Regarding UTL_FILE parameter in the INIT.ORA file

[Balasubramanian]

Hi friends,
Can anyone let me know what exactly the 'UTL_FILE parameter in the INIT.ORA file' represent.In other words, what is the significance of the parameter and how it is used.

Also let me know,how to create a directory in UTL_FILE parameter in the INIT.ORA file.

I am a novice in this area.

Regards,
Bala.