A PROJECT REPORT ON

VERIFICATION OF BANKING TRANSACTIONS

Submitted to PUNJAB TECHNICAL UNIVERSITY, JALANDHAR Submitted in the partial fulfillment of the Degree requirement towards the

Submitted By: Anu bala MBA IIIrd Sem. Roll No. 100112243231

Submitted To:

SESSION (2010-2012)

BHAI GURDAS INSTITUTE OF ENGINEERING & TECHNOLOGY SANGRUR

TABLE OF CONTENTS

Declaration Certificate from the Organization Certificate of Supervisor (Guide) Acknowledgement Executive Summary
Chapter-1 Introduction

1. 2. 3. 4. 5.

To the topic Overview of the Industry Profile of the Organization Need of the study Objectives of the study

Chapter-2 Research Methodology

1. 2. 3. 4. 5. 6. 7.

Statement of the Problem Research Design Sampling Techniques used Selection of Sample Size Data Collection Statistical Tools Used Limitations of the Study

Chapter-3 Data Analysis and interpretation Chapter-4 Conclusion and Suggestions

o o o

Annexure Questionnaire Bibliography

DECLARATION
I Anu bala a student of MBA, 2010-2012 batch, Bhai Gurdas institute of engineering and techonology, here by declare that the project on, verification of banking transactions is my original work and it has not previsously formed the basis for the award of any other degree, diploma, fellowship or other similar titles. It has been done under the guidance of A.N Prashar ( external guide)

Anu Bala

CERTIFICATE

This is to certify that the project report entitled verification of banking

transactions is a bonofide work carried out by miss Anu bala

d/o SUB Jaimal Singh has been accomplished under guidance and supervision. This project is being submitted by her in the partial fulfillment of the requirements for the award of the Master of Business Administration from Bhai gurdas institute of engineering and technology Punjab technical university; Jalandhar. This is an original work and has not been submitted by him anywhere else for the award of any degree/diploma. All sources of information and help have been duly mentioned and acknowledged.

Anu bala BGIET sangur MBA3rd sem Date :

ACKNOWLEDGEMENT
I feel immense pleasure to give the credit of my project work not only to one individual as this work is integrated effort of all those who concerned with it. I want to owe my thanks to all those individuals who guided me to move on the track. This report entitled VERIFICATION OF BANKING TRANSACTIONS" is the outcome of my summer training at Punjab state power corporation limited(head office Patiala). I sincerely express my gratitude and lot of thanks to Mr.A.N Prashar, and to the staff of Punjab state power corporation for helping me in completing my project work and making it a great success. I would like to express my deep sense of gratitude to staff of BHAI GURDAS Institute of engineering and technology , Sangrur who introduced me to the subject and under whose guidance I am able to complete my project. Last but not least, I would thank all my friends, faculty members and all respondents who rendered their precious time for contributing their skills and to fill the questionnaire, which made my project more appealing and attractive. ANU BALA

EXECUTIVE SUMMARY

C H A P T E R - I

INTRODUCTION

INTRODUCTION

verification
Definitions 1. Comparison of two or more items, or the use of supplementary tests, to ensure the accuracy, correctness, or truth of the information. 2. Alternative term for acknowledgment.

banking
Definition In general terms, the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit.

Transaction
Definitions 1. General: Agreement, contract, exchange, understanding, or transfer of cash or property that occurs between two or more parties and establishes a legal obligation. Also called booking or reservation.

2.

Accounting: Event that effects a change in the asset, liability, or net worth account. Transactions are recorded first in journal and then posted to a ledger.

3.

Banking: Activity affecting a bank account and performed by the account holder or at his or her request. Commerce: Exchange of goods or services between a buyer and a seller. Every transaction has three components: (1) transfer of good/service and money, (2) transfer of title which may or may not be accompanied by a transfer of possession, and (3) transfer of exchange rights.

4.

5.

Computing: Event or process (such as an input message) initiated or invoked by a user or computer program, regarded as a single unit of work and requiring a record to be generated for processing in a database. In a secure transaction (see ACID qualities) such events are regarded as a single unit of work and must either be processed in their totality or rejected as a failed transaction.

VERIFICATION OF BANKING TRANSACTION Verification of banking transaction is a process of verifying the amounts, checks from the ledger of bank with remittance sheet which provides the accuracy, correctness and truth of the information. Verification is a alternative term for acknowledgement.

BANK TRANSACTION The Bank Transactions report contains information about all transactions, including deposits, checks, transfers, and other bank activity, grouped by bank accounts and by date over a selected time period. If you have questions about your bank account, or if you need assistance in the monthly reconciliation process, you can use this report to research the information that affected those accounts.

CASH CONTROLS CASH Coins, currency, checks, money orders, and money on hand or on deposit at a bank or a similar depository. INTERNAL CONTROL OVER CASH IS IMPERATIVE To safeguard cash and assure the accuracy of the accounting records.

INTERNAL CONTROL OVER CASH AND RECEIPTS

INTERNAL CONTROL OVER CASH AND DISBURSEMENTS

USE OF A BANK Bank minimizes the amount of the currency that must be kept in hand Contributes significantly to good internal control over cash.

 A double record of cash is maintained, one by the company, one by the bank. These two accounts are reconciled. BANK STATEMENTS A bank statement shows: checks paid and other debits charged against the account Deposits and other credits made to the account Account balance after each days transactions The bank statement is a copy of the banks records sent to the customer for review. RECONCILING THE BANK ACCOUNT Reconciliation:

Is necessary as the balance per bank and balance per books are seldom in agreement due to time lags and errors.

A bank Reconciliation:

Should be prepared by an employee who has no other responsibilities pertaining to cash.

RECONCILING THE BANK ACCOUNT Steps in preparing a bank reconciliation: Determine deposits in transit Determine outstanding checks Note any error discovered Trace bank memoranda to the records

Each reconciling item used in determining the adjusted cash balance per books should be recorded by the depositor.

BANKING RECONCILIATION

Bank Reconciliation
Banks usually send customers a monthly statement that shows the account's beginning balance (the previous statement's ending balance), all transactions that affect the account's balance during the month, and the account's ending balance.

Bank Reconciliation Statement

One of the most important tasks in the monthly Accounting cycle is to prepare a Bank Reconciliation Statement. The purpose of the preparing a Bank Reconciliation Statement is: (a) To ensure that all transactions that effect your bank account have been properly recorded in your accounting system. For example, it would be possible that you may write out a cheque but forget to record it in your accounting system (i.e. the cash payments journal). A failure to record transactions affecting your bank account would result in you not knowing how much funds you had available. (b) To check that your Bank has not made mistakes. In fact Banks do make mistakes. Generally if the mistake is in your favour, you say nothing but if the mistake takes money

away from you, then you complain to the bank! In one famous case, a Bank accidentally deposited $50 million in a private bank account. The Bank discovered its error after one week and took the money bank. However, the Bank failed to recover the $58,000 interest the account owner earned. Wouldn't it be nice! Essentially, the Bank Reconciliation statement tests the difference between the Bank Balance on your bank statement and the Bank Balance in your Accounting Systems. There will almost always be a difference.

What does a Bank Reconciliation Statement look like? The illustration below shows a bank reconciliation statement as having two sections. Section A is where you calculate what your bank account balance from your own financial database. Section B is where you list the differences between the transactions appearing on your bank statement and the transactions appearing on your cash journals.

How do you get started? First work out Section A. This is where you will work out your Bank Balance at the end of the month. The computation is simple.

Add the receipts for the month to the Bank Balance at the beginning of the month. Then take away the payments. This will give you the Bank Balance at the end of the month. Then work out Section B. You should neatly tick every transaction that appears in both places (the Bank Statement and the Cash Journals). Then what is left should explain the difference between what you say is in your bank account and what the banks says. The task of preparing a bank reconciliation statement is all about comparing the transactions on your cash payments journal and cash receipts journal with the transactions that appear on the Bank Statement. If you find any differences they must go in Section B.

Project monitoring
Monitoring is a necessary core management instrument, both for projects that might be encountering problems and for projects which are encountering particular success. The general objective of all monitoring activity is to maximise the impact of the programme and, as importantly, to maximise the return on investment of EU funds through the achievement of public policy objectives. Benefits of monitoring extend beyond a given project, since lessons can be learnt and principles of best practice disseminated. Monitoring is critical to all projects. Each project should have embedded internal project monitoring arrangements to check progress / achievement of milestones, identify problems, recognise the need for change / amendment / development and ensure quality. Monitoring is therefore to be perceived as a positive and constructive activity supporting the project and helping it to realise its objectives. With the start of Tempus IV phase a new monitoring approach has been introduced which links strong desk monitoring activities and a reinforced field monitoring policy. Both desk and field monitoring have three functions/aspects: Preventive: information on the rules & procedures - review of objectives, priorities, methodology, activities planned

Advisory: recommendations on both the content and the financial aspects

Control: check and assessment of the results

There are three specific stages in project monitoring: Step 1: Following the launching of the project - period during which the organization and the management of the consortium are set up - an exercise of field monitoring can already take place at that time and issue recommendations, the results of which will appear in the interim report (period for field monitoring: 3 to 12 months after the beginning of the period of eligibility) Step 2: Following the interim report, when the various activities of the project are deployed, the field monitoring concentrates more on the control of the activities, the links between the contents of the interim report and the situation on the ground and makes recommendations for the continuation of the project (period for field monitoring: after receipt of the interim report; in the last 6-12 months of the period of eligibility) Step 3: After the completion of the project, the field monitoring will aim to evaluate the results of the projects, its consequences, its impact, the sustainability of the activities and programmes set up, the multiplier effect; financial management relating to the use of the grant (period for field monitoring: 3 to 15 months after the end of the period of eligibility). Tempus IV field monitoring policy is based on EACEA Tempus unit staff and National Tempus Offices monitoring to be complemented by external monitoring experts upon request by parent DG. It is the responsibility of the Agency to follow the project cycle and to monitor closely the implementation of the selected proposals. In the

framework of their terms of reference, NTOs are required to undertake field monitoring of all projects involving HE institutions from their country (based on the monitoring plan approved by EACEA Tempus unit), to report to the Agency and to propose recommendations. In the field monitoring, NTOs will mainly focus on:

Effectiveness Sustainability Efficiency

Field monitoring is taken to be a major task amongst the NTO activities. Field monitoring reports prepared by NTOs facilitates desk monitoring operations by EACEA staff and is complementary to EACEA follow up of grant holder and partner activities. When EACEA - Tempus unit undertakes field monitoring, it can either be by joining a monitoring mission scheduled by an NTO or a specific project on which the local NTO is asked to accompany. In this case the NTO will therefore also participate actively in the field monitoring exercise. EC Delegations will be invited and their involvement is encouraged.

Importance of Bank Documents and Their Verification:

The Law of evidence plays a pivotal role in the effective functioning of the judicial system. The existence of substantive rights can only be established by relevant and admissible evidence. Relevancy of facts is the key to determine the outcome of the judicial process which is based on fair trial without fear or favor and upholding the principles of Natural Justice and Human Rights. Hence the importance of evidence neither be overlooked nor be ignored. The proof of evidence comes out of documents and the establishment of relevant evidence is through the verification of documents. Hence the documents and verification of documents are very important and very essential to establish the truth and to bring Justice.

Evidence means and includes(a) All statements which the court permits or requires to be made before it by witnesses, in relation to matters of facts under inquiry, such statements are called oral evidence; (b) All documents including electronic records produced for the inspection of the court; such documents are called documentary evidence. What are Bank documents? It is generally believed that the documents signed by any person to avail any facility alone are bank documents. If anybody nurses such a belief, then he is wrong particularly for a borrower. The very first day when a potential customer approaches a bank to establish a relationship with the bank through an interaction, the potential document and the proof thereof begins. There are oral and documentary evidences. Oral evidence need not constitute documentary evidence. But when minutes of the meetings / discussions are recorded, it becomes a documentary proof. 1. Banks do not entertain any proposal without a preliminary discussion and if such discussion takes place neither the minutes of the meeting and discussion are recorded nor the gist of the meeting is made either by the bank or by the prospective borrower. Thus an opportunity to create a document is lost for the prospective borrower. 2. If the discussion bears fruit, then the bank requests their prospective borrower to submit their application for bank facility containing all relevant information along with the detailed project report of the proposed venture. The bank may also ask the borrower to open their account and start their bank transactions so that the bank can monitor their activities from the very beginning itself. One of the most important aspects of opening the account is the introduction of KYC norms which should be complied with and it is mandatory. The bank customer is entitled to receive the certified copies the aforesaid documents and these constitute the first documents. 3. After the receipt of the application for bank facilities along with the project

report, the bank undertakes a technical feasibility and economic viability study in detail. During the course of the study the bank may raise many queries and sometimes further discussion on the project proposal for which the borrower client will have to give convincing and satisfactory replies in writing. It may be noted if any meetings and discussions take place with regard to the proposed project, then the minutes of the meeting and discussion should be recorded in detail and duly acknowledged by the borrower and the bank officials. If the bank is satisfied with the replies of the borrower customer, then they after discussion sanction the facilities and intimate the borrower in writing regarding the sanction with all relevant terms and conditions. The entire process is carried out through various documents and these constitute very important documents. 4. Once the loan is sanctioned, the bank conveys their sanction in duplicate with all the terms and conditions to the borrower along with all relevant documents and related papers and get them acknowledged by the borrower for having accepted the terms and conditions. If the borrower belongs to corporate sector, then a resolution is passed by the borrower company for having accepted the terms and conditions as per the banks requirement. The entire documents and papers and letters exchanged between the bank and the borrower become very important documents. 5. In case the bank rejects the proposal, then they have to give valid reasons for rejecting the proposal and if the borrower is not satisfied with the reasons, then they can make a representation to the bank to reconsider their decision. 6. After the sanction of the facility, the borrower executes bank documents with regard to the facilities sanctioned so as to enable the bank to create security documents legally binding the bank and the borrower so that the bank becomes a secured creditor. After fulfilling and complying with all the terms and conditions as stipulated in the sanction letter, the bank releases the funds for the utilization of released fund for the purpose for which it is released. If the borrower is a company incorporated as per the Company law, then they will have to create charge on the secured assets in favor of the bank within 30 days from the date of the documents. Subsequently there can be modification, verification and satisfaction of the charges created. All these form important documents.

7. The moment the bank releases the funds, credit monitoring by the bank begins. Since bank credit is purpose oriented, post sanction supervision, control and monitoring of credit becomes very important. Further it also helps the bank to prevent any slippage by which the account becomes an NPA. Hence if credit monitoring is done judiciously, diligently, honestly and focusing on the purpose for which the credit was granted, then it can prevent the account becoming NPA and the unit becoming sick. The supervision, control and monitoring of credit may be divided into the following categories. (I) (a) Legal control. (b) Physical control. (c) Financial control. (II) Off-site and onsite inspection and supervision. (III) Off-site supervision by banks. (IV) Returns / statements submitted to the bank at the instance of Reserve Bank of India. They are: (a) Quarterly Information System (QIS) Forms I and Form II (b) Half Yearly operating fund flow statement Form III (c) Annual review. (d) Monthly statement of select operational data (MSOD). (e) Control at the instance of the bank. (f) Monthly Stock Statement and yearly stock audit.

All the above items constitute yet other important documents more so they contain banks observations. 8. Besides, any correspondence exchanged between the borrower and the bank becomes documentary evidence. Hence the communication becomes an important toll which will aid the borrower to establish his credibility. 9. The importance of verification of documents is based on the fact that the contents of the documents may be proved either by primary or secondary evidence. The principle is best evidence in the possession of power of the party must be produced. What the best evidence is, it must depend upon circumstances. Generally speaking, the original document is the best evidence. This is the general and ordinary rule; the contents can only be proved by the writing itself. Further, The contents of every written paper are, according to the ordinary and well established rules of evidence, to be proved by the paper itself, and by that alone, if the paper is in existence. This tenet of law clearly establishes the need for verification of documents. Besides, the existence of any onerous clause or any distortion in the terms and conditions as laid down in the sanction letter or any breach of contract if any, and any lacuna that exists in the document can be established only by verification of the documents. 10. In the ultimate analysis, communication is the most vital aspect of any dealings particularly so in legal matters. It can make a life or mar a life. GENERAL OBJECTIVES OF THE SUBJECT Establish a rigorous and complete analysis of the different financial products and services currently offered by banking entities (banks, savings banks and credit cooperatives) in their operations. The initial framework encompasses all financial operations and services offered by banking institutions. This is studied from the standpoint of the customer, company or individual demanding the transaction or service in question. All transactions will be valued in money terms, and also according to the cost or effective yield of the transaction, which will be referred to

as the effective return of the transaction. PRACTICALS IN THE COMPUTER CLASSROOM A computer will be used to quantify and simulate the main banking transactions (current accounts, credits, loans, bank discounts, etc.), with a dual objective: firstly, to determine credits and debits generated by each transaction; and secondly, to obtain the cost or effective rate of return of each transaction. METHODOLOGY AND WORK PLAN In order to achieve the abovementioned objectives, in addition to the normal theoretical practical classes, a work programme will be developed based on the quantification of bank transactions by computer. ASSESSMENT SYSTEM. Students attending the courses on a regular basis (examinations in February and July) will be assessed on the basis of continuous work and attendance at computer classes (1 point), the resolution of one practical banking transaction case study on computer (1 points) and the completion of a theoretical-practical examination (7.5 points). In July and September the subject will only be assessed on the basis of completion of the theoretical-practical examination. PROGRAMME TOPIC 1.- BANKING SYSTEM AND BANK INSTITUTION. OBJECTIVES: An explanation will be offered of the functioning of the Spanish financial system and, within this system, the role played by the banking system. 1.1- Concept, function and elements of the financial system. 1.2- Current structure of the Spanish financial system. 1.3- Credit and banking system. 1.4- Banking institutions and banking business. 1.5- Organization of banking activity. 1.6- Banking transactions .

TOPIC 2.- ASPECTS OPERATIONS.

THAT

DEFINE

BANKING

FINANCIAL

OBJECTIVES: Review the basic concepts that define financial operations and which we will apply in the study of the different banking operations. 2.1- Value of money in time and interest rate. 2.2- Methods for calculating interest. 2.3- Nominal rate and effective interest rate (ERI). 2.4- Cost or effective rate of return of banking transactions. Equivalent annual rate (EAR). 2.5- Valuation dates. 2.6- Effective rate of return (ER). 2.7- Description, analysis and valuation of income. TOPIC 3.- PASSIVE BANKING OPERATIONS. OBJECTIVES: Study the main passive banking transactions in which banks obtain income, with special emphasis on the calculation of the profitability obtained by customers. 3.1- Introduction. 3.2- Current accounts: concept, description and operation. 3.3- Savings accounts 3.4- fixed-term deposits 3.5- Deposit certificates 3.6- Cash and treasury bonds. TOPIC 4.- ACTIVE BANKING OPERATIONS (I). OBJECTIVES: Study the different active bank operations in banking (Loans), calculating the effective cost for customers. 4.1Introduction. 4.2- Differences between credits and loans. 4.3- Credit accounts: description, repayment of interest and cost.

4.4- Types of loans: Index-linked, mortgage-based and currency-based 4.5- Applying for credit 4.6- Transfer of credit. TOPIC 5.- ACTIVE BANKING OPERATIONS (II) . OBJECTIVES: Study the different active bank operations in banking (discount), calculating the effective cost for customers. 5.1- Banking discount. Description, repayment of interest and cost. 5.2- Guarantees. TOPIC 6.- INTERNATIONAL BANKING TRANSACTIONS. OBJECTIVES: Analyse different international banking transactions, with special emphasis on the study of documentary Credit. 6.1- Introduction. 6.2- Sale-purchase of currencies and exchange risk; exchange rate hedging. 6.3- International payment methods. Documentary credit. 6.4- Financing of exports 6.5- Financing of imports. TOPIC 7.- BANKING SERVICES. OBJECTIVES: The different existing and new banking services are analysed in detail. 7.1- Introduction 7.2- Transfers 7.3- Cheques. 7.4- Exchange bills. 7.5- Promissory notes 7.6- Cards 7.7- Confirmed payment

7.8- Factoring 7.9- Cash services 7.10- Cash transactions and payment and settlement orders 7.11- Management of the collection of trade bills. 7.12- Direct debiting 7.13- Transactions on marketable securities on the account of issuing entities. 7.14- Safes 7.15- Night drop box 7.16- Commercial reports 7.17- E-banking. TOPIC 8.- CONTROL OF BANK ACCOUNTS. OBJECTIVES: Students will analyse the activities of banking entities and the facilities available to customers who wish to present claims if they are not happy with the performance or service offered by same. 8.1- Credit investments and risk analysis. 8.2- Evaluation process and transfer of risks. 8.3- General criteria of performance of banking entities. 8.4- Claims Services of the Bank of Spain. TOPIC 9.- OTHER FINANCIAL FIGURES AND ENTITIES. OBJECTIVES : Students will study other activities developed by financial entities and which have been incorporated banking entities. 9.1- Financial Leasing. 9.2- Renting. 9.3- Investment funds. 9.4- Pension plans. 9.5- Life insurance, savings and retirement plans. OVERVIEW OF THE INDUSTRY

COMPANY OVERVIEW:

Punjab state electricity board (PSEB) is a government organization engaged in power generation transmission and distribution. The company produces and supplies electricity to the customers of the state of the Punjab. The company is a statutory body formed in 1959 under the electricity supply, act 1948. In its present form, it came into existence with effect from 1st may, 1967. PSEB owns and operates power stations based on various technologies including thermal and hydro. The company has a total installed capacity of 6,841.366 MW. PSEB also constructs and maintains its transmission and distribution system for supplying electricity to the various categories of consumers in the state.

HISTORY OF PUNJAB STATE ELECTRICITY BOARD

STATEMENT SHOWING OBJECTS AND REASONS FOR PLACING ANNUAL FINANCIAL STATEMENT FOR THE YEAR 2008-09 BEFORE THE LEGISLATIVE ASSEMBLY. Punjab State Electricity Board was constituted by govt. of Punjab (I&P Deptt.) on first day of may,1967 under section 5 of the electricity (supply) Act,1948 (hereinafter called the act) vide it notification no.5279-I&EL(7) 189/67/9563 dated 29.4.1967. The board is charged with the following general under section 18 of the idbi act:I. II. To arrange the supply of electricity within the state and for the transmission & distribution of the same in the most efficient and economical manner. To exercise control in relation to the generation, distribution and utilization of electricity within the state as per the provision of the act. To prepare and carry out the schemes for establishing generating station and transmission and distribution of power within the state and to operate them etc. To collect data on demand for, and use of electricity and to formulate perspective plan for the generation, transmission and supply of electricity within the state.

III.

IV.

According to the section 61 of the act, board is required to submit to the state of govt. in February each year, a statement of estimate capital and revenue receipt and expenditure for the ensuring year and the latter shall cause it to be laid on the

table of the house of the state legislature for discussion. In order to fulfill this statutory requirement the annual financial statement of the board of the financial year 2008-09 as received from the board is placed before the state legislature. The electricity Act-2003 has been enacted, but the said act, there is no guideline for preparation of annual financial statement and its laying on the table of state legislature. As such, the financial statement has been prepared in compliance to section 61 of the electricity (supply) Act, 1948. SWOT ANALYSIS PUNJAB STATE ELECTRICITY BOARD SWOT ANALYSIS STRENGTHS: Diversified customer base Vertically integrated operations WEAKNESSES Delay in unbundling of PSEB Insufficient infrastructure OPPORTUNITIES Agreement and contracts Increasing demand for electricity in Punjab THREATS Extreme weather conditions Intense competition KEY COMPETITORS The Tata power company limited Uttar Pradesh electricity board

 Auro energy limited Maharashtra state electricity board Gujarat state electricity corporation limited PROFILE OF THE ORGANISATION

NEED OF THE STUDY

The need of the study arises because of the reason that a trainee must understand the company, its achievements and tasks, and its services offered. So that, after understanding and collecting information about the organization, a trainee will be able to work well for the organization. From the study I have learned very much, about the company as well as its product named Verification of banking transaction which will help me a lot at my future working days. The study of banking reconciliation and monitoring provide a accurate record of the transactions. This study provides a written record about the transaction of many years. The need for the study is to know about the overall transactions of the banking and its verification in the monitoring section of the PSPCL(Head Office).

OBJECTIVE OF STUDY
The following are the main objective which has been undertaken in the present study . The major objective of the study is to get accuracy of transactions. It helps in removing the defaults. It gives a proper record of the banking transactions which provides exact knowledge about transactions. The major objective for a trainee is to learn more about the banking transactions verification and its reconciliation.

PUNJAB STATE POWER LOCATION VIEW:

C H A P T E R - I I

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Introduction and Meaning

 Research is a careful investigation or inquiry especially through search for new facts in branch of knowledge: market research specifies the information. Required to address these issues: designs the method for collecting information: manage and implements the data collection process analyses the results and communicates the finding and their implications.

Research problem is the one which requires a researcher to find out the best solution for the given problem that is to find out the course of action, the action the objectives can be obtained optimally in the context of a given environment. Techniques The problem definition can be said to be the quite essential part of the research process; as it determine precisely, what the managerial problem is and the type of information that the research can generate to help the problem before conducting the fieldwork. It is better to decide upon the method/technique of data collection. Generally, there are two technique of data collection are: 1. Census Technique 2. Sample Technique or Convenient sampling A census is a complete enumeration of each and every unit of population where as in a sample only a part of the universe is studied and conclusion about the entire universe is drawn about that basis. The census method is costlier and more time consuming as compared to sampling method but the result are near representatives than sample method. The availability of

resources, time factor degree of accuracy desire and scope of the problem enable us to apply sample technique. Data Collection The objectives of the project are such that both primary and secondary data is required to achieve them. So both primary and secondary data was used for the project. The mode of collecting primary data is questionnaire mode and sources of secondary data are various magazines, books, newspapers, & websites etc.

RESEARCH DESIGN
Its mean to collect data for doing research. Data collection is refers to research design. There are two types of data collection. 1. Primary data. 2. Secondary data.
Primary Data The primary data was collected to measure the customer satisfaction and their perception regarding ICICI Prudential Life Insurance. The primary data was collected by means of questionnaire and analysis was done on the basis of response received from the customers. The questionnaire has been designed in such a manner that the consumers satisfaction level can be measured and consumer can enter his responses easily.

Primary data: Primary

data are those which are

collected a fresh and the first time happen to be original in character. It has been collected through a { Personal meeting with senior} 2. Secondary Data The purpose of collecting secondary data was to achieve the objective of studying the recent trends and developments taking place in Life Insurance.

Secondary data:

Secondary data are those which have already been collected by someone else and which have already been passed through the stratified process E.g. Books, Internet, journals .

The method section of an APA format psychology paper provides the methods and procedures used in a research study or experiment. You should provide detailed information on the research design, participants, equipment, materials, variables and actions taken by the participants. The method section should provide enough information to allow other researchers to replicate your experiment or study.

The method section should utilize subheading to divide up different subsections. These subsections typically include: Participants, Materials, Design and Procedure. Difficulty: Average Time Required: Variable Here's How: Participants: Describe the participants in your experiment, including who they were, how many there were and how they were selected.
1.

For example: We randomly selected 100 children from elementary schools near the University of Arizona. Materials: Describe the materials, measures, equipment or stimuli used in the experiment. This may include testing instruments, technical equipments, books, images or other materials used in the course of research.
2.

For example: Two stories form Sullivan et al.'s (1994) second-order false belief

attribution tasks were used to assess children's understanding of secondorder beliefs. Design: Describe the type of design used in the experiment. Specify the variables as well as the levels of these variables. Explain whether your experiment uses a withingroups or between-groups design.
3.

For example: The experiment used a 3x2 betweensubjects design. The independent variables were age and understanding of second-order beliefs. Procedure: The next part of your method section should detail the procedures used in your experiment. Explain what you had participants do, how you collected data, and the order in which steps occurred.
4.

For example: An examiner interviewed children individually at their school in one session that lasted 20 minutes on average. The examiner explained to each child that he or she would be told two short stories and that some questions would be asked after each

story. All sessions were videotaped so the data could later be coded.

Analysis and Interpretation

After the data collection, it was compiled, classified and tabulated manually and with help of computer. Then the task of drawing inferences was accomplished with the help of percentage and graphic method. Different suggestions given by me to the Company after analyzing the views of every respondent are also given in the report.

Methodology can be: define as ealier shown in the diagram:

Research Methodology refers to search of knowledge .one can also define research methodology as a scientific and systematic search for required information on a specific topic. The word research methodology comes from the word advance learner s dictionary meaning of researches a careful investigation or inquiry especially through research for new facts in my branch of knowledge for example some author have define research methodology as systematized effort to gain new knowledge. "The analysis of the principles of methods, rules, and postulates employed by a discipline";

1. "The systematic study of methods that are, can be, or have been applied within a discipline". 2. A documented process for management of projects that contains procedures, definitions and explanations of techniques used to collect, store, analyze and present information as part of a research process in a given discipline. 3. The study or description of methods

This definition explains that research involves acquisition of knowledge. Research means search for truth. Truth means the quality of being in agreement with reality or facts. It also means an established or verified fact. To do research is to get nearer to truth, to understand the reality. Research is the pursuit of truth with the help of study, observation, comparison and experimentation. In other words, the search for knowledge through objective and systematic method of finding solution to a problem/answer to a question is research. Research is a systematized effort to gain new knowledge. Research is the systematic process of collecting and analyzing information (data) in order to increase our understanding of the phenomenon about which we are concerned or interested. What is a problem statement? In reviewing numerous manuscripts for possible publication in this peerreviewed journal, as well as reading numerous studies published in other journals, we repeatedly find that problem statements are absent or incomplete, and there seems to be continuing confusion as to what comprises a problem statement. Are purpose and problem statement synonymous? Does a study objective, hypothesis, or summary of the content of the report comprise a problem statement? To add to the confusion, research methods textbooks in the social sciences do not clarify the matter, although they may note that research examines problems or that it engages in problem solving.

More than a decade ago, Hernon and Metoyer (Hernon & Metoyer-Duran, 1993; Metoyer Duran & Hernon, 1994) supplied sample problem statements to researchers in library andinformation science and other social science disciplines in an attempt to investigate different attitudes toward the composition of a problem statement. They discovered nine attributes that respondents associated with problem statements (Hernon & Metoyer-Duran, 1993, pp. 8283): 1. clarity and precision (a well-written statement does not make sweeping generalizations and irresponsible statements); 2. identification of what would be studied, while avoiding the use of valueladen words and terms. 3. identification of an overarching question and key factors or variables; 4. Identification of key concepts and terms; 5. Articulation of the study's boundaries or parameters 6. Some generalizability; 7. Conveyance of the study's importance, benefits, and justification (regardless of the type of Research, it is important to address the so what question and to demonstrate that the research is not trivial); 8. No use of unnecessary jargon; and 9. Conveyance of more than the mere gathering of descriptive data providing a snapshot. 1. The components of a problem statement More than 30 years ago, one of us while a doctoral student took a course on reflectiveinquiry taught by one of the foremost researchers in higher education at Indiana University. Hisconceptualization of a problem statement actually guides the expectations we have for allpapers submitted for review in Library & Information Science Research. Furthermore, over the years, that conceptualization has gained resounding support from other researchers.Dr. David Clark stressed that any problem statement in the social sciences should contain four components:

1. Lead-in; 2. Declaration of originality (e.g., mentioning a knowledge void, which would be supported by the literature review); 3. Indication of the central focus of the study; and 4. explanation of study significance or the benefits to be derived from an investigation of the problem. Study significance must survive the so what question as well as the how so question, andthe lead-in helps set up the third component and attract a readership. Dr. Clark viewed a purpose statement as part of the third component, adding that a statement of purpose indicates what the study will accomplish but does not place that goal or task in the context of a problem. Some researchers, he noted, prefer to substitute an overarching question or two for a purpose statement. A mere question, however, does not identify a problem, that is, a conflict or something unsettled, perplexing, vexing, distressful, and in the need of investigation. For illustrative purposes, suppose that two people do not get along. There is definitely a conflict or problem. Does the resolution of the problem, however, require, the conduct of research, or might there be other ways to resolve the conflict? The problem statement must clearly indicate the former, if the intention is to support a research study. Dr. Clark also reminded his students that a subsequent section of reflective inquiry coversobjectives, research questions, and hypotheses, and therefore these components are out of scope for the problem statement. In teaching students to write good problem statements, he required them to develop three, interlocking short sentences: (1) the lead-in, (2) a statement about originality, with an identification of what the study would do, and (3) a justification. For example,

Communities? A background section could address such matters. Third, does information seeking behavior encompass information dissemination practices? Does the second sentence Narrow and sufficiently clarify the intent of the proposed study? And, finally, the third sentence will have to result in a paragraph or two that addresses how the data to be gathered will useful for public library service improvement and planning. Once the problem statement is written, the remaining parts of the research study should flow from it. In a sense, research is like dealing with a set of propositions in a debate or an argument adhering to the principles of logic. The purpose is to persuade or gain acceptance of the conclusion. To do so, it is essential for others to accept the first and all subsequent propositions. The problem statement is the first proposition, and we need to accept it before considering the next proposition.

OBJECTIVES OF THE RESEARCH

The company wants to know about the awareness of bank transaction sector, so I to accomplish the objective conducted the study. PSEB:

The main objectives of research are:

OBJECTIVE

The main objective of this Expression of interest (EOI) is to explore the technologies available in this field and to develop a suitable project/ tender document including detailed technical specification after studying the offer. Creation of digital map is a step towards building a web enabled GIS for transmission network to know physical identification of its assets. The state of art technology would also assist in taking up optimum route survey of future lines and maintaining an accurate map of the network.

To know the scope of as an investment opportunity and to know the priority of people while selecting different Saving Schemes. To know about the future plans of people.

VISION & VALUE

Our vision: Our vision of the head office is to provide the accurate report about the bank transactions by verifying the MTS of the bank ledger in the monitoring section of the head office PSPCL. This we hope to achieve by:

Understanding the needs of and offering them superior services. Leveraging technology to service customers quickly, efficiently and conveniently. Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders

And above all, building transparency in all our dealings.

C H A P T E R - I I I

DATA ANALYSIS AND ITS INTERPRETATION

DATA ANALYSIS Data collection is the systematic recording of information; data analysis involves working to uncover patterns and trends in datasets; data interpretation involves explaining those patterns and trends.

Scientists interpret data based on their background knowledge and experience, thus different scientists can interpret the same data in different ways.

By publishing their data and the techniques they used to analyze and interpret that data, scientists give the community the opportunity to both review the data and use it in future research.

DATA ANALYSIS AND ITS INTERPRETATION Need to edit data before serious analysis and to catch errors as soon as possible.

Options for data cleaning range checks, consistency checks and what these can (and can not) accomplish.

What is meant by data coding and why is it carried out.

Basic meaning of various terms used to characterize the mathematical attributes of different kinds of variables, i.e., nominal, dichotomous, categorical, ordinal, measurement, count, discrete, interval, ratio, continuous. Be able to recognize examples of different kinds of

variables and advantages/disadvantages of treating them in different ways.

What is meant by a derived variable and different types of derived variables. Objectives of statistical hypothesis tests (significance tests), the meaning of the outcomes from such tests, and how to interpret a pvalue.

What is a confidence interval and how it can be interpreted.

Concepts of Type I error, Type II error, significance level, confidence level, statistical power, statistical precision, and the relationship among these concepts and sample size.

Computation of p-values, confidence intervals, power, or sample size will not be asked for on exams. Fishers exact test, asymptotic tests, z-tables, 1-sided vs. 2-sided tests, intracluster correlation, Bayesian versus frequentist approaches, meta-analysis, and interpretation of multiple significance tests are all purely for your edification and enjoyment, as far as EPID 168 is concerned, not for examinations. In general, I encourage a nondogmatic approach to statistics (caveat: I am not a licensed statistician!). ___________________________________________________________ __________________________________

Data analysis and interpretation

Epidemiologists often find data analysis the most enjoyable part of carrying out an epidemiologic study, since after all of the hard work and waiting they get the chance to find out the answers. If the data do

not provide answers, that presents yet another opportunity for creativity! So analyzing the data and interpreting the results are the reward for the work of collecting the data. Data do not, however, speak for themselves. They reveal what the analyst can detect. So when the new investigator, attempting to collect this reward, finds him/herself alone with the dataset and no idea how to proceed, the feeling may be one more of anxiety than of eager anticipation. As with most other aspects of a study, analysis and interpretation of the study should relate to the study objectives and research questions. One often-helpful strategy is to begin by imagining or even outlining the manuscript(s) to be written from the data. The usual analysis approach is to begin with descriptive analyses, to explore and gain a feel for the data. The analyst then turns to address specific questions from the study aims or hypotheses, from findings and questions from studies reported in the literature, and from patterns suggested by the descriptive analyses. Before analysis begins in earnest, though, a considerable amount of preparatory work must usually be carried out.

Analysis - major objectives

1. Evaluate and enhance data quality 2. Describe the study population and its relationship to some presumed source (accounts for all in -scope potential subjects; compare the available study population with the target population)

3. Assess potential for bias (e.g., nonresponse, refusal, and attrition, comparison groups) 4. Estimate measures of frequency and extent (prevalence, incidence, means, medians) 5. Estimate measures of strength of association or effect 6. Assess the degree of uncertainty from random noise (chance) 7. Control and examine effects of other relevant factors 8. Seek further insight into the relationships observed or not observed 9. Evaluate impact or importance

Preparatory work Data editing

In a well-executed study, the data collection plan, including procedures, instruments, and forms, is designed and pretested to maximize accuracy. All data collection activities are monitored to ensure adherence to the data collection protocol and to prompt actions to minimize and resolve missing and questionable data. Monitoring procedures are instituted at the outset and maintained throughout the study, since the faster irregularities can be detected, the greater the likelihood that they can be resolved in a satisfactory manner and the sooner preventive measures can be instituted. Nevertheless, there is often the need to edit data, both before and after they are computerized. The first step is manual or visual editing. Before forms are keyed (unless the data are entered into the computer at the time of collection, e.g., through CATI computer-assisted telephone interviewing) the forms are reviewed to spot irregularities and problems that escaped notice or correction during monitoring.

Open-ended questions, if there are any, usually need to be coded. Codes for keying may also be needed for closed-end questions unless the response choices are precoded (i.e., have numbers or letters corresponding to each response choice). Even forms with only closed-end questions having precoded responses choices may require coding for such situations as unclear or ambiguous responses, multiple responses to a single item, written comments from the participant or data collector, and other situations that arise. (Coding will be discussed in greater detail below.) It is possible to detect data problems (e.g., inconsistent or out of range responses) at this stage, but these are often more systematically handled at or following the time of computerization. Visual editing also provides the opportunity to get a sense for how well the forms were filled out and how often certain types of problems have arisen.

Preparatory work Data cleaning

Once the data are computerized and verified (key-verified by double-keying or sight-verified) they are subjected to a series of computer checks to clean them. Range checks compare each data item to the set of usual and permissible values for that variable. Range checks are used to: Detect and correct invalid values

Note and investigate unusual values Note outliers (even if correct their presence may have a bearing on which statistical methods to use)

Check reasonableness of distributions and also note their form, since that will also affect choice of statistical procedures

Consistency checks
Consistency checks examine each pair (occasionally more) of related data items in relation to the set of usual and permissible values for the variables as a pair. For example, males should not have had a hysterectomy. College students are generally at least 18 years of age (though exceptions can occur, so this consistency check is soft, not hard). Consistency checks are used to: Detect and correct impermissible combinations Note and investigate unusual combinations Check consistency of denominators and missing and not applicable values (i.e., verify that skip patterns have been followed) Check reasonableness of joint distributions (e.g., in scatterplots)

In situations where there are a lot of inconsistent responses, the approach used to handle inconsistency can have a noticeable impact on estimates and can alter comparisons across groups. Authors should describe the decision rules used to deal with inconsistency and how the procedures affect the results (Bauer and Johnson, 2000).

Preparatory work Data coding

Data coding means translating information into values suitable for computer entry and statistical analysis. All types of data (e.g., medical records, questionnaires, laboratory tests) must be coded, though in some cases the

coding has been worked out in advance. The objective is to create variables from information, with an eye towards their analysis. questions underlie coding decisions: 1. What information exists? 2. What information is relevant? 3. How is it likely to be analyzed? It is important to document how coding was done and how issues were resolved, so that consistency can be achieved and the inevitable questions (How did we deal with that situation?) answered. The following

Types of variables - levels or scales of measurement

Constructs or factors being studied are represented by variables. Variables (also sometimes called factors) have values or levels. information. Analytic techniques depend upon variable types Variables can be classified in various ways. A continuous variable takes on all values within its permissible range, so that for any two allowable values there are other allowable values in between. A continuous variable (sometimes called a measurement variable) can be used in answer to the question how much. Measurements such as weight, height, and blood pressure can, in principle, be represented by continuous variables and are frequently treated as such in statistical analysis. In practice, of course, the instruments used to measure these and other phenomena and the precision with which values are recorded allow only a finite number of values, but these can be regarded as points on a continuum. Mathematically, a discrete Variables summarize and reduce data, attempting to represent the essential

variable can take only certain values between its maximum and minimum values, even if there is no limit to the number of such values (e.g., the set of all rational numbers is countable though unlimited in number). Discrete variables that can take any of a large number of values are often treated as if they were continuous. If the values of a variable can be placed in order, then whether the analyst elects to treat it as discrete and/or continuous depends on the variables distribution, the requirements of available analytic procedures, and the analysts judgment about interpretability.

Types of discrete variables

1. Identification a variable that simply names each observation (e.g., a study identifying number) and which is not used in statistical analysis; 2. Nominal a categorization or classification, with no inherent ordering; the values or the variable are completely arbitrary and could be replaced by any others without affecting the results (e.g., ABO blood group, clinic number, ethnicity). Nominal variables can be dichotomous (two categories, e.g., gender) or polytomous (more than two categories). 3. Ordinal a classification in which values can be ordered or ranked; since the coded values need only reflect the ranking they can be replaced by any others with the same relative ranking (e.g., 1,2,5; 6,22,69; 3.5,4.2, 6.9 could all be used in place of 1,2,3).Examples are injury severity and socioeconomic status. 4. Count the number of entities, events, or some other countable phenomenon, for which the question how many is relevant (e.g., parity, number of siblings); to substitute other numbers for the variables value

would change its meaning. In epidemiologic data analysis, count variables are often treated as continuous, especially if the range is large.

Types of continuous variables

1. Interval differences (intervals) between values are meaningful, but

ratios of values are not. That is, if the variable takes on the values 1188, with a mean of 40, it is meaningful to state that subject As score of 60 is twice as far from the mean as subject Bs score of 50. But it is not meaningful to say that subject As score is 1.5 times the mean. The reason is that the zero point for the scale is arbitrary, so values of the scores have meaning only in relation to each other. Without loss of information, the scale can be shifted: 11-88 could be translated into 0-77 by subtracting 11. Scale scores can also be multiplied by a constant. After either transformation, subject As score is still twice as far from the mean as is subject Bs, but subject As score is no longer 1.5 times the mean score. Psychological scales (e.g., anxiety, depression) often have this level of measurement. An example from physics is temperature measured on the Fahrenheit or Celsius scale.
2. Ratio both differences and ratios are meaningful. There is a non-

arbitrary zero point, so it is meaningful to characterize a value as x times the mean value. Any transformation other than multiplying by a constant (e.g., a change of units) will distort the relationships of the values of a variable measured on the ratio scale. Kelvin or absolute temperature is a ratio scale measure. Physiological parameters such as blood pressure or cholesterol are ratio measures.

Many variables of importance in epidemiology are dichotomous (i.e., nominal with two levels) case vs.noncase, exposed vs. unexposed. For an apparently ordinal or continuous variable, the phenomenon itself may not warrant treatment as such. It is necessary to ask such question as: Is more really more? and Are thresholds or discontinuities involved? Again, the underlying reality (or, rather, our conceptual model of it) determines the approach to quantification. Variable values are often collapsed into a small number of categories for some analyses and used in their original form for others.

Preparatory work Data reduction Data reduction seeks to reduce the number of variables for analysis by combining single variables into compound variables that better quantify the construct. Variables created during coding attempt to faithfully reflect the original data (e.g., height, weight). Often these variables can be used directly for analysis, but it is also often necessary to create additional variables to represent constructs of interest. For example, the construct overweight is often represented by a variable derived from the values for height and weight. Data reduction includes simplifying individual variables (e.g., collapsing six possible values to a smaller number) and deriving compound variables (e.g. socioeconomic status derived from education and occupation).

In general:
Simpler is better

Avoid extraneous detail Create additional variables, rather than destroy the original ones (never overwrite the raw data!). Inspect detail before relying on summaries Verify accuracy of derived variables and recodes by examining cross tabulations between the original and derived variables. Take into account threshold effects, saturation phenomena, and other nonlinearities

Categorize based on the nature of the phenomenon (e.g., a study of Downs syndrome can collapse all age categories below 30 years; a study of pregnancy rates will require a finer breakdown below 30 years and even below 20 years).

Types of derived variables

Scales - In a pure scale (e.g., depression, self-esteem) all of the items are intended as individual measures of the same construct. The scale score is usually the sum of the response values for the items, though items with negative valence (e.g., I feel happy in a depression scale) must be inverted. The purpose of deriving a scale score by having multiple items is to obtain a more reliable measure of the construct than is possible from a single item. Scale reliability (internal consistency) is typically assessed by using Cronbachs coefficient alpha, which can be thought of as the average of all of the inter-item correlations. If the items did indeed measure the same construct in the same way and were indeed answered in an identical manner, then the only differences in their values should be due to random errors of measurement. Cronbachs alpha gives the

proportion of the total variation of the scale scores that is not attributable to random error. Values of 0.80 or greater are considered adequate for a scale that will be used to analyze associations (if the scale is used as a clinical instrument for individual patients, its alpha should be at least 0.90 see Nunallys textbook, Psychometrics). When the scale consists of separate subscales, internal consistency may be more relevant for the individual subscales than for the scale as a whole. Analyses of relationships between individual items (inter-item correlation or agreement), between each item and the remaining items (item-remainder correlation), between each item and the total scale (item-scale correlation), and among groups of items (factor analysis) are standard methods of analyzing item performance.

Indexes - An index consists of a group of items that are combined (usually summed) to give a measure of a multidimensional construct. Here, each of the items measures a different aspect or dimension, so that internal consistency measures like Cronbachs alpha are either not indexes relevant or require a different interpretation. Examples of

derived from several variables include socioeconomic status (e.g., occupation, income, education, neighborhood), social support (e.g., marital status, number of close family members, of condoms, anal intercourse). were measured.

number of close

friends), sexual risk behavior (number of partners, types of partners, use Items may have different weights, depending upon their relative importance and the scale on which they Algorithms - A procedure that uses a set of criteria according to specific rules or considerations, e.g., major depressive disorder, effective

contraception (I have not seen this term used to designate a type of variable before, but I am not aware of any other term for this concept).

Preparatory work Exploring the data

Try to get a feel for the data inspect the distribution of each variable. Examine bivariate scatterplots and cross classifications. Do the patterns make sense? Are they believable? Observe shape symmetry vs. skewness, discontinuities Select summary statistics appropriate to the distribution and variable type (nominal, ordinal, measurement) Location - Mean median, percentage above a cut-point Dispersion -standard deviation, quantiles. Look for relationships in data Look within important subgroups Note proportion of missing values

Preparatory work Missing values

Missing data are a nuisance and can be a problem. For one, missing responses mean that the denominators for many analyses differ, which can be confusing and tiresome to explain. Also, analyses that involve multiple variables (e.g., coefficient alpha, crosstabulations, regression models) generally exclude an entire observation if it is missing a value for any variable in the analysis (this method is called listwise deletion). Thus, an analysis involving 10 variables, even if each has only 5% missing values, could result in excluding as much as 50% of the dataset (if there is no overlap among the missing responses)! Moreover, unless data are missing

completely at random (MCAR equivalent to a pattern of missing data that would result from deleting data values throughout the dataset without any pattern or predilection whatever), then an analysis that makes no adjustment for the missing data will be biased, because certain subgroups will be underrepresented in the available data (a form of selection bias)

Descriptive analyses
Exploration of the data at some point becomes descriptive analysis, to examine and then to report measures of frequency (incidence, prevalence) and extent (means, survival time), association (differences and ratios), and impact (attributable fraction, preventive fraction). These measures will be computed for important subgroups and probably for the entire study population. Standardization or other adjustment procedures may be needed to take account of differences in age and other risk factor distributions, follow-up time, etc.

Evaluation of hypotheses
After the descriptive analyses comes evaluation of the study hypotheses, if the study has identified any. Here there will be a more formal evaluation of potential confounding, other forms of bias, potential alternative explanations for what has been observed. One aspect of both descriptive analysis and hypothesis testing, especially of the latter, is the assessment of the likely influence of random variability (chance) on the data. Much of the field of statistics has grown up to deal with this aspect, to which we will now turn.

Concept of hypothesis testing (tests of significance)

Since we have a decision between two alternatives (H0 and HA) we can make two kinds of errors: Type I error: Erroneously reject H0 (i.e., conclude, incorrectly, that data are not consistent with the model) Type II error: Erroneously fail to reject H0 (i.e., conclude, incorrectly, that data are consistent with the model) (The originator of these terms must have been more prosaic than the originators of the terms significance, power, precision, and efficiency) Traditionally, the Type I error probability has received more attention and is referred to as the significance level of the test.

Analytical Study of Inventory Management In Punjab State Electricity Board*

INVENTORIES ARE VIEWED by most of the business world as a large potential role and not as a measure of wealth as was prevalent in old days .The inventory stocked in excess of demand may lead to drastic price cuts, so as to be saleable before it becomes worthless because of obsolescence. The inventory stocked less than the demand may lead to the business out of the market. There is a constant fear in the minds of businessmen because of uncertainty in the market situations, whether to stock or not to stock. With rather tight monetary market, optimisation of resources through proper inventory control becomes one of the major challenges for the material managers in every organization. Widening gulf between theory and practice has become remarkable phenomena in this age of science and technology. When the frontiers of knowledge are widening and the theory is developing at fast rate, the practice is lagging far behind. This is probably true about all branches of knowledge and specially true for inventory management area. The material function in power Industry has a distinct importance as every power plant, along with the transmission and distribution system, is committed to provide the consumers at his premises, the uninterrupted supply of electrical power adequately as and when required ensuring the quality, reliability and economy of supply at the same time with emphasis on overall economy. The entire power system is one line process and failure of any vital component in the process results into partial or total outage of the Industry. Inventories play essential and pervasive role in the power sector. Problems Studied

In the study, efforts have been made to conduct a detailed analysis of inventory management functions in the PSEB. For this purpose, detailed research has been conducted as follows : 1. Existing purchase system of the Board was observed. In which organization structure of procurement deptt., purchase policies, record relating to purchases were analysed. 2. Detail organization structure of stores of Controller of Stores Deptt., were studied. Inventories held in the stores, their receiving, issuing procedures, techniques of stores control adopted by the board were analysed. 3. Treatment given to wastages, spoilage and dead inventory by the stores were taken. 4. Existing system of inventory control adopted by the board was studied. 5. New Inventory control technique applied to improve the efficiency of material management department and to reduce cost of inventory.

Research Methodology
The relevant data and information have been collected from primary as well as from secondary sources. For collection of information detailed questionnaires pertaining to raw-material management general and purchase control as well as stores control specifically were drafted and got filled up from all the senior personnel and some from supdt. level employees of the material management deptt. of the P.S.E.B. Direct interviews were also conducted from the concerned deptt., of the board. This helped together actual prevailing conditions of purchasing, maintaining and controlling of materials/components. Moreover the boards thermal power plant, was also visited many times to study the inventory management systems in Ropar thermal power plant.

Major Findings of the Research

The study has been divided in 7 chapters. First chapter is related with Introduction. In this chapter, overall position of electricity in India has been mentioned. Then introduction of PSEB is explained. Second chapter is titled as Literary Survey of Inventory Management Techniques. An attempt has been made to summarise and present the theories and important concepts of inventory management. After explaining the need and importance of inventory management techniques, some of the inventory management techniques have been explained.

Name of the third chapter is Procurement System in PSEB. Theoretical concepts of purchasing have been discussed in the beginning of the chapter. Then, the procurement system followed by the board has been explained. For the purpose of analyzing purchase activities, a detailed questionnaire was prepared and circulated among the employees of Central Purchase Organization (CPO). 35 questions relating to purchase activities were asked. CPO has adopted standardised purchase procedure and the employees of CPO are following these procedures like making comparative statements, preparing purchase order and forwarding it to suppliers, persuing legal matters with supplier in the court, preparation of records, fixation of delivery schedules etc. However, there are other many activities which are to be performed in purchase deptt. But these are not performed, if performed, then not adequately in the CPO. Some of these are, purchasing records, Purchase Budgeting, suppliers performance and Rating, Buyer seller Relations (Suppliers Goodwill),414 Finance India Evaluation of performance of Purchase activities, training to the employees, purchase research and purchase ethics. Name of the Fourth Chapter is Stores and Stores Control in PSEB. In the beginning of the chapter, theoretical concepts of store keeping have been discussed. Then store procedures followed in the stores of controller of stores deptt. are mentioned like receipts, issues, transfer, maintenance of material, reporting system adopted by the stores, security measures adopted in the stores. A seven point scale was used for the purpose of evaluation of store activities. It is concluded that store employees are stressing mainly on routine/ordinary types of activities in their respective stores like, receipt and issue of materials, inter-store transfer, preparing routine reports and records including shortages, damages etc.

Whereas more activities are required for running stores efficiently e.g. efficient material handling, maintaining various levels of inventories, replenishment of stocks in stores, measuring efficiency of stores, cost reduction programmes, training to the store employees, care has not been taken properly on above mentioned activities in store department. Some of these activities we are discussing here. Major material handling activities are performed manually in controller of store Department (COS). There are 597 number of work charge/Daily wage workers for material handling in the stores. Total wages paid to these employees are Rs. 1 crore approximately. Mechanical handling is done only for bulky material. Efforts should be made to handle the materials mechanically so that cost of handling can be reduced. Only store verification activities are done seriously by store employees and stock verifiers appointed by the department of Material Service. There are so many store control techniques which can be used for managing stores efficiently. Some of these are, inventory turnover ratio, standardization, levels of inventory, ABC analysis, making in the stores, store wise replenishment of stock etc. So these techniques are suggested for better control in the stores of COS deptt. Efforts are also made to calculate storage cost of inventory. The carrying cost of COS deptt. Is coming 34.6% approximately. Fifth chapter is framed for analyzing inventory management techniques in PSEB. Here efforts are made to apply some more Inventory control techniques for efficient management of purchase and store activities in material management department. Inventory Turnover Ratio:- Inventory Turnover Ratio of 25 Major items of COS deptt were calculated for the years of 1988-89, 1989-90 and 1990-91 respectively. By comparing different years Inventory turnover ratio of each item, it is concluded that the stock level of each item is not maintained properly in different years by COS deptt. Abstract of Doctoral Dissertations 415

Economic Order Quantity: - (EOQ) The CPO is procuring items worth Rs. 100 crores every year. The employees of the CPO are procuring these items on the basis of their past experience. EOQ of 25 major items, have been calculated. Order cost per order calculated is coming Rs. 8,900.00 and carrying cost is 34.6%. Total inventory cost of 25 major items of COS is coming Rs. 1,00,94,000.00 (approx) by applying EOQ technique. Whereas total inventory cost as per PSEBs purchase procedure for 25 major items, is coming Rs. 5,36,53,00.00 (approx). There will be saving of more than Rs.4 Crores in a year if items are purchased through EOQ system. Efforts are made to classify store items into A,B. & C category. it was analyzed that only few items are coming under A & B category. 14 items out of 1374 are in A category, 56 are in B category. So strict policies can be developed and implemented for controlling A & B category of items. In the study, different policies are developed for A,B & C category of items respectively so that the store items can be controlled properly. The sixth chapter is named as Inventory Management in Thermal Power Plant in the study. Ropar Thermal Power Plant is covered under the study. This chapter has started with some salient features of RTP, Ropar. Then the organization structure of entire plant has been explained. After that, procurement system used in the RTP was studied. Store of RTP, Ropar were visited and store activities were analyzed, in which, activities performed in stores, material handling systems followed and store control techniques used in the stores were discussed. As we know coal and oils are the main inputs of the Thermal power plants. So details regarding procurement, maintenance, issue and handling of coal and oils in the RTP has been written. Various records prepared by the RTP relating to these inputs has also been mentioned in the chapter. Different problems faced by the RTP relating to coal have been highlighted. Chapter seventh concludes our study. This chapter integrates the finding and recommendations of the study

C H A P T E R - V I

CONCLUSION AND SUGGESTIONS

BIBLIOGRAPHY

BIBLIOGRAPHY
Books
Mishra, M.N., Insurance Principles and Practices (S.Chand & Co., Delhi, 1999) Kotler, Philip, Marketing Management (Prentice Hall India, 2004)

Magazines and Journal

The Charted Accountant Journal, June 16, 2006 Financial express Ahlbom, Anders. Biostatistics for epidemiologists. Boca Raton, Florida, Lesis Publishers, 1993, 214 pp.,

Web sites
www.pspcl.in www.tendertiger.com/quicksearch

director-opac@psebindia.org
Connect.in.com

ANNEXURE