SYNOPSIS

Capital Budgeting A case study on Brady Company India Pvt limited

Name : Pristen Fernandes Roll No :- 11780918

Introduction
The term Capital Budgeting refers to long term planning for proposed capital outlay and their Financing It includes raising long-term funds and their utilization. It may be defined as a firms formal process of acquisition and investment of capital. Capital budgeting decisions are one of the most important decisions, which affect both long and short run existence of a business. It has the major impact on the shareholders wealth in the long run. The project work has recognized the above two phases and conducted this study. The study aims at identifying the extent to which capital budgeting techniques and its related practices are used by the ECIL, and identifying reasonable justifications behind the use of such pattern. To evaluate the above, techniques such as PBP, ARR, NPV, PI, and IRR are used. The study also shows the practices related to capital budgeting techniques such as: cost of capital estimation methods, risk analysis techniques, and cash flow forecasting techniques, which are not widely used by the ECIL within the domination of subjective judgment. The term Capital Budgeting refers to long term planning for proposed capital outlay and their financing. It includes raising long-term funds and their utilization. It may be defined as a firms formal process of acquisition and investment of capital. Capital Budgeting may also be defined as The decision making process by which a firm evaluates the purchase of major fixed assets. It involves firms decision to invest its current funds for addition, disposition, modification and replacement of fixed assets. It deals exclusively with investment proposals, which an essentially long term projects and is concerned with the allocation of firms scarce financial resources among the available market opportunities. Some of the examples of Capital Expenditure are Cost of acquisition of permanent assets like land and buildings. Cost of addition, expansion, improvement or alteration in the fixed assets. R&D project cost, etc.

ECIL was setup under the Department of Atomic Energy, with a view to generate a strong indigenous capability in the field of professional grade electronics. Many industries these days require concepts of electronics in their production process. Electronics is assuming increasing importance in the monitoring and control of production of many industries like Engineering, Chemical and Metallurgical industries. In India, the electronics industry has growth in many strides both in public and private sectors. A part from this, in the field of industrial electronics , the government of India has taken initiations in 1960s ton set up a industrial units in public sectors in order to produce industrial electronics system with indigenous technology to meet the nations requirement in static areas. Electronics occupies a key position in modern science and technology. It has a vital role to play in the field of Atomic Energy, communication, defense education, Space technology and entertainment. Because of its dynamic character, its pervasive nature and its significant impact on science, industry and society, Electronics is today in the vanguard of the technology process. Technology process is both very rapid in this field. An intensive promotional effort to both production and research and development is therefore essential to ensure a rapid growth in this field. In this direction, the government of India and its agencies with the aim of developing and promoting industrial Electronics system with indigenous know-how to attain Self-