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On COTTON BALES As Ganesh Ginning & Pressing Pvt. Ltd.

PREPARED BY

Khokhariya Nileshkumar A.
T. Y. B.B.A. ROLL NO. !"# $%A& NO. !

K.K.PAREKH COMMERCE COLLAGE AMRELI

Acknowledgment

(t is a matter o) great *leasure and *roud *rivilege to a+kno,ledge e-*ressing my dee* sense o) gratitude to our *rin+i*al .hri./.&. .hah0 our BBA )a+ulty in+harge .hri &.&.Patel )or *roviding me valua1le detailed re2uired to *re*are this re*ort. ( also e-*ress my sin+ere thanks to those *ro)essors ,ho gave me a great idea o) *ro3e+t re*ort. . ( o,e my gratitude to K.K.P.4.4. sta)) ,ho has *rovide me the 1asi+ kno,ledge o) the *rodu+t and +om*rehensive in)ormation a1out the *rodu+tion *ro+ess and other te+hnologi+al as*e+ts.

Pla+e ! Amreli 5ate ! 6 6 7""

.ignature Khokhariya Nileshkumar A.

Preface

.mall!s+ale industries *lay a vital role in *romoting the e+onomi+al +ondition o) any +ountry and more *ra+ti+ally develo*ing +ountry like (ndia. The *rodu+t *ro3e+t re*ort is an integral *art o) the su13e+t name $ & &.B. 8ith regard to this0 ,e are re2uired to *re*are re*ort on any *rodu+t. As ( have sele+ted 94otton Bales: )or this *ur*ose. The *re*arations o) this re*ort also a++ess us to the *ro1lem o) in)rastru+ture )a+ilities0 govt. loans0 su1sidy *rovision0 la,)ul regulation0 )inan+ial sour+es and marketing as*e+ts. Thus this re*ort ,ildness our s+o*e o) study )rom more theory o) real liter situation

K.K.PAREKH COMMERCE COLLAGE AMRELI

[DEPARTMENT OF B.B.A.]

CERTIFICATE ------------------------------------------------------------------------------------------------DATE: - / / 200 This is to +erti)y that MR. Khokhariya Nileshkumar A. is a student o) final year B.B.A. +arried out the *rodu+t *ro3e+t re*ort as *er the sylla1us o) Saurastra University Ra!kot. /e has *re*ared *rodu+t *ro3e+t re*ort under our su*ervision and his o,n +ontri1ution )or making this re*ort during the a+ademi+ year 7""<!7""= is a**re+iated.

Pro). &. &. Patel >B.B.A. (n+harse?

Pro). /.&. .hah >Prin+i*al?

K. K. Parekh Commerce collage Amreli

INDEX
.r. No. ' 7 ; @ # C < = D '" '' '7 '; '@ '# 'C '< '= 'D 7" 7' Parti+ulars (ntrodu+tion Pro3e+t at a glan+e Promoters Ba+kground Lo+ation sele+tivity Produ+t & itAs Bses Ty*es o) ra, materials Pro+ess o) &anu)a+ture &arket *otential & analysis List o) *ros*e+tive 1uyers .u**liers o) ra, materials .u**liers o) ma+hineries Land & 1uilding Plant & ma+hineries Total +ost o) *rodu+tion 8orking +a*ital Total ,orking +a*ital .ales and *ro)ita1ility Break even analysis Ratio analysis Euture *ros*e+ts 4on+lusion Page No.

Introduction
A *rodu+t *ro3e+t re*ort is an outline o) various as*e+ts in o*erating unit. Though it des+ri1es a1out the market *otentials0 *rodigality0 lo+ation0 a+2uisition o) ne, materials0 man0 ma+hines0 et+. in details so the *rodu+t is very ne+essary0 as legal re2uirement 1e+ause it should a++urate investment needs and also )uture *ro)ita1ility analysis. The entre*reneur must think over ea+h and every *arts and as*e+ts o) 1usiness0 ,hi+h he ,ants to start. /e must +onsider every task o) esta1lishment in to manner0 ,hi+h makes some e-tent msanging in late 1e+ause0 easy. Thus0 P.P.R. is very use)ul in *ra+ti+al also it is very im*ortant and use)ul. (t +overs every as*e+ts o) *rodu+t0 ,hi+h you are going to start.

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Project at a Glance

Name o) the unit Name & Address o) Partners

! Ganesh Ginning & Pressing Pvt. Ltd. ! '. Khokhriya Nileshkumar A. Near Pan3ara *ol0 Amreli Road0 Ba1ra 7. Khokhriya A3it F. Khokhriya .treet0 Amreli Road0 Ba1ra

Address )or 4ommuni+ation ! As Per A1ove Eorm o) OrganiGation (nitial 4a*ital Produ+t Lo+ation Bankers ....(. Registration ! Partnershi* Eirm ! 7CC la+ks ! 4otton Bales ! Fasavad Road0 Ba1ra. ! .tate Bank O) .aurashtra. ! An A*lli+ation has already 1een su1mitted in 5(4.

Promoters Background
1.Name
Age Address ! ! ! Khokhariya Nileshkumar A. 7"Years Amara*ara0 Near Pan3ara *ol0 Ba1ra. $du+ation Huali)i+ation 5ivision o) Res*onsi1ility 4ontri1ution ! ! ! B.B.A.. Personnel0Produ+tion #"I )rom *ro)it & loss

2.Name
Age Address

! ! !

Khokhariya A3it F. 7@Years Amara*ara0 Khokhriya .treet0 Ba1ra.

$du+ation Huali)i+ation 5ivision o) Res*onsi1ility 4ontri1ution

! ! !

B.4om. &arketing0 Einan+ial #"I )rom *ro)it & loss

Location Selectivity
This is very ne+essary )or ea+h and every 1usiness that it should 1e lo+ated on that *arti+ular area ,here all re2uired )a+ilities and market is availa1le at minimum +ost. This is a *rodu+t *ro3e+t re*ort )or +otton 1ales0 ,hi+h is lo+ated Fasavad Road0 Ba1ra.

'. Availa1ility o) La1our .u**ly La1our *lays vital role in the +ost o) *rodu+tion. Ba1ra is ur1an area0 so that ,e +an get skilled and unskilled la1our easily and at reasona1le +ost.

7. Availa1ility o) Ra, &aterials Ra, materials like +otton and ,ater +an easily got at Ba1ra marketing yard0 no more trans*ort e-*enses so that at a lo,er *ri+e e-*enses.

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;. $le+tri+ity .u**ly (n the manu)a+turing *ro+ess o) every unitAs re2uired ele+tri+ ma+hineries0 there is a +ontinuous re2uirement o) ele+tri+ity to run the ma+hineries. (n this area )a+ility o) *o,er su**ly is easily availa1le.

@. Trans*ortation & 4ommuni+ation The +om*any is +onne+ted ,ith tele*hone and )are and in near )uture it ,ill have (nternet +onne+tion )or $!&ail. (n this +om*any the ra, materials are im*orted )rom Ba1ra. The trans*ort )a+ility is im*ortant one. At Ba1ra +ity the road )a+ilities are availa1le.

#. &arket &arket *lays an im*ortant role in the su++ess o) a 1usiness. () there is no market0 there ,ill 1e no 1usiness.

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Product and its Uses

There are only one ty*es o) *rodu+t in the unit. (ts name is Ka*as 9Bales:. (ts ra, material is only and only +otton. There is a +otton seeds se*arated )rom +otton is 1y *rodu+t. 4otton is 1asi+ ra, material o) any te-tile items es*e+ially +lothe.

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Type of Raw Materials

Ra, +otton >ka*as? is the only ra, material re2uired0 ,hi+h is easily availa1le lo+ally as ,ell as agri+ulture *rovide market o) the region. .ome o) the shareholder and dire+tor are also gro,ing ka*as and they ,ill also 1e sending dire+tly to the +om*any. The total re2uirement o) ra, +otton <<C7 .T.0 ,hi+h ,ill 1e easily availa1le in the o*en market. Over and a1ove a**ro-imately '""" &.T. o) ra, +otton0 ,hi+h ,ill 1e availa1le to the +om*any 1y the shareholders.

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Process of Manufacturing

The *ro+ess does not involve any air or ,ater e))luent in the )a+tory. And there)ore there does not re2uires any e))luent treatment *ro+ess or *ermission )rom GP4B.0 Gandhinagar.

Note ' BalesJ'C" kgs.

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Market Potentials & Analysis

8ithout market study none +an *rogress in )uture. .o that it is must )or ea+h and every Promoters ,ho like to start the ne, 1usiness and )or that *romoters also kno, the )uture o) the *rodu+t. A market study o) Ba1ra and other nearest distri+t gives us an analysis demand that is )or more greater that our su**ly. ! Ginning and *ressing +otton industries are around ## units in the state. ! Ginning is one o) the ma3or +enters o) ra, +otton and sin+e so many years Gu3arat is among the leading stage as )or as trading o) +otton is +on+erned. &arketing o++u*ies an im*ortant in 1usiness unit. The *ur*ose o) any 1usiness a+tivity is +reation o) +ustomers and a++ording to Philli* 4loture0 &arketing is the *ro+ess o)

*lanning and e-e+uting0 *ri+ing and distri1ution o) idea and

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servi+es to e-+hange that satis)y individual and organiGational goals.

List of Prospective Buyers.

Name O) Buyers ! Per)e+t +otton 4om.0 .urendranagar ! Parsav Trading Ltd0 .urendranagar ! .,astik 4otto 4or*oration0 Ra3kot ! &itali 4otton Traders0 Por1ander ! 5harmenrda Pukhra30 Ahmeda1ad ! Prime 4otton Te-tile0 .urat ! Khim3i Fashram & .ons0 .urat ! /itesh Brothes0 Ra3kot ! Radhesyam Oil &ils0 4hital

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Suppliers of Raw Materials

'. Radheshyam Trading 4om. &arket Yard0 Ba1ra.

7. Yogi Trading 4om. &arket yard0 Ba1ra.

;. Bhimani Trading 4om. &arket Yard0 Amreli

@. Other 5alal

and ,e are also get ra, materials )rom near 1y area.

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Suppliers Of Machineries

'. &6s .hive $nginnering Ltd. &.K.Gandhi Road0 Ra3kot

7. &6s ..F. &a+hineries 4om. Ltd. ;"'0;"70 Ram .ho**ing +enter0 Gondal Road0 Ra3kot.

;. Hueen $ngineering Pvt. Ltd. 4handni 4hi,+k0 &aka &adgid0 Ne, 5elhi.

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@. 5esai Tools & &a+hineries 4om. Ltd. Ra3ot Road0 Gondal.

Land & Building

Land: The +om*any has a+2uired a land admeasuring '"D;" s2. at the +onsidered +ost o) Rs. @"=@ la+ks at survey no. @@ *aiki0 viii0 Ba1ra0 5ist. ! Amreli. Land is situated in ta- and ele+tri+ity +onssession as *er the state government *oli+y )or the noti)ied 1a+k,ard area in +ategory K'.

Building: The +om*any ,ill have ginning house0 +ottonseed godo,n0 +y+lone0 *ala godo,n0 *ressroom0 and ele+tri+ room0 o*en +hatta0 o))i+e 1uilding0 sta)) 2uarters and toilet 1lo+k. The

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total +onstru+tion ,ill 1e to the tune o) @="<.#7 s2. at the +ost o) Rs. ''@."" la+ks.

Plant & Machineries

The *lant and ma+hineries +onsisting o) 7@ ginning ma+hines0 *neumati+ seed +otton system0 seed +otton auth )eeder0 +onveyer0 et+. at the total +ost o) Rs. C;."" la+ks in+luding Rs. #.""la+ks 1y ,ay o) ele+tri)i+ation. The +ost o) *lant & ma+hineries ,ithout ele+tri)i+ation ,orked out at Rs. #=."" la+ks and there)ore it has a status o) small!s+ale unit.

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Total Cost of Production

.alaries & ,ages Btility Ra, materials 5e*re+iation (nterest 4a*ital investment

'7;'7"""6! '#<"=""6! ';"'''"""6! '"D7"""6! 77=""""6! D@""""6!

Total

';<7"#=""6!

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Working Capital

A. 8ages & salary .r. ' 7 ; @ # No. Name .u*ervisor Te+hnetium No. ; < 8ages P.&. Total 7#"" 7#"" '="" '="" 7""" D""" 7'""" '';@"" C@="" DC"" !!!!!!!!!! Total #<@7""

Bnskilled 8orkers C; .e+urity Guard Adm. .ta)) ; @

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The total +ost ,ill 1e Rs. #.<@ la+ks % 7 J ''.@= La+ks L' month in+entive o) Rs. C@""" ,orked out to 1e Rs. '7.'7 La+ks.

B. Other $-*enses >&onthly? Postage & .tationery 7 ; @ Tele*hone +harges O))i+e $-*enses Re*airs & &aintenan+e ' <"""6! D"""6! D"""6! 7#""6! !!!!!!!!! #""""6! 4. Btilities >&onthly? '. Po,er & Euel 7"""""6!

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7. ;.

Lighting 1ill& 8ater .u**ly Oil Eor Pressing

#""""6! #"""""6! !!!!!!!!!!! <#""""6!

5. Ra, &aterials '. Ka*as '# tons 5aily @#" tons % 7#""Rs. Per Ton ''7#""""6!

Total Working Capital

C! &onths '. 7. ;. @. Ra, &aterials 8ages & .alary Btility Other $-*enses C<#"""""6! C"C"""6! @C"""""6! ;"""""6! !!!!!!!!!!!!!! Total C&onthly ,orking 4a*ital <7D"C"""6!

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Yearly '. 7. ;. @. Ra, &aterials 8ages & .alary Btility Other $-*enses ';#""""""6! '7'7"""6! D""""""6! C"""""6! !!!!!!!!!!!!!! Total C&onthly ,orking 4a*ital '@#='7"""6!

Sales & Profitability Analysis

Total .ales Less Annual +ost o) *rodu+tion

'@##DD"""6! ';<7"#=""6! !!!!!!!!!!!!!!!

Gross Pro)it Less (nterest on 4a*ital

=;D;7""6! D@""""6! !!!!!!!!!!!!!!!

Pro)it Be)ore Ta-es

<@#;7""6!

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Less

#"I Ta-es

;<7CC""6! !!!!!!!!!!!!!! ;<7CC""6!

BEP
Amount Rs. >(n la+ks? '@##.DD ';<D.DD !!!!!!!!!!! <C.""

Less

.ales Faria1le 4ost 4ontri1ution

Ei-ed 4ost ! Po,er & Euel ! .alaries & 8ages ! Re*airs ! (nterest ! 5e*re+iation Total Ei-ed 4ost

;."" '7.'7 '.#" 77.=" '".D7 !!!!!!!!! #".;@

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Faria1le 4ost ! Ra, materials ! .tores ! Other &anu. $-*s. ! &aintenan+e ! Administration $-*s. ! .elling $-*s. ! Pur+hasing 4ommission ! 8orking +a*ital (nterest ! Po,er & Euel Total Faria1le 4ost Break $ven Point in I Break $ven value O) sales Break $ven Huantity >&.T.? Ei-ed 4ost

';"'.'' ;."" 7C.;# '.#" ;."" '@.#C ';."' D.@" =."C !!!!!!!!! ';<D.DD #7.D=I DC@.@" @";'

B$P

!!!!!!!!!!!!!!! % '"" 4ontri1ution #".;@ !!!!!!!! % '"" <C."" CC.7@I

J J

P6F Ratio

4ontri1ution !!!!!!!!!!!!!!!!!! % '"" .ales <C."" !!!!!!!!! % '"" '@##.DD

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#.77

B$P in Rs.

Ei-ed 4ost !!!!!!!!!!!!!! % '"" P6F Ratio #".;@ !!!!!!! % '"" #.77 DC@.;<I

J J

Ratio Analysis
G.P. '. Gross *ro)it Ratio J !!!!!!! % '"" .ales <D.'' J !!!!!!!!! % '"" '@##.DD J #.@;I

Net Pro)it

7=

7. Net Pro)it ratio

!!!!!!!!!!!! % '"" .ales ;7.C"

!!!!!!!! % '"" '@##.DD

7.7@I

; Rate o) Return Ratio Or Return On +a*ital (nvested Net Pro)it J !!!!!!!!!!!!!!!!!!!!! % '"" Total (nvestment ;7C"""" J !!!!!!!!!!!!! % '"" 7CC""""" J '7.7CI

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@. 8orking 4a*ital Turn Over Ratio .ales J !!!!!!!!!!!!!!!!!! % '"" 8orking 4a*ital '@##DD""" J !!!!!!!!!!!!!!! % '"" '@#='7""" J ".DD=M'

Conclusion

At the end o) this re*ort ,e +on+lude that as in (ndia0 there is a *ro1lem o) unem*loyment and 1y starting this industry many *ersons ,ill get em*loyment. (t is good to solve the *ro1lems o) unem*loyment and also 1y starring o) this industry the standard o) living o) *eo*le o) Amreli 5istri+t and village o) Amreli ,ill in+rease. The unit does the *rodu+tion +ontinuously day night to rea+h at the destination o) *rodu+tion.

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Future Prospects

Euture *lan o) this unit is to in+rease the market ,ide and in+rease his 1usiness. .u**ose he ,ants to esta1lish +otton oil *lant in 7"'" in their 1usiness in this unit ,orking.

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The name o) ne, unit ,ill 1e Radhesyam +otton oil mill Pvt. Ltd. the market o) +otton oil is very ,ide at *resent and ,ill 1e more ,iden in )uture too.