microsoft word - project report-finance

8/14/2019 Microsoft Word - Project Report-finance

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ASSETS COMPOSITION

Companys assets are composed of following components:-

1. Fixed assets2. Investments3. Current loans & advances4. Inventories5. sundry debtors6. Cash & bank balances7. Other current assets8. Loans & advances

FIXED ASSETS:-

Fixed assets have shown the persistent growth trend over the YOY, year 2005-06 have showed a climbof INR 47,080 millions, which was mainly attributed due to the additions in plant & machinery worth

Rs.12,092 & transference & amalgamation of Rs.17,939.further there were also increase in thebuildings worth Rs. 5300 millions ,which in a nut shell shows that company has carried out

infrastructure development in this year. This is evident from the gross block trend in the following.

Gross block:

Gross block (in 'millions) GPH001

173,768

194,576

215,009

111,451

126,688

100,000

130,000

160,000

190,000

220,000

2003-04 2004-05 2005-06 2006-07 2007-08

Depreciation & amortization:

Year 2005-06 showed an unusual increase of Rs. 17900 millions, which is mainly attributable due tothe Depreciation accounted due to transfer & amalgamation worth Rs. 7649.03 millions.


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Depreciation & amortisation (in 'millions) GPH002

74,595

84,765

56,687

51,120

95,323

50,000

60,000

70,000

80,000

90,000

100,000

2003-04 2004-05 2005-06 2006-07 2007-08

Net Block:Again net block have increased by Rs. 29,000 millions over the same period.

Net block (in 'millions) GPH003

99,174

109,810119,687

60,331

70,001

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

2003-04 2004-05 2005-06 2006-07 2007-08

Capital work in progress:

Capital work in progress has decreased YOY about 1000 millions on an average each year. In the year

2006-07, WIP showed a dip of Rs. 3158 millions, showing this year company completed most of its

infrastructure projects.

Capital work in progress (in 'millions) GPH005

11,681

8,523

7,667

14,077

13,486

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000

15,000

2003-04 2004-05 2005-06 2006-07 2007-08


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Investments:BPCL has investing in current & long term govt. securities, Shares debentures & bonds. Year 2003-4

& 04-05 was stagnant in terms of investments, but the year 2005-06 & the following years companyinvested heavily. In 05-06 company invested in shares of Central UP Gas Limited, Premier Oil

CacharB.V., and Sabrmati Gas Limited & Mahrashtra Natural Gas Limited. Total book value of these

shares was Rs. 136.05 millions.

Investments (in 'millions) GPH006

38,774

73,854

16,77119,770

93,580

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2003-04 2004-05 2005-06 2006-07 2007-08

Gross block to sales ratio

Gross block to sales ratio GPH004

20.4%

16.0%

19.8%

20.9%

20.0%

15%

16%

17%

18%

19%

20%

21%

22%

2003-04 2004-05 2005-06 2006-07 2007-08

Company has done well in relation to the gross block in the year 2006-07,but the year 2005-06 in

which a lot of infrastructure development happenend,company didnt grew as well on the sales


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Current Assets:

Current assets (in 'millions) GPH008

133,129136,338

103,519

83,415

197,073

70,000

90,000

110,000

130,000

150,000

170,000

190,000

210,000

2003-04 2004-05 2005-06 2006-07 2007-08

Inventories:

Inventories consist of stores & spares, raw material, stock in progress & finished goods. Year 2005had stores & spares in excess of Rs. 950 millions, which was unusually high, this might have occurred

due to expansion carried out by the company. Company showed overall an increasing trend in

inventories in all the year except the year 2006-07, which showed reduction, this was mainly attributedDue to the increase in raw material by 61%, 86%, 143%,-28% & 158 % respectively, which can be

cited the main reason behind the following trend. Company showed the maximum growth in finished

good in the year 2003-04 i.e. 41% highest among all the following years.

Inventories (in 'millions) GPH007

90,448

86,613

106,038

42,860

62,586

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

2003-04 2004-05 2005-06 2006-07 2007-08

Sundry debtors:

IN the year 2005-06, debtors have increased more than average figure of 15%,it was 54%,this year, ithappened mainly due to increase in other debts (by more than 51%)


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Sundry debtors (in 'millions) GPH009

13,159

15,187

16,086

8,2118,546

8,000

10,000

12,000

14,000

16,000

18,000

2003-04 2004-05 2005-06 2006-07 2007-08

Cash & bank balances:

Decrease in the FY 0405 was due to decrease in cash on hand by 61% over the previous year. in thefollowing years it showed the reverse trend this was due to increase in cash on hand & current deposits

by 48% & 21% in the year 2005-06 & this trend continued in the following year until the year 07-08 it

showed some due to decrease in cash on hand.Increse in the year 05-06 can attributed due to the daily

needs in event of companys expansion drive.

Cash & bank balances (in 'millions) GPH009

4,921

8,640

3,524

6,266

9,616

3,000

5,000

7,000

9,000

11,000

2003-04 2004-05 2005-06 2006-07 2007-08

Other current assets:It consists of interest accrued on deposists, investments,any deferred premium or any bonds

receivables .FY-05-06 was unprecedented here because,BPCL has received deferred premium on

foreign exchange forward contract worth Rs. 1033.87 millions & in addition to this company gainedRs.6591.62 millions, the details of which are mentioned from the schedule-X-B-1(h)

In terms of the scheme of amalgamation, the equity shares held by the Corporation in the erstwhile

KRL will be transferred to a proposed trust for the benefit of the Corporation. Accordingly, the equity


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shares to be allotted, in the ratio of 4 equity shares for every 9 equity shares of the erstwhile KRL,

aggregating to 33,728,738 equity shares are reflected as Others (being the acquisition cost of Rs.

6,591.02 million) in Schedule J - Other Current Assets as on 31st March 2006.

In the year, 07-08 company gained through Oil Marketing Companies GOI Special Bonds Receivable

worth Rs. 39714.5 millions, which accounted for a steep rise in current assets in the year.

Other current assets (in 'millions) GPH0010

7,73610,058

49,329

3 97

2

10,002

20,002

30,002

40,002

50,002

2003-04 2004-05 2005-06 2006-07 2007-08

Loans & advances:This includes loans secured & unsecured to top companies, staff & any advances, material given on

loan etc.in the year 05-06, it showed a steep decrease ,this happened due to the fact that company

received dues from Petroleum Planning & Analysis Cell - Government of India worth Rs.10753millions. Which accounted for overall decrease in loans & advances.

Loans & advances (in 'millions) GPH0011

16,866

15,840

16,004

26,075

28,767

15,000

20,000

25,000

30,000

2003-04 2004-05 2005-06 2006-07 2007-08

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