Volume : 4, Issue : 4, April - 2015

FINANCIAL HEALTH ANALYSIS OF LARGE SCALE OIL AND NATURAL GAS COMPANIES IN INDIA-WITH SPECIAL REFERENCE TO SELECT OIL AND NATURAL GAS COMPANIES

G. Kalaiselvi, Dr. Shunmugananda Vadivel

Abstract :

<p>&nbsp;In India, oil and natural gas sector has tremendous growth potential. It plays a vital role in Industries like manufacturing,&nbsp;</p> <div>commercial services, utilities and infrastructure. Financial health of a firm should be evaluated to predict the financial&nbsp;</div> <div>performance in terms of liquidity, profitability and viability. Financial soundness of an industry cannot be ascertained by&nbsp;</div> <div>single ratio. Altman combined a number of accounting ratios to form an index of profitability it is regarded as an effective indication of corporate&nbsp;</div> <div>performance in predicting financial health of a firm. This paper has made an attempt to analyse and forecast the financial health of GAIL, ONGC,&nbsp;</div> <div>IOC, BPCL, HPCL and OIL by the way of applying Altman&rsquo;s Z&ndash;Score model over a period of 10 years. This investigation is based upon the secondary&nbsp;</div> <div>data available from reliable database Capitaline, Prowess and annual report of each company. From the study it is ascertained that GAIL, ONGC,&nbsp;</div> <div>and OIL have registered decreasing trend over the period of analysis. OIC, BPCL and HPCL have increasing trend and also excellent financial&nbsp;</div> <div>viability position throughout the study.</div>