Truth of Indian oil companies: After too much of hue n cry by oil companies about their continued losses I decided to check out their balance sheets & P&L statements n here's what I found; In last 10 years IOC's Average yearly profit was 6089 Crores with minimum being 2885 Cr & maximum 10,220 Cr. Now I wonder what these companies mean when they say "we're covering previous losses"???
The current losses are a pure manipulation of figures so that they can justify petrol hikes. A company can easily show its profits as losses by increasing their expenditure figures, inventory holding, debtors, etc... Since April 2011 IOC has increased its inventory by 5500 Cr, receivable money by 3100 Cr which together can convert the so called 7485 Cr loss into profits. All this manipulation of figures combined with govt grant tricks only help these companies to increase the prices & thus their profits. Only one expense remains to be calculated....Amount paid to UPA for letting them hike the prices...
As per my calculations & past records IOC will for sure be in good profits by the end of this financial year, as usual (see pic)!
If u also want to verify the facts please search for financial statements or visit the url below..