SYNOPSIS

A STUDY ON CAPITAL BUDGETING ATHYUNDAI

FINANCE MANAGEMENT SYNOPSIS REPORT [ Submitted in partial fulfillment ] [ Summer Internship June to July 2012 ]

As a part of the Curriculum of MASTER OF BUSINESS ADMINISTRATION [ MBA ] From Bhai Parmanand institute of Business Studies, Delhi.

Affiliated to Guru Gobind Singh Indraprastha University, New Delhi

SUBMITTED BY RAHUL KUMAR ( 01311403911) MBA Third Semester

SUBMITTED TO Prof. Dr. SUBHASH KAKKAR Expert on Management New Delhi

Bhai Parmanand Institute of Business Studies Shakarpur, Delhi-110092

1 - INTRODUCTION OF CAPITAL BUDGETING:

An efficient allocation of capital is the most important finance function in modern times. It involves decisions to commit firms funds to long-term assets. Such decisions are tend to determine the value of company firm by influencing its growth, profitability & risk. Investment decisions are generally known as capital budgeting or capital expenditure decisions. It is clever decisions to invest current in long term assets expecting long-term benefits firms investment decisions would generally include expansion, acquisition, modernization and replacement of long-term assets.

In evaluating such investment proposals, it is important to carefully consider the expected benefits of investment against the expenses associated with it.

Capital Budgeting at HYUNDAI MOTOR INDIA LIMITED

The Project study is undertaken to analyze and understand the Capital Budgeting process in HYUNDAI MOTOR INDIA LIMITED, which gives mean exposure to practical implication of theory knowledge. To know about the companys operation of using various Capital Budgeting techniques. To know how the company gets funds from various resources.

2.2-OBJECTIVES OF THE STUDY:

To study the relevance of capital budgeting in evaluating the project for finance To study the technique of capital budgeting for decision- making. To measure the present value of rupee invested. To understand an item wise study of the company financial performance of the company. To make suggestion if any for improving the financial position if the company. To understand the practical usage of capital budgeting techniques To understand the nature of risk and uncertainty

3-Limitation:
In attempt to make this study authentic and reliable, every possible aspect of thetopic was kept in mind. But also there were certain limitations to the study whichare as follows: Lack of time was a limiting factor, ie., the schedule period of 8 weeks are not sufficient to make the study independently regarding Capital Budgeting in HYUNDAI. The busy schedule of the officials in the HYUNDAI is another limiting factor. Due to the busy schedule officials restricted me to collect the complete information about organization. Non-availability of confidential financial data. 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 HYUNDAI. Therefore it was possible to explain only few methods of capital budgeting.

4 - HYPOTHESIS of the study:

The hypothesis taken under consideration for thestudy is:

1. That more than 60% of capital is invested for long period of time.

5-Research Methodology:
Research is the process of systematic & in depth study or search of any particular topic, subject by the collection, presentation & interpretation of relevant details or data. It is a careful search or injury into any subject or subject matter, which is an endeavour to discover or to find out valuable facts which would be useful for further application or utilization. It in common parlance refers to a search for knowledge. Research can also be defined as a scientific and system search for pertinent information on specific topic. We can also say research as an art of scientific investigation. According to Clifford Woody research companies redefining problem, formulating hypothesis or suggested solutions; collecting; organizing and evaluation data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.

In the study of the topic CAPITAL BUDGETINGIN HYUNDAIDURING

THE PERIOD 2010-2011 the methodology adopted is Analytical and the method of
sampling is probability sampling.

DATA COLLECTION

PRIMARY DATA COLLECTION METHOD:

Interview of employee of the firm Mr. Anandkumar Questionnaire

SECONDARY DATA COLLECTION METHOD:

Internet Annual report Financial Management books

6 - CONCLUSIONS
After the study, based on the finding I, RAHUL KUMAR, conclude that the capital budget process of HYUNDAI MOTOR INDIA LIMITED is quiet simple and effective

The project concludes that there are basically two methods of capital budgeting process i.e. traditional method and modern method. Traditional method comprises of pay back method,accounting rate of return & modern method includes net present

value,profitability index, and internal rate of return.

BIBLIOGRAPHY:www.hyundai.co.in www.google.com www.wekipedia.com

BOOKS:Financial Management by S.N. Maheshwari. Financial Management by I.M. Pandey Financial Management by SheebaKapil