Capital Budgeting

Statement of the problem

Capital Budgeting, lease or Buy and Replacement or continue with old one

Objectives of the study

Objective of study on capital budgeting is to ensure maximisation of profit to determines funding

For assets that produce income, and you will have to make decisions about assets to buy or lease
based on a clear set of objectives.
Methodology

Conduct the cost benefit analysis of both the options lease or buy for a real life capital budgeting
decision taken at the company. Shown all the calculations & provided all supportive documents/
financial statements

Faculty Name: Priti Sharma

Under Supervision of:

C.A. Dilip Kumar

President of Sanwariya Gas Limited

Submitted by:

KM DEEPMALA SINGH

Enrollment No. 18A2016973

Area of Specialisation- Finance

2018-2019
 Table of Contents

Introduction ................................................................................................................................ 3
Company Overview/theoretical perspective .............................................................................. 3
Literature Review....................................................................................................................... 6
Research Methodology .............................................................................................................. 6
Data Analysis & Interpretations ........................................................................................ 8
Findings & Conclusions. Annexures ................................................................................. 9
Introduction

Company Overview/theoretical perspective

Literature Review

Sr. Author and

Theme References Findings
No. Year
Even though scientific researchers
carried out till now doesn’t solve
many technical issues related to
measurement and reporting,
Green present knowledge about
House Gas reservoir emissions gives
Emissions significant information regarding
http://www.ijrer.org/ijrer/in
from Amit Kumar, types of emissions (mainly N2O,
dex.php
1. Hydropowe M.P. Sharma
/ijrer/article/view/3557/pdf
CH4, CO2) and eco-region where
r they are significantly important.
Reservoirs: The full picture of GHG
Policy and emissions at worldwide is still
Challenges unknown because of many
uncertainties present in accurate
measurement and unavailability
of reservoir emissions data on a
large scale.
GHG https://www.hydropower.org
Measureme /sites/default/files/publications
nt -
Joel.A.
2. Guidelines docs/GHG%20Measurement
Goldenfum %20Guidelines
for
Freshwater %20for%20Freshwater%20Re
Reservoirs servoirs.pdf
 These estimates involve a high
degree of uncertainty, among
other things depending on the fact
that reliable information is
available for comparatively few
reservoirs. It is clear, however,
that previous estimates that have
Review of
been circulated in the press
greenhouse
overstate emissions from
gas
reservoirs in India. In particular,
emissions
http://envfor.nic.in/downloads hydropower reservoirs are to a
from the
/public- large extent located in regions
3. Creation of information/LCGEmisssionsH where natural conditions restrict
hydropowe ydroJune2008.pdf processes that give rise to
r
methane emissions. In addition,
Reservoirs
such reservoirs are deep and old,
in India
factors that also reduce emissions
of greenhouse gases. In order to
allow more precise estimates it is
suggested that the characteristics
of major reservoirs (at least those
with a surface area ≥100km2) be
updated.

The impact of actual or potential

reservoir GHG emissions on the
U.S. hydropower industry is
indefinite at present. The data
clearly indicate that reservoir
gross emissions of GHG are not
zero. Whether there is a net
emission of GHG is less certain
as few studies having measured or
estimated both emission and
uptake. In addition, there have
The Role of been very few assessments of
Hydropowe emissions/sinks prior to reservoir
r construction to adequately
Reservoirs compare GHG production before
4. D. Dixon
in and after impoundment. One
Greenhouse notable exception is the ongoing
Gas Eastmain-1 project sponsored by
Emissions Hydro-Québec Production and the
Canadin Edition plen Foundation
for Climate and Atmospheric
Sciences. This project aims to
determine the net GHG emission
from a recently constructed
hydropower reservoir in northern
Quebec by measuring gross
emissions from the reservoir and
comparing these with emissions
from nearby rivers, lakes and
terrestrial ecosystems similar to
 the systems flooded.
It is now clear that hydroelectric
reservoirs represent a renewable
but not a carbon-free source of
electricity. Attempts to determine
the carbon footprint of
Greenhouse hydropower production have lead
Gas to significant scientific advances.
Emissions Raquel However, it is still a long way
from Mendonça, towards a full assessment of the
Hydroelectr Nathan Barros, role of hydroelectric reservoirs as
ic Luciana sources of GHG to the
Reservoirs: O.Vidal, atmosphere. The major gaps to be
5. What Felipe Pacheco, filled by future research are
Knowledge Sarian Kosten related to the quality of current
Do We and Fabio carbon budget estimations.
Have and Roland However, other issues need
What is attention, e.g. the outcomes of
Lacking? removal of dams and the
development of mitigation
strategies.

Life cycle analysis (LCA) is

clearly the current best practice
for comparing the GHG
emissions of generating facilities.
With respect to imported power,
consideration of displaced
emissions in the importing region,
exporting region, and
neighbouring regions electrically
interconnected with either may be
necessary to form a true picture of
GHG effects. The largest sources
Hydropowe William of GHGs for newly constructed
rG Steinhurst, http://www.clf.org/wp- hydropower are biomass
reenhouse Patrick Knight, content/uploads/2012/02/Hydr decomposition from reservoir
6. opower-GHG-Emissions-Feb.-
Gas and Melissa flooding and construction of the
Emissions Schult 14-2012.pdf facility. Along with
methodological disparities,
biomass decomposition is
the largest source of uncertainty
in the GHG emission estimates
for hydropower. Emission
uncertainties from biomass
decomposition may remain large,
as the relevant modelling is
complex. Further research, both
theoretical studies and field
measurements, should be
considered prior to new
construction decisions. Site-
 specific assessments will be
particularly valuable.

Research Methodology

 The issue related to measurement and reporting the present knowledge about
reservoirs emissions.
 The relationship between the hydropower generation and greenhouse gas emission
from reservoirs and how it influence the future energy policy, regulation, and market
design.

Data Analysis & Interpretations

 Comparative study of green house gases effect by oil and gas industry and hydropower
reservoirs.
 Study on policies involved in reduction of green house gases emission from reservoirs
and providing changes/solutions.
 What amount of green house gas is produced in India through reservoirs.

Findings & Conclusions. Annexures

The research study is entirely based on secondary data collection and very limited primary
data collection.

Secondary data sources include:

 International journal of green house gas control
 Various reports and papers on greenhouse gas emissions
 Various sources available on internet
Outline of the research study will be as follows-

 Chapter 1- Introduction- This chapter will give a general overview of the topic.
 Chapter 2- Company Overview/theoretical perspective-This chapter will give general
overview of Company and describe the needs of Capital Budgeting in Company.
 Chapter 3- Literature Review- This section will cover all the literature that is already
available as primary or secondary data that formed the basis of the research and help in
identifying the gaps that will show where the research opportunity is there.
 Chapter 4- Research Methodology- This chapter covers the steps and methodology
used in order to approach the study. It will also point out the analytical tools used in
doing our research and identify what is the scope of the study done along with the
limitations of the research process.
 Chapter 5- Data Analysis & Interpretations- The data analysis part points out what
are our findings from doing the research, also along with it will show what all parameters
after conducting an analysis of the factors.
 Chapter 6- Findings & Conclusions. Annexures- The conclusion of the research will
be noted down in this chapter along with the limitations of the research & the future
scope of research.