Beruflich Dokumente
Kultur Dokumente
2012
INTRODUCTION TO
OIL AND GAS CORPORATION
LIMITED (ONGC)
1.1
1.2
1.3
1.4
HISTORY OF ONGC
BASIC INFORMATION
ONGC VISION AND
MISSION STATEMENT
ASSETS/BASINS/PLANTS/INSTITUTE
1.7
1.8
1.9
INTRODUCTION
1.1
HISTORY OF ONGC
1947-1960
During the pre-independence period, the Assam Oil Company in the north-eastern and
Attack Oil company in north-western part of the undivided India were the only oil
companies producing oil in the country, with minimal exploration input. The major
part of Indian sedimentary basins was deemed to be unfit for development of oil and
gas resources.
After independence, the national Government realized the importance oil
and gas for rapid industrial development and its strategic role in defence.
Consequently, while framing the Industrial Policy Statement of 1948, the
development of petroleum industry in the country was considered to be of
utmost necessity.
Until 1955, private oil companies mainly carried out exploration of hydrocarbon
resources of India. In Assam, the Assam Oil Company was producing oil at Digboi
(discovered in 1889) and the Oil India Ltd. (a 50% joint venture between
Government of India and Burmah Oil Company) was engaged in developing
two newly discovered large fields Naharkatiya and Moran in Assam. In West
Bengal, the Indo-Stan vac Petroleum project (a joint venture between Government of
India and Standard Vacuum Oil Company of USA) was engaged in exploration
work. The vast sedimentary tract in other parts of India and adjoining
offshore remained largely unexplored.
In 1955, Government of India decided to develop the oil and natural gas resources in
the various regions of the country as part of the Public Sector development. With this
objective, an Oil and Natural Gas Directorate was set up towards the end of 1955, as a
subordinate office under the then Ministry of Natural Resources and Scientific
Research. The department was constituted with a nucleus of geoscientists from the
Geological survey of India.
2
A delegation under the leadership of Mr. K D Malviya, the then Minister of Natural
Resources, visited several European countries to study the status of oil industry in
those countries and to facilitate the training of Indian professionals for exploring
potential oil and gas reserves. Foreign experts from USA, West Germany, Romania
and erstwhile U.S.S.R visited India and helped the government with their expertise.
Finally, the visiting Soviet experts drew up a detailed plan for geological and
geophysical surveys and drilling operations to be carried out in the 2nd Five Year
Plan (1956-57 to 1960-61).
In October 1959, the Commission was converted into a statutory body by an act of the
Indian Parliament, which enhanced powers of the commission further. The main
functions of the Oland Natural Gas Commission subject to the provisions of the Act
were "to plan, promote, organize and implement programs for development of
Petroleum Resources and the production and sale of petroleum and petroleum
products produced by it, and to perform such other functions as the Central
Government may, from time to time, assign to it ". The act further outlined the
activities and steps to be taken by ONGC in fulfilling its mandate.
1961-1990
Since its inception, ONGC has been instrumental in transforming the country's limited
upstream sector into a large viable playing field, with its activities spread throughout
India and significantly in overseas territories. In the inland areas, ONGC not only
found new resources in Assam but also established new oil province in Cambay basin
(Gujarat), while adding new petroliferous areas in the Assam-Arakan Fold Belt and
East coast basins (both inland and offshore).
ONGC went offshore in early 70's and discovered a giant oil field in the form of
Bombay High, now known as Mumbai High. This discovery, along with subsequent
discoveries of huge oil and gas fields in Western offshore changed the oil scenario of
the country. Subsequently, over 5 billion tonnes of hydrocarbons, which were present
in the country, were discovered. The most important contribution of ONGC, however,
is its self-reliance and development of core competence in E&P activities at a globally
competitive level.
After 1990
The liberalized economic policy, adopted by the Government of India in July 1991,
sought toderegulate and de-licenses the core sectors (including petroleum sector) with
partial disinvestments of government equity in Public Sector Undertakings and other
measures. As consequence thereof, ONGC was re-organized as a limited Company
under the Companys Act, 1956 in February 1994.
After the conversion of business of the erstwhile Oil & Natural Gas Commission to
that of Oil & Natural Gas Corporation Limited in 1993, the Government disinvested 2
per cent of itsshares through competitive bidding. Subsequently, ONGC expanded its
equity by another 2 per cent by offering shares to its employees.
During March 1999, ONGC, Indian Oil Corporation (IOC) - a downstream giant and
Gas Authority of India Limited (GAIL) - the only gas marketing company, agreed to
have crossholding in each other's stock. This paved the way for long-term strategic
alliances both for the domestic and overseas business opportunities in the energy
value chain, amongst themselves. Consequent to this the Government sold off 10 per
cent of its share holding in ONGC to IOC and 2.5 per cent to GAIL. With this, the
Government holding in ONGC come down to 84.11 per cent.
In the year 2002-03, after taking over MRPL from the A V Birla Group, ONGC
diversified into the downstream sector. ONGC will soon be entering into the retailing
business. ONGC has also entered the global field through its subsidiary, ONGC
Videsh Ltd. (OVL). ONGC has made major investment in Vietnam, Sakhalin Sudan
and earned its first hydrocarbon revenue from its investment in Vietnam.
1.2
BASIC INFORMATION
Company name: Oil & Natural Gas Corporation Limited.
1.3
1.3.1
COMPANYS VISION
To be a world class Oil & Gas Company Integrated in energy business with
dominant Indian leadership and global presence.
Motto
Provide quality services with efficiency and transparency.
1.3.2 MISSION
World Class
Dedication towards
and
It is Asias best Oil & Gas Company, as per a recent survey conducted by USbased magazine Global Finance.
It is placed at the top of all indian corporte listed in forbes 400 global
corporate (rank 133 rd) and financial times global 500(rank 326th),by market
capitalization.
It owns and operates more than 11000 kilo meters of pipelines in India,
including nearly 3200kilometers of sub-sea pipelines. No other company in
India operates even 50 per cent of this route length.
Crossed the landmark of earning Net Profit exceeding Rs.10, 000 Core, and
the first to do so among all Indian Corporate, and a remarkable Net Profit to
Revenue ratio of 29.8 per cent. The growth in ONGC's profits is not solely due
to deregulation in crude prices in India, as deregulation has affected all the oil
companies, upstream as well as downstream, but it is only ONGC which has
exhibited such a performance (of doubling turnover and profits). Has paid the
highest-ever dividend in the Indian corporate history.
Its 10 per cent equity sale (India's highest-ever equity offer) received
unprecedented Global Investor recognition. This was a landmark in Indian
equity market, establishing beyond doubt, the respect ONGC's professional
management commands among the global investor community. According to a
report published in 'The Asian Wall Street Journal (Hong Kong)',ONGC's
Public Issue brought in 20 Foreign Institutional Investors (FIIs) to India, as (it
was reported), 'they could not ignore the company representing India's energy
security'.
1.4
ASSETS/BASINS/PLANTS/INSTITUTES
Assets/Plants
Basins
K. G. Basin, Rajahmundry
Plants
Region
Institutes
Services
2) WEAKNESS
3) OPPURTUNITY
4) THREATS
1
0
1
0
1
1
New Business
ONGC has also ventured in Coal Bed Methane (CBM) and Underground Coal
Gasification (UCG); CBM production would commence in 2006-07 and UCG in
2008-09.
ONGC is also looking at Gas Hydrates, as it is one possible source that could make
India self sufficient in energy, on a sustained basis.
1.6
1.6.1 SUBSIDIARIES
1.6.1.1 ONGC Videsh Ltd.(OVL)
ONGC Videsh ltd is the wholly subsidiary of ONGC
OVL is the first Indian company to produce oil & gas overseas.
OVL today is the Second largest E&P Company in India, second only to ONGC
inters of Oil & Gas reserves. It has 12 overseas assets and is actively seeking more
opportunities. OVLs efforts have been supported wholeheartedly by the Govt. of
India, which has allowed OVL single window clearance for overseas upstream
projects irrespective of investments involved.
OVL has been designated as the Indian Nodal Agency for overseas petroleum
business and is maintained as a permanent participant in all concerned bilateral
interaction and joint working groups of Govt. of India. The strategic objective of
parent company ONGC and the Govt of India provide the basis for the strategic
direction of OVL. Taking into account the industry environment and other influencing
factors, both internal and external, strategic direction has been formulated, which is
re-evaluated on a continuous basis given the rapidly changing nature of the global
petroleum industry to better adapt to the scenario.
The functional directors of ONGC serve as the directors on the OVL board as well,
thus inducing cohesion of the corporate objectives and goal congruence in both
organizations.
OVL follows meritocracy and draws its human resource from the parent company,
were the functional directors are consulted for selection. The finance for the operation
is provided by ONGC in form of Loans, interest free advances and equity.
MRPL, a subsidiary of ONGC has turned back to a profit making company just inthe
3rd after ONGC management control. ONGCs shareholding has increased from51%
to 71.62% in June July 2003 through the buy-back of lenders equity at par, under the
mutually agreed Debt Restructuring Package.
MRPL has showed excellent performance in the very first year of its operation as
subsidiary of ONGC. The performance in 2003-04 under all parameters was better
than the projection made at the time of the acquisition. It earned net profit of Rs,
4594.15 million as against a net loss of Rs.4118.06 million in previous year. MRPL is
no longer a potentially sick company as its accumulated losses have gone down below
st
50% of the net worth on 31 March 2004. MRPL was awarded highest Five Star
rating the British Safety Council. It is the third refinery in India to get this prestigious
certification.
Equity shares of MRPL are now traded under A category of Mumbai Stock
Exchange (BSE) from 1st March 2004. The Market capitalization of MRPL on the
BSEtouched Rs.100 billion mark on 7Th January, 2004.
MRPL exported products (Motor Spirit, Naphtha, Reformate, HSD, ATF, FO, LSHS)
worth Rs.44720 million during the year (up 133.77% from Rs.19130 million) and has
emerged as the second largest export of petroleum products.
MRPL has entered in MOU with ONGC for purchase of Mumbai High Crude at arms
length price.
This 50-50 JV with Indian Oil Corporation Ltd (IOCL),in corporate on 8 June 2001
has incurred cumulative loss of Rs. 30.1 million till 31
st
1.8ONGC Organogram
(Crc structure)
discovered. The peak production was achieved in the 22 year of it existence. The
decline has been arrested & now production has been increasing from 1999. The
revival has achieved through better reservoir management, implementation of
different IOR & EOR.
Exploration todays focused on subtle traps of & small amplitude entrapment
situation. Current effort is best with problem related to shield of middle scone market
especially thick coals, which tends to mask seismic reflection from deeper section.
The major oil field of mehsana asset have been operating for last 25 year.80% of well
operate of artificial lift. About 400 works over operation are carried ot every year.
Despite problems related to aging, asset has between able to pag down the sick well
inventory well under control.
As a mehsana of build up to date for future coal bed methane exploration, a number of
coal cores have taken from shobhasan filed as a part of R & D efforts, this however
will go a long way in chalking out strategy for CBM exploration. Two wells drilled
for underground coal gasification in mehsana city were evaluated for utility
exploration of UCG. it is estimated that the asset has 63 billons tones of local reserves
at the depth of 700 to 1700 masters with expected producible energy of 15000 BCM.
th
The mehsana project came into 7 nov 1967 when it has bifurcated from Ahmadabad
to facilitate administrative & operational convenience.
First oil well drilled-mehsana 2. Deepest well drilled south warasan-I depth
5000M>
2
0
Year
2012
2.1
MEHSANA FINANCE
DEPARTMENT STRUCTURE
INTRODUCTION OF VARIOUS
FINANCE SECTIONS
2.2
FINANCIAL INFORMATION OF
THE COMPANY
2.3
21
GENERALMANAGER(
F&A))
CHIEFMANAGER(F&A)
INCHARG
ECENTR
ALA/C
INCHARG
E
ASSETA/C
INCHARG
ECOSTIN
G/WELLS
/IUT
INCHARG
ECASH/B
ANK
INCHARG
EPREAUD
IT
INCHARG
EBUDGE
T
2
2
INCHARG
E PCS
BUDGET SECTION:
Introduction
Under the guidance of Mr. Vishal sir. I came to realize the importance of budgeting.
In ONGC, the budget section plays a very important and crucial role. The reason is
that whenever there is requirement of any kind of material or service, proper
arrangement of fund is required and for that purpose budgeting is done. Due to
restriction on number of pages for project report, every detail of budget is not
covered.
Budgetary controls definition
Budgetary control is a technique whereby actual utilization is compared
with budgets to make the budget an effective financial control tool. Any
differences/ variances are the responsibility of ke y individuals who can either
exercise control action or revise the original budgets after providing necessary
justifications to the top management. Budgetary control is defined by the Institute of
Cost and Management Accountants (CIMA) as: The establishment of budgets relating
the responsibilities of executives to the requirements of a policy, and the continuous
comparison of actual results with budgeted results, either to secure by individual
action the objective of that policy, or to provide a basis for its revision
Budgeting Process in ONGC
General Functioning or System or working of F&A department (especially in respect
of Budgeting)
Before moving forward it is important to know about the Budget Software known as
Budget Manual which is used for the budget data entry prior uploading of final data
into SAP
The method use by ONGC is ACTIVITY BASE BUDGET. This budget done by the
various departments like drilling department, surface department, MM department,
logging department etc. according their future needs and at last the club it in to the
actual budget.
2.2.2
This section is responsible for the receipts and payments either in cash or cheque or
by any other form. This section is also responsible for the custody of cash, documents
in respect of investments of corporation money and other important documents. Major
activities perform by cash & bank section
Cheque management
MIS activities.
Various fees for issuing tender forms to our suppliers are collected by cash
and bank section.
2.2.3
This section is also known as accounts payable section. The section is divided into
two parts one is pre-audit supply cell and other is pre-audit service contract cell.
Pre-audit is also known as voucher-audit or administrative audit and denotes scrutiny
&examination, before releasing the payments. Types of Bills:
Suppliers Bills
Contractors Bills
Bank guarantees.
2.2.4
This section deals with policies, procedures, controls, roles and responsibilities related
to accounting for employee related payments, recoveries, corresponding statutory
payments &compliances. The process explained in this section covers payments
to/recoveries from:
2.3.6Corporate tax
In view of loss during the year under review, the company has not provided for any
tax liability this year also.
2.3.7Debtors
During the year under the review the sundry debtors were compared to in the previous
year representing of sales compared to of sales In the previous year. The sundry
debtors are net of provision for doubtful debts of the increase in sundry debtors are
due to market conditions.
2.3.8Inventories
Inventories decreased from in the previous year to during the current year to during
the current year. Of this finished goods, raw material and spares inventory of stock in
process however increased.
2.3.9Working capital
The working capital gap during the current year was lower at which is lower than in
tha previous year. The working capital of is founded by bank borrowing to the extent
of and the balance is founded out of companys own resource. Each rupee of working
capital generated of gross turnover in the current year compared to in the previous
year. Oil and natural gas corporation ltd shall continue to make to further improve
working capital management by stricter control over inventories and book debts.
2.3.10
Reserves
Oil and natural gas corporation ltd reserves stood at as on nearly per cent of the
companys reserves were earned. Per cent comprised capital reserves. There were no
revaluation reserves as on. During the year under review a Sam of representing items.
Year
2012
BALANCESHEET
ANALYSIS
INTRODUCTION TO
BALANCESHEET
3.1
BALANCE SHEET
3.2
28
3.1
INTRODUCTION TO BALANCESHEET
A balance sheet is a list of assets and liabilities and claims of a business at some
specific point of time and is prepared from an adjusted Trial Balance. It shows the
financial position of a business by detailing the source of funds and utilization of
these funds. Balance Sheet shows the assets and liabilities grouped, properly
classified and arranged in a specific manner.
Different ratio can be calculated from the Balance Sheet and these ratios can
be utilized for better management of the business.
The balance sheet can not reflect the value of certain factors such as skill and
loyalty of staff.
2
9
MARCH
Mar
'10
12
mths
Mar
'09
12
mths
Mar
'08
12
mths
Mar
'07
12
mths
4,277.7
6
2,138.8
9
2,138.
89
2,138.
89
2,138.8
9
Equity
Share
Capital
4,277.7
6
2,138.8
9
2,138.
89
2,138.
89
2,138.8
9
Share
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
93,226.
67
0.00
85,143.
72
0.00
76,596
.53
0.00
68,478
.51
0.00
59,785.
04
0.00
97,504.
43
0.00
87,282.
61
0.00
78,735
.42
0.00
70,617
.40
0.00
61,923.
93
0.00
17,564.
26
16,405.
64
16,035
.70
12,482
.71
15,109.
07
17,564.
26
115,06
8.69
16,405.
64
103,68
8.25
16,035
.70
94,771
.12
12,482
.71
83,100
.11
15,109.
07
77,033.
00
80,938.
60
62,299.
05
71,553.
78
55,905.
28
61,355
.61
50,941
.23
57,463
.78
46,945
.77
52,038.
07
43,198.
95
18,639.
55
15,648.
50
10,414
.38
10,518
.01
8,839.1
2
Sources
Of
F
Total Share
Capital
unds
Applica
tion
Money
Preference
Share
Capital
Reserves
Revaluation
Reserves
Networth
Secured
Loans
Unsecured
Loans
Total Debt
Total
Liabilities
Application Of Funds
Gross Block
Less:
Accum.
Depreciatio
n
Net Block
Capital
Work in
Progress
65,354.
44
56,073.25
41,154
.63
37,794.
16
Investment
s
Inventories
5,332.8
4
4,118.9
8
3,845.9
0
356.55
5,772.03
5,899.
50
3,480.
64
4,360.
37
269.22
5,702.0
5
3,033.7
6
2,759.4
4
27.42
Total
Current
Assets
8,321.4
3
8,020.06
8,110.
23
5,820.6
2
Loans and
64,693.
91
63,721.90
38,906
.53
58,710.
79
Fixed
Deposits
Total CA,
Loans
& Advances
22,090.
00
95,105.
34
17,948.18
22,148
.43
69,165
.19
19,253.
37
83,784.
78
Deffered
Credit
Current
0.00
0.00
0.00
0.00
35,384.
31
27,244.53
22,482
.94
19,835.
99
34,775.
19
70,159.
50
37,092.46
21,828
.17
44,311
.11
39,765.
20
59,601.
19
24,945.
84
25,353.15
24,854
.08
24,183.
59
Miscellaneo
us
Expenses
796.03
841.32
673.90
514.06
Total Assets
115,06
8.70
38,979.
63
103,688.25
83,100
.12
26,006
.73
77,032.
98
34,157.
17
113.97
408.08
330.16
289.52
Sundry
Debtors
Cash and
Bank
Balance
Advances
Liabilities
Provisions
Total CL &
Provisions
Net Current
Assets
Contingent
Liabilities
Book Value
(Rs)
4,678.57
3,058.64
282.85
161.48
89,690.14
0.00
64,336.99
650.61
39,178.54
368.12
Table no:1
3
1
INTERPRETATION: The balance sheet is the statement showing the increase or decrease in the
assets and liabilities. This indicates the change in capital structure as well as
increase or decrease in assets.
Owners fund increases by 2138.87 Crore in 2011 as compared to base year
2007. The reserves & surplus is also get increase in last four years very
rapidly. It increases by 33441.63 Crore in 2011 as compared to base year
2007.
Proportion of the debt in capital structure is decrease that is in2007borrowing
debt is 15,109.07 Crore and in 2008 debt is 12,482.71 Crore. So, it is decrease
by 96.43.after next three year continues increase.
The balance sheet also shows the balance of assets and other investment made
by the company. The gross fixed assets are increased in 2008 by 1678.90
Crore as compared to previous year 2007.
The investment is also increase in 2008 by 197.45 Crore as compared to
previous year. After the investment is also decreases in 2009 by 800.18 crore
as compared to previous year. And in 2010 it is increase than 2009 after than it
is a decrease in 2011 by439.19 crore. The overall inventory turnover ratio
shows the good position of the company is good.
We also conclude that the liquid position of the company is good because
Current Assets are increase year by year.
INVESTMENT CHART:-
Investments
6,000.00
5,800.00
5,899.50
5,772.03
5,702.05
5,600.00
5,400.00
5,332.84
5,200.00
5,000.00
Investments
5,090.32
4,800.00
4,600.00
2007
2008
2009
2010
2011
Chart no:1
Year
2012
PROFIT AND
ANALYSIS
LOSS
ACCOUNT
4.1
4.2
34
3
5
Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock
Total Income
Expenditure
Raw Materials
Power & Fuel
Cost
Employee
Cost
Other
Manufact
uring
Expenses
Selling
and
Admin
Expenses
Miscellan
eous
Expenses
Preoperativ
e Exp
Capitalised
Total Expenses
Operating
PBDIT
Interest
PBDT
Depreciation
Other Written
Off
Profit
Before
Tax
Extra-ordinary
items
PBT
(Post
Extra-ord
Items)
Tax
Reporte
d Net
Profit(P
Total Value
Addition
Preference
Dividend
Equity Dividend
Corporate
Dividend Tax
Mar
12
mths
66,487.
19
322.85
66,164.
34
5,028.0
7
12.91
71,205.
Mar
12
mths
60,470
.18
218.41
60,251
.77
3,615.
96
118.04
63,98
Mar
12
mths
64,342
.28
338.2
9
64,003
.99
4,085.
59
81.10
68,17
Mar
12
mths
60,466
.48
401.38
60,065
.10
4,228.
63
114.11
64,40
Mar '07
12 mths
2,790.6
8
285.60
6,445.1
8
32,098.
77
2,431.
88
260.38
5,618.
16
26,652
.82
10,905.
51
270.79
4,536.8
0
19,578.
49
8,424.
32
317.15
5,843.
27
17,184
.51
8,177.2
2
320.28
3,974.7
9
15,616.
76
16,565.
10
492.78
13,24
3.69
947.65
2,328.
21
983.74
-560.70
0.00
0.00
4,470.7
8
1,011.0
4
0.00
0.00
1,079.2
7
0.00
25,547.
91
Mar '11
12
mths
40,629.
45,657.
41
11,133.
34
34,524.
07
6,835.0
1
0.00
27,689.
06
547.70
28,236.
76
9,177.5
3
18,924.
00
22,757.
23
0.00
7,486.0
5
1,215.6
5
22,667
.20
Mar
'10
12
mths
37,702
41,318
.57
11,276
.89
30,041
.68
5,242.
66
0.00
24,799
.02
183.99
24,983
.01
8,258.
73
16,767
.56
20,235
.33
0.00
7,058.
28
1,161.
56
31,831.
85
Mar '09
12
mths
32,253.
36,338.
83
8,485.4
0
27,853.
43
4,355.6
2
0.00
23,497.
81
790.68
24,288.
49
8,437.7
8
16,126.
32
20,926.
34
0.00
6,844.3
9
1,163.2
0
30,424
.78
Mar
'08
12
mths
29,754
33,983
.06
5,016.
88
28,966
.18
3,915.
77
0.00
25,050
.41
607.25
25,657
.66
8,941.
85
16,701
.65
22,000
.46
0.00
6,844.
39
1,163.
20
28,607.
62
Mar '07
12 mths
28,286.
31,393.
14
3,724.8
1
27,668.
33
3,292.8
0
0.00
24,375.
53
-564.27
23,811.
26
8,041.0
2
15,642.
92
20,430.
40
0.00
6,630.5
1
1,012.5
1
57,190.
17
276.73
56,913.
44
3,107.0
5
-19.73
60,000.
21,388.
75.40
21,388
78.09
21,388.
73.14
320.00
368.12
320.00
330.16
310.00
289.52
Table no:2
PAT
20,000.00
15,642.92
16,701.65
16,126.32
18,924.00
16,767.56
15,000.00
10,000.00
pat
5,000.00
0.00
2007
2008
Chart no:2
2009
2010
2011
INTERPRETATION:The profit and loss account of the company shows the overall income and
expenditure, made by the company in a particular time period. The difference between
the debit and credit side of the P&L account, shows the net profit or net loss.
Here, the profit and loss account of the company shows the satisfactory level but as
compared to previous year the expenses of the company is increases. Here the
sales turnover is increase year by year. The operating income in 2010 is 60,470.18
and now it is increase by 6017.01 Crore Rs. in 2011. So, by this way the net
profit of the company is increase by 2156.44 in 2011 as compared to previous year.
While on the other side the expenditure shows the expenses meet by the company in a
particular period. The expenditure met by the company is highest in 2009, while in
other year the expenditure of the company are increases. T h e overall analysis of
the expenditure side of the company shows the average increase in expenses of
the company.
After analyzing the income and expenditure side of the company, there is difference
between both sides which is known as the net profit / loss. The net profit of the
company shows an overall increase year by year. In 2007 it is 15,642.92Crore Rs. and
now itis increasing and in 2011 it is 18,924.00 Cr.
Year
2012
THEORETICAL BACKGROUND
OF WORKING CAPITAL
MANAGEMENT
5.1
5.2
5.3
5.4
5.5
5.6
5.7
39
In simple words working capital means that which is issued to carry out the day to day
operations of a business. Capital required for a business can be classified under two
main categories
Fixed capital
Working capital
Every business needs funds for two purposes, for its establishment and to carry on its
day to day operations. Long term funds are required to create production facilities
through purchase of fixed assets such as plant and machinery, land, building, furniture
etc. Investment in these assets represents that part of firm capital, which is blocked on
a permanent or fixed basis called fixed capital. Funds are also needed for short term
purposes i.e. for the purchase of raw material, payment of wages and other day to day
operations of business. These funds are known as working capital. In other words,
working capital refers to that firms Capital, which is required for short term assets
or current assets. Funds thus invested in current assets keep revolving last and being
constantly converted into cash and this cash flow is again converted into other current
assts. Hence it is known as circulating or short term capital.
4
0
As the operating cycle is a continuous process so the need for working capital also
arises continuously. But the magnitude of current assets needed is not always same; it
increases and decreases over time. However there is always a minimum level of
current assets. This level is known as permanent or fixed working capital.
In ONGC maintain the Permanent working capital of the raw material as a 1/3 of total
raw material and 10% work in process and finished goods of the total production.
20% cash balance maintain as permanent in the profit.
5.3.2
The extra working capital needed to support the changing production and sales
activities, is called variable or functioning or temporary working capital.
For hear ONGC purchase raw material as a plastic for manufacturing pipes in
particular season and have to employ additional labour to process it. They must meet
this requirement for providing additional funds. Another aspect of temporary working
capital. Last year suddenly increase the demand of final product so at that time require
extra fund its called the special working capital.
Temporary working capital differs from permanent working capital in the sense that is
required for short periods and cannot be permanently employed gainfully in the
business. This can
Be shown in the following diagram:-
Temporary
capital
Permanent Capital
Time
(DRAW NO: 5 TEMPORARY WORKING CAPITAL)
5.4.1
OPERATING CYCLE
Operating cycle is the time duration requires for converting sales into
cash after the conversion of resources into inventories.
First of all a firm purchase Raw Material, then after some processing it is converted
into workinprogress and after this further processing is done to convert workin
progress in finished goods. After the raw material is converted into finished goods,
sales are made. Sales are no always full cash sales; there are credit sales also. These
credit sales after some period are converted into cash. So the whole process takes the
time. This time taken is known as the length of operating cycle. So operating cycles
includes:1.
2.
3.
4.
Work in Progress
Cash Collection from Debtors
Sales
Finished Goods
Credit Sales
Cash Sales
If the length of the operating cycle has short length period then less working capital is
required. So working capital requirement is directly related with operating cycle.
Operating cycle may be of two types
1.
2.
5.4.2
The working capital of a firm basically depends upon nature of its business for e.g.
Public utility undertakings like electricity; water supply needs very less working
capital because offer only cash sales whereas trading & financial firms have a very
less investment in fixed assets but require a large sum of money invested in working
capital.
The size of business also determines working capital requirement and it may be
measured in terms of scale of operations. Greater the size of operation, larger will be
requirement of working capital. Hear ONGC company for manufacturing products not
to the service so require to working capital high in compare to public ltd. Company.
5.5.2
Manufacturing Cycle:
The manufacturing cycle also creates the need of working capital. Manufacturing
cycle starts with the purchase and use of Raw Material and completes with the
production of finished goods. If the manufacturing cycle will be longer more working
capital will be required or vice versa.
In oil and gas corporation ltd. Production Cycle works better and manufacturing
process works fast, so no other costs are incurred in the time of production.
5.5.3
Seasonal variation:
In certain industries like ONGC raw material is not available throughout the year.
They have to buy raw material in bulk during the season to ensure an uninterrupted
flow and process them during the year. Generally, during the busy season, a firm
requires large working capital than in the slack season.
5.5.4
Production Policy:
Production policy also determines the working capital level of a firm. If the firm has
steady production policy, it may require need of continuous working capital. But if
the firms adopt a fluctuating production policy means to produce more during the lead
demand season then the more working capital may require at that time but not in other
period during a financial year. So the different productions policy arise different type
of need of working capital.
If the policy is to keep production steady by accumulate inventories it will require
higher working capital.
Oil and gas corporation ltds Production policy is not steady so Requirement of
working capital is less.
5.5.5 Firms Credit Policy:
The firms credit policy directly affects the working capital requirement. If the firm
has liberal credit policy, hence the more credit period will be provided to the debtors
so this will lead to more working capital requirement. With the liberal credit policy
operating cycle length increases and vice versa.
Oil and gas corporation ltd Credit Policy for collection toward the debtor for giving 2
or 3 weeks for credit sales in the limit of 2 lakh. Above the 2 lakh give credit for 1
month.
5.5.6 Sales Growth:
Working capital requirement is directly related with sales growth. If the sales are
growing, more working capital will be needed due to arises need of more Raw
Material, finished goods and credit sales. Hear, ONGC Sales growth is increase in
year by year so require more working capital.
5.5.7 Business Cycle:
Business cycle refers to alternate expansion and contraction in general business. In a
period of boom, larger amount of working capital is required where as in a period of
depression lesser amount of working capital is required. ONGC Position is growth
stage. So require working capital is high.
2.
What should be the appropriate mix of short term financing and long term
financing for financing these current assets?
5.7.1
If the firm can forecast accurately the factors, which effect the working capital, the
4
7
4
8
Determining a Short Term and Long Term Financing Mix for Financing of
current assets
There are three approaches in this regard, which are discussed below:
Assets
Permanent current
assets
Fixed Assets
Time
Assets
Permanent Current Assets
Long-term financing
Fixed Assets
Time
(DRAW NO:8 CONSERVATIVE APPROACH)
Assets
Permanent current assets
Fixed Assets
Time
2011
2010
4,118.98
3,845.90
356.55
4,678.57
3,058.64
64,693.91
63,721.90
73,015.34
71741.96
70,159.50
64,336.99
70,159.50
64,336.99
2855.84
7404.97
282.85
INCREASE
DECREASE
5559.59
787.26
73.7
972.01
5822.51
7655.48
2011
2010
4,118.98
3,845.90
356.55
4,678.57
3,058.64
64,693.91
63,721.90
73,015.34
71741.96
70,159.50
64,336.99
70,159.50
64,336.99
2855.84
7404.97
282.85
INCREASE
DECREASE
5559.59
787.26
73.7
972.01
5822.51
7655.48
(RS. Cr)
PARTICULARS
CURRENT
ASSETS:
Inventories
S. debtors
Cash &
Bank
Balance
Loans
&
Advances
Total
current
assets
CURRE
NT
LIABILI
Liabiliti
es&
provisi
Total
current
liabilitie
Working
capital (AB)
Net
increase
in
2009
2008
INCREASE
4,060.67
4,083.80
3,480.64
4,360.37
580.03
161.48
269.22
55,964.02
38,906.53
64269.97
47016.76
57,512.09
44,311.11
57,512.09
44,311.11
6757.88
2705.65
DECREASE
276.57
107.74
17057.49
13200.98
30838.5
(Rs.cr)
PARTICULAR
S
CURR
ENT
ASSE
Inventories
S. debtors
Cash &
Bank
Balance
Loan
s&
Adva
Total
current
assets
CURRE
NT
LIABILI
Liabiliti
es&
provisi
Total
current
liabilitie
Working
capital (AB)
Net
increase
in
2008
2007
INCREASE
3,480.64
4,360.37
3,033.7
6
2,759.4
4
27.42
446.88
1600.93
241.8
269.22
38,906.53
47016.7
6
44,311.11
44,311.11
2705.65
DECREAS
E
58,710.
79
64531.
41
19804.26
59,601
.19
59,601
.19
4930.2
2
15290.08
2047.81
Year
2012
MANAGEMENT OF
INVENTORY
6.1
NATURE OF INVENTORIES
6.2
OBJECTIVES OF INVENTORY
MANAGEMAENT
6.3
ANALYSIS OF EFFICIENCY OF
INVENTORY MANAGEMENT IN ONGC
53
MANAGEMENT OF INVENTORY
Nature of Inventories
In inventories we include:
a
Raw Material: There are those basic inputs which are converted into
work-in- progress after the manufacturing process. ONGC purchased
Raw materials as a Rough Plastic for production and storage purpose.
2 OBJECTIVES OF INVENTORY
MANAGEMENT
There are so many objectives of inventory management. These objectives may
differ from firm to firm. The main objectives of inventory management are:
utilized.
Smooth production in present and future.
Time availability of inventories.
Smooth and uninterrupted sale processes.
Minimize the cost related with inventories.
To meet the future price change.
To get adequate return on investment.
ANALYSIS OF EFFICIENCY OF
INVENTORY MANAGEMENT IN
ONGC
Particular
2010-11
2009-10
2008-09
Sales
66164.3
4
45657.4
1
20506.9
3
60251.7
7
41318.5
7
18933.2
0
64003.99
Gross Profit
COGS
36338.83
27665.16
200708
60065
.10
33983
.06
26082
.04
200607
5691
3.44
3139
3.14
25520
.30
Average Inventory:
(Rs.cr)
Particular
2010-11
2009-10
2008-09
200708
200607
Opening Stock
4678.57
4060.67
3480.64
Closing Stock
4118.98
4678.57
4060.67
3033.
76
3480.
64
2512
.34
3033
.76
Average
Inventory
4398.78
4369.62
3770.66
3257.
2
2923.
05
201011
200910
200809
200708
COGS
20506.
93
4398.0
5
4.66
18933.
20
4369.6
2
4.33
27665.
16
3770.6
6
7.34
26082.
04
3257.2
Avg. Inventory
Inventory
8.00
(Rs.cr)
200607
25520
.30
2923.
05
8.73
Turnover
Ratio
Table no:3
8.73
9
8
7
6
5
4
3
2
1
0
7.34
4.66
4.33
Inventory
Turnover Ratio
2010-112009-102008-092007-082006-07
Chart no:3
Analys
is:
The inventory turnover ratio is increasing in the year 2007 after next
Year
2012
RATIO ANALYSIS
CLASSIFICATION OF RATIO
57
OIL AND
NATURAL GAS
CORPORATION
LTD
RATIO ANALYSIS
Ratio analysis is a widely used tool for financial analysis. It is defined as the
systematic use of ratio to interpret the financial statement, so that the
strength and weakness of a firm as well as its historical performance and
current financial condition can be determined. The term ration refers to the
numerical and quantitative relationship between two items/variables. The
relationship can be expressed as:1 Percentage
2 Fraction
3 . Proportion of numbers
The rational of ratio analysis lies in the fact that it makes related information
comparable. A single figure by itself has no
meaning
but
when
account of the company before investing their savings. The ratio analysis
Profitability
Useful information about the trend of profitability is available from the
profitability ratios. The gross profit ratio, net profit ratio and ratio of
return on investment give a good idea of profitability of business.
Liquidity
In fact, the use of this ratio is to ascertain the liquidity of the business. The
current ratio and liquid ratio will tell whether the business will be able
to meet its current liabilities as and when they mature.
Efficiency
The turnover ratio are excellent guides to measures the efficiency of
managers. For
e.g. the stock turnover will indicate how efficiency the sales are being made,
the debtors turnover shows the efficiency of collection department and
assets are used in business.
Indicate Trend
The ratio of the last three to five years will indicate the trend in the respective
fields.
6
2 CLASSIFICATION OF RATIO
Ratios can be classified into four broad groups:-
Liquidity Ratio
Profitability Ratio
LIQUIDITY RATIOS
Liquidity is the most important factor in successful financial management. A
firm should have enough money to meets its short-term liabilities, as and
when they become due for payment. If affirm fails to meet its short term
liabilities frequently, its prestige and creditworthiness would be adversely
affected. A very high degree of liquidity is also bad; idle assets earn
nothing. Therefore it is necessary to strike a proper balance between high
liquidity and lack ofLiquidity.
Current Ratio:
This most widely used ratio shows the proportion of current assets to current
liabilities. It is also known as Working Capital Ratio. It is a measure of
short term financial strength of business a n d shows whether the business
will able to meet its current liabilities. Generally, it is believed that ratio of
2:1 is good and shows a comfortable working capital position. But this
ratio i s differing company by company. The formula for calculating these
ratios as under:-
Current Ratio =
Current Assets
Current Liabilities
Current assets:
Particulars
(Rs. in cr)
2006-07
Inventories
201011
4118.98
200910
4678.57
200809
4060.6
7
200708
3480.
64
Debtors
3845.90
3058.64
Cash / bank
balance
Loans / Adv.
356.55
282.85
4083.8
0
161.48
Fixed Deposites
64693.9
1
22090
Total Current
Assets
95105.3
4
63721.9
0
17948.1
8
89690.1
4
55964.
02
18934
074
83204.
71
4360.
37
269.2
2
38906
.53
22148
.43
69165
.19
3033.7
6
2759.4
4
27.22
58710.
79
19253.
37
83784.7
8
Current liabilities:
Particulars
201011
35384.
31
2009-10
Provisions
34775.
19
Total
70159.
50
Liabilities
Current
(Rs.cr)
2006-07
200809
26854.
71
200708
22482
.94
37092.46
30657.
98
21828
.17
39765.20
64336.99
57512.
09
4431
1.11
59601.19
27244.53
19835.99
Liabilities
Current Ratio:
Particular
Current
Assets
Current
Liabilities
Current Ratio
201011
95105.3
4
70159.5
0
1.36
2009-10
2008-09
89690.14
83204.7
1
57512.0
9
1.45
64336.99
1.39
Table no:4
200708
69165.
19
44311.1
1
1.56
(RS .cr)
2006-07
83784.
78
59601.19
1.41
Current Ratio
1.56
1.6
1.55
1.5
1.45
1.45
1.4
1.35
1.3
1.25
1.36
1.39
1.41
Current
Ratio
2010-112009-102008-092007-082006-07
Chart no:4
INTERPRETATION: This calculation implies that the fluctuation in the current ratio. As
compared to previous year the current years ratio shows the better
liquidity position. In 2007 this ratio is 1.41:1 and in 2008 the ratio is
1.56:1 which shows increase in liquidity. The reason behind that cash
balance and receivable is increasing. But after next three year the ratio
is contently decrease.
Quick Assets:
Particulars
2010-11
2009-10
200809
200708
(Rs.cr)
200607
Total
95105.3
4
89690.1
4
83204.
71
69165.
19
83784.
78
nt
Inventories
4118.98
4678.57
4060.6
7
3480.6
4
3033.7
6
Quick Assets
90986.36
85011.57
79144.04
65684.5
5
80751.02
Curre
Quick
liabilities:
(Rs.cr)
Particulars
201011
200910
2008-09
200708
200607
Total Quick
Liabilities
70159.
50
64336
.99
57512.0
9
44311.
11
5960
1.19
Quick
Ratio:
(Rs.c
r)
Particulars
2010-11
2009-10
2008-09
200708
200607
Quick assets
90986.36
85011.57
79144.04
65684.5
5
80751.0
2
Quick
liabilities
70159.50
64336.99
57512.0
9
44311.
11
59601
.19
Quick Ratio
1.30
1.32
1.38
1.48
1.35
Table no:5
Quick ratio
1.48
1.5
1.45
1.38
1.4
1.35
1.3
1.35
1.32
Quick ratio
1.3
1.25
1.2
2010-11
2009-10
2008-09
2007-08
2006-07
Chart no:5
INTERPRETATION: So, as per the current year ratio of the company is up to some extent
satisfactory. This ratio shows the repay ability of the company which is
satisfactory as per lower level all over the year. As compared to
Debt Ratio:
Debt Ratio may be used to analyze the long-term solvency of a firm. The firm
may be interested in knowing the proportion of the interest-bearing debt
(also called funded debt) in the capital structure.
Debt ratio=
Total debt
Capital
Employed
Total Debts:
(Rs.cr
)
Particulars
Secured
Loans
Unsecured
Loans
Total Debts
2010-11
17564.26
17564.26
200910
-
2008-09
16405.6
4
16405.64
16035.7
0
16035.70
200708
-
200607
-
12482.
71
12482.71
15109
.07
15109.07
Capital Employed:
Particular
s
Share
Holders
funds
2010-11
2009-10
97504.4
3
87282.6
1
Total
Debts
Capital
17564.2
16405.6
16035.
12482.
15109.07
6
4
70
71
115068.69 103688.25 94771.12 83100.11 77033.00
Employ
ed
200809
78735.
42
200708
70617.
40
(Rs.cr)
2006-07
61923.93
Debt Ratio:
Particular
s
TD
CE
Debt Ratio:
2010-11
2009-10
17564.2
6
115068.
69
0.15
16405.6
4
103688.
25
0.16
200809
16035.7
0
94771.
12
0.17
200708
12482.7
1
83100.
11
0.15
(Rs.cr)
2006-07
15109.07
77033.00
0.20
Table
no: 6
Debt Ratio
0.2
0.15
0.16
0.17
0.2
0.15
0.15
0.1
Debt
Ratio:
0.05
0
2010-11
2009-10
2008-09
2007-08
2006-07
Chart no:6
INTERPRETATION: The debt ratio is continuously decreasing from 2009 to 2011. Because
Debt-Equity Ratio
The ratio establishes a relationship between long term debts and shareholders
funds. It reflects the relative claims of creditors and shareholders against
the assets of the firm and in other terms it indicates the relative proportion
of debt and equity in financing the assets of the firm.
Long-Term Debt
Particulars
2010-11
Secured
Loans
Unsecured
Loans
Total
200910
-
200809
200708
12482.
71
Surplus
Total
17564.26
16405.6
4
16035.
70
17564.26
16405.64
15109
.07
(Rs.cr)
Shareholders
Fund:
Particular
s
Share
Capital
Reserves
(Rs.cr)
200607
201011
4277.76
200910
2138.89
200809
2138.89
200708
2138.89
200607
2138.8
9
59785.
04
93226.6
7
85143.7
2
76596.4
2
68478.5
1
97504.43
87282.61
78735.42
70617.4061923.93
Debt-Equity Ratio:
Particular
s
2010-11
2009-10
200809
200708
(Rs.cr)
200607
Total
17564.2
6
16405.6
4
16035.
70
12482.
71
15109.
07
97504.4
3
87282.6
1
78735.
42
70617.
40
61923.
93
0.18
0.19
0.20
0.18
0.24
term Debt
Total
holders
Fund
Debt-Equity
Ratio
Table no:7
Debt-Equity Ratio
0.24
0.25
0.2
0.18
0.19
0.2
0.18
0.15
Debt-Equity
Ratio
0.1
0.05
0
2010-11
2009-10
2008-09
2007-08
2006-07
Chart no:7
INTERPRETATION: The ONGC has debt equity ratio indicate, numerator is an equity part
while denominator is a debt part. So we can easily say that equity part
is more than debt part.
2010-11
2009-10
200809
200708
(Rs.cr)
200607
Share
Holders
funds
97504.4
3
87282.6
1
78735.
42
70617.
40
61923.
93
Total Debts
17564.2
6
16405.6
4
16035.
70
12482.
71
15109.
07
C.E.
Net Worth:
(Rs.cr)
Particulars
2010-11
2009-10
2008-09
2007-08
200607
Share
Capital
Reserves
4277.76
2138.89
2138.89
2138.89
93226.6
7
85143.7
2
76596.4
2
68478.5
1
2138.8
9
59785.
04
97504.43
87282.61
78735.42
70617.4061923.93
Surplus
Total
(Rs.cr)
2010-11
2009-10
200809
200708
2006-07
115068.
69
97504.4
3
103688.
25
87282.6
1
94771.
12
78735.
42
83100.
11
70617.
40
77033.0
0
61923.
93
1.18
1.19
1.20
1.18
1.24
Particulars
C.E.
NW
Capital
Employed
to
Net worth
Table no: 8
Ratio
1.24
1.22
1.2
1.2
1.18
1.19
1.18
1.18
Capital
Emplo yed to Net worth Ratio
1.16
1.14
2010-112009-102008-092007-082006-07
Chart no: 8
INTERPRETATION: From the above graph, we can say that in the company, total external
Formula:
Total Liabilities:
Total liabilities
(TL) Total
Assets (TA)
(Rs.cr)
Particular
2010-11
2009-10
2008-09
2007-08
2006-07
Current
70159.50
64336.99
57512.09
44311.11
59601.19
17564.26
16405.64
Liabilities
Secured
Loans
Unsecured
16035.70 12482.71
Loans
Total
Total Assets:
(Rs.cr)
15109.07
Particular
Fixed
Assets
Current
Assets
Total
2010-11
20092008200710
09
08
18639.5
15648.5
10414.
10518.
5
0
38
01
95105.3
89690.1
83204.
69165.
4
4
71
19
113744.89105338.6493619.09 79683.2
200607
8839.
12
83784
.78
92623.9
201011
87723.
76
11374
4.89
0.771
TL
TA
Total
Liabilities
Total
200910
80742.
63
10533
8.64
0.767
200809
73547
.79
93619
.09
0.786
200708
56793
.82
79683
.2
0.713
(Rs.cr)
200607
74710.
26
92623.
9
0.807
to
Assets
Ratio
Table no:9
0.80
7
0.78
6
0.71
3
0.7
0.65
Total
Liabiliti
es to
Total
Assets
Chart no: 9
INTERPRETATION: IN The Analysis the ratio is continuously increasing and decreasing by
year to year. But in 2011 the Total Liabilities to Total Assets Ratio is
increase than previous year. The Reason of increment is Total Assets
are more than total liabilities and increasing year by year.
PROFITABILITY RATIO
Particulars
2010-11
2009-10
2008-09
2007-08
2006-07
Gross Profit
40629.34
37702.61
32253.24
29754.43
Sales
66164.34
60251.77
64003.99
60065.10
61.41
62.58
50.39
49.54
28286.0
9
56913.4
4
49.70
Gross
Profit Ratio
Table no:10
61.4162.58
50.39
49.54
49.7
Gross
Profit Ratio
2010-112009-102008-092007-082006-07
Chart no:10
INTERPRETATION: Gross profit ratio shows the relation between gross profit and sales.
That means how much proportion of gross profit in sales. This ratio is
decrease in last year compared to previous year. It is 1.17. From the above
data we get Gross Profit of 2007, 2008, 2009, 2010, and 2011 are 49.7,
49.54, 50.39, 62.58, and 61.41. In 2008 gross profit ratio is increase
from 49.54 to 50.39 in 2009; gross profit ratio is increase from 50.39 to
62.58. In 2010.
PAT
X100
Sales
Net Profit Ratio:
(Rs.cr)
Particulars
2010-11
2009-10
2008-09
N.P.
18924
16126.32
Sales
66164.3
4
28.60
16767.5
6
60251.7
7
27.83
64003.99
25.20
200708
16701.
65
60065.
10
27.81
200607
1564
2.92
5691
3.44
27.49
Table no:11
28.6
27.81
27.83
28
27.49
27
26
25.2
25
Net Profit
Ratio
24
23
2010-112009-102008-092007-082006-07
Chart no:11
Interpretation: Net profit ratio shows the relationship of PAT with the sales. This ratio
X100
TotalAssets
Particulars
2010-11
2009-10
2008-09
PAT
18924
16767.56
16126.32
T.A
115,068.
70
16.44
103,688.
25
16.17
94,771.1
2
17.01
Return on Total
Investment
Table no:12
200708
16701
.65
83,10
0.12
20.09
(Rs.cr)
200607
15642
.92
77,03
2.98
20.30
20.3
20.09
16.44
16.17
17.01
15
Return on Total
Investment
10
5
0
2010-11
2009-10
2008-09
2007-08
2006-07
Chart no:12
INTERPRETATION: This ratio shows companys profit earned on the total investment made
measure of
2010-11
2009-10
2008-09
PAT
18924
16767.56
16126.32
Equity share
4,277.76
2,138.89
2,138.89
7.83
7.53
Earning
Per 4.42
200708
16701
.65
2,138.
89
7.80
200607
1564
2.92
2,138
.89
7.31
Share
Table no:13
7.53
7.8
7.31
4.42
Earning
Per Share
2010-112009-102008-092007-082006-07
Chart no:13
INTERPRETATION: The earning per share is increases and decreases to year by year. If we
Formula: Sales
Net Assets
Sales:
Particular
s
Net Sales
Net Assets:
201011
66164.
34
200910
60251.
77
200809
64003.
99
200708
60065.
10
(Rs.c
r)
200607
56913
.44
(Rs.cr)
Particulars
Fixed Assets
Net Current
Assets
Net Assets
201011
18639.
55
24945.
84
43585.39
2009-10
2008-09
15648.5
0
25353.1
5
41001.65
10414.3
8
25692.6
2
36107
2007200608
07
10518.
8839.
01
12
24854.
2418
08
3.59
35372.09 33022.71
Assets Turnover
Ratio:
(Rs.cr)
Particular
Sales
N.A.
Assets Turnover
201011
66164.
34
43585.
39
1.52
2009-10
2008-09
60251.77
64003.99
41001.65
36107
1.47
1.77
200708
60065.
10
35372.
09
1.70
200607
56913
.44
33022
.71
1.72
Ratio
Table no:14
1.77
1.52
1.7
1.72
1.47
1.5
1
Assets
Turnover Ratio
0.5
0
2010-112009-102008-092007-082006-07
Chart no:14
INTERPRETATION: Here, we have taken as assets turnover as base. The total assets
Particular
s
Sales
(Rs.cr
)
201011
66164.
34
200910
60251.
77
200809
64003.
99
200708
60065.
10
200607
56913
.44
(Rs.cr)
Particulars
2010-11
2009-10
Fixed Assets
18639.5
5
95105.3
4
113744.89
15648.5
10414.38
0
89690.1
83204.71
4
105338.64 93619.09
Current
Assets
Total
2008-09
200708
10518.
01
69165.
19
79683.2
200607
8839.
12
83784
.78
92623.9
Particulars
2010-11
2009-10
Sales
66164.3
4
113744.
89
Total
60251.7
64003.9
7
9
105338.
93619.0
64
9
Assets Turnover Ratio
T.A.
2008-09
200708
60065.
10
79683.
2
(Rs.cr)
200607
56913
.44
92623.
9
0.582
0.684
0.614
0.572
0.754
Table no:15
0.684
0.582
0.754
0.614
0.572
Total Assets
Turnover Ratio
2010-11
2009-10
2008-09
2007-08
2006-07
Chart no:15
INTERPRETATION: Here, we have taken as total assets as base. The total assets turnover is
2010-11
2009-10
2008-09
66164.3
4
60251.7
7
64003.9
9
200708
60065.
10
200607
5691
3.44
Net Fixed
Assets:
(Rs.c
r)
Particulars
Fixed Assets
201011
18639.
55
200910
15648.
50
200809
10414.
38
200708
1051
8.01
200607
8839
.12
2010-11
2009-10
2008-09
Sales
66164.34
60251.77
64003.99
N.F.A.
18639.55
15648.50
10414.38
3.55
3.85
6.15
Fixed
Assets
Turnover Ratio
200708
60065.
10
10518.
01
5.71
2006
-07
56913
.44
8839.
12
6.44
Tab
le
no:16
7
6
5
4
3
2
1
0
3.55
5.71
6.44
3.85
Fixed Assets
Turnover Ratio
2010-112009-102008-092007-082006-07
Chart no:16
INTERPRETATION: This ratio shows an efficiently and profitability of the business . The
Sales
Current Assets
(Rs.cr)
Particulars
2010-11
2009-10
2008-09
Sales
66164.3
4
95105.3
4
0.69
60251.7
7
89690.1
4
0.67
64003.9
9
83204.7
1
0.77
C.A.
Current
Assets
Turnover
Table no:17
200708
60065.
10
69165.
19
0.87
200607
56913
.44
83784
.78
0.68
1
0.8
0.69
0.77
0.68
0.67
0.6
0.4
Current
Assets Turnover
0.2
0
2010-11
2009-10
2008-09
2007-08
2006-07
Chart no:17
INTERPRETATION:
From the above graph, we can say that in the year 2006-07 the ratio is
NET SALES:
(Rs.cr)
Particular
s
Sales
201011
66164.
34
200910
60251.7
7
200809
64003.
99
200708
60065
.10
200607
5691
3.44
WORKING CAPITAL:
(Rs.cr)
Particulars
2010-11
2009-10
2008-09
Total
Curr
ent
95105.3
4
89690.1
4
83204.7
1
Curr
ent
70159.50
64336.99
25353.15
Asset
s
Total
Liabili
ties
Working Capital 24945.84
200708
69165
.19
200607
83784.
78
57512.09
44311.1
1
59601.
19
25692.62
24854.08 24183.59
(Rs.cr
)
Particulars
2010-11
2009-10
2008-09
Sales
66164.3
4
24945.8
4
2.65
60251.7
7
25353.1
5
2.38
64003.9
9
25692.6
2
2.49
Working
Capital
Working
200708
60065.
10
24854.
08
2.42
200607
56913
.44
24183.
59
2.35
Capital
Turnover
Table no:18
Ratio
2.6
2.5
2.42
2.38
2.4
2.35
Working
Capital Turnover Ratio
2.3
2.2
2010-11
2009-10
2008-09
2007-08
2006-07
Chart no:18
INTERPRETATION: A high or increasing Working Capital Turnover is usually a positive
sign, showing the company is better able to generate sales from its
Working Capital. Either the company has been able to gain more Net
Sales with the same or smaller amount of Working Capital, or it has
been able to reduce its Working Capital while being able to maintain its
sales. In the above graph the ratio increase year by year, In year 2011
Ratio is 2.65.and in year 2010 it decrease in 2.38.The Reason Behind
of increase in working capital.
Ye
ar
20
12
CONCLUSION
89
Conclusion
It was a great experience to undertake industrial visit at ONGC MEHSANA
ASSET because I learned lot new things regarding my studies. I also got useful
insights regarding financial analysis of this organization and about their
proceedings and also its general background. I also got useful information
about how the theory part pf business management is actually practiced. This
kind
of
industrial
visit
90
Year
2012
BIBLIOGRAPHY
91
Biblography
1
2 Websites:www.ongcindia.com
www.google.com
www.kotaksecurities.com
www.moneycontrol.com
3) Book:rd
92
5
0