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A Project Report
On
CAPITAL BUDGETING
For
WESTERN COALFIELDS LIMITED
Submitted by
MS. Priti Krishnarao Rasegaonkar
Under the guidance of
Mr. Uttam Sapate
Submitted to
UNIVERSITY OF PUNE
IN
Partial fulfillment of the requirement of the award of the degree of
MASTER OF BUSINESS ADMINISTRATION (MBA)
Through
ALL INDIA SHREE SHIVAJI MEMORIAL SOCIETYS
INSTITUTE OF MANAGEMENT (MBA)
KENNADY ROAD, PUNE 1
YEAR: 2010-2012
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ACKNOWLEDGEMENT
Success can never be attained without proper guidance
A project in an organisation is an experience wherein academic knowledge
gained is applied in a practical manner. I had an opportunity to complete my
summer project in WESTERN COALFIELDS LIMITED, NAGPUR.
The project is great source of learning & a good experience as it made me aware
of professional culture & conducts that exist in an organization. Inspection &Guidance are valuable in all aspects of life especially in an academic field.
I would like to express my gratitude to Dr. SINHA, Director, who mentored me
for successful completion of this project.
I am also thankful to WESTERN COALFIELDS LIMITED, NAGPUR. For
permitting me to purse the project in their esteemed concern and also to all the
employees of western coalfields ltd.
I express my sincere thanks to Prof. Dr.Uttam Sapate, without his guidance &
inspiration; I could not have completed my project.
I would like to express my heart full thanks to company employees (Finance
department), who gave me all the necessary information and guidance in
completion of this project.
I will always carry fond memories of these training days.
Priti K.Rasegaonkar
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DECLARATION
I, Miss. Priti K. Rasegaonkar, a student of AISSMS Institute of Management,
Kenedy road, Pune, hereby solemnly declare that the project report entitled
CAPITAL BUDGETING with special reference to Western Coalfields
Limited, NAGPUR was carried out by me in partial fulfillment of M.B.A.
Program according to the Pune University rules and norms and had no
commercial interest or motive.
Further, I also declare that I have tried to my level best to complete this
project with almost sincerely, honestly and accuracy, even then if, any mistake or
error has crept in I shall most humbly request to reader to point out those
errors,any suggestion regarding this project will be most welcome.
It is my original work and is not submitted to any other organization for any other
purpose.
Date: Priti K.Rasegaonkar
Place:
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EXECUTIVE SUMMARY
Introduction:
A project is about the Capital Budgeting, A Capital Budgeting is a method which
is implemented in most of the organization and proper as well as planned
implementation provides fruitful results i.e. in terms of profit maximization and
growth of the company in a high competitive environment.
Reason for Selecting Topic:
Capital Budgeting is a very crucial part of FINANCE activities for any
organization and management devote significant amount of time and efforts for
this activity.
Scope Of Project:
This research project aims at studying and analyzing the current practices of capital
budgeting at Western coalfields ltd. (WCL).The research project would help WCL to implement new and better techniques
of capital budgeting while evaluating new projects i.e. acquiring new coal mines.Company Profile:
Western Coalfields Limited (WCL) is one of the eight Subsidiary Companies of
Coal India (CIL), which is under administrative control of Ministry of Coal.
Industry Profile:
Coal India Limited (CIL) is a Schedule 'A' 'Navratna 'Public Sector Undertakingunder Ministry of Coal, Government of India, with Headquarters in Kolkata, West
Bengal. CIL is the single largest coal producing company in the world.
Objectives:
The primary objective of the project is to study the Capital Budgeting techniques
required for financial investment of company. And to study and understand the c-
urrent trend, procedure & implementations of capital budgeting techniques at
WCL.
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Research Methodology:
Research is a process of collecting, analyzing and interpreting information to
answer questions. It is structured enquiry that utilizes acceptable, scientific
methodology to solve problems and create new knowledge.
Conclusion:
After doing study, I came to a conclusion that the projects are evaluated based on
12% IRR.
Suggestions and Recommendations:
After doing a study it is observed that there is hierchy and approval takes very
long time. The methods of Capital Budgeting may be utilizes in an effective way.
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CHAPTERI
INTRODUCTION
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1.1 INTRODUCTION:-
A project is an activity sufficiently self- contained to permit financial
and commercial analysis. In most cases projects represent expenditure of
capital funds by pre- existing entities which want to expand or improve
their operation.
In general a project is an activity in which, we will spend money in
expectation of returns and which logically seems to lead itself to planning.
Financing and implementation as a unit, is a specific activity with a
specific point and a specific ending point intended to accomplish a
specific objective.
To take up a new project, involves a capital investment decision
and it is the top managements duty to make a situation and feasibility
analysis of that particular project and means of financing and
implementing it financing is a rapidly expanding field, which focuses not
on the credit status of a company, but on cash flows that will be generated
by a specific project.
Capital budgeting has its origins in the natural resource and
infrastructure sectors. The current demand for infrastructure and capital
investments is being fueled by deregulation in the power,
telecommunications, and transportation sectors, by the globalization of
product markets and the need for manufacturing scale, and by the
privatization of government owned entities in developed and developing
countries.
The capital budgeting decision procedure basically involves the
evaluation of the desirability of an investment proposal. It is obvious that
the firm most have a systematic procedure for making capital budgeting
decisions.
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1.2 CAPITAL BUDGETING:-
Capital budgeting is one of the most important factors in the process of
corporate decision-making. Data from numerous previous studies show that
managers prefer the simple payback period method (non-discounted payback
model)over the net present value method (discounted cash flow model), which
academicsconsider as superior.
Capital budgeting is a required managerial tool. One duty of a financial
manager is to choose investments with satisfactory cash flows and rates of return.
Therefore, a financial manager must be able to decide whether an investment is
worth undertaking and be able to choose intelligently between two or more
alternatives. To do this, a sound procedure to evaluate, compare, and select
projects is needed. This procedure is called capital budgeting.
1.3 WHAT IS CAPITAL BUDGETING ?
The term Capital Budgeting refers to the long-term planning for proposed
capital outlays or expenditure for the purpose of maximizing return on
investments.
The capital expenditure may be:
(1) Cost of mechanization, automation and replacement.
(2) Cost of acquisition of fixed assets.
e.g., land, building and machinery etc.
(3) Investment on research and development.
(4) Cost of development and expansion of existing and new projects.
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Capital budgeting is a process used by companies for evaluating and
ranking potential expenditures or investments that are significant in amount. The
large expenditures could include the purchase of new equipment, rebuilding
existing equipment, purchasing delivery vehicles, constructing additions to
buildings, etc. The large amounts spent for these types of projects are known as
capital expenditures.
Capital budgeting usually involves the calculation of each projects future
accounting profit by period, the cash flow by period, the present value of the
cash flows after considering the time value of money, the number of years it
takes for a projects cash flow to pay back the initial cash investment, an
assessment of risk, and other factors. Capital budgeting is a tool for
maximizing a companys future profits since most companies are able to
manage only a limited number of large projects at any one time.
1.4 INVESTMENT DECISIONS
The Capital Budgeting decision denotes a decision situation where the
lump sum funds are invested in the initial stages of a project and the returns
are expected over a long period. The capital budgeting decision involve the
entire process of decision making relating to acquisition of long term assets
whose returns are expected to arise over a period beyond one year, Planning
and control of capital expenditures is a major decision area in any
organization.
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1.5 IMPORTANCE OF INVESTMENT DECISIONS:-
Capital investments, representing the growing edge of a business,
are deemed to be very important for three inter- related reasons.
1. The influence firm growth in the long term consequences capital
investment decisions have considerable impact on what the firm can do in
future.
2. They affect the risk of the firm; it is difficult to reverse capital investment
decisions because the market for used capital investments is ill organized
and /or most of the capital equipments bought by a firm to meet its
specific requirements.
3. Capital investment decisions involve substantial out lays. Capital
budgeting is more or less a continuous process and it is carried out by
different functional areas of management such a production, marketing,
engineering, financial management etc. All the relevant functional
departments play a crucial role in the capital budgeting decision process.
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CHAPTERII
COMPANY PROFILE
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2.1 ABOUT THE COMPANY :
WESTERN COALFIELDS LIMITED
Western Coalfields Limited (WCL) is one of the eight Subsidiary Companies of
Coal India (CIL), which is under administrative control of Ministry of Coal. The
Company incorporate under the Companies Act, 1956 has its registered office at
Coal Estate, Civil Lines, Nagpur-440001.
The Company contributes about 11.3% of the national coal production. It
has mining operation spread over the states of Maharashtra (in Nagpur,
Chandrapur and Yeotmal Districts) and Madhya Pradesh (in Betul and
Chandrapur Districts).
The company is a major source of supplies of Coal Industries located in
Western India in the States of Andhra Pradesh, and Gujarat and also in Southern
India in the States of Andhra Pradesh, Tamil Nadu, Karnataka and Kerala. A
large number of Power Houses under Maharashtra, Madhya Pradesh, Gujarat,
Karnataka, Punjab and Uttar Pradesh- Electricity Boards are major consumers of
its coal along with cement, chemical, fertilizer, paper and brick Industries in these
states.
The company came into being on 1st
November, 1975, after re-
organization of the nationalized coal industry. At that juncture, the operations ofWCL were spread over the States of Maharashtra and M.P. organized into 10
Coal producing Areas, one workshop to provide services of repair and
maintenance of Machineries/ Equipment and One Coal Washeries.
By the year 1985-86, number of mines had increased to 130 and total
production to 48.89 Million Tonnes. Keeping in view the tremendous growth
programme the company was bifurcated, with effect from January 1986, into
South Eastern Coalfields Limited and the present Western Coalfields Ltd.
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The command area of WCL has reserves of 11079 Million Tonnes of
coal, out of 2, 45,692 Million Tonnes in India as on 01.01.2004. With 4.51% of
coal reserves WCL contributes about 13% towards CIL production and 11%
towards national coal production.
WCL has made concerted progress rationalizing its manpower. Despite
increase in production from a level of 22.78 Million Tonnes to 39.53 Million
Tonnes during the period 1990-91 to 2003-04, WCL is able to gradually reduce
its overall manpower and increased production and productivity.
2.2COAL TYPES:
Chemically Coal is made of carbon, hydrogen, oxygen, nitrogen and some other
impurities. The main constitute of coal are:
Carboneous Non-Carboneous
Vitarin Ash
Clarin Moisture
Volatile Matter
Fixed Carbon
Basically Coals are four types:
1. Anthracite2. Bituminous3. Lignite4. Peat
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WCL is mainly concerned with bituminous coal. These are mainly of two types:-
1. Coking Coal2. Non-Coking Coal
Coking Coal is that variety of coal which contains less percentage of ash and has
high heat value. It can convert into hard coke which is suitable for iron and steel
industry.
Non-Coking coal is that variety of coal which contains high percentage of ash
and has low heat value.
2.3 METHOD OF EXTRACTION OF COAL:
Coal is obtained from the earths surface called mines. Mines are of two types:
1) OPENCAST MINES:
In this type of mine, attempt is made to reach the level of coal seam with the help
of technology, by removing the over burden (i.e. after removing everything lying
above the coal seam). For this heavy machines like HEMM (Heavy Earth Moving
Machine) are used and the manpower is reduced.
2) UNDERGROUND MINES:
In this type of mine technology attempts to reach the coal seam not by removing the
overburden but through a pit. These mines are in those areas where the coal
seam is deep. The over burden remains intact and the workers dig the ground.
The workers are sent to the level of coal seam either through shaft (an in clination)
or through lift i.e. DOLI. There is optimum utilization of manpower in these mines.
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In this type of mines, there is high risk of accidents due to the fall of roofs and
sides. In order to avoid these accidents thrust is given to provide support of green roof
with steel supports like steel cogs, pit props, roof bolts, W-straps, etc.
2.4 AWARDS ANDCERTIFICATES :
WCL is recipient of Vanashree Award from Govt. of Maharashtra for
afforest ration.
WCL received Jawaharlal Nehru Memorial Award from International
Green Land Society for effective implementation pollution control
measures in the mining areas.
WCL received India 2000 Millennium Award from World Peace for
WCLs contribution in motivating the employees on environmental
protection works at projects and mines.
WCL received Appreciation Certificates from social forestry
department Government of Maharashtra for spectacular contribution in
afforest ration in the Vidharbha region.
Umrer and Padampur are the first among the coalmines in the country toget ISO-9001: Quality management system certifies certificate from SGS
United Kingdom Ltd.
WCL was ranked 87th
in the list of Indian Globally competitive
Companies (published in Business World, 17th
June issue).
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2.5 WCL AT A GLANCE :
Number of working mines: 01.04.2011
Opencast : 38
Underground : 43
Mixed (OC+UG) : 02
Total : 83
Coal Production Actual Actual
(Million Tonnes) 2010-11 2009-10
Opencast 34.95 36.12
Underground 08.70 09.62
Total 43.65 45.74
Manpower (as on) 1.4.2011 1.4.2010
Executives 2409 2196
Monthly Rated 12058 12702
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Daily Rated 39812 41051
Piece Rated 4182 4494
Transfers/Casuals and 582 427
Company Trainee
Total 59043 60870
Manpower Reduction 1827 1622
2.6 FINANCIAL PERFORMANCE :
The turnover of the company during the year 2010-11 was Rs.7073.44
crores against budgeted Rs.6765.74 crores. The net profit for the year is
Rs.1067.97 crores against budget of Rs.386.12 crores. The total sales realization
during 2010-11 was Rs.7314 crores.
The company has paid Rs.504.74 crores by way of corporate taxes to
Central Government during the year 2010-11.
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0
200
400
600
800
1000
1200
1400
1600
Profit
Budgeted Profit
Profit
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CHATER-III
INDUSTRY PROFILE IN INDIA
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INDUSTRY MEANING
The Production Side Of Business Activity Is Referred As Industry. It Is A
Business Activity, Which Is Related To The Raising, Producing, Processing Or
Manufacturing Of Products. The Products Are Consumers Goods As Well As
Producers Goods. Consumer Goods Are Goods Which Are Used Finally
By Consumer E.G. Food Grains, Cosmetics Etc. Producers Goods Are The
Goods Used by Manufactures for Producing Some Other Goods E.G. Machinery,
Tools, Equipments, Etc. Expansion Of Trade and Commerce Depends on
Industrial Growth. It Represents The Supply Side Of Market.
Classification/Types of Industries
There Are Various Types of Industries. These Are Mentioned as Below:-
Explanation:
Primary Industry
Primary Industry Is Concerned With Production Of Goods With The Help Of
Nature. It is Nature Oriented Industry, Which Requires Very Little Human
Efforts.
E.g.-Agriculture, Farming, Fishing, Forestry, Etc.
Types of Industries
Primary
IndustryGeneric
Industry
Service
Industry
Manufact
uring
Industry
Constructi
on
Industry
Extractive
Industry
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Genetic Industry
Genetic Industries Are Engaged In Re-Production And Multiplication Of Certain
Spices Of Plants And Animals With The Object Of Sale. The Main Aim Is To
Earn Profit From Such Sale.
E.g.-Cattle Rearing, Poultry, plant Nurseries, Etc.
Service Industry
In Modern Times Service Sector Plays An Important Role In The development
Of The Nation And Therefore It Is Named As Service Industry. The Main
Industries Which Fall Under This Category Include Hotel Indusrty, Tourism
Industry, And Entertainment Industry, Etc.
Manufacturing Industry
Manufacturing Industries Are Engaged In Transforming Raw Material Into
Finished Products With The Help Of Machines And Manpower. The Finished
Goods Can Be Either Consumer Goods Or Producer Goods.E.g.-Textiles, Chemicals, Paper Industry, Sugar Industry, Etc.
Construction Industry
Construction Industries Take Up The Work Of Construction Of
Buildings, Bridges, Roads, Dams, And Canal, Etc. These Types Of Industry Are
Different From All Other Types Of Industry Because In Case Of Other Industries
Goods Can Be Produced At One Place And Sold At Another Place. But Goods
Produced And Sold By Constructive Industry Are Erected At One Place.
Extraction Industry
Extractive Industries Is Concerned With Extraction Or Drawing Out Goods From
The Soil, Air Or Water. Generally Products Of Extractive Industries Come In
Raw Form And They Are Used By Manufacturing And Construction Industries
For Producing Finished Goods.
E.g.-Mining Industry, Coal Mineral, Oil Industry, Etc.
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Coal India Limited (CIL) is a Schedule 'A' 'Navratna 'Public Sector
Undertaking under Ministry of Coal, Government of India, with Headquarters in
Kolkata, West Bengal. CIL is the single largest coal producing company in the
world and the largest corporate employer in the country with manpower of
409,332 (as on 1 July 2009). With proven coal reserves of 105.82 Billion Tonnes
out of total reserves of 267 Billion Tones (as on 1 April 2009) Coal India plays a
pivotal role in Indian energy scenario.
CIL contributes around 85% of coal production in India; it is the largest
company in the World in terms of coal production. Employs nearly 4.25 Lakhs
persons and is the largest corporate employer in the country. It is one of the largest
Companies in the country, turn over being around Rs. 386.31 billion in 2007-08. It
is one of the largest tax payers (Corporate Tax Rs.35.75 billion) in 2007-08
and has paid Dividend of Rs17.054 Billi on to the Govt. of India in 2007-08.
Today, Coal India has eight Subsidiary Companies including CMPDI,
and is one of the largest Corporate Employers of the world, employing about 3.83
Lakhs people. CIL produced 431.32 Million Tonnes of coal during the year 2010-
11. Presently, about 90.72% of CIL's production comes from Opencast Mines.
3.3 ABOUT THE COMPANY
Name: -COAL INDIA LIMITED (CIL)
Date of incorporation:-21.10.1975
Corporate status:-The Company is incorporated under the Companies Act
1956, and is 90% owned by Government of India and 10% public Share
holding.
Business:-Engaged in the mining of coal, coal based products and mining
consultancy.
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VISION:
To emerge from the position of domestic leader to leading global player in the
energy sector by adopting best practices from mine to market with due care to
environmental and social sustenance.
MISSION:
Produce the planned quantity of coal efficiently and economically with due
regard to safety, conservation & quality.
Coal India Limited was formed on 21st
October, 1975 as a holding company with five
subsidiaries:
Bharat Coking Coal Limited (BCCL),- Dhanbad Central Coalfield Limited (CCL),- Ranchi Western Coalfield Limited (WCL),- Nagpur region Eastern Coalfield Limited (ECL),- Asansol Central Mine Planning and Design Institute Limited (CMPDIL),- Ranchi
Several years Later, FOUR more subsidiaries were added:
Mahanadi Coalfield Limited (MCL),- Raurkela South Eastern Coalfield Limited (SECL),- Bilaspur North Eastern Coalfield Limited (NECL),- directly under control of coal
India limited
Northern Coalfield Limited, Singrauli (NCL),- Singrauli
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3.4 CORPORATE STRUCTURE:
3.5 COAL RESERVES IN INDIA
Coal Reserves in India
Coal and oil are two primary energy resources in India. Coal forming about 85%
of coal production in India.
Coal Production of Last 5 years
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The resources of Coal India are estimated to be around 43.65 million Tones
2006-2007 which constitute about 0.8% of global Coal reserves, whereas its
production contribution is around 7% India today one of the major coal
producers in the world and ranks at 3rd
position.
3.6 Production and Growth :
Produces over 400 Million Tonnes of Coal annually. Coal production ending
Financial Year 2011 was 431.32 Million Tonnes (MTs).
3.8 Cares for Environment :
Committed to minimize the adverse impact of coal mining on
environment through well structured Environment Management Plans and
sustainable development activities. As a part of 'Clean & Green' programme,
massive plantation has been taken up by CIL wherever land is available. CIL has
till date planted over 73 million trees. A positive result of this effort towards
improvement of environment.
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3.9 Special Achievement :
1. The Utilization of Draglines, Dumpers and Dozers of WCL is FIRST in CIL,
while in case of Shovels, it is SECOND.
2. The Availability of Shovels, Dumpers, Dozers and Drills is higher than same
period of last year.
3.10 Core values :
Commitment.
Customer Satisfaction. Continuous Improvement. Concern for Environment. Creativity & Innovation.
3.11 LOCATION MAP :
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FINANCE DEPARTMENT:- Organization Chart
DIRECTOR (FINANCE)
G.M G.M G.M GM G.M C.F.M
(finance) (corporate (cost & budget) (sales a/c) (internal (corporate
treasury) audit) a/c
& tax)
Dy. C.F.M
F.M
establishment Dy.C.F.M
F.M F.M F.M
(Administration& (sales a/c) (concurrence)
concurrance) Dy. C.F.M
F.M F.M
F.M F.M (cost& rev. (capital budget
(Expenditure) (Cash budget) &MIS)
Section) F.M F.M
F.M F.M
(fund mgmt) (derivative F.M F.M
transactions) (corporate a/c
(Indirect
& Tax) tax)
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CHAPTER -IV
OBJECTIVES & SCOPES
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OBJECTIVES, SCOPE OF THE STUDY
2.1Objectives of the study:-
1. To study the Capital Budgeting techniques required for financial investment of
company.
2. To study and understand the current trend, procedure & implement-ations of
capital budgeting techniques at WCL.
3. To analyze the tools and techniques used in preparing capital budget. 4. To understand the nature of capital expenditures.5. To estimate the total capital expenditure requirements for projects.
6. To approximate & establish the sources of capital to fund these projects.
2.2 Scope of the study:-
The scope of this project report is limited to the WCL in Nagpur. Experience of
working at the corporate level and knowing about various management strategies and
policies was very fruitful.
1. This research project aims at studying and analyzing the current practices of capital
budgeting at Western coalfields ltd. (WCL).2. The research project would help WCL to implement new and better techniques
of capital budgeting while evaluating new projects i.e. acquiring new coal mines.3. This study would help WCL to find out various ways to fulfill the capital
requirements of the company.4. It would help the company to improve the profit ability of their projects.5. This study is carried out using actual data and information provided by various sources
at WCL. CIL has complete monopoly in the production, trade and marketing of
coal. Hence, this study has a wide scope in the entire coal producing companies
and other subsidiaries of Coal India Ltd. (CIL).
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33
CHAPTER V
RESEARCH METHODOLOGY
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5.1 RESEARCH METHODOLOGY
Methodology used in the study:
For carrying out this study, a lot of efforts have been made. Through this
type of vast organization these efforts are normal but not irrelevant. It might have little
use but it is not so that it has no use. So we tried our level best for carrying out this study
and used following method to achieve these objectives of the study.
Research concerns itself with obtaining information through observation that can
be used to systematically develop logically related proportion so as to attempt to
establish casual relationship among variables.
- By Black and Champion.
Sources of Data
Data constitutes the subject matter of analysis. The relevance, adequacy and
reliability of data determine the quality of the study. There are various methods of data
collection which involves the use of specific recording forms. These are called tools or
instruments of data collection.
Data is primarily of two kinds;
1. Primary Data
2. Secondary Data
1. Primary Data:
Data that is collected for the specific purpose at hand is called as
primary data. It is customized according to the needs of the researcher and focuses
exclusively on the current research problem. The collection of the primary data is
time consuming. It calls for the greater planning and coordination. The primary
data has been collected by conducting formal & informal discussions with the
staff members WCL, Nagpur. Personal meeting with senior finance executives.
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2. Secondary Data:
Secondary data means data that is already available in various reports, diaries,
letters, books and periodicals. Secondary data is that, which has been used previously for
any research and is now in use for the second time, is called Secondary Data. Secondary
data serves as a reference for the study.
The secondary has been collected from;
The companys annual reports
The companys brochure
Reference books
Magazines
WCL Intranet
Company Records
Personal meeting with senior executive:
After analysis of past records for understanding various things it was very important to
meet finance executives and managers. To understand the reason behind the increase or
decrease in profit it was indispensable to talk with the person who are directly involved in
this process. Therefore, I decided to talk with top officers, senior executives of thefinance and administration department. Thanks to all those managers and executives
whom I wished to talked and talked. They co-operated with necessary data and talk very
freely with me. Walk talked about past data, present scenario and even predicted about
the future.
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Analysis of Past records:
Records of last years of trading and profit and loss accounts, balance sheet and cash flow
statement of WCL are collected.
Limitation:
Primary and secondary data has been collected from various resources but it was easy to
collect all the data due to safety reason and security concern. That is why some problems
had come in collecting data. I have tried my best for collecting data.
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CHAPTER VI
THEOROTICAL BACKGROUND
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Charles T. Horngnen has defined capital budgeting as "Capital Budgeting is long-
term planning for making and financing proposed capital outlays."
In other words, capital budgeting is the decision making process by which a firm
evaluates the purchase of major fixed assets including building, machinery and
equipment.
According to Hamption, John. 1, "Capital budgeting is concerned with the firm's
formal process for the acquisition and investment of capital."
From the above definitions, it may be concluded that capital budgeting relates to
the evaluation of several alternative capital projects for the purpose of assessing those
which have the highest rate of return on investment.
Capital budgeting is an assessment, where large finances are invested in the early
stages of the venture and the profits are expected over an extended period of time. These
decisions are related to allotment of capital to diverse long-term assets.
6.3 Features of investment Decisions
1. The exchange of current funds for future benefits.
2. The funds are invested in long-term assets.
3. The future benefits will occur to the firm over a series of year.
6.4 Importance of Investment Decisions
Investment decisions requires because of the following reasons: They influence the firms growth in the long run. They affect the risk of the firm. The involve commitment of large amount of funds. They are irreversible, or reversible at substantial loss. They are among the most difficult decision to make.
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6.5 Types of Investment Decisions
One classification is as follows:
Expansion of existing business Expansion of new business Replacement and modernization.
Yet another useful way to classify investment is as follows:
Mutually exclusive investment Independent investment Contingent investment.
6.6 Investment Evaluation Criteria
Three steps are involved in the evaluation of an investment:
Estimation of cash flows Estimation of the required rate of return
Application of a decision rule for making the choice.
6.7 Three types of capital budgeting:-
1. Accept and reject decision.2. Capital rationing decision.3. Mutually exclusive choice decision.
1. Accept and Reject Decision:-
Proposal in which rate of return is more than the invested rate. i.e. output is
more that input. In this all independent project are accepted. Independent project are
those which is not complete with others.
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2. Capital rationing decision:-
Capital rationing means distribution of capital in favors of more acceptable
proposals. A firm determines a certain point for selecting accepted proposals.
3. Mutually exclusive choice decisions:-
Mutually exclusive investment serves the same purpose and complete with each
other. If one investment is undertaken, other will have to be excluded.
6.8 Importance of Capital Budgeting
Capital budgeting decisions are of paramount importance in financial decision. So
it needs special care on account of the following reasons:
1. Long-term Implications: A capital budgeting decision has its effect over a long time
span and inevitably affects the companys future cost structure and growth. A wrong
decision can prove disastrous for the long-term survival of firm. On the other hand, lack
of investment in asset would influence the competitive position of the firm. So the capital
budgeting decisions determine the future destiny of the company. Not only the present
earnings of the firm are affected but the future growth and profitability also depend upon
investment decisions taken today. So a bad decision today can lead to a downfall
tomorrow.
2. Involvement of large amount of funds: Capital budgeting decisions need substantial
amount of capital outlay. This underlines the need for thoughtful, wise and correct
decisions as an incorrect decision would not only result in losses but also prevent the firm
from earning profit from other investments which could not be undertaken. Capital
Budgeting decisions usually involve large investments of funds but mostly there is a
shortage of funds at every firm. Hence the funds and the resources need to be controlled
by the firm.
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3. Irreversible decisions: Capital budgeting decisions in most of the cases are
irreversible because it is difficult to find a market for such assets.
4. Risk and uncertainty: Capital budgeting decision is surrounded by great number of
uncertainties. Investment is present and investment is future. The future is uncertain and
full of risks. Longer the period of project, greater may be the risk and uncertainty. The
estimates about cost, revenues and profits may not come true.
5. Difficult to make: Capital budgeting decision making is a difficult and complicated
exercise for the management. These decisions require an over all assessment of future
events which are uncertain. It is really a marathon job to estimate the future benefits and
cost correctly in quantitative terms subject to the uncertainties caused by economic-
political social and technological factors.
6.9 Capital Budgeting Process
Capital budgeting is a process that involves making of investment decisions by a
company as to identify which project is profitable so that the company can invest its
capital. The crux of capital budgeting is the allocation of available resources to various
proposals. The crucial factor which influences the capital budgeting decision is the
profitability of prospective investment. Hence capital budgeting decisions are very vital
to any organization. It is a complex process as it involves decisions relating to the
investment of current funds for the benefit to be achieved in the future but the future is
always uncertain. The following procedure is adopted in process of Capital Budgeting.
Capital Budgeting Process:-
1. Identification of investment proposal.
2. Screening the proposal.
3. Evaluation of various proposals.
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4. Fixing priorities.
5. Final approval & preparation of capital expenditure budget.
6. Implementing proposal.
7. Performance review.
1. Identification of investment proposal:-
The capital budgeting process begins with the identification of investment
proposal. The proposal or idea about potential investment opportunities may originate
from the top of management or may come from the rank and file workers of any
department or from any officers of the organization. The departmental head analyses the
various proposals in the light of the corporate strategies and submits the suitable
proposals to the capital expenditures planning committee in case of large organization or
to the officers a concerned with the corporate strategies and submits the suitable
proposals to the capital expenditures. Capital expenditures planning committee in the
case of large organization or the officers concerned with the process of long-term
investment decision.
2. Screening the proposal:-
The expenditures planning committee screens the various proposals received from
different departments. The committee views these proposals from various angles to
ensure that these are in accordance with the corporate strategies or selection criterion of
the firm and also do not lead to the department imbalances.
3. Evaluation of various proposals:-
The next step in the capital budgeting process is to evaluate the profitability of various
proposals. There are many methods which may be used for this purpose such as payback
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period method, rate of return method, net present value method, internal rate of return,
etc. All these method of evaluating profitability of capital investment proposals have
been discussed in detail separately in the page of this chapter. It should be classified as
below.
i. Independent proposals.ii. Contingent or dependent proposals and
iii. Mutually exclusive proposals.
4. Fixing priorities:-
After evaluating various proposals, the unprofitable proposals may be rejected straight
away. But it may not be possible for the firm to invest immediately in the all the
acceptable proposals due to limitation of funds. Hence, it is very essentials to rank the
various proposals and to establish priorities after considering urgency, risk and
profitability involved there in.
5. Final approval & preparation of capital expenditure budget:-
Proposals meeting the evaluation and other criteria are finally approved to be included in
the capital expenditure budget. However, a proposal involving smaller investment may be
decides at the lower levels for expenditure action. The capital expenditures a budget lays
down the amount of the estimation expenditures to be incurred on fixed assets during the
budget period.
6. Implementing proposals:-
Translating an investment proposal into a concrete project is a complex, time consuming,
and risk- fraught task.
1. Adequate formulation of projects
The major reason for delay is insinuate formulation of projects put
differently, if necessary homework in terms of preliminary comprehensive
and detailed formulation of the project.
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2. Use of the principle of responsibility accounting
Assigning specific responsibility to project managers for completing the
project within the defined time-frame and cost limits is helpful for
expeditious execution and cost control.
3. Use of Network Techniques
For project planning and control several network techniques like PERT
(Programme Evaluation Review Techniques) and CPM (Critical Path Method) are
available.
7. Performance Review:-
Performance review, or postcompletion audit, is a feedback device. It is a means for
comparing actual performance with projected performance. It may be conducted, most
appropriately. When the operations of the project have stabilized. It is useful several
ways.
I. It throws light on how realistic were the assumptions underlying the project.
II. It provided a documented log of experience that is highly valuable for decision
making.
6.10 Capital budgeting techniques:
Techniques of
Capital BudgetingTechniques
DCF Criteria NonDCF Criteria
NPV I.R.R. P. IPaybackperiod
Accounting Rateof Return
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selecting capital budgeting proposals:
Techniques grouped in the following two categories:
1. Time adjusted (Discounted Cash Flow Criteria-DCF)
a) Net Present Value Methodb) Internal Rate of Return Methodc) Discounted payback periodd) Profitability Index(PI)
2. Traditional (Non-Discounted Cash Flow Criteria)
a) Average Rate of Return (ARR)b) Payback period (PB)
1. DISCOUNTED CASH FLOW CRITERIA
a) Net Present Value (NPV) Method:
The present value is the procedure recognizing the time value of money. Cash flow
streams at different time periods differ in value and can be compared only when they are
expressed in terms of a common denominator, i.e., present values.
The formula for the net present value can be written as follows:
[ ( )
( )
( )
( )]
Where,
C1, C2 .represent net cash inflows in year 1, 2..,
K is the opportunity cost of capital,
C0 is the initial cost of the investment and
N is the expected life of the investment.
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The NPV Acceptance rules are:
1. Accept if NPV> 0
2. Reject if NPV< 0
3. May accept if NPV = 0
Example Assume that project X costs Rs. 2500 now and is expected to generate
yearend cash inflow of Rs. 900, Rs 800, Rs 700, Rs 600 and Rs 500 in years through. The
opportunity costs of the capital may be assumed to be 10%.
NPV = [Rs. 900 / (1+0.10) + Rs. 800 /() () )]
NPV= [818+661+526+410+310]-2500
NPV= 27252500= 225
Here, cash inflows (Rs. 2725) are greater than that of cash outflow (Rs. 2500).
Thus, it generates a positive net present value (NPV=+ Rs. 225). Therefore, it should be
accepted.
Advantages:
Time value: It recognized the time value of money-a rupee received today isworth more than a rupee received tomorrow.
Measure of truth profitability. Shareholder value: The NPV method is always consisted with objective of
shareholder value maximization.
Disadvantage:
Cash flow estimation: It is quite difficult to obtain estimates of cash flows due touncertainty for NPV method.
Discount Rate: It is also very difficult in practice to measure the discount rate.
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b) Internal Rate of Returns (IRR):
IRR is defined as the rate of discount at which the present value of cash inflow andpresent value of cash outflow are equal.
[
]
The internal rate of return is defined as the discount rate that gives a net present value
(NPV) of zero.
( )
Where,
PVCO = Present value of cash outlay
PVCFAT = Present value of cash inflows
R = Either of the two interest rates
= Difference in interest rates = Difference in calculate present value of inflows.
IRR Acceptance Rule:
Accept the project when, r > k Reject the project when, r < k May accept the project when, r = k
Where, r = internal rate of returns & k = required rate of return or cut off rate.
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MERITS:
Time value of money. Profitability measure: it considers all cash flows over the entire life of the project
to calculate its rate of return.
Share holder value: It is consistent with the shareholder wealth maximizationobjectives.
DEMERITS:
Multiply rate: A project may have multiply rates, or it may not have a unique rateof return.
Mutually Exclusive Projects: It may also fail to indicate a correct choice between
multiply exclusive projects.
c) Profitability Index:
It is the ratio of the present value of cash inflows, at the required rate of return to the
initial cash outflow of the investment. A profitability index number greater that 1
indicates an acceptable project, and is consistent with a net present value greater than 0.
The profitability index approach measures the present value of return per rupee invested.
The ratio is calculates as follows:
Rules for selection or rejection of a project:
1. If PI > 1 then accept the project2. If PI > 1 then reject the project
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3. May accept if PI = 1The ratio is calculated as follows:
For Example,
If the initial outlay of a project is Rs. 500 and Rs. 200 in year 1 4. We assume rate of
discount as 10%. The PV of cash inflows at 10% discount rate is:
Year Inflows 10% DF PV
1 400 .909 364
2 300 .826 248
3 500 .751 376
4 200 .683 137
Total PV = 1125
2. Traditional / Non-Discounted Cash Flow Techniques:
a) Average Rate of Return:
The average rate of return (ARR) method is to measures the profitability of an
investment. It is based upon accounting information rather than cash flows. The most
common usage of average rate of return (ARR) expresses it as follows:
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Where,
The average profit after taxes are determined by adding up the after tax profits
expected for each year of the project life and dividing the result by the no. of years.
The average investment is determined by dividing the net investment by 2.
Accept Reject Rule: This method will accept all those project whose ARR is higher
than the minimum rate established by the management and reject those projects which
ARR less than the minimum rate.
For Example: If an investment proposal considering a cost of Rs. 50,000 having life
expectancy of 5 years and no salvage value. Assuming the tax rate is 35% and the
firm uses straight line depreciation. The estimated cash flow before depreciation &
tax from the investment proposal are as follows:
Year CFBT Depreciation PBT TAX
(0.35%)
EAT
1 10000 10000 NIL NIL NIL
2 10692 10000 692 242 450
3 12769 10000 2769 969 18004 13462 10000 3462 1212 2250
5 20358 10000 10385 3635 6750
Total EAT (Earning After Tax) = 11250
= 9%
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Advantages:
It selects alternative uses of fund. It considers saving over the entire life of the project. In addition to measuring the desirability of new investment on the basis of their
relative cash flow, a comparison is made of expected profitability. This is done
with the average rate of return, which is a ratio of the yearly average net earnings
after depreciation and taxes to the average investment.
Disadvantage:
The differential timing of receipts is not considered It ignores the time value of funds.
b) Payback Period Method:
The pay period method is the 2nd
traditional method of capital budgeting. It is simple and
perhaps, the widely employed quantitative method for appraising capital expenditure
decisions. It is defined as the number of years required. This method answers the
question How many years will it take for the cash benefits, to pay the original cost of an
investment. This method is also known as the payout method.
Advantages
1. It is an important guide to investment policy.2. It lays a great emphasis on liquidity.3. It is easy to understand, calculate and communicate to the other.4. The method enables a firm to choose an investment which yields a quick return on
cash funds.
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5. It enables a firm to determine the period required to recover the originalinvestment with some percentage return and thus arrive at the degree of risk
associated with the investment.
6. The method is quite the simplest of all the techniques used by the industry. Ithelps in selection of those projects whose profits are high enough to reply the
amount invested within a particular number of years.
Disadvantages
1. The time value of money is ignored.2. The rapidity of incoming cash flow is the only measure of desirability3. There is no recognition of cash flow variation. One project may have cash inflow
of Rs. 6000, for the first year, Rs. 8000 for the second year and Rs. 10000 for the
third year. The second project may have cash flow of Rs. 10000 Rs. 8000 and Rs.
6000 for three respectively. If both the projects involved net cash outlays of Rs.
24000, the years paybacks period would yield more cash earlier and may,
therefore, be considered more valuable. This situation is not properly handled
under the payback method.
4. It does not indicate how to maximize value and ignores the relative profitability ofthe project.
5. It over emphasizes liquidity and ignores capital wastage and the wastage and theeconomic life of an asset.
6. It is only a rule of thumb method. It is often difficult to judge objectivelywhether one proposed project is superior to another and, if so, by how much.
7. It may choose highly risks project.
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1.Depreciation
Type % of depreciation
Telecommunication Equipments 15.83Electronic Items 11.31
Heavy Earth Moving Machineries(HEMMs) 41.28
Side Dump Loader (SDL) 19.00
Load Haul Dumper(LHD) 15.83
0.00
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
As on 1.4.2010
As on 1.4.2010
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Balancesheet
Particulars As on 1.4.2010
A. Fixed AssetsLand Freehold 19,151.83
Land Leasehold 2,594.67
Building 58,828.98
Plant & Machinery 257,299.42
Office Equipment 4,236.66
Railway Sidding 3,001.30Vehicles 5,050.20
15.83
11.31
41.28
19.00
15.83Telecommunication Eqipments
Electronic Items
Heavy Earth Moving
Machineries(HEMMs)
Side Dump Loader (SDL)
Load Haul Dumper(LHD)
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Particulars
Additions
during
the year
Deductions
&
Adjustments
A. Fixed AssetsLand Freehold 837.86 12,406.18
Land Leasehold 545.14 -12,406.18
Building 1,358.74 49.33
Plant & Machinery 15,982.94 5,391.98
Office Equipment 101.43 0.47
Railway Sidding 0 0.00
-15000
-10000
-5000
0
5000
10000
15000
20000
Additions during the year
Deductions & Adjustments
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Vehicles 10.65 70.01
Particulars
Total as on
31/03/2011
A. Fixed
AssetsLand Freehold 7,583.51
0.00
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
7,583.5115,545.99
60,138.39
267,890.38
4,337.62 3,001.30 4
Fixed Assets
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Land Leasehold 15,545.99Building 60,138.39
Plant & Machinery 267,890.38
Office Equipment 4,337.62
Railway Sidding 3,001.30
Vehicles 4,990.84
Particulars As on 1.4.2010
B.DevelopmentProspecting & Boring 7,359.83
0.00
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
350,000.00
400,000.00450,000.00
Prospecting &
Boring
Expenditure Nationaliasation Total
Development
Development
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Particulars
Additions
during the
year
Deductions &
Adjustments
B.DevelopmentProspecting & Boring 129.86 0
Expenditure 2,274.71 -0.24
Nationaliasation 0 0
Total 21,241.33 5,511.55
Particulars Total as on 31/03/2011
B.DevelopmentProspecting & Boring 7,489.69
Expenditure 57,572.98
Nationaliasation 906.56
Total 429,457.26
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Particulars
As on
1.4.2010
Additions
during
the year
Deductions
&
Adjustments
Total as on
31/03/2011
A. Fixed Assets
B.DevelopmentPREVIOUS YEAR(2009) 398,699.46 21,793.35 6,765.33 413,727.48
0.00
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
350,000.00
400,000.00
450,000.00
Prospecting &
Boring
Expenditure Nationaliasation Total
7,489.69
57,572.98
906.56
429,457.26
B.Development
B.Development
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050000
100000
150000
200000
250000
300000
350000
400000
450000 398,699.46
21,793.35
6,765.33
413,727.48
PREVIOUS YEAR(2009)
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A Fixed Assets & B.Development
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B.Capital Work In Progress(As On 1/4/2010)
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
As on 1.4.2010
Additions during the year
Deductions & Adjustments
Total as on 31/03/2011
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0
5000
10000
15000
2000025000
30000
As On 1/4/2010
As On 1/4/2010
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B.Capital Work In Progress(Additions During the year)
0
2000
4000
6000
8000
10000
12000
14000 Additions during the year
Additions
during the year
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B.Capital Work In Progress(Deductions & Adjustments)
-5000
500
1000
1500
2000
2500
3000
3500
4000
4500
Deductions & Adjustments
Deductions
&
Adjustmen
ts
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B.Capital Work In Progress
0
5000
10000
15000
20000
25000
30000
35000
Total as on 31/03/2011
Total as on 31/03/2011
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Profit After Prior Period Adjustments
0
200
400
600
800
1000
1200
2006-07 2007-08 2008-09 2009-10 2010-11
PAT
PAT
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EVALUATION OF CAPITAL BUDGETING
8.1 CAPITAL BUDGETING PRACTICES IN WCL:
The long term investment decisions are in two categories:
With respect to capital expenditure With respect to project selection.
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CAPITAL EXPENDITURE:
A capital budget or expenditure is the estimated amount required by the various
department, project, and workshop, central and headquarters itself, for the purpose of
utilizing the amount against the expenditure which are estimated in advance and are of
capital expenditure in nature.
Capital budget or expenditure is controlled by the ministry of coal, where the
proposed capital is sent for approval by the ministry. Based on the budgeted figure,
capital expenditure is made.
In WCL CAPITAL BUDGET is prepared which is a manual comprising of area
wise projected Capital Expenditure, prepared firstly at area (LOCAL) level by the GM
and AGM of concerned area then is sent to head quarters at project and planning
department where these expected Capital Budget are compiled by the concerned officials
in the same department.
Once the Capital Budget is complied & finalized, it is then issued as area book
showing area wise estimated capital expenditure for each month. Our basis of these
projected budgets, the monthly Statement of Capital Outlay and expenditure of that
respectively month along with comparing it with the budgeted expenditure.
Regarding the payment of this Capital Expenditure, this is mainly done in two levels
or basis:
1. At Area Level:
Area wise payment is done by the remittance received by the Center or
Headquarter. The payments are made on the basis of release of funds from the
headquarters as per the estimated and sanctions made thereof:
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2. At Central or Headquarters Level:
The payment is directly made from center headquarters for the HEMM.
The Capital Budget depends either on project report or approved scheme. Thetotal project evaluation is done by the CMPDI subsidiary company of the CIL,
holding company of CLL. CMPDI prepares the detailed project report and send it
to the CCL for approval after giving several presentations on some important
feasibility aspects. WCLs board of directors can approve the project up to 500
crore and for projects costing more than 500 crore, the respected project has to be
approved by the ministry of coal.
As stated earlier, the capital expenditure statement are prepared at regional
level and also at central level where based on the capital budget the estimated and
actual are compared and percentage achievement are shown in the statement
itself.
PROCEDURE FOR STARTING NEW PROJECT:
Starting a new project (mine) involved complex and elaborate procedure. These
can be listed as below.
1. The area is earmarked and called as a Block. For e.g. Magadh. Then thearea is drilled and coal reserve is proved. Geological Survey is done and raw data
is made a available: Moisture, quality, etc.
2. Next step is to prepare a Draft Project Report which is done by Central MinePlanning and Design Institute (CMPDI) LTD. The draft report is thensubmitted to WCL headquarters, project & planning Department (P&P).
Presentations are then given by CMPDI to the Head of Department (HOD) of all
departments Excavation, Mining, Finance, etc. As per suggestion, changes and
amendment are made to the draft PR.
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3. Empower Sub Committee (ESC) is prepared. It mostly consists of FunctionalDirectors (FDs) and Independent Directors. Presentation are made to them
suggestion (if any) incorporated.
4. The Draft PR is then sent to Board of Directors for approval (Up TO 500 crs).Up to 500 crores : Approval by BOD, WCL
500 crs.1000 crs. : Approval by CIL
Above 1000 crs. : Approval by Ministry of Coal (MOC)
5. The DPR is then sent to ESC in Ministry of Coal for approval.
6. DRP is now sent to Public Investment Board (PIB) and the Draft PIB Note isprepared. The Secretary Expenditure again analyses the project and thereafter
recommends the project for approval (if any).
7. Cabinet Committee on Economics Affairs (CCEA) the evaluate the project ADraft CCEF note is prepared.
8. The final stage is Approval of Project with / without condition (subject to ForestryClearance). Zero Date of project if fixed.
PARALLEL ACTIVITY: ADVANCED ACTION
Advanced action consists of activities which are carried side by side while project is
being studied and evaluated for approval. These activities include.
I. Land AcquisitionII. Forestry Clearance
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1. Principally agree with / without condition. Net present value of the land is calculated and the payment is
made.
2. Final release of the land.
III. EMP CLEARENCE
Environment Management Plan (EMP) is applied one month before the final
release of the land by forest department.
It analysis the effect of the project on the following aspects environment and its
degradation.
Air Water Noises Land
1. At this EOR (Form -1) and Term of Reference (TOR) is prepared and submittedto the Ministry of Environment. The ministry analysis the application and then the
project is finalized for approval.
2. Public Herring Minutes are given by the Population control Board. They givethere suggestion on whether there should be any chance or on chance in the
project.
MINUTES
Change
No
change
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Then presentations are given by expert committee mining i.e. EC (M) illustrating the
projects:
Internal rate of return (IRR)It should be at minimum 12%.
Internal and extra budgetary resources (IEBR)Gives the details of sourceof capital Investment i.e. whether the company has surplus money to fund this
project or how the investment could be funded externally through Loans,
Financial Institution etc.
Variance Analysis
CCEA Note (Must)One all the above activities are completed, the project could be started.
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CHAPTERIX
FINDINGS & CONCLUSIONS
9.1 FINDINGS & CONCLUSIONS:-1. WCL is a government organization subsidiary of CIL where the Capital
Expenditure upto 500 cr is approved at the WCL beyond this limit approved at
CCL.
2. It is learnt that the projects are evaluated based on 12% IRR.
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3. Company has 83 working mines. There are of 38 opencast, 43 areundergrounds, 2 are mixed (OP+U/G).
4. The machinery required is mostly HEMM, Draglines, Dumpers and Dozers,Shovels, Drills.
5. Utilization of resources is extremely good at about above 100% based onstandards.
6. Depreciation on assets has been calculated by straight-line method dependingon the life of equipments.
7. The profitability of WCL is improving over a period.
CHAPTERX
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RECOMMENDATIONS
10.1 RECOMMENDATIONS:-
1. There is a burocrasy system. Systems are very slow.
2. There is hierchy and approval takes very long time.
3. The methods of Capital Budgeting may be utilizes in an effective way.
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CHAPTERXI
LIMITATIONS
11.1 LIMITATIONS OF THE STUDY:-
Though the project is completed successfully a few limitations may be there.
1. Coal India ltd. accounts for 90% of the coal production in India. It has
complete monopoly in the coal sector. Therefore, the data used for this study
are confined to CIL and not applicabl e to any other company.
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2. Assumptions have been taken regarding analysis and interpretations of project
due to lack of proper data.
3. Certain data and information given in the research are hypothesized due to
highly confidential of such information.
4. Since the procedure and polices of the company will not allow to disclose
confidential financial information, the project has to be completed with the
available data given to me.
5. The period of study that is 9 weeks is not enough to conduct detailed study of
the project.
6. The study is carried down on base the information and documents provided by
the organization and based on the interaction with the various employees of
the respective departments.
7. Due to the large size of the organization and busy schedule of the staff there
was a little scope for frequent interaction with the guide and concerned
people.
8. Capital Budgeting Methods NPV, IRR, PI, ARR, Payback Period could not be
directly employed in the organization.
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CHAPTER- XII
BIBLIOGRAPHY
12.1 BIBLIOGRAPHY:
A.TEXT BOOK:
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