OBJECTIVES OF THE STUDY

Primary objectives:

To study the capital budgeting with special references to the Hinduja Foundries in
Chennai.

Secondary objectives:

To study the techniques of capital budgeting for decision making.

To understand the practical usage of capital budgeting techniques.
To understand the existing structure of capital budgeting and financing trend of
company.
To study the financial aspects of future expansion of Hinduja Foundries.
To evaluate the financial investment associated with the replacement of existing
asset the purchase of new asset.
To study the techniques of capital budgeting for decision making.

SCOPE OF THE STUDY

 The present study is analytical in nature.
This study is confined to five years study period from 2011-2015 with special
references to HINDUJA FOUNDRIES.
The study is based on financial data obtained from the publishing annual reports.
The technique used for the analysis is historical funds flow analysis which has also its
own limitation.
The cash flow management is an essential function in every organisation for the
effective utilization of funds for making profits.
The main scope of the study is the companys capital budgeting using various
financial tools of DCF techniques, comparative statement, etc..,

STATEMENT OF PROBLEM

Capital budgeting is concerned with planning and development of available capital for the
purpose of maximizing the long term profitability of the concern. Through the capital
budgeting the company gain more profit. Avoid unnecessary expenses. Through the capital
budgeting predict and prepare for expensed and investment. There is improper capital
budgeting the working capital will not determine properly. Capital budgeting decisions
involves long term commitments of capital. There is lot of uncertainty in long term. The time
elements is the implication of a capital budgeting decision are over a long period.