Organization Study Undertaken at

Numaligarh Refinery Limited

Submitted in partial fulfillment of the requirements for the award of the

Bachelor of Business Administration (Finance & International Business)

Of

CHRIST ( Deemed to be University )

By

Ashmita Saikia

1723665

Under the guidance of

Prof. Rajani Ramdas

School of Business Studies & Social Sciences

CHRIST ( Deemed to be University )

BENGALURU

2018-19
 CERTIFICATE

This is to certify that Ashmita Saikia, Reg. No. 1723665 is a bonafide student of

Bachelor of Business Administration (Finance & International Business) of

CHRIST ( Deemed to be University ), Bengaluru and she has prepared and

submitted the Internship report, titled “An Organizational Study Undertaken at

Numaligarh Refinery Limited,” in partial fulfillment of the requirements for the

award of the Degree of Bachelor of Business Administration (Finance &

International Business) of CHRIST ( Deemed to be University ), Bengaluru, for the

academic year 2018-2019.

Place: Bangalore Prof. Dr. Joby Thomas

Date: Academic Coordinator

School of Business studies

CERTIFICATE

This is to certify that the project report, titled “An Organizational Study Undertaken

at Numaligarh Refinery Limited”, submitted to CHRIST (Deemed to be

University), in partial fulfillment of the requirements for the award of the Degree

of Bachelor of Business Administration (Finance & International Business) is

a record of original study undertaken by Ashmita Saikia, during the period 2018 –

2019 in the School of Business Studies and Social Sciences at CHRIST ( Deemed

to be University ), Bengaluru, under my supervision and guidance. The Internship

report has not formed the basis for the award of any Degree/ Diploma/ Associate

ship/ Fellowship or other similar title of recognition to any candidate of any

University.

Date: Prof. Rajani Ramdas

DECLARATION

I, Ashmita Saikia, hereby declare that the project report, titled “An Organizational

Study Undertaken at Numaligarh Refinery Limited”, submitted to CHRIST

(Deemed to be University), in partial fulfilment of the requirements for the award

of the Degree of Bachelor of Business Administration (Finance & International

Business) is a record of original and independent study undertaken by me during

2018–2019 under the supervision and guidance of Prof. Rajani Ramdas, School

of Business Studies and Social Sciences and it has not formed the basis for the

award of any Degree/ Diploma/ Associate ship/ Fellowship or other similar title of

recognition to any candidate of any University.

Date: (Ashmita Saikia)
 ACKNOWLEDGEMENTS

I would like to express my profound gratitude to all those who have been instrumental in the

preparation of this project report. I wish to place on records, my deep gratitude to my project

guide, Professor Rajani Ramdas, a highly esteemed and distinguished guide, for her expert

advice and help.

I would like to thank Dr. Fr. Thomas C Mathew, Vice Chancellor, Dr. Jyothi Kumar, Associate

Dean, and Dr Joby Thomas, Academic Coordinator, for their support.

I am grateful to Numaligarh Refinery Limited for giving me the opportunity to learn and

experience from this internship. I would like to thank my organizational guide Mr. Mandheer

Singh, Department of Finance, NRL who guided me with his insights and knowledge and took

active interest in my project. I would like to express my gratefulness to Mr. Ashish Baruah,

Chief Manager, Training & Development Department NRL, for giving me the chance to carry

out this project in their organization. I would like to convey my sincere gratefulness to Mr.

Pratul Kumar Saikia, General Manager, and Mrs. Jumani S. Nath, Chief Manager, Finance and

Accounts department, NRL, for arranging my internship at NRL.

Lastly, I would like to thank God, parents and friends for their constant support and help.

(Ashmita Saikia)
 CONTENTS

Serial No. Index Page No.

1 Introduction 1
1.1 Industry profile 1
1.2 Company profile 5
1.3 Vision, Mission and Objectives 11
2. Organization structure/chart 13
3. Functional areas 14
3.1 Human Resource Management 14
3.2 Operations Department 19
3.3 Technical services Department 20
3.4 Project Department 21
3.5 Commercial Department 21
3.6 Business Development/Corporate Planning 22
Department
3.7 Finance Department 22
4. Analysis and Interpretation 29
5. SWOT analysis 44
6. Suggestions and Recommendations 47
7. Conclusion 49
8. References 51
9. Annexures 52
 LIST OF TABLES

Table No. Description Pg. No.

4.1 Table showing current ratio of the company 29
4.2 Table showing liquid ratio of the company 31
4.3 Table showing diluted earnings per share of the company 33
4.4 Table showing proprietary ratio of the company 35
4.5 Table showing solvency ratio of the company 36
4.6 Table showing interest coverage ratio of the company 38
4.7 Table showing fixed assets to net worth ratio of the 39
company of the company

4.8 Table showing return on assets of the company 41

4.9 Table showing net working capital of the company 43

LIST OF FIGURES

Fig. No. Description Pg. No.

4.1 Figure showing current ratio of the company 30

 4.2 Figure showing liquid ratio of the company 31

4.3 Figure showing diluted earnings per share of the company 34

4.4 Figure showing proprietary ratio of the company 35

4.5 Figure showing solvency ratio of the company 37

4.6 Figure interest coverage ratio 38

4.7 Figure showing fixed assets to net worth ratio of the 40

company

4.8 Figure showing return on assets of the company 41

4.9 Figure showing net working capital of the company 43

Running head: Organisation study 1

1. INTRODUCTION

1.1 Industry Profile

Since, Numaligarh Refinery Limited is involved with the process of exploration, extraction,

refining, transporting and marketing of petroleum products, it is a contributor to the oil and gas

industry. With it being considered as the biggest sector in the world in terms of dollar value, the

oil and gas industry acts as the powerhouse employing hundreds of thousands of workers

throughout the globe.

The industry is broken down into three key areas as follows:

• Upstream: The upstream component is also referred to as the E&P (exploration and

exploration). This involves the search for underwater and underground natural gas fields
 or crude oil fields, the drilling of exploration wells, and drilling into established wells to

recover oil and gas.

• Midstream: Midstream entails the transportation, storage and processing of oil and gas.

Once resources are recovered, it must be transported to a refinery, which is often in a

completely different geographic region compared to the oil and gas reserves.

Transportation can include anything from tanker ships to pipelines and trucking fleets.

• Downstream: Downstream refers to the filtering of the raw materials obtained during the

upstream phase. This means refining crude oil and purifying natural gas. The marketing

and commercial distribution of these products to consumers and end users in several forms

including natural gas, diesel oil, petrol, gasoline, lubricants, kerosene, jet fuel, asphalt,

heating oil, LPG (liquefied petroleum gas) as well as several other types of petrochemicals.
Organisation study 2

Even though the industry holds highest return of profits and employs thousands of workers,

there has been a growing negative sentiment towards the industry, as the world sees a growth in

the trend towards renewable and alternative energy in recent times, acting as a threat for such

industries.

The price collapse in the year 2014 led to a downfall of the industry due to imbalance

between demand and supply. Various developing countries such as China, Brazil, and Russia

showed immense thirst for oil and gas till 2010, after which, however, the upward trajectory of

their economies began to slow down, which led to a decline in the global oil consumption.

Meanwhile, the U.S was producing 3.5 million barrels of shale oil per day, which conjugated with

the demand shift led to fluctuations in the oil prices.

More recently, the industry has been gaining confidence again as there’s been an

accelerated growth with an increase in the upstream production positively affecting the midstream

businesses. The prices have also stabilized and hundreds of thousands of jobs are created.

The development of the Indian petroleum industry started mainly in the North-Eastern part

of India, especially in the place called Digboi in the state of Assam, however, an important

advancement in the Indian petroleum industry came with the passing of Industrial Policy

Resolution in 1956, which emphasized the focus on the growth and promotion of industries in

India. The Indian petroleum industry was sponsored completely by the government, and the

management control of the petroleum industry and all its related activity was entirely with the

government. The petroleum industry has the most significant role to play in changing the Indian

economy from an agrarian economy to an industrial economy.

Organisation study 3

After the adoption of Liberalisation, Privatisation and Globalisation in July 1991, the

government started allowing the Indian petroleum industry to go into private hands and entered

into government and private joint ventures. The government also eased the stringent regulation

process on the petroleum industry. This gave a tremendous boost to the petroleum industry in

India. The industry began to grow at a tremendous pace. The overall Indian economy grew, and

the demand for petroleum products increased at an annual rate of about 5.5%. The demand for

petroleum and petroleum products continues to grow, and there is great potential for investors to

invest in the sector and gain valuable returns while meeting the increasing demands for the

petroleum products. The country has 5.6 billion barrels of proven oil reserves and 1,330 bcm of

gas reserves, marketing the industry to hit success in the country.

The sector is of immense importance to the economy owing to its significant forward

integration with many other sectors. India is committed to boosting its growth in the years to come

and this progress would translate into the country’s energy needs growing many times. The need

of the hour, therefore, is to channelize all efforts on exploration of new blocks effectively as well

as efficiently. With increasing socio-economic development of the country there will be a growing

demand for energy. India is the 4th largest consumer of energy after China, USA and Russia. The

country is dependent on imports for about 78% of its crude oil requirement and to the extent of

about 33% in case of natural gas. The growing demand for crude oil and gas in the country coupled

with policy initiatives of the Government of India towards increased E&P activity has given a great

impetus to the growth of this sector.

Organisation study 4

The Indian refining industry has established itself as a major player globally. India is

emerging as a refinery hub and refining capacity exceeds the demand. The country’s refining

capacity has increased from a modest 62 MMTPA in 1998 to 215.066 MMTPA at present. India

has a total of 22 refineries – 17 under public sector, 2 in Joint Venture and 3 under private sector.

The list of Indian refineries is as follows:

1.2 COMPANY PROFILE

Organisation study 5
1.2.1 About the company

Nestling in the sylvan environs of the Brahmaputra valley where the beautiful rendezvous

of water and land throws up myriad colours, Numaligarh Refinery Limited (NRL), which was set

up at Numaligarh in the district of Golaghat (Assam) in accordance with the provisions made in

the historic Assam Accord signed on 15th August 1985, has been conceived as a vehicle for speedy

industrial and economic development of the region.

The 3 MMTPA (Million Metric Ton Per Annum) Numaligarh Refinery Limited was

dedicated to the nation by the erstwhile Hon'ble Prime Minister Shri A. B. Vajpayee on 9th July,

1999. NRL has been able to display creditable performance since commencement of commercial

production in October, 2000. With its concern, commitment and contribution to socio-economic

development of the state combined with a track record of continuous growth, NRL has been

conferred the status of Mini Ratna PSU.

1.2.2 Shareholding pattern

The present authorized capital of the company is Rs. 1000 crores and paid up capital is

Rs. 735.63 crores. The shareholding pattern is given below:

Bharat Petroleum Corporation 61.65%

Govt. of Assam 12.35%
Oil India Limited 26.00%
Total 100%

1.2.3 Alliances and Joint Ventures of the company

Organisation study 6

• Company: Brahmaputra Cracker and Polymer Limited (BCPL) Business:

Chemicals & Petrochemicals

Shareholding Pattern:

GAIL (India) Limited - 70.73%

Numaligarh Refinery Limited (NRL) - 10.11%

Oil India Ltd (OIL) - 10.11%

Govt. of Assam - 9.05%

• Company: DNP Limited

Business: Transportation of Natural Gas through pipeline from Madhuban at

Duliajan to Numaligarh Refinery

Shareholding Pattern:

Assam Gas Company Limited (AGCL) - 51%

Numaligarh Refinery Limited (NRL) - 26%

Oil India Ltd (OIL) - 23%

• Company: Assam Bio-Refinery Private Limited (ABRPL)

Business: Production of Ethanol from Bamboo biomass Shareholding Pattern:

Numaligarh Refinery Limited (NRL) - 50%

M/s Fortum 3BV, Netherlands - 28%

M/s Chempolis Oy, Finland - 22%

• Company: Indradhanush Gas Grid Limited (IGGL)

Organisation study 7
Business: Build, operate and maintain the Natural Gas Pipeline Grid connecting

Guwahati to the major North-Eastern cities and major load centres like Numaligarh

Refinery etc. including integrating it with gas producing fields, wherever feasible,

in North East India.

Shareholding Pattern:

GAIL (India) Limited - 20%

Numaligarh Refinery Limited (NRL) - 20%

Oil India Ltd (OIL) - 20%

IndianOil Corp. Ltd. (IOCL) - 20%

Oil & Natural Gas Corp. (ONGC) - 20%

1.2.4 Products

The company is involved in the production of various petroleum-based products which

ranges as follows:

1. Light distillates

• LPG

• NAPHTHA

• Motor Spirits

2. Middle distillates

• Aviation Turbine Fuel (ATF)

• Superior Kerosene Oil (SKO)

• High Speed Diesel (HSD)

3. Heavy distillates
Organisation study 8

• Petroleum coke

• Sulphur

• Paraffin Wax

1.2.5 Imports and exports

Exports

In an effort to bolster Government Of India’s 'Act East Policy,' NRL on its part has been able to

establish trade ties with neighboring South East Asian countries like Myanmar, Bangladesh,

Thailand, Vietnam etc. through export of Paraffin Wax and Diesel. NRL Wax has made its

presence felt across continents viz. Asia, Europe and the Americas in countries such as Nicaragua,

Brazil, Mexico, Chile, Dominican Republic, Egypt, Uganda, Myanmar, Sri Lanka, Vietnam,

Malaysia, Nepal, Bangladesh and China to name a few.

NRL is exporting Diesel to Bangladesh using the rail route from Siliguri to Parbatipur via

Radhikapur-Birol. It has also exported a consignment of Diesel to Northern region of Myanmar

bordering Manipur which is at approximately 430 kms from Numaligarh Refinery.

In line with the NE Hydrocarbon Vision 2030 document, NRL has signed an agreement

with Bangladesh Petroleum Corporation (BPC) to build a product pipeline from NRL ‘s Siliguri

Marketing terminal to BPC’s depot at Parbatipur.

Imports

Numaligarh Refinery Limited imports around 40 TMT of Methyl Tertiary Butyl Ether at

Budge Budge for production of Petrol in the Refinery.

Organisation study 9
1.2.6 Achievements and Certifications

NRL has achieved many awards and certification. During 2017-18, your Company was

conferred with the following awards:

• National Technology Award 2017 instituted by Technology Development Board

under Department of Science and Technology, Govt. of India for Commercialization

of Wax De-oiling Technology developed jointly in collaboration with the Indian

Institute of Petroleum and Engineers India Limited.

• Suraksha Puraskar in Manufacturing Sector (Group-A, Manufacturing Coke and

Refined Petroleum Products) instituted by National Safety Council of India (NSCI)

• SCOPE Corporate Communications Excellence Awards 2017 in the categories of

Best House Journal (English), Best Annual Report and Effective use of Digital

Communication.

• PRSI National Awards 2017 instituted by Public Relations Society of India( PRSI)

for House Journal, Annual Report, Best Event Management (For Numaligarh

Marathon) and Best Social Media campaign (For NRL Startup initiative iDEATION)

• Chal Vaijayanti Shield (2nd Prize) for effective implementation of Official

Language Policy of Govt. of India and 1st Prize for NRL Hindi Magazine ‘Prayas’

amongst Hindi magazines published by Town Official Language Implementation

Committee (TOLIC) of PSU members.

Organisation study 10

1.2.7 Annual sales

The annual product-wise sales are depicted as below:

The annual party-wise sales are depicted as follows:

 The manpower function wise sales are depicted as follows:
Organisation study 11

1.3 Vision and Mission

• Vision:

To be vibrant, growth-oriented energy company of national standing and global

reputation, having core competencies in Refining and Marketing of petroleum products,

 committed to obtain sustained excellence in performance, safety standards, customer care, and

environment management, and to provide a fillip to the development of the region.

• Mission:

1. Develop core competencies in Refining and Marketing of petroleum products with

a focus on achieving international standards on safety, quality, and cost.

Organisation study 12

2. Maximise wealth creation to meet the expectations of the stakeholders.

3. Create a pool of knowledgeable and inspired employees and ensure their personal

and professional growth.

4. Contribute towards the development of the region.

• Objectives:

1. Maximise refinery capacity utilisation and optimum product pattern by efficient

refinery operation.

2. Ensure smooth and timely evacuation of products, create a sound customer based

and necessary marketing infrastructure.

3. Achieve highest standards in product quality, safety, health and environment

protection.

4. Manage and operate the facilities in an efficient and cost-efficient manner for

generation of adequate internal resources.

5. Inculcate best business practices using ERP and E-Commerce.

6. Focus on development and growth of Human Resource through proper training and

career planning.

7. Plan for production and marketing of low volume, high value products.

8. Remain at the technological forefront by continuous up gradation of in-house

expertise and absorption of the latest technologies.

9. Establish strong corporate identity and brand equity.

10. Facilitate economic and industrial development of the region.

Organisation study 13

2. ORGANOGRAM OF THE COMPANY

Organisation study 16

3. FUNCTIONAL AREAS

3.1 Human Resource Management

NRL has increased its productivity through optimisation of its human

resources. It has achieved operational excellence through its qualified,

committed and efficient workforce.

HR initiatives of the company are aligned with overall organisational

goal. It has continued to enable its employees to work in a conducive
environment, leveraging technology to ease its operations. The Manpower
strength of NRL as on 31st March,2018 is 864, as detailed below:
Groups Total SC ST OBC PWD Minorities Female

A 439 52 30 104 5 21 32

B Nil Nil Nil Nil Nil Nil Nil

C 424 37 62 138 16 27 9

D 2 2 Nil Nil Nil Nil Nil

Total 865 91 92 242 21 48 41

Here, Group A signifies the officer position at entry level in the

Management team, Group B signifies the Assistant Manager position, Group

C signifies the Manager position, and Group D signifies the Senior Manager

position.

3.1.1 Training and Development

The Training and Development department at NRL plays a vital role in

providing opportunities to upgrade knowledge of the employees both in

functional and developmental areas through in house and external training

Organisation study 17

programs. Officers are nominated for various seminars, workshops and

conferences to upgrade themselves on recent developments within India and

abroad.

During the year 2017-18, 2514 man-days of training were imparted to

employees comprising both Management and Non-Management staff. Total 39

numbers of internal programs are conducted at NRL learning Centre. 332 nos.

of employees were nominated for external programs within India as per the

recommendation of various departments.

3.1.2 Reservations and welfare measures for SC/ST

NRL follows the reservation policy of Govt. of India in respect of

providing reservation, concessions and relaxation to candidates belonging to

Scheduled Caste (SC), Scheduled Tribe (ST), Other Backward Class (OBC) and

Persons with Disabilities (PwD) in the matter of recruitment.

Besides providing reservation in recruitment, NRL also adopts relaxed

criteria in promotion for SC/ST candidates. SC/ST candidates, who are called

for written test/ interview are also reimbursed to and fro travelling expenses.

In the year 2017-18, various projects were taken up from Corporate

Social Responsibility schemes for socio economic development of SC, ST and

OBCs.

3.1.3 Gender friendly workplace

The company has provided a gender friendly work place with equal

opportunity for men and women. The Sexual Harassment of Women at

Workplace (Prevention, Prohibition and Redressal) Act, 2013 is in force to

Organisation study 18

provide protection against sexual harassment of women at workplace and for the

prevention and redressal of complaints therewith or incidental thereto. NRL has

an internal Complaints Committee per provisions of the Act which is proactive

and functional. During the year 2017-18, one complaint of sexual harassment

was received and the same has been attended and disposed-off.

3.1.4 Communication to the employees

The company employs an effective communication strategy to reach out

and engage with all its employees. Transparent and timely dissemination of

information has been key to the Company’s responsive governance, leading to

a highly engaged and interactive workforce partaking in the Company’s

ambitious ventures and social responsibilities. Clear, effective and direct

communication has always been encouraged within the organisation, thereby

ushering in a culture of knowledge-sharing immersed in a milieu of trust, team

work and camaraderie.

Regular updates related to the Company’s developments are shared with

employees through e-mails. The Company’s intranet portal ‘EUREKA’

facilitates prompt access by employees, keeping them informed about Company

initiatives, policies and developments. One of the most perceptible tools of

internal communication is the Company’s quarterly in-house journal

‘Rodali’ which encompasses the activities within the organisation and its

associate entities.

Meeting (WCM), Functional Coordination Meeting (FCM),

Organisation study 19

Departmental Review Meetings, meetings with collectives etc. are held within

teams and across functions for information and knowledge exchange for

smooth operations, timely planning of activities and

participative management.

Apart from these, various periodicals like the Safety newsletter,

Chaitanya- the Vigilance newsletter, Prayas- the Hindi magazine etc. are

published by respective Departments to highlight their areas of work and the

latest developments in the field and shared with employees.

3.1.5 Sub-departments and their functions

Staffing

The staffing process, that involves putting the right people in the right

positions at the right times, is one of the most critical tasks any organization

faces. The quality of the work performed can be only as high as the

capabilities of the people performing it.

Three officers are working in HR staffing unit. They perform the

following activities:

I. Recruitment:

Recruitment is the process by which a firm finds its employees,

are perhaps the most critical tasks any organization faces. Without the

right people, no firm can function effectively. For a recruitment program

to be successful, managers should cooperate with the human resources

staff to define needs and predict vacancies. This recruiting may be done

by internal or external.
Organisation study 20

There are two types of recruitment in this organization, namely

Internal Recruitment which follows the principle methods of Job

posting, use of computerized skills inventories, and Referrals from

other departments, and External Recruitment which follows the

principle methods of Field recruiting and campus recruiting.

II. Selection:

The critical criteria in this regard are job relatedness, reliability,

and viability. For selection of candidates several aspects are considered

such as Appearance, Attitudes, Knowledge, Personal and mental

abilities, Physical abilities, Qualifications, Communication skill and

Job knowledge.

III. Leave Management:

Leave is earned by duty. Leave cannot be claimed as a matter of

right and leave admissible under the service rule of NRL may be granted

by the Managing Director or his authorized person, who may refuse

leave, grant leave for a shorter period than applied for, revoke leave of

any description and recall an employee before the expiry of the leave.

One Officer is looking after the leave matter of employees and keeping

leave records.

IV. Personal Profile Management:

They maintain employee’s personal profile with

hardcopy of documents for example: CV, NID, Educational

Certificates and other necessary documents.

Organisation study 21

Operations

HR operations unit mainly work in the area of short term and long- term

benefits of the employees of NRL, like Monthly Salary Disbursement,

Preparation and disbursement of Festival Bonus and Performance Bonus,

Employees Final Settlement, Maintain liaison with different AMC, which are

under the corporate agreement with NRL Asset Management Ltd Limited,

Submission of various Salary related MIS report to the Management &

Regulatory bodies, Work as System Admin in HR department, Assist in

Appraisal Management, Employee Tax processing, etc.

Training and Development

Human Resource is the key to success of a service-oriented business

organization. The Training and Development department at NRL plays a vital

role in providing opportunities to upgrade knowledge of the employees both in

functional and developmental areas through in house and external training

programs. Officers are nominated for various seminars, workshops and

conferences to upgrade themselves on recent developments within India and

abroad. During the year 2017-18, 2514 man-days of training were imparted to

employees comprising both Management and Non-Management staff. Total 39

numbers of internal programs are conducted at NRL learning Centre. 332 nos.

of employees were nominated for external programs within India as per the

recommendation of various departments.

3.2 Operations
Organisation study 22

The main purpose of this department is to produce the various products,

ranging from the light distillate (LPG, NAPHTHA, Petrol), the midway

distillates (Diesel, Kerosene, ATF, Paraffin Wax), and the heavy distillates

(Coke). This department is headed by the Chief General Manager

(Operations).
 23
Organisation study

This department employs the maximum number of workers who are

involved in 8 units such as:

• Crude Distillation Unit

• Hydrogen Unit

• Hydrocracker Unit (for Diesel)

• MS Plant (for Petrol)

• Delayed Coker Unit (for Coke)

• Wax Unit

• Calcined Coke Unit

• Sulphur Recovery Unit

3.3 Technical Service

Its function is to give technical guidance to the people working in the

refinery unit. This department is guided by the Chief General Manager. It mainly

has 4 teams under it, namely,

- Planning team

- Energy conservation team:

This team is mostly concerned with the 100% utilization of

the products and its residues. They also focus on using

minimum energy resources and looking up for new

opportunities to switch to alternative energy resources.

- Environment conservation team:

 24
This team is also linked with the Sulphur Recovery Unit in

the Operations sector and focus on minimizing the release of

Sulphur as well as other harmful gases into the air, to

Organisation study

ensure the safety of the environment and the neighbouring

people.

3.4 Project Department

This department is only run by 3 people and is guided by the Chief

General Manager as well. Its function is to execute the different projects taken

up by the firm. NRL has completed the following projects in the year 2017-18

and has also committed to about 10 projects for the upcoming year:

- DHDT Project: The project was implemented for compliance of

Auto Fuel norms set by the Govt. of India for BS-IV grade fuels.

NRL is now capable of producing entire HSD as BS-IV grade at

100% capacity utilization of the refinery and will also meet future

BS-VI HSD compliance.

- Modernisation and capacity augmentation of LPG Bottling

Plant at Numaligarh: The LPG Bottling plant at Numaligarh was

upgraded and capacity was augmented from 10 to 42 TMT per

annum. The project was implemented to meet growing demand of

packed LPG in the North East and will facilitate speedy

implementation of the Pradhan Mantri Ujjwala Yojana (PMUY)

 25
scheme in this region which aims to replace unclean cooking fuels

in rural India with the clean and more efficient LPG.

3.5 Commercial Department

Its function is identification and development of business opportunities

and the profitable management of projects and contracts, from inception to

completion. Commercial policies relate to the rules or practices that define

Organisation study

how business will be conducted and the standard terms under which external

relationships will be conducted. Many of these policies are reflected in the terms

of any contract in which the organization engages. At a transactional level,

commercial management is applied through the oversight of trading

relationships to ensure their compliance with business goals or policies and to

understand or manage the financial and risk implications of any variations.

Its major function is to procure all the materials required for the

functioning of all the departments under the technical department. This

department is guided by the General Manager.

3.6 Business Development/ Corporate planning Department

The Business development department entails tasks and processes to

develop and implement growth opportunities within and

between

organizations. This department is led by the Chief General Manager and is a

small department consisting of not more than 6 officials. The main function of
 26
this department in NRL is to plan and prepare the Memorandum of

Understanding (MoU) every year, and to look for new business opportunities

available in the market.

3.7 Finance Department

The business functions of the NRL finance department includes

planning, organizing, auditing, accounting for and controlling its company’s

finances. They also focus on producing the company’s financial statements.

There are total 32 employees in this department and is run by the General
 23

ORGANOGRAM OF THE FINANCE DEPARTMENT

Organisation study
28

Manager (Finance). It further has 4 sub-departments, namely Pricing and

treasury, Accounts, Indirect Tax, and Costing & Budgeting.

Pricing and treasury

The Pricing department at NRL employs pricing strategies that meet

their market standards, policies and procedures. They ensure that salespeople

and marketing employees comply with pricing changes. They also make sure

that markdowns and store signage changes are accurately applied in an efficient

and timely manner.

They frequently monitor market pricing systems, advertising media and

registers for pricing accuracy. They help their stores drive sales, increase profits,

meet productivity standards and remain competitive with similar

retailers.

The pricing manager helps in determining what to charge for their

products or services by considering production and other costs to determine the

price point to make a profit, and set base prices and develop discount programs,

assist in creating promotional campaigns, compare prices set by competitors and

measure customer satisfaction based on the cost of a company’s product or

service.

The treasury department looks at administering to the financial assets

and holdings of a business. They mostly focus on optimizing the company’s

liquidity, make sound financial investments for the future with any excess cash,

and reduce or enter into hedges against its financial risks.

Organisation study
29

This department also has the department of marketing finance under it,

which focuses on recovering the dues occurred during trading of securities

including equities, bonds, currencies and derivatives occur.

Accounts

The accounting department is responsible for recording and reporting the

cash flows, both in and out, of NRL. There are five basic roles or functions

within the departments namely, Accounts receivable, Accounts payable,

Payroll, Financial controls, and Financial reporting.

Cash receipts are handled by the accounts receivable department. This

process involves receiving and recording the cash payments from customers for

services rendered or products sold. Accounts receivable is responsible for

ensuring the customer receives an invoice for the goods or services and that the

customer pays the balance due on that invoice. Financial controls come into

play once the cash receipts are received and recorded in the system, and a deposit

needs to be made. In order to maintain the best separation of duties possible and

prevent any opportunity for wrong doing, NRL has one person recording the

cash and another person making the deposit at the bank.

The Cash disbursements are handled by the accounts payable sub-

department of the firm. This sub-department is responsible for paying vendors

for supplies purchased or any other expenses incurred by the business: utilities,

taxes, etc., and receives invoices from vendors, records them in the accounting

system, and then writes the checks to pay the vendors. The
Organisation study
30

financial controls occur to maintain a good separation of duties in this

department. NRL again has one person responsible for recording the accounts

payable, and one person responsible for signing the checks.

The payroll sub-department of NRL is responsible for recording its

employee’s compensation including gross wages, salaries, bonuses,

commissions, and so on that have been earned by its employees. They also

record the withholding of payroll taxes such as federal income taxes, Social

Security taxes, Medicare taxes, state income taxes, employee’s portion of health

insurance premiums, employee’s contributions to savings plans, garnishments

of salaries and wages, etc. employer's portion/expense of fringe benefits such as

health and dental insurance, paid holidays, vacations and sick days, pension and

savings plan contributions, worker compensation insurance,

etc.

Members of a financial control team of NRL are among the leading

accounting executives of a company, and besides providing financial leadership

and formulating accounting strategies, they can also help the company establish

a broad vision of where they are, where they want to be and how they propose

to get there in terms of finances. This sub-department of NRL has mainly 5

functions as follows:

1. Secure internal controls: The financial controllers are responsible

for establishing the procedures for securing the internal controls of

the company. Under their supervision, every invoice is reviewed,

aging accounts looked into, and debts managed. They lay down the
Organisation study
31

compliance rules, make sure that the rules are adhered to and also

changed from time to time. Furthermore, they are responsible for

setting up a system for maintaining records and ensure that the

records are easily available for those who need to read them.

2. Collect and record data: The financial control team is responsible

for working closely with the tax accountants and internal auditors.

Auditors require all kinds of data for completing their work, and the

financial controllers will make sure that the data is available. Tax

accountants also update the accounting books and information to

judge what the tax liabilities of the company are going to be and how

they can save tax. The financial controllers will have to explain

different accounting entries to them so that the tax accountants can

file accurate statements.

3. Data analysis: Since the financial controllers at NRL have access to

large volumes of data and understand it well, they also are

responsible for financial analysis and providing a perspective on

what the numbers mean to the firm. Before taking an important

business decision, the Chief General Manager (Finance) calls the

financial controller and asks his opinion on whether there is enough

financing to go ahead with a project. Financial controllers at NRL

can assess risk, analyze efficiency and take a view on the policy

decisions made by senior management. Their opinions are often

sought for long-term financial planning as well.

Organisation study
32

4. Reporting: Financial reporting forms a huge part of the financial

controller’s role at NRL since the reporting happens quarterly being

a Public Sector Unit. Balance sheets, budgets, cash flow

Organisational study 28

statements, asset statements and financial projections cannot be released until the

General Manager, along with Management Accounts team, have substantiated them.

The General Manager also ensures that the numbers which appear in the financial

statements are accurate.

• An indirect tax is supposed to be collected by the firm and paid to the government, and, it is

passed on to the consumer as part of the purchase price of a good or service. The consumer

is ultimately paying the tax by paying more for the product. The accounting

for this is maintained in system through SAP ERP when sales take place.

The prices of oil and gas is not only determined by simple concepts of demand and

supply. The price of oil, as we know it, is set in the oil futures market. An oil futures contract

is a binding agreement that gives one the right to purchase oil by the barrel at a predefined

price on a predefined date in the future. Under a futures contract, both the buyer and the

seller are obligated to fulfil their side of the transaction on the specified date. The mere

belief that oil demand will increase dramatically at some point in the future can result in a

dramatic increase in oil prices in the present as speculators and hedgers alike snap up oil

futures contracts. Of course, the opposite is also true. The mere belief that oil demand will

decrease at some point in the future can result in a dramatic decrease in prices in the present

as oil futures contracts are sold (possibly sold short as well), which means that prices can

hinge on little more than market psychology at times. Thus, the Pricing sub-department takes

into consideration all these factors before setting a price to its products, in consultations with

industry peers.

Organisational study 29
 4. ANALYSIS & INTERPRETATION

(FINANCE & ACCOUNTS)

During the period of 6 weeks specializing in the finance department as a part of the

internship program, several ratio-analysis was carried forward for data analysis and

interpretations. A ratio is a simple arithmetical expression one number to another. The technique

of ratio-analysis can be employed for measuring short-term liquidity or working capital position

of a firm.

4.1 Current ratio

Current ratio may be defined as the relationship between current assets and current

liabilities. This ratio is a measure of general liquidity and is most widely used to make the

analysis of a short-term financial position or liquidity of a firm. Current ratio is the indicator of

the availability of current assets to meet the current liabilities in a business concern. Higher is

the ratio, better is the coverage. It represents the margin of safety for the creditors. The formula

for calculating these ratios is as follows-

Current ratio = Current assets/Current liabilities

4.1.1 Comparative analysis (in Cr.)

The comparative analysis for the evaluation of current assets is given below:

Particulars 2015-2016 2016-2017 2017-2018

Total Current Assets 3879.59 4323.20 4313.98
Total Current 1427.51 1366.42 1695.26

Liabilities
Current Ratio 2.72 3.164 2.544
Organisation study 30

From the table, the ratio in the year 2015-16 is 2.72 which has increased

to 3.164 in the year 2016-17, which has again increased to 2.54 in

2017-18 and 2013-2014. Thus, the ratio sees an increase from the year 2015-

16. However, 2017-18 faces a slight decrease in the same by 0.62cr.

4.1.2 Chart Analysis (in Cr.)

3.5
Current ratio
3

2.5

1.5

0.5

0
2015-16 2016

From the above figure it can be interpreted that the current ratio in the

financial year 2015-16 to 2016-17 had an increasing trend. But in the financial

year 2017-2018 it decreased which could be because of the percentage increase

in current liabilities as compared to previous year is more than the percentage

increase in current assets. Increase in current liabilities, in turn, could be because

of an increase in Trade payables & Short-term provisions.

4.2 Liquid ratio

 Liquid ratio or Quick ratio or Acid test ratio is used as an assessment

tool for testing the liquidity position of the firm. It indicates the relationship

between strictly liquid assets and current liabilities. Liquid assets comprise all

Organisation study 31

current assets minus stock. The formula for calculating these ratios is as follows-

Quick ratio = Quick or liquid assets / Current liabilities

4.2.1 Comparative analysis (in Cr.):

2015-2016 2016-2017 2017-2018

Quick assets 2820.77 2694.65 2406.46
(current assets -
inventories)

Current 1427.51 1366.42 1695.26

Liabilities
Quick ratio 1.98 1.972 1.42

From the table above, in the financial year 2015-16, the quick ratio is

1.98 which decreased negligibly to 1.972 in the next year. Further, in the year

2017-18, the ratio decreased significantly to 1.42. This depicts a decreasing

trend over the three years.

4.2.2 Chart analysis (in Cr.)

 2
1.8 Quick ratio
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2015-16 2016-17 2017-18
Organisational study 32

From the figure it can be interpreted that the quick ratio in the year 2016 decreased in

the next financial year because of slight increase in inventories. Further in the next financial

year it decreased significantly because of the significant increase in the inventories by 178.97

cr.

4.3 Earnings per share

Earnings per share (EPS) is the portion of a company's profit allocated to each share of

common stock. It serves as an indicator of a company's profitability. It is common for a company

to report EPS that are adjusted for extraordinary items, potential share dilution. Most simply

EPS is calculated as:

EPS = Net Income-Preferred dividends/Weighted average Common shares

However, the diluted earnings per share is a calculation used to gauge the quality of a

company's earnings per share (EPS) if all convertible securities were exercised. Convertible

securities are all outstanding convertible preferred shares, convertible debentures, stock options,

and warrants. Unless a company has no additional potential shares outstanding (rare), the diluted

EPS will always be lower than the simple or basic EPS. Diluted EPS is calculated as:

Dil. EPS = Total Income-Preferred dividends/Outstanding shares

Organisational study 33
4.3.1 Comparative study (in Cr.)

Year 2015-16 2016-17 2017-18

Profit attributable to 1,209.82 2,044.65 2,100.57
equity holders of the
company for basic and
diluted earnings per
share

Issued ordinary shares at 73.56 73.56 73.56

April 1 (In Crore)

Weighted average 73.56 73.56 73.56

number of shares at
March 31 for basic and
diluted earnings
per shares

Basic and Diluted 16.45 27.79 28.55

earnings per share

(Rs)

From the above table, it can be understood that in the year 2015-16, the EPS was 16.45.

In 2016-17, the EPS was 27.79 and 28.55 in the year 2017-18. Thus, an increment of EPS can

be noticed every year.

Organisation study 42

4.3.2 Chart analysis (in Cr.)

30

25
EPS
20

15

10

0
2015-16

From the above, it can be observed that the year 2016-17 has seen an

appreciable increment in the firm’s diluted earnings per share value. Since

there’s a positive trend between the three years, it can be understood that the

firm is generating an increasing amount of earnings, or buying back of stocks,

and is able to generate a significant dividend for investors, and it may plow the

funds back into its business for more growth. Thus, an increase in this ratio

indicates a potentially worthwhile investment, depending on the market price

of the stock.

4.4 Proprietary ratio

The proprietary ratio shows the proportion of total assets of a company

which are financed by proprietors’ funds. The proprietary ratio is also known as

equity ratio. It helps to determine the financial strength of a company and is

useful for creditors to assess the ratio of shareholders’ funds employed out of

total assets of the company. It can be determined by the following formula:

Proprietary ratio = Shareholder’s funds/ Total assets x 100

Organisation study 43

4.4.1 Comparative analysis (in Cr.)

2015-16 2016-17 2017-18

Total 3957.55 5180.64 5044.35
shareholder’s
fund

Total assets 6471.63 7237.49 7354.51

Proprietary ratio 61.15 71.58 68.59

Thus, from the above table, it can be understood that there is a positive

trend in terms of proprietary ratio from the year 2015-16 to 2016-17.

However, there’s a significant fall in the same from 2016-17 to 2017-18.

4.4.2 Chart analysis (in Cr.)

72
70 Proprietary ratio
68
66
64
62
60
58
56
54
2015-16 2016-17 2017-18

From the above figure, it can be observed that there’s a positive trend of

the proprietary ratio from the year 2015-16 to 2017-18, therefore, indicating an
Organisation study 44

increase in the strength of NRL’s financial position and greater security for

creditors of NRL and the company is not dependent on debts for its operations.

4.5 Solvency ratio

Solvency ratio is a key metric used to measure an enterprise’s ability to

meet its debt and other obligations. The solvency ratio indicates whether a

company’s cash flow is enough to meet its short-term and long-term liabilities.

The lower a company's solvency ratio, the greater the probability that it will

default on its debt obligations. It can be calculated as follows:

Solvency ratio = (PAT + Depreciation)/(Short-term liabilities + Long-

term liabilities)

4.5.1 Comparative analysis (in Cr.)

2015-16 2016-17 2017-18

PAT 1222.34 2100.57 2044.65
Depreciation 203.89 163.63 183.60
Short term + Long 2514.08 2056.85 2310.16
term liabilities

Solvency ratio 0.57 1.101 0.965

Thus, it can be observed from the table above that there’s a positive trend

of the solvency ratio from the year 2015-16 to 2016-17. However, there’s a

slight fall in the same in the next year.

4.5.2 Chart analysis (in Cr.)

Organisation study 45

1.2
Solvency ratio
1

0.8

0.6

0.4

0.2

0
2015-16

From the above chart, it can be understood that there’s a positive trend

of the solvency ratio from the year 2015-16 to 2016-17, indicating that cash flow

is gradually reaching the point of being enough to meet its short-term and long-

term liabilities and the probability that it will default on its debt obligations is

decreasing every year.

4.6 Interest coverage ratio

The interest coverage ratio is a debt ratio and profitability ratio used to

determine how easily a company can pay interest on its outstanding debt. The

interest coverage ratio may be calculated by dividing a company's earnings

before interest and taxes during a given period by the company's interest

payments due within the same period. It can be calculated as follows:

Interest coverage ratio = (Net income + Interest expense + taxes) /

Interest expenses
Organisation study 46

4.6.1 Comparative study (in Cr.)

Particulars 2016-17 2017-18

Net income 3147.57 3142.34
Interest expense 112.88 176.72
Total Tax 1047 1087.69
Interest expenses 112.88 176.72
Interest coverage ratio 38.16 24.94

Thus, it can be observed from the table above that the interest coverage

ratio has decreased by an appreciable amount from the year 2016-17 till 2017-

18.

4.6.2 Chart analysis (in Cr.)

40
35 Interest coverage
30 rato

25
20
15
10
5
0
2016-17
Organisation study 47

From the above chart, it can be understood that there is a negative trend

of the interest coverage ratio over the years, which may indicate that NRL has

become comparatively less efficient at paying interest on its outstanding debt

over the years.

4.7 Fixed assets to Net worth ratio

Fixed assets to net worth are a ratio measuring the solvency of a

company. This ratio indicates the extent to which the owner’s cash is frozen in

the form of fixed assets, such as property, plant, and equipment, and the extent

to which funds are available for the company's operations (i.e. for working

capital). This can be calculated as follows:

Fixed assets to Net worth ratio = Net Fixed assets/ Net worth

4.7.1 Comparative study (in Cr.)

2015-16 2016-17 2017-18

Net fixed assets 2070.06 2118.95 2448.48
Net worth 3957.55 5180.64 5044.35
Fixed assets to 0.523 0.409 0.485
Net worth ratio

From the table above, it is observable that this ratio has been negligibly

fluctuating over the years. There is a decrease in the value from the year 2015-

16 to 2016-17 and an increment in the same from the year 2016-17 to 2017-

18.
Organisation study 48

4.7.2 Chart analysis (in Cr.)

 49
Organisation study

0.6

0.5

Fixed assets to
Net worth ratio

0 0.4
2015-16 2016-17 2017-18
0.3

0.2

0.1

From the about chart, it can be understood that the ratio value has been

negligibly fluctuating over the past three years. This, thus, indicates that the firm

hasn’t been able to remain stable in terms of the extent to which the firm’s cash

is frozen in the form of fixed assets, such as property, plant, and equipment, and

the extent to which funds are available for the company's working capital.

4.8 Return on Assets

Return on assets (ROA) is an indicator of how profitable a company is

relative to its total assets. ROA gives a manager, investor, or analyst an idea as
Organisation study 50

to how efficient a company's management is at using its assets to generate

earnings. Return on assets is displayed as a percentage and its calculated as:

ROA = Net Income / Total Assets

4.8.1 Comparative analysis (in Cr.)

2015-16 2016-17 2017-18

Net Income 1884.72 3147.57 3142.34
Net Assets 3957.55 5180.64 5044.35
ROA 47.62% 60.76% 62.29%

From the above table it can be understood that the return on assets (in

terms of percentage) had increased over the years eventually and depicts a

positive trend.

4.8.2 Chart analysis (in Cr.)

70.00%
60.00% ROA (%)
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2015-16 2016

From the above chart it can be understood that the return on assets in

terms of percentage has gone up from 2015-16 to 2017-18 by a significant

Organisation study 51

difference. This could be explained by a significant increase in the firm’s profits

and NRL’s management is efficient at using its assets to generate earnings.

4.9 Net working capital

Net working capital is the excess of current assets over current liabilities.

It is an indicator of the financial soundness of an enterprise. It may be positive

or negative. If the figure is positive, it indicates that the amount of short-term

funds available from current assets is more than adequate to pay for current

liabilities as they come due for payment. A positive net working capital will

arise when current assets exceed current liabilities and vice versa.

It can be calculated as follows:

Net working capital = Current assets – Current liabilities

4.9.1 Comparative analysis (in Cr.)

2015-16 2016-17 2017-18

Current assets 3,879.59 4,323.20 4,212.81
Current liabilities 1,427.51 1,366.42 1,695.26
Net working 2452.08 2956.78 2517.55
capital

From the table above, it can be understood that the Net working capital

from the year 2015-16 has increased by 504.7 cr in the year 2016-17. Further,

the same has decreased by 439.23 cr in the year 2017-18.

4.9.2 Chart analysis (in Cr.)

Organisation study 52

3000
Net working
2500
capital
2000

1500

1000

500

0
2015-16

From the above figure, it can be understood that the net working capital

shows a positive trend from the year 2015-16 to 2016-17. The increase in the

same indicates the increase in strength of the financial position of the firm and

the fact that the firm has enough working capital to meet its short- term

liabilities. However, there’s a fall in the next year, suggesting otherwise.

5. SWOT ANALYSIS

STRENGTHS

The Company’s net worth has progressively risen to the level of `5,044

crores as on 31st March 2018 with reserves and surplus at `4,309 crores. The

Company’s financial position and favourable credit ratings augur well for the

upcoming expansion project.

In terms of production efficiency, NRL continues to be one of the best

performing refineries in the country with highest distillate yield and lowest
Organisation study 53

specific energy consumption. NRL has the largest wax producing unit in the

country and since commencing commercial production of Paraffin Wax in

2015-16, it has ended the last fiscal with highest market share in the country.

Paraffin wax, being a high value product, adds value to refining margin.

NRL has commissioned the Diesel Hydrotreater Unit in Jan’18 and is capable

of producing both BS-IV and BS-VI grade of HSD at 100% capacity utilisation

of the refinery. The Company enjoys unstinted support from stakeholders

particularly from its holding company, BPCL and the administrative Ministry,

MoP&NG, thus providing the needed inspiration to forge ahead towards

achieving challenging objectives.

WEAKNESSES

The major weakness of NRL is its sub-economic refinery size at 3.0

MMTPA. Coupled with this, the logistical bottlenecks for importing limited

quantity of crude oil to saturate existing refining capacity results in relatively

higher operating cost per unit of crude processed. Demand of petroleum product

in North East is slowly picking up with MS demand growing at around 16%

and HSD demand growing near 9%. In view of this, cost to evacuate product

outside the region is likely to come down in near future.

OPPORTUNITIES

Being a major supplier of POL product to BPCL in eastern part of the

country with a projected growth in demand, there is opportunity to expand

NRL’s refinery capacity by sourcing incremental through imports. In this

regard, NRL is actively pursuing plans for refinery expansion from 3 to 9

Organisation study 54

MMTPA.

Post expansion, surplus products available in the refinery could be

exported to neighbouring Bangladesh, Myanmar and Nepal. NRL has been able

to maintain its highest market share in the country for paraffin wax. There is an

opportunity to penetrate marketing of wax further in the neighbouring ASEAN

countries. As on date, NRL Wax has been exported to 24 different countries

worldwide.

THREATS

Inadequate availability of oil and Natural gas in North East continues to

be a primary threat for the Company. Production of oil in the region has been

declining over the past few years. On the other hand, due to increase in demand

for Natural gas in the region, there have been concerns for

uninterrupted availability of Natural Gas. It is, therefore, extremely essential

to connect the North East Refineries with a source of imported oil and Natural

Gas so that its sustenance in the long term is ensured.

 55
Organisation study

6. SUGGESTIONS/ RECOMMENDATIONS

• Efforts could be taken to build strategic reserves, both domestic and abroad

to reduce supply disruptions in the downstream sector, and investments could

be called in the downstream infrastructure in the form of pipelines and other

facilities for faster transport by NRL.

• NRL only sells 10% of its products directly, and 90% is given off to its parent

company, thus making it predominantly a refinery-based company, and not

a commercial one. Therefore, they can focus more on selling their products

directly to extend their turnover manifolds.

• NRL can look to grow market abroad since it is only involved with a few

neighbouring countries, such as Myanmar and Bangladesh. Although their

paraffin wax has made it presence in countries like Chile, Vietnam, Thailand,
 56
etc., it must look to expand into different countries through its major products

like LPG, Diesel, Petrol, NAPHTHA, etc.

Organisation study

consumption of energy. However, some energy could be saved through

appropriate measures like conservation, avoidance of wastage and

improvement in energy efficiency. The case for resorting to alternative,

renewable sources of energy such as hydropower, solar energy ethanol etc.,

is mostly the need of the hour for NRL.

• The management should evaluate its inventory composition properly to

reduce inventory holding cost and inventory holding period.

• A paperless culture can be introduced to NRL which in-turn can bring a

number of benefits, such as reduced business cost associated with paper,

printers, copiers, fax machines, ink and toner cartridges, eliminate filing

cabinets and reduce office space, secured backup of all documents, etc.
 57
Organisation study

7. CONCLUSION

Being an intern for six weeks at Numaligarh Refinery Limited gave me

an opportunity to learn about the working of a Public Sector Unit and the

importance of all the departments being efficient and sincere because they are

all inter-related and failure in one department to achieve its goals can lead to a

failure in the other departments, leading to a downfall in the company’s

performance. The firm is very well coordinated and has been able to achieve

more than its goals ever-since its set up. The firm has performed extraordinarily

and has marked a revenue from operations at 15,923.19 Crore in the year 2017-

18, registering a growth of 14.17% as compared to 13,946.92

Crore in the previous year. This depicts intensive growth in the firm’s

performance.

While focusing on the finance department’s functions, it could be

learned that the analysis of the firm’s financial statements consists of a mixture

of steps and pieces that interrelate and affect each other, and not only one part

of the analysis should be interpreted in isolation. For example, short term

liquidity impacts profitability; profitability, in-turn, begins with sales, which

relates to the liquidity of assets. Finally, the efficiency of asset management

influences the cost and availability of credit, which shapes the capital structure.
 Thus, every aspect of the firm’s financial condition, performance, and outlook

affects the share price. The last step of financial

Organisation study 50

statement analysis is to integrate the separate pieces into a whole, leading to

conclusions about the business enterprise.

During the period, it was also learnt that the working capital is the

lifeline of every industry, irrespective of whether it is a manufacturing industry

or service industry. Working capital is the prime and most important

requirement for carrying out the day to day operations of the business. The goal

of working capital management is to ensure that a firm can continue its

operations and that it can satisfy both maturing short-term debt and upcoming

operational expenses. Thus, to manage and maintain a proper balance of

working capital of the firm under uncertainty, the firm must ensure that it have

enough cash balance to meet its recurring obligation at a smaller time-period

and it also should re-assess its credit policies to ensure the timely collection of

credit sales that is not earning interest for the firm.

8. REFERENCES
Organisation study 59

Numaligarh Refinery Limited. (2000). Retrieved from

https://www.nrl.co.in.
Numaligarh Refinery Limited. (2016). Annual Report 2015-16.

Numaligarh Refinery Limited, Guwahati.

Numaligarh Refinery Limited. (2017). Annual Report 2016-17.

Numaligarh Refinery Limited, Guwahati.

Numaligarh Refinery Limited. (2018). Annual Report 2017-18.

Numaligarh Refinery Limited, Guwahati.

Organisation study 60

ANNEXURE I

Consolidated balance sheet for the year 2015-16

Organisation study 61

ANNEXURE II

Consolidated balance sheet for the year 2016-17

Organisation study 62

ANNEXURE III

Consolidated Balance sheet for the year 2017-18

Organisation study 63

ANNEXURE IV

Consolidated Profit and Loss account for the year 2015-16

Organisation study 64

ANNEXURE V

Consolidated Profit and Loss account for the year 2016-17

Organisation study 65

ANNEXURE VI
Organisation study 66

Consolidated Profit and Loss account for the year 2017-18

Organisation study 67

ANNEXURE VII

Picture of the refinery unit and depot

Organisation study 68
Organisation study 69
Organisation study 70
Organisation study 60

ANNEXURE VIII

Logo Concept

The design concept of NRL corporate identity is based upon the theme

‘Energy in Motion’. The sun is the universal source of energy, and the

speeding sun with a blazing trait of light represents energy in motion.

NRL will produce refined petroleum products, which would supply both

energy for motion, as well as light for the nation. But as an organisation

created by the people, NRL is also determined to be socially responsible and

contribute towards the industrial growth of the North-East region.

 NRL is a perfect combination of highly trained professionals and state-

of-the-art technology. The upward moving logo is designed to reflect the

progressive spirit of the organisation.

Organisation study 61

ANNEXURE IX

Board of directors