Oil and gas industry is very significant sector in the world which has significance in the economy of any nation. In India oil and gas sector has also very important role in the development of the economy. Oil and gas sector not only provides oil and gas to the nation but also provides lot of things which are very important like, employment, revenue in the form of tax to the government and some other benefits to the society. In India most of the quantity of crude oil is imported from other countries. So, the prices and profits of the companies are totally dependent upon the market prices of crude oil. Before 2010 the prices were regulated by the Indian government. From June 2010 onwards the prices were deregulated and the prices are fixed according to the market price of crude oil. The study is also based upon the impact of deregulation on profitability, Solvency and Liquidity of the company. Due to deregulation the public sector companies has overcome the problem of losses gradually. This study includes the ratio analysis to check the profitability, solvency and liquidity of Indian Oil Corporation Keywords: financial statements, ratio analysis, public sector companies, oil and gas