IN- plant training on

“CAPITAL BUDGETING”

UNDERTAKEN AT

“PATIL INSULATING COMPANY PVT LTD”

HUBLI

Submitted by

MS.CHANDRAKALA.P.RAMDURG -

Under the guidance of

External guide: Internal guide:

MRS.SHOBHA.PATANKAR

PATIL INSULATING CO.PVT.LTD

Adept college, DHARWAD
HUBLI

ADEPT COLLEGE OF BUSINESS

ADMINISTRATION
DHARWAD
2010-11
Successful completion of any task would be incomplete without mentioning the names of people
who made it possible, whose constant guidelines, support and encouragement crown all the success.

I take this opportunity to express my profound gratitude to our prof. , ADEPT

BUSINESS COLLEGE DHARWAD. Who has always been a constant source of inspiration to me and
enriched my project with his innovative ideas and guidance.

I sincerely extend my thanks to Mrs.SHOBHA.PATANKAR ( ), PATIL INSULATING

COMPANY PVT LTD, HUBLI and also in between who mixed delicate mix of freedom, guidance and
monitoring to make this project a great success.

I thank our director prof.mahesh mashal and all the professors who showed keen interest in giving
their valuable guidance and constant encouragement during the project work.

Last but not the least I am very grateful to my non-teaching staff and friends for their co-operation
and invariable support.

Chandrakala.p.ramdurg
CHAPTER TITLE PAGE NO
CHAPTER-1 1) PROFILE OF THE INDUSTRY
2) COMPANY OVERVIEW
3) PRODUCT PROFILE
4) DEPARTMENT STUDY
CHAPTER-2 CONCEPTUAL FRAME WORK
1) MEANING OF CAPITAL BUDGETING
2) CAPITAL BUDGETING PROCESS
3) IMPORTANT OF CAPITAL BUDGETING
4) EVALUTION TECHNIQUE
CHAPTER-3
CONCEPTUAL ASPECTS OF CAPITAL BUDGETING AND INVESTMENT
DECISIONS

INTRODUCTION
The term ‘capital budgeting’ is used interchangeably with capital expenditure management, capital
expenditure decision, long term investment decision, management of fixed assests, etc. it may be
defined as “planning, evaluation and selection of capital expenditure proposals.” Capital budgeting
involves a current outlay or serves as outlays of cash resources in return for an anticipated flow of
future benefits In other words, the system of capital budgeting is employed to evaluate expenditure
decisions which involve current outlays, but likely to produce benefits over a period of time longer
than one year. these benefits may be either in the form of increased revenue or reduction in costs.

Capital budgeting is vital in marketing decisions. Decisions on investment, which take time to
mature, have to be based on the returns which that investment will make. Unless the project is for
social reasons only, if the investment is unprofitable in the long run, it is unwise to invest in it now.

Often, it would be good to know what the present value of the future investment is, or how long it
will take to mature (give returns). It could be much more profitable putting the planned investment
money in the bank and earning interest, or investing in an alternative project.

Typical investment decisions include the decision to build another grain silo, cotton gin or cold store
or invest in a new distribution depot. At a lower level, marketers may wish to evaluate whether to
spend more on advertising or increase the sales force, although it is difficult to measure the sales to
advertising ratio.