A Study on the Varience Between Budgeted and Actual Financial Figures in APSPDCL
Yarramaddu Dinesh Reddy, Mr. B. Sreekanth
ABSTRACT
This project presents a comprehensive study on the comparative analysis of budgeted and actual financial figures in the Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL). The core objective is to evaluate the effectiveness of the organization’s budgetary control system and to identify significant variances between projected and actual revenues and expenditures over a five-year period (2019–2024). Through a detailed examination of revenue and expenditure budgets—including categories such as material consumption, employee remuneration, administrative expenses, manufacturing costs, and depreciation—the study reveals recurring positive variances, indicating consistent underutilization of budgeted funds. This suggests either conservative forecasting or effective cost control measures.
The analysis also highlights that while budgeting acts as a crucial tool for planning and decision-making, several factors such as inaccurate forecasting, policy changes, and operational inefficiencies can affect budget accuracy. The findings emphasize the need for dynamic budgeting techniques, regular variance analysis, and enhanced managerial coordination to ensure alignment with organizational goals. Ultimately, the study offers strategic insights and recommendations to strengthen APSPDCL’s financial management practices through improved budget formulation and control mechanisms.
A budget is a quantitative expression of a plan of action relating to the forthcoming budget period. It represents a written operational plan of management for the budget period.” A plan expressed in money. It is prepared and approved prior to the budget period and may show income, expenditure, and the capital to be employed, may be drawn up showing incremental effects on former budgeted or actual figures, or be compiled by zero based budgeting”. Budget and Budgetary control. The terms budget and budgetary control are often used interchange able to refer to a system of managerial control. Budgetary control implies the use of a comprehensive system of budgeting to aid management in carrying out its functions like planning, co-ordination and control.
