Indian Oil Corporation, Ltd. Analytical Essay by Peter Pen

Indian Oil Corporation, Ltd.
This paper is an analytical review of the financial results for the year ending March 31, 2005 and its financial position, as of that date, for the Indian Oil Corporation, Ltd. (IOC) in India.
# 65029 | 3,570 words | 7 sources | MLA | 2006

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This paper explains that Indian Oil Corporation Ltd (IOC) is the flag-ship national oil company of India, which sells cooking gas, petrol and diesel through retail stations and aviation fuel, and includes a subsidiary, IBP Co. Ltd., as a stand-alone marketing company with a nationwide network. The author points out problems with the investment ratios; earnings per share (EPS) and dividend per share (DPS) have dropped during 2004 and 2005 because of the reduction in profits during these years. The paper concludes that some of the risk factors, which will significantly influence IOC's ability to sustain its strong profitability and financial position in the future, are its huge borrowings from various banks and fluctuating fuel prices; however, the author recommends investment in the company because it has the potential to grow and the present financial downstream is mainly due to some situations, which are now under recoveries, and other specific bank borrowings. Many charts. Illustrations. Attractive presentation.

Table of Contents
Aim and Objective
Review Highlights
Company Profile
Financial Overview
Financial Performance
Key Financial Indicators (Ratio Analysis)
Current Ratio and Quick Ratio
Interest Coverage Ratio
Receivable Collection Period
Payable Period
Stock Turnover Period
Operating Cycle
Rate of Return Ratios
Return on Total Assets (ROTA)
Return on Capital Employed (ROCE)
Return on Fixed Assets (ROFA)
Return on Working Capital (ROWC
Investment ratios
Earnings per Share (EPS) and Dividend per Share (DPS)
Dividend Yield
Dividend Payout Percentage
Price / Earnings Ratio (P/E Ratio)
Cash Flow Analysis
Critical Review of Key Accounting Policies
Foreign Currency and Derivative Transactions
Fixed Assets and Depreciation
Provision on Capital Account
Goodwill Amortization
Review of Financial Reporting Standards
Information Accompanying Financial Statements
Operating Performance Review
Proactively Addressing Environmental Issues
Corporate Governance
Inter-Industry Comparison
Rate of Return
Efficiency Ratios
Investment Ratios
Market Perception and Future Outlook
Outlook for IOC

From the Paper:

"IOC's consolidated audited financials as at 31.03.2005 was audited by a group of certified auditors from the Institute of Chartered Accountants, India, which is in accordance with Accounting Standard (AS-21) and the financial statements of joint ventures have been combined by applying proportionate consolidation method in accordance with Accounting Standard (AS-27) on "Financial Reporting of Interests in Joint Ventures" issued by the Institute of Chartered Accountants of India."

Cite this Analytical Essay:

APA Format

Indian Oil Corporation, Ltd. (2006, April 22) Retrieved July 17, 2019, from

MLA Format

"Indian Oil Corporation, Ltd." 22 April 2006. Web. 17 July. 2019. <>