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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 enhancingday by day. Management play important role. Without management organization can’t runsuccessfully. As a part of BBA curriculum and being a management studentIndustrial visit is the part of and parsed of our studies. This is the era of company valueand remarkable sale for increasing development of industry unit’s business administrationemerges financial as well as distributive selection. I had joined BBA course I am a studentof 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 meto understand my theoretical part more deeply. I have tried to insert the correct and thebest information’s as available me and at least. I had done my best to present this aseffectively 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 analyzethat I am not only the trainee; there are lot of people who take training in ONGC. So it ischallenging job to differentiate from others.
ACKNOWLEDGEMENT The success of any task lies upon the efforts made by a person but it cannot beachieved without co-operation of others. So I would like to thank Shree P.M.Patel InstituteOf Business Administration, Anand, Gujarat. For giving me the opportunity of doingGeneral Training and Project work as a special subject and provides such a wonderfulplatform to represent ourselves as BBA students. We are grateful to ONGC for letting us to do this project. We express our gratitudeto 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 pathstep 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 myregrets and sense of gratitude to my guide Mr. R.P.kuldeep (Finance & Accounts) andalso Mr. Manish Chanchal (H.R-ER). It is due to his encouragement, valuable guidanceand 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 donethis work. AMIT GANDHI S.Y. B.B.A
INTRODUCTION OF COMPANY Oil and Natural Gas Corporation Limited (ONGC India) is considered Asias bestOil & Gas Company. It ranks as the second biggest E&P company (and first in terms ofprofits), as per the Platts Energy Business Technology (EBT) Survey 2004. It ranks 24thamong Global Energy Companies by Market Capitalization in PFC Energy 50 (December2004). ONGC was ranked 17th until March 2004, before the shares prices droppedmarginally for external reasons. Oil and Natural Gas Corporation Limited was first set up as a commission onAugust 14, 1956. The Company later on became corporate on Feb, 1994. The companynow has become into Exploration and Production Company of the highest quality. ONGCwas the first corporate to register a five digit profit figure in the year 2002-03. Itcontributes to economy of India about more than 70% of India’s Crude Oil Production andmore than 75% of India’s Natural Gas Production.ONGC Ankleshwar is located in western part of India and its main objectives areproduction, exploration, development and distribution of petroleum. Its drilling site islocated 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 refreshmentsitems for the employees. Company has also a township build up for its employees whichprovides accommodation, sport and recreation facilities to its employees. Security facilityis also outstanding. Families of employees are given free medical treatment andeducational support. The first well was drill by ONGC in 1957 at Jwalamukhi in North West Himalayanfoothills. The onshore Ankleshwar giant field was discovered in 1960. Gas stock atmannera tibba in Rajasthan in 1967.Ankleshwar Asset located in south Gujarat region in Bharuch District is the largest. It isbeing 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 isthe 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, ONGChas offices in seven cities and training institutes in four locations.
COMPANY’S HISTORY: -1947-1960: Until 1955,private oilcompanies mainlycarried outexploration ofhydrocarbonresources of India.In Assam, the Assam Oil Company was producing oil at Digboi (discovered in 1989 andthe 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 inAssam. In West Bengal, the Indo-Stanvac Petroleum project (a joint venture betweenGovt. Of India & Standard Vacuum Oil Company of USA) was engaged in explorationwork.In 1955, Govt. of India decided to develop the oil and natural gas resources in the variousregions 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 officeunder the Ministry of Natural Resources and Scientific Research. The Department wasconstituted 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 placedmineral oil Industry among the schedule “A” industries, the future development of whichwas to be the sole & exclusive responsibility of the state. Soon, after the formation of theOil & Gas Directorate, it becomes apparent that it would not be possible for theDirectorate with its limited financial & administrative powers as subordinate office of theGovt., to function efficiently. So in August 1956, the Directorate was raised to the statusof a commission with enhanced powers, although it continued to be under the Govt. InOctober 1959, the Commission was converted into a statutory body by an act of theIndian Parliament, which enhanced powers of the commission further.The main functions of the Oil & Natural Gas Commission subject to the provisions of theAct, were to plan, promote, organize & implement programs for development of PetroleumResources & the production & Sale of Petroleum products produced by it, and to performsuch other functions as the Central Govt. may from time to time, assign, to it.” The actfurther 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’slimited upstream into large viable playing fields, with its activities spread throughout India& significantly in overseas territories. In the inland areas, ONGC not only found newresources 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 BombayHigh, now known as Mumbai High. This discovery, along with subsequent discoveries ofhuge 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, ONGCwas 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 tothat 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 itsemployees.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’sstock.This paved the way for long-term strategic alliances both for the domestic & overseasbusiness opportunities in the energy value chain, amongst themselves. Consequently, tothis the Govt. sold off 10% of its share holding in ONGC to IOC & 2.5% to GAIL. Withthis, the Govt. holding in ONGC came down to 84.11%.2002-03: After taking over MRPL from the AV BIRLA GROUP, ONGC diversified into thedownstream sector, ONGC will soon be entering into the retailing business. ONGC hasalso entered the global field through its subsidiary, ONGC Videsh Ltd. (OVL). ONGC hasmade major investments in Vietnam, Sakhalin & Sudan & earned its first hydrocarbonsrevenue from its investments in Vietnam.
2004: ONGC’S Market Capitalization crosses a Trillion Rupees. 106 redevelopmentwells drilled in Mumbai High-Oil production increases from 218,000 barrels per day to270’000 barrels per day. ONGC achieves near-zero gas flaring. 10% disinvestment ofONGC highest in India – receives unprecedented global investor response, brings in 20new FIIs to Indian equity market.2005: 100% of ONGC’S installations & institutions accredited with the highest safetyrating; ONGC becomes the only organization in the world to achieve the distinction. Ovalretail outlet launched in Mangalore ONGC becomes only Indian company to be presentacross entire Oil & Gas chain from Drilling to Dispensing. The former President of IndiaDr A P J2006:- 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 inoverseas E&P activities. It acquired 11 E&P projects in 6 countries during the year.2008:- ONGC signed Memorandum of Understanding with- Institute of EnergyTechnology, Norway, Shell.
Company overview Name of the company O.N.G.C (Oil and natural gas corporation ltd.) Establish yearAugust 1956 Key peopleRadhey .S. Sharma Company secretaryS.P.Garg Registered officeJeevan Bharti Building, Tower-2124, Indira Chowk, New delhi-110001 Corporate officeTel Bhavan Deharadun-248003Uttarakhand BankersState Bank of India SubsidiariesONGC Videsh Ltd.Mangalore Refinery & petrochemicals Ltd.ONGC Nile Ganga B.VONGC Nile Ganga (Cyprus) Ltd.ONGC campus Ltd.ONGC Narmada Ltd.ONGC Do Brazil Exploration Ltd.ONGC Nile Ganga (San Cristobal) B.VONGC Amazon Alakhanda Ltd. Statutory AuditorsK K Soni & co.S C Ajmera & co.PSD AssociatesSingni & 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. AwardsONGC 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 1996-97Organized 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
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 VISIONTo be a World Class, Oil and Gas Company integrated in Energy business with dominantIndian leadership and global presence. MissionWorld 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 EnergyAvailability. Size of the unit and form of organization Generally size of the unit is based on the total investment and total employmentmade by particular unit. While form of organization is decided on the basis of internalrelationships, authority and responsibility to concerned departments. According to latest small-scale industry which is having investment more than 100corers plant and machinery is considered as large-scale unit. While the employment madeby particular industry is based on factory act. Factory act shares the detailed informationregarding the employment for different industry. As the ONGC Ltd. Having approximately26,000,000,000 as per the factory act thus ONGC is a large scale unit and it gets thebenefit that every scale unit gets. ONGC Ltd. Company. Its shares available in stock market fir purchase and resaleby public. It is also public sector unit. CORE VALUESSENSE 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 DETAILSONGC was established on 14th August 1956. And was know as OIL & NATURAL GASCOMMISSION, Which was earlier, a part of geographical survey of India.
From 1st of Feb 1994 onwards ONGC Commission became Oil and Natural GasCorporation 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 ASSETAnkleshwar asset or plant is mother of ONGC started in 1960. It comes under Barodaregional office of ONGC. Production of Oil & Gas was commenced in 1961. It is thelargest onshore asset or plant of ONGC. It makes second highest profit after MUMBAIHIGH.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, GGSMotwan, Andada and other installations namely Main Pump House, Water TreatmentPlant and Intake well at Kathor on Tapi river. The Ankleshwar installations are locatedwithin 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 AnkleshwarcityAnkleshwar CTF has facility for processing of crude oil to meet refinery specifications, oneLPG plant, Gas compressor plant and one effluent treatment plant. Typical AnkleshwarGGS 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 doneonly at CTF. Some GGS has low pressure gas compressors. Low pressure gas is eithercompressed & sent to CTF or sent to CTF through low pressure gas lines & iscompressed in Gas compressor plant at CTF.
IntroductionOil and Natural Gas Corporation Ltd. is the Top most leading company of India hasscattered 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 itsown drilling work. The ONGC is searching the land by is Geology departmentwhere there is possibility of prevailing Oil and the Exploration function is to bestarted to justify whether there is oil availability in the land or not so, the primaryfunction is started with the Exploration work. After the successful signal of theExploration department the work of the development is begun where the area isdeveloped with the pipes, mud, chemicals etc. The drilling work is started with theend 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 beknown as Dry will. If the oil is to be found out then the production work ofextracting the developed area is to be started. The extraction work is to be done inthe ONGC but it does not work for the purification and the bifurcation. It directlysells 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 theproduction 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 gandharsector.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 aresatellite 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 pumphouse, water treatment plant and intake well at kathor on tapti river. The ankleshwarinstallations 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 50kms away from ankleshwar. Ankleshwar CTF has facility for processing of crude oil to meet refineryspecifications, one LPG plane based on cryogenic technology, gas compressor plant andone effluent treatment plant. Typical ankleshwar GGS has facility for receiving oil and gasfrom wells. High pressure (above 6kg/cm2) oil and natural gas is directly sent to CTF afterseparation. Low pressure oil is stored in the tank and pumped to CTF. The processing ofcrude oil to meet refinery specification can be done only at CTF. Some CTF has lowpressure gas compressors. Low pressure gas is either compressed and sent to CTFthrough low pressure gas line and is compressed in gas compressor plant at CTF. GGSalso 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 therich high pressure gas available centrally at CTF from which LPG and naphtha isproduced. GGS operation thus remains simple. Water from intake water well is treated atkathor water treatment plant and sent to main pump house for water injection into thereservoir for its pressure maintenance. Water for main pump house is also used atankleshwar colony for house hold purpose. High pressure lean gas is received at GCSmotwan from Hazira plant for use in gas lift wells.GANDHAR SECTOR:- This divided into gandhar field and north gandhar fields. Gandhar is the mainfield and other satellite fields are dahej, pakhajan, dabka, nada, sarbhan, kural-gajera andjambusar. Surface facilities for gandhar field comprises of central processing facilitynamed 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 waterintake and treatment plant at zanore where water is lifted from river narmada. Gandharinstallations are more or less 75 kms away from Ankleshwar city.
GGS-dabka, GGS-north gandhar have facility to process oil to refineryspecifications and other typical GGS facility. Processed oil is pumped from CTF, CTF tokoyali 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 theyear 1960 at well no Ankleshwar -1 later on christened as “VASUDHARA” by panditJavaharlal Nehru, first prime minister of India. This rig had drilled well nos. 1, 2, 5, and 6successfully in Ankleshwar field during the drilling of Ankleshwar 7. During the year 1993-94, Ankleshwar project was operating maximum 22numbers of drilling rigs both own and charter hired. Deeper wells were drilling with deepdrilling rig with dual completion and well having longer horizontal drill of 300-400 meterswere 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 forthe first time on ONGC’s on land rig in gandhar. The rig has also been equipped with “drillwatch” which is an advanced drill digital instrumentation and is compatible fortransmission of data to head quarters though SCADA satellite connectivity for on-linedisplay and monitoring of rig operation.PRODUCTION AREA IN ANKLESHWARAREA-I(1)ANKLESHWAR(2)MOTWAN(3)SISODRA(4)GANDHAR(5)ANDADAAREA-II
(1)KOSAMBA(2)KIM(3)OLPAD(4)ELAOAREA-III(1)GANDHAR(2)DAHEJ(3)PAKHAJANAREA-IV(1)NADA(2)JAMBUSAR(3)DABKA(4)SARBHAN(5)DEGAM PRODUCTION PROCESS OF ONGCStep 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 dataavailable. On the basis of estimation a production facilities and other installation is madeat that particular field.
Step 3. After installation of production facilities drilling process start. They do drilling bytwo 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 otherhydro carbon from the earth. Along with Tubing pipes, Casing pipes are also attached withit to provide support to it.Step 5. The crude oil extract from well is transferred to GGS (Group Gathering Section) forseparation of Natural Gas from Crude Oil. GGS is a separator which have dome likestructure from which Natural Gas is separated from upper side of machine as it is light ascompared to Crude Oil. The Natural Gas separated is transfer to GAIL. The Crude Oil thatremains is the mixture of Crude oil and Water.Step 6. The mixture of Crude oil and water is transfer to CPF (Central ProcessingFacilities). CPF is Heater-Treater machine water is burnt without allowing oxygen to enterin process in order to convert water into gas so that water can be separated from crudeoil.
Step 7. The crude oil after processing in CPF is ready for sale which is transferred toRefineries such as IOCL, BPCL & HPCL through pipelines.Human resource departmentHIERARCHY 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& AOHR VISION “To attain organizational excellence by developing and inspiring the truepotential of company’s human capital and providing opportunities for growth, well beingand enrichment”
HR MISSION “To create a value and knowledge based organization by including a cultureof learning, innovation & team working and aligning business priorities with aspiration ofemployees leading to developing of an empowered, responsive and competent humancapital”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 iscoordinating 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 ofallotting the quarters is to be done in the month of August. It is to be classified as- A Type B Type C Type D TypeTYPE ENTITLEMENT TOTAL AREA ALLOTMENTA UNIONISED EMPLOYEE 385 SQ.FT BASIC PAY-R.S.4300-6399B UNIONISED EMPLOYEE 600 SQ.FT BASIC PAY-R.S.7000 & ABOVE EXECUTIVES OF E0 TO E2C EXECUTIVES OF E3 TO E5 900 SQ.FTD 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 unionThere 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 andExtracting 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 SELECTION1) 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, thecorporation shall provide reservation and other concession to the candidates belonging tothe schedule casts, the scheduled Tribes, the other Backward cases, the physicallychallenged Handicapped, the Ex-servicemen and other special categories of persons inaccordance with the order issued by the Central Government from time to time in thisregard with respect to reservation of posts under the control of that Government tocandidates belonging to the Scheduled Casts, Scheduled Tribes and other specialcategories 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 regulationfiles,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 themodes of files.
(4)DIAGONAL COMMUNICATION-The subordinate of one department communicates directly to the superior of otherdepartment with the modes of files or suggestion PROMOTION AND TRANSFER POLICY A promotion may be defined as an upward advancement of an employee in anorganization to another job. Which commands better pay / wage better status / prestigeand higher opportunities / challenges and authority, better working condition and facilitiesat a rate?PROMOTION FOR EXECUTIVES:- Level of promotion Mode Experience RequiredE0 – E1 Seniority –cum-fitness 2yrs. for Q1 qualified 4yrs. for Q2 qualified 6yrs. for Q3 qualifiedE1 – E2 Quantification 4yrs. for Q1/Q2/Q3E2 – E3 Quantification 5yrs. for Q1/Q2/Q3E3 – E4 Quantification 4yrs. for Q1/Q2/Q3E5 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 requisiteexperience:A-1 to A-2 3yrs. ExperienceA-2 to A-3 6yrs. ExperienceA-3 to A-4 -Do-A-4 to S-1 -Do-S-1 to S-2 5yrs. ExperienceS-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 requisiteexperience:-W-1 to W-2 3yrs. ExperienceW-2 to W-3 6yrs. ExperienceW-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 whopossess less than laid down qualification would be one year more than the specifiedperiod. The Department Promotion Committee keeping in view their service recordsunder the seniority – cum – fitness criteria will consider suitability of eligibility employeesfor promotion to next grade.TRANSFER POLICY-The transfer does not change the status ,authority and responsibilitybut it changes workplace 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 /functionalheads are the basis for job rotation/transfer. Organization needs will be the primedetermining factor.(4)Female employees up to E4 level may not generally be transferred to NE status or tooffshore area, except at their own request or on operational ground.(5) Executives who have completed their tenure at Newman not to be transferred tokaraikal.(6)Field party personal is working physically for 5 years is NE sector their treated to havecompleted their tenure in NE sector.(7)In case of shortfall for 150/120 days in the third year,Their relieving date will beextended 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 rate120 days.
(9) Executives posted to NE sector should join by 31-May of that year are required tocomplete tenure of 3years duration from the date of their joining.Finance DepartmentIntroductionFinance department is the most important part in any organization. This departmentcovers 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 AccountsAt Ankleshwar asset head of finance department is DGM, under him presently there arefour managers to control and perform different in various sections of finance department.There are officers under each manager. Currently strength of finance dept. of Ankleshwaris 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 section3.1.3 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 Scheme5. 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. ServicesPROFITABILITY ASPECTSEXPENDITUREStatutory 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 1363.5 730.26Here 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 1518The Table & Graph shows that the fall in total expenditure in 2008-09 due to fall instatutory payments.REVENUESales 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 2378.78Here we can see that sales revenue of crude oil fall every years whereas the revenuefrom 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 2500.15The table & Graph represent the trend of total revenue over these years. We can see thatthe 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 987The graph shows that the profit falls to almost 64 % from 2005-06 to 2007-08. but in year2008-09 it shows a upward trend as the total expenditure fall in this year.PROFITABILITY RATIONet 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 41.31Net profit ratio :-
Here we can see that N P ratio fall from 49.4% to 22.09 % in year 2005-06 to 2007-08due to fall in sales in these years . But in 2008-09 it rise to 41.31 % as there is fall in totalexpenditure 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 utilizedfunds or capital employed. Higher the rate of return on capital employed, greater will bethe 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 whichleads to fall in ROCE. But in year 2008-09 due to increase in the EBIT there isimprovement in ROCE. LIQUIDITY ASPECTSCurrent 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 -50,00,00,000From the above graph we can see that the amount of capital blocked in inventory are risesevery year which is not a good sign for company while investment in debtors fall whichshows 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 toRs.275 Crores .LIQUIDITY RATIOCurrent 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 standardAccounting Current Ratio 2:1 which is good for company but it falls to 1.75:1 and 1.93:1 inyear 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 thanthe 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
As the Debtors are falling from 129.56 Crores to Rs. 54.95 Crores there is fall in the Debtcollection period from 15 days to 8 days. Now the company enable to collect the debtfaster.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 previousyears.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 generatingsales. This ratio was 9.28 in 2005-06 which was decreased to 8.04, 7.72, and 6.14 in year2006-07, 2007-08, and 2008-09 respectively.Working capitalYEARS 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 workingcapital Turnover Ratio represent the efficient utilization pf working capital for generatingsales. This ratio fluctuates over the periods. In year 2005-06 it was 9.57 which reduced to8.78 in 2006-07. But it increased to 11.48 in year 2007-08 and again fall to 9.26 in2008-09.