EXECUTIVE SUMMARY

Valvoline Cummins Limited (VCL) is a joint venture between Ashland Inc. USA and Cummins India Limited, is one of the Indias fastest growing lubricant marketers and producer of quality branded automotive/industrial products. Products include automotive lubricants, transmission fluids, gear oils, hydraulic lubricants, automotive filters, specialty products, greases and cooling system products. They started out operations in India in 1998. They are a growing, dynamic company having base of 54 stock points delivering products and services to 500 distributors for bazaar trade and 2945 institutional customers. In bazaar trade the Company approximate that their products are available in more 15,000 retail counters across India. The project revolves around the Payable Department under Finance, how the company makes payments on the procurement of both material and fixed assets. The project also includes the understanding of working on SAP. The scope of the project is to understand the working of the organization on SAP and gain insights on the process of acquiring fixed asset and material under the Purchases department of finance department at Valvoline Cummins ltd. The researcher first got acquainted with the organizational Culture and structure, followed by in depth understanding of the various activities that the purchases department indulges in to procure the various fixed assets and the direct purchases. Apart from this, he researcher also assisted the various employees in their day to day working. The researcher also learned the working of SAP in the organization and how it helps in smooth functioning of the organization.

TABLE OF CONTENTS

Acknowledgement ..2 Declaration ......................................................................................................................................3 Executive Summary ........4 CHAPTER I Introduction 8 (i) Definitions:
(a) Fixed Asset ...8 (b) Direct Purchases ...8

(ii)

Processes Involved In Procuring:

(a) Fixed Asset ...9 (b) Direct Purchases ...9

CHAPTER II - Research Methodology ....11

(i) (ii) (iii)

Objectives .11 Sub Objectives ..11 Research Design 12

(iv) (v)

Data Sources .12 Further Scope 12

CHAPTER III - Industry profile .......14

(i)

Major Competitors 15

CHAPTER IV - Company Profile 17

(i)

The

Joint

Venture

..17
(ii)

Valvoline ...18

Vision

(iii)

Valvoline .18

Mission

(iv)

Valvoline ...18

Values

(v)

Logo .19

Evolution

(vi)

Valvoline

Fact

Sheet

.20
(vii)

Valvoline Products 20

CHAPTER V SAP Implementation ...26 CHAPTER VI - Process of Procurement of Fixed Asset .....30 CHAPTER VII - Process of Procurement of Direct Purchases ...40

CHAPTER VIII Payments .....54 CHAPTER IX Findings, Conclusion & Recommendations ..62 (i)
(ii) (iii) (iv)

Findings 62 Conclusion ....63 Recommendations .64 Limitations 65

Bibliography .66 Annexure Performance Appraisal ..................................................................................................................68 Evaluation Sheet ...........................................................................................................................69 Attendance Sheet ..........................................................................................................................70

CHAPTER I INTRODUCTION
Fixed Assets, also known as non-current asset, is a term used in accounting for assets and property which cannot easily be converted into cash. In most cases, only tangible assets are referred to as fixed. These assets are of permanent nature required for the normal conduct of the Operations of the organization. Fixed assets are items of value which the organization has bought and will use for an extended period of time. They normally include items such as land and buildings, motor vehicles, furniture, office equipment, computers, fixtures and fittings, and plant and machinery etc. The cost of a fixed asset is its purchase price, including import duties and other deductible trade discounts and rebates. In addition, cost attributable to bringing and installing the asset in its needed location and the initial estimate of dismantling and removing the item if they are eventually no longer needed on the location. Direct Materials Purchasing deals with purchase of materials required to produce an end product. Typically these are raw materials required in manufacturing or pre-produced materials added as an assembly to a manufacturing process. Pre-produced materials are generally purchased from a contractor who produces the materials to specification for the company.
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Raw materials are generally processed in house to specification. The direct materials required for a product vary with the industry as well as purchasing constraints. Direct material purchases are a cost of doing business and are considered liabilities to the balance sheet and once paid result in negative cash flow.

PROCESSES INVOLVED The method, generally, used in an organization for the procurement of fixed asset is as follows: 1. Fixed assets must be purchased using the Purchase Order (PO) process. POs capture the data required by the fixed asset module of Finance Department. 2. The information included in the description in the commodity section of the PO is the information seen as the description on the Fixed Asset Property Report. It is important to use a description that will easily identify the asset. 3. 4. The expense must be coded to a 790xx account specially created for this purpose. Upon receipt of goods, a Fixed Asset Addition Form must be completed in full including a complete description, serial number, color, etc. It is important, for future reference and identification purposes. 5. A copy should be retained by the specific department to subsequently appear on the property report for the respective department. 6. Upon receipt of the Fixed Asset Addition Form, a permanent tag number is assigned, documented and forwarded to the Finance department.

Process of procuring the raw material usually consists of the following steps:
1.

Information gathering
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If the potential customer does not already have an established relationship with sales/ marketing functions of suppliers of needed products and services (P/S), it is necessary to search for suppliers who can satisfy the requirements.

2.

Supplier contact When one or more suitable suppliers have been identified, requests for quotation, requests for proposals, requests for information or requests for tender may be advertised, or direct contact may be made with the suppliers.

3.

Background review References for product/service quality are consulted, and any requirements for follow-up services including installation, maintenance, and warranty are investigated. Samples of the P/S being considered may be examined or trials undertaken.

4.

Negotiations Negotiations are undertaken, and price, availability, and customization possibilities are established. Delivery schedules are negotiated, and a contract to acquire the P/S is completed.

5.

Fulfillment Supplier preparation, expediting, shipment, delivery, and payment for the P/S are completed, based on contract terms. Installation and training may also be included.
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CHAPTER II RESEARCH METHODOLOGY Methodology is the key to any kind of research. It helps to maintain a track of what to do and not to do. It has various approaches to it. A good methodology works as a strong plan for collecting both primary and secondary data. This chapter details how the Project was executed. It also lists how the researcher did the planning and the tools used for testing of the Objectives.

OBJECTIVE To understand the working of the organization on SAP and gain insights on the process of acquiring fixed asset and material under the Purchases department of finance department at Valvoline Cummins ltd.

SUB OBJECTIVES To know the organizational formation and overview of functional activities of this organization; To learn the entire working of the organization on SAP platform;

 To assist the employees in their day to day working which will help in understanding the various steps involved in making purchases; To understand the process involved in procurement of Fixed Assets; To learn the working of different invoices entering in SAP

RESEARCH DESIGN The research design in this study was Descriptive Research. Descriptive Research refers to the type of research question, design, and data analysis that will be applied to a given topic. Descriptive statistics tell what is, while inferential statistics try to determine cause and effect. It can be either quantitative or qualitative. It can involve collections of quantitative information that can be tabulated along a continuum in numerical form, such as scores on a test or the number of times a person chooses to use a-certain feature of a multimedia program, or it can describe categories of information such as gender or patterns of interaction when using technology in a group situation. Descriptive research involves gathering data that describe events and then organizes, tabulates, depicts, and describes the data collection. It often uses visual aids such as graphs and charts to aid the reader in understanding the data distribution. Because the human mind cannot extract the full import of a large mass of raw data, descriptive statistics are very important in reducing the data to manageable form. When in-depth, narrative descriptions of small numbers of cases are involved,

the research uses description as a tool to organize data into patterns that emerge during analysis. Those patterns aid the mind in comprehending a qualitative study and its implications.

DATA SOURCES The researcher used the secondary data sources. The various internal data of Valvoline Cummins Ltd., including their Annual reports, Journals, Magazines, Website, etc were referred to during the advent of the research.

FURTHER SCOPE Since the area and time was limited, there is huge scope for improvement and more intensified research. These can be overcome in further studies that would be undertaken. Also, the study was

just limited to the procurement of direct purchases and fixed assets, it could also have incorporated other purchases and more functions under finance department. The area and jurisdiction can be increased to incorporate more firms and more information from around the country or the globe.

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CHAPTER II

INDUSTRY PROFILE
These are exciting times for the lube industry in India. Each one of the vast continent of 22 multinationals and a total of 80 big & small players are vying for a pie of Rs. 6,000 crores market. Worldwide established brands, some of them albeit new to India like shell, mobile, Caltex, Elf, Pennzoil, Valvoline are fighting it out with established Indian brands like Servo and others to established their foothold in the 6th largest lubricant market in the world. Compared to the average world consumption of 35 million tons per annum and Asia- pacific region consumption of 7.5 million tones, the Indian lube industry with annual demand of 1 million tones is just behind Japan and China in Asia having a demand growth rate of 4% compared to the world growth rate ranging between 0 to 2%. That is the lube industry in India today. Prior to 1992 the lube industry in India was controlled by the 4 major public sector oil companies namely Indian oil, HPC, BPC & IBP and a handful of private companies like Castrol, Gulf,
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Tidewater, and others. With the distribution and canalization of base oil import being controlled by the government of India, the PSU Oil companies controlled 90% of market share. The decimalization of the lube base oil imports in 1993 by the government of India followed by reduction of import duties on lube base oils from 85% to 30% and gradual scrapping of administered pricing observed the announcement of almost new lube venture every month during 1994. Most of the new entrants formed association with Indian companies both in the private and public sectors. All these new entrants are targeting for a very small share of market considering that even 1% market share means a sale of Rs. 55 crores. The Indian oil controlled 54% of the lube market out of total PSUs market share of more than 90% during 91-92. The Government policy of deregulation followed by entry of multinationals of JVCs had its effect on the market dominance of PSUs. This has been followed by sudden entry of lot many players, each one claiming to have some international collaboration and a foreign brand name. This had its initial impact and illusions in the market and the market

became more volatile. During these phases marketing channels of distribution had drifted from petrol stations to bazaar trade.

MAJOR COMPETITORS Below mentioned are the major competitors of Valvoline Cummins Limited: CASTROL

In 1991, CC Wakefield & Company set up its first overseas branch office in India and commenced operations as a trading unit. Today, Castrol India Limited is the second largest player in the Indian lubricant industry and is the market leader in the retail automotive lubricant segment. TOTAL

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It is the worlds fourth - largest publicly-traded integrated international oil and gas company, with operations in more than 130 countries spanning all aspects of the petroleum industry, including upstream operations (oil and gas exploration, development and production, LNG) and downstream operations (refining, marketing and the trading and shipping of crude oil petroleum products). SHELL

With nearly US$1 billion invested already, shell is the largest and most diversified international investor in Indias energy sector. GULF

With liberalization policies of government of India introduced in 1992, GULF OIL CORPORATION Limited was promoted in 1993 by Ashok Leyland Limited with its associated

companies and 50% equity participation from GULF OIL International along with Hinduja Consultancy Ltd. to become first such company in India within the industry.

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CHAPTER III

COMPANY PROFILE
Valvoline Cummins Limited (VCL) Valvoline Inc. founder Dr. John Ellis created the first motor oil and was awarded a design patent for petroleum, distilling and refining equipment in 1866 at USA. Since then with their offices, affiliates and distributors in every corner of the globe, they are never far from a complete line of unbeatable Valvoline products. Cummins Sales and Services (India) Ltd, was acquired in 1967, with the objective of providing products, packages, services and solutions for uptime of Cummins equipments. It has since been engaged in the business of sale of engines and providing after- market support to customers in
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India, Nepal and Bhutan. Over the years, the business has grown from strength to strength, and has successfully established itself as a Dependable after-sale service support arm of Cummins. In India, Valvoline Cummins Ltd, was established in the form of a Joint Venture between Ashland Inc., USA and Cummins Sales and Services (India) Ltd, a wholly owned subsidiary of Cummins India Ltd. In 2008, Cummins Sales and Services (India) Ltd. got merged into Cummins India Limited and thus, as of today the Company is a joint venture between Ashland Inc. USA and Cummins India Limited. Valvoline Cummins Limited is one of the Indias fastest growing lubricant marketers and producers of quality branded automotive/industrial products. Products include automotive lubricants, transmission fluids, gear oils, hydraulic lubricants, automotive filters, specialty products, greases and cooling system products. The Company also offers Car Brite car care products for automotive cleaning and maintenance.

The Company has come a long way since they have started out operations in India in 1998. Its a growing, dynamic company having base of 54 stock points delivering products and services to 500 distributors for bazaar trade and 2945 institutional customers. In bazaar trade they approximate that their products are available in more than 15,000 retail counters across India. Their vision is the guiding principal that they follow to deliver their quality commitment to their customer by producing and delivering quality products /services consistently through their state of the art blending and filling process and thereby making their lives simpler.

VALVOLINE VISION
To be known throughout the world for our premium products, services and people. We are committed to:
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 Building premium brands and businesses; Providing superior value to our consumers; Creating unique solutions that enable our business partners to succeed with us; Developing our people through a culture that values teamwork, excellence and personal growth; Their punchline is:Premiumness is our business, Winning is our passion VALVOLINE MISSION To be amongst the Top Three Brands in the Market VALVOLINE VALUES We value each person for the difference they make We compete to win We act with unyielding integrity and honesty We pursue change for the growth opportunities it brings We deliver results

VALVOLINE LOGO EVOLUTION

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VALVOLINE FACT SHEET YEAR OF ESTABLISHMENT NATURE OF BUSINESS NUMBER OF EMPLOYEES : 1995 : RETAILER : 101 to 500 employees (off and on roll)

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VALVOLINE PRODUCTS LUBRICANTS

Today's engine demands a lot from engine oil - thus you should know just the right partner for your engine. Valvoline has been developing and marketing high performance oils and services since 1886 - longer than any other engine oil company. The Valvoline commitment to quality and innovation is reflected from the fact that we offer a full line of premium conventional & synthetic engine oils, gear oils, greases, industrial oils and other automotive lubricants specially formulated for all round protection to your engine. All Valvoline oils are formulated with advanced additive technology and premium base oils for high performance and an enhanced engine life.

CAR CARE

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Valvolines commitment to high quality products is not confined to below the hood products only. In 1998, Valvoline acquired the Eagle One industry in USA. Eagle One, founded in 1978, is a leader in the development and manufacturing of premium automotive appearance products. Today, after over a quarter of a century, Eagle One remains the leading manufacturer of high-tech appearance products. These technically superior Car Care products require minimum effort for maximum results. Despite the simplicity of use, Eagle Ones advanced technology continues to ensure maximum color and depth of shine, while providing the ultimate in protection and durability for the vehicle. Car Brite was established in 1947 in North America. Since then, Car Brite has been innovating and manufacturing the most comprehensive line of professional Car Reconditioning products. Car Brite Industries was taken over by Valvoline in 2005. This heralded the coming together of two giants- Eagle One Car Retailing products and Car Brite Reconditioning products. The

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Customer now enjoys the choice of a large variety of retail (DIY Do It Yourself) and reconditioning (DIFM Do It for Me) products.

FILTERS

Valvoline America has been selling filters since last 20 years and is the established player in the US filters market. Valvoline is also selling filters in Australia. Valvolines internationally reputed range of filters has now been launched in India. Its filters are backed by the same Quality Guarantee stamp that backs the performance of its engine oils worldwide. Why Valvoline filters are better? Only an oil company can better understand the importance of pure filtered oil. Bonding metal and caps sustains high internal pressure. Better Filtration media for more strength and increased filtration efficiency. More number of pleats, more filtration area for extended life. Heavy gauge inner tube prevents filter collapse in adverse conditions.

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High pressure seaming can withstand more hydrostatic pressure. Metal end caps in spin or filters Inserts, instead of paper end ensures perfect sealing. Four color individual cartons as per international packaging. Quality guarantee stamp, same stamp that backs the performance of Valvoline engine oils.

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RACING Valvolines rich history in motor sports dates back more than 100 years and includes championships in Formula One, Indy Cars, NHRA drag racing, World Rally Championship, and NASCAR racing and at such premier events as the Indianapolis 500, Daytona 500, Le Mans and Bathurst 1000. The Valvoline Company made history by becoming the first consumer products company to own a NASCAR Winston Cup team. Rookie of the Year candidate Scott Riggs, Valvoline Americas racing driver, was voted "Most Popular Driver" in the NASCAR 2006 series. Valvoline not only sponsors Riggs' team, but the company is in its fourth year as 50-percent owner of the race team. The other half of the team is owned by MB2 Motorsports' Nelson Bowers. After years of success in NASCAR, Valvoline took the bold marketing step in 2001 of co-owning the team. As Riggs is fond of saying about his sponsor/owner, "They're in the car; they're on the car; and they own the car." Valvoline has taken its racing program to new heights, introducing different paint schemes and collectibles to race fans, serving as the official motor oil of Daytona International Speedway. Treading on Valvoline International racing lineage, Valvoline Cummins Ltd., tied up with JK Tyres for the 25 hour Dubai Karting Race held on the streets of Dubai on December 2004. The Team India studded with celebrity names like Narain Karthikeyan, Karun Chandhok (Team Captain), Armaan Ibrahim. Valvoline Cummins Ltd., also became the first Lubricant Company to make a soft launch of a racing team named, Team Valvoline. The Team comprised: (a) Amittrajit Ghosh National Racing Championships Runners Up 2004; (b) Deepak Chinappa Asian Zone and Indian National Karting Champion 2003-04; (c) Amanpreet Ahluwalia- Indian National Rally Championship IInd position 2005.

Excited about its success in the Formula Maruti category, Valvoline also sponsored Raymond Banajee (The reigning National Karting Champion) in the Formula LGB category. The Team Valvoline drivers showing true colours of Valvoline clinched both the Formula Maruti and
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Formula LGB titles in its debut outing itself. Team Valvoline was also nominated for MOTORSPORT TEAM OF THE YEAR award for the year 2005 NDTV Profit & Car & Bike Magazine along with the likes of Team MRF & Team JK Tyre. Team Valvoline again finished with two podiums this season (2006-07) with Ajay Kini winning the National Racing Rookie Championship and Raymond Banajee winning the LGB Hyundai championship.

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CHAPTER IV

SAP IMPLEMENTATION SAP BUSINESS INFORMATION WAREHOUSE IMPROVES

COMMUNICATION AND HELPS INCREASE PROFITS The Valvoline Company helps keep the world running smoothly. A division of Ashland Inc., Valvoline provides automotive lubricants, transmission fluids, gear oils, hydraulic lubricants, and more. The company has been successful in its business, taking a leading position as a marketer, distributor, and producer of quality branded automotive and industrial products and services. Valvoline also offers Eagle One car-care products for automotive cleaning and maintenance and operates Valvoline Instant Oil Change, the second largest quick-lube chain in the United States. The companys presence is worldwide, with 4,600 employees in more than 140 countries and 2002 sales of $1.2 billion.

CHALLENGE OF SUCCESS Competing effectively in todays marketplace was a challenge to Valvoline, especially when it came to managing, reporting, and disseminating consistent data to key people throughout the company. Valvoline realized that not only did it need a better way for a wide range of employees to access information, but it also wanted a global reporting solution based on a single source of information operating in a user-friendly environment. Thats when Valvoline chose SAP Business Information Warehouse (SAP BW).

CONSISTENT, ACCESSIBLE INFORMATION Like many global corporations, Valvoline had to overcome the difficulty of dealing with separate business information silos where data was spread across a variety of groups without the benefit of

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integration and reconciliation. In the past, we had sales information in a legacy system and financial information in SAP R/3, says Larry Detjen, Senior Vice President and Valvoline

Project Sponsor. We had a lot of information in different places that people couldnt easily get, which meant they couldnt efficiently manage their business. We had sales representatives looking at one thing and people from finance looking at another. Sometimes the two wouldnt always add up. When there were discrepancies, a lot of people called in, trying to find someone more knowledgeable who could get the information and then have it sent back to them. Clearly, it wasnt an efficient way of getting information. Theres no doubt that we are more efficient. Theres more timely information available, better coordination and communication, elimination of error-prone processes, and a reduced amount of paper-based communications. We now have a better business process and are looking at expanding SAP BW to other parts of our organization. Kelli Johnson, Manager of Business Information, Valvoline

CHOOSING THE RIGHT SOLUTION Valvoline saw SAP BW as a natural extension of the SAP business solution they were in the process of implementing. We were using SAP R/3 for financial information and legacy systems for all other reporting, like sales, says Kelli Johnson, manager of business information. The information wasnt consistent. We spent a lot of time and resources reconciling the data and manipulating it using spreadsheets. SAP BW was the obvious choice because of the built-in compatibility with SAP R/3. A priority for Valvoline included having a scalable and integrated solution. We knew the direction SAP was taking, which was to deliver reports through SAP BW and we wanted to provide reliable reports that could help us manage the business more effectively, says Mike McKillip, IT director at Valvoline. Our goals were to provide a tool that provided consistent information for all users, was relatively easy for end users to operate, could automatically update data from primary sources, and could be expanded to include more information.
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 SAP BW IN ACTION SAP BW has given Valvoline employees a tool that helps them work more effectively. With better information at their finger tips, they can now make decisions that improve the bottom line

and measure performance. Every sales manager has standard reports set up to measure sales volume for their customers with drill down capabilities to view specific SKUs, product categories, marketing program spend, and so forth, says Johnson. They no longer have to wait for data, manually manipulate the information into the format desired, or reconcile differences between systems. With SAP BW, they can view this information daily to track sales progress as compared with prior period and plan. SAP BW provides timely, easily accessible, consistent information. The depth of information available and the functionality provided through the business warehouse allowed us to be better equipped to effectively manage every aspect of our business. - Brad Paxton, Project Leader, Valvoline Sales people are looking at the same information that the plant people are looking at, which is the same information that headquarters people are looking at, adds Detjen. Its one source of information. They can track orders and know exactly where they are in the process. This not only benefits our people, but our customers as well. With more accurate information, we can tell them where their order is at any time or let them know if there are any credit issues. We have a snapshot view into their account thats current all the time, so its easier to track issues through the chain. Before, customers had to call three or four people to get information; now they dont have to do that.

BENEFITS AT MANY LEVELS

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Valvoline used SAP BW in ways that show obvious positive results. The depth of information available and the functionality provided through the business warehouse allowed us to be better equipped to effectively manage every aspect of our business, says Brad Paxton, Valvoline project leader.

Valvoline can cite specific dollars and cents benefits. SAP BW reporting has provided us with improved accessibility to real-time material and customer-specific data for decision making, says Johnson. For example, accounts receivable achieved an aggressive current on receivables goal, complemented by the lowest days sales outstanding in four years. In the past, accounts

receivable information came down at the end of the month. We were reactive. SAP BW changed that. Today, we are proactive. We can see accounts receivable information daily and work on accounts that may look like theyre in trouble .We have also improved profitability in our chemical line by eliminating poorly performing and unprofitable SKUs. With SAP BW, were able to track each products performance and see which of them are doing well and which arent producing adequate revenue. Another advantage, adds Detjen, is that prior to SAP, we had a number of legacy systems that became obsolete over time. For a medium-sized company like ours, it was a huge burden to rewrite those programs every five or six years, along with keeping up with the latest technology. Now, with SAP, we get up grades on a regular basis and thats a big advantage for our corporation.

NEXT STEPS Currently, 570 Valvoline employees from sales, finance, accounting, operations, customer service, and logistics use the SAP solution. We get a lot of positive feedback because we are so far ahead of where we used to be, says Detjen. We also get a lot of feedback about where we could go with this. Our people see that we have a very robust tool. Theres no doubt that we are more efficient, notes Johnson.
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Theres more timely information available, better coordination and communication, elimination of error-prone processes, and a reduced amount of paper-based communications. We now have a better business process and are looking at expanding SAP BW to other parts of our organization. We are also looking at my SAP Business Intelligence with its strategic enterprise management capabilities.

CHAPTER V
The project mainly highlights the process of procurement of Materials and Fixed Assets by the organization.

PROCESS OF PROCUREMENT OF FIXED ASSETS

1.

Preparation Of Capital Budget Capital Expenditure Requisition Vendor Evaluation, Selection & Creation Of Asset Preparation Of Purchase Order Receipt Of Goods & Capitalization Of Asset Insurance Of Fixed Assets Depreciation Calculation Disposal Of Fixed Assets Inter Unit Transfer Of Assets

2. 3. 4. 5. 6. 7. 8. 9.

PREPARATION OF CAPITAL BUDGET

The first and the foremost step that is common to both the material purchase as well as fixed asset purchase is that of Budgeting. (a) First the Head of department identifies the requirement for fixed assets in his/her respective department and consolidates the same.
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(b)

The respective financial heads draft a CAPEX (Capital Expenditure) Budget according to the consolidation done earlier.

(c)

The Finance consolidates the budget estimates received from the various departments and makes a draft budget for the year.

(d)

The consolidated draft budgets are then forwarded to the MD for approval. Once the approval is received, it is communicated to the various departmental heads and monitored by the finance department. The approved budget item category wise is maintained at a broader level of assets by creating internal order AUC in SAP to establish automated budget control of CAPEX class wise.

(e)

CAPITAL EXPENDITURE REQUISITION

After the identification and approval of the budget, the appropriate requisition for concerned expenditure is forwarded. (a) First the Capital requisition form (Form No. 1.01) is duly filled by the User Department mentioning the item details and the consolidated budget. (b) The duly filled in Capital Requisition form is sent to the Finance Department after it is approved by the concerned departmental head. (c) Once the requisition form is received, Finance department determines whether the request (i.e. the item to be procured) is to be capitalized or expensed off. (d) If the items needs to be capitalized then whether the same is within the budget assigned for the year or not. But if the requisite expenditure mentioned on the CAPEX form exceeds the assigned budget as per DOP , then it is sent for approval (e) Finance creates an asset class which is the basis for the preparation of P.O. Details like asset class, depreciation rate and start date are filled in by the Finance in the capital requisition form and propelled to master date cell for creation of asset number.

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(f)

The fixed asset register and/or master data file are periodically reviewed by management for accuracy and ongoing pertinence and are reconciled to the corresponding general ledger accounts. All reconciling items are identified and addressed in a timely manner.

(g)

At the time of creation of the code quantity, rate of asset is entered. Both soft and hard copy of capital request form is kept by Master data cell for records after it is duly approved by the Finance head.

(h)

The asset number so created is intimated to the user, Procurement department and Finance.

(i)

Finally the Purchase Order is generated by the Purchase Department with the assignment of Internal Order and AUC in Purchase Order on the approval of Finance Head.

VENDOR EVALUATION, SELECTION AND CREATION OF ASSET

Vendor Evaluation is a onetime process and is done by the User Department. (a) In case the vendor is new, Vendor Creation and evaluation form is provided and if the supplier is more than one year old then only Vendor Evaluation form is provided. (b) Once the Vendor Evaluation is done then filled in Vendor Evaluation form is forwarded to the Purchase Manager for perusal. (c) (d) (e) Then the Senior Manager Purchase approves the Vendor Creation and Evaluation form. Both the forms are submitted to Master Data cell for creation of supplier code. In case the supplier is not new and is not more than one year old then straight away it is proceeded to create the purchase order. (f) (g) After all this, Master Data Cell is intimated to the User and Purchase Departments. The Capital Expenditure form and quotations from various vendors are received by the Purchase Department. (h) The next step is to compare the quotations received by the Purchase Department.

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(i)

On the basis of the certain criteria like cost, services, quality etc. the appropriate Vendor is selected for further processing.

PREPARATION OF PURCHASE ORDER

Once the Vendor evaluation is done, a suitable vendor is selected and the comparative analysis is done, then; (a) Purchase Order is prepared by the Purchase Department on the basis of the information in the Capital Expenditure form with assignment of Internal Order and AUC after approval of Finance Head.

(b) (c)

Purchase order is then sent to the vendor/user department. The User Department takes printout of the purchase order and get it signed from Purchase Manager and send a signed hard copy to the vendor.

(d)

And then finally order acceptance is received by the Purchase Department from the vendor.

To create new PO, Transaction code - ME21N is used. Below are the screenshots for better understanding.

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AFTER THIS EXCERSIS WE NEED TO SAVE THE DOCUMENT.

RECEIPT OF GOODS AND CAPITALISATION OF ASSET

Below mentioned are the steps performed once the assets are received at the desired location: (a) (b) First the asset received is checked with the Purchase Order. If the details of the asset received does not match with those mentioned on the Purchase Order, the Vendor is intimated for subsequent resolution. If match then it is processed further. (c) It is also made sure that whether the asset meets the quality requirements or not. If not then the asset is directly returned to the supplier or else processed further. (d) (e) Further the asset and the invoice are transferred to the Stores Department. Store Incharge of the receiving location ensures that the item received agrees to the items for which the order was raised. If not then the invoice is returned to the supplier. If agreed, then a Goods Receipt Note (GRN) is made. (f) (g) Fixed asset register is updated in SAP as AUC. The AUC is transferred to actual assets. If the asset is Plant and Machinery, then in that case Installation report and certification is given to the supplier. (h) Asset gets capitalized after doing SAP entry through MIGO and is capitalized from the date when the same was actually received and is depreciated accordingly. (i) Monthly review of Open GRN and AUC report to ensure that all acquisition against Purchase Order is recorded in appropriate period. (j) Vendor account gets credited and payment is made to the supplier as per the pre defined norms. (k) And then the fixed asset tagged with the Asset Code generated by the SAP while issuing to any employee in order to safeguard the asset.

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(l)

Access to fixed asset is restricted to authorized personnel.

(m) Value of total fixed asset is taken by the Finance annually for insurance purpose. 5% of additions during the year are covered by this policy. If required additional policy may be taken. (n)
(o)

Maintenance activity is taken by the IT and Admin Department as and when required. Physical verification of fixed assets is performed by independent party appointed by the management on periodic (yearly) basis and reconciled to the fixed asset ledger by the authorized person in finance department.

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INSURANCE OF FIXED ASSETS

After the asset has been acquired, it has to be insured. Under this step fixed assets of all COD, Regional Office and Head Office are considered.
(a)

Details like Asset Name, Asset Number, Asset Value and Date of Purchase are provided to the insurance company.

(b)
(c)

In case of any theft or damage, Legal Department starts the claiming procedure. Also a person is deputed by the insurance company at the site to inspect and obtain the documents related to them.

(d)
(e)

Then the claim is settled with the adjustment of depreciated value of the respective asset. In the end the Finance Executive adjusts the value of asset in the books for records.

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DEPRECIATION CALCULATION
(a)

Asset code is created before issuing the Purchase Order and after receipt of material based on capital requisition form, along with relevant asset class/depreciation rate is input in the system.

(b)

Unit Code, Fiscal year and posting period are the basic input in depreciation program before execution.

(c)

Depreciation program is run in SAP on monthly basis on the basis of the already configured system and proper classification.

(d)

Any changes in Asset category depreciation rates or any deviation from accounting policy in Master Data is to be approved by the Financial Controller.

(e) (f)

Depreciation is calculated from date of capitalization of fixed asset. Reviewing of depreciation charged and fixed asset account is performed on monthly basis, and any error or a mismatch is evaluated and hence corrected.

(g)

The Expense G/L account is reviewed on monthly basis to ensure that no capitalized item is expensed off.

(h)

On execution of SAP program, depreciation is calculated and posted in respective asset accounts automatically.

ASSET DISPOSAL
(a) (b) (c) User Department initiates the process for disposal of fixed assets. User Department forwards the approved Asset disposal request as per the DOP. Process for inviting the quotation starts subsequently with the approval of the departmental head.

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(d)

Quotations are invited both from external customers and internal employees and the customer is selected after evaluation of the quotations received.

(e)

Performa invoice is generated and given to user department. Also a copy of invoice is handed over to the customer for 100% payment. The Company has a process of taking 100% advance from customer before handing over the asset.

(f)

Once the asset is sold to the selected customer, accounting entry is passed by the Finance Executive giving effect to the asset disposal and accordingly, gain/loss on disposal of the asset is recorded.

(g)

The fixed asset register and/or master file data are periodically reviewed by the management for accuracy and ongoing pertinence and are reconciled with the Physical Verification report generated on half -yearly basis. Any reconciling items identified are addressed in a timely manner.

INTER UNIT TRANSFER OF ASSETS (a) (b) (c) The process is initiated by the Transferor Department. Request for transfer of assets is approved by the Head of the User Department. Asset Transfer Form (ATF) contains the following details: Cost of Capitalization, Accumulated Depreciation and Written down value. (d) (e) The asset is transferred to the respective transferee or the receiving department. Acknowledgement of goods receipt is sent to the Finance Department by the respective Receiving Department. (f) And then finally Finance performs a transfer out function in books. Transfer in is a manual process and it is done by the Senior Finance Executive. He gives the above requisite details at the time of transfer out.

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CHAPTER VI PROCESS OF PROCUREMENT OF DIRECT PURCHASES

1. 2. 3. 4. 5. 6. 7. 8. Preparation Of Budget Purchase Requisition Vendor Evaluation And Selection Preparation Of Purchase Voucher Receipt Of Goods GRN Made Invoice Sent To Gurgaon Office Need To Enter Invoice

PREPARATION OF BUDGET
(a) First the Head of department identifies the requirement for the raw material in the production of his/her respective department based on the forecasted demand/ orders in hand and consolidates the same. (b) The Finance consolidates the budget estimates received from the various Production Heads and makes a draft budget for the year. (c) (d) The consolidated draft budgets are then forwarded to the MD for approval. Once the approval is received, it is communicated to the concerned heads and monitored by the finance department.

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PURCHASE REQUISITION
After the identification and approval of the budget, the appropriate requisition for concerned purchase is forwarded. (a) First the Purchase requisition form is filled by the concerned user department based on the forecasted demand for the month and reviewing the inventory of raw material in hand. (b) Purchase requisition form filled up by the concerned user department is also approved by the department head, based on which the same is then forwarded to the Purchase Department mentioning the description of the material required, volume required and the expected delivery date, so as to ensure that the material is received within the expected lead time.

VENDOR EVALUATION AND SELECTION

Vendor Evaluation is a onetime process and is done by the User Department. (a) In case the supplier is new, Vendor Creation and evaluation form is provided and if the supplier is more than one year old then only Vendor Evaluation form is provided. (b) Once the Vendor Evaluation is done then filled in Vendor Evaluation form is forwarded to the Purchase Manager for perusal. (c) Then the Senior Manager Purchase approves the Vendor Creation and Evaluation form. (d) Both the forms are submitted to Master Data cell for creation of supplier code. (e) In case the supplier is not new and is not more than one year old then straight away it is proceeded to create the purchase order.

41

(f) After all this, Master Data Cell is intimated to the User, Supply Chain and Purchase Departments. (g) The Purchase Requisition form and the quotations from various vendors are received by the Purchase Department. (h) The next step is to compare the quotations received by the Purchase Department.

(i) On the basis of the certain criteria like cost, services, quality, past relations etc. the appropriate Vendor is selected for further processing. (j) And so a Direct Material Rate Approval Form is generated that includes details about the selected vendor, quotation made by him, the material required etc.

PREPARATION OF PURCHASE ORDER

Once the Vendor is evaluated and suitable selection is made, purchase order is raised by the purchase department. (a) Purchase Order is prepared by the Purchase Department on the basis of the quotations received from the vendor. (b) (c) Purchase order is then sent to the vendor and the respective production department. Or at times it so happens that the Purchase Order is not directly sent to the vendor. Rather first the respective Production Department takes printout of the purchase order provided to it and gets it signed from Purchase Manager and then sends a signed hard copy to the vendor. (d) And then finally order acceptance is received by the Purchase Department from the vendor.

42

43

44

AFTER THIS EXCERSIS WE NEED TO SAVE THE DOCUMENT.

RECEIPT OF GOODS
Material is received as per the outline description given in the Purchase Order prepared earlier. (a) (b) First the material received is checked with the Purchase Order. If the details of the material received does not match with those mentioned on the Purchase Order, the Vendor is intimated for subsequent resolution. If match then it is processed further. (c) It is also made sure that whether the material meets the quality requirements or not. If not then the asset is directly returned to the supplier or else processed further. (d) Also it is made sure that the requisite quantity has been supplied.

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(e)

Further the material and the purchase order are transferred to the Manufacturing House, ULTRA PLUS LUBES PVT. LTD.

(f)

Here it is made sure that the Purchase order and the material received tallies with the order issued. If not then the material is not accepted.

GRN MADE
Here at ULTRA LUBES PVT. LTD. after receipt of the approved invoice, the following steps are undertaken. (a) A GRN is made for each invoice received by the warehouse. (b) The assigned person at the warehouse makes the physical GRN and also enters in SAP for further processing. (c) GRN of the material is made by doing SAP entry through MIGO.
(d) Inventory of respective material gets debited and the Goods Received/Invoice Received

(GR/IR) account gets credited at the time of MIGO as mentioned in point (c) above.

(e) Monthly review of Open GRN report is done to ensure that all acquisition against Purchase Order is recorded in appropriate period. (f) Physical verification of the material is also done periodically by the appointed authorities.

46

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INVOICE SENT TO GURGAON OFFICE

Once the above mentioned process gets over, the vendor invoice together with the copy of the GRN is sent to the Head Office of Valvoline Cummins Ltd. situated in Gurgaon, Haryana for further processing of vendor invoice and for making payment to the vendor as the agreed credit period.

NEED TO ENTER INVOICE

On receipt of Invoice at the Gurgaon office by the Finance Department, there is a need to enter invoice in SAP by passing the necessary entry. (a) The Transaction Code under SAP defined for the purpose of entering the incoming invoice is MIRO.

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(b) At the time of MIRO - Goods Received/Invoice Received account gets debited and the vendor account gets credited.

(c) Thus the net effect of the entries passed is Inventory of respective material is debited and Vendor account is credited. (d) A printout of the net effect of the entry as shown in SAP is taken and attached to the physical invoice. (e) This whole document is then duly signed by the Accounts Executive and is then forwarded to Senior Manager Accounts Payable for his approval.

MIRO PROCESS (TO BOOK THE INVOICE ONCE THE GRN IS DONE)

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CHAPTER VII

PAYMENTS
As far as the Payments made against the various kinds of expenditures undertaken by Valvoline Cummins Ltd. is concerned, there are certain policies that are being followed. One is expected to work under these strict norms. In the following part of my project I have mentioned a few policies concerning the payments made by Valvoline Cummins Ltd. and have also listed the procedures followed in carrying out the different types of payments.

HANDLING CASH TRANSACTIONS

PURPOSE
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This procedure is set out to ensure proper controlling and accounting of cash, being the most liquid asset of the company.

SCOPE
This procedure is applicable to all locations where cash receipts or payments are transacted by accounting person.

PROCEDURE
(a) Cash payments should be avoided as far as possible. However, cash may be paid by the accounts function to: (i) An employee as Imprest to carry out business expenses provided it is approved in accordance with the procedure for staff advances; or (ii) As a petty expense to a vendor who does not have an established vendor account in the company.

(b)

No payments can be made in cash in excess of Rs. 20,000 in one transaction unless it is specifically approved in writing by CFO to be paid in cash.

(c)

Approving authority for cash payments request is immediate supervisor. All cash payments must be supported with reasonable documents like approved request.

(d) (e)

Approval of Sr. Manager Finance Controller is required before making any cash payment. All cash payments are to be recorded by obtaining the signatures of recipient on the Cash Payment vouchers.

(f)

Cashier shall be responsible to enter the cash payment voucher in the SAP and maintaining the track of SAP voucher number on physical voucher.

(g) (h)

All Cash Payment vouchers are to be retained by the Accounts Executive handling cash. Accounts Executive shall reconcile the physical cash with books of account on weekly basis.
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(i)

In order to carry out this exercise, the concerned accounts person shall print the cash day book from SAP and sign on it after physical verification.

(j)

Sr. Manager-Finance shall review such physical verification sheet on monthly basis and any discrepancy identified must be resolved.

(k)

The cash shall be physically verified by Sr. Manager-Finance on monthly basis and his signatures obtained on the print out of the cash day book taken at the end of each month.

(l)

Cash shall be kept in locker with dual keys, one set of keys with the Accounts Executive handling cash and other with the Finance Controller.

(m) Cash in hand should not exceeds INR 1, 00,000/- (Rupees one Lac only) at Head office. (n) (o) Cash in hand should be insured for fire, burglary & theft on regular basis. Internal auditor shall be granted access to conduct a surprise check of physical cash count at any point of time. (p) All cash payment vouchers are to be prepared before payment of the cash and approved by Payable Manager, based thereon cashier is responsible for entering voucher in the SAP.

HANDLING BANK PAYMENTS

PURPOSE
Purpose of this document is to guide the Finance team to properly account for and handle payments through bank.

SCOPE
This document spells policies and procedures for payment of dues to vendors / others and will be applicable to all bank payments.

POLICY

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Valvoline Cummins Ltd. has a policy that all the payments through bank to vendors or staff should be properly authorized and accounted for.

PROCEDURE FOR HANDLING PAYMENTS THROUGH BANK

1. Payments to the vendor through bank can be made via: (a) Cheque (b) DD / Pay Order (c) RTGS or Bank Transfer (d) Import payment through wire transfer

CHEQUE 1. Pre-printed cheque stationery shall be received from bank on request basis and same will be entered in SAP 2. Finance Executive is responsible for the handling and preparation of cheques.

3.

Pre-printed cheque stationary shall be kept in locker with dual keys, one set of keys with the Finance Executive and other with the Finance Controller.

4.

Cheque will be prepared only on the basis of approved payment request by the Sr. Manager Accounts or Finance.

5. 6.

On issuing cheque the payment gets booked in Banks sub-ledger in SAP. Clearing of the payments from sub-ledger and transferring them in main bank ledger in SAP shall be done on daily basis after validating the same with bank statement.

7.

If physical cheque is void then it has to be cancelled in SAP as well.

DD / PAY ORDER 1. Drafts shall be issued for specific request of payment through DD.
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2.

For draft or pay order request shall be sent to the bank after proper authorization of payment request by the Manager Payable.

3.

In case of cancellation of draft request shall be sent to the bank and same is reversed in SAP as well.

4.

A photocopy of all DD/ Pay order should be kept for record purposes.

RTGS OR BANK TRANSFER 1. Based on the approved payment request by Manager Payable, file will be uploaded on the bank website by the Finance executive. 2. 3. Payment will be approved by the authorized signatory at the Bank website. Payment entry will be booked in the SAP by the Finance Executive.

IMPORT PAYMENT THROUGH WIRE TRANSFER 1. Based on the terms and conditions with the vendor payment is processed through either of the channel like Payment on Collection, Clean Credit or Letter of Credit. 2. In case of Payment on Collection channel, Manager Finance sends the authorized acceptance to bank on receipt of documents arrival notice by the banks and further bank remit money to the vendor through wire transfer. 3. In case of clean credit or Letter of Credit channel, Asst. Manager Finance sends authorized advice of remittances to the bank for payment to the vendor. 4. All import payments made through either channel will be entered in the SAP by the Asst. Manager Finance.

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BANK RECONCILIATION
PURPOSE To ensure bank account balances are reconciled to the accounting records accurately and in a timely manner and that proper segregation of duties exists within the finance department.

SCOPE This document describes the policy and procedure for the reconciliation of bank accounts for all bank accounts operated by Valvoline Cummins Ltd.

POLICY It is the policy of the Company to perform a monthly bank reconciliation agreeing to the balance as per the bank to the balance as per the general ledger. In accordance with proper segregation of duties, a person who has the ability to process receipt/ issue of cheques or void cheques will not reconcile the bank accounts. The Finance Controller will ensure that all bank accounts are reconciled, according to this policy.

PROCEDURE 1. All active bank accounts must be reconciled accurately and timely. The reconciliation should be prepared and reviewed by the 10th calendar day of the subsequent month. 2. Bank statements will be downloaded from the internet on the 2nd working day of the subsequent month. 3. The Assistant Manager Finance prepares a reconciliation of the bank statements to the General Ledger and submits it to the Finance Controller for review. 4. The Finance Controller performs a review of the supporting documentation and approves the reconciliation. 5. A stop payment will be issued on Cheques which are outstanding for more than six months.
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6.

Void Cheque and other supporting documentation must be retained in the files for record and audit.

BANK PAYMENT VOUCHERS

(a) (b)
(c)

All Bank Payment Requests shall be prepared by Finance Executive/Assistant Manager. All such requests shall be approved by respective Reporting Manager i.e., Payable Manager Same shall be entered into the SAP by Finance Executive/ Assistant Manager.

PREPAYMENT POLICY
PURPOSE
This policy applies to all prepayments from VCL.

SCOPE
This document is a statement of the Company's policy about prepayments.

POLICY & PROCEDURE

1. Prepayments should be minimized. Prepayments are a form of investments and exposure the Company has to the credit risks of the supplier. 2. A discount equal to the Company's cost of funds should be obtained for all prepayments if the prepayment cannot be avoided. 3. All the prepayments have to be authorized as per DOP. 4. Sr. Manager Payable shall review the list of prepayments at the end of each quarter. 5. No prepayment shall be made in case of previous advance is pending.

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DEFFERED AND PROGRESS PAYMENTS

PURPOSE This document is a statement of the Company's policy with regard to deferred payments and progress payments. Purchases made with deferred payments are a form of borrowing, the cost of which must be compared with the Company's cost of funds. Progress payments are a form of investment, which also must be compared with the Company's cost of funds. They also involve credit risk, which must be evaluated carefully. CFO/FC has the responsibility to coordinate borrowing and investing activity.

SCOPE This policy applies to all purchases that have progressive (advance) or deferred payments.

POLICY & PROCEDURE

1. Payments for purchases which may be deferred for periods greater than 180 days will be compared with payments by normal terms and the Company's cost of funds.

2. Vendors offering deferred payment terms will be requested to quote a price for payment within normal terms. 3. 4. 5. 6. This price will be adjusted for the Company's cost of funds over the deferral period. The lower of the deferred terms price and the adjusted normal terms price is selected. CFO/FC of Valvoline Cummins Ltd. approves all deferred terms purchases. When a contract requiring progress payments is being considered, a credit analysis must be made on the supplying contractor to make a determination of whether the contractor is financially sound enough to perform its obligations.

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7.

Specific payment arrangements will be entered into after the contract is executed. Payments should be made only as specific agreed objectives are achieved.

8.

CFO/FC shall evaluate deferred term offers and shall also determine creditworthiness of suppliers and negotiates most attractive progress payment schedule as a part of the purchase contract negotiations.

9.

CFO/FC in evaluating deferred payments and progress payments is the final authority for approval of deferred payments.

CHAPTER VIII

FINDINGS, CONCLUSION & RECOMMENDATIONS

FINDINGS
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1.

Approvals are seeked at almost every step of the various processes carried out in the organization.

2.

Record of each and every transaction is maintained for further perusal or future references.

3.

Resistance is shown by the employees in providing information in finance department particularly.

4.

SAP FICO module provides an advance accounting package and also provides guidelines in a user friendly manner.

5.

Inter-company transactions are maintained through SAP without many difficulties.

6.

Fund is used to manage SAP in lucid manner.

7.

Career with Valvoline Cummins Limited, one of the fastest growing lubricant companies in India, puts you in a challenging and empowering work environment with a high value driven work ethic, giving you the opportunity to be part of an exciting fast paced global leader.

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CONCLUSION
Purchase department has a key role so for as the procurement of proper materials, machinery, equipment and supplies of stores used in manufacture of a product is concerned. The importance of purchase department may be summarized as under: (1) products. (2) The amount of profit earned in a factory depends upon the efficiency of purchasing department. (3) (4) (5) It checks unnecessary and excessive investment of capitals on purchase of materials. It prepares plans and policies relating to scheduling of production and marketing. It serves as an information centre as regards price, source of supply, specification and mode of delivery. (6) It ensures continuous availability of requisite quality materials to avoid disruption in production. Purchasing is a primary function and it directly influences the total cost of the

Valvoline has been in India for just over a decade but it has undoubtedly established itself as the fast growing lubricant brand in the market.

The lubes industry has huge potential in India with increasing demand from the industry establishments and the automobiles sector showing green signals in the times of recession also. The industry has a large number of competitors, thus providing quality goods at competitive prices. Carving a niche for oneself in this competitive market is not easy but this 11 years journey of Valvoline Cummins Ltd in India has been an upswing ride. Since Valvoline is a comparatively new company, its increasing market share shows that it has immense growth
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potential in India. With these few recommendations, I hope the firm will gain and reach new levels of success.

They are very innovative and they change and adapt very fast as per market requirement. This is the key reason for the success of Valvoline in India.

I wish the company, all the very best for its future endeavors.

RECOMMENDATIONS
1. The user managing the asset should update the asset record in SAP on daily basis.

2.

Due concentration must be given while making entries as any wrong entry made may result into serious problems.

3.

The budgets formulated in the very beginning must give due consideration to the past requirements of the specific department.

4.

The budgets formulated must be different for different departments specific to the requirements of every department.

5.

Proper evaluation must be done while selecting a vendor.

6.

Company should hire employees with good computer knowledge as minimum training would be required which would help in cost cutting.
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7.

The user must be trained from time to time as SAP system is very vast.

8.

The company using SAP must have a strong intranetworking system and there should be back up of the network connectivity to prevent malfunctioning of system.

LIMITATIONS
In every research there are certain limitations, and this research is not an exception, so in the whole process of research the situation in which the research was conducted can affect the research to a small extent. The research conducted came across certain restrictions and limitations, so some of these limitations can be overlooked for the successful conduction of the research. Some of the limitations that can be over looked are:-

TIME CONSTRAINT The success of this study and analysis depends upon the amount of time dedicated to the work. Since the time available for studying various dealers and area-wise analysis is limited; the entire project may or may not be exactly suitable to the organization.

LIMITED ACCESS TO INFORMATION One of the major problems faced was there was limited information available for use as the various data relating the financial aspect of the firm is kept as confidential and not disclosed.

CONNECTIVITY

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Network connectivity is required. The SAP system breaks down in case of malfunctioning of network.

BIASNESS OF EMPLOYEES The findings of the study are solely based on the information provided by the employees of the organisation.

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BIBLIOGRAPHY

BOOKS:
1. Naresh Malhotra, Marketing Research, Sixth edition, 2007, SAGE Publications Ltd. 2. Dr. S.N.Maheshwari, Fundamentals of Accounting for CPT, 2010. 3. Khan & Jain, Financial Management, Tata McGraw Hill. 4. Steven Bragg, Inventory Best Practices, Second Edition 5. Steven Bragg, Fixed Asset Accounting

WEBSITES:
1. http://www.valvolinecumminsltd.net/ 2. http://www.valvoline.com/ 3. http://www.cumminsindia.com/ 4. http://www.answers.com/topic/direct-purchase.html 5. http://finance.toolbox.com/wiki/index.php/Direct_materials_purchasing.html 6. http://finance.toolbox.com/wiki/index.php/Direct_materials_purchasing.html 7. http://www.aect.org/edtech/ed1/41/41-01.html

8. http://hull.aug.edu/thoughtLeadership/research/Amos-Holmes-Strutton-IJA-2008.pdf
9. http://www.icra.in/ 10. http://www.marketingresearch.com/

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JOURNALS: 1. The Journal of Fixed Asset, Fixed asset Management, By Dr. Lepani

Waqatakirewa http://www.pacifichealthvoices.org/files/Fixed%20asset%20management.pdf.html
2.

The Journal of Direct Purchases, "A Short Synopsis of the Direct Market, By

Beerbohm, Robert L.

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