Gail- Ratio Analysis 2010-11
Summer Training
PROJECT REPORT
ON
RATIO ANALYSIS OF FINANCIAL STATEMENTS OF GAIL
Executive summary
Gail has been no. 1 gas utility co in Asia and no. 2 gas utility co. globally which was declared by plats top 250 in 2010. It was also selected as the top Indian co. in the gas processing, transmission and marketing sector for the dun and Bradstreet- American express corporate awards. In addition to that GAIL ‘s Dahej Vijaipur pipeline project won the silver medal in mega projects category at the international project management association awards 2006 and thus received the plats global industry leadership award 2005. It was also rated as one of the best employers in India by Hewitt associates in 2004 global plats survey no. 1 co. among global gas utilities in terms of return on invested capital 2002-03.
The basic motive of the project was to understand the financial status of the co. GAIL by analyzing the financial ratios for the last few yrs. The financial health of a corporate enterprise is the result of many individual decisions made continually by its management. To draw inferences about the corporate financial health, therefore, involves analyzing and interpreting the cumulative financial and economic effects of these decisions and judging the results through comparative measures such as ratios.In the process of the study co. balance sheet, income statement and cash flows statement and the financial performance of the last few years have been taken into consideration in order to calculate the ratios. This has been calculated using ms excel spreadsheets. The financial ratios were calculated under five heads. The charts are also prepared for these ratios.
The whole project was completed in a span of 60 days and the scope of the study was new Delhi , some valuables insights were found while calculating the financial ratios during the study, problem expressed , analysis and recommendations were made at the end of the report in order to have
PROJECT REPORT
ON
RATIO ANALYSIS OF FINANCIAL STATEMENTS OF GAIL
Executive summary
Gail has been no. 1 gas utility co in Asia and no. 2 gas utility co. globally which was declared by plats top 250 in 2010. It was also selected as the top Indian co. in the gas processing, transmission and marketing sector for the dun and Bradstreet- American express corporate awards. In addition to that GAIL ‘s Dahej Vijaipur pipeline project won the silver medal in mega projects category at the international project management association awards 2006 and thus received the plats global industry leadership award 2005. It was also rated as one of the best employers in India by Hewitt associates in 2004 global plats survey no. 1 co. among global gas utilities in terms of return on invested capital 2002-03.
The basic motive of the project was to understand the financial status of the co. GAIL by analyzing the financial ratios for the last few yrs. The financial health of a corporate enterprise is the result of many individual decisions made continually by its management. To draw inferences about the corporate financial health, therefore, involves analyzing and interpreting the cumulative financial and economic effects of these decisions and judging the results through comparative measures such as ratios.In the process of the study co. balance sheet, income statement and cash flows statement and the financial performance of the last few years have been taken into consideration in order to calculate the ratios. This has been calculated using ms excel spreadsheets. The financial ratios were calculated under five heads. The charts are also prepared for these ratios.
The whole project was completed in a span of 60 days and the scope of the study was new Delhi , some valuables insights were found while calculating the financial ratios during the study, problem expressed , analysis and recommendations were made at the end of the report in order to have
References: 1. Brown C. K, and Reilly K. F, (2002) Investment Analysis and Portfolio Management, pp.545-549 2 3. Collier P. M. (2003) ³Accounting for Managers´ 4 5. Fridson M. and Alvarez F. (2002) FINANCIAL STATEMENT ANALYSIS, THIRDEDITION, Published by John Wiley & Sons, Inc. pp.3-91. 6. Glautier M. W. E. and Brian Underdown (2001) Accounting Theory and Practice, pages50-54 7 8. Kind, J, (1999) Accounting and Finance for managers, Kogan page 9 10. Kotler P, (2000) ³Marketing Management Millenium Edition, 10th edition, pp.46-50 11 12. Lewis R. and Pendrill D, (2004), Advanced Financial Accounting, 7th edition, PearsonEducation Limited, pp. 93- 606 13 14. Lucey, T, (2003) Management Accounting, Book-power, 5th edition. 15. Marriott, P., Edwards J. R. and Howard J. Mellett (2004) Introduction to Accounting, pages 215-220 16 17. Sizer J. (1989) An Insight into Management Accounting, pages 32-35 18 19. Temte, A, (2005) Financial statement analysis, Dearborn trade 20 21. Williams, J.R., Haka, S.F., Bettner, M.S. & Meigs, R.F. (2003). Financial and ManagerialAccounting. The Basis for Business Decisions, (12th ed). McGraw Hill. NewYork Bibliography http://economictimes.indiatimes.com/gail-(india)-ltd/balancesheet/companyid-4845.cms (LAST VISITED 2nd AUGUST, 2012) http://www.moneycontrol.com/financials/gailindia/ratios/GAI#GAI (LAST VISITED 2ND AUGUST, 2012)