1. CAPITAL STRUCTURE
ANALYSIS OF INDIAN OIL
CORP. LTD.
SUMMER INTERNSHIP PRESENTATION
Zeeshan Ali Khan
Roll No. 1809

2. PROJECT OVERVIEW
• Company Name: Indian Oil Corporation Ltd.
• Place: Kanpur
• Duration: 7 weeks
• Company Mentor: Sanjay Tripathi, Senior Bottling Plant Manager,
IOCL

3. COMPANY OVERVIEW
A MAHARATNA COMPANY
COVERING ENTIRE HYDROCARBON VALUE CHAIN
96TH RANK AMONG FORTUNE 500 COMPANIES
SALES TURN-OVER $ 75.6 BILLION
HOLDER OF MARKETS LEADING BRANDS LIKE SERVO

4. OBJECTIVES
TO EXAMINE THE CAPITAL STRUCTURE
TO EXAMINE THE CHANGE IN DEBT AND EQUITY
TO FIND THE EPS PATTERN
TO FIND THE LEVERAGES
TO UNDERSTAND EBIT PATTERN

5. RESEARCH METHODOLOGY
DESCRIPTIVE RESEARCH
BASED ON SECONDARY DATA
MAIN SOURCE OF DATA : Annual Reports of the
Company; various financial websites

6. DATA ANALYSIS-SHARE CAPITAL
0
1000
2000
3000
4000
5000
6000
7000
2015 2014 2013 2012 2011 2010
Authorized capital 6286 6000 6000 6000 6000 2500
Issued capital 2427.95 2427.95 2427.95 2427.95 2427.95 2427.95
Authorized capital Issued capital

7. DATA ANALYSIS-SECURED LOAN
0
5000
10000
15000
20000
25000
2015 2014 2013 2012 2011 2010
(CR) 19390 17866 14457 13046 20380 18292
(CR)

8. DATA ANALYSIS-UNSECURED LOAN
0
10000
20000
30000
40000
50000
60000
70000
2015 2014 2013 2012 2011 2010
(CR) 64800 62733 63869 57278 32355 26274
(CR)

9. DATA ANALYSIS-EBIT
2015 2014 2013 2012 2011 2010
Cr 15620.33 13359.43 12050.65 16773.88 11157.05 15057.96
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Cr

10. DATA ANALYSIS-EPS
0
5
10
15
20
25
30
35
40
45
2015 2014 2013 2012 2011 2010
Rs 38.67 28.91 20.61 16.29 30.67 42.01
Rs

11. DATA ANALYSIS-FINANCIAL LEVERAGE
0
0.5
1
1.5
2
2.5
2015 2014 2013 2012 2011 2010
(Ratio) 2.19 1.61 1.91 1.49 1.31 1.11
(Ratio)

12. DATA ANALYSIS-OPERATING LEVERAGE
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2015 2014 2013 2012 2011 2010
(Ratio) 1.46 1.12 1.14 1.09 1.13 1.01
(Ratio)

13. FINDINGS
Issued less shares capital to the shareholders, constantly from 2010-2015. IOCL does not fulfill the authorized
share capital.
The return on investment ratio of IOCL is the lowest among its competitors.
IOCL has maximum numbers of total debts in 2015, if I compared with previous years.
In 2015, secured loan is mostly remain same with previous year.
In 2015, earning per share EPS value is Rs.38.61 which is higher than 2014.
IOCL has Degree of operating leverage (DOL) and in 2015 it is higher than last few years.
In 2015, Degree of financial leverage is very high than previous years.

14. SUGGESTIONS
In spite of being a cash rich company has burden of heavy loan; so it should pay
them.
Increasingly firms are moving from secured debt to unsecured debt in order to
free their assets.
The company should utilize the debt fund more efficiently to maximize
shareholder’s return.
IOCL have to reduce total debts of the company against of issuing, more share
to the public.
The company can invest in marketable securities to improve its cash positions.