1.

1 INTRODUCTION
Of all business activities, budgeting is one of the most important and, therefore,
requires detailed attention. Budgets can take many forms and serve many functions. Budgets
can provide the basis for detailed sales targets, staffing plans, inventory production, cash
investment/borrowing, capital expenditures (for plant assets, etc.), and on and on. Budgets
provide benchmarks against which to compare actual results and develop corrective
measures. Budgets give managers "preapproval" for execution of spending plans. Budgets
allow managers to provide forward looking guidance to investors and creditors. Budgets are
necessary to convince banks and other lenders to extend credit.
Budgetary control is the process of ascertaining several budgeted figures for the future
of a business enterprise and then making comparison of these budgeted figures with the
actual results for finding out discrepancies, if any. The comparison of budgeted and actual
figures 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 whereby the actual results for a defined period of time are compared with the
budgeted results, any differences (or variances) 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.
Planning has become the primary function of management these days. Most of the
planning relates to individual situations and individual proposals. However, this has to be
supplemented and reinforced by overall periodic planning followed by continuous
comparison of the actual performance with the planned performance. Budgets are nothing but
expressions, largely in financial terms of managements plan for operating and financing the
enterprise during specific periods of time.

Theoretical aspects of budget & budgetary control

Introduction:
Planning is the basic function. It helps determining the course of action to be followed
for achieving organizational goals. It is decision in advance, what to do, how to do and who
will do a particular task? Plans are famed to achieve better results. Control is the process of
checking whether the plans are being adhered to or not, keeping a record of progress,
comparing it with the plans, and then taking corrective measures for future are any deviation.
Even business enterprise needs the use to control techniques for surveying in the highly
1

competitive and changing economic world.

There are various controls devices in use.

Budgets are the most important tool of profit planning and control. They also act as an
instrument of co-ordination.

Meaning & Definition of Budget

Meaning of a budget:
A budget is the monetary or quantitative expression of business plans and policies
pursued in the future period of time. The term budgeting is used preparing budgets and other
procedures for planning co-ordination and control of business enterprises.

Definition:
According to CIMA, official Terminology, A budget is a financial and quantitative
statement prepared prior to a defined period, of time, of the policy to be pursed during that
period for the purpose of attaining a given objective.
According to Crown and Howard, A budget is a predetermined Statement of
management policy during a given period, which provided a standard for comparison with the
result actually achieved.

Meaning of Budgetary Control:

Budgetary control is the process of determining various budgeted figures for the
enterprises for the future period and then comparing the budgeted figures with the actual
performance for calculating variances, if any. First of all budgets are prepared and hen actual
result are recorded the comparison of budgeted and actual figures will enable the
management to find our description and take remedial measures at a proper time. The
budgetary control is continuous process, which helps in planning and co-ordination. It
provides a method of control too.

Definition:
According to Brown and Howard a budgetary control is a system if controlling costs,
which includes the preparation of budgets, coordination the department and establishing the
responsibilities, comparing actual performance with the budgeted and acting upon result to
achieve maximum profitability.
According to Weldon he criticizes budgetary control as planning in advance of the
various function of a business so that the business as whole is controlled.
Budget, Budgeting & Budgetary Control:A budget is a blue print of plan expressed in quantitative terms.

Budgeting is

technique for formulating budgetary control, on the hand; refer to the principles, procedures
2

and practices of achieving given objective through budgets.

Definition:
According to Rowland and William have differentiated the three terms as;
Budgets are the individual objective of a department, etc., whereas Budgetary many be said
to be the act of building budgets. Budgetary control embraces all and in addition includes the
science the budgets to affect an overall management tool for the business planning control.

1.3 NEED FOR THE STUDY

Finance is so basic that it cannot be considered a separate function. Evaluation of
financial performance of an organization is continuous process for understanding the
direction in which the organization is heading so as to plan, decide and implement the future
course of action with a view to achieve the present objectives in the interest of the
organization.

Financial management is a part of total management and it has more

importance when compared to the rest of the concepts of management studies, because of its
nature, scope application acceptability standards.
The situation created an interest for me to study and analysis the financial aspects of
this VCHD. Through budget and budgetary control of an organization is moving so as to
decide and compliment the future course of action to achieve the objectives of the
organization. The firm investment and financing decisions unavoidable and continuous. In
order to make them rationally, the firm must have a goal. It is generally agreed in theory that
the financial goal of the firm should be the maximization of owners economic welfare could
be maximized be maximizing the shareholders wealth maximization is theoretically logical
and operationally feasible normative goal for guiding the financial decision making.
Budgetary control is a strong tool of business to maximize profits. The management is
therefore always trying to focus on the proper planning. Effective coordination and control in
order to maximize profits. There are various managerial tools and techniques useful for the
management to plan and control business operations. Budget is also used for the management
to plan and control business operations and it is widely used as a standard device of planning
and control.
Budget provide as a valuable and aid to management through planning , coordination
and control. It is a tool which measures the managerial performance of an organization.

1.4 OBJECTIVES
To ensure planning for future by setting up various budgets. The requirement and
expected performance of the enterprise are anticipated.
To create definite ideas in terms of number about the long term and short term
desired aims and objectives of the enterprise.
To perform integration and coordination among the different departments and
activities.
To motivate and related departments and persons for attaining the desired ends
and goals.
To operate various cost centers and departments with efficiency and economy.
Elimination of wastes and increase in profitability.

1.5 METHODOLOGY
Methodology is a systematic procedure of collecting information in order to analyze
and verify a phenomenon. The collection of information is done by two principle sources:
1. Primary Data
2. Secondary Data

Primary Data:
It is the information collected directly without any references. In this study it is to be
gathered through interviews with concerned officers and staff, either individually or
collectively. Some of the information were verified and supplemented through personal
observation. The data collection includes conducting personal interviews with the concerned
officers of officers of finance department of Visakhapatnam Dock Labor Board.

Secondary Data:
It was collected from already published sources such as pamphlets of annual reports,
returns and internal records. The data collection includes collection of required data from
annul records of Visakhapatnam Dock Labor Board and reference from text books and
journals relating of financial management.

1.6 LIMITATIONS
The budgetary control system is however not free most short comings which are a
follows.
This system proves useless in those firms where policies and processes,
techniques, etc., are frequently changing since it does not take into account such
charges.
It is very costly in case of small firms and serves no purpose in the event of
abnormal situation, such as strikes, lockouts, etc.
There are many factors over which the management has no control but the
budgetary control depends on them. In that case, if it is prepared, it may be
inaccurate and fails to serve the purposes for which it is meant.
One of the most limiting factors for a thorough and complete study of the subject
has been the insufficient period of study.
Elaborate study was not possible due to lack of financial resources.
Executives are not available because they were involved in various activities in
dealing with their market and stores.

2.1 INDUSTRY PROFILE

INTRODUCTION:
Visakhapatnam Port is one of the 12 major Ports in India. The port lies on the eastern
coast of India and midway on the rail route between Kolkata to north-east and Chennai to the
south. It is situated at the mount of river Magadri Gedda, and adjoining the Dolphin
Nose a Hill nearby projecting into the Bay of Bengal. This Port has been so laid out as to
have the advantage of natural protection offered by this Hill to the ships carrying cargoes
from cyclones which are usual on this coast during the North east monsoon. And, another
favorable and important factor to this Port is a low tidal range. Thus, the Visakhapatnam Port
is considered as a natural port, attracting the many cargo ships for shipments etc.
Visakhapatnam Port started functioning during the year 1933 and later formed into a
Trust under Major Port Trusts Act. In Visakhapatnam Port, there are two major cargo
handling autonomous bodies, viz., Visakhapatnam Port Trust & Visakhapatnam Dock Labour
Board (VDLB). The Visakhapatnam Dock Labour Board was established during 1961 under
Dock Workers (Regulation of Employment) Act 1948. However, during Sep.2008, the
Visakhapatnam Dock Labour Board merged into Visakhapatnam Port Trust (VPT) as one of
its Divisions, as Cargo Handling Division, in Traffic Department.
Ports are commonly known as places of safe shelter with necessary infrastructure for
purpose of trade. In that view there is airports; seaports are gateways to the world. Seaport is
the essential link, in the international maritime transport chain. Seaports play a very
important in one countries growth.
At present over 80% of all international trade goes up by sea. In the case of
development country like ours percentage of international trade would be in the range of
70%-80%. So there is an imperative need for all the sea ports in our country to expand very
rapidly to have economic growth and for well-being of our country in all its various factor.
Technically speaking port is one which handles not less than one million tons of cargo
annually and which possess harbors and other facilities to receive ships of 4000 DWT or
more. Example: Mumbai, VSP etc.
In case of developing countries like ours there is imperative need for growth of
foreign track certain important machinery and equipment. Thus international trade is the
principal generates of economic growth.
Growth occurs, where trade increased while growth itself creates more trade. Ports are
meant to provide sea borne vessels, some basic services such as dock, harbor, or as berth
8

facilities for the ships and landing facilities for the cargo. A part from this port provides
cranes, ware houses, labour for cargo handling transport.
India is situated at the head of the Indian Ocean with a coast-line of about 3535 miles,
and occupies an important place in the maritime world. There are about 232 ports in India, of
which 12 are major ports, 14 intermediary ports, 132 minor ports and 76 sub-ports. As a
country having a coastal line of about 6000 kms and major ports and minor ports are situated
along the coastal line and at sea islands.

The twelve ports are:

Kandla port

(Gujarat)

Mumbai port

(Maharashtra)

Para deep port

(Orissa)

Jawaharlal Nehru port

(Mumbai)

Cochin port

(Kerala)

Chennai port

(Tamil Nadu)

Kolkata port

(West Bengal)

Tuticorn port

(Tamil Nadu)

Visakhapatnam port

(Andhra Pradesh)

Haldia port

(West Bengal)

Mormugoa port

(Goa)

Mangalore port

(Karnataka)

In these twelve ports, six ports are situated on East coast and are as follows:
Chennai port

(Tamil Nadu)

Para deep port

(Orissa)

Kolkata port

(West Bengal)

Tuticorn port

(Tamil Nadu)

Visakhapatnam port

(Andhra Pradesh)

Haldia port

(West Bengal)

The remaining six ports are situated on west coast:

Kandla port

(Gujarat)

Mumbai port

(Maharashtra)

Jawaharlal Nehru port

(Mumbai)

Mormugoa port

(Goa)

Mangalore port

(Karnataka)
9

Cochin port

(Kerala)

ISO9001, ISO14001&OHSAS18001

JAMMU&
KASHMIR

Major portsof India

HIMACHAL
PUNJAB
ARUNACHAL
PRADESH

LUCKNOW
HARYANA

ASSAM

SIKKIM
UTTARPRADESH

RAJASTHAN

NAGALAND
MEGHALAYA
BIHAR

Kandla

BENGAL

MADHYAPRADESH

MANIPUR
TRIPURA
MIZORAM

GUJARAT

Kolkata/Haldia
ORISSA
Paradip

JNPT
Mumbai

MAHARASHTRA
ANDHRA
PRADESH

Mormugao

VPT

GOA

NewMangaloreKARNATAKA
Ennore
Koch
i
KERALA

TAMILNADUChennai

Tuticorin

10

The medium ports in India are:

Bedi Bunder
Bhavnagar
Calicut
Cuddalore
Gopalpur
Kakinada
Karwar
Magdalla
Mandavi
Navlakhi
Nagapattinam
Okha
Porbandar
Redi
Salaya
Sikka
Trivandrum
Veraval

The minor ports of India are:

Azhikkal
Belikeri
Beypore
Cannanore
Coondapur
Dahej
Jafrabad
Jakhan
Kasergode
Mundra
11

Neendakara
Pindhara
Pipavav
Ponnani
Tellicherry

The Private ports in India are:

Cocanada
Tuticorin Container Terminal
Pipavav
Adani

The main activities of port are:

Maintenance of port approaches, navigable channels, and alongside berths,
dredging, conservancy, hydrographic surveys.
Pilot age, towage, berthing and unberthing of visiting ships.
Handling, warehousing and transportation of goods in port area.
Civil, mechanical and electrical engineering and maintenance of harbor crafts and
plants.
Firefighting and fumigation.
Stores.
Medical, welfare, housing etc.,
Management of port properties and estates.
To carry out various activities, each port engages different types of Labour. The
workers employed by the port authorities aregenerally called Port Workers and they work
on shore. For work on board the ship, workers registered with Dock Labour Board (DLB)
known as Dock Labour are engaged. The DLB has been amalgamated into VPT w.e.f.
26.09.2008 duly renamed as CHD (Cargo Handling Division) functioning under the control
of Traffic Manager.

Growth of port
Ports are classified as Major ports, Medium ports and minor ports. The Major Port
Trust Act, 1963 and the Indian Sea Ports Act, 1908, generate the Major ports and the rules
and regulations framed there under.
Each Major port has a Board of Trustees representing various interests connected with
12

the port operations and the shipping industry. The Chairman of each Major Port Trust is
appointed by the Central Government. Besides Chairman, the Port Trust Board consists of
Deputy Chairman, representatives of Customs, Railways, Defense, State Government, Ship
owners, Shippers, etc. All the members of the Board, Chairman and the Deputy Chairman are
part time members.
VISAKHAPATNAM PORT VIEW
Exim park

STP

VISAKHAPATNAM PORT VIEW

EQ

WQ 7

OHC

EQ9

BELT CONVEYOR

Southern Lighter ca nal

GC
In n e

-1

-2

L
OI I NG
OR

IP
SL Y S
A
W

Darga
Hill

MO

Ross Hill

CB

Turning
basin

r Harbour Channel

LP

Eastern break-water

EQ 2

Dock
yard

North
Break water

FISHING
HARBOUR

M
PB

Turning
basin

Hindustan
Shipyard
Limited

Visakhapatnam
d
oa
City
R
h
ac
Be

Ar

BELT CONVEYOR

EQ 3

AOB

EQ 1

rn
OR 1

W Q1

s te

WQ 2

We
OR 2

West
ern A
rm

EQ

EQ 4

rth

W Q3

No
FB

A rm
N o rthern

W Q4

EQ

Indian
NAVY

EQ

WQ 5

Outer Harbour channel

Dolphins Nose Hill

Sand
Trap

Proposed berths

OS

TT

ak w
bre
n
r
the
Sou

ater

10

Visakhapatnam was an ancient port city, which had trade relations with Middle East
and Rome. Ships were anchored at open roads and loaded with cargo from Visakhapatnam
shore by means of small boats.
Visakhapatnam Port is one of the major ports on the eastern seaboard of Bay of
Bengal at a latitude 170 41N & longitude 83018E. It is situated in between Kolkata &
Chennai Ports. It has acted as a catalyst in the process of Industrialization of its hinterland
along with other ancillary industries. The Port plays a dynamic role in fostering accelerated
development in the region shall contributed significantly to the National Development.
13

NaturalHarbour:
Visakhapatnam is one of the best, natural ports in India and its location provides
protection from cyclones, which strikes the east coast regularly during May/November. The
Dolphins Nose hills which is to the south of the entrance channel, Ross and Durga hill
which are to the north of the entrance channel are land forms which provide tranquil waters
for the port for the outer harbor, to artificial break waters provide necessary conditions for
tranquil waters. This low range of a maximum of 1.82 meters this section of the sea is
advantages for the location of the port.

History:
The origin of Visakhapatnam goes back as far as the 6th Century, when it formed a
port of the famous kingdom of kalinga in 6th century A.D. Kalinga was conquered by the
chalulkyas of Bandai and in the 7th century by eastern chalulkyas, which led to the
establishment of the avenge kingdom under Vishnu Vardhan 1 (615 633 A.D.).
Visakhapatnam, the anglicized from of which is Visakhapatnam is an ancient town.
According to the district manual writers 1989, in the early years of 14th Century Kullotunga
choler of the Andhra Dynasty visited the presented site of Visakhapatnam and was so pleased
with the place that he built a temple dedicated to Issaquah. The sea has since engulfed this
temple.
In 1858 a survey partly stressed the need for a major port between Madras&Calcutta.
A detailed report called Visage the port of central provinces in 1877 made out a strong case
of the establishment of a port. However this proposal was temporarily frozen due to the
advent of the First World War.
It is only in 1914, that the Bengal Nagpur Railway initiated a proposal for a harbor at
Visakhapatnam. Colonel Cart Wright Reid of the British Admiralty initiated a proposal for
the construction of a harbor at the mouth of river meghadrigedda for B.N.Railways, which
was finally adopted in 1922. The construction started in 1927 and the port was open to ocean
going vessels in 1933 with the arrival of passenger ship S. S. Jala durga. The Bengal, Nagpur
Railway was responsible in constructing the port, as it needed a sea outlet for Manganese is
mined in the central provinces. (M. P.).
His Excellency Lord Wellington formally inaugurated the port, the then Viceroy &
Governor General of India on 19th Dec. 1933. The Island breakwater was constructed by
sinking 2 old ships Janis and Wellston which acted as a skeleton around which a rubble
mound was formed. Mr. W. C. Ash & W.B. Rattenbury was the engineer who played
14

prominent role in constructing this beautiful harbor. The port was constructed at a cost of
Rs.378 lakhs and when it was opened it consist of three berths & handled 1.3 lakhs tones of
Traffic.
Visakhapatnam was a minor port; ships were anchored in the open of shore area and
the cargo transported in small muscular boats. The gained the status of a major port in 1963
and it was in February 1964 that the Visakhapatnam port was constituted.

V.P.T Berths
Inner Harbor:
Multipurpose:

14

Oil

Mooring

Fertilizer berth:

--------------------Total:

18
---------------------

Outer Harbor:
LPG Terminal:

ORE:

GCB: (South/North): 2
OSTT:

Multipurpose:

--------------------Total:

8
---------------------

Location:
Visakhapatnam port lies on the Eastern seaboard of India in the state of Andhra
Pradesh, midway between Kolkata and Mumbai rail route. This harbor situated in the mouth
of Meghadri Gedda is natural and is connected to the sea by a narrow channel. It is a wellprotected deep-sea port formed by a turning basin and three arms. The approach to the harbor
is through a channel about 1km. in length.
Latitude 1741 North
Longitude 8318 East

15

With the protection afforded by a high promontory into the sea known as Dolphins
Nose and a low tidal range to a maximum of a 6 feet (1.82m), the location of the port is
ideal. Though the construction of the port is started in 1927, Visakhapatnam port took its
concrete shape in 1933 as a mono-commodity port initially and blossomed shortly into a
multi-commodity port with a variegated cargo profile.
This port is enriched with a naturally protected deep-water basin, most suitable for
deep draft berths. It is located in such a way that it offers protection from the cyclonic storms
which strike the East Coast, by a high promontory into the sea, popularly known as Dolphins
nose hill which is to the south of entrance channel. This port was the first port in the country,
to build an outer port.
Visakhapatnam Port Trust was an ancient port city, which had trade religious with
Middle East and Rome. The construction of harbor at Visakhapatnam was thought after the
transfer of power from East India Company to the crown. In fostering the countries foreign
trade and economic development Visakhapatnam is playing a vital role. Visakhapatnam is a
natural harbor such that surrounded by chain of hills providing safe anchorage to ships.
Notable among the chain of hills are Dolphins nose Ross hill.

Perspective plan for Visakhapatnam port 1996-2020:

The Port desires to ahead & peep into the future to enable it to formulate appropriate
developmental, operational &management strategies to fulfill to avowed policy of providing
a high standard & efficient port services to its customers clientele. Accordingly, the research
planning department of port trust was entrusted with the task of preparing the perspective
plan in consultation with the other developments of the port & concerned authorities
associated with the port industry. The study divided into 4parts.
Technology Perspective.
Cargo Perspective.
Developmental Perspective.
Organization Perspective.
The main aim of this perspective plan is to provide qualitative services a service no
way second to that of services provided by the other party in the world to its customers,
through adequate & efficient port facilities that meet & fulfill the demand from the increasing
cargo throughout from the port to year.

16

Environmental Improvement Measures:

Port gives importance to the environmental protection. Plantation of 1, 40, 000 plants
to provide green belt and mitigate dust pollution. Purposed in 1998-1999, 25000 Plants.
EnvironmentalPark in Kailasa hills amount spent so far is an Rs.8.5 Crores.

Salient features of VPT:

Opened in 1933 with 3 berths and initial investments Rs.3.7 Crores. Cargo
throughout in the first year of operation was Rs.1.3 lakh tones.
First port to construct a deep draft outer port way back in 1967 to accommodate
large iron ore and oil carriers up to 1, 50, 000 DWT.
First port among the major ports of India to construct a deep draft bulk berth
having draft up to 16m way back in 1976.
First port among the major ports of India to introduce computerization.
First port on East Coast of India to accommodate Suezmax tankers drawing 270
MLOA alongside berth.
Recipient of Best Port of the Nations award in 1988-1989 for highest sale of
efficiency.

Objectives of Port:
The main objective the port is to facilitate the import & export cargo on sea through
ships. By this the very benefit that occurs to the nation follows:
a) Securing the required goods for the country.
b) Exporting the surplus cargo from the country.
c) Maintaining the economic balance within the country.
d) Earning foreign exchange to the country.

ORGANIZATIONAL STRUCTURE OF THE COMPANY

Set Up of the Organization:
Each major port has a Board of Trustees representing various interest connected with
the port operations & the shipping industry. The chairman of each major port trust is
appointed by Central Government Besides, Chairman the port trust Board Comprises Deputy
Chairman, representatives of Customers, Railways, Defense, State Government, ship owners,
shippers, Labour etc. All members other than the Chairman & Deputy Chairman are port
time members.

17

There are 10 departments in Visakhapatnam Port Trust and those departments are
categorized under 2 heads:

Non-Operational Departments

Operational Departments

NON-OPERATIONAL DEPARTMENTS
Administration Department
Finance Department
Personnel Department
Researchs Planning Department
Materials Management Department
Medical Department

OPERATIONAL DEPARTMENTS
Marine Department
Traffic Department
Mechanical Department
Engineering Department

FUNCTIONS OF DIFFERENT DEPARTMENTS

1. Administration Department: The Secretary heads the department. The functions
of this department are like General Administration Policy, Board matters, legal
matters & Co-ordination and Public Relations/Guest houses.

2. Accounts Department: Financial adviser & Chief Accounts Officer head this
Department.

The functions of this department are Managing Finance matters,

preparation and computation of budgets; inter audit and revenue realization etc.

3. Personnel Department: The Department is headed by manager (Operations).

The matters related to personnel policies and the recruitment of employees,
sanctioning of posts, their welfare, needs, training on personnel matters & Industrial
relations etc. It is responsible for creating and conducting harmonized relations in the
organization, so as to achieve maximum productivity & better facilities in the work.

4. Research & Planning Department: This Department consists of compiling

information, port statistics; project capital budgets, forecasting trade, traffic analysis
trade promotion, data processing of wage bills through Information Technology and
Telecommunications etc.
18

5. Materials Management Department:Chief material manager heads this

department. The function of this department is procurement of materials, storage of
stores & supply to all departments as per requirements & norms.

6. Medical Department: Chief medical officer heads this Department. It provides

health, sanitary & medical facilities to the employees of all Departments of Port Trust.

7. Marine Department: This is under the control of deputy conservator. It is

responsible for safe navigation of vessels and berthing, Pilotage, maintenance of
dredging the port, fire service and other functions of this department.

8. Traffic Department: Traffic Manager heads this Department. The activities of

this Department are responsible for smooth flow of traffic by allotting berths to the
ships visiting the port& collects berthing charges, rail traffic operations.

9. Mechanical Engineering Department: This Department is under control of

Chief Mechanical Engineer. It maintains all electrical & Mechanical equipment and
executed projects works regarding purchase & Installation of big electrical or
mechanical equipment.

10. Engineering Department: Chief Engineer heads this Department. The functions
of this department are construction of project works and maintenance of civil works
like building quarters & mainly berths etc.

The Chronological Events of developments in Visakhapatnam Port:

The need for a port in this part of the country was emphasized as early as in 1858 in a
report of a British Survey Party. This was underlined in the report titled Vizag, the Port of
Central Provinces (1877). Mr. E.S. Thomas, while submitting the proposals for creation of
the port in 1872 described it as the most natural and most easily formed port on the east
coast of India. The daughter of Sir Arthur Cotton described the Harbour as a natural outlet
for northern India by a direct railway to Allahabad and observed the location as a strategic
point on the eastern coast wherein comparably the `best Harbour can be made by a single
breakwater run out from the bold promontory of the Dolphins Nose.
It was only in 1914 that the proposal for construction of a Harbour at Visakhapatnam
was initiated by the then Bengal Nagpur Railway and in 1922 a proposal of Col. H.
Cartwright Reid of British Admiralty for the construction of a harbour at the mouth of river
Meghadrigedda was adopted.
The construction work, which started in 1927 continued up to 1933, and the first
19

commercial vessel S.S. JALADURGA of M/s. Scindia Steam Navigation Co., entered the
Port on the 7th October 1933 providing initially a sea outlet for ManganeseOre.
The Saga of the construction of the Harbour particularly forming of entrance channel, sinking
of two old ships `JANUS and `WELLESDONE to form breakwater instead of building a
wall in the sea were all feats in engineering and are subjects of discussion even today. Mr.
W.C. Ash and Mr. D.B. Rattenbury were the Engineers who played prominent role in
constructing this beautiful Harbour. His Excellency Lord Wellingdon, the then Viceroy and
Governor General of India formally inaugurated the port on 19th Dec. 1933.
Nestling among a chain of hills, the VizagHarbour is really one of the wonders of the
nature, as if it has been intended by God that a man in this area must benefit by a very safe
anchorage to ships. The entrance channel is protected by, two massive rock hills, namely
Dolphins Nose on the Southern side and Ross Hill on the Northern side and these two hills
shelter a bay which possessed sufficient depth for the ships which were engaged in sea trade
upto 1950s. The high promontory of the Dolphins Nose hill into the sea provides protection
from cyclones, which strike the East Coast. The low tidal range of a maximum of 1.82
meters is also advantageous for the location of the Port. The existence of this natural Harbour
has transformed the sleepy fisherman village once called as `Vizag into one of the fastest
growing industrial cities of the world.
The Port has striking similarities with DurbanPort of Africa in the sense that the later
is also surrounded by a hill on the South Side. It is due to this reason that Engineer Mr. W.C.
Ash studied DurbanPort before developing this Port. Mr. Chalapathi Rao, one of the famous
writers described the Docks and Harbour works of this Port as `Picassos cubist pictures. The
port Administration which was under Bengal-Nagpur Railway in 1933 passed through
different departments and Ministries of the Government. of India till its transfer to the Port
Trust in Feb. 1964 under the Major Port Trusts Act, 1963 as shown below:
1926-35

RAILWAY BOARD

1935-37

COMMERCIAL DEPT.

1937-42

COMMUNICATIONS DEPT

1042-44

WAR TRANSPORT DEPT

1944-46

DEFENCE (WAR) DEPT

1946-56

BENGAL NAGPUR RLY

1956-64

MINISTRY OF TRANSPORT

1964-FEB

TRUST, UNDER MPT ACT

20

When opened for sea going vessels in 1933, the port had only three berths with a cargo
handling capacity of 0.3 million tonnes. The chronological events of developments are
described in the succeeding paras.

1951-61: During this period, three jetty berths and one quay berth
(EQ.4) were constructed. One transit shed (T-5)
(T
was built and T-1
was upgraded.
To enable M/s. Caltex (renamed as M/s. Hindustan Petroleum
Corporation Ltd.) to establish a refinery and to facilitate discharging
crude oil and pumping petroleum products direct to/from the storage
tanks, an oil wharf consisting two oil berths was constructed in 1957.
During 1950s, slings and pallets for cargo loading/unloading were
introduced which were later augmented and replaced by grabs.
Electrical wharf cranes of 3 tonne capacity, fork-lift-trucks
fork
of 1 to 3
tonne capacity and a floating crane of 30 tonne capacity were procured during the 1950s. A
self-propelled
propelled 150 tonne floating crane, Bheema the first of its kind in major ports was
added to the fleet of craft. Facilities for discharge/pumping of mineral oils, through pipel
pipelines,
direct to the storage tanks of the refinery were introduced in 1957.

1961-71: In tune with the deployment of specialized ships for specific cargo and to fulfil the
long term agreement entered by the Government of India for exporting Bailadilla ore to
Japan, two captive berths were added in 1965.
In order to meet the long term ore export commitments to Japan, the system of
loading iron ore by semi-mechanised
mechanised means was dispensed with. A Mechanical ore handling
plant to load iron ore at the rate of 88000 TPH the first of its kind in the Indian Port Sector
and acclaimed as `Gem of Automation was built in 1965.
In response to requirements projected by a private fertilizer factory M/s. Coromandel
Fertilisers Ltd., a captive berth for unloading fertilizers
fertilizers was constructed in the year and leased
out way back in 1967 and thus earned the reputation of the first major port to introduce the
concept

of

privatization.

Mechanised

facilities

for

discharging fertilizer

raw

materials through conveyors were intr

introduced in 1968. Also, two multi-purpose
purpose cargo berths
were commissioned during 1966
1966-68 to meet increasing trade demand.

1971-81: The closure of the Suez Canal in the mid-sixties

mid sixties necessitated the deployment of
deep draft tankers in the global shipping. To meet this challenge, an oil mooring was
developed in 1976 to accommodate large crude ships. In consonance with the changing
21

technological trends in shipping and transportation systems, an outer port was commissioned
in 1976 to accommodate ships of size 150,000 DWT at a cost of about Rs.110 crores, which
stands out as the biggest expansion programme of the Indian Port Sector during the firth five
year plan. The outer port construction gave further fillip to the cargo throughput and in the
succeeding years, the cargo throughput at outer port dominated the founding port (inner
port). The primary objective of the outer port was to provide an outlet for export of iron ore
through deep draft bulk carriers.

1981-91: As a response to the increasing trading of oil by large crude carriers, an off shore
tanker terminal

to accommodate crude tankers upto 150,000 DWT was commissioned in

1985. In conformity with the increasing trading of bulk carriers of 50,000 to 85,000 DWT, a
General-cum-Bulk cargo berth to cater to ships upto 60,000 DWT was commissioned in
1985.

1991-2001:Keeping in view the changing needs of sea transportation system, the old jetties
were converted into a regular quay berth with more apron width in 1992 and 1994 to facilitate
installation of heavier loads. A multi-purpose berth to cater to ships upto 11 mtrs. Draft was
commissioned on 30.7.1995. An exclusive and specialized terminal for discharging LPG
from gas carriers at the outer harbour was constructed in 2001.

2001-2006:
Berths: The first BOT project - Container terminal at outer harbour - commenced its
operation in June, 2003 which was concession to Visakha Container Terminal P Ltd.,- A
Joint venture company owned by Dubai Port International and J.M. Baxi (P) Limited. Two
new berths in the extended Northern arm of InnerHarbour (EQ.8 & EQ.9) were developed on
BOT basis by M/s.Vizag Sea Port Pvt. Ltd., a Joint Venture between Portia Management
Services, U.K. & M/s.Gammon India Ltd., Mumbai and commissioned during 1994 and
1995. One multipurpose berth WQ-7 in the inner harbour was commissioned on 29th July
2005 by Hon able Minister for Shipping , Road Transport and High ways.

Other facilities:One 50 tonne BP tug was commissioned in the year 2000-01. Ten No.s of
15 Tonne Electric Wharf cranes were commissioned in 2001. Mechanised dust suppression
system designed and erected by MECONS was commissioned on 5th June 2002. One rail
mounted stacker of 2700 TPH capacity was commissioned on 28th May, 2003. One No. fire
float of Agni Class-I was commissioned on 2nd September, 2003. Four wharf cranes of 20
Tonne were commissioned in 2004-05. One FRP launch was commissioned on 2nd January,
2005. One dredger built by M/s. Hindustan Shipyard Ltd., was commissioned on 9th Feb.
22

2005. Information Technology was introduced into port operations 1st. April, 2002.

OUR VALUES
Quality and productivity in performance
Concern for safety and environment
Responsive and Transparent administration
User friendly attitude
Teamwork
A learning environment
Innovation

OUR STRENGTH
Tranquil deep water berths to handle cape size and suez max vessals
Efficient port Railway system acclaimed as the best among major ports in the
country and ranked as one of the top ten railway divisions of the country
Economic stevedoring cost
Dedicated fecilities for bulk handling
Harmonious industrial relations
Quality service at optimum cost
Natural positional advantage for trading with countries like Bangaladesh, Myanmar,
South East Asia and far East and West coast of USA and Canada.

Coking coal facilities:

IRON ORE

BULK

23

SHORE EQUIPMENT
Description

Capacity

Availability in Nos.

Electric Wharf Cranes

10 T

11

Electric Wharf Cranes

15 T

10

Electric Wharf Cranes

20 T

04

47.05 T

02

Mobile Cranes ( 4 and 16)

Fork Lift Trucks

03 T

Fork Lift Trucks

10 T

01

Fork Lift Trucks

12 T

02

Top Lift Carrier

42 T

01

1400 HP

12

1430 HP

07

Locos ( General Traffic)

Locos ( O H C )

09

CONTAINER HANDLING FACILITIES

A state of the art container terminal has commenced its operation from 26-06-2003 by
Visakha Container Terminal Pvt. Ltd. by An SPV institute of a joint venture company
between the prestigious DubaiInternationalPort and M/s. JM Baxi & Co., Mumbai. The
terminal is the deepest terminal of the country with a facility to accommodate main line
vessels up to 15 M draft. The terminal has a dedicated rail facility to handle full rake of 45
wagons. The terminal has a potential to handle 5 lakh TEU in future years and is ideally
situated to serve as Container Hub Port" on the East Coast of India.

24

Intermediate port is one which handles not less than 1500 tonnes of cargo annually
and is important from the view point of passengers traffic defense and customers. Example
Kakinada, a port handling less than 1500 tonnes of cargo is termed as minor.
Example: Machalipatnam, Bheemunipatnam etc.
The major ports are governed by the major port trust act 1963 and the Indian ports act,
1908 and the rules and regulations framed under. Each major port has a board of trustees
representing various interests connected with the port operations and the shipping industry.
The chairman of each port trust is appointed by the central government. Besides, chairman,
there are representatives of customers, railways, defense, state owner ships etc.
All the members of the board other than the chairman and deputy chairman are part
time members.

The central government provides resources for the modernization and

development of major ports. Port mainly derives their revenues from cargo handled in their
port areas charges on the ships visiting their areas and other related charges.

The main sources of revenue from cargo traffic are:

Wharfage / handling fees, cargo related charges.
Crane hire charges
Rental from warehouses
Demurrage charges
Charges for providing rail & other transport, for the cargo Government and
providing water facilities for the visiting ships.

Similarly the main sources of revenue from ship traffic are:

Port Dues
Pilotage
Birth Hire
Survey & Measuring fees
Ship Repairs in dock areas, charges for water supply.
To carry out various activities, each port engages different types of labour. The
workers employed by the port authorities and generally known as port workers and they
work on shore. For work on the board the ship workers registered with labour board known
as DLB.
Thus in all major ports there will be large number of work force, based equipment
etc., giving a color of complex organization requiring high degree of skill, co-ordination,
cordial relation etc.
25

The dock workers (Regulation of employment) Act, 1948(SEC 9 of 1948)

Definition:
In this act, unless there is anything resurgent in subject or context.
BOARD means a C.H.D LABOUR Board established under section, 5 (A).
CARGO includes anything carried or to be carried in a ship or other vessel.
CARGO HANDLING DIVISION means a person employed in the vicinity of
any port of work in connected with loading, movement or storage of Cargoes or
work in connection with the preparation of ships or other vessels For the Receipt
of discharged of cargoes (or) leaving port. Private Sector Participation:
In keeping with general policy of liberalization and globalization of economy of the
Government of India, the Port sector has been thrown open to private sector participation.
Private Sector participation in provision of port facilities at various major ports is envisaged
in a big way. There is no legal bar to private sector participation in port facilities as per the
provisions of the existing Major Port Trusts Act, 1963. In order to handle the increase in the
sea-borne traffic on account of increase in foreign and coastal trade, major expansion is
required in the port infrastructure sector in the country and this will need mobilization of
substantial resources. Hence, the opening up of the port sector for privatization. It is expected
that privatization would also improve the efficiency, productivity and quality of services and
also bring competitiveness in port services. It is also expected that the private sector
participation would help bringing in latest technology and improved management techniques.
It is felt necessary to encourage the private sector participation in enhancing port capabilities
and also in modernization of port equipment.

26

2.2COMPANY PROFILE
CARGO HANDLING DIVISON
(Erstwhile Visakhapatnam Dock Labour Board)
INTRODUCTION:
India is situated at the head of the Indian Ocean with a coast-line of about 3535 miles,
and occupies an important place in the maritime world. There are about 232 ports in India, of
which 12 are major ports, 14 intermediary ports, 132 minor ports and 76 sub-ports,
Visakhapatnam Port is one of the 12 major Ports in India. The port lies on the eastern
coast of India and midway on the rail route between Kolkata to north-east and Chennai to the
south. It is situated at the mount of river Magadri Gedda, and adjoining the Dolphin
Nose a Hill nearby projecting into the Bay of Bengal. This Port has been so laid out as to
have the advantage of natural protection offered by this Hill to the ships carrying cargoes
from cyclones which are usual on this coast during the North east monsoon. And, another
favorable and important factor to this Port is a low tidal range. Thus, the VisakhapatnamPort
is considered as a natural port, attracting the many cargo ships for shipments etc.
VisakhapatnamPort started functioning during the year 1933 and later formed into a
Trust under Major Port Trusts Act.

In VisakhapatnamPort, there are two major cargo

handling autonomous bodies, viz., Visakhapatnam Port Trust & Visakhapatnam Dock Labour
Board (VDLB). The Visakhapatnam Dock Labour Board was established during 1961 under
Dock Workers (Regulation of Employment) Act 1948.

CONSTITUTION OF VDLB:
When the Dock Labour Board was not formed, the workers were supplied by the
middlemen to the stevedores as and when required. There was no proper basis of recruiting
workers to work in major parts. Their earnings depended upon the mercy of the intermediary
agencies. There was no proper basis for determining the wage rate. The demand for

the

dock workers depended upon the arrival and departure of vessels, the size of cargo and
seasonal cyclical fluctuations.
No regularity of employment and earnings coupled with the ignorance of workers,
made the intermediate agencies to exploit the Labour. They were paid less and made to
perform more work.

With the objective of regularizing the employment process and

providing fair earnings to the Labour working in Visakhapatnam port, Visakhapatnam Dock
Labour Worker (Regulation of Employment Scheme) was formed on 30-11-1959 by the
Government of India.
27

The Dock Labour Board maintains a list of employers who carry-out the work of
recruiting Dockworkers. The employers have to pay some amount towards the deposit,
depending up on the volume of workers carried by them. There are 45 employers under
registered scheme, and 66 employers under unregistered scheme 31-12-2001.
The Dock Labour Board is directly under the administrative control of the
Government of India. New Delhi. The Visakhapatnam Dock Labour Board is tripartite
body, which has representatives from Government side, representatives from employers
(Stevedores) and representatives from trade unions. Under the Dock Workers Regulation
Employment Act of 1959, the registered scheme was established and under the Dock
Workers Regulation Act of 1961, the unregistered scheme was established.
The Dock Labour Board collects levy from the employers for supplying the Human
Resources to them. The levy rate is usually fixed by the government of India out of this levy
the Dock Labour Board pays the wages to the workers and carries out the welfare
programmers for the dock workers. The levy rages are subject to change according to
Government decisions.
The main function of the board is to supply man-power to the employers of both the
schemes for cargo handling operations. Basically, it is labor intensive organization. About,
1500 employees / workers are working in the Board. There is a Board which comprises 12
members having equal representation from Central Government, the Dock workers and the
employers of shipping companies. The Chairman of the Board is the Chief Executive of the
Board. Deputy Chairman is whole time officer of the Board, who looks after the day to day
administration, and the Board is under the control of Ministry of shipping, Government of
India, New Delhi.

BOARD MEMBERS:
Four Members representing central government
Four members representing dock workers
Four members representing employers of dock workers / shipping companies.
The representative from the government is appointed by the government, and an I.A.S
officer is appointed as the Chairman.

They shall be whole time or part time Deputy

Chairman and also appointed by the central government.

BACKGROUND:
Before the formation of Dock Labour Boards, in all the major ports, the workers were
directly under the contract of the middlemen, who supplied the workers to stevedores as per
28

the needs. There was neither regularity in employment nor in the earnings of the Dock
workers. The demand for the workers was mostly dependent on the highly fluctuating traffic
of the cargo vessels. The exploitation of the workers was at the maximum level in those
days. The Royal Commission on labour which was constituted by the Government, reviewing
the deplorable service conditions of Dock labour, stressed in its report submitted to the
Government of India in 1931, the need to ensure the regularity of employment for Dock
workers and also the necessity to ensure adequate number of Dock workers available to load
and unload the vessels.
It was also recommended to ensure that the distribution of work depends on a system
rather than the wish of the middlemen, so that the workers get equal share. Basing on the
recommendations of the royal commission on labour, the Government of India has taken the
legislative action and passed the Dock workers (regulation of employment) Act of 1948, to
regularize the employment for the Dock workers and to improve the service condition of the
Dock workers.
In view of the recommendation of Royal Commission on a draft scheme was prepared
in 1939, but could not take off due to the employment act which was enacted by the
Government of India in 1948. It was based on the Dock workers (regulation of employment)
Act,1946, which clearly states that the Dock workers is a person employed in or in vicinity of
any Government worker, in connection with loading, unloading movements or storage of
cargoes. Cargoes have been defined as anything carried or to be carried in a ship or in other
vessels. The power conferred by subsection A (2) of section 5 of the Dock Workers Act of
1948 which was exercised by the Central Government and Visakhapatnam dock Labour
Board came in to effect from 5th June 1961.

Merger of Cargo Handling Division: (Erstwhile Visakhapatnam Dock Labour

Board) with Visakhapatnam Port Trust
Various Committees had gone into the working practices in handling dock work and
made recommendations for rationalization of the existing system. While dealing with the
merger issue, it is pertinent to note that earlier studies highlighted the need for a single cargohandling agency or a separate cargo handling department in the Port Trust to be entrusted
with all the cargo handling functions in the Dock area.
As per the Government directions and to gear up to changing trends in the Indian
economy, the Ports which act as an important link in the transport system, have started
initiating certain measures, which would make its services more competitive and productive.
29

One such measure is making provision for the merging DLBs with the Port Trusts.
The Government informed that the Dock Workers (Regulation of Employment)
(Inapplicability to Major Ports Bill) 1997 to provide for inapplicability of the Dock Workers
(Regulation of Employment) Act, 1948 to the dock workers of Major Port Trusts and matters
connected therewith are incidental there to was passed by the Rajya Sabha and Lok Sabha.
The Government of India communicated to initiate necessary steps for eventual merger in
terms of provisions of this Bill and the Ministry may be kept informed the developments
from time to time.
There are 12 Major Ports existed in India.

They are Calcutta, Para deep on the

Eastern Region, Visakhapatnam, Chennai, Tuticorin, Cochin, New Mangalore on the

Southern Region, Jawaharlal Nehru Port, Mumbai, Murmagoa Port and Kandla on the
Western Region and there were 7 Dock Labour Boards and presently only 2 Dock Labour
Boards i.e. Cargo Handling Division (Erstwhile Visakhapatnam Dock Labour Board) and
Kolkata Dock Labour Board are in existence, the rest of 5 Dock Labour Boards i.e. Mumbai
Dock Labour Board, Chennai Dock Labour Board, Cochin Dock Labour Board, Murmogoa
Dock Labour Board and Kandla Dock Labour Board were merged with their respective Port
Trusts.
As far as Cargo Handling Division (Erstwhile Visakhapatnam Dock Labour Board) is
concerned, there are three unions in existence, and for all practical purposes, these three
unions played vital role in maintaining harmonious industrial relations in the Port.
As regards the merger of Erstwhile Visakhapatnam Dock Labour Board with
Visakhapatnam Port Trust is concerned, several discussions were held with the unions on a
variety of issues, such as, service conditions, financial matters, welfare activities and issues
related to cargo handling operations.
The Ministry of Shipping, Road Transport & Highways have communicated its
approval on the draft Terms of Settlement with certain conditions and making minor
corrections. A Memorandum of Settlement under Section 12 (3) of the Industrial Dispute
Act, 1947 was arrived before the Asst Commissioner of Labour (Central), Visakhapatnam
with the Management of Visakhapatnam Port Trust, Visakhapatnam Dock Labour Board and
Workmen represented by its Unions for eventual merger of Visakhapatnam Dock Labour
Board with Visakhapatnam Port Trust. The Government of India had issued a notification
dated 26-09-2008 stating that the provisions of the Dock Workers (Regulation of
Employment) Act, 1948 (9 of 1948) shall cease to have effect in relation to that major port
with effect from 26th September, 2008.

Consequent to the issue of notification by the

30

Government of India, the Visakhapatnam Dock Labour Board has been merged with the
Visakhapatnam Port Trust wef 26th September, 2008 and re-designated as Cargo Handling
Division under the control of the Traffic Manager, Visakhapatnam Port Trust.
Now, this Visakhapatnam Dock Labour Board ceased to be in existence with its
merger with Visakhapatnam Port Trust during Sep, 2008, thereby all the functions hitherto
carried out by the erstwhile VDLB have been carried out by this Cargo Handling Division of
VPT.

Objectives of Cargo Handling Division:

To ensure adequate number of workers available for the efficient performance of
cargo handling work.
To ensure that dock Workers receive guaranteed minimum wages as per
provisions.
To ensure regularity of employment to dock workers.
To provide welfare amenities and medical facilities to workers.
To provide facilities like holiday wages, leave wages, LTC, retirement benefits
like pension, provident fund and gratuity.
To take care of the health and safety of workers.

Functions of the Cargo Handling Division:

The C.H.D. would take such measures, as it may deem necessary for furthering
the specified objectives. Such functions or measures include the following:Measuring the adequate supply for full and proper utilization of the Dock labour,
for the purpose of facilitating rapid and economic turn round of vessels and the
speedy transit of the cargoes through this Port.
Regulating the recruitment of men for carrying out the dock work and allocation
of dock workers to registered employers.
Determining and reviewing the number of dock workers, from time to time, on the
registers or records, by increasing or decreasing of work force to the requirement.
Keeping and maintaining and employers register. Entering or re-entering the
names of any dock employer and where circumstance so require, removing the
employer from such register

or record

the name of the registered employer,

either at his own request or in accordance with existing provisions.

Keeping, adjusting and maintaining, from time to time, such registers or records
as may be necessary, for dock workers, including the records of dock workers
31

temporarily not available and whose absence has been approved by the
administration.
Grouping or re-grouping of all dock workers into such groups as was determined
and reviewing thereafter.
Making provisions for the training and welfare of the dock workers.
Levying and recovering from the registered employers.
Making provisions for the health and safety measures in the places where dock
workers are employed.

Workers

Participation

in

Cargo

Handling

Division

(Erstwhile

Visakhapatnam Dock Labour Board)

While considering Cargo Handling Division (Erstwhile Visakhapatnam Dock Labour
Board) as the model employer the above perspectives the role of employee in the
management can be analysed and examined. The VDLB was constituted in 1959 under the
Dock Workers (Regulation of employment) Act, 1948.
Workers Participation in Management is one of the major aspects of national
programme towards betterment of the organization. In VCHD in every decision making
situation the participation both union and management are involved and it was implemented.
So management was providing quality output and at the same time employee gains more
benefits without any industrial disputes. In every aspect whether it is decision making part or
ideas and suggestions for improvement point of view the management taking the
consideration of workers.
To maintain amicable relations and provide welfare and recreation facilities Cargo
Handling Division (Erstwhile Visakhapatnam Dock Labour Board) has formed several
committees as detailed below.
They are:Safety Committee
Welfare Committee
Canteen Committee
Cultural Association
Sports Council
Quarters Committee
VDLB Educational Society
Cooperative Society
32

Cargo Handling & Booking of Workers:

Before a vessel enters into the port, the Government calls for tenders from the
shipping agents, clearing & forwarding agents, for loading or unloading of various cargoes
from the ships / vessels in a port. After finalizing these tenders, the government allots the
cargo handling work to the eligible shipping agents or the stevedores.

On receipt of the cargo handling order, the stevedore or shipping agent approach the
Cargo Handling Division (C H D) of the Port for the required labour force to handle the
cargo, by indenting the workers with the call stand of the C.H.D. Then the concerned staff in
the call stands, after due and proper planning, allot the required workers to the indenting
employers for the handling of cargoes. In the event of any shortage of workers, the C.H.D.
procures the remaining workers from cargo handling labour pool of Vishapatnam port trust
and the Cargo Handling Private Workers Pool.
At every port there is a call stand for workers maintained by its C.H.D. This looks
after the engagement of workers to the various berths for loading and unloading operations in
all 3 shifts in a day. The call stand staff also arranges transport to the workers to their allotted
work spots. The C.H.D. provide welfare facilities to the workers as per the Factories Act,
1948 which include place for rest, recreation , canteen, drying and storing of clothes etc., in
the call stand premises.

The call stand is manned by

SUPERVISOR

ASSISTANT SUPERVISOR

SENIOR INSPECTOR

BOOKING STAFF

DOCK SUPERRINTENDENT

33

PRODUCTION FUNCTION
The Cargo Handling Division of Visakhapatnam Port Trust, being a nonmanufacturing organization, the services rendered by it include the supply of dock labour to
the concern stevedores for efficient loading and unloading of various cargoes into ships
vessels for exports or imports:Different types of ores.

Imports:
Bulk cargoes.
General cargoes.
Food grains.
Heavy lifts on Deck.
Anthracite Coal.
Zinc ignites.
Alumina Powder Bags.
Gas Coke.
Ammonium Nitrate.
Petroleum Coke.
Iron ore fines.

Exports:
Rice in bags.
Wheat in bags.
Sugar in bags.
ManganeseOre.
Thermal Coal.
Pig Iron.
General Cargo.
Cement in bags.
Iron & Steel.
Soya Bean Meal.
Roofing Sheets.
Timber Logs.
H.C.F. Chrome

34

HR FUNCTION
Secretary:
Secretary of the Cargo Handling Division is responsible for advising the Traffic
manager on matters pertaining to procedure and for arranging general, statutory and special
meetings of the Board; He shall be responsible for compilation of the Boards annual
administration report placing the same for Boards approval and submission to the
Government in due time. He shall be in general control of the Boards Secretariat. He shall
deal with matters relating to Industrial Relations. He shall be responsible for compilation,
maintenance and furnishing of all labor statistics. He shall deal with cases of registration and
listing of employers. He shall assist the Traffic manager and carry out the functions delegated
to him by the traffic manager. He shall perform such other duties as may be entrusted to him
from time to time by the Chairman or the Traffic manager with the approval of the Chairman.

Senior Labour Officer:

Senior Labour Officer shall coordinate the functions of the Labour Officers appointed
under the two schemes of the Cargo Handling Division. He shall advise the Administrative
Bodies on all labor management matters. He shall assist the traffic manger in discharging of
his duties as the Administrative Body, Unregistered Scheme. He shall be watchful about the
labor situation and report to the Chairman/ traffic manager Chairman/Administrative Bodies
about any signs of labor unrest in proper time. He shall visit the work spots to settle disputes
that arise between the employers and the workers or among the workers and ensure that the
workers comply with the provisions of the scheme and rules and regulations of the Board. He
shall perform such other duties as may be entrusted to him by the Chairman or the Deputy
Chairman with the approval of the Chairman.

Administrative Officer:
Administrative Officer shall be incharge of all purchases and stores for the Board and
Administrative Bodies. He shall deal with all matters concerning lands, buildings and other
properties and assets of the Board. He shall be incharge of all vehicles and communication
systems of the Board. He shall be incharge of security of all properties of the Board. He shall
be the authority for allotment of Boards quarters.
He shall assist the Deputy Chairman in his functions as Estate Officer of the Board He
shall deal with all legal matters concerning the Board. He shall deal with matters relating to
organization & methods and Work Study including control of records. He shall attend to
matters relating to public relations. He shall perform any other functions that may be
entrusted to him by the Chairman with the approval of the Chairman.
35

Chief Accounts Officer:

Chief Accounts Officer shall maintain accounts of General Fund, Welfare Fund,
Provident Fund, Gratuity Fund, Pension Fund, Family Security Scheme Fund. He shall advise
the Board/Chairman son investments and financial matters. He shall prepare budget for the
funds maintained by the Board and scrutinizes the budget of the Registered Scheme and the
Unregistered Scheme. He shall exercise budget control in all the Divisions of the Board and
Administrative Bodies

He shall conduct internal audit of the accounts of the Board and

Administrative Bodies. He shall conduct periodical verification of assets and stores in all
Divisions of the Board and Administrative Bodies. He shall be incharge of all financial
transactions will regard to the funds operated by the Board. He shall deal with matters
concerning audit of accounts maintained by the Board and Administrative Bodies. He shall
coordinate the accounts work in the Registered Scheme, the Unregistered Scheme and the
Boards Division. He shall perform any other function that may be entrusted by the Chairman
or the Deputy Chairman with approval of the Chairman.

Personnel Officer:
Personnel Officer shall carry out the duties specifically lay down under clause 44 of
the Registered Scheme and clause 32 of the Unregistered Scheme. He shall deal with all
personnel matters, via, recruitment, training (including study leave), grievances, promotions,
applications for outside employment, retirements, maintenance of service records of workers
and staff of the Board and Administrative Bodies. He shall assist the Deputy Chairman in
processing the disciplinary cases reported by the Labour Officer and also in processing of
appeals of workers against the orders of the Labour Officers. He shall also assist the Deputy
Chairman in dealing with disciplinary cases against the employees of the Board. He shall
perform such other duties as may be entrusted to him by the Chairman or the Deputy
Chairman with the approval of the Chairman.

Deputy Chief Medical Officer:

Presently, the post of the Deputy Chief Medical Officer is being operated against the
post of the Chief Medical Officer.

Therefore, the duties and responsibilities of the Chief

Medical Officer is being looked after by the Deputy Chief Medical Officer.

The Deputy

Chief Medical Officer is the overall charge of the medical services preventive, promotive
and curative and is responsible for the smooth running of the Medical Department.

He shall

the administrative head of the Medical Division of the Board and make periodical/surprises
checks/visits of the Hospital and Branch Dispensary.
36

He shall be responsible for the

Sanitary Section and proper sanitation of the Boards Office, Call stands and Housing Colony
at Kailasapuram. He shall visit those places twice in a week for inspection and report to the
Chief Medical Officer.. He shall deal with the Unions in matters related to hospital working,
under the guidance of the Deputy Chairman.

He shall scrutinize the medical reimbursement

bills and recommend for sanction. He shall approve issues of special /specified drugs. He
shall be the Chairman/ Convener of Medical Boards for examination of cases for retirement
on medical grounds.

He shall examine all cases of age assessment, cases for first

appointment in DLB medically (pre-employment medical examination), cases of retired

employees/workers for commutation of pension, cases referred for medical examination for
loss in earning capacity (Workmens Compensation Act), case requiring light job and give his
opinion /report/recommendations.

He shall recommend cases requiring referrals to local

Government Hospitals, local private Hospitals and out-station Hospitals.

He shall be

responsible for the procurement of drugs and equipment recommended by the Drugs
Committee and Specialists attending the Boards Hospital.

He shall exercise budgetary

control and shall be responsible for the imp rest cash and sign all the vouchers. He shall
attend to any other duties as may be assigned by the Chairman or the traffic manager with the
approval of the Chairman.

Labour Welfare Officer:

Labour Welfare Officer shall ascertain what further welfare facilities are needed, how
best they can be provided and make suggestions for their establishment. He shall make sure
that the available welfare facilities provided under the Regulation or otherwise are being
properly maintained and utilized. He shall

ensure adequate supervision of the amenities

provided, especially as regards canteens, rest rooms, washing and toilet facilities and drinking
water. He shall examine grievances voiced by the dock workers and employees in respect of
welfare facilities and other amenities.

Asst Secretary:
Asst Secretary shall deal with all establishment matters like salary bills, annual
increments, conveyance allowance, TA & DA, LTC claims, advances, recovery of advances,
leaving including leave encashment, conveyance allowance. He shall be in charge of Boards
Library. He shall perform such other functions that may be entrusted to him by the Chairman
or the Deputy Chairman with the approval of the Chairman.

37

Asst. Executive Engineer:

Asst Executive Engineer shall be in charge of maintenance of Colony at Kailasapuram
including amenity buildings like Branch Dispensary, Junior College, High School, Recreation
Centre, Kalyanamandapam and also the maintenance of Office Building, Call stands and
Hospital. He shall be responsible for arranging regular water supply for all the above
Buildings. He shall be responsible for maintenance of electrical fittings of the above
Buildings and street lighting in the Colony. He shall supervise all construction works both
capital and minor works. He shall be responsible for procurement of cement, steel and other
Engineering Stores and capital works and maintenance works and also be the overall incharge
of the Engineering Section. He shall prepare estimates and detailed drawings for the works.
He shall prepare Tender Schedules/Agreements. He shall assist the Chief Accounts Officer in
preparation of budget estimates/ revised estimates pertaining to capital works and
maintenance works. He shall process contract bills after check measurement and effecting
recovery for the stores issued by the Department to Contractors.

Accounts Officer:
Accounts Officer shall be in charge of all financial transactions of Funds operated by
the Administrative Body, Registered Scheme and maintain accounts of the Funds. He shall be
responsible for collection of Wages (including piece-rate wages) levy and other dues from
employees in proper time. He shall advise on investments and financial matters of the
Registered Scheme. He shall be responsible for wages and other payments to the workers in
proper time and for collection of advances and other dues from them as per recovery advices.
He shall prepare budget for the funds maintained by the Administrative Body, Registered
Scheme. He shall deal with matters concerning audit of accounts maintained by the
Administrative Body.
He shall be responsible for proper assessment of levy contributions, dues payable to
the Administrative Body and collection thereof. He shall be responsible for submission of
monthly and annual statistics to the Board. He shall perform any other functions that may be
entrusted by the Chairman or the traffic manager or the Administrative Body, Registered
Scheme, with the approval of the Chairman.

Labour Officer:
The Labour Officer shall be in charge of allocation of workers. He shall visit the work
spots to see that the work goes on efficiently. He shall settle disputes that arise between the
employers and the workers or among the workers and ensure that the workers comply with
38

the provisions of the Scheme and rules and regulations of the Board. He shall be sanctioning
authority for casual leave/earned leave/sick leave and processing of applications for
advances, etc to the workers. He shall deal with all disciplinary matters. He shall be
responsible for submission of monthly and annual statistics relating to employment of
workers. He shall advise the Administrative Body on all labor management matters through
the Senior Labour Officer. He shall be in charge and submit reports to the Deputy Chairman
about any signs of Labour unrest in proper time. He shall perform such other duties as may be
entrusted to him by the Chairman or the traffic manager with the approval of the Chairman.

Medical Officers:
The Medical Officer shall attend to shift duties in Causality to render outpatient/emergency treatment. He / She shall also work in General Shift when posted either at
Main Hospital or Kailasapuram Dispensary. He/She shall make rounds of various wards
during 2nd and 3rd shifts and attend to inpatients. He/She shall attend to any other duties as
may be assigned to him/her by the Chairman or the Chief Medical Officer with the approval
of the Chairman.

Hindi Officer:
The Hindi Officer shall be responsible for implementation of Section 3 (3) of Official
Language Act. She shall conduct Official Language Implementation Committee Meetings for
every quarter. She shall be responsible for Hindi Training Programme of Officers and
Employees. She shall be responsible for conducting Hindi work-shops. She shall perform any
other work that may be entrusted by the Chairman and with the approval of the Chairman.

Assistant Director (Systems):

Asst Director (Systems) shall be responsible to ensure convenient methods for
adoption of the computer media for wages/pay roll calculations and billing in consultation
with the Labour Officers and Accounts Officers. He shall be responsible to plan and propose
additions/ alterations for the existing system for better performance stage by stage. He shall
be responsible to plan improvement to the existing system by creating a computer section. He
shall be responsible to the proper implementation of the systems and generate required
output. He shall be responsible to look after the proper upkeep and maintenance of all aspects
of the computer Centre. He shall be responsible for procuring, storing, issue and usage of
computer stationery in consultation with the Administrative Officer. He shall be responsible
to propose such additional configurations as may be feasible for achieving better and greater
satisfaction of the users divisions. He shall also attend to such other duties as may be
39

entrusted by the Chairman and with the approval of the Chairman.

Duties of safety officer:

To advise the concerned department in planning and organizing measures
necessary for the effective control of personal injuries;
To advise on safety aspects in all dock work and to carry out detailed job safety
studies of selected dock work.
To check and evaluate the effectiveness of the action taken or proposed to be
taken to prevent personal injuries.
To advise the purchasing and stores departments in ensuring high quality and
availability of personal protective equipment.

WORK ACTIVITIES:
Port and Docks are services industries and play on important role in the economy of
a country. They are

the

is the main activity that is

gateways

of export and import of cargo. Handling of cargo

carried out through port and docks. Beside there are a large

number of ancillary and supportive activities that go on simultaneously with

cargo

handling with activities. There is dredging, maintenance of navigational channels, berthing

of ships that comes into the ports, piloting them

for the high sea, maintains and repairing of

ships, signaling them. Thus ports and dock are center of multifarious activities and provide
employment to a large number of people. The dock labor board, Visakhapatnam is service
industry. The nature of work performed here is nothing but handling of cargo.

The CHD

has two schemes namely RS and URS, both for workers and stevedores. It applies gangs of
workers to stevedores i.e. Agents

who under take the operation of loading and unloading

of cargo.

As on 1-06-2014

REGISTERED SCHEME

STRENGTH

Sr. Tally clerks

53

Winch drivers

139

Tindals

13

T/signal man

78

Mazdoors

471
TOTAL

754

40

UN-REGISTERED SCHEME

STRENGTH

Masteries

58

Tindals

Casual Mazdoors

11

Casual Mazdoors(daily wage)

303

TOTAL

381

STAFF

STRENGTH

Class-I

11

Class-II

03

Class-III

71

Class-IV

47

Total

132

Registered scheme workers

754

Unregistered scheme workers

381

Total workers strength

1135

Total staff strength

132
TOTAL

1267

Managerial Staff
Class 1:
Secretary
Administrative Officer
Assistant Secretary
Senior Labor Officer
Personal Officer
Labor Welfare Officer
Chief Accounts Officer
Chief Medical Officer
Deputy Chief Medical Officer
Accounts Officer(R)
Assistant Executive Engineer

41

Class 2:
Accounts Officer (L)
Labor Officer
Assistant Director (Systems)
Hindi Officer
Assistant Engineer

Class 3:
Office Super dent
Head Assistant /A.W.O.
Senior Assistant
Senior Investigator Junior Assistant
Clerk
Junior Clerk
Vigilance Inspector
Telephone Operator
Senior Driver
Typist-Cum-Telephone Operator
I.O.W. Gr- ii
Overseer
Fitter
Mason Gr- II
Senior Staff Nurse
Senior Pharmacist

Class 4:
Mason Gr- II
Pump Attendant
Khalasi
Gardener
Record Sorter
Messenger
Naik
Senior Watch Man
Driver
42

Gesture Operator
F.N.O.
Ward Boy
Sanitary Zamedar
Sanitary Khalasi

Conclusion:
On the recommendations of the Royal Commission on Labour submitted to the
Government in 1931, the government of India has taken the legislative action and passed the
Dock Workers (Regulation of Employment) Act, 1948. The Visakhapatnam Dock Labour
Board was constituted under the Dock Workers (Regulation of Employment) Act, 1948.
Under the said act, two schemes viz., The Visakhapatnam Dock Workers (Regulation of
Employment) Scheme, 1959 and The Visakhapatnam Unregistered Dock Workers
(Regulation of Employment) Scheme, 1968 were formulated.
The Visakhapatnam Dock Labour Board is intended to ensure great regularity of
employment for Dock workers and to ensure that an adequate number of workers are
available for the efficient performance of the Dock workers. VDLB being a nonmanufacturing organization, the services rendered by it are, supply of labour to stevedores for
loading and unloading of cargo for exports and import.

The Welfare amenities to the

employees & workers are extended to a greater extent and meeting all the statutory and nonstatutory requirements. VDLB is having very good environment in these labour management
relations because it has laid down all basic policies and procedures in a constructive attitude
for maintaining harmonious industrial relations which is very important to reach the target of
production and productivity of the organization.
In the year 1991, the Government has introduced new Industrial Policy in which the
Port sector was considered and one of the measures taken by the Government is to merge
Dock Labour Boards with the respective Port Trusts. Accordingly, five Dock Labour Boards
have been merged with respective Port Trusts and there are two Dock Labour Boards
remaining to be merged with the respective Port Trusts viz., Visakhapatnam Dock Labour
Board and Calcutta Dock Labour Board. The Ministry of Shipping, Road Transport &
Highways have communicated its approval on the draft Terms of Settlement with certain
conditions and making minor corrections. A Memorandum of Settlement under Section 12
(3) of the Industrial Dispute Act, 1947 was arrived before the Asst Commissioner of Labour
(Central),

Visakhapatnam

with

the

Management
43

of

Visakhapatnam

Port

Trust,

Visakhapatnam Dock Labour Board and Workmen represented by its Unions for eventual
merger of Visakhapatnam Dock Labour Board with Visakhapatnam Port Trust.

The

Government of India had issued a notification dated 26-09-2008 stating that the provisions of
the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948) shall cease to have
effect in relation to that major port with effect from 26th September, 2008. Consequent to
the issue of notification by the Government of India, the Visakhapatnam Dock Labour Board
has been merged with the Visakhapatnam Port Trust wef 26th September, 2008 and redesignated as Cargo Handling Division under the control of the Traffic Manager,
Visakhapatnam Port Trust.

44

3.1 A Theoretical Frame Work of Budget & Budgetary Control

Meaning& Need for Budget:
A budget is a plan for coordinating the various operations of the business expressed in
financial terms. It is a detailed schedule of prepared combination of various factors of
production which the management deems to be most profitable for the ensuing period.

DEFINITION:
Budget is defined as A financial and /or quantitative statement, prepared and
approved prior to a defined period of time, of the policy to be pursued during that period for
the purpose of attaining a given objective. It may include income, expenditure and capital.
An analysis of this definition reveals the following essentials of a budget: The budget is
monitory and/or quantitative statement of that policy. A budget is prepared prior to a defined
period of time. It is prepared for the definite future period of time. The policy to be followed
to attain the given objectives must be laid before the budget is prepared. Thus, a budget fixes
a target in terms of rupees or quantities against which the actual performance is measured. A
budget is a document which is closely related to both the management function as well as the
accounting of an organization.

Different Types of Budgets

Functional Budgets
A functional budget is a budget which relates to any of the functions of an
undertaking. The functional budgets commonly used are sales budget, production budget,
administration cost budget, capital expenditure budget, research &development cost budget,
cash budget etc.

Sales Budget
Sales being the principal budget factor, sales budget are the most important budget
and form the basis on which all the other budgets are built up. This budget is a forecast of
quantities and values of sales to be achieved in a budget period. Every effort should be made
to ensure that its figures are as accurate as possible because this is usually the starting budget
(sales being limiting factor on which all the other budgets are built up).
The sales manager should be made directly responsible for the preparation and
execution of this budget. In the preparation of the sales budget, the sales manager should take
into consideration the following factors.

45

Past sales figures and trends:

The compiler of the sales budget should be assisted by graphs recording sales of the
previous year and the general sales trend (upward and downward) should be noticed from the
graphs. The record of previous years sales is the most reliable basis as to future sales as the
past performance is based on actual business conditions. But in addition to the past sales,
other factors affecting future sales e.g., seasonal fluctuations, growth of market, trade cycle
etc., should be considered in the preparation of the sales budget.

Salesmens estimates:
In preparing the sales budget, the sales manager should consider the estimates of sales
received from salesmen because they can make more accurate estimates being in direct
contact with the customers. However, it should be seen that salesmens estimates should
neither be over optimistic nor too conservative.

Plant Capacity:
The budget should be within the plant capacity available and should ensure proper
utilization of plant facilities. Proposed plant extension should be allowed for in the
preparation of the sales budget.

Availability of raw material and other supplies:

Adequate supply of raw materials and other supplies should be ensured before preparing the
sales estimates. Sales estimates should be adjusted according to the availability of raw
materials if the raw materials are in short supply.

General trade prospects:

The profitability of the sales going up or down depends on the general trade
prospects. In this connection valuation information may be gathered from financial papers
and magazines such as Economic Times, The Financial Express, The Commerce, etc.

Seasonal fluctuations:
In preparation of the sales budget, seasonal fluctuations should be considered because
sales are affected by these fluctuations. In order to have an even flow of production, efforts
should be made to minimize the effects of seasonal fluctuations on sales by giving special
concessions or added inducements during the off seasons. The sales manager after taking into
consideration the above factors, should prepare the sales budget in terms of quantities and
amounts and the sales estimates must be analyzed for products, period and territories. The
sales budget should include an estimate of selling and distribution costs in addition to an
estimate of the total proceeds.
46

Sales Forecast & Sales Budget

A sales forecast may be just a guess of sales without taking into consideration
production capacity and may lack any objective to control the actual performance. On the
other hand estimate of the sales given in the sales budget is not a merge guess, it is based on
the plant capacity, availability of material, labour and working capital and many other
considerations. It is capable of being achieved, so it is amenable to control.

Production Budget
Production budget is a forecast of the total output of the whole organization broke
down into estimates of output of each type of product with a scheduling operations (by weeks
and months) to be performed and a forecast of the closing finished stock. This budget may be
expressed in quantitative (weight, units etc) or financial (rupees) units or both. This budget is
prepared after taking into consideration the estimated opening stock, the estimated sales and
the desired closing finished stock of each product. The following factors are considered in
preparing the production budget. The material, labour and plant requirements should
ascertain to have the desired production to meet the sales programme. The sales and the
production budget are inter-dependent because production budget is governed by the sales
budget is largely determined by the production capacity and by production cost.

Plant Utilization Budget

This budget lays down the requirements of plant capacity to carry out the production
as per the production programme. This budget is expressed in terms of convenient physical
units as weight or number of products or working hours.
The main functions of the plant utilization budget are. It will show the machine load
in each department during the budget period. It will indicate the overloading on some
departments, machine or group of machines and alternative courses of actions as working
overtime, off-loading, procurement or expansion of plants, sub-contracting etc., can be taken.
Idle capacity in some departments may be utilized by making efforts to increase the demand
for the products by providing after sales services, conducting advertisement campaign,
reducing prices, introducing lucky prize coupon, recruiting efficient sales staff service etc.

Cost of Production Budget

After determining the volume of output the cost of procuring the output must be
obtained by preparing a cost of production budget. This budget is an estimate of cost of
output planned for a budget period and may be classified into material cost budget and
47

overhead budget because cost of production includes materials, labour, and overheads.

Materials Budget
In drawing up the production budget, one of the first requirements to be considered is
materials. As we know, materials may be direct or indirect. This materials budget deals with
the requirement and procurement of direct materials. Indirect materials are dealt with under
the works overhead budget. The budget should be related to the production budget and the
period of the budget should be of short duration because this budget has an important bearing
on the cash budget. Material budget can be classified into material requirement budget and
procurement budget. The former gives information about the quantity of material required
during the budget period to attain the production target; while the latter provides the
information about the materials to be acquired from the market during the budget period.
Material procurement budget, taken into consideration the inventory of materials and the
materials on order at the beginning of the budget period and the anticipated inventory of
materials and the materials to be on order on the closing date of the budget period.

Master budget or summarized budget

The Master Budget is a consolidated summary of the various functional budgets. It
has been defined as a summary of the budget schedules in capsule form made for the
purchase of presenting, in one report, the highlights of the budget forecast. The master
budget is prepared by the budget committee on the basis of co-ordinate functional budgets
and becomes the target for the company during the budget period when it is finally approved
by the committee. This budget summarizes the functional budgets to produce a budgeted
profit and loss account and a budgeted balance sheet as at the end of the budgeted period.

Fixed budget
This budget is drawn for one level of activity and one set of conditions. It is a rigid
budget and is drawn on the assumptions that there is no change in budgeted level of activity.
It does not take into consideration any change in expenditures arising out of level of activity.
Thus, it does not provide for changes in expenditure arising out of changes in the anticipated
conditions and activity. A fixed budget will, therefore, be useful only when the actual level of
activity corresponds to the budgeted level of activity. But in practice, the level of activity and
set conditions will change as a result of internal limitations and external factors like changes
in demand and prices, shortage of materials and power, acute competition etc. it is hardly any
use as a mechanism of budgetary control because it does not make any distinction between
fixed, variable, and semi-variable costs and provides for no adjusted in the budgeted figures
48

as a result of change in costs due to change in level of activity. However, a fixed budget is
useful at the planning stage when it serves to define the board objectives of the organization.

Flexible budget:
It is defined as a budget designed to change in accordance with the level of activity
actually attained. Thus, a flexible budget gives different budgeted costs for different levels of
activity. A flexible budget is prepared after making an intelligent classification of all
expenses between fixed, variable and semi variable because the usefulness of such a budget
depends upon the accuracy with which the expenses can be classified.
A flexible budget is very useful for purpose of budgetary control because it
corresponds with changes in level of activity. It is helpful in assessing the performance of
departmental heads because their performance can be judged in relation to the level of
activity attained by the organisation. Cost ascertainment at different levels of activity is
possible because a flexible budget is prepared for various levels of activity. So it is helpful in
price fixation and sending quotations.

Performance budgeting
In conventional system of budgeting, the money concept was given more prominence
i.e. estimating or projecting rupee value for the various accounting heads or classification of
revenue and cost. Such system of budgeting was more popularly used in government
departments and many business enterprises. But in such budgeting system control of
performance in terms of physical units or the related costs cannot be achieved. These days
budgets are established in such a way so that each item of expenditure is related to a specific
responsibility center and is closely linked with the performance of that center. Developing
work programmes and performance expectations by assigned responsibility is the main issue
involved in fixation of performance budgets and is necessary for the achievement of the goals
and objectives of the enterprise.

Zero base budgeting (ZBB)

The use of ZBB as a managerial tool has become increasing popularly since the early
1970s. It is steadily gaining acceptance in the business world because it is proving its utility
as a tool integrating the managerial function of planning and control. It first came into being
when ex-president jimmy carter of the United States of America, then governor of the states
of Georgia, introduces it as a means of controlling state expenditure.
A budget represents a quantification of the firms objectives and the efficiency of budgeting
as a planning and control device depends upon the activity in which it is being used.
49

3.2 Budgetary Control:

Budgetary control is applied to a system of management and accounting control by
which all operations and output are forecasted as far ahead as possible and actual results
when known are compared with budget estimates.

Definition:
According to Brown and Howard a budgetary control is a system if controlling
costs,

which includes the preparation of budgets,

coordination the department and

establishing the responsibilities, comparing actual performance with the budgeted and acting
upon result to achieve maximum profitability. According to Weldon he criticizes budgetary
control as planning in advance of the various function of a business so that the business as
whole is controlled. The establishment of the budgets relating to the responsibilities of
executives to the requirements of a policy and the continuous comparison of actual with
budgeted result either to secure by individual action the objectives of that policy or to provide
firm basis for its revision. Budgets are the individual objectives of a department, etc whereas
budgeting may be said to be the act of building budgets. Budgetary control embraces all this
and in addition includes the science of planning the budgets to effect an overall management
tool for the business planning and control. Thus, budget is financial plan and budgetary
control results from the administration of the financial plan.
Process and Importance:
Management and many investors and bank loan officers have become increasingly
aware of the merits of formal business plans. The major technical work of a budgetary
accountant involves expected future and data rather than historical data.

There is one

philosophical difference. The advocates of budgeting maintain that the process of preparing
the budget forces the executives to become better administrators. Budgeting puts planning
where it belongs in the forefront of the manager mind. Budgeting is primarily attention
directing because it helps manager to become on operating or financial problems early
enough for effectively or action.

The major benefits:

Budgeting, by formalizing the managers responsibilities for planning compels
then to think ahead.
Budgeting provides definite expectations that are the best frame work for judging
subsequent performance.
Budgeting aids managers in co-ordination their efforts so that the objectives as a
50

whole harmonize with objectives of its parts.

Objectives of Budgetary Control

Budgetary control is planned to assist the management allocation of responsibilities
and authority to aid in making estimates and plans for future, to assist in analysis of
variations between estimated and actual results and to develop basis of measurement or
standards with which to evaluate the efficiency of operations. Budgeting is necessary to have
to explicit statement of expectations, communication, coordination and expectations as a
frame work for judging performance. The general objectives of budgetary control are as
follows.

1. Planning:
A budget is a plan of the policy to be pursued during the defined period of time to
attain a given objective. The budgetary control will force management at all levels to plan in
time all activates to be done during the future periods. A budget as a plan of action achieves
some purposes i.e., (a) Action is guided by well thought out plan because a budget is
prepared after a careful study and research. (b) The budget serves as a mechanism through
which managements objectives and policies are affected. (c) It is a bridge through which
communication is established between the top management and the operatives who are to
implement the policies of the top management. (d) the most profitable course of action is
selected from the various available alternatives. (e) A budget is complete formulation of the
policy of the undertaking to be pursued for the purpose of attaining a given objective.

2. Coordination:
The budgetary control coordinates the various activities of the firm and secure
cooperation of all concerned so that the common objective of the firm may be successfully
achieved. It forces executives to think and think as a group. It coordinates the border
economic trends and the economic position of an undertaking. It is also helpful in
coordinating the policies, plans and actions. An organization without a budgetary control is
like a ship sailing in a charted sea. A budget gives direction to the business and imparts
meaning and significance to its achievement by making comparison of actual performance
and budgeted performance.

3. Control:
Control consists of the action necessary to ensure that the performance of the
organization conforms to the plans and objectives. Control of performance is possible with
51

pre-determined standards which are laid down in a budget. Thus, budgetary control makes
control possible by continuous comparison of actual performance with that of the budget so
as to report the variations from the budget to the management for corrective action.
Thus, budgeting system interacts key managerial function performed at all levels in
the managerial hierarchy. But the efficiency of the budget as ma planning and control device
depends up on the activity in which it is being used. A more accurate budget can be
developed for those activities where direct relationship exists between inputs. The
relationship between inputs and outputs becomes the basis of developing budget and
exercising control.

Budget Manual:
A budget manual is defined as a document schedule or booklet which sets out, inter
alia, the responsibilities of the persons engaged in the routine of and the forms and records
required for budgetary control. Thus, it is a written document which guides the executives in
preparing various budgets. Budgets are to be drawn keeping in view the objectives of the
organization given in the budget manual. Responsibility and functions of each executive in
regard to budgeting are written down in the budget manual to avoid any duplication or
overlapping of responsibilities. Steps and the methods for developing various budgets and the
method of reporting performance against the budget are written down in the budget manual.
In short, it is a written document which gives everything relating to the preparation
and execution of various budgets. It should be clear and there should be no ambiguity in it.
The manual is divided into separate sections so that each manager can be issued only that
section appropriate to his work and responsibilities.

Budget Period:
This may be defined as the period for which a budget is prepared and employed. The
budget period will depend upon the type of business and the control aspect. For example in
case of seasonal industries (i.e., food or clothing), the budget period should be long enough to
meet the requirements of the business. From control point of view, the budget period should
be short one so that the actual results may be compared with the budget each week-end or
month-end and discussed with the budget committee. Long-term budgets should be
supplemented by short term budgets to make the budgetary control successful, as short-term
budgets will help in exercising control over day-to-day operations. In short, the budget period
should not be too long so that estimates may not become unreliable. Similarly it should also
be not too short so that there may be sufficient time before budget implementation. For must
52

business, annual budget is quite common because it compares with the financial accounting
year. There should be a regular time plan for budget preparation.

Advantages of Budgetary Control:

The advantages of budgetary control arise from the objectives of budgeting i.e.,
planning, coordination, and control can be summed up as follows: The most important
advantage of budgetary control is to enable management to conduct business in the most
efficient manner because budgets are prepared to get the effective utilization of resources and
the realization of objectives as possible. Budgetary control takes the help of different levels
of management in the preparation of the budget. Budget finally approved represents the
judgment of the entire organization and not merely that of an individual or a group of
individuals. Thus, it ensures team work. Budget act as a measure of efficiency of departments
and persons working in the organization because budgets provide yard-stick against which
actual performance of departments and employees can be compared. It is helpful in reviewing
current trends in the business and in determining future policy of the business because current
and future trends are studied in the preparation of budgets. It enhances the studying and credit
of the undertaking with the government and the banks because an efficient technique of cost
control is used.Thus; it helps in obtaining bank credit.

Limitations of Budgetary Control:

The budgetary control as a management control device suffers from the following
Limitations.
It may be impossible to achieve the budgeted targets as estimates and forecasts
relating to the future made in the budget can never be perfectly accurate for the
simple reason that future is unpredictable.
In rapidly changing conditions it may not be possible to achieve the budgeted
targets. Budget may have to be revised from time to time, but frequent revisions
may prove to be costly affair.
Budgets may serve as constraints on managerial initiative because every executive
tries to achieve the budgeted targets. It tends to bring out the rigidity in control.
Correlation and coordination of various budgets is expensive, so small
organizations cannot afford the employment of budgetary control as a cost of
control technique.

53

3.3 Budgets in Cargo Handling Division (CHD) of Visakhapatnam dock labour board

Budgetary Process in CHD

Every organization prepares a budgets so that it can plan for its future and meets any
unforeseen contingencies and CHD is no expectation to this rule in many organization are,
the budgetary process is taken care of accounts officer.
But at CHD has separate budget section in the finance department, which taken care of the
budgetary process. CHD would organize quarterly meeting under the chairmanship of the
board. They will be organizing of annual accounts and annual report meeting in the month of
October and budget meeting in the month of January, including special meeting to discuss
various urgent and emergency matters regarding all interests in port trust and CHD. Before
commencing every quarterly meeting, the agenda, and sets will be distributed to every
member holds discussions in each section separately and record the observations of the
department individual. The observations will put forward in the board meeting. The labour
trustees will participate in every meeting of the board. Labour trustees point out the problems
and appreciate the progress growth of the CHD and gives suggestion for advantage of
workers of the CHD.
In budget meeting, there is allotment of money to each committee, development of
education in organization. The labour trustees to take advantage with their demands from the
board. In certain matters there will be prevalence of voting and conducting of voting will be
responsible of the board. In the labour trustees would not have right to participate in the
meeting. In board meeting they discuss various matters like working and servicing policies
granting festival advances levy charges on the trade, safety measures of the workers, grant of
incentives to maintenance off staff improving the conditions of the equipment, medical
reimbursement, practical training and other related matters regarding the employees of the
CHD.

Objectives of preparing budgeting in VCHD:

To know the operating efficiency.
To formulate the policies to achieve the goal.
To perform integration and co-ordination among various departments like
construction department, works department, finance department etc.
To motivate the closely related department and the person for attaining the desired
goal.
To act as guide to management decision so that management can know how
54

successfully the objectives are being attained.

Budgetary Control in CHD:

Before a week established budgets comes into being, a number of things have been done, so
that there is strong foundation for budgeting. In VCHD, the chairman of the CHD is the head
of the organization. The head of the department of each department in CHD prepare budget
for their department and present it to the chairman of the board their meeting with, the
budgets after being approved by the chairman are placed before the board.
Organization chart for budgetary control
Board officers

Chairman

Budget committee

Establishing Budgetary Controls:

A budget Centre is a section of the organization of an undertaking and is defined as
such from the point of viewed of budgetary control. CHD has a number of well is on the basis
of collection of closely related works into one budgetary centers and their functions are
described below briefly.

Medical Department:
Head by the chief medical officer, this department is responsible for maintaining the health of
the employees of the organization.

CMDs Secretariat:
This department is responsible for planning all the activities to be undertaken by the CMD.

Works Department:
Head by director, this is the life and flood of the organization.

System Department:
This department is responsible for maintaining the various computer facilities of organization
and improves efficiency of labour.

55

3.4 Types of Budgets Prepared By CHD

VCHD prepared two kinds of budgets.
a.

Capital Budget

b.

Revenue Budget

Capital Budget:
Capital budget deals with new schemes to be intimated during the year and also with
completion of scheme already implemented. It is prepared and approved by VCHD and send
to ministry of finance to enable to ministry to release the required funds.
Capital budget consists of
Continue Schemes.
New Schemes.

Budget:
CHD would organize quarterly meeting under the chairman ship of the board. They
will be organizing of annual accounts and annual report meeting in the month of October and
budget meeting in the month of January, including special meetings to discuss various urgent
and emergency maters regarding all interests in the port trust and CHD.
Before commencing every quarterly meeting, the agenda sets will be distributed to
every member hold discussions in each section separately and record observations of the
department individual. The observations will be put in the forward in the board meeting.
The labor trustees will participate in every meeting of the board. Labor trustees point out the
problems and appreciate the progress growth of the D.L.B. and give suggestions for
advantage of workers of the CHD.
The budget meeting will be organized in the month of January to discuss over all
budget allocation in each department and over all department of the dock labor board. In
budget meeting there is allotment of money to each committee like welfare committee,
development of education in organization. The labor trustees to take advantage with their
demands from the board.

In certain matters there will be prevalence of voting and conducting of voting will be
responsible of the board, in the labor trustees would not have the right to participate in the
meeting. In board meeting they discuss various matters like working and serving policies,
granting festival advances levy of charges on the trade, safety measures of the worker, grant
56

of incentives to maintain the staff, improving the conditions of the equipment, medical
reimbursement, practical training and other related matters regarding the employees of the
CHD.

57

4.1 Revenue Budgets for Registered Scheme

ACTUALS & BUDGETS FOR THE YEAR 2010-11
Change
Sl.
No

Receipts

Budgets
2010-11(Rs)

Actuals
2010-11 (Rs)

107,896,000

109,208,000

Change
in %

-0.44%

Time rate wages

Piece rate wages

75,000,000

76,015,000

-1015000

-0.34%

General levy

101,732,000

89,294,000

12438000

4.17%

Levy on coals

5,556,000

6,219,000

-663000

-0.22%

1,290,000

3,119,000

-1829000

-0.61%

Interest on investment/bank
A/C

1,842,000

-0.05%

Board share of expenditure

1,691,500

-150500

1,691,500

1,842,000

-150500

-0.05%

6,00,000

600000

0.20%

Levy from M/S coromandel

fertilizers LTD

Rent-ADM office building

533,000

525,000

8000

2.68%

2,500,000

14,280,000

11780000

-3.94%

298,490,000

302,344,000

-3854000

-1.29%

Misc Receipts
Total Receipts (A)

1,31,2000

EXPENDITURE
1

Payments to workers

246,975,000

251,882,000

-4907000

-1.64%

payments to staff

19,448,000

20,804,000

-1356000

-0.45%

Office maintenance

4,061,000

4,761,000

-700000

-0.23%

Repairs & Maintenance

2,400,000

2,231,000

169000

0.057

Boards contribution

1,365,000

48,323,000

46958000

15.73%

Depreciation

505,000

762,000

-257000

-0.09%

274,754,000

328,763,000

54009000

18.09%

23,736,000

-26,419,000

-2683000

-0.89%

Total Expenditure (B)

(+) Surplus/ (-) Deficit

58

Axis Title

change percentage in Receipts 2010-11

5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
-1.00%
-2.00%
-3.00%
-4.00%
-5.00%
Piec
Time
e
rate
rate
wag
wag
es
es

change in % -0.4

-0.3

Inter
est
on
Gen Levy
inves
eral on
tme
levy coals
nt/b
ank
A/C

Boar
d
shar
e of
expe
ndit
ure

4.17

-0.0

-0.2

-0.6

Levy
from
M/S
coro
man
del
fertil
ize
-0.0

Rent
ADM Misc
offic Rece
e
ipts
build
ing

0.20 2.68

-3.9

change percentage in expenditure

2010-11
Axis Title

20.00%
15.00%
10.00%
5.00%
0.00%
-5.00%

change in %

Paymen
ts to
workers

paymen
ts to
staff

Office
mainte
nance

Repairs
&
Mainte
nance

Boards
contrib
ution

Depreci
ation

-1.64%

-0.45%

-0.23%

0.057

15.73%

-0.09%

NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT

59

REVENUE BUDGET FOR REGISTERED SCHEME

2010-11
30,000,000
20,000,000
10,000,000

SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)

0
-10,000,000

ACTUALS

BUDGETS

-20,000,000
-30,000,000

INTERPRETATION:
From the above table we observed that the revised estimates expenditures are more
than the receipts, hence it shows
hows deficit in the year 2010-11
2010
i.e. -26,419,000.
26,419,000. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows
shows surplus in the
year 2010-11 i.e. 23,736,000.
INCOMES:
The change in the Actual Receipts and Budgeted Receipts is increased by 38,54,000
Rupees so the percentage change in the income is 1.2911 % so the income is raised.
EXPENDITURE:
The change in the Actual Expenditure is increased by 54,009,000 Rupees comparing
to Budgeted Expenditures. So the percentage change in the expenditure is 19.65 % so deficit
occurred.

60

ACTUALS & BUDGETS FOR THE YEAR 2011-12

Sl.
No

Receipts

Budgets
2011-12 (Rs)

Actuals
2011-12 (Rs)

Change
in Rupees

Change
in %

Time rate wages

137,147,000

130,104,000

70,43,000

1.83%

Piece rate wages

79,816,000

83,688,000

38,72,000

-1.01%

General levy

121,915,000

84,199,000

37,71,600
0

9.82%

Levy on coals

6,582,000

6,166,000

416,000

0.11%

Additional Levy

7,256,000

-7256000

-1.89%

Special Levy

35,037,000

35037000

-9.12%

Interest on
investment/bank A/C/
Deleyed payments

2,963,000

1,437,000

1526000

0.40%

Board share of
expenditure

2,111,000

1,993,000

118000

0.030%

2,111,000

1,993,000

118000

0.030%

Rent-ADM office
building

525,000

838,000

-313000

-0.08%

10

Misc Receipts

30,784,000

10,342,000

20,442,00
0

5.32%

383,954,000

363,053,000

20,901,00
0

5.44%

Total Receipts (A)

Expenditures
1

Payments to workers

289,637,000

275,824,000

13813000

3.60%

payments to staff

24,784,000

24,000,000

784000

0.20

Office maintenances

4,786,000

4,431,000

355000

0.09

Repairs &
Maintainance

2,165,000

2,295,000

-130000

-0.03

Boards contribution

48,433,000

51,645,000

-3212000

-0.84

Depriciation

572,000

528,000

500000

0.013

Total Expenditure (B)

370,377,000

358,723,000

11654000

3.03

(+) Surplus/ (-) Deficit

13,577,000

4,330,000

9247000

2.41

61

Axis Title

change percentage in Receipts

2011-12
15.00%
10.00%
5.00%
0.00%
-5.00%
-10.00%
-15.00%
Tim Piec
Lev
e
e Gen y
rate rate eral on
wag wag levy coal
s
es es
change in % 1.8

-1.

9.8

Add
Inte Boa
Spe
itio
rest rd
cial
nal
on sha
Lev
Lev
inve re
y
y
st of

0.1

-1.

-9.

0.4

0.0

Ren Mis
t-A
c
DM Rec
offi eipt
ce s
0.0

-0.

5.3

Axis Title

change percentage in expenditure

2011-12
40.00%
20.00%
0.00%
-20.00%
-40.00%
-60.00%
-80.00%
-100.00%

change in %

Payme
nts to
worker
s

payme
nts to
staff

Office
mainta
inance

Repairs
&
Mainta
inance

Boards
contrib
ution

Deprici
ation

3.60%

0.2

0.09

-0.03

-0.84

0.013

NOTE:
RECEIPTS > EXPENDITURES
RECEIPTS < EXPENDITURES

= SURPLUS
= DEFICIT

62

REVENUE BUDGET FOR REGISTERED SCHEME

2011-12

14,000,000
12,000,000
10,000,000
8,000,000

SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)

6,000,000
4,000,000
2,000,000
0
ACTUALS

BUDGETS

Interpretation:
From the above table we observed that the revised estimates receipts are more than
the expenditures, hence it shows
hows surplus in the year 2011-12 i.e. 4,330,000. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows surplus
surp in the
year 2011-12 i.e. 13,577,000.
INCOME:
The Actual Receipts and when comparing to Budgeted Receipts so the Budgeted
Receipts are increased 20,901,000 Rupees. So the percentage change in the 5.44 % was
income is raised
EXPENDITURE:
The Actual Expenditure and when comparing to Budgeted Expenditures so the Actual
Expenditure is decreased. So the change in the Budgeted
Budgeted Expenditure is 11,654,000 Rupees.
So the percentage change in the expenditure is
Expenditure is increased

63

03.15 % expenditure

is Budgeted

ACTUALS & BUDGETS FOR THE YEAR 2012-13

Sl.

Receipts

No

Handling & Storage

charges on General

Budgets
2012-13 (Rs)

Actuals
2012-13 (Rs)

Change in
(Rs)

Change
in %

1,918,589,930

301,576,000

1617013930

83.51

Cargo
2

Estate Ground Rents

5,504,253

300,000

5204253

0.269

Rent from Quarters

4,614,450

429,000

32450

1.67

Recoverable charges

248,490

224,000

24490

1.26

Finance &
Miscellaneous Income

7,350,000

4,568,000

2782000

0.14

Total Receipts (A)

1,936,307,123

307,097,000

1629210123

84.14

Expenditures

Salaries & Wages

52,989,507

218,843,000

-165853493

-8.56

Stores

7,999,411

2,225,000

5774411

0.30

General Expenses

453,992

397,400

56592

2.92

Sundry Expenses

6,419,060

8,788,000

-2368940

-0.12

Depreciation

1,172,006

1,301,000

-128994

-6.66

Total Expenditure
(B)

69,033,976

231,554,400

-162520424

-8.39

(+) Surplus/ (-)

Deficit

(+)
1,867,273,147

(+)
75,542,600

1791730547

92.53

64

percentage Change in Receipts in 2012-13

Axis Title

90
80
70
60
50
40
30
20
10
0

Change in %

Handling &
Storage
charges on
General
Cargo

Estate
Ground
Rents

Rent from
Quarters

Recoverable
charges

Finance &
Miscellaneou
s Income

83.51

0.269

1.67

1.26

0.14

percentage changes in Expenditure in

2012-13
4
2

Axis Title

0
-2
-4
-6
-8
-10

changes in %

Salaries &
Wages

Stores

General
Expenses

Sundry
Expenses

Depreciati
on

-8.56

0.3

2.92

-0.12

-6.66

NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT

65

REVENUE BUDGET FOR REGISTERED

SCHEME 2012-13
2012
2,000,000,000
1,500,000,000
1,000,000,000

SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)

500,000,000
0
ACTUALS

BUDGETS

Interpretation:
From the above table we observed that the revised estimates receipts are more than
the expenditures, hence it shows
hows surplus in the year 2012-13
2012
i.e. 75,542,600.. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows sur
surplus in the
year 2012-13 i.e. 1,867,273,147.
INCOME:
The actual Receipts is compared to the Budgeted Recepits so the change is the
1,629,210,123 Rupees .so the Budgeted Recepits is change in the percentage 84.14 %
EXPENDITURE:
The actual expenditure is compared to the budgeted expenditure is so the change in
the expenditure is 162,520,424 rupees. so change in the percentage of expenditure is incurred
in percentage 8.39%

66

ACTUALS& BUDGETS FOR THE YEAR 2013-14

Sl.
No

Receipts

Budgets

Actuals

2013-14 (Rs)

2013-14 (Rs)

change

Change in
%

Handling & Storage

1

charges on General
Cargo

560,880,000

1,89,574,000

Estate Ground Rents

1,118,000

Rent from Quarters

4
5

-132694000

-23.35

5,500,000

-4382000

-0.77

735,000

4,612,000

-38770000

-1.05

Recoverable charges

400,000

12,510,000

-12110000

-2.13

Finance &
Miscellaneous Income

5,019,000

11,142,000

-6123000

-1.08

Total Receipts (A)

568,152,000

22,33,38,000

344814000

60.69

Expenditures
1

Salaries & Wages

391,896,000

154,590,000

237306000

41.76

Stores

4,030,000

7,400,000

-3370000

-0.59

General Expenses

797,400

5,196,000

-4398600

-0.77

Sundry Expenses

20,289,000

14,830,000

5459000

0.96

Depreciation

2,298,000

2,760,000

-462000

-0.081

Total Expenditure
(B)

419,310,400

184,776,000

-234534400

-41.28

(+) Surplus/ (-)

Deficit

(+) 148,841,600

(+) 3,85,62,000

110279600

19.41

67

Axis Title

percentage change in Receipts in

2013-14
0
-5
-10
-15
-20
-25

change in %

Handling
& Storage
charges
on
General

Estate
Ground
Rents

Rent from
Quarters

Recovera
ble
charges

Finance &
Miscellan
eous
Income

-23.35

-0.77

-1.05

-2.13

-1.08

percentage change in Expenditure in

2013-14
50

Axis Title

40
30
20
10
0
-10

change in %

Salaries &
Wages

Stores

General
Expenses

Sundry
Expenses

Depreciat
ion

41.76

-0.59

-0.77

0.96

-0.081

NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICI

68

REVENUE BUDGET FOR REGISTERED

SCHEME 2013-14
160,000,000
140,000,000
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
0

SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)

ACTUALS

BUDGETS

Interpretation:
From the above table we observed that the revised estimates receipts are more than
the expenditures, hence it shows
hows surplus in the year 2013-14
2013
i.e. 1,739,562,000.. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows
shows surplus in the
year 2013-14 i.e. 148,841,600.

INCOME:
The actual receipts is compared to the budgeted receipts so the budgeted receipts are
increased Rupees 344,814,000 so the change in the budgeted receipts in the percentage is
60.69%
EXPENDITURE:
The actual expenditure compared to the budgeted expenditure so the budgeted
expenditure is increased so the change in the rupees is 234,534,000 so the percentage change
in the expenditure is 55.93 %

69

ACTUALS & BUDGETS FOR THE YEAR 2014-15

change
Sl.

Budgets

Actuals

Change
in %

No

Receipts

2014-15 (Rs)

2014-15 (Rs)

Time Rate wage

15,46,34,000

15,83,39,000

-3705000

-0.98

Piece Rate

4,17,00,000

3,06,08,000

11092000

2.93

16,19,79,000

59,33,82,000

-108.39

lLevy

Rent and electric

quarters

Rent on AOB,other
building and electric
charges

Miscellaneous
receipts

Other income
Total Receipts

6,72,000

431403000

14,55,000

-783000

-0.21

16,64,000

17,61,999

-97999

-0.025

76,00,000

1,81,00,000

-10500000

-2.78

97,43,000

9,22,24,000

-82481000

-21.82

81,28,69,999

434877999

115.04

(A) 37,79,92,000

Expenditures
1

Time rate Wages

15,46,34,000

15,83,39,000

-3705000

-0.98

Piece Rate wages

4,17,00,000

3,06,08,000

11092000

2.93

19,26,22,000

19,89,46,000

-6324000

-1.67

Payments to
workers

-1126000

-0.30

3678000

0.97

31700000

8.39

6,96,52,000

6,85,26,000

Payments to staff

Office maintenance

61,78,000

25,00,000

Repairs and
maintenance

3,47,00,000

30,00,000

Boards contribution

8,50,55,000

17,87,29,000

-93674000

-24.78

Other expenditure

6,95,96,000

10,26,08,000

-33012000

-8.73

Total Expenditures
(B)

65,30,11,000

74,43,82,000

-91371000

-24.17

(+) Surplus/ (-)

Deficit

(-) 27,50,19,000

(+) 6,78,87,999

207131001

54.80

70

Axis Title

percentage change in Receipts in the

year 2014-15
20
0
-20
-40
-60
-80
-100
-120

Change in %

Rent
Rent
Miscell
on
and
AOB,ot aneous Other
electric
her
receipt income
quarte
buildin
s
rs
g and

Time
Rate
wage

Piece
Rate

lLevy

-0.98

2.93

-108.39

-0.21

-0.025

-2.78

-21.82

Axis Title

percentage change in Expenditure in

the year 2014-15
15
10
5
0
-5
-10
-15
-20
-25
-30
Paym
Repair
Time
Paym Office
Board
Piece ents
s and
Other
rate
ents maint
s
Rate
expen
to
maint
contri
Wage
to
enanc
wages worke
enanc
diture
s
staff
e
bution
rs
e
change in % -0.98

2.93

-1.67

-0.3

NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT

71

0.97

8.39

-24.78 -8.73

REVENUE BUDGET FOR REGISTERED

SCHEME 2014
2014-15
100,000,000
50,000,000
0
-50,000,000

BUDGETS

ACTUALS
SURPLUS(+)/DEFICIT(-)

-100,000,000
-150,000,000
-200,000,000
-250,000,000
-300,000,000

Interpretation:
From the above table we observed that the revised estimates receipts are more than
the expenditures, hence it shows
ws surplus in the year 2014-15
2014
i.e. 6,78,87,999. Whereas the
actual budget estimates receipts are less than expenditures, hence it shows
shows deficit in the year
2014-15 i.e. 27,50,19,000
INCOME:
When comparing to actual receipts to budgeted receipts so the income is increased in
the actual receipts is Rupees 434,877,999, so the percentage change in the income is 115.05%
EXPENDITURE:
When comparing to actual expenditure and budgeted expenditure the actual
expenditure is more than the budgeted expenditure so the rupees is 679,081,000. So the
percentage change in the expenditure is 103.99 % so in this year it shows Deficit

72

Five years projections for registered scheme:

Account

REGISTERED
scheme

Year

Change
in (%)

Incomes

2010-11

-3854000

2011-12

2091000

2012-13

1629210123

2013-14
2014-15

-1.29

Expenditure
-54009000

-5.44

Change in(%)
-18.09

1165000

3.03

84.14

-162520424

-8.39

344814000

60.69

-234534400

-41.28

4344877999

115.04

-91371000

-24.17

Axis Title

5 years projections chart

5E+09
4.5E+09
4E+09
3.5E+09
3E+09
2.5E+09
2E+09
1.5E+09
1E+09
50000000
0
-5E+08
2010-11

2011-12

2012-13

REGISTERED
change in(%)
expenditure
change in (%)
incomes

-18.09

3.03

-1.29

-1.63E+0

-5.44

84.14

-3854000 2091000

2014-15

scheme
-8.39

-5400900 1165000

2013-14

-41.28

-24.17

-2.35E+0 -9137100
60.69

115.04

1.629E+0 34481400 4.345E+0

73

4.2 REVENUE BUDGETS FOR UN REGISTERED SCHEME

Actual and Budget for the year 2010-11

Sl.
No

Receipts

Budgets

Actuals

2010-11(Rs)

2010-11 (Rs)

Change in Rs.

Change
in %

Time rate wages

7,200,000

7,376,000

-176,000

-0.21

Piece rate wages

1,800,000

5,200,000

-3,400,000

-4.08

General Levy

11,000,000

4,182,000

6,818,000

8.17

Rent on office building

404,000

417,000

-13,000

-0.016

Interest on investment

60,000,000

61,644,000

-1644000

-1.97

Interest on loan to cooperative credit society

2,528,000

2,500,000

28000

0.033

Misc Income

500,000

3,789,000

-3289000

-3.94

83,432,000

85,108,000

-1676000

-2.01

Total Receipts

Expenditures
1

Payments to workers

16,431,000

21,423,000

-4,992,000

-5.98

Payments to staff

8,539,000

9,179,000

-640,000

-0.76

Board's Contribution

2,279,000

2,337,500

-58500

-0.07

Share of board's
expenditure

3,938,000

2,897,500

1040500

1.25

Depriciation

747,000

803,000

-56000

-0.067

Total Expenditures

31,934,000

36,640,000

-4,706,000

-5.64

(+) Surplus/ (-) Deficit

51,498,000

21,423,000

3030000

3.63

74

Axis Title

percentage Change in Receipts in the

year 2010-11 for Un Registered
scheme
10
8
6
4
2
0
-2
-4
-6

Change in %

Time
rate
wages

Piece
Genera
rate
l Levy
wages

Rent Interes Interes

Misc
on
t on
t on
Incom
office invest loan to
e
buildi ment
co-

-0.21

-4.08

-0.016

8.17

-1.97

0.033

-3.94

Axis Title

percentage change in Expenditure in

the year 2010-11 for Un Registered
scheme
2
0
-2
-4
-6
-8

change in %

Payments
to
workers

Payments
to staff

Board's
Contributi
on

Share of
board's
expenditu
re

Depriciati
on

-5.98

-0.76

-0.07

1.25

-0.067

NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT

75

REVENUE BUDGET FOR UN REGISTERED

SCHEME 2010-11
52,000,000
51,000,000
50,000,000
SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)

49,000,000
48,000,000
47,000,000
46,000,000
BUDGETS

ACTUALS

Interpretation:
From the above table we observed that the revised estimates receipts are more than
the expenditures, hence it shows
hows surplus in the year 2010-11
2010
i.e. 48,468,000. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows
shows surplus in the
year 2010-11 i.e. 51,498,000.
INCOME:
The actual receipts is more than the budgeted receipts so the earned receipts in this
year is Rupees 16,76,000 so the percentage of change in the income is 2.01 %
EXPENDITURE:
The actual expenditure is more than the budgeted expenditure so the variation in the
expenditure in Rupees.47,06,000 so the percentage of change in expenditure is 14.74%

76

Actuals and Budgets for the year 2011-12

Sl.
No

Receipts

Budgets
2011-12

Actuals
2011-12

(Rs)

(Rs)

Change in
(Rs)

Change in
(%)

Time rate wages

7,745,000

7,832,000

-87000

-0.24

Piece rate wages

5,200,000

5,589,000

-389000

-1.07

General Levy

2,943,000

3,817,000

-8,74,000

-2.40

Rent on office building

420,000

310,000

110,000

0.30

Interest on investment

15,000,000

9,652,000

5,348,000

14.71

Interest on loan to cooperative credit society

2,050,000

4,900,000

-2,850,000

-7.84

Misc Income

3,000,000

1,100,000

1,900,000

5.23

36,358,000

33,200,000

3,158,000

8.69

Total Receipts

Expenditures
1

Payments to workers

22,119,500

25,793,500

-3,674,000

-10.11

Payments to staff

9,431,000

10,026,800

-5,95,800

-1.64

Board's Contribution

1,074,500

2,695,100

-1620600

-4.46

Share of board's expenditure

2,755,000

2,417,600

337,400

0.92

Depriciation

665,000

948,000

-283,000

-0.78

Total Expenditures

36,045,000

41,881,000

-5,836,000

-16.05

(+) Surplus/ (-) Deficit

313,000

-8,681,000

-8,368,000

-23.01

77

Axis Title

percentage change in Receipts in the

year 2011-12 for Un Registered
scheme
20
15
10
5
0
-5
-10

change in %

Time
rate
wages

Piece
rate
wages

Gener
al Levy

-0.24

-1.07

-2.4

Rent Interes Interes

Misc
on
t on
t on
Incom
office invest loan to
e
build ment
co-
0.3

14.71

-7.84

5.23

Axis Title

percentage change in Expenditure in

the year 2011-12 for Un Registered
scheme
2
0
-2
-4
-6
-8
-10
-12

change in %

Payments
to
workers

Payments
to staff

Board's
Contributi
on

Share of
board's
expenditu
re

Depriciati
on

-10.11

-1.64

-4.46

0.92

-0.78

NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT

78

REVENUE BUDGET FOR UN REGISTERED

SCHEME 2011-12
1,000,000
0
-1,000,000
-2,000,000
-3,000,000
-4,000,000
-5,000,000
-6,000,000
-7,000,000
-8,000,000
-9,000,000

BUDGETS

ACTUALS
SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)

Interpretation:
From the above table we observed that the revised estimates expenditures are more
than the receipts, hence it shows
hows deficit in the year 2011-12
2011
i.e. -8,681,000.
8,681,000. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows
shows surplus in the
year 2011-12 i.e. 313,000.

INCOME:
The budgeted receipts is more than the actual receipts so the earned receipts is
Rupees 31,58,000 so the percentage of change in receipts is 8.68 %.
EXPENDITURE:
The actual expenditure is more than the budgeted expenditure so the variation
in expenditure in Rupees.58,, 36,000 so the percentage of change in the expenditure is
16.69%

79

Actuals and Budgets for the year 2012-13

Sl.
No

Receipts

Budgets

Actuals

2012-13

2012-13

(Rs)

(Rs)

Change in
(Rs)

Change in
(%)

Time rate wages

8,224,000

8,420,000

-1,96,000

-0.68

Piece rate wages

5,868,000

3,994,000

1,874,000

6.53

General Levy

4,626,000

14,129,000

-9,503,000

-33.11

Rent on office
building

302,000

476,000

-174,000

-0.61

Interest on
investment

2,827,000

1,089,000

1,738,000

6.06

Interest on loan to
co-operative credit
society

5,700,000

5,148,000

5,52,000

1.92

Misc Income

1,150,000

100,000

1,050,000

3.66

28,697,000

33,356,000

-4,659,000

-16.23

Total Receipts

Expenditures
1 Payments to workers

26,243,500

24,122,000

2121500

7.39

2 Payments to staff

10,296,800

10,322,000

-25,200

-0.08

3 Board's Contribution

3,693,400

727,000

2966400

10.34

Share of board's
expenditure

2,479,700

1,912,400

567,300

1.98

800,000

808,000

-8000

-0.03

Total Expenditures

43,513,400

37,891,400

5,622,000

19.59

(+) Surplus/ (-)

Deficit

-14,816,400

-4,535,400

-10,281,000

-35.83

5 Depriciation

80

percentage Change in Receipts in the

year 2012-13 for Un Registered
scheme
Axis Title

10
0
-10
-20
-30
-40
Time
rate
wages
Change in (%)

-0.68

Piece
Gener
rate
al Levy
wages
6.53

-33.11

Rent Interes Interes

Misc
on
t on
t on
Incom
office invest loan to
e
build ment
co-
-0.61

6.06

1.92

3.66

Axis Title

change percentage in Expenditure in

the year 2012-13 for Un Registered
scheme
12
10
8
6
4
2
0
-2

%change

Payments
to workers

Payments
to staff

Board's
Contributi
on

7.39

-0.08

10.34

NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT

81

Share of
board's
Depriciatio
expenditur
n
e
1.98

-0.03

REVENUE BUDGET FOR UN REGISTERED

SCHEME 2012-13
5,000,000

0
BUDGETS

ACTUALS

SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)

-5,000,000

-10,000,000

-15,000,000

Interpretation:
From the above table we observe that the revised estimates expenditures are more
than the receipts, hence
ence it shows deficit in 2012
2012-13 i.e. -4,535,400.
4,535,400. Whereas the actual budget
estimates expenditures are more than the receipts, hence it shows deficit in 2012
2012-13 i.e. 14,816,400.

INCOME:
The actual receipts is more than the budgeted receipts so the variation
variation in receipts
Rupees 46, 59,000. So the percentage of change in receipts is 16.23% change is incurred.
EXPENDITURE:
The budgeted estimates expenditure is over than the actual expenditure so the
variation in expenditure in Rupees. 56,22,000 so the percentage of change in expenditure is
12.92 %

82

Actuals and Budgets for the year 2013-14

Sl.
No

Receipts

Budgets
2013-14

Actuals
2013-14

(Rs)

(Rs)

Change in
(Rs)

Change
in (%)

Time rate wages

9,262,000

14,559,000

-5,297,000

-15.62

Piece rate wages

3,900,000

6,679,000

-2,779,000

-8.19

General Levy

14,534,000

15,479,000

-945,000

-2.78

Rent on office building

533,000

525,000

8000

0.02

Interest on investment

1,000,000

2,100,000

-1,100,000

-3.24

Interest on loan to cooperative credit society

4,603,000

5,500,000

-897,000

-2.64

Misc Income

100,000

2,480,000

-2,380,000

-7.01

33,932,000

47,322,000

-13,390,000

-39.46

Total Receipts

Expenditures
1

Payments to workers

22,261,000

31,934,000

-9,673,000

-28.51

Payments to staff

7,107,000

6,950,000

1,57,000

0.46

Board's Contribution

311,500

6,900,500

-6,589,000

-19.42

Share of board's expenditure

1,691,500

1,842,000

-150,500

-0.44

Depriciation

685,000

938,000

-253000

-0.745

Total Expenditures

32,056,000

48,564,500

-16,508,500

-48.65

(+) Surplus/ (-) Deficit

1,876,000

-1,242,500

633,500

1.87

83

Axis Title

percentage change in receipts in the

year 2013-14 for Un Registered
scheme
5
0
-5
-10
-15
-20
Time
rate
wages

Piece
rate
wages

change in % -15.62

-8.19

Rent
on
Genera
office
l Levy
buildin
g
-2.78

0.02

Interes
t on
invest
ment
-3.24

Interes
t on
Misc
loan to
Income
coopera
-2.64

-7.01

Axis Title

percentage change in Expenditure in

the year 2013-14 for Un Registered
scheme
5
0
-5
-10
-15
-20
-25
-30

change in %

Payments
to
workers

Payments
to staff

Board's
Contributi
on

Share of
board's
expenditu
re

Depriciati
on

-28.51

0.46

-19.42

-0.44

-0.745

NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT

84

REVENUE BUDGET FOR UN

REGISTERED SCHEME 2013
2013-14
2,000,000
1,500,000
1,000,000
SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)

500,000
0
-500,000

BUDGETS

ACTUALS

-1,000,000
-1,500,000

Interpretation:
From the above table we observed that the revised estimates expenditures are more
than the receipts, hence it shows
hows deficit in the year 2013-14
2013
i.e. -1,242,500.
1,242,500. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows
shows surplus in the
year 2013-14 i.e. 1,876,000.
INCOME:
The actual receipts is more than the budgeted receipts so variation in the receipts in
Rupees.1,33,90,000 so the percentage change of the income is 39.46%
EXPENDITURE:
The actual expenditure is more than the budgeted expenditure so the variation in
Rupees is 1,65,08,500 so the percentage change in the expenditure is 51.50 %. So in this year
actual estimates faces the Deficit in this year.

85

Actuals and Budgets for the year 2014-15

Change in
(Rs)

Change
in (%)

19,197,000

-1,897,000

-3.41

7,013,000

7,227,000

-214,000

-0.38

19,104,000

15,863,000

3,241,000

5.83

Additional Levy

1,096,000

-1,096,000

-1.97

Special Levy

5,291,000

-5,291,000

-9.52

Rent on office building

525,000

838,000

-313,000

-0.56

Interest on investment

2,000,000

829,000

1,171,000

2.11

Interest on loan to cooperative credit society

5,325,000

3,279,000

2,046,000

3.68

Misc Income

4,297,000

1,995,000

2,302,000

4.14

55,564,000

55,615,000

-51,000

-0.09

Sl.
No

Budgets
2014-15 (Rs)

Actuals
2014-15 (Rs)

Time rate wages

17,300,000

Piece rate wages

General Levy

Receipts

Total Receipts

Expenditures
1

Payments to workers

36,238,000

36,266,000

-28,000

-0.05

Payments to staff

8,029,000

7,531,000

498,000

0.90

Board's Contribution

6,926,600

7,587,400

-660,800

-1.19

Share of board's expenditure

2,111,000

1,993,000

118,000

0.21

Depriciation

694,000

681,000

13000

0.02

Total Expenditures

53,998,600

54,058,400

-59,800

-0.11

(+) Surplus/ (-) Deficit

1,565,400

1,556,600

8,800

0.016

86

percentage Change in Receipts in the

year 2014-15 for Un Registered
scheme
Axis Title

10
5
0
-5
-10
-15
Time Piece
Rent Inter Inter
Gene Addit Speci
Misc
rate rate
on
est
est
ral ional al
Inco
wage wage
offic on
on
Levy Levy Levy
me
s
s
e inv loa
Change in (%) -3.41 -0.38 5.83 -1.97 -9.52 -0.56 2.11

3.68

4.14

Axis Title

percentage change in Expenditure in

the year 2014-15 for Un Registered
scheme
1.5
1
0.5
0
-0.5
-1
-1.5

% change

Payments
to
workers

Payments
to staff

Board's
Contributi
on

Share of
board's
expenditu
re

Depriciati
on

-0.05

0.9

-1.19

0.21

0.02

NOTE:
RECEIPTS > EXPENDITURES
RECEIPTS < EXPENDITURES

= SURPLUS
= DEFICIT

87

REVENUE BUDGET FOR UN REGISTERED

SCHEME 2014-15
1,566,000
1,564,000
1,562,000
1,560,000

SURPLUS(+)/DEFICIT(
SURPLUS(+)/DEFICIT(-)

1,558,000
1,556,000
1,554,000
1,552,000
BUDGETS

ACTUALS

Interpretation:
From the above table we observed that the revised estimates receipts are more than
the expenditures, hence it shows
hows surplus in the year 2014-15
2014
i.e. 1,556,600. Whereas the
actual budget estimates receipts are more than the expenditures, hence it shows
shows surplus in the
year 2014-15 i.e. 1,565,400.
INCOME:
The actual receipts are
re more than the budgeted receipts so the variation in Receipts in
Rupees is 51000. So the receipts are increased so the percentage change in income is 0.091 %
EXPENDITURE:
The actual expenditure is more than the budgeted expenditure so the variation in
expenditure
penditure is Rupees. 59800 so the percentage of change in the expenditure is 0.11 % so the
expenditure also increased over the receipts.

88

Five years projection table for Un-Registered scheme

Years

Incomes

Change in
(%)

Expenditures

Change
in (%)

2010-11

-1676000

-2.01

-4706000

-5.64

2011-12

3158000

8.69

-5836000

-16.05

2012-13

-4659000

-16.23

5622000

19.59

2013-14

13390000

-39.46

-16508500

-48.65

2014-15

-51000

0.09

8800

0.016

Account

UN
REGISTERED

Axis Title

5 years projections chart

5000000
0
-5000000
-1000000
-1500000
-2000000
-2500000
-3000000
-3500000
2010-11

2011-12

2012-13

2013-14

2014-15

Change in (%)

-5.64

-16.05

19.59

-48.65

0.016

expenditures

-4706000

-5836000

5622000

-16508500

8800

Change in (%)

-2.01

8.69

-16.23

-39.46

0.09

-1676000

3158000

-4659000

-13390000

-51000

incomes

89

4.3Capital Budgets
Actual for Five Years
ADMINISTRATIVE BODY - REGISTERED SCHEME
Actuals for the year 2010-11 & 11-12 &12-13 & 13-14 &14-15

ACTUALS

ACTUALS

ACTUALS

ACTUALS

ACTUALS

2010-11

2011-12

2012-13

2013-14

2014-15

(Rs)

(Rs)

(Rs)

(Rs)

(Rs)

Improvements to
office buildings,
call stands &
generators

Water coolers at
AOB & Air
Conditioners

1,22,000

Computers

12,50,000

2,50,000

5,00,000

2,50,000

2,50,000

Walkie & Talkie

Furniture &
Equipment

50,000

40,000

10,000

Total

12,50,000

3,00,000

5,00,000

4,12,000

2,60,000

SL.
NO

DESCRIPTION

90

Chart for five years Actuals

chart for five years Actuals

2500000
2000000

Series6
Series5

1500000

Series4
Series3

1000000

Series2
Series1

500000
0
2010-11

2011-12
2011

2012-13

2013-14

2014-15

Interpretation:
For the year 2010-11,, the Actual shows 1,25,0000 and the year 2011-12,, the Actuals
shows
ows 300,000 and the year 2012
2012-13, the actuals shows 500,000 and the year 2013-14,
2013
the
budget shows
ws 4,12,000 and the year 2014-15,
2014
the budget shows 260,000

91

Changing values
Years

2010-11

2011-12

2012-13

2013-14

2014-15

Change

9,50,000

2,00,000

78000

1,52,000

change in Actuals
1000000
800000
600000
400000
200000
0
2010-11

2011-12

2012-13

2013-14

2014-15
15

Interpretation
Wharf age rates are revised downwards for some of the cargo items like food
grains, Aluminum & its products, edible oils, R. R. Materials and increased for
most of the items in the range of 10% to 30%. No hike proposed for crude, POL,
LPG, phosphoric acid, charge
charge chrome, Ferro manganese, etc. Volume discount
scheme is proposed for LPG.
Pollution control charges proposed to be introduced for break bulk cargo also at
0.50 paise per tonne.
The actuarial valuation of pension liability of employees on rolls, pensioner
pensioners and
pension liability of family pensioners is stated to be Rs.865.00 crores. After
adjustment of balances available as on 31
The decrease in the cargo handi
handing Income projections in 2010-11
11 compared to BE
2010-11 despite of increase in traffic projections by 50 lakh tons is mainly due to
decrease in tippled quantity of iron ore due to manual unloading of ore consequent
rd
on major break down of 3 Wagon Tippler, anticipated receipt of ore fines by M/s.
HGPL through slurry pipeline (4.2 MT) (impact is reduction
ion in revenue by
Rs.22.55 crores). Further, diversion of traffic to the BOT operators i.e. VSPL to
the tune of 42 lakh tonnes has an impact of reducing the revenue by Rs.11.50
crores and extension of concessions to coastal cargo by 40% as per the
Government
nt directives will result into Rs.43.08 lakhs reduction in its revenue.
a) Increase in salaries and wages by Rs.306.50 lakhs due to normal increase in wage
bill and operation of 210 vacant posts
b) Increase in stores expenditure by Rs.488.57 lakhs due to steep increase in fuel oil
prices besides normal escalation in other stores & materials and issue of gold
medallions to employees.
c) Increase in dredging expenditure by Rs.209.14 lakhs due to escalation in fuel cost
and anticipated increase in quant
quantity to be dredged
92

Budgets for five years for registered scheme

ADMINISTRATIVE BODY - REGISTERED SCHEME
Budgets for the year 2010-11 & 11-12 &12-13 & 13-14 &14-15

BUDGETS
2010-11

BUDGETS
2011-12

BUDGETS
2012-13

BUDGETS
2013-14

BUDGETS
2014-15

(Rs)

(Rs)

(Rs)

(Rs)

(Rs)

Improvements to
office buildings,
call stands &
generators

50,000

Water coolers at
AOB & Air
Conditioners

50,000

150,000

25,000

Computers

1,250,000

1,250,000

1,250,000

250,000

2,50,000

Walkie & Talkie

15,000

50,000

Furniture &
Equipment

50,000

50,000

10,000

1,365,000

1,300,000

13,00,000

4,50,000

2,85,000

SL
NO

DESCRIPTION

Total

93

Chart for five years Budgets

Chart for budget five years
3000000
2500000
2000000
1500000
1000000
500000
0
2010-11

2011-12

2012-13

2013-14

2014-15

Interpretation:
In the year 2010-11 the budgets
bud
is 13,65,000 and in 2011-12 the budgets is of 13
13,
00,000 and in the year 2012-13 the budgets is 13,00,000
1
and in the year 2013-14
14 the budgets
is 4,50,000 and in the year 2014-15
2014
the budgets is 2,85,000

94

Change in budgets
Year

2010-11

2011-12

2012-13

2013-14

2014-15

Change

65000

8,50,000

1,65,000

change in Budgets
1000000
800000
600000
400000
200000
0
2010--11

2011-12

2012-13

2013-14

2014-15
15

Interpretation:
The projection of general cargo includes cargo of VSPL and VCTPL also. If the
general cargo traffic of VPT alone is considered, there is a reduction of 0.36 lakh
tonnes in 2010-11
11 compared to 2011-12. Similarly, there is a reduction of 14.40 lakh
tonnes in 2012-13 and 16.95 lakh tonnes in 2013
2013-14 compared to corresponding
previous years. The same were also indicated in the cost statements and hence the
income appeared to decrease.
The operating expenditure estimates incorporated in the revised cost statements now
furnished
d are as per approved RE 2010-11
2010
and BE2011-12.. The percentage of
increase is 9.38% in 2012-13,
2012
13.62% in 2013-14
14 and 5.42% in 2014
2014-15 over the
corresponding previous years. The percentage of increase is comparatively higher in
2010-11 and 2011-12 in view of wage revision, which
which is due from 01 January 2012.
2012
The impact of wage revision is estimated at Rs. 6 crores for
for 3 months for the year
2010-11 since it is due from 1 January 2011.
20 . Provision of Rs. 10 crores per annum
has been made towards insurance premium as per the decision taken by the Secretary
Shipping in the IPA meeting held on 15 October 2010.
20 . These additional provisions
were not considered while formulating
form
the Budget 2011-12

95

Additional charge at 7.5% of applicable pilotage fee for each movements i.e. either
berthing or sailing. The user Associations have submitted that requisition for
according priority would be given by the concerned steamer agent as and when
priority is required. Whenever priority is sought, pilot should board the vessel within
3 hours of its arrival into port limits / hosting S flag or sailing signals. In case of
delay in boarding the vessel by pilot beyond 3 hours, that particular movement would
not attract any priority charges while the vessel will be accorded priority movement
Alternatively, to levy additional charge at 10% of applicable pilotage fee per call as a
separate charge for all container vessels towards priority charge for berthing and
sailing of a vessel. However, in case pilot cannot board the vessel within 3 hours, the
port may consider refunding the additional charges of 10%.

96

Actuals & Budgets for the year 2010 - 11 (WELFARE SCHEME)

Sl. No

Receipts

Welfare levy

Budgets
2010-11
(Rs)

Actuals
2010-11

Change
in (%)

(Rs)

Change in (Rs)

5,00,00,000

5,30,00,000

-30,00,000

-5.32

Receipts from workers and staff

10,20,000

6,02,000

4,18,000

0.74

Welfare charges from deck foremen

3,30,000

20,000

3,10,000

0.55

Grent-in -aid

15,00,000

10,00,000

5,00,000

0.89

Medical attendance charges

2,50,000

2,00,000

50,000

0.09

Miscellaneous receipts

10,000

10,000

Sale of tender forms

70,000

50,000

20,000

0.035

Rent on market stall

1,20,000

1,20,000

Interest on investment and advances

13,00,000

98,00,000

-85,00,000

-15.07

10

Shram Shakthi Vihar

3,75,000

3,00,000

75,000

0.13

Total Receipts (A)

5,64,18,000

6,51,02,000

-86,84,000

-15.39

Expenditures
1

A-Welfare

42,36,000

42,48,000

-12,000

-0.021

B-Financial assistants

4,30,000

2,30,000

200,000

0.35

C-Recreation

2,85,000

2,51,000

34,000

0.06

D-Housing

2,18,84,000

2,98,86,000

-80,02,000

-14.18

E-Health

3,52,40,000

2,13,15,000

1,39,25,000

24.68

F-Education

83,29,000

32,07,000

51,22,000

9.08

G-Gen ADMN and Expenditure

41,57,000

49,24,000

-7,67,000

-1.36

Total Expenditure (B)

7,42,61,000

6,70,61,000

72,00,000

12.76

(+) Surplus/ (-) Deficit

-1,78,43,000

-19,59,000

-1,58,84,000

-28.15

97

Axis Title

percentage change in Receipts for wel

fare scheme in the year 2010-11
2
0
-2
-4
-6
-8
-10
-12
-14
-16
Rece Welf
Med Misc Sale Rent Inter Shra
Welf ipts are Gren ical ellan of
on est
m
are from char t-in - atte eous tend mar on Shak
levy work ges aid ndan recei er
ket inve thi
ers fro
ce pts for stall st Vih
change in % -5.3 0.74 0.55 0.89 0.09

0.03

-15. 0.13

Axis Title

percentage change in Expenditure for

welfare scheme in the year 2010-11
30
25
20
15
10
5
0
-5
-10
-15
-20
G-Gen
B-Fina
ACDFADMN
ncial
EWelfar
Recrea Housin
Educat
and
assista
Health
Expen
e
tion
g
ion
nts
diture
change in % -0.021

0.35

0.06

-14.18

24.68

9.08

-1.36

NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT
Interpretation:
From the above table we observe that the revised estimates expenditures are more
than the receipts, hence it shows deficit in 2010-11 i.e. -19,59,000 where as the actual budget
estimates expenditures are more than the receipts, hence it shows deficit in 2010-11 i.e. 1,78,43,000.

98

Actuals & Budgets for the year 2011 - 12 (WELFARE SCHEME)

Budgets
Sl.
No

Receipts

2011-12
(Rs)

Welfare levy

Actuals

Change in

2011-12

(Rs)

Change
in (%)

(Rs)

4,50,00,000

4,20,10,000

2,990,000

5.94

Receipts from workers and staff

60,2000

5,17,000

85,000

0.17

Welfare charges from deck foremen

20,000

20,000

Grent-in -aid

10,00,000

10,00,000

Medical attendance charges

2,00,000

30,000

1,70,000

0.34

Miscellaneous receiptes

10,000

2,70,000

-2,60,000

-0.52

Sale of tender forms

50,000

40,000

10,000

0.0199

Rent on market stall

1,20,000

76,000

44,000

0.09

Interest on investment and

advances

30,00,000

20,00,000

10,00,000

1.99

10

Shram Shakthi Vihar

3,00,000

3,50,000

-50,000

-0.099

5,03,02,000

4,63,13,000

39,89,000

7.93

Total Receipts (A)

Expenditure
1

A-Welfare

42,04,000

30,48,000

1,156,000

2.23

B-Financial assistants

2,30,000

1,50,000

80,000

0.16

C-Recreation

2,51,000

2,51,000

D-Housing

2,41,22,000

1,60,77,000

8,045,000

15.99

E-Health

2,87,57,000

2,09,39,000

7,818,000

15.54

F-Education

61,57,000

61,55,000

2000

3.97

G-Gen ADMN and

Expenditure

22,10,000

63,84,000

-4,174,000

-8.30

Total Expenditure (B)

6,59,31,000

5,30,34,000

12,897,000

25.64

(+) Surplus/ (-) Deficit

-1,56,29,000

-66,91,000

-8,938,000

-17.77

99

percentage Change in Receipts in

welfare scheme for the year 2011-12
Axis Title

7
6
5
4
3
2
1
0
-1
Rece Welf
Med Misc Sale
Welf ipts are Gren ical ellan of
are from char t-in - atte eous tend
levy work ges aid nda recei er
ers fro
nc ptes for
Change in (%) 5.94 0.17

Rent
on
mar
ket
stall

Inter Shra
est
m
on Shak
inve thi
st Vih

0.34 -0.5 0.02 0.09 1.99 -0.1

Axis Title

percentage change in expenditure for

welfare scheme for the year 2011-12
20
15
10
5
0
-5
-10
AWelfar
e
% change

2.23

B-Finan
Ccial
Recrea
assista
tion
nts
0.16

DHousin
g

G-Gen
FADMN
EEducati
and
Health
Expend
on
iture

15.99

15.54

NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT

100

3.97

-8.3

surplus/deficit
0
-2000000

actuals

budgets

-4000000
-6000000
-8000000
-1000000

surplus/deficit

-1200000
-1400000
-1600000
-1800000
-2000000

Interpretation:
From the above table we observe that the revised estimates expenditures are more
than the receipts, hence it shows deficit in 2011-12 i.e. -66,91,000 where as the actual budget
estimates expenditures are more than the receipts, hence it shows deficit in 2011-12 i.e. 1,56,29,000.

101

Actuals & Budget s for the year 2012-13 (WELFARE SCHEME)

Budgets
2007 08

Actuals
2007 08

Receipts

(Rs)

(Rs)

Welfare levy

2,77,50,000

1,58,12,000

11,938,000

38.84

Receipts from workers and staff

51,7000

4,87,000

30,000

0.098

Welfare charges from deck

foremen

20,000

20,000

Grent-in -aid

3,05,000

-3,05,000

-0.99

Medical attendance charges

30,000

65,000

-35,000

-0.11

Miscellaneous receiptes

20,000

20,000

Sale of tender forms

40,000

75,000

-35,000

-0.11

Rent on market stall

10,000

72,000

-62,000

-0.20

Interest on investment and

advances

20,00,000

15,40,000

4,60,000

1.50

10

Shram Shakthi Vihar

3,50,000

2,85,000

65,000

0.21

Total Receipts (A)

3,07,37,000

1,86,81,000

12,056,000

39.92

Sl.
No

Change in
(Rs)

Change in
(%)

Expenditures
1

A-Welfare

30,86,281

15,52,000

15,34,281

4.99

B-Financial assistants

1,50,000

1,30,000

20,000

0.065

C-Recreation

2,51,000

2,03,000

48,000

0.16

D-Housing

15,86,000

1,69,88,000

-1,54,02,000

-50.11

E-Health

2,04,25,000

2,23,34,000

-19,09,000

-6.21

F-Education

31,53,000

40,80,000

-9,27,000

-3.01

G-Gen ADMN and

Expenditure

63,33,000

53,11,500

10,21,500

3.32

Total Expenditure (B)

4,94,27,000

5,22,68,500

-28,41,500

-9.24

(+) Surplus/ (-) Deficit

-1,86,90,000

-3,35,87,500

-1,48,97,500

-48.47

102

percentage Change in Receipts in the

year 2012-13 for welfare scheme
Axis Title

45
40
35
30
25
20
15
10
5
0
-5
Rec Wel
Gre
Wel eipt fare
ntfare s char
in levy fro ges
aid
m fro
Change in

(%) 38.8 0.09

Med
ical
atte
nda
nc

-0.9 -0.1

Misc Sale Rent Inte Shra

ella of on rest m
neo tend mar on Shak
us
er ket inve thi
re for stall st Vi
0

-0.1 -0.2 1.5 0.21

Axis Title

percentage change in Expenditure in

the year 2012-13 for welfare scheme
10
0
-10
-20
-30
-40
-50
-60
AWelfar
e
% change

4.99

B-Finan
Ccial
Recrea
assista
tion
nts
0.065

0.16

DHousin
g
-50.11

NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT

103

G-Gen
FADMN
EEducati
and
Health
Expend
on
iture
-6.21

-3.01

3.32

surplus/deficit
0
-2000000

actuals

budgets

-4000000
-6000000

surplus/deficit

-8000000
-1000000
-1200000
-1400000
-1600000

Interpretation:
From the above table we observe that the revised estimates expenditures are more
than the receipts, hence
ence it shows deficit in 2012-13
2012
i.e. -3,35,87,500 whereas the actual
budget estimates expenditures are more than the receipts, hence
hence it shows deficit in 2012
2012-13
i.e. -1,86,90,000.

104

Actual s & Budget s for the year 2013-14 (WELFARE SCHEME)

Change
Budgets
2013-14

actuals
2013-14

change in
(Rs)

in (%)

Receipts

(Rs)

(Rs)

Welfare levy

97,33,000

13,39,000

83,94,000

68.90

Receipts from workers and staff

5,17,000

6,80,000

-1,63,000

-1.33

Welfare charges from deck foremen

20,000

20,000

Grent-in -aid

25,000

60,000

-35000

-2.87

Medical attendance charges

2,000

5,34,000

-5,32,000

-0.044

Miscellaneous receiptes

75,000

13,000

62,000

0.51

Sale of tender forms

1,00,000

72,000

28000

0.23

Rent on market stall

14,00,000

36,38,000

-22,38,000 -0.18

Interest on investment and advances

3,20,000

3,20,000

10

Shram Shakthi Vihar

Total Receipts (A)

1,21,82,000

1,93,04,000

-71,22,000 -58.46

Sl. No

Expenditures
1

A-Welfare

33,19,000

35,05,250

-1,86,250

-0.015

B-Financial assistants

1,30,000

1,30,000

C-Recreation

2,01,000

1,51,000

50,000

0.41

D-Housing

1,67,77,000

95,69,600

72,07,400

59.16

E-Health

2,29,14,000

2,12,10,000

17,04,000

13.99

F-Education

31,20,500

37,70,000

-6,49,500

-5.33

G-Gen ADMN and Expenditure

49,23,000

46,18,600

3,04,400

2.50

Total Expenditure (B)

5,13,80,500

5,00,54,450

13,26,050

10.88

(+) Surplus/ (-) Deficit

-3,91,98,500

-3,07,50,450

-84,48,050

-69.35

105

percentageChange in Receipts in the

year 2013-14 for welfare scheme
Axis Title

80
70
60
50
40
30
20
10
0
-10
Rece Welf
Welf ipts are Gre
are from char nt-in
levy wor ges -aid
ker fro
Change in (%) 68.9 1.33

Med
ical
atte
nda
nc

Misc Sale Rent Inter Shra

ellan of
on est m
eous tend mar on Shak
recei er ket inve thi
ptes for stall st Vi

-2.8 -0.0 0.51 0.23 -0.1

Axis Title

percentage change in Expenditure in

the year 2013-14 for welfare scheme
70
60
50
40
30
20
10
0
-10
AWelfar
e
% change -0.015

B-Finan
Ccial
Recrea
assista
tion
nts
0

0.41

DHousin
g

G-Gen
FADMN
EEducati
and
Health
Expend
on
iture

59.16

13.99

NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT

106

-5.33

2.5

surplus/deficit
0
-5000000

actuals

budgets

-1000000
surplus/deficit

-1500000
-2000000
-2500000
-3000000
-3500000

Interpretation:
From the above table we observe that the revised estimates expenditures are more
than the receipts, hence
ence it shows deficit in 2013-14
2013
i.e. -3,07,50,450
3,07,50,450 whereas the actual
budget estimates expenditures are more than the receipts,
rece
hence
ence it shows deficit in 2013
2013-14
i.e. -3,91,98,500.

107

Actuals & Budgets for the year 2014-15 (WELFARE SCHEME)

Change in (Rs)

Change
in
(%)

3,69,97,000

17,58,000

4.075

11,50,000

10,63,000

87,000

0.20

Welfare charges from deck

foremen

20,000

19,000

1000

2.32

Grent-in -aid

Medical attendance charges

30,000

29,000

1000

2.32

Miscellaneous receiptes

1,00,000

26,79,000

-25,79,000

-5.98

Sale of tender forms

20,000

22,000

-2000

-4.64

Rent on market stall

1,25,000

1,23,000

2000

4.64

Interest on investment and

advances

15,00,000

19,05,000

-4,05,000

-0.94

10

Shram Shakthi Vihar

4,00,000

3,00,000

1,00,000

0.23

11

Dis by L.O

2,000

2,000

Total Receipts (A)

4,21,02,000

4,31,39,000

-10,37,000

-2.40

Budgets
2014-15

Actuals
2014-15

Sl.
No

Receipts

(Rs)

(Rs)

Welfare levy

3,87,55,000

Receipts from workers and staff

Expenditures
1

A-Welfare

39,82,000

39,80,000

2000

4.64

B-Financial assistants

1,45,000

1,58,000

-13000

-0.030

C-Recreation

1,46,000

1,71,000

-25000

-0.06

D-Housing

2,12,71,000

1,97,60,000

15,11,0000

3.50

E-Health

2,37,80,000

2,39,45,000

-1,65,000

-0.38

F-Education

33,97,000

48,36,000

-14,39,000

-3.33

G-Gen ADMN and Expenditure

35,76,000

37,40,000

-1,64,000

-0.38

Total Expenditure (B)

5,62,97,000

5,65,90,000

-2,93,000

-0.68

(+) Surplus/ (-) Deficit

-1,41,95,000

-1,34,51,000

-7,44,000

-1.72

108

Axis Title

percentage change in Receipts in the

year 2014-15 for welfare scheme
6
4
2
0
-2
-4
-6
-8
Rece Welf
Welf ipts are Gren
are from char t-in levy wor ges aid
ker fro
% change 4.07 0.2 2.32

Med
ical
atte
nda
nc

Misc Sale Rent Inter Shra

ellan of on est m Dis
eous tend mar on Shak by
recei er ket inve thi L.O
ptes for stall st Vih

2.32 -5.9 -4.6 4.64 -0.9 0.23

Axis Title

percentage change in expenditure in

the year 2014-15 for welfare scheme
6
5
4
3
2
1
0
-1
-2
-3
-4
AWelfar
e
% change

4.64

B-Finan
CDcial
Recreat Housin
assista
ion
g
nts
-0.03

-0.06

3.5

NOTE:
RECEIPTS > EXPENDITURES = SURPLUS
RECEIPTS < EXPENDITURES = DEFICIT

109

G-Gen
FADMN
EEducati
and
Health
Expend
on
iture
-0.38

-3.33

-0.38

surplus/deficit
0
-5000000

actuals

budgets

-1E+08
-1.5E+08

surplus/deficit

-2E+08
-2.5E+08
-3E+08
-3.5E+08
-4E+08

Interpretation:
From the above table we observe that the revised estimates expenditures are more
than the receipts, hence
ence it shows deficit in 2014
2014-15 i.e. -14195000
14195000 whereas the actual budget
estimates expenditures are more than the receipts, hence it show
shows deficit in 2014
2014-15 i.e. 1,34,51,000.

110

Five years projection chart for (welfare scheme)

Year

Incomes

Change in (%)

Expenditures

Change in
(%)

2010-11

-8684000

-15.39

7200000

12.76

2011-12

3989000

7.93

12897000

25.64

2012-13

12056000

38.92

-2841500

-9.24

2013-14

-7122000

-58.46

1326050

-10.88

2014-15

-1037000

-2.4

-293000

-0.068

five years projection chart

20000000

Axis Title

15000000
10000000
5000000
0
-5000000
-1000000
2010-11

2011-12

2012-13

2013-14

2014-15

change in (%)

12.76

25.64

-9.24

-10.88

-0.068

expenditures

7200000

12897000

-2841500

1326050

-293000

change in (%)

-15.39

7.93

38.92

-58.46

-2.4

-8684000

3989000

12056000

-7122000

-1037000

incomes

111

5.1 SUMMARY
The project entitled by budget and budgetary control in VCHD is divided into 6
chapters.

The first chapter is deals with the introduction to budget and budgetary control

along with the objectives, methodology and limitations of the study. In this chapter the
overall summary was given briefly to understand the total project at a glance. The project
entitled Budget and Budgetary Control with reference to Visakha Cargo Handling
Division at Visakhapatnam Port, has been divided into six chapters to arrange the total
information in perfect manner.
The First chapter includes the introduction, need for the study, objectives of the study and
limitations of the study. Through this chapter we can know the overview of in our day to day
life we face lot of problem about the financial position because of immaterial imbalance of
income and expenditure. Therefore we can stabilize our self with the structure of budget and
budgetary control. In the Introduction (1.1). The details of the budget are a detailed plan of
operation for future period.
It is an estimate prepared in advance for the period of which it applies. It acts as a business
barometer as it is complete programme of activities of the business for the period covered.
The study of budgets undertaken for the purpose of presenting a periodical review or report
by the management and to deal with the state of investment in business and the results
achieved during the period under review. After giving the topic the details of the company,
the topic introduction was given like the definition of the topic co9llected from different
sources and the definition, the importance of the study and use of the study to the company
were clearly explained. This help to understand why the researcher has chosen the topic as his
project.
After the introduction the Need for the Study (1.2) has been explained briefly. In this,
why the financial manager has chosen that the topic and what can she gets from that study
and how it is useful to him is explained briefly. Because without any need the study will not
be conducted. After explaining the need of the study the Objectives of the study (1.3) was
given. In this part, what information the financial position wanted collect and why he wanted
to the project in that particular company and what goal she wanted to reach through this
project has been clearly explained. After explaining the objectives of the study
methodology was given. This clearly explains the data that we are considering.
Finally the Limitations of the study (1.5) were given in the next part. Forever study
there will be some limitation and we may call those as hurdles for the study. The limitations
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may be the time limits, financial limits or troubles from the environment in this study.
The second is chapter deals with the industry profile. The second chapter includes
genesis and growth of the company, organization structure of the company, all the functional
areas like exports, imports, HR, finance and production, finally the future trends of the
company.
All these functions are explained. In Genesis and Growth of the Company (2.1).
The Government of India has started the Cargo Handling Division keeping in view the
growing contribution of the industry to the economy. This will benefit Cargo growers, the
workers engaged in the sector, CHD and others employed in related activities. It will play a
vital role in modernizing the port and help the country to reap the benefits of enhanced levels
of CHD diversification. Organization Structure (2.2) of the company and its importance
and use has been explained with the organization chart of the company. By using the
organization chart we can understand the position of the management.
In that company and the relation between the superiors and subordinates in the
company. The organization structure can decided the future of the company whether it is
going to be successful or a failure one. After this The Marketing function of the company
has been explained in a very detailed manner. In the marketing strategies of the company and
the technique of the company has been explained. After the marketing function the HR
function (2.4) of the has been explained. In this the company providing education, health
and welfare activities.
After the HR functions the Financial functions (2.5) of the company has been
explained in a very detailed manner. In the financial functions of the company and the
financial technique of the company has been explained. After the financial functions the
production Function (2.6) was explained very clearly point by point. In this chapter the
detail starting from the different types of machines etc. Finally the future trend of the
company also explained.
The third chapter deals with the organization profile of genesis & growth, objectives,
structure of organization, information about various functional departments and organization
at glance. The third chapter includes theoretical frame work. In this chapter, detail
information of the Budget Analysis i.e. optimal utilization of resources, management by
exception,

performance

evaluation,

coordination,

assignment

of

responsibility,

communication of each department.

Budget control is the process of determine various budget figures for the enterprises
for the future period and then comparing the budget figures for the enterprises for the future
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period and then comparing the budget figures with actual performances for calculating
variances if any first of all budgets are prepared and then comparing the budget figures with
actual performances for calculating variances if any first of all budgets are prepared and then
results recorded. The comparison of budget and actual budget figures will enable the
management to find out discrepancies and take remedial measures at a proper time
continuous process which helps in planning and coordination.
The fourth chapter deals with the totally theoretical frame work of the budget and
budgetary control analysis theory and practices of the VCHD which includes comparative
balance sheet, comparative income and expenditure statements, common size balance sheet
and common size income and expenditure statements of the organization. It includes the
Analysis and Interpretation of the study. It contains lot of valuable information regarding the
company.
The fifth chapter is deals with the statements of budgets and budgetary control
analysis and practices of the VCHD in the last five years.
The sixth chapter deals with the summary, findings, suggestions of the overall project.
Then the suggestions are given for the important of the VCHD. It includes the summary,
findings, of the study, suggestions and conclusion which were given to the company.
Summary is a tool to understand the total study of the investigator at a glance very briefly. In
this summary the details of each and every chapter were kept to make the observer
understood the total project clearly. After the summary part the findings of the study part, the
suggestions were given to observations that we have observed through whole the project.
These suggestions may be useful to rectify to the faults of the company. Finally the
conclusion that we have concluded through project. Finally appendix of the analysis and data
interpretation and the bibliography were attached to the project work, which were used to
complete the project successfully.
Visakhapatnam Port started functioning during the year 1933 and later formed into a
Trust under Major Port Trusts Act. In Visakhapatnam Port, there are two major cargo
handling autonomous bodies, viz., Visakhapatnam Port Trust & Visakhapatnam Dock Labour
Board (VDLB). The Visakhapatnam Dock Labour Board was established during 1961 under
Dock Workers (Regulation of Employment) Act 1948. However, during Sep.2008, the
Visakhapatnam Dock Labour Board merged into Visakhapatnam Port Trust (VPT) as one of
its Divisions, as Cargo Handling Division, in Traffic Department.
Ports are commonly known as places of safe shelter with necessary infrastructure for
purpose of trade. In that view there is airports; seaports are gateways to the world. Seaport is
the essential link, in the international maritime transport chain. Seaports play a very
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important in one countries growth. At present over 80% of all international trade goes up by
sea. In the case of development country like ours percentage of international trade would be
in the range of 70%-80%. So there is an imperative need for all the sea ports in our country to
expand very rapidly to have economic growth and for well being of our country in all its
various factor. Technically speaking port is one which handles not less than one million tone
of cargo annually and which posses harbors and other facilities to receive ships of 4000 DWT
or more. Example: Mumbai, VSP etc.
Visakhapatnam Port is one of the major ports on the eastern seaboard of Bay of
Bengal at a latitude 170 41N & longitude 83018E. It is situated in between Kolkata &
Chennai Ports. It has acted as a catalyst in the process of Industrialization of its hinterland
along with other ancillary industries. The Port plays a dynamic role in fostering accelerated
development in the region shall contributed significantly to the National Development.
Visakhapatnam is one of the best, natural ports in India and its location provides
protection from cyclones, which strikes the east coast regularly during May/November. The
Dolphins Nose hills which is to the south of the entrance channel, Ross and Durga hill
which are to the north of the entrance channel are land forms which provide tranquil waters
for the port for the outer harbor, to artificial break waters provide necessary conditions for
tranquil waters. This low range of a maximum of 1.82 meters this section of the sea is
advantages for the location of the port.
The origin of Visakhapatnam goes back as far as the 6th Century, when it formed a
port of the famous kingdom of kalinga in 6th century A.D. Kalinga was conquered by the
chalulkyas of Bandai and in the 7th century by eastern chalulkyas, which led to the
establishment of the avenge kingdom under Vishnu Vardhan 1 (615 633 A.D.).
Visakhapatnam, the anglicized from of which is Visakhapatnam is an ancient town.
According to the district manual writers 1989, in the early years of 14th Century Kullotunga
choler of the Andhra Dynasty visited the presented site of Visakhapatnam and was so pleased
with the place that he built a temple dedicated to Issaquah. The sea has since engulfed this
temple.
BOARD means a C.H.D LABOUR Board established under section, 5 (A).
CARGO includes anything carried or to be carried in a ship or other vessel.CARGO
HANDLING DIVISION means a person employed in the vicinity of any port of work in
connected with loading, movement or storage of Cargoes or work in connection with the
preparation of ships or other vessels For the Receipt of discharged of cargoes (or) leaving
India is situated at the head of the Indian Ocean with a coast-line of about 3535 miles,
and occupies an important place in the maritime world. There are about 232 ports in India, of
which 12 are major ports, 14 intermediary ports, 132 minor ports and 76 sub-ports.
The Dock Labour Board is directly under the administrative control of the
Government of India. New Delhi. The Visakhapatnam Dock Labour Board is tripartite
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body, which has representatives from Government side, representatives from employers
(Stevedores) and representatives from trade unions. Under the Dock Workers Regulation
Employment Act of 1959, the registered scheme was established and under the Dock
Workers Regulation Act of 1961, the unregistered scheme was established.
The Dock Labour Board collects levy from the employers for supplying the Human
Resources to them. The levy rate is usually fixed by the government of India out of this levy
the Dock Labour Board pays the wages to the workers and carries out the welfare
programmers for the dock workers. The levy rages are subject to change according to
Government decisions.
The main function of the board is to supply man-power to the employers of both the
schemes for cargo handling operations. Basically, it is labor intensive organization. About,
1500 employees / workers are working in the Board. There is a Board which comprises 12
members having equal representation from Central Government, the Dock workers and the
employers of shipping companies. The Chairman of the Board is the Chief Executive of the
Board. Deputy Chairman is whole time officer of the Board, who looks after the day to day
administration, and the Board is under the control of Ministry of shipping, Government of
India, New Delhi.
A budget is a plan for coordinating the various operations of the business expressed
in financial terms. It is a detailed schedule of prepared combination of various factors of
production which the management deems to be most profitable for the ensuring period.
Budgetary Control is the process of ascertaining several budgeted figures for the
future of a business enterprise and then making comparison of these budgeted figures with
the actual results for finding out discrepancies. The comparison of budgeted and actual
figures will allow the management to take curative actions at a proper time.

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5.2 FINDINGS
The advantages of budgetary control arise from the objectives of budgeting i.e.,
planning, coordination, and control can be summed up as follows: The most important
advantage of budgetary control is to enable management to conduct business in the most
efficient manner because budgets are prepared to get the effective utilization of resources and
the realization of objectives as possible. Budgetary control takes the help of different levels
of management in the preparation of the budget. Budget finally approved represents the
judgment of the entire organization and not merely that of an individual or a group of
individuals. Thus, it ensures team work. Budget act as a measure of efficiency of departments
and persons working in the organization because budgets provide yard-stick against which
actual performance of departments and employees can be compared. It is helpful in reviewing
current trends in the business and in determining future policy of the business because current
and future trends are studied in the preparation of budgets. It enhances the studying and credit
of the undertaking with the government and the banks because an efficient technique of cost
control is used. Thus, it helps in obtaining bank credit. When we observe the budgets there is
a large variations in actual and revised budgets.
The advantages of budgetary control arise from the objectives of budgeting i.e.
planning, coordinating, and control can be summed up as follows. The most
important advantage of budgetary control is to enable management to conduct
business in the most efficient manner.
According to table no 11 revised estimates expenditures are more than the
receipts, hence it shows deficit in the year 2012-13 i.e. Rs -4,535,400 whereas the
actual budget estimates receipts are more than the receipts hence it shows deficit
Rs -14,816,400.
In the year revised estimates receipts are more than the expenditures, hence it
shows surplus in the year 2014-15 i.e. Rs 1,556,600. Whereas the actual budget
estimates receipts are more than expenditures, hence it shows surplus Rs
1,565,400.
According to Capital Budget registered scheme table no 18 clearly shows that the
117

revised estimates for the year 2013-14 the budget shows Rs 260,000 as against the
budget estimates of Rs 2, 85,000. So the difference of Rs 25000.
Based on the Administrative Un-Registered scheme table no 21 clearly shows that
the revised estimates for the year 2011-12, the budget shows Rs 500,000 as
against the budget estimates of Rs 13, 00,000. So that the difference of Rs 8,
00,000.
Regarding the Administrative body Un-Registered scheme table no 23 clearly
shows that the revised estimates for the year 2013-14, the budget shows RS
2,60,000 as against the budget estimates of RS 2,85,000. So there is a difference
of Rs 25,000.

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5.3 SUGGESTIONS
Workers of the VCHD are encouraged by making them to their suggestions regarding
the improvement in the production through suggestion their by stimulating creative thinking
of the workers.
VCHD is also following basic procedures and policies for equipment selection,
promotion grievance handling and disciplinary and action. In order to maintain harmonious
labour management relations effective communicated system should be developed by
explaining regarding the organization to the workers and make them to understand the
problems of the management and also mutual trust for the develop between the workers and
management.
Workers satisfaction and workers satisfaction take organization to greater heights so
the management should develop free mind and trust in the workers which will survey lead to
further success.

119

BIBLIOGRAPHY

S. no

Author

Prepare of books

S.P.Jain &
K.L.Narang

I.M. Pandey

Cost accounting
principles &
practices
Financial
Management

M.Y. KHAN
& P.K.JAIN

Tata Mc Graw
Hill
Publishing co.ltd

Prasanna Chandra,

Tata McGraw Hill.

L.M.Bhole

Tata McGraw Hill.

V.A.Avadhani

Himalya Publishers,
Mumbai

Publisher
Magazine
Kalyani
Publisher

Year

Vikas
Publishing
House pvt.ltd

9th Edition

4th edition

Financial
Management
Theory and
Practice
Financial
Institutions and
Market
Marketing of
Financial
Services

REFERENCES
Annual reports of Visakhapatnam Cargo Handling Division
Web site: www.vizagport.com.

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18th Edition
2005

5th edition

4th edition

6th edition