PRESENTATION

ON SUMMER TRAINING
AT HAL, LUCKNOW
“DIFFERENT FUNCTIONS OF FINANCE AND ACCOUNT
DEPARTMENT WITH SPECIAL REFERENCE TO
CAPITAL BUDGETING”
Company Profile
 Hindustan Aeronautics Limited ( HAL) came into existence on 1st
October, 1964.
 The company was formed by the merger of Hindustan Aircraft Limited
with Aeronautics India Limited and Aircraft manufacturing depot.
 It has 19 Production units and 9Research and design centers in 7
location in India.
 Accessories Division of HAL, Lucknow was established in 1970.
 Headquarter of HAL is in Bangalore.
 Govt. of India became a shareholder in 1941 and took over the
management in 1942.
 The main customers of HAL are Indian defence service, Coastguard,
Border security force
 RESEARCH TOPIC

CAPITAL BUDGETIGNG
 CAPITAL BUDGETING
 Search for investment opportunities.

 Estimate all cash flows for each project.

 Evaluate the cash flows.

 Make the accept/reject decision.

 Periodically reevaluate past investment decision.

 RESEARCH METHODOLOGY
 Research Objective
To study the process of Capital budgeting with main
emphasis on the technique this is used in H.A.L.

 Research Design
The research design is DESCRIPTIVE
 Research Methodology
In every step of life resources are always scarce. In the same way,

Business organizations are also facing such type of problems. In this

respect every organization wishes to use available resources in an

optimum manner. Capital Budgeting is a technique which helps in solving

the same aspects of such phenomenon. This study is basically emphasizing

on the Capital Budgeting of H.A.L., Lucknow and tries to find out ways of
optimum utilization of financial resources with the help of Capital
budgeting technique
 FINDINGS
 HAL has no big competitor in the whole market.
 HAL is listed amongst the top ten public sector units in the country.
 All standards related to production more or less depend upon direct
workers.
 Production depends upon the direct and indirect workers.
 Establishing of rapport direct and indirect workers is very well.
 Company is performing its responsibilities by providing employment to
4000 people in their division itself.
 Tight security is made to avoid any kind of distortion. Without entry
pass no outsider can enter into the premises of factory.
 SUGGESTIONS
 Year wise records showing the value of the capital items with the gross
value and written down value should be maintained.
 The source of supply with the details of Purchase Orders and dealers. If
any available in India alternatively should be computerized and
maintained.
 No. of years which the total value of the capital items to be depreciated,
should be indicated against each item on the basic of type of the capital
items.
 Budgeting should include every pie of amount so that there is no
embarrassing situation during procurement; so far the funds are
concerned to pay.
 Lead time for receiving raw materials from suppliers is more, it should
be reduced.
 CONCLUSION
 All sections of Finance & Accounts department functioning separately but
in a coordinated manner.

 How the financial functions and theories are applicable in an

organization.

 The budget is classified into 2 categories for convenience Capital and

Performance.

 HAL is listed among top ten public sector units which are running in
profit.

 Estimates and expenditures are presented physical and financial aspects.