Financing of Working Capital in Select Public Sector Oil and Gas Companies in India - a Comparative Study

Abstract

It is generally argued that the pem1anent or fixed portion of total current assets should be financed by long term sources and the temporary or variable portion of the total current assets should be financed by short term sources. However, in the real world situation this argument does not always holds good. The pattern of financing current assets adopted by a firm depends upon several factors, such as cost of capita l, risk performance of owners etc. several studies on this issue have been made in India and abroad but no significant study on Jndjan pubUc sector oil and gas companies considering the ma tter addressed here has been carried out. Oil and gas comparues have a significant place in our national economy as it provides the basic input to infrastructure and consumer goods. In this backdrop, the present study seeks to examine financing pattern of working capital of select pubUc sector oil and gas companies during the period 1978-79 to 2015-16. The present study has been made by imple mathematical analysis of collected secondary data.