Cotton Seeds

8/2/2019 Cotton Seeds

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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.

Documents

Cotton Seeds