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 taxpayer’s money, the rules, procedures and checks for accountability of this money are comparatively more rigid than that in the private sector.
Number of Pages of Project Report:57
Package Includes: Project Report
Project Format: Document (.doc)
Table of Contents of Project Report:
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
4. SWOT analysis of financial management in psu’s Data till 2001