WHAT IS INTERIM BUDGET
Answer / h.r. sreepada bhagi
Normally budget of a government or an organisation is
prepared for a year. However under certain cases/curmstances
it is prepared for a part of an year or in the middle of a
normal budget period. Budgeting like this in exceptional
cases is called Interim Budget.
For example, in a newly set up organisation or in an
organisation where system is getting set up for the first
time, budget may be prepared for the remaining period of the
year. In case of ensuing election, a government may present
Interim Budget. Once the elections are over & a new
government is formed, regular budget can be presented.
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Volga is a large manufacturing company in the private sector. In 2007 the company had a gross sale of Rs.980.2 crore. The other financial data for the company are given below: Items Rs. In crore Net worth 152.31 Borrowing 165.47 EBIT 43.17 Interest 34.39 Fixed cost (excluding interest) 118.23 Calculate: a. Debt equity ratio b. Operating leverage c. Financial leverage d. Combined leverage. Interpret your results and comment on the Volga’s debt policy
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