Hindustan Aeronautics Limited


EXECUTIVE SUMMARY
Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics India Limited and Aircraft Manufacturing Depot, Kanpur. The Company traces its roots to the pioneering efforts of an industrialist with extraordinary vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft Limited at Bangalore in association with the erstwhile princely State of Mysore in December 1940. The Government of India became a shareholder in March 1941 and took over the Management in 1942.
A budget is the monetary or/and quantitative expression of business plans and policies to be pursued in the future period of time. The term budgeting is used for preparing budgets and other procedures for planning, co-ordination and control of business enterprise.
The objective of this project is do a study on performance budget in general and to find out the reasons for variance in budget and actual performance.
The data was collected from the officers at the time of interview. And also through secondary data it has been obtained from the annual report of the company from previous years and the ledger and accounts manual and their journals.
It was understood that the budgeting is a comprehensive system of planning and control, covering all segments of the company. And that the budget should be such that it makes it imperative for management to establish goals and objectives, define policies, develop programs, and allocate resources, measure performance against the targets and in process, revise the objectives and policies, if found necessary.
The present budgetary system is more of a fixed based budgetary system. To arrive at an accurate budgeted figure, HAL should have frequent budgeting system.Engine division should take authority of budgeting themselves to certain extent.