Amit Ongcproject 110217041529 Phpapp02

7/27/2019 Amit Ongcproject 110217041529 Phpapp02

1/77

A

Summer Training Report

Of

Oil & NaturalGas

Corporation Ltd. (ONGC)

Submitted To

SHREE P.M PATEL INSTITUTE OF BUSINESSADMINISTRATION

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)


2/77

PREFACE

In todays competitive world of business the value of Management is enhancingday by day. Management play important role. Without management organization cant run

successfully.

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 units 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, ANANDthe 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 the

best informations 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.


3/77

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 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 donethis work.

AMIT GANDHIS.Y. B.B.A


4/77

O.N.G.COIL AND NATURAL GAS CORPORATION LTD.


5/77

TYPE: - PSUFounded: - 1956

Headquarters: - Dehradun, IndiaKey people: - Radhey S Sharma, Chairman and MD

Industry: - Petroleum and GasEmployees: - 34,000

Website: - http://www.ongcindia.com
http://www.ongcindia.com/http://www.ongcindia.com/


6/77

Table of Contents


7/77

INTRODUCTION OF COMPANY

Oil and Natural Gas Corporation Limited (ONGC India) is considered Asia's 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 24th

among 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 Indias Crude Oil Production andmore than 75% of Indias Natural Gas Production.ONGC Ankleshwar is located in western part of India and its main objectives are

production, exploration, development and distribution of petroleum. Its drilling site 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 Himalayan

foothills. 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.


8/77

COMPANYSHISTORY: -

1947-1960:

Until 1955,private oilcompanies mainlycarried outexploration of hydrocarbonresources 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 between

Govt. 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:


9/77

Since its inception, ONGC has been instrumental in transforming the countryslimited 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 Companys 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 othersstock.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.


10/77

2004:

ONGCS Market Capitalization crosses a Trillion Rupees. 106 redevelopmentwells drilled in Mumbai High-Oil production increases from 218,000 barrels per day to270000 barrels per day. ONGC achieves near-zero gas flaring. 10% disinvestment of

ONGC highest in India receives unprecedented global investor response, brings in 20new FIIs to Indian equity market.

2005:

100% of ONGCS installations & institutions accredited with the highest safety

rating; ONGC becomes the only organization in the world to achieve the distinction. Oval

retail outlet launched in Mangalore ONGC becomes only Indian company to be present

across entire Oil & Gas chain from Drilling to Dispensing. The former President of India

Dr A P 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.


11/77


12/77

Company overview

Name of the companyO.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


13/77

Registrar & Share Transfer AgentKarvy Computershare Private Ltd.

Plot No. 17-24Vittal Rao nagar, madhapurHyderabad-500081 (A.P.)105-108, 1st FloorArunachal Building19, Barakhamba RoadNew Delhi-110001

Listed atBombay stock ExchangeNational Stock Exchange

DepositoriesNational 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)


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)


14/77

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 SouthGujarat chamber of Commerce and Industries (SGCCI) for 1997-98


15/77

Branches of ONGC in India


16/77

Organizational Structure


17/77

BOARD OF DIRECTORS:


18/77

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)


19/77

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.


20/77

Dominant Indian leadership

Retain dominant position in Indian petroleum sector and enhance Indias Energy

Availability.

Size of the unit and form of organization

Generally size of the unit is based on the total investment and total 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 approximately

26,000,000,000 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 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


21/77

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 collectivelearning 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


22/77

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


23/77

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.


24/77

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


25/77

1. Exploration work2. Development work3. Drilling work4. 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 of

extracting 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 GENERALMANAGER


26/77

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

CHIF MANAGER

MANAGER

DEPUTY MANAGER

SENIOR OFFICER

DY.SE

OFFICER


27/77

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. 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 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.


28/77

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 deepdrilling rig with dual completion and well having longer horizontal drill of 300-400 meters

were drill directionally. Some rigs are equipped with hi-tech equipments such as IRD

(independent rotary drive units) and top drive system.

RIG e-1400-7 was installed with the state of the art top drive drilling system for

the first time on ONGCs on land rig in gandhar. The rig has also been equipped with drill

watch which is an advanced drill digital instrumentation and is compatible for

transmission of data to head quarters though SCADA satellite connectivity for on-line

display and monitoring of rig operation.

PRODUCTION AREA IN ANKLESHWAR

AREA-I

(1)ANKLESHWAR

(2)MOTWAN

(3)SISODRA

(4)GANDHAR

(5)ANDADA

AREA-II


29/77

(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.


30/77

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.


31/77

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-


32/77

HR VISION

To attain organizational excellence by developing and inspiring the true

potential of companys human capital and providing opportunities for growth, well being

and enrichment

STRUCTURE STRUCTURE

ASSET MANAGER ASSET MANAGER

GROUP GENERAL MANAGERGROUP GENERAL MANAGER

GENERAL MANAGER GENERAL MANAGER

DEPUTY

GENERAL MANAGER

DEPUTY

GENERAL MANAGER

CHIEF MANAGERCHIEF MANAGER

MANAGERMANAGER

DEPUTY MANAGERDEPUTY MANAGER

SENIO P & A

OFFICER

SENIO P & A

OFFICER

P&A OFFICERP&A OFFICER

ASSISTANT P& AOASSISTANT P& AO


33/77

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.


34/77

(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


35/77

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


36/77

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


37/77

Employeess personal file

It is covering all the peculiar personal details of the personnel.it is

coordinating the personal information with service information.

(A) Personal information

It covers the details which gives identity himself,caste,religion,qualification etc.

(B) Service information

(A) Details of initial appointment in ONGC

(B)Subsequent promotion

(C) Earned leaves record(D) Extra ordinary leave

(E) Other type of leave

(2) 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

BASIC PAY-R.S.4300-6399

385 SQ.FT

B UNIONISED EMPLOYEEBASIC PAY-R.S.7000 & ABOVEEXECUTIVES OF E0 TO E2

600 SQ.FT

C EXECUTIVES OF E3 TO E5 900 SQ.FT

D DGM(E6) & ABOVE 1500SQ.FT +200 SQ.FT(SERVANT -

ROOM)


38/77

(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.


39/77

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.


40/77

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 possessingspecial merit, qualification or experience.

3) CATAGORIES OF POSTS, SCALES OF PAY, QUALIFICATION AND OTHERMATTERS 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


41/77

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 OFPERSON:-

In making appointment to posts, either by direct recruitment or promotion, the

corporation shall provide reservation and other concession to the candidates belonging tothe 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-


42/77

(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.

ONGCS TRAINING INSTITUTES

(1)INSTITUTE OF MANAGEMENT DEVELOPMENT (IMD)

(2)REGIONAL TRAINING INSTITUTE, VADODARA.

(3)REGIONAL TRAINING ISTITUTE, CHENNAI.

(4) REGIONAL TRAINING ISTITUTE, MUMBAI.

TRAINING

PROGRAMME

TRAINING

PROGRAMME

(1)

CENTRALISED

TRAINING

(1)

CENTRALISED

TRAINING

(2)

REGIONAL

TRAINING

(2)

REGIONAL

TRAINING

(3)

GRADUATE

TRAINING

(3)

GRADUATE

TRAINING

(4)

NEED BASED

TRAINING

(4)

NEED BASED

TRAINING


43/77

(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-

(1)DOWNWARD COMMUNICATION-The head communicates at the bottom level with the modes of rules and regulation

files,circulars,orders,politics.

COMMUNICATION

CHANNEL

(1)

DOWNWARD

(2)

UPWARD

(3)

HORIZONTAL

(4)

DIAGONAL


44/77

(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 qualified6yrs. for Q3 qualified

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


45/77



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 requisiteexperience:

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-


46/77

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.


47/77

(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 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 ONGCs oil and gas sales.

Major oil and gas fields

1. Ankleshwar field (found in 1960).2. Gandhar field (found in 1984).

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


48/77

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 Ankleshwaris 56.


49/77

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.


50/77

This section records each and every transaction under the respective books of

accounts.

As this section has to face Audits like Internal Audit, External Audit, Statutory Audit,

Tax Audit etc, it has to be very diligent and steadfast in its work.

This section is responsible for the following functions:

1. Maintenance of companys as a whole at headquarter and at

representative assets.

2. Preparation and submission of monthly trial balance and periodical statements of

accounts, returns etc.

3. Maintenance of cost element sub-ledger and their verification with the journal

ledger accounts.

4. Submission of data for the preparation of income tax return.

5. Area wise accounts.

6. Producing property accounts.

7. Inter-unit transactions.


51/77

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.


52/77

c. Employees of the organization

3. FEES & DEPOSITS

Various fees for issuing tender forms to our suppliers are collected by

Cash & Bank section.

Deposits include EMD and SD as follows:

a. Earnest Money Deposit (EMD) avoids any situation of contractors

withdrawing from their duty after the tender is allotted to them.

b. Security Deposit (SD)- 10%of the total tender amount deducted by

ONGC in order to ensure that the contractors perform efficiently, which is

repayable on satisfactory performance.

3. MANAGEMENT INFORMATION SYSTEM (MIS)

Major activities under the MIS:

1. BANK RECONCILIATION STATEMENT (BRS)

A BRS is the result of comparison between bank balance as per bank book

maintained at the companys & balance as per bank account at the end of bank.

It is the entity to determine the level of internal check & accuracy to warn the

company of any fraud/errors.

2. CASH FORECAST


53/77

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 oftheir 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:


54/77

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


55/77

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

EXPENDITUREStatutory Payments (Rs.in crores)


56/77

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)

'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


57/77

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

REVENUESales Revenue (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


58/77

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)


59/77

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)

SALESREVENUE 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


60/77

The 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 %)

2005-06 15,889,238,904 32,159,047,223 49.4

2006-07 10,009,840,558 27,264,918,351 36.71

2007-

08 5,785,632,572 26,180,969,247 22.092008-09 9,829,271,514 23,793,892,594 41.31

Net profit ratio :-

'05-06 '06-07 '07-08 '08-09

PROFIT 1589 1000 578 987


61/77

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.


62/77

Return on Capital Employed (ROCE)

= Profit Before Interest and Tax / Capital Employed * 100This ratio indicates the efficency with which management has effectively utilized

funds or capital employed. Higher the rate of return on capital employed, greater will be

the efficiency.

YEARS EBITCAPITAL

EMPLOYED RATIO

2005-06 15889238904 27217678235 58.37

2006-07 10009840558 27289780467 36.67

2007-08 5785632572 27307035284 21.19

2008-09 9829271514 30347217866 32.39

0

10

20

30

40

50

60

70

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

RATIO

RATIO


63/77

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 194,590,639 202,026,183 208,193,954 213,877,699Total 4,159,978,963 4,078,438,057 5,603,072,583 4,990,754,094

-50,00,00,000

0

50,00,00,000

1,00,00,00,000

1,50,00,00,000

2,00,00,00,000

2,50,00,00,000

3,00,00,00,000

3,50,00,00,000

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

Inventory

Debtors

Cash & Bank

Loans & Advances

interest Accrued

From 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


64/77

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

Rs.275 Crores .

LIQUIDITY RATIOCurrent Ratio

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

CURRENT ASSETS4,631,638,30

1 4,701,275,749 5,307,641,947 5,320,693,449

CURRENTLIABILITIES 1366024881 1597228527 3027636003 2750747897

RATIO 3.39 2.94 1.75 1.93


65/77

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.


66/77

Quick ratio

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

QUICK ASSETS 2,591,927,899 2,273,015,576 2,361,558,881 2,240,006,197

CURRENTLIABILITIES 1366024881 1597228527 3027636003 2750747897

RATIO 1.897423638 1.423099787 0.780000924 0.814326242


67/77

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


68/77

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


69/77

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


70/77

Debtors

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

SALES 31259047223 27264918351 26180969247 23793892594

DEBTORS 1,295,640,620 885029970 861952630 549509767

COLLECTIONPERIOD= 14.92 11.68 11.85 8.35

RATIO 24.12 30.81 30.37 43.3


71/77

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 ASSETFIXED 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


72/77


73/77

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


74/77

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

SALES3125904722

3 272649183512618096924

7 23793892594

WORKINGCAPITAL 3265613420 3104047222 2280005944 2569945552

RATIO 9.57 8.78 11.48 9.26


75/77


76/77

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.


77/77

Documents

Amit Ongcproject 110217041529 Phpapp02