REPORT ON ELECTRONIC BUDGETING (E-BUDGETING)

SUBMITTED TO: SUBMITTED BY:

Sir Fazal-ur-Rehman Mohammad Afzaal Aqib Nawaz Anila Naheed Rehmatullah Khan Sibtain Zubair
(01-111101-069) (01-111101-069) (01-111101-069) (01-111101-107) (01-111101-109)

COMPANY CHOSEN:

TISCO
31st October 2012

DATED:

1. INTRODUCTION TO THE ORGANIZATION

TISCO abbreviates Technical and industrial services company. TISCo is a multiDiscipline Industrial Electro-mechanical contracting company well equipped with resources which is setout to be different in order to collaborate with our clients to achieve significant results, deploy our expertise and respond to today's competitive and global market with the utmost professionalism and sincerity that clients strive for.

Vision
To achieve kingdom recognition as a leading Technical and Industrial Services company in the market with quality, reliability, commitment and safety at the fore front.

Mission
TISCo is an Industrial Electro-mechanical contracting company. Working in harmony with our clients, we provide the knowledge and skills necessary to successfully complete high quality industrial projects on time and within budget. We are committed to the continuous development and growth of our clients, employees and strategic partners. We are committed to the idea that our mission cannot be achieved, or in not worth achieving, if certain values cannot be maintained, Safety and quality will never be compromised under any circumstances for any reason. To understand and exceed our clients need for cost-effective solutions and valueadded services. To develop the knowledge, skills, creativity and potential of all employees and generate teamwork. To attain best health safety and environmental standards in the industry.

2. DETAILS ON BUSINESS LINES OF TISCO

ELECTRICAL WORKS pertaining to power substation and transmission lines such as oil filtration, gassing/degassing, cable termination, testing & commissioning, power load analysis and retrofitting.

ELECTROMECHANICAL PROJECTS: such as pump station, motors, turbines etc

INSTRUMENTATION

&

CONTROL:

Retrofit/Upgrade

services

for

Field

instrumentation for oil & gas, petrochemical plants and power utilities. Control Systems analysis and studies to migrate to Distributed Control Systems (DCS) and Advanced Control Technologies.

TECHNICAL & FILED SUPPORT SERVICES: To support client program during installation and expansion of utilities or migration to different and more advanced systems. This will include, but not limited to, on-site technical supervision, info gathering, technical studies, and recommendations.

INDUSTRIAL MATERIAL TRADING: This involves placing and expediting purchase orders on behalf of the client according to project requirements. This service is part of our project management services to our small and medium size industrial clients.

CONTRACTING this is general contracting services in industrial sector (electrical and electromechanical)

3. CONCEPT OF E-BUDGETING
E-BUDGETING E budgeting is a corporate service application that supports an organizations operations and efficiency it represents a revolutionary new way for companies to plan the future. Companies can implement a budgeting system that scales to the entire enterprise, and they can harness the power of the Internet from any location in the world to budget effectively. Employees throughout an organization can submit and retrieve budget information electronically. This tends to streamline the entire budgeting process.

FIREWALLS AND INFORMATION SECURITY Budget information is extremely sensitive and confidential. A firewall is a computer or router placed between a companys internal network and the internet to control all information between the outside world and the companys local network.

INTERNATIONAL ASPECTS OF BUDGETING Firms with international operations face special problems when preparing an E- budget. Fluctuations in foreign currency exchange rates. High inflation rates in some foreign countries. Differences in local economic conditions.

FLOW OF E-BUDGET DATA (PARTICIPATIVE BUDGETING)

Top Management

Middle Management

Middle Management

Supervisor

Supervisor

Supervisor

Supervisor

POPULAR & COMMON E-BUDGETING SOFTWARES Mint Manilla Mvelopes Buxfer BudgetTracker BudgetPulse Expensr PearBudget: Billster Mactopia Windows Excel Templates

HOW E BUDGETING WORKS Participants can link back to past data, validate assumptions implicit in their budget area see how their numbers will affect others The system is completely automated such that by using the Internet from anywhere in the world, a manager can download information, submit information and interrogate information. From anywhere in the world, then, the manager can input data and carry out his what if? analysis. E budgeting still relies on the finance department to maintain ultimate control. This must be the case so that the accountants can, for example, input reallocations to be carried out and then model the results enterprise wide without necessarily having to ask their colleagues to do it.

4. TISCO USING E-BUDGETING SYSTEMS

TISCO has already acquired an e-budgeting software system and it is not using those ebudgeting systems which are available in the market instead they are using a combination of different E-budgeting softwares which they developed for themselves through software developer companies. They devise the E-Budgeting system in their organization in the year 2008. Initiation of software systems expensed them: INR 9 million (Indian Rupees) This cost included the cost of hosting service which was provided by a separate hosting company. Cost of buying new high speed PCs where required. The cost of servers which were residing in the premises of the company. Cost of Installation of e-budgeting systems in all of the field offices in the premises of country. Cost of Installation of systems in the offices which were abroad in other countries. Cost of induction of High speed Internet connection. Cost of training of the employees who were supposed to work with those eBudgeting systems. These were the costs which they had to bear once and afterwards they had to bear some expenses which they had to face on monthly, quarterly or yearly basis. These included: Monthly salaries of the new employees hired for the proper management and maintenance of softwares. Maintenance of all the computer systems. Bills and payments of Internet services. Any other miscellaneous expenses regarding E-Budgeting systems. At the end of year 2011 company conducted a research to find out that what they were able to save after inducing e-budgeting systems. The numbers said that inclusive of all fixed and variable expenses the company had to bear a cost of 12 million INR and the savings and increase in their profits they made with the introduction of e-budgeting systems were 14.5 million INR which shows that the management was very much right in their decision of devising E-budgeting systems in their organization.

5. BENEFITS OF E-BUDGETING PROVIDED TO TISCO

Here by all the legal, technical and economical benefits which the e-budgeting systems have provided to TISCO are mentioned over here in accumulation. The benefit of the dramatic reduction in administrative resources devoted to tasks and transactions and an overall increase in employee participation, together with a more strategic focus from the finance department helped TISCO to reduce many costs. Time consumption in managing the E-budgets is very less as compared with the manual budgeting systems. E-budgeting extended the budgeting process of TISCO to a wider range of users who can gain access to an intuitive interface via the Internet. E-budgeting provided managers whose remuneration may be related to performance with the right tools to budget accurately and effectively. The e-budget systems followed in TISCO are customized to employees skills set. Increased service levels to employees E-Budgeting systems Freed finance department to focus on strategy, not spreadsheets. E budgeting saved the need for cutting and pasting, entering and uploading and pulling numbers from different files. The accountants now dont have to spend their lives checking and rechecking a multitude of spreadsheets: E-Budgeting allows the accountants of TISCO them to provide the service to their colleagues for the greater good of their company. Legally the copyrights of all the softwares which TISCO has developed for its self lies within TISCO and no one can use those softwares without buying that software legally from the company. The company has sold its basic software package to 4 to 5 different companies and earned huge revenues from those sellings.

6. CONCLUSION
These are some aspects which must be dealt with high importance and preference in order to keep their E-budgeting systems efficient and effective. Suppose a manager doesnt go online, or cant go online. For example, power failure, internet services down then the organization must have some alternatives to cope up with such issues and keep their E-Budgeting systems running. The budgets must be up to date; and they are supposed to be really more relevant. One must keep this aspect in mind that if the budgets are more accurate; but they must be usable also. More significant training opportunities are required for the e-budgeting organization.