R S S K N

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1. INDUSTRY PROFILE

The sugar industry is one of the important Ago-based industry of the country India is the fourth major sugar production in the world. The first three is Russia, Brazil and Cuba. Sugar industry provides direct employment to nearly 3lakh persons this industry supports about 25 million agriculturists. It pay’s both to the central government and the state government about Rs.350 crores by way of different taxes. The capital employed in the industry is of the order of Rs.780 crores. There are about 414 mills producing sugar, which are spread all over the country.

Sectors

No.of factories

Private sector

127

Public sector

60

Co-operative sector

227

Total

414

GROWTH

Pre-Independence period:

Sugar production on modern lines started with the beginning of this century. This industry is an excellent example of an industry, which has developed over the years. It was granted protection in 1932.As a result, the number of factories increased from 32 in 1931-32 to 130 in 1935-36 and the production of sugar increased from 1,62,000 tones in1931-32 to 9,47,000 tones in 1935-36.

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Post-Independence period:

The industry has made rapid progress in the post-independence period. The number of sugar factories has increased from 138 in 1950-51 to414 in 1993-94 production of sugar has to increased from 11 lakh tones in 1950-51 to 199 lakh tones in 1990-91. The sugar has increase because of the policy of encouragement of the Government. www.projectskart.com However output has fluctuated because of the uncertain monsoons and the prices of Jaggery and Khandasari.

Production of sugar from 1950-51 to 1990-91

Year

Production in lakh tones

1950-51

11

1960-61

30

1970-71

37

1980-81

51

1990-91

119

Production of sugar from 1950-51 to 1990-91

120

119

Production  60

51

40

30

37

20

11

0

1950-51        1960-61        1970-71        1980-81        1990-91

Year

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2. COMPANY PROFILE:

LOCATION

:

THE GEM SUGARS LIMITED

KUNDARAGI - 587304

Ta: Bilagidist: Bagalkot

ESTABLISHED IN

:

February / 2003

REGESTERED NO

:

17324 / 95

WEEKLY HOLIDAY

:

SUNDAY

WORKING SHIFT

:

4 am to 12 pm, 12 pm to 8 pm, 8 pm to 4 am

CHAIRMAN

:

R. Veermani

M.D

:

R. Sekar

BANKERS OF THE        :        The Indian overseas Bank

COMPANY        Bank of india

Punjab national Bank

State Bank of india

UCO Bank

Allhabad Bank

UTI Bank

Karnataka state co-operative bank

Apex Bank

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PRODUCTS        :        SUGAR

BY-PRODUCTS        :        There are two types of byproducts

  1. BACKGROUND AND INCEPTION OF THE COMPANY:

India is one of the highest sugars producing country in the world. It has large number of sugar manufacturing factories situated throught the country. GEM SUGARS LIMITED KUNDARAGI was registered on February 1995. C R Sorgavi was the founder as well as chief promter of this factory.

Its crushing capacity is 4000 T C D.this factory is located near kundaragi. It is 4km away from the kundaragi.

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Vision

Mission

To support employee and farmers development for the fullest extent.

Improving our operation activities.

Quality policy:

The GEM SUGARS quality policy is to meet & exceed customer satisfaction by

Setting suitable objectives & targeted of reviewing them periodically for continually improving the effectiveness of the quality management system www.projectskart.com

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D) Product and service profile:

The product and service profile are very important topic for the each and every organization. In the GEM SUGARS they have totally three types of products are producing those are as follows-

In the sugar section that is the main production of the company in sugar they are produce these types of sugars are producing

This unit is producing two grade of sugar S-30 and M-30.

And they are covering 5 taluks to getting sugar cane and there payment is satisfaction to the formers.

Chemicals used in producton:

        Washing soda-        ,,

        Common salt-        ,,

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SUGAR MANUFACTURING PROCESS

The manufacturing of sugar from sugarcane can be classified as “3C”.

The work centers in the sugar manufacturing are:

The sales manager issue tenders for the sale of sugar. They receive the quotations from the various buyers. The sugar is sold to that buyer, who quotes the higher price. The tenders are called once in a week. If the rate is not satisfactory, the tender will be cancelled.

The sale of sugar is done according to the government rules. According to new rule, the government will notify the some quantity of sugar to sell for a particular month.

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E) Area of operation:

The GEM SUGARS KUNDARAGI. The share section is one of the important section because more than half of the share capital is collected from the share holders. The area of operation-- NATIONNALLY and GLOBALY

Sugar is sold in all over county according to the customers requirements.

And they are collecting raw materials from the near by areas such as-

F)Ownership pattern: CO OPERATIVE SECTOR

The R.S.S.K.N Rannnagar Timmapur it is the cooperative sector company. This factory was registered on 29th July 1982 itself and government has given licensee for 2500 TCD. In the same year government has given registration number is DSK/REG/182-83 dated 27-071982. From the onwards it started issuing the shares to the public this issuing of shares comes to end in the year 1997. www.projectskart.com

The share section is one of the important sections because more than half of the share capital is collected from the share holders.

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There are five classes of shares:

“A” Class- Grower members

“B” Class- Co-operative institution

“C” Class- State government

“D” Class- Non grower members

“E” Class- Outside is members.

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“A”

Class- Grower

members

“B”

“E”

Class-

Class-

Co-operative

Outside is

institution

a member.

CLASSES OF

SHARES

C”

“D”

Class-

Class-

State government

Non grower

members

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G) Competitors information

The degree of competition for GEM SUGARS is more, as other big organization like

Sugar are also attracting the minds of the farmers towards them. The sugar produced in this factory is of good quality and competitive enough in the market.

The overall management GEM SUGARS is efficient. They make accurate buying from farmers for their sugar cane and the farmers are satisfied with this .

H) Infrastructure facilities

LOCATION

The GEM SUGARS is one of the co-operative sectors in sugar production, which is located near kundaragi, and is 16KM away from Bilagi. Which is a Taluka place and it is located near the Bank of krishtna River, so the factory has obtained the permission for lifting water from this river for factory use.

The area operation of this factory is spread over 25 miles around and covers 134

Villages among five talukas such as: www.projectskart.com

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Taluks

No.of Villages covered

Mudhol

77

Bagalkot

17

Bilgi

09

Badami

13

Jamakhandi

18

Total

134

No.of taluks covered

Jamakhandi, 18

Badami, 13

Bilgi, 9

Mudhol, 77

Bagalkot, 17

Facilities from the company:

  1. FUTURE PLANS

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  1. To encourage employee, thrift and co-operation amongst members.

  1. To promote agricultural and well begins amongst members.

  1. To manufacture sugar and their by products from sugarcane by its members and to sell the some to the best advantage.
  2. Interested in getting connected to Internet and e-mail connection.

  1. It is interested doing such other things, which are incidental and necessary for running the society and for fast growth and development.
  2. To promote lift irrigation projects.

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J) WORK FLOW MODEL :

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PART-B

McKinsey's 7-S

McKinsey & Co's 7S framework provides a useful framework for analysing the strategic attributes of an organization. The McKinsey Consulting Firm identified strategy as only one of seven elements exhibited by the best managed companies.

Strategy, structure and systems can be considered the "hardware" of success whilst style, staff, skills and shared values can be seen as the "software". www.projectskart.com

Companies, in which these soft elements are present, are usually more successful at the implementation of strategy.

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Each of the 7Ss is elaborated on below:

STRUCTURE:

FUNCTIONAL ANALYSIS OFGEM SUGARS LIMITED.

The main functional divisions of GEM SUGARS are as follows.

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CANE DEVELOPMENT AND PROURENMENT DEPARTMENT The structure of this department is as under-

Sr.General maneger of cane

General manager of cane

Ass. Genaral manager

Manager of cane

Deputy manager cane

Sr. cane officer

CANE OFFICER

Ass. Cane officer

Field supervisor

The philosophy of the cane development and marketing is almost common for all the sugar units. While in following paragraphs, description is for Khatauli but applies generally to

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Deoband & Ramkola units as well.

After identifying the constraints in the area of operation, the mill has undertaken an ambitious programme of Cane Development for improvement in productivity and quality of cane. The mill has separate cane development wing with qualified staff and experienced personnel. For this purpose the operational area has been divided into sub-zones and the field supervisory staff has been provided with the necessary facilities for efficient working and proper supervision of the various cane development activities.

OBJECTIVES OF CANE DEVELOPMENT DEPARTMENT

1) To develop the backward area.

  1. To improve the variety of can.

  1. To provide raw materials to the factory

  1. To provide materials to the factory

  1. To maintain the raw material (sugar cane) capacity. Which is required by the factory (i,e4000TCD) www.projectskart.com
  2. To maintain registration of cane, gang and plantation.

  1. To undertake seed distribution programme. The main function cane development department is to arrange for raw materials, which is required in the factory. For these bases (i.e. growers that grow sugarcane first in his field) they also provide a loading gang with 8 to 10 members per village and also a bonded tractor for transportation. In season 150 tractors are engaged and 200 gangs are different villages in a day.

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SUGAR VARIETIES

The popular sugarcane varieties growing in this area are:

COC-761

CO-94012

CO-86032

CO-8011

The maintain quick and easy communication with farmers GEM SUGARS has created five main circles.

CIRCLES:

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PRODUCTION DEPARTMENT

To utilize the installed capacity of 4000 TCD in proper manner the following personality the duty to manage the manufacturing department

Production Department

Chief Chemist

Deputy Chief Chemist

Laboratory In charge

Lab chemist

Supervisor

Worker

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Production department is the main department of the factory and is classified into two sections:

Engineering section:

This section maintains all the work connected with plant and machinery. This section area at enhancement of the feeding capacity of the factory. It is assisted by workshop.

Work shop contains lathe machine, turning machine, welding etc., to repairs the spares and default machinery’s

Manufacturing section:

This section is classified into three sub-sections

LABORATORY:

Laboratory plays a significant role in sugar production. The Key activity of laboratory is checking the content of sugar in the sugar cone and fixing the correct shape and size of sugar. The la prepared hourly reports which advise on the addition of other chemicals in the production.

Other functions of Laboratory:

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CHEMICAL USED IN THE PRODUCTION:

        Washing soda-        ,,

        Common salt-        ,,

And other chemical used are burnt lime, sulphur, othophosphoric acid.

The manufacturing of sugar from sugarcane can be classified as “3C”.

The work centers in the sugar manufacturing are:

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Cane crushing:

After weighing of cane it is crushed and it takes place mainly in two stages, first preparation and then milling. Milling takes place after the cane in levelers and cutter. Milling is done by passing the prepared cane blanket through sets of mills. Weighted water also added in the course of crushing for better extraction of juice. After crushing the baggass is sent to the boiler for fuel purpose and juice is sent for processing after weighment.

Clarification:

The weighted juice is heated in juice heaters at 65 to 70 degree. It undergoes a process of clarification i.e., addition of lime and sulphur dioxide simultaneously.

The juice thus sulphited heated again another set of juice heaters at 100 to 105 and the hot juice is sent to the clarifier. In this clarifier tank, the heavy particles in juice like mud settles down and we get clear juice from the clarifier and this juice is sent for evaporation in set of multiple effect evaporate, the juice thus evaporated gets concentrated to form thick syrup of about 58 to 60 brix. The syrup thus obtained is again taken for sulphitaion for bleaching to pH of 5.0-5.2.

Crystallization:

The syrup of 5.0-5.2pH is taken to pan floor for boiling, where the syrup attains super saturation stage. In such a condition sugar crystals are formed and it is hardened to from mass called massecuite. The massecuite is dropped in crystallizer and cooled to complete the process of crystallization.

Curing:

In centrifugal, the massecuite is cured i.e. sugar crystals are separated from mother liquor in high speed centrifugal machines. Bowing hot air and cold air properly dries the sugar crystals

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thus separated. The molasses is collected in separate tank and used for further boiling to recover more sugar.

Grading and Bagging:

Sugar thus dried is sent to hopper and graded in a gradation. The sugar falls in to the bins, with this fall the sugar is packed in bags. The graded sugar is bagged, weighted for 50 kg and stitched, numbered and stocked in the sugar warehouse in different lots as per grade and color.

ACCOUNT DEPARTMENT

Structure:

Ass.General manager

Cane Accountant

General Account

Accountant officer

Sr.Account officer

Accountant

Accountant

Ass. Accountant

Ass.Accountant

Account department is divided into two main sections, they are:

  1. General account section:

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This section maintains all transactions. Income tax, sales tax and commercial tax procedure are done by this section. The verities of registers maintained by this section are:

  1. Cane account section:

The main function of this section is to maintain records of supplier’s name, which supplies sugar cane to the factory and maintains the register of payment.

The register maintained by this section is:

  1. Self harvest payment register

  1. Harvester bill

ADMINISTRATIVE DEPARTMENT:

Administrative department is classified into five sections ,sales, purchases, store, time office and security.

STRUCTURE:

Administrative Department

Labour wel- fare officer

Personnel Department        Sugar Godown        Dipansory and santitative

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. PURCHASE SECTION:

It is also a important section in administrative department in performing the activities of purchasing. In this section there are two employees, one is purchase manager and another one is purchase assistant. The purchase manager issues the purchase order from various section of the factory. He estimates the cost purchase and accordingly he go for direct purchases or purchases through purchase committee.

STRUCTURE:

MATERIAL MANAGER

ASS. MANAGER

STORES OFICER

STORES SUPERVISOR

STORES CLERKS

ISSUE BOYS

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c. TIME OFFICE SECTION:

Function-

  1. Distribution of salary.

  1. Sanctioning of leaves to workers.

  1. Maintaining working bell.

There are 200 workers and 130 staffs working in this factory.as this is new establishment all are working on monthly wages. At present onley one leavein a month is sanctioned to the workers.

The factory runs three shifts in a season-

Shift

Starting time

Closing time

1st Shift

5am

1pm

2nd Shift

1pm

9pm

3rd Shift

9pm

5am

One general shift 8.30am to 5.30pm for both season and off season.

d. SALES SECTION

This section will take care of all the sales transactions like sale of

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SKILL:

The GEM SUGARS mantaining on the job training.

If the organization is to achieve its goals, it is necessary to have right people with right skills to accomplish it. Skill references to ability to perform certain task without any difficulty.

At GEM SUGRS has right people with right skilled with reference to innovation new ideas, up grading the products with latest technology achieving the goal according to established standards.

Skill Implemented in GEM SUGARS has been divideded into 3 level. They are-

  1. Top lever

  1. Middle levels

  1. Lower levels

 Conceptual

Managerial

Technical

STYLE:

The style which is portrayed to out side world, is derived from the styles and behaviors exhibited inside organization. The internal style of the organization effects how staff feels, thinks and do their jobs. Therefore an organization is reflection of its culture.

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At GEM SUGARS : Staff in the company also goal oriented. They are enthusiastic is achieving the goals, staff are co-operative and completes the assigned jobs within given period of time.

STRATEGY :

The way in which a business aims to improve its position in relation to its competition is embodied in its strategy

At GEM SUGARS : Introduce the new technologies and products strategic importance in time with national objective to improve, quality, reliability of products there by attaining the international standards.

Company advocating a strategies for government action.

SYSTEM:

All the formal and informal procedure that make an organization work are system. It uses to be successful.

At GEM SUGARS : Sugars has its own system in procuring the raw materials from formers and qualified vendors, producing out put with qualified out put with quality inspection of international standards offering the products to customer with fine packaging and spares and provide good after sales services.

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Security System :

Plant security system is contract basis, round the clock security arrangements are provided for the plaint and quarters security system is of plant is such that no person can enter the premises without an approved from management.

ACCOUNTING SYSTEM

STAFF:

Good hard working citizens play essential role in the development of nation the employee are responsible for. The success of failure of company.

At GEM SUGARS has employees highly qualified and experienced professionals, its fully geared face new challenges. Employees are engineering, chemist ,I.T.I. fitters, Electricians, skilled and unskilled workers the GEM SUGARS have young and motivated team has made large contribution to company success. Many of engineers and chemist have secured top ranks.

SHARED VALUE :

Employees share the same guiding values mission that is an excellently managed company has a deriving purpose philosophy that is known and practiced by everyone.

At GEM SUGARS : employees practices the same rakes and mission fir the achievement of the goals.

Environmental policy

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GEM SUGARSr is committed to comply with the requirements of relevant environmental management system and continuously effectiveness. Employee should be rained on environmental aspects to minimize the pollution conserve natural resources.

QUALITY POLICY

Quality leading to customer satisfaction shall be top priority this shall be achieved by complying with the requirement of the quality management system and continuously improve its effectiveness.

Employee shall be trained and motivated to achieve the quality of their work competence skill. Other values

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PART-C

SWOT  ANALYSIS

STRENGTHS:

WEAKNESS:

The company needs improvement and should concentrate on timely customer service.

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OPPORTUNITIES:

THREATS:

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BALANCE SHEET OF THE YEAR OF 2004-05

PARTICULAR

SCH

AS AT

AS AT

30/06/2007

30/6/2007

SOURCES OF FUND

SHARE HOLDERS

FUND

a) SHARE CAPITAL

A

450000000

430280000

b)RESERVE AND

B

141585166

101506173

SURPLUS

591585166

531786173

c)SHARE APPLICATION

7500000

MONEY

LOAN FUNDS

a) SECURED LOAN

C

1.199.975055

1.083206968

b)UNSECURED LOAN

D

293779252

284398791

2085339473

1906891937

APPLICATION OF

FUNDS

FIXED ASSET

a) GROSS BLOCK

E

1175575683

1167121561

LESS: DEPRECIATION

245925326

186890277

NET BLOCK

929650357

980231284

c) WORK IN

343647119

117591496

PROGRESS(CAPITAL)

INVESTMENT

F

7319044

7319044

CORRENT ASSET

LOANS AND ADVANCE

a)INVENTORIES

G

953914446

680868658

b)SUDRY DABTORS

H

165795393

136521891

C)CASH AND BANK

I

58162416

72774760

BALANCE

d)LOANS AND

J

375077929

337081753

ADVANCE

1552950190

1227247062

LESS: CORRENT

K

764035503

448375264

LIABALITY AND

PROVISSIONS

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788914687

778871798

MISCULENIOUS

L

15808266

22878310

EXPENSES ( TO THE

EXTENT NOT WRITTEN

OFF OR ADJESTED)

TOTAL

2085339473

PROFIT AND LOSS ACCOUNT 30/06/2007 (Figures in Rs.

PARTICULAR


SCH        FOR YEAR        FOR THE

ENDED        YEAR

30/06/2007        ENDED

30/06/2006

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INCOME

SALES

I

979742366

968774023

OTHER INCOME

II

7630720

5720923

INCREASE IN

III

257052582

496819743

STOCK

TOTAL INCOME

1244425668

1471314689

EXPEDITURE

RAW MATERIAL

738700352

886517027

CONSUMED

MANUFACTURIN

IV

261923305

239737473

G OTHER

EXPENSES

INTEREST &

134882069

131102090

FINANCE

CHARGES

DEPRECIATION

59035049

5325698

DEFFERED

7059044

5325699

REVENUE

EXPENSES

TOTAL

1201599819

1319940542

EXPENDITURE

P & L BEFORE

4282549

151374147

TAX

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PROVISSION

TAXATION

LESS: MIN

2300000

1900000

ALTERNATIVE

TAX

LESS:FRINGE

446856

85551

BENFIT TAX

P& L AFTER TAX

40078993

149388596

ADD: SURPLUSS

85842173

-63546423

CARRY

FORWORD

PROFIT CARRIED

12921166

85842173

TO BALANCE

SHEET

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LEARNING EXPERIENCE:

It was a great experience working in the RAYATAR SAHAKARI SAKKRE KARKHANE NYIYAMIT (RSSKN) Ranna Nagar Timmapur Tq Mudhol and Dt Bagalkot. Learnt many things about the functioning of an organization in accordance with the present market situation.

The main purpose of the organization study is to make the students acquainted with the practical knowledge about the overall functioning of the organization.

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It givens opportunity to study the human behavior and also makes one ready to face different situations, which normally would come across while on work in the office or factory environment.

PURPOSE OF THE STUDY:

During the first week, it was totally a new experience entering into the organization and realizing that we students were into the one of the multinational company. On the first day of he training, senior assistant detailed us very clearly about the guidelines to be followed with respect to maintaining the discipline and decorum of the organization.

Different Departments in the Organization. of R.S.S.K.N are as follows.

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Each Manager has separate Manager, Deputy Manager, Assistant officer and Supervisor.

It was really a one good experience working in the organization like R.S.S.K.N which is of great repute of sugar manufacturing in that area. Employees from every corner of the department helped me in getting the required information for the successful completion of this project.

They cooperated well when we had to disturb them with so many queries in our mind to be cleared from the concerned person during the visits to the respective departments in the organization.

Through the all departments I done my project successfully.

Declaration

I PRAKASH R YADAHALLI student of third semester MBA of Department of Management Studies, PESIT hereby declare that this Project titled “ORGNIZATIL STUDY” has been submitted by me in partial fulfillment of the

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Master of Business Administration by the Vishveshwariah Technological University, Belgaum Karnataka.

The project is an independent work and has not been submitted to any other University for the award of any degree or diploma

Date: 30-09-2006        Name: Prakash R Yadahalli

Place: Bangalore        USN: 1PI05MBA60

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