Financial Statement Analysis of ONGC LTD. with reference to: Horizontal Analysis & Common Size Analysis

Abstract

ONGC was ranked at 171th position in Forbes Global 2000 list of the worlds‘ biggest companies for 2012. ONGC has grown multifold to become one of the largest Exploration & Production (E&P) companies in the world. The financial statement Analysis of ONGC for 2012 as compared to 2011 will reveal many things. The present paper focuses on comparison of financial statements of ONGC for 2011 & 2012 with Horizontal & Common size analysis. Main objective is to identify various reasons of increase or decrease in variables of financial statements esp. Profit at varied stages, and to conclude financial position.It was found from study that ONGC modifies its capital structure in 2012, by sourcing out more and more funds from own equity. ONGC‘s investment is increased in fixed assets and decreased in liquid asset in 2012 as compared to 2011, concluding much money blockage in illiquid assets. Still ONGC gets nice increase of PAT, which satisfies shareholders & Investors.