A

Project Report

On

“Commodity Analysis and interpretation of the Gold, Silver, Crude,

and Natural Gas research in stock market”

At

"BMA WEALTH CREATORS LTD"

(STOCK BROKING COMPANY)

By

“Vinod .D. Pichika"

Under the guidance of

"Nilaya Murthy"

Submitted to

"University of Pune" In partial fulfillment of the requirement for the award of

the degree of Master of Business Administration (MBA)

Through Impulse Education Society‟s Moment Institute of Business

Management, Pune-411 46
 A

Project Report

ACKNOWLEDGEMENT

Concentration, dedication, hard work and application are essential but not only factor
to achieve desired goal, these must be supplemented by guidance and co-operation of
the people to make it success.

The following project is the result, not only of my hard work, but also of the help
received from my seniors in the company, so it is my duty to record my sincere thanks
for their great help.

I deeply thank Mr. Rakesh Sonavane (Regional Head) for giving me an opportunity to
work on this project, in successfully emerging organization called “BMA Wealth
Creators ltd”.

I express my sincere regards and deep sense of gratitude to Mibm College and my
project guide Prof. Nilaya Murthy whose aspiring explanation has enable me to
complete this project work.

I am also thankful to our Principal Prof. Vijay Karkhanis who developed the votes of
confidence and shown the best possible path.
 DECLARATION

I, MR. Vinod .D. Pichika, student of Impulse Education Society‟s Moment

Institute of Business Management studying in MBA-2nd year solemnly declare that
the project report entitled „Commodity Analysis and interpretation of the gold,
silver, crude, Natural Gas research in stock market‟ at BMA WEALTH
CREATORS LTD, PUNE was carried out by me in partial fulfillment of MBA
Program as per the guidelines of Pune University and its rules and norms.

It‟s my original work and is not submitted to any other organization for any other
purpose.

Vinod .D. Pichika

 Executive Summary / Abstract

Executive summary:

This project has been a great learning experience for me; at the same time it
gave me enough scope to implement my analytical ability. This project as a
whole can be divided into two parts:

 The first part gives an insight about the Commodity and its various
aspects.
One can have a brief knowledge about Commodity market
All the topics have been covered in a systematic way. The language
has been kept simple so that even a layman could understand. All the
data have been well analyzed with the help of charts and graphs.
 The second part consists of data and their analysis collected through a
sport price on the terminal. It covers the topic “Commodity Analysis‟‟.
The data collected has been well organized and presented.
Hope the research findings and conclusions will be of use. It has also
covered why people don‟t want to invest in Commodity? The advisors
can take further steps to approach more and more people and indulge
them for taking their advices to invest in Commodity.
 The project study of Commodity market was undertaken with the view
to get an insight into the Commodity market and to study the trading
strategies using futures and options. In this report, only some scripts
(Gold, Silver, Crude, and Natural Gas) have been considered for
study. This project not only gives a detailed idea about futures and
options in the Commodity market but also serves the purpose of
building awareness among the readers about the market
Introduction

Gold Technical Analysis

Gold closed lower on Thursday as it consolidates above the 20-day moving

average crossing. The high-range close sets the stage for a steady
opening on Friday. Stochastics and the RSI are neutral-to-bullish
signalling that sideways-to-higher prices are possible near-term. Closes
below last Thursday's low crossing are needed to confirm that a short-
term top has been posted. Closes above August's high crossing are
needed to renew this year's rally.

Silver Technical Analysis

Silver closed lower due to profit taking on Thursday as it consolidated

some of this week's rally. The mid-range close sets the stage for a steady-
to-lower opening on Friday. Stochastics and the RSI remain neutral-to-
bullish signalling that sideways-to-higher prices are possible near-term. If
it extends the rally off this month's low, the 62% retracement level of this
month's low crossing is the next upside target. Closes below the 20-day
moving average crossing would temper the near-term friendly outlook.

Crude Oil Technical Analysis

Crude Oil closed slightly higher on Thursday as it extends the rally off
August's low. The mid-range close sets the stage for a steady-to-higher
opening on Friday. Stochastics and the RSI remain bullish signalling that
sideways-to-higher prices are possible near-term. Closes above the
reaction high crossing are needed to confirm that a low has been posted.
If it renews this summer's decline, the 75% retracement level of the
2009-2011-rally crossing is the next downside target.

Natural Gas Technical Analysis

Natural Gas closed lower on Thursday as it consolidated some of

Wednesday's rally. The mid-range close sets the stage for a steady-to-
higher opening when Friday's night session begins trading. Stochastics
and the RSI are bullish signalling that sideways-to-higher prices are
possible near-term. If it extends this week's rally, the reaction high
crossing is the next upside target. Closes below the 10-day moving
average crossing would temper the friendly outlook.
 Index.

1 Bma Wealth Creators ltd. Profile

2 Objectives of the Project Work.

3 Scope of the study

4 Research Methodology.

5 Theoretical background

6 Data Collection

7 Data Analysis

8 Day trading levels, statics and Interpretation of the data (Gold, Silver,
Crude, Natural Gas)

9 Conclusions.

10 Recommendations

11 Limitations

12 Findings

13 Bibliography

14 References
 Objectives of the Project Work:

 As name of project

COMMODITY Analysis and interpretation of the Gold, Silver, Crude,

and Natural Gas

Research in stock market

 A security is a fungible, negotiable instrument representing financial value.

Securities are broadly categorized into debt securities (such as banknotes,

bonds and debentures); equity securities, e.g., common stocks; and derivative
(finance) contracts, such as forwards, futures, options and swaps

 In business and finance, a share of STOCK (also referred to as equity share)

means a share of ownership in a corporation (company)

 In economics, typically, the term MARKET means the aggregate of possible

buyers and sellers of a thing and the transactions between them.

The term “market” is sometimes used for what are more strictly
exchanges, organizations that facilitate the trade in financial securities,
e.g., a stock exchange or commodity exchange.

 A STOCK MARKET is a public market for the trading of company stock

and derivatives at an agreed price; these are securities listed on a stock
exchange as well as those only traded privately.

1. To study the operational procedure of a broking firm.

2. To learn the fundamental and technical analysis for determining the intrinsic
value of share
3. To understand where to invest in the market.
4. To know detailed idea about functioning of futures & options market.
5. To learn about different Arbitrage & Hedging strategies.
 Scope of the study

Scope of the stock market is very large; no one can know the stock market in
months or year. Even a 20-25 year experienced person cannot understand the
stock market in full extent. Here I just tried to clear concepts of the stock
market to a very small extent.

Scope of the study is to understand the operational procedure of a broking

firm, to analyse the various terms in stock market. To analyse the techniques
of fundamental and technical analysis in detail.

The scope of this project is limited to the study of the Indian commodity
market. Under the commodity market only some scripts have been considered
in this project. In this project report, futures and options have been studied in
detail.

The project also covers various strategies such as hedging, spread trading, and
Arbitrage which can be used in the commodity market. Futures contracts are
extensively used as a hedging tool to minimize the risk arising out on account
of price changes in the market.
 RESEARCH METHODOLOGY

Methodology of the study

During my project, I collected data through various sources primary & Secondary.

Primary source includes

 Discussion with Branch Manager

 Discussion with experts

 Live trading in the firm.

 For the operational procedure I visited the every Department of the Broking
Firm & Collected the related information.

Secondary Source includes:

For the various Fundamental & Technical Analysis I collected the Data from the
various websites.

The data analysis was done by using different statistical tools.

Market Segments:

1. Primary Market

The primary is that part of the capital markets that deals with the issuance of
new securities. Companies, governments or public sector institutions can
obtain funding through the sale of a new stock or bond issue.

2. Secondary Market

The Secondary market is the financial market for trading of securities that
have already been issued in an initial private or public offering.

Buying and Selling of shares is called SHARE TRADING

Mainly there are TWO WAYS of doing share trading.

1. Offline Share Trading

Doing share trading with the help of broker or through phone is called Offline
trading.

2. Online Trading

Doing share trading with help of computer, internet connection and with
trading/de mat account is called Online Trading.
 SECURITY RESEARCH is a discipline with the financial services industry.
Securities research professionals are known most generally as “analysts”,
“research analysts” or “security analysts”; all the foregoing terms are
synonymous. Security analysts are commonly divided between the two basic
kinds of securities: equity analysts (researching stocks and their issuers) and
fixed income analysts (researching bond issuers). However, there are some
analysts who cover all of the securities of a particular issuer, stock and bonds
alike.
 FUNDAMENTAL ANALYSIS is the cornerstone of investing, In fact, some
would say that you aren‟t really investing if you aren‟t performing
fundamental analysis. The biggest part
of fundamental analysis involves delving into the financial statements. Also
known as quantitative analysis, this involves looking at revenue, expenses,
assets, liabilities and all the other financial aspects of a company.
Fundamental analysts look at this information to gain insight on the
company‟s future performance. Here we deal about the balance sheet, income
statement, cash flow statement and how they all fit together.

In fundamental analysis there is Three are considered These are following:

 Economic Analysis

 Industry Analysis

 Company Analysis

 Technical Analysis is a security analysis technique that claims the ability to

forecast the future direction of prices through the study of past market data,
primarily price and volume. In its purest form, technical analysis considers
only the actual price and volume behavior of the market or instrument.
Technical analysts, sometimes called “chartists”, may employ models and
trading rules based on price and volume transformations, such as the relative
strength index, moving average, regressions, inter-market and intra-market
price correlations, cycles or, classically, through recognition of chart patterns.
 Theoretical background
COMMODITIES

How Commodity Trading Started …..

Commodity markets have existed for centuries around the world because producers
and buyers of foodstuffs and other items have always needed a common place to
trade.

What we know as the Commodity market of today came from some humble
beginnings. Trading in futures originated in Japan during the 18th century and was
primarily used for the trading of rice and silk. It wasn't until the 1850s that the U.S.
started using futures markets to buy and sell commodities such as cotton, corn and
wheat.

The first organized grain futures trading in the U.S. began in places such as New York
City and Buffalo, but the development of “modern” futures, which are a unique type
of forward agreement, began in Chicago in the 1840s.

Before the North American futures market originated some 150 years ago, farmers
would grow their crops and then bring them to market in the hope of selling their
commodity of inventory. But without any indication of demand, supply often
exceeded what was needed, and unpurchased crops were left to rot in the streets.
Conversely, when a given commodity such as Soybeans were out of season, the goods
made from it became very expensive because the crop was no longer available, lack
of supply

With the construction of the railroads, Chicago began to emerge as a center for
transportation between Midwestern producers and east coast population centers.

The city was a natural hub for trade, but the trading that took place there was
inefficient and unorganized until a group of Chicago-based business men formed the
Board of Trade of the City of Chicago in 1848. The Board was a member-owned
organization that offered a centralized location for cash trading of a variety of goods
as well as trading of forward contracts. Members served as brokers who facilitated
trading in return for commissions.
As trading of forward contracts increased, the Board decided that standardizing those

contracts would streamline the trading and delivery processes.

Instead of individualized contracts, which took a great deal of time to negotiate and

fulfill, people interested in the forward trading of corn at the Board, for example, were

asked to trade contracts that

were identical in terms of quantity, quality, delivery month and terms, all as

established by the exchange. The only thing left for traders to negotiate was price and

the number of contracts.

They were also different from other forwards in that the bids, offers and negotiated

prices of the trades were made public by the exchange. This practice established

futures exchanges as venues for “price discovery” in U.S. markets.

Today's commodity market is a global marketplace not only for agricultural products,

but also currencies and financial instruments such as Treasury bonds and securities

futures. It's a diverse marketplace of farmers, exporters, importers, manufacturers and

speculators. Modern technology has transformed commodities into a global

marketplace where a Kansas farmer can match a bid from a buyer in Europe.

The usefulness of futures trading became apparent, and a number of other futures

exchanges were established throughout the country in the decades that followed. The

Chicago Butter and Egg Board was founded in 1898 and evolved into Chicago

Mercantile Exchange (CME) in 1919. Futures exchanges also opened in Milwaukee,

New York, St. Louis, Kansas City, Minneapolis, San Francisco, Memphis, New

Orleans and elsewhere. Chicago, however, became the most influential and

predominant location for futures trading in the U.S.

 How the Market Works
The futures market is a centralized market place for buyers and sellers from around
the world who meet and enter into commodity futures contracts. Pricing mostly is
based on an open cry system, or bids and offers that can be matched electronically.
The commodity contract will state the price that will be paid and the date of delivery.
Almost all futures contracts end without the actual physical delivery of the
commodity.
What exactly is a commodity Contract? Let's say, for example, that you decide to
subscribe to satellite TV. As the buyer, you enter into an agreement with the company
to receive a specific number of channels at a certain price every month for the next
year. This contract made with the satellite company is similar to a futures contract, in
that you have agreed to receive a product or commodity at a later date, with the price
and terms for delivery already set. You have secured your cost for now and the next
year, even if the price of satellite rises during that time. By entering into this
agreement, you have reduced your risk of higher prices.
That's how the futures market works. Except instead of a satellite TV provider, a
producer of wheat may be trying to secure a selling price for next season's crop, while
a bread maker may be trying to secure a buying price to determine how much bread
can be made and at what profit. So the farmer and the bread maker may enter into a
futures contract requiring the delivery of 5,000 bushels of grain to the buyer in June at
a price of $4 per bushel. By entering into this futures contract, the farmer and the
bread maker secure a price that both parties believe will be a fair price in June. It is
this contract that can then be bought and sold in the commodity market.
A futures contract is an agreement between two parties: a short position, the party
who agrees to deliver a commodity, and a long position, the party who agrees to
receive a commodity. In the above scenario, the farmer would be the holder of the
short position (agreeing to sell) while the bread maker would be the holder of the long
(agreeing to buy).
In every commodity contract, everything is specified: the quantity and quality of the
commodity, the specific price per unit, and the date and method of delivery. The price
of a futures contract is represented by the agreed - upon price of the underlying
commodity or financial instrument that will be delivered in the future
Profit And Loss - Cash Settlement The profits and losses of futures depend on the
daily movements of the market for that contract and are calculated on a daily basis.
 Hedging & Speculators

Long Short

Secure a price now to protect Secure a price now to protect

Hedger
against future rising prices against future declining prices

Secure a price now in Secure a price now in

Speculator
anticipation of rising prices anticipation of declining prices

Economic Importance of the Futures Market

Because the commodity market is both highly active and central to the global

marketplace, it's a good source for vital market information and sentiment indicators.

Price Discovery - Due to its highly competitive nature, the futures market has

become an important economic tool to determine prices, based on today's and

tomorrows estimated amount of supply and demand. Futures market prices depend on

a continuous flow of information from around the world and thus require a high

amount of transparency. Factors such as weather, war, debt default, refugee

displacement, land reclamation, and deforestation can all have a major effect on

supply and demand, and hence the present and future price of a commodity. This kind

of information and the way people absorb it constantly changes the price of a

commodity. This process is known as price discovery.

Risk Reduction - Futures markets are also a place for people to reduce risk when

making purchases. Risks are reduced because the price is pre-set, therefore letting

participants know how much of the commodity they will need to buy or sell. This

helps reduce the ultimate cost to the retail buyer, because with less risk there is less

chance of manufacturers hiking up prices to make up for profit losses in the cash

market.
 Why trading in grains are so important????

Let's take a look at a few of the grains that have futures contracts: wheat is used to

make flour, bread, and crackers. Its byproduct is used to feed livestock, and it's also

used by manufacturers to make glues and other adhesives.

Corn is used for food for human, as well as livestock and poultry. It's also used to

make cornstarch, margarine, and sweeteners. Ethanol is made from corn, as are some

adhesives in the manufacturing world.

Rice feeds billions of people around the globe every day. It's eaten in its original form

as a food and as a cereal. The byproducts of rice are used to make fertilizers and other

products.

Soybeans are used as a food and to make oils that are found in margarine and salad

dressing, just to name a few products. They are also used to make soy milk and tofu.

Soybeans are also manufactured into ink, diesel fuel, adhesives and some fabrics.

Grains are valuable commodities that are needed to feed humans as well as livestock

and poultry. They are also valuable in making products that we use everyday. Because

of this, there is a great demand for grains.

 Regulation of commodity markets

Country Exchange Regulator

U.S.A  Chicago Board of Trade Commodity Futures Trading

Commission
 Chicago Mercantile
Exchange

 New York Board of Trade

 New York Mercantile

Exchange

 Kansas City Board of Trade

India  National Commodity & Forward Markets Commission

Derivatives Exchange

 National Multi-Commodity
Exchange

U.K  London Metal Exchange Financial Services Authority

(1986)
 Euro next London
International Financial
Futures Exchange

China  Dali an Commodity China Securities Regulatory

Exchange Commission

 Shanghai Futures Exchange

Japan  Central Japan Commodity The Ministry of Agriculture,

Exchange Forestry and Fisheries of
Japan
 Tokyo Commodity Exchange
 Major Commodity Exchange

A commodities exchange is an exchange where various commodities and derivatives

products are traded. Most commodity markets across the world trade in agricultural
products and other raw materials (like wheat, barley, sugar, maize, cotton, cocoa,
coffee, milk products, oil, metals, etc.) and contracts based on them. These contracts
can include spot prices, forwards, futures and options on futures. Other sophisticated
products may include interest rates, environmental instruments, swaps, or ocean
freight contracts.

In today's world of specialization, we see that domestic and international commodity

exchanges have also grabbed on to the concept of focusing in on an area of
expertise. The most robust commodity exchanges in the world today and their
specialty commodities include:

 New York Board of Trade (NYBOT) - which includes coffee, cocoa, cotton,
orange juice and sugar?

 New York Mercantile Exchange (NYMEX) - which specializes in energy

products such as crude and heating oil, gasoline, natural gas, coal, propane as
well as metal such as gold, silver, platinum, copper, aluminum and palladium.

 Chicago Board of Trade (CBOT) - which specializes in bonds and more

traditional commodities such as corn / maize, oats, rough rice, soybeans,
soybean meal, soybean oil, and wheat?
 Chicago Mercantile Exchange (CME) - which specializes in bond futures
and more traditional commodities such as live and feeder cattle, lumber, beef,
boneless beef trimmings, lean hogs, frozen pork bellies, fresh pork bellies,
milk and butter.

 London Metal Exchange (LME) - which specializes in the trading of metals

such as copper, lead, zinc, aluminum, tin and nickel?

 London Commodity Exchange / Euro next - which specializes in the trading

of commodities such as grains and meat.

 ICE Futures - the International Petroleum Exchange specializes in

commodities such as crude and heating oil, natural gas and unleaded gasoline

 Shanghai Metal Exchange (SHME) - one of the national level futures

exchanges of China was established on 28 May 1992. SHME is a non-profit,
self-regulating corporation. The exchange was created for trading in non-
ferrous metals and currently contracts for several non-ferrous metals including
copper, aluminum, lead, zinc, tin, and nickel.

 Kansas Board of Trade - Kansas Board of Trade in US specializes in hard

red winter wheat. Hard winter wheat constitutes the maximum of US
production. This exchange is benchmark for bread wheat prices.

 Tokyo Commodity Exchange (TOCOM) - Tokyo Commodity Exchange

(TOCOM) is the largest exchange in Japan and second largest commodity
exchange in the world for futures and options. Crude oil, gasoline, kerosene,
gas oil, gold, silver, aluminum, platinum and rubber are the commodities that
are actively traded.

 London International Financial Futures and Options Exchange (LIFFE) -

London International Financial Futures and Options Exchange (LIFFE) also
know as Euro next. Among actively commodities trades are cocoa, Robusta
coffee, corn, potato, rapeseed, sugar and wheat. Robusta coffee prices are
determined through this exchange.

 Dalian Commodity Exchange - Dalian Commodity Exchange in China trades

in corn and soybean. The exchange is planning to introduce futures and
options in crude oil, power, steel and plastic.
 DATA COLLECTION

ONGC (Oil & Natural Gas Corporation):-

A) Fundamental Analysis:-
Security Name : ONGC
Face Value: 10.00
52 Week High Price: 1346.00
52 Week Low Price: 97.35

About ONGC Ltd

Oil and Natural Gas Corporation Limited (ONGC) (incorporated on June 23,
1993) is an Indian Public Sector Petroleum Company. It is a Fortune Global 500
company, and contributes 77%of India‟s crude oil production and 81% of India‟s
natural gas production. It is the highest profit making corporation in India. It was set
up as a commission on August 14, 1956. Indian government hold 74.14% equity stake
in this company.ONGC is engaged in exploration and production activities. It is
involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of
India. It produces about 30% of India‟s crude oil requirement. It owns and operates
more than 11,000 kilometers of pipelines in India. Until recently (March 2008) it was
the largest company in terms of market cap in India.
In August, 1956 Oil and Natural Gas Commission was formed, raised from a mere
Directorate status to Commission, it had enhanced powers. In 1959 these powers were
further enhanced by converting commission into a statutory body by an act of Indian
Parliament. Major functions of ONGC according to this provision were to plan,
promote, organize and implement programs for development of Petroleum Resources
and the production and sale of petroleum and its products. Since its foundation stone
was laid, ONGC is transforming India‟s view towards Oil and Natural Gas by
emulating the country‟s limited upstream capabilities in to a large viable playing field.
ONGC< since 1959, has made its presence noted in most parts of India and in
overseas territories. ONGC found new resources in Assam and also established the
new oil province in Cambay basin (Gujarat). In 1970 with the discovery of Bombay
High (now known as Mumbai High), ONGC went offshore. With this discovery and
subsequent discovery of huge oil fields in the Western offshore, a total of 5 billion
tones of hydrocarbon present in the country were discovered. The most important
contribution of ONGC, however, is its self-reliance and development of core
competence in exploration and production activities at a globally competitive level.
MANAGEMENT / PROMOTERS

Mr.R.S.Sharma Who is Chairman and Managing Director of the ONGC and

following are the Directors of the ONGC.

Management – ONGC
Name Designation
A K Hazarika Chairman and Managing director
D K Sarraf Director (Finance)
Sudhir Bhargava Director
S S Rajsekar Director
Santosh Nautiyal Director
R S Butola Director
D Chandrasekharam Additional Director
Usha Thorat Additional Director
Arun Ramanathan Additional Director
Designation
Name
U N Bose Director
S Vasudeva Director
L M Vas Director
S Balachandran Director
Anita Das Director
S V Rao Director
K S Jamestin Director (Human Resources)
Deepak Nayyar Additional Director
SWOT ANALYSIS OF ONGC LTD.
Strength
ONGC have the leading market share in India.
Huge and strong infrastructure.
Technological advancement that were implemented over the last few years.
ONGC have the majority of the oil field in India and they own the largest oil field in
India. Bombay High.
Weakness
ONGC not differentiated enough and diversified enough
Weak presence in global market due to high competitive environment with respect to
oil and gas exploration.
Opportunities:
The overall gas production is set to double within 3 to 4 years thus demand meeting
the supply. This may result in government deregulating the natural gas prices.
Diversification into the downstream business to have a competitive advantage.
Going global in exploration and refining area will widen the exposure.
Threats
GOI continually forces ONGC to focus just on one industry and not let them
diversify.
GOI are stopping ONGC from bidding on other outside sources of oils fields.
Now renewable, sustainable and non toxic forms of power generation as substitute
form of nuclear energy like wind energy.
Capital requirements are very large and the industry is hitting the mature stage.

Financials (2010-2011)
ONGC posted a net profit of Rs.161.26 billion despite volatile oil markets and crude
prices.
Net worth Rs.781 billion
Practically Zero Debt Corporate
Contributed over Rs.280 billion to the exchequer.
DATA ANALYSIS
Fundamental and Technical Analysis

COMPARISION OF THREE YEARS FINANCIAL DATA:-

Particulars Mar 2009 Mar 2010 MAR 2011

Sales volume (in million) 601373 639493 1061747

Growth (%) 5.68 6.33 6.98

Profit Before Tax (Rs.In million) 252346 239807 304413

Profit After Tax (Rs.In million) 167016 161263 194035

Capital employed (Rs.in Million) 604844 640583 894339

Return on capital employed % 53 49.9 50.35

Net worth 604844 640583 894339

Return o Net worth (%) 23.87 20.7 22.3

Dividend payout ratio 47.94 42.44 43.1

Dividend per share (In Rs./share) 32 32 32

Earning per share 78.09 75.4 90.72

 SALES VOLUME

1500000

1000000
Rs in million
Sales Volume(in
500000
million)

0
2009 2010 2011
Year

INTERPRETATION

As there shown in graph the sales volume is increasing continuously from previous
three years due to increase in production capacity and joint venture with foreign
companies.
 GROWTH SALES:-

Growth

Growh(%),
6.4 Mar-10, 6.33
Growh(%),
6.2 Mar-11, 6.11

5.8 Growh(%), Growh(%)

%

Mar-09, 5.68
5.6

5.4

5.2
2009 2010 2011

Year

INTERPRETATION:

Growth in sales volume is 5.68% in 2008 where Oil prices are higher and then it has
sharp decline causes to low demand in market led to reduction in growth to 6.33% in
2011.
 PROFIT BEFORE TAX AND PROFIT AFTER TAX

PBT & PAT

400000
300000
Rs in
million 200000 Profit before tax
100000 Profit after tax

0
2009 2010 2011
year

INTERPRETATION:-

Despite volatile oil markets and crude oil prices, ONGC company as earned a net
profit of Rs.194035 million in 2011 which is more as compare to previous year.
 COMMODITY PROFILE– CRUDE OIL
Though crude oil is found in ancient time, people knew about it more as a medicine,
not as a fuel. It was only in 1859 that modern day oil industry was born. People
started using oil initially in the form of kerosene, lubricants etc. In 1889, Germany‟s
Daimler and Wilhelm Maybach first built one gasoline engine, and it was the
beginning of the modern day automobile industry.

Crude oil is a mixture of hydrocarbons that exists in a liquid phase in natural

underground reservoirs. The liquid substance derived its material from „the
fossilization of plants and animals‟. It takes million of years for that fossilized plant
an animal to be converted into crude oil substance. Crude oil is the most important
energy carrier at a global scale and since all kinds of transport rely heavily on oil, the
future availability of crude oil is of paramount interest. Crude oil is classified by the
location of its origin and often by its relative weight or viscosity (light, intermediate
or heavy). Refiners may also refer to it as `sweet‟, which means it contains relatively
little sulphur, or as `sour‟, which means it contains substantial amounts of sulphur and
requires more refining in order to meet current product specifications. The number of
carbon atoms determines the oil's relative `weight‟ or density. Gases generally have
one to four carbon atoms, while heavy oils and waxes may have 50, and asphalts,
hundreds.

Usage
Common usage of crude oil or petroleum can be classified as follows: ethane, diesel
fuel (petrol-diesel), fuel oils, gasoline (petrol), jet fuel, kerosene and liquefied
petroleum gas (LPG). About 35 percent of the world‟s primary energy consumption is
supplied by oil, followed by coal with 25 percent and natural gas with 21 percent.
Transport relies to well over 90 percent on oil, be it transport on roads, by ships or by
aircrafts. Therefore, the economy and the lifestyle of industrialized societies rely
heavily on the sufficient supply of oil.

Crude Oil Refinery

An oil refinery is an industrial process plant where crude oil is processed and refined
into more useful petroleum products, such as gasoline, diesel fuel, asphalt base,
heating oil,
kerosene and liquefied petroleum gas. Most of all refineries perform three basic steps
such as separation, conversion and treatment.
CRUDEOIL DAY TRADING LEVELS AND STATICS
(Record Updated for-Aug/05/2011)
INTRADAY LEVEL OF CRUDEOIL PROBABLE HIGH PROBABLE LOW

R4 4134.4 BULL 4299.0 3677.0

R3 4026.1 UP BREAKOUT 4175.0 3801.0

LEVEL FOR LEVEL FOR

R2 3986.8 STOP LEVEL
LONG SHORT

R1 3961 SELL 4174.0 4029.0

PIVOT 3955 5 DAY HIGH 4356.0

S1 3815.3 BUY 5 DAY LOW 3870.0

S2 3789.5 STOP AVG VOLUME 21402

DOWN BREAK
S3 3750.4 LAST DAY Strong bear
OUT

S4 3642.6 BEAR HIGH 4107.0

TRADING POSTION SELL LOW 3870.0

Interpretation of the data.

CRUDEOIL TREND & INTRADAY LEVELS
Overall trend of the Crude oil is bearish for medium-long term.
Currently Crude oil is in strong downtrend and the trend is supported with good
volume The open interest is not increasing with trend.
In last few days volume based selling happened in the Crude oil Noting point is
selling at lower levels seems decreasing.
The oscillator is showing SELL signal For short term Crude oil is in SELL position
and closed below 1 month low with volume signals down breakout

CRUDEOIL SUPPORT AND RESISTANCE

Immediate support for Crude oil is 3855.Resistance for the Crude oil is 4249-4306-
4312-4376-4515-

CRUDEOIL- SHORT TERM TREND

Currently Crude oil is in HOLD SHORT position Crude oil is in sell mode sell below
3815.3 buy only above 4356.0 Yesterday the selling was with volume so risk takers
can go for shorting at current rate with stop at 4356.0
The Crude oil is now trading in highly oversold level.
The Crude oil is now trading in highly oversold level.
The oscillator is showing SELL signal
CRUDEOIL-INTRADAY TREND
Sell if open below 3815.3 with stop loss at 3961 or sell below 3750.4Buy is not
advised till it cross 4026.1

Crude Oil Summer Trend

Quick Technical Analysis - Crude oil hit its summer objective in June by peaking
just shy of $74, following which it made a lower high at 73, and confirmed the
downtrend on break below 66.
The current action is expected to correct the bull run from $35 in December 2008,
with the key consolidation zone of $47.5 to $55 which crude oil is homing in on to
again form a base for the resumption of the rally into 2010.
Therefore we have a price target zone of $47.50 to $55, the question now is how long
will the downtrend last ?
The downtrend appears to be projecting for a trend lower into late August / Early
September, thereafter some sideways action could be in order before the rally gains
traction later in the year.

Crude Oil Conclusion - Downtrend targeting $45 to $50 by start of September 2009,
thereafter base building before the next leg higher.

GOLD DAY TRADING LEVELS AND STATICS

INTRADAY LEVEL OF GOLD PROBABLE HIGH PROBABLE LOW

R4 24423.1 BULL 24376.0 23139.0

R3 24200.7 UP BREAKOUT 24067.0 23449.0

LEVEL FOR LEVEL FOR

R2 24119.9 STOP LEVEL
LONG SHORT

R1 24066.8 SELL 23967.0 23544.0

PIVOT 23936.3 5 DAY HIGH 24205.0

S1 23703.8 BUY 5 DAY LOW 22965.0

S2 23650.8 STOP AVG VOLUME 2091

DOWN BREAK
S3 23570.3 LAST DAY Bull
OUT
S4 23348.8 BEAR HIGH 24205.0

TRADING POSTION BUY LOW 23719.0

Interpretation of the data

GOLD TREND & INTRADAY LEVELS
(Record Updated for-Aug/05/2011)-CMP-23885 The Gold is in perfect uptrend
.Currently Gold is in strong uptrend but volume is unsatisfactory The open interest is
not increasing with trend . Cautious point is buying at higer levels seems decreasing.
The Gold is now trading in overbought level. The Gold is now trading in overbought
level. The oscillator is on SELL signal and Gold is coming down from overbought
level For short term Gold is in HOLD LONG position
GOLD SUPPORT AND RESISTANCE
Support for the Gold is 23238-23144-22939-22570-22439-22283-. Immediate
resistance for Gold is 24302
GOLD- SHORT TERM TREND
Currently Gold is in HOLD LONG position Gold has crossed the high but the trend
was not strong and sellers was at high so for short term better buy above 24200.7 with
stop at 22965.0 The Gold is now trading is approaching overbought level. The Gold is
now trading is approaching overbought level. The oscillator is showing BUY signal
GOLD-INTRADAY TREND
Buy is advised only above 24200.7 with a stop at 23703.8 Below 23570.3 go for
sell and put stop at 24066.8

NATURALGAS DAY TRADING LEVELS AND STATICS

INTRADAY LEVEL OF NATURALGAS PROBABLE HIGH PROBABLE LOW

R4 186.1 BULL 188.0 173.0

R3 182.4 UP BREAKOUT 185.0 176.0

LEVEL FOR LEVEL FOR

R2 181.1 STOP LEVEL
LONG SHORT

R1 180.2 SELL 186.0 181.0

PIVOT 179.6 5 DAY HIGH 188.3

S1 175 BUY 5 DAY LOW 176.6

S2 174.1 STOP AVG VOLUME 31422

DOWN BREAK
S3 172.8 LAST DAY Strong bear
OUT
S4 169.1 BEAR HIGH 184.7

TRADING POSTION SELL LOW 176.6

Interpretation of the data

NATURALGAS TREND & INTRADAY LEVELS
(Record Updated for-Aug/05/2011)-CMP-178 Overall trend of the Naturalgas is
bearish for medium-long term .Currently Naturalgas is in strong downtrend but
volume is unsatisfactory The open interest is not increasing with trend . Noting point
is selling at lower levels seems decreasing. The oscillator is showing SELL signal For
short term Naturalgas is in SELL position and closed below 1 month low with
volume signals down breakout
NATURALGAS SUPPORT AND RESISTANCE
Immediate support for Naturalgas is 176.Resistance for the Naturalgas is 188-192-
193-197-198-
NATURALGAS- SHORT TERM TREND
Naturalgas and closed below 1 week low with volume signals down
breakoutCurrently Naturalgas is in HOLD SHORT position Naturalgas is in
sideways but the trend looks weak so better buy above 188.3 or hold with stop at
176.6 Yesterday the selling was with volume so risk takers can go for shorting at
current rate with stop at 188.3 The Naturalgas is now trading in highly oversold level.
The oscillator is showing BUY signal
NATURALGAS-INTRADAY TREND
Sell if open below 175 with stop loss at 180.2 or sell below 172.8Buy is not advised
till it cross 182.4
SILVER DAY TRADING LEVELS AND STATICS

INTRADAY LEVEL OF SILVER PROBABLE HIGH PROBABLE LOW

R4 62937.5 BULL 61791.0 56177.0

R3 60809.8 UP BREAKOUT 60668.0 57299.0

LEVEL FOR LEVEL FOR

R2 60036.8 STOP LEVEL
LONG SHORT

R1 59528 SELL 61264.0 58545.0

PIVOT 59416 5 DAY HIGH 62384.0

S1 56737.1 BUY 5 DAY LOW 57620.0

S2 56230.3 STOP AVG VOLUME 3139

DOWN BREAK
S3 55460.4 LAST DAY Strong bear
OUT
S4 53341.2 BEAR HIGH 62384.0

TRADING POSTION SELL LOW 57734.0

Interpretation of the data
SILVER TREND & INTRADAY LEVELS
(Record Updated for-Aug/05/2011)-CMP-58130 The Silver is in long- medium-
short-medium- term bull phase .Currently Silver is in strong uptrend but volume is
unsatisfactory The open interest is not increasing with trend .. The oscillator is on
SELL signal and Silver is coming down from overbought level For short term Silver
is in HOLD LONG position
SILVER SUPPORT AND RESISTANCE
Support for the Silver is 57811-57100-55222-55085-.Resistance for the Silver is
59480-59540-
SILVER- SHORT TERM TREND
Currently Silver is in HOLD LONG position Silver has formed new high but the
trend looks weak so better buy above 60809.8 Yesterday the selling was with volume
so risk takers can go for shorting at current rate with stop at 62384.0 The oscillator is
showing BUY signal
SILVER-INTRADAY TREND
Sell if open below 56737.1 with stop loss at 59528 or sell below 55460.4Buy is not
advised till it cross 60809.8

Conclusions:

 Before investing money in any of the company the investor should find the
facts on his own.

 Before trading investor should look on the rules and regulation provided by
the SEBI . For safety of the investor.

 After research and analysis we can say that despite of research an

individual should look on the risk bearing capacity.

 It’s better for new investor to invest in fundamentally strong company’s

shares because the fluctuation in these stocks is less compared to
technical support stocks.

 A prudent investor should always use fundamental and technical analysis

to get better short-term and long term returns.

 Always believe on Long term investment.

Conclusion

War or no war, crude oil prices are bound to trend higher based on fundamental
factors discussed above. There will always be some element of speculation. However,
in the long run, prices would reflect the fundamentals and in that sense one can be
bullish on oil for long term.

Conclusion

Avoid shares in natural gas companies because they seem to follow the general stock
market more than they follow the price of Natural Gas itself. The right time to buy
them would be at the next major stock market bottom. Natural Gas' current decline in
wave 2 is creating an opportunity that should not be passed.

Conclusion
Natural gas was once considered a throw-away byproduct of oil exploration.
However, it has increased in relevance and importance as the world's crude oil
reserves are slowly being depleted. As more efficient and inexpensive ways of
liquefying natural gas are developed, it is steadily inching its way closer to becoming
a viable fuel alternative for the future.

Conclusion -The Dow is still projecting towards a target of around 7,500 as indicated
in the chart above, which I am sure will be taken by the perma-bears as proof that the
whole move from March was just a bear market rally, just at the point were I expect
the stocks stealth bull market to resume! The in depth update to the stealth stocks bull
market will follow towards the end of this month.

Weekend Trend Trading Conclusion:

In short, I am bearish on the dollar for a week or so which should help boost stocks
and commodities. After that we could see all investments make some big trend
changes if buyers don‟t step up to the plate to buy. If we any major headline news
about the sky is falling then it could trigger a sharp correction. Unfortunately, at this
time head line news is running wild spooking investors from buying much of anything
other than gold. Any resolution to foreign economic issues will put pressure on both
gold and silver and likely help boost stocks.

The past month I have been very cautious because the market is wound up and ready
to explode in either direction. During times like this I prefer to stay mostly in cash
until I get low risk setups and a clear trend.

That‟s all for now, but if you would like to get my pre-market video analysis of the
dollar index, each morning and intraday updates along with my trade alerts be sure to
join my premium service at $59 a month which is less than the cost for the dollar
index charting data feed!
 Recommendation
1. The most vital problem spotted is of ignorance.
2. Investors should be made aware of the benefits.
3. Nobody will invest until and unless he is fully convinced.
4. Investors should be made to realize that ignorance is no longer bliss and what
they are losing by not investing.
5. Commodity offers a lot of benefit which no other single option could offer.
But most of the people are not aware of what actually a Commodity is? They
only see it as just another investment option. So advisors should try to
change their mindsets.
6. The advisors should target for more and more young investors. Young
investors as well as persons at the height of their career would like to go for
advisors due to lack of expertise and time.
7. The company may try to highlight some benefits of Commodity, rupee cost
averaging and systematic transfer plan, rebalancing etc. these benefits are
not offered by other options single handedly.
So these are enough to drive the investors towards Commodity. Investors
could also try to increase the spectrum of services offered.
 Limitation:

 The time period of just two months was the major limitation.

 Research has been done in Pune.

 To convince the people for a proper interviewing process was also difficult.

 Company‟s policy that not to disclose confidential data, etc.

 Findings

Intraday trading
 Always respect market do trade only with market direction
 Never over trade many trader loose money by leveraging
 Do not lose more than 3% of capital in single trade
 Always put stop loss
 Always watch trend for some time before doing trade
 Don't give ear to rumors
 Always do little homework before doing trade and trade only in share which you
knows
 Always book profit as well as loss
 Majority days the trading range will range will below so do not wait for big return on
single day
 Market is always right you are wrong

 Risk v/s. return

  Why has it become one of the largest financial instruments?

If we take a look at the recent scenario in the Indian financial market then we
can find the market flooded with a variety of investment options which
includes mutual funds, equities, fixed income bonds, corporate debentures,
company fixed deposits, bank deposits, PPF, life insurance, gold, real estate
etc. All these investment options could be judged on the basis of various
parameters such as return, safety convenience, volatility and liquidity
measuring

these investment options on the basis of the mentioned parameters, I get

this in a tabular form

Return Safety Volatility Liquidity Convenience

Equity High Low High High Moderate

Bonds Moderate High Moderate Moderate High

Co. Moderate Moderate Moderate Low Low

Debentures

Co. FD Moderate Low Low Low Moderate

Bank Low High Low High High

Deposits

PPF Moderate High Low Moderate High

Life Low High Low Low Moderate

Insurance

Gold Moderate High Moderate Moderate Gold

Real Estate High Moderate High Low Low

Mutual High High Moderate High High

Funds

Bibliography
Websites:
 www.bseindia.com

 www.nseindia.com

 www.earnometer.com

Journals & other references

 The Economic Times

 Business Standard
 The Telegraph
 Business India
 Advanced Financial Management – Dr.M.Ashok
 References in the standard international format i.e. Author (s), "Title of the Article
(in quotes)", Title of the journal/magazine, issue date & month, year (e.g. 15th
Sept. 2009) page numbers. THE REFERENCES MUST BE COMPLETE IN ALL
RESPECTS.

Students should provide the complete link of the website referred and along with the
date and time when assessed. Do not just mention the address of the search engine.
e.g. http://money.howstuffworks.com/customer-service.htrn assessed on Monday 7th
August 2009, 6:30p.m
Oil and Natural Gas
Corporation
Cash Flow ------------------- in Rs. Cr. -------------------
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Net Profit Before Tax 27618.97 24983.84 23895.42 25234.70 23980.26
Net Cash From Operating
32756.85 20388.01 22272.74 21527.63 22910.02
Activities
Net Cash (used in)/from
-16818.70 -13237.10 -17459.91 -10239.43 -5046.97
Investing Activities
Net Cash (used in)/from
-11722.63 -8016.08 -8134.27 -8151.34 -7395.08
Financing Activities
Net (decrease)/increase In
4215.52 -865.18 -3321.44 3136.86 10467.97
Cash and Cash Equivalents
Opening Cash & Cash
18231.04 19096.21 22417.66 19280.79 8812.82
Equivalents
Closing Cash & Cash
22446.55 18231.04 19096.21 22417.66 19280.79
Equivalents
Capital Structure (Oil and Natural Gas Corporation)
Period Instrument Authorized Issued -PAIDUP-
Capital Capital
From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital
Equity
2009 2010 15000 2138.89 2138872530 10 2138.87
Share
Equity
2008 2009 15000 2138.89 2138872530 10 2138.87
Share
Equity
2007 2008 15000 2138.89 2138872530 10 2138.87
Share
Equity
2006 2007 15000 2138.89 2138872530 10 2138.87
Share
Equity
2005 2006 15000 1425.93 1425933992 10 1425.93
Share
Equity
2004 2005 15000 1425.93 1425933992 10 1425.93
Share
Equity
2003 2004 15000 1425.93 1425933992 10 1425.93
Share
Equity
2002 2003 15000 1425.93 1425933992 10 1425.93
Share
Equity
2001 2002 15000 1425.93 1425933992 10 1425.93
Share
Equity
2000 2001 15000 1425.93 1425933992 10 1425.93
Share
Equity
1999 2000 15000 1425.93 1425933992 10 1425.93
Share

Profit & Loss account of Oil

and Natural Gas ------------------- in Rs. Cr. -------------------
Corporation
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 66,154.88 60,470.18 64,342.28 60,466.48 57,190.17
Excise Duty 309.88 218.41 338.29 401.38 276.73
Net Sales 65,845.00 60,251.77 64,003.99 60,065.10 56,913.44
Other Income 5,900.77 3,615.96 4,085.59 4,228.63 3,107.05
Stock Adjustments 12.91 118.04 81.10 114.11 -19.73
Total Income 71,758.68 63,985.77 68,170.68 64,407.84 60,000.76
Expenditure
Raw Materials 13.84 2,431.88 10,905.51 8,424.32 8,177.22
Power & Fuel Cost 0.00 260.38 270.79 317.15 320.28
Employee Cost 0.00 5,618.16 4,536.80 5,843.27 3,974.79
Other Manufacturing
0.00 26,652.82 19,578.49 17,184.51 15,616.76
Expenses
Selling and Admin
0.00 -13,243.69 -4,470.78 -2,328.21 -560.70
Expenses
Miscellaneous Expenses 27,530.06 947.65 1,011.04 983.74 1,079.27
Preoperative Exp
0.00 0.00 0.00 0.00 0.00
Capitalised
Total Expenses 27,543.90 22,667.20 31,831.85 30,424.78 28,607.62
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Operating Profit 38,314.01 37,702.61 32,253.24 29,754.43 28,286.09
PBDIT 44,214.78 41,318.57 36,338.83 33,983.06 31,393.14
Interest 25.11 11,276.89 8,485.40 5,016.88 3,724.81
PBDT 44,189.67 30,041.68 27,853.43 28,966.18 27,668.33
Depreciation 15,925.65 5,242.66 4,355.62 3,915.77 3,292.80
Other Written Off 611.43 0.00 0.00 0.00 0.00
Profit Before Tax 27,652.59 24,799.02 23,497.81 25,050.41 24,375.53
Extra-ordinary items 418.17 183.99 790.68 607.25 -564.27
PBT (Post Extra-ord Items) 28,070.76 24,983.01 24,288.49 25,657.66 23,811.26
Tax 9,146.76 8,258.73 8,437.78 8,941.85 8,041.02
Reported Net Profit 18,924.00 16,767.56 16,126.32 16,701.65 15,642.92
Total Value Addition 27,530.06 20,235.33 20,926.34 22,000.46 20,430.40
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 7,486.05 7,058.28 6,844.39 6,844.39 6,630.51
Corporate Dividend Tax 1,215.65 1,161.56 1,163.20 1,163.20 1,012.51
Per share data (annualised)
Shares in issue (lakhs) 85,554.90 21,388.73 21,388.73 21,388.73 21,388.73
Earning Per Share (Rs) 22.12 78.39 75.40 78.09 73.14
Equity Dividend (%) 175.00 330.00 320.00 320.00 310.00
Book Value (Rs) 113.97 408.08 368.12 330.16 289.52

Oil and Natural Gas

Corporation
Balance Sheet ------------------- in Rs. Cr. -------------------
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 4,277.76 2,138.89 2,138.89 2,138.89 2,138.89
Equity Share Capital 4,277.76 2,138.89 2,138.89 2,138.89 2,138.89
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 93,226.67 85,143.72 76,596.53 68,478.51 59,785.04
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 97,504.43 87,282.61 78,735.42 70,617.40 61,923.93
Secured Loans 0.00 0.00 0.00 0.00 0.00
Unsecured Loans 17,564.26 16,405.64 16,035.70 12,482.71 15,109.07
Total Debt 17,564.26 16,405.64 16,035.70 12,482.71 15,109.07
Total Liabilities 115,068.69 103,688.25 94,771.12 83,100.11 77,033.00
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
 12 mths 12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 124,514.26 71,553.78 61,355.61 57,463.78 52,038.07
Less: Accum. Depreciation 62,299.05 55,905.28 50,941.23 46,945.77 43,198.95
Net Block 62,215.21 15,648.50 10,414.38 10,518.01 8,839.12
Capital Work in Progress 21,778.78 56,073.25 52,923.19 41,154.63 37,794.16
Investments 5,332.84 5,772.03 5,090.32 5,899.50 5,702.05
Inventories 4,118.98 4,678.57 4,060.67 3,480.64 3,033.76
Sundry Debtors 3,845.90 3,058.64 4,083.80 4,360.37 2,759.44
Cash and Bank Balance 14,331.05 282.85 161.48 269.22 27.42
Total Current Assets 22,295.93 8,020.06 8,305.95 8,110.23 5,820.62
Loans and Advances 36,347.68 63,721.90 55,964.02 38,906.53 58,710.79
Fixed Deposits 0.00 17,948.18 18,934.74 22,148.43 19,253.37
Total CA, Loans &
58,643.61 89,690.14 83,204.71 69,165.19 83,784.78
Advances
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 28,765.28 27,244.53 26,854.11 22,482.94 19,835.99
Provisions 4,932.49 37,092.46 30,657.98 21,828.17 39,765.20
Total CL & Provisions 33,697.77 64,336.99 57,512.09 44,311.11 59,601.19
Net Current Assets 24,945.84 25,353.15 25,692.62 24,854.08 24,183.59
Miscellaneous Expenses 796.03 841.32 650.61 673.90 514.06
Total Assets 115,068.70 103,688.25 94,771.12 83,100.12 77,032.98
Contingent Liabilities 35,241.87 39,178.54 36,024.57 26,006.73 34,157.17
Book Value (Rs) 113.97 408.08 368.12 330.16 289.52

Key Financial Ratios of Oil

and Natural Gas ------------------- in Rs. Cr. -------------------
Corporation
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Investment Valuation Ratios
Face Value 5.00 10.00 10.00 10.00 10.00
Dividend Per Share 8.75 33.00 32.00 32.00 31.00
Operating Profit Per Share
44.78 176.27 150.80 139.05 131.65
(Rs)
Net Operating Profit Per
76.96 281.70 299.24 280.83 266.09
Share (Rs)
Free Reserves Per Share
-0.93 392.88 353.81 315.74 275.84
(Rs)
Bonus in Equity Capital 41.83 83.66 83.66 83.66 83.66
Profitability Ratios
Operating Profit Margin(%) 58.18 62.57 50.39 49.51 49.47
Profit Before Interest And
31.20 51.02 40.66 40.09 41.00
Tax Margin(%)
Gross Profit Margin(%) 34.00 53.87 43.58 42.99 52.54
Cash Profit Margin(%) 48.84 33.84 29.05 31.24 31.22
Adjusted Cash Margin(%) 48.84 33.84 29.05 31.24 33.18
Net Profit Margin(%) 26.37 26.35 23.50 25.93 25.79
Adjusted Net Profit
26.37 26.35 23.50 25.93 27.75
Margin(%)
Return On Capital
24.05 34.54 34.29 36.30 37.12
Employed(%)
Return On Net Worth(%) 19.56 19.39 20.65 23.87 25.26
Adjusted Return on Net
19.13 18.84 19.95 23.17 27.40
Worth(%)
Return on Assets Excluding
113.04 404.14 365.07 327.01 287.11
Revaluations
Return on Assets Including
113.04 404.14 365.07 327.01 287.11
Revaluations
Return on Long Term
24.05 34.54 34.29 36.30 37.26
Funds(%)
Liquidity And Solvency Ratios
Current Ratio 1.74 1.39 1.45 1.56 1.40
Quick Ratio 1.62 1.22 1.27 1.39 1.28
Debt Equity Ratio 0.18 0.19 0.20 0.18 0.24
Long Term Debt Equity
0.18 0.19 0.20 0.18 0.24
Ratio
Debt Coverage Ratios
Interest Cover 1,102.39 2,483.76 273.32 511.61 1,330.19
Total Debt to Owners Fund 0.18 0.19 0.20 0.18 0.24
Financial Charges Coverage
1,761.05 3.64 4.34 6.79 8.56
Ratio
Financial Charges Coverage
1,413.40 2.95 3.41 5.11 6.08
Ratio Post Tax
Management Efficiency Ratios
Inventory Turnover Ratio 16.06 87.82 111.98 122.77 19.99
Debtors Turnover Ratio 19.07 16.87 15.16 16.87 17.61
Investments Turnover Ratio 16.06 87.82 111.98 122.77 150.64
Fixed Assets Turnover
0.81 0.85 1.05 1.05 1.31
Ratio
Total Assets Turnover Ratio 0.92 0.58 0.68 0.73 0.74
Asset Turnover Ratio 0.81 0.85 1.05 1.05 1.10
Average Raw Material
-- 0.27 0.73 -- --
Holding
Average Finished Goods
-- 7.42 5.20 5.23 4.48
Held
Number of Days In
136.39 151.48 144.51 148.96 152.97
Working Capital
Profit & Loss Account Ratios
Material Cost Composition 0.02 4.03 17.03 14.02 14.36
Imported Composition of
23.34 20.13 17.60 17.41 20.11
Raw Materials Consumed
Selling Distribution Cost
-- 10.83 10.94 10.88 11.70
Composition
Expenses as Composition of
7.15 7.61 5.36 6.31 5.25
Total Sales
Cash Flow Indicator Ratios
Dividend Payout Ratio Net
45.98 49.02 49.65 47.94 48.85
Profit
Dividend Payout Ratio Cash
24.53 37.34 39.09 38.83 40.36
Profit
Earning Retention Ratio 52.98 49.54 48.60 50.60 54.59
Cash Earning Retention
75.17 61.83 59.84 60.21 62.02
Ratio
AdjustedCash Flow Times 0.50 0.76 0.80 0.62 0.75
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Earnings Per Share 22.12 78.39 75.40 78.09 73.14
Book Value 113.97 408.08 368.12 330.16 289.52
Source : Dion Global Solutions Limited