Walchand
industries, FLS, LNV, and KHD-Humboldt. All three units located at one location and
captive limestone mines are just a stone throw away. This plant is supported by a 15
megawatt captive power plant. Cement Plant is equipped with Expert Control Systems
and is run by FLS automation system.
My Home Industries is committed to environmental protection. As many as 99 pollution

control devices are installed in three units to minimize emissions from the plant. Plant
is surrounded by 32 hectares of green belt planted and groomed by My Home Industries.
Staff colony is supported by sewage treatment plant and the treated water is used for
plantation.
Grinding Unit at Vizag is the recent addition to My Home Industries. It’s a Greenfield
plant located at Mulkapalli Village yelamanchili Mandal, Vizag District. Endowed with
advanced technology from Loesche, Germany, this plant produces 15 lakh tones per
annum. Vizag plant is strategically planned to serve the eastern markets like Odissa,
West Bengal and Bihar. Clinker is procured from Mother Plant there at Mellacheruvu.
Slag is sourced from Vizag Steel Plant and the Gypsum from Coromandal Fertilizer
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plant. Clinker,Slag and Gypsum grounded in Vertical Roller Mill supplied by Loesche,
Germany.
Modern Quality Control laboratory with X-Ray analyzer assures Maha Quality in each
and every bag of cement manufactured. Integrated management System is being
implemented to ensure superior quality, safety and environment friendly production.
PRODUCTS With expertise and experience in construction, My Home Industries

knows what exactly building and construction industry expects from a cement product.
This, expertise and business vision has helped My Home Industries to establish Maha
Cement as a superior product that exceeds the BIS standards.
Maha Cement (OPC 43 Grade)

An Ordinary Portland Cement (OPC) is manufactured by grinding Clinker with
Gypsum. True to its name and reputation, Maha Cement - OPC 43 Grade Cement
surpasses all the quality parameters set by Bureau of Indian Standards (BIS).
Applications
• General Construction works.

• RCC structures.
• Multi storied buildings.
• Pre stressed concrete works.
• Pre cast works like blocks, pipes, tiles and asbestos products.
• Plastering, flooring, wall and brick works.
Maha Gold (OPC 53 Grade)
An Ordinary Portland cement with high strength cement with unmatched quality for
all structures. The basic ingredients are clinker and gypsum. Clinker is manufactured
with high Tri Calcium Silicate to deliver ultimate strength. Maha Gold surpasses all
the quality parameters set by BIS.
Applications
• General Construction Works.

• RCC structures.
• Multi storied buildings.
• Massive concrete structures like dams, bridges, runways, concrete roads.
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• Pre stressed concrete works.
• Pre cast works like blocks, pipes, tiles and asbestos products.
MAHA SHAKTHI (PPC)
A Portland pozzolana Cement for its unmatched strength and durability to all concrete
structures. Manufactured by grinding Clinker, Gypsum and high quality fly ash in
close circuit mill. Limestone is procured from captive mines. Gypsum from
Coromandal Fertilizers and Fly Ash is from Vijayawada Thermal Power Plant
(VTPS). Kothagudem Thermal Power Plant (KTPS) and NTPCVizag.
Applications
• General Construction works.

• RCC structures.
• Hydraulic structures.
• Mass concreting works like dams, bridges.
• Marine structures.
• All types of structures in Coastal areas.
MAHA SHAKTHI PSC
A new brand in Maha Cement product portfolio. Portland Slag Cement specially
formulated and manufactured to suit the needs of coastal areas to give high strength and
long life to valuable structures. This superior product manufactured by grinding
Clinker, Granulated Blast Furnace Slag (Procured from Vizag Steel Plant) and Gypsum.
Grinding is done through ultra-modern Vertical Roller Mill supplied by Loesche,
Germany.
Applications
• General Construction Works
• RCC Structures.
• Hydraulic Structures.
• Mass Concrete Works like Dams, Sea Ports concrete roads.
• All types of civil and concrete works in Costal and harsh weather prone areas.
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QUALITY
My Home is committed to quality all through the manufacturing process. My Home is

committed to highest standards of quality all through the manufacturing process right
from the selection of the raw material to the packing. My Home Products ensures easier
workability, lesser permeability. Guard all the structures against nature’s fury, shields
against corrosion and assures longer life. Every process is closely monitored and
controlled. Monitoring begins right from the selection of the raw material which is
relentlessly carried through every stage. Superior Technology from KHD- Germany
and FL Smidth- Denmark ensures that every particle of Maha Cement and Maha
Shakthi packed with unparallel bonding strength. Online X-ray analyzers ensure quality
at every stage of production. A fuzzy logic system operates all the equipment with total
automation to ensure uniform quality in every bag. In recognition of its quality drive,
My Home Industries has been awarded the ISO 9001-2000 certification.
TECHNOLOGY
My Home Industries, Maha Cement and Maha Shakthi are the finest blend of Indian
Values and International Standards and World Class Technology. My Home Industries
is a joint Venture between My Home Group and CRH Plc, an Irish building material
major having presence in 33 countries across 3,500 locations.
Units & Capacity:
MHIPL currently has two integrated cement plants located at Mellacheruvu in Suryapet
District, Telangana and at Yanakandla Village in Kurnool District, Andhra Pradesh and
one cement unit at Mulakalapalli village in Visakhapatnam District, Andhra Pradesh
and recently commissioned unit at Tuticorin District, Tamilnadu.
We use the best available equipment’s as per international standards to deliver quality
at best prices. We have the best names in the industry as our suppliers. Crushers from
L&T, raw meal silos from FLSmidth /KHD Humboldt and vertical roller mills from
Loesche, Germany are few among the large list of suppliers.
The combined capacity of the three plants is 8.4 million tonnes per annum. Apart from
the three cement plants, the company also operates two Ready Mix Concrete units.
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Mellacheruvu Cement Works
Suryapet District, Telangana State
Mellacheruvu Cement Works is the Mother plant consisting of three units with
combined installed capacity of 3.3 million tonnes per annum clinker. The plant was
established with world class equipment and technology from national and
internationally renowned suppliers like FLSmidth, LNV, KHD Humboldt,
Walchandnagar Industries, etc. All three units are located in the same premises.
The first unit was established in 1998 with capacity of 0.2 MTPA and gradually
upgraded to 0.66 MTPA. Unit-2 was established in 2002 with present capacity 0.92
MTPA. Unit-3 was established in 2006 with present capacity of 1.2 MTPA.
The cement plant is supported by three captive cement grade limestone mines located
within the vicinity of cement plant units. The plant is also supported with two coal based
captive power plants with 15 MW and 60 MW capacities, located within the cement
plant complex. A separated railway siding is established from Mellacheruvu Station
connecting Jaggayyapet Station for transporting raw materials and products. The plant
and mines are certified as per international standard ISO 9000:2015 and ISO
14001:2015 and OSHAS 18001:2007
Vizag Grinding Unit
Mulakalapalli (V), Yelamanchili (M), Visakhapatnam District, Andhra Pradesh
Grinding Unit at Vizag was established in 2009 with capacity of 1.5 MTPA and
upgraded to 2.0 MTPA in 2012. The Plant is endowed with advanced technology of
Vertical Roller Mill for slag grinding supplied by Loesche, Germany and Ball Mill for
grinding OPC & PPC from Humboldt Wedag, Germany. The main raw material clinker
is sourced from Mellacheruvu Unit. Slag is sourced from Vizag Steel Plant and Gypsum
from Coromandal Fertilizer, Vizag. A separated railway siding is established
connecting Yelamanchalli Station for transporting raw materials and products. The
plant implemented integrated management system and is certified as per international
standards ISO 9000:2015 and ISO 14001:2015 and OSHAS 18001:2007.
Yanakandla Cement Works

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Yanakandla (V), Banaganapalle (M), Kurnool District, Andhra Pradesh
Sree Jayajothi Cement Limited was acquired by MHIPL in 2013. The plant is having
clinker and cement manufacturing capacity of 3.2 million tons per annum respectively.
The plant was established with world class equipment and technology from national
and internationally renowned suppliers like by Loesche, Germany. The cement plant is
supported by captive limestone mine located within the vicinity with sufficient reserves.
Ready Mix Concrete Units (Patancheruvu and Nacharam)
Hyderabad, Telangana State
RMC plant
The company is operating two Ready Mix Concrete plants in Hyderabad, strategically
located at Patancheruvu, having a capacity of 60 m3/hour and at Nacharam, having a
capacity of 120 m3/hour.
Tuticorin Grinding Unit
Tuticorin District, Tamilnadu State
My Home Industries Private Limited (MHIPL) commenced 1.50 million tons per
annum capacity Cement Grinding Unit @ Tuticorin (Thoothukudi) in southern part of
Tamilnadu. The plant was put in operation/production from 15th February 2017. It will
increase the company production capacity to 10 million tones per year.
The technology incorporated is from world leader M/s. F L Smidth, they (M/s. FLS)
are known for supplying state of art technology.
The unit is located strategically at Tuticorin, Tuticorin has Thermal Power Plant
generating approximately 4000 MW of power and catering major power requirement
to Tamilnadu also wheeling to other states.
The quality of cement produced is far excellence compare to competitors like in this
zone. MHIPL – TGU has implemented stringent safety systems to ensure world best
safety culture.
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The Tuticorin Grinding Unit is mainly producing PPC grade cement, PPC is produced
by using fly ash (waste generated from power plants) from various Thermal power
plants around the locality, ensuring the good work environment.
The following are the sales branches
Depots:
Altogether, MAHA has 10 depots.
01. Nalgonda
02. Vishakhapatnam
03. Hyderabad
04. Adilabad
05. Nizamabad
06. Vijayawada
07. Nellore
08. Chennai
09. Bangalore Site
10. Chandrapur
Customer Service
Our commitment to quality is founded on the deep understanding of customer needs.

Our customer service policy which aims to put the customer first in all aspects of our
business pursues maximization of customer satisfaction. To implement this policy our
customer service teams spread across all the markets constantly look for new ideas to
ensure our customers are delighted. Our technical team, which is unparalleled in the
industry, aims to provide professional advice on all aspects of cement and concrete
technology.
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A. Technical Workshops/Seminars
MHIPL conducts technical meetings and training sessions for the people in the
construction industry regularly. Some of the programs conducted are:
 Awareness programs to masons on good construction practices.

 Technical meetings on modern concrete technology and use of blended cement
for sustainable development for engineers, architects, consultants, etc.
 Meetings with wholesalers and retailers to educate them about new trends in
cement.
B. Meetings with Individual House Builders
Meetings with IHBs are conducted to create awareness about good construction
practices. Awareness programmes about building practices are conducted in rural areas.
C. Maha Mobile Concrete testing Services
In select markets, we are providing concrete testing services through Mobile Concrete
laboratory. A mobile van equipped with basic concrete testing facilities visits the site
of the customer on call. We provide following tests on concrete free of cost:
 Concrete workability tests

 Concrete strength tests
 Advise on correct proportion of mixes
 Non Destructive Testing of concrete using rebound hammer.
 Technical personnel of MHIPL conduct site supervision during important
concrete works for customers.
D. Cover Blocks
Cover blocks are small pieces of concrete placed between shutter and steel bars so that
sufficient thickness of concrete cover is ensured around the steel reinforcement to
protect it from corrosion. We are providing quality cover blocks in select markets free
of cost.
E. Toll Free Number Service
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MHIPL operates a toll-free number 18002002552 to listen to its customers more
efficiently.
PROJECTS EXECUTED WITH MAHA CEMENT
MAHA Cement, being a trusted brand, has been used in several landmark projects
across the country. Some of them are:
 P V Narasimha Rao Flyover, Hyderabad

 Hyderabad Metro
 NH in Odisha
MANAGEMENT
 Dr. Rameswar Rao Jupally - Executive Chairman

 Mr. J. Ranjith Rao - Managing Director
 Mr. J. Ramu Rao - Whole time Director
 Mr. S. Sambasiva Rao - Executive Director
 V.S. Narang - Director (Technical)
 Mr. Paul Francis Head - Director
 Mr. Vineet Kapur – Director
 Mr. Atul Khosla – Director
 Mr. Devjit Das - Director (Finance & Commercial)
AWARDS
 My Home Group Chairman Dr. J Rameswar Rao has been awarded “The India’s
greatest brands & leaders Award 2015 -16 *Pride of the Nation*”
 In recognition of its quality drive, MHIL has been awarded the ISO 9001-2008,
ISO 14001:2004 and OHSAS 18001-2007 certifications.
 14th Annual Greentech Environment Award 2013 – Gold Category in Cement
Sector for outstanding achievement in Environmental Management
 CII-EHS Award 2013 – 3 star rating towards efforts in Environment Health &
Safety practices and Policies
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 14th Annual Greentech Environment Award 2013 – Silver Category in Cement
Sector for outstanding achievement in Environmental Management
 CII-EHS Award 2013 – 3 star rating towards efforts in Environment Health&
Safety practices and Policies
 World Consulting and Research Corporation (WCRC) and Brands 360 have
announced Maha Cement as India’s Most Promising Brand 2015.
HUMAN RESOUECE WORKING AT MY HOME INDUSTRIES LIMITED
OCCUPATIONS:
Officers
1) Managing Director 2) General Manager
3) Development Manager 4) Factory Manager
5) Plant Manager 6) Production Manager
7) Project Manager 8) Works Manager
9) Chief Engineer 10) Deputy Chief

Engineer
I1) Financial Manager/Adviser 12) Marketing Manager
13) Commercial Manager 14) Sales Manager
15) Purchase Manager 16) Administrative Officer
Professional - Technical:
1) Chief Chemist/Chemist 2) Chemical Engineer
3) Mechanical Eng. 4) Industrial Eng.
5) Industrial Eng. 6) Electrical Eng.
7) Civil Eng. 8) Mining Eng.
9) Medical Officer 10) Geologist
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11) Transport Officer 12) Chief Burner
13) Store Officer/Technical
Professional - Non- Technical
1) Accounts Officer 2) Finance Officer
3) Accountant 4) Cost Accountant
5) Personnel Officer 6) Labor & Welfare Officer
7) Security Officer 8) Law officer
9) Liaison Officer
Supervisors/Technicians:
1) Foreman, Quarry 2) Foreman, Blasting
3) Foreman Mines 4) Foreman crusher
5) Foreman, kiln 6) Foreman, Raw Cement
7) Foreman Electrical 8) Foreman, Workshop
9) Shift Burner 10) Store Keeper, Workshop
11) Head Crane Operator 12) Charge hand
13) Packing House Supervisor 14) Assistant Chemists
15) Gauger 16) Civil Overseer
17) Transport Assistant 18) Pump Supervisor
19) Draughtsman & Slurry Handling Mill 20) Laboratory Assistant
Non-Technical:
1) Sales Supervisor 2) Sales Inspector
3) Assistant Accountant 4) Head Time Keeper
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5) Officer Superintendent 6) Inspector, Watch & Ward
Skilled Workers:
1) Fitter Quarry 2) Fitter, Crusher
3) Fitter, Raw Cement & Slurry 4) Fitter, O.H. Crane
5) Fitter, Pipe 6) Fitter, General
7) Operator, Compressor 8) Operator, Drill
9) Operator, Shift Crane 10) Operator, Machine Tool
11) Operator, Heavy Equipment 12) Operator, Crusher
13) Blaster 14) Blacksmith
15) Mining Mate 16) Crusher Attendant
17) Silo Attendant 18) Compressor Driver
19) Coal Miller 20) Crane Driver
21) Carpenter 22) Tester
23) Instrument Mechanic Mistry 24) Sarang
25) Diesel Mechanic 26) Motor Mechanic
27) Moulder 28) Turner
29) Welder 30)

Electrician/Wireman
31) Armature Winder 32) Cable Jointer
33) Painter 34) Switch Board Attendant
35) Plumber 36) Loco Driver
37) Fireman 38) Boiler & Turbine

Attendant
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39) Pump Attendant 40) Mason
41) Dresser 42) Compounder
43) Tracer 44) Mid-wife-cum-nurse
45) Points man 46) Computer operator
Semi-Skilled & Unskilled workers:
Khalasi, Asst. Khalasi, Helper, Loader, Mazdoor.
Clerical & Related Workers
1) Clerk & Typist 2) P.A. Steno
3) Computer Workers 4) Telephone Operator
5) Time-Keeper 6) Yard Supervisor
7) Cashier 8) Teacher, Primary

School
Watch, Ward & Office Attendants
1) Watchman and Havildar 2) Peon, Sweeper, Mate
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INTRODUCTION
Planning is the basic managerial function. It helps in determining the course of action
to be followed for achieving organizational goals. It is a decision in advance, what to
do, how to do and who will do a particular task? Plans are framed to achieve better
results. Control is the process of checking whether the plans are being adhered to or
not, keeping a record of progress, comparing it with the plans, and then taking
corrective measures for future if there is any deviation. Every business enterprise needs
the use to control techniques for surveying in the highly competitive and changing
economic world. There are various control devices in use. Budgets are the most
important tool of profit planning and control. They also act as an instrument of co-
ordination.
DEFINITION
Budget is defined as a kind of future accounting in which problems of future are met
on the paper before transactions actually occur.
According to CIMA, Official Terminology, “A Budget is a financial and/or quantitative

statement prepared prior to a defined period of time, of the policy to be pursed during
that period for the purpose of attaining a give objective”.
According to Crown and Howard, “A budget is a predetermined statement of

management policy during a given period, which provided a standard for comparison
with the results actually achieved.”
NEED OF BUDGET
 To forecast and to plan for the future to avoid losses and maximize profits i.e.
to help in planning.
 To bring about coordination’s between different function of an enterprise i.e.,
to help in co-ordination.
 To control actual actions by ensuring that actual are in tune with target i.e., to
help in controlling.
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ESSENTIALS OF BUDGET
1. Budget is prepared on future course of action and is prepare in advance.

2. Budget is based on objectives to be achieved during a definite future period.
3. Budget is a tool for developing the co-operation, co-ordination and control
among employees.
ADVANTAGES OF BUDGET
 It formulates basic policies necessary to achieve organizational objectives.

 It forces all levels of management to participate in the process of setting and
Fulfillment of targets.
 It creates the feeling of co-operation and understanding between different
Departments of the business
 It ensure optimum utilization of resources with a view to maximize returns.
 It highlights upon the in efficiency in the business and thus helps the
Management to take remedial actions.
TYPES OF BUDGET
The Budgets are usually classified according to their nature. The following are the types
of budgets, which are commonly used.
Classification According to Time:
1. Long-term budgets
2. Short-term budgets
3. Current budget
Classification on the basis of function:
1. Operation Budgets
2. Financial Budgets
3. Master Budgets
Classification on the basis of Flexibility:
1. Fixed budget
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2. Flexible budget
Classification on the basis of nature of business:
1. Capital Expenditure
2. Revenue Expenditure
CLASSIFICATION ACCORDING TO TIME
Long Term Budgets — The Budgets are prepared to depict long term planning of the
business. The period of long term budgets various between five to ten years. The long
term planning is done by the top-level management it is not generally known to lower
levels of management's. Long-term time budgets are prepared for some sectors of the
concern such as capital expenditure research and development. Long term finances etc
these budgets are useful for those industries where gestation period is long i.e.
machinery, electricity, and organization.
Short Term Budgets -These budgets are generally for one or five Years and are in the
form of monetary terms. The consumer’s goods industries like sugar, cotton, textiles,
etc. use short-term budget.
Current Budget — The Period of current budget is generally of one to twelve months.
The budgets relate to the current activities of the business. According to I.C.W.A.
London. "Current budget is a budget which is established for use over a short period of
time and is related to current conditions.
CLASSIFICATION ON THE BASIS OF FUNCTION
Operating Budgets: These budgets relate to the different activities of operations of a

firm. The number of such budget upon the size and nature of business. The commonly
used operating budgets are;
A. Sales Budget
B. Production Budget
C. Production cost Budget
D. Purchase Budget
40
E. Raw Material Budget
F. Labor Budget
Financial Budget: - Financial Budget are concerned with cash receipts and
disbursements, working capital. Expenditure, financial position and result of business
operations. The commonly used financial budgets are:
a. Cash Budget
b. Working Capital Budget
c. Capital Expenditure Budget
d. Income Statement Budget
e. Statement of Retained Earnings Budget
f. Budget Balance sheet or position statement Budget
Master Budget: - Various functional budgets are integrated into master budget. This
budget is prepared by the ultimate integration of separate function budgets. According
to I.C.W.A. London. "The master budget is the summary budget in corpora-ting its
functional budgets". Master budget is prepared by the budget officers remained with
the top-level management. This budget is used to co-ordinate the activities of various
departments and also to help as a control device.
CLASSIFICATION ON THE BASIS OF FLEXIBILITY
Fixed budget: - The fixed budgets are prepared for a given level of activity, the budget
is prepared before the beginning of the financial year, if the financial year starts in
January then the budget will be prepared a month or two earlier, i.e. November or
December. The charge in expenditure arising out of the anticipated changes will not be
adjusted in the budget. There is a difference of about twelve months in the budgeted
and a actual figures. According to I.C.W.A. London, "Fixed budget is a which is
designed to remain unchanged irrespective of the level of activity actually attained".
Fixed budgets are suitable under static conditions. If sales, expenses and costs can be
forecasted with greater accuracy then this budget can be advantageously used.
41
Flexible Budget: - A flexible budget consists of a series of budgets for different level
of activity. It therefore, various with the level of activity attained. A flexible budget is
prepared after taking into consideration unforeseen changes in the conditions of the
Business. A flexible budget is defined as a budget, which by recognizing the difference
between fixed, semi fixed and variable cost is designed to change in relation to the level
of activity
CLASSIFICATION OF ON THE BASIS OF NATURE OF BUSINESS
Capital expenditure budget: - Budget which are related to the creation of

manufacturing facilities are knows as capital expenditure budgets
Revenue expenditure budget: - Budget which are prepared for routine activities or
operations are called revenue budget.
BUDGETARY CONTROL
Budget is formal plan of future course of action. When the budget is use to evaluate the
actual performance it is known as budgetary control.
“Budgetary control is the planning in advance of various functions of business so that

the business as whole can be controlled.”
OBJECTIVES OF BUDGETARY OF CONTROL:
 To control departmental activities.

 To help in systematic planning of protection and formulation of policies.
 To control direct and indirect expenses by limiting the chances of wastages.
 To control income and expenditure of production functions.
 To compare the pre-determined targets with the amount of actual expenses.
ADVANTAGES OF BUDGETARY CONTROL
The budgetary control system has got some advantages of its own. Some of them are:
 It acts as yardstick with which actual are compared and necessary corrections
can be made so that it promotes efficiency and there by helps the management
for taking future courses of action.
42
 Co-ordination is established among the different departments and individuals
through planning policy and control.
 Limiting factors can be utilized properly by the application of this system.
Otherwise less important factors can pay the most significant role without,
however, utilizing the scarce sectors, which should have been used in view of
their importance. As a result, there may be loss instead of profit.
 It provides saleable aids to the management by several managerial functions and
thus helps the management to adopt the future courses of action in a scientific
way.
 The top management can exercise control over the various activities of the
business since each and every aspect of the business is reviewed.
LIMITATIONS OF BUDGETARY CONTROL
 The budgetary control systems are however not free from short coming which
are as follows;
 This system proves useless in that firm where policies, processes, techniques,
etc., are frequently changing since it does not take into account such changes.
 It is very costly in case of small firm and serves no purpose in the event of
abnormal situations, such as strikes, lockouts etc.
 There are many factors over which the management has no control but the
budgetary control depends on them. In that case, if its is prepared, it may be
inaccurate and fails to serve the purpose for which it is meant.
CHARACTERISTICS OF GOOD BUDGETING
 A good Budgeting system should involve persons at different levels while

preparing the budgets. The subordinates should not feel any imposition of them.
 There should be a proper fixation of authority and responsibility. The delegation
of authority should be done in a proper way.
 The targets of the budgets should be realistic; if the targets are difficult to be
achieved then they will not ensure the persons concerned.
 A good system of accounting is also essential to move the budgetary successful.
43
 The budgeting system should have a whole-hearted support of the top
management.
REQUISITES FOR SUCCESSFUL BUDGETARY CONTROL SYSTEM
Clarifying Objectives:
The budgets are used to realize objectives of the business. The objectives must be
clearly spelt out so that budgets are properly prepared. In the absence of clear goals, the
budgets will also be unrealistic.
Proper Delegation of Authority and Responsibility:
Budget preparation and control is done at every level of management. Even though
budgets are finalized at top level but involvement of persons from lower, levels of
management are essential for their success. This necessities proper delegation of
authority and responsibility.
Proper Communication System:
An effective system of communication is required for a successful budgetary control.

The flow of information regarding budgets should be quick so that these are
implemented. The upward communication will help in knowing the difficulties in
implementation of budgets.
Budget Education:
The employees should be properly educated about the benefits at budgetary system.
They should be educated about their role in the success of this system. The employees
may not take budgetary control only as a control device but it should be used as a tool
to improve their efficiency.
Participation of all Employees:
Budgeting is done by every segment of the business. It will also require the active
participation and involvement of all employees. In practice the budgets are to be
executed at lower levels of Management. Those for whom the budgets are framed
44
should be actively associated with their preparation and execution. The employees, on
the basis of their past experience, may give more practical and useful suggestions.
Flexibility:
Flexibility in budgets is required to make them suitable under changed circumstances

– Budgets are prepared for the future, which is always uncertain. Even though budgets
are prepared by considering the future possibilities but still some occurrences late on
may necessitate more appropriate and realistic.
Motivation:
Budgets are to be implemented by human beings. Their successful implementation will

depend upon the interest shown be improve their working so that budgeting is
successful.
ORGANIZATION CHART FOR BUDGETARY CONTROL
KEY FACTOR
The factor that sets a limit to the total activity is known as key factor which influence
budgets. It is also called limiting factor or governing factor principal budget factor. For
example, there may be a high demand for a particular product but due to non-
availability of the supply of raw materials, production may have to be destructed and
this factor is known as key factor. It is highly significant during the budgeting for
production or sales. Sometimes, there may be several key factors, such as, labor capital,
sales, etc.
DIFFERENCE BETWEEN BUDGET AND BUDGETARY CONTROL
 The budget is an act of planning whereas budgetary control is an act of

controlling.
 The budget concerns itself with the future. Budgetary control, is however,
concerned with the present activities although it is prepared on the basis of data
collected from the past budget. But the activities that the budgetary control
involves are not limited to that budget only. It is also related to the questions as
to how far the budget can effectively utilized in future.
45
 The budget fixes the target and budgetary control helps to arrive at that target.
 The budget fixes the target and budgetary control to determine the variation
between the budget and the actual performance and analyze the reasons for the
variations. But this is not performed by budgets of course; they are extremely
useful at the time of preparing a revised budget.
 The actual performance is measured not by the budget by budgetary control.
46
TABLE -4.1
FINANCIAL PROJECTIONS OF MY HOME INDUSTRIES LIMITED FOR
THE YEAR 2013-14 (Rs. in crores)
Particulars Budget 2013-14 Actuals 2013-14
INCOME
Gross Sales 4727.6 6169
Net Sales 3948.93 5214.63
Stock Accretion & Decretion -5.87 -25.61
Export Benefits 97.54 78.9
Miscellaneous Income 30 53.93
Sale of Power 9.13 9.02

Total Income (A) 4079.73 5330.87
EXPENDITURE
Raw Material 1985.75 2050.43
Stores, Spares & Consummates 328 347.73
Employees Remuneration 428.78 481.15
Repair & Maintenance 93 84.48
Power, Fuel & Water 195.17 220.04
Other Expenses 198.21 209.95
Total Expenditure (B) 3228.9 3393.78

Gross Margin (A-B) 850.83 1937.09
Interest (C) 164.37 49.05

Depreciation & DRE (D) 464.2 470.47
Net Profit (A-B-C-D) 222.25 1417.57
47
TABLE -4.2
VARIANCE BETWEEN BUDGET AND ACTUALS FOR THE YEAR 2013-2014
(Rs. In Crores)
Budget Actuals
Particulars Variance Favorable Adverse
2013-14 2013-14
INCOME
Gross Sales 4727.6 6169 1441.49 1441.49
Net Sales 3948.93 5214.63 1265.7 1265.7
Stock Accretion &
-5.87 -25.61 19.74 19.74
Decretion
Export Benefits 97.54 78.9 18.64 18.64
Miscellaneous Income 30 53.93 23.93 23.93
Sale of Power 9.13 9.02 0.11 0.11

Total Income 4079.73 5330.87 1251.14 1251.14
EXPENDITURE
Raw Material 1985.75 2050.43 64.68 64.68
Stores, Spares &
328 347.73 19.73 19.73
Consummates
Employees
428.78 481.15 52.37 52.37
Remuneration
Repair & Maintenance 93 84.48 8.52 8.52
Power, Fuel & Water 195.17 220.04 24.87 24.87
Other Expenses 198.21 209.95 10.84 11.74
Total Expenditure 3228.9 3393.78 163.97 163.97
Gross Margin 850.83 1937.09 1087.08 1087.08

Interest 164.37 49.05 115.32 115.32
Depreciation & DRE 464.2 470.47 12.27 12.27
Net Profit 222.25 1417.57 1190.13 1190.13

Source: Annual Reports
48
CHART – 4.1

THE YEAR 2013-14
budget 2013-14 actual 2013-14
Source: Table 4.1
Table 4.1 explains the financial projections of My Home industries ltd for the year
2013-14.In incomes the actuals of Gross Sales, Net Sales and Miscellaneous Income
have favorable variance while the Stock accretion & decretion, Export benefits have
adverse variance. The Total Income has a favorable variance of Rs1251.14crores. In
expenditures the Raw materials, stores, spares & consummates, Powel, Fuel &Water,
Other Expenses have adverse variance whereas Repairs and Maintenance have
Favorable variance The Total Expenditure have an adverse variance of
Rs163.97crores.Finally the Net Profit has a favorable variance of Rs1190.13crores.
49
TABLE – 4.3


INCOME
Gross Sales 5424.83 8181.34
Net Sales 4528.63 6987.09
Stock Accretion & Decretion -6.84 310.39
Miscellaneous Income 99.02 266.29
Total Income (A) 4716.34 7584.17
EXPENDITURE
Raw Material 2043.7 3019.64
Stores, Spares & Consummates 353.06 310.4
Other Expenses 192.34 189
Gross Margin (A-B) 1251.01 3271
Interest (C) 32.24 11.11
Net Profit (A-B-C-D) 754.26 2253.77
50
TABLE -4.4
VARIANCE BETWEEN BUDGET AND ACTUALS FOR THE YEAR 2014-

2015 (Rs. In Crores)
Budget Actuals
2014-15 2014-15
INCOME
Gross sales 5424.83 8181.34 2756.51 2756.51
Net Sales 4528.63 6987.09 2458.46 2458.46
-6.84 310.39 317.23 317.23
Stock Accretion & Decretion
Export Benefits 85.07 11.3 73.77 73.77

99.02 266.29 167.27 167.27
Miscellaneous Income
Sale of Power 10.46 9.1 1.36 1.36

Total Income 4716.34 7584.17 2867.83 2867.83
EXPENDITURE
Raw Material 2043.7 3019.64 975.94 975.94

Stores, Spares & 353.06 310.4 42.66 42.66
Consummates
465.67 480.58 14.91 14.91
Employees Remuneration
99 89.33 9.67 9.67

Repair & Maintenance
311.56 224.22 87.34 87.34

Power, Fuel & Water
Other Expenses 192.34 189 3.34 3.34

3465.33 4313.17 847.84 847.84
Total Expenditure
Gross Margin 1251.01 3271 2019.98 2019.98

Interest 32.24 11.11 21.13 21.13
464.51 1006.12 541.61 541.61
Depreciation & DRE
Net Profit 754.26 2253.77 1499.51 1499.51

Source: Annual Report
51
CHART - 4.2

THE YEAR 2014-15
100
Budgetary control
80
60
40
20
-20
budget 2014-15 actuals 2014-15
Source: Table 4.3
Table 4.3 explains the financial projections of my home industries ltd for the year 2014-
15 In incomes the actuals of gross sales, net sales, stock accretion & decretion ,
miscellaneous income have favorable variance while export benefits and sale power
has a adverse variance. The total income has a favorable variance of Rs2867.83crores.
In expenditure the raw materials, employee remuneration have favorable variance. The
total expenditure have an adverse variance of Rs847.84crores .Finally the net profit has
a favor Rs1499.51crores
52
TABLE – 4.5

THE YEAR 2015-16 ( Rs. in crores)

INCOME
Gross Sales 8793.32 8482.44
Net Sales 7657.2 6998.27
Stock Accretion & Decretion 0 -65.85
Export Benefits 0 24.43
Sale of Power 0 8.44
Total Income (A) 7874.75 7388.3
EXPENDITURE
Raw Material 3884.78 3584.62
Repair & Maintenance 141.51 97.24
Gross Margin (A-B) 2232.74 2368.95
Interest (C) 24.58 31
Depreciation & DRE (D) 474 448.29
Net Profit (A-B-C-D) 1734.16 1889.66
53
TABLE -4.6
(Rs. in Crores)
Budget Actuals
2015-16 2015-16
INCOME
Gross Sales 8793.32 8482.44 310.88 310.88
Net Sales 7657.2 6998.27 658.93 658.93
Stock Accretion & 0 -65.85 65.85 65.85
Decretion
Export Benefits 0 24.43 24.43 24.43
217.55 423.01 205.46 205.46
Sale of Power 0 8.44 8.44 8.44

Total Income 7874.75 7388.3 486.45 486.45
EXPENDITURE
Raw Material 3884.78 3584.62 300.16 300.16

Stores, Spares & 400.95 338.95 62 62
Consummates
Employees 585.44 572.34 13.1 13.1
Remuneration
141.51 97.24 44.27 44.27
328.03 235.1 92.93 92.93

Power, Fuel & Water
Other Expenses 301.3 191.1 110.2 110.2

5642.01 5019.35 622.66 622.66
Total Expenditure
Gross Margin 2232.74 2368.95 136.21 136.21

Interest 24.58 31 6.42 6.42
Depreciation & DRE 474 448.29 25.71 25.71
Net Profit 1734.16 1889.66 155.15 155.15

54
CHART – 4.3

THE YEAR 2015-16
Budgetory control
Hundreds
Budget 2015-16 Actuals 2015-16
Source: Table 4.5
16. In incomes the actuals of gross sales, net sales, stock accretion & decretion have
adverse variance, while the export benefits, miscellaneous income and export benefits
have favorable variance. The total income has a adverse variance of Rs486.45crores. In
expenditure the raw materials, employee remuneration, Stores, Spares &
Consummates, Repair & Maintenance, Power, Fuel & Water and other expenses have
favorable variance and Gross margin have adverse variance Rs136.21.Finally the net
profit has a favorable variance of Rs155.15crores
55
TABLE – 4.7

INCOME
Gross Sales 8748.84 9150.57
Net Sales 7325.01 7593.85
Stock Accretion & Decretion -5.75 23.76
Total Income (A) 7918.32 8259.14
EXPENDITURE
Raw Material 3998.34 3889.04
Gross Margin (A-B) 2100.59 2654.96
Interest (C) 35.6 48.94

Net Profit (A-B-C-D) 1690.65 2244.4
56
TABLE – 4.8
(Rs. In Crores)
Budget Actuals
2016-17 2016-17
INCOME
Gross Sales 8748.84 9150.570 401.73 401.73
Net Sales 7325.01 7593.85 268.84 268.84
Stock Accretion & -5.75 23.760 29.51 29.51
Decretion
Export Benefits 19.50 12.179 -7.321 7.321
558.52 609.91 51.39 51.39
Sale of Power 21.04 19.44 -1.6 1.6

Total Income 7918.32 8259.139 340.819 340.819
EXPENDITURE
Raw Material 3998.34 3889.04 109.3 109.3

Stores, Spares & 460.06 357.27 102.79 102.79
Consummates
Employees 633.55 746.940 113.39 113.39
Remuneration
137 109.70 27.3 27.3
322.68 257.650 65.03 65.03

Power, Fuel & Water
Other Expenses 266.07 243.580 22.49 22.49

5817.89 5604.18 213.52 213.52
Total Expenditure
Gross Margin 2100.62 2654.95 554.33 554.33

Interest 35.60 48.94 13.34 13.34
374.34 361.600 12.74 12.74
Depreciation & DRE
Net Profit 1690.68 2244.41 553.73 553.73

57
CHART – 4.4

THE YEAR 2016-17
BUDGETARY CONTROL
100
HUNDREDS
80
60
40
20
-20
Budget 2016-17 actuals 2016 -17
Source: Table 4.7
17 In incomes the actuals of gross sales, net sales, stock accretion & decretion,
miscellaneous income have favorable variance while export benefits and sale of power
has a adverse variance. The total income has a favorable variance of Rs340.819crores.
In expenditure the raw materials, Stores, Spares & Consummates, Repair &
Maintenance, Power, Fuel & Water and other expenses have favorable variance and the
employee remuneration is adverse variance. The total expenditure have an favor
variance of Rs213.52crores .Finally the net profit has a favor Rs553.73
58
TABLE – 4.9

INCOME
Gross Sales 9136.16 8881.7
Net Sales 7592.16 7412.23
Stock Accretion & Decretion -6.61 -469.62
Total Income (A) 8195 6995.77
EXPENDITURE
Raw Material 4103.31 3984.05
Stores, Spares & Consummates 475 309.77
Repair & Maintenance 129.23 84.97
Gross Margin (A-B) 1951.7 1400.5
Interest (C) 24.84 24.51

Net Profit (A-B-C-D) 1608.99 1085.24
59
TABLE – 4.10
(Rs. In Crores)
Budget Actuals
2017-18 2017-18
INCOME
Gross Sales 9136.16 10433.07 1296.91 1296.91
Net Sales 7592.16 8669.99 1077.83 1077.83
Stock Accretion & -6.61 -343.17 349.78 349.78
Decretion
Export Benefits 12.28 9.84 -2.44 2.44
Miscellaneous 594.04 169.89 424.15 424.15
Income
Sale of Power 3.13
Total Income 8195 9574.36 1379.36 1379.36
EXPENDITURE
Raw Material 4103.31 4280.22 176.91 176.91
Stores, Spares & 475.00 364.06 110.94 110.94
Consummates
Employees 812.05 1030.72 218.74 218.74
Remuneration
Repair & 129.23 125.79 3.44 3.44
Maintenance
350.46 281.80 68.66 68.66
Power, Fuel & Water
Other Expenses 373.25 321.51 51.74 51.74

6243.3 6060.93 182.37 182.37
Total Expenditure
Gross Margin 1951.7 3513.43 1561.73 1561.73

Interest 24.84 31.57 6.73 6.73
317.87 486.50 168.63 168.63
Depreciation & DRE
Net Profit 1608.99 1942.74 333.75 333.75

60
CHART – 4.5

THE YEAR 2017-18
Budgetory control
100
Hundreds
80
60
40
20
-20
Budget 2017-18 Actuals 2017-18
Source:Table-4.9
Table 4.9explains the financial projections of my home industries ltd for the
year 2017-18 In incomes the actuals of gross sales, net sales, stock accretion &
decretion , miscellaneous income have favorable variance while export benefits has a
adverse variance. The total income has a favorable variance of Rs1379.36crores. In
expenditure the raw materials, Stores, Spares & Consummates, Repair & Maintenance,
Power, Fuel & Water and other expenses have favorable variance and the employee
remuneration is adverse variance. The total expenditure have an adverse variance of
Rs182.37crores .Finally the net profit has a favor Rs333.75crores.
61
SUMMARY
My Home Industries Private Limited - Proposed Limestone Mine (252.407 Ha.) of 1.0
MTPA Limestone Production at Mellacheruvu & Yepalamadhavaram Villages,
Mellacheruvu Mandal, Suryapet District, Telangana State.
Presently, MHIPL is operating integrated cement plants with 3.3 MTPA cement
manufacturing capacity located at Suryapet district in Telangana State and 3.2 MTPA
capacity (Sree Jayajothi Cements) at Kurnool district, AP and Grinding Units of
capacity 2.0 MTPA at Visakhapatnam District, AP and 1.5 MTPA at Tuticorin District,
Tamil Nadu.
My Home Industries Private Limited (MHIPL), part of a leading business

conglomerate- My Home Group headquartered at Hyderabad. MHIPL is one of the
largest producers of cement in the Andhra Pradesh & Telangana States. The unflinching
commitment to be world-class in every sphere of its endeavors has been driving
MHIPL, since inception. Under the inspiring leadership of Dr. J. Rameswar Rao,
Chairman, the organization has grown from strength to strength, securing the reputation
of an organization excelling for quality and reliability. Over the past decade, MHIPL
has been one of fastest growing cement companies in India.
MHIPL has grown from an annual capacity of 0.2 million tonnes to a staggering 10
million tonnes within a short span of 15 years. The company is planning to increase its
annual capacity to 15 million tonnes in the near future.
The following types of blended cement products are being manufactured by the
company viz., Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC),
Portland Slag Cement (PSC) and Composite Cement.
The cement manufacturing Unit – I, Unit-II and Unit-III located at Mellacheruvu

village, Suryapet district (earlier Nalgonda) were commissioned in 1998, 2002 and
2007 respectively. Relevant particulars of the existing cement plant are given in the
Table below.
62
Particulars of the Cement Plants Cement Plant Commissioned year Present installed
clinkerisation capacity (MTPA) Unit –I 1998 0.66 Unit –II 2002 1.183 Unit –III 2007
1.20
MHIPL has a joint venture with CRH Plc Ireland, the international leader in building
materials. The growth and success of CRH is founded on its exceptional commitment
and capabilities. Sharing the common vision of excellence, MHIPL and CRH as one
entity, is fast emerging as a leading force in the Indian cement industry.
At MHIPL, Mellacheruvu 3 kilns are set-up with state-of–the-art technology from KHD
Germany and FL Smidth, Denmark, the world’s leading suppliers of cement
manufacturing equipment. MHIPL Mellacheruvu
MHIPL have implemented Quality Management System as per ISO 9001:2000 during
2005 and re-certified in 2009, to the requirements of ISO 9001:2008. MHIPL has also
been certified for Environmental Management Systems, under ISO 14001:2004 in June
2011.
The cement produced is sold under the brand name “MAHA CEMENT”. Maha Cement
is marketed through a wide network of 5000+ dealers. The company is spread all over
the country with 20 regional offices and 170+ depots. Maha Cement has achieved
phenomenal success in South India and part of Eastern India.
The main raw material - limestone for Mellacheruvu Units is supplied from the existing
three captive limestone Mines located in the vicinity of Cement Plant, viz, My Home
(Mellacheruvu) Limestone Mine, Yepalamadhavaram Limestone Mine and Choutapalli
Limestone Mine. Particulars of the same are presented in Table below.
Details of Captive Mining Lease Captive Limestone Mine Commissioned year Lease
area (Ha.)
Production Capacity Mellacheruvu 1998 141.644 1.95 Yepalamadhavaram 2004

121.408 0.66 Choutapalli 2006 262.247 1.82
Mellacheruvu & Yepalamadhavaram mines are catering limestone to Cement Plant

Unit-I&II of capacity 0.66 and 1.183 million TPA respectively and Choutapalli
limestone mine is catering limestone to Unit-III of capacity 1.2 million TPA.
63
Mineral resources from Mellacheruvu mine is almost exhausted and expected to last
another few years only. Presently new mine is proposed to increase the life of mine and
continuous resources availability to the cement plant.
The subject mine is spread over an area of 252.407 Ha out of which 42.3 ha. is Govt.
land & De-Forest land and 210.107 ha. is Patta land under the jurisdiction of
Mellacheruvu & Yepalamadhavaram Villages, Mellacheruvu Mandal, Suryapet
District, Telangana State. Mining Lease was granted by Government of Telangana
State, Industries & Commerce (M-II) Department, issued Order vide Memo No.
5863/M.II(1)/2016-1, dated: 24.09.2016. The subject limestone mine will be a captive
of MHIPL Cement plant located at 1.0 km distance.
The mine has about 138.95 Million Tonnes of mineable reserves (approx.) which will
last for about 138 years with proposed production capacity of 1.0 Million Tonnes Per
Annum (MTPA).
The mine operation will be by Opencast Mechanized method of mining. Limestone

produced from this mine will be transported initially to the existing crusher located at
cement plant through haul roads. Later crusher is proposed to be installed in the subject
mine.
No over burden waste material generation is envisaged during the life of the mine. The
entire estimated/generated quantity of limestone is planned to be consumed in the
process, no waste would be generated during mining operations. Hence no waste dumps
would be formed.
Top soil generated during mine operation is proposed to be used for greenbelt
development. Other than this, no over burden/waste rock generation is anticipated.
Water requirement for the proposed mine is about 100 m3/day. Drinking water facilities
will be provided from Cement plant and water required for Dust suppression and
greenbelt development will be sourced from existing Mine pits of MHIPL.
64
FINDINGS
 The financial projections of My Home Industries ltd for the year 2013-14
represents that the total income of the actuals is more than the budgeted and also
the expenses are more than budgeted figures.
 The financial projections for the year 2014-15 represents that the actual profit
is more than the budget.
 The gross profit and net profit is also high in actual for the year 2014-15.
 The variance of 2014 – 15, the total income, expenditure, gross margins and the
net profit is higher than the actuals.
 The financial projection in the year 2015-16 there is a change in total income
and expenses as they are more in the budget and the gross margin with a slight
increase in the actuals and also the net profit.and variance can be find that at
same.
 In the year 2016 – 17 all those income, expense, gross margin, net profit is more
in the actuals than they budgeted.
 In the year 2017 – 18 those total income and the expenses are more in the
budgets and gross margin and net profit increased than actuals.
 The actual net profit increased year on year from 2013 to 2018 when
compared to the budgeted due to increase in income and decrease in
expenditure.
65
SUGGESTIONS
Planning has become the primary function of management most of the planning
Relates to individual situations and individual proposals. Budgets are nothing but
Expressions largely in financial terms, budgetary control has, therefore become and
essential Tool of management for controlling and maximizing profits.
As the result of study budgetary control of My Home Industries limited the following
suggestions are given:
 It is Essential to maintain the good management control

 Maintain the good corporate governance
 Fluctuations are common in every organization but sustainability is very
important so to maintain the stability.
 Use the new technologies to maximize the quality of output.
 The company objectives organization and how they can be achieved through
budgetary control.
 Reports, statements, forms and other record to be maintained.
 Continuous comparison of actual performance with budgeted performance.
 The company should have proper co-ordination between finance and
marketing department.
 The company should have close watch on the market which helps to make
new strategies.
66
CONCLUSION
From the study it can be concluded that to know that budgetary control is treated
as one of the better techniques for minimizing cost and maximizing profit in My Home
Industries limited.
Budgetary control technique Plays important role in the profit making or smooth
running of the company. It coordinates all the departments like Finance, Marketing, and
Production in the company. It makes the decentralization of authority in the
organization which helps organization goal with in stipulated period of time. Budgetary
control acts as safety for an organization because it helps to identify business risk and
necessary steps can be taken to avoid the risk.
It is interesting to note that budgetary control My Home Industries limited is

doing well and growing phenomenally. Based on the analysis budgetary control
department of My Home Industries limited works as a back bone of top management.
With the support of good budgetary control the management of marketing,

finance, production and personnel become more efficient. So it is essential to regulate
proper budgetary control for all organization.
Budgetary control techniques help to know how the available monetary resources can
be utilized effectively. This technique focus on efficiency in the allocation of resources
in particular time. As the finance department is the soul of any organization. Budgetary
control helps the organization by making finance department effective.
67
BIBLIOGRAPHY
Prasanna Chandra, Financial Management: Theory and Practice, 7/e, 2008, Tata
McGraw-Hill Education.
I.M.Pandey, financial management: Principles and Practice 9/e, 2005, Vikas

publishing.
R.K Sharma Shashi K Gupta, financial management: Principal and Management, 7/e,
2002, Kalyani Publishers.
Dr.S N Maheshwari: management Accounting and financial control, 6/e, 1996, sultan
chand and sons.
M.Y.Khan, and P.K Jain: Basic financial management, 3/e, 1982, Tata McGraw-Hill.
NEWS PAPERS
 Economic times
 The Hindu
 Business Standard
MAGAZINES:
 Business Today
 Business World
 Business India

WEBSITES:
https://www.google.com
http://www.maha.com/
https://en.wikipedia.org
68

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INTRODUCTION

Meaning of budget & budgetary control

A budget is a detailed plain of operations for some specific future period. It is an

Besides' budgetary control' refers to a system of management and accounting control

Types of functional budgets

Production Budget: Production budget is prepared after the preparation of sales

Fixed Budgets: It is a budget in which targets are rigidly fixed.

Performance Budget: Among the methods which relate costs to outputs,

Advantages of budgetary control:

 Economy in working: It brings efficiency and economy in the working of the

 Buck- passing avoided: It establishes divisional and departmental

 Establishes coordination: It coordinates the various divisions of a business, the

 Adoption of uniform policy: Uniform policy without the disadvantages of

 Decrease in production costs: Seasonal variation in production can be reduced

 Adoption of standard costing principles: The use of budget figures as measures

 To study the financial projections of my home industries from the financial

 To identify the variance between budgeted & actuals of my home industries

 To offer suggestions if any based on the finding.

The project report entitled “MY HOME INDUSTRIES LIMITED”,

 Most of the matters related to budgets were confidential. So it is not possible to

 Flexibility with in the budget is not possible.

Expecting such developments in the country and aided by suitable government

Last decade cement industry has a compound growth of 8% with increase in

GROWTH OF CEMENT INDUSTRTY IN AP

The cement industry in Andhra Pradesh is expected to be least impacted by the

Interestingly, the cluster comprising Nalgonda (Telangana) and Guntur,

GROWTH OF CEMENT INDUSTRY IN INDIA

India's cement industry is a vital part of its economy, providing employment to

The Government of India is strongly focused on infrastructure development to

Expecting such developments in the country and aided by suitable government

 Ordinary Portland cement

Cement industry is driven by many factors or by many sectors such as infrastructure,

Some key drivers of cement industry

 Indian real estate market

SWOT Analysis of Cement Industry

 Demand supply gap.

 Strong growth of Indian economy.

 Overcapacity can decrease margins of cement price.

India’s exports of cement, clinker and asbestos cement increased at CAGR of

The Government of India is strongly focused on infrastructure development to

Due to the increasing demand in various sectors such as housing, commercial

On the back of growing demand, due to increased construction and infrastructural

According to data released by the Department of Industrial Policy and Promotion

 The State Government of Chhattisgarh has auctioned one block of Limestone

My Home Industries Pvt. Ltd, part of a leading 4000cr business conglomerate- My

Our Partner CRH

Backed with rich expertise and experience in construction business, My Home

With three manufacturing units located at Mellacheruvu in Nalgonda district of Andhra

My Home industries have two plants at Mellacheruvu, Nallagonda District, Andhra

My Home Industries is committed to environmental protection. As many as 99 pollution

PRODUCTS With expertise and experience in construction, My Home Industries

Maha Cement (OPC 43 Grade)

• General Construction works.

• General Construction Works.

MAHA SHAKTHI (PPC)

• General Construction works.

MAHA SHAKTHI PSC

My Home is committed to quality all through the manufacturing process. My Home is

Units & Capacity: