Questions
1. Discuss the about IOCL and its organization structure.
-Indian Oil Corporation Limited (IOCL), one of India’s leading oil
companies. As of FY 2010-2011, IOCL had 540 locations around India
which served as an outlet for its finished products. Indian Oil Corporation
Ltd. (IOCL) was India’s largest company by sales with a turnover of `
12710.740 billion and profit of ` 102.210 billion for the year 2009-10.
Considered an important pillar of the Indian Economy, IOCL was India’s
largest commercial enterprise and flagship national oil company and
downstream petroleum major. It operated the largest and widest network
of fuel stations in the country. In 2010, IOCL had a market share of 41%
in refining, 54% in product pipelines, and 46% in the petroleum products
market.
Organization Structure - All the branches of IOCL worked under the Corporate
Office located in New Delhi, India. It followed a hierarchical structure where
the decision flowed from the top to the bottom and information flowed from the
bottom to the top. Under the corporate office, there were four divisions -
Pipelines, Refineries, Research and Development, and Marketing.
2. Explain the banking arrangements.
- There were two collection modes in IOCL:
Non-E-Collection Modes and E-Collection Modes. With Internet banking
becoming a necessity in the business world, IOCL with the help of its bankers
introduced the concept of E-collections within its working environment.
Indian Oil Corporation, as stated earlier, had a centralized collection system
whereas its payment mechanism was totally decentralized, i.e. Funds would
flow through all the regional offices or state offices to the Head Office.
3. Explain the Cash Flow Management and Cash Budgeting in IOCL.
- A key element of cash management involved projections of inflows and
outflows of cash by the corporation. It also required constant updating on
a day-to-day basis for ensuring effective fund management.
Projections were done in two stages:
- Monthly: by the 7th of every month
