Jaipuria Institute of

Management,
Vineet Khand, Gomti Nagar
Lucknow – 226010

Academic Year 2022-2023

Batch 2022-2024
Trimester 2nd
Programme PGDM
(PGDM / PGDM-FS / PGDM-RM)
Name of Course CORPORATE FINANCE
Section C
Name of Faculty Prof. Sushma Vishnani

Nature of Submission Project Report

(Assignment / Project Report)
Topic of Assignment / Project Analyze the long-term financial decisions of a
business firm

Deadline for Submission 19th January, 2024

Group/ Learning Team Number LT-C06
Maximum Marks Allotted

Contribution of Group/LT members in the Assignment/Project

Sl. Name & Enrollment Number of Contribution Signature

No. Student

1 PRIYA BISHT PANASONIC(analysis , data collection ), Priya Bisht

(JL23PG147)

2 PRANJUL PANDEY ABB(analysis , data collection ), Pranjul

Pandey
(JL23PG140)

3 RISHIKA SRIVASTAVA PHILIPS(analysis , data collection ), Rishika

Srivastava
(JL23PG153)

4 SAKSHI SINGH BAJAJ ELECTRICALS Sakshi Singh

LIMITED(analysis , data collection ), peer
analysis, compilation
 (JL23PG165)

5 SANKET SINGH Bajaj Electricals (analysis , data Sanket Singh

collection ),
(JL23PG171)

6 NIKHIL ANAND HAVELLS(analysis , data collection ), Nikhil Anand

(JL23PG122)

Date of receiving at PMC: Signature of PMC Staff:

Penalty [Marks to be deducted (if any)]:
 INTRODUCTION

We can more accurately determine a company's financial health and make wise
investment decisions by using the resources of corporate finance. Additionally,
it helps firms market their organisation to their stakeholders so that those
stakeholders may decide whether to make investments in it. The organisation
can make the most of its resources by using a range of ratios and other
calculations. Our main objective in doing this study is to evaluate and compare
the commercial success of various organisations in the ELECTRICAL GOODS
market. The companies chosen for this study were BAJAJ ELECTRICALS,
HAVELLS, PHILIPS, PANASONIC, ABB because they are all well-known in
this industry and because there is not enough room for too much variation in
performance to be accounted for by each company's particular method of
handling finances.
 OBJECTIVE

This project's goal is to evaluate each company that we have chosen to compete
in the CONSUMER INDUSTRY industry's performance. The finance,
investment, dividend, and working capital management of the firm are the most
crucial factors to consider when making decisions; doing so helps to make the
best use of the company's resources. The purpose of this study is to interpret and
analyse the impact that decision-making plays in the success of the firm; the
decisions in question relate to the financing, investment, dividend, and working
capital management of the

This research aims to look at the variances between the companies and identify
the causes of those discrepancies. The research will also look into further
actions a business can take to enhance decision-making by maximising its
existing resources and investing in the right areas. We have examined
intercompany profitability performance, the debt-to-equity ratio, and the interest
coverage ratio. In terms of dividends, we have examined the payout ratio, the
DPS dividend rate, and if the company has engaged in equity share buybacks.
We have employed numerous other techniques in this project to properly
interpret the company's performance.
 THEORETICAL FRAMEWORK

 INVESTING DECISIONS

Investment decision-making is the process of allocation of its a

company's financial resources among various investments in an effort to
increase its sshareholder’s returns. Capital budgeting is the method used to
decide which long-term investments to make.
 The decisions regarding the purchase of inventory is an example of an
investment choice. Always having enough of the required materials on
hand is critical to maintaining the business's smooth operation.
 Costs of Strategic Investment: A firm decides to invest strategically when
it wants to increase its ability to compete in the market.
 Amount Invested in Progress Toward Modernization: Businesses will
spend money on this in order to modernize their production processes.
They take decisions to upgrade to a newer, more sophisticated system.
This is a variation of the phenomena known as "capital deepening."
 Expansion Funding: When demand increases, firms frequently decide to
invest in expansion to keep up with demand. Expansion funding is the
process of making investments to grow a business.
 Funding for a Growing Company - Companies make these choices as
they embark on new endeavors or attempt to diversify their risk.

 FINANCING DECISIONS

Financing Choices: Financing choices are those that businesses must make
about the balance between equity and debt in their capital structure. This has a
big impact on how the company finances its assets, chooses where to put its
money, and creates value for its shareholders.

Management techniques for better financial judgement

1. Examining the financial statements.
2. Estimating the financial costs of programmes and initiatives-
3. (ROI) calculation can help in supporting the case with data, showing how
much money the project is likely to make and the resources needed to make it
successful.
4. Conducting a cost-benefit analysis is another way to use the money to help
make better decisions. This approach to data-driven decision-making offers a
framework for fact-based evaluation of a project.
5. Develop Your Budgeting Skills- Every manager and decision-maker should
be proficient in budgeting, which is a fundamental financial ability.
6. Track Financial Outcomes- A complete understanding of the past and present
financial performance of the firm in order to make wise decisions is needed.
Financial KPIs, or key performance indicators, can assist in assessing the
financial health of businesses. Examples of financial KPIs include gross profit
margin, working capital, and return on equity.

 DIVIDEND DECISIONS

The decision to pay a dividend is one of the many important decisions a CFO
must make each year that has the biggest impact on investor returns. The
optimum dividend choice is made when shareholder wealth increases in
lockstep with the company's stock price. In terms of dividend policy, there are
primarily two options available:
1) Decisions affecting the financial system's future; and
2) Decisions affecting its near-term destiny.
Determining resource optimization both internal and external financing are
regarded as reasonable alternatives.
Internal source of finance, or using one's own funds like retained earnings, is a
term used in finance. Internal financing is a cost-effective solution because there
are no interest or other variable costs involved.
Aspects influencing the dividend policy include:
1. Company Financial Needs
2. Investor Aspirations
3. Market Trend
4. Legal Limitations
5. Cost of equity and return on investment (r)
6. Management and ownership
 METHODOLOGY

It refers to a set of procedures that constitute standard practice in a given field.

The term "methodology" is used to describe the strategy and reasoning behind
your study. To achieve our goals, we need to first understand the methods
currently in use in our field, as well as the underlying ideas or concepts that
inform those methods. Two common methods for gathering information for
scientific research are: Primary data collecting entails the initial stages of a
research project, and it can be carried out in a number of different ways (such as
through an Annual Report, Company news, or from various types of business
magazines). Secondary data gathering utilizes information already available to
the public, such as that found in publicly available databases, libraries,
academic publications, and web pages. Our LT relied on secondary data sources
to compile the information for this study, and we surveyed six organizations
active in the Indian CONSUMER DURABLES sector. Captaline's website
features comprehensive information on all businesses. We gathered information
about the company's finances, equity, share price, and more from this website.
After collecting extensive information using the stand-alone method, we loaded
it all into Excel for a comprehensive examination of each section.
The overall Method Included:
 Selection of industry
 Selection of six different companies under the selected industry
 Collection of information about the company’s history
 Data collection of companies through websites.
 Sorting of data according to our relevance
 Transfer of data to excel files
 Analysis of data to extract relevant information that can help us to know
about the company on basis of investing, dividend and financing.
 Last was a suggestion and giving comment to each analysis