Acknowledgemen

t
I would like to express my special thanks of gratitude to
my Commerce teachers,to the HOD of commerce
department, Subhimal Ghosh Dastidar well as our
principal, Dr Bhakta Sundar Sharma who gave me the
golden opportunity to do this wonderful project on the
topic " OWNERSHIP CAPITAL AND PROFITABILITY OF Bharat
Petroleum Corporation Limited  ", which also helped me in
doing a lot of Research and I came to know about so
many new things I am really thankful to them.
Secondly I would also like to thank my parents and
friends who helped me a lot in finalizing this project
within the limited time frame.
Index
Sl.no Contents
Introduction
E-business or Online business means business
transactions that take place online with the help of
the internet. The term e-business came into existence
in the year 1996. E-business is an abbreviation for
electronic business. So the buyer and the seller don’t
meet personally.

In today’s world, we are exposed to various forms of e-

Business. Since its emergence, it has grown by leaps
and bounds. Some predict that it may very soon
overtake brick and mortar stores completely. While that
remains to be seen, we cannot ignore the immense role
it plays in the current global economy.
Features of e-Business
Some of the features of Online Business are as follows :

 It is easy to set up
 There are no geographical boundaries
 Much cheaper than traditional business
 There are flexible business hours
 Marketing strategies cost less
 Online business receive subsidies from the
government
 There are a few security and integrity issues
 There is no personal touch
 Buyer and seller don’t meet
 Delivery of products takes time
 There is a transaction risk
 Anyone can buy anything from anywhere at anytime
 The transaction risk is higher than traditional
business
Types of e- Business
Business-to-Business (B2B)
Transactions that take place between two organizations come
under Business to business. Producers and traditional commerce
wholesalers typically operate with this type of electronic
commerce. Also.it greatly improves the efficiency of companies.

Business-to-Consumer (B2C)
When a consumer buys products from a seller then it is business
to consumer transaction. People shopping from Flipkart,
Amazon, etc is an example of business to consumer transaction.
In such a transaction the final consumer himself is directly
buying from the seller.

Consumer-to-Consumer (C2C)

A consumer selling product or service to another consumer is a

consumer to consumer transaction. For example, people put up
ads on OLX of the products that they want to sell. C2C type of
transactions generally occurs for second-hand products. The
website is only the facilitator not the provider of the goods or the
service.

Consumer-to-Business (C2B)
In C2B there is a complete reversal of the traditional sense of
exchanging goods. This type of e-commerce is very common in
crowdsourcing based projects. A large number of individuals
make their services or products available for purchase for
companies seeking precisely these types of services or products.
Consumer-to-Administration (C2A)
The Consumer-to-Administration model encompasses all
electronic transactions conducted between individuals and public
administration. Some examples of applications include

 Education – disseminating information, distance learning,

etc.
 Social Security – through the distribution of information,
making payments, etc.
 Taxes – filing tax returns, payments, etc.
 Health – appointments, information about illnesses,
payment of health services, etc.
Business-to-Administration (B2A)
This part of e-commerce encompasses all transactions
conducted online by companies and public administration or the
government and its varies agencies. Also, these types of services
have increased considerably in recent years with investments
made in e-government.
Advantages of e-business
There are actually innumerable advantages of e-Business, the
most obvious one being the ease of doing business. Some of the
major advantages of e-business are as follows :

 Easy to Set Up: It is easy to set up an electronic

business. You can set up an online business even by sitting
at home if you have the required software, a device, and
the internet.
 Cheaper than Traditional Business: Electronic
business is much cheaper than traditional business. The cost
taken to set up an e-business is much higher than the cost
required to set up a traditional business. Also, the
transaction cost is effectively less.
 No Geographical Boundaries: There are no
geographical boundaries for e-business. Anyone can order
anything from anywhere at any time. This is one of the
benefits of e-business.
 Government Subsidies: Online businesses get benefits
from the government as the government is trying to
promote digitalization.
 Flexible Business Hours: Since the internet is always
available. E-business breaks down the time barriers that
location-based businesses encounter. As long as someone
has an Internet connection, you may be able to reach and
sell your product or service to these visitors to your business
website.
Limitations of e-Business
But it isn’t all good news. E-business does have certain
disadvantages when compared to the traditional way of doing
business. Some of the limitations of e-business are as follows :

 Lack of Personal Touch: E-business lacks the personal

touch. One cannot touch or feel the product. So it is difficult
for the consumers to check the quality of a product. Also,
the human touch is missing as well. In the traditional model,
we have contact with the salesperson. This lends it a touch
of humanity and credibility. It also builds trust with the
customer. An e-Business model will always miss out on such
attributes.
 Delivery Time: The delivery of the products takes time.
In traditional business, you get the product as soon as you
buy it. But that doesn’t happen in online business. This lag
time often discourages customers. However, e-businesses
are trying to resolve such issues by promising very limited
delivery times. For example, Amazon now assures one-day
delivery. This is an improvement but does not resolve the
issue completely
 Security Issues: There are a lot of people who scam
through online business. Also, it is easier for hackers to get
your financial details. It has a few security and integrity
issues. This also causes distrust among potential customers.
Threats to e-business
 Online security breach
 Client disputes and refunds
 Violation of Intellectual property
 Low SEO ranking
 Credit cards scams
 Poor customer service
 Weak authentication methods
Bharat Petroleum
Bharat Petroleum Corporation Limited (BPCL) is an Indian public
sector oil and gas company headquartered in Mumbai, Maharashtra.The
Corporation operates two large refineries of the country located
in Kochi and Mumbai. The company is India's 2nd largest
downstream oil company and is ranked 275th on the Fortune list of the
world's biggest corporations as of 2019. BPCL ranked 672 in the Forbes
2018 list.
The company today known as BPCL started off as Rangoon Oil and
Exploration company set up to explore the new discoveries off Assam
and Burma during the British colonial rule of India. In 1889 during vast
industrial development, an important player in the South Asian market
was the Burmah Oil Company. Though incorporated in Scotland in 1886,
the company grew out of the enterprises of the Chef Rohit Oil Company,
which had been formed in 1871 to refine crude oil produced from
primitive hand dug wells in Upper Burma.
In 1928, Asiatic Petroleum Company (India) started cooperation with
Burma oil company. Asiatic Petroleum was a joint venture of Royal
Dutch, Shell and Rothschilds formed to address the monopoly of John D
Rockefeller's Standard Oil, which also operated in India as Esso. This
alliance led to the formation of Burmah-Shell Oil Storage and
Distributing Company of India Limited. Burmah Shell began its operate
operations with import and marketing of Kerosene.
In the mid 1950s, the company began to sell LPG cylinders to homes in
India and further expanded its delivery network. It also
marketed kerosene, diesel and petrol in cans in order to reach remote
parts of India. In 1951, the Burmah shell began to build
a refinery in Trombay (Mahul, Maharashtra) under an agreement with
the Government of India.
In 1976, the company was nationalized under the Act on the
Nationalisation of Foreign Oil companies ESSO (1974), Burma Shell
(1976) and Caltex (1977). On 24 January 1976, the Burmah Shell was
taken over by the Government of India to form Bharat Refineries
Limited. On 1 August 1977, it was renamed Bharat Petroleum
Corporation Limited. It was also the first refinery to process newly found
indigenous crude Bombay High.
In 2003, the government attempted to privatize the company. However,
following a petition by the Centre for Public Interest Litigation, the
Supreme Court restrained the Central government from
privatizing Hindustan Petroleum and Bharat Petroleum without the
approval of Parliament. As counsel for the
CPIL, RajinderSachar and PrashantBhushan said that the only way to
disinvest in the companies would be to repeal or amend the Acts by
which they were nationalized in the 1970s. As a result, the government
would need a majority in both houses to push through any privatization.
Parliament enacted the Repealing and Amending Act, 2016 in May 2016
which repealed the legislation that had nationalized the company. In
2017, Bharat Petroleum Corporation Limited (BPCL)
received Maharatna status, putting it in the category of government-
owned entities in India with the largest market capitalization and
consistently high profits. status on 12 September 2017.
On 21 November 2019, the Government of India approved the
privatization of Bharat Petroleum Corporation Limited (BPCL). The
government invited bids for the sale of its 52.98% stake in the company
on 7 March 2020.
Ownership
As of September 2018, 54% of the shares of BPCL were
owned by the Government of India (through
the President of India), with the rest owned by Foreign
Portfolio Investors (17%), BPCL trust for investing in
shares (9%), Mutual funds and UTI (7.5%), Insurance
companies (6%) and the balance held by individual
share holders. In 2019 government decided to make
BPCL private by selling all its shares hence making BPCL
a private ltd company

Capital Structure

Authorized Issued
Period Instrument Capital Capital -PAIDUP-

From To   (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital

2019 2020 Equity Share 2635.0 1966.9 1966880000 10.0 1966.9

2018 2019 Equity Share 2635.0 1966.9 1966880322 10.0 1966.9

2017 2018 Equity Share 2500.0 1966.9 1966880322 10.0 1966.9

2016 2017 Equity Share 2500.0 1311.3 1311253548 10.0 1311.3

2015 2016 Equity Share 2500.0 723.1 723084248 10.0 723.1

2014 2015 Equity Share 2500.0 723.1 723084248 10.0 723.1

2013 2014 Equity Share 2500.0 723.1 723084248 10.0 723.1

2012 2013 Equity Share 2500.0 723.1 723084248 10.0 723.1

2011 2012 Equity Share 450.0 361.5 361542124 10.0 361.5

2010 2011 Equity Share 450.0 361.5 361542124 10.0 361.5

2009 2010 Equity Share 450.0 361.5 361542124 10.0 361.5

2008 2009 Equity Share 450.0 361.5 361542124 10.0 361.5

2007 2008 Equity Share 450.0 361.5 361542124 10.0 361.5

2006 2007 Equity Share 450.0 361.5 361542124 10.0 361.5

2005 2006 Equity Share 450.0 300.0 300000000 10.0 300.0

2003 2004 Equity Share 300.0 300.0 300000000 10.0 300.0

2002 2003 Equity Share 300.0 300.0 300000000 10.0 300.0

2001 2002 Equity Share 300.0 300.0 300000000 10.0 300.0

2000 2001 Equity Share 300.0 300.0 300000000 10.0 300.0

1999 2000 Equity Share 200.0 150.0 150000000 10.0 150.0

1994 1999 Equity Share 200.0 150.0 150000000 10.0 150.0

1993 1994 Equity Share 50.0 50.0 50000000 10.0 50.0

1990 1993 Equity Share 50.0 50.0 50000000 10.0 50.0

profitability
Rs (in Crores)

  Mar'20 Mar'19 Mar'18 Mar'17 Mar'16

  12Months 12Months 12Months 12Months 12Months

INCOME:

Sales Turnover 327580.78 337622.53 277270.54 242047.82 218011.04

Excise Duty 43197.83 40347.48 40849.13 39837.25 28707.71

NET SALES 284382.95 297275.05 236421.41 202210.57 189303.33

Other Income 3081.3100 2983.6000 2911.1000 2600.6800 2012.1600

TOTAL INCOME 287464.26 300258.65 239332.51 204811.25 191315.49

EXPENDITURE:

Manufacturing Expenses 2764.43 2178.63 1756.16 1309.36 1562.32

Material Consumed 256114.80 264900.76 207429.28 176528.67 162739.04

Personal Expenses 3691.45 3664.18 3437.44 3429.46 2879.05

Selling Expenses .00 .00 .00 .00 .00

Administrative Expenses 15172.96 14567.22 11937.41 10113.78 11066.66

Expenses Capitalised .00 .00 .00 .00 .00

Provisions Made .00 .00 .00 .00 .00

TOTAL EXPENDITURE 277743.64 285310.79 224560.29 191381.27 178247.07

Operating Profit 6639.31 11964.26 11861.12 10829.30 11056.26

EBITDA 9720.62 14947.86 14772.22 13429.98 13068.42

 Depreciation 3786.89 3189.28 2653.00 1891.32 1854.30

Other Write-offs .00 .00 .00 .00 .00

EBIT 5933.73 11758.58 12119.22 11538.66 11214.12

Interest 2181.86 1318.96 833.25 495.87 562.94

EBT 3751.87 10439.62 11285.97 11042.79 10651.18

Taxes -12.15 3307.60 3309.67 3003.49 3219.30

Profit and Loss for the Year 3764.02 7132.02 7976.30 8039.30 7431.88

Non Recurring Items -1265.89 -138.02 24.39 -50.69 .00

Other Non Cash Adjustments .00 .00 .00 .00 .00

Other Adjustments 185.06 138.02 -24.39 50.69 .00

REPORTED PAT 2683.19 7132.02 7976.30 8039.30 7431.88

KEY ITEMS

Preference Dividend .00 .00 .00 .00 .00

Equity Dividend 3895.43 2892.44 2464.27 4642.02 1850.57

Equity Dividend (%) 198.05 147.06 125.29 354.01 255.93

Shares in Issue (Lakhs) 19668.80 19668.80 19668.80 14461.68 7230.84

EPS - Annualised (Rs) 13.64 36.26 40.55 55.59 102.78

Rs (in Crores)
Strengths Weaknesses
 Brand Recall: Almost everyone knows  Government
BPCL because of its strong Regulations: Its operations is bound by
reach. People can find their fueling government regulations. This forms a
stations almost everywhere and many chain around them and they can’t freely
people use their LPG cylinders. Thus operate on its own and increase its
they have gained great brand profits like a private firm.
recall and high trust among the
customers.
 Employees: Being a government
company it has more than needed
 Presence: It has a network of around
employees to make its operations run.
1400 retail outlets and much more are
This means extra load on the company
in the stages of construction.
and decrease in its profits.
 Production Capacity: It has huge
refineries set up which gives them an  Environmental Issues: Refining creates
extensive advantage over its a lot of pollution and waste that gets
competitors. This increases reliability dumped into the environment. This
and satisfaction of order fulfilment of reduces their brand image for all of this
customers. wrongdoing.
 Product Portfolio: BPCL has a large  Operating Locations: They have their
product portfolio and due to its R&D, operations just limited to India and this
it keeps on adding to the list. make their target group very small. They
can expand aggressively in the
foreign markets. They are missing out on
profits due to this concentration of
operations.

Opportunities Threats
 Increasing Demand: As the population  The decrease in Conventional Energy
is increasing the demand for vehicles Usage: The world is becoming more
and cooking gas are increasing as environmentally friendly and also the
well. This shows that the market is conventional energy sources are
growing at a very fast rate and BPCL depleting fast. People have taken this
can tap this. into account and have started to move to
 Oil Well discovery: New oil well can be non-conventional sources.
discovered as the prices of the  High Losses: They have been operating
petroleum products is going to mostly under high losses since its
increase in the future. This will give inception.
provide them more control.  Fluctuations in the Global
 Foreign Markets: They can expand markets: The prices of the crude
their market on foreign soil and products are decided by OPEC. This
increase their revenues and profits. makes it difficult to sustain profits for
They can thus expand their companies having high CAPEX and
petrochemical business overseas or OPEX.
form joint ventures with foreign  Competition: They have competition
companies. from other homegrown and government
 Combining PSUs: The GOI in the owned companies like IOCL, HPCL,
Budget 2017 announced that they ONGC and other private companies
would combine all the public sector like Reliance, Essar, Shell, etc
companies to make the business run
smoother and profitable.
SWOT Analysis

CONCLUSION
Bharat Petroleum Corporation Limited (BPCL) is an
Indian public sector oil and gas company headquartered
in Mumbai, Maharashtra.The Corporation operates two large
refineries of the country located in Kochi and Mumbai.[4] The
company is India's 2nd largest downstream oil company and is
ranked 275th on the Fortune list of the world's biggest
corporations as of 2019.[5] BPCL ranked 672 in the Forbes 2018
BIBLIOGRAPHY
I took help for doing this project are as follow:

 ISC COMMERCE VOLUME-II DR. C.B. GUPTA

 Google. com
 Wikipedia.com
 Business.com