Working Capital Management of Oil Sector: A Case Study on Indian Oil Corporation Limited

Abstract

Public sector organizations serve as an indispensable organ for revenue generation of the Government. Indian oil Corporation Limited has been duly serving its cause since the time of its establishment. The Indian Oil Corporation is regarded as one of the MaharatnaCompanies which has an immense network of operations. The Operations of the organizations bring under its stream a systematic recording of its transactions which helps to track the course of the organizations activities in fulfilment of its long term objectives. The Financial statement of the Indian Oil Corporation is disclosed in a transparent manner which helps the record keepers to set a keen eye on the organization's performance. Working capital is one of the most vital elements for an organization to run its activities effectively on day to day basis. For any organization it is most important to manage its working capital requirements effectively so that the operations does not halt  The study has been conducted to analyse and evaluate the trend in the organizations working capital management for a period of five consecutive years from 2010 to 2015. The study also aims at analysing the liquidity and profitability position of organization through various working capital related ratios.