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Submitted By

:
Ali Hassan(123207)
Submitted To:
Mam Ayesha Anwar
Submitted On:
28-05-2014
Project:
Shell Pakistan


Final Project


Table Of Contents
 Introduction of Shell
 Brief History of Shell
 Products of Shell
 Department of Shell Company
 Analysis of Shell
 Financial Statement
 Ratio Analysis
 Conclusion






In 1833 Marcus Samuel, a young shopkeeper selling
antiques and bric-a-brac in London’s East End,
decided to expand his merchandise to include
oriental shells. Shells were hugely popular at this
time and the decision transformed his shop into
highly successful import/ export business. Little did
he realize, in an industrial age powered by coal, this
was the foundation for a business that would be at
the very heart of the oil industry.








Shell Oil Company is the United States-based
subsidiary of Royal Dutch Shell, a multinational oil
company ("oil major”) of Anglo–Dutch origins,
which is amongst the largest oil companies in the
world. Approximately 22,000 Shell employees are
based in the U.S. The U.S. head office is in Houston,
Texas. Shell Oil Company, including its consolidated
companies and its share in equity companies, is one
of America’s largest oil and natural gas producers.
Shell is the market leader through approximately
25,000 Shell-branded gas stations in the US which
also serve as Shell's most visible public presence.
Shell Oil Company is a 50/50 partner with the Saudi
Arabian government-owned oil company Saudi
Armco in Motiva Enterprises, a refining and
marketing joint venture which owns and operates
three oil refineries on the Gulf Coast of the United
States.



 Oils
 Lubricants
 Shell Card
Shell is the number one global lubricant supplier,
delivering market-leading lubricants to consumers
in over 100 countries. Shell Lubricants brings world-
class technological insights to its products, offering
you the best formulations for your vehicle. Shell can
provide a full range of lubricants including synthetic
high-performance products. Shell oils and lubricants
work to clean and protect your engine, help to
prolong its life, improve its performance and
contribute to its fuel efficiency.




Shell Local Business Fuel Card is a safe and secure
way to pay for fuel without the need for your
drivers to handle petty cash.
And since it’s a cashless payment service managed
centrally by us, you only have to deal with a single
invoice. No more manual spreadsheets and piles of
receipts.




Department
 Shell Aviation
 Shell Bitumen
 Shell Global Solutions
 Shell Lubricants
 Shell Trading and Shipping









Analysis




Shell approach is to integrate economic,
environmental and social considerations into
decision-making; and balancing short-term
priorities with longer-term needs.














Balance Sheet












Short term salvage ratios:

1- Current ratio = current assets / current liabilities

Year 2011 2012 2013
PSO 1.14 1.6 1.5
Shell Pakistan 0.84 0.90 0.88

If we compare PSO and Shell Pakistan it is clear that
PSO is in better position to pay its liabilities because
PSO has 1.4 rupees on average to pay its 1 rupee
liability.

2- Quick ratio = current assets- inventories / liabilities
Year 2011 2012 2013
PSO 0.8 .73 0.85
Shell Pakistan 0.43 0.46 0.43

Both companies have excess of inventory that
disable them to pay 1 rupee of liability on average
PSO have 0.8 rupee to fulfill its one rupee liability
and shell have 0.45 rupee for one rupee of liability.



Long term salvage ratios:

1- Total debt ratio = total debt / total assets

Year 2011 2012 2013
PSO 6.5% 9.3% 13%
Shell Pakistan 22% 16% 27%

Shell Pakistan has average 22% debt financing and
PSO has 8 % on average which shows goodness of
Pakistan state oil.

2- Debt to equity ratio = total debt / total equity
Year 2011 2012 2013
PSO 44% 60% 90%
Shell Pakistan 106% 95% 197%

Financial manager think that a good company is
that in which debt to equity ratio should be 60 %
equity and 40 % debt but in upper both cases PSO
has maximum 90 % debt means PSO has 1.9 rupee
from debt if company has 1 rupee from equity. But


in case of Shell it is quite surprising to see shell has
minimum debt to equity ratio is 95% and maximum
it has 197 % in the year 2013.





In our conclusion, we would like thank Shell Company to provide us
with their company’s personal details regarding their accounts section.
By working on a project like this, we have enhanced our knowledge
regarding our subject, and by doing this practically, we have also gained
practical knowledge of how to record and maintain the accounts of any
company.