profile of chennai port trust

SYNOPSIS

This Project is done for the Chennai Port Trust to analyze the Budgetary Control.

For researcher various areas of vital information are:

To find the Variance between the Actual and the Budget Estimates of

the Organization for the Past Five Years.

To find the Income and Expenses are Increasing year by year or

Decreasing.

This Project aims to make the Trend Analysis, Variance Analysis and

prepare the Comparative Statement.

This details enables the organization to have clear picture about

budgetary control. This could be help the top management in arriving

at a corrective decision.

INTRODUCTION

BUDGET:

In our daily life, we use to prepare budgets for matching the expenses with income; and available funds can be invested in a profitable manner.

Similarly in government Organization, budgets are prepared on the basis of future estimated Income in order to find out the profit in a specified period.

A budget is in the nature of an Estimate and is a qualified plan for the future activities to co-ordination and controls the activities for a specific period.

DEFINITION OF BUDGET AND BUDGETARY CONTROL:

Budgeting is a process, which includes two important functions. Budget and budgetary control. Budget is a planning function and Budgetary Control is a controlling systems or technique.

A control technique whereby actual results are compared with budget’s is known as Budgetary Control.

The exercise of control in the Organization with the help of Budgets is known as Budgetary Control.

THE PROCESS OF BUDGETARY CONTROL INCLUDES:

A budget is defined as a comprehensive and coordinated plan, expressed in financial for the Operations and resources of an enterprise for some specified period in the future.

Preparation of various budgets.

Continuous Comparison of Actual Performance with Budgetary Performance.

Revision of Budgets in the light of changed circumstances.

Budgeting plays an important in any Organization. Forecasting the events, Planning allocation of funds are the major sources of Budgetary Control.

KINDS OF BUDGET:

Budgets may be divided into two basic classes:

1. Capital Budgets2. Operating Budget

Capital Budgets are directed towards proposed expenditure for new projects and often require special financing.

The Operating Budgets are directed towards achieving short-term operational goals of the organization, for instance, production or profit goals in a business firm.

Operating budgets may be sub-divided into various departmental of functional budgets. Sales budget, Production budget, Administrative Expenses budget, Raw –material budget, All these sectional budgets are afterwards integrated into a master budget, which represents an overall plan of the organization.

The other Types of Budgeting Known as:

Zero Based Budgeting Performance Based Budgeting

ZERO BASED BUDGETING:

Each manager prepares estimates of his or her proposed expenses for a specific period of time as though they were being performed for the first time. In other words, each activity starts from a budget base zero. By starting from scratch at each budget cycle, managers are required to take a close look at all their expenses and justify them to top management, thereby minimizing waste.

PERFORMANCE BASED BUDGETING:

Performance Budgeting results in a Budget which present the operations of an enterprise in term of functions, programmes, activities and projects. The measurement of actual performance with Budgeted performance in terms of financial and physical is known as performance Based Budgeting.

ADVANTAGES OF BUDGETARY CONTROL:

There are a number of advantages of Budgetary Control:

Compels management of 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 and (ideally) each manager, to anticipate and give the organization purpose and direction.

Promotes coordination and communication.

Clearly defines areas of responsibility. Requires managers of budget centers to be made responsible for the achievement of budget targets for the operations under their personal control.

Provides a basis for performance appraisal (variance analysis). A budget is basically a yardstick against which actual performance is

measured and assessed. Control is provided by comparisons of actual result against budget plan. Departures from budget can then be investigated and the reasons for the differences can be divided into controllable and non-controllable factor

Enables remedial action to be taken as variances emerge.

Motivates employees by participating in the setting of budgets.

Improves the allocation of scarce resources.

Main characteristics of a Budgetary Control 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 been laid down.

3. It is expressed in quantitative form, physical or monetary units, or both.

BUDGET AND BUDGETARY CONTROL IN CHENNAI PORT TRUST:

The Budgets in Chennai port Trust are prepared to meet their expenses with their income in the forth coming year.

Budget Estimates are made on the basis of the Previous Year Income and an approval form is sent to the Government for the sanction of Amount

The Actual exceed the Budget Estimates so the necessary for budgetary control arise.

OBJECTIVE

PRIMARY OBJECTIVE:

The Primary Objective of this Study is to explore the activities in Chennai Port in achieving the Budgeted Estimates.

SECONDARY OBJECTIVE:

To compare the Budget Estimates and Actual of Chennai Port Trust for the Past Five Years.

To carry out the Trend Analysis, Variance Analysis and to prepare Comparative Statement.

SCOPE

Any Organization has to look back, if it wants go to forward. This

study which is done at Chennai Port Trust aims at Studying the

Budgetary System and the ways of making it more Effective.

The scope of this study is to compare the Budget Estimates, with the

Actuals.

The study helps to know about the Budgetary Control at Chennai Port

Trust.

LIMITATIONS

BUDGETARY CONTROL IS AN EFFECTIVE TOOL FOR

MANAGEMENT CONTROL. HOWEVER IT HAS CERTAIN

LIMITATION WHILE OPERATING IT AS A TECHNIQUE.

Budgeting is a process of forecasting and estimation. Forecasting

may not be accurate.

It is prepared on the basis of certain prevailing conditions. If the

conditions. If the conditions change budget are also to be revised.

The data used for this is collected only from the Income and

Expenditure Statement

At Present they are following the Zero Based Budgeting Method

which is not Properly Implemented.

COMPANY PROFILE

PORT PROFILE:

Chennai port is an artificial harbour situated on the

coromandel cost in southeast India and it is the second principal port

handling containers. Chennai port has 24 alongside berths and 1 mooring in

the 3 dock viz. Dr.Ambedkar Dock, Bharathi Dock, Jawahar Dock and

container Terminal the major items being handled are liquid and dry bulk.

COMPANY PROFILE:

INDRODUCTION:

In the sea borne trade of India the Chennai Port is one of the

most important ports in the east coast, it is growing as a hub port for

handling containers in the Eastern India, In terms of volume of cargo

handled the Chennai port stands in third place. The port is handling all kind

of cargoes and the infrastructure avails in the port is an asset to the shipping

industry in the southern region.

Chennai port in one of the eleven major ports of the country.

Out of seventy three thousand among the Major ports, nearly ten thousand

employees are working in Chennai port the main advantage of the port is

Geographical location, which caters to the needs of the user. UN the sea

borne trade of India, the Chennai port is one of the most important ports in

the Eastern Coast. It is growing as a hub port for handling containers in the

eastern India. In term of volume of cargo handled, the Chennai ports stands

In third place. The port is handling all kinds of cargoes. The infrastructure

and human resources available in the port is an asset to the shipping industry

in the southern region.

INFRASTRUCTURE OF THE PORT:

The Chennai port has considerable to handle 45 millions tons of

cargo. The details on the infrastructure are described as follows:

Water spread Land area No of berths

Inner harbour 218 acres 413 acres 16

Outer harbour 200 acres 100 acres 7

Chennai port 418 acres 513 acres 23

The port’s operational area is grouped into three dock system namely

1. Ambedkar Dock

2. Jawahar Dock

3. Bharathi Dock

There are 23 berths distributed in the above 3 dock systems.

ORGANISATION STRUCTURE AND DEPARTMENTS:

Chennai port, is go reined by board of trustees numbering about 21

presenting various losers, port management agencies, representatives of

labour, the customs, shipping personnel, the electricity food most [ Ministry

of surface transport ] apart from the Central Government and local state

government.

A Deputy Chairman, who is a trustee and head of various

departments, is assistant the chairman as the executive head.

THE HIERARCHIES IN THE CHENNAI PORT TRUST IN

AS FOLLOWS:

CHAIRMAN

↓

DEPUTY CHAIRMAN

↓

DEPARTMENT HEADS

↓

CHIEF OFFICER

↓

DEPUTY CHIEF OFFICER

↓

SUPERINTENDENT

↓

LABOURERS

PORT HISTORY:

The little fishing village called Chennai pattinam, which was

founded in 1639, became prominent during the early part of the 18th century

when the East India Company was active on the East Coast. In the Harbour,

to and from ships were anchored about quarter mile offshore and the cargo

to and from the ships were transported through small lighters called masula

boats as the loss of cargo while transporting through masula boats was high,

it was proposed to build a pier to berth larger crafts and an Iron screw pile

Pier was built in 1861 to a length of 1100 ft., perpendicular to the shore

during November 1881, due to violent cyclone over half a mile of

breakwater was breached and equipments and human lives lost. Through

there was a demand for relocating the entrance, the restoration was resumed

in 1885.

Port of Chennai [madras then] until the year 1875 was simply

an open roadstead on open sandy coast swept by storms and occasional

monsoons. Sir Frands Sprig, the then chairman of madras port trust in 1904

created a new north-eastern Entrance after closing the original eastern

Entrance to control the siltation of the Chennai in front of the basin.

Subsequently quays were constructed at different period[i.e.] south quay-1 in

1913, the five west quay berths in 1916 to 1920, North Quay in North

Quay in 1931 and south Quay-2 in 1936 in the Inner Harbour which was

later, christened as Dr. Ambedkar DOCK.

The bharathi dock originally constructed as an outer harbour to

handle vessels up to [-] 16-2 m draft. An oil jetty to handle crude oil

imported by the manali oil Refinery [presently Chennai petroleum

Corporation Ltd ] was constructed initially during the year 1970 An Iron ore

berth was constructed in the same dock in 1974 for exporting Iron ore to

Japan and other far East countries subsequently one more oil jetty was

constructed during the year 1985 to meet the additional demand for

crude/products.

In 1970s the madras port trust started handling container traffic

was increasing, a container Terminal of 380 m length was constructed at

Bharathi Dock during the year 1983 as a first full-fledged container hub of

the country with container storage year of 51,000 sq. m and a area. The

terminal was provided with tow shore cranes and other shore facilities

required for container terminal.

Subsequently the terminal was farther extended by 220 m.

during the year 1991 with additional two shore cranes and other matching

infrastructural facility. As the traffic was constantly increasing the terminal

was further extended by 285 m, during fully 2002. This container terminal of

885 in total berth length with backup area was privatized lender concessional

agreement with M/s. X Chennai container. Terminal private ltd., On BOT

Basis for 30 years from November 2001.

MAJAOR PORTS

Major ports are technically well developed with reference to men and

machinery.

In India, we have the following 12 major ports.

Chennai - Tamil Nadu

Tuticorin - Tamil Nadu

Visakhapatnam - Andhra Pradesh

Phsredip - Calcutta

Cochin - Kerala

Mangalore - Karnataka

New Mormugoa Port - Goa

Mumbai - Maharastra

J.N.P - New Bombay

Kantla - Kutch Region of Gujarat State

GEOGRAPHY OF CHENNAI PORT

GEOGRAPHY OF THE PORT:

1. Ambedhkar Dock

2. Jawaher Dock

3. Bharathi Dock

4.

AMBEDKAR DOCK

Type of cargo handled General cargo, cars, granite steel,

food grains.

Other usage Passenger vessels

Terminal

Terminal Car Terminal

Cruise Terminal

Name of Berth North Quay, West Quay-I,II, West

Quay-III,IV, South Quay I,II,III, East

Quay

Second container terminal

Ambedkar Dock the type of cargo handled are general cargo, cars,

granite steel, and food grains. In this dock the scheduled depth meters is

from 8.50 to 12.00 meters. And its quay length is of 198.00 meters to

372.00. The transist shed is attached to this dock. The E.Q services berth is

0 to 60 m from south, from south 9.00 m 60 to 372 m 12.00 m and the naval

navy vessel berth is 200.00, to 60 m from north 9.00 m to 60 to 200 m 1200

m.

JAWAHER DOCK:

Type of cargo handled Coal fertilizer, Iron one lumps,

pellets, edible oil, phosperic acid

Other usage Nil

Terminal Nil

Name of berth JD,1,2,3,4,5,6.

In jawahar dock the type of cargo handled are coal, fertilizer,

iron ore lumps, pellets, edible oil, phosperic acid, and there is no other usage

and terminal in this dock. The names of the berths handled in this dock are

1,2,3,4,5,6. In this dock the scheduled depth is from 10.40 to 11.00 in meters

and the quay length is from 218.33 meters. It has the transit shed attached

and overflow shed attached.

BHARATHI DOCK:

Types of cargo handled Container, Iron

Other usage Nil

Terminal i. Container terminal

ii. Iron one terminal

iii. Oil terminal

Name of berth Container ( T, 1,2,3)

Iron one – B02

Oil – B 21, 3D3

In this dock the type of cargo handled are containers, iron ore, POL,

there is no other usage in this dock. The are three types of terminal they

container terminal, iron ore teorminal, and oil terminal. The names of the

berths are container (T,1,2,3), Iron ore – B02, Oil – B 21, 3D3. The

scheduled depth is from 355.65 to 307.50. The length between the extreme

dolphins is 67.50 m on the southern side was damaged during Tsunami in

26-12-2004.

DEPARTMENTS

The Major Five Departments which have selected to use in the Study.

TRAFFIC DEPARTMENT:

It looks after all the matters relating to the provision of facilities for cargo handling. It also licenses to hawkers, controls allotment of rent stocking area, what’s rent etc.

MARINE DEPARTMENT:

It manages the movement of the ships in and out of the harbours. It guards against fire hazards in and out of the harbour.

CIVIL ENGINEERING DEPARTMENT:

It executes such formation as preparation of project, report, estimates, design and scrutinizing of tender documents, procurement of stores & protection of the employees.

ELECTRICAL AND MECHANICAL DEPARTMENT:

This department is responsible for the operational and working of the iron ore handling plant and running of port work shops, operation and maintenance of port.

SECRETARIAL DEPARTMENT:

It deals with matters like industrial relation public relation and training center and dealing with establishment matters to all department. It co-ordinates all department. It also looks after the welfare of the employees.

OUR MISSION:

The Chennai Port Trust is committed to:

To achieve excellence in port operations through dedicated, loyal and committed workforce to enhance customer satisfaction.

Strive for continual improvement at all levels by enhancing skills, knowledge and enthusiasm to meet the needs of the challenging world.

Strive to achieve maximum values addition through the most effective use of resources.

OUR VISION:

To become the best among all Ports in all aspects.

Empower employees for shouldering higher responsibilities resulting in job enrichment and job satisfaction.

To become the best Port in environmental management and it controlling pollution.

OUR POLICY:

The Chennai Port Trust is committed to;

Provide efficient, prompt, safe and timely services at optimum cost.

Ensure quick turn round of vessels by providing facilities for efficient handling of cargo.

Maintain total transparency in all our transactions and

Continuously improve our services to meet the expectations of the Port Users, employees and the Society.

DEVELOPMENT OF PORT TRUST

1877- Construction of the south pier was commenced with stones brought from Pallavaram on the old Indian railway which had been opened by them and which was extended the harbour works authorities.

1881- Construction of a harbour was completed and handling of ships inside the harbour was started. A disastrous cyclone occurred on 12.11. 1881 the sea swept over the break waters from both sides of the harbour damaging the work to an enormous extent.

1906- Sir Francis Spring assumed charge as the chief engineer if the port.

1912- Construction of south quay – I was completed.

1916- A harbour office building was constructed at centre quay-of west quay berths.

1936- Construction of south quay- II was completed..

1959- Passenger station on the 1st floor of the transit shed at north quay was commissioned.

1961- Construction of signal station was completed at north quay.

1965- Construction of outer harbour “Bhartathi dock”.

1972- Construction of oil jetty was completed at Bharathi dock.

2000- Exports of cars was started in this year.

2001- Container terminal was handed over to M/s CCTL under 30- years lease for managing and operating the terminal.

2003- Berth (574 mts) was reconstructed and a port was given to Navy for 30-years lease (200 mts)

FUTURE PLANS:

Second container terminal with a capacity of 1 million TEU’s per-annum,developed by PSA-SICAL

Master plan for port railway, realigning rail and road network

Mechanized conveyor system for coal to handle 9 MT

Dedicated evaluated expressway from Chennai Port Trust madura royal to NH4 as been approved by the government to enhance the hinterland connectivity.

Development of Ro-Ro terminal and multi level car parking facility with

a capacity of 5000 cars

The break water extension from existing outer arm will be utilized to develop deep draft oil berth for handling VLCCs.

PORT DETAILS:

GEOGRAPHICAL LOCATION

Latitude - 13 06’NLongitude - 80 18’EClimate - TropicalTime - +5 hrs 30 minutesTemperature - 30 c max

18 c minAnnual rainfall - About 125 cmsSpring Tides - 1.2 metersWater area - 420.00 acres (169.97 hectares)Land area - 586.96 acres (237.54 hectares)

FUNCTION OF THE PORT

The port renders two types of services:

Ship related

Cargo related

(i) Ship related services:

Berthing / Un berthing of ship.

Provision of pilots to the ship.

Marine crew to provide assistance on shore while berthing / un berthing.

Provision of pilot launches.

Water supply to ships.

Bunkering.

(ii)Cargo related services:

Labors on board.

Hire of cranes & if necessitated stevedoring, operation etc.