MY REPORT -=-=

A

PROJECT REPORT

ON

Monthly Budgeted & Actual review (Plan)

AT

Submitted in partial fulfillment for the

Award of degree of Master of Business Administration

SUBMITTED BY: SUBMITTED TO:

Ms. Pooja Gurjar Ms. Uttara Goswami

(MBA III Sem.)

1

PREFACE

I had undergone a practical training under “Dainik Bhaskar”. It was a good

exposure for me to undergo training in such a company to get the knowledge

and experience regarding Financial Budgets.

Summer training is one of the major experiencing components of the

knowledge, gain of relevant of information for dealing with situations in a

professional course like M.B.A. where a professional person faces a problem in

a field.

To analyze the Dainik Bhaskar Monthly Review Report on Which basis I can

make my Own JUNE month Projected Budget of Dainik Bhaskar With effective

Profit Planning & Cost Cutting.

Hence my study will highlight the Important Area of Costs where company can

really have to look upon.

This project really helped me to analyze the financial tools very closely.

“It is good to have enthusiasm but it is essential to have training. Training can

be in all way of life.” Thus I would say that this training was beneficial

educative & good exposure to me, which will certainly help in my near future.

This project was designed with respect to this company. The project made me

to get the enhanced knowledge regarding Financial Budgets.

2

Acknowledgement

I express my sincere thanks to my project guide, Mr. Pradeep Soni Designation General

Manager, Department Finance , for guiding me right form the inception till the successful

completion of the project. I sincerely acknowledge him/her/them for extending their

valuable guidance, support for literature, critical reviews of project and the report and

above all the moral support he/she/they had provided to me with all stages of this project.

I would also like to thank the supporting staff of DAINIK BHASKAR Department, for their

help and cooperation throughout our project.

(Signature of Student)

3

EXECUTIVE SUMMARY

The newspaper is the most popular media in the print category. Today reading

newspaper is a habitual activity for educated people all over the world.

A booming Indian economy literate population on the rise, increasing consumerism, entry

of global brands in the country and opening of the sector to foreign investors would drive

the growth in print media. Also, with newspaper companies entering into newer regions

and segments would lead to stronger growth. Newspaper in India can benefit a lot from

an exchange of ideas within the industry and be learning from other industries as well.

Newspapers are valuable and they can be sustained by making them good brands.

Building the brand value of a newspaper is really important for circulation, audiences and

advertising revenues. In any organization Finance and Accounts department work as

backbone of the organization. As we already know importance of newspaper, I decided to

understand the Financial and Accounting work of the newspaper company. Then we

undergo training in Dainik Bhaskar. I learn here, how Financial and Accounting work is

done. The Finance work in Dainik Bhaskar is based on Budget. A budget is a detailed

plan of operations for some specific future period. It is an estimate prepared in advance of

the period to which it applies.

In Dainik Bhaskar I learn how budget of month for all expenses are made and how actual

expenses incurred is also derived, they also taught us how variance between budget and

actual are calculated and how corrective measure is taken to minimum the variance, if

any.

Budget acts as a business barometer as it is a complete programmed of activities of the

business for the period covered.

4

CONTENTS

PART I

INTRODUCTION TO INDUSTRY 7

Industry Scenario

8

Overview of Newspaper Industry

9

PART II

COMPANY PROFILE 12

Bhaskar Group

14

A Brief History & Success Story

17

Dainik Bhaskar – Jaipur Position

19

Dainik Bhaskar – Its Features

20

Organization Structure

PART III 23

METHODOLOGY 24

5

SAP

25

ERP

26

Implementation of SAP in Organization

29

BUDGET

32

Budgeting

Calculation of Individual Heads

PART V 66

FACTS & FINDINGS

67

Graphical Presentations

PART VI

CONCLUSIONS

72

6

SUGGESTION & RECOMMENDATION

73

BIBLIOGRAPHY

74

INTODUCTION TO INDUSTRY

Industry Scenario


7

INDUSTRY SCENARIO

A Brief History of Newspapers:- The newspaper as we know it today is a

product borne of necessity, invention, the middle class, democracy, free enterprise, and

professional standards.

Pre-history "newspapers" were one-to-one in nature. The earliest variation on a

newspaper was a daily sheet published in 59 BC in Rome called Acta Diurna (Daily

Events), which Julius Caesar ordered posted throughout the city. The earliest known

printed newspaper was in Beijing in 748.

The 1700s was a century in which market elements were created that encouraged the

development of daily newspapers: rising literacy, the formation of nation-states, a

developing postal system, the proliferation of urban centers, a rising literary and

philosophical tradition emphasizing democratic involvement in government, and

technologies that supported newspaper production. In short, it was a great news century.

The first daily newspaper was The Daily Courant in London, 1702. In 1754, The Daily

Advertiser in London uses the first four-column format. France's first daily newspaper

appears in 1777, Journal de Paris, while the first United States daily was the

Pennsylvania Packet in 1784. In 1878 the first full-page newspaper advertisements

appear, and in 1880 the first photographs are seen in newspapers, using halftones.

8

By 2000, newspapers were juggling priorities: fragmentation of news consumption,

fragmentation of advertising investments, the advantages and disadvantages of being a

mass medium, balancing the wants of the marketplace with the company's duty to provide

the needs of the marketplace, a journalistic backlash against industry changes, the sheer

physicality of ink-on-paper production and distribution versus digital distribution,

increasing profit pressure surrounding the core print product, and extension of the

company's core brand into other profit centers.


The newspaper is the most popular media in the print category. The newspaper as we

know it today is product born of necessity invention the middle class, democracy, free

enterprise & professional standards.

Today reading newspaper is a habitual activity for educated people all over the world

because of the following reasons:-

1. Information- One major purpose of newspaper is to provide information about

current events. On issue of social, political, cultural and technological importance through

news, articles & advertisement.

2. Education- Another important purpose is to increase the educational level of the

people by providing information regarding medicine, agriculture, history, economics

geography, politics & various other such dimensions.

3. Aims- A Newspaper also aims at protecting the rights of people and creating

awareness among people about their duties and rights. It guards the people interest.

9

4. Providing Discussion Forum- Yet another aim of newspaper is to provide a

forum for public debate & discussion on matters of general interest.

5. Entertainment- A newspaper also aims at entertaining people through cartons,

puzzles, comedy & other feature pieces.

The newspaper is a unique as it is unlike any other commodity whose life is just like for

few hours. It has to be replenished in every 34 hrs.There are two type of consumers of

newspaper; one the reader who are actually consumers or use the final product for their

intellectual, emotional, cultural and informational needs. The other are advertisers who

use space in the pages of newspapers to make announcement, issue public notice, etc.

Today newspaper industry is facing a major threat from broadcast media (TV, radio etc.).

Various channels are introduced where one can receive the news of any happening

instantly and at any moment, and it is also highly preferred medium of advertisement

because of its audio visual qualities. Thus press naturally felt the measure of competition.

The newspaper industry reacted very positively to this situation through better printing

technology and started publishing colored pages. Thus the get-ups and visuals appeal

improved considerably.

They also bring out several local editions, offering more focused target audience &

consequent cost advantages to advertisement. This changing profile of the newspaper

considerably helped the medium in facing the competition emerging from the T.V.

10

COMPANY PROFILE

Bhaskar Group


Dainik Bhaskar – Jaipur Position

Dainik Bhaskar – Its Features

Organization Structure

11

COMPANY PROFILE

VISION MEETS MISSION:-

Bhaskar Dream- “Bhaskar Group has a dream to create a niche for itself in the

international media scenario.”

Bhaskar Group has its roots in India but its action and thoughts are of the world standard.

The groups study the best in the world and implement them as per its local requirement,

which would enable it to emerge as strong media group in the future. Its efforts in this

direction will not be limited to the newspaper alone, It would march ahead with the times

and would reach where its consumer are.

Its group actions and thoughts are based on the following principles:-

1. Entrepreneurship

2. Innovation

3. Ambition

12

4. Professionalism

Background:

The Rs. 4400 crores Bhaskar Group is a leading news services group in India with a

strong presence in the Media Industry, Entertainment, Printing, Textiles, Fast moving

consumer good, oils, Solvent and Internet Services.

Its Media business includes ownership of Print Media, Radio Stations and TV Channels.

The group is the largest read newspaper group of India with a total readership of 2.67 crores, as per

NRS 2006. Its flagship Hindi daily newspaper, Dainik Bhaskar, and the Gujarati newspaper, Divya

Bhaskar collectively make it the largest read daily newspapers. MY FM has already launched In

Jaipur, Chandigarh and Jalandhar and will soon be available in a total of 17 cities , it would be the

4th largest FM station network of the Country. DNA launched jointly with the Zee Group has

already achieved the distinction of being Mumbai’s Second largest English daily.

DAINIK BHASKAR is a big name in the print media. Bhaskar Group has a dream to create a

niche for itself in the international media scenario.

It efforts in this direction marching ahead with the times and reaching where its consumer are.

Bhaskar Group

A 4400 crore media house with 10000 manpower strengths & 160 offices all over India

has 6 daily newspaper, 2 stand-alone weeklies & 1 magazine in 10 states of the country.

Bhaskar is the largest read newspaper group containing 28% potential of India with

Bhaskar markets. The company board consists of:-

Chairman - Ramesh Chandra Agarwal

Managing Director - Sudhir Agarwal

Directors - Girish Agarwal & Pawan Agarwal

Daily Newspapers (Broadsheets):-

13

Dainik Bhaskar

Divya Bhaskar

Saurashatra Samachar

Prabhat Kiran

DNA & DNA Money.

Weeklies (Tobloid):-

New York and Indore Editions.

Magazines:-

Monthly- Aha! Zindgi!- Hindi&Gujarati& Lakshya (New Magazine)

Bi- Monthly- Young Bhaskar, Bal Bhaskar

T.V.:-

BTV

Activations:-

DB Aktivations

Radio:-

Synergy Media Entertainment Ltd (FM Radio) is a wholly owned company of the Bhaskar

Group has acquired FM Radio Licenses in 7 states, 17 cities.

14

The stations are operational in

Madhya Pradesh: Indore, Bhopal, Gwalior, Jabalpur.

Chhattisgarh: Raipur, Bilaspur.

Rajasthan: Jaipur, Jodhpur,Udaipur, Kota, Ajmer.

Gujarat: Ahmedabad, Surat.

Punjab: Jalandhar, Amristsar, Chandigarh.

Maharashtra: Nagpur.

The Brand is now “94.3 MY FM jiyo dil se”

The group uses latest ERP Solution application Product (SAP) to integrate all

departments in every edition of newspaper. All centers are interconnected through leased

lines and Centrex facility.

Diversification:-

Beside print media, the group has diversified into:

Textiles

Oil Extraction & Refining

FMGC

Cable TV

Broadband

Family Entertainment

Art & Culture

Event

Promotion & Real Estate

Shopping Mall.

In order to raise equity for further expansion, the group is planning to list on the stock

exchange and is going for an IPO very soon.

15


Dainik Bhaskar:

The fastest growing print media in the country today began its journey with a four page

newspaper from Bhopal [MP] in 1958 as one of the business by the late Dwarka Parasad

Agarwal, the father of the Chairman, Shri Ramesh Chandra Agarwal. Ever since, Dainik

Bhaskar launched. Its editions one after the other in MP Gwalior in 1967, Indore in 1983,

Jabalapur in 1987.

Further, it launched its edition from Raipur in 1992 followed by Bilaspur in 1993. This was

the time when Rameshji officially inducted Shri Sudhir Agarwal and his younger brother

Shri Girish Agarwal in the business. Shri Sudhir Agarwal had a passion for editorial & Shri

Girish Agarwal preferred to take part into core marketing.

After achieved No. 1 status and strong leadership in 1995 in MP, the group identified

RAJASTHAN as a potential market in Dec. 1996, launched its Jaipur edition with net paid

16

sale of 1,72,933 copies on day 1. JAIPUR launch of Dainik Bhaskar created a history in

the Newspaper industry, which is now a “case study” In the top business school of India.

Since 1996 father & sons began transforming the group into a customer centre

organization. Keeping this in mind, Dainik Bhaskar launched its Chandigarh edition in

mid 2000 adapting Hinglish language pattern in editorial contents. Today it is the No.1

newspaper in Chandigarh, Panchkula & Mohali. In the same year Bhaskar entered

Haryana & Captured the spillover market by launching its edition in Panipat & Hissar

Followed by Faridabad edition.

After achieving the leadership position in Hindi belts, the group entered into the state of

Gujarat a non Hindi Market, where local player were formidable. The group launched its

Gujarat, newspaper, Divya Bhaskar in Ahmedabad in June 2003 is a ‘Case study with IIM

AHMEDABAD for its first day net paid sale of 4, 52,000 lakh copies.

After setting many new trends in Hindi & Gujarati market, Bhaskar group in association

with Zee, launched Its English newspaper DNA [Daily News & Analysis] in July 2005 with

a circulation of 3 lakhs + copies Per day.

In September 2004, the group had also launched a monthly complete Hindi magazine

‘Aha Zindigi’ for Positive and good life. Today the magazine enjoys circulation of 1.35

lakh copies with 5.95 lakh readers.

Recently on 7th June, 2008 the group successfully launched DNA JAIPUR edition. And

on 6th June the group celebrated 3 years completion of its Daily supplement CITY

BHASKAR.

As of today Bhaskar group is a 4400 crore company.As of today Bhaskar group is a 4400 crore company.

17

DAINIK BHASKAR - JAIPUR POSITION

Dainik Bhaskar was launched on 19th Dec. 1996 in Jaipur. Its market share in Jaipur is

60%. Its price in Jaipur City is Rs. 2.25 containing 24 pages and price outside Jaipur is

Rs. 2.00 containing 16 pages.

Its main competitior in Jaipur is Rajasthan Patrika. Jaipur office of Dainik Bhaskar has

some separate units like “My F.M.”, BTV and “Aha Zindagi”. It has state of art technology

for printing purpose, and Dainik Bhaskar at Jaipur is headed by Mr. Pawan Agarwal.

Before launch of Dainik Bhaskar a survey is conducted to find the taste & performance of

the customers. Its design is based on requirements of customers. Its initial customers in

Jaipur were 80,000.

It adopted many strategies before and after its launch. It run many promotional

campaigns with the help of hoardings at prime locations like theatre, temples, flyovers,

malls and also conducted road shows. It used manpower banners at different locations.

It has support of Bhaskar T.V.

It distributed gifts, discounts & gave many scheme like subscription, free calendar etc. It

also used posters for publicity. It run a 45 day campaign to increase the circulation in

which they conducted many events, games, road shows etc. which made its circulation

doubled of Rajasthan Patrika.

18

DAINIK BHASKAR - Its Features

Address :

Registered Office & Factory work –

11, Opposite Vidya Ashram School,

J.L.N. Marg, Malviya Nagar,

Jaipur – Rajasthan.

Major Suppliers:

M/s Rama Newspaper

Nepa Mills

Hindustan Ink

Newsprint material is purchased from Delhi & Mumbai. Foreign Newsprint material comes

from Mumbai, Surat & Nepanagar.

Major Buyers :

Major buyers of the newspaper are the Jaipurites.

Major Competitors:

Rajasthan has been a state which continued to be an exclusive domain of a particular

newspaper. “Rajasthan Patrika” for the past 50 years. Attempts even by giants like “The

Times of India” to make a dent in this territory proved futile as it failed take off.

Market Share:

19

In a recent survey conducted it was found that 8 out of 10 readers subscribe to

DAINIK BHASKAR.

Product Profile :

The product is a Hindi Daily. The news is quality oriented and the coverage is wide

enough to cover almost every aspect. Dainik Bhaskar was the first newspaper to come

up with the concept of colored front Hindi Daily.

Supplements & Magazines :

City Bhaskar & Women Bhaskar:

It is daily supplement with 6 numbers of pages with the main newspaper. It

was launched in June 2005.

Navrang & Madhurima:

Both are the weekly supplements which Dainik Bhaskar issue every Saturday &

Wednesday. Navrang consists of 4 pages & Madhurima is of 8 pages.

Rasrang:

It’s a Sunday supplement. It contains the mix news for every customer.

It is of 4 pages.

SHE Magazine:

It was launched on 8th June 2008 all over India. It is printed at Noida & its matter is from

Bhopal. It is magazine targeted towards women customer with 40 No. of pages pricing

Rs.5

Aha Zindagi :

In September 2004, the group launched a monthly complete Hindi Magazine

Aha Zindigi for positive & good life. The print office is in Noida. It is of 84 pages & priced

Rs.25.

20

Lakshy:

It is a career magazine targeting to students mainly. It is monthly magazine of 68

pages pricing Rs. 10 only.

DNA:

After setting many new trends in Hindi & Gujarati market, Bhaskar group in

association with Zee, launched its English newspaper DNA [Daily News Analysis] in July

2005.

Distribution Channel :

They have ten channels for distribution, 30% to 40% share are given to distributors.

Company has its own Taxies for transportation. It has its sales depot. The company has

its agents all over Rajasthan.

Source of revenue :

Main source of revenue is through advertisements.

Different agencies for advertisements:

1. Shakun Ad agency

2. Accurate Advertisement Consultancy

3. Pink City Advertisement Co.

DIFFERENT AGENCIES FOR NEWS :

1. PTI

2. UNI

21

Departmentalization :

The job functions of the employees in the organization are divided among them &

combined in a logical ways. Employees with related functions usually share a common

work area and constitute a work unit.

Departments are therefore constituted as:

Editorial Department

Advertising Department

Printing & Processing Department

H R & Admin Department

SMD Department

F & A Department

ORGANIZATIONAL STRUCTURE

Dainik Bhaskar has ten units in Rajasthan. Namely Jaipur, Sikar, Alwar, Jodhpur,

Udaipur, Kota, Ajmer, Bhilwara, Bikaner, Sriganganagar. It has six vertical departments.

Reporting is done in two ways first is Administrating reporting to unit heads & second is

functional reporting. So it has mainly functional type of structure. The structure is like

this:-

22

Dainik Bhaskar(Jaipur-State Office)

Management

Editorial

H.R. & Administration Production

Ad. & Sales Finance & Accounts

SMD

METHODOLOGY

SAP

ERP

23

METHODOLOGY

The methodology adopted in Dainik Bhaskar is SAP.

What is SAP?

SAP R/3 is popular ERP software from the German-based company SAP AG.

The acronym of SAP stands for “Systems, Applications & Products in data processing”

R/3 is a Client-Server three-tiered Architecture Base, which is introduced in 1992.

The R/3 System’s three-tiered client/server architecture separates the system into areas

devoted to database, application functionality, and desktop presentation.

About ERP:

“In the era of stiff competition, demanding customers and shrinking margins, it is

important for a brand to acquire and retain the best.”

Being the leading media house, we ensure correct information exchange at every stage

and every level in its day- to-day execution.

What is ERP?

24

http://10.1.19.151/saptoolbox/aspx/AboutERP.aspx#ERP

Role of Integration in ERP

ERP Improves Productivity

Implementation of an ERP System

What is ERP ?

ERP stands for Enterprise Resource Planning.

“It is process-oriented information system for identifying and planning the enterprise wide

resources needed to take, make, ship and account for customer orders.”

Enterprise Resource Planning (ERP) systems attempt to integrate several data sources

and processes of an organization into a unified system. A typical ERP system will use

multiple components of computer software and hardware to achieve the integration. A key

ingredient of most ERP systems is the use of a unified database to store data for the

various system modules.

ERP is package software solution that addresses the enterprise needs of an organization

by tightly integrating the various functions of an organization using a process view of the

organization. It is package software and not custom made software for a specific firm. It

understands the needs of any organization within a specific industry segment. Many of

the processes implemented in an ERP software are core processes such as order

processing, order fulfillment, shipping, invoicing, BOM processing, purchase order

processing, preparation of Balance Sheet, Profit and Loss statement etc., that are

common to all industry segments. That is the reason why the package software solution

25

http://10.1.19.151/saptoolbox/aspx/AboutERP.aspx#Implementation

http://10.1.19.151/saptoolbox/aspx/AboutERP.aspx#Productivity

http://10.1.19.151/saptoolbox/aspx/AboutERP.aspx#Role

works so well. The firm specific needs are met through a process of customization. ERP

addresses not merely the needs of a single function such as finance, marketing,

production or HR. Rather it addresses the entire needs of an enterprise that cuts across

these functions to meaningfully execute any of the core processes.

ERP integrates the functional modules tightly. It is not merely the import and export of

data across the functional modules. The integration ensures that the logic of a process

that cuts across the function is captured genuinely. This in turn implies that data once

entered in any of the functional modules (whichever of the module owns the data) is

made available to every other module that needs this data. This leads to significant

improvements by way of improved consistency and integrity of data. ERP users the

process view of the organization in the place of function view which dominated the

enterprise software before the advent of ERP. The process view provides a much better

insight into the organizational systems and procedures and also breaks the "kingdoms"

that work at cross-purposes in many organizations. To implement such a demanding

software one needs high performance computing, high availability systems, large, high

speed high availability on line storage and high speed, high reliable net works, all at

affordable cost. Though many ERP software vendors have been around for more than

two decades, ERP software started to make major inroads into the corporate world only in

the last couple of years. Interestingly Indian corporate houses are taking the ERP route

exceptionally fast, even by world standards in the past two years.

Thus, it is an industry term for integrated, multi-module application software packages

that are designed to serve and support multiple business functions. It attempts to

integrate all departments and functions across a company to create a single software

program that runs on one database. ERP modules may be able to interface with an

organization’s own software with varying degrees of effort, and depending on the

software ERP modules may be alterable via the vendor’s proprietary tools as well as

proprietary or standard programming languages.

Advantages of SAP Implementation:

1. The R/3 System will bring a common platform that covers all commercial

processes and transactions commonly occurring in a company or group of companies so

that every people can speak one language.

2. Better-informed environment

26

3. Integrate and optimize business processes.

4. It will avoid the interaction among the people, which might leave chaos or

misunderstanding.

5. Management can have each information at their fingertips. SAP System

provides up-to-the-minute, real-time information wherever and whenever you need it

6. Increase productivity at desired level

7. Optimum and effective utilization of available resources to respond market

need

8. To reduce the throughput cycle (Gap between demand and supply)

9. Well-controlled and balanced financial management

10. Single source for your financial information

11. Capturing your business transactions in one location allows you to easily

review inventory, customer and vendor activity

12. On the technical side, a solution on a single platform will enable easier

maintenance and support, reducing costs.

13. Having a consolidated system means fewer interfaces to support

14. By having a single system of record your human resources will become familiar

with terminology associated with this data and the standard processes.

15. This may improve communication and create a work force that is easier to

transfer between roles

16. Improve alignment of strategies and operations by running the enterprise in

accordance with strategy and plans, accessing the right information in real time to identify

concerns early.

17. Improve productivity and insight

18. Find the best people and leverage their talent in the right job at the right time.

19. Achieve corporate objectives by aligning workforce and organizational

objectives.

20. Leverage self-services and analytics across your organization.

21. Improve operational efficiency and productivity within and beyond your

enterprise.

22. Give employees new ways to access the enterprise information required for

their daily activities.

27

Implementaion of SAP in the Organization

ORGANIZATION STRUCTURE :

The organization structure for controlling is “DBCA”.

Controlling area is related to costing and MIS reporting.

All Company codes are assigned to only controlling area i.e. “DBCA”.

1.1 Cost center :

Cost center is an organization unit, which captures actual and planned (Budgeted) costs.

In DBCA we have defined cost centers on the basis of center and products.

Example: Bhopal Dainik Bhaskar Production

Bhopal Dainik Bhaskar Editorial

Jaipur Dainik Bhaskar Production

Jaipur Dainik Bhaskar Marketing Etc.

2.1 Internal Order :

Internal order is also an organization unit which captures actual & planned cost. Internal

order capture can capture sales revenue also where as cost center can capture only

Cost.

3.1 Profit Center :

Profit Center is also an organizational unit, which displays Revenue, Cost & Profit.

In PCA, we can have certain balance sheet values also.

In DBCA we have defined profit center based on Center & Product.

Example:Bhopal Dainik Bhaskar

Bhopal City Bhaskar

Jaipur Dainik Bhaskar

Jaipur City Bhaskar

Bhopal Aha Zindgi

28

Jaipur Madhurima, likewise.

Cost centers and profit centers are codified so that the digits indicates center and product

for example

P100100 P=Profit Center first 3 digits that is 100 indicates Bhopal Center, next 100

indicates Dainik Bhaskar(Product)

P200100 p=Profit Center first 3 digits that is 200 indicates Jaipur Center, next 100

indicates Dainik Bhaskar (Product)

All profit center codes will begin with ‘P’ and all cost center values will begin with ‘C ‘

All the above objects are grouped to facilitate MIS reporting.

1.1.02 Cost Center Reporting :

In cost center reporting we have actual plan variance reports for a cost center & group of

cost centers.

The report can be had both for the month & YTD basis.

The menu path & Transaction codes as follows:

Menu Path: Sap Easy > Information System > Controlling > Report for Cost Center

Accounting > Plan/Actual > S_ALR_87013611

29

30

BUDGET

Budgeting

Important Heads comes under Monthly & Annual Report

of Dainik Bhaskar


31

BUDGET

A budget is defined as a “comprehensive and coordinated plan, expressed in financial

terms, for the operations and resources of an enterprise for some specified period in the

future”.

A budget is a money plan. With it, you can organize and control your financial resources,

set and realize goals, and decide in advance how your money will work for you. A budget

can be as simple as it is powerful.

The basic idea behind budgeting is to save money up front for both known and unknown

expenses.

Budgeting:

“Budgeting or profit planning is a detailed plan of action during a period of one year, one-

month or less.”

Introduction:

Profit plan (Or Budget) is a short term financial plan. It is an action plan to guide

managers in achieving the objective of the firm.

Thus a profit plan is a comprehensive and co-ordinate plan, expressed in financial terms,

for the operations and resources of an enterprise for some specific period in the future.

Objective of Profit Planning:

1. To state the firms expectations (Goals) in clear and formal terms to avoid

confusion and to facilitate their attainability.

2. To communicate Expectation to all concerned with the Management of the firm

so that they are understood, supported and implemented.

3. To provide a detailed plan of action for reducing uncertainty and for the proper

direction of individual and group efforts to achieve goals.

32

Types of Budgets:

1. Operating Budgets

2. Financial Budgets

3. Special Decision Budgets

4. Fixed / Static Budgets

5. Flexible / Variable / Sliding Budgets

Elements:

1. It is comprehensive and co-ordinate plan.

2. It is expressed in financial terms.

3. It is a plan for the firms operation & resources.

4. It is a future plan for a specific period.

Seven Benefits of Budgeting

Know What is Going On: Personal budgeting allows you to know exactly how much

money you have. Furthermore, a budget is a self-education tool that shows you how your

funds are allocated, how they are working for you, what your plans are for them, and how

far along you are toward reaching your goals. "Knowledge is power," as the oft-quoted

saying of George Eliot goes, and knowing about your money is the first step toward

controlling it. That leads us to our next benefit.

Control: A budget is the key to enabling you to take charge of your finances. With a

budget, you have the tools to decide exactly what is going to happen to your hard-earned

money—and when. You can be in control of your money, instead of having your money

limit what you do. This bears repeating: you can be in control of your money, instead of

letting it control you.

33

Organization: Even in its simplest form, a budget divides funds into categories of

expenditures and savings. Beyond that, however, budgets can provide further

organization by automatically providing records of all your monetary transactions. They

can also provide the foundation for a simple filing system to organize bills, receipts, and

financial statements.

Communication: If you are married, have a family, or share money with anyone,

having a budget that you both (or all) create together is a key to resolving personal

differences about money handling. The budget is a communication tool to discuss the

priorities for where your money should be spent, as well as enabling all involved parties to

"run" the system.

Take Advantage of Opportunities: Knowing the exact state of your personal

monetary affairs, and being in control of them, allows you to take advantage of

opportunities that you might otherwise miss. Have you ever wondered if you could afford

something? With a budget, you will never have to wonder again—you will know.

Extra Time: All your financial transactions are automatically organized for tax time, for

creditor questions, in fact, for any query which may come up regarding how and when

you spent money. Being armed with such information sure saves time digging through old

records.

Extra Money: This might well be everyone's favorite benefit. A budget will almost

certainly produce extra money for you to do with as you wish. Hidden fees and lost

interest paid to outsiders can be eliminated forever. Unnecessary expenditures, once

identified, can be stripped out. Savings, even small ones, can be accumulated and made

to work for you.

34

BOOKS OF ACCOUNTS IN GENERAL

COMPANY’S Accounting policies are framed to ensure control in the main activities like:-

News print Purchase & Consumption

Circulation

Production & waste control

Job Work

Advertisement

Events/ DB AKTIVATION

Operating Expenditure

Capital Expenditure

Financing

35

BOOKS OF ACCOUNTS GENERAL

IN ORGAINZATION

Books are maintained at various centers.

Activities which are related to Advertisement are controlled by SAP. From

August onwards all accounts will be controlled by SAP (Finance, marketing, H.R. or I.T.)

Monthly Circulation is controlled by SAP.

Consolidated entries on monthly are made in financial books in respect of

circulation & advertisement.

Others transaction are recorded directed in tally.

Balance sheet is prepared for each main center on monthly basis.

Analysis is made on each activity level.

Analysis is made at product level also.

Consolidation is made at regional level & H.O. level.

TYPES OF DOCUMENTS MAINTAINED

JOURNAL ( Debit note/ Credit note )

CONTRA

CASH (Receipt & Payment)

BANK (Receipt & Payment)

Purchase

SALE

36

COMPANY POLICIES AGAINST INVENTORY MANAGEMENT

We follow FIFO method for issue of Newsprint reels.

Ageing analysis is done as 0-15, 15-30 days, 30-60 days, 60-90 days, and 90-

180 days and above.

We keep material quality wise separately i.e. Imported SNP, Imported GNP,

Rama Type, Indian A Type, Indian B Type and others (LWC, Art papers, ABC Gold, etc..)

We keep damaged material and material rejected, by production manager

separately centers informed to the H.O. and material will be disposed as per the norms of

the company.

We take fire floater insurance policy for fire, earthquake flood etc. we file

monthly declarations to insurance company and revise our policy from time to time to

maintain the coverage of Godown stocks.

We take daily stock position and daily consumption report from all publishing

centers and supplements printing centers.

We maintain group coverage Indian newsprint stock level for 10 days

depending upon the distance from centers from the mill, stock level of centers may vary

make wise.

Daily stock report copy is sent to H.O. Bhopal for groups compel- nation

planning.

Process of Newsprint Wastage Material

News print wastage is generated at the time of issue newsprint, during

production process.

There are four types of wastage, i.e. print wastage layer, core (bhongla),

and scrap.

News print in charge, receives wastage from production department and

rewinding room on daily basis

37

Important Heads comes under Monthly & Annual

Report of Dainik Bhaskar

OPERATING EXPENSES

A. PRODUCTION EXPENSES

1. PRODUCTION MATERIALS

1.1 Ink Consumed

1.2 Plate consumed

1.3 LPF consumed

1.4 Tracing paper consumed

1.5 Fountain Solution

1.6 Other prod. Material

1.7 Packing Material Cons.: Polythenes

1.8 Packing Material Cons.: Others

1.9 Printer Toners cons. - prod.

2 OTHER PRODUCTION MATERIAL

2.1 Electricity Consumption

2.2 D.G. Fuel

3 MACHINE MAINTENANCE

3.1 D.G. Maintenance

3.2 Multi Wash / Nova Wash

3.3 Dhotis

3.4 Blankets

3.5 Rubber Roller Maintenance

38

3.6 Repair & Maintenance P. & M.

3.7 A.M.C. - Plant & machinery

3.8 Repair & Maintenance - Electric

4 LOADING UNLOADING & FREIGHT

5 BINDING CHARGES

B. NEWS EXPENSES

1. AGENCY PAYMENTS

1.1 PTI

2. NEWS EXPENSES

2.1 Payments for Photographs

2.2 Payments to Stringers / Correspondents

C. PERSONNEL COST

1. SALARY (REF.) Salary Budget

1.1 Gross Salary

1.2 EPF (Employee Providend Fund)

1.3 ESI

1.4 Mobile Expenses (Fix & Actual Basis)

1.5 Vehicle Fuel Maintenance & Insurance

39

1.6 Annual Benefits

1.7 Bonus / Ex-Gratia (Diwali)

1.8 Overtime Payment

2 STAFF WELFARE EXPENSES

2.1 Canteen & Pantry Expenses

2.2 Medical Expenses (Other than Mediclaim)

2.3 Mediclaim Policy’s Premium

2.4 Pooja Expenses

2.5 Marriage Gift

3. OTHER SALARY PAYMENTS

Gratuity

Leave Encashment

D. OFFICE & ADMINISTRATION EXPENSES

1.1 Main Office/ Press Rent

1.2 Godown Rent

1.3 Postage & Courier

1.4 Telephone: Landline

1.5 Internet Expenses

1.6 Printing & Stationary

1.7 Photocopy Expenses

1.8 Traveling Expenses

40

1.9 Conveyance Other than salary

1.10 Guest House Expenses

1.11 Security Expenses

1.12 House keeping Expenses

1.13 Gardening Expenses

1.14 Water Expenses

1.15 Repair & Maintenance (Building)

1.16 Repairs & Maintenance Office Equipment & Others

1.17 Repairs & Maintenance–Computer & UPS

1.18 Annual Maint. Contracts (AMC) –Computer & UPS

1.19 Legal & Professional Fees

1.20 Legal & Professional Expenses

E. S.M.D. EXPENSES

1.1 Circulation Jeep Expenses

1.2 Rent of Circulation Centers

F. BUSINESS PROMOTION EXPENSES

1 Barter Expense

G. CITY & BUREAU EXPENSES

H. OTHER EXPENSES

1.1 Internal Audit Fees

41

1.2 Statutory Audit Fees


A. PRODUCTION EXPENSES

1. PRODUCTION MATERIAL:

1.1 Ink- Ink is an important part of print media. The Coloured and Black & White

pages we saw in newspaper are result of ink. Ink provides colour to pages and also the

news is printed with the help of ink. The requirement of ink in printing depends upon the

following things:-

1. Print Order (P.O.)

2. Pagination (No. of Pages)

3. Days

4. Ink Mileage

There are four types of ink used in print media, these are:-

Black

Magenta

Cyan

Yellow

These four types of ink are used to from multi colours in newspaper quantity of ink used

are calculated with the help of following formulae:-

42

General Calculation:

Ink Consumed = Total Number of Pages / Mileage * Rate of Ink

Black Ink = Total Number of Pages / Black Mileage * Rate of Black Ink

Cyan Ink = Colour Pages / Colour Mileage (Cyan) * Rate of Colour Ink

Magenta Ink = Colour Pages / Colour Mileage (Magenta) * Rate of Colour Ink

Yellow Ink = Colour Pages / Colour Mileage (Yellow) * Rate of colour

Ink

A newspaper is a combination of both black and while and coloured pages. The numbers

of pages are calculated with the help of following formula:-

For Total Pages = Total Print Order * No. of Pagination * Days

For Coloured Pages = Total Print Order * No. of Coloured Pages * Days

Ink Calculation- For 15 Pages and 80000 Copies

10 Colour + 5 Black & White

Days = 30

No. of Black & White Pages = 15 * 30 * 80000 = 36000000

No of Colour Pages = 10 * 30 * 80000 = 24000000

Black Ink = 36000000 / 18000 = 2000 Kg.

Cost = 2000 * Rs. 50 = Rs. 100000

Yellow Ink = 24000000 / 25000 = 960 Kg

Cost = 960 * Rs. 150 = Rs. 144000

Cyan Ink = 24000000 / 40000 = 600 Kg

Cost = 600 * Rs. 150 = Rs. 90000

Magenta Ink = 21000000 / 35000 = 686 kg

Cost = 686 * Rs. 150 = Rs. 102900

Budget for All Types of Ink-

Black = Rs. 100000

Yellow = Rs. 144000

Cyan = Rs 90000

43

1.2 Plates- Plates are very important in print media. Plates are used for seeing

impression of printing material before actual printing is done:

Plates Required in the Printing Machine:

Machines- 4Hi 3C 3C Mono Mono

Pages- 4 2+2 2+2 2 1

Plates- 5 4 4 2 0.5

Calculation of Number of Plates Required in Month is as Follows:-

Basically 2 colour page require 4 plates,

Let us suppose that a newspaper contains 15 pages i.e., 15 printed pages,

then the number of plates required is as follows:-

4 Plates - 2 Coloured Pages





1 Plate - 2 Black & White Pages



0.5 Plate - 1 Black & White Page

Total Required Plates = 22.5

Rate of One Plate = Rs. 100

Requirement per Month = 22.5 * 30 =675 Plates

Budget for Month - 675 * 100 = 67500

44

1.3 LPF- LPF is a butter paper which is used in colour pages. It is used for

printing coloured impressions on the plate.

Per Page per Colour = 2 LPF

1 Plate Requires = 4 LPF

LPF Required in the Printing Machine:

Machines- 4Hi 3C 3C

Pages- 4 2+2 2+2

Plates- 5 4 4

LPF- 20 16 16

52 LPF are requires for 1 Day

For 1 Month LPF Required = 52 * 30 = 1560 LPF per Month

1 Packet of LPF Contains = 100 LPF Sheets

Cost Of 1 Packet = Rs. 600

Budget for Month - 1560 / 100 * 600 = Rs. 9360

1.4 Tracing- Tracing is used for printing black and white impressions on the

plate.

Tracing Sheet Required in the Printing Machines:

Machines- Mono Mono

Pages- 2 1

Tracing Sheet- 4 2

Tracing Sheet required per month:- 6 * 30 = 180

1 Packet contains 250 Tracing Sheets and cost of each packet is Rs. 700

Therefore,

Budget for Month - 180 / 250 * 700 = Rs. 504

45

1.5 Fountain Solution- Fountain Solution is a chemical which improves

quality of printing. Fountain Solution improves hardness of water, improves mileage of ink

colours. This chemical is required in liters.

Suppose 80000 copies of newspaper have to be printed. On an average number of pages

in a newspaper are 15.

Therefore,

Total Pages to be printed – 80000 * 15 = 1200000 Pages

Now, Fountain Solution required per day is calculated as below:-

Water Tank Capacity = 200 Litres

Water required per day = 150 Litres

Requirement of solution = 1.5% of Water tank capacity

Therefore,

1.5% of 150 Liters = 2.25 Liters

Rate pf solution per Liter = Rs. 35

Cost of Solution required per day = 35 * 2.25 = Rs 78.75 or Rs. 79

Requirement of Solution in a month = 2.25 * 30 = 67.5 Liters

Budget for Month – 67.5 * 35 = Rs. 2362.50

1.6 Packing Material (Polythene Bags)- Packing Material is essential

for packing of newspaper in rainy season. There is a gear of spoilage of finished goods

i.e., newspaper (as it is finished goods for the print media).For prevention of spoilage of

newspaper packing material is used.

As a precaution packing material is also used in other seasons also.

For making budget of packing material the calculation shown below is used:-

Let average page order = 80000

1 Bundle contains= 150 Polythene

Therefore,

No of bundle used per day=Average Page Order / Copy in 1 Bundle

80000 / 150 = 533 Bundles per Day

No. of Polythene Bag per Kg. is 35

46

Therefore,

Polythene required per Day in Kg is = No of Bundles per Day / No. of Polybags

533 / 35 = 15.2

Publishing Days in Month 30 Days

Therefore Total requirement in the month = 30*15.2 = 456 Kg

Rate of Polythene per Kg = Rs. 100

Therefore,

Budget for Month- 456 * 100 = 45600

1.7 Other Packing Material- Other Packing Material is also used for

efficient packing of newspaper. Other packing material like Strip Role is used for binding

the bundle.

Suppose that print order = 80000 Copies

No. of strips in Bundle = 200

Total No. of Bundle = 80000/200 = 400

1 Strip contains = 2.00 Meter Strip

Per day requirement = 400 * 2 = 800 Meter

Requirement for a month- 800 * 30 = 24000 Meter

1 roll contain 2000 meter strip

Total strip in month = 24000 / 2000 = 12 Roll

Rate = Rs. 350

Budget for month- Rs.350 * 12 = Rs 4200

1.8 Printer Tonner-Production- Printer Tonner is also an essential

material used in printing of a newspaper.

One single printer Tonner gives 150 impressions per print out.

Mileage of Tonner = 3500

Requirement of Tonner per month – 150 * 30 = 4500 per month

Requirement of Tonner = 4500 / 3500 =1.28 Tonner

Cost of Tonner = Rs. 7500

47

So,

Budget for Month- 1.28 * 7500 = Rs. 9600

2

3 OTHER PRODUCTION MATERIAL:

3.1 Electricity Consumption- Electricity is an essential part not only in

organization but also in our life. The budget of electricity is prepared or based on annual

consumption basis or on trend basis.

Besides this we have to keep certain things that are Billing Demand which we have to

maintain less than 20% to 30% on contract demand. This is because if billing demand is

higher from the contract demand than electric board charge power factor which increase

the electricity consumption.

Electricity Bill of Dainik Bhaskar is given below:

48

DAINIK BHASKAR

Electricity Bill

MONTH April'09

PARTICULARS UNIT

Contract Demand KVA

Billing Demand KVA

Gross Consumption KWH A

Rate per KWH Rs. B

Energy Charges Rs. C=AXB

Billing Demand KVA D

Fixed Charges Rate [Per KVA] Rs. E

Fixed Charges Rs. F=DxE

Sub Total G=C+F

Power Factor & Other Adjustments H

Electricity Duty Rate [Per KWH] Rs. I

Electricity Duty J=A X I

Total Bill K=G+H+J

Budget for Month- On Actual Average Basis

49

3.2 DG Fuel- It is based on power consumption. As much power we consume

that much fuel we require. Its requirement is calculated in the followings ways:-

1 D G is of 325kva

It consumed 20-25ltr in 1Hour.

If we have power cut of 15 days then,

DG running timing in a month for 15hrs is as follows:-

In 1hour, 25 ltr fuel is consumed.

In 15hour diesel consumed per liter- 15x25 = 375 liter

Rate of 1 liter diesel = Rs. 35

Budget for Month- 375 Liter xRs.35 = Rs. 13125per month.

4 MACNINE MAINTIENANCE:

4.1 DG Maintenance- DG works like generator or inverter. Its maintenance

is essential task so that we can always have electricity supply even in the case of power

cut. Therefore its budget is prepared on annual contract basis.

4.2 Multiwash / Nova Wash- Multiwash or Nova Wash is used for

cleaning of machines.

Let us take an example for making Monthly Budget for requirement and cost of

Multiwash.

Suppose 10 Liters of Multiwash is used per day.

Therefore,

Multiwash required per month- 10 * 30 = 300 Liters

Cost of Multiwash per liter = Rs. 40

Budget for Month- 300 * 40 = Rs. 12000

4.3 Blanket- Blanket is made of rubber and is used for supporting the plate. 1

Blanket gives 65 Lakhs impression pages. Thickness of Blanket is 8-10mm

1 Blanket Cost = Rs. 2500 Per Piece

50

Master Blanket Cost = Rs. 5000 Per Piece

In the Machine:


Blanket- 8 5 5 2 2

Total Blanket Required = 22

Budget for Month- 22 * 2500 = Rs. 55000

4.4 Dhotis- Dhotis are used for cleaning purpose in machines like 4HI, 3C,

Mono, etc.

In the Machine:


Blanket- 8 5 5 2 2

Dhotis (In No.)- 40 25 25 8 8

Estimation: 1 Blanket requires 5 Dhotis in 4Hi and 3C, and 4 Dhotis in Mono.

Per day requirement = 106

Per Month Dhotis Required = 106 * 30 = 3180 Dhotis per Day

Rate per Dhoti = 2.25

Budget for Month – 3180 * 2.25 = Rs. 7155

4.5 Rubber Rollers- Rubber rollers are used in printing machines.

If Rubber Rollers are required 5 per month.

Cost varies from Rs. 900/-

Budget for Month-900 * 5 = Rs. 4500

4.6 Repairs and Maintenance - Plant and Machinery- Plant and

Machinery once installed remains until the life of the plant and machinery. In this long

period of time plant and machinery require maintenance like repairs of small wear ad tear,

any technical problem, etc.

51


5 LOADING AND UNLOADING - The expenses in Loading and

Unloading comes under this head. We need Loading and Unloading when we keep

material in stores and also when we have to supply printed or other material at different

sources. The budget for such expenses is based on actual average.


6 BINDING CHARGES- When printing of newspapers or magazines is

completed then we have to count the printed material. After that we have to bind the

newspapers and magazines to make them in proper form to sell. For these purposes we

require binders to count and bind the printed material. Binding work is given on contract

basis. They are also paid by vouchers or on fix basis.

Budget for Month- On Calculation & Contract Basis.

52

B. NEWS EXPENSES

1 AGENCY PAYMENT:

1.1 PTI- As we all know that PTI stands for Press Trust of India which is a news

provider company.

It gives two types of services:

Core Services

Full Services

Core Services Cost Rs. 365 per 1000 Copies. And;

Full Services Cost Rs 540 per 1000 Copies.

It has circulation base filling,

If our circulation is 80000 copies then PTI can claim amount average core service tax i.e,

we have to pay= 80000 / 1000= 80

80 * 365 = Rs. 29200

Budget for Month- On Actual Average / Calculation Basis

2 NEWS EXPENSES - NEWSPAPER:

2.1 Payments for Photograph- Photographs are very useful for

Newspaper Company as it supports the written articles published in the newspaper. Such

photographs are made available to company by photographers. Photographers when

appointed on payroll are liable for receiving salary and other benefits, but many

companies hire photographers on contract basis, Such photographers are gives Rs. 30

per published photograph irrespective of the number of photographs he have.


53

2.2 Payment to Stringers / Correspondents- Newspaper printing is

not a child’s play. The scope of newspaper printing is very wide. For getting news from

various areas company appoints agents and correspondents of that place. The agents

and correspondents provide news to the company. The agents and correspondents are

paid Rs. 2.50 per centimeter column.

C. PERSONAL COST

1. SALARY:

1.1 Gross Salary- Gross Salary is 55-60% of basic salary (Excluding and

Including Office Part)

40% of basic Salary is HRA i.e., house rent allowance

25% for Conveyance or Rs. 800 whichever is minimum.

Rest for other allowances

Medical (Rs. 1250 Maximum), Education Allowance (Rs. 200 Maximum), Performance

Allowance, Other Allowances.

Now comes CTC i.e., Cost to Company which includes Bonus, Medical, Transportation,

FBT (Fringe Benefit Tax), Gratuity.

Budget for Month- On Fixed Monthly Basis

1.2 EPF (Employee Providend Fund)- EPF is 12% share of

employee on basic salary

And Basic D.A. (Dearness Allowance) is 25.61 %

12% share comprises of 8.33% for pension fund and 3.67% for providend fund.

EDCI- Employee Dealing Insurance = 50%

Administration Charges = 1.11%

Total = 51.11%

Forms used in EPF:

Form No. 2:- Nomination form (Declaration of Nominee for P.F. and Pension)

54

Form No.5:- New joining declaration during the month submitted by company to P.F.

Department.

Form No. 10:- Submitted to company (Details of the employee left in the

month).

Form No. 12:- Monthly return (Details of form no. 5,10 deposits of challans).

Form No. 13:- Transfer of P.F. Amount to other P.F. Company Account.

Budget for Month- On Calculation Basis

1.3 ESI- ESI is applicable on organizations which have more than seven

employees. For deduction of ESI maximum limit for gross salary is Rs. 10000

How ESI is deducted

ESI is deducted 1.75% employee share on higher side.

And 4.75% of employee’s share on higher side

Total ESI deducted is 1.75% + 4.75% =6.50%

ESI is applied only on government declared area.


1.4 Mobile Expenses (Fix&Actual Basis) - Mobile expenses are

given to the employees for doing business conversation on mobile phones. Mobile

expenses are given on fix and actual basis both. On fix basis employees are given a fix

amount for their mobile expenses, and on actual basis mobile expenses are paid on

reimbursement basis.

Budget for Month- On Actual Average or Fixed Basis

1.5 Vehicle Fuel Maintenance & Insurance- Vehicle fuel,

maintenance and installation expenses are given to employees to commute place to

place for business purposes. Budget for these expenses are made on actual average

basis.


55

1.6 Annual Benefits- Annual benefits are given to employees once in a

year and budget for such expense is made up on actual average basis.


1.7 Bonus / Ex-Gratia (Diwali)- It is a sub head covered under the

head salary bonus is given to employee on some special occasion like diwali festival.

Such bonus is given on 10% of basic salary of the employees. The budgets for such

expenses are made on actual average basis.


1.8 Overtime Payment- Overtime payments are given to employees who

work extra hours then their normal working hours, such extra hours are known as

overtime. Overtime payments are given to the employees of production department.

Budget for such payments are made on actual average basis.


2. STAFF WELFARE EXPENSES:

2.1 Canteen and Pantry Expenses- Canteen and Pantry expenses incurred

when employees are paid for their refreshment at workplace. Employer is issued coupons

for employees of a fix amount of their refreshment in the office canteen.


2.2 Medical Expenses (Other than Mediclaim)- Medical

Expenses incurred when there are certain medical checkup camps and first aid provided

to employees


56

2.3 Mediclaim Premium Amount- Medical Policy Premium amount

depends on grades.

E1 – Employee covered under ESI is not liable and if liable .

. Premium amount is Rs. 2500p.a.

M5 – Rs. 3200p.a.

M4 / M3 – Rs. 4800 p.a.

M2 – Rs. 5400 p.a.

M1 – Rs. 6000 p.a.

No. of Coverdness- Self, Spouse and two children.


2.4 Pooja Expenses- Pooja Expenses incur in maintenance of the temple

which is situated in the office campus. Priests are paid for maintenance o the temple and

performing worship on various festivals. Budget for such expenses are made on actual

average basis.


2.5 Marriage Gift- Marriage gift are given to employees for their immediate

family. The following amount for marriage within their immediate family are as follow:

Family Member Amount

Self 2100

Sister 3100

Children (Maximum Two):

Son 3100

Daughter 5100


57

3. OTHER SALARY PAYMAENTS:

3.1 Gratuity- Gratuity is paid according to Factory Act 1948

Condition – It is applicable on minimum 5 Years completion of job.

Formula for calculation Gratuity:

Gratuity from basic = Basic Salary *15 * No. of Working Year / 26

Example – Ram Employee’s Basic Salary is Rs. 8000. He joind the organization in 1996

and he leave organization in March 2005

Calculate Amount of Gratuity

Solution- Basic Salary = Rs. 8000

No. of Working Years = 9 Years

Gratuity = 8000 * 15 * 9 / 26 = Rs. 41538


3.2 Leave Encashment- Leave encashment refers to payment received by

employee for working instead of taking leave.

Formula for Calculation is as under:-

Basic Salary * No. of Paid Leave (Maximum) /30

Example- Ram employee’s basic salary is Rs. 8000. The Maximum paid leave is 5 Days.

Calculate leave encashment

Solution- Basic Salary * No. of paid leave (Maximum) / 30

8000*5 / 30 = Rs. 1600

Types of Leave:-

58

1. Casual Leave (CL)-

Casual leave cannot be availed for more than 3 days at a stretch.

Casual leave cannot be calculated on annual basis and shall automatically laps

after the close of the year.

Casual leave is not encashable.

2. Medical Leave (ML)-

Medical leave cannot be encashed.

Medical leave availed in excess of entitled / accumulated leave can be adjusted

against PL.

Those employees covered under ESI / Factories act and therein would not be

covered under this scheme.

A medical certificate from an authorized medical practitioner would be required to

claim the entitlement.

3. Privilege Leave (PL)-

Privilege Leave can be combined with medical leave but no with casual leave.

Privilege leave may be encashed not exceeding 12 days in a year (Only for M grade

Employees). Encashment would be affected on the basis of basic salary only.

Type of

Leave

Entitlement for the YearAccumulation LevelEncashment Numbers

(Annual)

Casual 9 No Accumulative No

Medical 12 36 Days No

Privilege 21 54 Days 12

4. Special Leave- The organization also allows certain special leaves to its

employees. These are treated as leave with pay and are in addition to the normal leaves

available:

59


D. OFFICE & ADMINISTATION EXPENSES:

1.1 Main Office / Press Rent- A Company can work efficiently if working area is

assembled in same place or a re connected with each other. For efficient working

company hires office building. A company has to ay rent for hiring building. The rent is

paid on agreement basis. Such agreement is done on market rate.

Budget for Month- On Agreement Basis

1.2 Godown Rent- Godown is an essential part of every organization

especially where we have to purchase the material. These purchased material we have

to keep in stock in Godown. For Godown we have to paid rent & this rent is on

agreement basic according to market rate.


1.3 Postage & Courier- Company letter, Dak corresponded to be sent

another place. Courier Company provides service for dispatching the same. These

courier services are paid as per contract basis or as per document basis

Budget for Month- On Actual or Agreement Basis

1.4 Telephone- Telephone is a means of communication. In a big organization

we require telephone in a huge amount so that every members of company remains in

touch with each other. The budgeting of this is based on actual average trend basis. If a

company has 5 telephones connection lines than for budgeting purpose we see past

trend of all the connection lines.


60

1.5 Internet Expenses- Internet now a day is the fastest mode of

communication. Organization which has large number of branches in all over India for

them Internet is the effective mode. The internet connection is taken on plan basis.

Internet is used for data transfer & exchange from the main office to the bureau office and

it also used for global information.


1.6 Printing & Stationery- In office stationery items like pen, pencil,

registers, alpines, calculator, are required as well as printing material like office receipts,

bills, files are also required. The budgeting of these expenses is as per trend basic or as

per requirement basis.


1.7 Photocopy Expenses- Photocopy is required to make extra copy of any

type of office document. These expenses are paid as per agreement or as per copy.


1.8 Traveling Expenses- If an employee go outside in respect of office work

than his traveling expenses reimbursed by company as per norms & conditions after

making audit of Traveling expenses bills. The budgeting of these expenses is based as

per actual basis and policy basis.


1.9 Conveyance- If an employee goes outside for office work within the city

then company paid Rs. 2.50 per km. or as per policy.


61

1.10 Guest House Expenses- When the guest of the company comes and

stays in the guest house. Guest house includes salary of care taker, rent of guest house,

food expenses and electricity exp. The budgeting of these expenses is based on actual

basis or on calculation basis.


1.11 Security Expenses- For security purpose we appoint security guards

who are responsible for safety of vehicles; keeping records of persons enter in the office

building. How many guards we appoint is depend on our requirement & its budgeting is

made on agreement basis.

Budget for Month- On Agreement/Contract Basis

1.12 Housekeeping Expenses- Cleanliness is most important part of our

life. When we work in clean environment we can work efficiently & effectively as per

saying “Healthy mind in Healthy body” we require clean environment. For cleaning

purpose company appoints sweepers. The budgeting of these expenses is on agreement

basis.

Budget for Month- On Agreement/Contract Basis

1.13 Gardening Expenses- To keep the environment fresh & clean we make

plantation or form garden. The maintenance of garden contains certain expenses like

salary of gardener, purchasing cost of plants, manure, fertilizers etc. Its budgeting is

based on actual expenses incurred.


1.14 Water Expenses- Water connection if we take from PWD its expenses is

paid as per PWD rate but if we are water from outside agency is paid as per their fixed

rate basis.

Budget for Month- On Consumption / Fixed Rate Basis

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1.15 Repairs and Maintenance - Building- The maintenance required

in case of building is whitewash, paint, floor furnishing, etc. Budgeting of this expense is

done on actual average bases.


1.16 Repairs & Maintenance–Computer & UPS- Computer is an

electronic device which performs various task to enable its user to achieve his objective

or to complete work efficiently and effectively, In case of computer maintenance is done

in the form of changing or enhancing RAM, upgrading antivirus software to protect the

various files in the computer. The budgeting of such expense is done on actual average

basis.


1.17 Repairs & Maintenance Office Equipment and Others- Various office equipments like Fax Machine, Xerox Machine, Telephone, A.C., Cooler,

etc. are those which require proper maintenance otherwise it changes work into tedious

task. Budgeting of some expenses are done on actual average basis.


1.18 Annual Maint. Contracts (AMC)- In organization like print media

high equipments are involved like UPS, printers, etc. If we not maintain this equipment it

affects our working. Therefore we have to maintain this. The budget of these expenses

is on agreement basis.

Budget for Month- On Contract / Agreement Basis

1.19 Legal & Professional Fees- The fees paid to the advocate for case is

known as legal or professional fees. It budgeting is on fixed or case to case basis.

Budget for Month- On Fixed / Actual Average Basis

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1.20 Legal & Professional Expenses- When we made any expenses

regarding the case like stamp duty is known as legal & professional expenses. It

budgeting is on fixed or case to case basis.


E. SMD EXPENSES:

1.1 Circulation Jeep Expenses- Circulation Jeep Expenses incur when

circulation of newspaper is done by means of jeep. Bhaskar owns some jeep and it has to

hire some jeeps for circulation purpose. Budget for such expenses are made on the basis

of actual average/Contract basis.

Budget for Month- On Actual Average / Contract Basis

1.2 Rent of Circulation Centers- Some centers are hired for distribution of

newspaper for which rent is paid. Budget for such expenses are made on the agreement

basis.


F. BUSINESS PROMOTION:

1.1 Advertisement & Publicity- Expenses incurred on advertisement

and publicity of newspaper is covered under this head. Budget for such expenses are

made on actual average basis.


1.2 Barter Expenses- Barter Expenses are incurred when there is only

exchange of goods and services, the goods and services are not exchange with money.

Suppose an LCD is purchased from Sony then rather paying them that amount in money,

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we issue advertisements for Sony of particular cost. But barter system is not in practice

now-a-days.


G. CITY AND BUREAU EXPENSES - Performing and managing so

many activities from a single office is not a child’s play. Therefore, many bureau offices

are opened to manage and perform some activities there. The expense incurred on such

offices comes under city and bureau expenses. The budgets for such expenses are made

on the basis of actual average basis.

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FACTS & FINDINGS

Graphical Presentations

INTERPRETATION:-

Advertisement collection is a main source of generate the income from the market, thus

on the basis of average ratio and comparison of actual and budgeted amount of previous

month the growth rate of Advertisement collection is around 12.5% thus the projected

amount of collection could be 45,255,370.

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INTERPRETATION:-

SMD Expenses are fixed in nature as per the previous two months trends are showing,

and their Budgeted and Actual Amount also very closed to each other so the next month

budget is also keep the same trend value of 921150.

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INTERPRETATION:-

In the month of April & May the BUDGETED amount of BUSINESS & MARKETING

PROMOTION was 2235580. While the Actual expenses was quite lesser than the

Budgeted amount thus on the basis of two months budget & actual Expenses & also in

the June month company is not going to launch any big promotion strategy thus in the

month of June the projected budgeted amount could be much lesser than previous

budget (20, 45,000).

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INTERPRETATION:-

CITY & BUREAU Expenses are quite STATIC in nature. Because there is no scope of

advancement in this area. Thus the Projected budgeted amount of June month in this

head will remain the same (88000).

74000

76000

78000

80000

82000

84000

86000

88000

90000

APRIL MAY Projected JUNEMonth

BudgetActual

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INTERPRETATION:-

In the month of June Company is not going to launch any new Scheme in the market thus

on basis of previous schemes and ratios the next month projected center transfer amount

could be around 14,750,000.

70

INTERPRETATION:-

On the basis of whole actual & budgeted expenses review it has been clearly seen that

there is a lot of difference between company’s actual & budgeted expenses.

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CONCLUSION

The newspaper is unique product as it is unlike any other commodity whose life is just like

for few hours. It has to be replenished in every 24hours.

The structure of the Indian print media industry is highly fragmented with importance to

regional dominance.

In our training we come to know that the sources of income for newspaper companies are

only advertisement. There are so many expenses which incur right from manufacturing of

newspaper to convert it into finished product and providing it place utility i.e., making

available the product to their final consumer at the place where they require the product.

The expenses are categorized into two categories:-

Consumption Based Expenses

Budgeted Expenses

The budgeting for both expenses are done differently.

In my training I am also understand the methodology of Dainik Bhaskar which is SAP.

SAP stands for System Application Product, which enables the organization to effectively

and efficiently utilize the resources of the organization.

Our project shows the importance of budget in any organization, as it provide a forecast

of revenues and expenditure i.e., construct a model of how our business might perform

financially speaking if certain strategies events and plans are carried out. It also provides

a financial framework for the decision making process.

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SUGGESTION & RECOMMENDATION

1. Company should look at their H.R. Policy.

2. Performance should only be criterion for Promotions.

3. Dainik Bhaskar should look at their production Department because only through

production they can cut down their Costs.

4. It is Advisable to prepare Cash budgets on a Week basis rather than on Month or

Year basis.

5. Per year 30 lacs. Rs. Spent as Godown rent is a huge amount. Thus Bhaskar, Jaipur

can cut down its cost through buying a Godown for storing its materials.

6. Per year 40 lacs. Rs. Spent as a Binding Charges Which is a huge Amount for the

company thus if company set up its own Binding Machine for its purpose they can Save a

lot of money for it.

7. In other Expenses head company should look at their attention

Because this head really make a big difference between actual & Company budgeted

amount level.

8. Company also should check their liquidity position.

9. Top management level should try to start the ABC or XYZ analysis method to

maintain their stock level. Because during the project I come to know that because of

FIFO method it has been seen that material which comes last is going to wasted and sold

as wastage. Thus company top level management should look at the store management.

INVENTORY MANAGEMENT is a great concern for the DAINIK BHASKAR

specially stores & Spares. The purchase manager should take certain steps for

procurement of material.

Keep stock level as low as possible, consistent not without running out of stock

and not ordering stock in a small uneconomically quantity. JUST IN STOCK Management

is fine, as long as it is JIT and never fails to deliver on time.

JUST IN TIME management process could beneficial for the firm if company

maintain this process they can avoid the wastage of material quite effectively.

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BIBLIOGRAPHY

Books

1. Sharma R.K. and Sashi K. Gupta, Text Book of Management Accounting, Kalyani

Publishers, New Delhi, 1998.

2.Jain S.P. and Narang K.L., Advanced Cost and Management Accounting, Kalyani

Publishers, New Delhi, 1999.

3.Srivastav R.M., Essentials of Business Finance, Himalaya Publishing House,

Bangalore, 1998.

4. Raman B.S., Financial Management, United Publisher, Mangalore, 2001.

Websites

1. www.Bhaskar.com

2. www.google.com

3. www.wikipedia.com

4. www.newspaperindustry. com

Others

1. Dainik Bhaskar monthly Review report.

2. Monthly Variance report of Dainik Bhaskar

3. Annual Financial Report

4. Annual Report of Market share of Bhaskar group Corporation.

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http://www.wikipedia.com/

http://www.google.com/

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MY REPORT -=-=

Documents