small scale industries

Sarva Vidyalaya Kelvani Mandal (Kadi), Sanchalit

B P COLLEGE OF BUSINESS ADMINISTRATIONA constituent College of KADI SARVA VISHWAVIDYALAYA, GANDHINAGAR

CERTIFICATE

This is to certify that the following TYBBA students Of

B P College of Business Administration, Gandhinagar,

Have submitted their Capstone Project Report on

“THE STATUS OF SSIs IN THE STATE OF GUJARAT

WITH SPECIAL REFERENCE TO GOVERNANCE”

For the academic year 2009-10 in partial fulfillment of the

Requirements for the paper “Capstone Projects”

Of the Third Year of B. B. A. Programme affiliated to the

Kadi Sarva Vishwavidyalaya.

Sr no. Names of the Students

Roll No

1. Anjali Singh 86

2. Parekh Riddhi 23

3. Mewada Ankit 18

4. Nayak Snehalata 21

5. Patel Payal 41

6. Parmar Chetan 24

7. Chadva Mahipa 10

8. Desai Mehul 13

9. Marchant Monika 17

Prof. Ramakanta Prusty

(Faculty & Coordinator)

Page | 1 BPCBA/CP/TY/2009-10

EXECUTIVE SUMMARY

The main objectives for conducting the Capstone Project are considered as under.

To harness the theoretical knowledge with the practical knowledge of all the fields of the Management such as Marketing, Production, Finance, Human Resource and Accounting.

To understand the work process of the various industrial activities.

To know the contribution of the owner, managerial staff and the most significant workers- without whom the no work can be done and the unit cannot achieve its goals.

To develop a logical process of understanding for carrying out similar activities in future.

This practical study has vehemently exposed us to the various types of the policies of the company related to the employees as a part of the HRM, different strategies for the Marketing, various processes of the Production Department etc. Since the focus of the study was the “Small Scale Industries”, it gave enormous understanding about the SSI sector of India in general and Gujarat in particular. The visits to 200 small scale enterprises all across the state of Gujarat helped us make the study extensive. We have covered all the possible areas of SSI that a management student is interested in. The questionnaire was designed to meet the objectives set for the study and it catered to the need quite extensively. The observations, analysis and conclusions of the study have been interesting and fulfilling.

Page | 2 BPCABA/CP/TY/2009-10

ACKNOWLEDGEMENT

Practical knowledge is the only way by which one can see the real corporate world. Everyday; we see and hear about the different functions of the various companies, but the real functions are identified by studying them practically. We are very thankful to all those persons who have given us the great opportunity.

First of all, we would like to thank my college B P College of Business Administration, sector-23, Gandhinagar, which gives us the chance to study this practical subject.

Secondly, we very thankful to our professor in charge/guide Prof. Ramakanta Prusty for helping in the grand project, conforming meeting with the company officials, for giving their valuable time and for guiding us on the report preparation.

We also very thankful to the various small scale industrialist and staff of the SSI for giving every required information related to the enterprise and spend a very good amount of the time from their busy schedule.


TABLE OF CONTENT PARTICULARS PAGE NO.

CERTIFICATE 1

EXECUTIVE SUMMARY 2

ACKNOWLEDGEMENT 3

CHAPTER 1: INTRODUCTION 5

1.1 Definition of Small Scale Industries 5 1.2 Background 7 1.3 Small Industry Development Organisation 12 1.4 Role of SSI in Indian Economy 16 1.5 Research Methodology 17 1.6 The Case for Small Scale Industries 18 1.7 SSIs Mission Statement 22 1.8 SSI Policies 23 1.9 SSI Schemes 26 1.10 SSI Scenario in Gujarat 28

CHAPTER 2: DIFFICULTY FACED BY THE ENTERPRISE 36

CHAPTER 3: USE OF INFORMATION TECHNOLOGY 38

CHAPTER 4: FINANCIAL STRUCTURE 40

CHAPTER 5: ACCOUNTABILITY AND TRANSPARENCY 43

CHAPTER 6: ANALYSIS 48

CHAPTER 7: CONCLUSION 102

BIBLIOGRAPHY 108


CHAPTER: 1 INTRODUCTION1.1 DEFINITION OF SMALL SCALE INDUSTRIES

A significant feature of the Indian economy since independence is the rapid growth

of the SSI in the industries policy resolution of 1948 &1956; the SSI was given special

role for creating additional employment with low capital investment. A new trust was given

in favor of small units by the industrial policy statement of 1977. In 1950, the government

group SSI undertaking into two categories

{1} those using power but employing less than 50 people

{2} those not using power but employing less than 100 people.

In 1966 the SSI were defined as undertaking with a fixed capital of less than 7.5 lakh

and ancillaries with a fixed capital of Rs.10lakhs. Investment will imply investment in fixed

asset, whether held in ownership or by lease or by hire purchase .1n 1975 this limit was

revised to Rs.10 lakh for SSI and Rs.20lakhs for ancillaries .under the industrial policy of

1980, the limit was further revised to Rs.20lakhs in case of SSI and Rs25 lakh in case of

ancillaries units .in the case of tiny units the limit of investment has been raised from

Rs.1lakhs to Rs.2lakh. In March 1985 the government has again revised the statement

limit of SSI to Rs.35lakh and for ancillaries units to Rs.45lakhs. As per the industrial policy

statement of May 1990 ,the investment ceiling in assets for SSI has been raised from

rs35lakhs to Rs.60lakhs and corresponding for ancillary units from Rs.45lakhs to

Rs.75lakhs .investment ceiling with respects to tiny units has been increased from

Rs.2lakhs to Rs.5 lakh .during 1997 on the recommendation of ABID HUSSIAN

COMMITTEE ,the government has raised the investment limit on asset for SSI and

ancillaries from Rs.60/75 lakh to Rs.3crores and that tiny units from Rs5 lakh to

Rs.25lakhs. The government in 2000 has reduced the investment limit sets from

Rs.3crores to 1 corer, but the limit for investment in the tiny units has been retained to


Rs.25lakhs. Until now the government had defined SSI within the small scale, it provide a

definition of tiny enterprise. However ,from the SSI ,there are direct shift to large scale

units and no definition was provided for medium scale industries .with effect from

oct,2,2006,not only three categories has been clearly defined ,but a comprehensive act ,

called the Micro ,small and medium enterprise development act ,2006 came into force.

The act is claimed at facilitating the growth of SSI so that they graduate to medium

enterprise, thus improving their competitive strength.

1.2 BACKGROUND


1.2.1 The small scale industries (SSI) constitute an important segment of the

Indian economy in terms of their contribution to the country’s industrial

production, exports, employment and creation of an entrepreneurial base. The

Government established the Ministry of Small Scale Industries and Agro and

Rural Industries (SSI & ARI) in October, 1999 as the nodal Ministry for

formulation of policies and Central sector programmes/schemes, their

implementation and related co-ordination, to supplement the efforts of the

States for\ promotion and development of these industries in India. The Ministry

of SSI & ARI was bifurcated into two separate Ministries, namely, Ministry of

Small Scale Industries and Ministry of Agro and Rural Industries in September,

2001.

The role of the Ministry of Small Scale Industries is thus to mainly assist the

States in their efforts to promote growth and development of the SSI, enhance

their competitiveness in an increasingly market-led economy and generating

additional employment opportunities. In addition, the Ministry attempts to

address issues of country-wide common concerns of this segment and also

undertake advocacy on behalf of the SSI for this purpose. The specific

schemes/programmes undertaken by the organisations of the Ministry seek to

facilitate/ provide one or more of the following:

adequate credit from financial institutions/ banks

funds for technology up gradation and

modernization

integrated infrastructural facilities;


modern testing facilities and quality certification

laboratories;

access to modern management practices and

skill up gradation through appropriate training

facilities;

assistance for better access to domestic and

export markets; and

Cluster-wide measures to promote capacity-

building and empowerment of the units and their

collectives, in addition to all or some of the

above-mentioned supports.

1.2.2 ORGANISATIONS OF THE MINISTRY

The formulation and implementation of the policies and programmes/projects/

schemes is undertaken by the Ministry with the assistance of its attached office

and public sector enterprise, namely, the Small Industry Development

Organization (SIDO) and the National Small Industries Corporation Ltd (NSIC).

Recently, the Government has also set up the National Commission on

Enterprises in the Unorganized Sector (NCEUS) to suggest policies and

programmes for addressing the wide range of issues affecting the productive

potential of the large segment of unorganized micro and small productive units.

1.2.3 SMALL INDUSTRY DEVELOPMENT ORGANISATION (SIDO)


The Office of the Development Commissioner (Small Scale Industries) [DC

(SSI)] is also known as the Small Industry Development Organisation (SIDO).

Established in 1954, it is the apex body for assisting the Government in

formulating and overseeing the implementation of its policies and

programmes/projects/schemes. The SIDO is headed by the Additional

Secretary & Development Commissioner (SSI).

SIDO provides a comprehensive range of common facilities, technology

support services, marketing assistance, entrepreneurial development support,

etc., through its network of 30 Small Industries Service Institutes (SISIs), 28

Branch SISIs, 4 Regional Testing Centers (RTCs), 7 Field Testing Stations

(FTSs), 2 Small Entrepreneur Promotion and Training Institutes (SEPTIs) and 1

Hand Tool Design Development and Training Centre. The SIDO also has a

network of Tool Rooms and Process-cum-Product Development Centers

(PPDCs) to provide technology and training support. These institutions are run

as autonomous bodies, registered as societies under the Societies Act.

Over the last 51 years, the SIDO has served a very useful purpose as a

catalyst of growth of the SSI through its vast network of field organisations

spread all over the country.

1.2.4 NATIONAL SMALL INDUSTRIES CORPORATION LTD. (NSIC)

The National Small Industries Corporation Ltd. was established by the

Government in 1955 as a public sector company, with a view to promoting,

aiding and fostering the growth of SSI in the country, with focus on commercial

aspects of their operation. NSIC implements several schemes to help the SSI in

the areas of raw material procurement, product marketing, credit rating,

acquisition of technologies, adoption of improved management practices, etc.,


through its 8 Regional Offices, 17 Branch Offices, 5 National Technical

Services Centres,2 Off-shore Offices, 2 Software Technology Parks and 3

Technical Services Extension Centers, spread practically all over the country.

The Corporation, an ISO: 9001-2000 Company has also set up a number of

turnkey projects in many developing countries.


1.2.5 SMALL SCALE INDUSTRIES BOARD

The range of developmental and advocacy work undertaken by the Ministry

involves active participation of and consultations with several

Departments/Ministries and organisations of the Central/State Governments as

well as the associations of the SSI. To facilitate consultation, coordination and

inter institutional linkages, the Small Scale Industries Board has been

constituted. It is an apex advisory body to render advice to the Government on

all issues pertaining to the SSI.

The Minister–in-charge of the Ministry is the Chairman of this Board which

includes, among others, Industry Ministers of States,\some Members of

Parliament, Secretaries of various Departments of the Government of India,

representatives of financial institutions and public sector undertakings in the

field and of important associations of SSI at the national, State and other levels.

1.3 SMALL INDUSTRY DEVELOPMENT


ORGANISATION (SIDO)

1.3.1 ROLE AND FUNCTIONS

The Office of the Development Commissioner (Small Scale Industries) headed

by the Development Commissioner, is an apex body for assisting the

Government in formulating, coordinating, implementing and monitoring policies

and programmes for promotion and development of the SSI in the country. It

provides a comprehensive range of facilities and services to the SSI through a

network of 30 Small Industries Service Institutes (SISIs), 28 Branch SISIs, 4

Regional Testing Centers (RTCs), 7 Field Testing

Stations (FTSs), 1 Hand Tool Design Development and Training Centre and 2

Small Entrepreneur Promotion and Training Institutes (SEPTIs).

With a view to facilitating transfer of technology for technological up gradation

of the SSI, Technology Resource Centers (TRC) have been set up in all the 30

SISIs. These Centers identify appropriate technologies and work with the SSI to

assist them in acquiring them. With increasing emphasis on cluster based

1.3.2 SMALL INDUSTRY DEVELOPMENT

ORGANISATION (SIDO)

Development of the SSI, the TRCs have started concentrating on clusters of

small industries for delivery of appropriate technology related services.

Besides, there are 18 autonomous bodies operating with the SIDO, which offer

to the SSI an array of services in product

Design, tooling, research and human resource development, marketing, etc.

These autonomous institutions include 10 Tool Rooms located at Hyderabad,


Bhubaneswar, Kolkata, Jamshedpur, Aurangabad, Indore, Ahmadabad,

Ludhiana, Jalandhar and Guwahati; two Central Footwear Training Institutes at

Agra and Chennai; two Product-cum-Process Development Centers at Agra

and Meerut; one Fragrance & Flavors Development Centre at Kanauji, one

Centre for Development of Glass Industry at Firozabad, one Institute for Design

of Electrical Measuring Instruments at Mumbai and one Electronic Service and

Training Centre at Ramnagar.

1.3.3 The major activities of SIDO include the following:

Advising the Government in formulation of policies and

programmes/projects/schemes for the promotion and development of

the SSI.

Providing techno-economic and managerial consultancy, common

facility and extension services to the SSI.

Providing support for technology up gradation, modernization, quality

improvement and infrastructure facilities.

Assisting the SSI in human resource development through training and

skill up gradation.

Providing economic information services to the SSI.

Maintaining a close liaison with the Central Ministries, Planning

Commission, State Governments, Financial Institutions and other

organisations concerned with the development of the SSI.

Evolving, implementing and coordinating policies and programmes for

development of the SSI as ancillaries to large and medium industries.

Providing testing and calibration services to the SSI.

Implementing / monitoring the flagship schemes of:

Credit Guarantee Fund

Credit Linked Capital Subsidy for Technology Up gradation

Small Industries Cluster Development Programme


An amount of Rs. 360.69 crore has been allocated to SIDO for the

implementation of the Plan Schemes during the financial year 2005-06.

1.3.4 PACKAGE FOR PROMOTION OF MICRO AND

SMALL ENTERPRISES

In keeping with another declaration in the NCMP, a promotional package for the

MSE was drafted by the Ministry during the year. Inter-Ministerial consultations

were held with seventeen Ministries/Departments/Commissions/Councils on the

draft Promotional Package. However, on the advice of the Planning

Commission and the\ Department of Expenditure to first seek appraisal of the

proposal by the Expenditure Finance Committee (EFC), an EFC Memorandum

was circulated. Attempts are underway to resolve the large areas of difference

of opinion of the Ministries/Departments on the elements of the proposed

package before its consideration by the EFC and then the Government.

1.3.5 FISCAL CONCESSIONS TO THE SSI SECTOR


GENERAL SSI EXEMPTION SCHEME

Consequent on the announcement of a Comprehensive Policy Package for SSI

Sector by the Prime Minister on 30th August 2000, full excise exemption up to

the first clearance of Rs. 1 crore per annum was provided to the SSI sector with

effect from 1st September 2000. Under the General Excise Exemption Scheme,

units having annual turnover of less than Rs. 3 crore were eligible for the excise

exemption.

1.4 ROLE OF SSI IN INDIAN ECONOMY


The SSI sector which plays a pivotal role in the Indian economy in terms of

employment and growth has recorded a high growth since independence in spit of stiff

competition from the large sector not so encouraging support from the government. this is

evidence of by the number of register units which went up from 16000 in 1950 to 36000

units in 1961 .during the last decade alone ,the SSI has progressed from the simple

consumer goods to the manufactures of many sophisticated and precision product like

electronics control system, micro wave components ,electro medical equipment .TV sets

etc

The government has been following a policy of reservation of items for exclusive

development in the SSI. At the time of 1972 census of SSI, there are 177 items in the

reserved lists .by 1983; the reserved lists include 837 items for exclusive production in

SSI. These units produced over 8000 commodities

Census 2001-2002 reported that 97.2% of the registered SSI units were proprietor,

only 1.3% were partnership and 0.5% were private .and just 0.1% were co-operative.

1.5 RESEARCH METHODOLOGY


Objectives of the Project :

To study about the SSI sector in Gujarat

To study the present scenario of SSI and also to

know problems & future of SSI in Gujarat

To study the market of SSI

To determine the factors affecting the SSI

To study and analyze the reach of SSIs network

Sample Size : 200

Sampling Method : Random Sampling Method

Primary Data Sources : Questionnaire

Interviews

Focus Group

Secondary Data Sources : Internet

Magazines & News Papers

Books

Location for Survey : Gandhinagar

Ahmadabad

Ankleshwar

1.6 THE CASE FOR SMALL SCALE INDUSTRIES


Small scale industries have been the subject of controversy in the past and the

controversy continues even to this days. Some are ardent supporters of small enterprises,

while others vehemently oppose them. It would be worthwhile to examine the arguments

favoring the growth of small enterprises. All these arguments have been briefly

summarized in the Industrial Policy Resolution of 1956 which states:

The employment argument

The equality argument

The latent resources argument

The decentralization argument

1.6.1 The employment argument

Emphasizing the employment argument Karve Committee 1955 stated: “The

principle of self employment is at least as important to a successful democracy as that of

self-government.” The argument is based on the assumption that small enterprises are

labor intensive and thus create more employment per unit of capital employed. It is also

assumed that the low cost on overheads in such enterprises partly compensates for the

otherwise high cost vis-à-vis large enterprises. Thus it is argued that, let alone capital

goods industries and the building up of social and economic infrastructure where capital

intensive projects are a necessity, in other spheres of production in a developing

economy, small enterprises which help to enlarge the volume of employment with scarce

capital should be encouraged.

This argument was opposed by Dhar and Lydall who hold that employment should not

be created for the sake of employment. There should be an economic justification for it

also. Dhar and

Lydall argue, “Employment as such can be created by simply adding on extra workers

at any point one likes in the productive process. The important problem, in other words, is

not how to absorb surplus resources, but how to make the best use of scarce resources.”


Thus the employment argument is really an “output –argument.” It implies that small

enterprises maximize output from scarce capital and entrepreneurship. Employment

creation follows as a necessary corollary. Dhar and Lydall on the basis of their enquiry

found that whereas in large enterprises working two or three shifts is quite common, it is

not so in the case of small enterprises. Thus, though per unit of output, but “in general,

the most capital intensive type of manufacturing establishments is the small factory using

modern machinery and employing up to 50 workers.”

Mr. Venkataraman challage the argument Dhar and Lydall table reveals that while the

output employment ration is the lowest in the SSI, employment generating capacity of SSI

is 8th times that of the large scale sector. But what is still more striking and significant is

that the net output capital ratio of small and medium sector work out to 4 and 3.2 times

that of the large scale sector in 1965, despite the low productivity of labor in the SSI. In

1974-75, the net capital output ratio of large enterprise works out to be three times that of

SSI.

1.6.2 The equality argument

It suggests that the income generated in the large number of SSI is dispersed more

widely in the community than income generated in few large industries. In this way small

enterprises about greater equality of income distribution. It is also held by some that as

most of the SSI are proprietary or partnership concern, the relation between the workers

and the employees are more harmonious in SSI than large industries.

Dhar and Lydall consider this argument as fallacious, statistical evidence suggest

“there is a common tendency in all countries, for the average wage to be lower in small

factories than in large factories.” Moreover the virtual non existence of trade unions in SSI

enables the employers to exploit the workers to be maximum. Thus, it is true that workers


in SSI are neither economically better off than in large enterprises, nor do they obtain

more benefits under social security schemes. SSI, therefore, by paying low wages,

generate less saving and less taxes and hence result in lower growth potential.

There is no doubt that the argument of Dhar and Lydall does have some force. But on the

contrary, it is also true that in underdeveloped countries the workers have a choice

between a low paid job in SSI and no job at all. So the low paid job is accepted by the

force of circumstances. But in the absence of SSI, the workers have to loss even the

small wages which they hope to get. Moreover by more effective implementation of the

factory law, the difference between average wage of workers in SSI and large industry

can be narrowed down. Statistically evidence suggest that where as SSI in India pay on

the average only about 50% of the wages earn by workers in large enterprises.

1.6.3 The latent resource argument

These arguments suggest that SSI is able to tap latent resource like hoarded wealth,

entrepreneurial ability, etc. Dhar and Lydall feel that mobilization of hoarded wealth is

only a once for all gain. True, it is so, but is it not a fact that the idle hoards set in motion

and income stream which moves on and on? To the extent SSI encourage dishoarding,

there is definite gain to the community. Secondly, SSI encourages the growth of a class of

small entrepreneur which introduce a dynamic element in the economy. The growth of the

entrepreneur class requires an environment. SSI provides that environment which

encourages a growing network feeder and complementary relation among plants and

firms. It is in this environment that latent talent of individual entrepreneur fined self

expression in localized innovation and cost savings measures.

The growth of a very large number of SSI in the post independence period only highlights

the facts that given the basic condition such as supply of power and credit facilities, the

latent resources of entrepreneurship can be tapped by the growth of SSI.


1.6.4 The decentralization argument

This argument impress is the necessity of regional dispersal of industries. Large

enterprises are mostly concentrated in metropolitan cities. The smaller towns and the

country side in order to benefit from modern industrialism must encourage SSI.

Industrialization of the country became complete only if it penetrates into the remote

corners of the countries. It may be true that it may not be possible to start the SSI in every

village, but it is quite possible to select a group of villages and start SSI to cater to the

needs of the small area from the local center.

SSI needs to be developed along with large industry. This is also accepted policy of

the government. No doubt the employment argument has a substantial weight in it, but it

would be suicidal to encourage in efficient in SSI in the long run. From a long period point

of view, the capacity of small manufactures to become technically progressive and

efficient and developed competitive strength shall be the only justification for that

continuance. In the intervening period, it would be fair to protect them, and the

government should help to create conditions which facilitate there growth.

1.7 SSI's MISSION STATEMENT


Early on, SSI set forth objectives to guide its core business strategy. These include:

Developing innovative alternative strategies which can exceed clients'

objectives in any market environment over the long term;

Establishing a deeply resourced organization that anticipates and adapts to

change; planning for future success by motivating employees and promoting

long-term commitment to SSI; and

Creating a legacy that underscores our commitment to client service and long-

term relationships.

These objectives continue to remain the foundation of SSI philosophy.

1.8 SSI POLICIES


The government its policies towards the to SSI on 6th Aug, 1991 the main features were

The SSI has emerged as a dynamic and vibrant sector of the economy during the

eighties. At the end of the seventh plan period, it accounted for nearly 35% of the gross

value of output in the manufacturing sector and over 40% of the total export from the

country. It also provides employment opportunities to around 12million people.

The primary objective of the SSI policy during the nineties was to impart more

vitality and growth impetus to the sector to enable it to contribute its mite fully to the

economy, particularly in terms of growth of output, employment and exports.

1.8.1 Promotion of entrepreneurship

Government will continue to support first generation entrepreneur through training

and will support their efforts. Large number of EDP trainer and motivators will be trained

to significantly expand the EDP. Industrial association would also be encouraged to

participate in this venture effectively. Women entrepreneurs will receive support through

special training programs.

1.8.2 Government Policies and Schemes

EXIM Policy for Small Scale Sector

Export Promotion Programs & Measures


http://exim.indiamart.com/ssi-policies/export-promotion-programs.html

http://exim.indiamart.com/ssi-policies/exim-policy-ssi.html

National Small Industries Corporation

1.8.3 General

Policy of Reservation

Licensing Policy

Trade Policy - Imports & Exports

Price & Purchase Preference Policy

Labour Policies

Rehabilitation of Sick Units

1.8.3 Priority Sector

Policy for Tiny Sector, Cottage & Village Industries, Handicrafts, Khadi &

Handlooms

Development of Backward Areas

1.8.4 Funding & Finance

Policy of Fiscal Support

Policy of Priority Credit


http://exim.indiamart.com/ssi-policies/policy-priority-credit.html

http://exim.indiamart.com/ssi-policies/policy-fiscal-support.html

http://exim.indiamart.com/ssi-policies/development-backward.html

http://exim.indiamart.com/ssi-policies/policy-tiny-sector.html

http://exim.indiamart.com/ssi-policies/policy-tiny-sector.html

http://exim.indiamart.com/ssi-policies/rehabilitation-sick-units.html

http://exim.indiamart.com/ssi-policies/labour-policies.html

http://exim.indiamart.com/ssi-policies/price-purchase.html

http://exim.indiamart.com/ssi-policies/trade-policy.html

http://exim.indiamart.com/ssi-policies/licensing-policy.html

http://exim.indiamart.com/ssi-policies/policy-reservation.html

http://exim.indiamart.com/ssi-policies/national-small-industries.html

Equity Participation

OTC Exchange

1.8.5 Modernization & Training

Quality Certification Schemes (ISO9000)

Application for the Reimbursement of Certification Charges for acquiring

ISO-9000 Certification (or its equivalent)

Policy of Technology Up gradation (UPTECH)

Technology Bureau for Small Enterprises

Policy for Development of Information Technology

1.8.6 Energy & Environment

Pollution & Control Measures

Environmental Control

1.9 SSI SCHEMES

To meet the challenges of international competition and to promote exports of SSI

products, following promotional schemes are also being implemented.


http://exim.indiamart.com/ssi-policies/environmental-control.html

http://exim.indiamart.com/ssi-policies/ssi-pollution-control.html

http://exim.indiamart.com/ssi-policies/policy-developement-it.html

http://exim.indiamart.com/ssi-policies/technology-bureau.html

http://exim.indiamart.com/ssi-policies/integrated-tech-upgradation.html

http://exim.indiamart.com/ssi-policies/application-reimbursement.html

http://exim.indiamart.com/ssi-policies/application-reimbursement.html

http://exim.indiamart.com/ssi-policies/quality-certification.html

http://exim.indiamart.com/ssi-policies/otc-exchange.html

http://exim.indiamart.com/ssi-policies/equity-participation.html

Single Window Scheme

Industrial Estates

National Awards for Outstanding SSI Entrepreneurs

National Awards for Quality Products in Small Scale Sector

Prime Minister's Rozgar Yozna

Self Employment Scheme for Educated Unemployed

Assistance to SC/ST Entrepreneurs

Excise Exemption Scheme Tax Holiday

Venture Capital

National Equity Fund Scheme

Factoring Services

Other SIDBI Schemes

NSIC Schemes

Technology Development Fund Schemes

Testing Centre

Integrated Infrastructure Development

Training Infrastructure

Growth Centre

Technology Development & Modernization

Quality Certification Schemes

Modernization of Small Scale Industries

Ancillary Development


http://exim.indiamart.com/ssi-policies/ancillary-development.html

http://exim.indiamart.com/ssi-policies/modernisation-ssi.html

http://exim.indiamart.com/ssi-policies/quality-certification.html

http://exim.indiamart.com/ssi-policies/ssi-tech-development.html

http://exim.indiamart.com/ssi-policies/growth-centers.html

http://exim.indiamart.com/ssi-policies/training-infrastructure.html

http://exim.indiamart.com/ssi-policies/integrated-infrastructure.html

http://exim.indiamart.com/ssi-policies/testing-centers.html

http://exim.indiamart.com/ssi-policies/technology-development.html

http://exim.indiamart.com/ssi-policies/nsic-scheme.html

http://exim.indiamart.com/ssi-policies/sidbi-scheme.html

http://exim.indiamart.com/ssi-policies/factoring-services.html

http://exim.indiamart.com/ssi-policies/national-equity-fund.html

http://exim.indiamart.com/ssi-policies/venture-capital.html

http://exim.indiamart.com/ssi-policies/excise-exemption.html

http://exim.indiamart.com/ssi-policies/sc-st-enterprenure.html

http://exim.indiamart.com/ssi-policies/self-employment-scheme.html

http://exim.indiamart.com/ssi-policies/prime-minister-rozgar.html

http://exim.indiamart.com/ssi-policies/national-awards-quality.html

http://exim.indiamart.com/ssi-policies/national-awards-enter.html

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Small Entrepreneur Management Assistants Scheme

Entrepreneurship Development Programme

Management Training Programme

Skill Development Programme

Pollution Control Schemes

Energy Conservation Schemes

Alternative Energy Use Schemes

Ozone Depleting Substances Phase-out

1.10 SSI SCENARIO IN GUJARAT

Small Scale Industries have played an important role in industrial dispersal. District

Industries Centers in all the districts of the state, along with institutions such as Gujarat

Industrial Development Corporation (GIDC) and Gujarat State Financial Corporation

(GSFC) have provided boost to the development of SSIs. Ahmadabad district leads with

the highest number of SSI units at 64916, constituting 22% of the total SSIs in the state.

Surat follows with 46316 units (15%) and Rajkot 32030 units (11%). These three districts


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together account for 47% of the total number of SSI units in the State. The other districts

having more than 10000 SSI units are Valsad (18967), Vadodara (17990). Mahesana

(16637), Kheda (15385), Bharuch (14743), Jamnagar (13035) and Bhavnagar (11671) up

to December 2005. Other districts have also witnessed the development of small scale

industry. This can be seen in the following chart.

The SSI

sector has

developed

in different

industries.

The trend

is similar to

the overall

industrial

scenario in

the state.

Textiles

and textile

machinery

have

played a

major role.

Chemicals,

followed by

plastic

processing,

are also placed high. Engineering, paper and mineral based industries have also developed

in the SSI sector. The important industrial sectors within SSI are as under:


1.10.1 List of Industries in SSI

Sr. NO.

Type of Industries

1 Motor rewinding


2 Workshop for vehicle repairs

3 Engineering workshop, machine shop, fabrication shop, press shop

4 Pump and motor assembling units

5 Cycle assembling units

6 Units fabricating tractor trailer, agricultural equipment etc.

7 Units fabricating stove, cooker, kitchen equipment without

electroplating

8 Units fabricating nails, pegs, nuts, bolts etc.

9 Units manufacturing utensils of aluminum, steel, copper and brass

10 Casting units using pit furnace

11 Units fabricating iron doors and shutters

12 Units fabricating steel furniture without electroplating

13 Units manufacturing weighting machines

14 Units fabricating drawing, surveying and scientific equipment

15 Units making musical instruments

16 Units making sports gear

17 Units making toys

18 Units making stationery items like paper pins, "U" pins, pencils etc.

19 Units binding books, making file covers, card board boxes, envelopes,

paper bags from paper or board

20 Units making paper napkins, dishes, labels, tallow, paper rolls

21 Units making wooden doors and windows

22 Units making wooden furniture

23 Units making wooden boxes

24 Units assembling conditioners, air coolers, water coolers, heater,

electric irons, etc.

25 Units manufacturing electric fans, tube lights, bulbs, lamps, fuses,


switches, etc.

26 Units casting cement concrete spun pipes, mosaic tiles, cement

concrete poles

27 Units casting cement concrete grills

28 Units making umbrellas and rain coats

29 Units making garments by stitching from ready cloth

30 Units making hosiery items

31 Weaving units with handlooms and power looms

32 Yarn twisting, crimping and text rising units

33 Fiber glass molding units

34 Units manufacturing plastics items like buckets, tumblers, footwear,

brushes, ropes

35 Units producing plastics items through fabrication, extraction, injection

molding methods

36 Units manufacturing tubes, pipes, boxes, tanks, etc. from plastics

HDPE, LDPE, PVC

37 Units making leather items like bags, purses, wallets etc. from ready

leather

38 Units making tooth powders, tooth pastes, shampoos, nail polishes,

hair oils through mixing only

39 Units making candles

40 Units making agarbattis

41 Units making detergent powders, soaps etc. through mixing only

42 Cold storages

43 Domestic flour mills

44 Units grinding corianders, Cummins, turmeric’s, salts, spices

45 Tobacco drying sheds


46 Saw mills

47 Printing presses

48 Pulse mills

49 Oil expellers

50 Ice factories

51 Poultry farms

52 Units manufacturing glass frames for spectacles

53 Diamond industries

54 Induction furnaces

55 Units manufacturing tablets and capsules by mixing only

56 Units manufacturing biscuits unto 100 kg per day only

57 Units manufacturing pickles/pappads upto 500 kg per day only

58 Assembling units for TV, VCR,VCP, radio sets, tape recorders etc.

59 Units manufacturing rubber parts, rubber crocks, surgical gloves

60 Units retreading tyres

61 Units involved in cutting, polishing and finishing of stones, marbles and

granites

62 Units involved in finishing of printed cloth by felt finish or rolls process,

sentering

63 Cotton ginning and pressing units

64 Steel rerolling mills where M S bars, angles, CTD round bars,

rectangle bars, section bars etc. are prepared without pickling process

65 Tyre and rubber industries

66 Oxygen gas units

67 Jaggery(Gur) (from sugarcane) producing units

68 Tobacco gutka manufacturing units

69 Ceramic cup saucers making units


70 Glazed tiles producing units (provided water is recycled)

71 Units manufacturing ceramic sanitary ware

72 Units producing white coal/biocoal from agriculture waste

73 Units producing bioferlizers only from agriculture waste mix

74 Units producing cattle fodder by mixing

75 Units producing acetylene gas

76 Salt pans by solar evaporation

77 Ceramic units using LDO/HSD/RFO fuels at 1000 liters/day(but not

using coal/ lignite/ hard coke /husk) with a condition to install a

chimney of minimum 11 meters height

78 Computer software units

79 Perfumes (Attar) manufacturing units by mixing process

80 Units producing Limestone masonry

81 Units manufacturing domestic flour mill

82 Units manufacturing Mamara

83 Computer & Computer stationery

84 Gems & Jewelry units

85 Units manufacturing plastic bags

86 Manually preparing silver & golden ornaments

87 Units making printing blocks

88 Units making furniture from bamboo

89 Units assembling domestic electrical appliances

90 Units fabricating aluminum doors, windows & furniture

91 Tailor machine repair or its manufacturing units

92 Ball pen refill

93 Button & hooks manufacturing units

94 Bicycle chain & locks manufacturing units


95 Embroidery

96 Photo frame, Mirror frame

97 Flower pot, Flower vase

98 Units fabricating fork-knife, scissors

99 Unit installing 50 KVA DG set

1.10.2 Cluster

The SSIs in Gujarat have had impressive development in clusters. There are, in all,

over 83 industrial clusters covering different types of industries and developed at

different geographical locations. This kind of development has helped in creating

common facilities, developing market centers and brand name, development of skill

and, thereby, improving cost competitiveness. Some of the important clusters in

Gujarat are Oil Engine in Rajkot, Brass Parts in Jamnagar, Ceramic in Morbi,

Thangadh and Vankaner, Ship breaking in Alang, Re-rolling mills in Bhavnagar, Dyes

in Ahmedabad, Baroda and Vapi, Pharmaceuticals in Ahmedabad and Baroda,

Plastic processing in Ahmedabad and Baroda. The details of clusters in Gujarat are

as under:


The State Government has taken initiatives to provide support for further strengthening of

these clusters through interventions such as technology up-gradation, quality

improvement, setting up of common facility centers, skill development facilities, etc. with

assistance from R&D institutions, as well as industry associations.


Type of Cluster Location

Common Salt Anjar, Gandhidham, Dasada

Tobacco Processing Anand

Cotton Ginning Manavadar

Textiles Ahmadabad, Dholka, Surat

Textiles-Printing Jetpur

Textiles-Khadi Wadhvan

Textiles-Finishing Bhuj

Textiles-Synthetic Surat , Mangrol

Jari-Printing Surat

Readymade Garments Ahmadabad

Wood based Nadiad

Fabrication Ahmadabad, Baroda

Utensils Ahmadabad

Oil Engines Rajkot

Textile Stores Ahmadabad, Surat , Wadhvan

Power driven Pumps Ahmadabad, Mehsana

Machine Tools Rajkot

Diamond Processing Ahmadabad, Surat

Books Publishing Ahmadabad

Data Processing Ahmadabad, Surat

CHAPTER: 2

DIFFICULTY FACED BY THE ENTERPRISE

SSI includes industrial undertakings in which investments in Fixed Assets in Plant

& Machinery excluding Land & Buildings whether held under ownership, lease or hire

purchase does not exceed 1 crore. Most of them act as ancillary to Big Business Houses.

Some are tiny industries where Fixed Assets including Plant & Machinery is worth only 25

lakh or below and yet another group concentrates on exports.

As entrepreneurs increased their problems as to production, marketing,

infrastructure and Financing, also increased. Many people vaguely quoted it as

managerial problems. Going into the details we see that:

The production problems include raw material availability, capacity

utilization, and storage problems.

The marketing problems arises because of dealing in only one product, cut

throat competition, adopting cost oriented method of pricing, lack of

advertisement, not branding their products etc.,


The financial problems include investment risks, procurement of loan from

banks and their repayment, meeting day to day expenses and the like

The labour problems include highly demanding employees, absenteeism

lack of skilled workers and transportation of workers.

Infrastructure problems also add coal to the fire. Unless and until you have

the infrastructure in its place the rest of the efforts are futile.

Personal problems like spending less time with family and for the whole sweat exerted the

rewards have not been favorable


CHAPTER: 3

USE OF INFORMATION TECHNOLOGY

The country has well-developed infrastructure of scientific establishments. Future

development of industries in India must be based on indigenous technology as far as

possible. Full scope will be given to the development of indigenous technology. It is also

essential that development of indigenous technology is responsive to the objective of

efficient production in increasing quantities of goods that society urgently needs. Science

and technology must contribute to the improvement in the living standards and the quality

of life of the large mass of our people.

In order to promote technological self-reliance, the Government recognizes the necessity

for continued inflow of technology in sophisticated and high priority areas where Indian

skills and technology are not adequately developed. In such areas, the Government’s

preference would be for outright purchase of the best available technology and then

adapting such technology to the country’s needs. Indian firms which are permitted to

import foreign technology would be required in appropriate cases to set up adequate

Research and Development facilities so that imported technology is properly adapted and

assimilated. The Government will also set up a national registry of foreign collaboration in

the Secretariat of the Foreign Investment Board so that there is continuous monitoring of

these efforts.

There is a great need for promoting an industrial environment where the acquisition of

technological capability receives priority. In the fast changing world of technology the

relationship between the suppliers and users of technology must be a continuous one.

Such a relationship becomes difficult to achieve when the approval process includes

unnecessary governmental interference on a case to case basis involving endemic delays


and fostering uncertainty. The Indian entrepreneur has now come of age so that he no

longer needs such bureaucratic clearance of his commercial technology relationships with

foreign technology suppliers. Indian industry can scarcely be competitive with the rest of

the world if it is to operate within such a regulatory environment.

With a view to injecting the desired level of technological dynamism in Indian

industry, Government will provide automatic approval for technology agreements related

to high priority industries within specified parameters. Similar facilities will be available for

other industries as well if such agreements do not require the expenditure of free foreign

exchange. Indian companies will be free to negotiate the terms of technology transfer with

their foreign counterparts according to their own commercial judgment. The predictability

and independence of action that this measure is providing to Indian industry will induce

them to develop indigenous competence for the efficient absorption of foreign technology.

Greater competitive pressure will also induce our industry to invest much more in

research and development then they have been doing in the past. In order to help this

process, the hiring of foreign technicians and foreign testing of indigenously developed

technologies, will also not require prior clearance as prescribed so far, individually or as

part of industrial or investment approvals.


CHAPTER: 4

FINANCIAL STRUCTURE

In order to provide effective financial support for promotion of small village and cottage

industries, the Industrial Development Bank of India has taken steps to set up a separate

wing to deal exclusively with the credit requirements of this sector. It will coordinate, guide

and monitor the entire range of credit facilities offered by other institutions for the small

and cottage sector, for which separate wings will be set up in these institutions particularly

nationalized banks. Banks will also be expected to earmark a specified proportion of their

total advances for promotion of small, village and cottage industries. It is the policy of

Government to see that no worthwhile scheme of small or village industry is given up for

wants of credit.

The growth of the scale and cottage industries sectors has been tardy mainly for want of

satisfactory marketing arrangements for their products. The marketing of goods of these

sectors with its concomitant of product standardization, quality control, maximum support

for these activities on a priority basis. Measures such as purchase preference and

reservation for exclusive purchase by Government Departments and Public Sector

Undertakings will also be used to support the marketing of these products.

One of the major constraints to the growth of decentralized sector has been the difficulties

of finance experienced particularly by industrial entrepreneurs in small, cottage and rural

sector. Although, there is adequate network of institutional finance, yet here is need for

coordinating the flow of capital, both short term and long term. Government would evolve

a system of co-ordination to ensure the flow of credit to the growing units in the

decentralized sector at the right time and on appropriate terms. Government proposes to

strengthen the existing arrangements and make such changes as may be necessary to

facilitate the availability of credit to the growing units in the small scale sector


Financial Assistance

Pre and Post Shipment finance at concessional rate of interest

Financial assistance for procurement of indigenous and imported raw material

Financial assistance for up gradation and modernization of SSI unit

Assisting in the process of claiming exports incentives

4.1 Financial Support Measures

Inadequate access to credit – both short term and long term – remains a perennial

problem facing the small scale sector. Emphasis would henceforth shift from

subsidized/cheap credit, except for specified target groups, and efforts would be made to

ensure both adequate flow of credit on a normative basis, and the quality of its delivery,

for viable operations of this sector. A special monitoring agency would be set up to

oversee that the genuine credit needs of the small scale sector are fully met.

To provide access to the capital market and to encourage modernization and

technological up gradation, it has been decided to allow equity participation by other

industrial undertakings in the SSI, not exceeding 24 per cent of the total shareholding.


This would also provide a powerful boost to acceleration & sub-contracting, leading to

expansion of employment opportunities.

Regulatory provisions relating to the management of private limited companies are being

liberalized. A Limited Partnership Act will be introduced to enhance the supply of risk

capital to the small scale sector. Such an Act would limit the financial liability of the new

and non-active partners/entrepreneurs to the capital invested.

A beginning has been made towards solving the problem of delayed payments to small

industries by setting up of ‘factoring’ services through Small Industries Development Bank

of India (SIDBI). Network of such services would be set up throughout the country and

operated through commercial banks. A suitable legislation will be introduced to ensure

prompt payment of Small Industries’ bills.

CHAPTER: 5

ACCOUNTABILITY AND TRANSPARENCY


5.1 Significant Accounting Policies

Convention

Basis of Accounting

Fixed Assets

Depreciation

Revaluation of Assets

Investments

Inventories

Sales

Investment Income

Proposed Dividend

Retirement Benefits

Lease Rentals

Research and Development

Taxes and Income


Foreign Currency Translation

Claims

Segment Reporting

Financial and Management Information Systems

5.1 Accounting Policies

5.1.1 Basis of Preparation:

The financial statement of a company are prepared under the historical cost convene on

accrual basis of accounting, in accordance’s with the mandatory accounting standards

issued by institute of charted accountants of India n referred to in section 211 (3c)of

companies act ,1956,and generally accepted accounting policies in India. The significant

accounting policies are as follows:

5.1.2 Fixed Assets and Deprecation:

Fixed assets are started at cost less accumulated depreciating less impairment losses, if

any. The company capitalized all cost relating to the acquisition and installation of fixed

assets. Deprecation is provided using written down value(W’D’V),pro-rata to the period of


use of assets, in the manner specified in schedule14 to THE COMPANIES ACT 1956, at

the rate prescribed therein or based on useful life of assets whichever is higher as follow.

5.1.3 Investments

Long term investments are stated at cost .Provision, where necessary, is made to

recognize a diminution, other than temporary, in the value of the investment.

5.1.4 Inventories

Inventories are valued at lower cost, computed on weighted average basis and estimated

net realizable value. Cost of work-in-process and finished goods including manufacturing

overheads. The company accuse for excise duty liability in respect of manufacturing

finished goods inventories lying in the factory and customer duty liability in respect of

inventories in bond.

5.1.5 Foreign Currency Transaction

Foreign currency transaction during the year are recorded at rates of exchange prevailing

on the date of the transaction and difference between spot rate at the date of contact and

the exchange rate prevailing on the balance sheet date is recognized . Foreign currency

monetary items are reported using the closing rate.


Where the company has entered into forward exchange contracts, the difference between

the forward rate and spot rate at the date of the contract is recognized in the statement of

profit and loss over the life of the contract and the difference between ate spot rate at the

date of contract and the exchange rate prevailing on the benefit date is also recognize as

income or as expense for the year.

5.1.6 Sales

The companies recognize sales of goods on dispatch to customers. sales comprises

amounts invoiced for the goods sold and does not include excise duty and sales tax, and

are net sales returns, trade discounts and rebates.

5.1.7 Income –Tax

Tax expense comprises of both current tax, deferred taxes and fringe benefit tax.

Provision for current income taxes is made on the taxable income at the tax rate

applicable to the relevant assessment year. Fringe benefit tax is measured at the amount

expected to be paid to the tax authorities in accordance with the Indian income tax act.

Deferred income taxes are recognized for the future tax consequences attributable to


timing differences between the financial statement determination of the income and their

recognition for tax purpose.

The effect on deferred tax assets and liability of a change tax rates is recognized in

income using the tax rates and tax laws that have been enacted or substantively enacted

by the balance sheet date.

Deferred tax assets are recognized and carried forward only to the extent that here is

reasonable certainty supported by convincing evidence that sufficient future taxable

income will be available against which such deferred tax assets can be realized.

CHAPTER: 6ANALYSIS

6.1 List of Enterprises

Sr.no. ENTERPRISES Address1 Prince Enterprises Dakhatrana, Near post office,

Kutchh-370615

2 RJB firm Ganga Naka, Anjar (kutch)-


370615

3 Creative Pumps Pvt. Ltd. Near Sabar Dairy,Talod Road ,

Himatnagar.

4 5 Star Agriculture Pvt. Ltd. B-37, Sec-25 ,GIDC, G'nagar.

5 Rising Star Enterprise B-104, GIDC, Sec-25, G'nagar.

6 Uma Industries Plot-803/2, GIDC, Sec-

28,G'nagar.

7 Gayatri Fabrication L-801/10,GIDC,Sec-

20,Ganghinagar.

8 Ambika Engineering K-1,802/14,Sec-28,GIDC,

G'nagar

9 Khodiyar Fabrication Works Plot-605, GIDC,Sec-

28,G'nagar.

10 Stone Field e-12,gidc,electronic estate,

Gandhinagar.

11 Innovision System

12 omani lens 67/1,gidc,sector-

26,gandhinagar


13 Sidhheswari industries c-1,b-7,46/2,gidc,kalol

14 Bharti enterprise 44/4,gidc,kalol

15 Parth product 48/1,gidc,kalol

16 Salus pharmaceutical 105,gidc,himmatnagar

17 Kishan and company plot-88,ranasan GIDC ,vijapur

18 Gokul Enterprise plot-92,gidc,ranasang,vijapur

19 Sidhhi plastic plot-

39,gidc,motipura,himmatnagar

20 Yogi pulse mill plot-117,gidc,himmatnagar

21 Panchal Steel Industries Sec-28,gidc,G'nagar

22 Diamond Plastic E-39,Sec-26,gidc,G'nagar.

23 Om Shanti Handicraft Sec-28,gidc, Plot-

902/13 ,G'nagar

24 Punam Steel Industries E-87,Sec-26, gidc,G'nagar.


25 Maruti Timbers Plot-903/9,gidc,Sec-

28,G'nagar.

26 Space Trans Pvt. Ltd. e-101,gidc, Sec-26,G'nagar.

27 Shree Krishna Furniture Works 902/ k-1-6,Sec-28,gidv,

G'nagar.

28 Electronics Pvt. Ltd. E-144,gidc, Sec-26,G'nagar.

29 Refrahold plot-e/86,Sec-26,gidc,G'nagar.

30 Kaival Spinner 48/3,&47/1,gidc,kalol.

31 The Bhagyoday Soap Factory 131,gidc,kalol.

32 Kamal Kapoor c-1 ,15 ,gidc, kalol.

33 Metal Strips 1/6,gidc,kalol.

34 Himalay Wood Craft plot-c1,41/3,gidc,kalol.

35 Mahesh Industries 36,gidc,kalol.

36 Raj Product a-135,gidc,motipura,

Himatnagar.


37 Hetal Industries Vijapura shed , Nr.sapsna

ston,gidc,Himatnagar

38 Paresh Industries 83,gidc,himatnagar.

39 Astron Group of co. 96,gidc,Himatnagar.

40 Subhagya Agro Equipment Plot-283,DHANDHA, Idar

Road , Himatnagar.

41 Sabar Agro Industries 122,gidc,motipura,

Himatnagar.

42 Yogi Agro Industries plot-117,gidc,himatnagar

43 Shiv Shakti Plus Mill 126,gidc,Himatnagar.

44 Umiya Industries plot-106,gidc,ransan,Vijapur.

45 Mahadev Timer Mart` plot-92-

94,gidc,ranasan,Vijapur.

46 MANSI PLASTIC C.1, 407, GIDC, MANSA

47 SAYTAM INDUSTRIES 40/B, KARNAVATI ESTATE,

A'BAD


48 GANESH INDUSTRIES 310/A, GIDC, MANSA

49 SOHAM INDUSTRIES 310/B, GIDC, MANSA

50 GANDHI COTTON INDUSTRIES PVT. LTD A-6P-1, DHOLAKUVA,

G'NAGAR, MANSA HIGHWAY

51 NIDHI INDUSTRIES I-521/2, GIDC ESTATE,

MANSA

52 OMKAR INDUSTRIES I-518/2, GIDC ESTATE,

MANSA

53 CORE ENGINEERS E-77, GIDC, SECTOR 26,

GANDHINAGAR

54 KESHRINANDAN GRANITE OFFICE-7, GIDC, SECTOR

28, GANDHINAGAR

55 OM WOODLAND E-232, SECTOR 26, GIDC,

GANDHINAGAR

56 SPM ELECTRONICS AND SYSTEMS E-201, GIDC, SECTOR 26,

GANDHINAGAR

57 SHAEE GANESH TIMBER MART 903/1, K-1, GIDC, SECTOR


28, GANDHINAGAR

58 BHARAT STEEL & WIRE 408, GIDC, MANSA

59 DIAMOND CHAIN WORKERS 1/517, GIDC, MAMSA

60 MOON EXTRUSIONS PVT. LTD A/212, GIDC, MANSA

61 NAVIN PLASTIC INDUSTRIES C-1/79, GIDC-2, MAHESANA

62 VISHVASH BIO-JINETIC PVT. LTD 501-C, GIDC, MANSA

63 SHUBH SEEDS LTD 603, GIDC, MANSA

64 RAVI SEEDS CORPORATION C/1, 405/406/311, GIDC,

MANSA

65 BAJRANG ENGINEERING INDUSTRIES A-213,GIDC, MANSA

66 SILICON INDUSTRIES 601/1, GIDC, MANSA

67 DIVYAJYOT AGRICULTURE PVT. LTD IDAR ROAD, POO.DHANDHA,

AT & PO. HIMATNAGAR

68 CHANDRA AGRI. IMPLIMENTS PVT. LTD BH. GIDC MOTIPURA,

HIMATNAGAR


69 UMA TRANSFER AND ENGINEERING 103/104, GIDC ESTATE,

HIMATNAGAR

70 PARTH INDUSTRIES 113, GIDC, MOTIPUR,

HIMMATNAGAR

71 YOGI PULSE MILL 117, GIDC ESTATE,

MOTIPURA, HIMMATNAGAR

72 PARMESHWARI INDUSTRIES 201, GIDC, MANSA

73 RUSHIL DÉCOR LTD 608, GIDC, MANSA

74 REGENT CIRAMIC & SANETORY WARE GIDC, MANSA

75 MAHESHWARI PLASTIC INDUSTRIES C-502, GIDC, MANSA

76 DHARTI STONE INDUSTRIES GIDC, MAMSA

77 MARUTI AGRICULTURE WORKERS 412, GIDC, MANSA

78 ARJUN FARMS PVT. LTD 305/2, GIDC ESTATE, MANSA

79 INDIA AGRICO 306/3, GIDC, MANSA

80 MAYUR STEEL 183, GIDC-1, MEHSANA


81 INDIA AGRO INDUSTRIES NR. GIDC, VISNAGAR ROAD,

MANSA

82 GANGA HYBRID SEEDS COMPANY C-1, 415, GIDC, MANSA

83 MUKTANAND SEEDS & PESTISIDES GIDC, MANSA & OFFICE 8,

SARDRA PATEL MARKET,

MANSA

84 NAVBHARAT PACKAGING COMPANY 207, GIDC, MANSA

85 SAHJANAND AGRICO 520/2, GIDC, MANSA

86 ASHWAMEGH WIRE INDUSTRIES C-1, 416, GIDC, MANSA

87 JALDHARA PLASTICS C-1, 504, GIDC, MANSA

88 SHRI RADHAKRISHNA INDUSTRIES 306, 3-A, GIDC, MANSA

89 KANAN CASTINGS PVT. LTD 410, GIDC, MANSA

90 MODERN POLYMER INDUSTRIES 209, GIDC, MANSA

91 KABIR SEEDS 413, GIDC, MANSA

92 UMA METAL 205, GIDC, MANSA


93 SAIBABA PIPES PVT. LTD 219, GIDC, MANSA

94 GAYATRI SEEDS CORPORATION 308, GIDC, MANSA

95 VARDHMAN MARBLES 302, GIDC, MANSA

96 Online Power Care Ltd. 306,kalash, 2,

Navrangpura ,Ahmadabad.

97 Viral Control private ltd B-29,gidc,gandhinagar

98 Shiv Shakti tire retarders halvad road, dhangadhra

99 chain electronic pvt ltd d-22,gidc,sector-

25,gandhinagar

100 HP Electronic B-141,sector-25, Gandhinagar

101 PETROTEC RETAIL PETROLEUM

EQUIPMENT(INDIA)PRIVATE LIMITED

E/109-110,GIDC

ELECTRONIC

ESTATE,SECTOR 26

102 KRISHNA ENTERPRISE PLOT NO.E-

126,GIDC,SECTOR-

26,G'NAGAR

103 KEPREJ POWERTRONICS E-138,GIDC ELECTRONIC

ESTATE,SECTOR 26


104 HARIOM PLOYMERS E-127,GIDC ELECTRONIC

ESTATE,SECTOR 26

105 SHRIJI G.P. KIRTIDHAM

COMPLEX,INCOMTAX A'BAD

106 PAAVAN ELECTRONICS INDUSTRIES E-54,GIDC ELECTRONIC

ESTATE,SECTOR 26

107 SHREE UMIYA ELECTRONICS E-41,GIDC ELECTRONIC

ESTATE,SECTOR 26

108 VIMAL ELECTRONICS E-49,GIDC ELECTRONIC

ESTATE,SECTOR 26

109 REGENT CONTROL SYSTEM E-83,GIDC ELECTRONIC

ESTATE,SECTOR 26

110 DUTT ELECTRONICS B-167,GIDC ELECTRONIC

ESTATE,SECTOR 25

111 SAMAY B-803,GIDC,SECTOR 28

112 HIREL CIRCUIT PVT.LTD B-132,GIDC ELECTRONIC

ESTATE,SECTOR 26

113 SHIVAM TREADERS PRAJAPATIVAS,

RANDHEJA,G'NAGAR


114 PATHFINDER WOODPLAST K-1,903/5, GIDC,SECTOR

28,G'NAGAR

115 ASUTOS&ARYAN ENTERPRISE K-1,902/10, GIDC,SECTOR

28,G'NAGAR

116 S.R.TRADING CO. PLOT NO.201,GIDC,SECTOR-

28,G'NAGAR

117 MARUTI STEEL WORK PLOT NO.E-

203,GIDC,SECTOR-

26,G'NAGAR

118 JAMNA TILES K-1,902/16, GIDC,SECTOR

28,G'NAGAR

119 UMA TILES PLOT

NO.803/2,GIDC,SECTOR-

28,G'NAGAR

120 DHANRAJ ELECTRONICS E-45,GIDC ELECTRONIC

ESTATE,SECTOR 26

121 SHUKAN PLYWOOD&HARDWARE 32,SUPAR MALL-

1,INFOCITY,GH-

0CIRCLE,G'NAGAR

122 RAJAJI NAMKIN K-1,802/23,GIDC,SECTOR-


28,G'NAGAR

123 KIRAN ENTERPRISE B-38,GIDC ELECTRONIC

ESTATE,SECTOR 25

124 H.A.T124.CORPORATION E-208,GIDC ELECTRONIC

ESTATE,SECTOR 26

125 SPACE TRANS PVT.LTD E-101,GIDC ELECTRONIC

ESTATE,SECTOR 26

126 CAPITAL OIL & GREASE CO E-53,GIDC ELECTRONIC

ESTATE,SECTOR 26

127 OUM ELECTROMECH E-47,GIDC ELECTRONIC

ESTATE,SECTOR 268

128 YOGM SALES

B-50,GIDC9

ELECTRONIC

ESTATE,ECTOR 25

129 LUNAR ELECTRONICS B-48,GIDC ELECTRONIC

ESTATE,SECTOR 25

130 PATEL STILL WOOD INDUSTRIES E-78,GIDC ELECTRONIC

ESTATE,SECTOR 26

131 A.D ENTERPRISES PLOT NO.E-99 G.I.D.C. SEC-

26 GANDHINAGAR


132 ATLAS INDUSRTIES PLOT NO.E-14/1 G.I.D.C.2

DEDIYASAN MEHSANA

133 PATEL SECURITIES B-57 VAMAL SUPER

MARKET MEHSANA

134 SAGAR RUBBER PRODUCT PVT .LTD PLOT NO.E-143 G.I.D.C.2

DEDIYASAN MEHSANA

135 ATLAS INDUSRTIES PLOT NO.E-317 G.I.D.C.2

DEDIYASAN MEHSANA

136 DEEP INDUSRIES LTD. F-20 WIDE ANGLE COMPLEX

MEHSANA

137 MOONLIGHT CONSULTANTS G-37 WIDE ANGLE

NAGALPUR MEHSANA

138 ATLAS EQUPMENTS PLOT NO.E-317 G.I.D.C.2

DEDIYASAN MEHSANA

139 KESAR ENTERPRISE F/2 PANDYABA COMPLEX

NAGALPUR MEHSANA

140 ACCUMAX BUSINESS CORPORATION B-94 ELECTRONICS G.I.D.C.

SEC-25 GANDHINAGAR

141 PRIMA CHEMICALS C-1, 343, G.I.D.C, ESTET,


ODHAV, AHEMEDABAD.

142 ANIL METAL INDUSTRIES 439/2.OPP,ODHAVPOLICE

CHOKY, GIDC, ODHAV,

A'BAD

143 DARPAN DENIMS PVT.LTD 333/334,G.I.D.C,NEW,WATER

TANK,ODHAV,A'BAD

144 PIONEER ENGINEERING SERVICES 428.G.I.D.C.ODHAV A'BAD

145 MORDERN METAL INDUSTRIES C-1/345.G.I.D.C.ODHAV

A'BAD

146 AESHA BEARINGS G-49 ,RAVI COMPLEX,

OPP.G.I.D.C. BUS

STOP,ANKLESHWAR

147 ELEMBICA SERVICES 340, G.I.D.C. NR.

DEVERSON, ODHAV, A'BAD

148 DIPCO ENGINEERING WORKS 339,340/P OPP. PRIMA

CHEMICALS, GIDC A'BAD

149 YASHWANT INDUSTRIES 440/7.A, GIDC, ODHAV A'BAD

150 SHRI NAVKAR METAL LTD PLOT NO.342/A,GIDC

ODHAV, A'BAD


151 SIDDHI SURGICAL PLOT NO.

156/B.GIDC,SECTOR 25

GANDHINAGAR

152 SHREE UMIYA ELECTRONICS CO. E/41.GIDC,

(ELECTRONICS),SEC.26,GA

NDHINAGAR-382944

153 APEX ELECTRONICS E/108/A,GIDC ELECTRONICS

ESTATE,NR.DEVI

ELECTRONICS,SEC-

26,GANDHINAGAR-382028

154 RAJESH ELECTRIC CO. PLOT NO. 906/9 K-1, GIDC.

NEAR D.S.P OFFICE, SEC-28

GANDHINAGAR-382028

155 YOGI WOODEN WORKES PLOT NO. 906/7,K-

1,GIDC,NEAR GOKUL ICE

CREAM, SEC.28,

GANDHINAGAR

156 JAYANT CIRCUITS PLOT NO. B-63, GIDC,

ELECTRONICS ESTATE,

OPP. CIRCUIT SYSTEM.

SEC.25,GANDHINAGAR-

382044

157 LAXMI REFRIGERATION AND ELECTRICAL WORKS PLOT NO.B-89.NR

MCBS,GIDC ELECTRONICS

ESTATE,SEC-



158 SURWIN TECHNOLOGY C-61/62,SHREENEMI,GIDC

HOUSING PLOT,SEC-


159 MODI SORTEX KHALI CHAR

RASTA,HIGHWAY,SIDHPUR-

384 151.DIST.PATAN

160 COGENT BIOTECH INDIA LIMITED PLOT NO. 902/13, GIDC,SEC-

28 GANDHINAGAR

161 H.P.ELECTRONICS PLOT NO.B-141,GIDC SEC-25

G"NAGAR

162 CADRE AGRO PVT. LTD. PLOT NO-902/12 GIDC SEC-

28 G'NAGAR

163 CIRCUITRONIX MANU. OF C.B. PLOT NO-B-90 GIDC SEC-25

G'NAGAR

164 ARZOO SORTEX STATE HIGHWAY KHALI

SIDDHPUR

165 PANCHSHIL BRIEKS &SONE SUPPLIER MUMANVAS,SATALASANA,M

EHSANA

166 SHIVSHAKTI TIMBAR MART PLOT NO-906/21 K-1 SEC-28

GIDC G'NAGAR7


167 HITECH OPTHLMIC SYSTEM PVT. LTD. E-222 SEC-26 GIDC

G'NAGAR

168 ARBUDA INSTRUMENTS E-58 GIDC SEC-26 G'NAGAR

169 VARDHMAN ELECRO-MECH B-87-88 GIDC SEC-25

G'NAGAR

170 S.B.ELECTRONICS B-105 GIDC SEC-25

G'NAGAR

171 AMEE STEEL INDUSTRIES PLOT NO-273 GIDC

RANASAN VIJAPUR

172 SAGAR INDUSTRIES PLOT NO 261 RANASAN

VIJAPUR

173 ARBUDA STEEL CORPORATION KALOL HIGHWAY ROAD

MANSA

174 JAY AMBE LAMINATION E-61 SEC-26 G'NAGAR

175 AMBIKA PUMP SERVICE PRTAPNAGAR MANSA

176 AMBICA DIAMOND PVT. LTD NR.RAILWAY STATION

VIJAPUR


177 AES AUTOMATION ENG. SERVICES B-83 GIDC G'NAGAR

178 AYUSH WORLD BEVERAGE PLOT NO 126 GIDC

VIJAPUR

179 AGRO SERVICE CENTER ASHRAM CHOKDI VIJAPUR

180 SHREE HARI OIL INDUSTRIES PLOT NO 261 RANASAN

VIJAPUR

181 PALIKHANDA RICE MILL MODASA ROAD, BAYAD,

DIST.-S.K.

182 PURITY FLEXPACK LTD. AT- VANSETI POST-

TAJPURA,DIST-PMS

183 TRAKTRONIKS B\58\59,GIDC,SE.-25,

G'NAGAR

184 CENTURY TILES LTD. BLOCK NO. 210 AT-

GADHODA, DIST-S.K.

185 ASIAN GRANITO INDIA LTD. AT-DALPUR TA-PRANTIJ

DIST-S.K.

186 MARUTI ENGG.WORKS AT-BIBIPURA,TA-

BAYAD,DIST-S.K.


187 RAJ QUORY WORKS AT JASHVANTPURA, TA-

DHANSURA,DIST-S.K.

188 RAJHANS OIL MILL AT-VANTADA,TA-

BAYAD,DIST-S.K.

189 NEW BHOLENATH TIMBER MART OPP.AASIANA HOTEL,

HALOL, DIST-PMS.

190 CHEMO TRADE ORGANIC 2006 \D\3,GIDC.ESTATE

ANKLESHVAR

191 ANKUR INDUSTRIES SHED NO.C-1/3913,GIDC

ESTATE,ANKLESHWAR-

393002

192 AKRUTI INDUSTRIES SHED NO.C-1,B-

2010,GIDC,ANKLESHWAR-

383002

193 LEO SALES CORPORATION G-61,RAVI COMPLEX,VALIA

CROSS

ROAD,G.I.D.C.,ANKLESHWA

R

194 ANAND PETROCHEM PVT LTD. SHED NO-A-2/5513,ROAD

NO.3,G.I.D.C.ANKLESHWAR


195 SHREE SURYA WOOD INDUSTRIES SHED NO.A1/320, GIDC,

ASIAN PAINT

CHOKDI,ANKLESHWAR.

196 KANGAROO INDUSTRIES PLOT NO.1806-

1807,G.I.D.C.INDUTRIAL

ESTATE, ANKLESHWAR

197 CARDKEM PHARMA PVT. LTD. 2301-02,GIDC

ESTATE,ANKLESHWAR,

BHARUCH

198 P.B.ENTERPRISES 5-PRIYA COMPLEX

NR.ASIAN PAINT CHOWKDI

GIDC ANKLESHWAR

199 KIRSHNA METAL & TUBES PLOT NO 732/A, SHOP NO

G/11/ARUNODAY COMPLEX

GIDC ANK.

200 SOLIYA TRADE CENTER PLOT NO 5-10,ARUNODAY

COMPLEX GIDC

ANKLESHWAR


Q1. What are the difficulties during Initiation of business?

Introduction: As we all know that if the business is started there are many difficulty behind

it’s initiation. And that is affect on business. In 200 industries majority of the

industries have faced the difficulties. Each firm has different kind of difficulty,

but here given the common difficulty which affect on business.

Description: When the initiation of business the owner of business has many difficulties

faced like, marketing, finance, labour and competitors, so this difficulties are

decrease the growth of the small scale industries. The owner has to aware

about this, otherwise business will suffer from loss.

Theory: In survey of small scale industries there are many industries which have arises

the difficulties with the starting of business. Majority of the firm have faced

difficulties which are finance, competitors, marketing, and labour.

The business is new in the market so, the labour is not available easily also

firm is new in the market therefore, marketing problem & it’s competitors. The

most common problem is the capital or finance. The firm is newly started so the


owner has not sufficient capital. The detailed explanation about 200 industries

is given here in table.

Table:

48%

22%

23%

19%

Source of Motivation

ABCD


Option No. of companies

Percentage

A 96 48%

B 44 22%

C 46 23%

D 37 18.5%

Conclusion:

At last, in 200 industries most of the industries 103 companies have phased

difficulties. Therefore, the table shows that majority of industries phase’s

difficulties when it’s initiation.

Q2. Years of incorporation

Introduction:Years of incorporation are one of the important question because it helps us to

know how long they are in the market, and then also they are facing problems,

which type of problem, competition etc. we can know from this question.

Description:

In our research of 200 companies we found most of the companies are formed

between 1999-09 (93 companies) means 46.5%. And after that in between


1989-99 (81 companies) means 40.5% which is quite near to 1999-09

companies. In year 1979-89 24 companies (12%) are their and in

between1960-79, 2 companies (1%) are their in the market. It means most of

the companies are formed in between 1999-09. In table the data is analysis

below:

Table:


1% 12%

41%

47%

Years in Corporation

1960-791979-891989-991999-2009


Range No. of Companies

Percentage

1960-79 2 1%

1979-89 24 12%

1989-99 81 40.5%

1999-09 93 46.5%

Conclusion:

We have seen that in our survey of 200 industries, 93 companies are formed

between in the year 1999-09 (46.5%). In our surveys most of the companies

are seen in this year only. This is developing time of small scale industries.

Q3.Type of organisation.

Introduction:

Types of organisation are one of the important question because it helps us to know

which organization mostly chosen by small scale industries also the position of the

company. This also helps to know about the expansion of the company. By this we can

able to understand which organisation faces which type of problem so that we easily

reach the solution.

Description:

In our research which around 200 companies we found that most of the companies are

proprietorship the percentage of proprietorship companies is 47%. Very less percentage


found in co-operative society (0%), public company (2%) and public listed companies

(0%). Partnership and private companies’ percentage is 34% and 17% respectively.

Table:


Option No. of Companies

Percentage

(A) proprietorship

94 47%

(B) partnership

68 34%

(C) co-operative society

0 0%

(D) private company

34 17%

(E) public company

4 2%

(F) public listed company

0 0%

47%34%

17% 2%

Types of organization

A

B

C

D

E

F

Conclusion:

This research on small scale industries where we found most of the organisation are

proprietorship and some partnership companies, and little bit of private companies, which

show the position of the companies it also show that government help them to start there

business but not give them much freedom and authority to expand their business.

Q4.Type of Business.


Introduction:

In this question we record, small scale industries doing which type of business, we

divided into three types, Trading, Manufacturing, and Both. Trading a company which

deals in selling of products, and manufacturing companies which deals in making or

produce of product for customers.

Description:

In our research we found that most of small scale industries are manufacturing (69%) 138

companies out of 200 companies. And in trading (21%) 42 companies which are less than

manufacturing companies. And companies doing both (trading and manufacturing) are

(10%) 20 companies are there. Most of the small scale industries are manufacturing

companies.

Table:


21%

69%

10%

Types of Business

TradingManufacturingBoth

Conclusion:



Percentage

Trading 42 21%

Manufacturing 138 69%

Both 20 10%

In our research most of small scale industries are manufacturing companies, less

companies are doing trading. They are making or produce products for customers. We

found most of small scale industries prefer manufacturing.

Q5.Is there any change in the type of organisation?

Introduction:

This question to know the past situation of the companies and know time. This is the one

of the good question, this also show the current position of companies and help the

reason for the change.

Description:

In our research we found that 163 (81.5%) companies out of 200 companies not change

their organization they are stable on their work and only 37 (18.5%) companies out of 200

companies change their organisation, they change their work.


Table:

18.50%

81.50%

Sales

YesNo


Option NO. of Companies

Percentage

Yes 37 18.5%

No 163 81.5%

Conclusion:

There percentage shows that they are stable in their work without any problem, some

companies expand their company then they change their organisation and some time in

partnership organisation partners ideas, thoughts not match with each other create

problem for company therefore they change their organisation.

Q6.How much regulatory permission is required to initiate the business?

Introduction:

This question base on the difficulty faced by the enterprise the regulatory permission by

government for doing the business. Companies have to take permission for doing

business from government. Which types of permission are taken for small scale industries

are mentions below:

Local municipality and panchayat

Registrar of partnership/ society/ company

Tax Authorities

Pollution control board


Description:

In our research we found that there most of the companies are taken permission from

local authority and panchayat which are 73 companies (36.5%) out of 200 companies, 22

companies (11%) from registrar of partnership/ society/ company, 69 companies (34.5%)

from tax authorities, 3 companies (1.5%) from pollution control board and 30 companies

from other authorities.

Table:




Percentage

(A) local municipality & panchayat

73 36.5%

(B) registrar of partnership society/ company

22 11%

(C) tax authorities

69 34.5%

(D) pollution control board

3 1.5%

(E) any other authority

30 15%

Conclusion:

In our research all companies are take permission from government, which are good for

the society or customers.

Q7. Was there any difficulty during initiation of business?

Introduction:

This question show the difficulty during initiation of the business in small scale industries,

also specify the difficulties during initiation of business, which type of difficulties they are

faced in the beginning of the business.

Description:

In our research most of companies are face difficulties during their initiation. Out of 200

companies 103 companies (51.5%) face problems in the beginning of the business and

97 companies (48.5%) not face any difficulties in the beginning of the business.


Table:

Difficulty during Initiation

YesNo



Percentage

Yes 103 51.5%

No 97 48.5%

Conclusion:

In our research most of the small scale industries face problem like financially, in selling

of the product, infrastructure etc in the initiation of the business.

Q8.Annual cost of regulatory compliance in running business.

Introduction:

This question shows the cost involve in regulatory compliance in running business, it is

also a difficulty faced by the enterprise because a huge amount of money involve in

regulatory compliance. In this question how much cost involves in regulatory compliance

by small scale industries is shown.

Description:

In our research most of small scale industries are between 1000- 1lakh rupees, 121

companies (60.5%) out of 200 companies, between 1lakh-20 lakh rupees 33 companies


(16.5%), between 40lakh-60lakh rupees 12 companies (6%), between 20lakh-40lakh

rupees 11 companies (5.5%), 80lakh-1crore 2 companies (1%), and between 60lakh-

80lakh rupees no companies are there. Most of the small scale industries’ annual cost of

regulatory compliance is between 1000-1 lakh rupees.

Table:


60.50%

16.50%

5.50%6.00%1.00%

Sales

1000 to 1lk1lk to 20lk20lk to 40lk40lk to 60lk60lk to 80lk80lk to 1cr

Conclusion:

This research on small scale industries we found 121 companies out 200 companies’

annual cost of regulatory compliance in running business, most of the companies not

involve huge amount of cost in regulatory compliance.


Range No. of Company

Percentage

1000-1lakh 121 60.5%

1lakh -20lakh

33 16.5%

20lakh-40lakh

11 5.5%

40lakh-60lakh

12 6%

60lakh-80lakh

0 0%

80lakh-1crore

2 1%

Q9. Is information on different promotional schemes of the Government easily available?

Introduction:

This question show is information on different promotional schemes of the government

easily available to the small scale industries or not because many times companies are

not aware about the government promotional schemes.

Description:

In our research of small scale industries 106 companies (53%) out of 200 companies can

easily known about the government promotional schemes, and 94 companies (47%)

cannot easily available to small scale industries about the information on different

promotional schemes of the government.


Table:

53%47%

Availability of scheme

AB



Percentage

Yes 106 53%

No 94 47%

Conclusion:

In our research even now most of the small scale industries are not informed about

different promotional schemes of the government, need more development in small scale

industries.

Q10. Number of computers the enterprise uses.

Introduction:

This question shows the level of technology use by companies. This is research on small

scale industries therefore we have to know the use of computer in the company, this

show us how much they familiar with computer technology.

Description:


In this research we found that there are very less number of computers is use by

company, most of the companies out of 200 companies 11 companies (5.5%) are not

using computers, between 1-10 computers 181 companies (65.5%) are using computers,

between 11-20 computers 4 companies (2%) are using computers, between 21-30

computers 2 companies (1%) are using computers, between 31-40 computers 1 company

(0.5%) is using computer, between 41-50 computers 1 company (0.5%) is using

computer.

Table:


5.50%

65.50%

2.00% 1.00%

0.50%0.50%

No. of Computers

01 to 1011 to 2021 to 3031 to 4041 to 50

Conclusion:



Percentage

0 11 5.5%

1-10 181 65.5%

11-20 4 2%

21-30 2 1%

31-40 1 0.5%

41-50 1 0.5%

This is small scale industries therefore most of the companies are so small therefore they

didn’t have more than 1 computer and some companies have enough for their company.

Q11.Is the Enterprise allowed to file Online Information to the Regulatory Authority

Introduction:

This question also to known the level of technology use by the companies. In this

question to know is the enterprise allowed or not to file online information to the

regulatory authority.

Description:

In this research we found that 108 companies (54%) out of 200 companies are allowed to

file online information to the regulatory authority, and 92 companies (46%) are not

allowed to file online information to the regulatory authority.


Table:

54%46%

Online information to the regulatory authority

YesNo



Percentage

Yes 108 54%

No 92 46%

Conclusion:

In our research most of companies are allowed to file online information to the regulatory

authority, but most of the companies are allowed also for that companies need more

developing programs.

Q12.Initial Capital of the Enterprise.

Introduction:

In this question how much initial capital of the enterprise are use by small scale

industries. It shows the capital of the enterprise which determines the ratio stability in

economy.

Description:

In our research out 200 companies 118 companies (59%) are between 1lakh- 50lakh,

between 1crore-50crore 65 companies (32.5%), between 1000- 50thousand 6

companies (3%), between 50thousand-1lakh 6 companies (3%), between 50lakh-1crore 2


companies (1%), between 50crore-100crore 2 companies (1.1%) and between 100crore

& above 1 companies (0.50%). Most of the companies be are between 1lakh-50lakh 118

companies out of 200 companies of our survey.

Table:


3%3%

59%1%

33%

1%1%

Initial Cap.of Enterprise

0-50thd50thd-1lk1lk-50lk50lk-1cr1cr-50cr50cr-100cr100cr & above



Percentage

0-50thd 6 3%

50thd-1lk 6 3%

1lk-50lk 118 59%

50lk-1cr 2 1%

1cr-50rc 65 32.5%

50cr-100cr 2 1.10%

100cr & above

1 0.50%

Conclusion:

In our survey most of the companies are having initial capital between 1lakh-50lakh,

which is a good amount of capital for small scale industries.

Q13.Present Capital of Enterprise.

Introduction:

This question concern with the present capital of the enterprise, which they recently

using. It shows the financial position of the companies, and also show in which they are

lacking, to make them financial strong.

Description:

In our survey most of the companies are between 1crore-50crore 110 companies (55%),

between 1lakh-50lakh 72 companies (36%), between 50lakh- 1crore 9 companies

(4.50%) , between 50thosand-1lakh 1 company (0.50%), 100crore & above 1 company

(0.50%). In our survey most of the companies are having good present capital.


Table:



Percentage

0-50thd 7 3.5%

50thd-1lk 1 0.50%

1lk-50lk 72 36%

50lk-1cr 9 4.50%

1cr-50cr 110 55%

50cr-100cr 0 0%

100cr & above

1 0.50%

3.50% 0.50%

36.00%

4.50%

55.00%

0.50%

Pre. Capital of En-terprise

0-50thd50thd-1lk1lk-50lk50lk-1cr1cr-50cr50cr-100cr100cr & above

Conclusion:

In our survey of small scale industries, most of the companies are having good present

capital, having good financial position of the enterprise. They are between 1crore-50crore

means having good amount of present capital.

Q14.Audited Profit/ loss of the business.


Introduction:

This question is concern with audited profit/ loss of the business, which shows the official

inspection of an organization’s accounts, during that time their profit and loss of the

business.

Description:

In our survey most of the companies between 1lakh-20lakh 136 companies (68%),

between 1000-1lakh 11 companies (5.5%), between 20lakh-40lakh 9 companies (4.5%),

between 40lakh- 60 lakh 5 companies (2.5%), between 80lakh-1crore 2 companies (1%),

and between 60lakh-80lakh 1 company (0.5%), most of the company having their audited

profit/loss of the business between 1lakh-20lakh 136 companies out of 200 hundred

companies of our survey.

Table:


6%

68%

5% 3% 1% 1%

Audited profit/loss

1000-1lk1lk-20lk20lk-40lk40lk-60lk60lk-80lk80lk-1crore

Conclusion:



Percentage

1000-1lakh 11 5.5%

1lakh-20lakh 136 68%

20lakh-40lakh

9 4.5%

40lakh-60lakh

5 2.5%

60lakh-80lakh

1 0.5%

80lakh-1crore

2 1%

According to our survey audited capital of the most of the enterprise is near 1lakh-20lakh

which is fair audited profit/loss of the business. Because of the small scale 11 companies

are between 1000-1lakh, but according to their scale its good.

CHAPTER: 7

Conclusion

The SSI sector plays a pivotal role in the Indian economy in terms of its

contribution to employment, national income and exports of the country. The

sector has been growing by leaps and bounds since the initiation of

economic planning in India in spit of stiff competition from the large-scale

industries as well as the MNCs. This is evidenced from the number of

registered units which went up from 16000 in 1950 to 36000 units in 1961

and since then the growth has been rigorous. During the last decade alone,

the SSI sector has progressed in terms of aggressive diversification from the

simple consumer goods to the manufacture of many sophisticated and

precision products like electronics control system, micro wave components,

electro medical equipment, TV sets etc.


However, the sector has not been free from problems either internally or

externally. The government policies have been supportive but inadequate.

The resource base is just manageable. The technology and the skilled

human power have been insufficient in terms of supporting the growth of the

sector. The internal problems of the sector are precarious. The management

structure is viewed to be haphazard and unprofessional. Given such

constraints, the SSI sector of the country is suspected to have been weak in

such areas like corporate governance and sustaining growing competition

emanating from the large scale sector and the multinationals.

In the view of the above, the present study was designed to evaluate the

issues related and the problems confronted with the SSI. The study was

done on the basis of primary survey covering 307 SSIs spread over the

Gujarat State. From the analysis the following main conclusions were made.

With regard to the permissions that the SSIs need to take from the different

authorities in order to make the activity legal and smooth, the following

observations were made. Majority of the companies need the regulatory

permission from the local authorities. Some enterprises like Timber, Food

Product mfg., Plastic Mfg., Chemical industry etc. have to take permission

from other authorities like Forest Department, Health Department, Food and

Drugs Department, Bureau of industrial act, Scale & Measurement

Department. It is found that the Government decides the specific regulatory


for specified areas like in Gandhinagar SSIs have to take permission of

Notified Area Council whereas in Ahmadabad, SSIs have to take permission

of Ghumasta Dhara.

When asked whether any difficulty was faced during the introductory stage of

business it was found that around 65% of the surveyed enterprises did not

face any difficulty during the initial stage. This means that establishment of

SSIs is a bit easy in Gujarat.

An analysis with regard to cost of production reveals some interesting facts.

Companies which are in the field of job work undergo an average cost

ranging between Rs. 5,000 and Rs. 15,000 whereas that engaged in

manufacturing it ranges between Rs. 25,000 and Rs. 50,000. The cost

decomposition analysis revealed that the compliance cost of a company

under study includes accountant’s fees, expenses towards renewal of tax

authority, lawyer fees, and tax form filling costs.

Promotional policies of the government are generally viewed to be a

supportive tool for growth in a competitive business environment. This

developed a curiosity in us to know as to whether it works for the SSIs. From

the survey done around 43% of SSIs have reported to get access the


information on different promotional schemes of the Government easily. The

remaining 57% of SSI in Gujarat are not even aware about these schemes.

The chief reasons found for the above observation are as follows. Around

45% of the companies do not use computer which means that they are not

connected to the modern information system. Even though the remaining

companies use computers, around 46% of them use only one and 6.5% use

two irrespective of the amount of business done. This, in any case, is quite

inadequate in the face of the current IT movement and the role played by

computerization in business growth. Not only the

Number of computers, the magnitude and purpose of their use are seen to

be quite poor. This is a serious road-block of the SSIs as they hardly able to

capitalize the benefit from the government’s permission of filling of GST and

CST online.

The research reveals amazing facts with regard to the present capital status

of the SSIs of Gujarat. For about 54% of the SSIs the present capital is

found to be more than Rs. 10, 00,000. This could be partly contributed by the

high inflation rate and alarmingly increasing technology cost.


Profit is the driving force of business. This tempted us to look into the nature

and extent of profit made by the SSIs of the state. The survey disclosed that

around

46% of surveyed companies have profit below Rs. 1, 00,000. The loss

occurring to the SSIs in general is negligible (1.3% of total). It can therefore

be concluded from the above fact that the SSIs do not face any serious

problem with regard to earning profit. This could be mainly due to large

population throwing a large market for SSI products in the country. However,

on being asked whether they will continue earning big profits even during the

coming year, majority of them opined that their profit may come down due to

the onset of recession.

Management structure assumes a great deal of importance in the functioning

of a business entity – small or big. Theoretically, management structure

comprises of three levels: Top, Middle and Bottom. However, it has been

discovered from the survey that SSIs in Gujarat do not generally follow such

type of a management structure. They normally function informally. Even

though some of the surveyed companies are seen to function following a

management structure yet they do not confine strictly to a systematic

framework. On being asked the reason, many of the respondents viewed

that the traditional management structure is, by and large, not required or

advisable on account of it being expensive and time consuming.


As regards ownership, the result is as per our expectation i.e., unlike large

scale industries, in SSIs the ownership is not found to be separated. This

was found true for almost 99% of the enterprises surveyed.

Skill and professional way of working create a marked difference in the

growth and sustainability of enterprises. This made us peep in to the extent

of skill and professionalism in the SSI sector of Gujarat. The survey result

established that

90% of owners and managers of the SSIs are not professionally qualified

and majority of the laborers are unskilled.

Meaning full involvement of workers in the managerial decision making is

always proved to be beneficial for any business organization. However, in

case of SSIs this may not be expected much. Yet the study revealed a

satisfactory level of workers participation in management in the SSIs of the

state. Around 42% of the employees are accepted to give suggestions to the

owner. This is seen mostly in case of SSIs engaged in the fields of

engineering, wooden patent, and other manufacturing business.


In nutshell, the study turned out to be comprehensive, suggestive and path

showing for the readers, researchers and government policy makers.

BIBLIOGRAPHY

Websites:

www.laghuudhyog.com

www.ssiinvestment.com

www.msme.gov.in

www.industrialsector.com

Newspapers:

Economics TIMES

Business Standard

Financial Express

Books:

Indian Economy ( Rudar Dutt & KPM Sundaram)


small scale industries

Documents