A PROJECT REPORT

ON

CAPITAL BUDGETING
FOR

MADHUCON SUGARS & POWER INDUSTRIES LTD

Submitted
By
P.NARESH KUMAR
H.T. NO: 227909672005

Project Report submitted in partial fulfillment for the award of Degree of

MASTER OF BUSINESS ADMINISTRATION

OSMANIA UNIVERSITY
VIDYA NAGAR, HYDERABAD.

SIDDHARTHA TECHNICAL INSTITUTE

(AFFILIATED TO OSMANIA UNIVERSITY)
Korremmula,Narapally,Ghatkesar(M),R.R.Dist.A.P.
(2009-2011)
 A PROJECT REPORT

ON

CAPITAL BUDGETING
FOR
MADHUCON SUGARS
&
POWER INDUSTRIES LTD.
Submitted
By

P.NARESH KUMAR
H.T. NO: 227909672005

Project Report submitted in partial fulfillment for the award of Degree of

MASTER OF BUSINESS ADMINISTRATION

OSMANIA UNIVERSITY
VIDYA NAGAR, HYDERABAD.

SIDDHARTHA TECHNICAL INSTITUTE

(AFFILIATED TO OSMANIA UNIVERSITY)
Korremmula,Narapally,Ghatkesar(M),R.R.Dist.A.P.
(2009-2011)
 SIDDHARTHA INSTITUTE OF MANAGEMENT
(Affiliated to Osmania University)
Narapally, Korremula Road, Ghatkesar (Mdl), R.R. Dist-501 301

Sponsored by Gouthami Educational Society

CERTIFICATION

This is to certify that the Project Report title CAPITAL BUDGETING

submitted in partial fulfilment for the award of MBA Programme of Department of

Business Management, O.U. Hyderabad, was carried out by P.NARESH KUMAR

bearing roll no.227909672005 under my guidance. This has not been submitted to

any other University or Institution for the award of any degree/diploma/certificate.

Internal Guide External Guide Principal

 DECLARATION

I, P.NARESH KUMAR hereby declare that this Project Report titled

“CAPITAL BUDGETING” with reference to “MADHUCON SUGARS & POWER

INDUSTRIES LTD” submitted by me to the department of management, O.U.,

Hyderabad, is a bonafide work undertaken by me and it is not submitted to any other

University or Institution for the award of any degree diploma/certificate or published any

time before.

Name and Address of the Student: Signature of the Student

P.NARESH KUMAR.

ACKNOWLEDGEMENT
 I would like to express my thanks to MR.SRINIVAS RAO M.D. who gave

the opportunity to do this project in his esteemed organization.

I extend my thanks to Mr. Dr. V.VIDYA SAGAR, Principal, and

Mr. HANUMANTH RAO. N., Director of SIDDHARTHA INSTITUTE OF

MANAGEMENT.

I also extend my thanks to ANANT KUMAR DASS, Faculty for his

valuable guidance throughout this project work.

Last but not least I would like to thank all my family members and my

friends without whose support this project would not have been completed.

P.NARESH KUMAR

ABSTRACT
 Capital budgeting refers to long term planning for proposal capital
outlay and their financing. It includes long term funds and their
utilization. It may be defined as firms’ process of acquisition and
investment capital.

It deal exactly with major investment proposals, which are essential

for long term projects incurred among the available market opportunities.

As investment in long term assets is a complex process the decisions

pertaining must also be tactical so the project while generating the
decision making must be efficient. Types of identifying risks , managing
the resources and computing cash flows plays vital role in capital
budgeting. Finally capital budgeting techniques helps the manager in
evaluating the efficient allocation of capital.

The study of capital budgeting helps to decide whether or not funds

should be invested in long term projects and helps to analyze the
proposals for expansion or creating additional capacities to analyze
various proposals regarding capital investment and to choose the best out
of many alternative proposals.