POM

PROJECT

KHUSHI SHAH
SAP ID- 74022120937

DIVISION E |
 COMPAMY 1-

INDIAN OIL
CORPORATION

1) INTRODUCTION:

Indian Oil Corporation (IOC), India’s flagship national oil company and downstream
petroleum major, owns and operates ten of India's 20 refineries with a combined refining
capacity of 60.2 million metric tonnes per annum. The corporation's cross–country network
of crude oil and product pipelines, spanning over 10,000 km and the largest in the country,
meets the vital energy needs of the consumers in an efficient, economical and
environment–friendly manner. The company operates the largest and the widest network of
petrol and diesel stations in the country, numbering over 18,278. Indian Oil's ISO–9002
certified Aviation Service commands over 63% market share in the aviation fuel business.
The corporation also enjoys a dominant share of the bulk consumer business, including that
of railways, state transport undertakings, and industrial, agricultural and marine sectors. 

2) REVENUE OF THE COMPANY IN THE

PAST FIVE YEARS:
 YEARLY RESULTS MAR '21 MAR '20 MAR '19 MAR '18 MAR '17  
OF INDIAN OIL
CORPORATION (in
Rs. Cr.) (CONSOLIDATED
DATA)

Net Sales/Income from 363,949.67 484,362.26 528,148.93 421,491.82 355,310.11

operations

SOURCE: moneycontrol.com

3) GROWTH:
IOC reported an 85 per cent jump in profit to Rs 11,391 crore in the first half of 2016/17,
despite the dip in revenue from Rs 2,11,043 crore to Rs 2,07,475 crore. This is after a Rs
10,399 crore profit in 2015/16, almost double from Rs 5,273 crore in 2014/15. This is the
biggest-ever jump in profits of the country's biggest company by revenues. IOC's main
competitors, BPCL and HPCL, reported 66 per cent and 41 per cent rise in net profits,
respectively, during the year.
The rise in profits could not have come at a better time for IOC. It is in the middle of
implementing some big projects. It is, for instance, anchoring the government scheme to
provide LPG connections to all below poverty line households. This will require big
investments in building infrastructure for importing and transporting LPG, including laying
the ambitious 1,987-km pipeline for transporting 3.75 MT LPG from Kandla port to cities in
Madhya Pradesh and Uttar Pradesh. The profits will also ensure that it has the resources to
upgrade refineries as part of a government plan to shift to the BS-VI fuel in a few years for
which the cost will come to around Rs 30,000 crore.

4) BALANCE SCORECARD:
 FINANCIAL PERSPECTIVE: Indian Oil Corporation
Limited from various financial aspects like profitability, liquidity and solvency,
activity and investment, it can be concluded that the profitability position of the
company can not be said satisfactory because the Gross Profit Ratio varies from
3.93% to 6.88 % with the average of 5.3%. The gross profit ratio of 5.3% needs to be
improved. The second ratio of profitability is net profit ratio which varies from 0.82%
to 5.14% with the average of 3.22%. The net profit ratio of 3.22% is not satisfactory
from any point of view so company should concentrate on minimization of the
expenses. The third measure of profitability taken in the study is return on investment
which varies from 12.03% to 24.18% with an average of 18.67%. The return of
18.67% on investment to the investors can be said good and it seems to be an average
return on any investment. The fourth and last measure of profitability is return on
equity varies from 6.70% to 21.51% with an average of 14.63% which can be said
satisfactory but company need to improve the quality of financial decision so that the
wealth of equity shareholder’ can be maximized.

 CUSTOMER PERSPECTIVE: Indian Oil's loyalty programmes

are designed exclusively to benefit the large number of its customers who have been
patronising the brand for over five decades. Indian Oil XTRAREWARDS is India's first
online rewards programme that seeks to inculcate the habit of redeeming points. It
is currently active in Mumbai, Delhi, Chennai, Ahmedabad, Bengaluru,
Bhubaneshwar, Coimbatore, Mysore, Pune and Secunderabad, with plans to reach
other cities soon. The loyalty programme rewards customers paying by cash, credit
and debit cards. Each transaction is confirmed online through a charge slip and
customers can earn points on fuel/lube purchases at participating Indian Oil retail
outlets. Additional points can also be earned outside the Indian Oil network,
covering prominent FMCG, Food, Automobile, Travel, Entertainment, Apparel and
Hospitality sectors. Apart from redeeming the accumulated points instantly on
fuel / SERVO lubricants at participating retail outlets, card-holders can also redeem
the points to get exciting gift items from a catalogue. The redemption on gifts can be
registered either from the participating retail outlets or from the comfortable
confines of one's home through the 24x7 IVRS Help Line (1800 22 4111). The
programme continuously provides the cardholder with privileges, benefits and offers
from a large number of alliance partners, including restaurants, pizza companies,
automobile service stations, jewellers, and online shopping companies.
 INNOVATION AND LEARNING
PERSPECTIVE: Indian Oil's world-class Research & Development is
focused on developing, demonstrating and deploying novel, innovative, environment
friendly, customer centric products and process technologies for addressing issues of
national importance to attain self reliance in field of energy and allied areas. Apart
from carrying out path breaking research in core petroleum activities like Lubricants,
Refining, Petrochemicals and Pipeline; Indian Oil R&D is pursuing pioneering work
in promising & futuristic Alternate Energy segments like Bio-Energy, Solar Energy,
Hydrogen, Energy Storage, Battery, CCU Technologies etc.

The state-of-the-art Research & Development facilities is located on a sprawling 65

acre campus in Faridabad, Haryana on the outskirts of the National Capital. An
impressive array of most advanced equipment is available to experienced researchers
and scientists round-the-clock.

 INTERNAL BUSINESS PERSPECTIVE: At Indian Oil,

the ERM framework is spearheaded by the Risk Management Committee (RMC), a
Committee comprising of Board members, who actively ensure that risk management
activities are undertaken as per established policies. Further, the Risk Owners of all
divisions/ departments are responsible for identifying and assessing the risks in their
respective areas/units, before reporting them to the Risk Management Compliance
Board (RMCB), which comprises senior executives across divisions and is headed by
Chief Risk Officer. The report is then evaluated by the RMCB, who provide
enterprise-wide view of the risks to RMC, Audit committee and to the Board.
 COMPAMY 2-

BHARAT PETROLEUM

1) INTRODUCTION:
Bharat Petroleum Corporation ( BPCL) was established in 1952. It is one of the leading company
in the petroleum sector in the petroleum sector in India. BPCL is into exploration, production
and retailing of petroleum and petrol related products. The retail busines unit of BPCL is
into marketing of petrol, diesel and kerosene .It has network of 6553 retail outlets and 1007
kerosene dealers and is partnered with big food chain companies. It also offers full range of
automotive engine, gear oils, transmission oils, speciality oils and greases.

2) REVENUE OF THE COMPANY IN THE

PAST FIVE YEARS:
YEARLY RESULTS MAR '21 MAR '20 MAR '19 MAR '18 MAR '17  
OF BHARAT
PETROLEUM
CORPORATION (in
Rs. Cr.)
(CONSOLIDATED
DATA)

Net Sales/Income from 230,162.63 284,571.90 298,225.59 235,769.82 201,250.66

operations

3) GROWTH: Bharat Petroleum Corporation Ltd (BPCL), a ‘Maharatna’

Public Sector Undertaking (PSU) and a Fortune Global 500 Company reported robust
growth in earnings for the third quarter ending Dec 31, 2020. The Company’s
standalone net profit for the quarter grew 120.3 % to Rs. 2777.6 crore as compared to
Rs 1260.6 crore in the corresponding period of last year. Standalone revenue from
the operations for Q3FY21 was at Rs. 86,579.9 crore; while EBITDA rose 67.6 % to Rs.
5,400.8 crore in Q3FY21. For the nine-months ended December 31, 2020, the
standalone net profit rose 75.6 % to Rs. 7,101.5 crore; while EBITDA grew 55% to Rs.
14,209.2 crore. For the quarter ended Dec 31, 2020, the domestic sales of petroleum
products for the Company were at 11.10 million metric tonnes (MMT) as compared
to 11.02 MMT achieved during corresponding period of last year. As on Dec 31, 2020,
Company had total fuel stations’ network of 17,841 which has crossed 18,000 now,
affirming our position as second largest fuel retailer in the country.

4) BALANCE SCORECARD:

 FINANCIAL PERSPECTIVE:
 ❖ Current ratio of the Company was highest 1.01 in the year 2015-2016 and lowest 0.72
in the year 2019 2020.
❖ Liquid ratio of the company was highest 0.54 in 2015-2016 and lowest 0.34 in the
year20192020.
❖ Fixed asset turnover ratio of the company was highest 4.74 in 2018-2019 and lowest
3.65 in the year 2019-2020
❖ Inventory turnover ratio of the company was highest 13 in 2018-2019 and lowest 9.49
in the year 2016-2017.
❖ Total asset turnover ratio of the company was highest 2.18 in the year 2018- 2019 and
lowest 1.84 in the year 2016-2017.
❖ Net profit ratio of the company was highest 4.25 in the year 2016-2017 and lowest
0.79in the year 2019-2020. ❖ Return on asset ratio of the company was highest 8.95 in
the year 2015-2016 and lowest 1.50 in the year 2019- 2020.

 CUSTOMER PERSPECTIVE: Over 8.5 crore families depend

on the company’s 6,500+ LPG distributors to supply their homes with cooking gas.
About 1 crore vehicles tank up every day at one of BPCL’s 18,000+ petrol pumps.
And more than 50 airports use the company’s high-quality products to fuel their aircrafts.
The Fortune 500 ‘Maharatna’ conglomerate also serves 8000+ industrial and commercial
customers across multiple sectors like Cement, Railways, Paints, and Petrochemicals. In
short, its scale and reach are immense.  Meanwhile, management teams didn’t have
enough insights on which customers were using which services. They didn’t know, for
example, how many LPG customers were also visiting BPCL’s fuel stations, or using its
industrial and commercial products. Without this data, they couldn’t determine whether
the company was earning its real share of the customer’s wallet. To solve these
challenges, BPCL initiated Project Anubhav. Its objective was to implement a technology
platform that would cut across business units, giving teams a unified view of the
customer, while also giving customers a consistent experience across touchpoints.

 INNOVATION AND LEARNING

PERSPECTIVE: Running a large ecosystem that encompasses refineries,
plants and thousands of retail outlets, Bharat Petroleum Corporation Limited (BPCL)
knows that any oversight in its vast operations can affect the quality of its services and
customer satisfaction. To ensure it stays on top of things, the Indian organisation has
adopted key technologies such as artificial intelligence (AI) and the internet of
things (IoT) to manage its expansive ecosystem. It values the need to build trust and
assure customers that it is able to maintain quality, quantity and price of its products at
any point in time. It does so by embracing digital technologies and transformation
initiatives under the government’s Project Anubhav programme. The main goal here was
to ensure that any potential hiccups along the way can be quickly identified and
addressed, safeguarding the BPCL brand, which is associated with premium service
quality.
 INTERNAL BUSINESS PERSPECTIVE: BPCL aims to
create a safe and conducive working environment and provides opportunities for personal
and professional development. The Employee Satisfaction Enhancement (ESE) cell of BPCL
continues to work across employee categories with the aspiration to make BPCL a great
place to work. On 15th May 2019 at 11.45 p.m.,11 women officers on the night shift started
operating panels in different control rooms at Mumbai Refinery, creating history! BPCL has
enabled women to break barriers and become equal partners in its success story. This
initiative will inspire ambitious young women officers to gain good exposure in refinery
operations and become equal contenders for high leadership roles in the organization. They
were mentored, exhaustive training was extended, facilities to guarantee their safety and
security were put in place & all statutory compliances were adhered to, preparing them for the
front end role as operations officers. They were then placed at HCU, CDU4, CCR, FCCU, DHDS,
Blending, CCU, AROM & NHGU plants. With this small step, Mumbai refinery has taken a giant
leap in the field of women empowerment and providing equal opportunities to women in
future. The ESE team works on grievance of large workforce of 12,000 plus individuals. The
team resolves the grievances received from the employees and tries to reach out to
employees on their locations to understand their concerns. ESE chart out plans for enhancing
employee satisfaction through employee wellness, employee connect and prompt grievance
redressal. All the Operations of BPCL have been subject to Human rights reviews or Human
rights impact assessments. Sexual harassment cases are handled with great care and
sensitivity at BPCL. During the year, there were 7 complaints of sexual harassment, out of
which 5 were resolved by the Internal Complaints Committee and 2, received in March, 2020
were pending as at the end of the financial year.
 the
ndian Oil Corporation Limited from
various financial aspects like profitability,
liquidity and solvency, activity and
investment, it can be concluded that the
profitability position of the company can not
be said satisfactory because the Gross Profit
Ratio varies from 3.93% to
6.88 % with the average of 5.3%. The gross
profit ratio of 5.3% needs to be improved. The
second ratio of profitability is net profit ratio
which varies from 0.82%
to 5.14% with the average of 3.22%. The net
profit ratio of 3.22% is not satisfactory from
any point of view so company should
concentrate on minimization of
the expenses. The third measure of
profitability taken in the study is return on
investment which varies from 12.03% to
24.18% with an average of 18.67%. The
return of 18.67% on investment to the
investors can be said good and it seems to
be an average return on any investment. The
fourth and last measure of
profitability is return on equity varies from
6.70% to 21.51% with an average of 14.63%
which can be said satisfactory but company
need to improve the quality
of financial decision so that the wealth of
equity shareholder’ can be maximized.
The short term solvency is measured by the
current ratio and quick ratio. The ideal
current ratio is 2:1 but undoubtedly the ideal
ratios can not be applied in
each and every industry. The company never
even touched the ideal current ratio. It varies
from 0.94:1 to 1.27:1 with an average of
1.17:1 which is much less
than the ideal ratio. Company needs to
improve this ratio. The second ratio of
liquidity is quick ratio; ideally it should be
1:1. In the case of the Indian oil
corporation limited, it varies from 0.50:1 to
0.70:1 with an average of 0.61:1. As in the
case of current ratio the company was unable
to even touch the ideal
quick ratio during the period of the study
which may create problem to the short term
liquidity.
The long term solvency is measured by
Debt-Equity ratio, Debt to Total Assets
ratio, Proprietary ratio and Interest coverage
ratio. Debt –Equity ratio of the
company varies from 0.30 to 0.57 with an
average of 0.46 which is much lower and
shows that the company is not taking benefit
of leverage. As the debt capital
is presumed to be less costly to the equity,
company should get benefit by restructuring
its capital structure. The second measure of
long term solvency is taken
Debt to Total Assets ratio, which varies from
0.13 to 0.28 with an average of 0.23 which
shows the solvency position of the firm is
good. The firm can finance
more assets with borrowed capital to take the
advantage of so-called less costly capital. The
third measure of long term solvency taken is
Proprietary ratio which
varies from 0.42 to 0.52 with an average of
0.48, which express the less risk of
insolvency of the firm. The fourth and last
measure of long term solvency is
interest coverage ratio which varies from 3.05
to 10.24 with an average of 6.12 which can be
said satisfactory and company is able to pay
charges of interest.
The efficiency in the operation of firm can
be measured by Fixed Assets turnover ratio
and Working capital turnover ratio. Fixed
assets turnover ratio of
company varies from 5.72 to 8.27 with an
average of 7.14 which can be said as good and
shows that company is using its fixed assets
efficiently. Second and last
efficiency ratio is working capital turnover
ratio which varies from 0 to 48.07 times with
an average of 21.81 which be said satisfactory.
The investment opportunities in equity shares
can be measured by Dividend Payout ratio and
Earning per share. First dividend ratio varies
from 0.08 to 0.26 with
an average of 0.23 which shows that company
is paying good dividend and company has
good opportunities to invest in new projects.
The second investment
ratio is earning per share which varies from
16.29 to 62.89 which is also good position and
shows company is able to increase
shareholders’ wealth.