A PROJECT REPORT ON
³WORKING CAPITAL MANAGEMENT OF OIL AND NATURAL GAS CORPORATION (ONGC)´ PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTERS IN MANAGEMENT STUDIES MUMBAI UNIVERSITY
Submitted By ANKUR JAIN (MMS- Finance)
MET¶s INSTITUTE OF MANAGEMENT
MET COMPLEX, BANDRA RECLAMATION, BANDRA(W) MUMBAI-400050
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Student¶s declaration Acknowledgement Executive Summary Company profile Methodology used Concept of working capital Factors Determining Working Capital Requirements Working Capital Policy Current Assets & Current Liabilities Inventory Management Cash Management Receivables Management Ratio Analysis Suggestion Bibliography 3 4 5 6 8 9 12 16 19 20 23 26 27 31 32
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I hereby declare that the project report entitles:
µWORKING CAPITAL MANAGEMENT IN ONGC¶
ONGC office, Bandra kurla complex, Mumbai, submitted in partial fulfillment at the requirements for the degree of Master of Management Studies (M.M.S.) to MET¶s Institute of Management Mumbai is my original work and not submitted for the award of any other degree, diploma, fellowship or similar title or prize.
Date : Place :
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With warm regards, I would like to thanks Mr. CHANDRANATH S.I, Chief Manager ONGC, for the encouragement and guidance continuously provided by him to undergo my vocational training in this esteemed organization. The present project work; a study of working capital management in ONGC, deals with the problem faced in financial management and gives the solution of the same, which is basic for organization whether Govt. Public or Private sector.
I owe my special thanks to Mr. subir tete for providing valuable ideas and suggestions which enabled me to prepare this report.
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Working Capital is the lifeblood and controlling nerve of an organization. ONGC being a large organization, dealing in exploration and exploitation of hydrocarbons requires a large amount of funds. The complexity and risks involved in exploration business like whole procedure of search of oil, geographical and physical conditions, day to day reduction in oil reserves and many other things tend to maintain a substantial amount of working capital. Hence there is a need for proper management of working capital, so that day by day operations do not hamper; at the same time there would not be any idle investment in working capital.
In this project, a modest attempt has been made to analyze the trend in working capital of ONGC during last five years i.e. from 2004-05 to 2008-09.
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Oil and natural gas corporation ltd., a ³Maharatana´ public sector enterprise is one of the leading enterprises in the country with significant contributors to industrial and economic growth. ONGC is in the business of exploration and production (E&P) of hydrocarbons. ONGC is India¶s highest profit making company with record profit exceeding Rs. 16000 crores in the financial year 2009. ONGC has its headquarters at Dehradun and registered office at New Delhi. Its operation is spread all over the country-east to west and north to south and employees over 33000 trained man power. ONGC undertakes socio-economic activities in area where it operates as a part of its social responsibility. The activities include, grants in aid to agencies educational institutes, social welfare organizations development of infrastructure by constructing roads, bridges and plantation of trees etc. ONGC has two subsidiaries as ONGC VIDESH LTD. (OVL) and MANGALORE REFINERY AND PETROCHEMICAL LTD. (MRPL).
ONGC ranks as the Numero Uno Oil & Gas Exploration & Production (E&P) Company in Asia, as per Platts 250 Global Energy Companies List for the year 2008. ONGC ranks 23rd Leading Global Energy Major amongst the ³Top 250 Energy Majors of the World in the...
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