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PROJECT REPORT

ON

COMPARATIVE FINANCIAL ANALYSIS OF TOP FIVE OIL AND GAS

SECTOR COPANIES LISTED IN BSE.

A Project Report Submitted In Partial Fulfillment of the Requirements

For The Award of the Degree of

MASTERS OF BUSINESS ADMINISTRATION

TO

M S RAMAIAH ACADEMY MANAGEMENT

BY

Tanmay Kumar Chakrabarty

University Reg. No. 14MB5058

MBA (UoM) Batch 2014-2016

Under the guidance of

Prof. Kumuda P. R

M S RAMAIAH ACADEMY MANAGEMENT

NEW BEL ROAD, BANGALORE-560054

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CERTIFICATE

This is to certify that this report of Final Project conducted at M.S.Ramaiah Academy

of Management and submitted by Tanmay Kumar Chakrabarty, in partial fulfillment

of the requirements for the award of the MASTERS IN BUSINESS

ADMINISTRATION to M.S.RAMAIAH MANAGEMENT INSTITUTE is a record

of bonafide training carried out under my supervision and guidance and that no part of

this report has been submitted for the award of any other degree/diploma/fellowship or

similar titles or prizes.

GUIDE Signature:

Name: Prof. Kumuda P.R

Qualifications: M.Com, MBA, MPhil, PGDIB, UGC-NET, (PhD)

Program Head Signature:

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Student Declaration

I hereby declare that the Project conducted at M.S.Ramaiah Academy of Management

under the guidance of Prof. Kumuda P.R and the project report submitted in partial

fulfillment of the requirements for the MASTERS IN BUSINESS ADMINISTRATION (UoM) to

M.S.Ramaiah Academy of Management, is my original work and the same has not

been submitted for the award of any other Degree/Diploma/Fellowship or other similar

titles or prizes .

Place: Bangalore TANMAY KUMAR CHAKRABARTY

Date: Reg. No: 14MB5058

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ACKNOWLEDGEMENT

I extend my special gratitude to our beloved and respected Dean Dr. H

Murlidharan, and Academic Head Prof. V Narayanan and Program Head Dr.

Anuradha T.N for inspiring me to take up this project.

I wish to acknowledge my sincere gratitude and indebtedness to my project guide

Prof. Kumuda P.R of M.S. RAMAIAH ACADEMY OF MANAGEMENT

Bangalore for his /her valuable guidance and constructive suggestions in the

preparation of project report.

STUDENT NAME

TANMAY KUMAR CHAKRABARTY

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Executive Summary

The Indian oil and gas sector is one of the six core industries in India and has very significant

forward linkages with the entire economy. India has been growing at a decent rate annually and is

committed to accelerate the growth momentum in the years to come.

This study focuses on the comparison of financial positions of top five Oil and Gas Sector Company

listed on BSE. This measures profitability, assets management, efficiency, liquidity, long term

solvency etc.

In the introductory chapter, study have considered the current scenario of Oil and Gas Sector

Company, the growth aspects of the same in the coming years, uniqueness and consumers

adoptability and consumption of Oil and Gas.

In the study other similar industry based researches are also considered as review of the same is

provided with summary.

This study also contain the industry related discussions i.e. history of the industry, growth factors of

industry, big players in domestic and global level, various government regulation, size of the

industry, challenges and issues of the industry, future prospect.

Research analysis and interpretations are made on fifteen different ratios to measure the positions of

each firm and made a comparative analysis by line graph of the five years position 2011-15. Based

on the graph interpretations and company position is described in the interpretation.

Whatever is the outcome of the empirical study analysis, based on that findings are given, after

understanding the fact of findings and evaluating each companies position suggestions are made then

study came to an conclusion.

In our study we tried to understand the profitability of the companies, EPS growth, and investment

analysis for each company and we got an overview of that with the successful completion of the

study.

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Table of Contents

1. Introduction- 8-15

Introduction

Growth

Uniqueness of the industry

Performance of oil industry

I. Working title II. Statement of problem III. Research objective IV. Research methodology V. Limitations of the study VI. Importance of the study

2. Chapter 1- Literature Review- 16-34

3. Chapter 2- Industry Profile- 35-51

2.0 Introduction

2.1 History

2.2 Growth

2.3Size of Industry

2.4 Major Players at National and Global Level

2.5 Govt. rules and regulations

2.6 Challenges and Issues

2.7 Future Prospects

2.8 Porter’s Five Force Model

4. Chapter 3 & 4- Research Analysis and Interpretation- 52-84

Dividend payout ratio Return on equity Earnings retention ratio Gross profit margin Net profit margin Earnings per share(EPS) Price to Earnings Ratio(P/E) Return on Net Worth Current ratio Return on capital employed Debt equity ratio Interest cover ratio Inventory turnover ratio Debtors turnover ratio Fixed asset turnover ratio

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5. Chapter 5- Findings, Suggestions and Conclusion- 85-90

Findings

Suggestions

Conclusion

6. Bibliography- 91-92

Websites-

Books-

7. Annexure- 93-129

Annexure I

Annexure II

Annexure III

Annexure IV

Annexure V

Annexure VI

Annexure VII

Annexure VIII

Annexure IX

Annexure X

Annexure XI

Annexure XII

Annexure XIII

Annexure XIV

Annexure XV

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INTRODUCTION

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The Indian oil and gas sector is one of the six core industries in India and has very significant

forward linkages with the entire economy. India has been growing at a decent rate annually and is

committed to accelerate the growth momentum in the years to come. This would translate into India's

energy needs growing many times in the years to come. Hence, there is an emphasized need for

wider and more intensive exploration for new finds, more efficient and effective recovery, a more

rational and optimally balanced global price regime - as against the rather wide upward fluctuations

of recent times, and a spirit of equitable common benefit in global energy cooperation. The purpose

of this study is to comparative study of financial performance, of India’s five leading oil and

petroleum companies i.e. Oil and Natural Gas Corporation, Reliance Petroleum Limited, Indian Oil

Corporation, Hindustan Petroleum Corporation and Cairn India Limited have been selected for the

study. The most common tool of financial analysis various ratios as used. It is concluded that the

overall performance of Oil and Natural

Gas Corporation found highly satisfactory in net profit growth on the profitability level, short term

liquidity position, efficiency level, solvency capacity and investment analysis.

Comparative financial analysis is one of the important techniques, which is used to study the future

behavior of the companies. It actually refers to analyses of present and future earning capacity of the

ratios based on the analysis of industry and company as a whole, thereby to determine the intrinsic

values of the stocks. In other words, financial analysis is mainly concerned with the determination of

intrinsic value by analyzing the fundamental factors of industry and company as a whole. The

intrinsic value of the stocks represents the real worth, which is used by the fundamental analysts to

identify the underpriced and overpriced securities in the market. It means, if the intrinsic value of the

stock is more than the market value, it considered as underpriced and included in the portfolio. Thus,

fundamental analysis is mainly concerned with the determination of intrinsic value of stocks and

based on that intrinsic value investment decisions are taken by the fundamental analysts.

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Introduction-

India is the sixth largest consumer of oil. There is a huge demand-supply gap in oil and gas in India.

The country imports more than 70% of its crude oil requirement. In 2005, oil and gas accounted for

38% of primary energy consumption in India, followed by coal at 55%. Oil and gas industry is

broadly classified into Upstream and Downstream segments and comprises 18 refineries, with total

refining capacity of 132.47 mmtpa as of April 1, 2006.

According to Ministry of Petroleum and Natural Gas, India’s crude oil reserves have increased from

726mmt in FY02 to an estimated 786mmt in FY06, whereas natural gas reserves have increased from

763 billion cubic metres (bcm) to 1,101bcm between FY02 and FY06. Crude oil production was

estimated at 32.19mmt and natural gas at 32.20bcm in FY06. Consumption of crude oil was

estimated at 130.11mmt, whereas consumption for natural gas was estimated to be 31.02bcm in the

same year. The production and consumption of petroleum products was estimated at 119.75mmtpa

and 111.92mmt respectively. Recently,

India has emerged as net exporter of petroleum products. The Indian oil and gas sector is of strategic

importance and plays a predominantly pivotal role in influencing decisions in all other spheres of the

economy. The annual growth has been commendable and will accelerate in future consequently

encouraging all round growth and development. This has necessitated the need for a wider

intensified search for new fields, evolving better methods of extraction, refining and distribution, the

constitution of a national price mechanism - keeping in mind the alarming price fluctuation in the

recent past and evolving a spirit of equitable global cooperation.

GROWTH

In the 50 years since Independence India has witnessed a significant growth in the refining facilities

and increase in the number of refineries from one to seventeen now. There has been an increase in

the refining capacity from 0.25 tonsMMTpa to about 103 MMTpa.

The first decade of Independence (1947-57) saw the establishment of three coastal refineries by

multinational oil companies operating in India at that time, viz.

Burmah Shell, Esso Stanvac and Caltex; the first two at Mumbai and the third at Visakhapatnam.

The second decade (1957-67) witnessed the setting up of Indian Refineries Ltd. in 1958, a wholly-

owned public sector Government company. Under its banner three refineries were set up at Guwahati

(Assam), Barauni (Bihar) and Koyali (Gujarat) essentially to process the indigenous crude

discovered in Assam and

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Gujarat. In addition, one joint sector refinery was set up with the participation of an American

company at Cochin, based on imported crude.

The next ten year period (1967-77) witnessed the establishment of two refineries, one with equity

participation from American and Iranian companies at Chennai and another in the public sector at

Haldia by Indian Oil.

The period 1977-87 saw the commissioning of two more refineries in the public sector. The refinery

at Bongaigaon was the first experiment in having an integrated petroleum refinery-cum-

petrochemicals unit. The notable feature of the capacity additions during this decade have been the

extensive utilization of the process design capabilities of M/s Engineers India Ltd. and installation of

Secondary Processing Facilities to increase the production of much required kerosene, diesel and

LPG.

During the fifth decade (1987-97), a small refinery of 0.5 MMTpa at Nagapatinnam was built in

Tamil Nadu. It is based on crude from adjoining fields. In 1996, a 3 MMTpa refinery was built in the

joint sector at Mangalore between HPCL and Indian Rayon. This decade also witnessed major policy

initiatives in the refining sector. In 1987, the Government decided to set up refineries in the joint

sector in which the equity participation of public sector undertaking was envisaged to be 26%.

Another 26% equity was meant for the private sector partner and the balance 48% was to be raised

from the public.

The Government has also announced that investments in the refining sector will be encouraged by

providing reasonable tariff protection and making marketing rights for transportation fuels viz. MS,

HSD & ATF conditional on owning and operating refineries with an investment of at least

Rs.2,000crore or oil exploration and production companies producing at least 3 million tons of crude

oil annually. As per the current outlook, India's refining capacity is estimated to reach a level of 129

MMTpa by the end of the IX Plan (2001-02).

UNIQUENESS OF PETROLEUM INDUSTRY

The petroleum industry is such an industry which has the largest earning capacity. The

variouspetroleum products are diversified in a very wide range. The main functional areas of this

industry are extraction of crude, refining of crude, processing and transporting. The main problem

faced by the entire petroleum industry is the pollution problem. The refining of crude oil creates

huge pollution by producing various harmful gases. Another problem is of drilling mud. When

thedrilling work is done a huge amount of crude, water, soil mixture gets wasted. Hereinnovative and

upgraded technology is required to minimize the wastage of petroleum. The leakage and drainage

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problems are also one of the major barriers in case of refinery work. Good piping technology and

proper drainage system is

also very essential in this industry. One thing wemust appreciate that India has very limited

production of petroleum in comparison with demand scenario. In this condition the wastage is a

critical issue which must be addressed properly.

PERFORMANCE OF INDIAN OIL INDUSTRY

The petroleum industry in India stands out as an example of the strides made by the country in its

march towards economic self-reliance. At the time of Independence in 1947, the industry was

controlled by international companies. Indigenous expertise was scarce, if not non-existent. Today, a

little over 50 years later, the industry is largely in the public domain with skills and technical know-

how comparable to the highest international standards. The testimony of its vigor and success during

the past five decades is the significant increase in crude oil production from 0.25 to 33 million

tonsper annum and refining capacity from 0.3 to 103 million metric tons per annum (MMTpa). The

consumption of petroleum products has grown 30 times in the last 50 years from 3 million tons

during 1948-49 to about 91 million tons in 1998-99. A vast network of over 29,000 dealerships and

distributorships has been developed backed by over 400 storage points over the years to serve the

people even in the remote and once-inaccessible areas.

I.Working Title-

“Comparative financial analysis of top five oil and gas sector companies listed in BSE”.

II.Statement of Problem-

Any person who invests his hard earned money in shares and security must possess adequate

knowledge about securities market and securities price. Investors should be very careful and should

exercise skills, knowledge and experience for choosing investment opportunity.

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III.Research Objective-

To conduct comparative financial analysis of top five oil and gas sector companies listed in

BSE.

To analyze the profitability, solvency position and liquidity position of companies.

To identify the net profit and EPS growth rate performance of companies.

To predict the future prices of shares of the selected companies.

To conduct SWOT analysis for oil and gas industry.

IV. Research Methodology-

The study will be carried on an analytical basis by applying the following factors for the past

five years :

o Earnings per share(EPS)

o Price to Earnings Ratio(P/E)

o Dividend payout ratio

o Return on Net Worth

o Return on equity

o Gross profit margin

o Net profit margin

o Return on capital employed

o Current ratio

o Debt equity ratio

o Interest cover ratio

o Inventory turnover ratio

o Debtors turnover ratio

o Fixed asset turnover ratio

o Earnings retention ratio

The research will include figurative and diagrammatic interpretation for better understanding.

The following are the selected five top Indian companies of Oil and Gas sector

Oil & Natural Gas (ONGC)

GAIL India

Bharat Petroleum

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Hindustan Petroleum

Indian Oil

The researcher, being an external analyst/student, had to depend mainly upon secondary data for the

purpose of studying the financing performance of Oil and Gas Industries in India from the top five

companies in India which is highly performed in overall growth in terms of finance, exports and total

assets value. The exploratory research techniques have been used for this study and also the study is

restricted only to Indian based oil and petroleum organizations.

SOURCES OF DATA

DATA COLLECTION

The present study is mainly based on secondary data which were collected from the corporate annual

audited reports, company database, published research reports by various industries, related websites

and research organization.

SELECTION OF COMPANY AND PERIOD

The present study is mainly intended to examine the comparative financial performance of oil and

petroleum companies i.e. Oil and Natural Gas Corporation, Indian OilCorporation, Hindustan

Petroleum Corporation and Bharat Petroleum.

TOOLS USED FOR ANALYSIS

The present study has analyzed the financial performance of top five Oil and Petroleum companies

listed on BSE. In order to evaluate and compare the financial performance of selected industries ratio

analysis technique has been used.

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V) Limitation of the Study-

1. 1.For study only following limited variables has studied such as Profit, Fixed assets,

Inventory, Sales, Earnings, Payout etc. are considered where, GDP, inflation rates, exchange

rates, foreign exchange reserves, agriculture, industrial, service & allied sectors, currency

markets, telecommunication sector & export growth are not taken into consideration.

2. The study is also limited only to competition of the industry.

3. The study is restricted only to the financial statements and analysis of financial statements.

For the purpose of interpretation, key ratios of the top five Oil and gas sector companies

listed on BSE are studied for the period 2011-2015.

VI)IMPORTANCE TO STUDY-

This study provides a logical and systematic approach to estimate future profits. This study

helps to know that the company’s performance depends not only on its own efforts but also

on the industry and economic factors.

This study helps an analyst to study the fundamental factors affecting the performance of

different industries. Also industry analysis helps to evaluate the relative strength and

weaknesses of particular company.

The financial statements of ONGC can be used to evaluate the financial performance of the

company. Ratio analysis helps investors to determine the strength and weaknesses of the

company. It also helps to him to assess whether the financial performance and financial

strength are improving or deteriorating.

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Chapter 1

Literature Review

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1.1Introduction: The Indian Oil Industry occupies an important place in the economy of the

country because of its contribution to the industrial output, employment generation and foreign

exchange earnings. The Oil that is produced by the Oil Industry in India provides more than thirty

five percent of the energy that is primarily consumed by the people of India. This amount is expected

to grow further with both economic and overall growth in terms of production as well as percentage.

The demand for oil is predicted to go higher and higher with every passing decade and is expected to

reach an amount of nearly 250 million metric ton by the year 2024. Profit earning is the aim of

business. In the course of analysis of this study various statistical techniques have been made. The

statistical techniques used are correlation, t-test and multiple regression analysis to find out the

relationship between the variable and to identify the factor influencing the profitability. Based on the

analysis net sales and net profit have some relationship and working capital management was highly

influencing factor to find out profitability of selected oil companies in India. Companies must

concentrate with other influencing factor for better more of the company.

Accounting for nearly 40% of the country‘s energy demand, the petroleum and natural gas sector

forms a major source of energy in India. The share of oil and gas in India‘s energy mix is projected

to increase in the near to medium term. Further, for both these sources, the dependence on imports is

also projected to rise. Even though the two products are used differently, their exploration processes

are similar and this has often led to them to being addressed in the same category, particularly in

legislations.

Given this dependence on the sector and the linkages of energy with economic development, it is

essential to examine and identify key issues that affect the development of the sector. This

background paper on the oil and gas sector of India provides an understanding of key governance-

related issues that affect the sector. It lays out the key laws and regulations that have shaped the

development of the sector in the country. Subsequently, the paper discusses various organizations

within the sector and examines the roles that each of these perform. Finally, key issues related to

regulation, competition, Centre–State relations, financial health of utilities, and community

participation are discussed in detail.

A number of research studies have been carried out on different aspects of financial performance of

different industries by the researchers, economists and academicians in India and abroad. Different

authors have analyzed performance in different perspectives. A review of these analyses is important

in order to develop an approach that can be employed in the context of the study of Indian oil and gas

industry.

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Title of the study: A STUDY ON FUNDAMENTAL ANALYSIS OF ONGC.

Date of issue: International Journal of Multidisciplinary Research Vol.1 Issue 8,

December 2011, ISSN 2231 5780

Authors: Sugandhraj Kulkarni

OBJECTIVE OF THE STUDY:

1. To study the economical factors which directly or indirectly affect on performance of ONGC.

2. To take an overview of industrial and company aspects of the company.

METHODOLOGY:

The present is based on the secondary data sources which includes-

1. The annual report of ONGC for the year 2009-2010 to interpret the ratios of the company.

2. Books on portfolio management and financial management.

Fundamental analysts often use the efficient market theory in determining the intrinsic price of a

share. This theory submits that in an efficient market all investors receive information instantly and

that it is understood and analyzed by all the market players and is immediately reflected in the

market prices. The market price, therefore, at every point in time represents the latest position at all

times. The efficient market theory submits it is not possible to make profits looking at old data or by

studying the patterns of previous price changes. It assumes that all foreseeable events have already

been built into the current market price.

The fundamental analysis is broken into three distinct parts:

1. the economy,

2. the industry within which the Company operates, and

3. The company.

The information has to be interpreted and analyzed and the intrinsic value of the share determined.

This intrinsic value must, then, be compared against the market value the fundamentalists say, and

only then can an investment decision be taken.

FINDINGS:

1. The economy of India is the eleventh largest economy in the world by nominal GDP.

2. The fourth largest by purchasing power parity (PPP).

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3. India had established itself as the world's second-fastest growing major economy.

4. However, the year 2009 saw a significant slowdown in India's GDP growth rate to 6.8% as well as

the return of a large projected fiscal deficit of 6.8% of GDP which would be among the highest in the

world.

5. The fiscal year 2009-10 began as a difficult one. There was a significant slowdown in the growth

rate in the second half of 2008-09, following the financial crisis that began in the industrialized

nations in 2007 and spread to the real economy across the world. The growth rate of the gross

domestic product (GDP) in 2008-09 was 6.7 per cent, with growth in the last two quarters hovering

around 6 per cent.

6. The fiscal year 2009-10 has been a time of inflationary concerns. It was a year of a somewhat

unusual inflation. While food inflation soared, inflation in the non-food sector was negligible. The

Government was concerned that the upward pressure on prices should not escalate to all sectors.

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Title of the study: AN ANALYSIS OF RELATIONSHIP AND FACTOR INFLUENCING THE

PROFITABILITY OF SELECTED OIL COMPANIES IN INDIA.

Date of issue: International Journal of Current Research, Vol. 4, Issue 06, pp.099-104, June 2012,

ISSN: 0975-833X

Authors: Dr. N. Pasupathi

OBJECTIVE OF THE STUDY:

To study the relationship between Net Sales and Net Profit of selected oil companies in India.

To study the factor influencing profitability of selected oil companies in India.

METHODOLOGY:

This study is mainly based on the secondary data. The required data was collected from the corporate

data house and other relevant data used is collected from the secondary

sources like journals, magazines, prowess database and websites. The study period covers 10 years

from 1999-2000 to 2008-2009 and they are collected from 5 companies. The

samples techniques used for the study is convenient sampling. A sample of 5 oil companies has been

selected based on the availability of data for research process. In the course of

analysis of this study various statistical techniques have been made. The statistical techniques used

are correlation, t-test and multiple regression analysis to find out the relationship

between the variable and to identify the factor influencing the profitability.

Correlation Analysis

Correlation is a statistical device which helps us in analyzing the covariation of two or more

variables. The problem of analyzing the relation between different series should be broken into three

steps.

Determining whether a relation exists, if it does, measuring it.

Testing whether it is significant.

Establishing the cause and effect relation, if any.

It should be noted that the detection and analysis of correlation (i.e Covariation) between two

statistical variables require relationship of some sort which associates the observation in

pairs, one of each pair being a value of each of the two variables.

Multiple Regression Analysis

Multiple regression analysis represents a logical extension of two variable regression analysis.

Instead of a single independent variable, two or more independent variables are

used to estimate the values of a dependent variable. The multiple regression equation describes the

average relationship between these variables and this relationship is used to predict or control the

dependent variable.

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FINDINGS : Profit earning is the aim of business. The relationship between Net Sales and Net

Profit of selected oil companies in India, Bharat Petroleum Corporation Limited, Hindustan

Petroleum Corporation Limited and Indian Oil Corporation Limited are highly correlated with Net

Profit and Net Sales and other remaining companies are smaller correlation between Net Profit and

Net Sales. Working capital management was highly

influencing factor to find out profitability of selected oil companies in India. So the companies must

concentrate with other influencing factor for better more of the company.

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Title of the study: An Empirical Analysis Of The Profitability Of Indian Oil Refineries

Date of Issue: International Journal of Innovative Research & Development, Vol 2, Issue 2, pp.500-

523, February, 2013.

Authors: Dr.A.Vijayakumar, P.Gomathi

OBJECTIVE OF THE STUDY:

Analysis Of Profitability-

Profitability is the main indicator of the efficiency and effectiveness of a business

enterprise in achieving its goal of earning profit. Profitability of a firm can be measured by its

profitability ratios. The profitability ratios can be determined on the basis of either investment or

sales and for this purpose a quantitative relationship between the profit and the investment or the

sales is established. The profitability of the company should be evaluated in terms of its investment

in assets and in terms of capital contributed by creditors and owners, as such if a company is unable

to earn a satisfactory return on investments, its survival is threatened. The profitability of selected oil

refineries in India has been analyzed from the view point of financial management and shareholders.

Profitability From The View Point Of Financial Management-

A financial manager is very much interested in locating and pinpointing the causes which are

responsible for low or high profitability. The financial manager should continuously evaluate

efficiency of his company in terms of profit. The profit margin ratio is a profitability ratio which

measures the relationship between the profit and sales. It

indicates the efficiency or effectiveness with which the operations of business are carried

on. Profit margin varies with disproportionate variations in sales revenue in comparison

to cost or vice-versa. To judge profitability from the view point of financial management

of selected oil refineries in India, the following ratios have been computed and analyzed.

Table 1 shows a fluctuating trend in the operating profit margin ratio of the selected

refineries during the study period. Such a fluctuating trend could be attributed to the

poor performance of selected oil refineries due to poor market condition, difficulty in

getting raw material and all round rise in the input cost without corresponding increase

in selling price.

METHODOLOGY:

The financial and statistical analysis approach plays a vital role in the financial environment. To

enjoy the benefit of financial and statistical analysis researcher has collected, assembled and

correlated the data, classified the data appropriately and condensed them into a related data series,

stated the resultant information in a comprehensive form, text, tables and analyzed and interpreted

the reported data. It is well known that management is considered with efficient performance,

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profitability and solvency. For this purpose it has to study certain specific ratios, because investors

look upon certain ratios, which are concerned with an organization’s operating and financial

performance. For the purpose of this study, the researcher has used ratios namely, operating profit

margin, gross profit margin, return on assets, return on net worth, earnings per share, dividend

payout ratio, total assets turnover ratio, fixed assets turnover ratio, current assets turnover ratio and

inventory turnover ratio. The role of statistical tools is important in analyzing the data and drawing

inferences there from. In order to derive the results from the information collected through secondary

data, various statistical tools such as mean, standard deviation, variance, compound annual growth

rate, regression, tests of hypotheses both parametric and non-parametric have been accomplished

through EXCEL, SX and SPSS software.

FINDINGS:

The profitability measured through operating profit margin ratio is satisfactory in all the

selected oil companies and found adequate to cover the fixed charges and dividend

reserve during the study period. The overall analysis of return on capital employed ratio

showed that this ratio has improved significantly during the study period which was on

account of considerable increase in profit margin as well as assets turnover. Finally, it

can be inferred that the operating efficiency of selected oil refineries in India was

satisfactory and the management generally succeeded in investing capital funds. The

performance of Reliance Industries Ltd and Chennai Petroleum Corporation Ltd was

good during the study period. Mangalore Refinery Petrochemicals Ltd and Essar Oil Ltd

have not performed well during the period of study. Further, owners’ funds was utilized

profitably by all the selected oil refineries in India except Mangalore Refinery and

Petrochemicals Ltd and Essar Oil Ltd. It is significant to note that the position regarding

earnings per share and dividend payout ratio in all the selected oil refineries during the

period under review shows better performance and prospects from the point of view of

shareholders. The results showed that Hindustan Petroleum Corporation Ltd, Bharat

Petroleum Corporation Ltd, Mangalore Refinery and Petrochemicals, Essar Oil Ltd and

Reliance Industries Ltd experienced a strong tendency in profitability to decline over the

study period. The falling tendency of profit rate of these companies is the proof of

adverse effect of various controls on process, output, expansion, investment and distribution imposed

by government on these companies over time. Only in the case of Mangalore Refinery and

Petrochemicals Ltd, Chennai Petroleum Corporation Ltd and Reliance Industries Ltd, the time trend

co-efficient is positive implying the tendency of profit rate to rise over time. To sum up, the analysis

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of profitability of the selected oil refineries reveals that majority of the companies under review

highlighted better performance and prospects from the point of view of owners.

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Title of the study: Impact of Total Cost Management on Financial Performance : An Empirical

Study of Selected Public Sector Oil and Gas Companies in India.

Date of issue: The Journal of Institute of Public Enterprise, Vol. 35, No. 3&4 2012, Institute of

Public Enterprise.

Authors: Aniruddha Sarkar

OBJECTIVE OF THE STUDY:

The main objective of the present study is to assess the impact of TCM on

financial performance of the selected oil and gas companies in India on the basis

of available data collected from published annual reports of the companies

over a period of 10 years (i.e., from 2000-01 to 2009-10). The specific

objectives of this study are as follows :

i) To measure, test and evaluate the TCM position of the selected companies during the period under

study,

ii) To analyze the rank correlation between CATA and Return on Capital Employed (ROCE) of the

selected companies during the period under study; and

iii)To find out the degrees of associations between the ratios relating to selected key elements of cost

to total cost with the measure of profitability

(viz., ROCE) of the selected companies during the period under study.

METHODOLOGY:

The study is mainly based on secondary sources of information. The required

data have been collected from the published annual reports of Oil and Natural Gas Corporation

Limited (ONGC), Indian Oil Corporation Ltd., (IOCL), Oil India Ltd., (OIL), Bharat Petroleum

Corporation Ltd., (BPCL), Hindustan Petroleum Corporation Ltd., (HPCL) and Gas Authority of

India Ltd., (GAIL) and also from the published annual reports of the

Public Enterprise Survey by the Ministry of Heavy Industries, Government of India (GoI) over a

period of ten years i.e., 2000-01 to 2009-10. For collecting relevant data for the purpose of

conducting this study, internet surfing has also been done for obtaining the requisite and latest

information. Editing, classification and tabulation of the financial data collected from the above

mentioned sources have been done as per requirement of the study. In order to analyze the data the

ratios of vital elements of cost to total cost and an important tool of measuring profitability have

been calculated on the basis of available data for the selected companies during the period under

study. The ratios which have been applied for highlighting the proportion to total cost are RMCTC,

PFCTC, ECTC, OMCTC, SACTC and METC and the measure of profitability which has been

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selected is RoCE. For assessing the degrees of associations between the ratios of selected elements of

cost to total cost with the profitability, Pearson’s simple correlation co-efficient has been used and

for assessing the degrees of associations between CATA and ROCE, Spearman’s rank correlation

has been applied. To examine the significance of the computed values of correlation coefficients

students ‘t’ test has been used.

FINDINGS:

The study of rank correlation analysis reveals that there is a high degree of positive association

between CATA and ROCE for ONGC during the period under study. Out of the six selected

companies liquidity management of ONGC has significant influence on the overall profitability of it,

liquidity management of other companies has no significant contribution towards the overall

profitability during the period under study. The study of the impact of TCM on financial

performance reflects both positive and negative associations for the selected companies during the

period under study. Out of the six selected companies, SACTC of OIL has significant contribution

towards the overall financial performance of it both at 1 per cent and 5 percent significance levels

and SACTC of BPCL has significant contribution towards the overall financial performance of it at 5

per cent level of significance.

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Title of the study: Capital Structure, Leverage and Financing Decision : An Empirical Analysis of

Selected Public Sector Oil and Gas Companies in India.

Date of issue: The Journal of Institute of Public Enterprise, Vol. 36, No. 1&2 2013, Institute of

Public Enterprise.

Authors: Chitta Ranjan Sarkar & Aniruddha Sarkar.

OBJECTIVE OF THE STUDY:

The study has the following objectives:

• To study the trend of leverages of the selected public sector oil and gas companies in India for the

period from 2000-01 to 2009-10,

• To make a comparative analysis regarding the capital structure of the selected public sector oil and

gas companies in India during the study

period,

• To analyze the risk patterns of the selected companies under study by introducing the well-known

devices of measuring risks, viz., DOL, DFL, financial break-even point and DTL,

• To assess the degrees of associations between the various leverage ratios and well-known

profitability indicator viz., RoE of the selected companies under study during the study period, and

• To provide valid recommendations these deserve the attention of the management of concerned

companies under study, oil and gas sector in India and especially government.

METHODOLOGY:

The study of associations between the leverage ratios and RoE of Oil and Natural Gas Corporation of

India (ONGC), Indian Oil Corporation Ltd., (IOCL), Oil India Limited (OIL),

Bharat Petroleum Corporation Ltd., (BPCL), Hindustan Petroleum Corporation Ltd., (HPCL) and

Gas Authority of India Ltd., (GAIL) for the accounting period from 2000-01 to 2009-10

is mostly based on the data collected from the secondary sources. Various reputed journals, e-

journals from UGC-Inflibnet centre, various reputed books on finance, conference proceedings, etc.,

have been used for the purpose of conducting the research work. “CAPITALINE 2000” data base

package has also been used for procuring data. In order to analyze the data the values of DOL, DFL,

DTL, financial break-even point and RoE have been measured on the basis of data available in the

published annual reports of the selected companies under study. For assessing the degrees of

associations between the various leverage ratios and profitability indicator viz., RoE, Pearson’s

simple correlation coefficient has been applied and student’s ‘t’ test has been used to test the

significance of the results

of the empirical study.

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FINDINGS:

In the present study, IOCL, BPCL and HPCL have both the leverages at high level during the entire

study period. That means they are on a very risky position during the period under study as compared

to others in the industry. Table-1 depicts that the values of associations

between the various leverage ratios and RoE are posititive for all the concerned companies except

GAIL during the study period. That means the leverage ratios of all the concerned

companies except GAIL have the negative influences on the earnings available

to the equity shareholders’ during the study period. Diagram-1 highlights that IOCL uses greater

amounts of external capital in its capital structure and OIL uses lesser amounts of external capital as

compared to others in the industry throughout the entire study period. So,

OIL and ONGC may employ additional amounts of external capital (i.e., fixed charge bearing

capital) in their capital structure as a result the earnings after tax can be enriched as the rewards to

the external fund providers are tax deductible expenditure which can ultimately

lead to make the equity shareholders’ happy and reliable on the firm’s operating as well as financing

performance. On the other hand, IOCL should be maintaining a sound shortterm debt paying

capacity because the employment of more amounts of external funds may lead to short-term

insolvency.

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Title of the study: EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY

OF FIRMS: A STUDY OF THE INDIAN OIL DRILLING AND EXPLORATION INDUSTRY.

Date of issue: Global Journal of Business Management, Vol. 4, No. 1, June, 2010, ISSN: 0973-8533.

Authors: Dr. Anupam Jain

OBJECTIVE OF THE STUDY:

Keeping in view the pragmatic importance of working capital management in finance, an

attempt is made in this study to contribute towards a crucial element in financial management

which working capital management. Specific objectives are:

• To examine a relationship between Working Capital Management and Profitability of

the selected firms in Oil Drilling and Exploration industry;

• To establish a relationship between the two objectives of liquidity and profitability of

the firm and;

• To find out the relationship between debt used by the firm and its profitability on the

firms.

METHODOLOGY:

The present study is based on a sample of four Oil Drilling and Exploration companies

operating in India. These companies constitute a large part of the oil industry in terms of

market sharing within the country.

The data used in this study was acquired from the Internet and websites of different

firms. Data of companies for the most recent five years formed the basis of our calculations.

The period covered by the study extends to five years starting from 2005 to 2009. The reason

for restricting to this period was that the latest data for investigation was available for this

period.

In order to analyze the effects of working capital management on the firm’s profitability,

profitability is measured by Return on Total Assets (ROTA), which is defined as profit before

interest and tax divided by total assets. Profitability was used as the dependent variable. With

regards to the independent variables, working capital management was measured by cash

conversion cycle (CCC) and current ratio (CR), debt ratio (DR). Sales growth has been taken

as control variable. CCC focuses on the length of time between when a firm makes payment

and when firm receives cash inflow. The lover the value is, better the position of the firm is,

since it can canily convert high liquidity short-term investments in current assets to cash.

However, longer value of CCC indicate greater investment in current assets and hence the

greater the need for financing of current assets. CCC is calculated as the number of days required for

Average Collection Period (ACP) plus the number of days required for Inventory

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turnover (ITID) minus the number of days available for accounts payment period (APP).

Average Collection Period (ACP) is calculated by dividing account receivable by sales

and multiplying the result by 365 (number of days in a year). ACP represents the number of

days that a firm takes to collect payments from its customer. Inventory turnover in days

(ITID) is calculated by dividing inventory by cost of goods sold and multiplying with 365 days.

This variable reflects the average number of days of stock held by a firm. Longer storage

times represent a greater investment in inventory for a particular level of operations. Average

Payment Period (APP) is calculated by dividing accounts payable by purchases and multiplying

the result by 365. This measure indicates the average time firm takes to pay their suppliers.

The higher the value, the longer firms take to settle their payment commitments to their

suppliers. In nutshell, we have taken ROTA as dependent variable and CCC, CR, DR and SG

as independent variables.

FINDINGS:

Working capital management is important part in firm financial management decision.

The ability of the firm to continuously operate in longer period is depends on how they deal with

investment in working capital management. The optimal of working capital management

could be achieved by firm that manage the trade off between profitability and liquidity. The

purpose of this study is to investigate the relationship between working capital management

and firm profitability. Cash conversion cycle is used as measure of working capital management.

Results of this study found that current ratio is positively associated with profitability whereas

cash conversion cycle are significantly negative associated to the firm profitability. Thus, the

firm manager should concern about reduction of cash conversion period in order to create

shareholder wealth.

The primary aim of this study is to investigate the relationship between working capital

management and firm’s profitability in Oil Drilling and Exploration sector in India. Since our

study focused exclusively on the four Oil Drilling and Exploration firms for the 5 years,

therefore, there is much to be explored about working capital management and its relationship

with profitability with respect to Indian firms from other industries as well. We suggest that

further research may be conducted on the same issue with more companies covering diverse

industries and more number of years in the sample. The scope of further research may also

be extended to other components of working capital management such as cash, marketable

securities, receivables and inventory management.

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Title of the study: “Leverage” – An Analysis and Its Impact On Profitability With Reference To

Selected Oil And Gas Companies.

Date of issue: International Journal of Business and Management Invention ISSN (Online): 2319 –

8028, ISSN (Print): 2319 – 801X Volume 2 Issue 7ǁ July. 2013ǁ PP.50-59

Authors: Khushbakht Tayyaba

OBJECTIVE OF THE STUDY:

An investor who wants to make investment activity has to assess a lot of information about past

performance and the expected future performance of the companies, industries and the economy

before taking the investment decision. The present study is concerned with the analysis of the impact

of leverage and liquidity on profitability of selected oil and gas companies. The objectives of this

study are as follows:

companies.

METHODOLOGY:

Models:

Model 1

ROA=DFLDOL

Model 2

ROE=DFLDOL

Model 3

ROI=DFLDOL

Model 4

EPS=DFLDOL

Where: ROA= Return on asset, ROE= Return on equity ROI= Return on investment DFL =Degree

of financial leverage DOL=Degree of operating leverage ɛ = the error term α: the constant, β: the

regression coefficient Leverage ratios are the financial statement ratios which show the degree to

which the business is leveraging itself through its use of borrowed money. The financial leverage

ratio indicates the extent to which the business relies on debt financing. A high financial leverage

ratio indicates possible difficulty in paying interest and principal while obtaining more funding.

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FINDINGS:

This paper explained the studies on the leverage analysis and its impact on profitability with

reference to Oil and Gas companies. Using the Panel data of companies between 2007 and 2012, we

examined that whether there is effect of leverage on profitability or not. I used return on asset, return

on equity, return on investment and Earning per share as dependent variables and degree of financial

leverage and degree of operating leverage as independent variables. After applying regression,

correlation descriptive analysis it is concluded that DFL and ROA have positive relationship while

DOL and ROA have inverse relationship. It means that there is positive correlation between ROA

and DFL while there is negative correlation between ROA and DOL.DFL, DOL and ROE have

positive relationship. It means that there is positive correlation between these variables. DFL and

ROI have inverse relationship and similarly DOL and ROI also have inverse relationship. It means

that there is negative correlation between these variables. DFL and EPS have positive relationship

while DOL and EPS have negative relationship. There is positive correlation between DFL and EPS

while there is negative correlation between DOL and EPS. These results does not affect significantly.

So there is no significant effect of DFL and DOL on ROA, ROE, ROI and EPS.It was supposed that

highly leveraged oil and gas companies have lower profitability. However, this research is opposite

to the supposition that there is positive relationship between financial leverage and both profit

measures. It was also supposed that highly leveraged companies are riskier with reference to return

on equity and investment. The results showed that high leveraged firms were less risky in both

market-based and accounting-based measures and it is opposite to the hypothesis one. Industry

specific variables may help in explaining these unexpected findings.

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Title of the study: FINANCIAL ANALYSIS OF OIL AND PETROLEUM INDUSTRY.

Date of issue: INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT &

MANAGEMENT, VOLUME NO. 2, ISSUE NO. 6 , JUNE, 2012, ISSN 2231-5756

Authors: DR. ASHA SHARMA

OBJECTIVE OF THE STUDY:

o To analyze the profitability, solvency position and liquidity position of companies.

o To identify the net profit and EPS growth rate performance of companies.

METHODOLOGY:

The researcher, being an external analyst, had to depend mainly upon secondary data for the purpose

of studying the financing performance of Oil and

Petroleum Industries in India from the top three companies in India which is highly performed in

overall growth in terms of finance, exports and total assets

value. The exploratory research techniques have been used for this study and also the study is

restricted only to Indian based oil and petroleum organizations.

FINDINGS:

The major findings from the present study are:

· Profitability – decline.

· Financial Strength – not highly satisfactory.

· Fixed Assets-Financed mainly through owners fund

· Working Capital - Not efficiently and effectively managed.

On the basis of the analysis of profitability, Activity, earning per share, fixed assets and inventory

turnover, it can be concluded that the performance of selected five companies i.e., Oil and Natural

Gas Corporation, Reliance Petroleum Limited, Oil India Limited, Hindustan Petroleum Corporation

and Cairn India Limited EPS is high, Current Assets is above standard, Proprietary fund also found

satisfactory. The position of the ONGC can be ranked on top among the selected unit and based on

the analysis of data. Indian Oil and Petroleum Industry is an independent and self-reliant industry. It

has large and potential domestic and international market. The main problems with the Petroleum

Industry in India are related to infrastructural developments. The lack of proper storage facilities,

enhancements in refining capacities, and fluctuating import prices plays important role in the

development of the sector.

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The study has analyzed the short term and profitability position of leading Oil and Petroleum

companies in India, some of the important ratios were used to measure the financial performance of

five selected companies. Based on the above analysis the overall performance of ONGC is one of the

major and fully vertically integrated composite mills player in India. It produces around 77% of

India's total crude oil production (and around 30% of total demand) and around 81% of natural gas

production. ONGC is one of the largest publicly traded companies by market capitalization in India

and the largest India-based company measured by. The result of financial analysis also shows that

ONGC is comparatively good with the other four companies. Its financial position is found to be

highly satisfactory level in net profit growth on the profitability level, short term liquidity position,

efficiency level, solvency capacity and investment analysis basis. The other two selected ONGC

companies performance were not satisfactory positions. Hence these companies will have to

strengthen its shareholders funds and working capital to compete and enhancing its current

performances in growing Oil and Petroleum in global business environment. This is an attempt

identify and study the movement of key financial parameters and their relationship with profitability

of Oil and Petroleum industry. It is an attempt to and the study whether the key identified parameters

move in a synchronous way going up and coming down with basic profitability parameters. All three

comparably profit-making companies have been taken as the sample for study for the period of 2006

to 2010. The data have been taken from the figures supplied by prowess database. On the basis of

this data a trend parameter is calculated for the year 2011. So, on the base of the analysis, the broad

conclusion is that the parameters are consistent within a wide horizon and with the growth that

companies have achieved, the parameters have also responded in a synchronous manner.

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Chapter 2

Industry Profile

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2.0Introduction-

The oil and gas sector is among the six core industries in India and plays a major role in influencing

decision making for all the other important sections of the economy.

In 1997–98, the New Exploration Licensing Policy (NELP) was envisaged to fill the ever-increasing

gap between India’s gas demand and supply. A recent report points out that the Indian oil and gas

industry is anticipated to be worth US$ 139.8 billion by 2015. India’s economic growth is closely

related to energy demand; therefore the need for oil and gas is projected to grow more, thereby

making the sector quite conducive for investment.

The Government of India has adopted several policies to fulfil the increasing demand. The

government has allowed 100 per cent foreign direct investment (FDI) in many segments of the

sector, including natural gas, petroleum products, and refineries, among others. Today, it attracts

both domestic and foreign investment, as attested by the presence of Reliance Industries Ltd (RIL)

and Cairn India.

2.1 History-

India has become the third-largest energy consumer in 2015

In 2015,oil production in the country reached 0.75 mbpd as compared to 0.76 mbpd in 2014,

registering a decline of 0.85 percent. In 2014, country had, 5.7 billion barrels of proven oil

reserves

India had 1.4 tcm of gas proved reserves and produced 33.66 bcm of gas in 2015 which is

expected to rise and reach 33.73 bcm in 20

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Oil consumption is estimated to expand at a CAGR of 3.3 per cent during FY2008–16F to

reach 4.0 mbpd by 2016

Due to the expected strong growth in demand, India’s dependency on oil imports is likely to

increase further

Rapid economic growth is leading to greater outputs, which in turn is increasing the demand

of oil for production and transportation

With rising income levels, demand for automobile is estimated to increase

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2.2Growth-Rob

us domestic

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2.3 Size of the Industry-

PIPELINES: CRUDE PIPELINE NETWORK

India has a network of 9,573 km of crude pipeline having a capacity of 947.04 mmtpa*

In terms of length, IOCL accounts for 46.47 per cent (4,448 km) of India’s crude pipeline

network. Moreover, the company has the country’s longest pipelines: Salaya-Mathura-

Panipat Pipeline (1,870 km) and Haldia-Barauni/Paradip-Barauni Pipeline (1,302 km)

In terms of actual capacities, ONGC leads the pack with a share of 50.5 per cent, followed by

IOCL at 27.6 per cent

PIPELINES: REFINED PRODUCTS AND LPG PIPELINE NETWORK

With 14463 km of refined products pipeline network (capacity of 77.41 mmtpa) in India,

Indian Oil Corporation (IOC) leads the segment with more than half of the total length of

product pipeline network

Top three companies IOC, HPCL and BPCL contributes 76.90 per cent of the total length of

product pipeline network in 2015

In 2015 Gas Authority of India Limited (GAIL) has largest share (87.06 per cent or 2,032

km) of the country’s LPG pipeline network (2,334 km)

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PERSISTENT DOMESTIC DEMAND TO DRIVE THE MARKET

Page | 41

2.4 Major Players at National & Global Level –

ONGC: CONTINUING ON STRONG GROWTH PATH

IOCL: FLAGSHIP OF INDIAN REFINING

Indian Oil Group of Companies owns and operates 10 of India’s 22 refineries with a capacity

of 1.30 mbpd

In 2015, IOCL was ranked 119 in the Fortune Global 500 list

In 2015, Its network of crude oil and product pipelines runs to about 11081 Km

Subsidiary CPCL accounts for 49 per cent of market share in petroleum products

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RELIANCE INDUSTRIES: WELL POSITIONED FOR GROWTH

Reliance Industries has the biggest petrochemical refining complex in the world

The company was ranked 158th in the Fortune Global 500 list 2015

It contributes 14 per cent to India's exports and is going to invest around USD30 billion to

improve its businesses in the next three year

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KEY DOMESTIC OIL & GAS COMPANIES

Page | 44

KEY INTERNATIONAL OIL & GAS COMPANIES OPERATING IN INDIA

2.5 Government Regulations and Initiative-

Foreign Investment Policy-Oil and Gas sector

Page | 45

New Exploration & Licensing Policy Rounds

Some of the major initiatives taken by the Government of India to promote oil and gas sector are:

The Ministry of Petroleum and Natural Gas has put up for comments a draft policy, to opt for

revenue-sharing model while auctioning future oil and gas blocks for exploration to private

companies, compared to production-sharing mode earlier, in order to make the process more

transparent and market-oriented.

The Ministry of Petroleum and Natural Gas has announced a new 'Marginal Fields Policy',

which aims to bring into production 69 marginal oil and gas fields with 89 million tonnes or

Rs 75,000 crore (US$ 11.5 billion) worth of reserves, by offering various incentives to oil and

gas explorers such as exemption from payment of oil cess and customs duty on machinery

and equipment.

Government of India entered into bilateral discussion with Norway to extend co-operation

between the two countries in the field of oil and natural gas and hydrocarbon exploration.

To strengthen the country`s energy security, oil diplomacy initiatives have been intensified

through meaningful engagements with hydrocarbon rich countries.

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PAHAL - Direct Benefit Transfer for LPG consumer (DBTL) scheme launched in 54 districts

on November 11, 2014 and expanded to rest of the country on January 1, 2015 will cover

15.3 crore active LPG consumers of the country.

24 x 7 LPG service via web launched to provide LPG consumers an integrated solution to

carry out all services at one place, through MyLPG.in, from the comfort of their home.

The Government of India launched the 'Give It Up' campaign on LPG subsidy that helped it

save Rs 140 crore (US$ 21.11 million) as on 22nd July 2015 with nearly 12.6 lakh Indians

registering for the cause. As per recent statistics from oil ministry, as many as 30,000 to

40,000 households are giving up LPG subsidy each day.

Special dispensation for North East Region: For incentivising exploration and production in

North East Region, 40 per cent subsidy on gas price has been extended to private companies

operating in the region, along with ONGC and OIL.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Mr

Narendra Modi, has approved a mechanism for procurement of Ethanol by Public Sector Oil

Marketing Companies (OMCs) to carry out the Ethanol Blended Petrol (EBP) Program.

2.6 Challenges and Issues-

Some key factors affecting the Indian oil and gas industry are the following:

o Dominated by state controlled enterprises: The sector is primarily dominated by state

controlled enterprises, with only a few foreign players. The primary reason for this

could be the country’s regulatory framework, where ventures involving foreign

players take longer to get the required approvals. Further, the participation of foreign

players has been limited during the nine rounds of bidding for exploration rights

through the NELP, while the participation of state owned players has been high.

o Subsidies on Oil and Gas products: Eliminating subsidies on oil and gas products is

proving to be a major challenge for the government, due to political pressure. These

subsidies have led to large scale under recoveries in the Indian oil and gas sector.

o Environmental issues: Offshore mining of oil and gas and deep water exploration

poses significant threats to the environment in terms of potential threats of water

contamination. Further particulate emissions of refineries and production plants could

have an adverse impact on the environment as well.

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o Requirement of advanced technology for upstream segment: The industry faces a

shortage of skilled labour for the mining of unconventional assets such as shale gas

and Coal Bed Methane (CBM), which offer a huge potential in terms of ensuring

sustainability.

The Government has proactively aimed to curb some of these challenges including subsidies on

oil and gas, and technology requirements in the upstream segments through actionable reforms

such as the Kirith Parikh Committee’s recommendations, and by encouraging a higher level of

private sector participation. It further addresses them through initiatives introduced in the 2016–

17 Union Budget, as discussed in the subsequent sections.

2.7 Future Prospects-

The future of Indian oil and gas industry has good potential but it needs developmental

activities in this sector to strengthen itself.

The world at present is experiencing a lot of changes of mammoth proportions. The Petroleum

Industry in India is one of the harbingers of huge economic growth. The arena for business has now

gone global since trade boundaries are fast dissolving. These developments present India with

tremendous opportunities in the future to be one of the major players in the export of petrochemical

intermediaries.

Today, India imports more than 70% of its oil requirements. The search for more oil led India to sift

through the international markets comprising of the emerging energy-trading countries - China,

Russia, and Iran. India has made new partnerships with Venezuela, Burma, Middle East nations, and

Pakistan.

The long-term energy strategies of India have to emphasize on the methods of using energy

effectively and efficiently, and to enhance energy self-sufficiency. To lift the Indian economy to

enhanced economic standards innovation, diplomacy, creativity, and vision are the need of the hour.

India has to compete for conventional energy sources and for that there must be

developmental activities for energy efficient buildings and vehicles. The main problems with the

Petroleum Industry in India are related to infrastructural developments. The lack of proper storage

facilities, enhancements in refining capacities, and fluctuating import prices plays important role in

the development of the sector.

The target of improvement for the growth of the economy for India should be in the area of

the petrochemical sector. The need for intermediary products for the manufacturing of the end use

Page | 48

products is an important sector to tap in. With the per capita consumption for the petrochemical

products in India being low and the production of these products being high, India may become one

of the leading exporters of such intermediary products.

The future of Indian Oil & Gas Industry depends on:

Demand for petroleum is growing in leaps and bounds

Shifting focus to more production of olefin - ethylene, propylene, butadiene,

Price and availability of crude oil and gas as feedstock would still be critical factors

The demand of the end products would affect the demand of the intermediary products

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2.8 PORTER’s Five Force Model-

Porter five forces model is the one which helps in finding out the efficiency as well as the

productivity which are faced by many companies while they are in the oligopolistic environment.

The 3 major forces are from the horizontal competition and the other two are from the vertical

competition. Under the horizontal factor forces that factor in are threat of new entrants, substitutes

and finally threat of existing players. Under vertical, bargaining power of buyers as well as suppliers

do arise. So, the porter’s five force analysis goes thus:

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Power of suppliers:

In the oil industry the major power is held by the supplier of oil. Here the major supplier is the

ONGC which supplies approximately 40% of the total oil produce all over the world. Among the top

oil importing countries India stands at 9th position with a requirement of 1.5 million barrels from

OPEC. So, looking at the dependence we can say that the supplier in this industry enjoys more power

and also it is having more power with regard to even fixing prices. But comparatively the bargaining

power these days is becoming low as the purchase is happening from many suppliers. For ex. Indian

oil has a method of purchasing. It calls tenders and who so ever bids lower price would be given the

deal. For the month of October it bought a millions of barrels from Tunisian Zarzaitine crude base.

After that it even bought from 4 mn barrels from Nigeria and also from the fields of bonga. So, as

and when demand is there Indian oil is purchasing from different suppliers. So, from the above

analysis we can say that top Indian companies like Indian have given very less scope for suppliers to

hold power as they purchase from various suppliers through tenders.

Power of buyers:

For the oil industry there are two types of buyers. One is the industrial buyer and the other is the

individual buyer. They both together constitute downstream buyers. These buyers get supplies from

the upstream buyer for ex. Indian oil. They do have an incentive to limit supply so they keep prices

as high as possible due to shrinking downstream margins. They do this because there are other

competitors for them. Say for example: Indian oil is having competitors like BP, SHELL and

RELIANCE in the diesel and petrol segment. Whereas, in the lubricants segment they face intense

competition from: CASTROL, SHELL and VALVOLINE products. So the industrial customers who

do bulk purchase is having good bargaining power as they order in huge quantity and on top of it

they have good number of other suppliers too. And for the individual consumers they have got wide

variety of choices. So they can switch to some other brand as there is no switching cost involved. So,

we can say that buyers are having considerable bargaining power in the oil industry.

Threat from existing players:

In the oil industry the competition is very fierce as the there is trading of commodities. And there is

competition even from the other industries also who supply chemicals and other fuel which acts as

substitute for the oil industry products. There is an estimation that the industry would grow at around

4%. Just because it is a commodity market it gets competitive advantage by giving products to public

at lower cost. This can be done by achieving efficiency in the productions and operations. Focusing

on just lubricants there has been distribution of market by various competitors. Gulf oil has full

acquired the buses segment, servo’s share consists of Lorries and trucks. With regard to valvoline it

has its market share from the drillers and other heavy equipment users. And finally Castrol has

Page | 51

targeted bike segment and high end users. So, from the above scenario we can say that there is more

rivalry among existing players in this oil industry.

Threat from substitutes:

If we see substitute for oil industry there are many. The other energy generating fuels such as coal,

solar energy, nuclear power pose as a substitute for oil industry. With the countries getting more and

more liberalized there arises chances for smaller firms to import oil at less price and reach out to

customers at lower price who are mainly focused on price factor. So by this the market share for the

larger companies like Indian oil, and shell will reduce. So some small aspects appear to be threat.

And also in the oil industry some refine the used oil and sell it as the normal ones, because of this the

price of the oil also would be lower and customer may opt for it. This also slightly poses as a threat

to the regular oil companies. And finally there are many substitutes which pose as a threat like solar

energy. Recently many are going green so as to reduce the carbon emission. So by that extent their

consumption of oil will reduce. Thus, this finally poses as a threat to oil industry.

Threat of new entrants:

This is also one of the factors that look in to while analyzing the oil industry attractiveness. The

threat appears to be low because to enter in to industry one should have the financial muscle and

should have good distribution channels. Apart from all these this industry asks for so many

environmental regulations to be followed which itself is a cumbersome process. It also requires high

level of expertise in the areas of extraction and exploration and also the refining. There is more fixed

cost involved in the upstream, downstream and also the other chemical products. All these factors

make new entrant to think twice to enter this industry.

From the above porters analysis we can say that the oil industry is very attractive. The threat from

the new entrants to the industry is low and also the bargaining power of buyers. Whereas bargaining

power of the supplier is high. This won’t affect much because sometimes big players would be

handling suppliers’ segment as well as the buyer segment. But the attractiveness is slightly reduced

by the internal rivalry between existing players which is high in the oil industry.

Page | 52

Chapter 3 & 4

Research Analysis &

Interpretations

Page | 53

1)Dividend Payout Ratio-

Dividend Payout Ratio= Dividends / Earnings Per Share

Dividend Payout

Ratio (%) Mar '11 Mar '12 Mar '13 Mar '14 Mar '15

ONGC 42.27 35.06 41.42 39.24 50.46

Gail India 27.93 31.76 31.88 31.78 26.38

Indian Oil 32.55 32.29 31.70 31.72 32.39

Hindustan Petroleum 32.42 33.29 33.63 31.92 32.35

Bharat Petroleum 34.30 31.71 31.62 31.81 33.96

*Source-Capitalline.com/database

Comparision Graph I -

Interpretation-

A consistent trend in Dividend Payout Ratio is usually more important than a high or low ratio, in

case of Dividend Payout Ratio. We found that,

Last five years Bharat Petroleum has more or less stable figure in their financial statement,

Consistency also seen in Hindustan Petroleum as its showing a stable line in the graph,

0.00

10.00

20.00

30.00

40.00

50.00

60.00

Mar '11 Mar '12 Mar '13 Mar '14 Mar '15

Pa

yo

ut

Ra

tio

Years

ONGC

Gail India

Indian Oil

Hindustan Petrolium

Bharat Petrolium

Page | 54

Hindustan Petroleum is the second most stable company as their figure and graph indicates a good

position over the five year periods.

except Gail India as it has a down move in the last financial year from year 2014-15 this figure has

fallen drastically but then again hold at the same level and reached from where it started five years

ago.

But ONGC is in the high fluctuating position as it has many up and down moves in the five years.

Generally, more mature and stable companies tend to have a higher ratio than newer start up

companies.

Page | 55

2) Return on Equity-

Return on Equity = Net Income/Shareholder's Equity

Companies Particulars Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC

Net Income 17,732.95 22,094.81 20,925.70 25,122.92 18,924.00

Shareholder's

Equity 1,44,600.98 1,36,725.01 1,24,453.22 1,12,956.73 97,504.43

Return on Equity 0.1226 0.1616 0.1681 0.2224 0.1941

Gail India

Net Income 3,039.17 4,375.27 4,022.20 3,653.84 3,561.13

Shareholder's

Equity 29,119.52 27,072.33 24,227.80 21,625.83 19,253.34

Return on Equity 0.1044 0.1616 0.1660 0.1690 0.1850

Indian Oil

Net Income 5,273.03 7,019.09 5,005.17 3,954.62 7,445.48

Shareholder's

Equity 67,969.97 65,992.08 61,124.31 57,876.70 55,332.32

Return on Equity 0.0776 0.1064 0.0819 0.0683 0.1346

Hindustan

Petroleum

Net Income 2,733.26 1,733.77 904.71 911.43 1,539.01

Shareholder's

Equity 16,022.09 15,012.16 13,726.40 13,122.52 12,545.81

Return on Equity 0.1706 0.1155 0.0659 0.0695 0.1227

Bharat

Petroleum

Net Income 5,084.51 4,060.88 2,642.90 1,311.27 1,546.68

Shareholder's

Equity 22,467.48 19,458.76 16,634.02 14,913.86 14,057.62

Return on Equity 0.2263 0.2087 0.1589 0.0879 0.1100

*Source-Capitalline.com/database

Return on Equity Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC 19.41% 22.24% 16.81% 16.16% 12.26%

Gail India 18.50% 16.90% 16.60% 16.16% 10.44%

Indian Oil 13.46% 6.83% 8.19% 10.64% 7.76%

Hindustan

Petroleum

12.27% 6.95% 6.59% 11.55% 17.06%

Page | 56

Bharat Petroleum 11.00% 8.79% 15.89% 20.87% 22.63%

Comparison Graph II -

Interpretation-

Return on Equity varies substantially across different industries. Therefore, it is recommended to

compare return on equity against company's previous values or return of a similar company. We get

here,

Bharat Petroleum is in top position by the analysis that has a consistent growth; return on equity is

one of the profitability ratios,

So along with it Hindustan Petroleum Also growing at the second position,

ONGC is in third position as it shows a declining move profitability is decreeing after year 2012,

Gail India is also a big company but failed to show its performance during the years2012-14 and

ending up declining in the last year.

Indian Oil Corporation is a top most company but it is showing high fluctuations which indicates its

profitability is not stable in the Oil and Gas industry.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Mar '11 Mar '12 Mar '13 Mar '14 Mar '15

Ret

urn

on

Eq

uit

y

Years

ONGC

Gail India

Indian Oil

Hindustan Petrolium

Bharat Petrolium

Page | 57

3) Earnings Retention Ratio-

Earnings Retention Ratio=1-(Payout Ratio)

Dividend Payout

Ratio (%) Mar '11 Mar '12 Mar '13 Mar '14 Mar '15

ONGC 42.27 35.06 41.42 39.24 50.46

Gail India 27.93 31.76 31.88 31.78 26.38

Indian Oil 32.55 32.29 31.70 31.72 32.39

Hindustan Petroleum 32.42 33.29 33.63 31.92 32.35

Bharat Petroleum 34.30 31.71 31.62 31.81 33.96

*Source-Capitalline.com/database

Earnings Retention Ratio Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC 49.55% 60.76% 58.59% 64.94% 57.73%

Gail India 73.63% 68.22% 68.12% 68.24% 72.07%

Indian Oil 67.60% 68.28% 68.30% 67.72% 67.45%

Hindustan Petroleum 32.39% 31.95% 33.68% 33.32% 32.46%

Bharat Petroleum 66.04% 68.19% 68.38% 68.29% 65.69%

Comparison Graph III -

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Mar '11 Mar '12 Mar '13 Mar '14 Mar '15

Earn

ings

Ret

enti

on

Rati

o

Years

ONGC

Gail India

Indian Oil

Hindustan Petrolium

Bharat Petrolium

Page | 58

Interpretation-

High Earnings Retention Ratio is not always good, as it shows company don’t pay dividend to the

investors. In this analysis we can see,

Hindustan petroleum has a stable rate of retention at 30% that shows it is paying dividend

consistently,

ONGC is only company which is declining year by year, started from below 60% it came down to

50%.,

Bharat Petroleum is stable at 65%, it has paid low dividend to investor,

Position of Indian Oil Corporation is little weak compare to others,

Gail India has the highest Earnings Retention Ratio,

More over position of industry is stable, which shows that dividend has paid by each company at a

fixed rate with the increasing profit.

Page | 59

4)Gross Profit Margin-

Gross Profit Margin= (Revenue-COGS) / Revenue

Companies Particulars Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC

Gross Profit 37,823.19 43,039.20 38,917.90 44,138.48 29,856.09

Sales

Revenue 82,870.96 83,890.27 82,970.05 76,488.02 68,316.17

Gross Profit

Margin 45.64% 51.30% 46.91% 57.71% 43.70%

Gail India

Gross Profit 5,252.53 7,572.85 7,038.71 6,130.72 5,890.24

Sales

Revenue 56,741.98 57,507.93 47,522.69 40,440.76 32,536.52

Gross Profit

Margin 9.26% 13.17% 14.81% 15.16% 18.10%

Indian Oil

Gross Profit 12,523.95 15,685.60 10,848.79 8,622.10 13,642.53

Sales

Revenue 4,43,777.07 4,79,271.66 4,52,014.13 4,02,797.74 3,32,245.15

Gross Profit

Margin 2.82% 3.27% 2.40% 2.14% 4.11%

Hindustan

Petroleum

Gross Profit 6,132.88 4,817.45 3,458.08 2,932.17 3,744.68

Sales

Revenue 2,06,626.18 2,23,351.53 2,08,062.81 1,79,512.82 1,34,981.36

Gross Profit

Margin 2.97% 2.16% 1.66% 1.63% 2.77%

Bharat

Petroleum

Gross Profit 9,931.53 8,195.80 5,961.79 3,769.04 4,050.29

Sales

Revenue 2,38,086.90 2,60,074.99 2,40,115.75 2,11,972.97 1,51,639.45

Gross Profit

Margin 4.17% 3.15% 2.48% 1.78% 2.67%

*Source-Capitalline.com/database

Page | 60

Gross Profit

Margin Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC 45.64% 51.30% 46.91% 57.71% 43.70%

Gail India 9.26% 13.17% 14.81% 15.16% 18.10%

Indian Oil 2.82% 3.27% 2.40% 2.14% 4.11%

Hindustan

Petroleum 2.97% 2.16% 1.66% 1.63% 2.77%

Bharat Petroleum 4.17% 3.15% 2.48% 1.78% 2.67%

Comparison Graph IV -

Interpretation-

High gross profit margin indicates that the company can make a reasonable profit, as long as it keeps

the overhead cost in control. Low gross profit margin indicates that the business is unable to control

its production cost. We found by the analysis,

That except ONGC other competitors are almost slightly at declining position, fluctuations can be

noticed in ONGC.

Gail India is slowly declining from its position where it started five years from now,

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Mar'11

Mar'12

Mar'13

Mar'14

Mar'15

Gro

ss P

rofi

t M

arg

in

Years

ONGC

Gail India

Indian Oil

HindustanPetrolium

Bharat Petrolium

Page | 61

But good indicator is Hindustan Petroleum, Bharat Petroleum and Indian Oil Corporation is at

growth stage and showing potential to be a market leader all three companies are showing an upward

move in the gross profit margin.

Page | 62

5) Net Profit Margin-

Net Profit Margin=Net Profit/Sales Revenue

Companies Particulars Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC

Net Profit 17,732.95 22,094.81 20,925.70 25,122.92 18,924.00

Sales

Revenue 82,870.96 83,890.27 82,970.05 76,488.02 68,316.17

Net Profit

Margin 21.40% 26.34% 25.22% 32.85% 27.70%

Gail India

Net Profit 3,039.17 4,375.27 4,022.20 3,653.84 3,561.13

Sales

Revenue 56,741.98 57,507.93 47,522.69 40,440.76 32,536.52

Net Profit

Margin 5.36% 7.61% 8.46% 9.04% 10.95%

Indian Oil

Net Profit 5,273.03 7,019.09 5,005.17 3,954.62 7,445.48

Sales

Revenue 4,43,777.07 4,79,271.66 4,52,014.13 4,02,797.74 3,32,245.15

Net Profit

Margin 1.19% 1.46% 1.11% 0.98% 2.24%

Hindustan

Petroleum

Net Profit 2,733.26 1,733.77 904.71 911.43 1,539.01

Sales

Revenue 2,06,626.18 2,23,351.53 2,08,062.81 1,79,512.82 1,34,981.36

Net Profit

Margin 1.32% 0.78% 0.43% 0.51% 1.14%

Bharat

Petroleum

Net Profit 5,084.51 4,060.88 2,642.90 1,311.27 1,546.68

Sales

Revenue 2,38,086.90 2,60,074.99 2,40,115.75 2,11,972.97 1,51,639.45

Net Profit

Margin 2.14% 1.56% 1.10% 0.62% 1.02%

Net Profit Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

Page | 63

Margin

ONGC 21.40% 26.34% 25.22% 32.85% 27.70%

Gail India 5.36% 7.61% 8.46% 9.04% 10.95%

Indian Oil 1.19% 1.46% 1.11% 0.98% 2.24%

Hindustan

Petroleum 1.32% 0.78% 0.43% 0.51% 1.14%

Bharat

Petroleum 2.14% 1.56% 1.10% 0.62% 1.02%

Comparison Graph V -

Interpretation-

Net profit (NP) ratio is a useful tool to measure the overall profitability of the business. A high ratio indicates

the efficient management of the affairs of business. Analysis shows,

That market leader ONGC and Gail India’s net profit ratio is drastically declining where others are moving

upwards,

But Bharat Petroleum is performing good as it has third highest profit in the industry and showing growth,

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Mar '11 Mar '12 Mar '13 Mar '14 Mar '15

Net

Pro

fit

Marg

in

Years

ONGC

Gail India

Indian Oil

Hindustan Petrolium

Bharat Petrolium

Page | 64

Hindustan Petroleum is also showing better performance compare to the market leaders,

Indian Oil Corporation is also has same movement like Hindustan Petroleum in future it can become a

important company for Oil and Gas Sector,

Overall we can say the performance of profit margin is disappointing for the investors, growth is also slow as

shown in the graph from year 2014-15 its effecting industry performance also.

Page | 65

6)Earnings Per Share-

EPS = Net Income / Average Outstanding Common Shares

EPS Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC 18.83 24.21 22.94 27.81 20.7

Gail India 22.75 32.72 30.11 27.39 26.85

Indian Oil 20.37 27.43 19.56 15.49 29.19

Hindustan

Petroleum 75.64 48.51 25.24 25.51 43.13

Bharat Petroleum 66.25 53.44 34.79 34.69 40.81

*Source-Capitalline.com/database

Comparison Graph VI -

Interpretation:

We found that,

Top five oil and gas sector companies are not having higher Earnings per share except Hindustan

petroleum and Bharat Petroleum that shows the good profit these two companies are making every

year and moving upwards trends it has a capability to hold the lead position in upcoming days,

Gail India are not gaining good profit,

0

10

20

30

40

50

60

70

80

Mar'11

Mar'12

Mar'13

Mar'14

Mar'15

EP

S

Years

ONGC

Gail India

Indian Oil

HindustanPetrolium

Bharat Petrolium

Page | 66

Higher earnings per share ratio often make the stock price of a company rise. But for Indian Oil it

shows many up and down moves we can easily understood that this is a very risky company to

invest,

Specially for big market leader ONGC, it’s not a good sign to decline its earnings per share below

past five years. It means profitability is less for the shareholders.

Page | 67

7) Price To Earnings Ratio-

P/E ratio = Price per share / Earnings Per Share (EPS)

P/E Ratio Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC 16.29 13.16 13.58 9.61 14.01

Gail India 17.09 11.48 10.6 13.69 17.32

Indian Oil 18.08 10.17 14.39 16.95 11.45

Hindustan

Petroleum 8.59 6.39 11.3 11.89 8.28

Bharat

Petroleum 12.23 8.61 10.87 20.16 14.98

*Source-Capitalline.com/database

Comparison Graph VII -

Interpretation:

The price earnings ratio is prospect ratio that calculates the market value; this analysis shows, That

after year 2014 all companies heading upwards. It means all over performance of the oil industry is

doing very well,

Bharat Petroleum has long up and down move in the graph which means share prices have fall

drastically,

0

5

10

15

20

25

Mar '11 Mar '12 Mar '13 Mar '14 Mar '15

P/E

Rati

o

Years

ONGC

Gail India

Indian Oil

Hindustan Petrolium

Bharat Petrolium

Page | 68

Hindustan Petroleum also has declined by three year consistently now it has moved up enormously,

Gail India definitely at second position after Indian Oil but it also gain value from the year 2014,

Indian Oil is at top position after a continuous fall in share price now it is able to gain up to 18.08%,

ONGC is at third position holding but it is very consistent and gaining its share price yearly,

after continuous declining from year 2012 to 2014,

Industry is moving upwards with a faster rate.

Page | 69

8)Return on net worth-

Return on Net Worth =Net After-Tax profits/(Shareholder capital + Retained

earnings)

Return on Net

Worth(%) Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC 12.61 16.92 17.63 23.87 20.48

Gail India 10.82 17.06 17.54 17.88 19.76

Indian Oil 6.23 9.25 8.41 18.61 14.06

Hindustan Petroleum 17.61 12.07 6.74 7.1 14.21

Bharat Petroleum 24.25 22.5 16.75 9.05 11.4

*Source-Capitalline.com/database

Comparison Graph VIII -

0

5

10

15

20

25

30

Mar'11

Mar'12

Mar'13

Mar'14

Mar'15

Ret

urn

on

Net

Wort

h

Years

ONGC

Gail India

Indian Oil

HindustanPetrolium

Bharat Petrolium

Page | 70

Interpretation-

The analysis shows that the return that shareholders could receive on their investment in a company,

If all of the profit earned was to be passed through directly to them is higher in Bharat Petroleum and

Hindustan Petroleum as compared to other giant companies like Gail India.

However ONGC’s performance is average as long fluctuations we can see in the comparison graph.

Gail India is in the second last position it shows investment are not gaining return what it supposed

to get,

Indian Oil again disappointing performance as per the investor’s view it has not generating returns to

its shareholders fund.

Page | 71

9) Current ratio-

Current Ratio = Current Assets / Current Liabilities

Current Ratio Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC 0.87 0.93 0.99 0.95 1.31

Gail India 0.89 0.89 0.8 0.83 1.04

Indian Oil 0.89 0.89 0.87 0.84 0.81

Hindustan

Petroleum 0.89 0.82 0.76 0.71 0.7

Bharat Petroleum 0.82 0.82 0.73 0.67 0.66

*Source-Capitalline.com/database

Comparison Graph IX -

Interpretation-

The analysis result showing that all five companies are under performing in maintaining current

assets over current liabilities, but all companies have maintain a close competition amongst them.

Indian Oil, Gail India and Hindustan Petroleum is holding top position if we compare these three

companies are in better position that manages its assets and liabilities up to some extent,

0

0.2

0.4

0.6

0.8

1

1.2

1.4

Mar '11 Mar '12 Mar '13 Mar '14 Mar '15

Cu

rren

t R

ati

o

Years

ONGC

Gail India

Indian Oil

Hindustan Petrolium

Bharat Petrolium

Page | 72

Bharat Petroleum is however in weak position compare to others,

ONGC, though it is at second position but overall performance of liquidity is poor as it has declined

drastically.

But it is showing that current liability of top five companies are higher than the current assets and so

liquidity measurement is quite weak.

Page | 73

10) Return On Capital Employed-

ROCE = Earnings Before Interest and Tax (EBIT) / Capital Employed

Return On Capital

Employed(%) Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC 15.8 20.83 21.3 28.41 24.93

Gail India 11.64 18.58 20.2 22.07 26.52

Indian Oil 6.39 8.4 8.16 13.55 11.58

Hindustan Petroleum 9.7 7.24 5.6 7.54 9.28

Bharat Petroleum 20.58 17.69 14.65 10.21 10.17

*Source-Capitalline.com/database

Comparison Graph X -

Interpretations-

The analysis shows that the return that shareholders could receive on their investment in a company,

If all of the profit earned was to be passed through directly to them is higher in Bharat Petroleum and

Hindustan Petroleum as compared to other giant companies like Gail India.

However ONGC’s performance is average as long fluctuations we can see in the comparison graph.

0

5

10

15

20

25

30

Mar'11

Mar'12

Mar'13

Mar'14

Mar'15

Ret

urn

On

Ca

pit

al

Em

plo

yed

Years

ONGC

Gail India

Indian Oil

HindustanPetrolium

Bharat Petrolium

Page | 74

Gail India is in the average position, as it shows capital investment are not gaining return what it

supposed to get,

Indian Oil again disappointing performance as per the investor’s view it has not generating returns to

its capital employed.

Page | 75

11) Debt - Equity Ratio-

Debt - Equity Ratio = Total Liabilities / Shareholders' Equity

*Source-Capitalline.com/database

Comparison Graph XI-

Interpretation-

The analysis shows that.

ONGC is throughout this five year performed quite stably so level of risk of financing is very low

and company is safe,

0

0.5

1

1.5

2

2.5

Mar'11

Mar'12

Mar'13

Mar'14

Mar'15

Deb

t E

qu

ity R

ati

o

Years

ONGC

Gail India

Indian Oil

HindustanPetrolium

Bharat Petrolium

Debt Equity Ratio Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC 0 0 0.02 0.02 0.09

Gail India 0.3500 0.3800 0.3100 0.1900 0.1100

Indian Oil 1.0600 1.3100 1.3100 1.1300 0.9200

Hindustan Petroleum 1.6900 2.2900 2.3700 2.1400 1.9200

Bharat Petroleum 0.8000 1.2200 1.4800 1.4500 1.5200

Page | 76

Other competitors are far behind in comparison to Debt to Equity,

Hindustan Petroleum has slipped from its position over the years but now generally goind strong,

Bharat petroleum is getting strong position for debt-equity, as it has successfully managing its debts

over equity is decreasing year by year it is a good sign,

Indian Oil also now showing that its debts are coming down or there are more equity investment,

Danger signal for Gail India as every year their debts are increasing so the graph is moving upwards,

so the company needs to reduce their debts quickly or else it can create a problem,

But in other hand overall position of oil and gas industry is getting stronger as graph is moving

downwards for all top five companies.

Page | 77

12) Interest Coverage Ratio-

Interest Coverage Ratio=EBIT/Interest Expense

Interest Coverage Ratio Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC 9,519.00 90,089.72 1,106.08 1,053.04 1,100.82

Gail India 12.86 18.48 32.06 46.85 64.24

Indian Oil 2.82 2.62 1.87 3.05 4.37

Hindustan Petroleum 6.88 2.96 2.04 1.55 3.92

Bharat Petroleum 13.72 5.38 3.21 2.05 3.14

*Source-Capitalline.com/database

Comparison Graph XII -

Interpretation-

ONGC is way ahead in the comparison with other. All other companies are growing Interest

Coverage Ratio slowly.

Bharat petroleum is in second position as it stopped in 13.72, good position as gross profit is more,

0.00

10.000.00

20.000.00

30.000.00

40.000.00

50.000.00

60.000.00

70.000.00

80.000.00

90.000.00

100.000.00

Mar'11

Mar'12

Mar'13

Mar'14

Mar'15

Inte

rest

Co

ver

age

Rati

o

Years

ONGC

Gail India

Indian Oil

HindustanPetrolium

Bharat Petrolium

Page | 78

Gail India is in third position as it holds to 12.86, to maintain its interest expence,

Next will be the Hindustan Petroleum interest expense is more that shows a poor performance or

debt is high,

Indian Oil a risky position as its debts are more so it is not a good sign for the company.

Page | 79

13) Inventory Turnover Ratio-

Inventory Turnover Ratio=Cost of Goods Sold ÷ Average Inventory

Inventory Turnover Ratio Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC 12.9 13.38 14.25 15.36 14.41

Gail India 26.22 30.4 32.1 35.62 44.37

Indian Oil 8.58 8.1 8.18 8.05 8.36

Hindustan Petroleum 13.69 13.21 12.1 10.51 9.85

Bharat Petroleum 15.11 15.16 15.36 14.21 11.92

*Source-Capitalline.com/database

Comparison Graph XIII -

Interpretations-

Inventory Turnover Ratio shows how efficient a company is managing their inventory over its sells;

by the comparison graph we can see,

An worrying factor is present for Gail India,

Companies like ONGC, Indian Oil are quite stable in this position,

05

101520253035404550

Mar'11

Mar'12

Mar'13

Mar'14

Mar'15

Inven

tory

Tu

rno

ver

Rati

o

Years

ONGC

Gail India

Indian Oil

HindustanPetrolium

Bharat Petrolium

Page | 80

only Gail India is declining year by year,

where as we found a growth aspect in both Hindustan petroleum and Bharat Petroleum as they are

showing upward trends and will be performing well in near future,

A high ratio says a high liquidity in company but low inventory also where too low ratio is also not

good for liquidity of the company.

Page | 81

14) Debtors Turnover Ratio-

Debtors Turnover Ratio=Net Credit Sales/Average Accounts Receivable

Debtors Turnover Ratio Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC 7.64 11.21 12.76 15.09 19.47

Gail India 19.46 21.73 21.63 21.93 21.09

Indian Oil 53.34 45.17 45.33 45.97 48.84

Hindustan Petroleum 47.92 44.71 51.11 57.06 52.18

Bharat Petroleum 75.74 66.88 48.19 49.94 62.87

*Source-Capitalline.com/database

Comparison Graph XIV -

Interpretation-

Current analysis indicates a very strong and efficient position for Bharat Petroleum as their

receivables are more,

Then Indian Oil is at stable position but year 2015 their growth is good so holding the second

position,

0

10

20

30

40

50

60

70

80

Mar '11 Mar '12 Mar '13 Mar '14 Mar '15

Deb

tors

Tu

rnover

Rati

o

Years

ONGC

Gail India

Indian Oil

Hindustan Petrolium

Bharat Petrolium

Page | 82

And then Hindustan Petroleum is struggling to maintain its sale and credit sales to manage debtor

turnover ratio efficiently,

Where in the year 2015, ONGC and Gail India has faced a decline stage in the market.

So top companies for this analysis are way ahead from the first year itself (2011).

Page | 83

15) Fixed Asset Turnover Ratio-

Fixed Asset Turnover Ratio=Net Sales/ Net Fixed Assets

Fixed Asset Turnover

Ratio Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

ONGC 0.47 0.52 0.58 0.59 0.58

Gail India 1.53 1.79 1.68 1.69 1.53

Indian Oil 4.05 4.63 4.66 4.44 4.33

Hindustan Petroleum 4.79 5.85 6.16 6.01 5.27

Bharat Petroleum 6.33 7.55 7.66 7.29 5.97

*Source-Capitalline.com/database

Comparison Graph XV -

Interpretation-

We found top companies of oil and gas sector such as ONGC and Gail India are able to maintain a

stable ratio that shows from past five years they are managing their fixed asset in a same manner to

generate its revenue or it can imply that simultaneous growth of fixed asset and sales.

0

1

2

3

4

5

6

7

8

9

Mar '11 Mar '12 Mar '13 Mar '14 Mar '15

Fix

ed

Ass

et T

urn

over

Rati

o

Years

ONGC

Gail India

Indian Oil

Hindustan Petrolium

Bharat Petrolium

Page | 84

But other three companies Bharat Petroleum, Hindustan Petroleum have shown an up move either by

decreasing assets or their profit is more and a decline that shows inefficient management of fixed

assets more or less in same percentage.

Indian oil is a average company accordingly as their not too high in profit and not too low in assets

as well,

So overall position holding for this industry is moderate as most companies are in a stable mode to

evaluating by their fixed assets,

Page | 85

Chapter 5

Findings , Suggestions

and Conclusions

Page | 86

FINDINGS

A consistent trend in Dividend Payout Ratio is usually more important than a high or low ratio, in

case of Dividend Payout Ratio. We found that last five years every company has more or less stable

figure in their financial statement, except Gail India as it has a very high fluctuation from year 2012-

13 this figure has fallen drastically but then again hold at the continuous level and manages to

maintain its position in the market. But ONGC is in the top position. Generally, more mature and

stable companies tend to have a higher ratio than newer start up companies.

Return on Equity varies substantially across different industries. Therefore, it is recommended to

compare return on equity against company's previous values or return of a similar company. Gail

India is in top position by the analysis that has a consistent growth; return on equity is one of the

profitability ratios. So along with Gail India, Hindustan Petroleum Also growing at the second

position.

High Earnings Retention Ratio is not always good, as it shows company don’t pay dividend to the

investors. In this analysis we can see all companies have a stable rate of retention. ONGC is only

company which is declining year by year. More over position of industry is stable.

High gross profit margin indicates that the company can make a reasonable profit, as long as it keeps

the overhead cost in control. Low gross profit margin indicates that the business is unable to control

its production cost. We found by the analysis that except ONGC other competitors are almost

slightly at declining position, fluctuations can be noticed in ONGC.

Net profit (NP) ratio is a useful tool to measure the overall profitability of the business. A high ratio indicates

the efficient management of the affairs of business. Analysis shows that market leader ONGC and Gail India’s

net profit ratio is drastically declining where others are moving upwards.

We found that top five oil and gas sector companies are not having higher Earnings per share except

Hindustan petroleum and Bharat Petroleum that shows others are not gaining good profit. Higher

earnings per share ratio often make the stock price of a company rise.

The price earnings ratio is prospect ratio that calculates the market value; this analysis shows that

after year 2014 all companies heading upwards.

The price earnings ratio is prospect ratio that calculates the market value; this analysis shows that

after year 2014 all companies heading upwards. It means all over performance of the oil industry is

Page | 87

doing very well, after continuous declining from year 2012 to 2014, industry has incline with a faster

rate.

The analysis shows that the return that shareholders could receive on their investment in a company,

if all of the profit earned was to be passed through directly to them is higher in Bharat Petroleum and

Hindustan Petroleum as compared to other giant companies like ONGC. However Indian Oil

Corporation’s performance is average as long fluctuations we can see in the comparison graph.

The analysis result showing that all five companies are under performing in maintaining current

assets over current liabilities, but all companies have maintain a close competition amongst them.

But it is showing that current liability of top five companies are higher than the current assets and so

liquidity measurement is quite weak.

The analysis shows that the return that shareholders could receive on their investment in a company,

if all of the profit earned was to be passed through directly to them is higher in Bharat Petroleum and

Hindustan Petroleum as compared to other giant companies like ONGC. However Indian Oil

Corporation’s performance is average as long fluctuations we can see in the comparison graph.

The analysis shows that ONGC is throughout this five year performed quite stably so level of risk of

financing is very low and company is safe, other competitors are far behind in comparison to Debt to

Equity. But in other hand overall position of oil and gas industry is getting stronger as graph is

moving downwards for all top five companies.

ONGC is way ahead in the comparison with other. All other companies are growing Interest

Coverage Ratio slowly.

Inventory Turnover Ratio shows how efficient a company is managing their inventory over its sells;

by the comparison graph we can see an worrying factor is present for Gail India. Other companies

are quite stable in this position, only Gail India is declining year by year. A high ratio says a high

liquidity in company but low inventory also where too low ratio is also not good for liquidity of the

company.

Current analysis indicates a very strong and efficient position for Bharat Petroleum then Indian Oil

and then Hindustan Petroleum. Where in the year 2015, ONGC and Gail India had faced a decline in

the market. So top companies for this analysis are way ahead from the first year itself (2011).

Page | 88

We found top companies of oil and gas sector such as ONGC and Gail India are able to maintain a

stable ratio that shows from past five years they are managing their fixed asset in a same manner to

generate its revenue or it can imply that simultaneous growth of fixed asset and sales. But other three

companies have shown an incline and a decline more or less in same percentage.

The major findings from the present study are:

Profitability – Stable.

Financial Strength – not highly satisfactory.

Fixed Assets- Positions of the companies are stable and low ratio indicates under-

utilization of fixed assets.

Efficiency - Not efficiently and effectively managed.

On the basis of the analysis of profitability, Activity, earning per share, fixed assets and inventory

turnover, it can be concluded that the performance of selected Five companies i.e., Oil and Natural

Gas Corporation, Gail India, Indian Oil Corporation Limited, Hindustan Petroleum Corporation and

Bharat Petroleum EPS is high, Current Assets is standard except

ONGC and Gail India, Turnover also found moving, financing position is not much strong. The

position of the ONGC can be ranked on top, but according to the financial efficiency and

profitability Hindustan Petroleum and Bharat Petroleum has shown lots of potential for future of the

Oil and Gas Sector among the selected unit and based on the analysis of data.

Page | 89

SUGGESTIONS

1) Since payout ratio is higher in ONGC, it’s a better company to invest. Specially investors

who all are looking for dividend. Hindustan Petroleum also has stability and future ability to

become one of key companies for Oil and Gas sector.

2) Bharat Petroleum and Hindustan Petroleum shows a high profitability and can even get

stronger position near future so based on returns investing will be a good decision in these

two companies.

3) As Hindustan Petroleum has a lower stable retention ratio so invest will be beneficial.

4) ONGC has highest profit but growth aspects are with Hindustan Petroleum and Bharat

Petroleum, normally from small company it will spread its market share and will grow better.

5) Investment has a expectation of getting return on investments that is to generate profitability

for shareholders.

6) Hindustan Petroleum and Bharat Petroleum is continuously growing to hold the key position

of market, business is doing well and use of fixed assets are efficient, interest payments also

has effective figures and just need to focus on increase the profitability and those company

should mange the liquidity of assets efficiently.

7) Gail India need to manage their profitability growth which is declining and asset management

is good but overall profitability is affected of its operations.

8) ONGC is a big company that has an effect in the entire industry, so it need to maintain its

growth, overall debt is 0 that is a good sign as liquidity is concern.

9) Indian Oil Corporation is a well versed company in the sector but their operations are such in

the way its effecting its overall performance, it has high fluctuation in the performance

measures, such as debtors turnover ratio, it shows some inefficient management of long term

debts that should be stable.

10) In this empirical study we have seen public sector companies have completely dominated

market position by all means, above considered companies are all public sector companies,

private sector companies are way behind of these top five companies in measurement of

performance.

Page | 90

CONCLUSION

After the above study and analysis we can conclude that the Indian Oil and Gas sector is highly

dominated and dependent on public sector companies than private sector companies, overall

performance of the industry is satisfactory as

Profitability is stable, Financial strength is not highly satisfactory, assets are underutilized but

positions are stable, but companies are not efficiently and effectively managed.

On the basis of the analysis of profitability, Activity, earning per share, fixed assets and inventory

turnover, it can be concluded that the performance of selected Five companies i.e., Oil and Natural

Gas Corporation, Gail India, Indian Oil Corporation Limited, Hindustan Petroleum Corporation and

Bharat Petroleum EPS is high, Current Assets is standard except

ONGC and Gail India, Turnover also found moving, financing position is not much strong. The

position of the ONGC can be ranked on top, but according to the financial efficiency and

profitability Hindustan Petroleum and Bharat Petroleum has shown lots of potential for future of the

Oil and Gas Sector among the selected unit and based on the analysis of data.

We can consider ONGC as top market leader in the industry, then Bharat Petroleum and Hindustan

Petroleum as future key companies with a good growth rate and profitable performance, Gail India is

disappointing as its declining drastically every year and underperforming, Indian oil is not good and

not bad in all aspects as its very unpredictable in the growths and decline as well,

So ultimately we can’t assume entire industry by the analysis of the five top most company cause

positions may change frequently but at least we can get a brief idea about the performance,

profitability, assets management and efficiency of the industry by the above study.

Page | 91

Bibliography

Page | 92

Websites-

http://www.ibef.org/industry/oil-gas-india.aspx

https://www.capitaline.com/

http://www.ogj.com/all-articles.html

Books-

M.Y.Khan & P.K.Jain, Financial Management,5th edition

Principles of Management Accounting by DR.S.N.Maheshwari

I.M.Pandey, Financial Management, 10th edition

Page | 93

Appendix

Page | 94

Annexure I-

Company : Oil & Natural Gas Corpn Ltd

Industry : Oil Exploration / Allied Services

Company >> Finance >> Balance Sheet (Rs in Crs.)

Year Mar 15 Mar 14 Mar 13 Mar 12 Mar 11

SOURCES OF FUNDS :

Share Capital + 4,277.76 4,277.76 4,277.76 4,277.76 4,277.76

Reserves Total + 1,40,323.22 1,32,447.25 1,20,175.46 1,08,678.97 93,226.67

Equity Share Warrants 0 0 0 0 0

Equity Application Money 0 0 0 0 0

Total Shareholders Funds 1,44,600.98 1,36,725.01 1,24,453.22 1,12,956.73 97,504.43

Secured Loans + 1,393.00 0 0 4,500.00 0

Unsecured Loans + 0 0 0 0 0

Total Debt 1,393.00 0 0 4,500.00 0

Other Liabilities+ 26,572.26 26,904.98 23,311.61 21,875.05 21,405.97

Total Liabilities 1,72,566.24 1,63,629.99 1,47,764.83 1,39,331.78 1,18,910.40

APPLICATION OF FUNDS :

Gross Block + 1,14,672.53 1,08,504.44 97,014.14 90,512.34 80,938.59

Less : Accumulated Depreciation

+ 82,967.92 78,013.26 69,321.75 68,656.70 62,137.55

Less:Impairment of Assets 213.88 211.93 208.91 175.49 161.5

Net Block + 31,490.73 30,279.25 27,483.48 21,680.15 18,639.54

Lease Adjustment 0 0 0 0 0

Capital Work in Progress+ 28,579.19 25,557.79 24,891.24 26,879.28 21,724.12

Producing Properties 66,711.03 65,783.26 52,440.71 46,376.83 43,575.66

Investments + 18,124.28 17,204.31 9,173.05 5,216.24 5,182.79

Current Assets, Loans &

Advances

Inventories + 6,464.00 6,423.65 6,158.74 5,533.59 4,477.95

Sundry Debtors + 13,578.27 8,165.67 6,863.72 6,194.82 3,994.68

Cash and Bank+ 2,760.07 10,798.88 13,218.59 20,124.56 14,481.09

Loans and Advances + 7,861.39 4,996.21 4,640.16 4,247.69 3,328.76

Page | 95

Total Current Assets 30,663.73 30,384.41 30,881.20 36,100.66 26,282.48

Less : Current Liabilities and

Provisions

Current Liabilities + 15,782.91 18,298.22 16,563.66 18,955.36 18,230.83

Provisions + 2,498.05 1,322.65 1,364.53 2,610.74 1,284.76

Total Current Liabilities 18,280.95 19,620.87 17,928.19 21,566.10 19,515.59

Net Current Assets 12,382.77 10,763.54 12,953.01 14,534.56 6,766.89

Miscellaneous Expenses not

written off + 0 0 0 0 0

Deferred Tax Assets 10,017.41 9,705.38 8,470.05 6,481.81 6,619.03

Deferred Tax Liability 27,750.57 26,284.06 21,358.03 17,679.68 16,569.42

Net Deferred Tax -17,733.16 -16,578.68 -12,887.98 -11,197.87 -9,950.39

Other Assets+ 33,011.40 30,620.52 33,711.32 35,842.59 32,971.79

Total Assets 1,72,566.23 1,63,630.00 1,47,764.83 1,39,331.78 1,18,910.40

Contingent Liabilities+ 68,108.17 67,871.33 34,993.33 23,963.37 18,338.43

Page | 96

Annexure II

Company : Oil & Natural Gas Corpn Ltd

Industry : Oil Exploration / Allied Services

Company >> Finance >> Profit & Loss (Rs in Crs.)

Year

Mar 15

(12)

Mar 14

(12)

Mar 13

(12)

Mar 12

(12)

Mar 11

(12)

INCOME :

Sales Turnover + 83,093.47 84,202.78 83,308.96 76,887.06 68,648.80

Excise Duty 222.51 312.51 338.91 399.04 332.63

Net Sales 82,870.96 83,890.27 82,970.05 76,488.02 68,316.17

Other Income + 5,367.22 6,711.90 5,446.82 7,593.52 3,406.85

Stock Adjustments + 167.43 -104.28 23.02 91.34 12.91

Total Income 88,405.61 90,497.89 88,439.89 84,172.88 71,735.93

EXPENDITURE :

Raw Materials + 70.9 92.15 190.95 283.58 294.4

Power & Fuel Cost+ 390.12 380.77 334.96 316.18 285.6

Employee Cost + 7,911.20 9,667.20 9,043.22 6,041.58 5,838.84

Other Manufacturing Expenses + 12,866.22 12,149.16 10,059.95 8,664.41 20,087.11

Selling and Administration

Expenses + 37,598.52 38,230.93 34,775.15 28,249.40 25,323.36

Miscellaneous Expenses + 13,566.99 10,241.36 14,978.12 12,461.69 16,014.58

Less: Pre-operative Expenses

Capitalised+ 21,824.33 23,303.24 19,888.00 16,017.26 25,989.16

Total Expenditure 50,579.62 47,458.33 49,494.36 39,999.58 41,854.73

Operating Profit 37,825.98 43,039.56 38,945.54 44,173.31 29,881.20

Interest + 2.79 0.36 27.64 34.83 25.11

Gross Profit 37,823.19 43,039.20 38,917.90 44,138.48 29,856.09

Depreciation+ 11,267.96 10,607.26 8,373.57 7,495.92 2,239.72

Profit Before Tax 26,555.23 32,431.94 30,544.33 36,642.56 27,616.37

Tax+ 7,615.17 6,484.59 7,928.52 10,277.58 7,668.21

Fringe Benefit tax+ 0 0 0 -5.41 -8.02

Page | 97

Deferred Tax+ 1,207.11 3,852.54 1,690.11 1,247.47 1,032.18

Reported Net Profit 17,732.95 22,094.81 20,925.70 25,122.92 18,924.00

Extraordinary Items + -247.91 171.54 -35.19 2,106.23 0

Adjusted Net Profit 17,980.86 21,923.27 20,960.89 23,016.69 18,924.00

Adjst. below Net Profit + 0 0 0 0 0

P & L Balance brought forward 0 0 0 0 0.03

Statutory Appropriations 0 0 0 0 0

Appropriations + 17,732.95 22,094.81 20,925.70 25,122.92 18,924.03

P & L Balance carried down 0 0 0 0 0

Dividend 8,127.72 8,127.72 8,127.72 8,341.61 7,486.05

Preference Dividend 0 0 0 0 0

Equity Dividend % 190 190 190 195 175

Dividend Per Share(Rs) 9.5 9.5 9.5 9.75 32.75

Earnings Per Share-Unit Curr 18.83 24.21 22.94 27.81 20.7

Earnings Per Share(Adj)-Unit Curr 18.83 24.21 22.94 27.81 20.7

Book Value-Unit Curr 169.01 159.81 145.47 132.03 113.97

Book Value(Adj)-Unit Curr 169.01 159.81 145.47 132.03 113.97

Page | 98

Annexure III

Oil & Natural Gas Corpn Ltd

Industry : Oil Exploration / Allied Services

Financial Overview

Mar-15 Mar-14 Mar-13 Mar-12 Mar-11

Equity Paid Up 4,277.76 4,277.76 4,277.76 4,277.76 4,277.76

Networth

1,44,600

.98

1,36,725

.01

1,24,453

.22

1,12,956

.73

97,504.4

3

Capital Employed

1,72,566

.24

1,63,629

.99

1,47,764

.83

1,39,331

.78

1,18,910

.40

Gross Block

1,14,672

.52

1,08,504

.44

97,014.1

4

90,512.3

4

80,938.5

9

Net Working Capital ( Incl. Def. Tax)

-

5,350.39

-

5,815.15 65.03 3,336.69

-

3,183.50

Current Assets ( Incl. Def. Tax)

40,681.1

4

40,089.7

9

39,351.2

6

42,582.4

7

32,901.5

1

Current Liabilities and Provisions ( Incl.

Def. Tax)

46,031.5

3

45,904.9

3

39,286.2

2

39,245.7

8

36,085.0

1

Total Assets/Liabilities (excl Reval &

W.off)

2,18,597

.77

2,09,534

.92

1,87,051

.05

1,78,577

.56

1,54,995

.41

Gross Sales

83,093.4

7

84,202.7

8

83,308.9

6

76,887.0

6

68,648.8

0

Net Sales

82,870.9

6

83,890.2

7

82,970.0

5

76,488.0

2

68,316.1

7

Other Income 5,367.22 6,711.90 5,446.82 7,593.52 3,406.85

Value Of Output

83,038.3

9

83,785.9

9

82,993.0

7

76,579.3

6

68,329.0

8

Cost of Production

32,860.4

5

33,303.0

3

28,308.1

9

23,041.7

0

28,963.7

2

Selling Cost 0 0 0 0 0

PBIDT 37,825.9 43,039.5 38,945.5 44,173.3 29,881.2

Page | 99

8 6 5 1 0

PBDT

37,823.1

9

43,039.2

0

38,917.9

1

44,138.4

8

29,856.0

9

PBIT

26,558.0

2

32,432.3

0

30,571.9

8

36,677.3

9

27,641.4

8

PBT

26,555.2

3

32,431.9

4

30,544.3

4

36,642.5

6

27,616.3

7

PAT

17,732.9

5

22,094.8

1

20,925.7

0

25,122.9

2

18,924.0

0

CP

29,000.9

1

32,702.0

7

29,299.2

7

32,618.8

4

21,163.7

2

Revenue earnings in forex 5,022.80 7,488.99 7,472.34 6,315.27 4,711.55

Revenue expenses in forex

18,768.9

4

19,688.0

9

19,921.4

7

21,326.9

7

18,817.9

8

Capital earnings in forex 0 0 0 0 0

Capital expenses in forex 0

18,210.5

9

17,709.4

6

18,842.8

9

18,297.4

3

Book Value (Unit Curr) 169.01 159.81 145.47 132.03 113.97

Market Capitalisation

2,62,482

.13

2,72,663

.15

2,66,545

.98

2,28,687

.98

2,48,194

.47

Financial Years High & Low Prices

High Date (BSE)

09-Jun-

14

28-Jun-

13

18-Jan-

13

29-Apr-

11

28-Sep-

10

High Price (BSE) 472 353 354.1 325.5 368

Low Date (BSE)

27-Mar-

15

28-Aug-

13

23-May-

12

15-Jul-

11

22-Apr-

10

Low Price (BSE) 301 234.4 240.1 226.95 249.34

High Date (NSE)

09-Jun-

14

28-Jun-

13

18-Jan-

13

29-Apr-

11

28-Sep-

10

High Price (NSE) 471.85 353.05 355 325.65 368.15

Low Date (NSE)

26-Mar-

15

28-Aug-

13

05-Oct-

12

23-Nov-

11

22-Apr-

10

Low Price (NSE) 298.8 234.2 227.4 241.75 249

Page | 100

CEPS (annualised) (Unit Curr) 32 36.61 32.73 36.57 23.32

EPS (annualised) (Unit Curr) 18.83 24.21 22.94 27.81 20.7

Dividend (annualised%) 190 190 190 195 175

Payout (%) 50.46 39.24 41.42 35.06 42.27

Cash Flow From Operating Activities

24,972.1

2

37,888.0

2

32,201.2

2

35,051.3

1

39,338.3

7

Cash Flow From Investing Activities

-

24,913.3

0

-

30,550.3

6

-

23,659.4

5

-

25,448.9

8

-

24,644.2

7

Cash Flow From Financing Activities

-

8,097.63

-

9,757.37

-

15,447.7

5

-

3,958.85

-

11,722.6

3

Rate of Growth (%)

ROG-Net Worth (%) 5.76 9.86 10.18 15.85 11.71

ROG-Capital Employed (%) 5.46 10.74 6.05 17.17 14.68

ROG-Gross Block (%) 5.68 11.84 7.18 11.83 13.12

ROG-Gross Sales (%) -1.32 1.07 8.35 12 14.03

ROG-Net Sales (%) -1.22 1.11 8.47 11.96 13.93

ROG-Cost of Production (%) -1.33 17.64 22.86 -20.45 29.45

ROG-Total Assets (%) 4.33 12.02 4.74 15.21 12.42

ROG-PBIDT (%) -12.11 10.51 -11.83 47.83 13.98

ROG-PBDT (%) -12.12 10.59 -11.83 47.84 13.95

ROG-PBIT (%) -18.11 6.09 -16.65 32.69 10.58

ROG-PBT (%) -18.12 6.18 -16.64 32.68 10.55

ROG-PAT (%) -19.74 5.59 -16.71 32.76 12.86

ROG-CP (%) -11.32 11.61 -10.18 54.13 17.66

ROG-Revenue earnings in forex (%) -32.93 0.22 18.32 34.04 2.71

ROG-Revenue expenses in forex (%) -4.67 -1.17 -6.59 13.33 27.67

ROG-Market Capitalisation (%) -3.73 2.29 16.55 -7.86 5.63

Key Ratios

Page | 101

Debt-Equity Ratio 0 0 0.02 0.02 0.09

Long Term Debt-Equity Ratio 0 0 0 0 0.09

Current Ratio 0.87 0.93 0.99 0.95 1.31

Turnover Ratios

Fixed Assets Ratio 0.47 0.52 0.58 0.59 0.58

Inventory Ratio 12.9 13.38 14.25 15.36 14.41

Debtors Ratio 7.64 11.21 12.76 15.09 19.47

Interest Cover Ratio 9,519.00

90,089.7

2 1,106.08 1,053.04 1,100.82

PBIDTM (%) 45.52 51.11 46.75 57.45 43.53

PBITM (%) 31.96 38.52 36.7 47.7 40.27

PBDTM (%) 45.52 51.11 46.72 57.41 43.49

CPM (%) 34.9 38.84 35.17 42.42 30.83

APATM (%) 21.34 26.24 25.12 32.68 27.57

ROCE (%) 15.8 20.83 21.3 28.41 24.93

RONW (%) 12.61 16.92 17.63 23.87 20.48

Debtors Velocity (Days) 48 45 43 39 37

Creditors Velocity (Days) 85 85 90 88 75

Assets Utilisation Ratio (times)

Value of Output/Total Assets 0.39 0.41 0.42 0.44 0.47

Value of Output/Gross Block 0.74 0.78 0.81 0.85 0.89

Page | 102

Annexure IV

Company : Bharat Petroleum Corporation Ltd

Industry : Refineries

Company >> Finance >> Balance Sheet (Rs in Crs.)

Year Mar 15 Mar 14 Mar 13 Mar 12 Mar 11

SOURCES OF FUNDS :

Share Capital + 723.08 723.08 723.08 361.54 361.54

Reserves Total + 21,744.40 18,735.68 15,910.94 14,552.32 13,696.08

Equity Share Warrants 0 0 0 0 0

Equity Application Money 0 0 0 0 0

Total Shareholders Funds 22,467.48 19,458.76 16,634.02 14,913.86 14,057.62

Secured Loans + 1,647.77 3,525.16 1,982.47 1,957.36 5,523.80

Unsecured Loans + 11,449.83 16,796.40 21,856.57 21,036.33 13,436.52

Total Debt 13,097.60 20,321.56 23,839.04 22,993.69 18,960.32

Other Liabilities+ 1,178.63 1,218.05 1,152.83 465.92 774.45

Total Liabilities 36,743.71 40,998.37 41,625.89 38,373.47 33,792.39

APPLICATION OF FUNDS :

Gross Block + 41,809.63 38,163.78 33,674.78 31,726.79 29,334.23

Less : Accumulated Depreciation

+ 21,494.57 19,124.27 16,984.37 15,114.41 13,334.90

Less: Impairment of Assets 0 0 0 0 0

Net Block + 20,315.06 19,039.51 16,690.41 16,612.38 15,999.33

Lease Adjustment 0 0 0 0 0

Capital Work in Progress+ 7,665.68 3,065.10 2,419.74 1,119.06 972.39

Producing Properties 0 0 0 0 0

Investments + 12,391.14 11,846.89 12,103.00 10,917.42 12,037.06

Current Assets, Loans &

Advances

Inventories + 14,457.85 19,071.13 16,690.37 15,948.06 15,375.08

Sundry Debtors + 2,607.67 4,080.16 4,025.13 6,378.34 2,532.65

Cash and Bank+ 1,360.20 203.76 2,328.86 978.85 379.03

Loans and Advances + 6,770.65 11,387.94 10,174.33 10,192.95 5,412.85

Page | 103

Total Current Assets 25,196.37 34,742.99 33,218.69 33,498.20 23,699.61

Less : Current Liabilities and

Provisions

Current Liabilities + 27,701.30 26,588.08 22,028.62 24,485.25 19,476.19

Provisions + 3,575.61 3,179.94 1,661.30 1,347.70 1,599.83

Total Current Liabilities 31,276.91 29,768.02 23,689.92 25,832.95 21,076.02

Net Current Assets -6,080.54 4,974.97 9,528.77 7,665.25 2,623.59

Miscellaneous Expenses not

written off + 0 0 0 0 0

Deferred Tax Assets 1,169.99 1,213.90 833.57 904.53 1,052.66

Deferred Tax Liability 2,878.25 2,574.80 2,489.29 2,305.09 2,060.20

Net Deferred Tax -1,708.26 -1,360.90 -1,655.72 -1,400.56 -1,007.54

Other Assets+ 4,160.63 3,432.80 2,539.69 3,459.92 3,167.56

Total Assets 36,743.71 40,998.37 41,625.89 38,373.47 33,792.39

Contingent Liabilities+ 11,026.70 7,735.25 9,134.94 8,589.70 9,138.96

Page | 104

Annexure V

Company : Bharat Petroleum Corporation Ltd

Industry : Refineries

Company >> Finance >> Profit & Loss (Rs in Crs.)

Year

Mar 15

(12)

Mar 14

(12)

Mar 13

(12)

Mar 12

(12)

Mar 11

(12)

INCOME :

Sales Turnover +

2,53,254.8

6

2,71,051.8

1

2,50,649.2

6

2,22,500.4

7

1,63,312.6

0

Excise Duty 15,167.96 10,976.82 10,533.51 10,527.50 11,673.15

Net Sales

2,38,086.9

0

2,60,074.9

9

2,40,115.7

5

2,11,972.9

7

1,51,639.4

5

Other Income + 2,199.96 1,454.20 1,680.23 1,701.78 1,621.36

Stock Adjustments + -4,513.32 2,030.30 1,471.79 601.6 2,056.05

Total Income

2,35,773.5

4

2,63,559.4

9

2,43,267.7

7

2,14,276.3

5

1,55,316.8

6

EXPENDITURE :

Raw Materials +

2,11,476.1

0

2,40,095.3

0

2,23,309.0

9

1,97,722.1

2

1,40,835.5

0

Power & Fuel Cost+ 1,736.12 1,196.89 904.92 716.08 475.89

Employee Cost + 2,085.60 2,896.35 2,768.87 2,261.07 2,763.63

Other Manufacturing Expenses + 6,885.39 5,876.40 1,151.38 1,002.49 870.31

Selling and Administration

Expenses + 1,779.95 1,724.30 5,402.27 4,788.27 4,006.83

Miscellaneous Expenses + 1,295.75 2,215.37 1,944.21 2,217.69 1,197.38

Less: Pre-operative Expenses

Capitalised+ 0 0 0 0 0

Total Expenditure

2,25,258.9

1

2,54,004.6

1

2,35,480.7

4

2,08,707.7

2

1,50,149.5

4

Operating Profit 10,514.63 9,554.88 7,787.03 5,568.63 5,167.32

Interest + 583.1 1,359.08 1,825.24 1,799.59 1,117.03

Gross Profit 9,931.53 8,195.80 5,961.79 3,769.04 4,050.29

Page | 105

Depreciation+ 2,516.02 2,246.82 1,926.10 1,884.87 1,655.40

Profit Before Tax 7,415.51 5,948.98 4,035.69 1,884.17 2,394.89

Tax+ 1,983.64 2,182.92 1,137.63 179.89 699.97

Fringe Benefit tax+ 0 0 0 0 0

Deferred Tax+ 347.36 -294.82 255.16 393.01 148.24

Reported Net Profit 5,084.51 4,060.88 2,642.90 1,311.27 1,546.68

Extraordinary Items + 0.1 -26.2 -115.82 -41.21 -132.7

Adjusted Net Profit 5,084.41 4,087.08 2,758.72 1,352.48 1,679.38

Adjst. below Net Profit + 0 0 0 0 0

P & L Balance brought forward 500 500 500 500 181.06

Statutory Appropriations 0 0 0 0 0

Appropriations + 5,084.51 4,060.88 2,642.90 1,311.27 1,227.74

P & L Balance carried down 500 500 500 500 500

Dividend 1,626.94 1,229.24 795.39 397.7 506.16

Preference Dividend 0 0 0 0 0

Equity Dividend % 225 170 110 110 140

Dividend Per Share(Rs) 22.5 17 11 11 14

Earnings Per Share-Unit Curr 66.25 53.44 34.79 34.69 40.81

Earnings Per Share(Adj)-Unit

Curr 66.25 53.44 34.79 17.35 20.41

Book Value-Unit Curr 310.72 269.11 230.04 412.51 388.83

Book Value(Adj)-Unit Curr 310.72 269.11 230.04 206.26 194.42

Page | 106

Annexure VI

Bharat Petroleum Corporation Ltd

Industry : Refineries

Financial Overview

Mar-15 Mar-14 Mar-13 Mar-12 Mar-11

Equity Paid Up 723.08 723.08 723.08 361.54 361.54

Networth 22,467.48 19,458.76 16,634.02 14,913.86 14,057.62

Capital Employed 36,743.71 40,998.37 41,625.89 38,373.47 33,792.39

Gross Block 41,809.63 38,163.78 33,674.78 31,726.79 29,334.23

Net Working Capital ( Incl. Def. Tax) -7,788.80 3,614.07 7,873.05 6,264.69 1,616.05

Current Assets ( Incl. Def. Tax) 26,366.36 35,956.89 34,052.26 34,402.73 24,752.27

Current Liabilities and Provisions ( Incl.

Def. Tax) 34,155.16 32,342.82 26,179.21 28,138.04 23,136.22

Total Assets/Liabilities (excl Reval &

W.off) 70,898.87 73,341.19 67,805.10 66,511.51 56,928.61

Gross Sales 2,53,254.86 2,71,051.81 2,50,649.26 2,22,500.47 1,63,312.60

Net Sales 2,38,086.90 2,60,074.99 2,40,115.75 2,11,972.97 1,51,639.45

Other Income 2,199.96 1,454.20 1,680.23 1,701.78 1,621.36

Value Of Output 2,33,573.58 2,62,105.29 2,41,587.54 2,12,574.57 1,53,695.50

Cost of Production 2,25,286.54 2,52,181.50 2,30,272.89 2,03,763.25 1,46,324.89

Selling Cost 0 0 3,823.69 3,320.38 2,854.80

PBIDT 10,514.63 9,554.88 7,787.03 5,568.63 5,167.32

PBDT 9,931.53 8,195.80 5,961.79 3,769.04 4,050.29

PBIT 7,998.61 7,308.06 5,860.93 3,683.76 3,511.92

PBT 7,415.51 5,948.98 4,035.69 1,884.17 2,394.89

PAT 5,084.51 4,060.88 2,642.90 1,311.27 1,546.68

CP 7,600.53 6,307.70 4,569.00 3,196.14 3,202.08

Revenue earnings in forex 12,364.27 19,122.06 18,455.61 19,315.61 12,380.37

Revenue expenses in forex 80,303.82 91,202.80 81,626.65 74,911.96 51,435.85

Capital earnings in forex 0 0 0 0 0

Capital expenses in forex 0 268.84 266.72 148.29 123.98

Book Value (Unit Curr) 310.72 269.11 230.04 412.51 388.83

Page | 107

Market Capitalisation 58,565.86 33,283.37 27,343.27 25,282.49 22,100.94

Financial Years High & Low Prices

High Date (BSE) 31-Mar-15 31-Mar-14 21-Jan-13 09-Aug-11 21-Sep-10

High Price (BSE) 814.7 468.8 449 356.25 407.45

Low Date (BSE) 04-Apr-14 06-Aug-13 26-Nov-12 05-Jan-12 29-Apr-10

Low Price (BSE) 431.9 256 315.6 229.53 244.25

High Date (NSE) 31-Mar-15 31-Mar-14 21-Jan-13 08-Jul-11 30-Aug-10

High Price (NSE) 815.9 469.35 449 398.45 420

Low Date (NSE) 04-Apr-14 06-Aug-13 26-Nov-12 05-Jan-12 29-Apr-10

Low Price (NSE) 431.65 255.95 315 229.03 244.2

CEPS (annualised) (Unit Curr) 101.04 84.52 61.43 86.82 86.6

EPS (annualised) (Unit Curr) 66.25 53.44 34.79 34.69 40.81

Dividend (annualised%) 225 170 110 110 140

Payout (%) 33.96 31.81 31.62 31.71 34.3

Cash Flow From Operating Activities 18,194.41 8,404.11 5,480.45 925.84 3,081.87

Cash Flow From Investing Activities -7,909.12 -4,285.89 -2,387.16 -890.54 1,750.50

Cash Flow From Financing Activities -9,132.26 -6,243.73 -1,743.25 -4,713.14 -1,817.00

Rate of Growth (%)

ROG-Net Worth (%) 15.46 16.98 11.53 6.09 7.42

ROG-Capital Employed (%) -10.38 -1.51 8.48 13.56 -4.22

ROG-Gross Block (%) 9.55 13.33 6.14 8.16 15.43

ROG-Gross Sales (%) -6.57 8.14 12.65 36.24 24.19

ROG-Net Sales (%) -8.45 8.31 13.28 39.79 24.53

ROG-Cost of Production (%) -10.92 9.68 12.99 38.83 22.78

ROG-Total Assets (%) -3.33 8.16 1.94 16.83 4.81

ROG-PBIDT (%) 10.04 22.7 39.84 7.77 11.9

ROG-PBDT (%) 21.18 37.47 58.18 -6.94 12.29

ROG-PBIT (%) 9.45 24.69 59.1 4.89 4.04

ROG-PBT (%) 24.65 47.41 114.19 -21.33 1.28

ROG-PAT (%) 25.21 53.65 101.55 -15.22 0.59

ROG-CP (%) 20.5 38.05 42.95 -0.19 15.19

Page | 108

ROG-Revenue earnings in forex (%) -35.34 3.61 -4.45 56.02 30.26

ROG-Revenue expenses in forex (%) -11.95 11.73 8.96 45.64 20.38

ROG-Market Capitalisation (%) 75.96 21.72 8.15 14.4 18.31

Key Ratios

Debt-Equity Ratio 0.8 1.22 1.48 1.45 1.52

Long Term Debt-Equity Ratio 0.56 0.48 0.24 0.17 0.32

Current Ratio 0.82 0.82 0.73 0.67 0.66

Turnover Ratios

Fixed Assets Ratio 6.33 7.55 7.66 7.29 5.97

Inventory Ratio 15.11 15.16 15.36 14.21 11.92

Debtors Ratio 75.74 66.88 48.19 49.94 62.87

Interest Cover Ratio 13.72 5.38 3.21 2.05 3.14

PBIDTM (%) 4.15 3.53 3.11 2.5 3.16

PBITM (%) 3.16 2.7 2.34 1.66 2.15

PBDTM (%) 3.92 3.02 2.38 1.69 2.48

CPM (%) 3 2.33 1.82 1.44 1.96

APATM (%) 2.01 1.5 1.05 0.59 0.95

ROCE (%) 20.58 17.69 14.65 10.21 10.17

RONW (%) 24.25 22.5 16.75 9.05 11.4

Debtors Velocity (Days) 5 5 6 4 4

Creditors Velocity (Days) 20 17 20 17 17

Assets Utilisation Ratio (times)

Value of Output/Total Assets 3.24 3.37 3.4 3.65 3.73

Value of Output/Gross Block 5.84 6.19 6.35 6.57 6.95

Page | 109

Annexure VII

Company : GAIL (India) Ltd

Industry : Gas Distribution

Company >> Finance >> Balance Sheet (Rs in Crs.)

Year Mar 15 Mar 14 Mar 13 Mar 12 Mar 11

SOURCES OF FUNDS :

Share Capital + 1,268.48 1,268.48 1,268.48 1,268.48 1,268.48

Reserves Total + 27,851.04 25,803.85 22,959.32 20,357.35 17,984.86

Equity Share Warrants 0 0 0 0 0

Equity Application Money 0 0 0 0 0

Total Shareholders Funds 29,119.52 27,072.33 24,227.80 21,625.83 19,253.34

Secured Loans + 3,651.00 4,679.75 8,419.59 3,023.50 2,310.00

Unsecured Loans + 5,904.92 5,588.33 643.91 2,323.35 0

Total Debt 9,555.92 10,268.08 9,063.50 5,346.85 2,310.00

Other Liabilities+ 2,658.33 1,175.21 1,044.65 614.4 304.19

Total Liabilities 41,333.77 38,515.62 34,335.95 27,587.08 21,867.53

APPLICATION OF FUNDS :

Gross Block + 40,463.81 33,192.32 31,148.97 26,306.63 22,144.38

Less : Accumulated Depreciation

+ 13,524.45 12,545.11 11,439.01 10,446.89 9,740.81

Less:Impairment of Assets 14.16 8.07 2.51 2.12 0

Net Block + 26,925.20 20,639.14 19,707.45 15,857.62 12,403.57

Lease Adjustment 0 0 0 0 0

Capital Work in Progress+ 4,360.02 9,727.85 8,977.82 7,942.45 5,846.15

Producing Properties 834.49 837.49 0 0 0

Investments + 4,322.36 4,288.70 3,719.00 2,681.49 2,582.52

Current Assets, Loans &

Advances

Inventories + 2,104.82 2,277.69 1,556.59 1,446.13 855.11

Sundry Debtors + 3,094.52 2,811.99 2,551.34 1,904.48 1,833.00

Cash and Bank+ 1,141.64 2,650.98 2,357.94 931.33 2,131.35

Loans and Advances + 4,278.12 3,392.14 2,570.63 1,967.45 4,599.56

Page | 110

Total Current Assets 10,619.10 11,132.80 9,036.50 6,249.39 9,419.02

Less : Current Liabilities and

Provisions

Current Liabilities + 7,173.94 7,280.38 6,612.90 5,707.22 4,739.43

Provisions + 1,100.64 1,471.89 1,456.54 1,114.63 3,771.25

Total Current Liabilities 8,274.58 8,752.27 8,069.44 6,821.85 8,510.68

Net Current Assets 2,344.52 2,380.53 967.06 -572.46 908.34

Miscellaneous Expenses not

written off + 0 0 0 0 0

Deferred Tax Assets 3,169.91 3,332.69 3,171.95 2,243.84 598.7

Deferred Tax Liability 6,478.56 5,899.06 5,472.01 4,012.48 2,231.94

Net Deferred Tax -3,308.65 -2,566.37 -2,300.06 -1,768.64 -1,633.24

Other Assets+ 5,855.83 3,208.28 3,264.68 3,446.62 1,760.19

Total Assets 41,333.77 38,515.62 34,335.95 27,587.08 21,867.53

Contingent Liabilities+ 13,548.86 13,581.65 12,181.48 9,089.13 8,363.86

Page | 111

Annexure VIII

Company : GAIL (India) Ltd

Industry : Gas Distribution

Company >> Finance >> Profit & Loss (Rs in Crs.)

Year

Mar 15

(12)

Mar 14

(12)

Mar 13

(12)

Mar 12

(12)

Mar 11

(12)

INCOME :

Sales Turnover + 57,464.50 58,274.89 48,195.29 40,981.81 32,984.97

Excise Duty 722.52 766.96 672.6 541.05 448.45

Net Sales 56,741.98 57,507.93 47,522.69 40,440.76 32,536.52

Other Income + 926.6 1,249.82 821.55 670.37 443.93

Stock Adjustments + -232.17 626.86 56.98 497.75 132.49

Total Income 57,436.41 59,384.61 48,401.22 41,608.88 33,112.94

EXPENDITURE :

Raw Materials + 45,161.49 46,077.85 36,365.57 30,934.56 23,755.75

Power & Fuel Cost+ 1,883.51 1,676.35 1,243.10 1,076.07 972.85

Employee Cost + 954.7 905.02 858 720.81 750.04

Other Manufacturing Expenses + 2,390.40 1,205.35 1,350.79 1,112.91 881.37

Selling and Administration

Expenses + 1,109.06 952.66 755.09 705.52 583.26

Miscellaneous Expenses + 487.89 699.83 640.81 878.02 230.82

Less: Pre-operative Expenses

Capitalised+ 164.47 71.49 45.87 66.19 34.25

Total Expenditure 51,822.58 51,445.57 41,167.49 35,361.70 27,139.84

Operating Profit 5,613.83 7,939.04 7,233.73 6,247.18 5,973.10

Interest + 361.3 366.19 195.02 116.46 82.86

Gross Profit 5,252.53 7,572.85 7,038.71 6,130.72 5,890.24

Depreciation+ 968.17 1,170.53 980.94 790.71 650.25

Profit Before Tax 4,284.36 6,402.32 6,057.77 5,340.01 5,239.99

Tax+ 457.84 1,760.74 1,504.15 1,550.77 1,435.18

Fringe Benefit tax+ 0 0 0 0 0

Deferred Tax+ 787.35 266.31 531.42 135.4 243.68

Page | 112

Reported Net Profit 3,039.17 4,375.27 4,022.20 3,653.84 3,561.13

Extraordinary Items + 37.3 232.37 -6.81 -2.11 9.91

Adjusted Net Profit 3,001.87 4,142.90 4,029.01 3,655.95 3,551.22

Adjst. below Net Profit + -87.54 0 0 0 0

P & L Balance brought forward 21,697.55 19,315.63 17,128.90 15,098.58 13,007.94

Statutory Appropriations 0 0 0 0 0

Appropriations + 1,225.41 1,993.35 1,835.47 1,623.52 1,470.49

P & L Balance carried down 23,423.77 21,697.55 19,315.63 17,128.90 15,098.58

Dividend 761.08 1,319.21 1,217.74 1,103.57 951.36

Preference Dividend 0 0 0 0 0

Equity Dividend % 60 104 96 87 75

Dividend Per Share(Rs) 6 10.4 9.6 8.7 7.5

Earnings Per Share-Unit Curr 22.75 32.72 30.11 27.39 26.85

Earnings Per Share(Adj)-Unit Curr 22.75 32.72 30.11 27.39 26.85

Book Value-Unit Curr 229.56 213.42 191 170.49 151.78

Book Value(Adj)-Unit Curr 229.56 213.42 191 170.49 151.78

Page | 113

Annexure IX

GAIL (India) Ltd

Industry : Gas Distribution

Financial Overview

Mar-15 Mar-14 Mar-13 Mar-12 Mar-11

Equity Paid Up 1,268.48 1,268.48 1,268.48 1,268.48 1,268.48

Networth 29,119.52 27,072.33 24,227.80 21,625.83 19,253.34

Capital Employed 41,333.77 38,515.62 34,335.95 27,587.08 21,867.53

Gross Block 40,463.81 33,192.32 31,148.97 26,306.63 22,144.38

Net Working Capital ( Incl. Def. Tax) -964.13 -185.84 -1,333.00 -2,341.10 -724.9

Current Assets ( Incl. Def. Tax) 13,789.01 14,465.49 12,208.45 8,493.23 10,017.72

Current Liabilities and Provisions (

Incl. Def. Tax) 14,753.14 14,651.33 13,541.45 10,834.33 10,742.62

Total Assets/Liabilities (excl Reval &

W.off) 56,086.91 53,166.95 47,877.40 38,421.41 32,610.15

Gross Sales 57,464.50 58,274.89 48,195.29 40,981.81 32,984.97

Net Sales 56,741.98 57,507.93 47,522.69 40,440.76 32,536.52

Other Income 926.6 1,249.82 821.55 670.37 443.93

Value Of Output 56,509.81 58,134.79 47,579.67 40,938.51 32,669.01

Cost of Production 51,376.25 51,055.13 40,812.96 34,650.31 27,021.22

Selling Cost 97.49 79.06 96.34 81.11 79.78

PBIDT 5,613.83 7,939.04 7,233.73 6,247.18 5,973.10

PBDT 5,252.53 7,572.85 7,038.71 6,130.72 5,890.24

PBIT 4,645.66 6,768.51 6,252.79 5,456.47 5,322.85

PBT 4,284.36 6,402.32 6,057.77 5,340.01 5,239.99

PAT 3,039.17 4,375.27 4,022.20 3,653.84 3,561.13

CP 4,007.34 5,545.80 5,003.14 4,444.55 4,211.38

Revenue earnings in forex 644.49 210.01 32.02 8.85 4.72

Revenue expenses in forex 8,002.49 8,805.02 3,595.82 5,868.42 3,089.19

Capital earnings in forex 0 0 0 0 0

Capital expenses in forex 0 424.2 1,099.47 555.18 971.67

Book Value (Unit Curr) 229.56 213.42 191 170.49 151.78

Page | 114

Market Capitalisation 49,324.84 47,663.14 40,483.54 47,561.66 58,984.32

Financial Years High & Low Prices

High Date (BSE)

31-Oct-

14

07-Mar-

14

05-Oct-

12

27-Apr-

11 06-Jan-11

High Price (BSE) 551.35 391.4 396 485.95 535.85

Low Date (BSE)

08-May-

14

28-Aug-

13

26-Mar-

13

06-Mar-

12

15-Apr-

10

Low Price (BSE) 356.7 273 300.4 346.1 401.6

High Date (NSE)

31-Oct-

14

07-Mar-

14

05-Oct-

12

26-Apr-

11 06-Jan-11

High Price (NSE) 551.9 392 397.2 485.5 537.75

Low Date (NSE)

08-May-

14

28-Aug-

13

26-Mar-

13

06-Mar-

12

15-Apr-

10

Low Price (NSE) 356.6 272.2 300.25 345.75 401

CEPS (annualised) (Unit Curr) 30.38 41.95 37.84 33.63 31.98

EPS (annualised) (Unit Curr) 22.75 32.72 30.11 27.39 26.85

Dividend (annualised%) 60 104 96 87 75

Payout (%) 26.38 31.78 31.88 31.76 27.93

Cash Flow From Operating Activities 2,499.33 4,921.57 5,033.41 4,487.74 3,077.25

Cash Flow From Investing Activities -1,019.68 -3,231.73 -5,472.15 -7,141.56 -4,729.49

Cash Flow From Financing Activities -2,988.98 -1,396.80 1,865.35 1,453.80 -387.92

Rate of Growth (%)

ROG-Net Worth (%) 7.56 11.74 12.03 12.32 14.61

ROG-Capital Employed (%) 7.32 12.17 24.46 26.16 19.63

ROG-Gross Block (%) 21.91 6.56 18.41 18.8 5.26

ROG-Gross Sales (%) -1.39 20.91 17.6 24.24 29.99

ROG-Net Sales (%) -1.33 21.01 17.51 24.29 30.16

ROG-Cost of Production (%) 0.64 25.09 17.8 28.21 34.57

ROG-Total Assets (%) 5.49 11.05 24.61 17.82 7.86

ROG-PBIDT (%) -29.29 9.75 15.79 4.59 14.66

ROG-PBDT (%) -30.64 7.59 14.81 4.08 14.61

Page | 115

ROG-PBIT (%) -31.36 8.25 14.59 2.51 14.53

ROG-PBT (%) -33.08 5.69 13.44 1.91 14.47

ROG-PAT (%) -30.54 8.78 10.08 2.6 13.42

ROG-CP (%) -27.74 10.85 12.57 5.54 13.77

ROG-Revenue earnings in forex (%) 206.89 555.87 261.81 87.5 -16.75

ROG-Revenue expenses in forex (%) -9.11 144.87 -38.73 89.97 47.85

ROG-Market Capitalisation (%) 3.49 17.73 -14.88 -19.37 13.47

Key Ratios

Debt-Equity Ratio 0.35 0.38 0.31 0.19 0.11

Long Term Debt-Equity Ratio 0.31 0.34 0.28 0.17 0.1

Current Ratio 0.89 0.89 0.8 0.83 1.04

Turnover Ratios

Fixed Assets Ratio 1.53 1.79 1.68 1.69 1.53

Inventory Ratio 26.22 30.4 32.1 35.62 44.37

Debtors Ratio 19.46 21.73 21.63 21.93 21.09

Interest Cover Ratio 12.86 18.48 32.06 46.85 64.24

PBIDTM (%) 9.77 13.62 15.01 15.24 18.11

PBITM (%) 8.08 11.61 12.97 13.31 16.14

PBDTM (%) 9.14 13 14.6 14.96 17.86

CPM (%) 6.97 9.52 10.38 10.85 12.77

APATM (%) 5.29 7.51 8.35 8.92 10.8

ROCE (%) 11.64 18.58 20.2 22.07 26.52

RONW (%) 10.82 17.06 17.54 17.88 19.76

Debtors Velocity (Days) 19 18 16 16 14

Creditors Velocity (Days) 27 25 23 20 19

Assets Utilisation Ratio (times)

Value of Output/Total Assets 1.03 1.09 1.2 1.27 1.31

Value of Output/Gross Block 1.53 1.58 1.69 1.81 1.84

Page | 116

Annexure X

Company : Hindustan Petroleum Corporation Ltd

Industry : Refineries

Company >> Finance >> Balance Sheet (Rs in Crs.)

Year Mar 15 Mar 14 Mar 13 Mar 12 Mar 11

SOURCES OF FUNDS :

Share Capital + 339.01 339.01 339.01 339.01 339.01

Reserves Total + 15,683.08 14,673.15 13,387.39 12,783.51 12,206.80

Equity Share Warrants 0 0 0 0 0

Equity Application Money 0 0 0 0 0

Total Shareholders Funds 16,022.09 15,012.16 13,726.40 13,122.52 12,545.81

Secured Loans + 6,678.01 4,498.57 4,874.27 2,652.06 5,049.75

Unsecured Loans + 13,657.33 27,667.48 28,914.20 27,179.17 19,971.41

Total Debt 20,335.34 32,166.05 33,788.47 29,831.23 25,021.16

Other Liabilities+ 8,873.82 7,795.22 6,710.15 5,907.82 4,886.78

Total Liabilities 45,231.25 54,973.43 54,225.02 48,861.57 42,453.75

APPLICATION OF FUNDS :

Gross Block + 48,174.92 42,466.76 37,006.21 33,459.00 29,648.39

Less : Accumulated Depreciation

+ 19,112.11 16,554.52 14,457.51 12,609.35 11,003.86

Less:Impairment of Assets 0 0 0 0 0

Net Block + 29,062.81 25,912.24 22,548.70 20,849.65 18,644.53

Lease Adjustment 0 0 0 0 0

Capital Work in Progress+ 3,474.42 4,585.56 5,172.87 4,444.47 3,696.00

Producing Properties 0 0 0 0 0

Investments + 11,241.48 10,859.87 10,626.93 10,370.50 11,335.02

Current Assets, Loans &

Advances

Inventories + 12,972.26 18,768.31 16,438.70 19,454.53 16,622.28

Sundry Debtors + 3,603.05 5,465.95 4,935.04 3,565.16 3,076.86

Cash and Bank+ 17.07 34.71 147.13 226.38 79.02

Loans and Advances + 5,633.14 10,644.72 14,348.91 10,632.12 5,804.36

Page | 117

Total Current Assets 22,225.52 34,913.69 35,869.78 33,878.19 25,582.52

Less : Current Liabilities and

Provisions

Current Liabilities + 15,818.27 17,184.18 16,620.82 17,615.66 13,486.17

Provisions + 2,397.52 1,927.13 1,800.54 1,547.04 1,625.53

Total Current Liabilities 18,215.79 19,111.31 18,421.36 19,162.70 15,111.70

Net Current Assets 4,009.73 15,802.38 17,448.42 14,715.49 10,470.82

Miscellaneous Expenses not

written off + 0 0 0 0 0

Deferred Tax Assets 619.57 729.1 615.35 715.52 495.95

Deferred Tax Liability 4,723.17 4,637.53 4,213.70 3,800.80 3,691.59

Net Deferred Tax -4,103.60 -3,908.43 -3,598.35 -3,085.28 -3,195.64

Other Assets+ 1,546.41 1,721.81 2,026.45 1,566.74 1,503.02

Total Assets 45,231.25 54,973.43 54,225.02 48,861.57 42,453.75

Contingent Liabilities+ 4,399.11 6,429.17 5,853.75 4,340.36 4,481.14

Page | 118

Annexure XI

Company : Hindustan Petroleum Corporation Ltd

Industry : Refineries

Company >> Finance >> Profit & Loss (Rs in Crs.)

Year

Mar 15

(12)

Mar 14

(12)

Mar 13

(12)

Mar 12

(12)

Mar 11

(12)

INCOME :

Sales Turnover +

2,17,306.9

2

2,32,503.2

1

2,17,208.9

6

1,89,504.5

4

1,43,878.9

1

Excise Duty 10,680.74 9,151.68 9,146.15 9,991.72 8,897.55

Net Sales

2,06,626.1

8

2,23,351.5

3

2,08,062.8

1

1,79,512.8

2

1,34,981.3

6

Other Income + 1,168.41 988.2 1,216.28 1,025.59 1,170.66

Stock Adjustments + -3,749.44 574.43 -809.45 824.29 3,438.78

Total Income

2,04,045.1

5

2,24,914.1

6

2,08,469.6

4

1,81,362.7

0

1,39,590.8

0

EXPENDITURE :

Raw Materials +

1,85,436.8

0

2,07,100.4

4

1,91,346.5

5

1,66,313.9

6

1,25,758.8

7

Power & Fuel Cost+ 848.41 642.24 1,093.55 921.86 615.68

Employee Cost + 2,414.66 2,030.30 2,525.56 1,583.10 1,979.07

Other Manufacturing Expenses + 2,584.81 1,492.23 979.71 684.89 1,287.08

Selling and Administration

Expenses + 6,275.91 5,968.42 6,049.11 5,233.72 4,918.02

Miscellaneous Expenses + -354.91 1,526.72 1,604.28 1,468.73 395.34

Less: Pre-operative Expenses

Capitalised+ 0 0 0 0 0

Total Expenditure

1,97,205.6

8

2,18,760.3

5

2,03,598.7

6

1,76,206.2

6

1,34,954.0

6

Operating Profit 6,839.47 6,153.81 4,870.88 5,156.44 4,636.74

Interest + 706.59 1,336.36 1,412.80 2,224.27 892.06

Gross Profit 6,132.88 4,817.45 3,458.08 2,932.17 3,744.68

Page | 119

Depreciation+ 1,978.76 2,201.94 1,983.52 1,712.93 1,406.95

Profit Before Tax 4,154.12 2,615.51 1,474.56 1,219.24 2,337.73

Tax+ 988.09 763.99 128.9 300.87 407.76

Fringe Benefit tax+ 0 0 0 0 0

Deferred Tax+ 432.77 117.75 440.95 6.94 390.96

Reported Net Profit 2,733.26 1,733.77 904.71 911.43 1,539.01

Extraordinary Items + 24.55 -50.89 34.77 -70.99 -173.28

Adjusted Net Profit 2,708.71 1,784.66 869.94 982.42 1,712.29

Adjst. below Net Profit + -499.52 0 0 0 0

P & L Balance brought forward 11,269.70 10,191.90 9,682.74 9,373.13 8,715.15

Statutory Appropriations 0 0 0 0 0

Appropriations + 1,136.30 655.97 395.55 601.82 881.03

P & L Balance carried down 12,367.14 11,269.70 10,191.90 9,682.74 9,373.13

Dividend 829.64 524.87 287.83 287.83 474.08

Preference Dividend 0 0 0 0 0

Equity Dividend % 245 155 85 85 140

Dividend Per Share(Rs) 24.5 15.5 8.5 8.5 14

Earnings Per Share-Unit Curr 75.64 48.51 25.24 25.51 43.13

Earnings Per Share(Adj)-Unit

Curr 75.64 48.51 25.24 25.51 43.13

Book Value-Unit Curr 472.61 442.82 404.9 387.08 370.07

Book Value(Adj)-Unit Curr 472.61 442.82 404.9 387.08 370.07

Page | 120

Annexure XII

Hindustan Petroleum Corporation Ltd

Industry : Refineries

Financial Overview

Mar-15 Mar-14 Mar-13 Mar-12 Mar-11

Equity Paid Up 339.01 339.01 339.01 339.01 339.01

Networth 16,022.09 15,012.16 13,726.40 13,122.52 12,545.81

Capital Employed 45,231.25 54,973.43 54,225.02 48,861.57 42,453.75

Gross Block 48,174.92 42,466.76 37,006.21 33,459.00 29,648.39

Net Working Capital ( Incl. Def. Tax) -93.87 11,893.95 13,850.07 11,630.21 7,275.18

Current Assets ( Incl. Def. Tax) 22,845.09 35,642.79 36,485.13 34,593.71 26,078.47

Current Liabilities and Provisions ( Incl.

Def. Tax) 22,938.96 23,748.84 22,635.06 22,963.50 18,803.29

Total Assets/Liabilities (excl Reval &

W.off) 68,170.21 78,722.27 76,860.08 71,825.07 61,257.04

Gross Sales 2,17,306.92 2,32,503.21 2,17,208.96 1,89,504.54 1,43,878.91

Net Sales 2,06,626.18 2,23,351.53 2,08,062.81 1,79,512.82 1,34,981.36

Other Income 1,168.41 988.2 1,216.28 1,025.59 1,170.66

Value Of Output 2,02,876.74 2,23,925.96 2,07,253.36 1,80,337.11 1,38,420.14

Cost of Production 1,94,351.63 2,13,220.55 1,98,391.01 1,71,306.42 1,30,218.49

Selling Cost 5,108.66 4,769.61 3,877.34 3,336.95 2,979.09

PBIDT 6,839.47 6,153.81 4,870.88 5,156.44 4,636.74

PBDT 6,132.88 4,817.45 3,458.08 2,932.17 3,744.68

PBIT 4,860.71 3,951.87 2,887.36 3,443.51 3,229.79

PBT 4,154.12 2,615.51 1,474.56 1,219.24 2,337.73

PAT 2,733.26 1,733.77 904.71 911.43 1,539.01

CP 4,712.02 3,935.71 2,888.23 2,624.36 2,945.96

Revenue earnings in forex 5,313.98 4,231.03 6,416.82 7,782.48 5,522.80

Revenue expenses in forex 89,887.70 1,18,505.95 1,12,351.33 1,01,212.47 30,180.42

Capital earnings in forex 0 0 0 0 0

Capital expenses in forex 32.6 68.91 126.33 100.1 112.74

Book Value (Unit Curr) 472.61 442.82 404.9 387.08 370.07

Page | 121

Market Capitalisation 22,014.34 10,489.06 9,654.34 10,267.26 12,087.40

Financial Years High & Low Prices

High Date (BSE) 04-Mar-15 16-May-13 18-Jan-13 27-Jun-11 15-Sep-10

High Price (BSE) 669.7 324.8 381.4 419.5 555.45

Low Date (BSE) 04-Apr-14 28-Aug-13 26-Nov-12 06-Jan-12 29-Apr-10

Low Price (BSE) 294 158.45 275.3 238.75 293.25

High Date (NSE) 04-Mar-15 16-May-13 18-Jan-13 08-Jul-11 16-Sep-10

High Price (NSE) 669.95 325 381.65 480.35 555.7

Low Date (NSE) 04-Apr-14 28-Aug-13 04-May-12 07-Jan-12 29-Apr-10

Low Price (NSE) 294.25 158 260.25 238.05 292

CEPS (annualised) (Unit Curr) 134.01 113.46 83.75 76.03 84.63

EPS (annualised) (Unit Curr) 75.64 48.51 25.24 25.51 43.13

Dividend (annualised%) 245 155 85 85 140

Payout (%) 32.35 31.92 33.63 33.29 32.42

Cash Flow From Operating Activities 17,841.09 8,807.56 895.55 2,226.26 1,001.43

Cash Flow From Investing Activities -3,291.33 -3,779.41 -3,370.57 -2,863.56 -3,381.80

Cash Flow From Financing Activities -13,759.01 -5,680.74 1,408.58 1,060.28 1,674.41

Rate of Growth (%)

ROG-Net Worth (%) 6.73 9.37 4.6 4.6 8.55

ROG-Capital Employed (%) -17.72 1.38 10.98 15.09 29.19

ROG-Gross Block (%) 13.44 14.76 10.6 12.85 18.65

ROG-Gross Sales (%) -6.54 7.04 14.62 31.71 24.05

ROG-Net Sales (%) -7.49 7.35 15.9 32.99 24.14

ROG-Cost of Production (%) -9.41 7.86 15.56 30.63 25.27

ROG-Total Assets (%) -13.4 2.42 7.01 17.25 18.55

ROG-PBIDT (%) 11.14 26.34 -5.54 11.21 10.58

ROG-PBDT (%) 27.31 39.31 17.94 -21.7 13.84

ROG-PBIT (%) 23 36.87 -16.15 6.62 6.64

ROG-PBT (%) 58.83 77.38 20.94 -47.85 10.01

ROG-PAT (%) 57.65 91.64 -0.74 -40.78 18.26

ROG-CP (%) 19.72 36.27 10.05 -10.92 19.47

Page | 122

ROG-Revenue earnings in forex (%) 25.6 -34.06 -17.55 40.92 -13.47

ROG-Revenue expenses in forex (%) -24.15 5.48 11.01 235.36 2.61

ROG-Market Capitalisation (%) 109.88 8.65 -5.97 -15.06 12.09

Key Ratios

Debt-Equity Ratio 1.69 2.29 2.37 2.14 1.92

Long Term Debt-Equity Ratio 1.07 0.85 0.57 0.46 0.7

Current Ratio 0.89 0.82 0.76 0.71 0.7

Turnover Ratios

Fixed Assets Ratio 4.79 5.85 6.16 6.01 5.27

Inventory Ratio 13.69 13.21 12.1 10.51 9.85

Debtors Ratio 47.92 44.71 51.11 57.06 52.18

Interest Cover Ratio 6.88 2.96 2.04 1.55 3.92

PBIDTM (%) 3.15 2.65 2.24 2.72 3.41

PBITM (%) 2.24 1.7 1.33 1.82 2.43

PBDTM (%) 2.82 2.07 1.59 1.55 2.79

CPM (%) 2.17 1.69 1.33 1.38 2.17

APATM (%) 1.26 0.75 0.42 0.48 1.19

ROCE (%) 9.7 7.24 5.6 7.54 9.28

RONW (%) 17.61 12.07 6.74 7.1 14.21

Debtors Velocity (Days) 8 7 6 6 5

Creditors Velocity (Days) 18 18 20 16 15

Assets Utilisation Ratio (times)

Value of Output/Total Assets 2.76 2.8 2.9 3.13 3.39

Value of Output/Gross Block 4.48 4.76 4.97 5.21 5.55

Page | 123

Annexure XIII

Company : Indian Oil Corporation Ltd

Industry : Refineries

Company >> Finance >> Balance Sheet (Rs in Crs.)

Year Mar 15 Mar 14 Mar 13 Mar 12 Mar 11

SOURCES OF FUNDS :

Share Capital + 2,427.95 2,427.95 2,427.95 2,427.95 2,427.95

Reserves Total + 65,542.02 63,564.13 58,696.36 55,448.75 52,904.37

Equity Share Warrants 0 0 0 0 0

Equity Application Money 0 0 0 0 0

Total Shareholders Funds 67,969.97 65,992.08 61,124.31 57,876.70 55,332.32

Secured Loans + 18,584.18 20,360.95 16,675.62 17,693.17 18,856.10

Unsecured Loans + 36,660.83 65,856.65 64,158.75 57,707.07 33,861.65

Total Debt 55,245.01 86,217.60 80,834.37 75,400.24 52,717.75

Other Liabilities+ 15,626.68 13,801.70 11,810.43 10,088.48 544.07

Total Liabilities

1,38,841.6

6

1,66,011.3

8

1,53,769.1

1

1,43,365.4

2

1,08,594.1

4

APPLICATION OF FUNDS :

Gross Block +

1,21,643.4

5

1,12,609.0

1

1,04,839.4

8 99,182.93 93,164.85

Less : Accumulated Depreciation

+ 55,391.98 49,660.22 44,206.75 39,300.16 34,914.23

Less:Impairment of Assets 0 0 0 35.97 35.97

Net Block + 66,251.47 62,948.79 60,632.73 59,846.80 58,214.65

Lease Adjustment 0 0 0 0 0

Capital Work in Progress+ 36,323.50 33,879.24 26,230.32 13,687.89 9,253.35

Producing Properties 0 0 0 0 0

Investments + 23,899.49 23,594.19 18,671.22 18,678.46 19,544.76

Current Assets, Loans &

Advances

Inventories + 45,703.28 64,840.08 59,448.53 56,829.20 49,284.52

Sundry Debtors + 6,758.17 11,022.92 11,257.32 9,725.47 8,863.69

Page | 124

Cash and Bank+ 111.9 2,608.53 503.29 307.01 1,294.42

Loans and Advances + 36,246.19 48,093.04 46,519.96 40,379.33 22,283.95

Total Current Assets 88,819.54

1,26,564.5

7

1,17,729.1

0

1,07,241.0

1 81,726.58

Less : Current Liabilities and

Provisions

Current Liabilities + 46,976.01 54,397.97 47,072.84 46,362.09 52,164.76

Provisions + 27,471.02 25,671.83 21,798.85 14,890.36 6,584.19

Total Current Liabilities 74,447.03 80,069.80 68,871.69 61,252.45 58,748.95

Net Current Assets 14,372.51 46,494.77 48,857.41 45,988.56 22,977.63

Miscellaneous Expenses not

written off + 0 0 0 0 0

Deferred Tax Assets 3,859.49 4,274.20 3,963.99 3,425.30 1,554.65

Deferred Tax Liability 10,579.70 9,890.38 9,476.65 8,667.18 7,891.24

Net Deferred Tax -6,720.21 -5,616.18 -5,512.66 -5,241.88 -6,336.59

Other Assets+ 4,714.90 4,710.57 4,890.09 10,405.59 4,940.34

Total Assets

1,38,841.6

6

1,66,011.3

8

1,53,769.1

1

1,43,365.4

2

1,08,594.1

4

Contingent Liabilities+ 29,256.64 29,428.30 13,976.48 11,488.70 7,820.86

Page | 125

Annexure XIV

Company : Indian Oil Corporation Ltd

Industry : Refineries

Company >> Finance >> Profit & Loss (Rs in Crs.)

Year

Mar 15

(12)

Mar 14

(12)

Mar 13

(12)

Mar 12

(12)

Mar 11

(12)

INCOME :

Sales Turnover +

4,74,184.8

4

5,03,175.7

0

4,75,568.3

1

4,27,253.3

3

3,58,035.0

6

Excise Duty 30,407.77 23,904.04 23,554.18 24,455.59 25,789.91

Net Sales

4,43,777.0

7

4,79,271.6

6

4,52,014.1

3

4,02,797.7

4

3,32,245.1

5

Other Income + 5,813.76 5,166.92 3,471.87 3,477.84 3,434.57

Stock Adjustments + -8,216.07 1,153.00 5,220.03 2,852.13 4,972.93

Total Income

4,41,374.7

6

4,85,591.5

8

4,60,706.0

3

4,09,127.7

1

3,40,652.6

5

EXPENDITURE :

Raw Materials +

3,82,583.8

4

4,22,983.0

5

4,07,926.2

5

3,57,073.9

9

2,98,627.1

9

Power & Fuel Cost+ 6,391.42 6,465.26 5,559.84 4,000.98 2,058.61

Employee Cost + 7,104.78 6,618.97 7,271.27 4,976.96 6,435.55

Other Manufacturing Expenses + 16,512.44 14,543.64 12,297.78 10,665.97 10,227.90

Selling and Administration

Expenses + 11,103.40 9,437.76 7,795.84 6,211.68 5,681.38

Miscellaneous Expenses + 1,696.46 4,736.31 2,526.78 11,985.49 1,277.35

Less: Pre-operative Expenses

Capitalised+ 0 0 0 0 0

Total Expenditure

4,25,392.3

4

4,64,784.9

9

4,43,377.7

6

3,94,915.0

7

3,24,307.9

8

Operating Profit 15,982.42 20,806.59 17,328.27 14,212.64 16,344.67

Interest + 3,458.47 5,120.99 6,479.48 5,590.54 2,702.14

Gross Profit 12,523.95 15,685.60 10,848.79 8,622.10 13,642.53

Page | 126

Depreciation+ 4,528.66 5,760.09 5,200.99 4,867.79 4,546.67

Profit Before Tax 7,995.29 9,925.51 5,647.80 3,754.31 9,095.86

Tax+ 1,124.87 2,802.90 371.85 894.4 69.9

Fringe Benefit tax+ 0 0 0 0 0

Deferred Tax+ 1,597.39 103.52 270.78 -1,094.71 1,580.48

Reported Net Profit 5,273.03 7,019.09 5,005.17 3,954.62 7,445.48

Extraordinary Items + 1,103.41 1,137.11 27.52 -6,579.09 -16.96

Adjusted Net Profit 4,169.62 5,881.98 4,977.65 10,533.71 7,462.44

Adjst. below Net Profit + 0 0 0 0 0

P & L Balance brought forward 0 2,173.80 0 0 0

Statutory Appropriations 0 0 0 0 0

Appropriations + 5,273.03 9,192.89 2,831.37 3,954.62 7,445.48

P & L Balance carried down 0 0 2,173.80 0 0

Dividend 1,602.45 2,112.32 1,505.33 1,213.98 2,306.55

Preference Dividend 0 0 0 0 0

Equity Dividend % 66 87 62 50 95

Dividend Per Share(Rs) 6.6 8.7 6.2 5 9.5

Earnings Per Share-Unit Curr 20.37 27.43 19.56 15.49 29.19

Earnings Per Share(Adj)-Unit

Curr 20.37 27.43 19.56 15.49 29.19

Book Value-Unit Curr 279.95 271.8 251.75 238.38 227.9

Book Value(Adj)-Unit Curr 279.95 271.8 251.75 238.38 227.9

Page | 127

Annexure XV

Indian Oil Corporation Ltd

Industry : Refineries

Financial Overview

Mar-15 Mar-14 Mar-13 Mar-12 Mar-11

Equity Paid Up 2,427.95 2,427.95 2,427.95 2,427.95 2,427.95

Networth 67,969.97 65,992.08 61,124.31 57,876.70 55,332.32

Capital Employed 1,38,841.66 1,66,011.38 1,53,769.11 1,43,365.42 1,08,594.14

Gross Block 1,21,643.45 1,12,609.01 1,04,839.48 99,182.93 93,164.85

Net Working Capital ( Incl. Def. Tax) 7,652.30 40,878.59 43,344.75 40,746.68 16,641.04

Current Assets ( Incl. Def. Tax) 92,679.03 1,30,838.77 1,21,693.09 1,10,666.31 83,281.23

Current Liabilities and Provisions ( Incl.

Def. Tax) 85,026.73 89,960.18 78,348.34 69,919.63 66,640.19

Total Assets/Liabilities (excl Reval &

W.off) 2,23,868.39 2,55,971.56 2,32,117.45 2,13,285.05 1,75,234.33

Gross Sales 4,74,184.84 5,03,175.70 4,75,568.31 4,27,253.33 3,58,035.06

Net Sales 4,43,777.07 4,79,271.66 4,52,014.13 4,02,797.74 3,32,245.15

Other Income 5,813.76 5,166.92 3,471.87 3,477.84 3,434.57

Value Of Output 4,35,561.00 4,80,424.66 4,57,234.16 4,05,649.87 3,37,218.08

Cost of Production 4,18,556.46 4,56,479.11 4,38,213.44 3,80,388.90 3,20,757.28

Selling Cost 686.53 708.06 616.31 489.31 488.03

PBIDT 15,982.42 20,806.59 17,328.27 14,212.64 16,344.67

PBDT 12,523.95 15,685.60 10,848.79 8,622.10 13,642.53

PBIT 11,453.76 15,046.50 12,127.28 9,344.85 11,798.00

PBT 7,995.29 9,925.51 5,647.80 3,754.31 9,095.86

PAT 5,273.03 7,019.09 5,005.17 3,954.62 7,445.48

CP 9,801.69 12,779.18 10,206.16 8,822.41 11,992.15

Revenue earnings in forex 16,009.99 21,608.13 18,558.61 19,811.00 16,967.55

Revenue expenses in forex 1,93,277.64 2,29,691.21 2,11,673.67 2,02,815.59 1,71,193.74

Capital earnings in forex 0 0 0 0 0

Capital expenses in forex 294.88 429.31 1,102.15 1,274.52 231.05

Book Value (Unit Curr) 279.95 271.8 251.75 238.38 227.9

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Market Capitalisation 89,421.40 67,739.81 68,334.65 63,757.97 81,154.23

Financial Years High & Low Prices

High Date (BSE) 12-Sep-14 16-May-13 18-Jan-13 27-Jun-11 21-Sep-10

High Price (BSE) 410.9 320.45 375 360 458.9

Low Date (BSE) 30-Apr-14 31-Jul-13 19-Jun-12 03-Jan-12 29-Apr-10

Low Price (BSE) 258.8 186.2 239 247.35 274

High Date (NSE) 12-Sep-14 16-May-13 18-Jan-13 16-May-11 28-Sep-10

High Price (NSE) 411.2 320.6 374 359.7 456.9

Low Date (NSE) 30-Apr-14 31-Jul-13 25-May-12 03-Jan-12 29-Apr-10

Low Price (NSE) 258.15 186 235.35 247.55 273.05

CEPS (annualised) (Unit Curr) 39.03 51.16 40.98 35.54 47.91

EPS (annualised) (Unit Curr) 20.37 27.43 19.56 15.49 29.19

Dividend (annualised%) 66 87 62 50 95

Payout (%) 32.39 31.72 31.7 32.29 32.55

Cash Flow From Operating Activities 44,487.42 22,049.89 11,610.60 -2,759.77 5,683.89

Cash Flow From Investing Activities -8,610.01 -17,836.58 -8,338.29 -12,249.57 -7,217.99

Cash Flow From Financing Activities -38,374.04 -2,108.07 -3,076.03 14,021.93 1,513.42

Rate of Growth (%)

ROG-Net Worth (%) 3 7.96 5.61 4.6 9.45

ROG-Capital Employed (%) -16.37 7.96 7.26 32.02 14.17

ROG-Gross Block (%) 8.02 7.41 5.7 6.46 29.24

ROG-Gross Sales (%) -5.76 5.81 11.31 19.33 22.95

ROG-Net Sales (%) -7.41 6.03 12.22 21.24 23.34

ROG-Cost of Production (%) -8.57 4.14 14.86 18.62 25.14

ROG-Total Assets (%) -12.54 10.28 8.83 21.71 19.89

ROG-PBIDT (%) -23.19 20.07 21.92 -13.04 -13.55

ROG-PBDT (%) -20.16 44.58 25.83 -36.8 -21.29

ROG-PBIT (%) -23.88 24.07 29.78 -20.79 -24.75

ROG-PBT (%) -19.45 75.74 50.44 -58.73 -35.52

ROG-PAT (%) -24.88 40.24 26.57 -46.89 -27.15

ROG-CP (%) -23.3 25.21 15.68 -26.43 -10.82

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ROG-Revenue earnings in forex (%) -25.91 16.43 -6.32 16.76 23.46

ROG-Revenue expenses in forex (%) -15.85 8.51 4.37 18.47 29.49

ROG-Market Capitalisation (%) 32.01 -0.87 7.18 -21.44 12.64

Key Ratios

Debt-Equity Ratio 1.06 1.31 1.31 1.13 0.92

Long Term Debt-Equity Ratio 0.48 0.42 0.32 0.29 0.35

Current Ratio 0.89 0.89 0.87 0.84 0.81

Turnover Ratios

Fixed Assets Ratio 4.05 4.63 4.66 4.44 4.33

Inventory Ratio 8.58 8.1 8.18 8.05 8.36

Debtors Ratio 53.34 45.17 45.33 45.97 48.84

Interest Cover Ratio 2.82 2.62 1.87 3.05 4.37

PBIDTM (%) 3.01 3.82 3.64 5.14 4.57

PBITM (%) 2.05 2.67 2.55 4 3.3

PBDTM (%) 2.28 2.8 2.28 3.83 3.81

CPM (%) 1.83 2.31 2.15 3.6 3.35

APATM (%) 0.88 1.17 1.05 2.47 2.08

ROCE (%) 6.39 8.4 8.16 13.55 11.58

RONW (%) 6.23 9.25 8.41 18.61 14.06

Debtors Velocity (Days) 7 7 6 6 5

Creditors Velocity (Days) 31 28 25 26 22

Assets Utilisation Ratio (times)

Value of Output/Total Assets 1.82 1.91 1.99 2.18 2.35

Value of Output/Gross Block 3.72 3.85 3.94 4.06 4.5

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