A PROJECT REPORT ON “BUDGET” AT HINDUSTHAN NATIONAL GALSS AND INDUSTRY LTD. Submitted in the Partial Fulfillment of the Requirement for the Award of the Degree Of Master of Business Administration 2009-2011 UNDERGONE AT DEPARMENT OF FINANCE Submitted To: – Submitted By:- Hindusthan National Glass & Mukesh Kumar Industry Ltd. MBA, (Finance) Virbhadra, Rishikesh MBA 3RD SEM. FOREWORD In today’s highly competitive and rapidly changing environment, the companies need well-trained and skilled worker to survive.
India is a very rich country in terms of resources, whether natural or technical but it very sad to state that India, till now, has not perfectly learnt how to deploy its manpower and its human resources for the betterment of its citizenry and business goal. On the whole the condition of our nation is not as well as it should be the reason is that, we have a great quantity of people but unfortunately it is not well trained. The only was to pull out India from this condition is concerting the human resources of the country into human capital.
That’s why management education has become more popular and important as well but no education is complete without some practical knowledge. So to get the student familiar with the real life situation, a summer training of 7-8 weeks duration has been kept in the MBA course. For my summer training, I chose the HINDUSTHAN NATIONAL GLASS &INDUSTRIES LTD. It is well established and renowned in its field and is serious about training its working and intend to make it understood that they really care for them. CONTENTS •Acknowledgement •Preface •Research objective •Research methodology of the study Experience During Summer Training •Introduction of HNGIL •HNG’s Vision •HNG’s Group profile ?Board of Directors of the Company ? Other Members ? Important departments ? Finance Department Chart ?History ?Diversified production capabilities ?Hindusthan National Glass& industries Limited ?Location Of The Company ? Location & Organizational Set up of company •Salient Features of the Company: ?Product Profile ?Raw Material Used & Its Sources ?Main Customers or Clients of the Company ?Export-Import Policy ?SWOT Analysis of the Company •HNG Policy: ?Purchase Policy ?Sales Policy Company Quality Policies ?Quality Assurance and Quality Control ? ISO Awareness •Budget ?Introduction ?Meaning of budget ?Meaning of budgeting ?Meaning of budgetary control ?Classification of budget ?Objectives of budget ?Process of budget ?Advantages of budget ?Limitation’s of budget •Data analysis of the company 1. Sales budget 2. Purchase budget 3. Material budget 4. Labor budget 5. Overheads budget •Findings •Suggestions •Conclusions •Recommendations •Bibliography ACKNOWLEDGEMENT Any job in this world, however trivial or tough cannot be accomplished without the assistance of other.
I would hereby take the opportunity to express my indebtedness to people who have helped me to accomplish this task. I take this opportunity to place on my grateful thanks and sincere gratitude to the organization HINDUSTHAN NATIONAL GLASS & INDUSTRIES LIMITED for providing me a wonderful chance of working in a prestigious company. First of all I would like to thank Shri. S. S. KANDARI Who helped me in this project, which not only increased my awareness about the latest fields but also helped to increase my confidence level.
I humbly acknowledge affectionate guidance and constant encouragement for my training, which I received from S. S. KANDARI. Last but not the least I am indeed much grateful to all faculty member’s , librarians and all other staff of my esteemed institute for time to time all assistance an issue of books etc. given most willingly. PREFACE As a part of my M. B. A. (Master in Business Administration) program I was asked to under go fifty five days summer training in any organization, so as to give exposure to practical management and to get familiar with the various activities in the organization.
I got an opportunity to undergo my summer training in the reputed organization “Hindusthan National Glass& industries Limited” in virbhadra (Rishikesh); it is the leading genset manufacturing company in India. In Hindusthan National Glass And Industries Limited. I was allowed to work on the project title “budget” of “Hindusthan National Glass& industries Limited”. Research gives an ample opportunity to apply once academic knowledge in the field of substantiated by ones inactive and lesion capabilities.
The basic purpose of this project is to present the subject matter in simple language and easily understandable style to assist the reader to develop through understanding about the actual scenario of the financial position of the organization. For analysis and interpretation, financial data has been taken from financial reports of the concern and performance is evaluated by applying the tool of ratio analysis. RESEARCH OBJECTIVES The main objective of the study is to analyze the management of budget with special reference to HNGIL.
To achieve the main objective, there are some secondary objectives of research work which are as under: ¬ •To understand the budget policies of the HNGIL •To understand the importance of budget for HNGIL •To analyze the liquidity position of the HNGIL •To study the factors that affects the budget at HNGIL •To identify some broad policy measures to improve the budget position of the HNGIL •To understand the process of budget followed at the HNGIL •To suggest measures to improve the financial health of the Company by indicating better ways of managing budget at HNGIL RESEARCH METHODOLOGY OF THE STUDY
Availability of accurate data is the key of any research work. Research work is incomplete in absence of accurate and sufficient data bank. Data can be collected by way of various methods. Basically there ate two sources of data- primary and secondary. The primary data as well as secondary data will be collected for this research work. DATA COLLECTION There are two types of data a) Primary data b) Secondary data a) PRIMARY DATA: ¬ It is collected directly from respondents using data collection methods like survey, interviews, questionnaires, measurements, direct observation, or observation or tabulation.
The research methodology we have adopted in our management thesis is qualitative and simple one based on questions that are open ended, multiple choice framed based on objective for study which were asked from employees and the : responses received from them in response to the questions asked. b) SECONDARY DATA: Secondary data is the data that already exists which has been collected by some other person or organization for their use and is generally made available to other researchers free or at a confessionals rate.
Major use of the internet in business research is in the area of secondary research. The research report and data basis maintained by major research companies are also available on the net. This makes it faster, economical and reliable for companies to know about the computer activities. The very essence of the internet as a major source of secondary information probably spring forth from the advantages of its broad scope covering virtually every topic and the reasonable cost in acquiring them.
NOTE: All the data used in making of this project is secondary data. Data used are as follows: •Annual Reports (Various Years), Hindustan National Glass Industries Limited. •Website of Hindustan National Glass Industries Ltd. (www. hngil. com) •Book for the topic explanation- Dr. A. K. Garg (Elements of Financial Management) Experience during Summer Training Experiences make life enjoyable and enriching just as my summer training in Hindusthan National Glass And Industries Limited proved to be an asset for me.
I got practical exposure in various aspects of finance and I also learnt the dynamics of work related behaviour of the people working in the organization. In the Hindusthan National Glass And Industries Limited, employees of all level are instructed to use same dress, canteen and conveyance. I am very impress from this behavioral approach used by organization. The employees of Hindusthan National Glass And Industries Limited are very helpful and cooperative with everyone. I never face any problem during my training period.
The company provided me all type of facility that I needed in my training period. I learnt various types of MIS reports like how to make profitability reports of various glasses. I understood the process of glass manufacturing used by the organization. I also gained knowledge about the purchase and payment system of factory. Quality of every product is checked by senior officials of quality control department at every step that provided me thorough learning about quality controlling mechanism. I hope all these experiences would help me in near future.
On the whole my summer training was an enriching experience for my future and I am always obliged to them for giving me such type of knowledge. INTRODUCTION TO HNGIL HNGIL is manufacturer of all varieties of glass bottles/vials. Manufacturing facilities are strategically located at Rishra near Calcutta (since 1952) and Bahadurgarh near Delhi (since 1964), Rishikesh, Pondicherry and Nashik with state-of-the-art induction furnace for manufacturing of castings in its own foundry. HNGIL has incorporated its technology from the best suppliers in Europe and USA.
HNG Group operates 10 furnaces and 42 production lines with fully automatic IS (Individual Section) machines up to 12 Sections operating on Double and Triple Gob. All the Plants have a thorough electronic inspection system right from the batch mixing till the final packing. Quality control and R&D Sections are well equipped with sophisticated instruments enabling production of international quality glassware. Well-equipped workshop to manufacture moulds for bottles of all designs & shapes, backed up by own Power Generating Plants. The far-sighted and dynamic approach of Mr.
C. K. Somany, the highly focused management strategies and the leadership qualities of his sons Mr. Sanjay Somany and Mr. Mukul Somany have turned every challenge into a winning formula. Vision “To strive to be a major international producer of quality containers glass by consistently following and adopting the most modern methods and techniques in an environment friendly manner with active involvement of its employees to meet the needs of its customers and stakeholders so as to achieve sustainable development and long term growth. ” HNGIL Group Profile
A NAME TO RECKON WITH: HNGIL, the largest and most prolific producer of glass containers, operating at present 10 furnaces at five locations (Rishra, Bahadurgarh, Pondicherry, Rishikesh, & Nasik) and production lines. In addition HNG has acquired a Glass Container manufacturing unit of M/s Haryana Sheet Glass Limited at Neemrana, Rajasthan. A fully integrated Group having its own foundry for casting, well equipped workshop for moulds and spare parts and captive power plants and quarries for sand with fleet for finished goods movement has given competitive advantage to its customers.
A MARKET LEADER : In the 5 ml – 3200 ml segment, HNG Group is the undisputed market leader catering to around 70% of the Domestic Market in the pharmaceutical, beverage, processed food, cosmetic and liquor sectors covering industry majors like, Coca-Cola, Dabur, Glaxo Smith Kline Beecham, Nestle, Pepsi, Reckitt Benckiser (India) Ltd. , Smith Kline Beecham, UB Group etc. Exports to South East, Middle East, Africa and First World Countries in Europe & North America. ON SUPER FAST GROWTH TRACK: Its spirit to ascend newer parameters remains as insatiable as ever.
The days ahead are gleaming with promise. With modernization, up gradation and foresight to meet the emerging and more distinctive demands of the customers, the Group is all set for unprecedented achievements. With projected planned investment of Rs. 3000 million in the next three years. Touching life in more ways than one and in total tune with the harmony of nature. MILESTONES : In order to keep pace with changing technology and demands, the Group has acquired the Glass Division of L & T at Nasik in October 2005, having one furnace of 320 TPD melting capacity.
HNGIL has also entered into a scheme of amalgamation with Ace Glass Containers (ACE) which scheme has been sanctioned by the Honorable High Courts of Kolkata and Delhi. Post amalgamation HNGIL’s un-audited turnover as on 31. 03. 2008 stands at a figure more than Rs. 1100 crore. Rishikesh • 2 Furnaces; Combined melting capacity of 340 MT per day • Furnace II used for manufacturing of Green glass. • 6 Lines of Glass making IS Machines • Off-site printing facility with 3 decorating lines Board of Directors of Hindusthan National Glass and Industries Limited
Shri C. K. Somany Chairman Shri Sanjay Somany Managing Director Shri Mukul Somany Joint Managing Director Other members: Shri Kishore Bhimani Shri Sujit Bhattacharya Shri R. K. Daga Shri Dipankar Chatterji Shri S. K. Bangur Shri Supriya Gupta Shri I. K. Saha IMPORTANT DEPARTMENTS & DESIGNATIONS IN HNGIL, VIRBHADRA 1) STORES: ¬ •Commercial Senior Manager- Mr. Rajeev Gaur •Assistance Manager-Mr. Ramesh Sharma •Officer Store-Mr. Umesh Gupta Mr. G. D. Bhatt •4 clerical staff 2) PRODUCTION:
