Indian Oil Corporation LTD

Indian Oil Corporation Ltd
Industry :Refineries
Year Mar 08 Mar 07 Mar 06

SOURCES OF FUNDS :
Share Capital 1,192.37 1,192.37 1,168.01
Reserves Total 39,893.88 33,664.92 28,134.66
Total Shareholders Funds 41,086.25 34,857.29 29,302.67
Secured Loans 6,415.78 5,671.42 7,793.54
Unsecured Loans 29,107.39 21,411.27 18,610.77
Total Debt 35,523.17 27,082.69 26,404.31
Total Liabilities 76,609.42 61,939.98 55,706.98
APPLICATION OF FUNDS :
Gross Block 56,832.26 54,836.96 43,694.96
Less : Accumulated Depreciation 24,024.88 21,431.18 18,635.98
Net Block 32,807.38 33,405.78 25,058.98
Lease Adjustment 0 0 0
Capital Work in Progress 9,170.22 4,394.30 9,645.83
Investments 21,635.31 20,119.57 14,548.34
Current Assets, Loans & Advances
Inventories 30,941.48 24,702.69 24,277.79
Sundry Debtors 6,819.23 6,739.27 6,698.03
Cash and Bank 824.43 925.97 744.17
Loans and Advances 21,872.76 11,245.48 10,444.01
Total Current Assets 60,457.90 43,613.41 42,164.00
Less : Current Liabilities and Provisions
Current Liabilities 33,407.99 26,579.97 23,697.85
Provisions 8,668.58 7,633.41 7,589.38
Total Current Liabilities 42,076.57 34,213.38 31,287.23
Net Current Assets 18,381.33 9,400.03 10,876.77
Miscellaneous Expenses not written off 0 0 0
Deferred Tax Assets 533.26 349.06 256.57
Deferred Tax Liability 5,918.08 5,728.76 4,679.51
Net Deferred Tax -5,384.82 -5,379.70 -4,422.94
Total Assets 76,609.42 61,939.98 55,706.98
Contingent Liabilities 8,232.87 7,351.38 4,998.70
0.741844279724 0.885324147667 0.78437136603
(Rs in Crs)
Mar 05 Mar 04
1,168.01 1,168.01
24,816.35 21,879.40
25,984.36 23,047.41
2,491.23 3,175.21
14,829.01 9,003.35
17,320.24 12,178.56
43,304.60 35,225.97
39,869.26 36,388.30
16,452.91 14,341.69
23,416.35 22,046.61
0 0
8,733.91 5,286.57
5,702.46 5,669.22
19,504.82 14,951.08
5,689.87 3,973.12
446.32 698.07
11,453.96 11,251.88
37,094.97 30,874.15
20,075.07 16,486.00
7,262.68 7,880.85
27,337.75 24,366.85
9,757.22 6,507.30
0 0
185.21 158.41
4,490.55 4,442.14
-4,305.34 -4,283.73
43,304.60 35,225.97
4,959.53 4,200.75
0.920670321398 1.032996394422
COMMON SIZE BALANCE SHEET
Year Mar 08 Mar 07 Mar 06

SOURCES OF FUNDS :
Share Capital 1.56 1.93 2.10
Reserves Total 52.07 54.35 50.50
Total Shareholders Funds 53.63 56.28 52.60
Secured Loans 8.37 9.16 13.99
Unsecured Loans 37.99 34.57 33.41
Total Debt 46.37 43.72 47.40
Total Liabilities 100.00 100.00 100.00
Gross Block 74.18 88.53 78.44
Less : Accumulated Depreciation 31.36 34.60 33.45
Net Block 42.82 53.93 44.98
Lease Adjustment - - -
Capital Work in Progress 11.97 7.09 17.32
Investments 28.24 32.48 26.12
Inventories 40.39 39.88 43.58
Sundry Debtors 8.90 10.88 12.02
Cash and Bank 1.08 1.49 1.34
Loans and Advances 28.55 18.16 18.75
Total Current Assets 78.92 70.41 75.69
Less : Current Liabilities and Provisions - - -
Current Liabilities 43.61 42.91 42.54
Provisions 11.32 12.32 13.62
Total Current Liabilities 54.92 55.24 56.16
Net Current Assets 23.99 15.18 19.52
Miscellaneous Expenses not written off - - -
Deferred Tax Assets 0.70 0.56 0.46
Deferred Tax Liability 7.73 9.25 8.40
Net Deferred Tax (7.03) (8.69) (7.94)
Total Assets 100.00 100.00 100.00
Contingent Liabilities 10.75 11.87 8.97
(Rs in Crs)
Mar 05 Mar 04
2.70 3.32
57.31 62.11
60.00 65.43
5.75 9.01
34.24 25.56
40.00 34.57
100.00 100.00
92.07 103.30
37.99 40.71
54.07 62.59
- -
20.17 15.01
13.17 16.09
45.04 42.44
13.14 11.28
1.03 1.98
26.45 31.94
85.66 87.65
- -
46.36 46.80
16.77 22.37
63.13 69.17
22.53 18.47
- -
0.43 0.45
10.37 12.61
(9.94) (12.16)
100.00 100.00
11.45 11.93
Analysis :
■ The size of balance sheet has enhanced by Rs.41,383.45 crores during the period of five years
which implies that the company is growing at a fast pace.
■ The company has inclined towards using more shareholders funds than loan funds in financing
assets.Over the period of five years there has been 78.27% shift towards shareholders' funds. It is
necessary to appreciate the impact of cost of capital as opportunity cost of shareholders' funds is
generally higher than the loan funds. the reasons for inclination towards shareholders' funds is
ploughing back of profits.
■ The company has improved the utilization of current assets per rupee of fixed assets.
■ There is a continuous growth in fixed assets component and outside investments signifying
better fund management. Fixed assets has increased to 56.18% and outside investments increased
to 281.63%, which implies that additional funds are invested in assets on a massive scale.
■ (Rs in Crs)
Year Mar 08 Mar 07 Mar 06 Mar 05 Mar 04
Debt 35523.17 27082.69 26404.31 17320.24 12178.56
FA 56832.26 54836.96 43694.96 39869.26 36388.3
CWIP 9170.22 4394.3 9645.83 8733.91 5286.57
FA + Cwip 66002.48 59231.26 53340.79 48603.17 41674.87
Net CA 18381.33 9400.03 10876.77 9757.22 6507.3
% FA to long term funds 1.86 2.19 2.02 2.81 3.42
% Net CA to long term funds 0.52 0.35 0.41 0.56 0.53
√ The above trend shows that the company is following a lenient working capital policy.
√ It can be observed from the above data that long term funds are being utilised for short
term purposes as proportion of Fixed assets to longterm funds is on a downward trend,
however proportion of working capital to long term funds is increasing.
■ (Rs in Crs)
CA 24,024.88 21,431.18 18,635.98 16,452.91 14,341.69
CL 21,635.31 20,119.57 14,548.34 5,702.46 5,669.22
Current Ratio 1.11:1 1.07:1 1.28:1 2.89:1 2.53:1
√ It can be seen from the above figures that the company is deviating from ideal current
ratio(2:1).
Bharat Petroleum Corporation Ltd
(Rs in Crs)
SOURCES OF FUNDS :
Share Capital 361.54 361.54 361.54 300 300
Reserves Total 11,315.30 9,912.00 8,777.88 6,088.43 5,549.72
Total Shareholders Funds 11,676.84 10,273.54 9,139.42 6,388.43 5,849.72
Secured Loans 2,730.21 2,593.96 3,071.32 1,173.42 1,973.74
Unsecured Loans 12,292.17 8,235.28 5,302.28 2,708.19 715.98
Total Debt 15,022.38 10,829.24 8,373.60 3,881.61 2,689.72
Total Liabilities 26,699.22 21,102.78 17,513.02 10,270.04 8,539.44
Gross Block 21,500.93 19,457.58 17,376.84 12,668.84 11,157.96
Less : Accumulated Depreciation 9,532.26 8,476.53 7,459.48 5,668.72 5,112.27
Net Block 11,968.67 10,981.05 9,917.36 7,000.12 6,045.69
Lease Adjustment 0 0 0 0 0
Capital Work in Progress 766.71 852.34 1,168.11 1,348.55 1,407.79
Investments 10,318.22 8,294.90 3,889.37 1,677.14 1,976.97
Inventories 10,603.84 8,661.26 9,044.77 6,258.56 4,286.02
Sundry Debtors 1,608.60 1,518.73 1,315.89 854.58 821.07
Cash and Bank 961.59 863.97 492.1 352.39 626.61
Loans and Advances 6,533.22 2,586.90 2,448.23 2,915.72 2,607.80
Total Current Assets 19,707.25 13,630.86 13,300.99 10,381.25 8,341.50
Current Liabilities 13,594.11 10,200.62 8,894.48 8,820.98 7,523.85
Provisions 986.15 1,073.16 512.49 347.01 886.27
Total Current Liabilities 14,580.26 11,273.78 9,406.97 9,167.99 8,410.12
Net Current Assets 5,126.99 2,357.08 3,894.02 1,213.26 -68.62
Miscellaneous Expenses not written off 0 0 0 0 0
Deferred Tax Assets 303.88 298.16 216.04 129.71 203.39
Deferred Tax Liability 1,785.25 1,680.75 1,571.88 1,098.74 1,025.78
Net Deferred Tax -1,481.37 -1,382.59 -1,355.84 -969.03 -822.39
Total Assets 26,699.22 21,102.78 17,513.02 10,270.04 8,539.44
Contingent Liabilities 3,035.11 2,810.81 2,028.80 1,767.19 1,649.87
-18,159.78
10,342.97
0.9269589
8,341.25
4.2192092
(Rs in Crs)
SOURCES OF FUNDS :
Share Capital 1.35 1.71 2.06 2.92 3.51
Reserves Total 42.38 46.97 50.12 59.28 64.99
Total Shareholders Funds 43.73 48.68 52.19 62.20 68.50
Secured Loans 10.23 12.29 17.54 11.43 23.11
Unsecured Loans 46.04 39.02 30.28 26.37 8.38
Total Debt 56.27 51.32 47.81 37.80 31.50
Total Liabilities 100.00 100.00 100.00 100.00 100.00
Gross Block 80.53 92.20 99.22 123.36 130.66
Less : Accumulated Depreciation 35.70 40.17 42.59 55.20 59.87
Net Block 44.83 52.04 56.63 68.16 70.80
Lease Adjustment - - - - -
Capital Work in Progress 2.87 4.04 6.67 13.13 16.49
Investments 38.65 39.31 22.21 16.33 23.15
Current Assets, Loans & Advances - - - - -
Inventories 39.72 41.04 51.65 60.94 50.19
Sundry Debtors 6.02 7.20 7.51 8.32 9.62
Cash and Bank 3.60 4.09 2.81 3.43 7.34
Loans and Advances 24.47 12.26 13.98 28.39 30.54
Total Current Assets 73.81 64.59 75.95 101.08 97.68
Less : Current Liabilities and Provisions - - - - -
Current Liabilities 50.92 48.34 50.79 85.89 88.11
Provisions 3.69 5.09 2.93 3.38 10.38
Total Current Liabilities 54.61 53.42 53.71 89.27 98.49
Net Current Assets 19.20 11.17 22.24 11.81 (0.80)
Miscellaneous Expenses not written off - - - - -
Deferred Tax Assets 1.14 1.41 1.23 1.26 2.38
Deferred Tax Liability 6.69 7.96 8.98 10.70 12.01
Net Deferred Tax (5.55) (6.55) (7.74) (9.44) (9.63)
Total Assets 100.00 100.00 100.00 100.00 100.00
Contingent Liabilities 11.37 13.32 11.58 17.21 19.32
Analysis :
■ The size of balance sheet has enhanced by Rs.18,159.78 crores during the period of five years
which implies that the company is growing.
■ The company has inclined towards using more loan funds than shareholders funds in financing
assets.Over the period of five years there has been shift towards debt. Reason for such change may be
the difference in opportunity cost of the funds as opportunity cost of loan funds is generally lower
than shareholders' funds.
Shareholders Funds 0.44 0.49 0.52 0.62 0.69

Debt 0.56 0.51 0.48 0.38 0.31
Total Funds 1 1 1 1 1
■ There is a continuous growth in fixed assets component and outside investments signifying better
fund management.Over the period of five years, fixed assets has increased to 92.70% and outside
investments increased to 421.92%, which implies that additional funds are invested in assets on a
massive scale.
■ (Rs in Crs)
Debt 15,022.38 10,829.24 8,373.60 3,881.61 2,689.72
FA 21500.93 19457.58 17376.84 12668.84 11157.96
CWIP 766.71 852.34 1168.11 1348.55 1407.79
FA + Cwip 22267.64 20309.92 18544.95 14017.39 12565.75
Net CA 5126.99 2357.08 3894.02 1213.26 -68.62
% FA to long term funds 1.48 1.88 2.21 3.61 4.67
% Net CA to long term funds 0.34 0.22 0.47 0.31 (0.03)
√ The above trend shows that the company is following a more or less tight working capital
policy.
√ It can be observed from the above data that long term funds are being utilised for short
term purposes as proportion of Fixed assets to longterm funds is on a downward trend, however
proportion of working capital to long term funds is increasing.
■ (Rs in Crs)
CA 19,707.25 13,630.86 13,300.99 10,381.25 8,341.50
CL 14,580.26 11,273.78 9,406.97 9,167.99 8,410.12
Current Ratio 1.35:1 1.21:1 1.41:1 1.13:1 0.99:1
√ It can be seen from the above figures that the company is deviating from ideal current
ratio(2:1).
IOCL BPCL DIFFERENCE

Year Mar-08 Mar-08 %
SOURCES OF FUNDS :
Share Capital 1.56 1.35 0.20
Reserves Total 52.07 42.38 9.69
Total Shareholders Funds 53.63 43.73 9.90
Secured Loans 8.37 10.23 (1.85)
Unsecured Loans 37.99 46.04 (8.04)
Total Debt 46.37 56.27 (9.90)
Total Liabilities 100.00 100.00 -
Gross Block 74.18 80.53 (6.35)
Less : Accumulated Depreciation 31.36 35.70 (4.34)
Net Block 42.82 44.83 (2.00)
Lease Adjustment - - -
Capital Work in Progress 11.97 2.87 9.10
Investments 28.24 38.65 (10.41)
Inventories 40.39 39.72 0.67
Sundry Debtors 8.90 6.02 2.88
Cash and Bank 1.08 3.60 (2.53)
Loans and Advances 28.55 24.47 4.08
Total Current Assets 78.92 73.81 5.10
Current Liabilities 43.61 50.92 (7.31)
Provisions 11.32 3.69 7.62
Total Current Liabilities 54.92 54.61 0.31
Net Current Assets 23.99 19.20 4.79
Miscellaneous Expenses not written off - - -
Deferred Tax Assets 0.70 1.14 (0.44)
Deferred Tax Liability 7.73 6.69 1.04
Net Deferred Tax (7.03) (5.55) (1.48)
Total Assets 100.00 100.00 -
Contingent Liabilities 10.75 11.37 (0.62)
Inter-Firm comparison between IOCL & BPCL :
IOCL -SOURCE OF FUNDS BPCL- SOURCE OF FUNDS
Shareholders
Shareholders Funds
Funds
Secured Loans Secured Loans
Unsecured
Loans Unsecured
Loans
IOCL BPCL
Shareholders Funds 53.63 43.73
Secured Loans 8.37 10.23
Unsecured Loans 37.99 46.04
Total 100.00 100.00
√ In IOCL, shareholders' funds constitutes a major part of total funds in comparison to

BPCL, whereas in BPCL more preference is given to debt.
√ IOCL is following a comparatively tight working capital policy than BPCL.
IOCL BPCL
Dividend (In Crs.) 655.81 144.62
Equity Dividend % 55 40
Earnings Per Share-Unit Curr 57.75 43.46
Book Value-Unit Curr 344.58 322.98
√ Returns to shareholders are comparatively better in IOCL than BPCL as EPS is

better in IOCL.
√ Dividend payout ratio is also high in IOCL.
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Year Mar-08 Mar-07

INCOME :
Sales Turnover 270,346.01 238,296.54
Excise Duty 23,582.49 21,849.52
Net Sales 246,763.52 216,447.02
Other Income 4,603.69 6,435.13
Stock Adjustments 1,958.09 -180.73
Total Income 253,325.30 222,701.42
EXPENDITURE :
Raw Materials 222,405.79 192,588.59
Power & Fuel Cost 498.76 415.3
Employee Cost 2,893.22 2,585.37
Other Manufacturing Expenses 7,511.67 6,961.38
Selling and Administration Expenses 3,805.78 3,252.15
Miscellaneous Expenses 1,830.25 2,287.55
Less: Pre-operative Expenses Capitalised 0 0
Total Expenditure 238,945.47 208,090.34
Operating Profit 14,379.83 14,611.08
Interest 1,589.73 1,535.77
Gross Profit 12,790.10 13,075.31
Depreciation 2,709.70 2,590.31
Profit Before Tax 10,080.40 10,485.00
Tax 3,084.13 2,111.53
Deferred Tax 33.69 874.00
Reported Net Profit 6,962.58 7,499.47
Extraordinary Items -231.41 1,257.15
Adjusted Net Profit 7,193.99 6,242.32
Adjst. below Net Profit 0 0
P & L Balance brought forward 0 0
Statutory Appropriations 0 0
Appropriations 1,657.50 7,499.47
P & L Balance carried down 5,305.08 0
Dividend 655.81 2,250.89
Preference Dividend 0 0
11.35601731602 10000000
TREND OF SALES AND PROFIT
120
100
Percentage
80 Sa
Op
Gro
60 Pro
40
20
0
1 2 3 4 5
Years
Sales Turnover 49.59731789642 56.81784613725

Operating Profit 83.69702562548 60.02956919519
Gross Profit 90.41860501482 62.76714021001
Profit Before Tax 96.13547081465 59.07682234832
(Rs in Crs)
Mar-06 Mar-05 Mar-04
192,817.53 153,604.78 134,084.37 0.191614

18,659.24 14,374.20 17,022.57 2.01623806
174,158.29 139,230.58 117,061.80
2,939.43 1,477.25 1,716.05
2,599.33 1,653.90 728.72
179,697.05 142,361.73 119,506.57
158,152.23 122,476.42 97,361.01

335.06 272.72 445.25
1,844.16 1,829.17 1,536.04
6,025.82 6,149.77 5,676.25
2,713.62 2,413.91 1,656.15
665.92 587.59 796.38
0 0 0
169,736.81 133,729.58 107,471.08
9,960.24 8,632.15 12,035.49
1,052.79 604.17 470.86
8,907.45 8,027.98 11,564.63
2,201.46 2,072.80 1,873.79
6,705.99 5,955.18 9,690.84
1,617.63 1,029.43 2,275.40
173.24 34.37 410.62
4,915.12 4,891.38 7,004.82
321.04 -11.88 -55.47
4,594.08 4,903.26 7,060.29
0 0 0
0 0 0
0 0 0
4,915.12 4,891.38 7,004.82
0 0 0
1,460.02 1,693.62 2,452.83
0 0 0
125 145 210
40.33 39.85 57.28
250.88 222.47 197.32
Compounded Growth(%)
113560173.1602 Sales Turnover
Other Income
Expenditure
Operating Profit
PROFIT Profit Before Tax
Reported Net Profit
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Sales Turnover Selling and Administration Expenses
Operating Profit Miscellaneous Expenses
Gross Profit Interest
Profit Before Tax
Analysis :
1.Growth rate of Other Income is higher than Sales
2.Company could achieve better profit growth than
3.Company's total expenditure (i.e.direct & indirect
4 5
3.1 Average growth in raw material cost is 22.94%
3.2 Selling & administration expenses and miscell
3.3 Average growth in interest cost(i.e.35.55%) w
71.32249889688 88.14501830451 100
69.26535292837 101.608155312 100
69.64331787867 102.2299278348 100
66.52503868894 104.0137296139 100
2004-2008
19.16
27.98
22.11
4.55
0.99
-0.15
22.94
2.88
17.15
ring Expenses 7.26
inistration Expenses 23.12
23.13
35.55
Other Income is higher than Sales turnover, which shows that company's core business is generating comparatively less return.
d achieve better profit growth than income growth because of lower expense growth.
l expenditure (i.e.direct & indirect) is increasing at a high rate because of the following reasons :
wth in raw material cost is 22.94%.
dministration expenses and miscellaneous expenses are increasing at a substantial rate.
wth in interest cost(i.e.35.55%) which pulled up the average cost.
mparatively less return.
Year Mar-08 Mar-07 Mar-06

INCOME :
Sales Turnover 121,684.07 107,452.27 85,149.62
Excise Duty 11,475.94 10,895.42 9,616.33
Net Sales 110,208.13 96,556.85 75,533.29
Other Income 1,520.80 752.49 493.14
Stock Adjustments -392.5 205.44 754.4
Total Income 111,336.43 97,514.78 76,780.83
EXPENDITURE :
Raw Materials 101,586.56 88,593.77 71,350.42
Power & Fuel Cost 61.75 66.64 47.71
Employee Cost 1,296.16 1,002.88 881.09
Other Manufacturing Expenses 609.05 586.54 493.12
Selling and Administration Expenses 2,413.43 2,216.64 1,943.76
Miscellaneous Expenses 1,002.41 844.52 642.55
Less: Pre-operative Expenses Capitalised 0 0 0
Total Expenditure 106,969.36 93,310.99 75,358.65
Operating Profit 4,367.07 4,203.79 1,422.18
Interest 672.47 532.69 247.62
Gross Profit 3,694.60 3,671.10 1,174.56
Depreciation 1,098.21 904.11 768.01
Profit Before Tax 2,596.39 2,766.99 406.55
Tax 889.73 923.04 -1.01
Deferred Tax 126.10 38.48 115.91
Reported Net Profit 1,580.56 1,805.47 291.65
Extraordinary Items 28.95 -28.4 1.92
Adjusted Net Profit 1,551.61 1,833.87 289.73
Adjst. below Net Profit 0 0 2,084.32
P & L Balance brought forward 0 2,682.91 628.17
Statutory Appropriations 0 0 0
Appropriations 1,580.56 4,488.38 321.23
P & L Balance carried down 0 0 2,682.91
Dividend 144.62 578.46 90.39
Preference Dividend 0 0 0
Equity Dividend % 40 160 25
Earnings Per Share-Unit Curr 43.46 47.4 9.3
Book Value-Unit Curr 322.98 284.16 302.6
TREND OF SALES AND PROFIT
120
Percentage
100
80 Sales Turnover
Operating Profit
60 Gross Profit
Profit Before
Tax
40
20
0
1 2 3 4 5
Years
Sales Turnover 44 52 70
Operating Profit 76 48 33
Gross Profit 87 53 32
Profit Before Tax 101 52 16
(Rs in Crs)
Mar-05 Mar-04
63,857.00 53,448.36
5,979.60 5,610.67
57,877.40 47,837.69
511.72 466.85
1,586.25 -284.03
59,975.37 48,020.51
54,495.57 41,699.37
19.69 21.02
792.52 661.35
373.83 316.46
1,741.41 1,535.19
460.36 485.69
0 0
57,883.38 44,719.08
2,091.99 3,301.43
140.11 105.35
1,951.88 3,196.08
596.04 561.16
1,355.84 2,634.92
243.41 864.51
146.63 75.84
965.80 1,694.57
-22.19 9.57
987.99 1,685.00
0 0
0 0
0 0
337.63 1,694.57
628.17 0
375 525
0 0
125 175
30.46 54.24
212.95 194.99
Compounded Growth(%)
Sales Turnover
Other Income
Expenditure
Operating Profit
Profit Before Tax
Reported Net Profit
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Administration Expenses
Miscellaneous Expenses
Interest
Analysis :
1.Other Income shows comparatively higher average growth than Sal
2.Company could achieve better profit growth than income growth b
3. Average growth in interest cost(i.e.58.95%) which pulled up the av
4. Growth in raw material cost arrested the operating profit growth at
88 100 5. Substantial increase in Power & Fuel cost.
96 100
99 100
107 100
2004-2008
22.84
34.35
24.36
7.24
-0.37
-1.73
24.93
30.92
18.32
17.78
11.97
19.86
58.95
er average growth than Sales turnover.

wth than income growth because of lower expense growth.
5%) which pulled up the average cost, otherwise the company could have registered still better profit growth.
operating profit growth at 7.24%.
COMMON SIZE PROFIT & LOSS ACCOUNT

INCOME :
Sales Turnover 100.00 100.00 100.00
Excise Duty 8.72 9.17 9.68
Net Sales 91.28 90.83 90.32
Other Income 1.70 2.70 1.52
Stock Adjustments 0.72 -0.08 1.35
Total Income 93.70 93.46 93.20
EXPENDITURE :
Raw Materials 82.27 80.82 82.02
Power & Fuel Cost 0.18 0.17 0.17
Employee Cost 1.07 1.08 0.96
Selling and Administration Expenses 1.41 1.36 1.41
Miscellaneous Expenses 0.68 0.96 0.35
Less: Pre-operative Expenses Capitalised 0.00 0.00 0.00
Total Expenditure 88.39 87.32 88.03
Operating Profit 5.32 6.13 5.17
Interest 0.59 0.64 0.55
Gross Profit 4.73 5.49 4.62
Depreciation 1.00 1.09 1.14
Profit Before Tax 3.73 4.40 3.48
Tax 1.14 0.89 0.84
Deferred Tax 0.01 0.37 0.09
Reported Net Profit 2.58 3.15 2.55
Extraordinary Items -0.09 0.53 0.17
Adjusted Net Profit 2.66 2.62 2.38
Adjst. below Net Profit 0.00 0.00 0.00
P & L Balance brought forward 0.00 0.00 0.00
Statutory Appropriations 0.00 0.00 0.00
Appropriations 0.61 3.15 2.55
P & L Balance carried down 1.96 0.00 0.00
Dividend 0.24 0.94 0.76
Preference Dividend 0.00 0.00 0.00
UNT
(Rs in Crs)
Mar-05 Mar-04
100.00 100.00
9.36 12.70
90.64 87.30
0.96 1.28
1.08 0.54
92.68 89.13
79.73 72.61
0.18 0.33
1.19 1.15
4.00 4.23
1.57 1.24
0.38 0.59
0.00 0.00
87.06 80.15
5.62 8.98
0.39 0.35
5.23 8.62
1.35 1.40
3.88 7.23
0.67 1.70
0.02 0.31
3.18 5.22
-0.01 -0.04
3.19 5.27
0.00 0.00
0.00 0.00
0.00 0.00
3.18 5.22
0.00 0.00
1.10 1.83
0.00 0.00
145 210
39.85 57.28
222.47 197.32
Intra-Firm Analysis :
Operating Efficiency :
1. The trend of Operating profits with respect to sales is more or less showing a diminishing
trend.
2. Raw material % to sales has been increased over the period. On the contrary, other
manufacturing expenses % to sales decreased.
3. Depreciation % to sales has been diminished over the period.
4. Interest incidence has been increased signifying more dependence on borrowed funds.
5. Selling expenses & employee cost are more or less at the same level.
6. Net effect of increase in total expenditure has been reflected in the decreased operating
profits.
7. Returns to shareholders has also shown a decreasing trend which is signified by

diminishing earnings per share.
Operating efficiency of the company can also be judged on the basis of CAGR
(Compounded Average Growth Rate)
■ Compounded average growth rate in expenses i.e. 22.11% is very high.
■ Compounded average growth rate in interest expense is 35.55%, restricting the growth in
PBT to only 0.99%.
COMMON SIZE PROFIT & LOSS ACCOUNT

INCOME :
Sales Turnover 100.00 100.00 100.00
Excise Duty 9.43 10.14 11.29
Net Sales 90.57 89.86 88.71
Stock Adjustments -0.32 0.19 0.89
Total Income 91.50 90.75 90.17
EXPENDITURE :
Raw Materials 83.48 82.45 83.79
Selling and Administration Expenses 1.98 2.06 2.28
Miscellaneous Expenses 0.82 0.79 0.75
Interest 0.55 0.50 0.29
Tax 0.73 0.86 0.00
Deferred Tax 0.10 0.04 0.14
Extraordinary Items 0.02 -0.03 0.00
Appropriations 1.30 4.18 0.38
Dividend 0.12 0.54 0.11
UNT
(Rs in Crs)
Mar-05 Mar-04
100.00 100.00
9.36 10.50
90.64 89.50
0.80 0.87
2.48 -0.53
93.92 89.84
85.34 78.02
0.03 0.04
1.24 1.24
0.59 0.59
2.73 2.87
0.72 0.91
0.00 0.00
90.65 83.67
3.28 6.18
0.22 0.20
3.06 5.98
0.93 1.05
2.12 4.93
0.38 1.62
0.23 0.14
1.51 3.17
-0.03 0.02
1.55 3.15
0.00 0.00
0.00 0.00
0.00 0.00
0.53 3.17
0.98 0.00
0.59 0.98
0.00 0.00
125 175
30.46 54.24
212.95 194.99
Intra-Firm Analysis :
Operating Efficiency :
1. Operating profits with respect to sales has shown a decreasing trend over the period.
2. Raw material % to sales has been increased over the period. On the contrary, other
manufacturing expenses % to sales decreased.
3. Depreciation % to sales has been diminished over the period.
4. Interest incidence has been increased signifying more dependence on borrowed funds.
5. Selling expenses has shown a downward trend. However employee cost are more or less at
the same level.
6. Net effect of increase in total expenditure has been reflected in the decreased operating
profits.
7. Returns to shareholders has also shown a decreasing trend which is signified by
diminishing EPS.
Operating efficiency of the company can also be judged on the basis of CAGR
(Compounded Average Growth Rate)
■ Compounded average growth rate in expenses i.e. 24.36% is very high.
■ Compounded average growth rate in interest expense is 58.95%, restricting the growth in
operating profit to only 7.24%.
Inter-Firm comparison between IOCL & BPCL :
COMPARATIVE COMMON SIZE P& L ACCOUNT FOR 2008
IOCL BPCL DIFFERENCE

Year Mar-08 Mar-08 %
INCOME :
Sales Turnover 100.00 100.00 0.00
Excise Duty 8.72 9.43 -0.71
Net Sales 91.28 90.57 0.71
Stock Adjustments 0.72 -0.32 1.05
Total Income 93.70 91.50 2.21
EXPENDITURE :
Raw Materials 82.27 83.48 -1.22
Selling and Administration Expenses 1.41 1.98 -0.58
Miscellaneous Expenses 0.68 0.82 -0.15
Interest 0.59 0.55 0.04
Tax 1.14 0.73 0.41
Deferred Tax 0.01 0.10 -0.09
Extraordinary Items -0.09 0.02 -0.11
Appropriations 0.61 1.30 -0.69
Dividend 0.24 0.12 0.12
2008
COMMENT :
►IOCL was having higher other income that influenced its operating profit. But its
expenses on account of power and fuel, other manufacturing expenses and depreciation
was of higher % to sales than BPCL.
►BPCL had negative stock adjustment and low other income which further influenced its
profits negatively.
►In comparison to IOCL, cost inefficiency of BPCL is lowering its profits.
►Interest incidence % to sales is greater in IOCL than BPCL, which is affecting its Gross
profit.
►Returns to shareholders in the form of equity dividend are also comparatively higher in
IOCL than BPCL.
IOCL BPCL
Mar-08 Mar-08

Indian Oil Corporation LTD

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Year Mar 08 Mar 07 Mar 06