A Summer Training Report Of

Oil & Natural Gas Corporation Ltd. (ONGC)

Submitted To

SHREE P.M PATEL INSTITUTE OF BUSINESS ADMINISTRATION

Affiliated To

SARDAR PATEL UNIVERSITY

In Partial fulfillment of the Requirement for the degree of.

BACHELOR OF BUSINESS ADMINISTRATION

By

Amit .K. Gandhi

S. Y. B.B.A Under the guidance of.

Faculty Guide: Sandeep Chandra

Company Guide: Mr. R.P.Kuldeep (F & A) Mr. Manish Chanchal (H.R-ER)

PREFACE
In todays competitive world of business the value of Management is enhancing day by day. Management play important role. Without management organization cant run successfully. As a part of BBA curriculum and being a management student Industrial visit is the part of and parsed of our studies. This is the era of company value and remarkable sale for increasing development of industry units business administration emerges financial as well as distributive selection. I had joined BBA course I am a student of BBA of SHREE P.M PATEL INSTITUTE OF BUSINESS ADMINISTRATION, ANAND the industry which by visited by me ONGC ANKLESHWAR. I had observed the function of management finance in an industry. This helped me to understand my theoretical part more deeply. I have tried to insert the correct and the best informations as available me and at least. I had done my best to present this as effectively as I could but if any mistake in this report please forgives me. Well, it was very nice experience during the training in ONGC. I analyze that I am not only the trainee; there are lot of people who take training in ONGC. So it is challenging job to differentiate from others.

ACKNOWLEDGEMENT The success of any task lies upon the efforts made by a person but it cannot be achieved without co-operation of others. So I would like to thank Shree P.M.Patel Institute Of Business Administration, Anand, Gujarat. For giving me the opportunity of doing General Training and Project work as a special subject and provides such a wonderful platform to represent ourselves as BBA students. We are grateful to ONGC for letting us to do this project. We express our gratitude to Mr. R.P.kuldeep Manager (Finance & Accounts), and also Mr. Manish Chanchal (H.RER). We are really thankful to Employees of ONGC who have been guiding us in this path step by step and have made our path really simple to get through. As an institute side, it is my grate pleasure to have this opportunity to express my regrets and sense of gratitude to my guide Mr. R.P.kuldeep (Finance & Accounts) and also Mr. Manish Chanchal (H.R-ER). It is due to his encouragement, valuable guidance and direction for this project work, which would not be finished without their help. I am thankful to our principle and project incharge who give us opportunity to done this work.

AMIT GANDHI S.Y. B.B.A

O.N.G.C OIL AND NATURAL GAS CORPORATION LTD.

TYPE: - PSU Founded: - 1956 Headquarters: - Dehradun, India Key people: - Radhey S Sharma, Chairman and MD Industry: - Petroleum and Gas Employees: - 34,000 Website: - http://www.ongcindia.com

Table of Contents

INTRODUCTION OF COMPANY Oil and Natural Gas Corporation Limited (ONGC India) is considered Asia's best Oil & Gas Company. It ranks as the second biggest E&P company (and first in terms of profits), as per the Platts Energy Business Technology (EBT) Survey 2004. It ranks 24th among Global Energy Companies by Market Capitalization in PFC Energy 50 (December 2004). ONGC was ranked 17th until March 2004, before the shares prices dropped marginally for external reasons. Oil and Natural Gas Corporation Limited was first set up as a commission on August 14, 1956. The Company later on became corporate on Feb, 1994. The company now has become into Exploration and Production Company of the highest quality. ONGC was the first corporate to register a five digit profit figure in the year 2002-03. It contributes to economy of India about more than 70% of Indias Crude Oil Production and more than 75% of Indias Natural Gas Production. ONGC Ankleshwar is located in western part of India and its main objectives are production, exploration, development and distribution of petroleum. Its drilling site is located at different places viz. Gandhar near Ankleshwar, Hajira near Surat. There are as many as 4000 employees in the company. It has very large area. Company provides nice canteen facilities, which provides goods food and refreshments items for the employees. Company has also a township build up for its employees which provides accommodation, sport and recreation facilities to its employees. Security facility is also outstanding. Families of employees are given free medical treatment and educational support. The first well was drill by ONGC in 1957 at Jwalamukhi in North West Himalayan foothills. The onshore Ankleshwar giant field was discovered in 1960. Gas stock at mannera tibba in Rajasthan in 1967. Ankleshwar Asset located in south Gujarat region in Bharuch District is the largest. It is being spread through out Contiagal, Kim, Jalod, Rajpardi, Gandhar, Dahej, Nada, Kavi, Dupka, Alamgir oil fields. The Asset has two main fields: Ankleshwar field and Gandhar field. While Ankleshwar is the old field and the gandhar is the new one discovered in 1984. In offshore giant oil and gas field Bombay high was discovered in 1974. Operation of ONGC started in early sixties. With its registered office at New Delhi, ONGC has offices in seven cities and training institutes in four locations.

COMPANYS HISTORY: 1947-1960: Until 1955, private oil companies mainly carried out exploration of hydrocarbon resources of India. In Assam, the Assam Oil Company was producing oil at Digboi (discovered in 1989 and the Oil India Ltd (A 50% joint venture between Govt. of India & Burma Oil Company) was engaged in developing two newly discovered large fields Naharkatiya & Moran in Assam. In West Bengal, the Indo-Stanvac Petroleum project (a joint venture between Govt. Of India & Standard Vacuum Oil Company of USA) was engaged in exploration work. In 1955, Govt. of India decided to develop the oil and natural gas resources in the various regions of the country as part of the Public Sector development. With the objective, an Oil & Natural Gas Directorate was set up towards the end of 1955, as a subordinate office under the Ministry of Natural Resources and Scientific Research. The Department was constituted with a nucleus of geoscientists from the Geological survey of India. A delegation under the leadership of Mr. K .D. Malviya, the Minister of Natural Resources, visited several European countries to study the status of oil Industry in those countries & to facilitate the training of Indian professionals for exploring potential oil & gas reserves. Foreign experts from U.S.A, West Germany, Romania & Erstwhile U.S.S.R. Visited India & helped the Govt. with their expertise. In April 1956, the Govt. of India adopted the Industrial Policy Resolution, which placed mineral oil Industry among the schedule A industries, the future development of which was to be the sole & exclusive responsibility of the state. Soon, after the formation of the Oil & Gas Directorate, it becomes apparent that it would not be possible for the Directorate with its limited financial & administrative powers as subordinate office of the Govt., to function efficiently. So in August 1956, the Directorate was raised to the status of a commission with enhanced powers, although it continued to be under the Govt. In October 1959, the Commission was converted into a statutory body by an act of the Indian Parliament, which enhanced powers of the commission further. The main functions of the Oil & Natural Gas Commission subject to the provisions of the Act, were to plan, promote, organize & implement programs for development of Petroleum Resources & the production & Sale of Petroleum products produced by it, and to perform such other functions as the Central Govt. may from time to time, assign, to it. The act further outlined the activities & steps to be taken by ONGC in fulfilling its mandate. 1960-61:

Since its inception, ONGC has been instrumental in transforming the countrys limited upstream into large viable playing fields, with its activities spread throughout India & significantly in overseas territories. In the inland areas, ONGC not only found new resources in Assam but also established new oil province in Cambay basin (Gujarat), while adding new petroliferous areas in the Assam-Arakan Fold Belt & East Coast basins (both inland & offshore). ONGC went offshore in early 70s & discovered a giant oil field in the form of Bombay High, now known as Mumbai High. This discovery, along with subsequent discoveries of huge oil & gas fields in Western offshore changed the oil scenario of the country. Subsequently, over 5 million tones of hydrocarbons, which were present in the country, were discovered. The most important contribution of ONGC, however, is its self-reliance & development of core competencies in E & P activities at a globally competitive level. AFTER 1990: The Liberalized economic policy, adopted by the Govt. of India in July 1991, sought to deregulate & de-license the core sectors with partial disinvestments of Govt. equity in Public Sector Undertakings & other measures. Consequently, thereof, ONGC was reorganized as a limited Company under the Companys Act, 1956 in February 1994. After the conversion of business of the erstwhile Oil & Natural Gas Commission to that of Oil & Natural Gas Corp. Ltd. In 1993: The Govt. disinvested 2% of its shares through competitive bidding. Subsequently, ONGC expanded its equity by another 2% by offering shares to its employees. March 1999: ONGC, Indian Oil Corp. (IOC) a downstream giant & Gas Authority of India Ltd. (GAIL) the only gas marketing company, agreed to have cross holding in each others stock. This paved the way for long-term strategic alliances both for the domestic & overseas business opportunities in the energy value chain, amongst themselves. Consequently, to this the Govt. sold off 10% of its share holding in ONGC to IOC & 2.5% to GAIL. With this, the Govt. holding in ONGC came down to 84.11%. 2002-03: After taking over MRPL from the AV BIRLA GROUP, ONGC diversified into the downstream sector, ONGC will soon be entering into the retailing business. ONGC has also entered the global field through its subsidiary, ONGC Videsh Ltd. (OVL). ONGC has made major investments in Vietnam, Sakhalin & Sudan & earned its first hydrocarbons revenue from its investments in Vietnam.

2004: ONGCS Market Capitalization crosses a Trillion Rupees. 106 redevelopment wells drilled in Mumbai High-Oil production increases from 218,000 barrels per day to 270000 barrels per day. ONGC achieves near-zero gas flaring. 10% disinvestment of ONGC highest in India receives unprecedented global investor response, brings in 20 new FIIs to Indian equity market. 2005: 100% of ONGCS installations & institutions accredited with the highest safety rating; ONGC becomes the only organization in the world to achieve the distinction. Oval retail outlet launched in Mangalore ONGC becomes only Indian company to be present across entire Oil & Gas chain from Drilling to Dispensing. The former President of India Dr A P J 2006:10 new finds of Hydrocarbons, shallow gas exploration in Cambay and K.G. Basins. 2007:ONGC Videsh Limited (OVL), the wholly-owned subsidiary of ONGC engaged in overseas E&P activities. It acquired 11 E&P projects in 6 countries during the year. 2008:ONGC signed Memorandum of Understanding with- Institute of Energy Technology, Norway, Shell.

Company overview Name of the company O.N.G.C (Oil and natural gas corporation ltd.) Establish year August 1956 Key people Radhey .S. Sharma Company secretary S.P.Garg Registered office Jeevan Bharti Building, Tower-2 124, Indira Chowk, New delhi-110001 Corporate office Tel Bhavan Deharadun-248003 Uttarakhand Bankers State Bank of India Subsidiaries ONGC Videsh Ltd. Mangalore Refinery & petrochemicals Ltd. ONGC Nile Ganga B.V ONGC Nile Ganga (Cyprus) Ltd. ONGC campus Ltd. ONGC Narmada Ltd. ONGC Do Brazil Exploration Ltd. ONGC Nile Ganga (San Cristobal) B.V ONGC Amazon Alakhanda Ltd. Statutory Auditors K K Soni & co. S C Ajmera & co. PSD Associates Singni & Co. Padamnabham

 Registrar & Share Transfer Agent Karvy Computershare Private Ltd. Plot No. 17-24 Vittal Rao nagar, madhapur Hyderabad-500081 (A.P.) 105-108, 1st Floor Arunachal Building 19, Barakhamba Road New Delhi-110001 Listed at Bombay stock Exchange National Stock Exchange Depositories National securities Depositories Ltd. Central Depositories Services (India) Ltd. Awards ONGC has bagged from time to time safety awards instituted by the OISD, India; 1987-88 :: Cross Country pipeline 1988-89 :: Oil/Gas production Installation (BHS) 1988-89 :: Cross Country pipeline 1989-90 :: Oil/Gas production Installation (BHS) 1990-91 :: Cross Country pipeline 1991-92 :: Oil/Gas production Installation (Hazira) 1994-95 :: Cross Country pipeline, Oil/Gas production Installation (Hazira) 1995-96 :: Cross Country pipeline, Oil/Gas production Installation (Mehsana) 1996-97 :: Processing Organization Excluding Refineries (Hazira)

 1996-97 :: Oil and Gas Production Units (MRBC) The Hazira Gas Processing Complex has also bagged the following awards for excellence in environmental preservation and pollution control: Award for Excellence in Environmental Preservation and Pollution Control for 1996, by federation of Gujarat industries, Baroda. The Golden Jubilee Memorial Trust Award for outstanding pollution control program for 1996-97 Organized by Gujarat Chamber of Commerce and Industry. RoSPA Bronze Awards for 1998 by Royal Society foe Prevention of Accident (RoSPA), UK. Award for outstanding contribution towards pollution control conferred by South Gujarat chamber of Commerce and Industries (SGCCI) for 1997-98

Branches of ONGC in India

Organizational Structure

BOARD OF DIRECTORS:

Mr. R S SHARMA (Chairman and Managing Director)

Mr. A K HAZARIKA (Director, onshore)

Mr. N K MITRA (Director, offshore)

Mr. D K PANDE (Director, Exploration)

Dr. A K BALYAN (Director, HR)

Mr. U N BOSE (Director, T&FS)

Mr. U SUNDARARAJAN (Director)

Mr. RAJESH V SHAH VISION

Mr. M M CHITALE

To be a World Class, Oil and Gas Company integrated in Energy business with dominant Indian leadership and global presence. Mission World Class Dedicated to excellence by leveraging competitive advantages are Research and Development and technology with involved people. Imbibe high standards of business Ethics and organization Values. Abiding Commitment to health, safety and environment to enrich quality of community life. Foster a culture of trust, openness and Mutual content to make working a stimulating and challenging experience for one people. Strive for customer delight through quality products and services.

Integrated in Energy business Focus on domestic and international oil & Gas Exploration and production business opportunities. Provide value linkages in other sectors of energy business. Create growth opportunities and maximize shareholder value.

Dominant Indian leadership Retain dominant position in Indian petroleum sector and enhance Indias Energy Availability. Size of the unit and form of organization Generally size of the unit is based on the total investment and total employment made by particular unit. While form of organization is decided on the basis of internal relationships, authority and responsibility to concerned departments. According to latest small-scale industry which is having investment more than 100 corers plant and machinery is considered as large-scale unit. While the employment made by particular industry is based on factory act. Factory act shares the detailed information regarding the employment for different industry. As the ONGC Ltd. Having approximately 26,000,000,000 as per the factory act thus ONGC is a large scale unit and it gets the benefit that every scale unit gets. ONGC Ltd. Company. Its shares available in stock market fir purchase and resale by public. It is also public sector unit. CORE VALUES SENSE OF BELONGING There should be a sense of commitment loyalty and sense of ownership of the job and company properties. There should be improvements in personal work area as a self-starter. There should be quality individual work and value addition. There should be a sense of pride in company.

INTEGRITY Personal / Professional integrity is strictly abiding by rules and regulations. Processing / deciding cases in an unbiased / dispassionate way. Sense of ethics in behaviour and interpersonal and professional interaction.

TEAM-SPIRIT

Employees should be working in groups, with trust and openness. There should be proper cooperation, communication between employees and employees, employer and employer, employer and employee. Employees should share knowledge and information there should be collective learning between them. There should be target consciousness, cost and quality consciousness between employees and employer.

DISCIPLINE: There should be punctuality, work ethics, dress code and self discipline. Enforcing discipline in a fair and firm manner.

SOCIAL RESPONSIBILITY: Caring of society and environment, projecting a lofty image of ONGC to society.

STOP CORRUPTION: By not acception / giving bribes in cash / kind. By not harassing any body. By taking decisions upon objective reality.

ONGC DETAILS

ONGC was established on 14th August 1956. And was know as OIL & NATURAL GAS COMMISSION, Which was earlier, a part of geographical survey of India. From 1st of Feb 1994 onwards ONGC Commission became Oil and Natural Gas Corporation Ltd. The Company was registered under Companies act 1956. The Headquarter of ONGC is at Dehradun and the registered office is at New Delhi. ONGC has six main regional offices in India.

BRIEF OF ANKLESHWAR ASSET Ankleshwar asset or plant is mother of ONGC started in 1960. It comes under Baroda regional office of ONGC. Production of Oil & Gas was commenced in 1961. It is the largest onshore asset or plant of ONGC. It makes second highest profit after MUMBAI HIGH.

Major Oil & Gas Fields: Ankleshwar Field (found in 1960). Gandhar Field (found in 1984).

In addition 21 Satellite oil and gas fields have been discovered around the main fields. Ankleshwar Sector is divided in to Ankleshwar field & satellite fields. Ankleshwar & Motwan-Sisodara are the major fields & Kosamba, Kim & Olpad are satellite fields. Surface facilities for Ankleshwar field comprises of Central Tank Farm (CTF) complex, production installation namely GGS I, GGS II, GGS III, GGS IV, GGS V, GGS VI, GGS Motwan, Andada and other installations namely Main Pump House, Water Treatment Plant and Intake well at Kathor on Tapi river. The Ankleshwar installations are located

within distance of 30 kms from Ankleshwar city. Surface facilities of satellite fields include GGS Kosamba, GGS Kim and Olpad which are as far as 50 kms away from Ankleshwar city Ankleshwar CTF has facility for processing of crude oil to meet refinery specifications, one LPG plant, Gas compressor plant and one effluent treatment plant. Typical Ankleshwar GGS has facility for receiving oil & gas from the wells. High pressure (above 6 kg/cm 2) oil & gas is directly sent to CTF after separation. Low pressure oil is stored in the tanks & pumped to CTF. The processing of crude oil to meet refinery specification can be done only at CTF. Some GGS has low pressure gas compressors. Low pressure gas is either compressed & sent to CTF or sent to CTF through low pressure gas lines & is compressed in Gas compressor plant at CTF.

Introduction Oil and Natural Gas Corporation Ltd. is the Top most leading company of India has scattered its scope of achievement around the world. ONGC is doing its own

1. 2. 3. 4.

Exploration work Development work Drilling work Production work

ONGC is not manufacturing the goods by the raw material but it is doing its own drilling work. The ONGC is searching the land by is Geology department where there is possibility of prevailing Oil and the Exploration function is to be started to justify whether there is oil availability in the land or not so, the primary function is started with the Exploration work. After the successful signal of the Exploration department the work of the development is begun where the area is developed with the pipes, mud, chemicals etc. The drilling work is started with the end ONGC the development work. The drilling result has its own contingencies. Where the oil is not to be found then it is to be closed down and that well is to be known as Dry will. If the oil is to be found out then the production work of extracting the developed area is to be started. The extraction work is to be done in the ONGC but it does not work for the purification and the bifurcation. It directly sells the crude oil to the IOCL, Baroda. The further work is to be done at the IOCL. The ONGC is working at both On-shore and Off-shore. Onshore means the production is on the land. It is to be done by at Gujarat Ankleshwar Mehsana Ahmadabad Surat

Assam Chennai The biggest off-shore is at MUMBAI (Bombay high) in India Product and services STUCTURE OF PRODUCTION DEPARTMENT

DEPUTY GENERAL MANAGER

CHIF MANAGER

MANAGER

DEPUTY MANAGER

SENIOR OFFICER

DY.SE
OFFICER

PRODUCTION FACILITIES Ankleshwar war asset comprises of two sectors i.e. ankleshwar and gandhar sector. ANKLESHWAR SECTOR:Ankleshwar sector is divided into ankleshwar field and satellite fields. Ankleshwar and motwan-sisodra is the major field and kosamba, Kim and olpad are satellite fiels. Surface facilities for ankleshwar field comprises of central tank farm (CTF) complex, production installation namely GGS-I, GGS-II, GGS-III, GGS-IV, GGS-V, GGSVI, GGS-motwan, GCS-motwan, EPS-anadada and other installation namely main pump house, water treatment plant and intake well at kathor on tapti river. The ankleshwar

installations are located within distance of 30 kms from ankleshwar city. Surface facilities of satellite field include GGS-kosamba, GGS-kim and GCS-olpad which are as far as 50 kms away from ankleshwar. Ankleshwar CTF has facility for processing of crude oil to meet refinery specifications, one LPG plane based on cryogenic technology, gas compressor plant and one effluent treatment plant. Typical ankleshwar GGS has facility for receiving oil and gas from wells. High pressure (above 6kg/cm2) oil and natural gas is directly sent to CTF after separation. Low pressure oil is stored in the tank and pumped to CTF. The processing of crude oil to meet refinery specification can be done only at CTF. Some CTF has low pressure gas compressors. Low pressure gas is either compressed and sent to CTF through low pressure gas line and is compressed in gas compressor plant at CTF. GGS also has headers for distribution of gas to gas lift wells, demulsifier injection facility etc. As oil is processed centrally and low pressure gas compressed at CTF so the rich high pressure gas available centrally at CTF from which LPG and naphtha is produced. GGS operation thus remains simple. Water from intake water well is treated at kathor water treatment plant and sent to main pump house for water injection into the reservoir for its pressure maintenance. Water for main pump house is also used at ankleshwar colony for house hold purpose. High pressure lean gas is received at GCS motwan from Hazira plant for use in gas lift wells.

GANDHAR SECTOR:This divided into gandhar field and north gandhar fields. Gandhar is the main field and other satellite fields are dahej, pakhajan, dabka, nada, sarbhan, kural-gajera and jambusar. Surface facilities for gandhar field comprises of central processing facility named CPF-gandhar, production installation namely GGS-I,GGS-II, GGS-III, GGS-IV, GGS-V, GGS-VI, GGS-VII, GGS-VIII, GGS-dahej, GGS-jolwa, one EPS 253, and water intake and treatment plant at zanore where water is lifted from river narmada. Gandhar installations are more or less 75 kms away from Ankleshwar city.

GGS-dabka, GGS-north gandhar have facility to process oil to refinery specifications and other typical GGS facility. Processed oil is pumped from CTF, CTF to koyali refinery. Gas from the field is sold to consumers, main one is GAIL. DRILLING SERVICES:The drilling of oil well in Ankleshwar started by Russian rig (uralmarsh-sd) in the year 1960 at well no Ankleshwar -1 later on christened as VASUDHARA by pandit Javaharlal Nehru, first prime minister of India. This rig had drilled well nos. 1, 2, 5, and 6 successfully in Ankleshwar field during the drilling of Ankleshwar 7. During the year 1993-94, Ankleshwar project was operating maximum 22 numbers of drilling rigs both own and charter hired. Deeper wells were drilling with deep drilling rig with dual completion and well having longer horizontal drill of 300-400 meters were drill directionally. Some rigs are equipped with hi-tech equipments such as IRD (independent rotary drive units) and top drive system. RIG e-1400-7 was installed with the state of the art top drive drilling system for the first time on ONGCs on land rig in gandhar. The rig has also been equipped with drill watch which is an advanced drill digital instrumentation and is compatible for transmission of data to head quarters though SCADA satellite connectivity for on-line display and monitoring of rig operation.

PRODUCTION AREA IN ANKLESHWAR AREA-I (1)ANKLESHWAR (2)MOTWAN (3)SISODRA (4)GANDHAR (5)ANDADA AREA-II

(1)KOSAMBA (2)KIM (3)OLPAD (4)ELAO AREA-III (1)GANDHAR (2)DAHEJ (3)PAKHAJAN AREA-IV (1)NADA (2)JAMBUSAR (3)DABKA (4)SARBHAN (5)DEGAM

PRODUCTION PROCESS OF ONGC Step 1. A Geologist & Geophysics survey was conducted by Sub Surface team for the searching of Reservoir rocks which are tracked in the mother earth. They usually search for tracked reservoir because they have tendency to remain at one place for years. Extracting fossil fuel from them become easier as they are placed at one place. Step 2. Once the survey is done, an accurate estimation is done based on the data available. On the basis of estimation a production facilities and other installation is made at that particular field.

Step 3. After installation of production facilities drilling process start. They do drilling by two ways: 1. Vertical Oil Well Drilling 2. Directional Oil Well Drilling At the bottom of the Rig, One cutting machine is there which is called the BIT. It is used to cut the heavy stones while drilling. The bit is made up of diamonds which is helpful in the cutting of the stones. Step 4. Once the drilling is completed, tubing pipes is used to extract crude oil and other hydro carbon from the earth. Along with Tubing pipes, Casing pipes are also attached with it to provide support to it. Step 5. The crude oil extract from well is transferred to GGS (Group Gathering Section) for separation of Natural Gas from Crude Oil. GGS is a separator which have dome like structure from which Natural Gas is separated from upper side of machine as it is light as compared to Crude Oil. The Natural Gas separated is transfer to GAIL. The Crude Oil that remains is the mixture of Crude oil and Water. Step 6. The mixture of Crude oil and water is transfer to CPF (Central Processing Facilities). CPF is Heater-Treater machine water is burnt without allowing oxygen to enter in process in order to convert water into gas so that water can be separated from crude oil.

Step 7. The crude oil after processing in CPF is ready for sale which is transferred to Refineries such as IOCL, BPCL & HPCL through pipelines. Human resource department

HIERARCHY OF HUMANRESOURCE DEPARTMENT-

STRUCTURE
ASSET ASSET MANAGER MANAGER

GROUP GROUP GENERAL GENERAL MANAGER MANAGER

GENERAL GENERAL MANAGER MANAGER DEPUTY DEPUTY GENERAL GENERAL MANAGER MANAGER CHIEF CHIEF MANAGER MANAGER

MANAGER MANAGER

DEPUTY DEPUTY MANAGER MANAGER SENIO SENIO P P& &A A OFFICER OFFICER P&A P&A OFFICER OFFICER

ASSISTANT ASSISTANT P& P& AO AO

HR VISION To attain organizational excellence by developing and inspiring the true potential of companys human capital and providing opportunities for growth, well being and enrichment

HR MISSION To create a value and knowledge based organization by including a culture of learning, innovation & team working and aligning business priorities with aspiration of employees leading to developing of an empowered, responsive and competent human capital HR OBJECTIVES (1) To develop and sustain core values. (2) To develop leaders for tomorrow. (3) To provide job contentment through empowerment, accountability and responsibility (4) To built an upgrade competencies through virtual learning, opportunities for growth and providing challenges in the job. (5) To foster a climate of creativity, innovation and enthusiasm. (6) To enhance the quality of life of employees and their family. (7) To inculcate the high understanding of service to a greater cause.

HR STRATEGY (1) To meet challenging demands of the business environment, focus of the HR strategy is on change of the employees mind set.

(2) Building quality culture and resources. (3) Re-engineering and redeployment for maximizing utilization of HR potential. (4) To build an upgrade competency through virtual learning, opportunities growth and providing challenges in the job. (5) Re-strengthening mutual faith, trust and respect. (6) Including a spirit of learning and enjoying the challenges. (7) Developing human resources through virtual learning, providing opportunities for growth, inculcating involvement and exposure to benchmarking in performance. ROLE OF HR (1) Alignment of HR vision with corporate vision. (2) HR as change agent. (3) Enhance productivity and performance by developing employee competency and potential (4) Developing professional attitude and approach. (5) Developing global managers for tomorrow to ensure the role of global players. MEASURING HR PERFORMANCE

HR parameters have been incorporated MOU by ONGC since 1994-95, to systematically and scientifically evaluate effectiveness of HR systems, which enables and facilitate time bound initiatives.

FUNCTIONS OF H.R.DEPARTMENT(1)Establishment section (2)Estate section (3)Land acquisition section (4)General administration section (5)Training & Development section (6)Performance Appraisal Reports section (7)Official Language section (8)Industrial Relation section (9)Disciplinary &applied section (10)Senior citizen section (11)Loans &Advance section (12)Central Registry Management (13)Legal Department

ACTIVITIES OF PERSONNEL DEPARTMENT-

(1) MAINTAINING THE PERSONAL FILE(1) EMPLOYEES DETAIL (2) DATE OF JOINING (3) POSTING HISTORY (4) PROMOTION HISTORY (5) PAY DETAIL (6) WELFARE FACILITIES (7) DETAILS OF GRATUITY (8) DETAILS OF PRIVIDENT FUND (9) POST RETIREMENT BENEFIT SCHEME (10)COMPOSITE OF SOCIAL SECURITY SCHEME (11)NOMINEE DETAIL (12)LEAVE DETAIL

Employeess personal file It is covering all the peculiar personal details of the personnel.it is coordinating the personal information with service information.

(A) Personal information It covers the details which gives identity himself,caste,religion,qualification etc. (B) Service information (A) Details of initial appointment in ONGC (B)Subsequent promotion (C) Earned leaves record (D) Extra ordinary leave (E) Other type of leave

(2) ESTATEThis relates to provide the quarter facility to the employees The implication of allotting the quarters is to be done in the month of August. It is to be classified asA Type B Type C Type D Type TYPE A B C D ENTITLEMENT UNIONISED EMPLOYEE BASIC PAY-R.S.4300-6399 UNIONISED EMPLOYEE BASIC PAY-R.S.7000 & ABOVE EXECUTIVES OF E0 TO E2 EXECUTIVES OF E3 TO E5 DGM(E6) & ABOVE TOTAL AREA ALLOTMENT 385 SQ.FT 600 SQ.FT 900 SQ.FT 1500SQ.FT +200 SQ.FT (SERVANT ROOM)

(3)INDUSTRIAL RELATIONThe industrial relation relates to relationship between (1)Organization & Employees (2)Employees & Employees (3)Employees & Employers (4)Organization & Trade union (5) Employees& Trade union

There are three types of committee with the reference(1)Departmental Committee (2)Grievance Committee (3)Appeal Committee

(4)LAND ACQUISITIONIt acquires the land for the purpose of Drilling, Exploration, Development and Extracting the oil from that land.The consideration are given as follows(1) Purchase the land or take on lease (2) Pay compensation to the land loosers. (3) Pay compensation to the farmers for the crop lost.

METHODS OF RECRUITMENT

DIRECT RECRUMENT:ONGC is conducting the interviews and selecting the employees by taking different procedural test. PROMOTION:The existing employees are given promotion for higher posts with more authority, responsibility and accountability. LEASING :The employees are leased on the temporary basis to complete a particular task from the central government and public sector.

HUMAN RESOURCE PLANNING, RECRUITMENT AND SELECTION 1) SHORT TITLE AND COMMENCEMENT: This Regulation will be called the Oil and Natural Gas Corporation Ltd. Recruitment and promotion Regulation, 1980 as modified in 1997, i.e. Modified R&P Regulation, 1980(in short MRPR-1980). This Regulation shall be effective from 1.1.1997.

2) METHOD OF FILLING POST:All posts in the Corporation shall be filed by: Direct Recruitment ; or Promotion of employees already in the service of the corporation ; or Borrowing the service of persons from the central Government or State Government or public sector undertaking or local or other authorities ; or Any other method, as may be decided by the Corporation, for reasons to be recorded in writing for appointment, to any post, of persons possessing special merit, qualification or experience. 3) CATAGORIES OF POSTS, SCALES OF PAY, QUALIFICATION AND OTHER MATTERS CONNECTED THERE WITH: The categories of posts, scales of pay, method of recruitment, qualification and other matters connected therewith for appointment or promotion to the said posts, the percentage reserved for promotion an for direct recruitment to the posts, the percentage reserved for promotion and for direct recruitment too the posts there of shall be as specified in schedule I appended to these regulation, subjects to any relaxation from time to time by the Corporation

Any revision in the scales of pay to any post, from time to time, by the corporation shall apply to the scales of pay specified in Schedule I appended to these regulations.

The Board will be the competent Authority to change / Modify the designation / grades or any other term / condition in these regulations.

4) FILLING VACANCIIES BY DIRECT RECRUITMENT:5) FILLING OF VACANCIES BY PROMOTION:6) SPECIAL REPRESENTATION TO CERTAIN SPECIALED CATEGORIES OF PERSON:In making appointment to posts, either by direct recruitment or promotion, the corporation shall provide reservation and other concession to the candidates belonging to the schedule casts, the scheduled Tribes, the other Backward cases, the physically challenged Handicapped, the Ex-servicemen and other special categories of persons in accordance with the order issued by the Central Government from time to time in this regard with respect to reservation of posts under the control of that Government to candidates belonging to the Scheduled Casts, Scheduled Tribes and other special categories of person.

TYPES OF TRAINING PROGRAMMES-

TRAINING PROGRAMME

(1) CENTRALISED TRAINING

(2) REGIONAL TRAINING

(3) GRADUATE TRAINING

(4) NEED BASED TRAINING

(1)CENTRALISED TRAININGThe training is given to the employees from the head office. (2)REGIONAL TRASININGThe training is given at the particular asset of the ONGC. (3)GRADUATE TRAININGThis training is given to the temporary employees. (4)NEED BASED TRAININGThis type of training is given to the employees as per their requirement on the job and In the terms of their job. ONGCS TRAINING INSTITUTES (1)INSTITUTE OF MANAGEMENT DEVELOPMENT (IMD) (2)REGIONAL TRAINING INSTITUTE, VADODARA. (3)REGIONAL TRAINING ISTITUTE, CHENNAI. (4) REGIONAL TRAINING ISTITUTE, MUMBAI.

(5) REGIONAL TRAINING ISTITUTE, ASSAM. (6) REGIONAL TRAINING ISTITUTE, RAJAMUNDARY(A.P)

MAIN FUNCTIONS OF TRAINING INSTITUTES (1) To develop employees with the requisite skills. (2) To improve the knowledge of employees for efficient &useful operation. (3) TO develop employees in order to enhance promotional chances. (4) To develop safety consciousness among the employees. (5) To provide greater flexibility in assignment &utilization of personnel. (6) To coordinate training abroad. TYPES OF COMMUNICATION CHANNELS-

COMMUNICATION CHANNEL

(1) DOWNWARD

(2) UPWARD

(3) HORIZONTAL

(4) DIAGONAL

(1)DOWNWARD COMMUNICATIONThe head communicates at the bottom level with the modes of rules and regulation files,circulars,orders,politics.

(2)UP WARD COMMUNICATIONThe communication moves from bottom to top with the modes of fies and application, suggestion or complaints.

(3)HORIZONTAL COMMUNICATIONThe communication moves from one department to other at the same level with the modes of files.

(4)DIAGONAL COMMUNICATIONThe subordinate of one department communicates directly to the superior of other department with the modes of files or suggestion

PROMOTION AND TRANSFER POLICY A promotion may be defined as an upward advancement of an employee in an organization to another job. Which commands better pay / wage better status / prestige and higher opportunities / challenges and authority, better working condition and facilities at a rate? PROMOTION FOR EXECUTIVES:Level of promotion E0 E1 Mode Seniority cum-fitness Experience Required 2yrs. for Q1 qualified 4yrs. for Q2 qualified 6yrs. for Q3 qualified

E1 E2

Quantification

4yrs. for Q1/Q2/Q3

E2 E3 E3 E4 E5 Above

Quantification Quantification Selection on merit

5yrs. for Q1/Q2/Q3 4yrs. for Q1/Q2/Q3 3yrs.

Q1 Including level qualification for E1 level (I.e. Asstt. Ex. Engr. &Equivalent level) Q2 Induction level qualification prescribed for induction At the top of class3 (I.e. Jr. Engr. & equivalent level) Q3 Induction level qualification prescribed for bottom Class 3 (I.e. Jr. Tech. Asstt & equivalent level) FOR CLASS 3:Eligibility for promotion from one level to next higher level with the requisite experience: A-1 to A-2 A-2 to A-3 A-3 to A-4 A-4 to S-1 S-1 to S-2 S-2 to S-3 S-3 to S-4 3yrs. Experience 6yrs. Experience -Do-Do5yrs. Experience -Do-Do-

FOR CLASS 4:Eligibility for promotion from one level to next higher level with the requisite experience:W-1 to W-2 W-2 to W-3 W-3 to W-4 W-4 to W-5 W-5 to W-6 W-6 to W-7 3yrs. Experience 6yrs. Experience -Do-Do-Do-DoEligibility for promotion from W-5 to W-7 in respect of those employees who possess less than laid down qualification would be one year more than the specified period. The Department Promotion Committee keeping in view their service records under the seniority cum fitness criteria will consider suitability of eligibility employees for promotion to next grade.

TRANSFER POLICYThe transfer does not change the status ,authority and responsibilitybut it changes work place or the shift for the worker or the employee. (1)Executives not to be shifted if they have served only 2 years in a station. (2)Sensitive posting are to be rotated 3 years. (3)Individual preference heads are the are the basis for the asset /project /functional heads are the basis for job rotation/transfer. Organization needs will be the prime determining factor.

(4)Female employees up to E4 level may not generally be transferred to NE status or to offshore area, except at their own request or on operational ground. (5) Executives who have completed their tenure at Newman not to be transferred to karaikal. (6)Field party personal is working physically for 5 years is NE sector their treated to have completed their tenure in NE sector. (7)In case of shortfall for 150/120 days in the third year,Their relieving date will be extended to the extend of short fall of their terms. (8) Executives posted to NE sector should work for 150 days including training (India & abroad) but does not include close holiday tours & EOL for the duty, the working days rate 120 days. (9) Executives posted to NE sector should join by 31-May of that year are required to complete tenure of 3years duration from the date of their joining. Finance Department Introduction Finance department is the most important part in any organization. This department covers all financial needs of the entire department in to the organization. MOTTO of the finance department (Ankleshwar) "Service with smile to internal & external vendor. "Perfect accounts" for stake holders. Companions to fellow colleagues for "making tomorrow brighter". Ankleshwar, the mother project of ONGC Started in the year 1960. Production of oil and gas was commenced in the year 1961. Largest onshore project (Asset) Contribution around 9% of ONGCs oil and gas sales. Major oil and gas fields 1. Ankleshwar field (found in 1960). 2. Gandhar field (found in 1984).

In addition 21 Satellite oil and gas fields have been discovered the main fields.

Organization Structure of Finance and Accounts At Ankleshwar asset head of finance department is DGM, under him presently there are four managers to control and perform different in various sections of finance department. There are officers under each manager. Currently strength of finance dept. of Ankleshwar is 56.

3.1.2 Various sections in the Finance Department.

1. Central Accounts Section, Sales accounting, Asset accounting and Cost accounting 2. Cash & Bank Section 3. Personal claim Section 4. Pre-audit section-Contractual ,suppliers payment 5. Budget section 6. Miscellaneous payments section

3.1.3 Functions of the various sections; CENTRAL ACCOUNT SECTION

This section is responsible for preparing the Trading A/C, Profit & Loss A/C & Balance Sheets for the respective financial year.

 This section records each and every transaction under the respective books of accounts. As this section has to face Audits like Internal Audit, External Audit, Statutory Audit, Tax Audit etc, it has to be very diligent and steadfast in its work. This section is responsible for the following functions:

1. Maintenance of companys as a whole at headquarter and at representative assets. 2. Preparation and submission of monthly trial balance and periodical statements of accounts, returns etc. 3. Maintenance of cost element sub-ledger and their verification with the journal ledger accounts. 4. Submission of data for the preparation of income tax return. 5. Area wise accounts. 6. Producing property accounts. 7. Inter-unit transactions.

2.CASH & BANK SECTION

This section is responsible for the receipts & payments either in cash or in cheque or by any other form. This section is also responsible for the custody of cash, documents in respect of investments of corporation money & other important documents. Four major activities performed by Cash & Bank section:-

1. RECEIPTS Revenue received by the selling of the product produced by ONGC is Received by the Cash & Bank section.

2. PAYMENTS Payments to different sections are made by the Cash & Bank section. Original documents of the contracts also remain with this section. Payments be made Centralized Payment Scheme Payments are made to: a. Contractual service provider. b. Suppliers of materials, equipments, spares & parts.

c. Employees of the organization 3. FEES & DEPOSITS Various fees for issuing tender forms to our suppliers are collected by Cash & Bank section. Deposits include EMD and SD as follows: a. Earnest Money Deposit (EMD) avoids any situation of contractors withdrawing from their duty after the tender is allotted to them. b. Security Deposit (SD)- 10%of the total tender amount deducted by ONGC in order to ensure that the contractors perform efficiently, which is repayable on satisfactory performance.

3. MANAGEMENT INFORMATION SYSTEM (MIS)

Major activities under the MIS:

1. BANK RECONCILIATION STATEMENT (BRS)

A BRS is the result of comparison between bank balance as per bank book maintained at the companys & balance as per bank account at the end of bank. It is the entity to determine the level of internal check & accuracy to warn the company of any fraud/errors.

2. CASH FORECAST

It is generally a formality. In the company like ONGC has no problem of cash at all. However, future requirement of cash is still estimated.

3. MIS

MIS maintains & provides the information to various departments on the basis of their requirements. It keeps an eye out for any unhealthy practices going on in the organization.

4. PERSONAL CLAIM SECTION This section takes care of any payment due to the employees & makes arrangement for it. Payments to the employees include mainly salary & certain other benefits provided according to their pay scale. A. INCREMENT:

1. Date of increment: 1st January of each year. 2. Rate of annual increment: 3% of basic pay. B. ALLOWANCES 1. Dearness Allowance 2. Drilling Allowance 3. Hard duty Allowance & Offshore Compensation Allowance 4. Operational Allowance 5. Professional Pursuit Allowance 6. Washing Allowance 7. Shift duty Allowance 8. Food Compensatory Allowance 9. Nourishment Allowance 10. Tribal Allowance 11. Non Practicing Allowance 12. House Rent Allowance C. FRINGE BENEFITS: 1. Holiday Home 2. Conveyance Maintenance Reimbursement Expenditure 3. Traveling Allowance D. Children Education Assistance Scheme 5. SALES ACCOUNTING SECTION

Role of this section: Billing Receipts Payments of statutory liabilities. Finalization of quarterly balance sheet. Raising bills for interest on delayed receipts. MIS.

Present Product Mix of ANKLESHWAR Asset : 1. Crude Oil 2. Natural Gas 3. Naphtha 4. LPG 5. Electricity 6. Services

PROFITABILITY ASPECTS EXPENDITURE Statutory Payments (Rs.in crores)

Royalty Cess Sales Tax Excise Duty Education Cess NCCD TOTAL

'05-06 629 361 107 16 1113

'06-07 729 472 0.1 29 1230.1

'07-08 858 467 14 15 9.5 1363.5

'08-09 292 404 0 13 13 8.26 730.26

Here we can see that the statutory payments Hs remained around Rs.1110 crores to Rs, 1360 crores in these years. But it fell drastically in years 2008-09 to Rs. 730.26 crores.

Total Expenditure (Rs.in Crores)

PARTICULARS Statutory Charges Others Total

'05-06 '06-07 '07-08 '08-09 1123 1230 1358 732 457 582 848 786 1580 1812 2206 1518

The Table & Graph shows that the fall in total expenditure in 2008-09 due to fall in statutory payments.

REVENUE Sales Revenue (Rs.in Crores)

2005-06 2006-07 2007-08 2008-09

Crude Oil 2466 2102 2008 1767

Natural Gas LPG 473 64.5 509 48.1 475 68.84 447 66.99

Naptha 114.08 59.01 57.7 91.99

Electricity TOTAL 7.7 3125.28 8.36 2726.47 8.3 2617.84 5.8 2378.78

Here we can see that sales revenue of crude oil fall every years whereas the revenue from gas is fluctuating.

Total Revenue (Rs.in Crores)

2005-06 2006-07 2007-08 2008-09

SALES REVENUE OTHERS TOTAL 3125.28 126.62 3251.9 2726.47 171.67 2898.14 2617.84 163.81 2781.65 2378.78 121.37 2500.15

The table & Graph represent the trend of total revenue over these years. We can see that the total revenue fall over the time due to fall in the sales revenue.

Profit (Rs.in Crores)

PROFIT

'05-06 1589

'06-07 1000

'07-08 578

'08-09 987

The graph shows that the profit falls to almost 64 % from 2005-06 to 2007-08. but in year 2008-09 it shows a upward trend as the total expenditure fall in this year.

PROFITABILITY RATIO Net Profit Ratio:= Net profit / Net sales *100 YEARS NET PROFIT SALES RATIO (in %) 200506 15,889,238,904 32,159,047,223 49.4 200607 10,009,840,558 27,264,918,351 36.71 200708 5,785,632,572 26,180,969,247 22.09 200809 9,829,271,514 23,793,892,594 41.31 Net profit ratio :-

Here we can see that N P ratio fall from 49.4% to 22.09 % in year 2005-06 to 2007-08 due to fall in sales in these years . But in 2008-09 it rise to 41.31 % as there is fall in total expenditure in this year.

Return on Capital Employed (ROCE) = Profit Before Interest and Tax / Capital Employed * 100 This ratio indicates the efficency with which management has effectively utilized funds or capital employed. Higher the rate of return on capital employed, greater will be the efficiency. YEARS 200506 200607 200708 200809 EBIT 15889238904 10009840558 5785632572 9829271514 CAPITAL EMPLOYED 27217678235 27289780467 27307035284 30347217866 RATIO 58.37 36.67 21.19 32.39

RA TIO
70 60 50 40 30 20 10 0 2005-06 2006-07 2007-08 2008-09 RATIO

From the graph we can see that there is tremendous fall in EBIT in these years which leads to fall in ROCE. But in year 2008-09 due to increase in the EBIT there is improvement in ROCE. LIQUIDITY ASPECTS Current Assets YEARS 2005-06 Inventory 2,039,710,402 Debtors 1,295,640,620 Cash & Bank 193,404 Loans & Advances 1,101,503,236 Interest Accrued 194,590,639 Total 4,159,978,963
3,50,00,00,000 3,00,00,00,000 2,50,00,00,000 2,00,00,00,000 1,50,00,00,000 1,00,00,00,000 50,00,00,000 0 -50,00,00,000 2005-06 2006-07 2007-08 2008-09 Inventory Debtors Cash & Bank Loans& Advances interest Accrued

2006-07 2007-08 2,428,260,173 2,946,083,066 885,029,970 861,952,630 31,360 530,624 1185928063 1,290,881,673 202,026,183 208,193,954 4,078,438,057 5,603,072,583

2008-09 3,080,687,252 549,509,767 (6,661,551) 1,483,280,282 213,877,699 4,990,754,094

From the above graph we can see that the amount of capital blocked in inventory are rises every year which is not a good sign for company while investment in debtors fall which shows efficiency of company in Debt management. Current Liabilities :-

'05-06 Other Liability Statutory Liability 124 11

'06-07 116 37

'07-08 229 73

'08-09 233 42

From the graph we can see that the current liabilities rise to Rs.302 Crores which falls to Rs.275 Crores .

LIQUIDITY RATIO Current Ratio YEARS CURRENT ASSETS CURRENT LIABILITIES RATIO

2005-06 4,631,638,30 1 1366024881 3.39

2006-07 4,701,275,749 1597228527 2.94

2007-08 5,307,641,947 3027636003 1.75

2008-09 5,320,693,449 2750747897 1.93

In year 2005-06 the Current ratio was 3.39:1 which was higher than the standard Accounting Current Ratio 2:1 which is good for company but it falls to 1.75:1 and 1.93:1 in year 2007-08 and 2008-09 respectively.

Quick ratio YEARS QUICK ASSETS CURRENT LIABILITIES RATIO 2005-06 2,591,927,89 9 1366024881 1.897423638 2006-07 2,273,015,576 1597228527 1.423099787 2007-08 2,361,558,881 3027636003 0.780000924 2008-09 2,240,006,19 7 2750747897 0.814326242

NOTE: Quick Assets does not include inventory (Stock) In years 2005-06 and 2006-07 Quick Ratio was 1.89:1 and 1.42:1 which was higher than the standard accounting ratio 1:1.but it falls to 0.7:1 and 0.81:1 in 2007-08 and 2008-09 .

INVENTORY ASPECTS INVENTORY (CRORES) Stores & spares CIOS '05-06 192 2 '06-07 230 4 '07-08 283 5 '08-09 297 16

Inventory Ratio:YEARS 2005-06 2006-07 2007-08 2008-09 SALES 31259047223 27264918351 26180969247 23793892594 INVENTORY 2,039,710,402 2,428,260,173 2,946,083,066 3,080,687,252 TIMES 15.32 11.23 8.88 7.72

Inventory Turnover Ratio falls to 15.32 times to 7.72 times from years 2005-06 to 2008-09.

Debtors YEARS SALES DEBTORS COLLECTION PERIOD= RATIO

2005-06 2006-07 2007-08 2008-09 31259047223 27264918351 26180969247 23793892594 1,295,640,620 885029970 861952630 549509767 14.92 24.12 11.68 30.81 11.85 30.37 8.35 43.3

As the Debtors are falling from 129.56 Crores to Rs. 54.95 Crores there is fall in the Debt collection period from 15 days to 8 days. Now the company enable to collect the debt faster.

FIXED ASSET FIXED ASSETS (CRORES) Gross Block Depreciation Net Block

2005-06 2531 2194 337

2006-07 2642 2303 339

'2007-08 2770 2431 339

2008-09 2961 2574 387

We can see that there is rise in fixed assets in year 2008-09 as compared to previous years.

Fixed Assets Ratio YEARS 2005-06 2006-07 2007-08 2008-09 SALES 31259047223 27264918351 26180969247 23793892594 FIXED ASSETS 3366390414 3390479676 3389621368 3871250094 RATIO 9.28 8.04 7.72 6.14

Fixed Assets Turnover ratio represents the efficient utilization of fixed assets in generating sales. This ratio was 9.28 in 2005-06 which was decreased to 8.04, 7.72, and 6.14 in year 2006-07, 2007-08, and 2008-09 respectively.

Working capital YEARS SALES WORKING CAPITAL RATIO

2005-06 2006-07 2007-08 2008-09 3125904722 2618096924 3 27264918351 7 23793892594 3265613420 9.57 3104047222 8.78 2280005944 11.48 2569945552 9.26

Working capital is a capital needed to run day to day operation of company and working capital Turnover Ratio represent the efficient utilization pf working capital for generating sales. This ratio fluctuates over the periods. In year 2005-06 it was 9.57 which reduced to 8.78 in 2006-07. But it increased to 11.48 in year 2007-08 and again fall to 9.26 in 200809.