FINANCIAL MANAGEMENT PRACTICES IN OIL AND GAS INDUSTRY-A STUDY OF COMPARATIVE CAPITAL STRUCTURE ANALYSIS OF BHARAT PETROLEUM CORPORATION LIMITED AND ESSAR OIL LIMITED
Keywords:
Abstract
The term “financial management practices” refers to the set of common methods or procedures develop for carrying out accounting, financial reporting, budgeting, financial control and other activities related to business finances. We may say it, a complete package of major three important areas like capital structure management, working capital management, accounting information system, fixed assets management and financial analysis and reporting. Every business of profit motive compulsorily needs to adopt these practices in India. The Indian oil and gas sector is one of the six core industries in India and has very significant forward linkages with the entire economy. As per industry perspective, oil and gas industry is divided into three major sectors: upstream, midstream and downstream. The upstream sector is a term commonly used to refer to exploration, recovery and production of oil and gas. The midstream industry processes, stores, markets and transports commodities such as crude oil, natural gas, and sulphur ,the downstream sector is a term commonly used to refer to the refining of crude oil and the selling and distribution of natural gas and products derived from crude oil. Financial Decision Making in the Oil and Gas Industry is to be based on three major areas of decision Investment, Financing and Dividend Decisions. The study is based on the secondary data collected from the period of last two years from the annual report of BPCL and EOL. The data collected has been tabulated, classified and compared to achieve the objectives of the study. The objectives of the study, to know the concept of Financial management practices and the Financial management practices in oil and gas Industry in India and to examine and analyse the differences of capital structure of, BPCL and EOL. From the most common tool i.e. Ratio analysis ,various capital structure ratios will be used to attain the said objective The paper conclude that the selected companies of oil and gas Industries are adopting and taking all three decisions according to theories and practices of financial management. Capital structure ratios will shows the satisfactory long term financial position of the firms and adequate funds to cover the fixed charges and dividend reserve.
References
• www.en.wikipedia.org
• www.indialawoffices.com
• www.indian-Oil and Petroleum.com
• www.indianOil and Petroleumjournal.com
• www.moneycontrol.com
Downloads
Published
Issue
Section
License
Copyright Notice
Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.
Copyrights for articles published in World Scholars journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.
