Finance Project on Liquidity and Profitability of Oil and Gas Industry 2017
Project Report on Liquidity and Profitability of Oil and Gas Industry
This Project Report is on Liquidity and Profitability of Oil and Gas Industry with all data approximately Private Oil and Gas Industries in India, Hindustan Petroleum Corporation Ltd. HPCL, Oil and Natural Gas Corporation Ltd. ONGC, Indian oil Corporation and RIL – Reliance Industries Limited
Contents
Significance of the Study
Conceptualization
Industry profile
Company profile
Introduction of the topic
Focus of the Problem
Objectives of the observe
Suggestions
Significance of the Study
It will assist to students to get a summary of span understanding of these companies.
Helpful for top management to recognize the tendencies of competitors.
Helpful for further study of profitability and liquidity of different businesses.
Helpful for comparative analysis of diverse companies.
Conceptualization
Oil and Gas Industry Overview : Oil and Gas Industry in India is a 500 billion USD enterprise. The India oil & gas call for ranks it 6th inside the global. Nearly 70% of the petroleum oil requirements of India are met by means of the imports. This is a matter of issue for the Indian Government as it would cause oil disaster in India. To tackle this, huge-scale oil and gasoline exploration and drilling is being undertaken
Industry profile
Public Sector Undertakings (PSU’s):
ONGC – Oil & Natural Gas Corp (exploration and manufacturing)
OIL – Oil India Limited (exploration & manufacturing)
IOC – Indian Oil Corporation (refining & advertising)
BPCL – Bharat Petroleum Corporation Ltd (refining and marketing)
HPCL – Hindustan Petroleum (refining & advertising)
GSPC – Gujarat State Petroleum Corp
Private Oil & Gas organizations in India
RIL – Reliance Industries Limited (Indian Oil & fuel enterprise)
ESSAR (Indian Oil & Gas enterprise)
Cairns Energy India
BG energy
Niko (upstream exploration & manufacturing)
Shell Oil
BP
Total (downstream exploration & manufacturing, chemical substances)
Company profile
Indian oil Corporation : Indian Oil Corporation Ltd. (Indian Oil) is India’s biggest commercial business enterprise, with a sales turnover of Rs. 5,forty seven,479 crore (US $ 150 billion) and earnings of Rs. 15,963 crore (US $ three.Seventy four billion) for the yr 2013-14. Indian Oil is likewise the very best ranked Indian business enterprise within the prestigious Fortune ‘Global 500’ list. It is also the 18th biggest petroleum business enterprise in the world.
Oil & Natural Gas Corporation Ltd. ONGC : ONGC is engaged in exploration and manufacturing activities in March 2007. It was the most important business enterprise in phrases of market cap in India. It (integrated on June 23, 1993) is an Indian public sector petroleum employer. Indian government holds seventy four.14% fairness stake in this enterprise. It contributes 77% of India’s crude oil manufacturing and 81% of India’s herbal fuel manufacturing. It is the highest profit making organisation in India.
Financials :
ONGC posted a net profit of Rs. 467.016 billion, the Highest via any Indian Company
Net worth Rs. 1500 billion
Contributed over Rs. Six hundred billion to the exchequer
Hindustan Petroleum Corporation Ltd. HPCL : HPCL is an Indian electricity corporation engaged in the refining of crude oil; advertising of oil merchandise; and oil and gas exploration and manufacturing. It is a huge Public Sector Undertaking (PSU) with a Navratna repute in India. It debts for about sixteen% of the marketplace proportion and 10.3% of India�s refining capability. HPCL operates two main refineries in India, one in Mumbai with 5.Five Million Metric Tons Per Annum (MMTPA) capability and the other in Vishakhapatnam with a ability of seven.Five MMTPA. These refineries produce a extensive sort of petroleum fuels and specialties.
Introduction of the topic – Liquidity and Profitability :
The ability to be converted without difficulty and with minimum loss into cash. Ultra-quick-dated treasury notes are an instance of a liquid investment. A liquid market is one in which there may be sufficient pastime to meet each buyers and dealers.
High liquidity produces flexibility for a company or an investor in a low-danger function, but it also has a tendency to decrease profitability.
Liquidity: we will calculate by means of this method
Current ratio
Quick ratio
Operating cash flow ratio
Liquidity Ratio :
Current ratio = current belongings/present day liability
Acid-check ratio (Quick ratio) = modern asset-(inventories + prepayment) / Current legal responsibility
Operation coins waft ratio = Operation coins drift/contemporary legal responsibility
Profitability :
The capacity of a business enterprise to earn a earnings. It is a relative measure of achievement for a commercial enterprise profit, in economics, return on capital, additionally called earnings, minus the prices of retaining land, exertions, and capital. It is also referred to as net earnings.
The main goal of every business issue is to earn earnings. A commercial enterprise need to be able to earn good enough income when it comes to the hazard and capital invested in it.
Profitability Ratios or Income Ratios :
Gross earnings ratio:- Gross earnings / Net Sales * a hundred
(Net income= Sales – Sales return)
Net income Ratio: – Net earnings / Net sales * 100
(Operating Net Profit= working net profit/ Net Sales *a hundred or working Net income= gross profit � running costs)
Operating Ratio :- Cost of goods offered + Operating prices / Net Sales * 100
(Cost of products offered = Net Sales � Gross profit, Operating costs = workplace & management prices + Selling & distribution fees + bargain + awful money owed + interest on brief loans)
Earning according to percentage (E.P.S.) :- Net Profit � dividend on preference share / No. Of equity shares
Dividend consistent with proportion (D.P.S.) :- Dividend paid to equity share Holders / No. Of fairness stocks *100
Dividend Payout ratio(D.P.) :- D.P.S. / E.P.S. *one hundred
Focus of the Problem
To recognize the Profitability trend in distinctive groups
To apprehend the provision of cash to pay debts.
To recognise the creditability of the corporations.
Objectives of the Project Report :
To look at the profitability and liquidity of the corporation.
To study the Profit trend of oil organisation.
To observe the performance of company concerning usage of sources.
To take a look at the credibility of the businesses.
Suggestions :
No window dressing should be covered in the liquidity and profitability analysis.
It need to be more structured and complete.
This ought to provide possibility to improve economic role and creditability.
There should be extraordinary time period for the dimension of the overall performance
Liquidity and profitability need to be based totally on correct data.
The groups have to adopt superior capital decision to get true go back on long term funding to growth their income.
Project Description :
Title : Liquidity and Profitability of Oil and Gas Industry – Project Report- 60 Pages