Financial Analysis and Performance of Oil and Natural Gas Corporation-For the Period of 2007 to 2012

Finance is regarded as the base of a business enterprise. This is because in the modern money-oriented economy, finance is one of the basic foundations of all kinds of economics activities. Finance provides access to the entire source being employed in manufacturing and merchandising activities. However, it is also true that money begets more money only when it is properly managed. Hence, efficient management of every business enterprise is closely linked with efficient management of its finance. Financial analysis is very most important for every company/ industries to measure and evaluate its performance in financial aspects. Financial analysis may be used mainly to evaluate issues such as, overall performance, profitability, liquidity, solvency and effectiveness, credit policies and externally the potential investment as well as credit worthiness of borrowers etc. It helps to identifying the financial process, strength and weakness of the company/industry. One of the most important and powerful tool of financial analysis is trend analysis. The study is based on secondary data collected from the Annual Reports of ONGC, Annual Reports and other secondary sources. Finance as a resource, in this industry needs to be improved today. Improvement of financial is possible by the way of proper planning and utilization of funds. Finance is a means which improves the performance of this core industry. Financial analysis helps a company to diagnose its profitability and financial soundness. Due to the above reasons this study namely financial statement analysis of OIL AND NATURAL GAS CORPORATION is necessary and is undertaken.