A Study of business analysis oil & Natural Gas Corporation RJ Capital Overseas Pvt Ltd, Pune(MBA Finance)

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SANJIVANI RURAL EDUCATION SOCIETY’S, COLLEGE OF
ENGINEERING,
DEPT. OF MBA
Certificate
This is to certify that Mr.Rohit Arun wagh has submitted a summer project on
“A study of Business Analysis Of Pratibha Oil & Natural Gas Corporaion”to
Savitribai Phule Pune University of Pune for the partial fulfilment of Master in
Business Administration (M.B.A.).
We further certify that to the best of our knowledge and belief, the matter
presented in this project has not been submitted to any other Degree or Diploma
course.
P.S.Kawle Prof.B. M.Londhe
Internal Guide Head of Department

External Examiner
Declaration
I undersigned hereby declares that, the project titled “A Study Of Business Analysis Of Pratibha Oil
& Natural Gas Corporation“ is executed as per the course requirement of two year full time MBA
program of University of Savitribai Phule Pune University. This report has not submitted by me or
any other person to any other University or Institution for a degree or diploma course. This is my
own and original work.
Place:…………….. Sd.
Date:…………….. Rohit Arun Wagh.
MBA-2013-15

ACKNOWLEDGEMENT
Firstly I would like to thank RJ CAPTIAL OVERSEAS PVT.LTD for giving me such a challenging project
to work upon. I hope this challenge has brought best out of me. It has been an honour and
privilege to undergo training at the company.
I would like to take an opportunity to express my humble gratitude to my industry mentors Miss.
Purnima Singh (F&A) Officer in RJ CPATIAL OVERSEAS PVT.LTDfor their guidance and constant
supervision as well as for providing necessary information regarding the project & also for their
support in completing the project. Their constant guidance and willingness to share their vast
knowledge made me understand this project and its manifestations in great depths and helped me
to complete the assigned tasks.
I am also thankful to my Faculty mentor Prof. Pooja Kawale whose invaluable guidance helped me
understand the project better and also helped me through the completion of the project report.
I am also thankful to all the employees of RJ CAPTIAL who were very cooperative and provided
their maximum support to me in the completion
of the report. Finally, I express my thankfulness to all those who have directly or indirectly
contributed towards the successful completion of this report.
The project was a great learning experience.
Rohit Arun Wagh.

INDEX
Chapter
No.
Chapter Name Page No.
1. Executive Summary
2. Introduction
3. Industry Profile
4. Company Profile
5. Product Profile
6. Objective of Study
7. ResearchMethodology
(i) Primary Data
(ii) Secondary Data
(iii) Sampling
(iv) Scope of the study
(v) Limitations of the study
8. Theoretical Background of the study
9. Data Analysis and Interpretation
10. Findings
11. Conclusion
12. Suggestions
13. Learning objective
14. Bibliography
Annexure

Executive summary
For any project, a proper planning is required and the same holds true in case of present study. This project
is titled as “A Study Of Business Analysis Of Pratibha Oil & Natural Gas Corporation.” The reason behind
choosing this project is that I find there is very interesting topic because Business Analysis is the process of
analysis of business. Pratibha oil and natural gas Corporation was incorporated on 20thjuly 2008 to explore
the business prospects in the Indian oil and natural gas market. The main promoter, with more than 20 years
experience in the shipping industry. The key management team have extensive experience in the shipping
and oil and natural gas industry and enjoy an excellent reputation in the market
Business Analysis is done with the help of financial Reports ,Environmental records and company
projections received from the authorities.
For my project, I used primary as well as secondary data. This project is divided into three main parts i.e.
1. Study of Business Analysis.
2. Study of Environmental Analysis.
3. Study of financial Analysis.
I have done my summer internship in the company which is financial Advisory that is Rj Capital Overseas
pvt ltd.
The main Intention behind conducting this research to check feasibility of oil business in India the study
Of composed of Business analysis in various parameter such as environmental analysis in financial

Analysis.
CChhaapptteerr
NNoo.. 22

Introduction
I have great pleasure in presenting my project report. The subject of my project is “A Study Of Business
Analysis Of Pratibha Oil & Natural Gas Corporation”
I have done my internship in the company which is related to the financial advisory that is Rj Capital
Overseas pvt ltd.
Business analysis is the set of tasks and techniques used to work as a liaison among stakeholders in order to
understand the structure, policies, and operations of an organization, and to recommend solutions that enable
the organization to achieve its goals.
Business analysis involves understanding how organizations function to accomplish their purposes, and
defining the capabilities an organization requires to provide products and services to external stakeholders. It
includes the definition of organizational goals, how those goals connect to specific objectives, determining
the courses of action that an organization has to undertake to achieve those goals and objectives ,and
defining how the various organizational unit sand stakeholders within and outside of that organization
interact.
Business analysis may be performed to understand the current state of an organization or to serve as a basis
for the later identification of business needs. In most cases, however, business analysis is performed to
define and validate solutions that meet business needs, goals, or objectives.
Business analysts must analyze and synthesize information provided by a large number of people who
interact with the business, such as customers, staff, IT professionals, and executives. The business analyst is
responsible for eliciting the actual needs of stakeholders, not simply their expressed desires. In many cases,
the business analyst will also work to facilitate communication between organizational units. In particular,
business analysts often play a central role in aligning the needs of business units with the capabilities
delivered by information technology, and may serve as a "translator" between those groups. A business
analyst is any person who performs business analysis activities, no matter what their job title or
organizational role may be. Business analysis practitioners include not only people with the job title of
business analyst, but may also include business systems analysts, systems analysts, requirements engineers,
process analysts, product managers, product owners, enterprise analysts, business architects, management
consultants, or any other person who performs the tasks described in the BABOK® Guide , including those
who also perform related disciplines such as project management, software development, quality assurance,
and interaction design.

INDUSTRY PROFILE -OIL & GAS INDUSTRY
India is the fifth largest consumer of energy in the world, and is likely to surpass Japan and
Russia to become the world's third biggest energy consumer by 2030. According to the
International Energy Agency (IEA), hydrocarbons satisfy major energy demand in India
wherein coal and oil, together, represent about two-thirds of total energy use. Natural gas
accounts for about 7 per cent share. According to Oil & Gas Journal (OGJ), India has about
5.7 billion barrels of proven oil reserves. India's oil and gas sector has attracted investors
round the globe as the country enjoys rich reserves of resources.
The petroleum and natural gas industry in India has attracted foreign direct investment (FDI)
worth US$ 3, 332.78 million during April 2000 to December 2011, according to the data
provided by Department of Industrial Policy and Promotion (DIPP). The Department further
recorded US$ 196 million during April– December 2011-12, in the industry.
Oil & Gas- Market Dynamics:
Production and Consumption:
According to the provisional production data released by the Ministry of Petroleum and
Natural Gas in a press release:
 Crude Oil production was recorded at 31.87 million metric tonnes (MMT) for April-
January 2012, as compared to the 31.41 MMT in April-January 2011
 Natural Gas production was 40, 156.7 million cubic metres (MCM) during April-
January 2011
 During April-January 2012, 140.73 MMT of crude oil was refined, compared to
136.49 MMT of oil refined during corresponding period in 2011
According to Business Monitor International (BMI)'s India Oil and Gas Report for first
quarter of 2012, India's average oil and liquids production for 2011 is estimated at 1.04
million barrels per day (B/D) which will touch the peak production at 1.06 million B/D in
2012. Further, giving its demand outlook, BMI projects consumption to rise sharply to 4.29
million B/D by 2016 from 3.44 million B/D in 2011. Total gas consumption is estimated by
BMI at around 81 billion cubic meters (BCM) in 2016 from around 58 BCM in 2011.

Diesel & Petrol:
Around 40 per cent of fuel consumption in India is satisfied by diesel. According to IEA,
there would be an increase in India's fuel demand by 3.8 per cent which would be majorly
accounted by diesel and petrol (gasoline). IEA expects diesel's demand to have increased to
1.37 million b/d in 2011 (rising by 5.8 per cent) and further it projects an increment of 5.5 per
cent in 2012 at around 1.44 million b/d.
Demand for petrol is expected to have expanded by 7.6 per cent (363,000 B/D) in 2011 and is
projected to increase by another 6.7 per cent (388,000 B/D) in 2012. The Ministry of
Petroleum anticipates a growth of 4.6 per cent in the sale of oil products in the FY12.
Gas:
Development of gas-fuelled power stations in India is boosting the demand for gas in the
country. BMI states that gas consumption in India has increased by more than 160 per cent
since 1995 while average annual demand would grow by 6 per cent over next few years. Gas
production is estimated at 50 BCM in 2011 while total gas consumption is predicted at 81
BCM in 2016 from an estimated 58 BCM in 2011 by BMI.
The Oil & Gas (Petroleum Industry) is usually divided into three major components:11

UPSTREAM
MIDSTREAM
DOWNSTREAM
UPSTREAM SECTOR:
The upstream oil sector is a term commonly used to refer to the searching for and the recovery
and production of crude oil and natural gas. This sector is also known as the Exploration and
Production (E&P) Sector.
The upstream sector includes the searching for potential underground or underwater oil & gas
fields, drilling of exploratory wells, and subsequently operating the wells that recover and
bring the crude oil and/ or raw natural gas to the surface.
MIDSTREAM SECTOR:
The midstream industry processes, stores, markets and transport commodities such as crude
oil, natural gas, natural gas liquids (NGLs mainly ethane, propane and butane) and sulphur.
Midstream operations are included under the downstream category.
DOWNSTREAM SECTOR:
The downstream oil sector is a term commonly used to refer to the refining of crude oil, and
the selling and distribution of natural gas and products derived from crude oil. Such products
include Liquefied petroleum gas (LPG), gasoline or petrol, jet fuel, diesel oil, and other fuel
oils.
The downstream sector includes oil refineries, petrochemical plants, petroleum products
distribution, retail outlets and natural gas distribution companies. The downstream industry
touches consumers through thousands of products such as gasoline, diesel, jet fuel, heating
oil, asphalt, lubricants, synthetic rubber, plastics, fertilizers, antifreeze, pesticides,
pharmaceuticals, natural gas and propane. The Indian petroleum industry is one of the oldest
in the world, with oil being struck at Makum near Margherita in Assam in 1867 nine years
after Col. Drake’s discovery in Titusville. The industry has come a long way since then. For
nearly fifty years after independence, the oil sector in India has seen the growth of giant
national oil companies in a sheltered environment. A process of transition of the sector has
begun since the mid-nineties, from a state of complete protection to the phase of open
competition. The years since independence have however, seen the rapid growth of upstream
and downstream oil sectors. The sector in recent years has been characterized by rising

consumption of oil products.
INDIA’S CRUDE MIX
A look at the concept of crude benchmarks and their relevance for deciding the price of fuels
in INDIA.
CRUDE OIL BENCHMARK:
Crude oil benchmarks are reference points for the various kinds of oil blends that are available
in the market. Known as oil markers, they were first introduced in the 1980’s and are used to
establish trading standards for the commodity. While there are many crude oil benchmarks,
the three primary ones are WTI, BRENT BLEND and DUBAI BLEND. Crude oil extracted
from different parts of the world differ in terms of physical properties such as colour,
viscosity and relative weight and composition. Their classification is based primarily on the
geographic location and properties such has sulphur content and relative weight. Some blends
are considered to others. For example, crude oil blends with lesser amount of sulphur are
characterised as sweet while a blend with higher sulphur content is known as sour.
BENCHMARK USED FOR THE INDIAN MARKET:
INDIA sources its crude oil requirements mostly from Far East, Gulf region, Mediterranean,
West Africa and Latin American sources. Because of the diversity in INDIA’s sourcing, the
regular crude benchmarks do not serve INDIA’s purpose. The country, therefore, has its own
benchmark ‘Indian basket’ that is used for pricing and subsidy calculation purposes. The
INDIAN basket uses OMAN/DUBAI for sour grade crude and brent for sweet the sweet
grade one in the ratio of 65.2 and 34.8.
Under-recoveries and calculation
An under-recovery means recovering less than what could have been realised had the product
been sold at the notional market price. Under –recoveries should not be confused with losses
as for a loss to occur the sale price has to be less than the cost of producing the fuel. In other
words, under-recovery means recovering less than what could have been realised. That's what

the OMCs have been forced to do for long in the case of two auto fuels — petrol and diesel —
and two cooking fuels — kerosene and liquefied petroleum gas (LPG). These products are
sold at less than notional market price (or trade parity price, as the government terms it) to
make them affordable for the consumer. The resulting gap between selling price and market
price constitutes under-recoveries. So, who pulls this mighty burden; three groups — the
government (which compensates OMCs — earlier through bonds and now by cash), the
upstream companies viz. ONGC, Oil India and GAIL (through product discounts to the
OMCs), and finally the OMCs themselves. The share has varied, depending on how much the
government bears.
A big problem for OMCs is uncertainty in the quantum and timing of the government
compensation. With piecemeal announcements and delayed disbursements, OMCs are kept on
tenterhooks, earnings yo-yo wildly, cash flows are affected, and they are forced to borrow
copious amounts to keep the show running, till reinforcements finally come in. Upstream
companies also suffer from suboptimal realisations. Clearly, not the best of situations for an
industry which needs massive investments to improve the country's energy security. In effect,
OMCs may be bearing a portion of the under-recovery burden, yet manage to post profits. Of
course, if under-recoveries to be borne becomes too large, OMCs would slip into the red.
More transparency in the under-recovery calculations would help get a correct sense of the
real burden. The calculation of under – recoveries is done by using formulas prescribed by the
government’s Petroleum Planning and Analysis Cell.

COM
PAN
Y HISTORY -
Pratibha Oil and Natural gas Shipping Company Limited was incorporated on 20
th
February 1995 by Indian
Technocrats from various fields to explore the business prospects in the Indian oil tanker market. The main
promoter is Mr Sunil A Pawar, a Marine Engineer with more than 20 years experience in the industry. The
Company is engaged in the business of operating and managing oil tankers and commenced its business with
the acquisition of its first product tanker on 9
th
September 1995.
The Indian promoters entered into a joint venture with Anders Wilhelmsen (Mauritius) a subsidiary of
AWILCO Group of Anders Wilhelmsen AS, Norway listed on NASDAQ, having global net-worth of about
USD 10 billion.
On completion of initial five years, the foreign partner opined that the Indian operation was too small and
time-consuming and hence decided to opt out of the joint venture by offering to Indian promoters their
equity holdings. In December 2002, the Indian promoters settled the foreign debts and acquired 100% equity
of the Company. The Company had one vessel at that time (MT Pratibha Cauvery). Subsequently the
company multiplied her fleet to eight vessels. In the span of six years deadweight increased from 28,741 MT
to 406,202 MT.
Pratibha Shipping Company Limited (PSCL) was incorporated on 20
th
February 1995 to explore the business
prospects in the Indian Oil Tanker Market. The main promoter, Mr. Sunil Pawar, is a Marine Engineer with
more than 20 years experience in the shipping industry. Mr. Sunil A Pawar and the key management team
have extensive experience in the shipping industry and enjoy an excellent reputation in the market.
PSCL caters to the liquid cargo segment within the Shipping Sector. It owns seven medium sized
product tankers and 1 suezmax size crude carrier. It caters to the transportation of clean as well as dirty
crude liquid cargo. Total Dead Weight Tonnage (DWT) of the fleet is 406,202 tones. As a business
strategy, the Company has employed its vessels on time charter with leading Indian Public Sector Oil
Companies/foreign players. This ensures that the revenues and cash flows are insulated from short term

volatility in freight rates and leads to extremely low counter party credit risk. Currently total fleet of MR
vessels is employed on a time charter basis and the suezmax tanker will be ready for trading in spot
markets on her completion of routine dry-dock.
The Company successfully serviced a 4 year Contract of Affreightment (COA) for transportation of about 3
million tons of clean petroleum products from New Mangalore to Mauritius on account of the State Trading
Corporation, Mauritius.
We are exploring possibilities of bagging similar COA’s for both crude oil as well as for petroleum
products.
Vision and Mission Statement –

Vision -
 To adopt simple procedures for safe transportation / storage of oil cargo with concern / safety to life,
marine environment and other properties.
 “To grow company’s assets in line with the economic growth and demand, with mutual benefits towards
its business associates clients and principles by honouring commitments.”
Company Objective –
 To serve our client to best satisfaction in service we are provide without compromising on safety and
safeguard in marine environment.
 To ensure compliance and work as per the regulation set of the flag state and classification society.
 To Endeavour to improve, simplify and better our operation to derive quality product services by
utilizing the available resources in the best possible manner.
 To adopt working practice that will ensure prevention of personnel injury or loss of life.
 To adopt operating procedure that will ensure safe transportation of cargo at all time.
Company policies –
 Aspire and remain committed to deliver desired quality services to benefit the needs of our clients &
charterers.
 Endeavour to develop and upgrade the system to improve the performance.
 Contribute in developing and improving the system by adopting simple advanced technology so as to
translate and deliver the expected needs of our customer to their satisfaction.
 Priorities safety at all levels while performing; conducting and operating the company owned vessels
and prevent damages to any properties.

Subsidiaries Company of Pratibha oil and Natural gas shipping co.
1. Pratibha Logistics Private Limited
2. Pratibha Oil & Natural Gas Private Limited
3. Pratibha Offshore Private Limited
4. Chandrabhaga Sugars Private Limited
5. Pratibha Marine Private Limited
Pratibha Logistics (S) Pte. Ltd–
(Subsidiary in Singapore of Pratibha Logistics Private Limited) Pratibha Logistics Private Limited has been
established for diversification of business in Dry cargo sector. This company owns a panamax tanker which
is being converted to a supramax size Dry-bulk carrier. There are plans to acquire some more bulk-carrier
and enter vigorously into Dry-cargo shipping and also in trading activities like export of iron ore and import
of coal.
Pratibha Oil & Natural Gas Private Ltd –
Participated in NELP-VII and NELP-IX tender floated by the Directorate General of Hydrocarbons. The
Directorate General of Hydrocarbons has declared the Company as a frontrunner for block CB-ONN-
2010/04 Onland Type S Block in NELP-IX tender.
Diversification plan -
1. Along with the primary activities in oil sector, the Company is actively evaluating possibilities of
entering into other areas like ship-building, infrastructure projects, construction, steel mill, coal and
hospitality business as backward integration.
2. The Company is evaluating various opportunities in shipping and oil exploration activities and has
short-listed a few projects after extensive evaluation.

MajorClients –
International Clients Indian clients
1. State Treading Corporation
Mauritius.
1.Indain Oil and Corporation
2. Iran Petrochemical commercial
Company
2.Hindustan Petroleum Co. ltd
3. Winsway, Singapore 3. Bharat petroleum Co.ltd
4. Glencore Singapore
4. Mangalore Refinery Petrochemicals
Ltd
5. Chem oil 5. Reliance industrial ltd
6. Galana Petroleum 6. Essar oil ltd
SwotAnalysis of PONG –
1) STRENGTHS
1. Pratibha Industries has a diversified with book order presence across multiple verticals. This provides a
unique hedge to the company in case of slowdown in orders from any particular segment.
2.We utilize the available resources in the best possible manner so as to ensure safety at sea and prevent damage
to environment

2. Weakness
1. The company's debt equity ratio stood at 1.1 xs as of FY09. Apart from resulting in higher interest outgo,
highly leveraged businesses are the ones which get hurt the most during a crisis.
3. P.O.N.G is facing difficulties to produce oil from ageing reservoirs
2. Although construction companies typically enter into price variability clause with regards to fluctuation in
the prices of key raw materials, it does not fully hedge the company from wild swings in raw material prices.
3. Opportunities
1. New division - Hydrocarbon - presents a great opportunity for the company to cash in on the incremental
business.
2. Historically, the company's operations focused more or less in the state of Maharashtra. However, over
time the company has diversified into other states as well.
4. Threats
1. The industry operates at wafer thin margins. Unviable bidding by competitors in order to just gain an
entry into the business can impact the top-line of the company.
2. Weak government finances can impact the order inflows of the company.

PRODUCT PROFILE-
Natural gas –
 Until such time as the total availability of Natural Gas from all Petroleum production activities in
India meets the total national demand as determined by the Government, each Company comprising
the Contractor, shall sell in the domestic market in India all of the Company's entitlement to Natural
Gas from the Contract Area.
 If India attains self‐sufficiency in Natural Gas, during any year, the Government shall advise the
company (ies) accordingly by a written notice. In such an event, domestic sale obligation shall be
suspended for such period as may be specified by the Government, and the Company shall have the
right to lift and export its Participating Interest share of Natural Gas during the said period, subject to
any other extant policy guidelines of the Government applicable from time to time.
 If self‐sufficiency ceases to exist, the position shall revert to domestic sale obligation as outlined in
Article 21.1The Contractor shall have the right to use Natural Gas produced from the Contract Area
for the purpose of Petroleum Operations including reinjection for pressure maintenance in Oil Fields,
gas lifting and captive power generation required for Petroleum Operations.
 For the purpose of domestic sale obligation, the Contractor shall have freedom to market the Natural
Gas and sell its entitlement as per Government Policy for utilization of gas among different sectors.
 For purposes of Article 21, the Government may from time to time frame policy for utilization of gas
among different sectors, both for Associated Natural Gas (ANG) as well as Non‐Associated Natural
Gas (NANG) which would cover issues relating to gas supplies to different consumer sectors.

Associated Natural Gas (ANG) -
 In the event that a Discovery of Crude Oil contains ANG, the Contractor shall declare in the proposal
for the declaration of the said Discovery as a Commercial Discovery as specified in Article 10,
whether (and by what amount) the estimated production of ANG is anticipated to exceed the
quantities of ANG which will be used in accordance with Article 21.2 (such excess being hereinafter
referred to as "the Excess ANG"). In such an event the Contractor shall indicate whether, on the basis
of the available data and information, it has reasonable grounds for believing that the Excess ANG
could be commercially exploited in accordance with the terms of this Contract along with the
Commercial Production of the Crude Oil from the Contract Area, and whether the Contractor intends
to so exploit the Excess ANG.
 Based on the principle of full utilisation and minimum flaring of ANG, a proposed development plan
for an Oil Discovery shall, to the extent practicable, include a plan for utilisation of the ANG
including estimated quantities to be flared, reinjected, and to be used for Petroleum Operations; and,
if the Contractor proposes to commercially exploit the Excess ANG for sale in the domestic market
in accordance with Government's policy, or elsewhere, the proposed plans for such exploitation.
 If Contractor wishes to exploit the Excess ANG, subject to Article 21.1, the Contractor shall be free
to explore markets for the commercial exploitation of the said Excess ANG and submit its proposals
for such exploitation to the Government in accordance with Article 21.4.2.
 Where the Contractor is of the view that the Excess ANG cannot be commercially exploited and
chooses not to exploit the said Excess ANG, or is unable to find a market for the Excess ANG
pursuant to Article 21.4.3, the Government shall be entitled to take and utilise such Excess ANG free
of any cost/charge.
 As soon as practicable after the submission of the proposed development plan, the Contractor and the
Government or its nominee shall meet to discuss the sale and/or disposal of any ANG discovered
with a view to giving effect to the provisions of this Article 21 in a timely manner.

Non Associated Natural Gas (NANG)
 In the event of a Discovery of NANG in the Contract Area, the Contractor shall promptly report
such Discovery to the Management Committee and the Government and the provisions of
Articles 10.1 and 10.2 shall apply. The remaining provisions of Article 10 would apply to the
Discovery and development of NANG only insofar as they are not inconsistent with the
provisions of this Article. Notwithstanding the provisions of Article 3, the Contractor shall be
entitled to retain the Discovery Area subject to the provisions of this Article 21.
 If, pursuant to Article 10.1, the Contractor gives notification that the Discovery is of potential
commercial interest, the Contractor shall submit to the Management Committee, within one (1)
year from the date of notification of the above said Discovery, the proposed Appraisal
Programme, including a Work Programme and Budget to carry out an adequate and effective
appraisal of such Discovery, to determine (i) without delay, whether such Discovery is a
Commercial Discovery and (ii) with reasonable precision, the boundaries of the area to be
delineated as the Development Area. Such proposed Appraisal Programme shall be supported by
all relevant data such as Well data, Contractor's best estimate of reserve range and production
potential, and shall indicate the date of commencement of the proposed Appraisal Programme.
 The proposed Appraisal Programme together with the Work Programme and Budget referred to
in Article 21.5.2 shall be reviewed by the Management Committee within sixty (60) days of its
submission by the Contractor. The Management Committee shall offer its comments within the
said period. The said Appraisal Programme together with the Work Programme and Budget
submitted by the Contractor as revised or modified or amended in light of the Management
Committee review and advice, shall be adopted as the Appraisal Programme and the Contractor
shall promptly proceed with implementation of the said Programme.
 If the Contractor declares the Discovery a Commercial Discovery after taking into account the
advice of the Management Committee as referred to in the Article 21.5.5, the Contractor shall,
within one (1) year of the declaration of the Discovery as a Commercial Discovery, submit a
development plan for the development of the Discovery to the Management Committee for
approval. Such plan shall be supported by all relevant information including, inter alia, the
information required.

Crude Oil–
 A price for Crude Oil shall be determined for each Month or such other period as the Parties
may agree (hereinafter referred to as "the Delivery Period") in terms of United States Dollars
per Barrel, on import parity basis (with marine freight being determined on the basis of nearest
port to the Contract Area) for Crude Oil produced and sold or otherwise disposed of from
Contract Area, for each Delivery Period, in accordance with the appropriate basis for that type
of sale or disposal specified below. Subject to the provisions of this Article 19, it is clearly
understood that the actual prices invoiced by the Company(ies) for the sales will form the basis
for the purposes of cost recovery, Profit Petroleum sharing and payment of royalty as provided
in the Articles 15, 16 and 17 respectively. The basis of valuation given in this Article for the
purpose of Article 15, 16 and 17 shall apply only where Government is of the view that sale
prices realised by the Company(ies) are not consistent with the price realisable at Arms Length
Sales.
 In the event that some or all of a Company's or Contractor's total sales of Crude Oil during a
Delivery Period are made to third parties at Arms Length Sales, all sales so made shall be
valued at the weighted average of the prices actually invoiced by a Company calculated by
dividing the total invoice value from all such sales at the Delivery Point by the total number of
Barrels of the Crude Oil sold in such sales.
 Each Company constituting the Contractor shall separately submit to the designated nominee of
the Government, within fifteen (15) days of the end of each Delivery Period, a report
containing the actual prices invoiced in their respective Arms Length Sales for any Crude Oil.
Such reports shall distinguish between term sales and spot sales and itemize volumes,
customers, prices received and credit terms, and a Company shall allow the designated
nominee(s) of the Government to examine the relevant sales contracts.
 19.4 For the purpose of determining price at Arms Length Sales, the price of the Crude Oil at
which sale takes place will generally be based on per Barrel of one or more crude oils which, at
the time of calculation, are being freely and actively traded in the international market and are
similar in characteristics and quality to the Crude Oil in respect of which the price is being
determined, selling price to be ascertained from Platt's Crude Oil Market Wire daily publication

("Platt's"), or the spot market for the same crude oils ascertained in the same manner,
whichever price more truly reflects the current value of such crude oils. For any Delivery
Period in which sales take place, the price shall be the arithmetic average price per Barrel
determined by calculating the average for such Delivery Period of the mean of the high and low
FOB prices for each day of the crude oils selected for comparison adjusted for differences in
the Crude Oil and the crude oils being compared for quality, transportation costs, delivery time,
quantity, payment terms and other contract terms to the extent known and other relevant
factors. In the event that Platt's ceases to be published or is not published for a period of thirty
(30) consecutive days, the Parties shall agree on an alternative daily publication. The
Contractor shall make available all the data pertaining to pricing of Crude to enable Government
to decide that the proposed sale price by the Contractor/each constituents of the Contractor
reflects a fair market price for the Crude.

OObbjjeeccttiivveess ooff tthhee ssttuuddyy ––
The main objectives of the study are:
1. To study the concept of Business Analysis.
2. To study the practical feasibility of project for pratibha oil and natural gas corporation in India.
3. To Study financial Ratio and environmental analysis of the company.
4. To verify the balance sheet & P & L account indicates the true position of organization.
5. To Study of Swot analysis of the company in all aspects.

MMeetthhooddoollooggyy ooff tthhee ssttuuddyy
Research Methodology
The purpose of research is to discover answers to questions through the application of scientific procedures.
research is an art of scientific investigation.According to Clifford Woody “research comprises defining and
redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating
data; making deductions and
reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis.”
The main aim of research to find out the truth which is hidden and which has not been discovered as yet.
Though each research study has it’s own specific purpose we may think of research objectives as falling in
to a number of following groups –
1) To gain familiarity with a phenomenon or to achieve new insights into it.
2) To portray accurately the characteristics of a particular individual situation or a group.
3) To determine the frequency with which something occurs or with which it is associated with
something else.
Project methodology includes various steps. There should be a systematic way of collecting data and
presentation of project report. Methodology is a systematic way of solving a problem. It includes the
research methods and logics behind these methods. Collecting data analyzing the same conducted the main
study.
During my project , I used Analytical research method.

Types Of Research –
The basic types of research are as follows –
1 ) Descriptive vs. Analytical :
Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of
descriptive research is description of the state of affairs as it exists at present. In social science and business
research we quite often use the term Ex post facto research for descriptive research studies. The main
characteristic of this method is that the researcher has no control over the variables; he can only report what
has happened or what is happening. The methods of research utilized in descriptive research are survey
methods of all kinds, including comparative and correlational methods. In analytical research, on the other
hand, the researcher has to use facts or information already available, and analyze these to make a critical
evaluation of the material.
2) Applied vs. Fundamental:
Research can either be applied (or action) research or fundamental (to basic or pure) research. Applied
research aims at finding a solution for an immediate problem facing a society or an industrial/business
organization, whereas fundamental research is mainly concerned with generalizations and with the
formulation of a theory. “Gathering knowledge for knowledge’s sake is termed ‘pure’ or ‘basic’ research.”
3) Quantitative vs. Qualitative:
Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that
can be expressed in terms of quantity. Qualitative research, on the other hand, is concerned with qualitative
phenomenon, i.e., phenomena relating to or involving quality or kind.
4) Conceptual vs. Empirical :
Conceptual research is that related to some abstract idea(s) or theory. It is generally used by philosophers
and thinkers to develop new concepts or to reinterpret existing ones. On the other hand, empirical research

relies on experience or observation alone, often without due regard for system and theory. It is data-based
research, coming up with conclusions which are capable of being verified by observation or experiment.
Data collection –
The data available for the project was in the form of concrete facts, figures as well as verbal
information regarding the facts and figures.
Primary data collection–
This data is collected through primary sources from which the researcher directly collects the
data that has been not available previously.
Primary data are first hand information collected through various methods such as interview,
computerized, observation , discussion , online survey.
The primary or basic information was collected by the help of discussions with the owner
and the staff which helped to analyze and collect secondary data.
I had collected a primary data through observation, & Interaction with owner and staff
members of the company.
Secondary data collection-
Secondary data are secondary hand data which is already available & can be used for study
such as web searching, newspaper, books, magazines etc. Secondary data was the main
source of getting information.

I had collected a secondary data from Tax Audit report of companies, Annual report of the
company, books, web searching.
FLOW CHART OF THE RESEARCH PROCESS:
DEFINE RESEARCH PROBLEM
REVIEW THE LITERATURE
FORMULATING HYPOTHESIS
RESEARCH DESIGN
DATA COLLECTION
ANALYSIS OF DATA
DATA ANALYSIS AND REPORT

A brief description of the above stated steps will be helpful.
1. Define Research Problem –
It must decide the general area of interest or aspect of a subject-matter that he would like to inquire into.
Initially the problem may be stated in a broad general way and then the ambiguities, if any, relating to the
problem be resolved.
2. Review The Literature –
Once the problem is formulated, a brief summary of it should be written down.
3. Formulating Hypothesis –
After extensive literature survey, researcher should state in clear terms the working hypothesis or
hypotheses. Working hypothesis is tentative assumption made in order to draw out and test its logical or
empirical consequences.
4. Research Design –
The research problem having been formulated in clear cut terms, the researcher will be required to prepare a
research design, i.e., he will have to state the conceptual structure within which research would be
conducted. The preparation of such a design facilitates research to be as efficient as possible yielding
maximal information.
5. Data Collection –
There are several ways of collecting the appropriate data which differ considerably in context of money
costs, time and other resources at the disposal of the researcher.
6. Analysis Of Data –

After the data have been collected, the researcher turns to the task of analysing them. The analysis of data
requires a number of closely related operations such as establishment of categories, the application of these
categories to raw data through coding, tabulation and then drawing statistical inferences.
7. Data Analysis And Report-
Finally, the researcher has to prepare the report of what has been done by him.
Criteria of Good Research :
Whatever may be the types of research works and studies, one thing that is important is that they all meet on
the common ground of scientific method employed by them. One expects scientific research to satisfy the
following criteria:
1. The purpose of the research should be clearly defined and common concepts be used.
2. The research procedure used should be described in sufficient detail to permit anotherresearcher to repeat
the research for further advancement, keeping the continuity of whathas already been attained.
3. The procedural design of the research should be carefully planned to yield results that are
as objective as possible.
4. The researcher should report with complete frankness, flaws in procedural design andestimate their effects
upon the findings.
5. The analysis of data should be sufficiently adequate to reveal its significance and themethods of analysis
used should be appropriate. The validity and reliability of the datashould be checked carefully.
6. Conclusions should be confined to those justified by the data of the research and limited tothose for which
the data provide an adequate basis.
7. Greater confidence in research is warranted if the researcher is experienced, has a goodreputation in
research and is a person of integrity.
In other words, we can state the qualities of a good research as under -
1. Good research is systematic: It means that research is structured with specified steps toBe taken in a
specified sequence in accordance with the well defined set of rules. SystematicCharacteristic of the research
does not rule out creative thinking but it certainly does rejectthe use of guessing and intuition in arriving at
conclusions.
2. Good research is logical: This implies that research is guided by the rules of logicalreasoning and the
logical process of induction and deduction are of great value in carryingout research. Induction is the
process of reasoning from a part to the whole whereasdeduction is the process of reasoning from some

premise to a conclusion which followsfrom that very premise. In fact, logical reasoning makes research
more meaningful in thecontext of decision making.

Scope of the study :
The business analysis plays a crucial role in defining clarifying managing and initiating. Changes to project
scope consists of the following dimensions:
1. Logical Scope – what to be analyzed? (e.g. business function, data subject areas )
2. Organization Scope - Who will be involved? ( e.g. business units , business reps, analysis team )
3. Deliverable scope – When will be produced? (e.g. future state functional and data models )
4. Time scope – when will the project begin and end?
5. Financial scope – how much money will the business analysis effort cost? Although the scope of a
project is initially sketched out in a business case or project statement by the project manager and
others ,this initial scope definition is often inadequate. The initial analysis done by the business
analyst will help clarify scope. In many cases, the business analyst will identify scope issues that
must be escalated to the project manager and project sponsor for resolution .
Limitation of the study :
1. Benchmark to industry leaders’ ratios, not industry averages
2. Companies’ balance sheets are distorted by inflation
3. Ratio analysis just gives you numbers, not causation factors
4. Different industry may need comparison to different industry averages
5. Companies can use window dressing to manipulate their Financial statements
6. Companies choose different accounting practice

TThheeoorreettiiccaall BBaacckkggrroouunndd
Study of Business Analysis of the Company -
Micro, Small and Medium Enterprises (MSMEs) constitute a Large share of enterprises in most countries
and are cornerstone of economies. They are major source of employment and income in most countries.
However, they need to be competitive to survive and grow in the present era of liberalized and digital
economy, making national boundaries almost irrelevant. Most of the SMEs are inward looking and not very
competitive. They merely survive and sooner than later, seize to exist. One of the reasons for this lackluster
performance is their inability to access and analyze right kind of information for decision making.
Large corporate can afford to hire world class consultancy firms like McKinsey, Price Waterhouse Coopers,
etc. whereas MSMEs find it almost impossible to afford them. These large firms get extra advantage, as the
information generated by analysis of data collected using reliable research methodology, accurately serves
the purpose of aiding them in making decisions under intricate situations. On the other hand, decision
making at MSMEs is often based on ad-hoc methods or gut feeling making them more vulnerable to failures.
Although, globalization has led to increased competition, it also offers opportunities for expansion of
business, for firms with strategic and competitive strengths. Furthermore, the size of firm does not matter. In
this era of digital economy, business success is strongly associated with up-to-date information and
knowledge of markets, consumers and competitors acquired using scientifically proven research methods.
Business research is vital for sustainability of SMEs in global economy. To grab opportunities that
globalization offers, MSMEs need information to support their decisions onTarget markets, product-mix,
branding, consumerperception, trends, supply and demand forecasting andquality control.

SwotAnalysis–
Swot Analysis–
Strengths
1.Pratibha Industries has a diversified with
book order presence across multiple
verticals. This provides a unique hedge to
the company in case of slowdown in orders
from any particular segment.
2.We utilise the available resources in the best
possible manner so as to ensure safety at sea
and prevent damage to environment
Weakness
1. The company's debt equity ratio stood at
1.1 xs as of FY09. Apart from resulting in
higher interest outgo, highly leveraged
businesses are the ones which get hurt the
most during a crisis.
2. Although construction
companies typically enter into price
variability clause with regards to fluctuation
in the prices of key raw materials, it does
not fully hedge the company from wild
swings in raw material prices.
Opportunities
1. New division - Hydrocarbon - presents a
great opportunity for the company to cash in
on the incremental business.
2. Historically, the company's operations
focused more or less in the state of
Maharashtra. However, over time the
company has diversified into other states as
well.
Threats
1. The industry operates at wafer thin
margins. Unviable bidding by competitors
in order to just gain an entry into the
business can impact the top-line of the
company.
2. Weak government finances can impact
the order inflows of the company.

Vision-
To adopt simple procedures for safe transportation / storage of oil cargo with concern / safety to life,
marine environment and other properties.
“To grow company’s assets in line with the economic growth and demand, with mutual benefits towards its
business associates clients and principles byhonouring commitments.”
Objective–
 To serve our client to best satisfaction in service we are provide without compromising on safety and
safeguard in marine environment.
 To ensure compliance and work as per the regulation set of the flag state and classification society.
 To Endeavour to improve, simplify and better our operation to derive quality product services by
utilizing the available resources in the best possible manner.
 To adopt working practice that will ensure prevention of personnel injury or loss of life.
 To adopt operating procedure that will ensure safe transportation of cargo at all time

Company Policy-
 Aspire and remain committed to deliver desired quality services to benefit the needs of our clients &
charterers.
 Contribute in developing and improving the system by adopting simple advanced technology so as to
 Priorities safety at all levels while performing, conducting and operating the company owned vessels
and prevent damages to any properties
Environmental Business Analysis –
Environmental business analysis is a catchall term given to the systematic process by which environmental
factors in a business are identified, their impact is assessed and a strategy is developed to mitigate and/or
take advantage of them. While frameworks do exist to aid in environmental analysis, it is important to
understand that they are simply frameworks to orient the user toward a more precise understanding of the
business environment; they are by no means necessary. Rather, it is important to understand the business
environment, the universal processes used in analysis and how analysis is converted into strategy.
Analysis Process –
Any business manager should be able to analyze the environment in which the company does business. The
general process used to analyze the business environment has four basic steps. First, the environment is
scanned for environmental factors. Next, the relevant factors are culled and monitored. Then, those factors
are analyzed for impact. Lastly, scenarios are forecast based upon the environmental factors identified and
strategies developed accordingly. Further, as strategies are implemented, the business environment is
monitored so that any unforeseen changes can be accounted for.

Identifying Environmental Factors
Identifying environmental factors is most commonly done by brainstorming. All environmental factors are
not always obvious to everyone and the more people included, especially in this initial brainstorming, the
more accurate the environmental profile developed will be. Common environmental factors include new tax
laws, tariff limits, export laws, consumer trends, developing technology, new replacement products (i.e., the
iPod to the CD player), laws concerning emissions, or a new competitor.
MUTUAL FUND INDUSTRY
A mutual fund is a professionally managed type of collective investment scheme that pools money from
many investors and invests it in stocks, bonds, short-term money market instruments and other securities.
Mutual funds have a fund manager who invests the money on behalf of the investors by buying / selling
stocks, bonds etc. Currently, the worldwide value of all mutual funds totals more than $US 26 trillion.
There are various investment avenues available to an investor such as real estate, bank deposits, post office
deposits, shares, debentures, bonds etc. A mutual fund is one more type of Investment Avenue available to
investors. There are many reasons why investors prefer mutual funds. Buying shares directly from the
market is one way of investing. But this requires spending time to find out the performance of the company
whose share is being purchased, understanding the future business prospects of the company, finding out the
track record of the promoters and the dividend, bonus issue
history of the company etc. An informed investor needs to do research before investing. However, many
investors find it cumbersome and time consuming to pore over so much of information, get access to so
much of details before investing in the shares. Investors therefore prefer the mutual fund route. They invest
in a mutual fund scheme which in turn takes the responsibility of investing in stocks and shares after due
analysis and research. The investor need not bother with researching hundreds of stocks.
It leaves it to the mutual fund and it’s professional fund management team. Another reason why investors
prefer mutual funds is because mutual funds offer diversification. An investor’s money is invested by the
mutual fund in avariety of shares, bonds and other securities thus diversifying the investors portfolio across
different companies and sectors. This diversification helps in reducing the overall risk of the portfolio. It is
also less expensive to invest in a mutual fund since the minimum investment amount in mutual fund units is
fairly low (Rs. 500 or so). With Rs. 500 an investor may be able to buy only a few stocks and not get the

desired diversification. These are some of the reasons why mutual funds have gained in popularity over the
years.
CONSTITUTION OF MUTUAL FUNDS
Mutual Funds in India follow a 3-tier structure. There is a Sponsor (the First tier), who thinks of starting a
mutual fund. The Sponsor approaches the Securities & Exchange Board of India (SEBI), which is the market
regulator and also the regulator for mutual funds. Not everyone can start a mutual fund. SEBI checks
whether the person is of integrity, whether he has enough experience in the financial sector, his networth etc.
Once SEBI is convinced, the sponsor creates a Public Trust (the Second tier) as per the Indian Trusts Act,
1882. Trusts have no legal identity in India and cannot enter into contracts, hence the Trustees are the people
authorized to act on behalf of the Trust. Contracts are entered into in the name of the Trustees. Once the
Trust is created, it is registered with SEBI after which this trust is known as the mutual fund. It is important
to understand the difference between the Sponsor and the
Trust. They are two separate entities. Sponsor is not the Trust; i.e. Sponsor is not the Mutual Fund. It is the
Trust which is the Mutual Fund. The Trustees role is not to manage the money. Their job is only to see,
whether the money is being managed as per stated objectives. Trustees may be seen as the internal regulators
of a mutual fund.
MANAGEMENT OF INVESTOR’S MONEY
This is the role of the Asset Management Company (the Third tier). Trustees appoint the Asset Management
Company (AMC), to manage investor’s money. The AMC in return charges a fee for the services provided
and this fee is borne by the investors as it is deducted from the money collected from them. The AMC’s
Board of Directors must have at least 50% of Directors who are independent directors. The AMC has to be
approved by SEBI. The AMC functions under the supervision of its Board of Directors, and also under the
direction of the Trustees and SEBI. It is the AMC, which in the name of the Trust, floats new schemes and
manages these schemes by buying and selling securities. In order to do this the AMC needs to follow all
rules and regulations prescribed by SEBI and as per the Investment Management Agreement it signs with
the Trustees. If any fund manager, analyst intends to buy/ sell some securities, the permission of the
Compliance Officer is a must. A compliance Officer is one of the most important persons in the AMC.
Whenever the fund intends to launch a new scheme, the AMC has to submit a Draft Offer Document to
SEBI. This draft offer document, after getting SEBI approval becomes the offer document of the scheme.

The Offer Document (OD) is a legal document and investors rely upon the information provided in the OD
for investing in the mutual fund scheme. The Compliance Officer has to sign the Due Diligence Certificate
in the OD. This certificate says that all the information provided inside the OD is true and correct. This
ensures that there is accountability and somebody is responsible for the OD. In case there is no compliance
officer, then senior executives like CEO, Chairman of the AMC has to sign the due diligence certificate. The
certificate ensures that the AMC takes responsibility of the OD and its contents.
CUSTODIAN
A custodian’s role is safe keeping of physical securities and also keeping a tab on the corporate actions like
rights, bonus and dividends declared by the companies in which the fund has invested. The Custodian is
appointed by the Board of Trustees. The custodian also participates in a clearing and settlement system
through approved depository companies on behalf of mutual funds, in case of dematerialized securities. In
India today, securities (and units of mutual funds) are no longer held in physical form but mostly in
dematerialized form with the Depositories. The holdings are held in the Depository through Depository
Participants (DPs). Only the physical securities are held by the Custodian. The deliveries and receipt of units
of a mutual fund are done by the custodian or a depository participant at the instruction of the AMC and
under the overall direction and responsibility of the Trustees. Regulations provide that the Sponsor and the
Custodian must be separate entities.
ROLE OF THE AMC
The role of the AMC is to manage investor’s money on a day to day basis. Thus it is imperative that people
with the highest integrity are involved with this activity. The AMC cannot deal with a single broker beyond
a certain limit of transactions. The AMC cannot act as a Trustee for some other Mutual Fund. The
responsibility of preparing the OD lies with the AMC. Appointments of intermediaries like independent
financial advisors (IFAs), national and regional distributors, banks, etc. is also done by the AMC. Finally, it
is the AMC which is responsible for the acts of its employees and service providers. As can be seen, it is the
AMC that does all the operations. All activities by the AMC are done under the name of the Trust, i.e. the
mutual fund. The AMC charges a fee for providing its services. SEBI has prescribed limits for this. This fee
is borne by the investor as the fee is charged to the scheme, in fact, the fee is charged as a percentage of the
scheme’s net assets. An important point to note here is that this fee is included in the overall expenses
permitted by SEBI. There is a maximum limit to the amount that can be charged as expense to the scheme,
and this fee has to be within that limit. Thus regulations ensure that beyond a certain limit, investor’s money
is not used for meeting expenses.

NEW FUND OFFER -
Once the 3 – tier structure is in place, the AMC launches new schemes, under the name of the Trust, after
getting approval from the Trustees and SEBI. The launch of a new scheme is known as a New Fund Offer
(NFO). We see NFOs hitting markets regularly. It is like an invitation to the investors to put their money
into the mutual fund scheme by subscribing to its units. When a scheme is launched, the distributors talk to
potential investors and collect money from them by way of cheques or demand drafts. Mutual funds cannot
accept cash. (Mutual funds units can also be purchased on-line through a number of intermediaries who
offer on-line purchase / redemption facilities). Before investing, it is expected that the investor reads the
Offer Document
(OD) carefully to understand the risks associated with the scheme.
ROLE OF A REGISTRAR AND TRANSFER AGENTS
Registrars and Transfer Agents (RTAs) perform the important role of maintaining investor records. All the
New Fund Offer (NFO) forms, redemption forms (i.e. when an investor wants to exit from a scheme, it
requests for redemption) go to the RTA’s office where the information is converted from physical to
electronic form. How many units will the investor get, at what price, what is the applicable NAV, how much
money will he get in case of redemption, exit loads, folio number, etc. is all taken care of by the RTA.

DIFFERENT TYPES OF FUNDS:
Equity Fund:
Equity Funds are defined as those funds which have at least 65% of their Average Weekly Net Assets
invested in Indian Equities. This is important from taxation point of view, as funds investing 100% in
international equities are also equity funds from the investors asset allocation point of view, but the tax laws
do not recognise these funds as Equity Funds and hence investors have to pay tax on the Long Term Capital
Gains made from such investments (which they do not have to in case of equity funds which have at least
65% of their Average Weekly Net Assets invested in Indian Equities).
INDEX FUND
Equity Schemes come in many variants and thus can be segregated according to their risk levels. At the
lowest end of the equity funds risk – return matrix come the index funds while at the highest end come the
sectoral schemes or specialty schemes. These schemes are the riskiest amongst all types’ schemes as well.
However, since equities as an asset class are risky, there are no guaranteeing returns for any type of fund.
DIVERSIFIED LARGE CAP FUNDS:
Another category of equity funds is the diversified large cap funds. These are funds which restrict their stock
selection to the large cap stocks – typically the top 100 or 200 stocks with highest market capitalization and
liquidity. It is generally perceived that large cap stocks are those which have sound businesses, strong
management, globally competitive products and are quick to respond to market dynamics. Therefore,
diversified large cap funds are considered as stable and safe. However, since equities as an asset class are
risky, there is no guaranteeing returns for any type of fund. These funds are actively managed funds unlike
the index funds which are passively managed, In an actively managed fund the fund manager pores over
data and information, researches the company, the economy, analyses market trends, takes into account
government policies on different sectors and then selects the stock to invest. This is called as active
management.

MIDCAP FUNDS
After largecap funds come the midcap funds, which invest in stocks belonging to the mid cap segment of the
market. Many of these midcaps are said to be the ‘emerging blue chips’ or ‘tomorrow’s largecaps’. There
can be actively managed or passively managed mid cap funds. There are indices such as the CNX Midcap
index which tracks the midcap segment of the markets and there are some passively managed index funds
investing in the CNX Midcap companies.
SECTORAL FUNDS:
Funds that invest in stocks from a single sector or related sectors are called Sectoral funds. Examples of such
funds are IT Funds, Pharma Funds, Infrastructure Funds, etc. Regulations do not permit funds to invest over
10% of their Net Asset Value in a single company. This is to ensure that schemes are diversified enough and
investors are not subjected to undue risk. This regulation is relaxed for sectoral funds and index funds.
NET ASSET VALUE (NAV):
Term Net Asset Value (NAV) is used by investment companies to measure net assets by subtracting
liabilities from the value of a fund's securities and other items of value and dividing this by the number of
outstanding shares. NAV is popularly used to designate the price per share for the fund.NAV is calculated
each day by taking the closing market value of all securities owned plus all other assets such as cash,
subtracting all liabilities, then dividing the result (total net assets) by the total number of shares outstanding.
Calculating NAVs
Calculating mutual fund net asset values is easy. Simply take the current market value of the fund's net
assets (securities held by the fund minus any liabilities) and divide by the number of shares outstanding. So
if a fund had net assets of Rs.50 lakh and there are one lakh shares of the fund, then the price per share (or
NAV) is Rs.50.00.

EXPENSE RATIO:
Expense Ratio is defined as the ratio of expenses incurred by a scheme to its Average Weekly Net Assets. It
means how much of investors money is going for expenses and how much is getting invested. This ratio
should be as low as possible.
Assume that a scheme has average weekly net assets of Rs 100 cr. and the scheme incurs Rs. 1 cr as annual
expenses, then the expense ratio would be 1/ 100 = 1%. In case this scheme’s expense ratio is comparable to
or better than its peers then this scheme would qualify as a good investment, based on this parameter only. If
this scheme performs well and its AUM increases to Rs. 150 cr in the next year whereas its annual expenses
increase to Rs. 2 cr, then its expense would be 2/ 150 = 1.33%.
It is not enough to compare a scheme’s expense ratio with peers. The scheme’s expense ratio must be
tracked over different time periods. Ideally as net assets increase, the expense ratio of a scheme should come
down.
DEBT FUNDS
Debt funds are funds which invest money in debt instruments such as short and long term bonds,
government securities, t-bills, corporate paper, commercial paper, call money etc. The fees in debt funds are
lower, on average, than equity funds because the overall management costs are lower. The main investing
objectives of a debt fund are usually preservation of capital and generation of income. Performance against a
benchmark is considered to be a secondary consideration. Investments in the equity markets are considered
to be fraught with uncertainties and volatility. These factors may have an impact on constant flow of returns.
Which is why debt schemes, which are considered to be safer and less volatile have attracted investors? Debt
markets in India are wholesale in nature and hence retail investors generally find it difficult to directly
participate in the debt markets.
Relationship between interest rates and debt mutual fund schemes :
As interest rates fall, the NAV of debt mutual funds rise, since the prices of the debt instruments the mutual
fund is holding rises. As interest rates rise, the NAV of debt mutual funds fall, since the prices of the debt
instruments the mutual fund is holding falls. Mutual funds which invest in debt paper keep and eye on
interest rates, maturity etc. before deciding on which paper to invest.

DEBT MUTUAL FUND SCHEMES
Fixed Maturity Plans
FMPs have become very popular in the past few years. FMPs are essentially close ended debt schemes. The
money received by the scheme is used by the fund managers to buy debt securities with maturities
coinciding with the maturity of the scheme. There is no rule which stops the fund manager from selling
these securities earlier, but typically fund managers avoid it and hold on to the debt papers till maturity.
Investors must look at the portfolio of FMPs before investing. If an FMP is giving a relatively higher
‘indicative yield’. it may be investing in slightly riskier securities. Thus investors must assess the risk level
of the portfolio by looking at the credit ratings of the securities. Indicative yield is the return which investors
can expect from the FMP.
Regulations do not allow mutual funds to guarantee returns, hence mutual funds give investors an idea of
what returns can they expect from the fund. An important point to note here is that indicative yields are pre-
tax. Investors will get lesser returns after they include the tax liability.
Capital Protection Funds
These are close ended funds which invest in debt as well as equity or derivatives. The scheme invests some
portion of investor’s money in debt instruments, with the objective of capital protection. The remaining
portion gets invested in equities or derivatives instruments like options. This component of investment
provides the higher return potential. It is beyond the scope of this book to explain how Options work. It is
important to note here that although the name suggests ‘Capital Protection’, there is no guarantee that at all
times the investor’s capital will be fully protected.
Gilt Funds
These are those funds which invest only in securities issued by the Government. This can be the Central
Govt. or even State Govts. Gilt funds are safe to the extent that they do not carry any Credit Risk. However,
it must be noted that even if one invests in Government Securities, interest rate risk always remains.

Balanced Funds
These are funds which invest in debt as well as equity instruments. These are also known as hybrid funds.
Balanced does not necessarily mean 50:50 ratio between debt and equity. There can be schemes like MIPs or
Children benefit plans which are predominantly debt oriented but have some equity exposure as well. From
taxation point of view, it is important to note how much portion of money is invested in equities and how
much in debt. This point is dealt with in greater detail in the chapter on Taxation.
MIPs
Monthly Income Plans (MIPs) are hybrid funds; i.e. they invest in debt papers as well as equities. Investors
who want a regular income stream invest in these schemes. The objective of these schemes is to provide
regular income to the investor by paying dividends; however, there is no guarantee that these schemes will
pay dividends every month. Investment in the debt portion provides for the monthly income whereas
investment in the equities provides for the extra return which is helpful in minimising the impact of
inflation.
LIQUID FUNDS
By far the biggest contributor to the MF industry, Liquid Funds attract a lot of institutional and High
Networth Individuals (HNI) money. It accounts for approximately 40% of industry AUM. Less risky and
better returns than a bank current account, are the two plus points of Liquid Funds.
Money Market instruments have maturities not exceeding 1 year. Hence Liquid Funds (also known as
Money Market Mutual Funds) have portfolios having average maturities of less than or equal to 1 year. Thus
such schemes normally do not carry any interest rate risk. Liquid Funds do not carry Exit Loads. Other
recurring expenses associated with Liquid Schemes are also kept to a bare minimum. Term to maturity of a
debt paper is one of the most important characteristic of a debt paper. Debt papers can have term to maturity
of as high as 20 years and more or as low as 90 days and less. The market for short term paper; i.e. paper
with less than 1 year maturity attracts huge interest, volumes and money. This is because the demand for
short term money by corporates, financial institutions and Government is huge. At the same time, there is a
class of investors with which there is an availability of short term funds. Due to this constant demand and
ready investors, the volumes in trades of this short-term paper have increased so much that this segment is
classified as a separate segment in the debt markets and is known as Money Markets. Money Market refers
to that part of the debt market where papers with maturities less than 1 year is traded. Commercial Papers,
Certificate of Deposits, Treasury Bills, Collateralised Borrowing & Lending Obligations (CBLOs) etc. are
the instruments which comprise this market.

BUSINESS ANALYSIS-
Pratibha oil and natural gas pvt.ltd –
History Background -
pratibha oil and natural gas private limited is a private company incorporated on 24 June 2008.it is classified
as Indian non-Government company and is registered at Registrar of companies, Mumbai its authorized
share capital is Rs.500,000 and its paid up capital is Rs.100,000
The Company was incorporated on 20th February 1995 by young technocrats from shipping & financial
institution. It is a closely held public limited company registered under the Indian Companies Act,
1956.Initially, the Company was owned by BT Shipping London, Anders Wilhelmsen Group, Norway and
Indian promoters. Since Dec 2002, the ownership of the Company is with the A. N. PAWAR Family.
The Company is headed by technocrat Mr. Sunil A. Pawar as Chairman and Managing Director (CMD) and
assisted by the Board of Directors. Boards of Directors are representing different fields and possess
shipping, technical and financial background. Day to day function of the Company is carried out by the
CMD along with the strong team of professional managers and controlling all the affairs of the Company
efficiently and deligently.The Company has total strength of 35 young people in the office and about 400
Officers Crew members on rotation & contractual basis on the Ships owned by the Company.
Health,Safteyand Environment Policy-
 We utilise the available resources in the best possible manner so as to ensure safety at sea and
prevent damage to environment.
 Our working practices prevent personnel injury or loss of life.
 Our operating procedures ensure safe transportation of cargo and also that marine environment and
other property is protected from damage.
 Aspire and remain committed to deliver desired quality services to benefit the needs of our clients,
charterers, investors and shareholders.

 Contribute in developing and improving the system by adopting simple advanced technology so to
 Priorities safety at all level while performing, conducting and operating of the company
 Owned vessels and prevent damages to any properties.
Subsidiary Company of Pratibha Shipping–
1. Pratibha Logistics Private Limited.
2. Pratibha Oil & Natural Gas Private Limited.
3. Pratibha Offshore Private Limited.
4. Chandrabhaga Sugars Private Limited.
5. Pratibha Marine Private Limited.
6. Pratibha Logistics (S) Pte. Ltd. (Subsidiary in Singapore of Pratibha Logistics Private Limited

Gujarat state petro net limited
History and Background–
Gujarat State Petroleum Corporation Ltd (GSPC) is an oil and gas exploration company in Gujarat, India. It
is India's only State Government-owned oil and Gas Company with the Government of Gujarat holding
approximately 95% equity stake. GSPC was incorporated in 1979 as a petrochemical company.
Incorporated in 1979 as a petrochemical company, GSPC has today a wide gamut of hydrocarbon activities.
In 1992, GSPC widened the scope of its activities and rechristened itself as Gujarat State Petroleum
Corporation in 1994. With the Government of India’s decision to privatize the hydrocarbon sector, GSPC
acquired several discovered fields in the first and second rounds of bidding process initiated by the
Government of India during 1994 and 1995. The company saw a great transformation from the year 2001,
when DJ Pandian was appointed the Managing Director. The public sector company's activities have
become controversial, with the CAG indicting the company on many counts.
Operations–
GSPC has made one of India's largest gas finds in the Krishna Godavari Basin. It has also built the country's
first land-based drilling platform, Ratankar, at Haziea. GSPC has also exploration activities
in Egypt, Yemen, Indonesia, and Australia.
Subsidiaries -
Gujarat State Petro net limited is a natural gas transmission company. The Gujarat Energy Research and
Management Institute (GERMI) is an institution for energy education, training and research. GSPC Pipavav
Power Company is a company for implementation of a power project in the Saurashtra region. Sabarmati
Gas Limited is a company incorporated at March 6, 2006 for developing Gujarat gas distribution network at
3 districts i.e. Gandhinagar, Mehasana & Sabarkantha. Gujarat State Energy Generation is a company for
power generation in Gujarat. GSPC LNG Limited is an operator of the LNG receiving terminal. GSPC GAS
is a gas distribution company. Guj Info Petro provides IT and telecommunication services.

Boardof Directors -
Mr.M.M.Srivastava IAS Chairman
Mr.Tapan Ray IAS Managing director
Dr.Hasmukh Adhia Non-Executive director
Mr. DJ Pandian Non-Executive director
Dr.R.Vaidyath Independent director
Prof.Yogesh Sinha Independent director
Mr.Yogesh.B.Sinha Independent director

Vision –
Our Values belief a lead us to envision
… that young professionals in energy sector ought to have an access to the opportunities for being more
competent, efficient, highly knowledgeable and courageous to innovate and experiment in the global arena,
… That the societal concern of a citizen will inspire productive and efficient use of energy with wider
perceptions of clean environment and awareness of futuristic scenario.
Mission –
 Provide facilities and opportunities for creation of knowledge, blue print of futuristic
technologies and new Business opportunities
 Commit itself for societal good in all walks of human Endeavour at macro as well as grass root
levels.
Environment –
The purpose of the clean development mechanism (CDM) is defined in Article 12 of the KyotoProtocol to
the United Nations Framework Convention on Climate Change. The CDM has a two-fold purpose: (a) to
assist developing country Parties in achieving sustainable development, thereby contributing to the ultimate
objective of the Convention, and (b) to assist developed country Parties in achieving compliance with part of
their quantified emission limitation and reduction commitments under Article 3. Each CDM project activity
should meet the above two-fold purpose.
Fossil fuels are the most carbon intensive form of power generation. GPPC is sensitive to the energy-related
CO2 emissions. While setting up gas based power plants, GPPC has applied to UNFCCC to avail the CDM
benefits.
Lowering our carbon emissions intensity is a time taking process, but GPPC is very sensitive to reduce
carbon emissions.

Environment Policy, Health and safety-
GSPL commits a high level of QHSE performance to ensure effective and efficient management of
Operation and Maintenance of Natural Gas Grid with continual improvements so as to provide reliable
natural gas transmission in a safe working environment.
 Maintain an organizational culture of Health, Safety & Environmental excellence by conducting its
business in a manner that will promote consistent development.
 Safe work, resource conservation, waste management and emergency response measures for
continual improvement in QHSE performance
 Design, construct, operate & maintain its facilities while assuring the best material and service
quality and operate in a way that mitigates and minimizes risks and hazards.
 Prevention of ill-health, injuries and pollution by adopting best practices, carrying out periodic risk
assessments, audits, reviews, inspections and providing awareness to employees and
concernedstakeholders.

 Comply with legal, regulatory and otherrequirements applicable for natural gastransportation
business as a responsible corporate.
 Provide appropriate resources and PPEs to itsemployees.
 Focusing on teamwork and customer satisfaction,adopting new technologies in O&M
activities,maintaining availability of Gas Grid to meetcustomer requirements and reviewing of
processand performance of QMS on regular basis.
 Encourage associates and stakeholders todemonstrate the same level of commitment for
Continuous improvement in HSE performance.
 Ensure compliance with the policy through aprocess of training and competence,review andaudit.
 Communicate openly with Government agencies,employees, contractors and the general public oneffective
safety and environmental managementissues.
 Delegate power to employees to implement thecompany’s policy on health, safety,environmentand loss
control.

DDaattaa AAnnaallyyssiiss && IInntteerrpprreettaattiioonn
Pratibha oil and Natural Gas Corporation
1. Name of the Company – Pratibha oil and natural gas Pvt.ltd, Mumbai
2. Address – 1201/2 , 12th
Floor Arcadia Bldg ,NCPA marg,
Nariman point, Mumbai.
3. Block - CB – ONN – 2010/
4. Check Reports Financial Reports , Cash Flow Statement ,
Profit and Loss Accounts and projections
5. Registration No. 183901
6. Registration Date 24 -06 -2014

Table No:1
Projection – Rs.in Cr.
Particular Amount
Earnest Money Deposit 10.00
3D Study 100,.00
Drilling & Other Cost 1255.00
Misc. Cost including pre operative cost 268.33
Total Cost 1,633.33
Particular Years 1 Years 2 Years 3 Total
Capex 1633.33 - - 1633.33
Equity 300.00 - - 300.00
Debts 1333.33 - - 1333.33
Profit and loss Account –
Particular Years 1 Years 2 Years 3 Years 4 Years Total
Production per bbl /
per day
253.94 228.54 205.69 185.12 148.09
No. of Working Days /
per year
360 360 360 360 360
Annual Production (in
bbl)
1,462,666 1,316,399 1,184,759 799,712 639,770
56,326,458
Rate per bbl in USD 90 90 90 90 90
USD conversion rate 60 60 60 60 60
Revenue Rs. in crores 789.84 710.86 639.77 431.84 345.48
30,416.29

Drilling & Operative
Exp. / per bbl in USD
50 50 50 50 50
Drilling Expenditure 438.80 394.92 355.43 239.91 191.93
Gross Profit 351.04 315.94 284.34 191.93 153.54
13,518.35
Govt. Share 50 50 50 50 50 9,462.84
Company's Share 438.80 394.92 355.43 239.91 191.93 4,055.50
Royalty (% of profit) 12.50% 12.50% 12.50% 12.50% 12.50%
Royalty 13.16 11.85 10.66 7.20 5.76
Admin Expenses 1.00 1.00 1.00 1.00 1.00
Interest - - - - -
Total Expenditure 14.16 12.85 11.66 8.20 6.76
1,017.60
Profit Before Tax 91.15 81.93 73.64 49.38 39.31
3,037.90
Tax - - - - -
Profit After Tax 91.15 81.93 73.64 49.38 39.31
3,037.90
Financial Ratios–
Ratios name 31st March2014
Current Ratio 2.05
Quick Ratio 1.98
Cash Reserve 3.04
Retune on employed 1.02
Net Profit 31.27
Gross Profit 44%
Retune on Equity 31.17
Profit margin Ratio 0.31
Debt Equity Ratio 4.44

Balance sheet –
Balance sheet on 31st
March 2013
Rs. in lakhs
Particulars 31st march2014 31st march2013
EQUITY AND LIABILITIES -
Share holder funds
Share capital 56,270.88 56,268.91
Reserves and surplus 237,786.90 190,398.92
Total 294,057.78 294,057.78
Non-current liabilities
Long-Term borrowings 133,886.99 109,509.61
Deferred Tax Liabilities(Net) 6 38,668.95 32,437.15
Other Long-Term Liabilities 7 1,785.21 1,329.03
Long-Term Provisions 416.51 297.91
Total 174,757.66 143,573.70
Current Liabilities
Trade Payables 1096.33 701.63
Other Current Liabilities 48,737.55 49,341.26
Short-Term Provisions 8 6,693.89
6,594.69
Total 56,527.77 56,637.58
525,343.21 446,879.11
ASSETS -
Non-Current Assets
Fixed Assets 312,373.95 302,901.20
Tangible Assets 12,776.26 11,121.35
Intangible Assets 52,602.09 41,821.49
Capital Work-In-Progress 17,402.08 11,641.64
Non-Current Investments 7,269.14 8,470.81
Long-Term Loans and Advances 1,540.19 1,301.56
Other Non-Current Assets 894.90 786.02

403,318.42 376,742.51
Current Assets
Inventories 7,715.11 6,618.37
Trade Receivables 25,410.01 8,143.59
Cash and Bank Balances 85,305.60 51,476.47
Short Term Loans and Advances 2,053.88 2,596.61
Other current assets 1,540.19 1,301.56
Total 525,343.21 446,879.11
Profit and loss Account -
Profit and loss account
For the year ended 31st March2013
Rs. in lakh
Particular 31st
March2014 31st
March 2013
INCOME :
Revenue from Operations 117,320.05
112,327.75
Other income 19 6,604.46
5,134.98
Total Revenue (A 123,924.51 117,462.73
EXPENSES :
Employee Benefit Expenses 2,471.01 1,969.09
Other Expenses 7,651.73 7,036.73
Total Expenses 10,122.74 9,005.82
Earnings Before Interest, Tax,
Depreciation and
Amortizations (EBITDA) (A)-(B)
113,801.77 108,456.91
Depreciation and Amortisation Expenses 18,610.84 18,190.36
Preliminary Expenses Written-Off - 24.69
Finance Costs 12,625.60 13,019.48

Profit/(Loss) Before Adjustment 82,565.33 77,222.38
Prior Period Adjustments (5.20) 320.86
Profit/(Loss) Before Tax 82,570.53 76,901.52
Tax Expenses
Current tax 22,463.72 18,563.79
(Excess)/Short Provision of Income Tax 62.75 100.50
Deferred Tax 6,231.80 6,031.11
Profit/(Loss) After Tax carried to
Balance Sheet
53,812.26 52,206.12
Earning Per Equity Share (EPS)
(Nominal Value of Share `Rs.10
Basic Earnings Per Share(Rs) 9.56 9.28
Diluted Earnings Per Share(Rs) 9.56 9.28
Significant Accounting Policies 2.1
Financial Ratio –
Ratios 31st
March 2014
Current Ratio 2.15
Quick Ratio 2.02
Cash Reserve 1.50
Retune on Employed 0.20
Net Profit 43.42
Gross Profit 91.83
Retune on Assets 0.23
Debts Ratio 1
Debt equity Ratio 0.84

Findings
From the above study, we come to know that Business analysis is a research discipline of identifying
business needs and determining solutions to business problems. Business analysis involves understanding
how organizations function to accomplish their purposes, and defining the capabilities an organization
requires to provide products and services to external stakeholders. .Business analysis performed to
understand the current state of an organization or to serve as a basis for the later identification of business
needs. business analysts often play a central role in aligning the needs of business units with the capabilities
delivered by information technology and may serve as a "translator" between those groups.
The primary role for business analysts is to identify business needs and provide solutions to business
problems these are done as being a part of following set of activities.
After analysing the business analysis, environmental analysis & doing a SWOT analysis of two different
companies named as Pratibha oil and Natural Gas Corporation & Gujarat state petro net limited.
It is found that Pratibha oil and natural gas corporation must go for that project.this project is feasible for
that compny.

Conclusion
 This study is related with the Business analysis. As Business analysis is plays a crucial role in
defining, clarifying, managing & initiating changes to project scope. Business analysis is the set of
tasks and techniques used to work as a liaison among stakeholders in order to understand the
structure, policies, and operations of an organization, and to recommend solutions that enable the
organization to achieve its goals
 My objectives of that study is to study the business analysis & environmental analysis Swot analysis
of pratibha oil and natural gas corporation in India.
 After analysing the all the data and conducting feasibility study, It is concluded that pratibha oil and
natural gas corporation in India must go for that business. Because it is feasible for do that project.
 It is concluded that, .Business analysis performed to understand the current state of an organization
or to serve as a basis for the later identification of business needs. business analysts often play a
central role in aligning the needs of business units with the capabilities delivered by information
technology and may serve as a "translator" between those groups.

Suggestion
 Sometimes Companies can use Window Dressing to Manipulate Their Financial Statements
Companies Choose Different Accounting Practices
 Ratio Analysis Just Gives you Numbers, not Causation Factors. So proper internal analysis study of
business should be needed.
 Business environment analyst does not give any guarantee whether all events will happen as per
estimation in business environment. So analyst find out the effective method for the business
analysis.

LLeeaarrnniinngg ffrroomm PPrroojjeecctt
I have done my summer internship in the company which is Rj Caaptial overseas Pvt ltd.
This company is basically offering the services like Project fiancé, corporate fiancé joint venture & many more
services’
I had joined Rj Captial overseas Pvt .lid as a intern on 1th
may 2014 for two months .
There my work was to to provide the financial service er and financial adviser
There I came to know a brief information about various departments like Stock Market department, service
department.
During my project they not only gave me the information about finance but also taught me how to write , how to
make an documentslist inexcel &howto usedexcel sheet. I learned very small but important things related with
Business
This 2 months gave me the very good experience about organization that how to work in organization, how to
interact with staff members & how to work effectively in company.
They allot me lot of work & that helped me to learn many new concepts.
I am very thankful to my organization that they gave me this opportunity.

A Study of business analysis oil & Natural Gas Corporation RJ Capital Overseas Pvt Ltd, Pune(MBA Finance)

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