Financial Performance Analysis of LP Gas Ltd. with Special Reference to Govt. Restriction on New Piped Gas Connection to Households

This paper examines the financial performance of LP Gas Ltd. and impact on sales resulting from the Govt. restriction on new piped gas connection to households. The existing literature was reviewed to establish the financial performance framework of the company and at the same time to examine the sales (m. ton) of LP Gas Ltd before and after the Govt. proscription of Gas connection to the households. The performance of the company has been measured through various financial ratios i.e. liquidity ratios, activity ratios, leverage ratios, and profitability ratios with an analysis of market value ratios. SPSS software package is used for descriptive statistics and to predict the sales trend linear regression method is used. To examine the impact of Govt. restriction on piped gas connection on the sales of LP Gas: t-test has been resorted. The analysis brings to the fore that the financial position and operational performance of LP Gas ltd. in most cases are not satisfactory. Sales trend shows huge incongruities over the 23 years period. Sales (m.ton) of LP Gas Ltd. have not been significantly increased since the time after the Govt. restrictions of new gas connection to households.