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Budgeting is a significant function in organisations which operate with a policy of planning activities and attempt to achieve targets as set in the budget through those activities. While planning such activities, every person responsible to deliver results is involved in the process and is enabled to own the targets set by the organisation for his/her function for the specified period. This is achieved by facilitating the generation of budget proposals at the lowest level and taken to the top in hierarchy through bottom-up approach. This process helps instill a sense of ownership in the minds of functional people working at different levels and they sincerely contribute in keeping their performance in line with the budget prepared and willingly agreed upon by them. Budgetary control operates as an effective tool of monitoring and control in routine and specific functions throughout the organisation. With the help of this, top management is assured of achieving organisational goals and measuring performance of functions objectively. The present case highlights the importance of budget which incorporates in it every aspect of organisation with the understanding that it has a definite bearing upon the performance of people. It also highlights the role a static and flexible budget play through budgetary control. When an effective budgetary control is in place, top management banks upon targets set. This Case has been written for the students of Management Studies who pursue their MBA/Post-Graduate Diploma in Management with a specialisation in Finance/General Management.