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Hyundai

This document discusses capital budgeting, which involves making investment decisions for long-term assets that impact a company's growth, profitability, and risk. It examines the need to carefully evaluate expected benefits against associated costs when making these decisions. Capital budgeting is an ongoing process for growing companies. The objectives are to study techniques for project evaluation and finance, understand practical usage of methods, and analyze Hyundai Motor's capital budgeting process and ability to obtain funds. Both primary research through interviews and secondary sources were used in the methodology. Limitations include time constraints, limited access to confidential data, and an inability to fully explain all capital budgeting techniques due to what is used by Hyundai Motor.

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Rahul Kumar
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780 views6 pages

Hyundai

This document discusses capital budgeting, which involves making investment decisions for long-term assets that impact a company's growth, profitability, and risk. It examines the need to carefully evaluate expected benefits against associated costs when making these decisions. Capital budgeting is an ongoing process for growing companies. The objectives are to study techniques for project evaluation and finance, understand practical usage of methods, and analyze Hyundai Motor's capital budgeting process and ability to obtain funds. Both primary research through interviews and secondary sources were used in the methodology. Limitations include time constraints, limited access to confidential data, and an inability to fully explain all capital budgeting techniques due to what is used by Hyundai Motor.

Uploaded by

Rahul Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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INTRODUCTION

CAPITAL BUDGEING:
An efficient allocation of capital is the most important finance function in modern times. It involves decisions to commit firms funds to long-term assets. Such decisions are tend to determine the value of company/firm by influencing its growth, profitability & risk. Investment decisions are generally known as capital budgeting or capital expenditure decisions. It is clever decisions to invest current in long term assets expecting long-term benefits firms investment decisions would generally include expansion, acquisition, modernization and replacement of long-term assets.

Such decisions can be investment decisions, financing decisions or operating decisions. Investment decisions deal with investment of organizations resources in Long tern (fixed) Assets and / or Short term (Current) Assets. Decisions pertaining to investment in Short term Assets fall under Working Capital Management. Decisions pertaining to investment in Long term Assets are classified as Capital Budgeting decisions. Capital budgeting decisions are related to allocation of investible funds to different long-term assets. They have long-term implications and affect the future growth and profitability of the firm.

In evaluating such investment proposals, it is important to carefully consider the expected benefits of investment against the expenses associated with it.

Organizations are frequently faced with Capital Budgeting decisions. Any decision that requires the use of resources is a capital budgeting decisions. Capital budgeting is more or less a continuous process in any growing concern.

NEED FOR THE STUDY


The Project study is undertaken to analyze and understand the Capital Budgeting process in HYUNDAI MOTOR , which gives mean exposure to practical implication of theory knowledge. To know about the companys operation of using various Capital Budgeting techniques. To know how the company gets funds from various resources.

OBJECTIVES OF THE STUDY


To study the relevance of capital budgeting in evaluating the project for project finance. To study the technique of capital budgeting for decision- making. To measure the present value of rupee invested. To understand an item wise study of the company financial performance of the company. To make suggestion if any for improving the financial position if the company. To understand the practical usage of capital budgeting techniques To understand the nature of risk and uncertainty.

METHODOLOGY
To achieve aforesaid objective the following methodology has been adopted. The information for this report has been collected through the primary and secondary sources.

Primary sources
It is also called as first handed information; the data is collected through the observation in the organization and interview with officials. By asking question with the accounts and other persons in the Account department. A part from these some information is collected through the seminars, which were held by HYUNDAI.

Secondary sources
The secondary data have been collected through the various books, magazines, brouchers & websites.

LIMITATION OF THE STUDY :

Lack of time is another limiting factor, i.e., the schedule period of 8 weeks are not sufficient to make the study independently regarding Capital Budgeting in HYUNDAI. The busy schedule of the officials in the HYUNDAI is another limiting factor. Due to the busy schedule officials restricted me to collect the complete information about organization. Non-availability of confidential financial data. The study is conducted in a short period, which was not detailed in all aspects. All the techniques of capital budgeting are not used in HYUNDAI. Therefore it was possible to explain only few methods of capital budgeting.

INDUSTRY PROFILE

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