Capital Budgeting

A PROJECT REPORT ON

“CAPIITAL BUDGETIING” “CAP TAL BUDGET NG” AT

INDIAN OIL CORPORATION LTD. (GUWAHATI REFINERY, NOONMATI)

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE POST GRADUATE DIPLOMA IN MANAGEMENT

PREPARED BY: JAHNABI CHOUDHURY GURU NANAK INSTITUTE OF MANAGEMENT PUNJABI BAGH, NEW DELHI 2009-2011

SUBMITTED TO: NP SINGH FINANCE FACULTY

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TABLE OF CONTENTS

PREFACE ACKNOWLEDGEMENT DECLARATION EXECUTIVE SUMMARY

SL. NO.

PARTICULARS

PAGE NO.

PART - I 1. 2. 3. 4. 5. 6. 7. 8.

GENERAL INFORMATION

About Indian Oil Corporation Limited Board of Directors History of IOCL Mission, Objective, Obligation Branded Product of IOCL About Guwahati Refinery Manufacturing process Structure, Department, Section

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PART - II 9.

FINANCE PROJECT WORK

Brief Description Background of the Study Importance of the Study Need for Improvement of MS Quality

10.

Overview of the Project Objective of the study

11. 12.

Scope and Limitations of the Study Capital Investment Analysis Need and Justification Market and commercial assessment Technical Feasibility Study Financial Analysis Sensitivity and Risk Analysis

13.

Results and Findings

14.

Conclusions

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LIST OF ANNEXURE

SR. NO. PARTICULARS PART – 1 GENERAL 1. 2. 3. Phasing of the investment. Sources of capital. Calculation of interest on long term debt. PART – 2 ESTIMATED 4. 5. 6. 7. 8. 9. Project cost on the basis of April 2000 prices. Calculation of block of assets. Value of assets. Depreciation as per Income Tax Act (WDV method). Annual sales realization. Calculation of IRR and NPV. PART – 3 ACTUAL 10. 11. 12. 13. 14. Project cost on the basis of average prices (2006). Calculation of block of assets. Value of assets. Depreciation as per Income Tax Act (WDV method). Annual sales realization. ANNEXURE PAGE NO. NO.

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PREFACE

In today‘s era of globalization and competition, coping up with technological advancement, which is...