CAPITAL BUDGETING PRACTICES IN INDIA

Finance is the science of funds management. The general areas of finance are business finance, personal finance (private finance), and public finance. Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time, money, risk and how they are interrelated. Finance is one of the most important aspects of business management and includes decisions related to the use and acquisition of funds for the enterprise. Financial management is largely concerned with financing, dividend and investment decisions of the firm with some overall goal in mind (Deolanker, 1996). The basic message behind the statement "Financial Management is concerned with the solutions of the three major decisions a firm must make the investment decision, the financing decision and the dividend decision" is self evident.