PPR 2 PDF

M.V.M . College of Commerce Mgt. and I.T.
Rajkot
INTRODUCTION – PROJECT AT GLANCE
1
M.V.M . College of Commerce Mgt. and I.T. Rajkot
2
INDEX
SR SECTIONS PG.
NO. NO.
1.1 Introduction Product at glance 4
1.2 Name of the Unit 5
1.3 Profile of the Unit 6
1.4 Location & site preference 7
1.5 Promoters Background 8
1.6 Contribution of Gov. Institution 9
1.7 Gov.Procedure for Registration 10
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1.1 INTRODUCTION –PRODUCT AT GLANCE
A. IDEA GENRATION.
A Cotton bale is a standard sized and weighted pack of compressed cotton unit after
ginning. In India cotton production focused on textiles for over thousand of year
genrating significant employment for both skilled and unskilled employment.
The cotton sector in India is considered the second most devloped sector in textile
industry. This is the reson why I have selected COTTON BALES for my Product Project
Report.
B. TECHNICAL AND MANAGERIAL EXPERIENCE TO HANDLE

THE BUSINESS.
During my college studies I have done intership and also for two years I have worked
in ginning factory as a part of my intership. So I have the knowledge of
manufacturing and handling the machine regarding the same.
C. KNOWLEDGE RELATED PRODUCT AND BUSINESS
Though I have worked for two years I have the knowledge regarding the product and
business.
D. MARET COMPETITION
Market competition is a monopolistic competition as there are many ginning industry
but all have the different features. Thus there exist a monopolistic competition in the
market.
E. AVAILABILITY OF RAW MATERIALS AND MACHINES
Raw cotton is the main raw material used in the ginning industry. In this area there is
availability of all the raw materials and machinery in the nearby area.
F. LABOUR REQUIREMENT WITH SPECIFIC SKILLS

SKILLED WORKERS : 4
SEMI SKILLED WORKERS :14
UN SKILLED WORKERS :14
4
Skiiled workers are required for account, semi skilled workers are required for
packaging and labeling and unskilled workers are required for cleaning and
dispatching of product etc.
1.2 NAME OF THE UNIT
Shree Khodiyar Ginning and Pressing Factory.
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1.3 NAME OF THE UNIT
1. Name of the unit SHREE KHODIYAR

GINNING AND PRESSING
FACTORY
2. Registered office Jadeshwar road, Wankaner
3. Form of the organization Sole Proprietorship
4. Name of the product Cotton Bales
5. Brand name K.G.P
6. Logo
K.G.P.
7. SSI Registration Number Applied for
8. Subsidies Registration Number Applied for
9. Owner’s Name And address Name: Panjwani Alina M.
Address: Aashiyana Society Wankaner
10. Banker’s Name Government Bank
11. Initial capital investment 1,78,97,000
12. Ownership Capital 1,07,38,200
13. Borrowed Capital 71,58,800
14. NO. of employees: 32
Skilled Workers 4
Semi- Skilled Workers 14
Un- Skilled Workers 14
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1.4 LOCATION AND SITE PREFERENCE
Plan location refers to the choice of region and selection of a particular for setting up a
industry but choice is only made after considering cost and strategic decision that schanged
once taken.
Factors affecting location
 Irregular or less availability of water supply.

 Government policy
 Climate Condition
Details of the location
Shree Khodiyar Ginning and Pressing is located at jadeshwar road wankaner. We have an
ownership building.
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1.5 PROMOTER’S BACKGROUND
1. Name of the promoter Panjwani Alina M.

2. Age 26
3. Qualification M.B.A. in Marketing
4. Experience 2 Years
5. Area of Operation Production Department
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1.6 CONTRIBUTION
1. PRODUCT SELECTION:
Industrial Extension Beauro A bad Small Industry Service Institute (SISI) A bad
Rajkot Gujarat Industrial and technical Consultancy Organisation ltd (GITCO)
DIC CED Policy Techno Transfer Center (PTC), A’bad.
2. ACQUIRING LAND:
GIDC, Government wastefull Land, Private Estate, Loan lending institutes like
GSFC, Banks etc.
3. MARKETING:
GIDCO, National Small Scale Industry Corporation, Gujarat Small Industriesn
Corporation A’bad Rajkot Small Industry Service Institute Gujarat Export
Corporation.
4. TRAINING:
CED, Diamond Jubilee Institute, Baroda. SISI, PTC for Engineering products.
DIC for Small & Cottage Industry Service Institute.
5. Raw Materials:
Gujarat Small Industries Corporation & Small Industry Service Institute.
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1.7 GOVERNMENT PROCEDURE FOR REGISTRATION
STEP:1 PROVISIONAL SSI REGISTRATION

Passport Size Photographs Copy of NOA, AOA, Proof of legal Possession.
STEP:2 START THE BUSINESS
Next step towards having a permanent license is to start the business with an SSI certificate.
The owner should start the production in the factory so that permanent license should be
given.
STEP:3 APPLY FOR PERMANENT SSI REGISTRATION
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PRODUCTION DEPARTMENT
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INDEX
SR SECTIONS PG
NO. NO.
2.1 Introduction to Production Department 13
2.2 Machinery Used 14
2.3 Raw Material 16
2.4 Production Process 18
2.5 Plant Layout 19
2.6 Production Capacity 21
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2.1 INTODUCTION TO PRODUCTION DEPARTMENT
Production is the basic activity of industrial unit. All the other activities revolve around this
activity . The end product of the production activity is the creation of goods and services for
the satisfaction of human wants. The production activity is nothing but step by step process of
raw materials into finished goods by final products.
We are maintaining the quality and quantity of the product and as per order production &
planning is done by Production Manager. He takes very high efforts to do planning about the
production.
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2.2 MACHINERY USED
SR NAME OF THE NAME OF THE QUOTATION

NO. MACHI NE SUPPLIER
1. Hot Box Machine Pramukh Steel 4,50,000
Industries
2. Super Cleaner Machine Dhiviti Industries 3,50,000
3. Pressing Machine Oham Industries 4,50,000
14
1) Hot Box Machine:~
2) Super cleaner Machine:~
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2.3 RAW MATERIALS
SR Source of Raw Material Name of the Quotation

NO. Suppliers
1. Fields Market yard or 80
Farmers
16
1. Raw Cotton:~
17
2.4 PRODUCTION PROCESS
SEED COTTON
PRE CLEANING
GINING
LINT CLEANER
BALE PRESS
COTTON BALES
SPINNING
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2.5 PLANT LAYOUT
The decision regarding the location of an industrial unit may be studied in three parts:
1. Determination of region where the plan is located.

2. Choice of city or suburbs where the plan is situated.
3. Choice of Particular site for the plan.
Shree Khodiyar Ginning & Pressing company enjoys all the infrastructure facilities. They get
important advantages like easy availability of raw materials,good market, cheap labour
facilities and it is also benefited by government policy.
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Plant Layout of “KGP Ltd.”.
Production Unit Warehouse
Quality Department &

Selling Department General Office
Canteen MD
Manager’s Cabin
Entrance
Exit
Parking Garden
MAIN GATE
20
2.6 PRODUCTION CAPACITY
 For the First Year the Production is 10,000, Sales is 8,000 and the Closing Stock is
2,000.
 For the Second Year the Production is 15,000, Sales is 13,600 and the Closing Stock
is 3,400.
 For the Third Year the Production is 20,000, Sales is 18,720 and the Closing Stock is
4,680.
Year Capacity Unit

1. 50% 10,000
2. 75% 15,000
3. 100% 20,000
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MARKETING DEPARTMENT
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INDEX
SR SECTIONS PG
NO. NO.
3.1 Introduction 24
3.2 Market Planning 25
3.3 Product Strategies 26
3.4 Pricing Strategies 28
3.5 Distribution Strategies 29
3.6 Promotion Strategies 30
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3.1 INTRODUCTION TO MARKETING DEPARTMENT
Marketing is an comprehensive term. It consist of the set of all resources and activities
necessary to direct and facilitate the flow of goods and services from producer to consumer in
the process of distribution.
Marketing Management represent the marketing concept in action “ The process of

management of marketing program for accomplishment of organisation goals and
objectives.”
Thus, Marketing management involves the process of planning the product as well as
planning implementation of controlling program and campaigns based on the demand of
consumer.
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3.2 MARKET PLANNING
Market Planning is the process of organising and defining the market aims of a company and
gathering strategies and tactics to achieve them. A solid marketing plan should consist of
company’s value proposition information regarding its target market of consumer a
comparative positioning of its competitors in the market promotion strategies distribution
channels & budgets allocated for the plan. All relevant team in the organization should refer
to the marketing planning.
Market planning is done by marketing manager. It includes both long term and short term
market planning.
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3.3 PRODUCT STRATEGIES
A product strategy is a high level plan describing what a business hopes to accomplish with
its product and how it plans to do so. The strategy should answer key question such as who
the product will serve, how it will benefit those persons and the company’s goals for the
product throughout its life cycle.
 PRODUCT SPECIFICATION
Cotton has a number of distinguishing characteristic that make it such a popular fiber
in the textile industry.
 Softness
 Durability
 Absorbency
 Breathability
 PRODUCT TESTING
Product testing seeks to ensure that consumers can understant what product will do
for them and which product have the best value. Product testing is a strategy to
increase consumer protection by checking the claims made during marketing
startegies such as advertising etc. The advent of product testing was the beginning of
the modern consumer movement.
 MARKET TESTING
The market testing is genrally carried out to ascertain the performance and probable
market success of any new product.
 We will build a test service
 MAIN PRODUCT WITH ITS BRAND NAME
The main product of the company is Cotton Bales and its brand name is K.G.P.
 PODUCT FEATURES
A Product feature is a specific piece of functionality that has a corresponding benefit
or set of benefit for the consumer.
The colour of cotton bales is white and it is of high quality.
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 PACKAGING AND LABELLING

Packaging is the science and technology of enclosing or protecting product for
distribution storage sale and use. Product labelling is the lack of writing and
displaying information about a product pacakaging. It covers the brand colour logo
material and shape of the package while labelling is focused on the product
information or written part.
We have a two choice of material to wrap bales net wrap or plastic wrap. The choice
isnt about presentation its about bailing efficiency and storage if properly baled and
stored last a long time without degrading in quality.
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3.4 PRICING STRATEGIES
Pricing is an important decision that every company has to take high price or low price may
create bad reputation of company. The price of the product is a crucial decision .
Pricing policy is Cost + Profit Whatever have incurred during the manufacturing of product is
considered= profit is also included. Competitors price are also considered.
 OBJECTIVES OF PRICING
1. Achieving a target return on investment.
2. Price Stability
3. Achieving market share
4. Prevention of competition
5. Increased profit
 FACTORS AFFECTING PRICING
1. Internal factors
2. External factors
 INTERNAL FACTORS
1. Organization factor
2. Marketing mix
3. Product differentiation
4. Cost of product
 EXTERNAL FACTORS
1. Demand
2. Supply
3. Competition
 PRICING CALCULATIONS
The calculation of the prime cost of a unit of output or job performed. Cost
calculation is one of the basic index of the prime cost plan and report. The current
actual norms, characterising basically the attained level of expenses from the bases
for the calculations.
We have a set our price by adding 10% of profit on our cost price.
This is the price calculations for khodiyar ginning and pressing factory.
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3.5. DISTRIBUTION STRATEGIES
Farmer
Producer
Wholesaler
Customer
 ROLE & PROFIT MARGINE OF MIDDLEMAN:
The middleman of our Industry is Wholesaller & Retailer. Their profit margine is 5 – 7 %
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3.6 PROMOTION STRATEGIES
Promotional strategies is a method used by companies to advertise promote and sell their
goods. A company chooses its promotional strategy based on factor like product type
marketing budget, target audience etc. It is a critical activity to increase product awareness
and thereby increase sales. An effective promotional strategy gets more revenue as compared
to marketing spend.
1. Advertisement
An advertisement is the promotion of a product, brand or service to a viewership in
order to attract interest, engagement and sales.
We do advertisement through pamplets, banners, newspaper etc.
2. PERSONAL SELLING
Personal selling is also known as face to face selling in which one person who is
salesman tries to convince the customer in buying a product.
In our organization the selling is done from organisation to wholesale to retailer to
customer.
3. SALES PROMOTION TOOLS
A sales promotion is a marketing strategy in which a business uses a temporary
campaign or offer to increase interest or demand in its product or service. There are
many reasons why a business may choose to use a sales promotion, but the primary
reason is to boost sales.
We do sales promotion as :
a. Advertising
b. Discount
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4. Publicity:-
Publicity is gaining public visibility or awareness for a product, service or your
company via. The media. It is the publicist that carries out publicity, while PR is the
strategic management function thet helps an organisation communicate, establishing
and maintaining communication with the public.
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FINANCE DEPARTMENT
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INDEX
SR SECTIONS PG
NO. NO.
A. Production and sales of finished goods 34
B. Stock of Raw material 35
C. Total Fixed Assets 36
D. Total Working Capital 43
E. Total Investment 48
F. Sources of Capital 49
G. Loan Repayment Schedule 51
H. Depreciation On Fixed Assets 52
I. Total Fixed Cost 56
J. Total Variable Cost 58
K. Total Cost 60
L. Break Even Points (in units) 61
M. Break Even Points (in rs) 62
N. Trading Account (1st year) 63
Profit & loss Account (1st year)
Balancesheet (1st year)
O. Trading Account (2nd year) 66
Profit & loss Account (2nd year)
Balancesheet (2nd year)
P. Trading Account (3rd year) 69
rd
Profit & loss Account (3 year)
Balancesheet(3rd year)
Q Statement of Profitability(For 3 years) 71
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A. ESTIMATED PRODUCTION AND SALES (IN UNITS):
YEAR OPENING STOCK PRODUCTION SALES (80%) CLOSING

(+) (-) STOCK
1. 00 10,000 8,000 2,000
2. 2,000 15,000 13,600 3,400
3. 3,400 20,000 18,720 4,680
34
(B) STOCK OF RAW MATERIALS (IN UNITS):
PARTICULARS YEAR – 1 YEAR – 2 YEAR – 3

Opening Stock 000 1,000 1,000
Add: Purchase 5,01,000 7,50,000 10,00,000
Less: Consumption 5,00,000 7,50,000 10,00,000

Production X Raw materials per unit
= Closing Stock 1,000 1,000 1,000
35
(C) TOTAL FIXED ASSETS:

(C – 1) LAND AND BUILDING:
PARTICULARS AMOUNT RS.

1. Land 20,00,000
2. Land Devlopment & Fencing 50,000
3. Factory Building 15,00,000
4. Office Building 2,00,000
5. Storage House 6,00,000
6. Bore Well 40,000
7. Water Tank 10,000
8. Main Gate 12,000
9. Watchman’s Cabin 35,000
10. Lavatories 5,000
Total (C-1) 44,52,000
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(C – 2) PLANT AND MACHINERY:
NAME OF MACHINERY AMOUNT RS.

1. Hot box machine 4,50,000
2. Super cleaner machine 3,50,000
Pressing
3 machine 4,50,000
.
Jadhad
4 machine 2,50,000
.
TOTAL (C – 2) 15,00,000
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(C – 3) FURNITURE AND ELECTRIC APPLIANCE:
PARTICULARS Qty. Rate per unit Amt.

Rs.
1 Ordinary Tables 2 1,500 3,000
2 Computer Tables 2 5,000 10,000
3 Chairs 6 500 3,000
4 Fans 15 900 13,500
5 Lights 20 200 4,000
6 CCTV Camera 10 1,000 10,000
7 Air Conditioners 4 30,000 1,20,000
TOTAL (C-3) 1,63,500
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(C – 4) COMPUTERS AND PERIPHERALS:
PARTICULARS QTY. RATE PER UNIT AMT.

RS. RS.
1. Desktop Systems 1 15,000 15,000
2. Laptop Systems 2 35,000 70,000
3. Printers 1 15,000 15,000
TOTAL (C-4) 1,00,000
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(C – 5) VEHICLES:
PARTICULARS QTY. RATE PER UNIT AMT.

RS.
1. Delivery van 1 5,00,000 5,00,000
TOTAL (C-5) 5,00,000
40
TOTAL FIXED ASSETS:
PARTICULARS AMT. RS.

Land and Building(C-1) 44,52,000
Plant & Machinery (C-2) 15,00,000
Furniture & Electric Appliances (C-3) 1,63,500
Computer & Peripherals (C-4) 1,00,000
Vehicles(C-5) 5,00,000
Total Fixed Assets (C) 67,15,500
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PRELIMINARY EXPENSES:
PARTICULARS AMT. RS.

1. Consultancy Fees 2,00,000
2. Project Report Preparation Fees 80,000
3. Legal Expenses of Company Formation 1,00,000
4. Interest during Construction Period 1,20,000
TOTAL 5,00,000
42
(D) TOTAL WORKING CAPITAL
(D – 1) RAW MATERIALS (MONTHLY):
PARTICULARS MONTHLY RATE PER MONTHLY YEARLY

KG. AMT. RS. AMT. RS.
Cotton 41,750 80 33,40,000 4,00,80,000
Total (D-1) 33,40,000 4,00,80,000
43
(D – 2) SALARY AND WAGES:
PARTICULARS NO. OF AMT. PER TOTAL YEARLY

PERSONS MONTH AMT. PER AMT. RS.
MONTH RS.
1. Genral Manager 2 10,000 20,000 2,40,000
2. Factory Manager 2 10,000 20,000 2,40,000
3. Export Manager - - - -
4. Supervisors 4 5,000 20,000 2,40,000
5. Clerk-cum-cashier 3 5,000 15,000 1,80,000
6. Helpers 3 4,000 12,000 1,44,000
7. Foremen 2 4,000 8,000 96,000
8. Sweeper 6 2,500 15,000 1,80,000
9. Computer Operator 3 6,000 18,000 2,16,000
10. Mechanic 2 6,000 12,000 1,44,000
11. Salesman - - - -
12. Storekeeper - - - -
13. Peon 5 2,000 10,000 1,20,000
14. Lab Technician -
TOTAL (D-2) 1,50,000 18,00,000
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(D – 3) UTILITIES:
PARTICULARS MONTHLY YEARLY

AMT. AMT.
RS. RS.
1. Power 25,000 3,00,000
2. Fuel 12,000 1,44,000
3. Water 3,000 36,000
4. Oil and Gresse 7,000 84,000
Total (D-3) 47,000 5,64,000
45
(D – 4) OTHER EXPENCES:
PARTICULARS MONTHLY YEARLY

AMT AMT
RS. RS.
1. Postage and Stationery 2,000 24,000
2. Telephone Charges 1,000 12,000
3. Transport charge 5,000 60,000
4. Advertisement Expense 1,500 18,000
5. Insurance 3,000 36,000
6. Repairs and Maintenance 2,000 24,000
7. Selling Expenses 5,000 60,000
8. Other Sundry Expenses 4,000 48,000
TOTAL (D-4) 23,500 2,82,000
46
TOTAL WORKING CAPITAL:
PARTICULARS TOTAL AMT

PER MONTH
RS.
1. Raw Materials(D-1) 33,40,000
2. Salary and Wages (D-2) 1,50,000
3. Utilities (D-3) 47,000
4. Other Expenses (D-4) 23,500
TOTAL WORKING CAPITAL PER MONTH 35,60,500
TOTAL WORKING CAPITAL FOR 3 MONTHS (D) 1,06,81,500
47
(E) TOTAL INVESTMENTS:
PARTICULARS AMT.
RS.
1. Total Fixed Assets ( C ) 67,15,500
2. Total Working Capital (D) 1,06,81,500
3. Prelimnary Expenses 5,00,000
TOTAL INVESTMENTS 1,78,97,000
48
(F) SOURCES OF CAPITAL:
TOTAL INVESTMENT
OWNED CAPITAL BORROWED CAPITAL
60% 40%
1,07,38,200 71,58,800
49
PARTICULARS AMT.
RS.
1. Owned Capital 1,07,38,200
2. Borrowed Capital 71,58,800
TOTAL CAPITAL (F) 1,78,97,000
50
(G) LOAN REPAYMENT TABLE:
YEAR OPENING INTEREST CLOSING

BALANCE @ 12 % BALANCE
1. 71,58,800 8,59,020 64,42,920
2. 64,42,920 7,731,50.4 57,27,040
3. 57,27,040 687244.8 50,11,160
4. 50,11,160 601339.2 42,95,280
5. 42,95,280 515433.6 35,79,400
6. 35,79,400 429528 28,63,520
7. 28,63,520 343622.4 21,47,640
8. 21,47,640 257716.8 14,31,760
9. 14,31,760 171811.2 7,15,880
10. 7,15,880 85905.6 0
51
(H) DEPRECIATION ON FIXED ASSETS:
NAME OF THE ASSET RATE OF

DEPRECIATION
1. Land & Building 10%
2. Plant & Machinery 15%
3. Furniture 20%
4. Computers 60%
5. Vehicles 10%
52
TABLE OF DEPRECIATION FOR THREE YEARS:
YEAR – 1
ASSET OPENING DEPRECIATIO CLOSING

BALANCE N BALANCE
RS. RS. RS.
Land & Building 44,52,000 4,45,200 40,06,800
Plant & Machinery 15,00,000 2,25,000 12,75,000
Furniture 1,63,500 32,700 1,30,800
Computers 1,00,000 60,000 40,000
Vehicles 5,00,000 50,000 4,50,000
53
YEAR – 2:
ASSET OPENING DEPRECIATION CLOSING

BALANCE RS. BALANCE
RS. RS.
Land & Building 4,006,800 4,00,680 36,06,120
Plant & Machinery 12,75,000 1,91,250 10,83,750
Furniture 1,30,800 26,160 1,04,640
Computers 40,000 24,000 16,000
Vehicles 4,50,000 45,000 4,05,000
54
YEAR – 3:
ASSET OPENING DEPRECIATION CLOSING

BALANCE RS. BALANCE
RS. RS.
Land & Building 36,06,120 3,60,612 32,45,508
Plant & Machinery 10,83,750 1,62,563 9,21,187
Furniture 1,04,640 20,928 83,712
Computers 16,000 6,400 9,000
Vehicles 4,05,000 40,500 3,64,500
55
(I) FIXED EXPENSES:

1. Salary & Wages 10,80,000 10,80,000 10,80,000
2. Utilities 2,82,000 2,82,000 2,82,000
3. Other Expenses 1,97,400 1,97,400 1,97,400
TOTAL FIXED EXPENSES 15,59,400 15,59,400 15,59,400
(I)
56
(YEAR – 1)
FIXED COST PER UNIT = Total fixed expenses
Production at 50%
= 15,59,400
10,000
= 155.94
57
(J) TOTAL VARIABLE EXPENSES:

1. Raw Materials 4,00,80,000 6,01,20,000 8,01,60,000
2. Salary & Wages 7,20,000 10,80,000 14,40,000
3. Utilities 2,82,000 4,23,000 5,64,000
4. Other Expenses 84,600 1,26,900 1,69,200
TOTAL VARIABLE 4,11,66,600 6,17,49,900 8,23,33,200
EXPENSES (J)
58
VARIABLE COST PER UNIT = Total Variable Expenses
Production at 50%
= 4,11,66,600
10,000
= 4,116.66
59
(K) TOTAL COST:
TOTAL COST = TOTAL FIXED COST + TOTAL VARIABLE COST
(Y – 1 ) (Y – 2)
= 15,59,400 + 4,11,66,600
= 4,272.6
TOTAL COST PER UNIT = TOTAL COST
PRODUCTION AT 50%
= 4,27,26,000
10,000
= 4,272.6
60
(L) BREAK EVEN POINT:
B.E.P (IN UNITS) = TOTAL FIXED EXPENSE
SELLING PRICE PER UNIT - VARIABLE COST
= 15,59,400
4,700 – 4,272
= 15,59,400
428
= 3,643.46
61
(M) BREAK EVEN POINT (IN RS.)
B.E.P (IN RS.) = B.E.P IN UNIT X SELLING PRICE PER UNIT
= 3,643 X 4,700
= Rs. 1,71,22,100
62
FINAL ACCOUNTS FOR THREE YEARS:
YEAR – 1
TRADING ACCOUNT OF SHREE KGP LTD. AS ON YEAR 1:
PARTICULARS AMT. PARTICULARS AMT.

To Opening Stock: By Sales 3,76,00,000
Raw Material By Closing Stock:
Finished Goods Raw Materials 80,000
To Raw Materials 4,00,80,000 Finished Goods 85,44,000
To Utilities 2,82,000
To Salary & Wages 7,20,000
To Gross Profit 51,42,000
TOTAL 4,62,24,000 TOTAL 4,62,24,000
63
P & L A/C FOR SHREE KGP LTD. AS ON YEAR 1:
Particulars Amt. Particulars Amt.

To Salary & Wages 10,80,000 By Gross Profit 51,42,000
To other expense 282,000
To Depreciation
Land & Buil 4,45,200
Plant & Machi. 2,25,000
Furniture 32,700
Computers 60,000
Vehicles 50,000
To Interest on Capital 4,29,530
To Interest on Loan 8,59,020
To Preliminary Expences 50,000
To Provision for tax 4,03,965
Net Profit 9,42,585
Total 51,42,000 Total 51,42,000
64
BALANCE SHEET FOR SHREE KGP LTD. AS ON YEAR – 2:
LIABILITIES AMT. ASSETS AMT.
Opening Capital: Land & Buil 44,52,000

Interest on Capital 4,29,528 -Dep 4,45,200 40,06,800
Net Profit 9,42,585
12% bank loan 64,42,920 Plant & Machi.
15,00,000 12,75,000
-Dep. 2,25,000
Creditors 80,16,000 Furniture 1,63,500
-Dep 32,700 1,30,800
Bills payables 8,01,600 Computers
1,00,000 40,000
-Dep 60,000
Provision for tax 4,03,965 Vehicle
5,00,000 4,50,000
-Dep 50,000
Bank Over draft 1,40,79,002 Closing Stock:
Raw Materials
80,000 86,24,000
Finished Goods 85,44,000
Debtors 1,50,40,000
Bills Receivables 15,04,000
Preliminary exp. 5,00,000
-Written off 50,000 4,50,000
Total 3,11,15,600 Total 3,11,15,600
65
YEAR – 2
TRADING ACCOUNT OF SHREE KGP LTD. AS ON 2nd YEAR

Raw Materials 80,000
Finished goods 85,44,000
Raw Material 6,01,20,000 By Closing Stock:
Finished goods 14524800 1,46,04,800
To Gross Profit 82,77,800
TOTAL 7,85,24,800 TOTAL 7,85,24,800
66
P & L A/C FOR SHREE KGP LTD. AS ON 2nd YEAR:

To Salary & Wages 10,80,000 By Gross Profit 8,27,7,800
To other expense 3,24,300
To Depreciation
Land & Buil 4,00,680
Furniture 26,160
Computers 24,000
Vehicles 45,000
Net Profit 32,56,212
Total 8,27,7,800 Total 8,27,7,800
67
BALANCE SHEET FOR SHREE KGP LTD. AS ON 2nd YEAR
Opening Capital: Land & Buil 40,06,800

Interest on Cap. 4,29,528 -Dep 4,00,680 36,06,120
Net Profit 32,56,212 36,85,740
12% bank loan 57,27,040 Plant & Machi. 12,75,000
-Dep. 1,91,250 10,83,750
-Dep 26,160 1,06,460
Bills payables 1,20,400 Computers 40,000 16,000
-Dep 24,000
Provision for tax 13,95,520 Vehicle 4,50,000
-Dep 45,000 4,05,000
Finished Goods 1,45,24,800 1,46,04,800
Debtors 2,55,68,000
Preli. exp. 4,50,000
-Written off 50,000 4,00,000
Total 4,83,46,930 Total 4,83,46,930
68
YEAR – 3
TRADING ACCOUNT OF SHREE KGP LTD. AS ON 3rd YEAR:

Finished Goods 1,45,24,800
To Raw Materials 8,01,60,000 To Closing stock:
Finished goods 1,99,92,960
To Gross Profit 1,12,88,160
TOTAL 10,80,56,960 TOTAL 10,80,56,960
69
P & L ACCOUNT FOR SHREE KGP LTD. AS ON 3rd YEAR

To Salary & Wages 10,80,000 By Gross Profit 1,12,88,160
To other expense 3,66,600
To Depreciation
Land & Buil. 3,60,612
Furniture 20,928
Computers 6,400
Vehicles 4,05,000
Net Profit 54,61,250
Total 1,12,88,160 Total 1,12,88,160
70
BALANCE SHEET OF SHREE KGP LTD. AS ON 3rd YEAR:
Opening Capital: Land & Buil. 36,06,120

Int. on Cap. 4,29,528 -Dep 3,60,612 32,45,508
Net Profit 54,61,250 58,90,778
12% bank loan 50,11,160 Plant & Machi. 10,83,750
-Dep. 1,62,563 9,21,187
-Dep 20,928 83,712
Bills payables 8,03,213 Computers 16,000
-Dep 6,400 9,600
Provision for tax 23,40,473 Vehicle 4,05,000
-Dep 40,500 3,64,500
Finished Goods 1,99,92,960 2,00,72,960
Debtors 3,51,93,600
Preli. exp. 4,00,000
-Written off 50,000 3,50,000
Total 6,37,60,427 Total 6,37,60,427
71
STATEMENT OF PROFITABILITY:
Particular Year 1 Year 2 Year 3

Sales 3,76,00,000 6,39,20,000 8,79,84,000
Less: Variable Expense 3,29,36,000 5,59,91,200 7,70,70,240
Contribution 46,64,000 79,28,800 1,09,13,760
Less: Fixed Expense 12,48,000 21,21,600 29,20,320
E.B.I.T. 34,16,000 58,07,200 79,93,440
Less: Interest 8,59,020 7,73,150 6,87,245
E.B.T. 25,56,980 50,34,050 73,06,195
Taxes 30% 7,67,094 15,10,215 21,91,859
P.A.T. 17,89,886 35,23,835 51,14,336
72
HUMAN RESOURCE DEPARTMENT
73
INDEX
SR. SECTIONS PG.

NO. NO.
5.1 Introduction to Human Resource Department 75
5.2 Human Resource Planning 76
5.3 Recruitment and Selections 77
5.4 Training 79
5.5 Wage & Compensation 80
5.6 Employee Welfare 81
74
5.1 INTRODUCTION TO HUMAN RESOURCE

DEPARTMENT
Personnel Department is very important for organisation. In modern times personnel

department also called personnel administration. Personnel management is the planning,
organising, staffing, directing, and controlling of procruetment devlopment compensation
integration maintenance of people for the purpose to contribution to organisation, individuals
and social goals.
The Concept of personnel management undervent a systematic change. It is the process of

planning, organising, staffing, directing, and utilizing human resource in productive and
efficient manner and it is concerned with people in the organisation and their relationship
with organisation.
75
5.2 HUMAN RESOURCE PLANNING
Total No. of Employees :32
Skilled Workers =4
Semi- skilled workers = 14
Unskilled workers = 14
76
5.3 RECRUITMENT & SELECTION

Recruitment is the devlopment and maintainence of adeqyate man power resources. It is the
process of identifying the source from prospective candidates and to stimulate them to apply
for a specific job. There is no special appointment for selection of candidate and recruitment
is done from internal source and external source.
Recruitment is done mainly through two sources:
1. Internal Source
2. External Source
1. Internal Sources
 Through Employyes
 Through Advertisement
2. External Sources
 Contractors
 Employement Exchange
 SELECTION
Selection is the process of choosing or picking the right candidate who is
most suitable for a vaccant job position in an organisation. The selection of
a right applicant for a vaccant position will be an asset to the organisation
which will be helping the organisation in reaching its objectives.
77
PROCESS OF SELECTION:
Preliminary Interview
Receiving Application
Screening of Application
Employeement Test
Interview
Reference Checking
Medical Examination
Final Selection
78
5.4 TRAINNING
Trainning is the process of providing a required skills to the employee for doing the job
behaviour. It is the application of knowledge & gives people an awareness of rules &
procedure to guide their behaviour.
There are two types of trainning. They are:
1. On the job trainning

2. Of the job trainning
1. On the job trainning
The most important type of trainning is on the job trainning. The experience of
actually doing something makes a lasting impression and has a reality that other
types of trainning cannot provide. It means teaching skills, knowledge for the
employees so that they can perform well in the job within the work place and
environment.
2. Off the job trainning
Off the job trainning method wherein the workers/employees learn their job roles
away from the actual work floor. Simply off the job trainning comprises of a place
specifically alloted for the trainning purpose that may be near to actual workplace
where the workers are required to learn the skills.
79
5.5 WAGES & COMPENSATION
Wage and salary administartion refers to the established and implementation of sound
policies and practice of employees compensation.
Wages are the economic compensation paid to the workers for the services delivered by
them. It can be divided into two types;
1. Piece wage system

2. Time wage system
Shree Khodiyar ginning & pressing industry use time wage system. Salaries are paid
on monthly basis and its amount is paid by the company according to working
efficient of the employee
80
5.6 EMPLOYEES WELFARE
Now a days most of the firm provide the provident fund scheme or other facilities to their
workers. It is important as it is one kind of security of a workers.
Shree Khodiyar ginning & pressing industry provides various facilities like:
 BONUS
10% Extra bonus is paid to the workers
 STATUTORY WELFARE MEASURES
Under this the company provides first aid facility, cold water facility, sometimes
distributes sweets and other eatables on the festival like Dusherra and Diwali etc.
 LOAN FACILITY
Loan is provided to the employees whenever they are in need they do not have to
charge any type of interest on the loan.
81
6. PROJECT SUMMARY
A Bale has an essential role from the farm to the industry. The cotton yield is calculated in
terms of the number of bales. So we are summarizing our product. It helps in a standard
pacakaging method to avoid various hassels in handling, packaging and transportation. It will
also protect the lint from foreign contamination and make them readily identifiable. Thus, it
will help our customers and make their lifestyle more easy.
I have mentioned all the details abount cotton bales from idea genration to selling of bales
marketing, human resource, genral information finance all the details are mentioned in this
product project report.
82
7. PROJECT ADVANCEMENT & FUTURE PROSPECTUS
 FUTURE PLAN
In this global and modern age to make continuous progress in the future, a company
has to make future plan continuously and constantly.
Presently we are not exporting the bales but we hope to export them in various
countries and we think to make different kilograms of bales. This is our future plan.
 EXPANSION PLAN
At present we have one branch of cotton bales at wankaner. We think to expand our
business and to set up new plan and also innovate it.
83
8. CONCLUSION
Thus, from the product project report we can get details regarding growth in genral
information its management, production, human resource, financial plan its performance and
its various problem. It is not only the meeting local requirement but also emerging to be an
earning oppurtunities. So we can say that the unit plays a vital role as a part of industry and
society too.
84
9. REFRENCES
SR. BOOKS AUTHOR PUBLICATION YEAR

NO.
1. Modern Business S.A. Sherlekar Himalaya 2007
Organisation V.S. Sherlekar Publication House
&Management
2. Marketing Management T.N.Chabra Sun India 2018

Ankur Chharra
3. Human Resource Stephen P. Wiley 2015
Management Robbins
Sushan L.
Verhulst
4. Financial Management Prasanna M.C. Graw 2017
Chandra Hill Education
85

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M.V.M . College of Commerce Mgt. and I.T.

INTRODUCTION – PROJECT AT GLANCE

1.1 INTRODUCTION –PRODUCT AT GLANCE

B. TECHNICAL AND MANAGERIAL EXPERIENCE TO HANDLE

F. LABOUR REQUIREMENT WITH SPECIFIC SKILLS

1.2 NAME OF THE UNIT

Shree Khodiyar Ginning and Pressing Factory.

1.3 NAME OF THE UNIT

1. Name of the unit SHREE KHODIYAR

1.4 LOCATION AND SITE PREFERENCE

Factors affecting location

 Irregular or less availability of water supply.

Details of the location

1.5 PROMOTER’S BACKGROUND

1. Name of the promoter Panjwani Alina M.

1.7 GOVERNMENT PROCEDURE FOR REGISTRATION

STEP:1 PROVISIONAL SSI REGISTRATION

STEP:2 START THE BUSINESS

STEP:3 APPLY FOR PERMANENT SSI REGISTRATION

2.1 INTODUCTION TO PRODUCTION DEPARTMENT

2.2 MACHINERY USED

SR NAME OF THE NAME OF THE QUOTATION

1) Hot Box Machine:~

2) Super cleaner Machine:~

2.3 RAW MATERIALS

SR Source of Raw Material Name of the Quotation

2.4 PRODUCTION PROCESS

2.5 PLANT LAYOUT

1. Determination of region where the plan is located.

Plant Layout of “KGP Ltd.”.

Production Unit Warehouse

Quality Department &

2.6 PRODUCTION CAPACITY

Year Capacity Unit

3.1 INTRODUCTION TO MARKETING DEPARTMENT

Marketing Management represent the marketing concept in action “ The process of

3.2 MARKET PLANNING

3.3 PRODUCT STRATEGIES

 PACKAGING AND LABELLING

3.4 PRICING STRATEGIES

3.5. DISTRIBUTION STRATEGIES

 ROLE & PROFIT MARGINE OF MIDDLEMAN:

3.6 PROMOTION STRATEGIES

A. ESTIMATED PRODUCTION AND SALES (IN UNITS):

YEAR OPENING STOCK PRODUCTION SALES (80%) CLOSING

(B) STOCK OF RAW MATERIALS (IN UNITS):

PARTICULARS YEAR – 1 YEAR – 2 YEAR – 3

Less: Consumption 5,00,000 7,50,000 10,00,000

(C) TOTAL FIXED ASSETS:

PARTICULARS AMOUNT RS.

(C – 2) PLANT AND MACHINERY:

NAME OF MACHINERY AMOUNT RS.

(C – 3) FURNITURE AND ELECTRIC APPLIANCE:

PARTICULARS Qty. Rate per unit Amt.

(C – 4) COMPUTERS AND PERIPHERALS:

PARTICULARS QTY. RATE PER UNIT AMT.

PARTICULARS QTY. RATE PER UNIT AMT.

TOTAL FIXED ASSETS:

PARTICULARS AMT. RS.

PARTICULARS AMT. RS.

(D) TOTAL WORKING CAPITAL

(D – 1) RAW MATERIALS (MONTHLY):