ongc project

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

PREFACE

In today’s competitive world of business the value of Management is enhancing
day by day. Management play important role. Without management organization can’t 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 unit’s 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 information’s 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.R-
ER). 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

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 India’s Crude Oil Production and
more than 75% of India’s 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.

COMPANY’S
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 country’s
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 Company’s 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 other’s
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:

ONGC’S Market Capitalization crosses a Trillion Rupees. 106 redevelopment
wells drilled in Mumbai High-Oil production increases from 218,000 barrels per day to
270’000 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 ONGC’S 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)


 1989-90 :: Oil/Gas production Installation (BHS)


 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

Organizational Structure

BOARD OF DIRECTORS:

Mr. R S SHARMA
(Chairman and Managing Director)

Mr. A K HAZARIKA Mr. N K MITRA
(Director, onshore) (Director, offshore)

Mr. D K PANDE Dr. A K BALYAN
(Director, Exploration) (Director, HR)

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

Mr. RAJESH V SHAH Mr. M M CHITALE

VISION

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 India’s 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. Exploration work

2. Development work
3. Drilling work
4. 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, GGS-
VI, 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 ONGC’s 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 MANAGER

GROUP GENERAL MANAGER

GENERAL MANAGER

DEPUTY
GENERAL MANAGER

CHIEF MANAGER

MANAGER

DEPUTY MANAGER

SENIO P & A
OFFICER

P&A OFFICER

ASSISTANT P& AO

HR VISION

“To attain organizational excellence by developing and inspiring the true
potential of company’s 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

Employees’s 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) ESTATE-
This 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 as-
A Type
B Type
C Type
D Type

TYPE ENTITLEMENT TOTAL AREA ALLOTMENT
A UNIONISED EMPLOYEE 385 SQ.FT
BASIC PAY-R.S.4300-6399
B UNIONISED EMPLOYEE 600 SQ.FT
BASIC PAY-R.S.7000 & ABOVE
EXECUTIVES OF E0 TO E2
C EXECUTIVES OF E3 TO E5 900 SQ.FT
D DGM(E6) & ABOVE 1500SQ.FT +200 SQ.FT
(SERVANT -
ROOM)

(3)INDUSTRIAL RELATION-

The 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 ACQUISITION-

It 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) (2) (3) (4)

CENTRALISED REGIONAL GRADUATE NEED BASED
TRAINING TRAINING TRAINING TRAINING

(1)CENTRALISED TRAINING-
The training is given to the employees from the head office.

(2)REGIONAL TRASINING-
The training is given at the particular asset of the ONGC.

(3)GRADUATE TRAINING-
This training is given to the temporary employees.

(4)NEED BASED TRAINING-
This type of training is given to the employees as per their requirement on the job and
In the terms of their job.

ONGC’S 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) (2) (3) (4)

DOWNWARD UPWARD HORIZONTAL DIAGONAL

(1)DOWNWARD COMMUNICATION-

The head communicates at the bottom level with the modes of rules and regulation
files,circulars,orders,politics.

(2)UP WARD COMMUNICATION-

The communication moves from bottom to top with the modes of fies and application,
suggestion or complaints.

(3)HORIZONTAL COMMUNICATION-

The communication moves from one department to other at the same level with the
modes of files.

(4)DIAGONAL COMMUNICATION-

The 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 Mode Experience Required
E0 – E1 Seniority –cum-fitness 2yrs. for Q1 qualified
4yrs. for Q2 qualified
6yrs. for Q3 qualified

E1 – E2 Quantification 4yrs. for Q1/Q2/Q3



E5 Above Selection on merit 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 3yrs. Experience

A-2 to A-3 6yrs. Experience

A-3 to A-4 -Do-

A-4 to S-1 -Do-

S-1 to S-2 5yrs. Experience

S-2 to S-3 -Do-

S-3 to S-4 -Do-

FOR CLASS 4:-

Eligibility for promotion from one level to next higher level with the requisite
experience:-

W-1 to W-2 3yrs. Experience

W-2 to W-3 6yrs. Experience

W-3 to W-4 -Do-

W-4 to W-5 -Do-

W-5 to W-6 -Do-

W-6 to W-7 -Do-

Eligibility 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 POLICY-

The 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 ONGC’s 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 company’s 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 company’s & 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)

'05-06 '06-07 '07-08 '08-09
Royalty 629 729 858 292
Cess 361 472 467 404
Sales Tax 107 0.1 0
Excise Duty 16 29 14 13
Education Cess 15 13
NCCD 9.5 8.26
TOTAL 1113 1230.1 1363.5 730.26

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 '05-06 '06-07 '07-08 '08-09
Statutory Charges 1123 1230 1358 732
Others 457 582 848 786
Total 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)

Crude Oil Natural Gas LPG Naptha Electricity TOTAL
2005-06 2466 473 64.5 114.08 7.7 3125.28
2006-07 2102 509 48.1 59.01 8.36 2726.47
2007-08 2008 475 68.84 57.7 8.3 2617.84
2008-09 1767 447 66.99 91.99 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)

SALES
REVENUE OTHERS TOTAL
2005-06 3125.28 126.62 3251.9
2006-07 2726.47 171.67 2898.14
2007-08 2617.84 163.81 2781.65
2008-09 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)

'05-06 '06-07 '07-08 '08-09
PROFIT 1589 1000 578 987

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 %)
2005-0
6 15,889,238,904 32,159,047,223 49.4
2006-0
7 10,009,840,558 27,264,918,351 36.71
2007-0
8 5,785,632,572 26,180,969,247 22.09
2008-0
9 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.
CAPITAL
YEARS EBIT EMPLOYED RATIO
2005-0
6 15889238904 27217678235 58.37
2006-0
7 10009840558 27289780467 36.67
2007-0
8 5785632572 27307035284 21.19
2008-0
9 9829271514 30347217866 32.39

RATIO
70

60

50

40

30 RATIO

20

10

0
2005-06 2006-07 2007-08 2008-09

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 2006-07 2007-08 2008-09
Inventory 2,039,710,402 2,428,260,173 2,946,083,066 3,080,687,252
Debtors 1,295,640,620 885,029,970 861,952,630 549,509,767
Cash & Bank 193,404 31,360 530,624 (6,661,551)
Loans & Advances 1,101,503,236 1185928063 1,290,881,673 1,483,280,282
Interest Accrued 194,590,639 202,026,183 208,193,954 213,877,699
Total 4,159,978,963 4,078,438,057 5,603,072,583 4,990,754,094

3,50,00,00,000

3,00,00,00,000

2,50,00,00,000
Inventory
2,00,00,00,000
Debtors
1,50,00,00,000 Cash & Bank
Loans & Advances
1,00,00,00,000
interest Accrued
50,00,00,000

0
2005-06 2006-07 2007-08 2008-09
-50,00,00,000

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 '06-07 '07-08 '08-09
Other Liability 124 116 229 233
Statutory Liability 11 37 73 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 2005-06 2006-07 2007-08 2008-09

4,631,638,30
CURRENT ASSETS 1 4,701,275,749 5,307,641,947 5,320,693,449
CURRENT
LIABILITIES 1366024881 1597228527 3027636003 2750747897
RATIO 3.39 2.94 1.75 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 2005-06 2006-07 2007-08 2008-09
2,591,927,89 2,240,006,19
QUICK ASSETS 9 2,273,015,576 2,361,558,881 7
CURRENT
LIABILITIES 1366024881 1597228527 3027636003 2750747897
RATIO 1.897423638 1.423099787 0.780000924 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) '05-06 '06-07 '07-08 '08-09
Stores & spares 192 230 283 297
CIOS 2 4 5 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 2005-06 2006-07 2007-08 2008-09
SALES 31259047223 27264918351 26180969247 23793892594
DEBTORS 1,295,640,620 885029970 861952630 549509767
COLLECTION
PERIOD= 14.92 11.68 11.85 8.35
RATIO 24.12 30.81 30.37 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) 2005-06 2006-07 '2007-08 2008-09
Gross Block 2531 2642 2770 2961
Depreciation 2194 2303 2431 2574
Net Block 337 339 339 387

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 2005-06 2006-07 2007-08 2008-09
3125904722 2618096924
SALES 3 27264918351 7 23793892594
WORKING
CAPITAL 3265613420 3104047222 2280005944 2569945552
RATIO 9.57 8.78 11.48 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
2008-09.

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