CMPDI provides total consultancy services to Coal India Limited and its seven subsidiaries. It was established in 1975 as a subsidiary of Coal India Limited. CMPDI has over 700 technical professionals and operates through its headquarters in Ranchi and seven regional institutes located across six states. Its mission is to provide total consultancy in coal and mineral exploration, mining, engineering and allied fields as a leading consultant in India and internationally.
Mba finance-project-report-on-a-competitive-analysis-of-trading-in-reliance-m...Rishi Gupta
This document appears to be a report submitted for a Master's degree program. It includes standard sections like an acknowledgement, preface, executive summary, table of contents, and chapters on the introduction, literature review, research methodology, data analysis and findings, suggestions, and conclusion.
The research aims to analyze stock brokers based on their services, products, growth, and competitiveness. It will study major brokerage firms in the region like Karvy, ICICI Direct, Indiainfoline, HDFC Security, and Indiabulls. The methodology discusses objectives to understand Reliance Money's competitive position and examine customers' preferences and satisfaction levels across brokerages.
- The document is an internship report submitted by Paras Taneja for their B.Tech in Civil Engineering at VIT University.
- Paras Taneja completed their summer internship at DLF Limited's CREST project in Gurgaon, India.
- The report provides details about DLF Limited, the CREST project, Paras' responsibilities and learning experiences in the Quality department, and the overall benefits of the internship.
A turnkey project is a contract where a firm agrees to fully design, construct, equip, and hand over a completed manufacturing or business facility to the purchaser when it is ready for operation, for a flat fee. The contractor is responsible for designing, building, and operating the facility based on the client's specifications. The process involves the contractor issuing a tender, evaluating eligible bidders, executing the project, and delivering a finished project to the client. Payment can be made entirely in cash or through a mix of cash and allowing the contractor to manage the facility for a period of time to earn back part of the fee.
This document is a project report submitted for a Bachelor of Commerce degree in Accounting and Finance from the University of Calcutta. The project analyzes and studies mutual funds in India. It includes an acknowledgements section thanking those who supported and guided the project. The objectives are to analyze returns of selected mutual funds, understand asset management company functions and performance measurement tools, and compare performances of selected mutual fund schemes.
A comparative analysis of mutual fund schemes in various banksMaya Singh
This document is a project report submitted by Maya Singh to Rajasthan University in partial fulfillment of the requirements for a Bachelor of Business Administration degree. The report provides a comparative analysis of mutual fund schemes offered by various banks. It includes sections on an introduction to mutual funds, the history of mutual funds in India, advantages of mutual funds, and comparisons of specific mutual fund providers like Reliance and UTI. The overall purpose is to analyze different mutual fund options available through banks in India.
About the housing finances in India. About the national hosing bank and the functions of it. Then about the micro housing finance corporation and the types of loans, housing and its development. Discussion on the urban infrastructure.
This document is a project report submitted by Harshita Bansal to fulfill the requirements of a Bachelor of Business Administration degree. The report analyzes online trading and stock markets with reference to Sharekhan. It includes an introduction to stock markets and online trading, the objectives of the research, the methodology used, and planned chapters on the company profile, data analysis and interpretation, and conclusions and recommendations. The document is certified by the project supervisors and includes an acknowledgment of their guidance.
The document discusses share buybacks by companies. It defines a share buyback as a company repurchasing its own outstanding shares to reduce the number on the market. This can increase the value of remaining shares or eliminate threats from shareholders seeking control. The document outlines the objectives, conditions, sources of funding, procedures, and penalties for buybacks under Indian law. It notes buybacks can enable faster achievement of capital structure goals but may also signal mismanagement if overpaid for or cash is excessively eroded.
Mba finance-project-report-on-a-competitive-analysis-of-trading-in-reliance-m...Rishi Gupta
This document appears to be a report submitted for a Master's degree program. It includes standard sections like an acknowledgement, preface, executive summary, table of contents, and chapters on the introduction, literature review, research methodology, data analysis and findings, suggestions, and conclusion.
The research aims to analyze stock brokers based on their services, products, growth, and competitiveness. It will study major brokerage firms in the region like Karvy, ICICI Direct, Indiainfoline, HDFC Security, and Indiabulls. The methodology discusses objectives to understand Reliance Money's competitive position and examine customers' preferences and satisfaction levels across brokerages.
- The document is an internship report submitted by Paras Taneja for their B.Tech in Civil Engineering at VIT University.
- Paras Taneja completed their summer internship at DLF Limited's CREST project in Gurgaon, India.
- The report provides details about DLF Limited, the CREST project, Paras' responsibilities and learning experiences in the Quality department, and the overall benefits of the internship.
A turnkey project is a contract where a firm agrees to fully design, construct, equip, and hand over a completed manufacturing or business facility to the purchaser when it is ready for operation, for a flat fee. The contractor is responsible for designing, building, and operating the facility based on the client's specifications. The process involves the contractor issuing a tender, evaluating eligible bidders, executing the project, and delivering a finished project to the client. Payment can be made entirely in cash or through a mix of cash and allowing the contractor to manage the facility for a period of time to earn back part of the fee.
This document is a project report submitted for a Bachelor of Commerce degree in Accounting and Finance from the University of Calcutta. The project analyzes and studies mutual funds in India. It includes an acknowledgements section thanking those who supported and guided the project. The objectives are to analyze returns of selected mutual funds, understand asset management company functions and performance measurement tools, and compare performances of selected mutual fund schemes.
A comparative analysis of mutual fund schemes in various banksMaya Singh
This document is a project report submitted by Maya Singh to Rajasthan University in partial fulfillment of the requirements for a Bachelor of Business Administration degree. The report provides a comparative analysis of mutual fund schemes offered by various banks. It includes sections on an introduction to mutual funds, the history of mutual funds in India, advantages of mutual funds, and comparisons of specific mutual fund providers like Reliance and UTI. The overall purpose is to analyze different mutual fund options available through banks in India.
About the housing finances in India. About the national hosing bank and the functions of it. Then about the micro housing finance corporation and the types of loans, housing and its development. Discussion on the urban infrastructure.
This document is a project report submitted by Harshita Bansal to fulfill the requirements of a Bachelor of Business Administration degree. The report analyzes online trading and stock markets with reference to Sharekhan. It includes an introduction to stock markets and online trading, the objectives of the research, the methodology used, and planned chapters on the company profile, data analysis and interpretation, and conclusions and recommendations. The document is certified by the project supervisors and includes an acknowledgment of their guidance.
The document discusses share buybacks by companies. It defines a share buyback as a company repurchasing its own outstanding shares to reduce the number on the market. This can increase the value of remaining shares or eliminate threats from shareholders seeking control. The document outlines the objectives, conditions, sources of funding, procedures, and penalties for buybacks under Indian law. It notes buybacks can enable faster achievement of capital structure goals but may also signal mismanagement if overpaid for or cash is excessively eroded.
The document provides an overview of mutual funds in India. It discusses the history and evolution of mutual funds in India in four phases: (1) 1964-1987 with the establishment of UTI as the sole player; (2) 1987-1993 saw the entry of public sector funds; (3) 1993-2003 was marked by the entry of private sector funds giving more choice to investors; (4) post-2003 period saw significant growth in the sector. It defines mutual funds, describes the types of mutual funds including open-ended funds, and highlights some key regulations governing mutual funds in India.
The document is a project report submitted by Nikunj B. Shende to Rashtrasant Tukadoji Maharaj Nagpur University in partial fulfillment of the requirements for a Master of Business Administration degree. The report examines the top five tax saving schemes in mutual funds in India from 2008-2012. It includes an introduction to the topic of tax planning and mutual funds, the growth and organization of the mutual fund industry in India, and objectives, scope, and limitations of the study. Methodology, data analysis, findings, and recommendations are also discussed.
Performance evaluation risk and return of mutual funds @ uti secureties pro...Babasab Patil
The document discusses a study on evaluating the performance of mutual funds with reference to risk and return. It contains an executive summary, introduction, literature review, objectives of the study, and limitations. The objectives are to evaluate the returns and associated risks of mutual funds, compare the performance of mutual funds from different companies, and evaluate mutual fund investment performance using risk-adjusted theoretical metrics. The study methodology uses secondary data from reports by UTI Securities and other websites.
This document provides a summary of key information related to evictions and tenancy rights in India:
- It defines who constitutes a landlord and tenant under Indian law.
- It outlines common reasons for evictions such as non-payment of rent, subletting, property damage, and landlord requiring the property for self-use.
- It summarizes the rights of both landlords and tenants under Indian tenancy laws, including a landlord's right to evict tenants and increase rent, as well as a tenant's right to safe and habitable housing.
- It discusses the concept of subletting in India and key court rulings, stating that subletting without permission is generally grounds
National Stock Exchange Vs Bombay Stock Exchange A Comparative Analysisijtsrd
India currently has two major stock exchanges. The Bombay Stock Exchange and National Stock Exchange, There are important differences in ownership structure, geographic reach, internal control systems and institutionalised risk management facilities between the Bombay Stock Exchange and the National Stock Exchange. The purpose of this study is to examine if these significant structural differences between these stock exchanges contribute to variations in observed measures of quality of markets. We use a paired comparison approach and document significant differences in liquidity and index price volatility between the two markets. The time period has been used in this study. P. Venkatesan "National Stock Exchange Vs Bombay Stock Exchange: A Comparative Analysis" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-1 , December 2018, URL: http://www.ijtsrd.com/papers/ijtsrd19030.pdf Direct URL: http://www.ijtsrd.com/economics/commerce/19030/national-stock-exchange-vs-bombay-stock-exchange-a-comparative-analysis/p-venkatesan
A study on investors’ awareness level on mutual fund & promotion of sip planProjects Kart
Here are the key tables from the document:
Table 2.1 - Shows total net asset in U.S. Dollars for mutual funds globally from 1980 to 2018.
Table 2.4 - Provides the latest AUM (assets under management) and ranking for top mutual funds in India.
Table 3.1 - Provides a snapshot of different types of mutual fund schemes.
Table 3.2 - Outlines the tax rules for mutual fund investors in India.
Table 3.3 - Defines the statistical measure R-squared.
Table 3.4 - Shows the returns that can be generated through SIP (Systematic Investment Plan) over different time periods.
Table 3.5 - Describ
The document summarizes the role and functions of the Securities and Exchange Board of India (SEBI). It states that SEBI was established in 1988 as the regulator of India's securities market, with its headquarters in Mumbai. SEBI's key responsibilities include protecting investors, promoting market development, and regulating securities markets. It has powers to regulate stock exchanges and other market participants like brokers. SEBI is divided into departments that oversee the primary market, intermediaries, and secondary market. The document also provides brief definitions of related terms like shares, equity shares, bonds, derivatives, debentures, and preference shares.
Portfolio evaluation and investment decision finance reportStudent
This document is a project report submitted by Chirag Mehta to the Aditya Institute of Management Studies and Research in partial fulfillment of an MMS degree. The report focuses on portfolio evaluation and investment decisions. It includes an abstract, table of contents, introduction, literature review, analysis, findings, and conclusion. The project was conducted under the guidance of Professor Srinjay Sengupta and aims to help investors identify effective portfolios and understand the role of securities in investment decisions.
This document contains a questionnaire about investors' preferences for investing in mutual funds. It asks about the types of investments preferred, factors considered while investing, experience investing in mutual funds including scheme details, features that attract investors to mutual funds, preferred mutual fund companies and sectors, and personal details. The questionnaire contains both multiple choice and open-ended questions to understand investors' knowledge of and experience with mutual funds.
A Comparative Study of Equity Mutual Funds between Reliance and Birla SunLifePriyank Agarwal
This project is based on the comparative analysis of the Indian Mutual Fund companies Reliance and Birla Sun Life, respectively. There are a lot of investment avenues available today in the financial market for an investor with an investable surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds where there is low risk but low return. He may invest in Stock of companies where the risk is high and the returns are also proportionately high. The recent trends in the Stock Market have shown that an average retail investor always lost with periodic bearish tends. People began opting for portfolio managers with expertise in stock markets who would invest on their behalf. Thus we had wealth management services provided by many institutions. However they proved too costly for a small investor. These investors have found a good shelter with the mutual funds.
The report encapsulates the study of a proper understanding of SEBI and its regulations which are actually practiced in the market. Along with a thorough study of the basic concepts of SEBI and its policies with respect to the Capital Markets, the report also enlightens on a few cases which made a considerable impact on the governance of SEBI.
This document is a project report submitted to Marwadi Education Foundation's Group of Institutions in partial fulfillment of an MBA degree. The report examines investor awareness and perception of Reliance Mutual Fund, specifically regarding SIP and STP plans. It includes an introduction to mutual funds and Reliance Mutual Fund, a literature review, research objectives and methodology, findings from surveys conducted, and recommendations. The report was submitted by Zinkal M Sheta and guided by faculty members Pratik Joshi and Mohit Arora.
This document discusses the various intermediaries involved in the new issue market for securities. It describes the roles of merchant bankers/lead managers, underwriters, bankers to the issue, registrars to the issue, debenture trustees, and brokers. Merchant bankers manage public issues and ensure regulatory compliance. Underwriters guarantee that unsold shares will be purchased. Bankers to the issue accept application money. Registrars design application forms and manage allotment. Debenture trustees safeguard debenture holders' interests. Brokers procure subscriptions from investors. Each intermediary plays an important but distinct role in facilitating the issuance of new securities.
This document provides information about a project report submitted by Hardeep Singh Hundal to Karnataka University, Dharwad on "A Study of Derivatives Market in India". It includes a certificate from the director of Global Business School certifying the project work was completed at Hindustan Financial Services from April to June 2012 under the guidance of Dr. Ramakant Kulkarni and Mr. Shankar Habib. It also includes a declaration by Hardeep Singh Hundal and an acknowledgement of those who provided guidance and support. The executive summary provides an overview of the project work analyzing investor behavior and understanding derivatives markets in India.
This document provides an overview of dishonour of cheques under Indian law. It defines dishonour of a cheque as when it is returned unpaid by the drawee bank for reasons of insufficient funds or signature mismatch. There are two kinds of dishonour: non-acceptance and non-payment. Dishonour can result in legal action against the drawer, loss of negotiability of the cheque, and accrual of a cause of action if a demand notice is issued and unpaid. Dishonour becomes a criminal offense if the payee gives notice demanding payment within 15 days and payment is not made within a further 15 days. Liability on dishonour can be civil, resulting in a fine of twice the
DCPR 2034 - Changing Landscape of Mumbai Real EstateHiralDesai15
DCPR 2034 has far-reaching implication on the Mumbai's growth.The new policy has cleared a lot of ambiguity related to construction and redevelopment activities.This progressive step by the government is an indication of promising growth of real estate sector which is expected to contribute 11% of the GDP of India by 2020.
A project report on awareness regarding mutual fund with special reference to...Projects Kart
The document is a summer project report submitted as part of an MBA program. It provides an overview of a summer internship project conducted at India Infoline Ltd, a leading mutual fund company in India. The report includes sections on the history and organizational structure of India Infoline, an overview of mutual funds and the Indian mutual fund industry, research methodology used in the project, findings from data analysis, and conclusions and recommendations. The executive summary highlights that India Infoline is a financial services group offering a wide range of products including mutual funds, insurance, trading, and investment banking through various subsidiaries.
The document discusses various methods for companies to issue securities to the public, including initial public offerings (IPOs) and seasoned equity offerings. It provides details on the registration process with the SEC for public offerings. Alternative private placement methods are also covered, such as private equity investments from venture capital firms and angel investors.
SEBI-Securities and Exchange Board of IndiaKULDEEP MATHUR
The Securities and Exchange Board of India (SEBI) was established in 1988 as a non-statutory body and was given statutory powers through the SEBI Act of 1992 to regulate and develop the securities market in India. SEBI's objectives are to protect investors, regulate stock exchanges and other market intermediaries, and prohibit fraudulent and unfair trade practices. It performs regulatory, developmental, and capital market functions through various departments and committees to achieve its goals.
The document discusses the findings of a survey on capital budgeting and capital structure decisions conducted by finance experts. Some key findings:
1) Most companies use discounted cash flow and net present value techniques for capital budgeting decisions, consistent with academic theory.
2) However, for capital structure decisions, companies rely more on informal rules of thumb rather than trying to minimize the weighted average cost of capital.
3) Firm size significantly impacts practices, with large firms more likely to use net present value and small firms relying more on simple payback period.
Capital budgeting refers to the process of evaluating investment projects and determining whether they should be accepted or rejected. There are traditional and discounted cash flow methods for evaluating projects. Traditional methods include payback period and accounting rate of return, which do not consider the time value of money. Discounted cash flow methods like net present value (NPV) and internal rate of return (IRR) discount future cash flows to determine if a project will provide sufficient returns. The capital budgeting process involves project generation, evaluation using techniques like NPV or IRR, and selection of projects that meet acceptance criteria.
The document provides an overview of mutual funds in India. It discusses the history and evolution of mutual funds in India in four phases: (1) 1964-1987 with the establishment of UTI as the sole player; (2) 1987-1993 saw the entry of public sector funds; (3) 1993-2003 was marked by the entry of private sector funds giving more choice to investors; (4) post-2003 period saw significant growth in the sector. It defines mutual funds, describes the types of mutual funds including open-ended funds, and highlights some key regulations governing mutual funds in India.
The document is a project report submitted by Nikunj B. Shende to Rashtrasant Tukadoji Maharaj Nagpur University in partial fulfillment of the requirements for a Master of Business Administration degree. The report examines the top five tax saving schemes in mutual funds in India from 2008-2012. It includes an introduction to the topic of tax planning and mutual funds, the growth and organization of the mutual fund industry in India, and objectives, scope, and limitations of the study. Methodology, data analysis, findings, and recommendations are also discussed.
Performance evaluation risk and return of mutual funds @ uti secureties pro...Babasab Patil
The document discusses a study on evaluating the performance of mutual funds with reference to risk and return. It contains an executive summary, introduction, literature review, objectives of the study, and limitations. The objectives are to evaluate the returns and associated risks of mutual funds, compare the performance of mutual funds from different companies, and evaluate mutual fund investment performance using risk-adjusted theoretical metrics. The study methodology uses secondary data from reports by UTI Securities and other websites.
This document provides a summary of key information related to evictions and tenancy rights in India:
- It defines who constitutes a landlord and tenant under Indian law.
- It outlines common reasons for evictions such as non-payment of rent, subletting, property damage, and landlord requiring the property for self-use.
- It summarizes the rights of both landlords and tenants under Indian tenancy laws, including a landlord's right to evict tenants and increase rent, as well as a tenant's right to safe and habitable housing.
- It discusses the concept of subletting in India and key court rulings, stating that subletting without permission is generally grounds
National Stock Exchange Vs Bombay Stock Exchange A Comparative Analysisijtsrd
India currently has two major stock exchanges. The Bombay Stock Exchange and National Stock Exchange, There are important differences in ownership structure, geographic reach, internal control systems and institutionalised risk management facilities between the Bombay Stock Exchange and the National Stock Exchange. The purpose of this study is to examine if these significant structural differences between these stock exchanges contribute to variations in observed measures of quality of markets. We use a paired comparison approach and document significant differences in liquidity and index price volatility between the two markets. The time period has been used in this study. P. Venkatesan "National Stock Exchange Vs Bombay Stock Exchange: A Comparative Analysis" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-1 , December 2018, URL: http://www.ijtsrd.com/papers/ijtsrd19030.pdf Direct URL: http://www.ijtsrd.com/economics/commerce/19030/national-stock-exchange-vs-bombay-stock-exchange-a-comparative-analysis/p-venkatesan
A study on investors’ awareness level on mutual fund & promotion of sip planProjects Kart
Here are the key tables from the document:
Table 2.1 - Shows total net asset in U.S. Dollars for mutual funds globally from 1980 to 2018.
Table 2.4 - Provides the latest AUM (assets under management) and ranking for top mutual funds in India.
Table 3.1 - Provides a snapshot of different types of mutual fund schemes.
Table 3.2 - Outlines the tax rules for mutual fund investors in India.
Table 3.3 - Defines the statistical measure R-squared.
Table 3.4 - Shows the returns that can be generated through SIP (Systematic Investment Plan) over different time periods.
Table 3.5 - Describ
The document summarizes the role and functions of the Securities and Exchange Board of India (SEBI). It states that SEBI was established in 1988 as the regulator of India's securities market, with its headquarters in Mumbai. SEBI's key responsibilities include protecting investors, promoting market development, and regulating securities markets. It has powers to regulate stock exchanges and other market participants like brokers. SEBI is divided into departments that oversee the primary market, intermediaries, and secondary market. The document also provides brief definitions of related terms like shares, equity shares, bonds, derivatives, debentures, and preference shares.
Portfolio evaluation and investment decision finance reportStudent
This document is a project report submitted by Chirag Mehta to the Aditya Institute of Management Studies and Research in partial fulfillment of an MMS degree. The report focuses on portfolio evaluation and investment decisions. It includes an abstract, table of contents, introduction, literature review, analysis, findings, and conclusion. The project was conducted under the guidance of Professor Srinjay Sengupta and aims to help investors identify effective portfolios and understand the role of securities in investment decisions.
This document contains a questionnaire about investors' preferences for investing in mutual funds. It asks about the types of investments preferred, factors considered while investing, experience investing in mutual funds including scheme details, features that attract investors to mutual funds, preferred mutual fund companies and sectors, and personal details. The questionnaire contains both multiple choice and open-ended questions to understand investors' knowledge of and experience with mutual funds.
A Comparative Study of Equity Mutual Funds between Reliance and Birla SunLifePriyank Agarwal
This project is based on the comparative analysis of the Indian Mutual Fund companies Reliance and Birla Sun Life, respectively. There are a lot of investment avenues available today in the financial market for an investor with an investable surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds where there is low risk but low return. He may invest in Stock of companies where the risk is high and the returns are also proportionately high. The recent trends in the Stock Market have shown that an average retail investor always lost with periodic bearish tends. People began opting for portfolio managers with expertise in stock markets who would invest on their behalf. Thus we had wealth management services provided by many institutions. However they proved too costly for a small investor. These investors have found a good shelter with the mutual funds.
The report encapsulates the study of a proper understanding of SEBI and its regulations which are actually practiced in the market. Along with a thorough study of the basic concepts of SEBI and its policies with respect to the Capital Markets, the report also enlightens on a few cases which made a considerable impact on the governance of SEBI.
This document is a project report submitted to Marwadi Education Foundation's Group of Institutions in partial fulfillment of an MBA degree. The report examines investor awareness and perception of Reliance Mutual Fund, specifically regarding SIP and STP plans. It includes an introduction to mutual funds and Reliance Mutual Fund, a literature review, research objectives and methodology, findings from surveys conducted, and recommendations. The report was submitted by Zinkal M Sheta and guided by faculty members Pratik Joshi and Mohit Arora.
This document discusses the various intermediaries involved in the new issue market for securities. It describes the roles of merchant bankers/lead managers, underwriters, bankers to the issue, registrars to the issue, debenture trustees, and brokers. Merchant bankers manage public issues and ensure regulatory compliance. Underwriters guarantee that unsold shares will be purchased. Bankers to the issue accept application money. Registrars design application forms and manage allotment. Debenture trustees safeguard debenture holders' interests. Brokers procure subscriptions from investors. Each intermediary plays an important but distinct role in facilitating the issuance of new securities.
This document provides information about a project report submitted by Hardeep Singh Hundal to Karnataka University, Dharwad on "A Study of Derivatives Market in India". It includes a certificate from the director of Global Business School certifying the project work was completed at Hindustan Financial Services from April to June 2012 under the guidance of Dr. Ramakant Kulkarni and Mr. Shankar Habib. It also includes a declaration by Hardeep Singh Hundal and an acknowledgement of those who provided guidance and support. The executive summary provides an overview of the project work analyzing investor behavior and understanding derivatives markets in India.
This document provides an overview of dishonour of cheques under Indian law. It defines dishonour of a cheque as when it is returned unpaid by the drawee bank for reasons of insufficient funds or signature mismatch. There are two kinds of dishonour: non-acceptance and non-payment. Dishonour can result in legal action against the drawer, loss of negotiability of the cheque, and accrual of a cause of action if a demand notice is issued and unpaid. Dishonour becomes a criminal offense if the payee gives notice demanding payment within 15 days and payment is not made within a further 15 days. Liability on dishonour can be civil, resulting in a fine of twice the
DCPR 2034 - Changing Landscape of Mumbai Real EstateHiralDesai15
DCPR 2034 has far-reaching implication on the Mumbai's growth.The new policy has cleared a lot of ambiguity related to construction and redevelopment activities.This progressive step by the government is an indication of promising growth of real estate sector which is expected to contribute 11% of the GDP of India by 2020.
A project report on awareness regarding mutual fund with special reference to...Projects Kart
The document is a summer project report submitted as part of an MBA program. It provides an overview of a summer internship project conducted at India Infoline Ltd, a leading mutual fund company in India. The report includes sections on the history and organizational structure of India Infoline, an overview of mutual funds and the Indian mutual fund industry, research methodology used in the project, findings from data analysis, and conclusions and recommendations. The executive summary highlights that India Infoline is a financial services group offering a wide range of products including mutual funds, insurance, trading, and investment banking through various subsidiaries.
The document discusses various methods for companies to issue securities to the public, including initial public offerings (IPOs) and seasoned equity offerings. It provides details on the registration process with the SEC for public offerings. Alternative private placement methods are also covered, such as private equity investments from venture capital firms and angel investors.
SEBI-Securities and Exchange Board of IndiaKULDEEP MATHUR
The Securities and Exchange Board of India (SEBI) was established in 1988 as a non-statutory body and was given statutory powers through the SEBI Act of 1992 to regulate and develop the securities market in India. SEBI's objectives are to protect investors, regulate stock exchanges and other market intermediaries, and prohibit fraudulent and unfair trade practices. It performs regulatory, developmental, and capital market functions through various departments and committees to achieve its goals.
The document discusses the findings of a survey on capital budgeting and capital structure decisions conducted by finance experts. Some key findings:
1) Most companies use discounted cash flow and net present value techniques for capital budgeting decisions, consistent with academic theory.
2) However, for capital structure decisions, companies rely more on informal rules of thumb rather than trying to minimize the weighted average cost of capital.
3) Firm size significantly impacts practices, with large firms more likely to use net present value and small firms relying more on simple payback period.
Capital budgeting refers to the process of evaluating investment projects and determining whether they should be accepted or rejected. There are traditional and discounted cash flow methods for evaluating projects. Traditional methods include payback period and accounting rate of return, which do not consider the time value of money. Discounted cash flow methods like net present value (NPV) and internal rate of return (IRR) discount future cash flows to determine if a project will provide sufficient returns. The capital budgeting process involves project generation, evaluation using techniques like NPV or IRR, and selection of projects that meet acceptance criteria.
Capital budgeting is the process of evaluating long-term investment projects and determining whether they are worth funding through debt, equity, or retained earnings. It involves estimating future cash flows of potential projects, evaluating them using techniques like net present value, and choosing projects that increase shareholder value and have returns higher than the company's cost of capital. The objectives of capital budgeting include setting investment priorities, purchasing assets that generate positive returns, aligning investments with marketing plans, keeping pace with projected growth, and maintaining an optimal debt level.
This document provides a history of Bajaj Auto Ltd, a major Indian manufacturer of scooters and motorcycles. It discusses how the company was founded in 1945 and began producing scooters under license from Piaggio of Italy in 1960. Over the decades, Bajaj Auto introduced many new models and saw significant growth, becoming one of the largest two-wheeler manufacturers in the world by the 1990s. However, it also faced increasing competition from other Indian and international brands. The document outlines some of Bajaj Auto's strategic investments and partnerships over the years to develop new technologies and models to remain competitive in the market.
The document discusses capital budgeting, which refers to the process of evaluating long-term investment projects. It describes the various techniques used to evaluate capital budgeting proposals, including non-discounting methods like payback period and accounting rate of return, as well as discounted cash flow methods like net present value, internal rate of return, and profitability index. The stages of the capital budgeting process and sources of financing for capital budgeting decisions are also outlined.
Fin 571 guide 1 34) Net present value ( NPV) is the difference between ______...sububhavithra
34) Net present value ( NPV) is the difference between __________.
A. cash flows before taxes and cash flows after taxes
B. what a capital budgeting project produces and what it is worth (its market value)
C. what a capital budgeting project costs and what it is worth (its market value)
D. what a capital budgeting project produces and what it is pays
The document discusses capital budgeting tools used to evaluate investment projects. It describes payback period, accounting rate of return, net present value (NPV), and internal rate of return (IRR). For payback period, it provides the calculation method and notes that it ignores the time value of money. NPV calculates the difference between the present value of cash inflows and outflows. IRR is the discount rate that sets the NPV equal to zero. Examples are provided to demonstrate calculations for each method. Capital budgeting tools help managers select projects that maximize value.
The document discusses various capital budgeting techniques used to evaluate long-term investment projects, including accounting rate of return, payback period, net present value (NPV), internal rate of return (IRR), and profitability index. It provides an example of using these methods to analyze potential expansion projects for a wireless company. While NPV is theoretically the best method, other techniques like IRR are also commonly used, but they may conflict with NPV in some cases due to problems related to project scale and timing.
Capital budgeting ppt@ bec doms on financeBabasab Patil
Capital budgeting involves planning for large long-term expenditures on projects. Projects can be replacements, expansions, or new ventures with increasing risk levels. The key steps are analyzing cash flows, costs of capital, and techniques like payback period, net present value (NPV), and internal rate of return (IRR) to evaluate projects. NPV is preferred over IRR when they conflict. Methods like replacement chain and equivalent annual annuity address unequal project lives in comparisons. Capital may also be rationed with constrained maximization.
The document discusses capital budgeting techniques used to analyze long-term investment projects. It describes traditional methods like payback period, discounted payback period, net present value (NPV), internal rate of return (IRR), and profitability index. These methods help evaluate projects, determine which ones to accept, and ensure optimal allocation of resources. Though NPV is the best measure, each technique provides a different perspective in capital budgeting analysis.
This document provides an overview of capital budgeting. It defines capital budgeting as the planning process used to determine long-term investments worth funding through a firm's capital structure. The document outlines the importance, process, techniques and acceptance criteria for capital budgeting. It describes techniques like payback period, accounting rate of return, net present value and profitability index. The overview emphasizes that capital budgeting decisions require consideration of factors like profitability, risk and cash flows over long time horizons.
The document discusses capital budgeting and methods for evaluating investment projects such as net present value (NPV) and internal rate of return (IRR). It explains that NPV is the best method for choosing between mutually exclusive projects as it accounts for the time value of money and assumes cash flows are reinvested at the opportunity cost of capital. The document also introduces the modified internal rate of return (MIRR) as an alternative to IRR that makes the same reinvestment rate assumption as NPV.
This document summarizes a capital budgeting project proposal for Aasman Ordnance Factory to set up a factory to manufacture bullets. Key details include:
- AOF will supply bullets to the Indian defense forces and private firms for 5 years under a deal with the Ministry of Defense.
- The factory will be set up in Dehradoon and initially manufacture bullets for AK-47, AK-56 and INSAS rifles.
- Capital requirements of INR 50 crores will be met through equity, debentures and bank loans.
- Financial analysis shows the project has an NPV of INR 19.77 crores, IRR of 24% higher than the WACC of 11.75%,
Capital Budgeting is about how one should evaluate the financing options based on the superior financial performance through mathematical techniques. These techniques have been discussed in the presentation in detail.
This document lists 50 potential finance project topics for an MBA in finance degree. The topics cover a wide range of areas including financial analysis of companies, mutual funds, banking, insurance, working capital management, derivatives, and capital markets.
The document provides an overview of business budgeting. It defines key terms like budget, budgeting, and business budgeting. It explains that a budget is a written financial plan for a defined period of time. Budgeting refers to the process of preparing budgets. Business budgeting involves creating budgets specifically for a business.
The document also discusses the characteristics, nature, objectives and limitations of budgets and budgeting. It provides short notes on topics like the characteristics and objectives of budgeting, techniques of budgeting, principles of budgeting, and the advantages and limitations of budgeting. Overall, the document serves as an introduction to the basic concepts and components of business budgeting.
The document is a project report on capital budgeting tools and analysis of capital expenditures at Hindalco Industries Limited. It provides an overview of Hindalco, including its history, leadership, business segments, and financial performance. Hindalco is an industry leader in aluminum and copper and is part of the Aditya Birla Group. The report discusses Hindalco's capital projects, expansion plans, and investment in increasing aluminum production capacity in India. It also mentions Novelis, Hindalco's aluminum rolling subsidiary, and its improved financial results.
This document discusses various capital budgeting techniques for evaluating potential projects, including:
- The payback period method which calculates the time to recover initial costs but does not consider future cash flows or time value of money.
- Discounted cash flow methods like net present value (NPV), internal rate of return (IRR), and profitability index (PI) which discount future cash flows to consider time value.
- The document provides an example of evaluating a potential project for Basket Wonders using the payback period and discounted cash flow methods.
The document discusses capital budgeting decisions and investment evaluation techniques. It covers topics such as discounted cash flow methods like net present value (NPV) and internal rate of return (IRR), as well as non-discounted methods like payback period. The key methods of NPV, IRR, profitability index are explained in detail, including how to calculate them and their acceptance criteria. The advantages and limitations of each method are also reviewed.
Project report on recruitment and selection at cmpdiKumari Pswn
This document provides information about a project report on recruitment and selection at Central Mine Planning and Design Institute (CMPDI) in India. It includes a declaration, certificate of completion, acknowledgements, executive summary, and table of contents. The project report evaluates CMPDI's manpower planning process and recruitment and selection procedures. It contains the student's research findings, conclusions, and recommendations after studying CMPDI's practices from May to June 2014.
Project report on recruitment and selection at cmpdiKumari Hima
CMPDI is a subsidiary of Coal India Limited established in 1975 to provide consultancy services to CIL and its subsidiaries. It operates through its headquarters in Ranchi and 7 regional institutions located across 6 states. CMPDI's functions include geological exploration, mine planning and design, environmental management, management systems consultancy, and human resource development for the mining sector. With over 700 professionals, CMPDI aims to be the leading mineral and mining consultancy organization in India through innovative and effective solutions for project planning, implementation, and management.
Capital Budgeting and Proj Costing at CMPDI.pdfShreetiPrabha
Title: Project Costing Techniques at CMPDI: Capital Budgeting and Decision-Making Analysis
Introduction:
CMPDI, a crucial subsidiary of Coal India Limited, plays a pivotal role in India's mining sector. This project report scrutinizes CMPDI's project costing techniques, particularly its Capital Budgeting tools and Decision-Making methods.
Capital Budgeting Overview:
The report dissects CMPDI's employment of Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period, and Acceptance Rule to assess long-term investment options. Insights into risk assessment and resource allocation are gained through this analysis.
Decision-Making Techniques:
The report explores CMPDI's use of Cost-Benefit Analysis, Sensitivity Analysis, and Scenario Planning in decision-making processes. It highlights the integration of qualitative and quantitative factors, showcasing CMPDI's holistic approach.
Project Acceptance Factors:
Beyond financial viability, environmental impact, regulatory compliance, and socio-economic factors influence project acceptance at CMPDI. Case studies illuminate the complexities inherent in project assessment.
Implications and Recommendations:
Strategic recommendations are proposed to optimize CMPDI's project costing techniques, enhancing operational efficiency and resilience. Continuous learning and adaptation are emphasized to navigate the dynamic mining industry landscape.
Conclusion:
This report provides a comprehensive analysis of CMPDI's project costing techniques, focusing on Capital Budgeting and Decision-Making. By facilitating informed decision-making and operational excellence, it contributes towards CMPDI's mission of sustainable energy resource development in India.
Central Coalfield Limited (CCL) is a coal mining company in India. It is a subsidiary of Coal India Limited, which accounts for over 90% of coal production in India. CCL operates mines in the state of Jharkhand and has a workforce of over 67,000 employees. The study analyzes CCL's organizational structure, functional areas including sales and marketing, finance, and human resources. It also performs a SWOT analysis, noting CCL's large reserves and production but also weaknesses like inferior coal quality and threats from increasing domestic and global competition.
Project Report on Workers' Participation in Management at Central Coalfields ...Roneet Kumar
This document provides background information on Central Coalfields Limited (CCL), one of the subsidiaries of Coal India Limited. It discusses the formation of CCL in 1975 and its targets for coal production. It also describes CCL's administrative setup and organizational structure. The document highlights CCL's role in coal production in India and the history of nationalization of coal mines in the country.
The document provides information about Oil India Limited (OIL), a government-owned oil and gas exploration company in India. It includes OIL's mission, vision, organizational structure, internal control processes, audit committee formation, and internal audit team processes. The official interviewed was Bijoy Banerjee, Chief Manager of Finance and Accounting at OIL, who described his role and responsibilities in accounts payable and financial approval.
Coal India Limited is an Indian state-owned coal mining company headquartered in Kolkata, West Bengal, India. It was formed in 1975 by nationalizing coal mines. Coal India operates through 8 subsidiaries and mines coal in 8 states. It has a total of 471 mines of which 164 are open cast and 275 are underground. Coal India aims to produce and market coal efficiently while protecting the environment. It has over 90% market share in the Indian coal industry. In 2013-14, Coal India achieved a post-tax profit of Rs. 15,111.67 crores. It is involved in various CSR activities related to education, healthcare, infrastructure and disaster relief.
The document provides information about the top 10 public sector undertakings in India based on their market capitalization. It lists the top 10 as: Oil & Natural Gas Corp Ltd, Power Grid Corp of India Ltd, Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd, Coal India Ltd, NTPC Ltd, NMDC Ltd, Steel Authority of India Ltd, Hindustan Petroleum Corp Ltd, and GAIL (India) Ltd. It then provides brief descriptions of each company, including their establishment year, industry, leadership, and ownership status.
Comparative analysis of financial convertedAmar Chauhan
This document provides an overview and analysis of Steel Authority of India Limited (SAIL). It discusses SAIL's profile as India's largest steel producer, with integrated and special steel plants located across India. It outlines SAIL's products, marketing network, research centers, and position in the domestic steel industry. It also presents a SWOT analysis, identifying SAIL's strengths as its diversified product mix, large captive iron ore operations, skilled workforce, and research center, and weaknesses as dependence on imported coking coal and higher-than-average manpower costs. The document serves as the basis for a comparative financial analysis of SAIL against other Indian steel companies.
This document provides an overview of Coal India Limited (CIL), the largest coal mining company in the world. It details that CIL operates mines across India and produces over 80% of the country's coal. CIL's performance is evaluated annually through a Memorandum of Understanding signed with the government of India. The company aims to sustainably meet India's growing energy needs while pursuing corporate social responsibility initiatives in local communities and minimizing environmental impacts. CIL employs over 300,000 people and manages various subsidiaries and training institutes. It aims to continue improving production through investments in mining technology and pursuing coal asset acquisitions abroad to address India's future coal demand-supply gap.
INTRODUCTION of CENTRAL COALFIELD LIMITEDsneh samrani
The document is a project report on working capital management at Central Coalfields Limited (CCL) completed by Sneh Samrani as an intern under the guidance of the finance manager. It includes an introduction to CCL, its history and highlights. The report covers concepts of working capital management including components of current assets and liabilities. It then discusses working capital management specifically at CCL, including cash management, inventory management, and debtors management. It also identifies problems faced by CCL in payments and provides recommendations.
This project report summarizes the history and operations of Indian Oil Corporation Limited (IOCL). IOCL was established in 1964 by merging Indian Refineries and Indian Oil Company to oversee petroleum operations in India. It is now India's largest commercial enterprise and one of the largest petroleum companies in the world, with a network of refineries, pipelines, and fuel stations across India. IOCL's vision is to become a major, diversified, transnational energy company playing a key role in India's oil security and distribution needs.
Capital structure Analysis of Indian Oil Corporation Limited (IOCL)Kangkan Deka
The document discusses the capital structure analysis of Indian Oil Corporation Limited (IOCL). It provides background information on IOCL, describing it as India's largest company by sales. The document outlines IOCL's vision, mission and values. It then discusses the methodology used for the capital structure analysis, which involves analyzing data from IOCL's annual reports. Various components of IOCL's capital structure are examined, including share capital, paid-up capital, long-term debt and leverage ratios.
This document is a summer internship project report submitted by Priyanka Chauhan analyzing the financial health of Hindalco Industries Limited. The report includes sections on the company and industry profiles, SWOT analysis, financial analysis methodology, data analysis and interpretation of Hindalco's financial statements, findings, and recommendations. The project aimed to understand Hindalco's fund management processes and suggest ways to improve fund utilization and operations.
Coal India Limited is India's largest coal mining company. It has over 4 lakh employees and operates through 8 subsidiaries. Coal India provides extensive training through its 26 technical and management training institutes. The largest is the Indian Institute of Coal Management, which conducts residential programs. Coal India also has 102 vocational training centers that provide work-related training. Management training is provided through each subsidiary's management training center. Technical training includes basic, refresher, and specialized courses depending on technology changes. Trainees must serve 50 months after 1-year programs or forfeit their security deposit.
Coal India Limited is India's largest coal mining company. It has over 4 lakh employees and operates through 8 subsidiaries. Coal India provides extensive training to its employees through its 26 technical and management training institutes. Training is conducted at all levels from vocational training centers to the apex Indian Institute of Coal Management. Training aims to develop employees' skills along with the company's growth and occurs through planned interventions, education programs, technical refresher courses, and management development based on level. Trainees must serve 50 months after training or forfeit deposits deducted from salary during the 1-year training period.
Coal India Limited is India's largest coal mining company. It has over 4 lakh employees and operates through 8 subsidiaries. Coal India provides extensive training to its employees through its 26 technical and management training institutes. Training is conducted at all levels from vocational training centers to the apex Indian Institute of Coal Management. Training aims to develop employees' skills in line with Coal India's growth. Management training is imparted based on employee level, and technical training covers basic, refresher, and specialized courses depending on technology changes. Trainees are required to serve 50 months after 1 year of training or refund their security deposit.
This document provides information about an internship report completed by Sunil Kr Ahirwar at Northern Coalfields Limited (NCL) as part of his Bachelor of Business Administration degree. It includes an executive summary of NCL, the objectives and importance of the study, research methodology used including secondary data collection, and outlines of the report contents. The report examines NCL's marketing activities including annual maintenance, customer satisfaction feedback, sales processes, and NCL's contribution to parent company Coal India Limited.
This document discusses capital budgeting and investment analysis processes at Hindalco Industries Limited. It provides an overview of Hindalco, describing its various aluminum and copper production facilities. It then discusses how Hindalco prepares capital budgets and makes investment decisions, including using tools like net present value, internal rate of return, and weighted average cost of capital to analyze capital expenditures. The objective of the study was to understand Hindalco's capital budgeting and investment analysis processes.
This document discusses capital budgeting and investment analysis processes at Hindalco Industries Limited. It provides an overview of Hindalco's business and products, including its aluminum and copper manufacturing operations. The document also outlines the objectives and scope of the author's study project, which was to understand Hindalco's capital budget preparation, investment decision making, and analysis of capital expenditures.
1. PROJECT REPORT ON
CAPITAL BUDGETING TOOLS
AT CMPDI
GUIDED BY:
MR. KINTALI NAVEEN SUBMITTED BY:
HEEMA KUMARI
ROLL NO: CUJ/I/2012/IMBA/11
CENTRAL UNIVERSITY OF JHARKHAND
2. 2
DECLARATION
I hereby declare that this project report prepared in lieu of a compulsory paper for the partial
fulfillment of Integrated Master in business administration is my original work which I have
submitted in Central Mine Planning and Designing Institute to my guide Mr. Kintali Naveen
No part of it has been submitted to any other university or organization.
All the information and data in my project are authentic to the best of my knowledge and taken
from reliable sources.
HEEMA KUMARI
3. 3
CERTIFICATE OF COMPLETION
This is to certify that the project called Capital Budgeting Tool At CMPDI “A case study of
CMPDI” submitted by Heema Kumari for the partial fulfillment of the requirement of the
IMBA, embodies the bonafide work done by her in personal and administration department from
23 December 2014 to 20 January 2015 .
I also declare that this project report is a result of her effort and no part of this research has been
published earlier or been submitted as a project by her for any degree or diploma for any institute
or university.
DATE: SIGNATURE OF MENTOR
4. 4
ACKNOWLEDGEMENT
Project report is not the work of individual. It is more a combination of views, ideas,
suggestions, contribution and work involving many individuals.
I wish to express my deepest gratitude to Central Mine Planning and DesignInstitute’s
management for giving me an opportunity to be the part of their esteem organization and
enhance my knowledge by granting permission to do my training project under their guidance.
I m grateful to Mr. Kintali Naveenmy guide, for her invaluable guidance and cooperation
during the course of the project .She provided me with her assistance and support whenever
needed
Last but not the least I would like to thanks all the internal employees and fellow trainee of
CMPDI for providing consistent encouragement.
The learning from this experience has been immense and would be cherished throughout the life.
HEEMA KUMARI
5. 5
TABLE OF CONTENT
Serial
No.
Topic
Page no
1. Coal India: a view inside 6
2 Central Mine Planning And Design
Institute: a view inside
10
3 Capital Budgeting 19
4 Performance at a glance of CMPDI 35
5. Financial overview of CMPDI 36
6. Conclusion 44
7. Suggestions and recommendations 45
8. Bibliography 46
6. 6
INTRODUCTION TO COAL INDIA LIMITED
Coal India Limited (CIL) as an organized state owned coal mining corporate came into being in
November 1975 with the government taking over private coal mine .With the government
undertaking over private coal mines. Head office of Coal India is located at Kolkata . With the
modest production of 79 million tons at the year of its inspection CIL today is the single largest
producer in the world . operating through 81 mining areas CIL is an apex body with 7 wholly
owned coal producing subsidiaries and 1 mine planning and consultancy company spread over 8
provincial states of India .CIL also fully owns a mining company in Mozambique christened as
‘coal India Africana limited’. CIL also manages 200 other establishment like workshop, hospitals
etc. Further it also owns 26 technical and management training institutes and 102 Vocational
Training Institute Centre .Indian Institute of Coal Management (IICM) as a state-of-the-art
Management Training ‘Centre of Excellence’ –the largest corporate Training Institute in India –
operates under CIL and conducts multi disciplinary management development programs.
CIL having fulfilled the financial and other prerequisites was granted the Maharatna recognition
in April 2011 .it is privileged status conferred by government of India to select state owned
enterprises in order to empower them to expand their operation and emerge as global giants. So
far ,the select club has only five members out of 217 Central Public Sector Enterprises in the
country .
SUBSIDIARIES COMPANIES
Central Coalfields Limited(CCL), Ranchi, Jharkhand(1975)
Bharat Coking Coal Limited(BCCL), Dhanbad, Jharkhand(1975)
Eastern Coalfields Limited(ECL),Sanatoria, West Bengal (1975)
South Eastern Coalfields Limited(SECL), Bilaspur , Chhattisgarh
Western Coalfields Limited(WCL), Nagpur, Maharashtra(1975)
Mahanadi Coalfields Limited(MCL), Sambalpur ,Orissa(1992)
Northern Coalfields Limited(NCL), Singrauli, Madhya Pradesh
Coal India Africana Limitda, Mozambique
7. 7
The consultancy company is Central Mine Planning and Design Institude Limited
(CMPDIL), Ranchi , Jharkhand
FUNCTIONS OF CIL
Pricing and distribution of coal
Coal supply agreement
Negotiation of wages
Mobilization of resources
Accounting policies
9. 9
SWOT ANALYSIS
Strength:
World’s largest producer of mica; third largest producer of coal and lignite and barites;
ranks among the top producers of iron ore, bauxite, manganese ore and aluminum.
Labors easily available
Large quantity of high quality reserves
Weakness:
Coal mining in India is associated with poor employee productivity
The output per annum in India varies from 150 to 2,650 tons compared to an average of
around 12,000 tons in the U.S And Australia.
Historically, opencast mining has been favored over underground mining. This has led to
land degradation, environmental pollution and reduced quality of coal as it tends to get
mixed with other matter.
Opportunities:
Potential areas for exploration ventures include gold, diamond, copper, lead, zinc, nickel,
cobalt, lithium, tin, tungsten, silver, platinum group of metals and other rare metals,
chromites and manganese ore and fertilizer mineral.
Threat:
Large integrated international metal manufacturer including POSCO, Mittal Steel and
Alcan have announced plans for expansion in India.
Mining companies and equipment supplies are under the constant threat of being taken
over by foreign companies.
10. 10
CMPDI INTRODUCTION
CMPDI, An ISO-9001 Company, holds the pre-eminent position as India’s largest consultancy
organization and the market leader in an expanding earth resource sector. It was established in
the year 1975 as a subsidiary of Coal India Limited for rendering total consultancy services to
Coal India Limited and its seven subsidiaries.
To keep pace with the growth and the latest technological developments in the mineral and
mining industries, there is a need for consultant who can facilitate selection of appropriate
strategy-options to operate in today’s competitive environment.
CMPDI stands as a symbol of a specialist consultant for all those who are in the mineral and
mining sector. With three decades of experience and expertise in mineral exploration , mine
planning and design, infrastructure engineering, engineering ,environment, mineral beneficiation
and management services-CMPDI truly a unique ,multi-disciplinary and dynamic consulting
organization in this century .
CMPDI has more than 700 multidisciplinary technical professionals who combine innovation
and initiative to deliver fast and effective solutions in planning , implementation and
management of projects . it is equipped with modern laboratory facilities for undertaking various
analytical works to supplement its services .
It operates through its head quarters at Ranchi, the capital city of Jharkhand ,and seven Regional
Institutes located spread over six states that is:
o RI 1 located at Asansol
o RI 2 located at Dhanbad
o RI 3 located at Ranchi
o RI 4 located at Nagpur
o RI 5 located at Bilaspur
o RI 6 located at Singrauli
o RI 7 located at Bhubaneswar
11. 11
INFORMATION OF CMPDI
Central Mine Planning & Design Institute Limited (CMPDI) is a Government of India enterprise
having its corporate headquarters at Ranchi in India’
It is a fully onward subsidiary of Coal India Limited (CIL) and a Schedule-B company.
It is a Mini Ratna (Category-II) company since May 2009 and ISO 9001 certified since March
1998. It is also on way for ISO 27001 certification for its information management.
In 1972, CMPDI was originally conceived and proposed by a join study group with polish
experts as a comprehensive planning set up under one roof for entire Indian Mining industry,
which was then operating on a rudimentary planning system. This was also the time when Indian
coal industry was being nationalized to enable it to support the high growth of energy sector
required for speedy industrial growth of the country in the coming years.
In December 1973, the Government of India approved the proposal of CMPDI’s formation
restricting its field of activities initially to the then nationalized coal industry , since the need for
scientific planning for the coal mining sector has become paramount.
In January 1974, CMPDI started functioning as a division of the then recently constituted Coal
Mines Authority Ltd. (CMAL), and the planning wingh of erstwhile National Coal Development
Corporation (NCDC) forming its nucleus.
On 1st November 1975, CMAL was merged to form Coal India Ltd., and CMPDI attained the
status of a public limited company under CIL with declared scope of its business under its
Memorandum of Association broadly in line with its original proposal.
12. 12
MISSION VISION OF CMPDI
Mission
The Mission of CMPDIL is to provide total consultancy in coal and mineral exploration, mining,
engineering and allied fields as the premier consultants in India and a leading one in the
international arena.
Vision
The vision of CMPDI is to be the market leader in an expanding earth resource sector and allied
professionals activities.
13. 13
BOARD OF DIRECTORS
Sri A.K. Debnath Sri D.K. Ghosh
Chairman-cum-ManagingDirector Director(T/ES)
Sri R.K.Chopra Sri ShekharSaran
Director(T/P&D) Director(T/CRD)
14. 14
OBJECTIVES:
Major objective of CMPDI are as follows:
1. To provide consultancy services in coal and mineral exploration including geological,
geophysical, hydrological and environmental data generation.
2. To improve quality of exploration for providing higher level of confidence of geological
assessment for optimum mine planning.
3. To optimize generation of exploration of internal resources by improving productivity,
preventing wastage and mobilizing adequate external resources to meet investment need.
4. Project planning and designing for coal mines, Coal beneficiation and utilization plants,
etc.
5. To promote, coordinate and ensure effectiveness of research activities in coal sector
under S&T and R&D Schemes.
6. To assimilate and disseminate technological information through information networks.
7. To undertake formulation of environmental management plan(EIA), Environmental
Impact Assessment(EIA) and Mine Closure Plans for coal mining and related projects.
8. Extending remote sensing services for land reclamation monitoring environmental data
generation, vegetation copper mapping, coal mine fire mapping, large scale topographical
mapping of coal fields, infrastructural planning including selection of TPS and washery
locations, etc.
9. To provide field and laboratory services to subsidiary coal producing companies of CIL.
10. To provide consultancy services to subsidiary coal producing companies of CIL.
11. To provide consultancy services to outside organization other than CIL and its
subsidiaries.
15. 15
FUNCTIONS:
CMPDI functions through its headquarters at Ranchi and its regional institution
numbered 1 to 7 located at Asansol, Dhanbad, Ranchi, Nagpur, Bilaspur, Singrauli, and
Bhubaneswar respectively along with various field units and exploration camps.
The services of CMPDI fall under the following two broad heads.
A. CMPDI’s Business Function, that is the consultancy and support for mineral
exploration, mining, infrastructural engineering, environmental management, and
management systems, especially to the mineral, mining and allied sectors, both
within and outside coal industry and country.
B. CMPDI’s corporate responsibilities, are as follows.
Assisting ministry of coal (MoC) and planning commission for strategic decisions
retailing to coal-sector at the national level, through maintain inventories of coal
deposits, coal mining potentials and operations.
Functioning as a nodal agency on behalf of government of India, e.g., for schemes
funded by MoC viz S&T projects, exploration work in non-CIL blocks,
Environmental Measures and Subsidence Control(EMSC) projects, and CBM
clearing house and for projects funded by CIL R&D Board.
Liaison between MoC, CIL, and sister coal producing companies on technical and
operational matters
Working as in house planner and guide for coal-producing companies under CIL
as their integral part.
16. 16
So, the services of CMPDI are for any of the following purposes.
Services to pursue company’s business activities.
Service s to pursue research & development needs of the industry, either
independently or in association with some external agencybody.
Services technically similar to the above, but undertaken as it corporate
obligations.
BRIEF FUNCTION OF CMPDI
A Brief description of all the function of CMPDI is given below:
a) Geological Exploration and Support System- This core function of CMPDI
Since its inception offers the following services for mineral deposits:
Planning and execution of exploration;
Resources evaluation and documentation for investment and exploitation decisions; and
Related field tests and laboratory support
b) Planning, Design and Support Services- Being another core function of CMPDI since
inception, this offers the following services for construction and operation of mining,
beneficiation, utilization, and other infrastructure and engineering projects.
Formulation and evaluation of conceptual /pre-feasibility/feasibility studies, project
report, and the basic and detailed engineering design;
Engineering and other related consultancy and support: and
17. 17
Related field test and laboratory support.
c) Environmental Management services – under offer since 1992, these covers all round
support to mining industry for environmental management during their planning and
operations including Mine Closure Planning,laboratory and test support. Land use
monitoring of all major opencast mines in Coal India Ltd. Are being carried out by
satellite surveillance on yearly basis.
d) Management System Services – Under offer since 1997, these cover complete range of
consultancy and support for creation, implementation, and certification of various
standardized management systems, e.g. ISO 14001 Environmental Management System,
OHSAS18001 occupational health and safety management, and SA 8000 social
accountability management.
e) Human Resource Development- Under offer since 1976, these cover technical,
managerial, and management-systems related training to the market clientele, particularly
in mineral and mining sector.
f) Specialized Services – Expert consultancy services are also offered in the field of
Geometries including Remote sensing, Ventilation & Gas survey in mines, Controlled
Blasting, Performance evaluation of new explosives, Mining, Electronics, Mine capacity
Assessment, Mine support Design ,Rock Mass Rating (RMR), Non-destructive testing,
Management System Consultancy, Measurement of Coal and OBR, etc.
SERVICES PROVIDED BY CMPDIL
Exploration
CMPDI has completed over 1000 coal exploration projects in India in all types of terrain and
geological set up. This has resulted in providing more than 95 billion tons of coal reserves.
CMPDI has expanded its activities to manganese, iron, ore and rock phosphate. Exploration has
been also carried out in Tanzania. Annually, CMPDI carries out about 500,000 meters of drilling
camps and outsourcing.
18. 18
Mine planning and design
CMPDI has comprehensive experience in dealing with mining projects having geological
structural complexities .CMPDI has planned about 700 projects for an additional capacity
generation of over 500 million tones of coal per annum. it has developed expertise in the
reconstruction of mines , conversion of underground mines into open cast , mining in rugged
terrain etc.
Coal preparation
CMPDI offers complete consultancy services (planning, designing and construction) for new
coal washeries and mineral beneficiation as well as modernization of existing plants. In all
instances, CMPDI lays due emphasis on adoption of new technology.
Management services
For the development of infrastructure, CMPDI provides management and engineering support
services. It has developed multi disciplinary techno-managerial skill for implementation projects
of varying complexity from concept to commissioning.
Researchand development
CMPDI is the Nodal Agency for coordinating R&D programmes in the coal sector.
CMPDI assist the technical sub-committee of standing scientific research committee
(SSRC) in discharged of its function.
Inviting fresh new proposal
Carrying out first level scrutiny
Processing the scrutinized proposal for the approval of technical sub-committee of SSRC
Monitoring of the progress of the projects at regular interviews
Framing the R&D budget estimates
Dissemination of research findings and promoting their applications to field operation
Dissemination of research findings and promoting their application to field operations
19. 19
INTRODUCTION OF CAPITAL BUDGETING
Budgeting is an important component of financial success. It is not difficult to implement,
and it’s not just for people with limited funds. Budgeting makes it easier for people with
incomes and expenses of all sizes to make conscious decisions about how they’d prefer to
allocate their money. It can also help people save for retirement, emergencies, and a new car
or just about anything. For many people, having a solid budget in place, knowing how much
money they have and knowing exactly where the money is going makes it easier for them to
sleep at night.(for more on saving for retirement ,see our retirement planning tutorial;
candidates, see the registered retirement saving plan(RRSP) tutorial.
This budgeting tutorial will teach you everything from setting up a budget to updating it as
your circumstances change, as well as getting back on track if you go off your budget.
Whether you’re a college undergrad, retiree or somewhere in between, if you’re looking for a
way to manage your money better and improve your financial situation than this tutorial is
for us.
Investment appraisal is the planning process used to determine whether an organization’s
long term investments such as new machinery replacement machinery, new plants, new
products, structure (debt, equity or retained earnings). It is the process of allocating resources
for investments is to increase the value of the firm to the shareholders.
The process in which the business determines whether projects such as building, a new plant
or investing in a long-term venture are worth pursuing. Oftentimes , a perspective project’s
lifetime cash inflows and outflows are assessed in order to determine whether the returns
generated meet a sufficient targent benchmark.
20. 20
Capital budgeting is the planning of long-term corporate financial projects relating to
investments funded through and affecting the firm’s capital structure. Management must
allocate the firm’s limited resources between competing opportunities (projects) , which is
one of the main focuses of capital budgeting .capital budgeting is also concerned with setting
of criteria about which projects should receive investments funding to the increase the value
of the firm, and whether to finance that investments with the equity or debt capital .
Investments should be made on the basis of value added to the future of the corporation.
Capital budgeting project may include a wide variety of different types of investments,
including but not limited to, expansion policies, or mergers and acquisitions. When no such
value can be added through the capital budgeting process and excess cash surplus exists and
is not needed, then management is expected to pay out some or all of those surplus earnings
in the form of cash dividends or to repurchase the company’s stock through a share payback
program.
Choosing between capital budgeting projects may be based upon several inter-related criteria.
1. Corporate management seeks to maximize the value of the firm by investing in projects
which yield a positive net present value when value using an appropriate discount rate in
consideration of risks.
2. These projects must be financed appropriately.
3. If no positive NPV projects exists and excess cash surplus is not needed to the firm, then
financial theory suggests that management should return some or all of the excess cash to
shareholders (i.e., distributions via dividends).
Capital budgeting involves allocating the firm’s capital resources between competing
projects and investments. Each potential project’s value should be estimated using a
21. 21
discounted (DCF) valuation, to find its net present value . This valuation requires
estimating the size and timing of all the incremental cash flows from the project .( These
future cash highest NPV(GE).The NPV is greatly affected by the discount rate, so
selecting the proper rate-sometimes called the hurdle rate-is critical to the making the
right decisions. The hurdle rate is the Minimum acceptable rate of return on an
investments. This should reduce the rate of riskiness of the investments, typically
measured by the volatility of the cash flows, and must take into account the financing
mix. Managers may use models such as CAPM or the APT to estimate a discount rate
appropriate for each particular project , and use the weighted average cost of capital
(WACC) that applies to the entire firm, but higher discount rate may be more appropriate
then a project risk of the firm as a whole.
Ideally, business should pursue all projects and opportunities that enhance the
shareholder value. However, because the same amount of capital available at any given
time for new project is limited , management need to use capital budgeting techniques to
determine which project will yield the most return over an applicable period of time.
Need for Capital Budgeting
1. As large sum of money is involved which influences the profitability of the firm making
capital budgeting an important task.
2. Long term investment once made cannot be reversed without significance loss of
invested capital. The investment becomes sunk and mistakes, rather than being readily
rectified, must often be borne until the firm can be withdrawn through depreciation
charges or liquidation. It influences the whole conduct of the business for the years to
come.
22. 22
3. Investment decision are the base on which the profit will be earned and probably measured
through the return on the capital. A proper mix of capital investment is quite important to
ensure adequate rate of return on investment, calling for the need of capital budgeting.
4. The implication of long term investment decisions are more extensive than those of short
run decisions because of time factor involved, capital budgeting decisions are subject to the
higher degree of risk and uncertainty than short run decision.
Factors influencing capitalbudgeting are :
Availablity of funds
Structure of capital
Taxation policy
Government policy
Lending policies of financial institutions
Immediate need of the project
Earnings
Capital returns
Economic value of the project
Working capital
Accounting practice
Trend of earnings
Risk of business
Forecast of the market
Political unrest
Geographical condition
23. 23
Exchange rate of currency
Needof capitalbudgeting:
1. As large sum of money is involved which influences that profitability of the firm making
capital budgeting an important task.
2. Long term investment once made cannot be reversed without significance loss of invested
capital. The investment becomes sunk and mistakes, rather than being readily rectified,
must often be borne until the firm can be withdrawn through depreciation charges or
liquidation. It influences the whole conduct of the business for the years to come.
3. Investment decision are base on which the profit will be earned and probably measured
through the return on investment, calling for the need of capital budgeting.
4. The implication of long term investment decisions are more extensive than those of short
run decisions because of the time factor involved, capital budgeting decisions are more
subject to the higher degree of risk and uncertainty than short run decision.
Evaluation technique of capitalbudgeting:
Payback period
Net present value
Internal rate of return
Modified rate of return
Profitability index
According rates of return
24. 24
Payback period
Payback period in capital budgeting refers to the period of time required to recoup the funds
expended in an investment, or to reach the break-even point. For example, a $1000 investment
which returned $500 per year would have a two-year payback period. The time value of money
is not taken into account. Payback period intuitively measures how long something takes to "pay
for itself." All else being equal, shorter payback periods are preferable to longer payback periods.
Payback period is popular due to its ease of use despite the recognized limitations described
below.
The term is also widely used in other types of investment areas, often with respect to energy
efficiency technologies, maintenance, upgrades, or other changes. For example, a compact
fluorescent light bulb may be described as having a payback period of a certain number of years
or operating hours, assuming certain costs. Here, the return to the investment consists of reduced
operating costs. Although primarily a financial term, the concept of a payback period is
occasionally extended to other uses, such as energy payback period (the period of time over
which the energy savings of a project equal the amount of energy expended since project
inception); these other terms may not be standardized or widely used.
Purpose
Payback period as a tool of analysis is often used because it is easy to apply and easy to
understand for most individuals, regardless of academic training or field of endeavor. When used
carefully or to compare similar investments, it can be quite useful. As a stand-alone tool to
compare an investment to "doing nothing," payback period has no explicit criteria for decision-
making (except, perhaps, that the payback period should be less than infinity).
The payback period is considered a method of analysis with serious limitations and qualifications
for its use, because it does not account for the time value of money, risk, financing, or other
important considerations, such as the opportunity cost. Whilst the time value of money can be
rectified by applying a weighted average cost of capital discount, it is generally agreed that this
25. 25
tool for investment decisions should not be used in isolation. Alternative measures of "return"
preferred by economists are net present value and internal rate of return. An implicit assumption
in the use of payback period is that returns to the investment continue after the payback period.
Payback period does not specify any required comparison to other investments or even to not
making an investment.
Construction
Payback period is usually expressed in years. Start by calculating Net Cash Flow for each year:
Net Cash Flow Year 1 = Cash Inflow Year 1 - Cash Outflow Year 1. Then Cumulative Cash
Flow = (Net Cash Flow Year 1 + Net Cash Flow Year 2 + Net Cash Flow Year 3, etc.)
Accumulate by year until Cumulative Cash Flow is a positive number: that year is the payback
year.
To calculate a more exact payback period: Payback Period = Amount to be Invested/Estimated
Annual Net Cash Flow[2]
It can also be calculated using the formula:
Payback Period = (p - n)÷p + ny
= 1 + ny - n÷p (unit:years)
Where
ny= The number of years after the initial investment at which the last negative value of
cumulative cash flow occurs.
n= The value of cumulative cash flow at which the last negative value of cumulative cash flow
occurs.
p= The value of cash flow at which the first positive value of cumulative cash flow occurs.
This formula can only be used to calculate the soonest payback period; that is, the first period
after which the investment has paid for itself. If the cumulative cash flow drops to a negative
value some time after it has reached a positive value, thereby changing the payback period, this
formula can't be applied. This formula ignores values that arise after the payback period has been
reached.
26. 26
Additional complexity arises when the cash flow changes sign several times; i.e., it contains
outflows in the midst or at the end of the project lifetime. The modified payback period
algorithm may be applied then. First, the sum of all of the cash outflows is calculated. Then the
cumulative positive cash flows are determined for each period. The modified payback is
calculated as the moment in which the cumulative positive cash flow exceeds the total cash
outflow.
27. 27
Net presentvalue
In finance, the net present value (NPV) or net present worth (NPW) is defined as the sum of
the present values (PVs) of incoming and outgoing cash flows over a period of time. Incoming
and outgoing cash flows can also be described as benefit and cost cash flows, respectively.
Time value of money dictates that time has an impact on the value of cash flows. Cash flows of
nominal equal value over a time series result in different effective value cash flows that makes
future cash flows less valuable over time. If for example there exists a time series of identical
cash flows, the cash flow in the present is the most valuable, with each future cash flow
becoming less valuable than the previous cash flow. Thus, a cash flow today is more valuable
than an identical cash flow in the future. This decrease occurs because the discount factor
represents the expected rate of return of each cash flow in a different investment with identical
risk. With each additional period, the present value of a subsequent future cash flow decreases.
The NPV of an investment is determined by calculating the present value (PV) of the total
benefits and costs which is achieved by discounting the future value of each cash flow (see
Formula). NPV is a useful tool to determine whether a project or investment will result in a net
profit or a loss because of its simplicity. A positive NPV results in profit, while a negative NPV
results in a loss. The NPV measures the excess or shortfall of cash flows, in present value terms,
above the cost of funds.[4] In a theoretical situation of unlimited capital budgeting a company
should pursue every investment with a positive NPV. However, in practical terms a company's
capital constraints limit investments to projects with the highest NPV whose cost cash flows do
not exceed the company's capital. NPV is a central tool in discounted cash flow (DCF) analysis
and is a standard method for using the time value of money to appraise long-term projects. It is
widely used throughout economics, finance, and accounting.
In the case when all future cash flows are incoming (such as the principal and coupon payment
of a bond) the only outflow of cash is the purchase price, the NPV is simply the PV of future
cash flows minus the purchase price (which is its own PV). NPV can be described as the
“difference amount” between the sums of discounted cash inflows and cash outflows. It
28. 28
compares the present value of money today to the present value of money in the future, taking
inflation and returns into account.
The NPV of a sequence of cash flows takes as input the cash flows and a discount rate or
discount curve and outputs a price. The converse process in DCF analysis — taking a sequence
of cash flows and a price as input and inferring as output a discount rate (the discount rate which
would yield the given price as NPV) — is called the yield and is more widely used in bond
trading.
Formula
Each cash inflow/outflow is discounted back to its present value (PV). Then they are summed.
Therefore NPV is the sum of all terms,
where
– the time of the cash flow
– the discountrate (the rate of return that couldbe earnedon an investmentinthe financial
marketswithsimilarrisk.);the opportunitycost of capital
– the netcash flowi.e.cashinflow –cash outflow,attime t . Foreducational purposes,
iscommonlyplacedtothe leftof the sumto emphasize itsrole as(minus) the investment.
The result of this formula is multiplied with the Annual Net cash in-flows and reduced by Initial
Cash outlay the present value but in cases where the cash flows are not equal in amount, then the
previous formula will be used to determine the present value of each cash flow separately. Any
cash flow within 12 months will not be discounted for NPV purpose, nevertheless the usual
initial investments during the first year R0 are summed up a negative cash flow.[5]
Given the (period, cash flow) pairs ( , ) where is the total number of periods, the net
present value is given by:
30. 30
Internal rate of return
The internal rate of return (IRR) or economic rate of return (ERR) is a rate of return used in
capital budgeting to measure and compare the profitability of investments. It is also called the
discounted cash flow rate of return (DCFROR). In the context of savings and loans, the IRR is
also called the effective interest rate. The term internal refers to the fact that its calculation does
not incorporate environmental factors (e.g., the interest rate or inflation).
Definition
The internal rate of return on an investment or project is the "annualized effective compounded
return rate" or rate of return that makes the net present value (NPV as NET*1/(1+IRR)^year) of
all cash flows (both positive and negative) from a particular investment equal to zero. It can also
be defined as the discount rate at which the present value of all future cash flow is equal to the
initial investment or in other words the rate at which an investment breaks even.
In more specific terms, the IRR of an investment is the discount rate at which the net present
value of costs (negative cash flows) of the investment equals the net present value of the benefits
(positive cash flows) of the investment.
IRR calculations are commonly used to evaluate the desirability of investments or projects. The
higher a project's IRR, the more desirable it is to undertake the project. Assuming all projects
require the same amount of up-front investment, the project with the highest IRR would be
considered the best and undertaken first.
A firm (or individual) should, in theory, undertake all projects or investments available with
IRRs that exceed the cost of capital. Investment may be limited by availability of funds to the
firm and/or by the firm's capacity or ability to manage numerous projects.
31. 31
Uses of IRR
Because the internal rate of return is a rate quantity, it is an indicator of the efficiency, quality, or
yield of an investment. This is in contrast with the net present value, which is an indicator of the
value or magnitude of an investment.
An investment is considered acceptable if its internal rate of return is greater than an established
minimum acceptable rate of return or cost of capital. In a scenario where an investment is
considered by a firm that has shareholders, this minimum rate is the cost of capital of the
investment (which may be determined by the risk-adjusted cost of capital of alternative
investments). This ensures that the investment is supported by equity holders since, in general,
an investment whose IRR exceeds its cost of capital adds value for the company (i.e., it is
economically profitable).
One of the uses of IRR is by corporations that wish to compare capital projects. For example, a
corporation will evaluate an investment in a new plant versus an extension of an existing plant
based on the IRR of each project. In such a case, each new capital project must produce an IRR
that is higher than the company's cost of capital. Once this hurdle is surpassed, the project with
the highest IRR would be the wiser investment, all other things being equal (including risk).
IRR is also useful for corporations in evaluating stock buyback programs. Clearly, if a company
allocates a substantial amount to a stock buyback, the analysis must show that the company's
own stock is a better investment (has a higher IRR) than any other use of the funds for other
capital projects, or than any acquisition candidate at current market prices.
Calculation
Given a collection of pairs (time, cash flow) involved in a project, the internal rate of return
follows from the net present value as a function of the rate of return. A rate of return for which
this function is zero is an internal rate of return.
Given the (period, cash flow) pairs ( , ) where is a positive integer, the total number of
periods , and the net present value , the internal rate of return is given by in:
32. 32
The period is usually given in years, but the calculation may be made simpler if is calculated
using the period in which the majority of the problem is defined (e.g., using months if most of
the cash flows occur at monthly intervals) and converted to a yearly period thereafter.
Any fixed time can be used in place of the present (e.g., the end of one interval of an annuity);
the value obtained is zero if and only if the NPV is zero.
In the case that the cash flows are random variables, such as in the case of a life annuity, the
expected values are put into the above formula.
Often, the value of cannot be found analytically. In this case, numerical methods or graphical
methods must be used.
Use of IRR at CMPDIL
As CMPDIL is a planning company .it uses IRR for evaluating proposed project of various
companies. If IRR of a proposed project is 12% or more only then CMPDIL suggest the firm to
accept the project. CMPDIL uses MS excel software for the calculation of IRR.
33. 33
Modified Rate of Return
The Modified Internal Rate of Return (MIRR) is a financial measure of an investment's
attractiveness. It is used in capital budgeting to rank alternative investments of equal size. As the
name implies, MIRR is a modification of the internal rate of return (IRR) and as such aims to
resolve some problems with the IRR.
Calculation of the MIRR
MIRR is calculated as follows:
,
where n is the number of equal periods at the end of which the cash flows occur (not the number
of cash flows), PV is present value (at the beginning of the first period), FV is future value (at the
end of the last period).
The formula adds up the negative cash flows after discounting them to time zero using the
external cost of capital, adds up the positive cash flows including the proceeds of reinvestment at
the external reinvestment rate to the final period, and then works out what rate of return would
cause the magnitude of the discounted negative cash flows at time zero to be equivalent to the
future value of the positive cash flows at the final time period.
Spreadsheet applications, such as Microsoft Excel, have inbuilt functions to calculate the MIRR.
In MicroProfitability Index
Profitability index is an investment appraisal technique calculated by dividing the present value
of future cash flows of a project by the initial investment required for the project.
35. 35
Accounting rate of return
Accounting rate of return, also known as the Average rate of return, or ARR is a financial ratio
used in budgeting. The ratio does not take into account the concept of time value of money. ARR
calculates the return, generated from net income of the proposed capital investment. The ARR is
a percentage return. Say, if ARR = 7%, then it means that the project is expected to earn seven
cents out of each dollar invested (yearly). If the ARR is equal to or greater than the required rate
of return, the project is acceptable. If it is less than the desired rate, it should be rejected. When
comparing investments, the higher the ARR, the more attractive the investment. Over one-half of
large firms calculate ARR when appraising projects.
Basic formulas
where=Profit/investment equals to ARR.
ARR = Incremental Revenue - Incremental Expenses (Including Depreciation)/Initial Investment
Average Profit = Profit After Tax/Life of Project.
36. 36
HOW CAPITAL BUDGETING TECHNIQUES ARE USED IN CMPDI
Introduction
The amount of money allotted to the maintenance and growth of a business. A revenue budget is
essentaial to management and is the result of business forecasts of sales, revenue, expenses and
capiatal expenditure. Revenue budget help business save time and effort by the proper use it
allows for alternative actions to be developed prior to the start of the new year.
The benefit of a revenue budget
The main benefit of a revenue budget is that it requires looking into the future. The revenue
budget should contain the assumption made about the future and the details about the number
units to be sold, the expected selling prices, and so on.
The budgeted amount of revenue is then compared to the budgeted amount of expenses in order
to determine if the revenues are adequate. Learning of a potential problem before the year begins
is a huge benefit because it allows for alternative actions to be developed prior to the start of the
year.
When an annual revenue budget is detailed by mouth, each months actual revenues can be
compared to the budgeted amount .Similarly, the actual revenues can be compared to the
budgeted revenues for the same period. in other word, monthly revenues budgets allow you to
monitor revenues as the year progresses instead of being surprised at the end of the year.
37. 37
PERFORMANCE AT A GLANCE of CMPDIL
particulars unit 2009-10 2010-11 2011-12 2012-
13
2013-2014
1 Saleof service
(net sales)
Rs in
crore
453.53 429.09 524.03 601.05 647.43
2 Profitbefore tax Rs in
crore
19.61 23.69 30.79 29.77 34.60
3 profitafter tax Rs in
crore
11.46 15.32 19.61 25.05 19.57
4 Retained profit Rs in
crore
11.46 15.32 19.61 25.05 19.57
5 Net block Rs in
crore
67.56 71.95 78.06 75.18 71.45
6 Net worth Rs in
crore
73.78 87.92 110.92 134.89 155.88
7 Current assets Rs in
crore
417.88 409.67 466.93 580.21 629.85
8 Current
liabilities
Rs in
crore
317.26 319.66 347.72 446.06 491.13
9 Workingcapital
(7-8)
Rs in
crore
100.62 90.01 119.21 134.15 138.78
10 Capital emloyed Rs in
crore
168.18 161.96 197.27 209.33 210.17
11 Gross margin Rs in
crore
27.30 27.3026.51 36.68 42.61 44.06
12 Value added Rs in
crore
10.48 10.31 16.95 21.68 23.07
13 Number of
employees
Rs in
crore
3156 3102 3129 3142 3135
14 Value added per
employee
Rs in
crore
33.21 33.21 54.17 69.00 73.59
38. 38
15 Return capital
emoployed
Rs in
crore
11.66 14.63 15.61 14.22 16.46
16 Face valueper
share
Rs in
crore
1000.00 1000.00 1000.00 1000.00 1000.00
17 Earningper
share
Rs in
crore
602.00 805.00 1030 1316.00 1028.00
Note:
Net worth = paid up capital + reserves and surplus - accumulated loss & deferred revenue
Capital employed = net block +working capital
Gross margin = net profit+ depreciation+ interest+ pp adjustment+ tax expenses
Value added = gross margin-10%of capital employed
39. 39
FINANCIAL OVERVIEW OF CMPDIL
Sales break-up(in Rs crore)
19.99%
364.53%
3.11%
17.64%
152.27%
14.25% 41.04%
FINANCIAL ANALYSIS
2013-14
Consumption of stores &
spares
Employess remuneration &
benefits
Power and fuel
social overhead
Contractual expenses
0
100
200
300
400
500
600
700
Total sales Planning and &
design
Exploration Environmental
sales break-up in crore
Column1
Column2
40. 40
0
50
100
150
200
250
2010-11 2011-12 2012-13
161.96
197.27 200.24
capitalemployed
year
capital employed in crore
0
100
200
300
400
500
600
2010-2011 2011-2012 2012-2013
405.4
493.24
571.28
264.78
334.36
367.72
75.43 93
114.13
16.12 16.67 15.28
49.07 49.21
74.15
EXPENDITURE
year
Expenditure Breakup (in crores)
Total Exp
Emp Rem
contractual
stores
other
41. 41
429.09
524.03
601.05
166.86
194.28 214.8
240.06
307.4
361.92
22.17 22.35 24.33
0
100
200
300
400
500
600
700
2010-2011 2011-2012 2012-2013
Sales
year
Sales Breakup (in crores)
Total sales
P&D
Exploration
Environment
0
10
20
30
2010-11
2011-12
2012-13
15.32
19.65
25.05
PAT
Year
Profit after tax Rs. In crore
45. 45
CONCLUSION
Capital budgeting technique are used to determine long terms goals, new investment
oppurtunities and estimating and forecasing future and current cash flows. With any capital
budgeting techniques measuring risks uncertainty and the cash of the capital as well as antic
pated project performance determine as whether to accept the project or reject it. When using
evaluation techniques. It is best to use more than one perspective so as not to pepuce biased
result.
According to the capital budgeting techniques” the internal Rate of return” method is the most
communally used method CMPDI for evaluating capital budgeting prop seals. The use of IRR, as
a criterion to accept capital investment decision involutes a comparison of IRR with the required
rate of return known as cut of rates. For the investments decision to be viable the project
theproject is accepted when IRR is equal to or greater than 12% at 85% of the project capacity.
Else the project is rejected.
Ratio analysis helps to compare different ratio of different year which’s be unofficial for
shareholder and company 100 for company 100 for comparison purpose. Through this process
we come to know that the condition as CMPDI is good.
46. 46
SUGGESTIONS AND RECOMMENDATION
CMPDI used 12% IRR at 85% capacity. But according to present market scenario 12% is
undoubtly too low. This is mainly because IRR is sum of the cost of capital and risk premicem
according to the current market scenario us very high.
CMPDI being a government organization is in the position to accept the project at 12% IRR at
85% capacity because the cost as well as the consequences is born by the government and the
company has with itself excessive amount of liquid capital as. Well as liquid assets.
IRR should be more than 12% in order cope up with the present market scenario.