Capital Budgeting in Corporate Sector

Abstract

In today’s ever changing world, the only thing that does not change is ‘change’ itself. Change can trigger any corporate growth which can be measured in terms of increase in investments or sales. A progressive business firm continually needs to expand its fixed assets and other resources to be competitive in the race. Investment in fixed assets is an important indicator of corporate growth. The success of the corporate growth in the long run depends upon the effectiveness with which the management makes capital expenditure decisions. In the dynamic business environment, making capital budgeting decisions are among the most important and multifaceted of all management decisions as it represents major commitments of company’s resources and have serious consequences on the profitability and financial stability. How far the corporate attains financial stability and profitability over a period of time, while making capital budgeting needs evaluation and is a million dollar issue. In view of this, this study has made an attempt to analyse the efficiency of the corporate sector’s capital budgeting through their financial statements