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Date: 21.4.2012 Words: 3564 Plagiarised sources: 273 Plagiarised: 6%

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Introduction Given our dependence on oil to meet energy requirements, the oil consumption of a country is a measure of its economic might. Presently, India is the world's fourth largest consumer of petroleum products after the United States, China and Japan, with consumption growing at 5.2 % per annum (Although in per capita terms, Indian oil consumption is below world average).According to forecasts, India will become the world's third largest oil consumer by 2014+.According to the CIA world fact book, the consumption of oil in India in 2010 was 3.182 million barrels per day. Owing to the importance of oil in the economy, it is important to analyse and understand India's downstream petroleum sector. Currently, India's downstream petroleum sector is dominated by three state owned oil marketing companies (OMC's): Indian oil corporation limited (IOCL), Bharat petroleum corporation limited (BPCL) and Hindustan Petroleum corporation limited (HPCL). This sector has witnessed tremendous activity recently due to high crude prices, entry of private players and movement towards deregulation of prices. This term paper focuses on the three major companies listed above. OMC's in India Publicly owned OMC's are the major players in India's downstream petroleum sector. The three giants; namely, IOCL, BPCL and HPCL together make up 52% of India's refining capacity and 98% of the retail activity. This is shown in the following table+: After independence, petroleum was one of the core industries reserved exclusively for the public sector as per the Industrial Policy Resolution of 1948. Economic liberalisation has helped in the opening up of the petroleum sector. Private sector refineries have entered with significant capacities. But private retail of petroleum products is yet to start off in a big way. After the rise in crude oil prices, private players shut down their retail operations. So the three big players that are left in the oil marketing sectors are: 1. Indian Oil Corporation Limited (IOCL) 2. Bharat Petroleum Corporation Limited (BPCL) 3. Hindustan Petroleum Corporation Limited (HPCL) _________________________________________________________________________________________________________________ ____________________________________________________________________ + "India's Downstream Petroleum Sector", IEA Report Retail market share of India's OMC's* Brief Description of India's Major OMC's 1)Indian Oil Corporation: Formed in 1964, it is the biggest player amongst the Indian OMC's. It has 52% share in the petroleum products market and 34% share in refining capacity in India. It is the highest listed Indian company in the Fortune Global 500 list. It is one of the five state owned companies in the maharatana category. Apart from retail and refining, it has interest in the exploration and petrochemical businesses. As shown in the table, with more than 18,000 retail outlets it is India's biggest retailer of petroleum products by a huge margin. It operates 10 out of India's 21 refineries+. 2)Bharat Petroleum Company Limited: It is the second biggest player in India with a fortune global ranking of 272. Formed in 1975, it has a smaller retail presence as compared to the other two giants. It makes up for this by its large industrial and jet fuel operations. It has two refineries at Mumbai and Kochi. It is now diversifying into exploration activities. Accounting for private players, it has the third largest refining capacity in India. 3)Hindustan Petroleum Company Limited: It is the smallest of the three OMC's. Its retail presence is slightly greater than that of BPCL. Its refining capacity is significantly less than those of the other two. It ranks 336 on the fortune global 500 list. It owns two refineries: one at Mumbai and the other at Vishakhapatnam; the one in Mumbai being a lube specialist refinery. It is the market leader in lubricants and similar product with more than 30% market share++. _______________________________________________________________________________________________________ * "India's Downstream Petroleum Sector", IEA Report + en.wikipedia.org/wiki/Indian_Oil_Corporation ++en.wikipedia.org/wiki/Hindustan_Petroleum Challenges before India's OMC's: Under-Recoveries For decades India followed the Administered Price Mechanism (APM) strategy under which the Government decided the prices of four key products: Petrol, diesel, kerosene and LPG. This placed a large financial burden on these companies. These companies were compensated for their operating costs and were assured a return of 12% post tax on net worth. This system ensured affordability of fuel for the poor but made a huge impact on India's fiscal deficit. In 2002, the APM was done away with. The OMC's were allowed to set prices based

on an import parity pricing formula. So the OMC's could charge the import price plus tariff and transportation charges to the purchaser's location. This gave private players a chance to venture into refining and retail operations. However, with the crude oil prices rising substantially in 2004, the government restricted the ability of OMC's to raise prices. Gradually by the end of 2004 this mechanism was done away with and the Government again started controlling prices to protect the consumer. In 2010, the government took a step to reduce this deficit by freeing petrol prices to be decided by market forces. Diesel, Kerosene and LPG prices were not freed. While kerosene and LPG prices directly affected households, it was thought that raising diesel prices would fuel the already skyrocketing inflation rates. In effect, this deregulation is only partial as the OMC's have to get price revisions approved by the Government. Retail prices being much lower than the price of crude (input) has been the cause of under-recoveries for Indian OMC's. This has placed financial burden on Indian OMC's. For e.g., on every litre of diesel sold in Delhi, the Government and OMC's lose Rs 14. Daily diesel subsidy alone is currently Rs 245 Crores. The following table** from a leading newspaper shows the situation: __________________________________________________________________________________ ** Source: Hindustan Times, 18th April 2012 Under-recoveries are calculated on the basis of the difference between the trade parity price and retail price. Under trade parity, the import parity +and export parity ++ prices are taken in the ratio of 80:20. Under recoveries have seriously affected OMC's. To deal with this problem the GOI has taken the following steps: 1.Reducing prices of Inputs It has directed upstream oil and gas PSU's to supply crude at discounted prices to OMC's. In effect, the upstream companies are sharing a part of downstream under-recoveries. 2.Issue of oil bonds The GOI compensates OMC's for their losses by issuing them oil bonds. The OMC's show these oil bonds as investments in their balance sheet and the interest from these bonds as income in their P&L account. This way, they create losses into profits. After the maturity period is over, the GOI will redeem these bonds. Another benefit of these bonds is that the OMC's can trade them in the secondary market in case they are pressed for cash. However, over the years this practice of issuing bonds has led to saturation in the market. They are not easily convertible into cash anymore. 3.Restructuring of tax and duties Consider the following table +++which shows the price build-up of petrol in Delhi (16th April 2012): Almost 40% of the cost comprises of Central excise and state tax. In reality, the revenue generated by Excise duty is more than the amount paid the GOI as compensation for under-recoveries. A reduction in the tax component of retail prices will reduce under recoveries. In order to realise this, the GOI over the years has sought to reduce excise duty on petroleum products. However, the States are reluctant to take steps in this direction as revenue from these taxes comprises a significant chunk of their income.++++ ________________________________________________________________ + Import parity is the value of a product bought from a foreign country but valued at price levels in importing country. ++ Export parity price is the value of a product sold in a foreign country, but valued from price levels in exporting country. ++++ Source: Petroleum Planning and Analysis Cell (http://www.ppac.org.in) ++++An exception is Goa, where Value Added Tax on petrol has been reduced to just 0.1%. Other states are unlikely to follow. Ratio Analysis: Comparison of OMC's This section is a comparative analysis of important ratios for the three OMC's. It is an attempt to understand how these companies have fared relative to each other. A.Liquidity Ratios: They are of importance to short term lenders and creditors as they indicate the relation between current assets and current liabilities. 1.Current Ratio: All the three companies have similar current ratios. In March 2011, the current ratio of all the three was around 1.2. Since it is more than one, the OMC's should not have a great difficulty in meeting short term financial obligations. Going by the average, all the three firms are on an equal footing as far as this ratio is concerned. 2.Quick Ratio Over the years, BPCL has maintained a higher quick ratio mainly because of its low levels of inventories (and a higher inventory turnover ratio). In March 2011, quick ratio for all the three OMC's was similar. It is important to note that these companies have a huge difference between their current ratio and quick ratio. This shows a high dependence on inventories to meet short term obligations. Since oil inventories are readily convertible into cash, it is not a problem. B.Solvency Ratios: They show the ability of the company to meet its long term obligations. 1.Interest Coverage ratio IOCL has maintained an edge over HPCL and BPCL in their ability to payback interst on their borrowings. In the year 2010, interest paid by IOCL was very low leading to a steep increase in this ratio. For BPCL also, this ratio was maximum in 2010. This is because of low interet rates in FY 2009-2010.+ Comparing 2011 and 2009 values, the interest coverage ratio has increased steadily for all the three firms. This is a positive sign as they have defied the trend of increasing interest rates by maintaining healthy operating profits. As of 2011, interest coverage ratio for all the three is satisfactory (the minimum being 2.88 for BPCL). _________________________________________________________________________________________________________________ + Benchmark interest rates for 2009-2010 were at an all time low for the period 2000-2012. Source:

http://www.tradingeconomics.com/india/interest-rate 2.Debt Equity Ratio With respect to solvency, the companies do not have a high debt and interest burden. However, due to low component of debt in the capital structure, the rate of return for owners is not optimum. HPCL can further increase debt in its capital structure to catch up with the other two companies. 3.Total debt to Assets Total Debt to Total Assets Ratio is important from the point of view of external liability holders, as more is the margin of safety, more will be the ability of the firm to meet their claims in case of liquidation of assets. IOCL is better off in this respect as compared to HPCL and BPCL. It has constantly maintained this ratio around 0.5. C.Effieciency Ratios: They are used by the management of the company to identify the efficiency of the firm. 1.Inventory Turnover Ratio All the three companies shows a decreasing trend in the ratio indicating that they were able to sell their inventory faster in 2009 than in 2011. IOCL has the highest sales but the inventories in IOCL have also been the highest indicating that the company is willing to lose some of its profit by keeping large inventories that might come handy in case of strike or any other legitimate reason. 2.Total Asset Turnover Ratio From the curve, it seems that BPCL is the most efficient in using its assets to generate sales. However, high values of asset turnover ratio are also in part because of BPCL's low asset base and sales as compared to IOCL. Over the past few years, IOCL has increased its asset base much faster than BPCL and HPCL. These assets, it seems, are yet to generate the same level of sales as the older assets. So in the coming years, IOCL's asset turnover should show a positive trend. 3.Debtors Turnover Ratio BPCL has been the most efficient of the three companies in collecting its receivables. D.Profitability Ratios: These ratios are important from the point of view investors as they determine the company's ability to generate earnings relative to its expenses 1.Operating Profit Margin and Net Profit Margin Due to its diversified operations and large size, IOCL has withstood pricing policies better than HPCL and BPCL. Due to its larger presence in the refineries sector, its profit margins are better. BPCL and HPCL are more dependent on their retail operations and their profit margins are highly sensitive to the pricing policy. 2.Return on Total Assets IOCL is most effective in using its assets to generate earnings before contractual obligations must be paid. As IOCL's asset turnover ratio and interest to assets ratio are not greater than those of HPCL and BPCL, it is evident that it is the higher profit margin that is the major contributor. 3.Return on Capital Employed ROCE for HPCL is maximum but ROTA is the lowest. This is because of greater dependence on short term unsecured loans for meeting financial obligations. E.Some Other Ratios 1.Dividend Per Share It is seen that the dividend per share closely follows the net profit. Both BPCL and HPCL have shown a rising trend as far as dividend announced is concerned. This is a positive sign for investors. 2.Net Profit Per Share Net profit per share again mimics the net profit values. Values for HPCL and BPCL show increasing trends, which is a positive sign. Comments on Ratios: The efforts by the GOI to keep OMC's balance sheet healthy through oil bonds and subsidarieshas given OMC's huge advantage. Financiers can be certain that OMC's debt and interest obligations will be met. However, the downside to such governmental support is that the OMC's can tend to be less concerned about their rate of return on investments. Individual company analysis is as follows: 1.IOCL IOCL is the best performer of the three. Its profit margins are much more than the industry average and it is not burdened by large amount of debt. Diverse operations along with strong financial backing from the GOI are responsible for its good performance. 2.BPCL In recent years, BPCL has been burdened with debt. A very large part of its operating profit goes in paying interest on accumulated debts. Profit margins are also below average.A positive is that it has maximum sales generation per unit asset. This shows it is utilizing its asset base efficiently. 3.HPCL Again, profit margins are below average. Its undiversified operations have left it exposed to the volatile pricing policy. Its debt structure is also unsatisfactory. It relies heavily on relatively expensive unsecured loans. Way Forward for the OMC's and GOI OMC's continue to be at the mercy of GOI's skewed pricing policy. Their financial dependence on the GOI is affecting investment plans also. Some of the steps OMC's could take to improve their financial standing are: 1.Expand their refining capacities. If India can successfully become a hub for exporting refined petroleum products, it will reduce under-recoveries. 2.Invest in new technologies such as ethanol blended petrol to reduce costs. On hand, the GOI wants to ensure fuel affordability and on the other, huge under-recoveries are disturbing India's fiscal deficit. If the GOI wants to meet its fiscal deficit target of 5.1% for FY 2012-2013, it will have to take strong steps. There needs to be a concrete long term policy on pricing. While deregulation of petrol prices is a promising step, it is alone not enough to bring down under-recoveries. Allowing market forces to determine prices of other fuels also will encourage private players to enter the retail market, heating up competition. Appendix+ BALANCE SHEET OF HPCL in Rs Crore. Mar '11Mar '10Mar '09 (12 months)(12 months)(12 months) SOURCES OF FUNDS Total Share Capital339.01339.01339.01 Equity Share Capital339.01339.01339.01 Share Application Money0.000.000.00 Preference Share Capital0.000.000.00 Reserves12206.7911218.9610391.62 Revaluation Reserves0.000.000.00 Networth12545.8011557.9711730.63 Secured Loans3657.681357.88698.49 Unsecured

Loans21363.5119926.4922056.68 Total Debt25021.1921302.3722755.17 Total Liabilities37566.9932860.3433485.80 (12 months)(12 months)(12 months) Application of Funds Gross Block29648.3924985.9620208.63 Less : Accum. Depreciation11003.869681.708554.08 Net Block18644.5315304.2611654.55 Capital Work in Progress3798.703890.005001.27 Investments11355.0211387.2214196.47 Inventories16622.2812579.228793.24 Sundry Debtors2654.372437.342240.91 Cash and Bank Balance75.49238.88604.43 Total Current Assets19352.1415255.4411638.58 Loans and Advances7234.325831.864620.23 Fixed Deposits4.514.293.88 Total CA, Loans and Advances26590.9721091.5916262.69 Deferred Credit0.000.000.00 Current Liabilities20997.4716707.5212411.59 Provisions1804.762105.211217.59 Total CL and Provisions22802.2318812.7313629.18 Net Current Assets3788.742278.862633.51 Miscellaneous Expenses0.000.000.00 Total Assets37566.9932860.3433485.80 Contingent Liabilities8158.204598.745588.88 Book Value (Rs)370.49341.32316.89 __________________________________________________________________________________ +Source for Balance Sheet and P&L accounts: http://www.moneycontrol.com Profit and Loss Account of HPCL in Rs Crore. Mar '11Mar '10Mar '09 (12 months)(12 months)(12 months) Income Sales Turnover142,396.49114,888.82131,802.84 Excise Duty9,182.707,588.256,867.82 Net Sales133,213.79107,300.57124,935.02 Other Income1,332.30883.67486.43 Stock Adjustment3,438.783,249.96-1,836.78 Total Income137,984.87111,434.20123,584.67 Expenditure Raw Materials126,018.95100,716.07114,637.24 Power and Fuel Cost339.56248.2119.02 Employee Cost2,017.161,617.321,137.19 Other Manufacturing Expenses598.40680.81416.21 Selling and Admin Expenses3,519.213,392.503,091.99 Miscellaneous Expenses836.22581.91495.31 Preoperative Exp Capitalised0.000.000.00 Total Expenses133,329.50107,236.82119,796.96 Mar '11Mar '10Mar '09 (12 months)(12 months)(12 months) Operating Profit3,323.073,313.713,301.28 PBDIT4,655.374,197.383,787.71 Interest887.04909.972,084.13 PBDT3,768.333,287.411,703.58 Depreciation1,406.951,164.40981.29 Other Written Off0.000.000.00 Profit Before Tax2,361.382,123.01722.29 Extra-ordinary Items-97.40-53.67138.68 PBT (Post Extra-ord items)2,263.982,069.34860.97 Tax724.97766.15275.92 Reported Net Profit1,539.011,301.37574.98 Total Value Addition7,310.556,520.755,159.72 Preference Dividend0.000.000.00 Equity Dividend474.08406.35177.78 Corporate Dividend Tax76.9167.4930.21 Per Share Data (annualized) Shares in Issue (lakhs)3,386.273,386.273,386.27 Earnings per Share (Rs)45.4538.4316.98 Equity Dividend (%)140.00120.0052.50 Book Value (Rs)370.49341.32316.89 CALCULATED RATIOS OF HPCL 201120102009 Operating Profit Margin 2.494539 3.08825 2.642398 Net Profit Margin 1.155293 1.212827 0.460223 ROCE 14.9724 17.12113 21.39419 ROTA 6.45793 6.72951 7.941008 ROE 12.26713 11.2595 4.901527 Current Ratio 1.166157 1.121134 1.193226 Quick Ratio 0.43718 0.452479 0.548048 Total Debt Equity Ratio 1.994388 1.843089 1.939808 Long Term Debt Equity Ratio 0.291546 0.117484 0.059544 Interest Coverage Ratio 3.66209 3.333055 1.346567 Inventory Turnover Ratio 8.021132 8.524918 13.62376 Debtors Turnover Ratio 50.18659 44.02364 55.75191 Total assets turnver ratio 3.546033 3.265352 3.730985 Operating profit per share (Rs) 98.13364 97.85723 97.49016 Net Profit per share (Rs) 45.44853 38.43078 16.97974 Dividend per share (Rs) 14.00006 11.99993 5.250024 Free Reserves per share 360.4789 331.3073 306.8751 BALANCE SHEET OF IOCL in Rs Crore. Mar '11Mar '10Mar '09 (12 months)(12 months)(12 months) SOURCES OF FUNDS Total Share Capital2427.952427.951192.37 Equity Share Capital2427.952427.951192.37 Share Application Money0.000.000.00 Preference Share Capital0.000.000.00 Reserves52904.3748124.8842789.29 Revaluation Reserves0.000.000.00 Networth55332.3250552.8344003.26 Secured Loans20379.6518292.4517565.13 Unsecured Loans32354.2226273.8027406.93 Total Debt52733.8744566.2544972.06 Total Liabilities108066.1995119.0888975.32 (12 months)(12 months)(12 months) Application of Funds Gross Block92696.6971780.6062104.64 Less : Accum. Depreciation34509.2930199.5327326.19 Net Block58187.4041581.0734778.45 Capital Work in Progress12620.4421268.6318186.05 Investments19544.7622370.2532232.13 Inventories49284.5236404.0825149.60 Sundry Debtors8869.655799.285937.86 Cash and Bank Balance643.92916.56796.56 Total Current Assets58798.0943119.9231884.02 Loans and Advances25454.0917453.0113348.99 Fixed Deposits650.50398.551.46 Total CA, Loans and Advances84903.0860971.4845234.47 Deferred Credit0.000.000.00 Current Liabilities60441.1840818.9638890.28 Provisions6763.4610271.562603.46 Total CL and Provisions67204.6451090.5241493.74 Net Current Assets17698.449880.963740.73 Miscellaneous Expenses15.1518.1737.96 Total Assets108066.1995199.0888975.32 Contingent Liabilities31505.3325715.0726317.31 Book Value (Rs)227.90208.21368.86 Profit and Loss Account of IOCL in Rs Crore. Mar '11Mar '10Mar '09 (12 months)(12 months)(12 months) Income Sales

Turnover357,275.89291,272.84329,806.88 Excise Duty26,141.0421,834.7622,682.89 Net Sales331,134.85269,438.08307,123.99 Other Income3,554.943,189.68-2,905.92 Stock Adjustment4,972.935,044.25-1,674.56 Total Income339,662.72277,672.01302,543.51 Expenditure Raw Materials299,806.97240,712.77273,708.98 Power and Fuel Cost1,880.24369.45447.19 Employee Cost6,429.585,723.965,686.96 Other Manufacturing Expenses1,638.361,385.831,053.32 Selling and Admin Expenses13,378.7911,386.0610,709.66 Miscellaneous Expenses1,249.03733.59804.51 Preoperative Exp Capitalised-945.24-1,121.28-544.01 Total Expenses323,437.73259,190.38291,866.61 Mar '11Mar '10Mar '09 (12 months)(12 months)(12 months) Operating Profit12,670.0515,291.9513,582.82 PBDIT16,224.9918,481.6310,676.90 Interest2,702.141,572.354,020.98 PBDT13,522.8516,909.286,655.92 Depreciation4,546.673,227.142,881.71 Other Written Off132.04133.98317.64 Profit Before Tax8,844.1413,548.163,456.57 Extra-ordinary Items-41.93-36.52915.26 PBT (Post Extra-ord items)8,802.2113,511.644,371.83 Tax1,297.713,097.871,364.71 Reported Net Profit7,445.4810,220.552,949.55 Total Value Addition23,630.7618,477.6118,157.63 Preference Dividend0.000.000.00 Equity Dividend2,306.553,156.34910.48 Corporate Dividend Tax358.70508.83154.74 Per Share Data (annualized) Shares in Issue (lakhs)24,279.5224,279.5211,923.74 Earnings per Share (Rs)30.6742.1024.74 Equity Dividend (%)95.00130.0075.00 Book Value (Rs)227.90208.21368.86 CALCULATED RATIOS OF IOCL 201120102009 Operating Profit Margin 3.826251 5.675497 4.422585 Net Profit Margin 2.248474 3.793283 0.960378 ROCE 13.40293 17.12957 11.32161 ROTA 9.390189 12.39804 7.834229 ROE 13.45593 20.21756 6.703026 Current Ratio 1.263351 1.193401 1.090152 Quick Ratio 0.530001 0.48086 0.484046 Total Debt Equity Ratio 0.953039 0.881578 1.022017 Long Term Debt Equity Ratio 0.368314 0.361848 0.399178 Interest Coverage Ratio 4.321878 9.701714 1.938629 Inventory Turnover Ratio 6.562664 7.119817 11.60522 Debtors Turnover Ratio 37.33347 46.46061 51.72301 Total assets turnver ratio 3.064185 2.83264 3.451789 Operating profit per share (Rs) 52.1841 62.98292 113.9141 Net Profit per share (Rs) 30.66568 42.09535 24.73679 Dividend per share (Rs) 9.499982 13.00001 7.635859 Free Reserves per share 217.8971 198.2118 358.858 BALANCE SHEET OF BPCL in Rs Crore. Mar '11Mar '10Mar '09 (12 months)(12 months)(12 months) SOURCES OF FUNDS Total Share Capital361.54361.54361.54 Equity Share Capital361.54361.54361.54 Share Application Money0.000.000.00 Preference Share Capital0.000.000.00 Reserves13696.0812725.1711766.57 Revaluation Reserves0.000.000.00 Networth14057.6213086.7112128.11 Secured Loans4033.1010433.873661.60 Unsecured Loans14938.7711751.3317509.81 Total Debt18971.8722195.2021171.41 Total Liabilities33029.4935281.9133299.52 (12 months)(12 months)(12 months) Application of Funds Gross Block29334.2325412.5222522.33 Less : Accum. Depreciation13334.9011743.1710566.54 Net Block15999.3313669.3511965.79 Capital Work in Progress1012.231517.751037.48 Investments11377.9612201.3216715.19 Inventories15375.0812028.861823.92 Sundry Debtors2664.422662.681425.67 Cash and Bank Balance379.03341.43440.62 Total Current Assets18418.5315032.978690.21 Loans and Advances10239.0210894.228584.04 Fixed Deposits0.940.930.93 Total CA, Loans and Advances28658.4925928.1217275.18 Deferred Credit0.000.000.00 Current Liabilities20848.4916454.0412981.68 Provisions3170.032580.591712.44 Total CL and Provisions24018.5219034.6314694.12 Net Current Assets4639.976893.492581.06 Miscellaneous Expenses0.000.000.00 Total Assets33029.4935281.9133299.52 Contingent Liabilities9943.949382.975862.61 Book Value (Rs)388.82361.97335.45 Profit and Loss Account of BPCL in Rs Crore. Mar '11Mar '10Mar '09 (12 months)(12 months)(12 months) Income Sales Turnover163,218.36131,499.81145,392.07 Excise Duty12,380.0311,282.7311,318.64 Net Sales150,838.33120,217.08134,073.43 Other Income1,321.041,190.10-298.74 Stock Adjustment2,056.053,989.85-1,575.88 Total Income154,215.42125,397.03132,198.81 Expenditure Raw Materials141,028.03113,884.03121,991.29 Power and Fuel Cost475.89237.1267.17 Employee Cost2,802.852,141.121,884.88 Other Manufacturing Expenses410.13384.72347.09 Selling and Admin Expenses3,331.543,186.952,870.03 Miscellaneous Expenses1,335.33888.34796.46 Preoperative Exp Capitalised0.000.000.00 Total Expenses149,383.77120,722.28127,956.92 Mar '11Mar '10Mar '09 (12 months)(12 months)(12 months) Operating Profit3,510.613,484.654,540.63 PBDIT4,831.654,674.754,241.89 Interest1,100.781,010.952,166.37 PBDT3,730.873,663.802,075.52 Depreciation1,655.401,242.321,075.53 Other Written Off0.000.000.00 Profit Before Tax2,075.472,421.48999.99 Extra-ordinary Items247.45-60.11-2.97 PBT (Post Extra-ord items)2,322.922,361.37997.02 Tax776.24823.75261.12 Reported Net Profit1,546.681,537.62735.90 Total Value Addition8,355.746,838.255,965.63 Preference Dividend0.000.000.00 Equity Dividend506.16506.16253.08 Corporate Dividend Tax71.0872.7731.45 Per Share Data (annualized) Shares in Issue (lakhs)3,615.423,615.423,615.42 Earnings per Share (Rs)42.7842.5320.35

Equity Dividend (%)140.00140.0070.00 Book Value (Rs)388.82361.97335.45 CALCULATED RATIOS OF BPCL 201120102009 Operating Profit Margin 2.327399 2.898631 3.386674 Net Profit Margin 1.025389 1.279036 0.548878 ROCE 14.63435 10.83549 18.38077 ROTA 8.015443 7.223447 8.715651 ROE 11.00243 11.74948 6.067722 Current Ratio 1.193183 1.362155 1.175653 Quick Ratio 0.553049 0.730209 0.711255 Total Debt Equity Ratio 1.349579 1.696011 1.745648 Long Term Debt Equity Ratio 0.286898 0.797287 0.30191 Interest Coverage Ratio 2.885454 3.395252 1.461597 Inventory Turnover Ratio 9.715967 10.03605 18.75123 Debtors Turnover Ratio 56.61207 45.1489 94.0424 Total assets turnver ratio 4.566777 3.407329 4.026287 Operating profit per share (Rs) 97.10103 96.38299 125.5907 Net Profit per share (Rs) 42.78009 42.5295 20.35448 Dividend per share (Rs) 14.00003 14.00003 7.000017 Free Reserves per share 378.824 351.9693 325.4551