Capital Structure Of Oil And Gas Industries

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ABSTRACT Oil and Gas Industry plays a very important role in the socio-economic growth of India. This work is intended to make obvious analysis of liquidity and Working Capital structure of Oil and Gas Industries, this study is mainly based on secondary data and the statistical tools like Mean, Standard Deviation, Coefficient Of Variance and Analysis Of Variance(ANOVA) have been used to the study. The study revealed that the liquidity of this industry is not in satisfactory level. KEY WORDS: Anova, Liquidity, Working Capital. INTRODUCTION Working capital may be regarded as the blood circulatory system of any business unit. Its effective management can do much more for the success of the business, while ineffective management lead to…show more content…
The study contributed much in terms of realizing the importance of effective management of working capital. Sinha, sinha and singh(1985) conducted a study on the analysis of working capital management corporation of India and Gujarat state fertilizer corporation. The analysis revealed that a huge proportion funds was tied up as working capital, especially in inventories and receivables. The study revealed that the sample companies failed to manage working capital efficiently by the usage of latest techniques, the funds were locked up at various levels during the course of business management. OBJECTIVES OF THE STUDY As stated above, many researchers have depicted that working capital plays an important role in the economic success of the business. The business needs to scrutinize the management of working capital constantly if it wants to maximize the profits. Thus, keeping the importance of working capital management in view, the present study aims to analyze:  The working capital structure of oil and gas industry  The liquidity position of oil and gas industry  The working capital turnover position of oil and gas industry HYPOTHESES OF THE STUDY The present study tests the following hypotheses:  H01: The average current ratios of sample companies do not differ significantly.  H02: The average quick ratios of sample companies do not differ significantly.

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