Strategic Financial Performance Evaluation And Bankruptcy Prediction Of Indian Petroleum Industry


  • Dr. Mohd Afjal , Dr. Sandhyarani Das


—The Indian Petroleum Industry plays a vital role in the economic development of the
country. This industry displays and helps the economy to enhance the level of production,
employment, foreign exchange earnings, foreign exchange savings, providing a base to the other
industries, promoting smooth transportation facilities, etc. In the modern age of progress, this industry
has a great utility in transforming the country from a developing country to a developed country.
Furthermore, the petroleum product demand has increased tremendously over the years. To fulfil such
a huge demand of the country, this industry has to carry out their operations for a long. For this
determination, the petroleum companies must have a sound efficiency and financial position. However,
the available literature makes it confirms that there are various studies conducted on financial
performance aspects of the petroleum companies. The present study tries to evaluate the financial
performance, ranking of the financial performance and bankruptcy prediction of the petroleum
companies. For this purpose, six petroleum companies selected which account for the major portion of
India’s total oil and gas production. The companies are BPCL, HPCL, IOCL, ONGC, IOCL, OIL and
RIL. The data have been collected from the Prowess database and annual reports of the selected
companies and it covers a period of 27 years, i.e., from 1991 to 2017. The study may play an essential
role for its various internal or external users in their decision making policy.