BHARAT PUMP AND COMPRESSORS LIMITED (A GOVT.

OF INDIA UNDERTAKING ENTERPRISRE) NAINI- ALLAHABAD

A PROJECT REPORT OF SUMMER TRAINING ON WORKING CAPITAL MANAGEMENT MASTER OF BUSINESS ADMINISTRATON (2011-2012) TRAINING DURATION (12/06/2012 To 26/07/2012) SUPERVISED BY:Mr. Dr. Vishnu P. Mishra SUBMITTED BY:VIPIN KUMAR MISHR MBA 3RD SEM l.D. No-11110115 Roll No. 1101170115

UNITED INSTITUTESOF MANAGEMENT NAINI, ALLAHABAD

CERTIFICATE

This is certified that Mr.VIPIN KUMAR MISHRA MBA student,UIM naini, Allahabad session 2011-2012 has successfully completed the project work entitledWORKING CAPITAL MANAGEMENT . Under my guidance and supervision. Their work is genuine and original an has not submitted so far any other MBA student.

Date:-

Mr. N.A. Khan Finance Manager BPCL Naini Allahabad

DECLARATION

I, solemnly declare that project work entitled:- Working Capital Management in BPCL is bona fide project work carried out by me, under guidance of Mr. N. A. Khan ( finance manager) BPCL I further declare that the best of my knowledge that the work presented in this project report is original and genuine.

Date:-

Vipin kumar mishra MBA 3RD SEM Roll No. 1101170115

ACKNOWLEDGEMENT I am glad to express my extreme thank and feeling of deep gratitude, indebtedness and reverence to my esteemed supervisor Mr. R.H.M.John , who has always show exemplary keenness and interest in the process of project work. His

valuable guidance, timely suggestion and constant fatherly information made it possible for me to complete present shape and at due date. I express my sincere thank to Dr. Vishnu P. Mishra for providing me valuable help in accomplishment of this project work. Also I pay my heartiest thank to Mr. O. P. Shukla, U.C. Sharma and V.S. Singh (training incharge) for valuable suggestion to me at time to time. At last but not least I am thank full to all employee of BPCL, Naini- Alld, who provided their full support and co-ordination during my training by giving me sufficient knowledge related to my topic and organizational environment. The completion of this project is the result of valuable guidance, constructive suggestion, keen interest and eminent supervision of all the training officer and every experienced employee of BPCL Vipin kumar mishra MBA 3RD SEM Roll No.-1101170115 EXECUTIVE SUMMARY The objective of my project is the Working Capital Management in BPCL. Objective of the report is to analyze and understand the Impact of leverage on profitability of the firm. This report investigate the relationship between leverage( operating, financial and combined) and earning per share. it aims to describe how the earning capacity of the firm is influenced by the fixed operating costs and the fixed financial charges. Other tools like skew ness and kurtosis are applied to examine Lack of symmetry used to understand the distribution of data and Flatness or peaked ness. The results suggest that the leverage and profitability and growth are related and the leverage is having impact on

the profitability of the firm. Financial ratio analysis is the selection, evaluation and interpretation of financial data, along with the other pertinent information, to assist in investment and financial decision-making. Financial ratio analysis may be used internally to evaluate employees performance, the efficiency of operation and credit policies, and externally to evaluate potential investment, credit worthiness of borrower among other things.

TABLE OF CONTENT ACKNOWLEDGEMENT EXECUTIVE SUMMARY CERTIFICATE CHAPTER 1. HISTORY OF COMPANY 2. VISSION,MISSION AND OBJECTIVE 3. THE GROUP 4. ISO CERTIFICATION 5. ISO CERTIFICATE 6. PROFILE 7. CAPABILITIES 8. MANAGEMENT STRUCTURE 9. TYPE OF POST 10. ORGANIZATON CHART 11. PRODUCT & SERVICES 12. OFFICES AND CONTACT ADDRESSES PAGE NO.

13. IMPORTANT CLIENT 14. WORKING CAPITAL 15. WORKING CAPITAL MANAGEMENT 16. INVENTORY MANAGEMENT 17. CORPORATE FINANCE 18. CAPITAL INVESTMENT DECISION 19. FINANCIAL RISK AND MANAGEMENT 20. PERSONAL AND PUBLIC FINANCE 21. COMPETENCY 22. CUSTOMER STISFACTON 23. MANUFACTURING UNIT 24. MANAGEMENT INFORMATION SYETEM 25. BALABNCE SHEET 26. PROFIT AND LOSS ACCOUNT 27. GRAPHICAL PRESENTATION OF TURNOVER,VALUE ADDED PER EMPLOYEE,NET PROFIT BEFORE TAX,NET WORTH 28. TEN YEAR DIGEST 29. STATEMENT COST OF GOODS SOLD 30. DATA ANALYSIS 31. CONCLUSION 32. BIBLIOGRAPHY

HISTORY OF THE COMPANY

HISTORY OF COMPANY

Bharat pumps and compressors limited incorporated in 1-jan-1970 in Naini at trans of yamuna area of Allahabad and commercial activities started in 1973 with the objective to design, manufacture and supply of capital goods in the fluid handling field including provision of services connected there with. BPC which caters to the need of core sectors of economy such as oil exploitation and exploration, refineries, petro-chemicals and fertilizers process industries, nuclear and thermal power plants, had in its earlier phases entered in to technical collaboration with world renowned manufactures to indigenously design and manufacture heavy duty centrifugal and reciprocating pump, reciprocating compressors and high pressure gas cylinders and other hi-tech oil field equipment such as cementing units, sucker rod pumps etc. In a very short span, the company absorbed the technology and established itself as a world renowned manufacturer of wide range of hi-tech products. BPC has supplied its products to the total satisfaction of customers in almost all national projects of companies like ONGC, OIL, BPCL, IOCL, HOC, RCF, Nuclear power corporation, Dept. Atomic Energy, IPCLETC.

THE GROUP

THE GROUP

Like many others impart substitution oriented public sector undertakings BPCL also have to face various constrains because of long gestation period of profitability. By the time company could start showing result ,the growing international competition effectively. Group of six premier sector engineering undertaking namely are : Bharat pumps and compressors limited, Allahabad Bharat heavy plates & Vessels Ltd, Vizag Richardson and Cruddas Ltd, Kolkata Bridge and Roof Co. (INDIA) Ltd, Kolkata Triveni structureal Ltd, Allahabad Tungbhadra Steel Product Ltd, Hospet (Karnatka)

Was formed in year 1987 under the holding company Bharat Yantra Nigam Ltd. Having its head office at Allahabad , the collective and integrated strength of the group augur well for its future roll as a strong and viable engineering group.

ISO CERTIFICATION

ISO CERTIFICATION

Bharat pumps and compressors limited, naini- Allahabad is a certified integrated management systems company having ISO 9001/2000,ISO 14001/2004, OHSAS 18001/1999 includes environment, occupational health and safety management systems, with the objective to design , manufacture and supply capital goods in the fluid handling field including provision of services connected there with, BPC catters to the need of core sector of the economy such as oil exploration and exploitation, refineries,petro chemicals, chemicals and fertilizer process industries and power plant and indigenously designs and manufacture heavy duty centrifugal pumps, reciprocating pumps, reciprocating compressors and high pressure seamless gas cylinders and other high tech oil field equipment such as cementing units, sucker rod pumps etc

ISO CERTIFICATE

BPCL-NAINI (An Overview)

LOCATION- NAINI Naini is a satellite township of the city of allahabad, located on the banks of river yamuna and developed into an industrial centre. Some other manufacturing organizations located in Naini are ITI, TSL, AREVA, SAIL, etc.

About: Bharat pump & compressor ltd.,, Naini , allahabad is a certified integrated management systems company having ISO 9001:2000, ISO 14001:2004, OHSAS 118001:1999 Includes Environment, occupational health & safety Management systems, with the objective to design, manufacture and supply capital goods in the fluid handling field including provision of services connected therewith. BPC caters to the need of core sector of the economy such as oil exploration and exploitation, refineries, petro-chemical, chemicals and fertilizers, process industries and power plants and indigenously designs and manufactures heavy duty centrifugal pumps, reciprocating pumps, reciprocating compressors and high pressure seamless gas cylinders and other hi-tech oil field equipments such as cementing units, sucker rod pumps etc.

BPC : VISION To become an Indian MNC in the field of fluid handling, gas compression, gas storage equipment, services and project management.

BPC : MISSION To provide quality products and services to core sector industries with special thrust on oil and natural gas, petro chemicals, refineries, nuclear and thermal

power plants, fertilisers and public transport services complying to health and safety requirements.

BPC : OBJECTIVES To increase market share of their products and services. To maximise customers satisfaction by providing quality product and services within stipulated delivery. To increase the business of spares and rendering prompt after sales service including refurbishment.

PORFILE

PROFILE

Bharat pumps and compressors ltd, the public sector corporate enterprise, was incorporated in 1970 with manufacturing facility at naini , Allahabad, India

Mission and objective of the company is to research, design and develop, manufacture and supply capital goods in the fluid handling field including provision of services connected there-with, to cater the need of Oil exploration and exploitation, refineries, petro-chemicals, chemicals and fertilizer, power sectors and process and down stream industries. The corporate philosophy also involves approach for total quality management (TQM) and total productive maintenance (TPM) in order to achieve and sustain a reputation for quality at a competitive cost, in national and international markets for our products and services through collective involvement of all. BPC is the only company in Asia to manufacture a wide range of hi-tech products, heavy duty pumps and compressors and high pressure seamless and welded gas cylinders, under one roof. Such high valued hi-tech products are functioning to the total satisfaction of the customers with least maintenance cost and optimum energy conservation.

CAPABILITIES

CAPABILITIES

BPC, the ISO 9001:2000,ISO 14001:2004, OHAS 18001:1999 Company, manufacture highly technically sophisticated and environmentally friendly products, equaling international standards of quality and performance with the help of most modern and sophisticated machining cater having latest CMC machines, assembly, testing,heat treatment and fabrication workshops. TEST FACILITIES The factory is equipped for full load testing of various parameter for complete product rang up to 2000 KVA. QUALITY ASSURANCE Quality assurance department ensure that the products ( pumps and compressors) meet the specification of international codes such as API and are fully guaranteed for performance on the basis of proven and the most updated designs. Gas cylinder are manufactured as per specification of international standard such as DOT, BS, BIS, ISO etc. and usage approval agencies. from recognized national/international

BOARD OF DIRECTORS

TYPE OF POST

 SUPERVISIORS

MD CGM GM DGM SR.MANAGER MANAGER SR. ENGINEER/OFFICER OFFICER/ ENGINEER

01 02 03 13 14 45 60 13 48

ASSISTANT ENGINEER FOREMAN/OFFICE SUPRINTEDENT CHARGEMAN 18

15 01

NON-EXECUTIVES (WORKERS) CHIEF FOREMAN SR. FOREMAN 284 FOREMAN (W.) SR. TECHNICIAN HIGH SKILLED WORKER 31 SKILLED WORKER (GRADE 3) 26 SKILLED WORKER (GRADE 2) 10 SKILLED WORKER (GRADE 1) 10 143 51 151

SEMI SKILLED WORKER 21 UNSKILLED WORKER 05 965

TOTAL

ORGANIZATINAL CHART

PRODUCT

PRODUCT

Pump and compressors

1 2 3 4 5 6

Centrifugal Pumps Pumps for application in power plants. Reciprocating piston and plunger pumps Cementing units. Sucker rod pumping unit. Reciprocating compressors.

1 Gas cylinder 2 3

High pressure seamless industrial gas cylinders. Welded cylinders. Cylinders in Cascade for storage of compressed natural gas (CNG)

Rang of products Maximum 2500 KW power Maximum 140 kg/cm2 pressure Maximum 12,000 M3/Hr capacity Fluids handled Dematerialized water, sea water, hydrocarbon, neptha, LPG, carbonate solution, boiler feed water, benefield solution, alkaline and acidic solution, ammonia liquor and slurry Centrifugal pumps

Maximum 1700 KW power Maximum 675 kg/cm2 pressure Maximum 315 M3/Hr capacity Fluids handled Drilling mud, cementing slurry, crude oil steam, condensate, heavy water, fatty acids, ammonia carbonate, liquid

Reciprocating pumps

ammonia, water injection

Maximum power Maximum pressure Maximum capacity

25,000 KW 450 kg/cm2 70,000 nm3/Hr Air, nitrogen, oxygen, carbon dioxide, hydrocarbon, ammonia, synthesis gas, hydrogen sulphate, coal gas etc. Reciprocating compressors

Gas cylinder Maximum pressure Maximum capacity Gas handled 400 kg/cm2 110 liters. Oxygen, nitrogen, hydrogen, argon, air, helium, carbon di-oxide, nitrous oxide, acetylene, ammonia, chlorine, Freon, LPG, compressed natural gas (CNG)

OFFICES AND CONTACT

ADDRESSES

IMPORTANT CLIENT

COMPETENCY

COMPETENCY: Quality Assurance Programmes conform to International specifications and requirements.

Research and Development efforts are supported by test facilities for model testing in the centrifugal pumps, reciprocating pumps and compressors area and also carry out live testing of expendables etc.

Fully groomed Installation, Commissioning and Spare Parts Division renders Product Support, Technical Assistance and advice besides providing quick and effective after sales service

A strong Design Department has been established which houses Computer aided Design Centre. Highly qualified, trained, experienced and competent

engineers

are

involved

in

application

engineering,

thermodynamic

calculations, hydraulic calculations and systems design in the area of piping, instrumentation, electrical, operational control etc.

The company undertakes long term maintenance contract of the equipments installed and commissioned at customers' plants, with the objective to maximise their profits and minimise their risks. WORKING CAPITAL Working capital also known as "WC", is a financial metric which represent

soperating liquidity available to a business. Along with fixedassets such as plant and equipment, working capital is considered a part of operating capital. It is calculated ascurrent assetsminuscurrent liabilities. If current assets are less than current liabilities, an entity has a working capital deficiency , also called a working capital deficit . Networking capital is working capital minus cash (which is a current asset)and minus interest bearing liabilities (i.e. short term debt). It is aderivation of working capital, that is commonly used in valuationtechniques such as DCFs (Discounted cash flows). Working Capital = Current Assets Current Liabilities A company can be endowed with assets and profitability but short of liquidity if its assets cannot readily be converted into cash. Positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable and cash WORKING CAPITAL MANAGEMENT Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between afirm'sshort-term assets and its short-term liabilities. The goal of working capital management is to ensure that the firm is able to continue its operations and that it has

sufficient cash flow to satisfy both maturing short-term debt and upcoming operational expenses. By definition, working capital management entails short term decisions - generally, relating to the next one year period - which are "reversible". These decisions are therefore not taken on the same basis as Capital Investment Decisions (NPV or related, as above) rather they will be based on cash flows and / or profitability One measure of cash flow is provided by the cash conversion cycle- the net number of days from the outlay of cash for raw material to receiving payment from the customer. As a management tool, this metric makes explicit the interrelatedness of decisions relating to inventories, accounts receivable and payable, and cash. Because this number effectively corresponds to the time that the firm' scash is tied up in operations and unavailable for other activities, management generally aims at a low net count In this context, the most useful measure of profitability isReturn on capital (ROC). The result is shown as a percentage, determined by dividing relevantincome for the 12 months bycapital employed;Return on equity(ROE) shows this result for the firm's shareholders. Firm value is enhanced when,and if, the return on capital, which results from working capitalmanagement, exceeds thecost of capital, which results from capitalinvestment decisions as above. ROC measures are therefore useful as amanagement tool, in that they link short-term policy with long-term decisionmaking. SeeEconomic value added(EVA).Guided by the above criteria, management will use a combination of policies andtechniques for the management of working capital. These policies aim at managingthe and current the short assets term (generallycashandcash equivalents,inventoriesanddebtors)

financing, such that cash flows and returns are acceptable. Cash management. Identify the cash balance which allows for the business to meet day to day expenses, but reduces cash holding costs.

Inventory management . Identify the level of inventory which allows for uninterrupted production but reduces the investment in raw materials and Short term financing. Identify the appropriate source of financing, giventhe cash conversion cycle: the inventory is ideally financed

by credit granted by the supplier; however, it may be necessary to utilize a bank loan(or overdraft), or to "convert debtors to cash" through "factoring". CSH CONVERSION CYCLE management accounting, the WORKING CAPITAL Cash Conversion Cycle(CCC) measures how long a firm will be deprived of cash if it increases itsinvestment in resources in order to expand customer sales. It is thus ameasure of theliquidity risk entailed by growth. However, shorteningthe CCC creates its own risks: while a firm could even achieve anegative CCC by collecting from customers before paying suppliers, a policy of strict collections and lax payments is not always sustainable Definition CCC days between disbursing cash and collecting cash in connection withundertaking a discrete unit of operations. Inventory conversionperiod+ Receivables conversionperiod Payables conversionperiod Avg. Inventory COGS / 365+Avg. Accounts Receivable Revenue / 365 Avg. Accounts Payable COGS / 365

CORPORATE FINANCE Corporate financeis an area of financedealing with financial decisions business enterprisesmake and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize corporate value . whilemanaging the firm's financialrisks. Although it is in principle different frommanagerial financewhich studies the financial decisions of all firms, rather thancorporations alone, the main concepts in the study of corporate finance areapplicable to the financial problems of all kinds of firms.The discipline can be divided into long-term and short-term decisions andtechniques.Capital investmentdecisions are long-term choices about which projects receive investment, whether to finance that investment withequityor debt, and when or whether to paydividendstoshareholders. On the other

hand, the short term decisions can be grouped under the heading "Working capital management".This subject deals with the short-term balance of current assets and current liabilities; the focus here is on managing cash,inventories, and short-term borrowing and lending (such as the terms on credit extended to customers).The terms corporate finance and corporate financier are also associated withinvestment banking. The typical role of aninvestment bank is to evaluate the company's financial needs and raise the appropriate type of capital that best fitsthose needs. liabilities; the focus here is on managing cash, inventories, and short-term borrowing and lending (such as the terms on credit extended to customers).The terms corporate finance and corporate financier are also associated with investment banking. The typical role of aninvestment bank is to evaluate the company's financial needs and raise the appropriate type of capital that best fitsthose needs CAPITAL INVESTMENT DECISION Capital investment decisions are long-term corporate finance decisions relatingtofixed assetsandcapital structure. Decisions are based on several inter-related criteria. (1) Corporate management seeks to maximize the value of the firm byinvesting in projectswhich yield a positivenet present valuewhenvaluedusing an appropriatediscount rate. (2) These projects must also befinancedappropriately. (3) If no such opportunities exist, maximizing shareholder value dictates thatmanagement must return excess cash to shareholders (i.e., distribution viadividends). Capital investment decisions thus comprise an investment decision, afinancing decision, and a dividend decision. The investment decision Management must allocate limited resources between competing opportunities(projects) in a process known ascapital budgeting Making this capital allocationdecision requires estimating the value of each opportunity or project, which is afunction of the size, timing and predictability of future Project valuation each project's value will be estimated using a discounted cash flow(DCF)valuation, and the opportunity with the highest value, as measured by the resultantnet present value(NPV) will be selected (applied to Corporate Finance byJoelDeanin 1951; see alsoFisher separation theorem,John Burr Williams: theory). This requires estimating the size and timing of all of the incremental cash flowsresulting from the project. Such future cash flows are thendiscountedto determinetheir present value (seeTime value of money). These present values are

thensummed, and this sum net of the initial investment outlay is the NPV. SeeFinancial modeling.The NPVis greatly affected by thediscount rate. Thus, identifying the proper discount rate - often termed, the project "hurdle rate" is critical to making anappropriate decision. The hurdle rate is the minimum acceptablereturnon aninvestmenti.e. the project appropriate discount rate. The hurdle rate shouldreflect the riskiness of the investment, typically measured byvolatilityof cashflows, and must take into account the financing mix. Managers use models such astheCAPMor theAPTto estimate a discount rate appropriate for a particular project, and use theweighted average cost of capital( WACC ) to reflect thefinancing mix selected. (A common error in choosing a discount rate for a projectis to apply a WACC that applies to the entire firm. Such an approach may not beappropriate where the risk of a particular project differs markedly from that of thefirm's existing portfolio of assets.)In conjunction with NPV, there are several other measures used as (secondary)selection criteriain corporate finance. These are visible from the DCF and includediscounted payback period,IRR ,Modified IRR ,equivalent annuity, capital efficiency, andROI. Alternatives (complements). FINANCIAL RISK MANAGEMENT Financial Risk Management the process of measuring risk and then developing and implementing strategies tomanage that risk.Financial risk management focuses on risks that can be managed("hedged") using tradedfinancial instruments (typically changes in commodity prices,interest rates,foreign exchange ratesandstock prices). Financial risk management will also play an important role incashmanagement. This area isrelated to corporate finance in two ways. Firstly, firm exposure to business risk is adirect result of previous Investment and Financing decisions. Secondly, bothdisciplines share the goal of enhancing, or preserving, firmvalue. All citation needed large corporations have risk management teams, and small firms practice informal,if not formal, risk management. There is a fundamental debate on the value of "Risk Management" and shareholder value that questions a shareholder's desire tooptimize risk versus taking exposure to pure risk. The debate links value of risk management in a market to the cost of bankruptcy in that market.Derivativesare the instruments most citation needed commonly used in financial risk management. Because unique derivativecontractstend to be costly to

create andmonitor, the most cost-effective financial risk management methods usuallyinvolve derivatives that trade on well-establishedfinancial marketsor exchanges. These standard derivative instruments includeoptions,futures contracts,forward contracts, andswaps. More customized and second generation derivatives known asexoticstradeover the counter akaOTC. Relationship with other areas in finance Investment bankingUse of the term corporate finance varies considerably across the world. In theUnited Statesit is used, as above, to describe activities, decisions and techniquesthat deal with many aspects of a companys finances and capital. In the UnitedKingdom and Commonwealth countries, the terms corporate finance and corporate financier tend to be associated with investment banking- i.e. withtransactions in which capital is raised for the corporation. PERSONAL AND PUBLIC FINANCE Corporate finance utilizes tools from almost all areas of finance. Some of the toolsdeveloped by and for corporations have broad application to entities other thancorporations, for example, to partnerships, sole proprietorships, not-forprofitorganizations, governments, mutual funds, and personal wealth management.

WORKING CAPITAL WORKS What Is Working Capital? WORKING CAPITAL refers to the cash a business requires for day-to-day operations, or, morespecifically, for financing the conversion of raw materials into finished goods, which thecompany sells for payment. Among the most important items of working capital arelevels of inventory, accounts receivable, and accounts payable. Analysts look at theseitems for signs of a company's efficiency and financial strength.Take a simplistic case: a spaghetti sauce company uses $100 to build up its

inventoryof tomatoes, onions, garlic, spices, etc. A week later, the company assembles theingredients into sauce and ships it out. A week after that, the checks arrive fromcustomers. That $100, which has been tied up for two weeks, is the company's workingcapital. The quicker the company sells the spaghetti sauce, the sooner the companycan go out and buy new ingredients, which will be made into more sauce sold at a profit.If the ingredients sit in inventory for a month, company cash is tied-up and can't be usedto grow the spaghetti business. Even worse, the company can be left strapped for cashwhen it needs to pay its bills and make investments. Working capital also gets trappedwhen customers do not pay their invoices on time or suppliers get paid too quickly or not fast enough.The better a company manages its working capital, the less the company needs toborrow. Even companies with cash surpluses need to manage working capital to ensurethat those surpluses are invested in ways that will generate suitable returns for investors. Not All Companies Are the Same Some companies are inherently better placed than others. Insurance companies, for instance, receive premium payments up front before having to make any payments;however, insurance companies do have unpredictable cash outflow as claims come in.Normally, a big retailer like Wal-Mart (NYSE:WMT) has little to worry about when itcomes to accounts receivable: customers pay for goods on the spot. Inventoriesrepresent the biggest problem for retailers; as such, they must perform rigorousinventory forecasting or they risk being out of business in a short time.Timing and lumpiness of payments can pose serious troubles. Manufacturingcompanies, for example, incur substantial upfront costs for materials and labor beforereceiving payment. Much of the time they eat more cash than they generate. EVALUATING COMPANIES Investors should favor companies that place emphasis on supply-chain management toensure that trade terms are optimized. Days-sales outstanding or DSO for short, is a goodindication of working capital management practices. DSO provides a rough guide to thenumber of days that a company takes to collect payment after making a sale longer to collect its payments. It suggests that the company is not going tohave enough cash to fund short-term obligations because the cash cycle islengthening. A spike in DSO is even more worrisome, especially for companies that are already low on cash.The inventory

turnover ratio offers another good instrument for assessingthe effectiveness of WCM. The inventory ratio shows how fast/oftencompanies are able to get their goods completely off the shelves. Theinventory ratio looks like this:

COST OF GOODS SOLD (COGS)/INVENTORY Broadly speaking, a high inventory turnover ratio is good for

business.Products that sit on the shelf are not making money. Granted, an increasein the ratio can be a positive sign, indicating that management, expectingsales to increase, is building up inventory ahead of time.For investors, a company's inventory turnover ratio is best seen in light of its competitors. In a given sector where, say, it is normal for a company tocompletely sell out and restock six times a year, a company that achieves aturnover ratio of four is an underperformer.Computer giant and stock market champion, Dell (Nasdaq:DELL),recognized early that a good way to bolster shareholder value was to notchup working capital management. The company's world-class supply-chainmanagement system ensures that DSO stays low. Improvements ininventory turnover increase cash flow, all but eliminating liquidity risk,leaving Dell with more cash on the balance sheet to distribute toshareholders or fund growth plans.Dell's exceptional WCM certainly exceeds those of the top executives whodo not worry enough about the nitty-gritty of working capital management.Some CEOs frequently see borrowing and raising equity as the only way toboost cash flow. Other times, when faced with a cash crunch, instead of setting straight inventory turnover levels and reducing DSO longer to collect its payments. It suggests that the company is not going tohave enough cash to fund short-term obligations because the cash cycle islengthening. A spike in DSO is even more worrisome, especially for companies that are already low on cash.Theinventory turnover ratiooffers another good instrument for assessingthe effectiveness of WCM.

The inventory ratio shows how fast/oftencompanies are able to get their goods completely off the shelves. Theinventory ratio looks like this:

SECTIONS OF FINANCE DEPARTMENT STORE BILL SECTION & FOREIGN PAYMENT MR.C.N MISHRA SALES- MR. G.P SINGH PROVIDEND FUND MS. GAURI SALARY MR. M.N TRIPATHI MISCELLANEOUS MR. B.V SINGH INCOME TAX- MR. RANJEET SINGH COSTING-MR. WAHIDI JI BOOK SECTION- MR. S.B GUPTA BANK SECTION-MR SANJAY GUPTA MEDICAL SECTION -MR. R.C PANDEY STORE BILL SECTION Base of placing the Purchase Order (PO)- Design Department raised indent forprocurement of material for various products the main product of BPCL are:1.Reciprocating Compressor2.Reciprocating Pumps3.Centrifugal Pumps4.Gas Cylinder (excluding LPG)After receipt of indent Purchase Department offer quotation from different suppliersthrough tenders. There are 4 types of tenders1. 2. Single tender (for only one reputed supplier). Limited tender (Some regular suppliers are said to be providing quotation after receipt of quotation comparative statement is prepared in which price quality, past performances of the supplier are maintained. The comparative statement

send to finance department for concurrence and final decision are given by finance department. 3. Global tender (These are given in newspaper and international supplier submits their quotations through this tender). 4. Open-tender (quotation calls for international).Purchase order (PO)- This is an arrangement between buyers and suppliers & suppliersand suppliers is bound to deliver the materials as mentioned in POItems name Quantity Unit rate Packing & forwarding [0.5% to 5% of material value (mv)] excise dutyUp to 29-02-2008-16.48%Up to march 2008-14.42%Up to o7-122008-10.03%Up to 24-02-2009-8.24%Up to 27-02-2010-10.03% VAT [MV+P&F+Excise duty] 5 %(19-02-2010) or [13.5% applicable in 5% cases]. Service tax (10.3%is applicable on machinery work or labour job). Central Sales Tax (CST)- Presently 2% on [MV+P&F+ED]. Government taxes like VAT, CST, Service Tax %age is not given in PO .Payment to the supplier When supplier supplies the material, he provide bills invoice/bill, taxable invoice [for moderate credit- credit taken which excise duty are paid byBPC to suppliers. BPC takes excise credit on the basis of taxable invoice.] According to PO supplier invoice/ bill the same or past as per PO rate terms& conditions.Late delivery inventory - 0.5% per week subject to maximum of 5% of delayed supply isdeducted from the bill. If supply is delayed beyond delivery period (as per PO deliveryperiod is 4 weeks from the date of PO), all payments are released through cheques /RTGS.Note-; ED, VAT, ST or refunded/credited by sales tax

department & excise department.Contractor transport payment- Annual contract is awarded for transportation of materials from BPCL to any place within India & all over India to BPCL. Presentlythere are 3 transporters. e.g.- ETO (Economic Transport Organisation), ARC(Associated Road Organisation), Indo Aryan Organisation.For different jobs, construction of roads, building, foundation of machinerytanks the contract is awarded on the basis of tender Income tax - @ 2.06% of labour job amount. Machinery is deducted from the suppliersbill. Finally store department provide Store Receipt Voucher (SRV) to finance forvaluation.Purchase of imported materials- On the basis of PO, materials are imported by 2 ways-;(1) through letter of credit (LC) - 90%(2) On collection basis-10%Establishment of LC1.Banker- SBI Naini 2.Consignee- overseas supplier, foreign vendors (supplier) beneficiaries.

3.Consignee- SBI Naini a/c, BPCL Naini (receiver)Foreign payment -:After placement of the PO purchase department sent request letter to financedepartment.Foreign payment section along with 2 copies of PO and suppliers consent letter forestablishing LC. Finance department on the basis of PO prepare the followingdocuments: 1.Letter addressed to SBI Naini (chief manager) in which PO no., date, value inforeign currency, freight forwarders, name and address are mentioned. 2.Shipping documents. In this document the following points are indicated: i.Airway bill / Bill of lading ii.Invoice/Bill iii.Packing list iv.Country or origin v.Test Inspection Certificatevi.Certificate of utilities vii.Specification of Goals

viii.Certificate of completion of supply ix.Warranty/ GuaranteeTotal LC value in FC suppliers name, name of freight forwarders, latedelivery penalty if applicable, PBC (Performance Bank Guarantee) if applicable, requirement of advance set of documents for shipping of materials.3. Guarantee LC form ( 2) suppliers name, FC value, price term [free on boat] All charges from suppliers workshops to sea/ airport like handling charges, documentation charges, warehousing charges, paid by suppliers and finally charges in his invoice.4. Foreign exchange control . Name of supplier Material cost The LC is established by the buyer through his banker (SBI, Naini) with a primebank located in the country of supplier. Confirmation of LC is confirmed by thebuyers banker only.Terms of dispatch/ shipment (fob)- in this case supplier is responsible fortransportation of material upto port, documentation charge, warehouse chargewill be paid by the supplier and finally charged in this bill.Ex-works: The supplier is only responsible on his work place. The freightforwarder of buyer is responsible for material handling upto port and allexpenses at port.Cost insurance and freight of air/ship- will be born by the supplier.Port of Loading- The supplier shipped the material with the consultant of freightforwarder in his country.Port of DischargeMaterial discharge of Mumbai port and the clearing agent of buyershall provide all expense of the port along with freight bill.Releasing of material from port- after payment freight port trust expenses custom duty andreceipt of original documents like bill/invoice, packing list, country of origin and AWB/ BL.Invoice/bill and AWB/ BL must be signed by chief manager SBI Naini. In some casesoriginal documents are not received in SBI Naini and material reached and Mumbai portthen in case of air release order duly addressed to freight forwarder and signed by chief manager SBI Naini. In case of sea indemnity bond is issued and also signed by SBI is sentto freight forwarder for increasing the material from the port. After releasing the materialsthrough our transporters, materials are send ton BPCL Naini

MICSCELLANEOUS PAYMENT SECTION

.Function of miscellaneous payment section 1.Payment of transport bills 2.Payment of mobiles and telephones 3.Miscellaneous advance and adjustment 4.AMC (annual maintenance contracts) 5.Publication and advertisemen t6.Payment of leased houses 7.Security/earnest money deposits and payment 8.Reduction of income tax &payment 9.Training and seminar 10.Power payment11.Miscellaneous payments DEDUCTION AND PENALTY IN CASE OF PENALTY Deduction on late arrival (for all types of vehicles)=Contract amount +diesel hike / 252*1%Extra mileage rate rs.5.60 per km Penaltycase Contract amount +diesel hikeDays in a month or 25 days/25 hrs *hrs indicated in the bill 4 or 3 LANDLINES36 landlines connection DGM (60000/-)90 Mobiles are issued to the officer diff.department IMPEREST Imperest is an advance being paid to each and every department to meet out theexpenses of emergent and petty nature. MISCELLANEOUS ADVANCE AND ADJUSTMENT

it includes material handling ,localcash purchase ,repair handling ,welfare /press and publication expenses etc.AMC-annual maintenance contractsAMC for computersAMC for crane servicesAMC for weighing machinesAMC for electronic punching machinesAMC for electronic data processing(EDP) PUBLICATION AND ADVERTISEMENT Advertisement for tender notice Advertisement for recruitmentAdvertisement for goodwill and sales promotion SECURITY/EARNEST MONEY DEPOSITS AND PAYMENT Earnest money it is being deposited at the time of issuing tender form .it isrefundable just after the party is failure to obtain contract.Security money-it is being deposited after finalization of contract and securitydeposits is refundable after termination of contracts. REDUCTION OF INCOME TAX &PAYMENT TDS is being deducted from the parties payment under two section1st -sec 194(c)2nd -sec 194 (j)Sec194(c)-ths sec. covers the payments of parties who are rendering their serviceswith their own means and cost .e.g. transporters bill.(A) rate of TDS-2.06% (B) Rate of TDS-1.03% is being deducted from the bill of the parties who do the work of mediator or broker.\e.g satya advertising agencies sec 194(j) TDS at the rate of-10.30%This rate is applicable on the payment of professional, retainers and serviceconsultants. Tax will be deposited on before the 7thof the coming month.SALARY SECTIONAs per the government rules and regulations the salary section calculates the salaryof employees by involving-:DA (IDA)-industrial dearness allowanceDA is changed according to the survey made by consumer forum in several citiesto know the prices of various products.Presently DA is 127.5% of basicHRA( house rent allowance )Classification of cities HRAA-1(population>50 lac) 30% of basic payA,B-1,B-2(population between 20-50 lac) 15% of basic payC (population between 10-20 lac) 7.5% of basic payUnclassified (below 10 lac) 5% of

basic payCCA(city compensatory allowance)Washing allowance Rs 60/- per monthCanteen allowance Rs 400/-per monthChildren education allowanceAttendance award Rs55 for 100% attendance PROVIDEND FUND SECTION UP/4882/2612 code given by PF Commissioner to BPCL.P.F no up/4882/261212% is cut down from individual salary same amount is added to a/c which is provided by company.Contribution involved in the separate a/c of employee:(1)Employee contribution(2)Employer contribution(3)Voluntary provident fundVPF is a/c to the will of employee which is provided by companyRandomly .maximum limit that can be cut down 6000/- or 72000 per year. In last two month Feb. &mar individual can exceed the amount 6000/- tomaintain 72000/- in that year 8.33% or Rs 541/- whichever is lower one is cut from the 12% of the salarythen we get the amount.Types of loan Non refundableCondition 1- 90% of the amount is providedCondition2-(basic+DA)*36RefundableCondition 1- 90% of the amount is provided after 10 year of service if taken75%provided only refundableCondition 2(basic + DA)*6DeductionProvident fund -12% of basic +DA8.5% interest on PFVoluntary provident fundMax 6000/- can be deducted as VPF Income tax deduction Bus charge GLIC/LIC Deduction MEDICAL SECTION Medical section of finance department provides financial help for medical facilitiesto the employee and their dependents.In the month of April 95% of the basic payment is provided to the employee for normal disease.For each month=95%of the basic12Following are the hospital in which financial help is provided :(1)Srijan vatsalya hospital pvt.ltd

(2) Akshay vat and trama hospital. (3) saraswati heart care (4)Nazareth hospital. (5) government hospitals

CUSTOMER SATISFACTION

CSTOMER STISFACTION

In Time Delivery, Installation Commissioning of Products

Common Objective To Maximise Profits And Minimise Cost Of The Customer

Long Term Preventive Maintenance Contract - Low Cost, Low Downtime

Just In Time Spare Parts ManagementLow Downtime

Continuous And Rapid Technological Upgradation

On The Job Training Programme For Customer Operational & Maintenance Personnel

MANUFACTURING UNIT

ACHIVEMENT 2010-2011

MANAGEMENT

INFORMATION SYSTEM

BALANCE SHEET

PROFIT AND LOSS ACCOUNT

GRAPHICAL PRESENTATION OF TURNOVER, VALUE ADDED PER EMPLOYEE, NET PROFIT BEFORE TAX, NET WORTH

Turnover (in cr.) -:

Value added per employee (in lacks)-:

Net profit before tax

35 30 25 20 15 10 5 0 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Net worth (in cr.)-:

140 120 100 80 60 40 20 0 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

TEN YEAR DIGEST

2010particular value of production sales gross profit/ (loss) pbdit Depreciation/dr e interest (a) p/l before tax on cu. Ope. (b)1- provisions 2- net profit period adj. 3- extra ordinary item 1902.1 0 -1.1 475.5

2009-

2008-

2007-

2006-

2005-

2004-

2003-

2002-

200

2011 2010 2009 2008 2007 2006 2005 20908. 28193. 23998. 19177. 14983. 10317. 6 21021. 3 2867 439 525.9 8 27111. 8 4993.7 266.1 674 9 23636. 4 5968.6 214 868.5 3 19459. 5 4327.9 304.5 462.2 1 14371. 6 3167.4 365.3 271.4 9 9442.1 2188.9 387.1 1585 7000 7008 875.8 388 1469. 2

2004 2003 4749. 8 5139. 9 -290.9 390.9 1009. 6 1691. 3 390.4 -412.4 0 2494. 1 0 2494. 1 6441 6422. 1 -203.9 270.2 736.3 1210. 3 3.1 -78.4 0 1291. 8 0 1291. 8

200 66

72

-42

16

68

12

4053.5 2.6 71.2 1012.7

4886.1 1021.4 130.3 2031.4

3561.3 364.3 -146.6 0

2530.8 791.1 174.6 0

216.8 0 -32.3 0

-981.4 67.4 -36.8 0 1085.

12

p/l before tax provision for tax net profit after tax

1425.5 472.6

3109.4 544.4

1963.6 107.1

3050.5 3.9

1914.3 2.8

184.5 2.4

5 0 1085.

12

952.9

2565

1856.5

3046.6

1911.4

182.1

RATIO ANALYSIS

RATIO ANALYSIS Ratio analysis is power tool of financial analysis. A ratio is defined as the indicated quotient of mathematical expression and as a relationship between two or more things. Ratio quantitative relationship helps to form a qualitative judgement

STANDARD OF COMPARISION The ratio involve comparison for a useful interpretation of the financial statement. Standard of comparison may consist of : Past ratio Competitors ratio Industry ratio Projected ratio

TYPES OF RATOS Ratios are classified into four categories; Liquidity ratio measure the firms ability to meet its current obligation. 1- (current ratio = current assets/currents liability) 2 Leverage ratio show the proportion of debt and equity in financing the firms assets Activity ratio reflect the firms efficiency in utilizing its assets Profitability ratio measure overall performance and effectiveness of the firm

DATA ANALYSIS

DEFINITION The process of evaluating data using analytical and logical reasoning to examine each component of the data provided. This form of analysis is just one of the many steps that must be completed when conducting a research experiment. Data from various sources is gathered, reviewed, and then analyzed to form some sort of finding or conclusion. There are a variety of specific data analysis method, some of which include data mining, text analytics, business intelligence, and data visualizations. Ads by Google OVERVIEW Once you have developed your study idea, developed your study plan, and executed your study successfully, the fun part begins! Now is the time to discover the truth behind your study questions. Is treatment A better than treatment B? Does it depend on what group of patients received the treatment (eg, young versus old)? Are patients really better off receiving this new plate or surgical technique? Is it possible that the old way is the best way? Is it possible that it doesnt matter what technique you use? Finding out these answers is the motivating force behind performing a clinical study. If you paid attention to detail in your study planning and worked hard in ensuring the quality and validity of your data collection methods, there is no reason these questions cannot be answered, at least in your study population. Many investigators reach this point in the study so exhausted that they put the data aside and forget about it for a while. Its not uncommon to leave such a tremendous effort behind by not getting to the data analysis. Discipline in sticking to the effort until the end is paramount for this phase of your study. Unfortunately, we cannot just push a button and all our results, tables, and figures pop up on our computer screen. Performing the data analysis takes a combination of expertise, discipline, and patience in carefully handling the data in accordance with the data analysis plan you set forth in the study protocol This goes back to assembling a complete research team. Though resources may limit you, it pays to get an epidemiologist or biostatistician involved in this phase of your study, if even as a consultant. Ideally, this person was involved in helping you develop the analysis plan

in the protocol. They can help you with basic elements of the data analysis to be sure you are handling your data in an efficient and effective manner. Furthermore, if available to you, they can perform the whole analysis in a complete and robust manner which will get the best out of your hard efforts up to this point. On the other hand, some investigators enjoy analyzing their own data and have the expertise to do it. If so, go for it! If not, you can learn a lot by working along side a person who does the analysis for or with you. Like we did in Part 2 of this module where we discussed study design principles following the outline of a protocol , we will discuss data analysis and reporting principles following the outline of a study report or manuscript for publication, Table 11.1. Keep in mind that each sponsor (if applicable) and journal may have different requirements for publication. 11.2 INTRODUCTION You can borrow from your Background and Significance section of your protocol when you write this section. It will be important to be relatively brief, likely far fewer characters than your protocol. The key is to inform the reader as to why your topic is important. It is not necessary to spend a tremendous amount of effort reiterating what others have already discussed in previous studies on your topic. Try to make it novel and to the point. The introduction should end with a clear and concise description of your study purpose. If you had more than one purpose or a secondary purpose, list them separately. For example, you can state something like this: There is a tendency to change your objectives based on findings you have become aware of since the study. Be careful with this. It is ok to report secondary findings that you did not anticipate, but it is important that they are reported in their context and not as primary objectives. Bottom line - list the objectives you set out to answer. They should be consistent with the specific aims from your protocol Statistically non-significant findings are still significant! and therefore the outline may change slightly; however, these basic elements should be included in any study report or manuscript

11.3 METHODS This is where you tell your reader what study design you chose to use to answer your primary and secondary objectives. It also gives you the opportunity to describe the institution(s) in which you recruited your subjects. You get to tell your story of how you identified and recruited subjects, the characteristics of these subjects, how many participated and how many you lost to follow-up. 11.3.1 Study design This section is short and to the point. Here you tell the reader whether your study was a randomized or quasi-randomized controlled trial, cohort study, casecontrol study, case-series and whether you used additional methods such as matching, block randomization, stratified randomization, etc. ]. 11.3.2 Subjects It is very important to clearly and thoroughly describe your study populations. Readers need to know if your results and conclusions may be generalized to their population. Additionally, it is important to place your study in time. Technological advances, changes in patient care procedures, and differences in reporting practices at different times can affect the outcomes and interpretation of your study1. The following items should be included in this section: Explanation of inclusion and exclusion criteria. Institutions in which you identified and recruited your patients. Time period in which you collected your data.

For retrospective studies, give the dates during which the data were originally collected as opposed to when you abstracted them from the study. 11.3.3 Data collection It is important in this section to describe clearly and concisely the process by which you identified and recruited subjects and whether they finished the study. Full accountability of every subject should be attempted. When possible, provide a schematic summary of the study showing the number and disposition of participants at each stage, Figure 11.1. The schematic summary should include: The total number of subjects approached.

The total number of subjects found eligible and ineligible. The number of subjects who agreed to participate and signed informed consent.

The number of subjects who did not complete the study (eg, lost to follow-up, withdrew, died).

The number of subjects who completed the study and whose data are included in the final analysis. Make every attempt to describe the following subjects:

Those evaluated who did not meet the study criteria. Those subjects who were approached but declined to participate. Those subjects who were enrolled but were withdrawn or dropped out. Those subjects who were enrolled but were lost to follow-up. Thos subjects who were enrolled and completed the study.

Subjects who agree to participate may differ in important ways than those who decline to participate. For example, they may be more likely to take risks or more motivated to get better and comply with the treatment protocol. Patients may be withdrawn or drop out willingly for various reasons, some of which may bias the interpretation of the results. Subjects who are lost to follow-up may be those subjects who are least satisfied with the results of their treatment or may be doing so well they do not feel they need to be evaluated any longer. Either scenario could bias the results. Studies with low follow-up rates (ie, <90%) should be interpreted cautiously for this reason. Finally, the final sample should be described completely. This is generally done in the results section. Describe the nature and duration of follow-up effort. This should come directly from your protocol assuming you followed these procedures. For example, you may state something like this: Upon study entry, we obtained the following: Patients mailing address, telephone number, and email address. The name and address of their primary care physician.

The name, address and phone number of three people at different addresses with whom the patient does not live who are likely to be aware of the patients location.

Study personnel called patients to remind them of upcoming study visits and patients were contacted no less frequently than once every three months to maintain contact and planned change in residence. Finally, describe the baseline prognostic factors and outcome measures that were collected. If special instruments were used to define these, identify them, provide any background info as to their validity, reliability, and responsiveness, and if possible provide a copy of the instrument in the paper. A clear description of the instruments content, scale, and interpretation with appropriate references should be included whether you provide an actual copy of the instrument or not.

Figure 11.1. Example of a cohort study schematic summary. 11.3.4 Data analysis The Uniform Requirements for Manuscripts Submitted to Biomedical Journals summarizes the overall intent of statistical reporting: Describe statistical methods with enough detail to enable a knowledgeable reader with access to the original data to verify the reported results2.

The statistical comparisons you make here are the same as the ones you specified in your protocol before any data were collected1. Therefore, this section should restate what that plan was. Assuming you followed that plan, this section can be a mirror image of the protocols section with some slight edits as needed. It is understandable that the choice of specific statistical tests may depend on the quality of the data in the end (eg, whether continuous data were normally distributed or not), so the specific test often cannot be stated in advance. In the end, this section should provide a clear and concise description of how you analyzed your data so that someone could repeat it. If you performed a randomized controlled trial, you should be clear as to whether the statistical analysis was on the basis of intent-to-treat] . Furthermore, it is a good idea to reiterate you power calculations so as to validate whether or not you achieved the necessary number of patients in your study that you had planned for. Finally, identify the statistical package or program (with its corresponding reference) used to analyze the data. Results may very slightly from package to package due to discrepancies in validation and updating. 11.4 RESULTS The results section should be quick and to the point. In other words, there should not be too much explaining or justifying the findings. This is left for the discussion. The flow of the results section should begin with descriptive statistics of study groups, findings with respect to measured risk factors or outcomes (analytical statistics) and accompanying tables and figures as necessary. 11.4.1 Descriptive statistics The presentation of descriptive data on the study population is important for the following reasons: It enables you to determine the comparability of study groups at baseline and evaluate the likelihood of any selection bias [Using didactic] or confounding The baseline characteristics of the study population can help in determining the generalizability [Using, External Validity] of the results of study population to other study populations. This is typically the first table in your report or manuscript,

Table 11.2. Baseline data for hip fracture patients treated with a Dynamic Hip Screw (DHS) or Perc

Compression Plating (PCCP) DHS No. or mean Age (years) AO Classification A11 stable A12 stable A13 stable A22 unstable A22 unstable A23 unstable 5 15 5 6 10 3 11 34 11 14 23 7 9 6 1 2 14 7 23 15 3 5 36 18 83 % or range 64-98 PCCP No. or mean 82

% or ra 65-96

From this table, we note that both groups are relatively equal with respect to age; however, if we combine fracture classifications into stable versus unstable fractures, we find that 44% of those treated with the DHS were unstable fractures compared with 59% of those treated with the PCCP. This may put the PCCP group at an unfair disadvantage if unstable fractures are more likely to give rise to a poorer outcome. An unequal distribution between treatment groups of an independent factor that is also associated (negatively or positively) with the outcome constitutes a potential confounding variable . Potentially confounding variables should be dealt with in the analytical analysis. [see example below]. 11.4.2 Analytical statistics A thorough description of the purpose of analytical studies and hypothesis testing is outlined in the Developing the Study Plan part of this moduleThis section will focus on reporting your results. Your outcomes will either be categorical or continuous or a combination of This section will discuss how to present both types of outcomes. Statistics can be as much of an art as it is a science. Furthermore, there are myriads of ways to display your data. Going through all these options is beyond the scope of this module; however, we will present some important evidence-based medicine concepts ways

in which data reporting should have a significant impact on your audience and allow them to apply your findings clinically. As some say, the p-value is overrated!. Categorical outcomes Often surgeons want to know the proportion of patients who experience a certain outcome, either negative (e.g. non-union) or positive (e.g. those who have an excellent clinical outcome). In many studies, the authors simply report these dichotomous outcomes as proportions for the treatment and control groups and a pvalue to tell us if the results are significant. A common way of reporting these outcomes is presented in Table 11.3. Table 11.3 Hypothetical outcomes comparing the LCP to the standard plate Treatment group LCP (N=119) Outcome Union Nonunion Complications n 107 12 12 % 90 10 10 Standard (N=112) n 90 22 11 % 80.0 80.0 10 0.04 0.04 0.92 plate P-value*

*Hypothesis testing using the chi-square test. RR is simply the proportion of patients with the outcome in the treatment group divided by the proportion of patients with the outcome in the control group. In this case, 0.10/0.20 = 0.50 The RRR is |1-RR| x 100, or in our case, (1-0.5) x 100 = 50%. A relative risk reduction of 50% means that the LCP reduced the risk of non-union by 50% compared with the control (standard plate) treatment. If the treatment increases the risk of a bad event, we call that relative risk increase (RRI). Furthermore, when a treatment increases the probability of a good event, the term we use is relative benefit increase (RBI) (Table 11.4). The RD is the absolute difference between the proportions, 0.20-0.10 = 0.10 or 10%.

The NNT represents the number of patients one would need to treat in order to prevent a negative outcome (or allow a positive outcome, depending on which outcome is being evaluated). The formula is 1/RD. In our example, 1/.10 = 10; therefore, for every 10 patients treated with the LCP, one non-union can be prevented compared with a standard plate (Table 11.5).

Table 11.4. The relationship among relative and absolulte risk reduction, risk increase and benefit increase Relative 1-|T/C| Relative Treatment reduces the risk of bad event vs.control reduction (RRR) Absolute |T-C| riskAbsolute reduction (ARR) risk

Treatment increases the risk of bad eventRelative risk increaseAbsolute risk increase vs.control Treatment increases the probability of a good eventvs. control (RRI) Relative increase (RBI) (ARI) benefitAbsolute increase (ABI) benefit

Table 11.5. Summary of the ways to report non-unions for fictional data comparing the LCP with a standard plate. Treatment (T) (n=30) No. (%) 3(10) Control (C) (n=30) No. (%) 6(20) RR T/C 0.50 RRR 1-(T/C) 0.50 RD C-T 0.10 NNT 1/(C-T) 10

As discussed in , rates can also be reported and a statistical test like the chisquare test performed which will provide a p-value. While the p-value may be statistically significant (p<0.05), reporting the data in this fashion provides little additional value with respect to applying your findings in a practical sense. The measures above are relatively simple to perform and are highly recommended when comparing proportions. You may also choose to use statistical software to perform multivariate regression. Regression methods such as Cox, negative binomial, and logistic

regression also provide a point estimate like the relative risk. They have the added benefit of allowing you to control for potential confounding factors and therefore are a very useful tool when reporting your results. You should have collected all factors that you though may be potential confounder and have a plan for controlling for them in your study protocol. An example of how confounding may effect your conclusion if you dont use a method to control for these factors (eg, stratified analysis or regression) is given below. When evaluating LCP versus a standard plate, one may want to adjust for smoking status (a potential confounder) in this way (Table 11.6): Table 11.6. Fracture non-union among smokers and non-smokers for fictitious data. LCP (N=100) n Smokers Non-smokers Total 11/15 3/85 14/100 % (73.3) (3.4) (14.0) Standard (N=100) n 31/42 2/58 33/100 % (73.8) (3.3) (33.0) PR 0.94 1.02 0.42

RR = relative risk (cast/ORIF) In this example, the proportion of patients treated with an LCP who end up with a non-union is 14% compared with 33% receiving a standard plate; a relative risk of 0.42, which translates to a 58% reduction in risk. However, there happen to be far less smokers in the LCP group than the cast group, and smokers have a higher nonunion rate no matter what treatment they receive, whether LCP or a standard plate (73% non-union). When the data are stratified, one can quickly see that there really is no difference in non-union between the LCP and standard plate groups in either smokers or non-smokers (73% nonunion in each group among smokers, and about 3% in each group among non-smokers). The difference is that more smokers ended up in the standard plate group. When we adjust for smoking, the relative risk of nonunion among those receiving an LCP is 0.99 compared with a standard plate. CONTINUOUS OUTCOMES Continuous outcomes are very common in orthopedic research. Examples include operative time, blood loss, range of motion, visual analog pain scales, and various outcome scores that often fall on a 0 to 100 point . As discussed in Part 2

(section 6.2) these outcomes are typically presented as a mean with a standard deviation, Table 11.7. Hypothesis testing is performed using Students t-test or the Pearsons product moment-correlation coefficient. Table 11.7. Hypothetica Foot and Ankle Outcome Scores*. Treatment LCP Standard Plate N 119 112 Mean 88 76 SD 17.5 10.2 Min 41 34 Max 98 91 P-value P<0.001

*Scores normalized to a total possible of 100 points. Two-sample t-test. If there are potential confounding variables that need to be controlled for such as age, fracture severity, smoking status, etc. you can use linear regression or analysis of variance. These are discussed superficially in but a thorough discussion of multivariate methods is beyond the scope of this module. 11.5 DISCUSSION Since the results section is intended to report your finding without interpretation, the discussion section allows you to put your findings in context. However, the discussion section has a tendency to take on a life of its own. It is very common for this section to become long and difficult to read. It is also common for this section to serve as a platform for one to give their opinions with respect to the treatment intervention being evaluated. Some go as far as to discuss public policy changes in their discussion. There are no standard guidelines for this section which is probably why authors take the liberty to write everything they were not able to write in the previous three sections of the manuscript. Be careful with this approach. It is very refreshing to read a discussion that is clear and concise. If you present your methods and results in an effective way, then the discussion allows you to interpret those results in such a way as to allow the reader to make up his/her own mind in the end. In light of this background, here are some guidelines to consider when writing the discussion section which will prevent you from falling into the trap of writing too much with too little substance. Consider addressing these issues in the order presented below:

1. Discuss the implications of the primary analyses first. Secondary analyses should be discussed later and described as explanatory.

2. Distinguish between statistical and clinical significance. Statistical significance relates to how likely the observed effect is due to chance (ie, sampling variation). Clinical significance relates to the magnitude of the observed effect. Lets look a little closer at these concepts. Statistical significance depends on three parameters: Sample size (the larger the sample size, the easier to demonstrate statistical significance) Variability in patient response, either by chance or by non-random factors (the smaller the variability, the easier to demonstrate statistical significance) Effect size, or the magnitude of the observed effect between group (the greater the size of the effect, the easier to demonstrate statistical significance) The size of the effect is what really interests us, and these are the values reported as relative risk (RR) relative risk reduction (RRR) risk difference (RD) (see 11.3.2). These values are given as a single number, and therefore they are referred to as point estimates. A range of values around the point estimates can be calculated, which in turn gives us an interval estimate. The interval estimate is also known as the confidence interval; a 95% confidence interval tells us that an experiment conducted 100 times would result in the point estimate falling inside the confidence interval 95 times. For example, if the RRR = 0.45 and its 95% confidence interval = 0.35 0.55, that means that a repeat of the experiment conducted 100 times would yield a RRR somewhere between 0.35 and 0.55 ninety five times. If the confidence interval does not include the number one for RR (or the number zero for RRR), the point estimate will be statistically significant. As a

hypothetical example, consider the case that nonunion occurred in 14 of 100 cases of open fracture receiving external fixation and 26 of 100 cases in those receiving ORIF. The RR would be 0.46, and the 95% confidence interval would be 0.30 to 0.97. Here, the confidence interval excludes 1.0 and this tells us that the pvalue will be significant at the 0.05 level; in fact, in this example, p=.034, telling us that the point estimate of 0.46 is statistically significant. Now take a look to see what happens when we change the rate in the ORIF group slightly from 26 of 100 cases of nonunion to 24 of 100 cases. The RR would be 0.58 and the 95% confidence interval would be slightly wider, 0.32 to 1.06, p=0.07. Here, the number 1.0 is included in the confidence interval telling us that the point estimate of 0.58 is not statistically significant. As you can see, the confidence interval is closely related to the p-value. With the use of confidence intervals, you can use your clinical experience to judge if the size of the effect is large enough to be important clinically. 3. Discuss any weaknesses and strengths? in your research design or problems with data collection, analysis, or interpretation. Disclosure of weaknesses or limitations is often difficult; however, honesty is the cornerstone of clinical research. Readers will often identify these anyway, so discussing them gives you an opportunity to defend them and/or recommend ways to overcome them when others attempt to answer similar questions. 4. Discuss the results in the context of the published literature Describe the similarities and differences of your work with that of other authors who have done similar studies. Make an attempt to explain why your findings may be similar and why they may be different. Be cautious not to attempt to review the whole body of literature on this topic. Again, brevity is important so be selective in which studies you choose to review.

5. Discuss the generalizability of the results The purpose of your study is to produce results that the entire orthopedic community can apply to their practice. The ability to generalize your findings is dependent on your study population, its inclusion and exclusion criteria, and other factors such as your follow-up rate. 11.6 CONCLUSIONS Limit your conclusions to only those supported by the results of your study. Unsupported conclusions are very common in scientific research. Consider the following principles1: You should provide equal emphasis on positive and negative findings. Results of secondary or post hoc analyses should be presented as explanatory. Conclusions should be based on fact and logic, not supposition or speculation. Studies using surrogate endpoints (eg, muscle strength, range of motion, perhaps even bony union) should be interpreted with caution. In other words, just because a patient has good shoulder strength and range of motion does not necessarily mean they have a good final outcome if they cannot perform activities of daily living

Findings

SUGGESTION

In the report we have seen the graph of order booking targets and sales turnover. In the graph of order booking we have seen that the order for our product is increasing year. It means that with the increase of order to target. We have efficiency of the organisation, we have to improve on certain points: Cost efficiency: To get the achievement of cost efficiency we have to keep certain points in our mind they are resale of scraps, inventory management, work distribution. Profit generation: In the SWOT analysis we have seen there is a great opportunity products, these can be turnkey for the company. The company should try to work on export. They should lay more emphasis on export. Improving technology: There is no doubt that the product of company is not good. But from time to time the regular improvement of the technology. It improves the quality of the product as well as save the time. Becoming a global player: With the last dealings we can conclude that the company had satisfy there maximum customers. After those dealings the company should try to get a good name in India as well as in international market.

Employee handling: Generally we have seen that in the maximum government sectors there is lack of professionalism. It means that we have to make an environment of work in the company. The company should try to motivate the worker to become punctual and loyal for the company.

Product: PRODUCTS o o o Centrifugal Pumps DA Cylinders High Pressures Cylinders 25% 10% MARKET SHARE 10%

o o o

Sucker Rod Pumping Unit Reciprocating Compressors Centrifugal Pumps

02% 25% 10%

In the given statistics we have seen the market share of the products. In the case of DA Cylinders and Reciprocating Pumps there is largest market share of BPC. It means we should concentrates on those products which have very low market shares.

BIBLIOGRAPHY BOOKS: Pandey I M Financial Management S.P. Gupta Business Statistics M.N. Arora - Cost and Management Accounting Economic Times Economic Times Annual Report of BPCL WEBSITE:-WWW.BBARATPUMPS.CO.IN