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Devising the optimal treasury strategy - EY - India

Cash flow stability for oil refining and marketing companies

Devising the optimal treasury strategy

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The treasury strategy for marketing and refining companies needs to focus on protecting operating cash flow stability over a long period of time. 

Adopting AS-30/IAS-39 is also critical to ensure that the cash flow management strategy is appropriately reflected in the financial statements.

For companies that have under-recoveries from the marketing business, the treasury strategy is also required to ensure that working capital deficits are financed at the optimal cost until oil bonds are allocated.

Adopting AS-30/IAS-39 is also critical to ensure that the cash flow management strategy is appropriately reflected in the financial statements.

Appropriate quantification of risk and understanding potential impact on cash flows is the cornerstone of an effective treasury management strategy.


*Refer to the attached PDF for source information

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