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SYNOPSIS
ON
“A study on capital budgeting decision adopted by ashok Leyland”
SUBMITTED TO
RASTRASANT TUKDOJI MAHARAJ NAGPUR UNIVERSITY
NAGPUR
SUBMITTED BY
ARZOO CHANDRAMUNI VAIDYA
(FINANCIAL MANAGEMENT)
GUIDANCE
OF
DR. PRASHANT MANUSMARE
DEPARTMENT OF BBA
COMPANY PROFILE
Hinduja Group
Hinduja Group is an Indian transnational conglomerate. The group is present in
eleven sectors including automotive, oil and specialty
chemicals, banking and finance, IT and ITS, cyber
security, healthcare, trading, infrastructure project
development, media and entertainment, power, and real estate. The Hinduja
brothers have around US$100 billion of assets around the world. The Hinduja
family has around US$50 billion of assets in America. The current (2022) net worth
of the Hinduja brothers is US$32 billion.
With the corporate office located in Chennai, its manufacturing facilities are
in Ennore, Bhandara, two in Hosur, Alwar and Pantnagar. Ashok Leyland also has
overseas manufacturing units with a bus manufacturing facility in Ras Al
Khaimah (UAE), one at Leeds, United Kingdom and a joint venture with the
Alteams Group for the manufacture of high-press die-casting
extruded Aluminium components for the automotive and telecommunication
sectors. Operating nine plants, Ashok Leyland also makes spare parts and engines
for industrial and marine applications.
Ashok Leyland has a product range from 1T GVW (Overall Vehicle Weight) to 55T
GTW (Overall Trailer Weight) in trucks, 9 to 80-seater buses, vehicles for defence
and special applications, and diesel engines for industrial, genset and marine
applications. In 2019, Ashok Leyland claimed to be in the top 10 global
commercial vehicle makers. It sold approximately 140,000 vehicles (M&HCV and
LCV) in 2016. The company has passenger transportation options ranging from 10
seaters to 74 seaters (M&HCV = LCV). In the trucks segment, Ashok Leyland
primarily concentrates on the 16 to 25-ton range and has a presence in the 7.5 to
49 ton production range.
LITERATURE REVIEW
Douglas A.Hersahey and Hendrik p. Van Dalen(2006)in the study explored the
Psychological mechanisms that underlie the retirement planning and saving
tendencies of Dutch and American Workers the research suggests that policy
analysts should take into account both individual and cultural differences in the
psychological predispositions of workers when considering Pension reforms that
stress individual responsibility for planning and saving.
M.Kabir Hassan and Dr.Shari Lawrance (2007) conducted a survey on “An Analysis
of Financial preparation for Retirement ''. In this study, the researcher analyzes
the financial preparation for retirement. Regarding retirement plan contributions,
the findings indicate significant positive effects regarding income and
womanhood .Education is significant and positive as a predictor for the decision
to contribute to a pension plan for women in their their thirties, Thus supporting
the hypothesis of a significant positive relationship between education and
pension plan contributions.
OBJECTIVES
2. The company launched a new LCV range called Bada Dost in two variants –
i4 and i3 in 3-3.5 ton gross vehicle weight (GVW) categories on Monday
with a starting price of ₹7.75 lakh (ex-Mumbai). The LCVs are initially
launched across 7 states and the availability will be scaled up pan-India over
the next 3 months.
3. While the new platform will help Ashok Leyland consolidate its presence in
the domestic LCV market, the company plans to build right hand (RHD) and
left hand drive (LHD) variants on the same to expand its overseas footprint.
5. “Vans are also being planned on this platform as globally delivery vans are
a big market," he added.
RESEARCH METHODOLOGY
Books
Websites
Journals
Magazines
Newspapers
Annual Reports
HYPOTHESIS
DEFINITION: -
“Hypothesis can be defined as a tentative generalization of the validity of
which remains tested. In this, most elementary stage, the hypothesis may be
guess, imaginative ideas, which becomes the basis for action or
investigation.”
The study reveals that the financial performance is fair. It has been maintaining
good financial performance and further it can improve if the company
concentrates on its operating, Administrative and selling expenses and by
reducing expenses. The company should increase sales volume as well as gross
profit. Despite price drops in various products, the company has been able to
maintain and grow its market share to make strong margins in market,
contributing to the strong financial position of the company. The company was
able to meet its entire requirements for capital expenditures and higher level of
working capital commitment with higher volume of operations and from its
operating cash flows.
CHAPTERISATION