Budgeting & Manageraial Information System-prince Dudhatra

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BUDGETING & MIS SUZLON ENERGY LTD.

A

SUMMER TRAINING REPORT

ON

BUDGETING & MANAGERAIAL INFORMATION SYSTEM

AT

SUZLON ENERGY LTD. (VADODARA)

SUBMITTED BY

MALANI MAYURKUMAR MAVJIBHAI

PGDM SEM-ll

GUIDED BYMr. JAYESH DHOLARIYA & Mr. NAVIN PUJARA

ACADEMIC YEAR

2009-2011

SUBMITTED TO

PARUL INSTITUTE OF MANAGEMENT

BARODA

IN PARTIAL FULFILLMENT OF THE PGDM PROGRAMME

PARUL INSTITUTE OF MANAGEMENT1


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STUDENT DECLARATION

I here by declare that the project report entitled

BUDGETING AND MANAGERIAL INFORMATION SYSTEM

Submitted in partial fulfillment of the requirements for the diploma of

Post Graduate Diploma in Management(PGDM)

To Parul Institute of Management, Baroda, is my original work and

not submitted for the award of any other degree, diploma,fellowship, or any other similar title of prizes.

Place: BARODA

Date: MAYUR M. MALANI

The project report of



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MALANI MAYURKUMAR MAVJIBHAI

BUDGETING and MANAGERIALINFORMATION SYSTEM

Is approved and is acceptable in quality and form

Internal Examiner Director(Prof. Annirudh Tambe ) (Prof. N.K Kapoor)

ACKNOWLEDGEMENT



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Completing a task is never a one man effort. It is often the result

a valuable contribution of a number of individuals in direct or in

director indirect manner that helps in shaping and achieving an

objective. I express a sense of gratitude to my guide

I wish to express my sincere gratitude to Prof. N.K.KAPOOR,

DIRECTOR and Prof. ANNIRUDH TAMBE of Management

Department of Parul institute of management College for

providing me an opportunity to do my project work on

BUDGETING & MIS in SUZLON ENERGY LTD.

This project bears on imprint of many peoples. I sincerely thank to

my project guide Mr. JAYESH DHOLARIYA SIR, Manager

Commercial Department of SUZLON ENERGY LTD.BARODA. For

guidance and encouragement in carrying out this project work I

also wish to express my gratitude to the officials and other staff

members of SUZLON ENERGY LTD. who rendered their helpduring the period of my project work. My special thanks to Mr.

NAVIN PUJARA, ASSISTANT GENERAL MANAGER (Commercial) of

the company. For their kind co-operation to the completion of my

project work. Last but not least I wish to avail myself of this

opportunity, express a sense of gratitude and love to my friends

and my beloved parents for their manual support, strength, help

and for everything

PREFACE

Unless the knowledge is applied in the practical field, it cannot attain perfection

and maturity. A project work is the scientific and systematic study of real issue

and problems with the application of management principles, concept and



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skills. The essential ingredients of a project are that it should contain scientific

collection of data its analysis and interpretation that lead to valid conclusions

and feasible suggestion. Project work is an essential part of partial fulfillment

of the syllabus of PGDM. I have prepared this report during my summertraining at SUZLON ENERGY LIMITED, VADODARA.

This study has given real exposure to corporate finance and the confidence to

face the challenges before me in course of wind power energy ofSUZLON.

I have conducted my study under the subject BUDGETTING &

MANAGERIAL INFORMATION SYSTEM. The whole report is dealing with

the different aspects of the study the report has been return in a very

comprehensive way with a suitable heading of each section. The last section

deals with some conclusion which will be help full to the company in countering

its competition as well as having an edge over them. I have tried my best to

do justice and be honest in analyzing the topic but TO ERROR IS HUMAN and

I am not an exception to it, hence, weakness and shortcoming is unintentional.

Further, any company relevant details / data quoted in this project report has

no relevance to the current actual data / process / procedure followed by CEC

Vadodara. Information or details quoted in this report is already available in

public domain.



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EXECUTIVE SUMMARY

Company summer training is an integral part of the P.G.D.M.

programmed which commences in the first week of May and

extends to about two months. The objective of this exercise is to

get a first hand exposure to the realities of business world and

gain an insight into the working of the corporate world and

develop our managerial skills. The summer training gives us

opportunity,

To understand coordination process of finance.

To use our innovative ideas for the organization.

To apply management theory in to practical life.

To understand the complexities of organization life.

There are certain things, which are not too secret to be

disclosed but disclosure of those things, prove successful.

The summer trainees are being fresh and unbiased to the

organization, thus the origination expects some unbiased

suggestions and opinions from them because we will come to

know about extant and would be remarked.

I personally feel that company summer training is very

important aspect for the completion of P.G.D.M. course and the

two months of company training have been a quality experience

of mine. Overall, it has been a challenging job.

INDEXACKNOWLEDGEMENTPREFACEEXECUTIVE SUMMARY



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Sr. No. PARTICULAR Page No.

1 History 8

2 Company information 93 Company profile 12

4 At a glance 13

5 Vision & Mission 15

6 Philosophy & Strategy 16

7 At a glance of CEC vadodara 17

8 SWOT analysis 18

9 Introduction of Budget 22

10 Budgeting process 23

11 Variety of budget 25

12 Modern budgeting techniques 27

13 Types of budget 30

14 Budgeted P & L and Balance sheet 39

15 Variance analysis 42

16 Types of variance 43

17 Managerial information system 54

18 Conclusion 61

19 Bibliography 62

HISTORY

Suzlon was founded by Mr.Tulsi R. Tanti in 1995, when he wasworking in a family-owned textile company. In that year, India'sshaky power grid and the rising cost of electricity offset any profits

the company would make. With the help of some of his friends ofRajkot, he moved into wind energy production as a way to securethe textile company's energy needs, and founded Suzlon Energy.

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In 2001, Tanti sold off the textile business, so he could focus onthe development of his wind energy business. In 2009, Suzlon isstill actively run by Tulsi R. Tanti, now in the role of Chairman andManaging Director.

In 2003, Suzlon got its first sale in USA, with an order from

DanMar & Associates to supply 24 turbines in southwesternMinnesota.

Suzlon Rotor Corporation in 2006 began producing the blades inPipestone, Minnesota in the United States. Among its clients isWind Capital Group

In the year 2006, Suzlon reached a definitive agreement foracquisition of Belgium firm Hansen Transmissions, specializing ingearboxes for wind turbines, for $565 million. In 2007, thecompany purchased a controlling stake in Germany's REpowerwhich valued the firm at US$ 1.6 billion.

In June 2007, Suzlon had signed a contract with Edison MissionEnergy (EME) of US for delivery of 150 wind turbines of 2.1 MW in2008 and a similar volume to be delivered in 2009. EME had anoption not to purchase the 150 turbines due to be delivered in2009, which it has chosen to exercise.

COMPANY INFORMATION

BOARD OF DIRECTORS

Tulsi R. Tanti Chairman & Managing Director

http://en.wikipedia.org/wiki/Minnesotahttp://en.wikipedia.org/wiki/Pipestone,_Minnesotahttp://en.wikipedia.org/wiki/Wind_capital_grouphttp://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/REpowerhttp://en.wikipedia.org/wiki/Minnesotahttp://en.wikipedia.org/wiki/Pipestone,_Minnesotahttp://en.wikipedia.org/wiki/Wind_capital_grouphttp://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/REpower


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Girish R. Tanti Executive Director

Ajay Relan Independent Director

Ashish Dhawan Independent Director

Pradip Kumar Khaitan Independent Director

V. Raghuraman Independent Director

COMAPANY SECRETARY

Ashok Jangid

AUDITORS

SNK & Co. S. R. Batliboi & Co.

CA CA

E-2-B The 5th Avenue C-401, 4th Floor

Dhole Patil Road Panchshil Tech Park

Near Regency Hotel Yerwada ,

Pune 411 001, India Pune 411 006, India

BANKERS



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SBI IDBI

REGISTERED OFFICE

Suzlon, 5, Shrimali Society

Near Shri Krishna Complex,

Navrangpura

Ahmedabad 380 009. India

Tel. : +91-79-2647 1100

Fax : +91-79-2656 5540

Website : www.suzlon.com

CORPORATE OFFICE

Suzlon Energy Limited

One Earth (Corporate Campus)

Survey No. 180/1-8

Sadesatara Nalli

Hadapsar , Pune 411 028

BRANCH OFFICEBangalore Indore New Delhi

Chennai Jaipur Rajkot

Coimbatore Kolkata Surat

Hyderabad Mumbai Thiruvananthapuram

Lucknow Madurai Vadodara

http://www.suzlon.com/http://www.suzlon.com/


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REGISTRAR AND SHARE TRANSFER AGENTSKarvy Computershare Private Ltd.

17-24, Vittalrao Nagar, Madhupura

Hyderabad 500 081 , India

Tel : +91-40-2342 0815/16/17/18

Fax : +91-40-2342 0814

E-mail : [email protected]

mailto:[email protected]:[email protected]


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COMPANYPROFILE

Conceived in 1995 with just 20 people, Suzlon is now a leadingwind power company with:

Over 14,000 people in 21 countries Operations across the Americas, Asia, Australia and Europe Fully integrated supply chain with manufacturing facilities in

three continents

Sophisticated R&D capabilities in Belgium, Denmark,Germany, India and The Netherlands

Market leader in Asias 3rd largest wind turbinemanufacturing company in the world



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AT A GLANCE

Founded : 1995

Headquarters : Pune, India

Presence

:

21 countries: Australia, Belgium,Brazil, Canada, China, Denmark,

Germany, Greece, India, Italy, NewZealand, Nicaragua, Portugal,Romania, Spain, Sri Lanka, TheNetherlands, Turkey, Ukraine, UK,USA

Manufacturing

:

India: Maharashtra, Pondicherry,Gujarat, Daman,PadubidriChina: TianjinNorth America: Pipestone,Minnesota

R&D :Belgium, Denmark, Germany, India,Netherlands

Product

Portfolio

:

::

: S88-2.1 MW, S82-1.5 MW, S66-1.25MW, S64-1.25 MW, S52-600 kW



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:

MarketShare : Approximate 9.8 % of world

Employees :

14000+ [21 nationalities]

Listing :BSE and NSE (India), part of S&P CNXNifty Index



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VISION

To be a technology leader in the wind industry

To be among the top three windenergy companies in the world

To be the most respected brand

To be the best team and place to work at

To be the fastest growing and most profitable business

MISSION

The Suzlon Foundation is aligned to the vision of the Suzlon Groupof Companies

having a minimal impact on the natural environment enabling local communities to develop their potential empowering employees to be responsible civil society

members

committing ourselves to ethical business practices that arefair to all the stakeholders



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PHILOSOPHY & STRATEGY

Philosophy

To be a company that serves society with sustainable wind-power on a commercial scale with a focus on continuouslyincreasing efficiency and reliability of our wind turbines.

To always be committed to a life-long relationship withcustomers and work towards total customer satisfaction.

To lay importance on bettering our quality, safety and

environmental standards. To build partnerships with all stakeholders; employees,

customers, vendors, service providers, local communities andgovernments.

To conduct business only with the highest standards ofethics.

To contribute to the reduction of use of fossil fuels byreducing our carbon footprint in all our operations.

Strategy

Suzlon as a group aims to provide a strong renewable energyplatform thereby promising to power a greener tomorrow,today. Together with its subsidiary REpower, Suzlon has grownto be the 3rd largest wind turbine supplier in the world ensuringit builds a strong and futuristic path for the wind energy sector.From initiating a wind power project, till completion and evenbeyond, Suzlon ensures that nothing stands in the way of itserving its purpose.

This is with the support of its key differentiators, it is the veryphilosophy of questioning ourselves at every step that hashelped us sustain our vision. Our approach, insight, objectives

and our reports stand testimony to that.



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AT A GLANCE OF SUZLON CEC PLANTVADODARA

(CEC-COMPOSITE EXCELLENCE CENTRE)

BEGINNING 2006

PLANT ADDERESS Block No. 93

National Highway No.8

Varanama Vadsala

Vadodara 391 240, India

OFFICE ADDERESS Suzlon Energy LTD.

303-304, Gunjan Tower,

Alembic Gorwa Road,

Subhanpura,

Vadodara-390023

EMPLOYEE 250+

DEPARTMENT CR&D (composite research &development)

MMU (mould manufacturing unit)

PIC (prototype, installation &

commissioning)

BTCG (blade testing center Gujarat)

SWOT ANALYSIS

STENGTH



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Skill amalgamation- Cost reduction

Suzlon has best R & D department in India andEurope highly developed. So they reduced the costper unit of power generation and also has maintaina consistence new product launch schedule.

- Reverse outsourcingSuzlon has international office Aarhus, Denmark.Where it has wind energy expertise and largenetwork of component supplier.

End to End solution

Suzlon offer to their customers end to end wind energysolution like, wind resource mapping , site development& installation and operation & maintenance services.

Market leadership in India and Global presenceSuzlon outlook to turn favourable 2010 as easing credit& lower cost boost demand from the US, Europe, China,

India.

Growth

Suzlon Growing at 29 % CAGR for past 10 years, higherthan industry rate.

Integrated business modelSuzlon plans to enter into solar & Bio- Fuel which giveto increase power produced capacity of 10-20 MW.

Innovation

Suzlons R&D efforts include a highly successful practiceof leveraging skills and knowledge boost the industry

towards growth and innovation.

WEAKNESS

Management structure

Suzlon is fairly dependent on promoter Mr. Tulsi R. Tantiand Board of Directors.

Capital Intensive



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The wind power project required high upfront capitalinvestment per kwh of energy.

Operating risk- Cash conversion

Cash are received mostly from the internationalclients so that involves exchange rate risk.

- Growth in overweight in assetsRoot cause analysis shows cost overrun due toretrofitting in winter which is an operationallychallenging season results in low productivityinefficiencies.

Financial performance- Profitability

Suzlon face foreign exchange losses and so thesuzlon face loss since past 2 years.

- Net incomeThe allocation of Equity Shares pursuant toEmployee Stock Option Plan will result in a change

to income statement and will adversely impactcompany net income.

OPPORTUNITY

Environment & Government initiativesIn Indias projection of ministry says till 2012 the windpower installation capacity increase to 40000 MW.

Favorable tax exemption

The wind power industries get tax benefit fromgovernment & subsidies from regulatory bodies.



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Untapped offshore marketThe estimation of demand for power is still high in Indiain recent period. According to CEA, the energy demandincrease by 44 % till 2012.

Green PowerThe other power sector are spread the pollution inglobal around 40 % of global CO2 emissions.Comparison of that wind power save the 10 bn tones of

CO2 within 10 years .

THREATS

Technological risk

The failure to keep technical knowledgeConfidential could erode company competitiveadvantage

Over dependence on USUSA accounts for 50 % sale for Suzlon Recent economicslowdown results affects the States wind energy sectorwhich results in liquidity crunch and investment setbackin India

Further cancellation of order



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Construction in operation of wind power project issubject to regulation and other control. Most demandedcountries are affected by the recession.

WHAT IS BUDGET?

INTRODUCTION

A Budget (from old Frenchbougette, purse) is generally a listof all planned expenses and revenues. It is a plan for saving andspending. A budget is an important concept in microeconomics,which uses a budget line to illustrate the trade-offs between twoor more goods. In other terms, a budget is an organizational planstated in monetary terms.

In summary, the purpose of budgeting is to:

Provide a forecast of revenues and expenditures i.e.construct a model of how our business might performfinancially speaking if certain strategies, events and plansare carried out.

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Enable the actual financial operation of the business to bemeasured against the forecast.

A plan for a person or company's expenditures . Making a budgetinvolves looking at one's revenue or income and matching that toexpenses such that the person or company pays for all necessaryexpenses. A budget is in balance if revenues equal expenditures,in deficit if the person or company must resort to borrowing tomeet expenses, and in surplus ifmoney is left over to be used forsavings or expansion.

In short, budget means it is a short term planning in terns of

numerical data for the future course of action for any person orcompany.

BUDGETING PROCESS

The Planning/ Budgeting process involves four stages.They are:

objective determination stage

goal determination stages

strategy formulation stage

budget preparation stage

Objective Determination Stage:The first stage is setting the Objectives which are defined asthe broad and long- range desired state or position in thefuture. They are motivational or directional in nature and are

expressed in Qualitative terms.

Goal Determination Stage:

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The second stage is specifying the goals.The term goalrepresents targets, specific in quantitative terms to beachieved in a specific period of time. The timing ofintroducing new products, purchase of new plant and

machinery and expected rate of return are examples of timeand quantity oriented goals.

Strategy Formulation Stage:

The next step involves laying down the strategies.Strategies denote specific methods or courses of action toachieve the goals, for instance, promotion of sales throughprice reduction or aggressive advertisement and so on.

MERIT Improved management control of organization.

Improved financial control.

Allow manager to be aware of their responsibility.

Limited resources are used where most effective

Budgeting can motivate managers Can improve communication systems withinorganization.

DEMERIT



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Those excluded from the budgeting process, may not becommitted to the budgeted and may feel demotivated.

If budgets are inflexible then change in the market or othercondition may not be met by appropriate changes in the

budget. Also an effective budget can only be based on good quality

information.

VARIETY OF BUDGET

The variety of budget as are under. Business start-up budget. Corporate budget.

Event management budget. Government budget. Personal or family budget.

Business start-up budget:

The process of calculating the costs of starting a smallbusiness begins with a list of all necessary purchases

including tangible assets (for example, equipment, inventory)and services (for example, remodeling, insurance), workingcapital, sources and collateral. The budget should contain anarrative explaining how you decided on the amount of thisreserve and a description of the expected financial results ofbusiness activities. The assets should be valued with eachand every cost. All other expenses are like labour factoryoverhead all freshmen expenses are also included intobusiness budgeting.

Corporate budget:

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The budget of a company is often compiled annually, butmay not be. A finished budget, usually requiring considerableeffort, is a plan for the short-term future, typically one year.While traditionally the Finance department compiles the

company's budget, modern software allows hundreds or eventhousands of people in various departments (operations,human resources, IT etc) to list their expected revenues andexpenses in the final budget.

If the actual figures delivered through the budget periodcome close to the budget, this suggests that the managersunderstand their business and have been successfully drivingit in the intended direction. On the other hand, if the figures

diverge wildly from the budget, this sends an 'out of control'signal, and the share price could suffer as a result.

Event management budget:

A budget is a fundamental tool for an event director topredict with reasonable accuracy whether the event willresult in a profit, a loss or will break-even. A budget can alsobe used as a pricing tool.

Government budget:

The budget of a government is a summary or plan of theintended revenues and expenditures of that government. Agovernment budget is a legal document that is often passedby the legislature, and approved by the chief executive-orpresident. The two basic elements of any budget are therevenues and expenses. In the case of the government,

revenues are derived primarily from taxes. Governmentexpenses include spending on current goods and services,which economists call government consumption; governmentinvestment expenditures such as infrastructure investment orresearch expenditure; and transfer payments likeunemployment or retirement benefits.

Personal or family budget:

In a personal or family budget all sources ofincome (inflows)are identified and expenses (outflows) are planned with theintent of matching outflows to inflows (making ends meet.)

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In consumer theory, the equation restricting an individual orhousehold to spend no more than its total resources is oftencalled the budget constraint.

MODERN BUDGETING TECHNIQUES

Zero based budget.

Rolling based budget.

Performance based budget.

Fixed budget.

Flexible budget.

Activity based budget.

ZERO BASED BUDGETING

Zero-based budgeting is a technique of planning anddecision-making which reverses the working process of

traditional budgeting. In traditional incremental budgeting,departmental managers justify only increases over theprevious year budget and what has been already spent isautomatically sanctioned. No reference is made to theprevious level of expenditure. By contrast, in zero-basedbudgeting, every department function is reviewedcomprehensively and all expenditures must be approved,rather than only increases. Zero-based budgeting requiresthe budget request be justified in complete detail by each

division manager starting from the zero-base. The zero-baseis indifferent to whether the total budget is increasing ordecreasing.

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The term "zero-based budgeting" is sometimes used inpersonal finance to describe "zero-sum budgeting", thepractice of budgeting every dollar of income received, andthen adjusting some part of the budget downward for every

other part that needs to be adjusted upward.

Zero based budgeting also refers to the identification of atask or tasks and then funding resources to complete thetask independent of current resourcing.

ROLLING BUDGET

Rolling budget can be defined as: Budget or plan that isalways available for a specified future period by adding aperiod (month, quarter or year) to the period that just endedalso called CONTINUOUS BUDGET.

Rolling budget is a budget prepared with a fixed planninghorizon. To achieve this, the budget is constantly beingadded to at the same rate as time is passing.it's very usefulfor companies experiencing rapid change, as they requireforecasting for much shorter time periods.

PERFORMANCE BASED BUDGET

Performance budgets use statements of missions, goals andobjectives to explain why the money is being spent. It is away to allocate resources to achieve specific objectives basedon program goals and measured results. The key tounderstanding performance-based budgeting lies beneath theword result. In this method, the entire planning andbudgeting framework is result oriented. There are objectivesand activities to achieve these objectives and these form thefoundation of the overall evaluation.



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According to the more comprehensive definition of Segaland Summery, performance budgeting comprises threeelements:

the result (final outcome) the strategy (different ways to achieve the finaloutcome) activity/outputs (what is actually done to achievethe final outcome)

FIXED BUDGET

one based on a single level of activity (e.g., a particular

volume of sales or production). It has two characteristics: (1)it is geared toward only one level of activity; (2) actualresults are compared against budgeted (standard) costs onlyat the original budget activity level. A Flexible (Variable)Budget differs from a static budget on both scores. First, it isnot geared to only one activity level, but rather, toward arange of activity. Second, actual results are not comparedagainst budgeted costs at the original budget activity level.Managers look at what activity level was attained during a

period and then turn to the flexible budget to determine whatcosts should have been at that actual level of activity.

FLEXIBLE BUDGET

Flexible budgets are one way companies deal with differentlevels of activity. A flexible budget provides budgeted datafor different levels of activity. Another way of thinking of a

flexible budget is a number of static budgets. For example, arestaurant may serve 100, 150, or 300 customers anevening. If a budget is prepared assuming 100 customers willbe served, how will the managers be evaluated if 300customers are served? Similar scenarios exist withmerchandising and manufacturing companies. To effectivelyevaluate the restaurant's performance in controlling costs,management must use a budget prepared for the actual levelof activity. This does not mean management ignoresdifferences in sales level, or customers eating in arestaurant, because those differences and the managementactions that caused them need to be evaluated, too.



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ACTIVITY BASED BUDGET

A method of budgeting in which the activities that incur costsin every functional area of an organization are recorded andtheir relationships are defined and analyzed. Activities arethen tied to strategic goals, after which the costs of theactivities needed are used to create the budget.

Activity based budgeting stands in contrast to traditional,cost-based budgeting practices in which a prior period'sbudget is simply adjusted to account for inflation or revenue

growth. As such, ABB provides opportunities to alignactivities with objectives, streamline costs and improvebusiness practices.

TYPES OF BUDGET

Sales budget

Production budget

Cash budget/cash flow

Project budget

Marketing budget

Revenue budget

Expenditure budget

Purchase budget

Human resource budget

Inventory budget

Sales budget:

The sales budget is an estimate of future sales, often brokendown into both units and dollars. It is used to createcompany sales goals.

A sales budget is a detailed schedule showing the expectedsales for the budget period; An accurate sales budget is thekey to the entire budgeting in some way. If the sales budget



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is sloppily done then the rest of the budgeting process islargely a waste of time.

The sales budget will help determine how many units will

have to be produced. Thus, the production budget isprepared after the sales budget. The production budget inturn is used to determine the budgets for manufacturingcosts including the direct materials budget, the direct laborbudget, and the manufacturing overhead budget. Thesebudgets are then combined with data from the sales budgetand the selling and administrative expenses budget todetermine the cash budget. In essence, the sales budgettriggers a chain reaction that leads to the development of the

other budgets. The selling and administrative expensesbudget is both dependent on and a determinant of the salesbudget. This reciprocal relationship arises because sales willin part be determined by the funds committed for advertisingand sales promotion

Production budget

Product oriented companies create a production budgetwhich estimates the number of units that must bemanufactured to meet the sales goals. The production budgetalso estimates the various costs involved with manufacturingthose units, including labor and material.

Suzlon Energy Ltd.Production/Sales Plan for FY 2010-11

Sno Project No. Qty UOM Destination Target Date Responsibility Remarks

1 Product XXX/10-11/001 1 Each Padubidri 28-Nov-10

2 Product XXX/10-11/002 1 Each Udipi 23-Nov-10

3 Product XXX/10-11/003 2 Each Kutch 10-Dec-10

2 Each MaharashtraSite

4 Project XXX/10-11/004 1 Each NCU Daman 23-Nov-10

5 Project XXX/10-11/005 1 Each Dhule 15-Dec-10

1 Each Pondy

6 Project XXX/10-11/006 1 Each Padu 24-Dec-10

7 Project XXX/10-11/007 1 Each Padu 1/30/2011

8 Project XXX/10-11/008 1 Each Padu 2/7/2011

9 Project XXX/10-11/009 1 Each Padu 12/31/201010 Project XXX/10-11/010 1 Each Padu 8/30/2010

11 Project XXX/10-11/011 1 Each Bhuj 9/30/2010

12 Project XXX/10-11/012 1 Each Pondy 12/30/2010

http://www.accountingformanagement.com/direct_materials_budget_definition.htmhttp://www.accountingformanagement.com/direct_labor_budget_definition.htmhttp://www.accountingformanagement.com/direct_labor_budget_definition.htmhttp://www.accountingformanagement.com/manufacturing_overhead_budget_definition.htmhttp://www.accountingformanagement.com/selling_and_admn_expenses_budget.htmhttp://www.accountingformanagement.com/cash_budget_definition.htmhttp://www.accountingformanagement.com/selling_and_admn_expenses_budget.htmhttp://www.accountingformanagement.com/selling_and_admn_expenses_budget.htmhttp://en.wikipedia.org/wiki/Production_budgethttp://www.accountingformanagement.com/direct_materials_budget_definition.htmhttp://www.accountingformanagement.com/direct_labor_budget_definition.htmhttp://www.accountingformanagement.com/direct_labor_budget_definition.htmhttp://www.accountingformanagement.com/manufacturing_overhead_budget_definition.htmhttp://www.accountingformanagement.com/selling_and_admn_expenses_budget.htmhttp://www.accountingformanagement.com/cash_budget_definition.htmhttp://www.accountingformanagement.com/selling_and_admn_expenses_budget.htmhttp://www.accountingformanagement.com/selling_and_admn_expenses_budget.htmhttp://en.wikipedia.org/wiki/Production_budget


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13 Project XXX/10-11/013 1 Each Bhuj 12/30/2010

14 Project XXX/10-11/014 1 Each China 1/31/2011

15 Project XXX/10-11/015 1 Each Pondy 3/31/2011

Cash Flow/Cash budget:

The cash flow budget is a prediction of future cash receiptsand expenditures for a particular time period. It usuallycovers a period in the short term future. The cash flowbudget helps the business determine when income will besufficient to cover expenses and when the company will needto seek outside financing.

Budgeted Cash Flow 2010-11Vertical:

No. Heads Monthwise Payment

Apr-

10

May-

10

Jun-

10

Jul-

10

Aug-

10

Sep-

10

Oct-

10

Nov-

10

Dec-

10

Jan-

11

Feb-

11

Mar-

11 Total

ACashOutflow

1

Import /DomesticLCRetirement -

2 DA & Cash -

3 Advance -

4

Custom dutyand otherdelivery cost -

5

Outwardlogistic -Domestic -

6

Outwardlogistic -Export -

7 Overheads -

8 Capex -

Total- - - - - - - - - - - - -

B New LC

http://en.wikipedia.org/wiki/Cash_flowhttp://en.wikipedia.org/wiki/Cash_flow


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Requriment

1Import-LC/CAD -

2Domestic-LC/CAD -

Total

- - - - - - - - - - - - -



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Project budget:

The project budget is a prediction of the costs associated

with a particular company project. These costs include labor,materials, and other related expenses. The project budget isoften broken down into specific tasks, with task budgetsassigned to each.

(Not applicable for Suzlon CEC- Vadodara)

Marketing budget:

The marketing budget is an estimate of the funds needed forpromotion, advertising, and public relations in order tomarket the product or service.

(Not applicable for Suzlon CEC- Vadodara)

Revenue budget:

The Revenue Budget consists of revenue receipts and the

expenditure met from these revenues. Tax revenues aremade up of taxes and other duties that the governmentlevies.

A revenue budget identifies each of the individual revenuesources for which the organization is to be responsible;estimates the amount of revenue each is to "earn" in thebudget year; documents the basis for the estimate and otherimportant information about each source; and assigns

responsibility for revenue management (including estimateupdating) to a specific organization unit/manager. Amanagement responsibility to be associated with revenuebudgeting is the development of monthly plans for revenuerecognition and collection.

Expenditure budget:

A budget type which include of spending data items.Budget

based on the cost ofgoods and services already received andpaid.

http://www.businessdictionary.com/definition/budget.htmlhttp://www.businessdictionary.com/definition/cost.htmlhttp://www.businessdictionary.com/definition/goods.htmlhttp://www.businessdictionary.com/definition/services.htmlhttp://www.investorwords.com/3569/paid.htmlhttp://www.businessdictionary.com/definition/budget.htmlhttp://www.businessdictionary.com/definition/cost.htmlhttp://www.businessdictionary.com/definition/goods.htmlhttp://www.businessdictionary.com/definition/services.htmlhttp://www.investorwords.com/3569/paid.html


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Defined Group

Budget2009-10

Actual2009-

10Budgeted 2010-11

Apr10

May10

Jun10

Jul10

Aug10

Sep10

Oct10

Nov10

Dec10

Jan11

Feb11

Mar11 Total

Manufacturing

Power & Fuel

- - - - - - - - - - - - - - -

Factory Expenses

- - - - - - - - - - - - - - -

Repairs & Maintenance

- - - - - - - - - - - - - - -

Quality Assurance Ex

- - - - - - - - - - - - - - -

Insurance

- - - - - - - - - - - - - - -

Crane Hiring Charges

- - - - - - - - - - - - - - -

Selling andAdmin

Advertisement and Sa

- - - - - - - - - - - - - - -

Auditors' Remuneration

- - - - - - - - - - - - - - -

Charity and Donation

- - - - - - - - - - - - - - -

Communication Expense

- - - - - - - - - - - - - - -

Consultancy Charges

- - - - - - - - - - - - - - -

Conveyance Expenses

- - - - - - - - - - - - - - -

Exchange Differences

- - - - - - - - - - - - - - -

Maintenance Warranty

- - - - - - - - - - - - - - -

Other Selling and AdminExpenses

- - - - - - - - - - - - - - -

R&D, Certification &

- - - - - - - - - - - - - - -

Rates and Taxes

- - - - - - - - - - - - - - -

Rent

- - - - - - - - - - - - - - -

Sales Commission

- - - - - - - - - - - - - - -

Travelling Expenses

- - - - - - - - - - - - - - -

Vehicle Expenses

- - - - - - - - - - - - - - -

Staff WelfareExpens

- - - - - - - - - - - - -

Total


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FIX / VARIABLEGroup

Budget2009-10

Actual2009-10

Budgeted 2010-11

Apr10 May10 Jun10 Jul10 Aug10 Sep10 Oct10 Nov10 Dec10 Jan11 Feb11 Mar11 Total

FIX - - - - - - - - - - - - - - -

VARIABLE - - - - - - - - - - - - - - -

Total

Standard Group Budget2009-10

Actual2009-10

Budgeted 2010-11

Apr10

May10

Jun10

Jul10

Aug10

Sep10

Oct10

Nov10

Dec10

Jan11

Feb11

Mar11 Total

Advertisement and Sa

- - - - - - - - - - - - - - -

Auditors' Remuneration

- - - - - - - - - - - - - - -

Charity and Donation

- - - - - - - - - - - - - - -

Communication Expens

- - - - - - - - - - - - - - -

Consultancy Charges

- - - - - - - - - - - - - - -

Conveyance Expenses

- - - - - - - - - - - - - - -

Crane Hiring Charges

- - - - - - - - - - - - - - -

Exchange Differences

- - - - - - - - - - - - - - -

Factory Expenses

- - - - - - - - - - - - - - -

nsurance

- - - - - - - - - - - - - - -Maintenance Warranty

- - - - - - - - - - - - - - -

Other Selling and AdminExpenses

- - - - - - - - - - - - - - -

Power & Fuel

- - - - - - - - - - - - - - -

Quality Assurance Ex

- - - - - - - - - - - - - - -

R&D, Certification &

- - - - - - - - - - - - - - -

Rates and Taxes

- - - - - - - - - - - - - - -

Rent

- - - - - - - - - - - - - - -



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Repairs & Maintenanc

- - - - - - - - - - - - - - -Sales Commission

- - - - - - - - - - - - - - -Staff Welfare Expens

- - - - - - - - - - - - - - -Travelling Expemses - - - - - - - - - - - - - - -

Vehicle Expenses - - - - - - - - - - - - - - -

Total- - - - - - - - - - - - - - -

Purchase budget:

The purchase budget is another functional budget thatestimates the purchase requirement of materials utilized inthe production process. The purchase budget is based on the

production budget and the standard material consumption

requirement for the production estimates.

Inventory budget

The inventory budget shows the closing stock of raw

materials, stores and spares, loose tools, work in progressand the finished goods. The production budget, the salesbudget, and the inventory norms adopted by the


Supply Chain Management

FY 2010-2011 Purchase Plan

Model

Qty

MW Total Purchase Amount - Rs. Cr Per WTG - Rs. Cr

Nacel

le

Blad

e

Electric

al

Tow

er

Tot

al

Nacel

le

Blad

e

Electric

al

Tow

er

Tot

al

India

Product A - - - - - -Product B - - - - - -Produ

ct C - - - - - -Product D - - - - - -

Total

- - - - - - -Export -Product E - - - - - -Product F - - - - - -

Total- - - - - - -

Gran

d

Total

- - - - - - -


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management determine the level of closing inventory. Theproduction budget, materials purchase budget, the budget,the budgeted profit and loss statement and the budgetedbalance sheet uses information from this budget.

Manpower budget

Manpower planning, the link to organizational success andstrategies to compile a plan that delivers the right people atthe right time. The course also explores how an effectivemanpower plan can meet the challenges and the

opportunities that localization initiatives offer organizations inthe Gulf.

Manpower Cost

Amount Rs. Lacs

Vertical Grade

First Half year Second half year Co. Roll Contract Total Co. Roll Contract Total

HC Cost HC Cost HC Cost HC Cost HC Cost HC Cost

AAAAVertical

S3 &

Above S2-S1

M6-M5

M4-M2

M1-M0

TOTAL

BBBBVertical

S3 &

Above

S2-S1

M6-M5

M4-M2 M1-M0

TOTAL

CCCCVertical

S3 &

Above

S2-S1

M6-M5

M4-M2

M1-M0

TOTAL

DDDDVerticalS3 &

Above

S2-S1 M6-M5



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M4-M2

M1-M0

TOTAL

orporateunctions

S3 &

Above

S2-S1

M6-M5

M4-M2

M1-M0

TOTAL

and Total

S3 &

Above

S2-S1

M6-M5

M4-M2 M1-M0

TOTAL

BUDGETED P & L AND BALANCE SHEET

PROFIT & LOSS A/C

Suzlon Energy Ltd.

BUDGETED PROFIT AND LOSS ACCOUNT

For the period 01-04-2009 to 31-03-2010

Budget Actual

In Lac INR In Lac INR

PERIOD 2009-2010 2009-2010

SR.NO.

PARTICULARBUDGETAMOUNT

TOTALTotal Act 2009-10

TOTAL

A INCOME 1,221 1,013

1 Sales Income 1,250 1,067

2 Other Income 100 56

3 Less: Govt Levies 129 110

B EXPENSES 666 532

1 Personnel Cost 267 202

2 Material costs 140 113

3 Utilities & Other Op Cost 103 86

4 Administrative costs 129 106

5 Licences/Finances 27 25

C EBDITA 556 482

D DEPRECIATION 276 276

E EBITA 280 206

F INTEREST 145 145



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ON LONG TERM LOAN 145 145

G EBTA 135 61

I Taxable Income 135 61

J TAX (@30%) 40 18

K NET PROFIT 94 42

Analysis of Profit & loss A/c

Sales

A total budgeted sale is Rs 1250 lac and an actual sale ismade Rs 1067 lac. So its reduced by Rs. 183 lac. Almost15% is reduced. So that company needs to run promotionnext year and improve up selling skills.

Income

Total budgeted income is Rs 1221 lac and actual income ishappened Rs 1013. Which shown its reduced Rs 208 lac ,almost 17% decreased because due to reduced sales anddisimprove margin, we have to Rs 208 lac less this year tocover overhead and provide profit.

Expenses

Total budgeted expense is Rs 666 and actual expensesincurred Rs 532. So here variance is positive. And its exp. isless Rs 134 lac than budgeted Exp.

Depreciation

Depreciation amount is same (budgeted and actual) so thereis no change in actual figure.

Interest



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Interest is also same because in between there is not takenany loan so thats why there is no change in amount.

NetProfit

Here budgeted profit is calculated Rs 94 lac but due to somereason profit is reduced Rs 52 lac so actual profit is madeonly Rs 42 lac. Thus manager needs to identify reason andimplement solutions. And also needs to watch deployment ofstaff and review employment contract.And also some external factor are affected like recessionperiod, inflation, some government policy, also our sales is

decreased.

BALANCE SHEET

Suzlon Energy Ltd.

BUDGETED BALANCE SHEET as on 31-03-2009

Budget Actual

2009-10 2009-10

LIABILITIES AMOUNT (Rs Lac) AMOUNT (Rs Lac)

CAPITAL

RESERVE AND SURPLUS

SECURED LOANS

TERM LOANS 5,145 5,145

SHORT TERM BORROWING

CURRENT LIABILITIES AND PROVISIONS

PROFIT & LOSS A/C BALANCE (PROFIT) 94 42

TOTAL 5,240 5,188

2009-10 2009-10

ASSETS AMOUNT (k) AMOUNT (k)

FIXED ASSETS

BUILDING 3,065 3,065

EQUIPMENTS 3,843 3,843



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LESS: DEPRECIATION (1,763) (1,763)

CURRENT ASSETS

CASH & BANK 94 42

MISCELLANEOUS EXPENSES & LOSSES - -

TOTAL 5,239 5,188

Balance sheet analysis

Here above budgeted and actual balance sheet figures are

mostly same so thats why no liability and asset are change.Its actually happened with budgeted. But only cash and bankbalance are different from actual and budgeted. Cash isreduced Rs 52 lac so its almost 55% decreased because ofless selling income and may be more cash expenses.

VARIANCE ANALYSIS

Variance analysis is usually associated with explaining thedifference (or variance) between actual costs and thestandard costs allowed for the good output. For example, thedifference in materials costs can be divided into a materialsprice variance and a materials usage variance. The differencebetween the actual direct labor costs and the standard directlabor costs can be divided into a rate variance and anefficiency variance. The difference in manufacturing overheadcan be divided into spending, efficiency, and volumevariances. Mix and yield variances can also be calculated.Variance analysis helps management to understand thepresent costs and then to control future costs.Variance analysis is also used to explain the differencebetween the actual sales dollars and the budgeted salesdollars. Examples include sales price variance, sales quantity(or volume) variance, and sales mix variance. A difference inthe relative proportion of sales can account for some of the

difference in a companys profits.



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Variance analysis, in budgeting (or management accountingin general), is a tool of budgetary control by evaluation ofperformance by means of variances between budgetedamount, planned amount or standard amount and the actual

amount incurred/sold. Variance analysis can be carried outfor both costs and revenues.

When effect of variance is concerned, there are two types ofvariances:

When actual results are better than expected results givenvariance is described as favorable variance. In common usefavorable variance is denoted by the letter F - usually in

parentheses (F).

When actual results are worse than expected results givenvariance is described as adverse variance, or unfavorablevariance. In common use adverse variance is denoted by theletter A or the letter U - usually in parentheses (A).

Types of variance

MaterialcostvarianceIt is the difference between the standard cost of material

specified and the actual cost of material used. The materialcost variance may be divided into material price variance andmaterial usage variance


Variances

MaterialVariance

LabourVariance

OverheadVariance
http://en.wikipedia.org/wiki/Management_accountinghttp://en.wikipedia.org/wiki/Management_accounting


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Material price variance

This is that portion of the material cost variance which is dueto the difference between the standard and the actual pricespecified and the actual price paid. If the actual price ishigher than standard price, it would result in adverse pricevariance and if the actual price is lower than standard price,the result is a favourable price variance.

Material price variance=AQ (SP-AP)Where,AQ=actual quantitySP=standard priceAP=actual price

Material usage variance


Material costvariance

Material pricevariance

Material usagevariance

Material mixturevariance

Material yieldvariance

Material sub-usage variance


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This is that portion of material cost variance which is due tothe difference between the standard quantity of actualproduction and the actual quantity used.

Material usage variance=SP (SQ-AQ)Where,SP=standard price,SQ=standard quantity,AQ=actual quantity.

Material mixture variance

This is that portion of usage variance which is due to thedifference between the standard and actual composition ofmixture.

Material mixture variance= (standard cost of actual mixture atstandard rate of mixture)-(standard cost of actualmixture)

=standard price [actual quantity in standard mix(i.e.RSQ)-actual

quantity

Where,

Revised standard quantity

Revised standard quantity=total actual standard quantity of particularQuantity consumed material

Total standard quantity of allThe material

Material yield variance

The variance arises due to the difference between thestandard yield specified and actual yield obtained. This alsoportion of the material usage variance.



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Material yield variance=std .Cost per unit of output (std. Output -actual output)

Where,

Std. Cost per Total cost of standard mix at standardunit of Output = price Net standard output

Material sub-usage variance

When a product is produced from the mixture of two or more

kinds of material, there may arise material sub-usagevariance. There can be two possibilities:

Total quantity of material consumed and standard quantityare not equal, and mix ratios are also different.

Total quantity of material consumed and standard quantityare not equal, but mix ratios are equal.

It should be noted that material sub-usage variance iscalculated only when the quantity of output is not given.

Material sub-usage variance= (SQ-RSQ)SP

Where,SQ=Sdt. Quantity,RSQ= Revised standard quantity,

SP= standard price,

Suzlon Energy Ltd.Material Variance for FY 2009-10 * Fig in Lac INR

*Figs in Bracket() means Negative Variance

Sno Particulars Budget Qty Actual Qty Variance

1 Materials Requirement 1,400 1,425 (25)

2 Variance due to Quantity DifferenceBud Vs Act (100)Total Qty 140 150 (10.0)



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3Variance due to Material RateDifference Bud Vs Act 75Material Price Per Unit 10 9.50 (0.50)

Material price variance

MPV = AQ(SP-AP)= 150(10-9.5)= 150*0.5= 75(F)

Material usage variance

MUV = SP(SQ-AQ)= 10(140-150)= 10*(-10)= 100(A)

Material cost varianceMCV = MPV + MUV

= 75 + (-100)= 25(A)

Labour cost variance

Labour cost variance is the difference between the standard

direct wages specified for the activity achieved and the actualdirect wages paid.We can classified are as under.



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Labour rate varianceThis is that portion of the labour cost variance which iscaused by the use of actual wage rate other thanpredetermined.

Labour rate variance=actual labour time (Std. wage rate-actual

wage rate)

Labour efficiency variance

It is the difference between the standard time specified andthe actual time spent multiplied by standard wage rate.

Labour efficiency variance= standard wage rate (standard labourtime-actual labour time)

Labour idle time variance

It is that portion of labour cost variance which is due to theabnormal idle time of worker. This variance is shown

separately to show the effect of abnormal causes affectingproduction, such as power failure, breakdown of machinery,shortage of raw material, etc. While calculate labour


LabourCost

Variance

LabourRate

Variance

LabourEfficiencyVariance

LabourIdle timeVariance

LabourYield

Variance

LabourMix

Variance


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efficiency variance, abnormal idle time is deduct from theactual time expended to the ascertain the real efficiency ofthe workers.

Labour idle time variance=abnormal idle time (standard wagerate)

Labour yield variance

It is computed on the basis of the increase or decrease in theactual yield or output when compared to the standard.

Labour yield variance=

Standard yield standardIn units expected actual * labourFrom the actual yield costHour worked per unit

Labour mix variance

Different types of workers are required in the production,e.g. skill, unskilled, men, woman, etc. Keeping in view theproduction efficiency of the factory. To control the cost, astandard mix ratio is specified for various types of workers.

Thus labour mix variance arise. It is also known as gangcomposition variance.

Labour mix variance=actual hours (standard rate-actual rate)

Suzlon Energy Ltd.



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Manpower Variance for FY 2009-10

Sno ParticularsBudgetSalary

ActualSalary Variance

1 Salary Without Expats 280 91 189

2 Other Salary Admin Charges - 03 Expats Salary (@9500 Eur per Month) 0 744 Total Salary 280 165 115

5Variance due to Manpower Difference BudVs Act 52No of Man Power 22 18 4

6Variance due to Manpower Rate DifferenceBud Vs Act 72

Average Rate Per Person 13 9 4

Labour rate variance

LRV = AL (SWR-AWR)= 18(13-9)= 72(F)

Labour efficiency variance

LEV = SWR (SL-AL)

= 13 (22-18)= 52(F)

Overhead variance

There can be variance in overhead also just as in directmaterial or direct labour. To find overhead variance, standardoverhead set for a particular product for a certain period are



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compare with the actual overheads pertaining to thatparticular product produced during that particular period.

As overhead may be variable or fixed in nature, overhead

variance is also calculate separately as variable overheadvariance and fixed overhead variance. Sum of these two willbe the total overhead variance.

Fixed overhead variance

Various definitions and terminology appear in texts inmanagement accounting on the subject of the preparationand interpretation of fixed overhead variances

The difference between the fixed overhead recovered in theactivity achieved and the actual fixed overhead incurred. Itrepresents either an under or over-recovery of fixed cost.

Fixed expenditure VarianceThe different between the amount actually spent during acertain period as fixed overhead and the amount of fixedoverhead budgeted for the period is express by this variance.This part of fixed overhead cost variance whether the actualamount of fixed overhead is less or more then the amountbudgeted for it.

Fixed expenditure variance= Budgeted fixed overhead-actual

overhead

Fixed volume variance


Total overheadVariance

Variable overhead

Variance

Fixed overhead

Variance


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Volume variance is caused mainly due to the differencebetween budgeted output and actual output. To calculate thisvariance, the difference between the budgeted output andactual output is multiply by the budgeted standard

absorption rate.

Fixed volume variance = standard cost (standard quantity/hour-actual quantity/hour)

Fixed efficiency varianceThis variance gives information about the efficiency ofworkers because it arises due to their being more or less

efficient. It also arise due to change in production process orquality of material and efficiency of machinery, plant, andworker.

Fixed efficiency variance = standard cost (actual quantity standard quantity/hours)

Fixed capacity variance

Capacity is expressed in terms of average direct labour hourper day. If capacity is utilized to a level less or more tha theplanned standard, variance arises. Shortage of workers,absence of worker, fall in demand, lock out, strike,breakdown, etc. are some of the reasons of less utilization ofcapacity.

Fixed capacity variance = standard cost (standard quantity budgeted quantity)

Variableoverhead variance

Difference between the standard variable overhead and

absorbed variable overhead is called variable overheadvariance. If the variable overhead absorbed to actual output



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is more or less then its standard variable overhead, thisvariable is created.Overhead variable is the difference between the amountcalculated at standard rate of variable overhead and the

amount calculate at actual rate of variable overhead on theactual output.

Variable overhead variance = actual output (standard rate- actualrate)

=AO (SR-AR)=SVO AVO

Where,SVO=standard variable overhead,

AVO=actual variable overhead,

Variance overhead spending variance

VOSV= (actual hours-standard variable overhead rate per hour)-(actual hours-actual variable overhead rate per hour)

Variable overhead efficiency variance

VOEV= (standard hours allowed for output-actual hours taken)*standard variable overhead rate per hour

= (actual output hours*standard per unit)-(actual hours *standard variable overhead recovery rate)

Suzlon Energy Ltd.

Overhead Variance for FY 2009-10 * Fig in Lac INR* Figs in Bracket()

means negativeVariance

Sno Particulars Budget Qty Actual Qty Variance

1 Variable / Fixed Overhead 7,313 7,500 (188)

2

Variance due to Overhead Days

Difference Bud Vs Act 563

Total Days in a year 325 300 25.0

3 Variance due to Overhead Rate (750)



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Difference Bud Vs Act

Overhead Rate / Day 22.50 25.00 2.50

Total expenditure Variance

Total expenditure variance = Budgeted overhead-actual overhead

Total volume varianceTotal volume variance = standard cost (standard quantity/hour-

actual quantity/hour)

= 22.50(325-300)= 562.5

= 563

Total efficiency varianceFixed efficiency variance = standard cost (actual quantity

standard quantity/hours)

= 22.50(300-325)= 563(A)

MANAGERIAL INFORMATION SYSTEM

MIS is an acronym for Managerial Information Systems. Andwith the growth of technology and the efficiency levelsrequired has increased many folds from the earliest times ofpaper and pen was the only option to transmit usefulinformation. Now a days organizations small or big, profit ornon profit have known the fact that growth of the company isdependent on the way they use the data, resources andtransmit their ideas across people to maximize profits.



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Definition of MIS is not easy to find because it has suchdiversified nature and presence in various fields as a resultdefining it in a single way has really become a difficult job.

It can be defined as the "information systems which by useof latest technological tools have empowered people,businesses, organizations and companies to enhance the

decision making process.

TYPES OF MANAGERIAL INFORMATION SYSTEM

Transaction processing system

Office automation system Decision support system (expert, executive, group)

Transaction processing system

Transaction processing system means how to recordtransaction in the particular organization. There are many

type of recording system out of them the suzlon energy ltd.Use this way of transaction process system.

Purchase requisition

Purchase order

Service entry

Invoice posting

Payment

Format of Transaction processing system

PURCHASE REQUISITION



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Purchase order



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Service entry



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Invoice posting



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Payment

Office automation system

Office automation system is the system which provide theintegration system for data which is used in decision makingprocess. This system is very sophisticate in the integrate theall other branch data collection at head office for the decision

making process.In the traditional system many of problems arise like the

Bill was not reach at the time when require.

Missing the data.

Courier was not reach at a time.So, this kind of problems are not arise so the suzlon has usedthe DMS system.



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DMS systemDocument management system is the system which the dataintegrate at one place of various branches at a time. Thistransaction system used unique based recording. The each

entry has one unique DMS number. A documentmanagement system (DMS) is a computer system (or set ofcomputer programs) used to track and store electronicdocuments and/or images of paper documents. The term hassome overlap with the concepts of content managementsystems. It is often viewed as a component of enterprisecontent management (ECM) systems and related to digitalasset management, document imaging, workflow systemsand records management systems.

Decision support systemESS:

Known as Executive Support Systems for structured andunstructured decisions. Used Mostly by executives who have

to make both structured and unstructured decisions.

GDSS:

Abbreviated form for Group Decision Support Systems andfor the team work it is mostly used people working in smallgroups for the common objective.

http://en.wikipedia.org/wiki/Computer_systemhttp://en.wikipedia.org/wiki/Electronic_documenthttp://en.wikipedia.org/wiki/Electronic_documenthttp://en.wikipedia.org/wiki/Digital_imagehttp://en.wikipedia.org/wiki/Content_management_systemhttp://en.wikipedia.org/wiki/Content_management_systemhttp://en.wikipedia.org/wiki/Enterprise_content_managementhttp://en.wikipedia.org/wiki/Enterprise_content_managementhttp://en.wikipedia.org/wiki/Digital_asset_managementhttp://en.wikipedia.org/wiki/Digital_asset_managementhttp://en.wikipedia.org/wiki/Document_imaginghttp://en.wikipedia.org/wiki/Workflowhttp://en.wikipedia.org/wiki/Records_managementhttp://en.wikipedia.org/wiki/Computer_systemhttp://en.wikipedia.org/wiki/Electronic_documenthttp://en.wikipedia.org/wiki/Electronic_documenthttp://en.wikipedia.org/wiki/Digital_imagehttp://en.wikipedia.org/wiki/Content_management_systemhttp://en.wikipedia.org/wiki/Content_management_systemhttp://en.wikipedia.org/wiki/Enterprise_content_managementhttp://en.wikipedia.org/wiki/Enterprise_content_managementhttp://en.wikipedia.org/wiki/Digital_asset_managementhttp://en.wikipedia.org/wiki/Digital_asset_managementhttp://en.wikipedia.org/wiki/Document_imaginghttp://en.wikipedia.org/wiki/Workflowhttp://en.wikipedia.org/wiki/Records_management


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CONCLUSION

I would like to introduce here final essence of my whole summerinternship report has been successfully done by me in SUZLONENERGY LTD. I have done try at my level in this project and i gota good industrial exposure and corporate practical life. I have toconclude the below:

The purpose of budgeting is to provide a forecast of revenuesand expenditures for construct a model of how our businessmight perform financially speaking if certain strategies,

events and plans are carried out. Enable the actual financial operation of the business to be

measured against the forecast.

The budget should contain a narrative explaining how youdecided on the amount of this reserve and a description ofthe expected financial results of business activities.

Other thing consider in this project is document managementsystem is the system which the data integrate at one place ofvarious branches at a time. This transaction system usedunique based recording. The each entry has one unique DMSnumber.

One of the other systems such that Transaction processingsystem means how to record transaction in the particularorganization. There are many type of recording system out ofthem the SUZLON ENERGY LTD. Use this way of transactionprocess system. Purchase requisition, Purchase order,Service entry, Invoice posting, Payment.

Eventually I have felt a nice experience & practical exposurethrough office work and co-operation with commercialdepartments employees ofSUZLON ENERGY LTD.



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BIBILOGRAPHY

All the data are collected from primary source as well as

secondary source of information from website and Journals &

Reports like

Websites:

www.Suzlon.com

www.google.com

www.wikipedia.org

Journals and Reports:

Annual report-2009-10

Suzlon Energy Brochure

Accounting for Management by Mr. Paresh Shah

And formal as well as informal meeting with the officers of Suzlon

Energy ltd.
http://www.google.com/http://www.google.com/

Documents

Budgeting & Manageraial Information System-prince Dudhatra