Cost Control Analysis Bell

Chapter 4 DATA ANALYSIS AND INTERPRETATION Table No: 1 Table showing purchase to the total cost Year

Purchase

Total cost

Percentage

2014-15

39,711.56

55,316.83

71.78

2015-16

46,751.40

66,966.65

69.81

2016-17

46,672.77

65,250.73

71.52

2017-18

47,351.35

67,016.84

70.65

Analysis: The above graphs show that purchase cost against total cost constitutes major portion i.e., 70% {Approximately} It also shows that annual wise fluctuation in purchase cost in proportion to total cost.

1

Graph no: 1 Graph showing purchase to the total cost

72

71.78 71.52

71.5 71

70.65

70.5 69.81

70 69.5 69 68.5 2014-15

2015-16

2016-17

2017-18

Inferences: From the above graph it can be inferred that there is a gradual fluctuation in raw material purchase cost against total cost i.e. in the year 2014-15, 71.78%, in 2015-16, 69.81%, in 2016-17, 71.52%, and in 2017-18, 70.65% And also observed that major expenditure is raw material purchase. Since the company is a manufacturing concern it uses more raw material rather than other expenditure in production process {i.e. cost}.

2

Table No: 2 Table showing direct material cost to the total cost

Years

2014-15

2015-16

2016-17

2017-18

Material

1,241.39

1,342.55

1,247.68

1,297.00

Total cost

55,316.83

66,966.65

65,250.73

67,016.84

Percentage

2.24

2.00

1.91

1.93

Analysis: The above graph shows that direct material cost against total cost constitutes only 2% {approximately}. It also shows that annual wise fluctuation in direct material cost in proportion to total cost.

3

Graph no: 2 Graph showing direct material cost to the total cost.

2.3

2.24

2.2

2.1 2 2 1.91

1.93

1.9 1.8 1.7 2014-15

2015-16

2016-17

2017-18

Inferences; From the above graph, it can be inferred that there a gradual fluctuation in direct material cost against total cost i.e. in the year 2014-15, 2.24%, in 2015-16, 2%, in 201617, 1.91%, and in 2017-18, 1.93%. And also observed that there is a decrease in one year and increase in another year due to variation in production process.

4

Table no: 3 Table showing direct labor cost to the total cost.

Year

2014-15

2015-16

2016-17

2017-18

Direct labour

1,214.77

1,386.07

1,626.91

1,605.69

Total cost

55,316.83

66,966.65

65,250.73

67,016.84

Percentage

2.19

2.06

2.49

2.39

Analysis: The above graph shows that direct labour cost against total cost constitutes 2% {approximately}. It also shows that annual wise fluctuation in labour cost in proportion to total cost.

5

Graph No: 3 Graph showing direct labour cost to the total cost. 3 2.49

2.5

2.19

2.39

2.06

2 1.5 1 0.5 0 2014-15

2015-16

2016-17

2017-18

Inferences: From the above graph, it can be inferred that there is a gradual fluctuation in direct labour cost against total cost, i.e. in the year 2014-15, 2.19%, in 2015-16, 2.06% in 2016-17, 2.49% and in 2017-18, 2.39%. And also observed that there is a decrease in one year and increase in than another year due to variation in over all productive process and wages paid to the labour.

6

Table No: 4 Table showing excise duty to the total cost.

Year

2014-15

2015-16

2016-17

2017-18

Excise duty

3,88.62

6,896.99

4,866.03

6,458.44

Total cost

55,316.83

66,966.65

65,250.73

67,019.84

Percentage

7.02

10.29

7.45

9.63

Analysis: The above graph shows that excise duty cost against total cost constitutes 10% {approximately}. It also shows that annual wise fluctuation in excise duty cost in proportion to total cost.

7

Graph No: 4 Graph showing excise duty to the total cost. 12 10.29

9.63

10 8

7.45

7.02

6 4 2 0 2014-15

2015-16

2016-17

2017-18

Inference: From the above graph, it can be inferred that there is a gradual fluctuation in excise duty cost against total cost i.e. in the year 2014-15, 7.02%, in 2015-16, 10.29%, in 2016-17, 7.45% and in 2017-18, 9.63%. And also observed that there is an increase is one year and declined in the year due to variation in produces.

8

Table No: 5 Table showing workman and staff welfare expenses to the total cost.

Year

2014-15

Workman staff

& 73.10

2015-16

2016-17

2017-18

39.16

35.72

40.02

welfare

expense Total cost

55,316.83

66,966.65

65,250.73

67,016.84

Percentage

0.132

0.058

0.054

0.059

Analysis: The above graph shows that workmen and staff welfare cost constitutes 0.1% {approximately}. It also shows that annual wise fluctuation in workmen and staff welfare cost in proportion to total cost.

9

Graph No: 5 Graph showing workmen and staff welfare expenses to the total cost.

0.14

0.132

0.12 0.1 0.08 0.058

0.06

0.054

0.059

0.04 0.02 0 2014-15

2015-16

2016-17

2017-18

Inference: From the above graph, it can be inferred that there is a gradual fluctuation in workmen and staff welfare cost against total cost i.e. in the year 2014-15, 0.132%, in 2015-16, 0.058% in 2016-17, 0.054% and in 2017-18, 0.059%. And also observed that there is a decrease is one year and in another year it increased gradually due to cost control techniques adopted to cut the cost.

10

Table No: 6 Table showing power and fuel to the total cost.

Year

2014-15

2015-16

2016-17

2017-18

Power and fuel

3,889.28

3,691.48

4,262.13

4,023.13

Total cost

55,316.83

66,966.65

65,250.73

67,016.84

Percentage

7.02

5.51

6.53

6.00

Analysis: The above graph shows that power and fuel cost constitute 7% {approximately}. It also shows that annual wise fluctuation in power and fuel cost in proportion to total cost.

11

Graph No: 6 Graph showing power and fuel to the total cost.

8 7.02 7

6.53 6

6

5.51

5 4 3

2 1 0 2014-15

2015-16

2016-17

2017-18

Inference: From the above graph it can be inferred that there a gradual fluctuation in power and fuel cost against total cost i.e. in the year 2014-15, 7.08%, in 2015-16,5.51%, in 2016-17, 6.53% and in 2017-18, 6.00%. And also observed that there is a decrease in one year and increase in another year due to variation in production process influenced by market demand.

12

Table no: 7 Table showing stories and spares consumed to the total cost. Year

2014-15

2015-16

2016-17

2017-18

Stories

spares 1,672.74

1,652.33

1,524.67

1,392.30

66,966.53

65,250.73

67,016.84

consumed Total cost Percentage

55,316.83 3.02

2.46

2.33

2.07

Analysis: The above graph shows that stores and spared cost against total cost constitutes 3 %{ approximately}. It also shows that annual wise fluctuation in stores and spares cost in proportion to total cost.

13

Graph no: 7 Graph showing stores and space consumed to the total cost.

3.5 3.02 3 2.46

2.5

2.33 2.07

2 1.5 1 0.5 0 2014-15

2015-16

2016-17

2017-18

Inference: From the above graph, it can be inferred that there a gradual fluctuation in stores and spares cost against total cost i.e. in the year 2014-15, 3.02%, in 2015-16 , 2.46%, in 2016-17 , 2.33% and in 2017-18 , 2.07%. And also observed that there is a decreased year by year due to here consumption of stores and spares in manufacturing process. It also shows control established on unnecessary cost

14

Table no: 8 Table showing repair to machinery to the total cost.

Year

2014-15

Repair

to 279.14

2015-16

2016-17

2017-18

265.00

70.32

225.13

66,966.65

65,250.73

67,016.84

machinery Total cost Percentage

55,316.83 0.50

0.39

0.10

0.33

Analysis: The above graph shows that repair to machinery cost against total cost constitutes 0.1% {approximately}. It also shows that annual wise fluctuation in repair to machinery cost in proportion to total.

15

Graph No: 8 Graph showing repairs to machinery to the total cost. 0.6 0.5 0.5 0.39

0.4

0.33 0.3 0.2 0.1

0.1 0 2014-15

2015-16

2016-17

2017-18

Inferences: From the above graph, it can be inferred that there is a gradual fluctuation in repair to machinery cost against total cost i.e. in the year 2014-15, 0.50%, in 2015-16, 0.39%, in 2016-17, 0.10% and in 2017-18, 0.33%. And also observed that there is a decrease in one year and increase in another year due to proper maintenance of machinery tools in the process.

16

Table No: 9 Table showing repair to building to the total cost.

Year Repair

to

2014-15

2015-16

2016-17

5.68

2.70

9.73

2017-18 10.00

building Total cost Percentage

55,316.83 0.10

66,966.65 0.004

65,250.73 0.014

67,016.84 0.014

Analysis: The above graph shows that repair to building cost against total cost constitutes 0.01% {approximately}. It also shows that annual wise fluctuation in repair to building cost in proportion to total cost.

17

Graph No: 9 Graph showing repair to building to the total cost.

0.12 0.1 0.1 0.08 0.06

0.04 0.02

0.014

0.014

2016-17

2017-18

0.004 0 2014-15

2015-16

Inferences: From the above graph, it can be inferred that there is a gradual fluctuation in repair to building cost against total cost i.e. in the year 2014-15, 0.01%, in 2015-16, 0.004%, in 2016-17, 0.014% and in 2017-18, 0.014%. And also observed that there is a decrease in one year and in another year it incurred gradually due to bad infrastructural facilities, concerned with factory premises.

18

Table No: 10 Table showing other manufacturing overheads to the total cost.

Year Other

2014-15

2015-16

2016-17

2017-18

77.88

24.50

30.89

21.07

55,316.83

66,966.65

65,250.73

67,016.84

manufacturing overheads Total cost Percentage

0.14

0.03

0.04

0.03

Analysis: The above graph shows that other manufacturing overheads cost against total cost constitute 0.15 {approximately}. It also shows that annual wise fluctuation in other manufacturing overhead cost in proportion to total cost

19

Graph No: 10 Graph showing other manufacturing overhead to the total cost.

0.16 0.14 0.14 0.12 0.1 0.08 0.06 0.04 0.04

0.03

0.03

0.02 0 2014-15

2015-16

2016-17

2017-18

Inference: From the above graph, it can be inferred that there is a gradual fluctuation in other manufacturing overheads cost against total cost i.e. in the year 2014-15, 0.14%, in 201516 , 0.03%, in 2016-17, 0.04%, and in 2017-18, 0.03%. And also observed that there is a decrease in one year and increase in another year due to fluctuation in manufacturing levels. It also can vote efforts made in controlling other manufacturing cost.

20

Table No: 11 Table showing processing charges to the total cost.

Year Processing

2014-15

2015-16

2016-17

2017-18

344.95

283.63

239.48

359.81

55,316.83

66,966.65

65,250.73

67,016.84

charges Total cost Percentage

0.62

0.42

0.36

0.53

Analysis: The above graph shows that processing charges cost against total cost constitutes 0.15 {approximately}. It also shows that annual wise fluctuation in processing charges cost in proportion to total cost.

21

Graph No: 11 Graph showing processing charges to the total cost.

0.7 0.62 0.6

0.53

0.5 0.42 0.4

0.36

0.3 0.2 0.1 0 2014-15

2015-16

2016-17

2017-18

Inference: From the above graph, it can be inferred that there is a gradual fluctuation in processing charges cost against total cost i.e. in the year 2014-15, 062%, in 2015-16, 0.42%, in 2016-17, 036% and in 2017-18, 0.53%. And also observed that there is a decrease in one year and increase in another year due to variation in cost incurrence of processing wastages and defects.

22

Table No: 12 Table showing insurance to the total cost. Year

2014-15

2015-16

2016-17

2017-18

Insurance

16.81

14.42

23.77

12.42

Total cost

55,316.83

66,966.65

65,250.73

67,016.84

Percentage

0.03

0.02

0.03

0.01

Analysis: The above graph shows that insurance cost against total cost constitutes 0.01% {approximately}. It also shows that annual wise fluctuation in insurance cost in proportion to total cost.

23

Graph No: 12 Graph showing insurance to the total cost.

0.035 0.03

0.03

0.03 0.025 0.02 0.02 0.015 0.01 0.01 0.005 0 2014-15

2015-16

2016-17

2017-18

Inferences: From the above graph, it can be inferred that there is a gradual fluctuation in insurance cost against total cost i.e. in the year 2014-15, 0.03%, in 2015-16, 0.02%, in 2016-17, 0.03% and in 2017-18, 0.01%. And also observed year due to fluctuation in awareness spreading among the office staff that insured.

24

Table No: 13 Table showing rent to the total cost.

Year

2014-15

2015-16

2016-17

2017-18

Rent

110.67

120.12

96.00

212.00

Total cost

55,316.83

66,966.65

65,250.73

67,016.84

0.17

0.14

0.31

Percentage

0.20

Analysis: The above graphs show that rent cost against total cost constitutes 0.20% {approximately}. It also shows that annual wise fluctuation in rent cost in proportion to total cost.

25

Graph no: 13 Graph showing rent to the total cost.

0.35 0.31 0.3 0.25 0.2 0.2

0.17 0.14

0.15 0.1 0.05 0 2014-15

2015-16

2016-17

2017-18

Inferences: From the above graph, it can be inferred that there is a gradual fluctuation in rent cost against total cost i.e. in the year 2014-15, 0.02%, in 2015-16, 0.17%, in 2016-17, 0.14%, and in 2017-18, 0.31%. And observed that there is a decrease in one year and increase in another year due to variation in production process in using space for productive activities.

26

Table NO: 14 Graph showing loss on sale of assets to the total cost.

Year

2014-15

Loss on sale of 2.16

2015-16

2016-17

2017-18

3.59

1.74

1.50

assets Total cost

55,316.83

66,966.65

65,250.73

67,016.84

Percentage

0.003

0.005

0.002

0.002

Analysis: The above graph shows that loss on sale of assets against total cost constitutes 0.005% {approximately}. It also shows that annual wise fluctuation in loss on sale of assets cost in proportion to total cost.

27

Graph No: 14 Graph showing loss on sale of assets to the total cost.

0.006

0.005 0.005

0.004 0.003 0.003 0.002

0.002

2016-17

2017-18

0.002 0.001 0 2014-15

2015-16

Inferences: From the above graph, it can be inferred that there is a gradual fluctuation in loss on sale of assets cost against total cost i.e. in the year 2014-15, 0.003%, in 2015-16, 0.005% in 2016-17, 0.002% and in 2017-18, 0.002%. And also observed that there is an increase in one year and declined in another year due to decrease demand of the assets in the market.

28

Table No: 15 Table showing rates and taxes of the total cost. Year

2014-15

2015-16

2016-17

2017-18

Rates & taxes

30.00

28.55

77.93

80.19

Total cost

55,316.83

66,966.65

65,250.73

67,016.84

Percentage

0.05

0.04

0.11

0.11

Analysis: The above graph shows that rates and taxes cost against total cost constitutes 0.1% {approximately}. It also shows that annual wise fluctuation in rates and taxes cost in proportion to total cost.

29

Graph No: 15 Graph showing rates and taxes to the total cost. 0.12

0.11

0.11

2016-17

2017-18

0.1 0.08 0.06

0.05 0.04

0.04 0.02 0 2014-15

2015-16

Inferences: From the above graph, it can be inferred that there is a gradual fluctuation In rates and taxes cost against total cost i.e. in the year 2014-15, 0.05%, in2015-16, 0.04%, in2016-17, 011% and in 2017-18, 0.11%. And also observed that there is a decrease in one year and increase in another year due to changes in rates of tax corporate profits.

30

Table No: 16 Table showing remuneration to director to the total cost. Year

2014-15

Remuneration to 66.96

2015-16

2016-17

2017-18

151.92

156.93

58.88

director Total cost

55316.83

66966.65

65250.73

67016.84

Percentage

0.12

0.22

0.24

0.08

Analysis: The above graph shows that remuneration to director cost against total cost constitutes 0.20 %{ approximately}. It also shows that annual wise fluctuation in remuneration to director cost in proportion to total cost.

31

Graph NO: 16 Graph showing remuneration to director to the total cost. 0.3

0.24

0.25

0.22

0.2 0.15

0.12

0.1

0.08

0.05 0 2014-15

2015-16

2016-17

2017-18

Inferences: From the above graph, it can be inferred that there is a gradual fluctuation in remuneration to director cost against total cost i.e. in the year 2014-15, 0.12%, in 201516, 0.22%, in2016-17, 0.24% and in 2017-18, 0.08%. And also observed that there is an increase in one year and declined in another year due to variation in sales where remuneration to the director is based on sales performance.

32

Table No: 17 Table showing legal professional and consultancy charges to the total cost.

Year Legal

2014-15

2015-16

2016-17

2017-18

27.03

28.13

98.81

100.09

55,316.83

66,966.65

65,250.73

67,016.84

professional and consultancy charges. Total cost Percentage

0.04

0.04

0.15

0.14

Analysis: The above graph shows that legal professional and consultancy cost against total cost constitutes 0.1% {approximately}. It also shows that annual wise fluctuation in legal professional and consultancy cost in proportion to total cost.

33

Graph No: 17 Graph showing legal professional and consultancy charges to the total cost. 0.16

0.15 0.14

0.14 0.12 0.1 0.08

0.06 0.04

0.04

2014-15

2015-16

0.04 0.02 0 2016-17

2017-18

Inferences: From the above graph, it can be inferred that there is a gradual fluctuation in legal professional and consultancy cost against total cost i.e. in the year 2014-15, 0.14%, 201516, 0.04%, in 2016-17, 0.15% and in 2017-18, 0.14%. And also observed that there is an increase in one year and declined in another year due to frequent consultation of expert and lawyers for some legal issues.

34

Table No: 18 Table showing payment to auditors to the total cost.

Year

2014-15

Payment

to 5.30

2015-16

2016-17

2017-18

5.00

6.05

5.88

auditors Total cost

55,316.83

66,966.65

65,250.73

67,016.84

Percentage

0.009

0.007

0.009

0.008

Analysis: The above graph shows that payment to auditors cost against total cost constitutes 0.01 %{ approximately}. It also shows that annual wise fluctuation in payment to auditors cost in proportion to total cost.

35

Graph No: 18 Graph showing payment to auditors to the total cost.

0.01

0.009

0.009

0.009

0.008

0.008

0.007

0.007 0.006 0.005 0.004 0.003 0.002 0.001 0 2014-15

2015-16

2016-17

2017-18

Inferences: From the above graph, it can be inferred that there is a gradual fluctuation in payment to auditors cost against total cost i.e. in the year 2014-15,0.009%, in 2015-16, 0.0075, IN 2016-17,0.009% and in 2017-18, 0.0085. And also observed that there is a decreased in one year and increase in another year due to variations in company performances on economic activities which were verified by auditors.

36

Table no: 19 Table showing interest on fixed loans to the total cost.

Year

2014-15

Interest on fixed 581.33

2015-16

2016-17

2017-18

827.21

783.09

775.23

loans Total cost

55,316.83

66,966.65

65,250.73

67,016.84

Percentage

1.05

1.23

1.20

1.15

Analysis: The above graph shows that interest on fixed loans against total cost constitutes 1.20% {approximately}.it also shows that annual wise fluctuation in interest on fixed loans cost in proportion to total cost.

37

Graph No: 19 Graph showing interest on fixed loans to the total cost. 1.25

1.23 1.2

1.2 1.15 1.15 1.1 1.05 1.05 1 0.95 2014-15

2015-16

2016-17

2017-18

Inferences: From the above graph, it can be inferred that there is a gradual fluctuation in interest on fixed loans against total cost i.e. in the year 2014-15, 1.05%, in 2015-16, 1.23%, in 2016-17, 1.20% and in 2017-18, 1.15%. And also observed that there is an increase is one year and declined in another year due to variations in interest rate & borrowed fund.

38

Table No: 20 Table showing interest another loans to the total cost. Year

2014-15

Interest in other 763.05

2015-16

2016-17

2017-18

1620.32

1354.84

1054.99

loans Total cost

55316.83

66966.65

65250.73

67016.84

Percentage

1.37

2.41

2.07

1.57

Analysis: The above graph shows that interest another loans against total cost constitutes 2 %{ approximately}. It also shows that annual wise fluctuation in interest in other loans cost in proportion to total cost.

39

Graph No; 20 Graph showing interest on other loans to the total cost.

3 2.41

2.5

2.07 2 1.57 1.37

1.5

1 0.5 0 2014-15

2015-16

2016-17

2017-18

Inferences: From the above graph, it can be inferred that there is a gradual fluctuation in interest another loans against total cost i.e. in the year 2014-15, 1.375, in 2015-16, 2.41%, in 2016-17, 2.07% and in 2017-18, 1.57%. And also observed that there is increase is one year and declined in another year due to variations in term loan’s interest rate and borrowed fund.

40

Table No: 21 Table showing other finance charges to the total cost.

Year Other

2014-15 finance 169.88

2015-16

2016-17

2017-18

603.10

972.08

591.61

charges Total cost

55316.83

66966.65

65250.73

67016.84

Percentage

0.30

0.90

1.48

0.88

Analysis: The above graph shows that other finance cost against total cost constitutes 1% {approximately}. It also shows that annual wise fluctuation in other finance cost in proportion to total cost

41

Graph No: 21 Graph showing other finance charges to the total cost. 1.6

1.48

1.4 1.2

1

0.9

0.88

0.8 0.6 0.4

0.3

0.2 0 2014-15

2015-16

2016-17

2017-18

Inference: From the above graph, it can be inferred that there is a gradual fluctuation in other finance cost i.e. in the year 2014-15, 0.30%, in 2015-16, 0.90%, in 2016-17, 1.48%, and in 2017-18, 0.88%. And also observed that there is an increase in one year and declined in the year due to varied amount of borrowed loan and return obligation.

42

Table no: 22 Table showing transportation charges to the total cost. Year

2014-15

2015-16

2016-17

2017-18

435.30

398.81

291.86

489.00

Total cost

55316.83

66966.65

65250.73

67016.84

Percentage

0.78

0.59

0.44

0.72

Transportation charges

Analysis: The above graph shows that transportation cost against total cost constitutes 1% {approximately}. It also shows that annual wise fluctuation in transportation cost in proportion to total cost.

43

Graph No: 22 Graph showing transportation charges to the total cost. 0.9 0.78

0.8

0.72

0.7 0.59

0.6 0.5

0.44

0.4 0.3 0.2 0.1 0 2014-15

2015-16

2016-17

2017-18

Inferences: From the above graph, it can be inferred that there is a gradual fluctuation in transportation cost against total cost i.e. in the year 2014-15, 0.78%, in 2015-16, 0.59%, in 2016-17, 0.44% and in 2017-18, 0.78%. And also observed that there is a decrease in one year and increase in another year due to sales promotional activities which are attached with additional cost.

44

Table no: 23 Table showing brokerage and commission to the total cost. Year

2014-15

Brokerage

and 105.64

2015-16

2016-17

2017-18

104.64

120.02

100.77

commission Total cost

55316.83

66966.65

65250.73

67016.84

Percentage

0.19

0.15

0.18

0.15

Analysis; The above graph shows that brokerage and commission cost against total cost constitutes 0.20% {approximately}. It also shows that annual wise fluctuation in brokerage and commission cost in proportion to total cost.

45

Graph No: 23 Graph showing brokerage and commission to the total cost. 0.19

0.2

0.18

0.18 0.15

0.16

0.15

0.14 0.12 0.1 0.08

0.06 0.04 0.02 0 2014-15

2015-16

2016-17

2017-18

Inferences: From the above graph, it can be inferred that there is a gradual fluctuation in brokerage and commission cost against total cost i.e. in the year 2014-15, 0.19%, in 2015-16, 0.15%, in 2016-17, 0.18% and in 2017-18, 015%. And also observed that there is a decrease in one year and increase in another year due to variations in sales performances & customer demand to the goods.

46

Table No: 24 Table showing other selling expenses to the total cost. Year

2014-15

Other

selling 605.61

2015-16

2016-17

2017-18

725.03

681.28

750.34

66966.65

65250.73

67016.84

expense Total cost Percentage

55316.83 1.09

1.08

1.04

1.11

Analysis: The above graph shows that other selling cost against total cost constitutes 1 %{ approximately}. It also shows that annual wise fluctuation in other selling cost in proportion to total cost.

47

Graph no: 24 Graph showing other selling expenses to the total cost. 1.12

1.11

1.1

1.09 1.08

1.08 1.06 1.04 1.04 1.02 1 2014-15

2015-16

2016-17

2017-18

Inference: From the above graph, it can be inferred that there is a gradual fluctuation in other selling cost against total cost i.e. in the year 2014-15, 1.09%, in 2015-16, 1.08%, in 2016-17, 1.04% and in 2017-18, 1.11%. And also observed that there is a decrease in one year and increase in another year due to increased and varied sales performance in sales and distribution division.

48

Chapter 5 FINDINGS AND SUGGESTIONS This chapter gives briefed information on analysis and interpretation part. These are identified matter of our endeavor project work. These help us in identifying key strength and weakness in cost analysis and control aspects of the firm in which we carried project work.

The following are the summarized findings of our analysis of project detail; 

The raw material purchased during the year 2014-15 is high. I.e. 71.78%_ when compared to other years.



When compared to other years, the direct material cost in 2014-15 is high i.e. 2.24%



The direct labour cost during the year 2016-17is high i.e. 2.49% when compared to other years.



The excise duty is increased in the year 2015-16 i.e. 10.29% and it is less in 201415 i.e. 7.02%.



The workman & staff welfare expenses is increased in the year 2014-15 i.e. 0.132% and declined in the year 2016-17i.e. 0.054%



The power and fuel cost during the year 2014-15 is 7.02% which is high when compared to others year.



The stores and spares consumed is increased in the year 2014-15 i.e. 3.02% and declined in the year 2017-18i.e. 2.07%.

49



The repair to machinery cost during the year 2014-15 is high i.e.0.50% when compared to other years.



When compared to other year, the repair to building cost in 2014-15 is high i.e. 2.24%.



Other manufacturing overheads incurred for producing the product during the year 2014-15 is 0.14% but in 2015-16 and 2017-18 it is less i.e. 0.03%.



The processing charges is increased in the year 2014-15 i.e. 0.62% and declined in the year 2016-17 i.e. 0.36%.



During the year 2014-15 and 2016-17 the insurance cost is 0.03% but in 2017-18 it is less i.e. 0.01%.



The rent cost during the year 2017-18 is high i.e. 0.31%, when compared to other years.



The loss on sale of assets in increased is the year 2015-16 is i.e. 0.55% and declined in the year 2016-17 and 2017-18 i.e. 0.002%.



When compared to other year the rates and taxes in 2016-17 and 2017-18 is high i.e. 0.11%.



The remuneration to directors is increased in the years 2016-17 .i.e. 0.24% and declined in the year 2017-18 i.e. 0.08%.



During the year 2016-17 the legal professional and consultancy charges is high i.e. 0.15% but in 2014-15 and 2015-16 it is less i.e. 0.04%.



The payment to auditors during the year 2014-15 and 2016-17 is high i.e. 0.009%, when compared to other years.

50



The interest on first loans is increased in the year 2015-16 i.e. 1.23% and it is less in 2014-15 i.e. 1.05%.



When compared to other years the interest on other loans in 2015-16 is high i.e. 2.41%.



During the year 2016-17 the other finance charges is high i.e. 1.48%.



The transportation charges is increased in the year 2014-15 i.e. 0.78% and declined in the year 2016-17 i.e. 0.44%.



The brokerage and commission during the year 2014-15 is high i.e. 0.19% when compared to other year.



The other selling expense is increased in the years 2017-18 i.e. 1.11% and it is less in the year 2016-17 i.e.1.04%.

51

SUGGESTIONS 

The raw material and manufacturing expenses should be decrease to maintain profit and sales of the product.



The direct labour cost should be controlled through proper supervision.



The administrative and stores overheads should be minimized through cost control and cost reduction techniques.



The interest and bank charges are more it affects to earnings, borrow less funds from outsides. It helps to maintain reserves and surplus.



There must be optimum utilization of stores and spares in order to avoid unnecessary cost incurred without consumption.



Cost in connection with repair of building incurred due to bad infrastructural facility should be avoided by providing favorable infrastructural facility.



The wastage are incurring more, so the machinery in order to avoid the expenses relating to repair of machinery.

52

CONCLUSIONS The Orient Bell Ceramics is one of the famous and reputed Ceramic Company. It holds an important place in the mind of consumer and employees by providing efficient service and better product. The cost analysis and cost control technique helps to reduce the expenses and increase their sales and profit. The company is doing extremely well with regard to control of cost as an authority and responsibility is each area of reporting efficiently and promptly. This is done on monthly basis as well as annual basis. Every cost segment of the company as planned properly and the overall planning of the company as flow down to the level of incidence of cost in order to achieve the goal.

It has attached more competition in the business environment. It is competing in the market with other competitors. The professionally managed and export based company, which prefer for quality and customer satisfaction. However, the key areas like raw material, labour source, sales promotion and advertising have potential for further refinements these constitutes substantial portion of the company and is able to sort out these activities in an optimum manner, it will help the company is controlling cost better.

53

BIBLIOGRAPHY SOURCES 1.

Books Referred

S.N.Maheshwari, “financial management”, principles and practice sultan chand& sons, Edition 1999. Mani Mohan &Goyal “ Management Accounting” HPH, Edition 1995. M.Y. Khan & P.K. Jain, “Cost Accounting”, Edition 2007. M.N. Arora, “Management Accounting: Edition 2006. Kothari , “Research Methodology” Edition 2008.

2.

WEBSITES www.wikipedia.com Search engine.www.orientbell.com JOURNALS

Business World Business Week Outlook Money

3. News Papers

1. Deccan Herald 2. Business line

3. The Economic times

4.

54

ANNEXURES ORIENT BELL CERAMICS Mar '18 12 months Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net worth Secured Loans Unsecured Loans Total Debt Total Liabilities

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

Mar '17

Mar '16

Mar '15

12 months

12 months

12 months

10.87 10.87 0.00 0.00 106.19 0.00 117.06 410.32 0.00 410.32 527.38 Mar '12

5.00 5.00 0.00 0.00 65.37 0.13 70.50 243.15 24.60 267.75 338.25 Mar '11

5.00 5.00 0.00 0.00 57.16 0.17 62.33 203.08 20.70 223.78 286.11 Mar '10

12 months

12 months

12 months

171.22 73.15 98.07 393.95 9.54 133.84 294.03 23.60 451.47 141.93 0.00

167.33 64.30 103.03 219.33 9.29 101.62 275.01 20.60 397.23 131.73 0.00

163.21 57.87 105.34 41.14 8.79 126.94 135.47 0.36 262.77 90.39 20.24

156.74 49.79 106.95 0.15 7.74 97.47 136.87 0.39 234.73 63.22 18.34

593.40

528.96

373.40

316.29

0.00 419.04 20.35 439.39 154.01 0.00 655.57 2.50 91.68

0.00 297.36 35.87 333.23 195.73 0.00 527.38 1.15 78.04

0.00 169.24 21.60 190.84 182.56 0.42 338.25 0.90 140.74

0.00 125.77 19.26 145.03 171.26 0.00 286.10 0.90 124.32

14.69 14.69 0.00 0.00 117.84 0.00 132.53 523.04 0.00 523.04 655.57 Mar '13 12 months

55

Orient Bell Ceramics Standalone Profit & Loss account Mar '18 Mar '17 Mar '16 Mar '15 12 12 months 12 months 12 months months Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalized Total Expenses

Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualized) Shares in issue (lakhs) Earnings Per Share (Rs) Equity Dividend (%) Book Value (Rs)

1,147.97 0.00 1,147.97 5.37 32.98 1,186.32

1,213.76 83.72 1,130.04 5.75 -27.82 1,107.97

843.11 62.92 780.19 0.34 13.19 793.72

634.20 41.25 592.95 0.88 37.09 630.92

1,013.18 939.93 637.12 499.01 55.72 47.15 54.17 42.62 27.43 27.17 23.76 18.99 0.00 4.29 3.72 3.41 0.00 0.00 7.85 7.34 22.32 15.12 6.05 6.71 0.00 0.00 0.00 0.00 1,118.65 1,033.66 732.67 578.08 Mar '13 Mar '12 Mar '11 Mar '10 12 12 months 12 months 12 months months 62.30 68.56 60.71 51.96 67.67 74.31 61.05 52.84 53.62 50.06 38.67 31.10 14.05 24.25 22.38 21.74 9.02 8.85 8.58 8.13 0.00 0.00 0.00 0.00 5.03 15.40 13.80 13.61 0.00 0.00 0.00 0.00 5.03 15.40 13.80 13.61 1.23 2.13 4.46 5.10 3.80 13.29 9.34 8.49 105.47 93.72 95.55 79.08 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 0.00 0.00 0.14 0.11 144.57 2.63 0.00 91.68

150.00 8.86 0.00 78.04

50.00 18.69 20.00 140.74

50.00 16.99 20.00 124.32

56

Orient Bell Ceramics Mar '18 Net Sales/Income from operations 1,205.77 Other Operating Income -Total Income From Operations 1,205.77 EXPENDITURE Consumption of Raw Materials 820.72 Purchase of Traded Goods 237.28 Increase/Decrease in Stocks -36.08 Power & Fuel 58.49 Employees Cost 32.11 Depreciation 10.45 Excise Duty -Admin. And Selling Expenses -R & D Expenses -Provisions And Contingencies -Exp. Capitalized -Other Expenses 24.76 P/L Before Other Inc., Int., 58.05 Except. Items & Tax Other Income 5.44 P/L Before Int., Except. Items & 63.49 Tax Interest 56.77 P/L Before Exceptional Items & 6.72 Tax Exceptional Items -P/L Before Tax 6.72 Tax 1.80 P/L After Tax from Ordinary 4.92 Activities Prior Year Adjustments -Extra Ordinary Items -Net Profit/(Loss) For the Period 4.92 Minority Interest -0.26 Share Of P/L Of Associates -Net P/L After M.I & Associates 4.66 Equity Share Capital 14.69 Reserves Excluding Revaluation 117.81 Reserves Equity Dividend Rate (%) -EPS Before Extra Ordinary Basic EPS 3.17

Mar '17 1,195.24 -1,195.24

Mar '16 815.47 -815.47

Mar '15 648.00 -648.00

786.72 159.81 10.39 72.93 25.17 10.14 -----67.99

645.11 --20.02 53.64 25.69 10.31 -----54.38

474.32 --34.63 43.06 19.51 8.46 41.71 ----59.99

62.09

46.36

35.59

4.02

0.03

2.04

66.10

46.39

37.63

44.77

32.14

21.72

21.33

14.25

15.91

-0.11 21.22 5.87

-14.25 4.75

-0.86 15.05 5.37

15.35

9.50

9.68

--15.35 -0.47 -14.88 10.87

--9.50 -0.11 -9.39 5.00

--9.68 -0.02 -9.66 5.00

--

--

--

--

--

--

14.12

19.82

31.64

57

Diluted EPS EPS After Extra Ordinary Basic EPS Diluted EPS Public Share Holding No Of Shares (Cores) Share Holding (%) Promoters and Promoter Group Shareholding a) Pledged/Encumbered - Number of shares (Cores) - Per. of shares (as a % of the total sh. of prom. and promoter group) - Per. of shares (as a % of the total Share Cap. of the company) b) Non-encumbered - Number of shares (Cores) - Per. of shares (as a % of the total sh. of prom. and promoter group) - Per. of shares (as a % of the total Share Cap. of the company)

3.17

14.12

19.82

20.76

3.35 3.35

14.12 14.12

19.82 19.82

31.64 20.76

0.38 25.23

0.38 25.23

0.17 34.41

0.17 34.41

--

--

--

0.10

--

--

--

31.64

--

--

--

20.76

1.12

1.12

0.33

0.22

100.00

100.00

100.00

68.36

74.77

74.77

65.59

44.84

58