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SYNOPSIS REPORT
ON
2020-2022
AURORA POST GRADUATE COLLEGE
PEERZADIGUDA
DEPARTMENT OF MANAGEMENT
SYNOPSIS
1 INTRODUCTION
4 RESEARCH METHODOLOGY
INTRODUCTION
An efficient allocation of capital is the most important finance function in modern
times. It involves decisions to commit firm’s funds to long-term assets. Such decisions are
tend to determine the value of company/firm by influencing its growth, profitability & risk.
long term assets expecting long-term benefits firm’s long term LONG TERM
DECISIONSs deal with investment of organization’s resources in Long tern (fixed) Assets
and / or Short term (Current) Assets. Decisions pertaining to investment in Short term Assets
fall under “Working Capital Management”. Decisions pertaining to investment in Long term
Capital budgeting decisions are related to allocation of investible funds to different long-term
assets. They have long-term implications and affect the future growth and profitability of the
firm.
Organizations are frequently faced with Capital Budgeting decisions. Any decision that
requires the use of resources is a capital budgeting decisions. Capital budgeting is more or
at the local bank or a checking account the earns interest or the home they bought to live in.
However, many people are overwhelmed when they being to consider the concept of
investing, let alone the laundry list of choices for investment vehicles. Even though it may
seem the everyone and their brothers knows exactly who, what and when to invest in so they
can make killing, please don’t be fooled. Before you can confidently choose an investment
path that will help you achieve your personal goals and objectives, it’s vitally important that
you understand the basics about the types of investments available. Knowledge is your
strongest ally when it comes to weeding out bad investment advice and is crucial to
The investment option before you are many. Pick the right investment tool based on the risk
profile, circumstance, time available etc. if you feel the market volatility is something, which
you can live with then buy stocks. However, remember that risk and returns are directly
Equities:
Stocks can be brought/sold from the exchanges (secondary market) or via IPO’s – Initial
Public Offerings (primary market). Stocks are the best long-term investment options wherein
the market volatility and the resultant risk of losses, if given enough time, are mitigated by
the general upward momentum of the economy. There are two streams of revenue generation
2. Growth: The price of the stock appreciates commensurate to the growth posted by the
management, precise timing may ensure a return of 40% or more. Picking the right stock at
the right time would guarantee that your capital gains i.e. growth in market value of stock
Bonds: It is a fixed income (debt) instrument issued for a period of more than one year with
the purpose of raising capital. The central or state government, corporations and similar
institutions sell bonds. A bond is generally a promise to repay the principal along with fixed
rate of interest on a specified date, called as the maturity date. Other fixed income
The average rate of return on bond and securities in India has been around 10-16% p.a.
Precious Projects: Precious objects are items that are generally small in size but highly
valuable in monetary terms. Some important precious objects are like the gold, silver,
The Project study is undertaken to analyze and understand the Capital Budgeting process in
theory knowledge.
techniques.
boom period, when a company make high profits there is also a fear of liquidation.
2. In a country like India where resources are scarce and the demand for funds are many,
the need of proper financial management is required .In case of newly started
companies with a high growth rate it is more important to have sound financial
To study the relevance of capital budgeting in evaluating the project for project
finance
RESEARCH METHODOLOGY
To achieve aforesaid objective the following methodology has been adopted. The
information for this report has been collected through the primary and secondary sources.
Primary Sources:
It is also called as first handed information; the data is collected through the
observation in the organization and interview with officials. By asking question with the
accounts and other persons in the financial department. A part from these some information is
collected through the seminars, which were held by KESORAM CEMENT LIMITED.
Secondary Sources:
The secondary data have been collected through the various books, magazines,
Lack of time is another limiting factor, i.e. the schedule period of 8 weeks are not
another limiting factor. Due to the busy schedule officials restricted me to collect
The study is conducted in a short period, which was not detailed in all aspects.
All the techniques of capital budgeting are not used in KESORAM CEMENT
budgeting.