Sampath,
Five minutes of googling turned up a ton of references.  Check out the 
following:

http://nasir.wordpress.com/2007/12/03/stored-procedures-and-rails/

http://guyharrison.typepad.com/guy_harrisons_blog/2006/04/mysql_stored_pr.html

http://paslogic.com/?p=13

There were many more.  Type in

using stored procedures in Ruby on Rails and you will get a lot of 
references.

Bharat
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