... Professor DGM (F&A) Accounting and Finance ONGC BIMTECH New Delhi 2013-15 TABLE OF CONTENTS CONTENTS CERTIFICATE FROM MENTOR v CERTIFICATRE FROM HR vi SUMMER PROJECT CERTIFICATE vii ACKNOWLEDGEMENT viii LETTER OF TRANSMITTAL ix LETTER OF AUTHORIZATION x EXECUTIVE SUMMARY 1 1. INTRODUCTION TO THE COMPANY 3 1.1 Background 3 1.2 Overview of the Company 3 1.3 ONGC Group of Companies 4 1.4 Basic Information 5 1.5 Organization Structure (CRC) 5 1.6 Vision and Mission Statement 6 1.6.1 World Class 6 1.6.2 Integrated In Energy Business 6 1.6.3 Dominant Indian Leadership 6 1.7 Strategic Vision 6 1.8 Salient Features about ONGC 6 1.8.1 ONGC in Global Rankings 6 1.8.2 ONGC- Achievements in ensuring Energy Security of India 7 1.9 Corporate Social Responsibility 7 1.10 Future Outlook 8 1.11 ONGC Offices All Over India 8 1.12 Organization Structure of the Finance Function of ONGC 9 2. FINANCIAL STATEMENT ANALYSIS 11 2.1 Financial Performance of ONGC (2012-13) 11 2.1.1 Sales of ONGC 11 2.1.2 Net Profit of ONGC from the Year 2007-13 11 2.1.3 Debt-To-Equity Ratio 12 2.1.4 Dividend of ONGC from 2007-13 12 2.1.5 Earning Per Share from 2007-13 12 2.1.6 Retained Earnings from 2007-13 13 2.1.7 Degree of Operating Leverage 13 2.1.8 Working Capital & Net worth Analysis 14 3. BUDGETING PROCESS IN ONGC 15 3.1 Budget Preparation in ONGC, Head Quarters 15 3.1.1 Introduction 15 3.1.2 Preparation of Budget Estimate...
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...Prominent personalities open up about failure and learning from it Failure that dreaded word. The fear of failure curtails growth and inhibits people from taking risks. Getting people to talk about failure, especially their own, is the singularly most difficult thing to do. In Why I Failed, Shweta Punj does just that by getting leaders to share experiences of when they did not succeed and how they turned it around to their advantage to emerge indomitable and stronger than before. This book shows that it is okay to fail as long as you treat failure as a stepping stone for greater things. Review: We've all read various success stories. If not read, heard. Derived inspiration for them. Thought about them much later. Wondered how the achiever did it. Told ourselves, if they can, so can we. I know I have, I am sure most of you have too. But, rarely comes a book where achievers talk about the times when they failed. And, miserably. Abhinav Bindra, Anu Aga, Madhur Bhandarkar, Narayanan Vaghul, Kiran Mazumdar-Shaw, Captain Gopinath, Sabysachi Mukherjee, Narayana Murthy, Dr Prathap C Reddy, Sunil Alagh, Subhash Ghai, Ajit Gulabchand, Sminu Jindal, William Bissekk, Sanjeev Goenka and Shankar Sharma - each an example in him(her)self in being an achiever on the global scene, yet they have failed miserably in what they do, at some point of their lives. Why did they fail? What happened? There is always a reason, and in Why I Failed: Lessons from Leaders, these people talk about...
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...Life Insurance Insurance in India: The penetration for the Insurance category in India is pegged at 3.9% as against the world average of 6.3%. Most G20 countries are above India in terms of life insurance penetration, with South Africa leading the pack at 15.4%. Not only is this number paltry, it is a matter of great worry considering over 51% of the urban households are squarely dependent on a single provider (earning member). (Source – Census 2011) In the case of the passing of the provider or even falling ill, most households get severely strained financially and have to often dip into their savings. This often throws their long term plans off track and adversely affects their aspirations. Life Insurance: The Life Insurance industry was opened up to private players in 2001 and it enjoyed very high growth periods from 2001 to 2008. However post the 2008 bubble, the growth slowed down significantly and in fact witnessed de-growth from 2010 – 2014. In the first quarter of 2015, the industry has reported a robust 20% growth Q-on-Q, however coming largely on the back of strong growth reported by LIC and a few private players. A large number of private players continued to witness negative growth. The Life Insurance industry in India is dominated by LIC with about 70% market share and almost 100% top of the mind recall; the other 23 players account for the balance 30% market share. (Source: Business Standard Article) Products: The LI category is classified into...
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...Corporation Limited (ONGC) was set up as a Commission on August 14, 1956. The company became a corporate on June 23, 1993, which has now grown into a full-fledged horizontally integrated petroleum company. Today, ONGC is a flagship public sector enterprise and India’s highest profit making corporate, achieving the record of being the first Indian corporate to register a five digit profit figure of Rs. 10,529 Crore in the year 2002-03. The Indian government holds 74.14% equity stake in this company. ONGC has produced more than 600 million metric tonnes of crude oil and supplied more than 200 billion cubic metres of gas since its inception, thus fuelling the increasing energy requirements of the Indian economy. Today, ONGC is the most valuable company in India, contributing 77 percent of India’s crude oil production and 81 per cent of India’s natural gas production. ONGC is one of Asia's largest and most active companies involved in exploration and production of oil. 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 kilometres of pipelines in India. ONGC has made six new discoveries, at Vasai West (oil and gas) in Western Offshore, GS-49 (gas) and GS-KW (oil and gas) in Krishna-Godavari Offshore, Chinnewala Tibba (gas) in Rajasthan, and Laipling-gaon (oil and gas) and Banamali (oil), both in Assam. ONGC has a fully owned...
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...ONGC is a blue chip Maharatna Public Sector Company maintaining its dominant position and leadership in energy business. As the company aspires to be a global leader in “Integrated” energy business through sustainable growth, knowledge excellence and exemplary governance practices, our progressive and innovative Human Resources Policies and systems have created an enabling milieu which facilitates recruitment, retention and nurturing of world class human capital for leadership in energy business. We believe that HR Policies and interventions have the inherent responsibility of organizational transformation and effective change management through progressive adoption of techniques and structures that accord precedence to action oriented goals and continuous resource development. It is with this goal in perspective that our Human Resource policies focus on key areas like talent acquisition and retention, training and development, compensation management and social security. The company hires the best available talent in various disciplines through a rigorous selection process. It also visits the campuses of leading educational institutions to head hunt the critical talent based on its requirements. Training and Development of human resources is another priority area. The training infrastructure comprises of ONGC Academy located at the Headquarters in Dehradun as well as Regional Training Institutes (RTIs) at other locations. Apart from regular in-house training programs, various...
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...CORP (ONGC) By: SUBHROJIT MALLICK (1092) SONIA KALE (1090) SNEHA ROY (1086) PALLAV HATIMURIA (1061) INTRODUCTION ONGC (Oil and Natural Gas Corporation Limited), the Indian multinational oil and gas company headquartered in Dehradun is India’s largest oil and gas exploration and production company. It is a Public Sector Undertaking (PSU) of the Government of India, under the administrative control of the Ministry of Petroleum and Natural Gas. ONGC produces around 69% of India's crude oil. On 31 March 2013, its market capitalisation was INR 2.6 trillion (US$ 48.98 billion), making it India's second largest publicly traded company. In a government survey for FY 2011-12, it was ranked as the largest profit making PSU in India. ONGC has been ranked 357th in the Fortune Global 500 list of the world's biggest corporations for the year 2012. It is ranked 22nd among the Top 250 Global Energy Companies by Platts. ONGC was founded on 14 August 1956 by Government of India, which currently holds a 69.23% equity stake. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India, and owns and operates over 11,000 kilometers of pipelines in the country. Its international subsidiary ONGC Videsh currently has projects in 15 countries. ONGC has discovered 6 of the 7 commercially-producing Indian Basins, in the last 50 years, adding over 7.1 billion tonnes of In-place Oil & Gas volume of hydrocarbons in Indian basins. During FY 2012-13, ONGC had...
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...Gujarat Technological University Syllabus for New MBA Program effective from Academic Year 2011-12 (Also applicable to 2nd Year Students of 2010-12 Batch MBA Program) COMPULSORY COURSES MBA-II Semester-IV Sub Name: - Comprehensive Project Report – Industry Defined Problem (CP-IDP) Sub Code: - 2830004 In addition to Major Specializations, there will be over sixty Sectorial / Industry Areas for Practical studies in which theoretical papers / books are not to be taught in regular classroom sessions, but the teachers and students are free to use any available books, publications and online material to understand and guide the students for various sectors. Ideally, a teacher should study and specialize in at least TWO Sectors, so four teachers can guide 60 students in a class. (Reference: Appendix 1: List of Sectorial Areas for Comprehensive Project study given in Sem III Syllabus). This report is similar to the Grand Project, which was the part of earlier syllabus. The Comprehensive Project Report is based on the research methodology and students have to prepare the research report by using appropriate scientific statistical research tools for preparation of the CP in consultation with the faculty guide. (Please also refer the Guidelines for CP in MBA Semester III, as the same Project Title continues in Semester IV). A student has to opt for any ONE of the Sectorial Areas and study it thoroughly. The students may undertake the CP based on the selection of an Industry Defined Problem...
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...in discharge of their functions are given below: (A) Matters pertaining to Company Affairs Memorandum & Articles of Association; Decisions of the Board of Directors and Sub-committees of the Board from time to time as contained in the minutes book; Decision of shareholders in the Annual General Meeting as contained in the minute book; The Code of Internal Procedures and Conduct for Prevention of Insider Trading in Dealing the Securities of ONGC ; Procedures for Corporate Disclosure; Companies Act, 1956 and Rules framed there under; Listing Agreement & SEBI Guidelines; (B) Matters pertaining to Finance & Accounts Accounting Policies; Accounting standards; Accounting Manual; Delegation of Powers; Internal Audit Manual; (C) Matters pertaining to Works, Contract, Sales, Procurement, Inventory, etc Material Management Manual Delegations of Powers (D) Human Resource matters pertaining to ONGC employees HR Manual INTRODUCTION i) HR Vision, Mission and Objectives ii) HR Parameters iii) Organogram – ONGC iv) Organogram – HR v) Core Values vi) Standard Designations, Levels and Scales of Pay viii) Authorities under BDP and HR issues MANPOWER ACQUISITION Modified...
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...for backward, forward or vertical integration in value chain * An organization may decide to go from one value chain to other value chain * From economists’ point of view in a competitive market, there will be atleast 3-4 competitors of equal caliber and market share would not be more than 35% for a given company. In theory there has to be numerous competitors for a perfectly competitive market. Case: ONGC India – In search of new growth strategy ONGC has gone for vertical integration during Mr. Raha’s tenure. Mr. Sharma has to decide whether to continue with the same or differ. Pros: 1. The bullish market earned lot of fortune. The earned money can be easily invested into diversification and hence multiplicate from this investment in future. 2. If they see investments in renewable sources of energy, ONGC can also start to be looked upon as green company. 3. When Mr. Subir Raha took over the workforce was highly de-motivated, and all the cash that had been earned would be given back to government in form of dividends. Mckinskey had projected that ONGC would go sick if it continues to operate the way it operates now. Mr. Raha saw an opportunity in the additional cash of Rs. 18,400 was seen as opportunity to create new business & new challenges for the organization, motivating the staff by giving them new challenging positions and hence re-invent the organization. Cons: 1. The growth in Raha regime looks phenomenal. Sales turnover from Rs. 0.2 Bn to...
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...lack of funds, inability to explore, etc. The foreign players look at these recycled blocks as if the previous owner couldn’t find anything upon exploration and thus returned the same back to government. Hence, these foreign players have very little interest in such blocks. In fact, even the domestic players have shown resistance to bidding for these blocks. Thus, unless the government provides clear reasons for why the recycled block is being offered by showcasing supporting geological data, and exploration reports by the previous owner, we believe that there is no point in bidding for these recycled blocks and such blocks will remain unsold as even domestic players won’t bid for them (more so because most of these recycled block are from ONGC, the leading national E&P player). The next major issue is the prevention of the development of integrated business models, which has been the preferred mode of operation by the major foreign players, such as Exxon and BP, recently. The policies and regulations, such as fuel prices, etc. prevent the bidding companies from undertaking all the tasks from exploring to refining to selling of oil to providing related services. Thus, if the major players decide to enter the...
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...OIL AND NATURAL GAS CORPORATION LIMITED 1 OIL AND NATURAL GAS CORPORATION LIMITED EASTERN SECTOR: ASSAM 1. About ONGC (1) ONGC has been recognized as the word’s No.3 in Global E&P companies. ONGC’s vision is to be a Global leader in integrated energy business through sustainable growth, knowledge excellence and exemplary governance practices. PMGC is the only Indian energy major in Fortune’s Most Admired List 2012. Government of India formally conferred coveted Maharatna status on ONGC in April 2011. ONGC accounts for 73% Oil & 48% of Gas production in the country. ONGC Videsh, the overseas arm of ONGC is currently operating in 16 countries in 33 projects with investment of over 10 Billion USD. ONGC’s Annual net profit Rs.25,123 Crores. (2) The Company offers one of the best compensation packages in cost to company (CTC) terms in the country with opportunity of merit-oriented advancement in a professionally managed organization focused on growth. 2. Who Can Apply ? ONGC, Eastern Sector, Assam invites applications from Candidates with valid registration of Name and eligible requisite essential qualification(s) in any of the Employment Exchanges located within the State of Assam i.e. Candidate’s Name and qualifications must be registered in the Employment Exchange on or before last date of receipt of application. The Employment Exchange certificate / card Registration should be valid at the time of submission of application. Most of the Jobs demand outdoor...
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...Political Factors - Governments controlling world hydrocarbon reserves → significant impact - OPEC controlling 75.5% of world reserves → highly influential - Political risks: Instability, expropriation/nationalization of property, terrorism, civil conflicts, strikes, wars, etc. → adverse effect - Environmental treaties (Kyoto protocol) → negative impact Economic Factors - Interdependence between world economy and oil industry: economic growth → growing demand for oil; but also: continual supply of oil at reasonable prices → stable economy - Inelastic demand → positive effect - US dollar (and US economy) →significant impact - Exchange rates → impact on buyers and suppliers Socio-cultural Factors - Values and beliefs shape preferences for energies → energy mix changing towards greener energies - Need for companies to show social responsibility → supporting sustainable human development through investments in education, training, social and environmental activities Technological Factors - Extremely technology-driven: improved upstream technologies →better recovery of hydrocarbon, recovering oil from reserves considered exhausted → improved profitability (gains) - Breakthrough technology in ultradeep-water extraction →competitive advantage for Petrobras - Advanced technology → profound impact on long-term sustainability . Industry Competition Analysis (Porter’s five forces) In order to create a profitable competitive strategy, a firm must first examine the basic competitive...
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...STRATEGIC PROFILE ONGC is not only the number one Exploration and Production Company in Asia today, but is also the number 3 E&P Company in the world. It is in the Oil and Gas Drilling and Exploration Industry. In the oil and gas industry ONGC does a lot of research and development as well as refining and marketing. In 2007 they entered the energy field researching and developing alternative fuels. The company is currently recognized as the “Best Oil and Gas Company in Asia”, by the ‘Global Finance’ magazine. In 2007 it was ranked 369th by the Fortune Global 500 list of largest corporations by turnover. This is only a small measure of their performance thus far. By looking at this and many other achievements it is obvious that ONGC is not slowing down any time soon. When taking into account that it is doing business in what will soon be the most populated country in the world, they will only be growing from here. Our analysis will look at the internal and external factors that affect the business. It will show how strong they are in the Oil Industry but also focus on what they need to do to stay competitive. Strategic Profile ONGC is not only the number one Exploration and Production Company in Asia today, but is also the number 3 E&P Company in the world. It is in the Oil and Gas Drilling and Exploration Industry. In the oil and gas industry ONGC does a lot of research and development as well as refining and marketing. In 2007 they entered the energy field...
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...all operational aspects of an organization, i.e. all operations across the activity chain/value chain, which impact the business in either one or all the three dimensions. Carbon impact is not limited within the boundaries of owned operations but in the total activity and value chain, - vendors and consumers. Utilizing life cycle assessment approach can be a useful way to understand the full impacts across the activity/ value chain. On knowing, where the main impacts are, organisation can influence that part of the value chain by working with relevant vendors or consumers for promoting its quest for sustainable development. ONGC‟s new corporate vision emphasizes the organizational growth through sustainable development, in keeping with the organizational mission of attaining carbon neutrality. Accordingly, ONGC will need to have a holistic organizational practice to reduce carbon footprint. This is a background note of the way to engage our vendors towards our object of sustainable development. Definition: “Greening the Vendor Chain” refers to buyer or recipient companies requiring a certain level of environmental responsibility in core business practices of the suppliers and vendors providing materials / services. This will essentially mean the practices and processes in partnering with, or influencing the suppliers and contractors to reduce their carbon foot print. Many businesses have internal standards, policies, and/or environmental...
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...Brochure More information from http://www.researchandmarkets.com/reports/2699314/ Cairn Energy PLC Analysis Across the Oil and Gas Value Chain Report, 2013 Update Description: Cairn Energy PLC Analysis Across the Oil and Gas Value Chain Report, 2013 Update Summary "Cairn Energy PLC" Analysis Across the Oil and Gas Value Chain is an essential source for data, analysis and strategic insight into “Cairn Energy PLC”. The report provides key information relating to oil and gas assets of the company along with its operations across the value chain. The report examines the company’s business structure, operations and products, and provides an analysis of its key revenue lines. Scope - Provides information on length or historical production or capacity data on Company’s oil and gas assets across the value chain - Forecast capacity of major oil and gas assets to 2017 - Reports oil and gas assets of the company in different countries including operator and equity details for major oil and gas assets - Details on company’s business description, locations and subsidiaries as well as a list of products and services - Latest mergers and acquisitions, partnerships or financings of the company including debt, equity or venture finance. Note*: Some sections may be missing if data is unavailable for the company. Reasons to buy - Research your competitors business structure, strategy and prospects - Assess your competitor’s major energy assets and their historic and forecast...
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