Financial Management in Public Sector Undertakings
Project report on Highlights of 'Financial Management' In Public Sector Undertakings
CONTENTS
1. Introduction
2. Highlights of financial management in public sector undertakings
- Budgets in Public Sector
- Revised Budget
- Sources of Funds in Public Sector
- Role of Financial Advisor
- Capital Budgeting
- Working Capital Management
- Financial Delegation
- Financial Reporting
- Profitability of Central Public Sector Undertakings
3. Role of financial management in the reforming of psu’s
- Performance Evaluation in PSU's
- Valuation of Public Sector Undertaking
- Valuation Techniques
- Pricing in Acquisitions
- Disinvestment
4. SWOT analysis of financial management in psu’s
5. Conclusion
INTRODUCTION
A public sector undertaking may be defined as a business undertaking, which is owned managed and controlled by the State, on behalf of public at large. These undertakings have come to enjoy a unique position in the Indian economy in the post independence era. They have been responsible for forming a strong industrial base and providing the basic infrastructure for development in the country. From an investment in 5 enterprises of Rs. 29 crores in 1950-51. Investment in 242 Central PSUs has gone up to a staggering Rs. 2.04.054 crores, the net profit they made was just Rs. 13.725 crores -a return of 6.7 per cent only.
The implicit assumption in the growth of PSU at the early stages was that public sector would perform the role of a pathfinder and create necessary infrastructural facilities and not be over- concerned about profits or surpluses. This however, subsequently, gave way to the view that even as externalities are important in the same way, profitability was also a useful guide and self- disciplinary measure.
In respect of the area and nature of job contained in Financial Management, there is primarily no significant difference in a private sector or a public sector organisation. However, since the public sector deals with and substantially relies on
CONTENTS
1. Introduction
2. Highlights of financial management in public sector undertakings
- Budgets in Public Sector
- Revised Budget
- Sources of Funds in Public Sector
- Role of Financial Advisor
- Capital Budgeting
- Working Capital Management
- Financial Delegation
- Financial Reporting
- Profitability of Central Public Sector Undertakings
3. Role of financial management in the reforming of psu’s
- Performance Evaluation in PSU's
- Valuation of Public Sector Undertaking
- Valuation Techniques
- Pricing in Acquisitions
- Disinvestment
4. SWOT analysis of financial management in psu’s
5. Conclusion
INTRODUCTION
A public sector undertaking may be defined as a business undertaking, which is owned managed and controlled by the State, on behalf of public at large. These undertakings have come to enjoy a unique position in the Indian economy in the post independence era. They have been responsible for forming a strong industrial base and providing the basic infrastructure for development in the country. From an investment in 5 enterprises of Rs. 29 crores in 1950-51. Investment in 242 Central PSUs has gone up to a staggering Rs. 2.04.054 crores, the net profit they made was just Rs. 13.725 crores -a return of 6.7 per cent only.
The implicit assumption in the growth of PSU at the early stages was that public sector would perform the role of a pathfinder and create necessary infrastructural facilities and not be over- concerned about profits or surpluses. This however, subsequently, gave way to the view that even as externalities are important in the same way, profitability was also a useful guide and self- disciplinary measure.
In respect of the area and nature of job contained in Financial Management, there is primarily no significant difference in a private sector or a public sector organisation. However, since the public sector deals with and substantially relies on