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iv. The use of debt should be within the capacity of a firm. The firm
should be in a position to meet its obligation in paying the loan and
interest charges as and when due.
ix. The debt should be used to the extent that it does not threaten the
solvency of the firm.
Indian Oil Corporation Ltd. is currently India's largest company by sales with
a turnover of Rs.4,38,710 crore (USD 65.4 billion) and profit of Rs. 19,106 crore
(USD 2.8 billion) for fiscal 2016-17.
Indian Oil Corporation Ltd. is the highest ranked Indian company in the
Prestigious Fortune ‘Global 500’. It is ranked at 168th position in 2017. It is also
the 20th largest petroleum company in the world. Indian Oil and its
subsidiaries today accounts for 49% petroleum products market share in India.
Indian Oil group has sold 83.5 mn tonnes of Petroleum including 10 mn
tonnes of natural gas in the domestic market and in the yr 2016-17.
IOCL GROUP
IOCL Group consists of Indian Oil Corporation Ltd. and the following
subsidiaries:
Lanka IOC Ltd
Indian Oil (Mauritius) Ltd.
IOCL Middle East FZE
Indian Oil Technologies Ltd.
Chennai Petroleum Corporation Ltd. (CPCL)
Bongaigaon Refinery & Petrochemicals Ltd (BRPL)
Group Companies
IndianOil is currently metamorphosing from a pure sectoral company with dominance in
downstream in India to a vertically integrated, transnational energy behemoth. The
Corporation is already on the way to becoming a major player in petrochemicals by
integrating its core refining business with petrochemical activities, besides making large
investments in E&P and import/marketing ventures for oil & gas in India and abroad.
Name Business
Indian Subsidiaries
Foreign Subsidiaries
IOC Middle East FZE, UAE Lube blending & marketing of lubricants
CAPITAL STRUCTURE
A mix of a company's long-term debt, specific short-term debt, common
equity and preferred equity . The capital structure is how a firm finances its
overall operations and growth by using different sources of funds.
Debt comes in the form of bond issues or long-term notes payable, while
equity is classified as common stock, preferred stock or retained earnings.
Short-term debt such as working capital requirements is also considered to
be part of the capital structure. But the IOCL does not issue the preference
shares and debenture to the public of the company
COMPONENTS OF CAPITAL STRUCTURE:
SHARE CAPITAL
CONSOLIDATED FINANCIAL STATEMENTS
For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other
equity reserves
attributable to the equity holders of the parent. The primary objective of the Company’s capital management is to
maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and
requirements. To maintain or
adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders
or issue new shares.
The Company monitors capital using debt equity ratio, which is borrowings divided by Equity. The Company’s endeavour is
to keep the debt
equity ratio around 1:1.