SUMMER PROJECT REPORT
“A Study on the Budgetary Control using Variance Analysis”
at
Moser Baer India Limited
Submitted in Partial fulfilment of the Post Graduate Diploma in Management at
Kejriwal Institute of Management and Development Studies, Ranchi
BY
Satyam Kumar
Roll No- 23, Session- 2018-20
Under the guidance of:
Prof./ Dr. Jay Prakash Verma
KEJRIWAL INSTITUTE OF MANAGEMENT AND
DEVELOPMENT STUDIES, RANCHI
APPROVAL SHEET
This is to certify that summer project entitled “A study on the Budgetary Control using
Variance Analysis” at Moser Baer India Limited has been prepared by Satyam Kumar in
partial fulfilment of the requirement for the award of Post Graduate Diploma in Management
(PGDM) at Kejriwal Institute of Management and Development Studies, Ranchi.
The study embodies data collected, analysed & compiled by the researcher under the guidance
of the undersigned guide of the institute & there by approved as indicating the proficiency of
the researcher.
Prof/Dr. Jay Prakash Verma Prof./Dr. Ashish Sultania
Research Guide SIP In-charge
Prof. Bikram Dutta Prof. (Dr.) A. K. Singh
Summer Internship Coordinator Director, KIMDS
DECLARATION
I hereby declare that the project report entitled “A study on the Budgetary control using
Variance analysis” has been prepared by me during the period from 1st June 2019 to 30th July
2019 under the guidance of Mr. Shamsul Konain, Deputy Manager, Finance and Accounts,
Moser Baer India Ltd., Greater Noida, and Prof./Dr. Jay Prakash Verma of Kejriwal Institute
of Management and Development Studies, Ranchi.
The findings and conclusions of this report are based on my personal study and experience
during the tenure of my summer internship.
I also declare that the project has not been submitted nor shall it be submitted in future to any
other University or Institution for the award of any other degree or diploma.
Satyam Kumar
Date: ………………
Place: Ranchi
CERTIFICATE
SAMPLE
ACKNOWLEDGEMENT
I would like to extend my gratitude to Mr……. (Head, Operating and Finance, XYZ Industries)
for giving me an opportunity to work in such an important sphere and for sharing his vision
and experience. I would also like to thank Mr……. my supervisor and Ms…..........for their
continuous support and guidance to understand corporate practices and complete my summer
internship in time.
I would like to express my special gratitude and thanks to all other members of the organisation
for giving me their valuable suggestions and time
Last but not least I owe a debt of gratitude to Prof./Dr. Jay Prakash Verma – My project guide
for his painstaking efforts in providing me the necessary know-how and constant guidance and
support without which I would not have been able to conclude this work.
Satyam Kumar
Note: Acknowledgement has no hard and fast format you can frame it up in your own
words….
CONTENT :
Sl. No. Chapters Page Number
List of Tables Page numbers in Roman ( i )
List of Figures Page numbers in Roman (ii)
Executive Summary Page numbers in Roman ( iii )
Chapter 1 Introduction Page numbers in numeric ( 1 - 13 )
Chapter 2 Company Profile Page numbers in numeric ( 14 - 15 )
Chapter 3 Literature Review Page numbers in numeric ( 16 - 26 )
Chapter 4 Research Methodology Page numbers in numeric ( 27 - 30 )
Chapter 5 Analysis of the Research Topic Page numbers in numeric ( 31 - 50 )
Chapter 6 Findings Page numbers in numeric ( 51 - 55 )
Chapter 7 Recommendations & Suggestions Page numbers in numeric (56 - 60 )
Chapter 8 Conclusion Page numbers in numeric ( 61 - 65 )
Bibliography Page numbers in numeric
Annexures:
Annexure – A Title of the Annexure Page numbers in numeric (1)
Annexure – B Title of the Annexure Page numbers in numeric (2)
Page | i
LIST OF TABLES:
5.1 Net Working Capital of TATA STEEL 61
5.2 Raw Material Conversion Period of TATA STEEL 63
5.3 Work in Progress Conversion Period of TATA STEEL 65
5.4 Finished Goods Conversion Period of TATA STEEL 68
5.5 Stores & Spares Conversion Period of TATA STEEL 69
5.6 Debtors Conversion Period of TATA STEEL 71
5.7 Creditors Conversion Period of TATA STEEL 73
5.8 Operating Cycle of TATA STEEL 75
5.9.1 Current Ratio of TATA STEEL 77
5.9.2 Quick ratio of TATA STEEL 79
5.9.3 Gross Profit ratio of TATA STEEL 81
5.9.4 Net profit Ratio of TATA STEEL 82
5.9.5 Debtors Turnover Ratio of TATA STEEL 83
5.9.6 Creditors Turnover Ratio of TATA STEEL 84
5.9.7 Working Capital Turnover Ratio of TATA STEEL 85
5.9.8 Inventory Turnover Ratio of TATA STEEL 86
5.10.1 Cost Sheet of JINDAL STEEL 89
5.10.1 Net Working Capital of JINDAL STEEL 90
5.11 Operating Cycle of JINDAL STEEL 93
5.12 Net Working capital of SAIL 97
5.13 Cost Sheet of SAIL 100
5.14 Operating cycle if SAIL 101
5.15 Working Capital of TATA STEEL, JINDAL & SAIL 103
5.15.1 Raw Material Conversion Period of TATA STEEL,JINDAL &SAIL 105
5.15.2 WIP Conversion Period Of TATA STEEL, JINDAL & SAIL 106
5.15.3 Finished Goods Conversion Period of TATA STEEL, JINDAL &SAIL 107
5.15.4 Stores & Spares Conversion Period of TATA STEEL, JINDAL &SAIL 108
5.15.5 Debtors Conversion Period of TATA STEEL, JINDAL & SAIL 109
5.15.6 Creditors conversion Period of TATA STEEL, JINDAL & SAIL 110
5.16.1 Current Ratio of TATA STEEL, JINDAL & SAIL 111
5.16.2 Quick ratio of TATA STEEL, JINDAL & SAIL 112
5.16.3 Net profit Ratio of TATA STEEL, JINDAL & SAIL 114
5.16.4 Gross Profit ratio of TATA STEEL, JINDAL & SAIL 115
5.16.5 Debtors turnover Ratio of TATA STEEL, JINDAL & SAIL 116
5.16.6 Creditors Turnover Ratio of TATA STEEL, JINDAL & SAIL 117
5.16.7 Net Operating Cycle of TATA STEEL, JINDAL & SAIL 118
Page | ii
LIST OF FIGURES
5.1 Net Working Capital of TATA STEEL 61
5.2 Raw Material Conversion Period of TATA STEEL 63
5.3 Work in Progress Conversion Period of TATA STEEL 65
5.4 Finished Goods Conversion Period of TATA STEEL 68
5.5 Stores & Spares Conversion Period of TATA STEEL 69
5.6 Debtors Conversion Period of TATA STEEL 71
5.7 Creditors Conversion Period of TATA STEEL 73
5.8 Operating Cycle of TATA STEEL 76
5.9.1 Current Ratio of TATA STEEL 77
5.9.2 Quick ratio of TATA STEEL 79
5.9.3 Gross Profit ratio of TATA STEEL 81
5.9.4 Net profit Ratio of TATA STEEL 82
5.9.5 Debtors Turnover Ratio of TATA STEEL 83
5.9.6 Creditors Turnover Ratio of TATA STEEL 84
5.9.7 Working Capital Turnover Ratio of TATA STEEL 85
5.9.8 Inventory Turnover Ratio of TATA STEEL 86
5.10.1 Cost Sheet of JINDAL STEEL 89
5.10.1 Net Working Capital of JINDAL STEEL 90
5.11 Operating Cycle of JINDAL STEEL 95
5.12 Net Working capital of SAIL 97
5.13 Cost Sheet of SAIL 100
5.14 Operating cycle if SAIL 101
5.15 Working Capital of TATA STEEL, JINDAL & SAIL 103
5.15.1 Raw Material Conversion Period of TATA STEEL,JINDAL &SAIL 105
5.15.2 WIP Conversion Period Of TATA STEEL, JINDAL & SAIL 106
5.15.3 Finished Goods Conversion Period of TATA STEEL, JINDAL &SAIL 107
5.15.4 Stores & Spares Conversion Period of TATA STEEL, JINDAL &SAIL 108
5.15.5 Debtors Conversion Period of TATA STEEL, JINDAL & SAIL 109
5.15.6 Creditors conversion Period of TATA STEEL, JINDAL & SAIL 110
5.16.1 Current Ratio of TATA STEEL, JINDAL & SAIL 111
5.16.2 Quick ratio of TATA STEEL, JINDAL & SAIL 112
5.16.3 Net profit Ratio of TATA STEEL, JINDAL & SAIL 114
5.16.4 Gross Profit ratio of TATA STEEL, JINDAL & SAIL 115
5.16.5 Debtors turnover Ratio of TATA STEEL, JINDAL & SAIL 116
5.16.6 Creditors Turnover Ratio of TATA STEEL, JINDAL & SAIL 117
5.16.7 Net Operating Cycle of TATA STEEL, JINDAL & SAIL 118
Page | iii
EXECUTIVE SUMMARY
The major purpose of the study is to analyse the working capital management of TATA STEEL
by considering the annual report of five years. The financial statement explains the trend
analysis and ratio analysis in comparison with the competitor companies.
Working Capital is the amount by which current assets exceeds current liabilities. It involves
the relationship between a firm’s short-term assets and its short-term liabilities. Funds needed
for short-term needs for the purpose like payment of wages and other day to day expenses are
known as working capital. The goal of working capital management is to ensure that the firm
is able to continue its operations and it has sufficient cash flow to satisfy both maturing short-
term debt and upcoming operational expenses. Working capital is primarily concerned with
inventories management, receivable management, cash management and payable management.
Company’s annual reports were evaluated and working capital management has been analysed
from it. This project explains in details the working capital management and how it is operated
in an organization. Various ratio analysis have been taken out on the basis of the data provided
so as to find out the trends of working capital requirements in TATA STEEL, a leading
manufacturer of the steel in the world. A comparative analysis of TATA STEEL with two other
major players namely SAIL and JINDAL STEEL AND POWER LIMITED has been carried
out. Thus analysis studies the different techniques used by different companies and how
effective those prove in this competitive environment.
Page | iv
CHAPTER – 1
INTRODUCTION
1. Introduction :
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