cotton seeds
TRANSCRIPT
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A
Product Project Report
On
Gokul Cotton Seeds
Prepared By :- Baldha Parag G.Class :- T.Y.B.B.A.
1. Roll No.:- 26Academic Year :- 2009-10
College:- Gyanyagna College of Sci. &
Mgt.
Submited To:- Saurashtra University
Guided By :-Namita Talsania
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DECLARATION
I undersined Baldha Parag G. the students of T.Y.B.B.A. ofGyanyagna college of Sci. & Mgt. Here, I declared that the project work present in
this report is my own work and has been carried out under the guidance of the
professor of Gyanyagna college of Sci. & Mgt.Rajkot.
This project hadnot been submitted to any other University for
any other examination purpose.
Date:-
Place:-
Students Sign
(Baldha Parag G.)
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PREFACE
For economic growth and balanced structure development, small
Scale industries are very important tool. It is considered highly for the creation of
employment opportunities as well as development of enterpreneur skills. The better
use of scare financial resources and appropriate technology is also ensuring by the
small scale industries.
In the growth rate of the country the small scale industries give vital
contibution. Therefore, it is essential to understand and management and working
of small scale industries as a student of business administration.
Last but not least I thankful all those people who helped me direcly or
indirecly to get necessary information during preparation of this report.
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ACKNOWLEDGMENT
This productproject report is a part of the subject Entrepreneur-ship
and management of small scale industries. I am glad to submit to this report which
includes the practical aspect of the industrial study. I am happy to express my
deepest gratitude to all persons who spend their valuable time and help me a lot in
preparing o this projects work. A successful challenge of visit to any industry gave
me a chance to transfer it into a result.
I am also thankful to Mrs. Namita Talsania for guiding me towards
successful preparation of this project. I would like to express my opportunity to my
friends and all people who have directly or indirectly help me in this project work.
Date:-
Place:-
Signature of student
(Baldha Parag G.)
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INDEX
Sr.No. Particulars Page No.
1. Introduction of S.S.I. 062. Project at a glance 07
3. Bio-Data of owner 08
4. Basis & Presumption 09
5. Organization Structure 10
6. Implementation Schedule 11
7. Location 12
8. Production Details 149. Marketing Strategy 15
10. Details of Raw-material 16
11. Machines & Equipment 17
12. Channel of Distribution 18
13. Marketing Details 19
14. Financial Details 20
15. Sources of Finance 23
16. Interest on Capital 24
17. Profitability Analysis 25
18. Break Even Analysis 26
19. Ratio Analysis 27
20. Risk Factor 29
21. Future Plan 30
22. Conclusion 31
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INTRODUCTION
As per industrial act of indian industrial structure can be classified
into three groups.
Small scale industry,Medium scale industry,Large scale industry,
DEFINITION:-An industrial undertaking in which the investment in fixed
assets in plant and machinery weather held on ownership terms
on least or on hire purchase does not exceed Rs.3 Cr.
Small scale industries play a key role in industrialization of a
developing country. The provide large scale employment, higher labors capital
ratio comparatively and the need for shorter gestation period and relatively smaller
markets to be economic. They need lower investment. They offer a method more
equitable distribution national income and facilitate effective mobilization or
resources of capital and skill which would otherwise remain unutilized. The
industries stimulate growth of industries entrepreneurship and promote a more
diffused pattern of ownership and location.
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PROJECT AT A GLANCE
NAME OF THE UNIT :- GOKUL COTTON SEEDS
PRODUCT NAME: - Cotton seeds
ADDERSS: - shreenath Jining,
Nr.Uday Farm,
Rajkot Highway,
Gondal.
E-mail ADDRESS: [email protected]
SIZE OF THE ORGANIZATION: - Small Scale Industry
FORM OF ORGANIZATION: - Sole Proprietorship
BANKER: - State Bank of India
ACCOUNTING YEAR: - 1st
April to 31ST
March
SIS REGISTRATION NO: - Application has been made.
SUBSIDY REGISTRATION No.:- Application has been made.
mailto:[email protected]:[email protected]:[email protected]:[email protected] -
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BASIS AND PRESUMPTION
The profit is drowning on the basis of the following Presumption.
WORKING HOURS :- 18 hoursWORKING DAYS :- 300 daysTOTAL No. OF WORKING HOURS:- 5400 hoursLABOUR CHARGES: - As per the wages act of state Govt.WORKING EFFICIENCY :- 90%RATE OF INTEREST ON :- 15% Fixed & working capital
Rate of machinery and equipments Raw-material and other items is
based upon the prices prevailing at the time of preparation of theproject.
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ORGENIZATION STRUCTURE
Organization Structure
Marketing
Mana er
Finance
Mana er
Production
Mana er
Owner
Personnel
Mana er
Salesman Office Staff Accountant Production
In-char e
Workers
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EMPLIMATATION SCHEDULE
Sr. No. ACTIVITY TIME-REQUIRED
1. Preparation of Project 1 Month
2. Selection of a site 1 Month
3. Registration of S.S.I. 1 Month
4. Availability of Finance 2 Months
5. Construction of factory 8 Months
6. Arrangement of Machinery 1 Month
7. Recruitment of Labor 15 Days
8. Other days for unexpected reasons 1 Month
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LOCATION
Location is the prime factor to be considering for starting a new business.
Location is a factor which influences success and failure of the firm. It plays a vital
role in development of the unit. A goods and proper location may reduce the cost
of production and distribution to considerable extent therefore site of factory
should be selected very carefully. Location of an industry is a three step decision.
Choice of region Choice of locality Choice of site
I have taken into consideration of various factors while locating the industry.
This unit is situated at Gondal. It is hardly 40 Km. away from Rajkot city.
Therefore all the benefits which are attached with Jamnagar city will be available
to unit. Here, all types of facilities like water, supply of electricity,
communications etc. are easily available at reasonable rate.
MARKET:-
From marketing point of view we have best and encouraging market for our
product because market for the cotton seeds is increase day by day because large
No. of farmers are moving from grow a cotton in his farm. So, the market for our
product is very high.
LABOUR:-
Availability of labor influence the selection of location unit requires both semi-
skilled and skilled labor. Both type of labor can be made available from the local
area. So, availability of labors never creates problems.
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RAW-MATERIAL:-
Raw-material is the basic input, which must be given equal importance. The
factory is located near the Raw-material
Producing enter nearness to the source of Raw-material
Reduce the cost of transportation.
So, there is no problem of Raw-material for cotton seeds. The main Raw-material
for cotton seeds is cotton.
TRANSPORTATION FACILITIES:-
Transportation is required for assembling of raw-material and distribution of
finished product. As most of the raw-materials are available from nearness sources.So, it is easy to carry out by rickshaw.
For the distribution of the finished product: - Matador, Maruti-van, will be used as
the product is of light weight and not of costly nature it will not require any special
type of facilities.
LAND:-
The basic necessity for each and every industry is land without land no industry
can be come into existence. Near Gondal land is available at reasonable rate.
AVAILABLE OF INFRASTRUCTURE FACILITIES:-
All facilities like water, electricity, telephone, telegraph, postage etc are easily
available from this location.
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PRODUCTION DETAILS
The basic raw-material of this product is cotton seeds. Generally the
raw material is available from cotton and cotton is mainly depending upon
agriculture. Our organization conducts raw material for the producing product from
special farm because we are producing seeds and in seeds require special type of
quality.
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MAKETING STRATEGY
Thus, the market is very vast and scattered yet another positive aspect
is increasing rural and semi-urban markets. Some of the national brands are very
well established but there are hundreds of local or regional brands catering to the
vast market and new entrant would have to use. This competition good quality and
competitive price coupled with well organized marking network shall be the
critical aspects.
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DETAILS OF RAW-MATERIAL
Raw materials are a fundamental requirement for any organization.
Our product GOKUL is mainly depending upon cotton that we make out
from various areas.
For producing the product we need only COTTON.
After processing in cotton we get cotton-seeds.
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MACHINES & EQUIPMENT
Each and every unit used machines for the purpose of transfer raw
material in to finished goods as are under:
Sr.
No.
NAME QUANTITY
1. Water Pump 10
2. Millar 4
3. Chemical Mixture 2
4. Packing Machine 3
5. Tractor 2
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CHANNEL OF DISTRIBUTION
The channel of distribution plays an important role in market activity
in the movement of flow of funds.
CHANNEL
The firm can use one levelDistribution channel
Producer
Agent
Consumer
The firm can use zero levelDistribution channel
Producer
Consumer
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MARKETING DETAILS
Marketing is must require to the organization. Its highly affect to the
organization to go ahead.
Target Market:-
Target market means decide a particular group for the particular product and
try approach this types of customer.
Target market for our product GOKUL COTTON GOODS is
Middle class villages farmersSystem of marketing:-
For our product GOKUL COTTON SEEDS we follow short run
marketing. Marketing executive go village to village for marketing and
are order from retailers and us order we produce the product. This type
of marketing helpful to reduce product maintains cost and also we give
agency to retailer for selling our products.
Analysis of competitors:-
The main competitors for our industry GOKUL COTTON SEEDS
are :
INDUSTTIES NAME PRODUCT NAME
Rasi Seeds RCH-2
Vikram seeds Vikram-5
Vikram-15
Ankur seeds Jay, Akka.
Ganga kaveri seeds GK-205
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FINANCIAL DTAILS
Fixed capital :- Land and building :-
NO. PARTICULARS SQURE
METER
RATE/
SQ. M.
AMOUNT
1. Land 2,500 1,000 25,00,000
2. Building 1,500 1,200 18,00,000
Total 43,00,000
Machinery & Equipment :- NO. MACHINERY No. OF
UNIT
PIRCE
PER UNIT
TOTAL
1. Water Pump 10 10,000 1,00,000
2. Miller 4 2,00,000 8,00,000
3. Mixture 2 5,00,000 10,00,000
4. Packaging Machine 3 90,000 2,70,000
5. Tractor 2 5,00,000 10,00,000Total 31,7,00,000
Total fixed Capital :- NO. PARTICULARS AMOUN
1. Land & Building 43,00,000
2. Machinery & Equipment 31,70,000
3. Other Expenses 1,50,000
Total 76,20,000
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Working Capital :- Raw-Material :-
NO. PARTICULARS AMOUN
1. Cotton 5,00,000Total 5,00,000
Salary of the Staff :-
NO. PARTICULARS No.of
Workers
Salary Total
1. Manager 4 10,000 40,000
2. Store-keeper 1 7,000 7,0003. Auditor 2 8,000 16,000
4. Supervisors 3 7,000 21,000
5. Skilled Worker 4 5,000 20,000
6. Unskilled Worker 30 2,500 75,000
Total 1,79,000
Other Expences (Utility) :-
NO. PARTICULARS AMOUN1. Electricity 17,000
2. Water 4,000
3. Dieses & Petrol 20,000
Total 41,000
Other Contingent Expenses :- NO. PARTICULARS AMOUN
1. Telephone 4,0002. Advertisement 10,000
3. Repair & Maintance 3,000
4. Insurance 20,000
Total 37,000
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Total Working Capital :-(Total cost of Production)
NO. PARTICULARS MONTHLY
RS.
YEARLY RS.
1. Raw-material 5,00,000 60,00,000
2. Salary 1,79,000 21,48,000
3. Other Expenses 41,000 4,92,000
4. Contingent Expenses 37,000 4,44,000
Total 90,84,000
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SOURCES OF FINANCE
NO. PARTICULARS AMOUNT
1. Ownership Capital
60% * 80,00,000
48,00,000
2. Borrowed Capital
40% * 80,00,000
32,00,000
Total 80,00,000
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INTEREST ON CAPITAL
NO. PARTICULARS AMOUNT RATE INTEREST
1. Own Capital 48,00,000 5% 2,40,000
2. Borrowed Capital 32,00,000 10% 3,20,000
Total 5,60,000
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PROFITABILITY ANALYSIS
PARTICULARS
Sales
Less: Cost of Production
E.B.I.T.:-
Less: Interest on Capital
E.B.T.:-
Less: Income tax @ 35%
NET PROFIT:-
1,50,00,000
90,84,000
59,16,000
5,60,000
53,56,000
18,74,600
34,81,400
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BREAK EVEN ANALYSIS
It is scientific analysis which leads producers towards more
systematic and scientific production planning or sales planning. It is because of
break even analysis that the firm can accordingly work out the required size of the
plant. By break even analysis the small scale entrepreneur can yet proper
guidelines about volumes of sales to the achieved to avoid the clanged of loss.
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RATIO ANALYSIS
Return on Investment Ratio :-
Profit after Tax
= X 100
Total capital investment
34, 81,400
= X 100
80, 00,000
= 43.52 %
Net Profit Ratio :-
Net Profit
= X 100
Sales
34, 81,400
= X 100
1, 50, 00,000
= 23.21 %
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Gross Profit Ratio :-
Gross Profit
= X 100
Sales
53, 56,000
= X 100
1, 50, 00,000
= 35.71 %
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RISK FACTOR
In many business weather small or big. There is always possibility
happening something unexpected. That means there are some risks factors which
affects the working of business. The risk may be due to technological changes in
fashion, performance and attitude of people domination of big industry etc. In this
unit there are also some risk factors which are as follows:
Uncertainty of the rain may affect demand of the cottonseeds product. The production process of our product is more affected to atmosphere
because chemicals use in product if it not done proper it harmful to product
and it not give proper production.
High competition also affects the firm. Sometimes requirement of farmer also change that also effect the demand.
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FUTURE PLAN
Every organization has own future planning organization tries to do
something more earn with competition.
To expand the sales and profitability regarding consumer satisfaction.
To divert the business in another seeds product.
We want to cover whole market that demand upon agricultural field in
Gujarat and other States.
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CONCLUSION
From the project I learn lot I know how the practical and theorieal
aspects are applied in the industrial.
This project cannot be made without help of farmer because necessary
information for this project is collect from the farmer. I tell source that I become
helpful to the farmer directly or indirectly by preparing the project on GOKUL
COTTON SEEDS.