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.
