PROJECT ON BHEL CAPITAL BUDGETING

Capital Budgeting encourages managers to accurately manage and control their capital expenditure. By providing powerful reporting and analysis, managers can take control of their budgets.

a. Capital budgeting is the process of analyzing projects and determining which ones to accept and include in the capital budget.

Capital Budgeting is a planning process that been used to determine whether an organization long term investment like new products, machinery, plants and research are worth to funding of cash through the firm capitalization structure such as debt, equity or retained earnings. Capital budgeting is a process of allocating company or organization resources for major investment, capital or expenditure. The goal of capital budgeting is to ensure that the value of the firm increase to the shareholder.

We would like to thank our project instructor , Prof.Varisha Rehman, for continuios help and support on the matter in this project.I would like to thank my colleagues for their valuable suggestion and input in making my project.

It gives me deep pleasure in acknowledging the valuable effort extended to me by various personalities in completion of my project because every project needs inspiration, guidance and help at every step. For this, I would like to thank Dr. Lakhwinder Singh, Head of department, for giving me opportunity to work under Dr. Fulbagh Singh, Department of Commerce, Guru Nanak Dev University, Amritsar. I offer heartfelt gratitude to Dr. Fulbagh Singh for his keen interest, suggestions, extreme support and invaluable guidance during the course of this project.

SEMINAR PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF UNDER GRADUATE DEGREE IN BUSINESS ADMINISTRATION

"A budget is a plan." More specifically, a budget is a plan of action matched by resources required to implement the plan. Budgets generally divide between two broad categories: the operating budget, sometimes known as the "expense" budget and the capital budget. Budget in simple word means a sum of money allocated for a particular purpose. Budget is there in everyone's life, it may be a small or a big one. Budget is a tool which helps in controlling and planning the functions of an organization. It is formalized statements of the goals of an organization stated in financial terms and accomplishes several important functions for managers. It states future projections of revenues, expenses and expected

The comprehensive budget consists of the operating budget and the capital budget for short-term and long-term goals, respectively, and the operating budget consists of the income and expenses of daily living, payments of debts, and deposits into high-growth accounts, while the capital budget represents the expenditures of large items, (Siegel & Yacht, 2010 ). The operating budget can be valued

We would like to take this opportunity to express our sincere thanks and gratitude to all those people who have significantly contributed towards the completion of this assignment. The project given to us was carried under the supervision and expert guidance of Prof: Vijya Bandhopadya . We are extremely thankful to her for providing us this opportunity.

Capital planning and budgeting is a very vital piece in the Public Budgeting System process. It is an essential implement in the financial management practice and is effective in both public and private organizations. It is the method which consists of the determination and the evaluation of the investments and the possible expenses by an organization. As explicated by Lee, Johnson, & Joyce (2008), capital budgets help in determining how much of each form of investment is needed, and it supports an organization in assessing the available revenue which includes loans that are required to finance those investments (p. 475). Capital budgeting is a central part of the universal practice of accounting as it has an implication on the other

I would like to acknowledge my mentor Ms. Preeti Sahay, to have stood as a support for me throughout the project and in providing sufficient information for the project.

In a company, when evaluating multiple opportunities for investment, capital budgeting is an important tool that is used. Every company has a certain amount of capital available that they need to use in the most effective way possible. Capital budgeting involves analysis techniques, planning and justifying how capital dollars are spent on long term assets and projects. It provides methods through which projects are evaluated to decide whether they make sense for a particular business at a point in time. It also provides a basis for choosing between projects when more than one is under consideration at the same time (Lasher, 2013, p. 458-475). There are capital budgeting techniques that are applied and used in capital budgeting decisions, and each having some strength and weaknesses between them.

I would like to express my deep appreciations to my mentor Ms.S.Yadav who have greatly helped me with this project.

Our most sincere thanks to our head of the department Mrs. Urvisha Patel and our project guide Mr. Mayank Chauhan for the kind of co-operation and for guiding, encouraging and motivating us through out in the project.

I wish to express my sincere gratitude to our beloved Head of the Department Ms.S.SATHYASUNDARI, MBA, M.Phil., PhD., Department of Management Studies for her extraordinary guidance which helped me to complete this summer project work successfully.