PROCESS OF DECISION MAKING FOR CHOOSING INVESTMENT STRATEGIES IN CAPITAL MANAGEMENT IN INDIA

The concept of capital budgeting is crucial for every business firm as it aims in the maximization of the shareholders' value. In this research article, the main aim was to study process, techniques involved in analyzing the investment decisions, weaknesses and solutions related to capital budgeting. The study was conducted in order to know the various levels of decision making adopted by the manufacturing companies of India involved in capital budgeting process. Further, various methods were evaluated in order to know which one was the most suitable, being preferred by them. For achieving the stated objectives, 10 manufacturing companies of Ludhiana were taken as sample. Surveys were conducted by visiting the selected companies personally in order to obtain the required information. It was found out that Indian companies mostly followed pay-back method and accounting rate of return in order to appraise the capital budgeting proposals.