ONGC Comical Company

8/19/2019 ONGC Comical Company

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Year

2012

INTRODUCTION TO

OIL AND GAS CORPORATION

LIMITED (ONGC)

1.1• HISTORY OF ONGC

1.2

1.3

• BASIC INFORMATION

• ONGC VISION ANDMISSION STATEMENT

1.4• ASSETS/BASINS/PLANTS/INSTITUTE

1


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1.5 • SWOT ANALYSIS OF ONGC

• SUBSIDIARIES AND OINT1.6 VENTURE

1.7• BOARD OF DIRECTORS

1.8• ONGC STRUCTURE

1.9• ABOUT MEHSANA ASSET


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OIL AND NATURAL GAS CORPORATION

LTD

1


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2

INTRODUCTION

1.1 HISTORY OF ONGC

1!"#$1!%0

During the pre-independence period, the Assam Oil Company in the north-eastern and

Attack Oil company in north-western part of the undiided !ndia were the only oil

companies producing oil in the country, with minimal e"ploration input. #he ma$or

part of !ndian sedimentary %asins was deemed to %e unfit for deelopment of oil and

gas resources.

After independence, the national &oernment reali'ed the importance oil

and gas for rapid industrial deelopment and its strategic role in defence.

Conse(uently, while framing the !ndustrial )olicy *tatement of 1+, the

deelopment of petroleum industry in the country was considered to %e of

utmost necessity.

ntil 1+55, priate oil companies mainly carried out e"ploration of hydrocar%on

resources of !ndia. !n Assam, the Assam Oil Company was producing oil at Dig%oi

/discoered in 1+0 and the Oil !ndia td. /a 523 $oint enture %etween

&oernment of !ndia and 4urmah Oil Company0 was engaged in deeloping

two newly discoered large fields aharkatiya and 6oran in Assam. !n 7est

4engal, the !ndo-*tan ac )etroleum pro$ect /a $oint enture %etween &oernment of

!ndia and *tandard 8acuum Oil Company of *A0 was engaged in e"ploration

work. #he ast sedimentary tract in other parts of !ndia and ad$oining

offshore remained largely une"plored.

!n 1+55, &oernment of !ndia decided to deelop the oil and natural gas resources in

the arious regions of the country as part of the )u%lic *ector deelopment. 7ith this

o%$ectie, an Oil and atural &as Directorate was set up towards the end of 1+55, as a

su%ordinate office under the then 6inistry of atural 9esources and *cientific

9esearch. #he department was constituted with a nucleus of geoscientists from the

&eological surey of !ndia.


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A&'er 1!!0

#he li%erali'ed economic policy, adopted %y the &oernment of !ndia in Euly 1++1,

sought toderegulate and de-licenses the core sectors /including petroleum sector0 with

partial disinestments of goernment e(uity in )u%lic *ector ndertakings and other measures. As conse(uence thereof, O&C was re-organi'ed as a limited Company

under the Company s‟ Act, 1+5? in


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1.= BASIC INFORMATION

C*a+, +aeG Oil atural &as Corporation imited.

I+-r*ra'.+ ,earG 1+5+

O+er.*G Central &ot. H Commercial ;nterprises.

Ma.+ A-'..',G ;"ploration )roduction of Oil and &as

Re3.'ere4 &&.-eG $eean %harti tower-=,1=-indian chowk, Connaught

place, new delhi-112221

A44re5 O&C limited :D6%haan palaasana near palaasna chokdi

mehsana

Ba+6erG state %ank of !ndia

1.F ONGC VISION AND MISSION STATEMENT

1.F.1 COMPANY7S VISION

I#o %e a world class Oil &as Company !ntegrated in energy %usiness with

dominant !ndian leadership and glo%al presence.J

M''

I)roide (uality serices with efficiency and transparency.J

1.F.= MISSION

Wr84 C8a

• Dedication towards leeraging competitie adantages in 9D and

technology with inoled people.

• !m%i%ing high standards of %usiness ethics and organi'ational alues.

• A%iding commitment to health, safety and enironment to enrich (uality of

community life.

•


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• *triing for customer delight through (uality products and serices

1.F.F INTEGRATED IN ENERGY BUSINESS

• )roide alue linkages in other sectors of energy %usiness.

• Create growth opportunities and ma"imi'e shareholder alue.

• Dominant !ndian eadership

• 9etain dominant position in !ndian )etroleum sector and enhance !ndiaBs

energy aaila%ility

1.F. STRATEGIC VISION5 2001$2020

#o focus on core %usiness of ;), O&C has set strategic o%$ecties ofG

• Dou%ling reseres /i.e. accreting ? %illion tones of OKO;&0.

• !mproing aerage recoery from = per cent to 2 per cent.

• #ie-up =2 66#)A of e(uity ydrocar%on from a%road.

• #he focus of management will %e to moneti'e the money.

1.F.5 GLOBAL RAN9ING

• !t is Asia s‟ %est Oil &as Company, as per a recent surey conducted %y *-

%ased maga'ine L&lo%al


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• !t owns and operates more than 11222 kilo meters of pipelines in !ndia,

including nearly F=22kilometers of su%-sea pipelines. o other company in

!ndia operates een 52 per cent of this route length.


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• Crossed the landmark of earning et )rofit e"ceeding 9s.12, 222 Core, and

the first to do so among all !ndian Corporate, and a remarka%le et )rofit to

9eenue ratio of =+. per cent. #he growth in O&CBs profits is not solely due

to deregulation in crude prices in !ndia, as deregulation has affected all the oilcompanies, upstream as well as downstream, %ut it is only O&C which has

e"hi%ited such a performance /of dou%ling turnoer and profits0. as paid the

highest-eer diidend in the !ndian corporate history.

• !ts 12 per cent e(uity sale /!ndiaBs highest-eer e(uity offer0 receied

unprecedented &lo%al !nestor recognition. #his was a landmark in !ndian

e(uity market, esta%lishing %eyond dou%t, the respect O&CBs professional

management commands among the glo%al inestor community. According to a

report pu%lished in B#he Asian 7all *treet Eournal /ong :ong0B,O&CBs

)u%lic !ssue %rought in =2 was reported0, Bthey could not ignore the company representing !ndiaBs energy

securityB.

1.F.? O+3-7 *.+eer.+3 e&&r'

Ongc is the only fully integrated petroleum company in india, operating along the

entire hydrocar%on alue chainG

• Holds largest share /5@.=30 of hydrocar%on acreages in !ndia.

• Contri%utes oer 3 of !ndia s‟ oil gas production.

• ;ery si"th )& cylinder comes from O&C.

• A%out one-tenth of !ndian refining capacity.

• Created a record of sorts %y turning 6angalore 9efinery in petrochemicals

limited around from %eing a stretcher case for referral to 4!


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1. ASSETS/BASINS/PLANTS/INSTITUTES

Ae'/P8a+'

• 6um%ai igh Asset, 6um%ai

• eelam eera Asset 6um%ai

• 4assein *atellite Asset, 6um%ai

• ran )lant, ran

• a'ira )lant, a'ira

•Ahmeda%ad Asset, Ahmeda%ad

• Ankleshwar Asset, Ankleshwar

• 6ehsana Asset, 6ehsana

• 9a$amundry Asset, 9a$amundry

• :araikal Asset, :araikal

• Assam Asset, Assam

• #ripura Asset, Agartala

Ba.+

• 7estern Offshore 4asin, 6um%ai

• 7estern Onshore 4asin, 4aroda

• :. &. 4asin, 9a$ahmundry

• Cauery 4asin, Chennai

• Assam Assam-Ark an 4asin, Eorhat

• C46- 4)6 4asin, :olkata

•


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• ran )lant, ran

• a'ira )lant, a'ira


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Re3.+

• 6um%ai 9egion, 6um%ai

• 7estern 9egion, 4aroda

• ;astern 9egion, a'ira

• *outhern 9egion, Chennai

• Central 9egion, :olkata

I+'.':'e

•

:eshaa Dea 6alaiya !nsti. of )etroleum ;"ploration /:D6!);0,Dehradun

• !nstitute of Drilling #ech., /!D#0, Dehradun

• !nstitute of 9eseroir *tudies, Ahmeda%ad

• !nstitute of Oil &as )roduction #ech., ai 6um%ai

• !nstitute of ;ngineering Ocean #ech.,, ai 6um%ai

• &eo-data )rocessing !nterpretation Center /&;O)!C0, Dehradun

• O&C Academy, Dehradun

• !nstitute of )etroleum *afety, ealth ;ni. 6anagement, &oa

• !nstitute of 4iotechnology &eotectonic *tudies, Eorha

• *chool of 6aintenance )ractices, 4aroda

• 9egional #raining !nsti., ai 6um%ai, Chennai, *iasagar 4aroda

Ser.-e

• Chief Drilling *erices, 6um%ai

• Chief 7ell *erices , ew Delhi

• Chief &eo-)hysical *erices, Dehradun

• Chief ogging *erices, 6um%ai

• Chief ;ngineering *erices, 6um%ai

• Chief Offshore ogistics, 6um%ai


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• Chief #echnical *erices, Dehradun

• Chief !nfo-com *erices, ew Delhi

• Chief Corporate )lanning, ew Delhi

• Chief uman 9esource Deelopment, Dehradun


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1

• Chief ;mployee 9elations, Dehradun

• Chief *ecurity, ew Delhi

• Company *ecretary, ew Delhi

• Chief 6arketing, ew Delhi

• ead Corporate Affairs Co-ordination, ew Delhi

• ead Corporate Communication, ew Delhi

• Chief 6aterial 6anagement, Dehradun

• Chief ealth, *afety ;nironment, 6um%ai

• ead egal, ew Delhi

• Chief 6edical, Dehradun

• Chief !nternal audit, ew Delhi

• ead Commercial, ew Delhi

• Chief ;"ploration Deelopment, Dehradun

1;


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1

• *ome e"ploration Campaign Company inoles high technology, high

technology, high inestment and high risks.


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ONGC OFFICE ALL OVER INDIA

(DRAW NO.1 ONDC OFFICE ALL OVER INDIA)

1


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The Road Ahead

O&C is entering & /re-gasification0, )etrochemicals, power generation, as well

as crude and gas shipping, to hae presence along the entire hydrocar%on alue chain.

7hile remaining focused on the core %usiness of Oil &as ;), it is also looking at

the future promoting and applied 9D in alternate fuels /which can %e commercially

%rought to marked0.these efforts in integration are %asically to e"ploit the core

competency of the organi'ation knowledge of hydrocar%on, gained oer the fie

decades.

Ne B:.+e

O&C has also entured in Coal 4ed 6ethane /C460 and nderground Coal

&asification /C&0M C46 production would commence in =22?-2@ and C& in

=22-2+.

O&C is also looking at &as ydrates, as it is one possi%le source that could make

!ndia self sufficient in energy, on a sustained %asis.


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1.?.1.= Ma+3a8re Re&.+er, a+4 Pe'r-e.-a8 L'4 (MRPL)

69), a su%sidiary of O&C has turned %ack to a profit making company $ust inthe

Frd after O&C management control. O&C s‟

shareholding has increased from513to @1.?=3 in Eune HEuly =22F through the %uy-%ack of lenders e(uity at par, under the

mutually agreed De%t 9estructuring )ackage.

69) has showed e"cellent performance in the ery first year of its operation as

su%sidiary of O&C. #he performance in =22F-2 under all parameters was %etter

than the pro$ection made at the time of the ac(uisition. !t earned net profit of 9s,

5+.15 million as against a net loss of 9s.11.2? million in preious year. 69) is

no longer a potentially sick company as its accumulated losses hae gone down %elow

523 of the net worth on F1st

6arch =22. 69) was awarded highest L


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1;%;2;1 Pe'r +e' MHB L..'e4

O&C has ac(uired =F3 e(uity in )etro net 64 td, which is successfully

operating the F?=.Fkm product pipeline from 6angalore /69)0 to 4angalore ia

assan.

1.?.=.F ONGC I+'er+a'.+a8 Pr.a'e L..'e4 (ONGIO)

#his 52-52 E8 with !ndian Oil Corporation td / IOCL),in corporate on th

Eune =221

has incurred cumulatie loss of 9s. F2.1 million till F1st

6arch, =22. &ien

lukewarm co- promoter support, it was decided %y the O&C 4oard of

Director to withdraw from the E8 which is to %e dissoled. oweer, the

Department of Company Affair has not accepted application to wind up the

O&!O under sect ion 5?2 of the Companies Act 1+5?, on the ground that it

had carried on %usiness during the year =22F-2. ence, it will continue to e"it

without any actiities till it is finally wound up.

1.?.=. Paa+ Ha+ He8.-*'er L'4; (PHHL)

O&C inested in =1.53 of e(uity capital of ) which proides elicopter

serices primarily to O&C.


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1;%;1 ONGC GROUP OF COMPANIES

(DRAW NO5 2ONGC GROUP OF COMPANIES)


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1.@ BOARD OF DIRECTORS

Mr; R;S;Sara

Ca.ra+ = Ma+a3.+3 D.re-'r

Mr;D;9;Sara& D.re-'r (F.+a+-e)

Dr;A;9;Ba8,a+ D.re-'r (HR)

Mr;A;9;Ha>ar.6a D.re-'r (O+re)

Mr;N;9;M.'ra D.re-'r (O&&re)

Mr;P;9;De? D.re-'r

Mr; S:+@, . D.re-'r

Mr;M;M;C.'a8eD.re-'r

Mr;Ra@e V; Sa D.re-'r

Mr; U; S:+4arara@a+ D.re-'r

Mr;N;9;Na,,ar D.re-'r

Mr;P;9;S.+a D.re-'r


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(Crc structure)

1. ONGC Or3a+3ra

(DRAW NO5 ONGC STRUCTURE)


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1.+ ABOUT MEHSANA ASSET5

6ehsana asset is the largest oil production onshore asset. mehsana tectonic %lock is

fairly well e"ploration productie %lock of north com%at with nearly four decades

e"ploration history. #he e"ploration, deelopment e"ploration actiities are %eing

undertaken in asset intended. #he earliest success was achieed in 1+?@ with

discoery of north kadi field, largest oil %lock of mehasana %lock. Oil in mehsana

%lock is heay as well as light.

#he oil field with low graity A)! graity high iscosity are santhal, %alol, and

%echara$i lana. Oil field with moderate A)! graity is north kadi, sho%hasan,

$otana,nandasan, linch langna$.

6ehsana %lock encompasses ?222s(uare kilometres. ;"ploration success for large

small fields came a%out simultaneously in the first decades. *o far = filed hae %een

discoered. #he peak production was achieed in the ==nd

year of it e"istence. #he

decline has %een arrested now production has %een increasing from 1+++. #he

reial has achieed through %etter reseroir management, implementation of

different !O9 ;O9.

;"ploration today s‟ focused on su%tle traps of small amplitude entrapment

situation. Current effort is %est with pro%lem related to shield of middle scone market

especially thick coals, which tends to mask seismic reflection from deeper section.

#he ma$or oil field of mehsana asset hae %een operating for last =5 year.23 of well

operate of artificial lift. A%out 22 works oer operation are carried ot eery year.

Despite pro%lems related to aging, asset has %etween a%le to pag down the sick well

inentory well under control.

As a mehsana of %uild up to date for future coal %ed methane e"ploration, a num%er of

coal cores hae taken from sho%hasan filed as a part of 9 D efforts, this howeer

will go a long way in chalking out strategy for C46 e"ploration. #wo wells drilled

for underground coal gasification in mehsana city were ealuated for utility

e"ploration of C&. it is estimated that the asset has ?F %illons tones of local reseres

at the depth of @22 to 1@22 masters with e"pected produci%le energy of 15222 4C6.


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2

#he mehsana pro$ect came into @th

no 1+?@ when it has %ifurcated from Ahmada%ad

to facilitate administratie operational conenience.

•


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Year

2012

BRIEF OVERVIEW OF FINANCE

DEPARTMENT

=

2.1•MEHSANA FINANCEDEPARTMENT STRUCTURE

2.2

•INTRODUCTION OF VARIOUSFINANCE SECTIONS

2.3

•FINANCIAL INFORMATION OFTHE COMPANY


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LTD

a

21


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2

2;1) MEHSANA FINANCE DEPARTMENT

STRUCTURE

GENERALMANAGER(F=A))

CHIEFMANAGER(F=A)

INCHARGECENTR

ALA/C

INCHARGE

ASSETA/CINCHARGECOSTING/WELLS

/IUT

INCHARGECASH/B

AN9

INCHARGEPREAUD

IT

INCHARGEBUDGE

T

INCHARGE PCS

(DRAW NO5" MEHSANA FINANCE DEPARTMENT STRUCTURE)


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=.=0 INTRODUCTION OF VARIOUS FINANCE

SECTIONS

=.=.1 BUDGET SECTION5

I+'r4:-'.+

nder the guidance of 6r. 8ishal sir. ! came to reali'e the importance of %udgeting.

!n O&C, the %udget section plays a ery important and crucial role. #he reason is

that wheneer there is re(uirement of any kind of material or serice, proper

arrangement of fund is re(uired and for that purpose %udgeting is done. Due to

restriction on num%er of pages for pro$ect report, eery detail of %udget is not

coered.

B:43e'ar, -+'r8 4e&.+.'.+

4udgetary control is a techni(ue where%y actual utili'ation is compared

with %udgets to make the %udget an effectie financial control tool. Any

differences ariances are the responsi%ility of ke y indiiduals who can either

e"ercise control action or reise the original %udgets after proiding necessary

$ustifications to the top management. 4udgetary control is defined %y the !nstitute of

Cost and 6anagement Accountants /C!6A0 asG #he esta%lishment of %udgets relating

the responsi%ilities of e"ecuties to the re(uirements of a policy, and the continuous

comparison of actual results with %udgeted results, either to secure %y indiidual

action the o%$ectie of that policy, or to proide a %asis for its reision

B:43e'.+3 Pr-e .+ ONGC

&eneral


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logging department etc. according their future needs and at last the clu% it in to the

actual %udget.

=.=.= CASH AND BAN9 SECTION

#his section is responsi%le for the receipts and payments either in cash or che(ue or

%y any other form. #his section is also responsi%le for the custody of cash, documents

in respect of inestments of corporation money and other important documents. 6a$or

actiities perform %y cash %ank section

• Cash withdrawal from %ank.

• Cash payments and receipts.

• )ayments and receipts/other than cash0

• Che(ue management

• 9egular payments on %ehalf of employees.

• 9emittance of ta" deducted at source.

• Dispatch of released payments.

• i(uidity for cast and fund management.

• 6!* actiities.

• !n O&C the endors payments are done %y the 6um%ai head(uarter

• And employees salaries are done %y the Dehradun head(uarter.

• 8arious fees for issuing tender forms to our suppliers are collected %y cash

and %ank section.

• ;arnest money deposit/;6D0

• *ecurity deposit /*D0

=.=.F PRE AUDIT SECTION

#his section is also known as accounts paya%le section. #he section is diided into

two parts H one is pre-audit supply cell and other is pre-audit serice contract cell.

)re-audit is also known as oucher-audit or administratie audit and denotes scrutiny

e"amination, %efore releasing the payments. #ypes of 4illsG


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• *upplier ‟s 4ills

• Contractor ‟s 4ills


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6iscellaneous payments the scope of )re-audit also includes scrutiny of receipts of

the corporation. Actiities normally regarded as pre-audit receipt-accounting for

incoming cash, such asG

• !nitial pu%lic offering /!)O0

• 4ank drafts%anker ‟s che(ue

• 4ank guarantees.

• 9eceipts of


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• Accounting for full final settlement on separation of employees.

• )ayment to retired employees.


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• !nter unit transfers and deputations tofrom the Company.

• #a" Deducted at *ource deductions and deposits

• Accounting for retirement %enefits and related employee %enefits.

=.F0FINANCIAL INFORMATION OF THE COMPANY

=.F.1 A--:+'.+3 *8.-.e

#he company follows the accrual method of accounting. #he company has followed

the entire applica%le accounting standards mad mandatory %y institute of chartered

accountants of !ndia.

=.F.= E:.', -a*.'a8

#he fully paid up e(uity capital of the company was as. During the year under reiew

there was no change in the e(uity capital structure of there is no issued preference

capital in sterling ceramic ltd. #here is no warrant waiting to %e coered into e(uity.

early percent of company e(uity is comprised of %onus shares. #he company last

made a %onus issue in issuing two %onus shares for one share held in the company.

=.F.F La+

Oil and natural gas corporation ltd loan fund decreased form in the preious year to

during the year. During the current year the ratio of secured long term funds to

tangi%le net worth increased to in the preious year.

=.F. F.e4 ae'

#he gross and net %lock of the company as on were and respectiely. )lant and

machinery constituted of the gross %lock and net %lock respectiely.

=.F.5 De*re-.a'.+

Depreciation accounted for in the current year compared to in the preious year

compared to in the preious year. #here is no change in the accounting policy for

depreciation oer the last year.


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=.F.? Cr*ra'e 'a

!n iew of loss during the year under reiew, the company has not proided for any

ta" lia%ility this year also.

=.F.@ De?'r

During the year under the reiew the sundry de%tors were compared to in the preious

year representing of sales compared to of sales !n the preious year. #he sundry

de%tors are net of proision for dou%tful de%ts of the increase in sundry de%tors are

due to market conditions.

=.F. I+e+'r.e

!nentories decreased from in the preious year to during the current year to during

the current year. Of this finished goods, raw material and spares inentory of stock in

process howeer increased.

=.F.+ Wr6.+3 -a*.'a8

#he working capital gap during the current year was lower at which is lower than in

tha preious year. #he working capital of is founded %y %ank %orrowing to the e"tentof and the %alance is founded out of company s‟ own resource. ;ach rupee of working

capital generated of gross turnoer in the current year compared to in the preious

year. Oil and natural gas corporation ltd shall continue to make to further improe

working capital management %y stricter control oer inentories and %ook de%ts.

=.F.12 Reere

Oil and natural gas corporation ltd reseres stood at as on nearly per cent of the

company s‟ reseres were earned. )er cent comprised capital reseres. #here were no

realuation reseres as on. During the year under reiew a *am of representing items.


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Year

2012

BALANCESHEET

ANALYSIS

F

;1

•INTRODUCTION TOBALANCESHEET

;2

•BALANCE SHEET

28


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LTD


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2

F.1 INTRODUCTION TO BALANCESHEET

A %alance sheet is a list of assets and lia%ilities and claims of a %usiness at somespecific point of time and is prepared from an ad$usted #rial 4alance. !t shows the

financial position of a %usiness %y detailing the source of funds and utili'ation of

these funds. 4alance *heet shows the assets and lia%ilities grouped, properly

classified and arranged in a specific manner.

USES OF BALANCE SHEET

•

!t ena%les us to ascertain the proprietary interest of a person or %usinessorgani'ation.

• !t ena%les us to calculate the actual capital employed in the %usiness.

• #he lender can ascertain the financial position of the %usiness.

• !t may sere as the %asis for determining purchase consideration of the

%usiness.

• Different ratio can %e calculated from the 4alance *heet and these ratios can

%e utili'ed for %etter management of the %usiness.

LIMITATION OF BALANCE SHEET

•


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Balance Sheet ------------------- n Rs. Cr. -------------------

Application Of Funds

F.= BALANCE SHEET

BALANCE SHEET OF ONGCAS ON 1ST

MARCH

Sources

!ar"

!ar"

!ar"

!ar"

!ar"

12 12 12 12 12

unds

!otal Sare 4"277.7 2"138.8 2"138. 2"138. 2"138.8

#apital

$%uit& 4"277.7 2"138.8 2"138. 2"138. 2"138.8#apital

Sare 0.00 0.00 0.00 0.00 0.00

Applica

tion

(reference 0.00 0.00 0.00 0.00 0.00

Sare

)eser*es 93"226. 8+"143. 76"+96 68"478 +9"78+.

)e*aluation 0.00 0.00 0.00 0.00 0.00

)eser*es

,et-ort 97"+04. 87"282. 78"73+ 70"617 61"923.

Secured 0.00 0.00 0.00 0.00 0.00

/nsecured 17"+64. 16"40+. 16"03+ 12"482 1+"109.

oans

!otal et 17"+64. 16"40+. 16"03+ 12"482 1+"109.

!otaliailities

11+"068.69

103"688.2+

94"771.12

83"100.11

77"033.00

ross loc 80"938. 71"++3. 61"3++ +7"463 +2"038.

ess5 62"299. ++"90+. +0"941 46"94+ 43"198.

epreciatio

,et loc 18"639. 1+"648. 10"414 10"+18 8"839.1


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3

#apital 6+"3+4. +6"073.2+ 41"1+4 37"794.

(roress

n*estment +"332.8 +"772.03 +"899. +"702.0

n*entories 4"118.9 4"678.+7 3"480. 3"033.7

Sundr& 3"84+.9 3"0+8.64 4"360. 2"7+9.4

#as and 3+6.++ 282.8+ 161.48 269.22 27.42

alance

!otal 8"321.4 8"020.06 8"110. +"820.6

Assets

oans and 64"693. 63"721.90 38"906 +8"710.

Ad*ances

Fied 22"090. 17"948.18 22"148 19"2+3.

!otal #A" 9+"10+. 89"690.14 69"16+ 83"784.

: Ad*ances

e;ered 0.00 0.00 0.00 0.00 0.00

#urrent 3+"384. 27"244.+3 22"482 19"83+.

iailities

(ro*isions 34"77+. 37"092.46 21"828 39"76+.

!otal # : 70"1+9. 64"336.99 44"311 +9"601.

(ro*isions

,et #urrent 24"94+. 2+"3+3.1+ 24"8+4 24"183.

Assets

'iscellaneo 796.03 841.32 6+0.61 673.90 +14.06

$penses

!otal Assets 11+"068.70

103"688.2+ 83"100.12

77"032.98

#ontinent 38"979. 39"178.+4 26"006 34"1+7.

iailities

oo


42/125

INTERPRETATION5$

#he %alance sheet is the statement showing the increase or decrease in the

assets and lia%ilities. #his indicates the change in capital structure as well as

increase or decrease in assets.

Owner ‟s fund increases %y =1F.@ Crore in =211 as compared to %ase year

=22@. #he reseres surplus is also get increase in last four years ery

rapidly. !t increases %y FF1.?F Crore in =211 as compared to %ase year

=22@.

)roportion of the de%t in capital structure is decrease that is in=22@%orrowing

de%t is 15,12+.2@ Crore and in =22 de%t is 1=,=.@1 Crore. *o, it is decrease

%y +?.F.after ne"t three year continues increase.

#he %alance sheet also shows the %alance of assets and other inestment made

%y the company. #he gross fi"ed assets are increased in =22 %y 1?@.+2

Crore as compared to preious year =22@.

#he inestment is also increase in =22 %y [email protected] Crore as compared to

preious year. After the inestment is also decreases in =22+ %y 22.1 crore

as compared to preious year. And in =212 it is increase than =22+ after than it

is a decrease in =211 %yF+.1+ crore. #he oerall inentory turnoer ratio

shows the good position of the company is good.

7e also conclude that the li(uid position of the company is good %ecause

Current Assets are increase year %y year.


43/125

6"000.00+"800.00

+"702.0+

In'estents+"899.+0+"772.03

+"600.00+"400.00

+"332.84

+"200.00+"000.00

+"090.32n*estments

4"800.004"600.00

2007 2008 2009 2010 2011

INVESTMENT CHART5$

Car' +51

INTERPRETATION5$

#he inestment is also increase in =22 %y [email protected] Crore as compared to

preious year. After the inestment is also decreases in =22+ %y 22.1 crore

as compared to preious year. And in =212 it is increase than =22+ after than it

is a decrease in =211 %yF+.1+ crore as compare to preious year. #he oerall

inentory turnoer ratio shows the good position of the company is good.


44/125

Year

2012

P9O

AA>*!*

";1

•INTRODUCTION TO PROFIT ANDLOSSACCOUNT

";2•PROFIT = LOSS ACCOUNT

OIL AND NATURAL GAS CORPORATION LTD

34


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3

";1) INTRODUCTION TO PROFIT AND LOSSACCOUNT

#he )rofit oss account is also known as the income statement. !t can %e defined as

a report that summaries the reenues and e"penses of an accounting period to reflect

the changes in arious critical areas of firm s‟ operation. !t is of greatest interest and

import and importance to end-users of accounting statements %ecause it ena%les them

to ascertain whether the %usiness operations hae %een profita%le or not during that

particular period.

#he important destination %etween the %alance sheet and income statement is for a

period of one year. #he two %road categories of item shown in the income statement

are reenue and e"penses. 9eenues deried from a company‟s operation say

manufacturing and selling products. During transaction %usiness has also incurred

reenues other than main %usiness operation. ;"penses are occurred in day-to-day

transactions.

ere, e"penses regarding manufacturing actiities, office and administratie e"penses

are considered. 4y deducting total e"penses from total reenue we get prof it

and %y deducting total reenue from total e"penses we get total loss. !ncome ta"

amount is also decided %y profit that incurred in %usiness with help of this statement.


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";2 )PROFIT = LOSS ACCOUNT

r*+t , L*ss acc*unt ------------------- n Rs. Cr. -------------------

'ar 'ar 'ar 'ar 'ar ?07

12 12 12 12 12 mts

Inc*eSales !urno*er 66"487. 60"470 64"342 60"466 +7"190.

$cise ut& 322.8+ 218.41 338.2 401.38 276.73

,et Sales 66"164. 60"2+1 64"003 60"06+ +6"913.

Oter ncome +"028.0 3"61+. 4"08+. 4"228. 3"107.0

Stoc 12.91 118.04 81.10 114.11 @19.73

*tal Inc*e &1/#0. 2$% %1& 33# ####.

E45en6ture

)a- 'aterials 2"790.6 2"431. 10"90+. 8"424. 8"177.2

(o-er : Fuel 28+.60 260.38 270.79 317.1+ 320.28

$mplo&ee #ost 6"44+.1 +"618. 4"+36.8 +"843. 3"974.7Oter 'anufacturin

32"098.77

26"6+2.82

19"+78.49

17"184.+1

1+"616.76

Sellin andAdmin

@16"+6+.

@ 13"24

@4"470.7

@2"328.

@+60.70

'iscellaneous

492.78 947.6+ 1"011.04

983.74 1"079.27

(reoperati*e $p

0.00 0.00 0.00 0.00 0.00

!otal $penses 2+"+47. 22"667 31"831. 30"424 28"607.

'ar ?11 'ar 'ar ?09 'ar 'ar ?07

12 12 12 12 12 mts

O5eratn7 40"629. 37"702 32"2+3. 29"7+4 28"286.(! 4+"6+7. 41"318 36"338. 33"983 31"393.

nterest 11"133. 11"276 8"48+.4 +"016. 3"724.8

(! 34"+24. 30"041 27"8+3. 28"966 27"668.

epreciation 6"83+.0 +"242. 4"3++.6 3"91+. 3"292.8

Oter ritten 0.00 0.00 0.00 0.00 0.00

r*+t Be8*re 27"689. 24"799 23"497. 2+"0+0 24"37+.

$tra@ordinar& +47.70 183.99 790.68 607.2+ @+64.27

(! =(ost$tra@ord

28"236.76

24"983.01

24"288.49

2+"6+7.66

23"811.26

!a 9"177.+3

8"2+8.73

8"437.78

8"941.8+

8"041.02

Re5*rte6 Net

18"924.00

16"767.+6

16"126.32

16"701.6+

1+"642.92

!otal


47/125

20"000.001+"642.92

16"701.6+

A16"126.32 18"924.00

16"767.+6

1+"000.00

10"000.00pat

+"000.00

0.00

2007 2008 2009 2010 2011

er share 6ata (annualse6)

Sares in issue 8+"++4 21"388 21"388. 21"388 21"388.

Earnn7er Share

22.12 78.39 7+.40 78.09 73.14

$%uit& i*idend 33+.00 330.00 320.00 320.00 310.00

oo 113.97 408.08 368.12 330.16 289.+2

Ta?8e +52

PAT CHART 5$

R; -r

Car' +52


48/125

INTERPRETATION5$

#he profit and loss account of the company shows the oerall income and

e"penditure, made %y the company in a particular time period. #he difference %etween

the de%it and credit side of the ) account, shows the net profit or net loss.

ere, the profit and loss account of the company shows the satisfactory leel %ut as

compared to preious year the e"penses of the company is increases. ere the

sales turnoer is increase year %y year. #he operating income in =212 is ?2,@2.1

and now it is increase %y [email protected] Crore 9s. in =211. *o, %y this way the net

profit of the company is increase %y =15?. in =211 as compared topreious year .

7hile on the other side the e"penditure shows the e"penses meet %y the company in a

particular period. #he e"penditure met %y the company is highest in =22+, while in

other year the e"penditure of the company are increases. # h e oerall analysis of

the e"penditure side of the company shows the aerage increase in e"penses of

the company.

After analy'ing the income and e"penditure side of the company, there is difference

%etween %oth sides which is known as the net profit loss. #he net profit of the

company shows an oerall increase year %y year. !n =22@ it is 1


49/125

Year

2012

THEORETICAL BAC9GROUND

OF WOR9ING CAPITAL

MANAGEMENT

5


50/125


LTD

39


51/125

4

< ;1 MEANING OF WOR9ING CAPITAL5$

!n simple words working capital means that which is issued to carry out the day to day

operations of a %usiness. Capital re(uired for a %usiness can %e classified under two

main categories

•


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53/125


54/125

W*r9 n r*7ress

Fnshe6 G**6s

Cash Sales

Ra: !ateral

Cash C*llect*n 8r* De;t*rs

Cre6t Sales

Sales

5..1 OPERATING CYCLE

“Operating cycle is the time duration requires for converting sales into

cash after the conversion of resources into inventories.”


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!f the length of the operating cycle has short length period then less working capital is

re(uired. *o working capital re(uirement is directly related with operating cycle.

Operating cycle may %e of two types

1. &ross Operating cycle

=. et operating cycle

1. Gr O*era'.+3 -,-8e

&ross Operating cycle is the total time period from the conersion of 9aw 6aterial

into finished goods and finished goods into sales and then sales into cash.

GOC C

5..= WOR9ING CAPITAL REUIREMENT FOR THE ANTICIPATED

NEEDS FOR FUTURE

#hese needs may %e of 9aw 6aterial or


56/125

5.5.DETERMINENTS OF WOR9ING CAPITAL


57/125

5.5. Pr4:-'.+ P8.-,5

)roduction policy also determines the working capital leel of a firm. !f the firm has

steady production policy, it may re(uire need of continuous working capital. 4ut if

the firms adopt a fluctuating production policy means to produce more during the lead

demand season then the more working capital may re(uire at that time %ut not in other

period during a financial year. *o the different productions policy arise different type

of need of working capital.

!f the policy is to keep production steady %y accumulate inentories it will re(uire

higher working capital.

Oil and gas corporation ltd s‟

)roduction policy is not steady so 9e(uirement of

working capital is less.


58/125

4

5.5. Pr.-e Lee8 Ca+3e5

Changes in the price leel also effects the working capital re(uirements. &enerally,

the rising prices will re(uire the firm to maintain larger amount of working capital as

more funds will %e re(uired to maintain the same current assets.

5.5.+ O'er Fa-'r5

Certain other factors such as operating efficiency, management a%ility, irregularities

of supply, import policy, asset structure, importance of la%our, %anking facilities, time

lag. ;tc. also influence the re(uirement of working capital.

*o these are the main determinants of working capital. #he importance of influence of

these determinants on working capital may differ from firm to firm

5.?MEANING AND NATURE OF WOR9ING CAPITAL

MANAGEMENT

#he management of working capital is concerned with two pro%lems that arise in

attempting to manage the current assets, current lia%ilities and the inter relationship

that asserts %etween them.

#he %asic goal is working capital management is to manage current assets and current

lia%ilities of a firm in such a way that a satisfactory of optimum leel of working

capital is maintained i.e. it is neither inade(uate nor e"cessie. #his is so %ecause %oth

inade(uate as well as e"cessie working capital position is %ad for %usiness.

5.@MAOR DECISIONS IN WOR9ING CAPITAL

MANAGEMENT

#here are two ma$or decisions management relating to working capital managementG-

1. 7hat should %e ratio of current assets to salesP

=. 7hat should %e the appropriate mi" of short term financing and long term

financing for financing these current assetsP

[email protected] C:rre+' ae' .+ re8a'.+ ' a8e

!f the firm can forecast accurately the factors, which effect the working capital, the


59/125

4

inestment in current assets, can %e designed uni(uelyP 7hen uncertainty

characteristics the a%oe factors, as it usually does the inestment in current assets


60/125

cannot %e specified uni(uely. !n case of uncertainty, the outlay on current assets

should consist of %ase component meant to meet normal re(uirement and a safety

component meant to cope with unusual re(uirement. #he safety component depends

upon low conseratie or aggressie in the current assets policy of a firm. !f the firm purchases a ery conseratie current asset policy it would carry a high leel of

current assets in relation to sales. !f a firm adopts a moderate current assets policy it

would carry moderate leel of current assets in relation to sales, finally is a firm

follows a highly aggressie current assets policy, it would carry a low leel of current

assets in relation to sales.

5.@.= De'er.+.+3 a Sr' Ter a+4 L+3 Ter F.+a+-.+3 M. &r F.+a+-.+3 &

-:rre+' ae'

#here are three approaches in this regard, which are discussed %elowG

5.@.=.1 HEDGING APPROACH

#his approach is also called matching approach. !n this approach there is a proper

matching of e"pected life of asset with the duration of fund. sually, according to this

approach long-term sources are used for financing permanent current assets and fi"ed

assets short-term sources are used for financing temporary current assetsG

!emporar& current assets

Sort term nancin

Assets (ermanent currentassets

Fied Assets

on term nancin

!ime

DRAW NO5# HEDGING APPROACH


61/125


62/125

5.WOR9ING CAPITAL ANALYSIS

5..1. ANALYSIS ON THE BASIS OF SCHEDULE OF CHANGES IN

WOR9ING CAPITAL

SCHEDULE OF CHANGES IN WOR9ING CAPITAL

(RS;-r)

(A)!#/A) 2011 2010 ,#)$AS$ $#)$AS$

#/))$,!

n*entories 4"118.98 4"678.+7 +++9.+9

S. detors 3"84+.90 3"0+8.64 787.26

#as :an

3+6.++282.8+

73.7

oans:

64"693.91 63"721.90 972.01

!otalcurrent

73"01+.34 &1&31.$

#/))$,!

iailities:

70"1+9.+0 64"336.99 +822.+1

!otalcurrent

70"1+9.+0 64"336.99

orin

capital =A@

28++.84 7404.97

,etincrease

76++.48

;A9* =211 AD =212

As we hae a look on the schedule of changes in working capital for the

company oer the years =212 and =211, we find that, among in current assets, oan

Adances, sundry de%tors and Cash 4ank 4alance hae shown increment from

year =212 to year =211. #he inentories hae got decreased in the same years.

Among the current lia%ilities, lia%ilities )roision hae increase. *o the oerall

net working capital has decreased.


63/125

WOR9ING CAPITAL ANALYSIS

1 ANALYSIS ON THE BASIS OF SCHEDULE OF

CHANGES IN WOR9ING CAPITAL

SCHEDULE OF CHANGES IN WOR9ING CAPITAL

(RS;-r)

(A)!#/A) 2011 2010 ,#)$AS$ $#)$AS$

#/))$,!

n*entories 4"118.98 4"678.+7 +++9.+9

S. detors 3"84+.90 3"0+8.64 787.26

#as :an

3+6.++282.8+

73.7

oans :

64"693.91 63"721.90 972.01

!otalcurrent

73"01+.34 &1&31.$

#/))$,!

iailities:

70"1+9.+0 64"336.99 +822.+1

!otalcurrent

70"1+9.+0 64"336.99

orincapital =A@

28++.84 7404.97

,etincrease

76++.48

;A9* =211 AD =212


company oer the years =212 and =211, we find that, among in current

assets, oan Adances, sundry de%tors and Cash 4ank 4alance hae

shown increment from year =212 to year =211. #he inentories hae got

decreased in the same years. Among the current lia%ilities, lia%ilities

)roision hae increase. *o the oerall net working capital has decreased.


64/125

(RS. Cr)

(A)!#/A)S 2009 2008 ,#)$AS$ $#)$AS$

#/))$,!

n*entories 4"060.67 3"480.64 +80.03S. detors 4"083.80 4"360.37 276.+7

#as :an

161.48 269.22 107.74

oans :Ad*ances

++"964.02 38"906.+3 170+7.49

!otalcurrent

3/$.$& 3.&

#/))$,!

iailities:

+7"+12.09 44"311.11 13200.98

!otalcurrent

+7"+12.09 44"311.11

orincapital =A@

67+7.88 270+.6+

,etincrease

30838.+

;A9* =22+ AD =22


company oer the years =22 and =22+, we find that, among in current

assets, oan Adances, and Cash 4ank 4alance, inentories hae

shown increment from year =22 to year =22+. #he sundry de%tors hae

got decreased in the same years. Among the current lia%ilities, lia%ilities

)roision hae increase. *o the oerall net working capital has increase.


65/125

=)s.cr>

(A)!#/A) 2008 2007 ,#)$AS$ $#)$AS

#/))$,!

n*entories 3"480.64 3"033.7 446.88

S. detors 4"360.37 2"7+9.4 1600.93

#as :an

269.22 27.42 241.8

oans :

38"906.+3 +8"710.79

19804.26

!otalcurrent

3.&

64+31.41

#/))$,!

iailities:

44"311.11 +9"601

.191+290.08

!otalcurrent

44"311.11 +9"601

.19

orincapital =A@

270+.6+ 4930.22

,etincrease

2047.81

;A9* =22@ AD =22


company oer the years =22@ and =22, we find that, among in current

assets, sundry de%tors, Cash 4ank 4alance, inentories hae shown

increment from year =22@ to year =22. #he oan Adances and

hae got decreased in the same years. Among the current lia%ilities,

lia%ilities )roision hae decrease. *o the oerall net working capital

has decrease.


66/125

Year

2012

MANAGEMENT OF

INVENTORY

?

%;1

•NATURE OF INVENTORIES

%;2

•OBECTIVES OF INVENTORY

MANAGEMAENT

?.F

•ANALYSIS OF EFFICIENCY OF INVENTORY MANAGEMENT IN ONGC

+3


67/125

OIL AND NATURAL GASCORPORATION LTD


68/125

? MANAGEMENT OF INVENTORY

!nentory is ery important part of current assets. Appro"imately ?23 part of

current assets is inentories. *o the proper management of inentory is

re(uired for successful working capital management. As the larger amount

of funds is inoled in the inentories, so it must %e carried with care for

proper utili'ation of funds.

1 ,ature of n*entories

!n inentories we includeG

a Ra Ma'er.a85 #here are those %asic inputs which are conerted into

work-in- progress after the manufacturing process. O&C purchased

9aw materials as a 9ough )lastic for production and storage purpose.

% Wr6$.+$Pr3re: #hese inentories are semi-manufactured products.

#hese products are those which are ready for sale. )roduct as a pipes,

pumps,etc.

c F.+.e4 G45 #hese are completely manufactured products. #hese

products are those which are ready for sale. !n ongc finished product of

pipe, pumps and etc.

ere is one another type of inentory also which is not directly related

with production %ut facilitate in production process. #hese inentories

are known as supplies. Cleaning material, oil, fuel, electric tu%e etc are

the supplies.

2 OB$#!


69/125

#o make ade(uate inestment in inentories so that funds can %e %est

utili'ed.

*mooth production in present and future.

#ime aaila%ility of inentories.

*mooth and uninterrupted sale processes.

6inimi'e the cost related with inentories.

#o meet the future price change.

#o get ade(uate return on inestment.


70/125

F A,ACSS OF $FF#$,#C OF,


71/125

In'ent*r? urn*'er Rat*8.73

9876+43210

7.34 8

4.664.33

n*entor& !urno*er )atio

2010@112009@102008@092007@082006@07

I+e+'r, T:r+er Ra'.5

(Rs.cr)

(articular 2010@11

2009@10

2008@09

2007@08

2006@07

#OS 20+06. 18933. 2766+. 26082. /00/#A*. n*entor& 4398.0 4369.6 3770.6 32+7.2 /$/2.

n*entor&

!urno*er

4.66 4.33 7.34 8.00 8.73

Ta?8e +5

Anal?ss@

#art no53

#he inentory turnoer ratio is increasing in the year =22@ after ne"t

year in =22 and =22+ and =212 it is consistently decreasing. 7hich

indicates that its performance in terms of generating cash flow is

decreasing in this year %ecause the companiesQ cash flow has %locked

in inentoriesP oweer, in =211 the ratio increased %y 2.FF than

preious year, which is a positie sign.


72/125

Year

2012

RATIO ANALYSIS

@

1 •UTILITY OF RATIO ANALYSIS

2 •CLASSIFICATION OF RATIO

OIL ANDNATURAL GAS

+7


73/125

LTD


74/125

TIO ANALYSIS

9atio analysis is a widely used tool for financial analysis. !t is defined as the

systematic use of ratio to interpret the financial statement, so that the

strength and weakness of a firm as well as its historical performance and

current financial condition can %e determined. #he term ration refers to the

numerical and (uantitatie relationship %etween two itemsaria%les. #he

relationship can %e e"pressed asG-

1 )ercentage

=


75/125


76/125

1 Pr&.'a?.8.',

seful information a%out the trend of profita%ility is aaila%le from the

profita%ility ratios. #he gross profit ratio, net profit ratio and ratio of

return on inestment gie a good idea of profita%ility of %usiness.

= L.:.4.',

!n fact, the use of this ratio is to ascertain the li(uidity of the %usiness. #he

current ratio and li(uid ratio will tell whether the %usiness will %e a%le

to meet its current lia%ilities as and when they mature.

F E&&.-.e+-,

#he turnoer ratio are e"cellent guides to measures the efficiency of

managers.


77/125

@ Ue&:8 &r 4e-..+ a6.+3

9atios guide the management in making some of the important decision.


78/125

2 #ASSF#A!O, OF )A!O

9atios can %e classified into four %road groupsG-

1 i(uidity 9atio

= eerage Capital structure 9atio

F )rofita%ility 9atio

Actiity ;fficiency 9atio

1 LIUIDITY RATIOS

i(uidity is the most important factor in successful financial management. A

firm should hae enough money to meets its short-term lia%ilities, as and

when they %ecome due for payment. !f affirm fails to meet its short term

lia%ilities fre(uently, its prestige and creditworthiness would %e adersely

affected. A ery high degree of li(uidity is also %adM idle assets earn

nothing. #herefore it is necessary to strike a proper %alance %etween high

li(uidity and lack ofi(uidity.

1 C:rre+' Ra'.5

#his most widely used ratio shows the proportion of current assets to current

lia%ilities. !t is also known as R7orking Capital 9atioQ. !t is a measure of

short term financial strength of %usiness a n d shows whether the %usiness

will a%le to meet its current lia%ilities. &enerally, it is %elieed that ratio of

=G1 is good and shows a comforta%le working capital position. 4ut this

ratio i s differing company %y company. #he formula for calculating these

ratios as underG-


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Current 9atio S Current Assets

Current ia%ilities


80/125

C:rre+' ae' 5

(Rs. n cr)

(articulars 2010@ 2009@ 2008@ 2007@ 2006@07

n*entories 4118.98 4678.+7 4060.67

3480.64

2#22.&

etors 384+.90 30+8.64 4083.8 4360. /&0$.3

#as D analance

3+6.++ 282.8+ 161.48 269.22

/&.//

oans D Ad*. 64693.9 63721.9 ++964. 38906 0%&1#.

Fied eposites 22090 17948.1 18934 22148 1$/02.

!otal #urrentAssets 9+10+.34 89690.14 83204.71 6916+.19 83784.78

C:rre+' 8.a?.8.'.e 5

(Rs.cr)

(articulars 2010@11

2009@10 2008@09

2007@08

2006@07

iailities 3+384.31

27244.+3 268+4.71

22482.94

1$%20.$$

(ro*isions 3477+.19

37092.46 306+7.98

21828.17

2$&0./#

!otal

#urrent

$.0#

322.$$ 0&01/.#$

33211.11

0$#1.1$

C:rre+' Ra'.5

(RS .cr)(articular 2010@ 2009@10 2008@09 2007@ 2006@07

#urrent 9+10+.3 89690.14 83204.7 6916+. %2&%3.

#urrent 701+9.+ 64336.99 +7+12.0 44311.1 59601.19

#urrent )atio 1.36 1.39 1.4+ 1.+6 1.41

Ta?8e +5"


81/125

Current Rat*

1.61.++

1.+

1.+6

1.4+1.41

1.4+1.41.3+1.31.2+

1.391.36 #urrent

)atio

2010@112009@102008@092007@082006@07

Car' +5"

INTERPRETATION5$

#his calculation implies that the fluctuation in the current ratio. As

compared to preious year the current yearQs ratio shows the %etter

li(uidity position. !n =22@ this ratio is 1.1G1 and in =22 the ratio is

1.5?G1 which shows increase in li(uidity. #he reason %ehind that cash

%alance and receia%le is increasing. 4ut after ne"t three year the ratio

is contently decrease.


82/125

= A-.4 Te' / :.-6 Ra'.

#he Acid test ratio is the ratio %etween (uick current assets and current

lia%ilities and is calculated %y diiding the (uick assets %y the li(uid

lia%ilities. 6ost people %eliee that li(uid ratio is acid test ratio, %ut

sometimes %usiness is a%le to repay its li(uid (uick assets. #he reason

%ehind that is emergency re(uirement cash and %usiness cannot get it

from de%tors, so (uick assets include cash %alance Kinestment certificate

that can %e immediately transfera%le into cash. #he satisfactory ratio is 1G1

%ut lower limit is 2.5G1. ere (uick assets do not include stock.

:.-6 Ra'. :.-6 Ae' (C:rre+' ae'

I+e+'r.e)C:rre+' L.a?.8.'.e

G:.-6 A00e'05

(Rs.cr)

Par'.-:8ar 2010@11 2009@10 2008@09

2007@08

2006@07

*tal

Curre

9+10+.34

89690.14

83204.71

6916+.19

%2&%3.&%

In'ent*res 4118.98 4678.+7 4060.67

3480.64

2#22.&

:.-6 Ae' !0!%;%


83/125


84/125

preious year in current year it is not good. !n =22+-12 it is 1.F=G1

and in current year it is 1.F2G1.


85/125

2 #A(!A S!)/#!/)$D$


86/125

artculars /#1#-11 /##$- /##%-#$ /##&- /##-

Secure6 @ @ @ @ -

Bnsecure6 17+64.26 1640+.6 1603+.7 12482. 101#$

*tal De;ts 17+64.26 1640+.64 1603+.70 12482.71 101#$.#&

Ca*.'a8 E*8,e45

(Rs.cr)

artcular /#1#-11 /##$-1# /##%- /##&- /##-#&

Share 97+04.43

87282.61

7873+.42

70617.40

1$/2.$2

8un6s

*tal 17+64.2 1640+.6 1603+. 12482. 101#$.#&

Ca5talE5l*?

e6

110#%.$ 1#2%%./0 $3&&1.1/ %21##.11 &.##


87/125

De;t Rat*0.2

0.2

0.1+0.16 0.17

0.1+

0.1+

0.1

0.0+et)atio5

0

2010@11 2009@10 2008@09 2007@08 2006@07

De?' Ra'.5

(Rs.cr)

artcular /#1#-11 /##$-1# /##%- /##&- /##-#&

D 17+64.2 1640+.6 1603+.7 12482.7 101#$.#&

CE 110#%. 1#2%%. $3&&1. %21##. &.##

De;t Rat*@ #.10 #.1 #.1& #.10 #./#

Ta?8e

+5 %

Car' +5%

INTERPRETATION5$

#he de%t ratio is continuously decreasing from =22+ to =211. 4ecause

increase in C; more than total de%t. !n O&C Company Capital

;mployed is more than the #otal de%ts. *o the ratio is decreasing from2.1? to 2.15.


88/125

= De?'$E:.', Ra'.

#he ratio esta%lishes a relationship %etween long term de%ts and shareholdersQ

funds. !t reflects the relatie claims of creditors and shareholders against

the assets of the firm and in other terms it indicates the relatie proportion

of de%t and e(uity in financing the assets of the firm.

De?' e:.', ra'. L+3 'er De?'Sare84er7 &:+4

L+3$Ter De?'

(Rs.cr)

artculars /#1#-11 /##$-1#

/##%-#$

/##&-#%

/##-#&

Secure6L*ans

@ @ @ @ -

Bnsecure6L*ans

17+64.26 1640+.64

1603+.70

12482.71

101#$.#&

*tal 17+64.26 1640+.64 1603+.70 12482.71 101#$.#&

Sare84er

F:+45

(Rs.cr)

artculars

/#1#-11

/##$-1#

/##%-#$

/##&-#%

/##-#&

Share 4277.76 2138.89 2138.89 2138.89 /12%.%

Reser'es 93226.6

7

8+143.7

2

76+96.4

2

68478.+

1

0$&%0.

#3Sur5lus

*tal 97+04.43 87282.61 7873+.42 70617.401$/2.$2


89/125

De;t-Eut? Rat*0.24

0.2+

0.190.2

0.180.2

0.18

0.1+

0.1et@$%uit&)atio

0.0+

0

2010@11 2009@10 2008@09 2007@08 2006@07

De?'$E:.', Ra'.5

(Rs.cr)

artculars

/#1#-11 /##$-1# /##%-#$

/##&-#%

/##-#&

*tal 17+64.26 1640+.64 1603+.70 12482.71 101#$.ter De;t

*tal 97+04.43

87282.61

7873+.42

70617.40

1$/2.$2

h*l6ersFun6

De?'$E:.',

Ra'.(

#.1% #.1$ #./# #.1% #./3

Ta?8e +5#

Car' +5#

INTERPRETATION5$

#he O&C has de%t e(uity ratio indicate, numerator is an e(uity part

while denominator is a de%t part. *o we can easily say that e(uity part

is more than de%t part.


90/125

F Ca*.'a8 E*8,e4 ' Ne' r' Ra'.5

#here is yet another alternatie way of e"pressing the %asic relationship

%etween de%t and e(uity. One may want to knowG ow much funds are

%eing contri%uted together %y lenders and owners for each rupee of the

ownersQ contri%utionP

Fr:8a5 Ca*.'a8 E*8,e4 (C;E;)Ne' r' (N;W.0

Ca*.'a8 E*8,e45

(Rs.cr)

(articulars 2010@11 2009@10 2008@09

2007@08

2006@07

Sare

97+04.43

87282.61

7873+.42

70617.40

1$/2.

funds

!otal ets 17+64.26

1640+.64

1603+.70

12482.71

101#$.#&

#.$. 110#%.$ 1#2%%./0 $3&&1.1/ %21##.11 77033.00

Ne' Wr'5 (Rs.cr)


91/125

(articulars 2010@11 2009@10 2008@09 2007@08 2006@07

Sare#apital

4277.76 2138.89 2138.89 2138.89 /12%.%$

)eser*es 93226.67

8+143.72

76+96.42

68478.+1

0$&%0.#3

Surplus

!otal 97+04.43 87282.61 7873+.42 70617.401$/2.$2

Ca*.'a8 E*8,e4 ' Ne' r'

Ra'.5

(Rs.cr)


92/125

Ca5tal E5l*?e6 t* Net :*rthRat*

1.24

1.22 1.2

1.2 1.191.18 1.18

1.18

1.16

1.14

#apital$mplo &ed to ,et -ort )atio

2010@112009@102008@092007@082006@07

(articulars

2010@11 2009@10 2008@09

2007@08

2006@07

#.$. 110#%.$

1#2%%./0

$3&&1.1/

%21##.11

77033.00

, 97+04.4

3

87282.6

1

7873+.

42

70617.

40

1$/2.

$2Capital

;mployed to

5et worth

9atio

1.1% 1.1$ 1./# 1.1% 1.24

Ta?8e +5

Car' +5

INTERPRETATION5$


93/125

T'a8 L.a?.8.'.e ' T'a8 Ae' Ra'.5

Current lia%ilities are generally e"cluded from the computation of leerage

ratios. One may like to include them on the ground that they are

important determinants of the firmQs financial risk since they represent

o%ligations and e"pert pressure on the firm and restrict its actiities.

Fr:8a5 T'a8 8.a?.8.'.e

(TL) T'a8

Ae' (TA)

T'a8 L.a?.8.'.e5 (Rs.cr)


94/125

(articular 2010@11 2009@10 2008@09 2007@08 2006@07

#urrent 701+9.+0 64336.99 +7+12.09 44311.11 59601.19

iailities

Secured @ @ @ @ -

oans

17+64.26 101#$.#&/nsecured 1640+.64 1603+.70 12482.71

oans

!otal %&&/2.& %#&3/.2 &203&.&$ 0&$2.%/ 74710.26

T'a8 Ae'5(Rs.cr)


95/125

(articular 2010@11 2009@ 2008@ 2007@ 2006@

Fied 18639.+ 1+648.+ 10414. 10+18. %%2$.

#urrent 9+10+.3 89690.1 83204. 6916+. %2&%3

!otal 112&33.%$1#022%.3$21$.#$ &$%2./ 92623.9


96/125

T'a8 L.a?.8.'.e ' T'a8 Ae' Ra'.5

(Rs.cr)

(articular 2010@ 2009@ 2008@ 2007@ 2006@

! %&&/2. %#&3/. &203& 0&$2 74710.

!A 112&33.%$

1#022%.3

$21$.#$

&$%2./

92623.9

#otal

ia%ilities to

#otal Assets

9atio

#.&&1 #.&& #.&% #.&12 0.807

Ta?8e +5!

*tal La;ltes t* *tal AssetsRat*

0.8+

0.8

0.7+

0.7

0.6+

0.771

0.767

0.786

0.713

0.807

!otal iailities to !otal

AssetsG

2010@11 2009@10 2008@09 2007@08 2006@07

Car' +5 !

INTERPRETATION5$

! #he Analysis the ratio is continuously increasing and decreasing %y

year to year. 4ut in =211 the #otal ia%ilities to #otal Assets 9atio is

increase than preious year. #he 9eason of increment is #otal Assets

are more than total lia%ilities and increasing year %y year.


97/125

F ()OF!A!C )A!O

)rofit is the main o%$ectie of any %usiness enterprise. 4esides, profita%ilityis the measure of efficiency. #he ownerQs inest their funds in e"pectation

of receiing reasona%le return. ence profita%ility ratios are ery

important from the iew point of arious shareholders.

1 Gr Pr&.' Ra'.

&ross profit margin ratio reflects the efficiency with which management

produces each unit of product. !t e"pressing t h e relationship %etween &ross)rofit earned to et *ales. #his ratio usually e"pressed as percentage

Gr *r&.' ra'. Gr Pr&.' J100Sa8e

Gr Pr&.' Ra'.5

(Rs.cr)

)articulars =212-11 =22+-12 =22-2+ =22@-2 =22?-2@

&ross )rofit 2?=+.F F@@2=.?1 F==5F.= [email protected] 22%;0

*ales ??1?.F ?2=51.@@ ?22F.++ ?22?5.12


98/125

Gr*ss r*+t Rat*

7060+0403020100

61.4162.+8

+0.3949.+4 49.7

ross(rot )atio

2010@112009@102008@092007@082006@07

Car' +510

INTERPRETATION5$

&ross profit ratio shows the relation %etween gross profit and sales.

#hat means how much proportion of gross profit in sales. #his ratio is

decrease in last year compared to preious year. !t is 1.1@.


99/125

= Ne' Pr&.' Ra'.

et )rofit is o%tained when operating e"pense, interest and ta"es are

su%tracted from the gross profit. #he net profit ratios measured %y

diiding )A# /)rofit After ta"0 %y sales. #his ratio indicates the firmQs

capacity to withstand aderse economic conditions.

Ne' Pr&.' Ra'. PAT K100Sa8e

Ne' Pr&.' Ra'.5 (Rs.cr)


100/125

Net r*+t Rat*29 28.6

27.8128

27.8327.49

27

262+.2

2+

,et (rot

)atio

24

23

2010@112009@102008@092007@082006@07

(articulars 2010@11 2009@10 2008@09 2007@ 2006@

,.(. 18924 16767.+ 16126.32 16701. 103

Sales 66164.3 602+1.7 64003.99 6006+. 0$1

5et )rofit 9atio /%.# /&.%2 /0./# /&.%1 27.49

Ta?8e +511

Car' +511

I+'er*re'a'.+5$

et profit ratio shows the relationship of )A# with the sales. #his ratio

is in =22@, it is =@.+3, in =22 it is [email protected], in =22+ it is =5.=23,

in =212 it is [email protected], in =211 it is =.?23 which means )A# is

always near to =53 to F23. 4ecause of #a" charges is increasing year

%y year .


101/125

F Re':r+ + T'a8 I+e'e+'

)rofita%ility ratio can also %e computed %y relating the profit of a company to

its total assets. #he 9OA may also %e called profit Hto Hasset ratio.

#his ratio can %e computed %y diiding the )A# %y total assets.

R e ' : r+ + T ' a8 I + e ' e +' P A T K 10 0T'a8Ae'

Re':r+ + I+e'e+' Ra'.@

(Rs.cr)

(articulars 2010@11 2009@10 2008@09 2007@ 2006@

(A! 18924 16767.+6 16126.32 16701 103/

!.A 11+"068. 103"688. 94"771.1 83"10 &&#2

9eturn on #otal

!nestment

1.33 1.1& 1&.#1 /#.#$ 20.30

Ta?8e +512


102/125

Return *n *tal In'estent

2+20.09 20.3

20 16.4416.17

17.01

1+

10

)eturn on !otaln*estment

+

0

2010@11 2009@10 2008@09 2007@08 2006@07

Car' +512

INTERPRETATION5$

#his ratio shows companyQs profit earned on the total inestment made

in the company. #his ratio is increase in current year. !n =211 it

is 1?.3 and now it is 1?.1@3 in =212.4ecause of total assets is

decreased compared to preious year. !t is good for the company. 4ut in

=22 the inestment is increase than =22+. !t is a =2.2+ to [email protected] it is a

F.23 decrease.


103/125

Earnn7 er Share7.83 7.+3

7.8

876+43210

7.31

4.42

$arnin(er Sare

2010@112009@102008@092007@082006@07

Ear+.+3 Per Sare5


104/125

e(uity share is a more than )A#. !t is a F.13 decreases. !t is good for

shareholders. #hey get good return.


105/125

7.2.4.> A#!


106/125

(articulars 2010@ 2009@10 2008@09 2007@ 2006@

Fied Assets 18639. 1+648.+ 10414.3 10+18. %%2$.

,et #urrent 2494+. 2+3+3.1 2+692.6 248+4. /31%

,et Assets 320%0.2$ 31##1.0 21#& 202&/.#$ 33022.71


107/125

Ae' T:r+er

Ra'.5

(R;-r)


108/125

Assets urn*'er Rat*

2 1.77 1.7 1.72

1.+2 1.47

1.+

1

0.+

Assets !urno*er )atio

0

2010@112009@102008@092007@082006@07

(articular 2010@ 2009@10 2008@09 2007@ 2006@

Sales 66164. 602+1.77 64003.99 6006+. 0$12

,.A. 43+8+. 41001.6+ 36107 3+372. 22#//

Assets #urnoer

9atio

1.0/ 1.3& 1.&& 1. 1.72

Ta?8e +51"

Car' +51"

INTERPRETATION5$

ere, we hae taken as assets turnoer as %ase. #he total assets

turnoer is increasing year %y year till =211. #he inestment in net

assets in =22@ it is

022;#1 and in =211 it is "


109/125

= T'a8 Ae' T:r+er Ra'.5

#he amounts inested in %usiness are inested in all assets $ointly and

sales are affected through them to earn profits. *o !n order to find out

relation %etween total assets to sales. #otal assets include net fi"ed assets and

current assets.

T'a8 Ae' T:r+er Ra'. Sa8eT'a8Ae'

Sa8e5(Rs.cr)

(articular 2010@ 2009@ 2008@ 2007@ 2006@

Sales 66164. 602+1. 64003. 6006+. 0$12

T'a8 Ae' (T;A;)5

(Rs.cr)

(articulars 2010@11 2009@10 2008@09 2007@ 2006@

Fied Assets 18639.+ 1+648.+ 10414.38 10+18. %%2$.

#urrent 9+10+.3 89690.1 83204.71 6916+. %2&%3

!otal 112&33.%$ 1#022%.3 $21$.#$ &$%2./ 92623.9

T'a8 Ae' T:r+er Ra'.5

(Rs.cr)

(articulars 2010@11 2009@10 2008@09 2007@ 2006@

Sales 66164.3 602+1.7 64003.9 6006+. 0$12

!.A. 112&33. 1#022%. $21$.# &$%2. 92623.

#otal Assets #urnoer 9atio


110/125

#.0%/ #.0&/#.%3 #.&030.614

Ta?8e +51


111/125

*tal Assets urn*'er Rat*

0.80.70.6

0.+0.40.30.20.10

0.7+40.684

0.+820.614

0.+72

!otal Assets !urno*er )atio

2010@11 2009@10 2008@09 2007@08 2006@07

Car' +51<

INTERPRETATION5$

ere, we hae taken as total assets as %ase. #he total assets turnoer is

increasing year %y year till =211. #he inestment in assets in =211it is

11F@.+and in =22@ it is +=?=F.+;which was appro"imately =11=2.++

cr increase. 4ut the total asset of =22@ is a increase than =211. #he

company is using the assets efficiently thatQs why the ratio is increasing

trend.


112/125

F F.e4 Ae' T:r+er Ra'.5

ere we hae also taken fi"ed assets as %ase. #o ascertain the efficiency and

profita%ility of %usiness of %usiness, the total fi"ed assets are compared to

sales. #his ratio can %e finding out %y diiding sales with the total fi"ed

assets. #he more the sales in relation to amount inested in fi"ed assets, the

more efficient is the use of fi"ed assets.

F.e4 Ae' T:r+er Ra'. Ne' Sa8eF.e4 Ae'

Sa8e5

(Rs.cr)

(articular 2010@11 2009@10 2008@09 2007@ 2006@

Sales 66164.3 602+1.7 64003.9 6006+. 0$1

Ne' F.e4

Ae'5

(Rs.cr)

(articulars 2010@ 2009@ 2008@ 2007@ 2006@

Fied Assets 18639. 1+648. 10414. 10+1 %%2$

F.e4 Ae' T:r+er Ra'.5

(Rs.cr)

(articulars 2010@11 2009@10 2008@09 2007@ 2006@

Sales 66164.34 602+1.77 64003.99 6006+. 0$12

,.F.A. 18639.++ 1+648.+0 10414.38 10+18. %%2$.


113/125

Ta?

8e

+51%


114/125

F4e6 Assets urn*'er Rat*

76

6.1+ 6.44+.71

+43210

3.++ 3.8+

Fied Assets !urno*er )atio

2010@112009@102008@092007@082006@07

Car' +51%

INTERPRETATION5$

#his ratio shows an efficiently and profita%ility of the %usiness . #he

oerall result of this ratio shows year %y year fluctuating decreasing.

#his show the fi"ed assets are %eing used effectiely to earn profits in

the %usiness. 7e can show in the graph. !n =22@ the


115/125

C:rre+' Ae' T:r+er

Current assets turnoer ratio indicates productiity ratio, which measures the

output, produced from the gien input employed. Current Assets are inputs,

which can %e conerted in to cash (uickly. igher the current assets turnoer

ratio, higher the li(uidity of the firm.

C:rre+' Ae' T:r+er Sa8eC:rre+' Ae'

C:rre+' Ae' T:r+er5(Rs.cr)

(articulars 2010@11 2009@10 2008@09 2007@08

2006@07

Sales 66164.3 602+1.7 64003.9 6006+. 0$12

#.A. 9+10+.3 89690.1 83204.7 6916+. %2&%3

#urrent

Assets

!urno*er

#.$ #.& #.&& #.%& 0.68

Ta?8e +51#


116/125

Current Assets urn*'er

10.87

0.690.77

0.80.67 0.68

0.6

0.4

0.2

#urrentAssets !urno*er

0

2010@11 2009@10 2008@09 2007@08 2006@07

INTERPRETATION5

Car' +51#


117/125

5 Wr6.+3 Ca*.'a8 T:r+er Ra'.5

#he 7orking Capital #urnoer ratio measures the companyBs et *ales from the

7orking Capital generated. A company uses working capital /current assets

- current lia%ilities0 to fund operations and purchase inentory. #hese

operations and inentory are then conerted into sales reenue for the

company. #he working capital turnoer ratio is used to analy'e the

relationship %etween the money used to fund operations and the sales

generated from these operations.

Wr6.+3 Ca*.'a8 T:r+er Ra'. Ne' Sa8eWr6.+3 Ca*.'a8

Wr6.+3 Ca*.'a8 T'a8 C:rre+' Ae' T'a8 C:rre+' L.a?.8.'.e

NE SALES@

(Rs.cr)

(articular 2010@ 2009@ 2008@ 2007@ 2006@Sales 66164. 602+1.7 64003. 6006+ 0$1

WORING CAIAL@

(Rs.cr)

(articulars 2010@11 2009@10 2008@09 2007@ 2006@

!otal #urr $01#0.23

%$$#.13

%2/#3.&1

$10.1$

83784.

Asset

!otal #urrent

701+9.+0 64336.99 +7+12.09 44311.11

59601.

19

iaili

orin #apital /3$30.%3 /0202.10 /0$/./ /3%03.#%24183.+9


118/125

Wr6.+3 Ca*.'a8 T:r+er

Ra'.5

(Rs.cr)


119/125

W*r9n7 Ca5tal urn*'er Rat*2.6+

2.7

2.6 2.49

2.+2.38

2.422.3+

2.4

2.3

orin#apital !urno*er )atio

2.2

2010@11 2009@10 2008@09 2007@08 2006@07

(articulars 2010@11 2009@10 2008@09 2007@ 2006@

Sales 66164.3 602+1.7 64003.9 6006+. 0$12

orin /3$30.% /0202.1 /0$/. /3%03. 24183.

orin

#apital

!urno*er

)atio

/.0 /.2% /.3$ /.3/ 2.3+

Ta?8e +51

Car' +51

INTERPRETATION5$

A high or increasing 7orking Capital #urnoer is usually a positie

sign, showing the company is %etter a%le to generate sales from its

7orking Capital. ;ither the company has %een a%le to gain more et

*ales with the same or smaller amount of 7orking Capital, or it has

%een a%le to reduce its 7orking Capital while %eing a%le to maintain its

sales. !n the a%oe graph the ratio increase year %y year, !n year =211

9atio is =.?5.and in year =212 it decrease in =.F.#he 9eason 4ehind

of increase in working capital.


120/125

Ye

ar

20

12

CONCLUSION

89


121/125

OIL AND GAS CORPORATION LIMITED


122/125


123/125

90


124/125

ear2012

BIBLIOGRAPHY

+

OIL AND NATURAL GAS

CORPORATION LTD

91


125/125

B.?83ra*,

1 A++:a8 Re*r' & 'e -*a+, & 200#$2011;

= 7e%sitesG-

www.ongcindia.com

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www.moneycontrol.com

) B65$

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