LOGO

Port Financial Management

Presented By:
Nithin P
 Contents

Budget, Types & Budgetary Control

Port Accounting System

Costing

Revenue

Expenditure

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 MANAGEMENT ROLE

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 PLANNING

•
• The process of setting goals, developing strategies, and
outlining tasks and schedules to accomplish the goals.
•
• It is a systematic activity which determines when,
how and who is going to perform a specific job.
•
• Planning is a detailed program regarding future
courses of action
•

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 CONTROLLING

•
• Controlling ensures that there is effective
and efficient utilization of organizational
resources so as to achieve the planned
goals.
•
• Controlling measures the deviation of
actual performance from the standard
performance, discovers the causes of
such deviations and helps in taking
corrective actions.
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 BUDGET

• A plan for income and expenditure

over a future period which is
supposed to achieve stated
objectives.
DI
CT •
IO A budget is a description of a
NA
RY financial plan. It is a list of
estimates of revenues to and
expenditures by an agent for a
stated period of time. Normally a
budget describes a period in the
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 UNDERSTAND THE TERMS

• Budget - is a predetermined
statement of company’s Revenues
& Expenditures for a particular
financial year
• Budgeting – A system of using
budget + monitoring + correction
system
• Budgetary Control – System &
Procedures adopted for centralised
control of activities with references
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 TYPES OF BUDGET

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 INCOME BUDGET

• Prepared out of from anticipated tonnage

expected during the year and expected
vessels
• Revenue Anticipated for Cargo Handling
Services
– Eg: Exp. Tonnage 6 Lakhs – Divided by
average shipboard (15,000), the no. of
vessels (40).
– Traffic tonnage multiplied by the rates of
charges
• Revenue Anticipated for Services to
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Vessels 9
 EXPENDITURE BUDGET

• Based on no. of vessels & tonnage

top mgt sets objectives for levels of
services, like productivity, turn-
around time, avaialablity &
utilization of cargo handling
equipment
•

• Provides specific commitments like

Welfare, Sinking Funds, Retirement
Benefits, etc
•
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 CASH BUDGET

• Financial transactions are taken

place in the form of Income,
Expenditure, Assets & Liabilities
•

• All Cash in flows & out flow of real &

personal account are estimated.
•

• Also known as projected sources &

application of funds

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 STORES BUDGET

• Store Purchased and kept in stock

•
• Stores does not earn itself and high
stock may affect cash flow
•
• Prepared on the basis of expected
consumption and lead time to
procure
•
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 Contd . . . .

Stores Budget
•

•Op. Stock XXXX

•(+)Estimated Purchase XXX
•Total XXXX
•(-) Estimated Consumption XXX
•Estimated Closing Balances XXXX

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 CAPITAL BUDGET

• Done in conjunction with Engineering

Departments
•

• List of new projects also included

•

• Shows the sources if each

expenditure
– Govt. Loans, Transfer from surplus

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 PERFORMANCE BUDGETING

120 Is a technique for

presenting in terms of
function , programme ’ s and
70 activities
Correlating the financial
50
and physical aspects of
30 various

Establish relationship
2004 2005 2006 2007 between inputs and outputs

Chart Title in here

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 BUDGETORY CONTROL

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 PORT ACCOUNTING SYSTEM

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 ACCOUNTING EXPENDITURE

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 ACTIVITY WISE COMPILATION

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 COST & BUDGET CENTRES

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 INCOME HEADS

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 CODES

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 FINANCIAL OBJECTIVE

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 STEPS FOR ACHIEVING
SURPLUS

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 ANALYSIS OF COSTS

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11/02/10 26
LOGO

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