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A STUDY ON “CAPITAL BUDGETING” WITH REFEREENCE TO BHARAT HEAVY ELECTRICIAL LIMITED A project report submitted in partial fulfillment of requirments for the awards of degree of MASTER OF BUSINESS ADMINISTRATION BY DEPARTMENT OF BUSINESS MANAGEMENT SRI INDU INSTITUTE OF MANAGEMENT (AFFILIATED TO OSMANIA UNIVERSITY) 2007-2009 ACKNOWLEDGEMENT My sincere thanks are due to all who have helped me in various ways in the course of the project. I am deeply grateful to MR.P.V.ARUN KUMAR for giving me an opportunity to carry my project at their organization. Without their co-operation this wouldn’t have been success. I also wish to thanks MR RAJA REDDY SIR,(H.O.D), my project guide Mr. N. Srikanth lecturer in finance for his help and…show more content…
2. Cost of addition, expansion , improvement or alteration in the fixed assets. 3. Cost of replacement of permanent assets. 4. Research & Development projects costs, etc. Definition: Charles T.Horngreen has defined capital budgeting as “Capital Budgeting is long term planning for making and financing proposed capital outlays.” In the words of Lynch, “Capital Budgeting is concerned with planning and development of available capital for the purpose of maximizing the long term profitability of the concern.” NEED FOR THE STUDY The earnings of public enterprises do not justify the investment in public enterprises. In many areas like generation of internal resources, contribution to central exchequer, export earnings, import substitution and in achieving their set objectives, the performances of public enterprises has been disappointing. In India several units were started in public sector with a broad aim of socializing the means of production in strategies is providing counter – veiling power to the growth of a large house in the private sector, development of key and basic industries, instruments for the success of planning and for the establishment of socialist pattern of society. They have become white elephants and also one of the major problems of concern of our economy by becoming a burden to the government a well as to the


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