Address: 403, Sumer Kendra, Pandurang Budhkar Marg, Behind Mahindra Towers, Worli Naka, Mumbai, Maharashtra 400081

Assumptions taken in to consideration while preparing the Master Budget Expected Turnover: Market growth, Company Policy of all products JSK are dealing in and Historical Data are Geographical Divisons (NEWS). To compute the Gross Profit JSK has to communicate with the respective departments of each product; look in to market growth and the respective Company Policy and the target they have set to earn profit. Profit is calculated via back calculation. Profit margin set is 10% - 15% more than previous years gross profit.

Expected Gross Profit:

Expected Expenses: Cash Discount: Cash discount is given at the rate of 2% on cash sales. Also last year data is looked in to see the cash sales transactions.

Delivery Van Expenses:

The articulated lorries for delivery of products to retail/wholesale outlets, expense is done on the basis of sales-demand-supply. Specific numbers of vans are allocated to each product section so that there is no hassle in case of deliveries.
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 Octroi Duty: Freight:

Octroi duty varies from state to state as JSK deals with various sellers. Loading & Unloading charges of wares by temporary/contract workers. Historical data and market prevailing prices are taken in to account. WHAT IS COILER? HOW ARE THE CHARGES MADE? Sales Promotion is done on the extra sales done & over an above the ambitious sales. Promotion is done on historical data and for different regions for different products established on the Companies policy. Incentives are also given when declared by the Company. Defective/ snagged products based on previous year. This is a part of Fixed Cost, so on the basis of last 3 to 5 years, and current year cost is decided. The stocks are already pre-packed when the company dispatches them to the distributors, so no packing required. Historical data is the most reliable source of factor while calculating bad debts. Also certain amount of cost is included in Fixed Cost as Bad Debts are bound to be there.

Coiler Charges:

Sales Promotion Commission:

Incentives:

Replacement:

Packing Material & Placement Charges: Bad Debts:

Direct Salary Expenses Salaries: Salaries is given on the basis of JSK policy and if any recommendation given by the company. It is based on the market prevailing rates and changes in inflation rate. Also factors like market conditions, demand are taken in to consideration. But a certain amount of salary is always fixed. Staff welfare is the expenses done on staff when they are given a vacation The expenses incurred on the travelling and other expenses.

Staff Welfare:

Travelling Ticket & Conveyance:

Administrative expenses Motor Car Expense: This includes expenses on the cars given to senior staff under allowance. This cost is basically determined on the basis of historical data. As no of cars given in allowance will be same for next year. Also the allowance is given division wise. This is distributed to various divisions according to the area occupied. Also it being a fixed charge can be predicted easily. Only for NIPPO, and its the nominal figure given by NIPPO company. These are the charges of any external service hired by the company. These are basically distributed according to the department.

Rent, Rates and Taxes: Commission and Brokerage: Consultancy Charges:

 Office Running Charges:

These are the day-to-day running expense of the company. Historical dada is the major factor considered while assessing this cost. It is also distributed area wise and department wise. Its the cost incurred on normal breakdowns in machinery automobile etc. It is predicted on the basis of historical data. This expense is budgeted is prepared as per the last years actual expenses and is divided among the various product lines depending on the number of computers allotted to them. This expense is divided among the various product lines according to the area occupied by them and the expense is budgeted as per historical data. This expense is very difficult to calculate and divide as the expense is budgeted as per last years expense incurred and divided as per the sales turnover of different products. This fees is incurred at the end of the year while filing the companys tax return and the fees is distributed evenly among the various product lines. This expense is incurred depending on the insurance taken on different goods of different products and is divided accordingly and is taken as an estimate from last year. There is no expense related to this account.

Repair and Maintenance: Repair and Maintenance Computer: Electricity and Water Expenses: Printing and Stationary:

Auditors Fees:

Insurance:

General Charges:

 Other Office Expenses:

The various miscellaneous expenses are accounted in other office expenses and is divided as per the turnover ratio and is budgeted as the historical data. The leisure trips taken by the directors of the company are taken into this account in order to save tax and is average taken from previous year. Gains or losses due to fluctuations in the market are taken into this account. It is an estimate taken from previous years actual expense and is divided as per the sales turnover of various products. The cost requires a proper estimate of how to arrive at it. For example: Company takes a loan of Rs10 Crores for Nippo @ 12% from bank and has made a sales of Rs 5 crores and the rest is yet to be sold. It has Rs 2 crores as its debtors and Rs 1crore as creditors then it will charge 12% interest on Rs 6 crores. Bank Loan@ 12% 10 Sales (5) Goods Unsold 05 Debtors +2 Creditors (1)
. . . Bank will charge

Traveling and Conveyance: Fluctuation Loss/Income: Postage and Telephone Expenses: Finance Cost:

6Cr

12% interest on

Depreciation:

This is a fixed percentage at which the companys asset depreciates and is divided as per the sales turnover ratio.

Project Completed By: Abhishek Vora Anshul Gupta Sarthak Bajaj Sanyam Jain Varun Rajdev 004 008 040 040 049