PROJECT REPORTAT

INDIAN OIL CORPORATION LIMITED

SUBMITTED BY: ______________________

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INDEX

ChapterContentsPage No.

1.1. Acknowledgement Acknowledgement 1 1

2.2. Introduction to the Project Introduction to the Project

3.3. VISION, MISSION AND VALUES VISION, MISSION AND VALUES

4.4. Objectives Objectives

5.5. Swot AnalysisSwot Analysis

6.6. ProductsProducts

7.7. Operating CycleOperating Cycle

8.8. Conclusion Conclusion

9.9. BibliographyBibliography

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ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported me during the writing of this project.

My deepest thanks to Mr. S.D. Sir, the Guide of the project, for guiding and correcting various documents of mine with attention and care. He has taken pain to go through the project and make necessary correction as and when needed. I also express my thanks to the honourable Principal for extending her support.

I would also thank my Institution and my faculty members without whom this project would have been a distant reality. I also extend my heartfelt thanks to my family, friends especially Rahul Agarwal and well wisher.

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INTRODUCTION

In order to ensure greater efficiency and smooth working in the petroleum sector, Government of India decided to merge the refineries and the distribution activities. The Indian Refineries and Indian Oil Company were combined to form the giant Indian Oil Corporation (IOCL) on 1st September 1964, with its registered office at Bombay. In 1967, the pipeline division of the corporation was merged with the refineries division. Research & Development of Indian Oil Came into Existence in 1972. In October 1981 Assam Oil Company was nationalized and has been amalgamated with IOCL as Assam Oil Division (AOD).

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50 Golden Years in the Service of the Nation:

India’s flagship national oil company and downstream petroleum major, Indian Oil

Corporation Ltd. (Indian Oil) is celebrating its Golden Jubilee during 30th June - 1st

September 2009. Established as an oil marketing entity on 30th June 1959, Indian Oil

Company Ltd. was renamed Indian Oil Corporation Ltd. on 1st September 1964

following the merger of Indian Refineries Ltd. (established in August 1958) with it? The

integrated refining & marketing entity has since grown into the country’s largest

commercial enterprise and India’s No.1 Company in the prestigious Fortune ¶Global 500·

listing of the world’s largest corporate, currently at the 116th position. It is also the 18th

largest petroleum company in the world

Indian Oil Today:

From a fledgling company with a net worth of just Rs. 45.18 crore and sales of 1.38

million tons valued at Rs. 78 crore in the year 1965, Indian Oil has since grown over

3000 times with a sales turnover of Rs. 285,337 crore, the highest²ever for an Indian

company, and a net profit of Rs. 2,950 crore for 2008-09. And in 2010-11 sales

turnover,328,744crore and net profit is 7445 crore($ 1,633 million) for the year 2010-11.

Set up with the mandate of achieving self-sufficiency in refining and marketing

operations for a nascent nation set on the path of economic growth and prosperity, Indian

Oil today accounts for nearly half of India’s petroleum consumption, reaching precious

petroleum products to millions of people every day through a countrywide network of

around 35,000 sales points. They are backed for supplies by 167 bulk storage terminals

and depots, 101 aviation fuel stations and 89 Indane LPG bottling plants. For the year

2008-09, Indian Oil sold 62.6 million tons of petroleum products, including 1.7 million

tons of natural gas.

The Indian Oil Group of companies owns and operates 10 of India’s 20 refineries with a

combined capacity of over 60 MMTPA, accounting for 34% of national refining capacity,

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after excluding EOU refineries. Projects under execution will take the capacity further to

80 MMTPA by the year 2011-12. Besides setting up state-of-the-art facilities to raise

product quality to global standards, Indian Oil has undertaken chartering of ships for

crude oil imports on its own and is expanding its basket of crudes and upgrading its

refineries to handle a wider array of crudes, including high- sulphur types.

As a pioneer in lying of cross-country crude oil and product pipelines, the Corporation

crossed 10,000 km in pipeline length and about 70 MMTPA in throughput capacity with

the commissioning of the 330-km Para dip-Haldia crude oil pipeline recently. Plans are

under execution to add about 4,000 km more by the year 2012. In-house capabilities have

enabled the Corporationundertake all pipeline projects on its own and even offer turnkey

expertise in techno-economic feasibility studies, design and detailed engineering, project

execution, operations, maintenance and consultancy services.

Synergy through Subsidiaries and Joint Ventures:

Indian Oil Corporation believes in creating synergies through acquiring subsidiaries both horizontally and vertically. It has also entered in a number of Joint Ventures, which have turned to be highly profitable.

A wholly-owned subsidiary, Indian Oil Technologies Ltd., is commercializing the innovations and technologies developed by Indian Oil’s R&D Centre, across the globe.The merger of the wholly owned subsidiary, Indian Oil Blending Ltd., is complete. Merger of IBP Co. Ltd., the marketing subsidiary, with the parent company have completed recently.

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Indian Oil is currently metamorphosing from a pure sectoral company with dominance in downstream in India to a vertically integrated, transnational energy behemoth. The Corporation is implementing a master plan to emerge as a major player in petrochemicals by integrating its core refining business with petrochemical activities, besides making large investments in E&P and import/marketing ventures for oil and gas in India and abroad. With a view to this Indian Oil is strengthening its existing overseas marketing ventures and simultaneously scouting new opportunities for marketing and export of petroleum products to new energy markets in Asia and Africa.

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VISION, MISSION AND VALUES:-

Vision A major diversified, trans-national, integrated energy company, with national leadership and a strong Environment conscience, playing a national role in oil security & public distribution.

INDIAN OIL CORPORATION LIMITED PURSUES THE VISION OF BECOMING A ‘MAJOR,

DIVERSIFIED, TRANSNATIONAL, INTEGRATED ENERGY COMPANY, WITH NATIONAL

LEADERSHIP AND A STRONG ENVIRONMENT CONSCIENCE, PLAYING A NATIONAL ROLE

IN OIL SECURITY AND PUBLIC DISTRIBUTION.

Mission of Indian Oil Corporation Limited:

To achieve international standards of excellence in all aspects of energy and

diversified business with focus on customer delight through value of products and

services and cost reduction.

To maximize creation of wealth, value and satisfaction for the shareholders.

To attain leadership in developing, adopting and assimilating state of the art

technology for competitive advantage.

To provide technology and services through sustained research and development.

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To cultivate high standards of business ethics and total quality management for a

strong corporate identity and brand equity.

To help enrich the quality of life of the community and preserve ecology and

heritage through a strong environment conscience.

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Objectives of Indian Oil Corporation Ltd:

To serve the national interest in the oil and related sector in accordance andTo serve the national interest in the oil and related sector in accordance and

consistent with government policies.consistent with government policies.

To earn a reasonable rate of interest on investment.To earn a reasonable rate of interest on investment.

To work towards the achievement of self–sufficiency in the field of oil refining byTo work towards the achievement of self–sufficiency in the field of oil refining by

setting up adequate capacity and to build up expertise in laying of crude oil andsetting up adequate capacity and to build up expertise in laying of crude oil and

petroleum product pipelines.petroleum product pipelines.

To create a strong research and development base in the field of oil refining andTo create a strong research and development base in the field of oil refining and

stimulate the development of new product formulations with a view to minimize/stimulate the development of new product formulations with a view to minimize/

eliminate their imports and to have next generation products.eliminate their imports and to have next generation products.

To maximize utilization of existing facilities in order to improve efficiency andTo maximize utilization of existing facilities in order to improve efficiency and

increase productivity. increase productivity.

To optimize utilization of its refining capacity and to maximize distillate yieldTo optimize utilization of its refining capacity and to maximize distillate yield

from refining of crude oil to minimize foreign exchange outgo.from refining of crude oil to minimize foreign exchange outgo.

To minimize fuel consumption in refineries and stock losses in operations to affectTo minimize fuel consumption in refineries and stock losses in operations to affect

energy conservation.energy conservation.

To further enhance distribution network for providing assured service to customers

throughout the country through expansion of reseller network as per marketing

plan/ government approval.

To avail of all viable opportunities, both national and global, arising out of

liberalization policies being pursued by the Government of India.

Financial Objective:

To ensure adequate return on capital employed and maintain a reasonable annual

dividend on its equity capital.

To ensure maximum economy in expenditure.

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To manage and operate the facilities in an efficient manner so as to generate

adequate internal resources to meet revenue cost and requirements for project

investment, without budgetary support.

To generate sufficient internal resources for partly/ wholly expenditure on new

projects.

To develop long term corporate plans to provide adequate growth of the

activities of the corporations.

To continue to make an effort in bringing a reduction in cost of production of

petroleum product manufactured by means of systematic cost control measures.

To endeavor to complete all planned projects within the stipulated time and

within the stipulated cost estimates.

Achievements of Indian Oil:

Indian Oil Corporation has completed 50 years in the business of Refining and Marketing of Petroleum Products in India in 2009.

Indian Oil Corporation Ltd. is the largest commercial enterprise in India and the only Indian name in the Fortune magazine‘s Global 500 listing of the world’s largest corporations with a ranking of 105 based on fiscal 2008 performance.

Indian Oil received coveted World Petroleum Congress Excellence Award 2008 at Madrid, Spain, in the technical development category for its path breaking R&D work in hydro-processing technology for Green Fuels.

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SWOT Analysis:

Indian Oil Corporation is the No. 1 Oil Company in India by sales turnover and is also

the 21st largest petroleum company in the world. It was the only Indian company to be

listed in the fortune 500 in 2003 and was also ranked second among 15 national oil

companies in the Asia pacific region. It was ranked 325 in the prestigious Forbes Global

500 listing among the largest public companies. Indian Oil and its subsidiaries account

for 47% petroleum products market share among public sector oil companies, 43.5%

national refining capacity and 74% petroleum products pipeline capacity. IOC has made

several strategic initiatives to expand its international operations and therefore become a

transnational company. For instance, IOC entered the Srilanka oil market by forming a

wholly owned subsidiary Lanka Indian Oil Corporation following a MoU signed with the

Ceylon Petroleum Corporation (CPC) in June 2002. Currently the Srilanka Petroleum

market demand is 3.5 million metric tons per annum (MMTPA) while the refining

capacity available is only 2.2 MMTPA. LIOC plans to fill up the 1.5 millions tones of

supply shortage. Such move will strengthen its presence in the international market and

contribute to IOC’s profit.

Strengths:

Premier integrated Oil Company in India. Indian Oil Corporation is the No. 1 oil

company in India by sales turnover and is also the 175h largest petroleum company in the

world. It was the only Indian company to be listed in the fortune 500 in 2003 and has also

been ranked second among 15 national oil companies in the Asia Pacific region. It was

ranked 325 in the prestigious Forbes.

Threats:

Deregulation of Indian Petroleum sector in India during 2002 abolished monopoly status

of IOC. The company now faces stiff competition from several players striving to gain

market share. There exist a close competition between Oil and Natural Gas Corp.

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(ONGC) and IOC in Indian Oil market. Reliance Industries limited (RIL) has also

emerged as an important player competing in the upstream sector subsequent to the

deregulation of the petroleum sector. From April 2004 onwards, the oil retailing – market

for transport fuel will be deregulated and various companies such as RIL, ESSAR Oil and

Royal Dutch/Shell have been allowed to operate private petrol station.

Hence the deregulation policy is bound to squeeze IOC’s volumes and profit margins in

future.

Weakness:

Declining crude oil sales.Although the revenue from the crude oil sales accounts for a

meager share of total revenue, revenues from this division dropped sharply by 66.7% in

fiscal 2003 as against the previous fiscal. The crude oil operations contributed about

INR49.44 billion in fiscal 2003 as against INR148.68 billion in fiscal 2002. Consequently

operating profit fell by a large 88% to reach INR19.4 million in 2003. If not for the good

performance of petroleum products the company’s profitability would have been severely

affected by the drastic decline in crude oil sales.

Opportunity

Foray into the Gas business. With emerging as an alternative fuel due to the twin benefits

of low pollution and better economics, IOC has plans to quickly establish itself

In the gas market also. The LNG and hydrogen business offers an attractive environment

for its future business. Gas is steadily growing into the most preferred fuel among utility

provider such as power, fertilizers and transportation. IOC plans to setup a nationwide

gas distribution network for serving major Indian cities, to market compressed natural gas

(CNG) for automobiles and to import LNG. IOC signed a MoU with National Iranian Oil

Company (NIOC) for importing 2.5 MMTPA LNG and also for taking part in the LNG

midstream project in Iran. The initial efforts turned successful with IOC already

becoming the lead supplier of degasified LNG to ESSAR Steel and Gujarat State

petroleum Corp.

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PRODUCTS

The Retail Brand template of XtraCare (Urban), Swagat(Highway) and KisanSeva

Kendra’s(Rural) are widely recognized as pioneering brands in the petroleum retail

segment. Indian Oil’s leadership extends to its energy brands - Indane LPG, SERVO

Lubricants, Auto gas LPG, XtraPremium Branded Petrol, XtraMile Branded Diesel,

XtraPower Fleet Card, Indian Oil Aviation and XtraRewards cash customer loyalty

programme.

SOME SPECIFIC PRODUCTS AND THEIR SPECIFICATION ARE AS FOLLOWS :

1. INDANE GAS :

Indane is today one of the largest packed-LPG brands in the world and has been

conferred the coveted ‘Consumer Super brand’ status by the Super brands Council of

India. Having launched LPG marketing in the mid-60s, Indian Oil has been credited with

bringing about a ‘kitchen revolution, spreading warmth and cheer in millions of

households with the introduction of the clean and efficient cooking fuel. It has led to a

substantial improvement in the health of women, especially in rural areas by replacing

smoky and unhealthy chulha. Indaneis today an ideal fuel for modern kitchens,

synonymous with safety, reliability and convenience.

2. AUTOGAS :

AutoGas (LPG) is a clean, high octane, abundant and eco-friendly

fuel. It is obtained from natural gas through fractionation and from

crude oil through refining. It is a mixture of petroleum gases like

propane and butane. The higher energy content in this fuel results in a 10% reduction of

CO2 emission as compared to MS. Auto Gas is a gas at atmospheric pressure and normal

temperatures, but it can be liquefied when moderate pressure is applied or when the

temperature is sufficiently reduced. This property makes the fuel an ideal energy source

for a wide range of applications.

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3. PETROL/ GASOLINE :

Automotive gasoline and gasoline-oxygenate blends are used in internal combustion

spark-ignition engines. These spark ignition engine fuels are primarily used for passenger

cars. They are also used in off-highway utility vans, farm machinery and in other spark

ignition engines employed in a variety of service applications.

Gasoline is a complex mixture of relatively volatile hydrocarbons that vary widely

in chemical & physical properties and are derived from fractional distillation of crude

petroleum with a further treatment mainly in terms of improvement of its octane rating.

The hundreds of individual hydrocarbons in gasoline range from c4 to c11.

4. XTRAPREMIUM :

Indian Oil’s XTRAPREMIUM is India’s leading branded

petrol boosted with new-generation multifunctional

additives known as friction busters that prevent deposition

in the combustion chamber. XTRAPREMIUM is custom-designed to deliver higher

mileage, more power, better pick-up, faster acceleration, enhanced engine cleanliness and

lower missions.

5 XTRAMILE:

Indian Oil’s XTRAMILE Super Diesel, the leader in the

branded diesel segment, is blended with world class multi-

functional fuel additives. Commercial vehicle owners choose

XTRAMILE because they see a clear value benefit in terms of superior mileage, lower

maintenance costs and improved engine protection. A growing section of customers who

own diesel automobiles, both in the ‘lifestyle’ and ‘passenger’ category, prefer

XTRAMILE as a fuel for its added and enhanced performance. XTRAMILE has brought

in a huge savings in the high mileage commercial vehicles segment. Transport fleets that

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operate a large number of trucks crisscrossing the country are using XTRAMILE to

benefit from higher mileage and reduced maintenance costs.

6. ATF/Jet Fuel :

Indian Oil Aviation Service is a leading aviation fuel solution

provider in India and the most-preferred supplier of jet fuel to

major international and domestic airlines. Between one sunrise

and the next, Indian Oil Aviation Service refuels over 1500 flights

– from the bustling metros to the remote airports linking the vast Indian landscape, from

the icy heights of Leh (the highest airport in the world at 10,682 ft) to the distant islands

of Andaman & Nicobar.

Jet fuel is a colorless, combustible, straight-run petroleum distillate liquid. Its

principal uses are as jet engine fuel. The most common jet fuel worldwide is a kerosene-

based fuel classified as JET A-1.The governing specifications in India are IS 1571:

2001(7thRev).

7. KEROSENE :

Kerosene is used as a domestic fuel for heating / lighting and also

for manufacture of insecticides/ herbicides/fungicides to control

pest, weeds and fungi. Since kerosene is less volatile than gasoline,

increase in its evaporation rate in domestic burners is achieved by

increasing surface area of the oil to be burned and by increasing its temperature. The two

types of burners which achieve this fall into two categories namely vaporizers &

atomizers.

8. NATURAL GAS:

Over the years, Natural Gas has emerged as the 'fuel of choice' across the world. It is

slowly but steadily replacing traditional fossil fuels due to its environmentally friendly

characteristics which help greatly in meeting the stipulated automobile emission norms.

When compared with coal and oil, natural gas has a low carbon footprint due to its clean

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combustion features. In the year 2008, it constituted only around 9% of India's energy

basket compared with 24% globally. This is expected to rise to around 13% in the year

2010. India's hydrocarbon vision statement envisages the share of natural gas in the

country’s energy basket to be 20% by the year 2025.

9. SERVO LUBRICANTS AND GREASE :

Indian Oil's SERVO is the brand leader among lubricants and greases

in India and has been conferred the “Consumer Super brand” status by

the Super brands Council of India. With over 500 commercial grades

and 1,500 formulations encompassing literally every conceivable application, SERVO

serves as a one-stop shop for complete lubrication solutions in the automotive, industrial

and marine segments. Recognized for cutting-edge technology and high-quality products,

SERVO is backed by Indian Oil's world-class R&D and an extensive blending and

distribution network.

10. BITUMEN:

Bitumen is a common binder used in road construction. It is principally obtained as a

residual product in petroleum refineries after higher fractions like gas, petrol, kerosene

and diesel, etc., are removed. Indian Standard Institution defines Bitumen as a black or

dark brown non-crystalline soil or viscous material having adhesive properties derived

from petroleum crude either by natural or by refinery processes.

Indian Oil produces bitumen from its refineries at Panipat, Mathura, Koyali, Haldia and

Chennai and markets it in bulk as well as packed in steel drums. Indian Oil also markets

modified Bitumen CRMB and Emulsion. CRMB is produced at Panipat, Mathura,

Koyali, Haldia and CPCL refineries. Indian Oil markets Bitumen Emulsion by the brand

name Indemul and it is produced from emulsion plants located in Haldia and Panipat

refineries. CRMB and Emulsion are available both in bulk as well as in packed drums.

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11. DIESEL/GAS OIL:

Petroleum derived diesel (called as petro diesel) is a mixture of straight run product (150

°C and 350 °C) with varying amount of selected cracked distillates and is composed of

saturated hydrocarbons (primarily paraffin’s including n , iso , and cycloparaffins), and

aromatic hydrocarbons (including naphthalene’s and alkyl benzenes).

Diesel is used in diesel engines, a type of internal combustion engine. Rudolf Diesel

originally designed the diesel engine to use coal dust as a fuel, but oil proved more

effective. Diesel engines are used in cars, motorcycles, boats and locomotives.

Automotive diesel fuel serves to power trains, buses, trucks, and automobiles, to run

construction, petroleum drilling and other off-road equipment and to be the prime mover

in a wide range of power generation & pumping applications. The diesel engine is high

compression, self-ignition engine. Fuel is ignited by the heat of high compression and no

spark plug is used.

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OPERATING CYCLE OF IOCL

Operating Cycle:-The firm has to invest in a fund in current assets for generating sales. Current assets are needed because sales do not convert into cash instantaneously. There is allows an operating cycle involve in the conversion of sale into cash. There is a difference between current and fixed assets in terms of their liquidity.

The firm’s Gross operating cycle (GOC) can be determined as inventory conversion period (ICP) plus debtor’s conversion period (DCP).

GOC=ICP+DCP

The diagram above shows in a simplified form the chain of

events in a manufacturing firm.

1)1) The chain starts with the firm buying raw materials on credit.The chain starts with the firm buying raw materials on credit.

2)2) In due course this stock will be used in production, work will be carriedIn due course this stock will be used in production, work will be carried out on the stock, and it will become part of the firm’s work-in-progress.out on the stock, and it will become part of the firm’s work-in-progress.

3)3) Work will continue on the WIP until it eventually emerges as theWork will continue on the WIP until it eventually emerges as the finishedproduct. finishedproduct.

4)4) As production progresses, labor costs and overheads need have to be met. As production progresses, labor costs and overheads need have to be met.

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Purchase Payment Credit Sale Collection

RMCP+WIPCP+FGCP

Inventory conversion Period Receivable conversion Period

Gross Operating Cycle

Payable Net Operating Cycle

5)5) Of course at some stage trade creditors will need to be paid. Of course at some stage trade creditors will need to be paid.

6)6) When the finished goods are sold on credit, debtors are increased. When the finished goods are sold on credit, debtors are increased.

7)7) They will eventually pay, so that cash will be injected into the firmThey will eventually pay, so that cash will be injected into the firm

Inventory conversion period: ICP is the sum of raw material conversion period (RMCP), work-in-process conversion period (WIPCP) and finished goods conversion period (FGCP)

Raw material conversion period (RMCP): RMCP is the average time taken to convert the raw material into work-in-progress. RMCP depends on: a) Raw material conversion per dayb) Raw material inventory.

Raw material Raw material inventoryconversion period = [Raw material consumption]/360

Work-in-process conversion period (WIPCP): WIPCP is the average time taken to complete the semi finished or work-in-progress.

Work-in-process Work-in-process inventoryConversion period = [cost of production]/360

Finished goods conversion period(FGCP): FGCP is the average time taken to sell the finish goods.

Finished goods = Finished goods inventoryConversion period [cost of goods sold]/360

Debtor’s conversion period (DCP): DCP is the average time taken to convert debtors into cash.DCP represents the average collection period.

Debtors = Debtors Conversion period Credit sales/360

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Creditors (payables) deferral period (CDP): CDP is the average time taken by the firm in paying its suppliers (creditors).

Credit deferral = CreditorsPeriod Credit purchases/360

Cash Conversion or Net operation cycle (NOC): NOC is the difference between gross operation cycle and payables deferral period

NOC=GOC CDPMarch-11 March-10 March-09 March-10

GROSS OPERATING CYCLE

1.Inventory Conversion Period

i)i) Finished GoodsFinished Goodsii)ii) Work-in-progressWork-in-progressiii)iii) Raw MaterialRaw Material

2.Debtors Conversion Period

3.Gross Operating Cycle(1+2)

4.Payment Deferral Period

42.12

7.3846.8596.35

8.71

105.06

31.88

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5.7436.1082.84

8.48

91.32

28.88

30.61

4.2629.4364.3

8.74

73.04

26.25

41.13

5.8041.2388.16

10.87

99.03

30.77

NET OERATING CYCLE (3-4) 73.18 62.44 46.84 68.26

Year 2011 Year 2010 Year 2009 Year 2008

01020304050607080

Net Operating Cycle

Net Operat-ing Cycle

The Operating cycle definition, also known as cash operating cycle or cash conversion cycle or asset conversion cycle, establishes how many days it takes for a company to turn purchases of inventory into cash receipts from its eventual sale.

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This means that on average it takes 73.18 days for a company to turn purchasing inventories into cash sales. In regards to accounting, operating cycles are essential to maintaining levels of cash necessary to survive. Maintaining a beneficial net operating cycle ratio is a life or death matter.

The operating cycle concept indicates a company’s true liquidity. By tracking the historical record of the operating cycle of a company and comparing it to its peer groups in the same industry, it gives investors investment quality of a company. A short company operating cycle is preferable since a company realizes its profits quickly and allows a company to quickly acquire cash that can be used for reinvestment. A long business operating cycle means it takes longer time for a company to turn purchases into cash through sales. In general, the shorter the cycle, the better a company is since less time capital is tied up in the business process.

A short cash cycle reflects sound management of working capital. On the other hand, a long cash cycle denotes that capital is occupied when the commercial entity is expecting its clients to make payments.

There is always a probability that a commercial enterprise can face negative cash conversion cycle, in which case they are getting payments from the clients before any payment is made to the suppliers. The more the manufacturing procedure is extended, the higher the amount of cash should be kept engaged in inventories by the company. Likewise, the more time is taken for the clients for the purpose of bill payment, the more is the accounts receivable amount. From another viewpoint, if a company is able to detain the payment for its internal inputs, it can decrease the amount of money required. Put differently, the net working capital is diminished by accounts payable. Thus, Operating cycle and cash cycle determine the efficiency of a firm regarding working capital management.

CONCLUSION The short term solvency of IOC is fine but that of BPCL is quite low. But noThe short term solvency of IOC is fine but that of BPCL is quite low. But no

company is touching the general standard of 2:1 of current ratio.company is touching the general standard of 2:1 of current ratio.

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The quick ratio of firms are not good enough far away from the normal standard of 1:1.

So all the Liquidity Ratios indicate not well enough short term solvency/liquidity position of the firm.

All the Leverage Ratio depict that none of the company has a sound All the Leverage Ratio depict that none of the company has a sound Financial position.Financial position.These are more in debt. But IOC position is better than that of the two in of leverage.The shareholders funds are satisfactory.The firms are paying high interest on the outstanding debts which makes unfavorable trading on equity due to high debt, which increases risk for shareholders.

As far as the Activity and Turnover ratios are concerned, nothing concrete can beAs far as the Activity and Turnover ratios are concerned, nothing concrete can be said as the results of three companies are very fluctuating every yearsaid as the results of three companies are very fluctuating every year   in term ofin term of sales.sales.In the year 2008 all three companies are showing good results and the turnover is satisfactory. But it decrease in 2009 due to decrease in working capital, the fixed assets of the companies which affected their sales. And IOC is very strong in acquisition of the fixed assets as well as current assets.

On the basis of various profitability ratios the sales of the firms is found to beOn the basis of various profitability ratios the sales of the firms is found to be increasing in the last year. IOCL has managed well to maintain its net profit.increasing in the last year. IOCL has managed well to maintain its net profit.The share value of HPCL is better.

This analysis shows that the companies were in strong position in year 2008, but This analysis shows that the companies were in strong position in year 2008, but the recession in 2009 has highly affected the companies’ growth and theirthe recession in 2009 has highly affected the companies’ growth and their  profit profit came down and they are more in debtscame down and they are more in debts..

BIBLIOGRAPHY

The Major documents required for this project was obtained from the following sources.

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1. Annual reports of IOCL

2. www.researchassistance.com

3. www.iocl.com

4.4. www.indiainbusiness.nic.inwww.indiainbusiness.nic.in

5. www.corporateinformation.comwww.corporateinformation.com

6.6. www.business-standard.comwww.business-standard.com

7.7. www.ccsenet.org/journal.htmlwww.ccsenet.org/journal.html

8.8. Journals of IOCLJournals of IOCL

9.9. www.investopedia.comwww.investopedia.com

10. www.wikipedia.org.in

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