Solvency analysis of a public sector undertaking: A Study of Oil and Natural Gas Corporation Ltd. (ONGC).

A financial statement is a collection of data organized according to logical and consistent accounting procedures. Its purpose is to convey an understanding of some financial aspect of a business firm. Financial analysis also referred to as financial statement analysis or accounting analysis refers to an impost of the viability, stability and profitability of a business, sub business or study. It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management as one of their bases in making business decision. The present paper explains in detail the analysis of financial statements of Oil and Natural Gas Corporation Ltd. It provides insights into widely used financial tool, ratio analysis. So every company will be interested in knowing its financial performance. The paper entitled “Solvency analysis of public sector undertaking A study of ONGC Ltd '' throw light on overall performance of the company. On the basis of interpretations, findings and suggestions the paper concludes that there is a rise in the total debt of ONGC Ltd. Which is distressing its overall liquidity, solvency and overall performance therefore the researchers suggest that there should be a balanced solvency to be opted by the company in order to achieve more stability and future growth.