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A PROJECT REPORT ON
“BUDGETARY CONTROL”
AT“ANDHRA PRADESH TOURISM DEVELOPMENT
CORPORATION”
IN PARTIAL FULFILLMENT FOR THE AWARD OF
MASTER OF BUSINESS ADMINISTRATION
BY
DEVI SRAVANI
HT.NO.11108105
UNDER THE GUIDENCE
MS.K.RADHIKA
DEPARMENT OF BUSINESS ADMINISTRATION
AURORA’S SCHOOL OF COMPUTER SCIENCE & RESEARCH
(2008-2010)
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DECLARATION
The project work entitled “BUDGETARY CONTROL” is done by me at A.P.TOURISM,
in partial fulfillment for the award of M.B.A from AURORA’S SCHOOL OF
COMPUTER SCIENCE & RESEARCH, Osmania University.
The work was not submitted to any other university for the award of any degree
earlier. The work is also not published in any journal or magazine.
(DEVI SRAVANI)
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ABSTRACT
Over the past four years, Andhra Pradesh Development Corporation (APTDC) has
added an array of function to its lists of tasks, with a determination to show commendable
performance. From just providing information to tourists, it has gone into serious business
like accommodation, catering, & such other service that have become essential for
ensuring tourist infrastructure & service.
APTDC has now raised its own building 'Tourism House' with state-of the art facilities at
Himayatnagar, Hyderabad to locate its Corporation Office. The office started functioning
from the new premises since July 2003. The civil works of the building were completed in
a record time of 7 months & the interiors in 2 month.
The turning point: The turnover of the Corporation in 1998 - 99 was Rs.328 lakh & this
went on to become a whopping Rs.2004 lakh at the end of the financial year 2001 - 20003-
a turnaround that no other tourism corporation in the country would have ever achieved in
such a short time. Keeping this performance in view, the Corporation has reset its goals to
maintain the tempo & meet the ever - increasing challenges posed by such rapid
development & resultant expectations.
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ACKNOWLEDGEMENT
I am very thankful to my principal Mr.SHEKAR SIR for giving me the opportunity to do
this project.
My sincere thanks to MR.SANJAY PADIA, HOD for having immense faith in my
capabilities. it was because of his inspiration that I could accomplish a project like the
successfully. His support has given shape to my project.
I am very much thankful to Mr.Satya Kumar Reddy (joint managers) and also thankful
for Mr.Rama Rao (General finance manager) of APTDC. Hyderabad for giving me a
chance to do a project work in their reputed organization.
(DEVI SRAVANI)
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CHAPTER 1
INTRODUCTION
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BUDGETORY CONTROL
BUDGET:
A budget is a plan expressed in quantitative, usually monetary term covering a
specific period of time usually one year. In other words a budget is a systematic plan for
the utilization of manpower and material resources.
A budget can be defined as a numerical statement expressing the plans, policies and
goals of an organization for a definite period in future.
BUDGETORY CONTROL
No system of planning can be successful without having an effective and efficient
system of control. Budgeting is closely connected with control. The exercise of control in
the organization with the help of budgets is known as budgetary control.
“Budgetary control is a process of comparing the actual results with the
corresponding budget data in order to approve accomplishing or to remedy differences by
either adjusting the budget estimates or correcting the causes of the differences”
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Budgetary control establishes a plan or target of performances which becomes the
basis of measuring progression of activities in the organization. Budgetary control is the
process of ascertaining several budgeted figures with the actual results for finding ou
discrepancies, if any. The comparison of budgeted and actual figures will allow the
management to take curative actions at a proper time.
IMPORTANCE OF BUDGETARY CONTROL
The budgetary control is a continuous process that helps in planning coordination
and controlling of business decisions. A budget is a means and budgetary control is the
end-result. The budgetary control system assists an organization in setting up the goals and
efforts are made for its achievements.
It enables economies in the enterprise. The main objectives of budgetary control are as
follows:
It is essential for planning, controlling, and also acts as an instrument of
coordination.
It coordinates the actions of various departments.
Budgetary control helps in eliminating wastes and raises the profitability position
of a business enterprise.
It makes a prediction about capital expenditure for future.
It helps in amending deviations from the established standards.
It centralizes the control system
Budgetary control operates various cost centers and departments with efficiency and
economy.
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NEED FOR THE STUDY:
The need for budgetary control is felt in view of its critical decision making phase
like in which activity budget is to be allocated this includes planned and non planned
budget and looking into the need for them.
When budget is not done properly it brings about inefficiency in working of the
organization and also increases wastage and loss of financial assets.
Budgetary control helps in eliminating wastes and raises the profitability position
of a business enterprise.
SCOPE:
The present study is confined to the study of systems and procedures in evaluation
of budgetary control techniques that are been used in APTDC.
OBJECTIVES AND PURPOSES OF STUDY:
1. To Highlight the importance and significance of budgetary control methods in
corporation.
2. To focus on budgetary control methods adapted by APTDC.
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RESEARCH METHODOLOGY:
The study has been conducted mainly through secondary sources of data i.e.,
budget estimates for the period 2005 – 2008. The methodology used for the study for the
purpose of interpretation and analysis of the budget statements . Apart from this, budget
allocated to new projects by the government and APTDC Ltd are analyzed.
LIMITATIONS OF THE STUDY:
1. The study is mainly based on secondary information i.e., published reports which
may not reveal all the facts required for analysis.
2. The study takes into consideration only three years data which limits the scope to
that extent only.
.
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CHAPTER 2
LITERATURE REVIEW
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BUDGET
A budget is a plan expressed in quantitative usually monetary term covering a
specified period of time usually one year. In other words a budget is a systematic plan for
the utilization of manpower and material resources
A budget can be defined as a numerical statement expressing the plans policies and goals
of an organization for a definite period in future.
In a business organization a budget represents an estimate of future costs revenues.
Budgets may be divided into two basic classes : capital budgets and operating budgets.
Capital budgets are directed towards proposed expenditures for new projects and often
require special financing. The operating budgets are directed towards achieving short termoperational goals of the organization for instance production or profit goals in a business
firm. Operating budgets may b subdivided in to various departmental of functional
budgets.
The main characteristics of a budget are
1. it is prepared in advance and is derived from the long term strategy of the
organization
2. it relates to future period for which objectives or goals have already been laid down
3. it is expressed in quantitative terms , physical or monetary units or both.
Different types of budgets are prepared for different purposed e.g. sales budget, production
budget, administration expense budget, raw material budget etc. all these sectional budgets
are afterwards integrated into a master budget. Which represents an overall plan of the
organization .
ADVANTAGES OF BUDGETS
A budget helps us in the following ways:
it brings about efficiency and improvement in the working of the organization .
It is a way of communicating the plans to various units of the organization. By
establishing the divisional, departmental sectional budgets exact responsibilities of
buck passing if the budgets figures are not met.
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It serves as a benchmark for controlling on going operations.
It helps in developing a team spirit where participant in budgeting is encouraged.
It helps in reducing wastage and losses by revealing them for corrective action.
It serves as a basis for evaluating the performance of managers.
It serves as a means of educating the managers.
BUDGET ORGANISATION AND ADMINISTRATION:
In organizing and administering a budget system the following characteristics may
apply:
a) Budget centers : units responsible for the preparation of budget. A budget
center may encompasses several cost centers.
b) Budget committee: This may consist of senior members of the organization
e.g. departmental heads and executives (with the managing director as
chairman). Every part of the organization should be represented on the
committee , so there should be a represented from sales, production, marketing
and so on. Functions of the committee include :
o Coordination of the preparation of budgets, including the issues of
manual
o Issuing of timetables for preparation of budgets
o Provision of information to assist budget preparations
o Comparision of actual results with budget and investigation of
variances
c) Budget officer: controls the budget administration the job involves:
• Liasing between the budget committee and managers
responsible for budget preparation.
• Dealing with budgetary control problems
• Ensuring that deadlines are met
• Educating people about budgetary control.
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d) Budget manual :
“A document which sets out inter alias the responsibilities of the persons
engaged in the routine of and forms and records required for budgetary control”
• The budget manual is a written document or booklet that specifies
the objectives of budgeting organization and procedures. Following
are some of the important matters covered in a budget manual .
• A statement regarding the objectives of the organization and how
they can be achieved through budgetary control.
• Procedures to be followed for obtaining the necessary approval of
budgets.
• The authority of granting approval should be stated in explict terms.
• Whether one two or more signatures are to be required on each
document.
• Should also be clearly stated
• Time table for all stages of budgeting
• Reports statements forms and other records to be maintained.
• The accounts classification to be employed. It is necessary that the
framework within which the costs revenues and other financial
amount are classified must be identical both in accounts and budget
departments
There are many advantages attached to the use of budget manual . it is a formal
record defining the functions and responsibilities of each executive. The methods and
procedures of budgetary control are standardization. There is synchronization of the
efforts of all which in maximum of the profits of the organization.
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BUDGETARY CONTROL
• No system of planning can be successful without having an effective and efficient
system of control. Budgeting is closely connected with control. The exercise of
control in the organization with the help of budgets is known as budgetary control.
• Preparation of various budgets.
• Continuous comparison of actual performance with budgetary performance.
• Revision of budgeted in the light of changed circumstances
“Budgetary control is a process of comparing the actual results with the corresponding
budget data in order to approve accomplishing or to remedy differences by either adjusting
the budget estimates or correcting the causes of the differences”
“ Budgetary control is a system of controlling costs which includes the preparation of
budgets, coordinating the department and establishing responsibility, comparing actual
performance with budgeted and acting upon results to achieve maximum profitability.”
Budgetary control is defined by the institute of cost and management
accountants(CIMA)as:
“The establishment of budgets relating the responsibilities of executives to the
requirements of a policy and the continuous comparison of actual with budgeted results
either to secure by individual action the objective of that policy or to provide a basis for its
revision.
A system of budgetary control should not become rigid. There should be enough scope of
flexibility to provide for individual initiative and drive. Budgetary control is an important
device for making the organization . more efficient on all fronts. It is an important tool for
controlling costs and achieving the overall objectives.
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FEATURES OF BUDGETARY CONTROL
a. Budgetary control established a plan or target of performance which becomes the
basis of measuring progression of activities in the organization. b. It tries to measure the out comes of activities in quantified terms so that actual
performance can be compared with budgetary performance
c. It tries to focus attention of the management on deviation between what is planned
and what is being achieved so that necessary actions are taken to corrective actions
are required.
OBJECTIVES OF BUDGETARY CONTROL
Budgetary control is the process of ascertaining several budgeted figured for the
future width the actual results for finding out discrepancies, if any. The comparison of
budgeted and actual figured will allow the management to take curative actions at a
proper time.
Budgetary control can be defined as “A means of achieving the financial control of
an entity where by the actual results for a defined period of time are compared with the
budgeted results any differences being noted and some corrective action taken to bring
the actual activities back into line with the budgeted ones if such variances need to be
dealt with
The budgetary control is a continuous process that helps in planning, coordination,
and controlling of business decisions. A budgetary control system assists an
organization in setting up the goals and efforts are made for its achievements. It
enables economies in the enterprise. The main objectives of budgetary control are asfollows:
It is essential for planning, controlling, and also acts. As an instrument of
coordination.
It coordinated the actions of various departments.
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Budgetary control helps in eliminating wasted and raised the profitability
position of a business enterprise
It makes a prediction about capital expenditure for future.
It helps in amending deviations from the established standards.
It centralized the control system
Budgetary control operated various cost centers and departments with
efficiency and economy.
Budgetary control compels business administration to think about the future tat is
most likely the crucial characteristic of this system. It coerces management to look into
future to outline thorough plans for attaining the objectives for each department, operation
and each manager to predict and grant the organization purpose and direction.
BUDGET PERIOD
This may be defined as the period for which a budget is prepared and employed.
The budget period will depend upon following factors:
1) The type of business
2) The control aspect
From control point of view the budget period should be a short one so that the
actual results may be compared wit the budget each week end or month end and
sisxussed with the budget each week end or month end and discussed with the budget
committee. The budget period should not be too long so that estimates may not become
unreliable . for most businesses, annual budget is quite common because it compares
with the financial accounting year.
BUDGETARY CONTROL METHODS
a)Budget:
o A formal statement of the financial resources set aside for carrying ort specific
activities in a given period of time.
o It helps to coordinate the activities of the organization
An example would be an advertising budget or sales force budget.
b)Budgetary control:
o A control technique where by actual results are compared with budgets.
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o Any differences are made the responsibility of key individuals who can either exercise
control action or revise the original budgets.
ADVANTAGES OF BUDGETING AND BUDGETARY CONTROL
There are number of advantages to budgeting and budgetary control:
o Compels management to think about the future which is probably the most important
feature of a budgetary planning and control system. Forces management to look ahead
to set out detailed plans for achieving the targets for each department, operation andeach manager to anticipate and give the organization purpose an direction.
o Promotes coordination and communication.
o Clearly defines areas of responsibility. Requires manages of budget centers to be made
responsible for the achievement of budget targets for the operations under their
personal control.
o Provides a basis for performance. A budget is basically a yard stick against which
actual performance is measured and assessed. Control is provided by comparisons of
actual results against budget plan. Departure from budget can then be investigated and
the reasons for the differences can be divided into controllable and non-controllable
factors.
o Enables remedial action to be taken as variances emerge.
o Motivates employees by participating in the setting of budgets.
o Improves the allocation of scarce resources
o Economies management time by using the management by exception principle.
Budget and budgetary control leads to maximum utilization of resources with a view to
ensure maximum returns because it provides aid to managerial planning and control.
Besides, it also helps in coordination thus budgetary control can play three roles in an
organization. These are budgetary control as a tool for planning, budgetary control as a tool
for control, budgetary control as an aid to coordination.
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STEPS IN BUDGETARY CONTROL
1. organization for budgeting
2. budget manual + theory
“A document which sets out inter alias the responsibilities of the persons engaged in
the routine of and forms and records required for budgetary control”.
I. The budget manual is a written document or booklet that specifies the objectives of
budgeting organization and procedures. Following are some of the important matters
covered in a budget manual:II. A statement regarding the objectives of the organization and how they can be achieved
through budgetary control.
III. A statement regarding the functions and responsibilities of each executive by designation
both regarding preparation and execution of budgets.
IV. Procedures to be followed for obtaining the necessary approval of budgets.
V. The authority of granting approval should be stated in explict terms
VI. Whether one two or more signature are to be required on each document.
VII. Should also be clearly stated.
VIII. Timetable for all stages of budgeting
IX. Reports statements forms and other records to be maintained
X. The accounts classifications to be employed. It is necessary that the framework within
which the costs revenues and other financial amount are classified must be identified
both in accounts and the budgeted departments.
There are many advantages attached to the use of budgeted manual. It is a formal record
defining the functions and responsibilities of each executive. The methods and procedures
of budgetary control are standardized. There is synchronization of the efforts of all which
results in maximization of the profits of the organization.
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MAKING A FORECAST
Consideration of alternative combination of forecasts:
Alternative combinations of forecasts are considered with a view to contain the most
efficient overall plan so as to maximize profits. When the optimum profit combination of
forecasts is selected the forecasts should be regarded as being finalized.
CLASSIFICATION OF BUDGETS
Budgets can be classified into different categories on the basis of time function or
flexibility the different budgets covered under each category are shown
Long term
MASTER BUDGET
Master budgets consolidate an organizations overall plans for short period of time usually
one year the master budget is essentially a more extensive analysis of the first year of the
long range plan management might prepare monthly budgets for the year or perhaps
monthly budgets for only for the first quarter and quarterly budgets for the three remaining
quarters. The master budget is the most detail budges for the three remaining quarters. The
master budget is the most detail budget that is coordinated across the whole organisation
but individual managers also may prepare daily or weekly task oriented budgets to help the
carryout their particular functions.
COMPONENTS OF MASTER BUDGET
Budgets are called Performa statements. They are forecasted financial statements in
contrast to statements of actual results. The components of master budget are:
Operating budget
o sales budget
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o purchase budget
o cost of goods budget
o operating expensed budget
o budgeted income statements
Financial budget
o capital budget( long term expectations for specific projects)
o cash budget(cash receipts and disbursements)
o budgeted balance sheet
The two major parts of the master budget are operating budget and financial budget. The
operating budget focuses on the income statement and its supporting schedules . some call
the operating budget the profit plan.
The financial budget focuses on the effect that the operating budget and other plans (such
as capital expenditures and repayments of debt) will have on cash.
FLEXIBLE BUDGETS:
The essence of control is feedback the comparison of actual performance with
planned performance. Flexible budgets and standard costs and major attention directing
techniques for planning and for planning and for providing feedback regarding individualcosts.
Budgeted may be developed on a company wide basis to cover all activities from
sales to direct material usage to sweeping compound usage and from spending on a new
plant to expected drains on petty cash a budget may be expressed on an accrual basis or on
a cash flow basis it a may be highly condensed or exceedingly detailed. A static budge is
defined as a budget prepared for only one level of activity.
Flexible budgets have the following distinguishing features:
1. they are prepared for a range of activity instead of a single level.
2. they supply a dynamic basis for comparison because they are automatically geared
to changes in volume.
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They may help managers to choose among various ranges of activity for planning purpose.
They may also help managers to analyze actual results at the end of the period
ROLLING BUDGET
some organizations follow the practice of preparing a rolling budget in such
organizations a budget for a year in advance will always be there. Immediately after a
month or a quarter passes as the case may be , a new budget is prepared for a twelve
months. The figures for the month/quarter which has rolled down are dropped and the
figures for the next month/quarter are added.
Making a forecast
A forecast is an estimated of the future financial conditions or operating results.
Any estimation is based on consideration of probabilities. An estimate differs from a
budget in that the latter embodies an operating plan of an organization
A budget envisages a commitment to certain objectives or targets which the
management seeks to attain on the basis of the forecasts prepared. A forecasts on the other
hand is an estimate based on probabilities of an event. A forecast may be prepared on
financial or physical terms for sales reduction cost or other resources required for business.
Instead of just one forecast a number of alternative forecasts may be considered with a
view to obtaining the most realistic overall plan.
Consideration of alternative combination of forecasts :
Alternative combinations of forecasts are considered with a view to contain the
most efficient overall plan so as to maximize profits. When the optimum profit
combination of forecasts is selected the forecasts should be regarded as being finalized,
Preparing budgets
After the forecasts have been finalized the preparation of budgets follows, the
budget activity starts with the preparation of the sales budget. Then production budge is
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prepared on the basis of sales budget and the production capacity available. Financial
budget will be prepared on the basis of sales forecasts and the production budget. All these
budgets may be revised in the course of the financial period if it becomes necessary to do
so in view of the unexpected developments which have already taken place or are likely to
take place.
Choice between fixed and flexible budgets
A budget may be fixed or flexible. A fixed budget is base on a fixed volume of
activity, it ma lode it is effectiveness in planning and controlling if the actual capacity
utilization is different from what was planned for any particular unit of time e.g. a month
or a quarter. The flexible budget is for any particular unit of time e.g, a month or a quarter.
The flexible budget is more useful for changing levels of activity as it considers
fixed and variable costs separately fixed costs as you are aware remain unchanged over a
certain range of output. Such costs change when there is change in capacity levels.
Volume of activity: It may lose its effectiveness in planning and controlling if the actual
capacity utilization is different from what was planned for any particular unit of tine e.g. a
month or a quarter. The flexible budget is more useful for changing levels of activity as it
considers fixed and variable costs separately fixed costs as you are aware remain
unchanged over a certain range of output. Such costs change when there is a change in
capacity level.
The variable costs change in direct proportion to output. If flexible budgeting
approach is adopted, the budget controlled can analyses the variance between actual costs
and budgeted costs depending upon the actual level of activity attained during a period of
time. This will be explained in detail a little later.
Sales budget:
Sales budget generally forms the fundamental basis on which all other budgeted are
built. The budget is based on projected sales to be achieved in a budget period. The sales
manager is directly responsible for the preparation and execution of this budget.
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Organization factors past sales salesmen’s estimates plant capacity order on hand proposed
expansion or discontinuation of products
Availability of material supplies
financial aspect
cost of distribution of goods
environmental factors
general trade prospects
seasonal fluctuations
potential market
degree of competition
government controls, rules and regulations relating to the industry political situation and its
impact on market.
It is desirable to break up the entire sales budget on the basis of different products time
periods and sales areas or territories.
PRODUCTION BUDGET
This budget provides an estimates of the total volume of production distributed
product-wise with scheduling of operations by days, weeks and months and a forecasts of
the inventory of finished products. The responsibility for the overall production budget ties
with works manager and that of with departmental works managers.
Production budget may be expressed in physical or financial terms or both in relation to
production. The production budgets attempt to answer question like:-I. What is to be produced?
II. When it is to be produced?
III. How is to be produced?
IV. Where it is to be produced? The production budget envisages the production
programmed for achieving the sales target. It serves as a basis for preparation of
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related cost budgets, e.g. materials cost budget labour, time taken in production
process etc.
i. Inventory policies. Inventory standards should be predetermined as that
neither there is a shortage nor over-stocking of goods.
ii. Sales requirements. The quantity of goods to be sold would be decided to a
great extend how much is to be produced. Therefore this budgets depends
upon the sales budget.
iii. Production stability. For reduction of costs, stability in employement and
better utilization of plant facilities, the production should be evenly
distributed throughout the year. In case of seasonal industries since it is not
possible to have stable levels of production or inventory, an effort should be
made to have the optimum balance between the two.
iv. Plant capacity. How much can be produced depends upon the available
plant capacity. There must be sufficient capacity to precede the annual
requirement and also to meet seasonal high demands.
v. Availability of materials and labour. Adequate and timely supply of raw
materials and labour force should have an important effect on the planning
of production.
vi. Time taken in production process. The production should commence well in
time keeping in view how much time it would take in the factor to translate
the raw materials into finished goods.
PRODUCTION COSTS BUDGETS:
Basically there are three elements of costs namely direct material. Direct labour and
overheads. Separate budgets for each of there elements have to be prepared . the direct
materials budget has two components
i. Materials requirement budget
ii. Materials procurement or purchase budget
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The former deals with the total quantity of materials to be acquired from the market during
the budget period. Materials to be acquired are estimated after taking into account
the closing and the opening inventories and the materials from which orders have already
been place.
Overhead budget:
The overhead may relate to factory general administration , selling and distribution
function separate budgets may therefore be prepared for factory overheads administrative
overheads and selling overheads.
MANUFACTURING OVERHEADS BUDGET:
Factory or manufacturing overheads includes the cost of indirect material ,indirect lab our
and indirect expenses. Manufacturing overheads may be classified into
i. Fixed overheads i.e, which tend to remain constant irrespective of change in the
volume of output.
ii. Variable overheads i.e, which tend to vary with output
iii. Semi variable overheads i.e, which are partly variable and partly fixed. The
manufacturing overhead budget will provide an estimate of these overheads to be
incurred during the budget period.
Fixed manufacturing overhead can be estimated on the basis of past information and
knowledge of any changes which may occur during the ensuring budget period. Variable
overheads are estimated after considering the scheduled production and operating
conditions in the budget period.
ADMINISTRATION OVERHEADS BUDGET:
This budget covers the administrative expenses including the salaries of administrative
expenses including the salaries of administrative the managerial staff. A careful analysis
of the needs of all administrative departments of the enterprise is necessary . The minimum
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requirement for the efficient operation of each administrative department of the budget
period. The budget of all administrative departments.
Cash budget:
The cash budget is a summary of the firms expected cash inflows and outflows over a
particular period of time. In other words cash budget involves a projection of future cash
receipts and cash disbursements over various time intervals.
A cash budget helps the management in : determining the future cash needs of the firm.
Planning for financing of those needs. Exercising control over cash and liquidity of the
firm.
The overall cash budget can be prepared by any of the following methods:
i. Receipts and payments method
ii. The adjusted profit and loss method
iii. The balance sheet method
Receipts and payments method: in case of this method the cash receipts from various
sources and the cash payments to various agencies are estimated. In the opening balance if
cash estimated cash receipts are added and from the total. The total of estimated cash
payments is deducted to find out the closing balance.
The adjusted profit and loss method: In this case the cash budget is prepared on the
basis of opening cash and bank balances projected profit and loss account and the balances
of the various assets and liabilities.
The balance sheet method: With the help of budgeted balances at the end except cash and
bank balances a budgeted balance sheet can be prepared and the balancing figure would be
the estimated closing cash/bank balance.
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Thus , under method. Closing balances other than cash/bank will have to be found out first
to be put in the budgeted balance sheet. This can be done by adjusting the anticipated
transactions of the year in the opening balances.
ZERO BASED BUDGETING(ZBB)
After a budgeting system has been in operation for some time there is a tendency for next
year’s budget to be justified by reference to the actual levels being achieved at present. In
fact this is part of the financial analysis discussed so far but the proper analysis process
tales into account all the changes which should affect the future activities of the company.
Even using such an analytical base some businesses find that historic comparisons and
particularly the current level of constraints on resources can inhibit really innovative
changes in budgets. this can cause a severe handicap for the business because the budget
should be the first year of the long range plan. Thus if changes are not started in the budget
it will be difficult for the business to make the progress necessary to achieve longer term
objectives.
One way of breaking out of this cyclical budgeting problem is to go back two basics and
develop the budget from an assumption of no existing resources. This means all resources
will have to be justified and the chosen way of achieving any specified objectives will have
to be compared with the alternatives. For example in the sales area the current existing
field sales force will be ignored and the optimum way of achieving the sales objectives in
that particular goods or services should be developed. This might not include any field
sales force or a different seize team and the company then has to plan how to implement
this new strategy.
The obvious problem of this zero-base budgeting process is the massive amount of
managerial time needed to carry out the exercise. Hence some companies carry out the full
process every five years, but in that year the business can almost grind to a halt. Thus
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an alternative way is to look in depth at one area of the business each year on a rolling
basis so that each sector does a zero base budget every five years or so.
Management often uses budgets to assist the decision making process in the following
areas:
Planning
Coordinating
Control and monitoring
Communicating
Motivating
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CAPTER 3
INTRODUCTION
TO
INDUSTRY
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INTRODUCTION TO INDUSTRY
“God earth in its fullness and beauty is for the people”.
- Thomas Cook
As long back as in the 1860’s Thomas Cook , the pioneer of organized mass tourism
proclaimed in England that the earth in its fullness and beauty is for the people. Travel in
the distant past was not a thing of pleasure as in the case now. As civilization developed
conscious travel in order to explore and see the world began. The invention of money by
the Sumerians and development of trade and commerce in the beginning of 4000 B.C
perhaps marks the beginning of modern era of travel. Many traders could pay for
transportation as well as accommodation either with money or by the exchange of goods.
The Phoenicians were probably the first real travelers in the modern sense as they
traveled from place to place as traders. Early travel in the orient particularly in indea and in
china was also largely based on trade and commerce. Trade and commerce remained a
strong force for many travelers to undertake long journeys distant lands. This was
followed by an urge to explore new lands and to seek new knowledge in ancient and
distant lands. There are many references of great explorers who spent many formidable
years of their lives in search of knowledge, the first medieval traveler to reach the orient
was probably Benjamin of Tudela a Jewish scholar who left sargassa in the year 1160 A.D.
He wrote a detailed account on his 13th year journey through Europe, Persia and India.
Later on the 16th and 17th centuries many more European monks, travelers and adventures
visited India and many other places in search of knowledge. The expedition of these great
travelers returned with new ideas and also with fabulously rich treasures form rich and
highly advanced civilizations of Asia and other areas of the world. Travel was considered
to be hard and not a thing of pleasure, the transport and communication systems as we
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know now was non existent. The land migrations were done by foot and on horse back,
elephant, camel and river craft in Europe, Asia and Africa Romans probably were the first
pleasure.
Travelers travel received a great stimulus form the good communication system and
security of the Roman Empire. The Romans also traveled during holiday occasions
particularly the famous Olympic games. Travel for religious purposes assumed significant
importance during the middle ages. The practice of traveling for religious reasons, going
on a pilgrimage became a well-established custom in many parts of the world. Late the
introduction of annual holiday in Europe was another important landmark which
encouraged many people to undertake travel numbers during the 18th century became the
great age of travel.
The concept of modern tourism came into being in the 2nd half of the 19th century hand in
hand with the development of the industrialized societies of western Europe and north
America. Industrialization also brought in an increase of material wealth and certain
improvements in transport and communications during the 2nd half of the 19th century was
yet another crucial mark in the travel history. Shipping like the airways made significant
contribution to the development of travel on land and by air. The concept of mass tourism
emerged along with the introduction of holiday with the pay. It was in the last quarter of
the 19th century that increased attention was paid the desirability of holiday with pay/ up
the beginning of 20th century, tourists traveled almost exclusively by rail and stram ship.
The invention of the new transport medium, travel by private car coach received the first
great impetus in the 10 years. Air transport has certainly been a key factor in the growth of
their national tourism. The war itself had a direct bearing on the development of air
transport in a similar way as had with motor transport.
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GROWTH AND DEVELOPMENT
The basic causes of this rapid growth of demand for tourism in the highly
developed industries countries in the recent decades are economic, social and technological
in nature. Rising per capita incomes leading to higher incomes have made tourism
accessible to a large majority of people. The impact of the modern transport technology,
especially in aviation field has brought about a completely new meaning to tourism, travel
to even remote destinations has now become a reality. The technological developments in
transport have made it possible for millions of people to travel to faraway places which
only a few generations ago were regarded as being almost entirely inaccessible. The newer
marketing methods like the package tour is a major contributing factor to the growth of tourism.
MEANING AND NATURE OF TOURISM
A clear concept and a more precise and scientific definition of tourism are necessary for
various purpose. first for the purposes of study in order to describe the tourism
phenomenon systematically it is necessary to describe and define what it covers. Second
are statistical purposes. The following are the distinct elements of tourism.
Involvement of travel by non-residents.
1. stay of temporary nature in the area visited.
2. stay not connected wit any activity involving earnings.
Tourism is therefore a composite phenomenon which embraces of a mobile
population of travelers who are strangers to the places, they visit. It is essentially a
pleasure activity in which money earned in one’s normal domicile is spent in the place
visited.
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BASIC COMPONENTS OF TOURISM
Tourism does not exist in isolation. It consists of certain components , three of
which may be considered as basic. These three basic components of tourism are :
TRANSPORT, LOCALE, and ACCOMMODATION. Of these three components
locale with its attractions and amenities id the important as these are very basic to
tourism.
In addition to three basic components of tourism namely transport, locale and
accommodation, there are certain element or ingredients of tourism. These elements
that are the fundamental attraction of tourism are:
1. pleasuring weather:- One of the most important and crucial attraction of any
tourist place is fine with sunshine. For holiday geed weather is a particularly
important ingredient since it plays an important role in making holiday a
pleasant or an unpleasant experience.
2. Scenic attractions :- Scenic attractions like good weather are very important
factors in tourism. Scenery or the landscape consisting of mountains lakes
waterfalls glaciers forests deserts etc is strong forces attracting people to vesit
them. Breathing mountain scenery and the coast scenery exert a strong
fascination for the tourist. The magnificent mountain ranges provide an
atmosphere of peace and tranquility.
3. Historical and cultural factors :- characteristics of historical and cultural interest
exert a powerful attraction for many. Since many centuries these have had a
profound influence o the traveler.
4. Accessibility:- Accessibility is a very crucial factor as it means by which
tourist can reach the area where attractions are located. Tourist attractions of
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whatever type would be of little importance of their locations are inaccessible
by the normal means of transport.
5. Amenities :- Facilities are necessary aid to the tourist center. For a seaside
resort facilities like swimming.
6. Mining boating yachting surf riding and such other facilities like dancing,
recreation and amusements are an important feature.
7. Accommodation :- Accommodation is very basic to any tourist destination. The
demand for accommodation away from one’s home is met by a variety of
facilities. The term is loosely used to cover food and lodging.
In addition to the factors discussed there are a variety of other factors, which may
influence the choice of tourist’s destination. Attitude of the nationals of the host country
will certainly make the visitor feel at home and help him enjoy his holiday better
FACTORS INFLUENCING THE GROWTH OF TOURISM
Socioeconomic factors like income mobility age education and cost are thus crucial
in the evolution of demand. Together with leisure these are responsible for determining the
growth of international tourism. The most comprehensive list of factors influencing the
growth of tourism comes from louis erdi (1970) of the Swiss Federal university.
The list include
1. Greater affluence and more leisure for an increasing number of people particularly
in the developed countries.
2. The emancipation of the young and the relatively higher wages they possess (when
they no family responsibilities) enabling them to travel.
3. Transport facilities especially by air very much better and cheaper and there is a
high rate of care ownership.
4. An enormous growth in international business necessitating travel
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5. Package tours allow people who are unused to making their own arrangements to
travel with an easy mind and are good value because of bulk buying of transport
and hotel accommodation.
6. Relief from adverse climate in the home country may be found abroad.
7. Travel has become a status symbol.
8. Conferences and business meeting are proliferating.
9. Better education has interested a large section of public in cultural tourism.
10. World exhibition and trade fairs have become very popular.
11. publicity has become more and more aggressive whetting the appetite of even the
most unwilling to travel.
Ideological pressure groups (political, cultural, scientific etc.) hold more and more
annual convention etc.
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CHAPTER 4
COMPANY
PROFILE
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The corporation was incorporated during the year 1976 has subsidiary to Andhra
Pradesh state road transport corporation limited in the mane of travel and tourism
development corporation PVT Ltd with and authorized and paid up share capital of Rs 100
lakhs and 13 lakhs respectively. The company became a wholly owned government
company march 1980 the authorized and paid up shear capital of the company is Rs1000
and 376.12 Lakhs respectively. The name of the company has been changed to Andhra
Pradesh tourism development corporation limited during the month of October 2000. the
main objective of the company is to develop tourism in the state providing adequate
infrastructure to maintain and sustain tourist interest simultaneously triggering the growth
of the economic activity of the region.
OBJECTIVES:
The main objectives of the company is to over develop and manage the guest
house, resource and tourist interest sites for the benefit of the tourist. To run, establish and
manage transport unit and operate tourist buses, cars, coaches and other modes of
transport.
Following are the main activities of the corporation.
o Packages tours
o Accommodation and catering services
o Water fleet operations
o Sound and light shows
o Eco- tourism
o Lease and privatization
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APTDC VISION:
In the year 1998 the ANDHRA PRADESH TOURISM DEVELOPMENT
CORPORATION was a loss making unit. There was a strong move to even close down the
corporation. In the year 2003-2005 APTDC generated revenues totaling Rs 38 crore,
making a strong bid to be the top Tourism corporation in India .
This turnaround happened in just three years because certain strategic measures for
growth were adopted:
1. Completion of all pending projects funded by central government
2. Establishment and up gradation of infrastructure.
3. Introduction of new tours and tour packages.
4. Introduction of value added services
5. Promoting Eco- Tourism facilities
One of the notable achievement is that the corporate office of APTDC has now been
shifted to its own premises – a five stored ‘Tourism House ‘ built at a cost of Rs 3.25 crore
with all modern amenities, in a record time if nine months.
This updated profile of the corporation should be able
to provide you with some insights into why the APTDC is all set grow further in the
coming years.
ACCOMMODATION:
The basic infrastructure for planned tourism development, has been am area pf
thrust. APTDC has completed the renovation of all the existing units and has built new
hotels and additional rooms and expanded the facilities at places of tourist and pilgrim
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interest such as Yadagirigutta, kesarigutta , Basara, Srisailam, Dwaraka Tirumala Horsely
hills Araku valley and Nagarjunasagar.
TOURIST SPOTS:
ARAKU VALLEY:
Araku valley is a popular tourist spot and a hill resort in Visakhapatnam district
increasingly attracting more tourists. APTDC has constructed haritha valley Resort with
40 Delux rooms. The facilities include a conference hall multi-cuisine restaurant, bar,
swimming pool, fitness center, indoor games and a souvnier shop. The total cost of the
project is Rs 4 crore.
At present there are 100 rooms available at the Haritha valley Resort and
Haritha Hotel Mayuri at Araku valley including 10 non- a/c rooms at the newly established
crafts center.
HORSELY HILLS:
Eight rooms have been added and the present room strength is 42, including
those in the reception complex. A restaurant with an attached bar have been opened.
Conference facilities, fitness center, souvenir shops, swimming pool and children’s play
area have also been added to this his resort in chittor district.
SRISAILAM:
Haritha hotel with 37 rooms and vegetarian restaurant was opened pin November 2002.
WAYSIDE AMENITIES AT DORAVARI SATRAM & TATA NELLORE DISTRICT:
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Haritha highway plazes have been opened on NH-5 towards chinnai at Doravari
saram and tada in Nellore District. The amenities includes fuel retail outlet truckers
parking car park, restaurant and rest rooms
HARITHA HGHWAY REORT, PUTTER:
On the National Highway to Chennai, about 50 km from Tirupathi, a wayside amenity
has been created by the APTDC on 4.5 acres of land just out of putter town. The facilities
here include 2 A/c and 4 Non A/c rooms, a 50-seaters restaurant and bar.
APTDC ran 25 special coaches for pilgrims visiting Rajahmundry, Bhadrachalam, and
Basar from Hyderabad, Vijayawada and Kurnool during the Godavari Pushakram between
30th July and 10th August,2004. Nearly lakh pilgrim benefited from these special tours.
TOUR HOSTESS SCEME:
APTDC has introduced a novel “Tour Hostess” scheme. To enable small groups of
tourists, families and business travelers enjoy and benefits from their trip, a “tour hostess”
will accompany them enlighten their trip. The tour hostesses are imparted specially
designed training. The facility currently available in Hyderabad and vishakapatnam but
will be extended to other cities and towns soon.
TOUR HOSTESS SCHEME:
APTDC has introduced in tirupathi is a Tourist Escort, Service, that will provide
tourists, especially those coming from far off places, Services such as arranging
accommodation, providing transport and taking them on sightseeing trips.
LEISURE CRUISES & PLEASURES BOATING:
APTDC has made effective use of rivers and lakes at important places in the State by
strengthening its water fleet and providing pleasure boating and leisure cruise facilities. A
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Beginning was made with commissioning of two luxury cruisers “Bhageerath” and
“Bhagmati” in the Hussainsagar lake in Hyderabad.
A Part from strengthening the water fleet at Hussainsagar, Mir Alam Tank and urgam
Cheruvu in Hyderabad, boating has also been introduced at lower Manair Tank and the
Godavari at Rajahmundry.
STRENGTHENING THE WATER FLEET AT RAJAMUNDRY
A floating jetty costing Rs.10.5 lakh was installed at Rajahmundry before the Godavari
pushkaram. The Russian Launch Zaria with capacity to seat 80 persons now has been
shifted from Nagarjunasagar to Rajahmundry and modernized for the pleasure cruises on
the River Godavari.
SOUND & LIGHT SHOWS
The Sound and Light Show at the Golconda Fort, Hyderabad continues to draw large
groups of tourists every day and it rated as on of the best Son-et-Lunieres in the country.
The show narrates the saga of the Qutub Shahi Dynasty and the history of Golconda Fort.
The Golconda Fort was awarded the “best Tourism Friendly Monument” in January,2003
by the Department of Tourism, Government of India.
Sound and light show has been introduced at Chandigiri Fort, near Tirupathi, the last
capital of the mighty Vijayanagar empire.
ECO-TOURISM
APTDC is well into realm of the eco-tourism, given the wealth of the natural beauty of
the state. Over the last three years, the Corporation has carefully and identified nature spots
and nurtured eco-tourism as a specialized service.
Prime Locations identified for development of unique eco-tourism circuits in the state
include araku valley and adjoining hill ranges, the srisailam, Nagarjunasagar Tiger reserve,
Pulicat lake and tirupathi tirumala hills.
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JUNGLE BELLS NATURE CAMP, TYDE:
Log heads with conference facilities , additional cottages of uniquely designed igloo
huts, machan cottages and a tribal products sales counter are the attraction at the first eco
tourist projects of the corporations- “the jungle bells” nature camp at tyda 75 km from
Vishakapatnam.
ILLUMINATION OF ETTIPOTALA WATER FALLS:
The 21 mts silverly cascade of ettipotala water falls located near Nagarjunasagar has
been illuminated with dynamic lighting. Realizing the potential the corporation has
landscaped the entire area, opened a restaurant and has provided cottages for
accommodation. Lambada dances are arranged for tourists on holidays. A windmill is an
added attraction.
DURGAM CHERUVU LAKE RESORT:
The durgam cheruvu, popularly known as “secret lake”, located beyond jubilee hills
dean made into an attractive nature spot. The 63 acre lake and its surrounding land of 21
acres have been developed with wilderness landscaping, promenade for walkers, terraced
lawns for visitors and for parties, a restaurant and bar ( “ something fishy”) , snack bars,
and an island that can be assessed by a wooden bridge.
Boating facilities at Durgam lake, a 60 feet spout in the midst of the lake and angling
facilities are the attraction.
The revenue from eco-tourism projects increased by over three times from 51lakhs in
2001-02 to 174 lakh during 2002-03. APTDC plans to develop more eco-tourism projects.
HUMAN RESOURCE DEVELOPMENT:
The corporation has been attention to the strengthening of human resources with so much
of growth taking place in the tourism sector as well as the corporation’s infrastructure and
facilities. Professionalism has been brought into the administration through continuous
training and development of the personnel, a factor that has contributed to the growth.
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A significant and productive synergy of employees drawn from other relevant
departments, contract employment and the corporation’s permanent employees has been
achieved as the tourist would like the best of service with a professional touch.\
INFORMATION AND RESERVATION SYSTEM:
From just two booking counters for the corporations’s services in the twin cities of
Hyderabad and secunderabad , APTDC ‘s CRO’s now operate in Hyderabad,
Secunderabad, Ramachandrapuram(BHEL) in Hyderabad, Vijayawada, Visakhapatnam
Tirupati, Ahmedabad, Kolkotta, Mumbai, Chennai, Bangalore.
A Marketing wing was created at the head quarters and executives from this wing were
subsequently posted at important centre like Tirupati Visakhapatnam , Vijayawada.
TARAMATI BARADARI- THE REALM OF MUSIC & DANCE HYDERABAD.
“Taramati Baranari” perched on a hillock, was an exclusively gateway for Abdullah
Qutub Shah of the Qutub Shahi kingdom where Taramati danced and premavatio sang for
him.
APTDC is reviving the past glory with the creation of an Art & culture complex
around the monument with the total estimated cost of Rs600 lakhs, funded by government
fo Andhra Pradesh. The project components and the facilities include:
1. monument restoration & dynamic illumination.
2. Landscaping & Gardening
3. An open- air theater of 1500 seat capacity
4. An indoor auditorium of 500 seat capacity
5. Accommodation of six suites and 24 rooms
6. 100 seaters A/C Restaurant with facilities for indoor cultural shows
HIGHWAY RESORT, KUPPAM CHITTOR DISTRICT:
A “haritha “ Highway Resort has been developed at kuppam in chittor district at a cost of
Rs 230 Lakhs funded by Government of Andhra Pradesh .
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The facilities include:
1. Accommodation of 8 suites & 12 rooms and 24 bed dormintory
2. A Restaurant and Bar that can seat 60 and 24 respectively.
3. Swimming pool
4. 3000- seater Amhitheater
5. 50-seater conference hall.
6. children’s play Area
7. Information center
PARYATAK BHAVAN:
One of the most prestigious projects with a concept that will benefit all stake-holders in
tourism development as well as tourist. The project plans have been finalized and the work
is expected to commence later this on acre site that has been taken over by APTDC. The
Rs 22-crore project being executive by the corporation will be funded by the government
of India, Government of Andhra Pradesh and APTDC.
The total build- up area is planned at 130000 sq ft with parking facility for 150 vehciles.
KONASEEMA RIVER RESORT:
Located in west Godavari district, konnaseema River Resort on the banks of River
Godavari will have house boats, waterfronts restaurant, reception lounge and public
convenience. The Rs 150 lakh project is slated for commissioning by march 2004.
BUDDHAVANAM: THE BUDDHIST THEME PARK:
In recognition of nagarjunsagar as an international Heritage Destination, the
corporation is developing “the Buddhavanam” a Buddhist theme park over an area of 274
acres at Nagarjunasagar. Te master plan is in advance stage of preparation and the project
is expected to be grounded shortly.
The master plan includes “mahastupa” forming the focal point of “ The
Buddhavanam” with eight segments in periphery, depicting specific themes of Buddist
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Philosphy, theme park of Jhataka tales, replics of stupas of different countries and replicas
of rock-edicts. Ikshavak Dynasty of Nagarjunasagarkonda, history and philosophy of
Acharya Nagarjuna will also features in the Buddhavanam theme park.
COTTAGE AT TALAKONA:
Talakona near Tirupathi is located in the picturesque Nagari Valley with a perennial
waterfall.the water is said to contain minerals with curative properties. Here, APTDC has
its Haritha Hotel with 12 rooms. Log hut cottages and a canopy restaurant apart from
landscaping are being added at a cost of Rs.35 lakhs.
ACTIVITES OF THE CORPORATION
Over the past four years, Andhra Pradesh Tourism Development Corporation
(APTDC) has added an array of functions to its list of tasks. With a determination to show
commendable performance.
From just providing information to tourists, it has gone into serious business like
accommodation, catering and such other services that have become essential tourist
infrastructure and service. The corporation’s activities at present include
1. accommodation
2. Catering
3. Conducted
4. Package tours
5. Leisure Cruises & Pleasure Beating
6. water sports
7. Sound & Light Shows
8. Eco- Tourism
9. Adventure Tourism
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10. Tourism infrastructure Development
11. New projects implementation
The corporation chalked out an action plan covering all these vital function. The
organizational structure of the corporation has also been recast keeping in mind the growth
and result oriented development activity in all these spheres.
The turning point
The turnover of the corporation in 1998-1999 was Rs 328 lakh and this went o to
become a whopping Rs 7698 lakh at the end of the financial year 2005-2006 a turn over
hat no other tourism corporation in the country would have ever achieved in such a short
time.
Keeping this performance in view the corporation has reset its goal to maintain
the tempo and meet the ever-increasing challenges posed by such rapid development and
resultant expectations.
ACCOMMODATION & CATERING
An important ingredient for development of tourism is provision of comfortable
accommodation for all classes of tourists. With this view, a two prolonged approach was
adopted while refurbishing existing accommodation and create new units wither through
acquisition or new construction.
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Over the last three years the corporation has a total amount of Rs. 733.90 lakh for
remodeling / refurbishing existing accommodation and Rs. 523.04 lakh on new furniture,
CTVs, telephones, and Geysers etc.
APTDC has been acquiring building guesthouse that have been lying in neglect in
important tourist interest places, renovating them and giving them a facelift to provide
accommodation on par with three-star hotels. Six years ago(1998-99) the accommodation
units managed by the corporation numbered 16,providing collection bed strength of over
1910.
1. The rooms are well furnished and have been provided with such amenities as
telephone, television and Geysers in the baths.
2. Catering facilities have opened.
3. Bars have been opened in most of the corporation’s hotels and resorts expecting
those in pilgrim centers.
4. Conference facilities have been created at APTDC units at Nagarjunasagar, Horsley
hills and Vishakhapatnam with seating capabilities ranging from 50 to 200.
5. All the rooms have been provided with 24-hour hot and cold water supply, cable
television and telephone, Adequate parking facilities, depending on the location,
have been provided.
6. While Central reservation offices of APTDC arrange the booking through a
computerized system, such facilities are also well in place at the units themselves.
Major Accommodation units:
Haritha hotels Nagarjunasagar, Warangal, Vishakhapatnam, Punami resorts at Horsley
hills, Rishikonda beach, Araku Valley have haritha restaurants and Amrutha Bars.
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1. Haritha Hotels at Yadagirigutta, Keesaragutta, Mantralayam, Srisailam and basar
have no bar facility, being pilgrim centers, but haritha restaurants take care of
catering with exclusive vegetarian food.
2. Haritha Hotels at Amaravathi, Mahanandhi Talakonda, Kaisanathakona and
batasari hotel at Vijayawada have catering arrangements.
3. Conferencing facilities to accommodate up to 100 persons are available at Haritha
hotels at Nagarjunasagar, Srisailam, Horseley hills and Vishakapatnam.
Catering Unit
APTDC opened an exclusive catering unit at Qutb Shahi Tombs comlex, Hyderabad in
February 2002, Mahtaab Means Full moon. Moon light by beautiful Qutb Shahi Tombs
near Golkonda would be an exciting experience. This is made all more exting with opening
of mahtaab, a specialty restaurant serving Deccan food. Built at a cost of Rs.45 Lakh
complementing the Qutb Shahi Architecture, Mahataab is a 50-seat multi-cuisine
Restaurant with attaced fast food center.
Lunch is arranged at the restaurant for visitors to the tombs and every Friday through
Sunday, Chowki dinners, the traditional exclusive Hyderabad style of serving is offering to
the accompaniment of Ghazals and dance and others cultural fare. ‘Chowki Dinners’ are
also arranged on other days on request either at the restaurant or close to Qutb Shahi
Tombs.
Package Tours:
The corporation has developed a number of package tours specially designed for the
tourists from Europe, West Asia and Fast Countries. Such packages are worked out and
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details sent to the tour operations in these countries to enable groups of tourists to take
advantage.
Tour package include airport / railway station pick up, accommodation, Breakfast,
lunch and dinner, Conducted sight-seeing with a tourist guide and shopping time and
opportunity. The groups can choose from three and five star accommodation as per their
need affordability.
Leisure Cruises and pleasures Boating & Water Sports
Andhra Pradesh is endowed with a number of rivers and water bodies giving a great
opportunity for leisure, pleasure boating and water sports. APTDC started making best use
of the water bodies for adding tourism infrastructure. Hussain sagar, lake in the center pleasure cruisers of APTDC have been given own names.
HUSSAINSAGAR CRUISERS:
Bhageerathi : bhageerathi was the first pleasure cruiser on the Hussainsagar lake in
Hyderabad Mohammed Quli Qutub Shah. It was during the reign of mohammed Quli’s
father.
Ibrahim that the Hussainsagar was excavated. Bhageerathi was a princess of he
Vijayanagar Empire, Whom Ibrahim married.
Bhagmati: Bhagmati Luxury Cruiser was named for the consort of Mohammad Quli. This
is the second cruiser on the Hussainsagar. It was love fro Bhagamati that inspired
Mohammed Quli to build the city of Hyderabad in 1591 while ruling Golconda.
Krishna river Cruises:
Shantisiri: Shantisiri is the third luxury curiser of APTDC for operating in the reservoir of
the Nagarjunasagar where the capital of the ishvaku kingdom that ruled the the region was
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located. Vijayapuri was the capital of ilshvakus who ruled from 2nd century AD . the
ruling class males were followers of Brahmanism but women were attracted to Buddhism.
Amaravati: Amaravathi is a luxury cruiser being introduced soon on the river Krishna
was another great Buddhist center with the largest stupa in the country built there.
Sivagami: Sivagami is the cruiser that will operate in the reservoir of the Sicilian project.
Sicilian in the Nallamala hills is among the most important Siva temples in the country and
in the entire south India.
The corporation will soon have another cruise on the river Krishna at
Vijayawada with similar luxury cruiser Amaravathi and at Srisailam with the cruiser
Sivagami. APTDC proposes to upgrades the motor launch Zaria that has veen in operation
at Nagarjunasagar and use for cruises between Bhadrachalam and Rajahmundry on the
river Godavari.
Sound and light shows
At Golconda fort:
APTDC had taken the initiative to put together a sound and light show at the Golconda
fort, Hyderabad in the early nineties. The show first commenced in the year 1991.
The saga of Golconda is told through a son-et-Lumiere show of unmatched quality and
excellence. The show is rated as the best in the country . there are two shows daily between
6.30 pm. The 1st is in Hindi on Mondays, Fridays and Sundays.
At chadragiri fort:The last capital of the Vijayamagar kings was chandragiri on the banks
of river swarnamukhi in chittor district. It is just 12Km from the temple town of Tirupathi.The vijayanagar empire has contributed vastly to Telugu culture art and literature.
ECO-TOURISM:
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Andhra Pradesh has vast potential for eco-tourism development. A 1000 km long
coastline lush forests with exotic wildlife , rivers, hills and valleys , caves and rock
formations combined with the unique location of the state provides and excellent
opportunity to develop and promote ecotourism.
APTDC is well into the realm of eco- tourism activities require a conscious effort
to conserve natural environment and yet let the enthusiastic tourists and nature lover
mingle with the natural surroundings. To this calls for careful planning and identifying the
nature lovers mingle with the naturals surrounding. To this calls for careful planning and
identifying the nature sports that can be thrown open to tourists by providing the necessary
facilities.
Eco-tourism projects in the state handled by the corporation have been broadly grouped as
oFor nature lovers
oWild life
oBorra caves
oDurgam cheruvu
For nature lovers
1. Talakona wilderness resort
2. Ethipothala waterfalls
3. Borra caves
4. Durgam cheruvu
Wildlife tourism
1. Pakhal lake and sanctuary
2. pulicat sanctuary
3. Nelapattu sanctuary
PRIVATISED BOAT (BUILD-OPERATE-TRANSFER)
PROJECT OF APTDC: ESTIMATE COST (Rs.Lakh)
1. Food Courts at Necklace 465
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2. Highway Plazas at various AP Tourism sites 700
3. Resorts at Gandipet 600
4. Golf course at Naya Quila 250
5. Snake park at Malkajgiri, Hyderabad 30
6. Family Entertainment Center, Vijayawada 175
7. Family Entertainment center, Secunderabad 2700
PROJECTS UNDER IMPLEMENTATIONS BY APTDC:
1. NATIONAL INSTITUTE OF TOURISM & HOSPITALITY MANAGEMENT:
Components: Academic Block, Library, Training / research facility, Hostel,
Administration blocks, Auditorium, Guest house and Faculty Housing.
Project Cost: Rs.20,000 lakh.
2. BAPU GHAT, HYDERABAD
Components : memorial of Mahatma Gandhi, Meditation center, Library, Land scape
Garden, Theme Park, Sound and Light Show.
3. YATRINIVAS HOTELS AT NAGARJUNASAGAR :
Components: Accommodation, Restaurant, Bars, indoor Games.
“TOURISM HOUSE” THE NEW CORPORATE OFFICE:
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APTDC has now raised its own building “tourism house” with state of art facilities at
Himayathnagar, Hyderabad to locate its Corporate office. The office started functioning
from the new premises since July 2003. The civil works of the building were completed in
a record time of seven months and the interiors in two months.
HIGHLIGHTS OF “TOURISM HOUSE”
1. Plot area of 1127 Sq.Metre plinth area 26,610 Sq.ft including Cellar, Ground and Five
Floors.
2. Thirteen cabins for Group Heads, Fourteen rooms for senior Executives ; Seventy Six
work stations with open office concept; Board room, Conferencesroom and a library.
3. visitors lounge at each level cafeteria with 42 seating capacity.
4.Central air conditioning; Automatic Fire detection system; 250 KVA power Generator.
5. Entire area a “NO Smoking zone “
6. Project Cost Rs.325 lakh.
CHAPTER 5
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DATA
ANALYSIS
BUDGET FOR (PLAN)
2006-07 plan
2007-08Plan
2008-09plan
Budget estimates 3526.8 5251.2 6251.2
Revised estimates 2626.38 5251.2 6251.2
accounts 3221.06 4722.26 4385.53
difference -594 528.94 1865.67
% variation -22.64 10.07 29.84
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TOURISM PLAN
-30
-20
-10
0
10
20
30
40
1 2 3
YEAR
V
A R I A T I O N
Series1
INTERPRETATION:
1. In 2006-07, for plan budget the organization could not forecast the costs properlyand hence there was a huge difference between revised budget and accounts.
2. In 2007-08 , the organization could forecasts correctly but the resources additional
were utilized for other purposes.
3. In 2008-09, the revised estimate was very huge compared to the accounts whichwere very small and the additional resources were utilized for other purposes.
4. The organization could not estimate tourist flow correctly in 2005, as a result of
which accounts showed a greater variation.5. Due to starting up of new projects in and around A. P the organization increased
their revised budget estimates to a huge amount from 2006 to 2007.
2. BUDGET FOR TOURISM (NON-PLAN)
2006-07
plan
2007-08
plan
2008-09
plan
Budget estimates 1392.2 1393.94 1468.4
Revised estimates 395.83 1232.24 1502.6
accounts 395.65 242.58 224.68
difference 0.18 989.66 1277.92
% variation 0.045 80.31 85.04
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TOURISM NON PLAN
0
20
40
60
80
100
1 2 3
YEAR
% V
A R I A T I O N
Series1
INTERPRETATION:
1. In non plan budget, for 2006-07, there was only a slight negligible variation
between revised budget and accounts.
2. In 2007-08, 2008-09, there was a huge difference in revised estimate and
accounts as general direction and administration costs can be reduced by
qualified professionals a lot and the amount was utilized for further for further
years.
3.BUDGET FOR TOURISM TOTAL
2006-07
plan
2007-08
plan
2008-09
plan
Budget estimates 4919 6645.14 7719.6
Revised estimates 3022.21 6483.44 7753.8
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accounts 3616.71 4964.84 4610.21
difference -594.5 1518.6 3143.59
% variation -19.671 23.42 40.54
TOURISM ACCOUNTS T
-5 0
0
50
1 2 3
YEA
% V
A R I A T I O N
S e r i e s 1
INTERPETATION:
1. In 2006-07, there was a negative difference between revised budget estimate and
accounts of the organization.
2. But from 2007-08 and then the organization estimated the budget correctly and
was successful bringing profits. Through which many new projects were being
started by the organization which helped to satisfy the tourists all over the country.
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4.BUDGET FOR PLAN ALL HEADS
2006-07
plan
2007-08
plan
2008-09
plan
Budget estimates 3836.8 6211.2 7111.2
Revised estimates 2848.87 6211.2 7111.2accounts 3684.04 5401.26 5217.5
difference -835.17 809.94 1893.7
% variation -29.31 13.03 26.62
PLAN TOATL
-40
-20
0
20
40
1 2 3
YEAR
%
V A R I A I T O N
Series1
INTERPRETATION:
1. In 2006-07 the organization could not estimate the budget properly and hence there
was a huge difference between revised budget and accounts.
2. From 2007 the organization increased its budget a lot by looking the increasing
number of tourists from both local and foreign. The amount taken by organization
from government and other sources was a huge one compared to the accounts i.e
the costs were very less which were utilized for new projects by the organization.
5.BUDGET FOR NON PLAN ALL HEADS
2006-07
plan
2007-08
plan
2008-09
plan
Budget Estimates 2152.23 2252.94 2486.91
Revised Estimates 1186.13 2069.39 2606.66
Accounts 1186.03 1005.95 1245.49
Difference 0.1 1063.44 1361.17
% Variation 0.008 51.38 52.21
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non plan total
0
10
20
30
40
50
60
1 2 3
year
% v
a r i a t i o n
% Variation
INTERPRETATION:
1. In 2006-07, there was a very little difference between revised estimate and accounts i.e
the organization utilized the amounts very carefully and correctly.
2. From 2007, there was a huge difference between revised estimate and accounts due to
many contract employees and other factors. Now the organization utilized the resources
for new projects and for other productive purposes.
6.TOTAL OF ALL HEADS
2006-07
plan
2007-08
plan
2008-09
plan
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Budget Estimates 5989.03 8464.14 9598.11
Revised Estimates 4035 8280.59 9717.86
Accounts 4870.07 6407.21 6462.99
Difference -835.07 1873.38 3254.87
% Variation -20.6957 22.62375 33.49369
TOTAL ACCOUNTS
-30
-20
-10
0
10
20
30
40
1 2 3
YEAR
% V
a r i a t i o n
% Variation
INTERPRETATION
1. In 2006-07 , there was a huge difference between revised estimate and accounts i.e
the organization could not estimate properly the future costs accrued by it.
2. But from 2007, the organization could succeed in attaining profits and utilize the
resources for new projects and also setting up of reserves.
7.CONSOLIDATE D TOTAL BUDGET ESTIMATES
2006-07 2007-08 2008-09
PLAN NONPLAN TOTAL PLAN
NONPLAN TOTAL PLAN NON PLAN T
BUDGET
ESTIMATE 3836.8 2152.23 5989.03 6211.2 2252.94 8464.14 7111.2 2486.91 9
REVISED
ESTIMATE 2848.87 1186.13 4035 6211.2 2069.39 8280.59 71112.2 2606.66 9
ACCOUNTS 3684.04 1186.03 4870.07 5401.26 1005.95 6407.21 5217.5 1245.49 6
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DIFFERENCE -835.17 0.1 -835.07 809.94 1063.44 1873.38 1893.7 1861.17 3
% VARIATION -29.31 0.0084 20.69 13.03 51.38 22.62 26.62 52.21 3
-30
-20
-10
0
10
20
30
40
50
60
1 2 3 4 5 6 7 8 9
% VARIATION
INTERPRETATION:
1. In 2006-07 plan budget was not estimated properly and hence the organization
went into losses. Non plan budget was estimated correctly and hence there was only
a minute difference between revised budget and accounts.
2. From 2007, the organization was successful in attaining huge profits with increased
number of tourists attractions and utilizing the budget properly and carefully
3. From 2007 onwards the budget taken by the organization has also increased a ot
compared to previous years which showed a tremendous increased in profits of
APTDC.
Budget estimate for the financial year 2009-2010
The corporation has projected a budget wit a total turnover of Rs 121.51crores for the
financial budget year 2009-10 , as against a total turnover of Rs 100.81 crores during the
year 2008-09 resulting in a overall growth rate of 21%
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The corporation has projected an expenditure of Rs 98.77 crores for the budgeted year
2009-2010 as against the total expenditure of Rs 86.87 crores projected for the 2008-09
Thus the year 2009-10 is likely to end up with a net surplus of Rs 22.74 crores as against
Rs 13.95 for the year 2008-09.
CAPITAL BUDGET FOR THE FINANCIAL YEAR 2009-2010
The corporation is proposing the following projects to be executed during the financial
year 2009-10 with financial support from internal resources and raising loans from
financial institutions/ banks Board of Directors has approved the proposal to purchase
buses by raising loans.
PROJECT AND SCHEME SANCTIONED BY THE
GOVERNMENT OF A.P DURING THE YEAR 2007-08
Sno Name of the project SOURCE OF FINANCEGOAP APTDC TOTAL
1 Additional Block at srisailam-45
Rooms
0 200.00 200.00
2 Mypadu Beach Resort 50.00 100.00 150.00
3 Nellore Lake Front development 0 70.00 70.00
4 Water fleet at Dindi & Pattiseema 0 50.00 50.00
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5 Water fleet at Ahobilam 0 50.00 50.00
6 Water fleet at mid Pennar Dam 0 50.00 50.00
7 Idupalapaya 300.0
0
50.00 350.00
8 Wayside Amenities-2
Sone (Adilabad)-
Singarayakonda
50.00 50.00 100.00
9 Augmentation of Buses
AC Buses 10 Nos
Non-AC Buses 6 Nos
VOLVO 4 Nos
City Sight seeing 1 Nos
0 650.00 650.00
CHAPTER 6
sno Name of the scheme /project Amount1 National Institute of Tourism and Hospitality Management 115.00
2 Development of Vemana smaraka Samadhi- Katarupalli 50.00
3 Development of Somasila Guest House at Nellore 125.00
4 Wayside Amenities 200.00
5 Budget Hotel at chinchinada & kadapa 400.00
6 Southern Splendour 100.00
7 Tourist facilities at Edupayala Medak district 150.00
8 Araku Budget Hotel 100.00
9 Bhongir- Kolanupaka 200.00
10 Pillalamarri, Mahabubnagar District 50.00
11 Pochampad 150.0012 Sangameswara Chitravathi, Alladipalli (Kadapa District) 50.00
13 Medak church &Medak Fort 100.00
14 Rishikonda Beach Development 50.00
15 Infrastructure facilities at undavalli and uppalapadu 50.00
16 Beach Resorts at Baruva, srikakulam dst – Appikonda at 225.00
Visakhapatnam and Kothapatnam, Prakasam Dst
17 Advertisement & publicity 200.00
18 Matching share to APTDC 151.00
TOTAL 2,466.20
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CONCLUSIONS
AND
RECOMMENDATIONS
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CONCLUSIONS:
1. In the cultural affairs budget non plan for the first year the organization could not
estimate the future costs correctly but from l year they were successful in bringing
profits.
2. In cultural affairs budget plan there was a irregular trend i,e., for one year there are
losses, again profits and in the final year there were again losses
3. In A&M budget plan the organization could not estimate the future costs all the
three years sometimes there was huge negative difference between revised estimate
and accounts. sometimes there was a huge positive difference between revised
estimate and accounts.
4. In A&M budget non plan the organization was very successful for the first year and
after that it could not estimate properly due to the growing demand for their
services
5. In tourism budget plan the budget has increased to a huge amount after 2004 with
the growing of both local and foreign tourists.
6. In plan total budget for 2003-2004 the organization could not estimate correctly but
from next years it was successful in bringing huge profits and also in developing
them.
7. Again in non plan organization was successful only for the first year and from then
onwards it could not forecast properly but utilized the resources as reserves and for
new projects.
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RECOMMENDATIONS:
If the organization can still control costs and utilize the resources effectively then it
may attain huge profits and also it can increase its value in AP
More branches of APTDC should be opened in every part of country so that it may be
feasible for all the persons to utilize APTDC’s resources effectively.
The organization should also minimize the rates which may help all categories of
people to utilize APTDC’s services.
In total budget when we take the average of all the years we can conclude that the
organization was developing since 2005 in a huge amount and it may be successful
when it can utilize the total resources as services to public. Still it has to forecast
accurately and the budgeted amount should be used in developing rural and even
some parts of urban in promoting tourism.
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CHAPTER 7
APPENDIX
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1.NOTE ON DEMAND FOR GRANTS
DEMAND No.XXXVII TOURISM , ART & CULTURE
FOR THE FINANCIAL YEAR 2005-2006
Plan: Rs 6211.20 lakhs
Non plan: Rs 2252.94 lakhs
Hon’ble speaker sir,
I have privilege to place before the House Demand no.XXXVII in respect
of Tourism ,Art Culture for the financial year 2005-2006 for Rs 6211.20 lakhs under plan
and Rs. 2252.94 lakhs under non plan expenditure. The details of budget provisions made
during the previous two years and this years are given here under:-
Head of
Account
Accounts
2003-2004
Budget Estimate
2004-2005
Revised Estimate
2005-2006
Budget Estimate
2005-2006
Plan Non-
Plan
Plan Non-
Plan
Plan Non-
plan
plan Non-
plan
Cultural
Affairs
81.67 323.46 110.00 351.20 160.00 332.02 610.00 369.25
Tourism 3037.2
2
310.65 3526.8
0
1392.2
0
2626.3
8
395.83 5251.2
0
1393.94
Archeology
&
Museums
64.78 522.29 200.00 408.83 62.49 458.28 350.00 489.75
Total 3183.6
7
1156.4
0
3836.8
0
2152.2
3
2848.8
7
1186.13 6211.2
0
2252 .94
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TOURISM
1. Andhra Pradesh, the largest of the southern states enjoys a long coastline of 1250
kms and is culturally rich. Andhra Pradesh offers a variety of unforgettable
experiences to the tourists from a million year old underground caves to modern
tourist infrastructure and amenities.
2. tourism is identified as a growth engine and given industry status for employment
generation and income generation in rural sector. The state government announced
its tourism policy first in 1994 which was modified later in 1998. private
investment in tourism infrastructure development was encouraged.
3. the government has taken steps for promotion of tourism by providing
accommodation. Catering. Transport and recreational facilities at various tourist
places. Greater emphasis is given for rural community based, family based, pilgrim.
Adventure, ecotourism, leisure tourism, and now on cruise tourism, charters and
circular train. There is good responds from private sector for private sectors for
investment in tourism related activities like beach resorts water sports theme parks.
Amusement parks, Trekking, golf, convention centers etc.
4. to achieve the aims and goals of government in tourism sector, a separate tourism
department was formed in May 1974 and Andhra Pradesh Tourism Development
Corporation in 1976 to develop the tourism in the state by providing adequate
infrastructure to maintain an sustain growth in the sector. Project Monitoring Unit
(PMU) was created in youth advancement, tourism and culture department, A.P
secretariat. To carry out the day to day coordination of the major projects and
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district projects under Tourism sector, in view of enlarged and accelerated program
of action visualized by the government. The chief of project monitoring unit is the
secretary to government, YAT & C department with othe r officials.
5. Domestic of Tourist flow to Andhra Pradesh has increased from 633 lakhs in 2001
to 745 lakhs in 2003. international visitors to the state have increased from 67000
in 2001 to an estimated 4.79 lakhs in 2003. As a result of investment in tourism and
greater tourist arrivals, the employment generated across all sectors involved with
tourism industry has increased from 28.00 lakhs in 2001 to around 53.91 lakhs in
2003 with an average growth rate of 16.26% per annum.
6. Department of Tourism , government of India. Have recognized the contribution of
Tourism department in promoting Andhra Pradesh as a ‘ destination state of India’
and for the first time , A.P has bagged six national Tourism awards for the year
2001-2002.viz., Best Tourism performing state, Hyderabad as the best city , best
effective use of IT in tourism, and best maintained tourism website , best tourist
poster- Tholubommalu , unique tourism project- Belum caves and best tourist
friendly monument- Golconda fort. A.P Tourism has subsequently won 4 National
awards for the year 2002-03 viz., Hyderabad as the best city, Best Tourism
Friendly monument for Qutub shahi tombs Best Tourism Film- Doorway to
Deccan , Best NGO for society to save rock. Galileo – express Travel and tourism
award for best Technology practices in travel and tourism was also best owed upon
Andhra Pradesh Tourism.
7. Government of A.P is giving priority for rural and district tourism activities for
development of tourism infrastructure by funding district projects and acting as a
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facilitator by encouraging private participation. An amount of Rs.16.40 Cr was
released to District Collectors fro executing 82 district tourism projects.
8. Similarly , various initiatives are also taken up in promotion of Andhra Pradesh
Tourism through print and media. Partnerships with tour operators and travel
agents, tieups with health tourism partners and other service besides creating
employment for youth in tourism.
9. simultaneously tie-ups with southern states for promotion of south India as a
Tourism destination are also initiated through south India Tourism council
(SITCON) . Under SITCON , A.P Tourism is planning to conduct ‘dakshin utsav
in Delhi to promote south India Tourism and also planning to come up with a
circular train connection all the southern states.
10. CURRENT FOCUS:
o Family oriented tourism activities will be encouraged
o Heritage and pilgrim tourism income generating community based tourism
activities in rural sector will receive focus.
o Needs of the domestic tourists such as wayside amenities. Weekend escapes
health tourism and provision of budget accommodation etc will be given
special focus and
o Promotion of handcrafts and handlooms of Andhra Pradesh as tourism
souvenirs will be encourage.
11. The directorate of tourism AP TDC ltd and youth advancement. Tourism and
culture department are implementing the government schemes.
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12. out of the plan provision of Rs 5251.20 lakhs the following schemes are proposed
for execution during 2004-2005 through director of tourism A.P Tourism
Development Corporation Limited and youth Advancement Tourism & culture
department
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2.NOTE ON DEMAND FOR GRANTS
DEMAND No.XXXVII TOURISM , ART & CULTURE
FOR THE FINANCIAL YEAR 2006-2007
Plan: Rs 7111.20 lakhs
Non plan: Rs 2486.91 lakhs
Hon’ble speaker sir,
I beg to move that the government be granted a sum not exceeding Rs 95,98,11,000 under
grant demand No.XXXVII tourism art and culture for the financial year 2006-07 in
respect of tourism archaeology and museums and culture department towards plan
expenditure of Rs 7111.20 lakhs and non plan Rs 2486.91 lakhs. The details of budget
provisions made during the previous two years and this year are given hereunder:-
Head of
Account
Accounts
2004-2005
Budget Estimate
2005-2006
Revised Estimate
2005-2006
Budget Estimate
2006-2007
Plan Non-
Plan
Plan Non-
Plan
Plan Non-
plan
plan Non-
plan
Cultural
Affairs
218.24 332.07 610.00 369.25 610.00 357.48 610.00 508.60
Tourism 3221.0
6
395.65 5251.2
0
1393.9
4
5251.2
0
1231.24 6251.2
0
1468.40
Archeology
&
Museums
244.74 458.31 350.00 489.75 350.00 479.67 250.00 509.91
Total 3684.0
4
1186.0
3
6211.2
0
2252.9
4
6211.2
0
2069.39 7111.2
0
2486.91
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TOURISM
1. 1.Andhra Pradesh, the largest of the southern states enjoys a long coastline of 1250
kms and is culturally rich. Andhra Pradesh offers a variety of unforgettable
experiences to the tourists from a million year old underground caves to modern
tourist infrastructure and amenities.
2. tourism is identified as a growth engine and given industry status for employment
generation and income generation in rural sector. The state government announced
its tourism policy first in 1994 which was modified later in 1998. private
investment in tourism infrastructure development was encouraged.
3. the government has taken steps for promotion of tourism by providing
accommodation. Catering. Transport and recreational facilities at various tourist
places. Greater emphasis is given for rural community based, family based, pilgrim.
Adventure, ecotourism, leisure tourism, and now on cruise tourism, charters and
circular train. There is good responds from private sector for private sectors for
investment in tourism related activities like beach resorts water sports theme parks.
Amusement parks, Trekking, golf, convention centers etc.
4. to achieve the aims and goals of government in tourism sector, a separate tourism
department was formed in May 1974 and Andhra Pradesh Tourism Development
Corporation in 1976 to develop the tourism in the state by providing adequate
infrastructure to maintain an sustain growth in the sector. Project Monitoring Unit
(PMU) was created in youth advancement, tourism and culture department, A.P
secretariat. To carry out the day to day coordination of the major projects and
district projects under Tourism sector, in view of enlarged and accelerated program
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of action visualized by the government. The chief of project monitoring unit is the
secretary to government, YAT & C department with othe r officials.
5. Government of A.P is giving priority for rural and district tourism activities for
development of tourism infrastructure by funding district projects and acting as a
facilitator by encouraging private participation. An amount of Rs.16.40 Cr was
released to District Collectors fro executing 82 district tourism projects.
6. Similarly , various initiatives are also taken up in promotion of Andhra Pradesh
Tourism through print and media. Partnerships with tour operators and travel
agents, tieups with health tourism partners and other service besides creating
employment for youth in tourism.
7. simultaneously tie-ups with southern states for promotion of south India as a
Tourism destination are also initiated through south India Tourism council
(SITCON) . Under SITCON , A.P Tourism is planning to conduct ‘dakshin utsav
in Delhi to promote south India Tourism and also planning to come up with a
circular train connection all the southern states.
8. CURRENT FOCUS:
a. Family oriented tourism activities will be encouraged
b. Heritage and pilgrim tourism income generating community based tourism
activities in rural sector will receive focus.
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3.NOTE ON DEMAND FOR GRANTS
DEMAND No.XXXVII TOURISM , ART & CULTURE
FOR THE FINANCIAL YEAR 2007-2008
Plan: Rs 8653.38 lakhs
Non plan: Rs 2902.56 lakhs
Hon’ble speaker sir,
I beg to move that the government be granted a sum not exceeding Rs115,55,94000
under grant demand No.XXXVII tourism art and culture for the financial year 2006-07 in
respect of tourism archaeology and museums and culture department towards plan
expenditure of Rs 8653.38 lakhs and non plan Rs 2902.56 lakhs. The details of budget
provisions made during the previous two years and this year are given hereunder:-
Head of
Account
Accounts
2005-2006
Budget Estimate
2006-2007
Revised Estimate
2006-2007
Budget Estimate
2007-2008
plan Non-
Plan
Plan Non-
Plan
Plan Non-
plan
plan Non-
plan
Cultural
Affairs
500.81 321.15 610.00 508.60 610.00 533.40 1152.1
8
757.10
Tourism 4722.2
6
242.58 6251.2
0
1468.4
0
6251.2
0
1502.60 6251.2
0
1525.11
Archeology
&
Museums
178.19 442.22 250.00 509.91 250.00 570.66 1250.0
0
620.35
Total 5401.2
6
1005.9
5
7111.2
0
2486.9
1
7111.2
0
2606.66 8653.3
8
2902.56
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TOURISM
1. 1.Andhra Pradesh, the largest of the southern states enjoys a long coastline of 1250
kms and is culturally rich. Andhra Pradesh offers a variety of unforgettable
experiences to the tourists from a million year old underground caves to modern
tourist infrastructure and amenities.
2. tourism is identified as a growth engine and given industry status for employment
generation and income generation in rural sector. The state government announced
its tourism policy first in 1994 which was modified later in 1998. private
investment in tourism infrastructure development was encouraged.
3. the government has taken steps for promotion of tourism by providing
accommodation. Catering. Transport and recreational facilities at various tourist
places. Greater emphasis is given for rural community based, family based, pilgrim.
Adventure, ecotourism, leisure tourism, and now on cruise tourism, charters and
circular train. There is good responds from private sector for private sectors for
investment in tourism related activities like beach resorts water sports theme parks.
Amusement parks, Trekking, golf, convention centers etc.
4. to achieve the aims and goals of government in tourism sector, a separate tourism
department was formed in May 1974 and Andhra Pradesh Tourism Development
Corporation in 1976 to develop the tourism in the state by providing adequate
infrastructure to maintain an sustain growth in the sector. Project Monitoring Unit
(PMU) was created in youth advancement, tourism and culture department, A.P
secretariat. To carry out the day to day coordination of the major projects and
district projects under Tourism sector, in view of enlarged and accelerated program
77
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of action visualized by the government. The chief of project monitoring unit is the
secretary to government, YAT & C department with othe r officials.
5. Government of A.P is giving priority for rural and district tourism activities for
development of tourism infrastructure by funding district projects and acting as a
facilitator by encouraging private participation. An amount of Rs.16.40 Cr was
released to District Collectors fro executing 82 district tourism projects.
6. Similarly , various initiatives are also taken up in promotion of Andhra Pradesh
Tourism through print and media. Partnerships with tour operators and travel
agents, tieups with health tourism partners and other service besides creating
employment for youth in tourism.
7. simultaneously tie-ups with southern states for promotion of south India as a
Tourism destination are also initiated through south India Tourism council
(SITCON) . Under SITCON , A.P Tourism is planning to conduct ‘dakshin utsav in
Delhi to promote south India Tourism and also planning to come up with a circular
train connection all the southern states.
8. CURRENT FOCUS:
a. Family oriented tourism activities will be encouraged
b. Heritage and pilgrim tourism income generating community based tourism
activities in rural sector will receive focus.
c. Needs of the domestic tourists such as wayside amenities. Weekend escapes
health tourism and provision of budget accommodation etc will be given
special focus and
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d. Promotion of handcrafts and handlooms of Andhra Pradesh as tourism
souvenirs will be encourage.
9. The directorate of tourism AP TDC ltd and youth advancement. Tourism and
culture department are implementing the government schemes.
10. out of the plan provision of Rs 5251.20 lakhs the following schemes are proposed
for execution during 2004-2005 through director of tourism A.P Tourism
Development Corporation Limited and youth Advancement Tourism & culture
department
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4.NOTE ON DEMAND FOR GRANTS
DEMAND No.XXXVII TOURISM , ART & CULTURE
FOR THE FINANCIAL YEAR 2008-2009
Plan: Rs 9653.38 lakhs
Non plan: Rs 2999.27 lakhs
Hon’ble speaker sir,
I beg to move that the government be granted a sum not exceeding R126,52,65,000
under grant demand No.XXXVII tourism art and culture for the financial year 2007-08 in
respect of tourism archaeology and museums and culture department towards plan
expenditure of Rs9,653.38 lakhs and non plan Rs 2,999.27 lakhs. The details of budget
provisions made during the previous two years and this year are given hereunder:-
Head of
Account
Accounts
2006-2007
Budget Estimate
2007-2008
Revised Estimate
2007-2008
Budget Estimate
2008-2009
plan Non-
Plan
Plan Non-
Plan
Plan Non-
plan
plan Non-
plan
Cultural
Affairs
669.87 515.2
2
1152.1
8
757.10 1152.1
8
702.87 1152.1
8
758.99
Tourism 4385.5
3
224.6
8
6251.2
0
1525.1
1
6251.2
0
1520.48 6251.2
0
1551.96
Archeology
&
Museums
162.10 505.5
9
150.00 620.35 1250.0
0
619.57 2250.0
0
688.32
Total 5217.5
0
145.4
9
8653.3
8
2902.5
6
8653.3
8
2842.92 9653.3
8
2999.27
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CHAPTER 8
BIBILOGRAPHY
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BIBILOGRAPHY
1. MANAGEMENT ACCOUNTING BY HORNGRENN
2. COST ACCOUNTING BY SHARMA AND NIGAM3. WWW.WIKIPEA.COM
4. WWW.GOOGLE.COM
5. WWW.IGNOU.COM