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small scale industries

  1. 1. Sarva Vidyalaya Kelvani Mandal (Kadi), SanchalitB P COLLEGE OF BUSINESS ADMINISTRATIONA constituent College of KADI SARVA VISHWAVIDYALAYA, GANDHINAGAR<br />CERTIFICATE<br />This is to certify that the following TYBBA students Of<br />B P College of Business Administration, Gandhinagar,<br />Have submitted their Capstone Project Report on “THE STATUS OF SSIs IN THE STATE OF GUJARAT WITH SPECIAL REFERENCE TO GOVERNANCE”<br />For the academic year 2009-10 in partial fulfillment of the<br />Requirements for the paper “Capstone Projects”<br />Of the Third Year of B. B. A. Programme affiliated to the Kadi Sarva Vishwavidyalaya.<br /> Sr no. Names of the Students Roll No<br /> 1.Anjali Singh 86<br /> 2.Parekh Riddhi23<br /> 3.Mewada Ankit18<br /> 4.Nayak Snehalata21<br /> 5.Patel Payal41<br /> 6.Parmar Chetan24<br /> 7.Chadva Mahipa10<br /> 8.Desai Mehul13<br /> 9.Marchant Monika17 <br />Prof. Ramakanta Prusty<br />(Faculty & Coordinator)<br />EXECUTIVE SUMMARY<br /> The main objectives for conducting the Capstone Project are considered as under.<br />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.<br />To understand the work process of the various industrial activities.<br />To know the contribution of the owner, managerial staff and the <br />most significant workers- without whom the no work can be done and the unit cannot achieve its goals.<br />To develop a logical process of understanding for carrying out similar activities in future.<br />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.<br /> 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.<br /> <br />ACKNOWLEDGEMENT<br />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.<br />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. <br />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.<br />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.<br /> <br />TABLE OF CONTENT <br /> <br /> PARTICULARS PAGE NO.<br />CERTIFICATE1<br />EXECUTIVE SUMMARY2<br />ACKNOWLEDGEMENT3 <br />CHAPTER 1: INTRODUCTION5<br /> 1.1Definition of Small Scale Industries5<br /> 1.2Background7 <br /> 1.3Small Industry Development Organisation12 <br /> 1.4Role of SSI in Indian Economy16 <br /> 1.5Research Methodology17<br /> 1.6The Case for Small Scale Industries18 <br /> 1.7SSIs Mission Statement22<br /> 1.8SSI Policies23<br /> 1.9SSI Schemes26<br /> 1.10SSI Scenario in Gujarat28<br /> <br />CHAPTER 2: DIFFICULTY FACED BY THE ENTERPRISE36 <br />CHAPTER 3: USE OF INFORMATION TECHNOLOGY38<br />CHAPTER 4: FINANCIAL STRUCTURE40<br />CHAPTER 5: ACCOUNTABILITY AND TRANSPARENCY43<br />CHAPTER 6: ANALYSIS48<br />CHAPTER 7: CONCLUSION102<br />BIBLIOGRAPHY108<br />CHAPTER: 1<br /> INTRODUCTION<br />1.1 DEFINITION OF SMALL SCALE INDUSTRIES<br />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 <br />{1} those using power but employing less than 50 people <br />{2} those not using power but employing less than 100 people.<br /> 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 <br />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.<br />1.2 BACKGROUND<br />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.<br />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:<br /><ul><li>adequate credit from financial institutions/ banks
  2. 2. funds for technology up gradation and modernization
  3. 3. integrated infrastructural facilities;
  4. 4. modern testing facilities and quality certification laboratories;
  5. 5. access to modern management practices and skill up gradation through appropriate training facilities;
  6. 6. assistance for better access to domestic and export markets; and
  7. 7. 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.</li></ul>1.2.2 ORGANISATIONS OF THE MINISTRY<br />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).<br />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.<br />1.2.3 SMALL INDUSTRY DEVELOPMENT ORGANISATION (SIDO)<br />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).<br />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.<br />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.<br />1.2.4 NATIONAL SMALL INDUSTRIES CORPORATION LTD. (NSIC)<br />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. <br />The Corporation, an ISO: 9001-2000 Company has also set up a number of turnkey projects in many developing countries.<br />1.2.5 SMALL SCALE INDUSTRIES BOARD<br />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 <br />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.<br />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.<br />1.3 SMALL INDUSTRY DEVELOPMENT<br />ORGANISATION (SIDO)<br />1.3.1 ROLE AND FUNCTIONS<br />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<br />Stations (FTSs), 1 Hand Tool Design Development and Training Centre and 2 Small Entrepreneur Promotion and Training Institutes (SEPTIs).<br />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<br />1.3.2 SMALL INDUSTRY DEVELOPMENT ORGANISATION (SIDO)<br />Development of the SSI, the TRCs have started concentrating on clusters of small industries for delivery of appropriate technology related services.<br />Besides, there are 18 autonomous bodies operating with the SIDO, which offer to the SSI an array of services in product<br />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.<br />1.3.3 The major activities of SIDO include the following:<br /><ul><li>Advising the Government in formulation of policies and programmes/projects/schemes for the promotion and development of the SSI.
  8. 8. Providing techno-economic and managerial consultancy, common facility and extension services to the SSI.
  9. 9. Providing support for technology up gradation, modernization, quality improvement and infrastructure facilities.
  10. 10. Assisting the SSI in human resource development through training and skill up gradation.
  11. 11. Providing economic information services to the SSI.
  12. 12. Maintaining a close liaison with the Central Ministries, Planning Commission, State Governments, Financial Institutions and other organisations concerned with the development of the SSI.
  13. 13. Evolving, implementing and coordinating policies and programmes for development of the SSI as ancillaries to large and medium industries.
  14. 14. Providing testing and calibration services to the SSI.</li></ul> Implementing / monitoring the flagship schemes of:<br /><ul><li>Credit Guarantee Fund
  15. 15. Credit Linked Capital Subsidy for Technology Up gradation
  16. 16. Small Industries Cluster Development Programme</li></ul>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.<br />1.3.4 PACKAGE FOR PROMOTION OF MICRO AND SMALL ENTERPRISES<br />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.<br />1.3.5 FISCAL CONCESSIONS TO THE SSI SECTOR<br />GENERAL SSI EXEMPTION SCHEME<br />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.<br />1.4 ROLE OF SSI IN INDIAN ECONOMY<br />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<br />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 <br />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.<br /> <br />1.5 RESEARCH METHODOLOGY<br />Objectives of the Project:<br />To study about the SSI sector in Gujarat<br />To study the present scenario of SSI and also to know problems & future of SSI in Gujarat<br />To study the market of SSI<br />To determine the factors affecting the SSI<br />To study and analyze the reach of SSIs network <br />Sample Size:200<br />Sampling Method:Random Sampling Method<br />Primary Data Sources:Questionnaire<br />Interviews<br />Focus Group<br />Secondary Data Sources:Internet<br />Magazines & News Papers<br />Books<br />Location for Survey: Gandhinagar<br /> Ahmadabad<br /> Ankleshwar<br />1.6 THE CASE FOR SMALL SCALE INDUSTRIES<br /> <br /> 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:<br />The employment argument<br />The equality argument<br />The latent resources argument<br />The decentralization argument<br />1.6.1 The employment argument<br /> 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.<br /> 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 <br />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.”<br /> <br /> <br />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. <br />1.6.2 The equality argument<br />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. <br /> <br /> 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.<br />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. <br />1.6.3 The latent resource argument <br /> 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. <br />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.<br /> <br />1.6.4 The decentralization argument<br /> 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.<br />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. <br />1.7 SSI's MISSION STATEMENT<br />Early on, SSI set forth objectives to guide its core business strategy. These include:  <br />Developing innovative alternative strategies which can exceed clients' objectives in any market environment over the long term; <br />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 <br />Creating a legacy that underscores our commitment to client service and long-term relationships.   <br />These objectives continue to remain the foundation of SSI philosophy.<br />1.8 SSI POLICIES<br />The government its policies towards the to SSI on 6th Aug, 1991 the main features were <br />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. <br />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. <br />1.8.1 Promotion of entrepreneurship<br />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. <br />1.8.2 Government Policies and Schemes<br />EXIM Policy for Small Scale Sector <br />Export Promotion Programs & Measures <br />National Small Industries Corporation <br />1.8.3 General <br />Policy of Reservation <br />Licensing Policy <br />Trade Policy - Imports & Exports <br />Price & Purchase Preference Policy <br />Labour Policies <br />Rehabilitation of Sick Units <br />1.8.3 Priority Sector <br />Policy for Tiny Sector, Cottage & Village Industries, Handicrafts, Khadi & Handlooms <br />Development of Backward Areas <br />1.8.4 Funding & Finance <br />Policy of Fiscal Support <br />Policy of Priority Credit <br />Equity Participation <br />OTC Exchange <br />1.8.5 Modernization & Training <br />Quality Certification Schemes (ISO9000) <br />Application for the Reimbursement of Certification Charges for acquiring ISO-9000 Certification (or its equivalent) <br />Policy of Technology Up gradation (UPTECH) <br />Technology Bureau for Small Enterprises <br />Policy for Development of Information Technology <br />1.8.6 Energy & Environment<br />Pollution & Control Measures <br />Environmental Control <br />1.9 SSI SCHEMES<br />To meet the challenges of international competition and to promote exports of SSI products, following promotional schemes are also being implemented.<br />Single Window Scheme <br />Industrial Estates <br />National Awards for Outstanding SSI Entrepreneurs <br />National Awards for Quality Products in Small Scale Sector<br />Prime Minister's Rozgar Yozna <br />Self Employment Scheme for Educated Unemployed <br />Assistance to SC/ST Entrepreneurs <br />Excise Exemption Scheme Tax Holiday <br />Venture Capital <br />National Equity Fund Scheme <br />Factoring Services <br />Other SIDBI Schemes <br />NSIC Schemes <br />Technology Development Fund Schemes <br />Testing Centre<br />Integrated Infrastructure Development <br />Training Infrastructure <br />Growth Centre <br />Technology Development & Modernization <br />Quality Certification Schemes <br />Modernization of Small Scale Industries <br />Ancillary Development <br />Small Entrepreneur Management Assistants Scheme <br />Entrepreneurship Development Programme <br />Management Training Programme <br />Skill Development Programme <br />Pollution Control Schemes <br />Energy Conservation Schemes <br />Alternative Energy Use Schemes <br />Ozone Depleting Substances Phase-out <br />1.10 SSI SCENARIO IN GUJARAT<br />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 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.<br />342900403860<br />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:<br />1.10.1 List of Industries in SSI<br />361950153035<br />Sr. NO.Type of Industries1 Motor rewinding 2Workshop for vehicle repairs3Engineering workshop, machine shop, fabrication shop, press shop4Pump and motor assembling units5Cycle assembling units6Units fabricating tractor trailer, agricultural equipment etc.7Units fabricating stove, cooker, kitchen equipment without electroplating8Units fabricating nails, pegs, nuts, bolts etc.9Units manufacturing utensils of aluminum, steel, copper and brass10Casting units using pit furnace11Units fabricating iron doors and shutters12Units fabricating steel furniture without electroplating13Units manufacturing weighting machines14Units fabricating drawing, surveying and scientific equipment15Units making musical instruments16Units making sports gear17Units making toys18Units making stationery items like paper pins, " U" pins, pencils etc.19Units binding books, making file covers, card board boxes, envelopes, paper bags from paper or board20Units making paper napkins, dishes, labels, tallow, paper rolls21Units making wooden doors and windows22Units making wooden furniture23Units making wooden boxes24Units assembling conditioners, air coolers, water coolers, heater, electric irons, etc. 25Units manufacturing electric fans, tube lights, bulbs, lamps, fuses, switches, etc.26Units casting cement concrete spun pipes, mosaic tiles, cement concrete poles27Units casting cement concrete grills28Units making umbrellas and rain coats29Units making garments by stitching from ready cloth30Units making hosiery items31Weaving units with handlooms and power looms32Yarn twisting, crimping and text rising units33Fiber glass molding units34Units manufacturing plastics items like buckets, tumblers, footwear, brushes, ropes35Units producing plastics items through fabrication, extraction, injection molding methods36Units manufacturing tubes, pipes, boxes, tanks, etc. from plastics HDPE, LDPE, PVC37Units making leather items like bags, purses, wallets etc. from ready leather38Units making tooth powders, tooth pastes, shampoos, nail polishes, hair oils through mixing only39Units making candles40Units making agarbattis41Units making detergent powders, soaps etc. through mixing only42Cold storages43Domestic flour mills44Units grinding corianders, Cummins, turmeric’s, salts, spices45Tobacco drying sheds46Saw mills47Printing presses48Pulse mills49Oil expellers50Ice factories51Poultry farms52Units manufacturing glass frames for spectacles53Diamond industries54Induction furnaces55Units manufacturing tablets and capsules by mixing only56Units manufacturing biscuits unto 100 kg per day only57Units manufacturing pickles/pappads upto 500 kg per day only58Assembling units for TV, VCR,VCP, radio sets, tape recorders etc.59Units manufacturing rubber parts, rubber crocks, surgical gloves60Units retreading tyres61Units involved in cutting, polishing and finishing of stones, marbles and granites62Units involved in finishing of printed cloth by felt finish or rolls process, sentering63Cotton ginning and pressing units64Steel rerolling mills where M S bars, angles, CTD round bars, rectangle bars, section bars etc. are prepared without pickling process65Tyre and rubber industries66Oxygen gas units67Jaggery(Gur) (from sugarcane) producing units68Tobacco gutka manufacturing units69Ceramic cup saucers making units70Glazed tiles producing units (provided water is recycled)71Units manufacturing ceramic sanitary ware72Units producing white coal/biocoal from agriculture waste73Units producing bioferlizers only from agriculture waste mix74Units producing cattle fodder by mixing75Units producing acetylene gas76Salt pans by solar evaporation77Ceramic 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 height78Computer software units79Perfumes (Attar) manufacturing units by mixing process80Units producing Limestone masonry81Units manufacturing domestic flour mill82Units manufacturing Mamara83Computer & Computer stationery84Gems & Jewelry units85Units manufacturing plastic bags86Manually preparing silver & golden ornaments87Units making printing blocks88Units making furniture from bamboo89Units assembling domestic electrical appliances90Units fabricating aluminum doors, windows & furniture91Tailor machine repair or its manufacturing units92Ball pen refill93Button & hooks manufacturing units94Bicycle chain & locks manufacturing units95Embroidery96Photo frame, Mirror frame97Flower pot, Flower vase98Units fabricating fork-knife, scissors99Unit installing 50 KVA DG set<br />1.10.2 Cluster<br /> 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:<br /> Type of ClusterLocationCommon SaltAnjar, 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 <br />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. <br />CHAPTER: 2<br />DIFFICULTY FACED BY THE ENTERPRISE<br />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.<br />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:<br />The production problems include raw material availability, capacity utilization, and storage problems.<br />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.,<br />The financial problems include investment risks, procurement of loan from banks and their repayment, meeting day to day expenses and the like<br />The labour problems include highly demanding employees, absenteeism lack of skilled workers and transportation of workers.<br />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.<br />Personal problems like spending less time with family and for the whole sweat exerted the rewards have not been favorable<br />CHAPTER: 3<br />USE OF INFORMATION TECHNOLOGY<br />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. <br />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.  <br />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. <br />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. <br />CHAPTER: 4<br />FINANCIAL STRUCTURE<br />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. <br />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.<br />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<br />Financial Assistance <br />Pre and Post Shipment finance at concessional rate of interest <br />Financial assistance for procurement of indigenous and imported raw material <br />Financial assistance for up gradation and modernization of SSI unit <br />Assisting in the process of claiming exports incentives<br />4.1 Financial Support Measures<br />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.<br />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.<br />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.<br />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.<br />CHAPTER: 5<br />ACCOUNTABILITY AND TRANSPARENCY<br />5.1 Significant Accounting Policies<br />Convention<br />Basis of Accounting<br />Fixed Assets<br />Depreciation<br />Revaluation of Assets<br />Investments<br />Inventories<br />Sales<br />Investment Income<br />Proposed Dividend<br />Retirement Benefits<br />Lease Rentals<br />Research and Development<br />Taxes and Income<br />Foreign Currency Translation<br />Claims<br />Segment Reporting<br />Financial and Management Information Systems<br />5.1 Accounting Policies<br />5.1.1 Basis of Preparation:<br /> <br />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:<br />5.1.2 Fixed Assets and Deprecation:<br />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.<br />5.1.3 Investments<br />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.<br />5.1.4 Inventories<br />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.<br />5.1.5 Foreign Currency Transaction<br />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.<br />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. <br />5.1.6 Sales<br />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.<br />5.1.7 Income –Tax<br />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.<br />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.<br />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.<br />CHAPTER: 6<br />ANALYSIS<br />6.1 List of Enterprises<br /> ENTERPRISES Address1Prince EnterprisesDakhatrana, Near post office, Kutchh-3706152RJB firmGanga Naka, Anjar (kutch)-3706153Creative Pumps Pvt. Ltd.Near Sabar Dairy,Talod Road , Himatnagar. 45 Star Agriculture Pvt. Ltd.B-37, Sec-25 ,GIDC, G'nagar.5Rising Star EnterpriseB-104, GIDC, Sec-25, G'nagar.6Uma Industries Plot-803/2, GIDC, Sec-28,G'nagar.7Gayatri FabricationL-801/10,GIDC,Sec-20,Ganghinagar.8Ambika EngineeringK-1,802/14,Sec-28,GIDC, G'nagar9Khodiyar Fabrication WorksPlot-605, GIDC,Sec-28,G'nagar.10Stone Fielde-12,gidc,electronic estate, Gandhinagar.11Innovision System12omani lens67/1,gidc,sector-26,gandhinagar13Sidhheswari industriesc-1,b-7,46/2,gidc,kalol14Bharti enterprise44/4,gidc,kalol15Parth product48/1,gidc,kalol16Salus pharmaceutical105,gidc,himmatnagar17Kishan and companyplot-88,ranasan GIDC ,vijapur18Gokul Enterpriseplot-92,gidc,ranasang,vijapur19Sidhhi plasticplot-39,gidc,motipura,himmatnagar20Yogi pulse millplot-117,gidc,himmatnagar21Panchal Steel IndustriesSec-28,gidc,G'nagar22Diamond PlasticE-39,Sec-26,gidc,G'nagar.23Om Shanti HandicraftSec-28,gidc, Plot-902/13 ,G'nagar24Punam Steel IndustriesE-87,Sec-26, gidc,G'nagar.25Maruti Timbers Plot-903/9,gidc,Sec-28,G'nagar.26Space Trans Pvt. Ltd. e-101,gidc, Sec-26,G'nagar.27Shree Krishna Furniture Works902/ k-1-6,Sec-28,gidv, G'nagar.28Electronics Pvt. Ltd.E-144,gidc, Sec-26,G'nagar.29Refrahold plot-e/86,Sec-26,gidc,G'nagar.30Kaival Spinner48/3,&47/1,gidc,kalol.31The Bhagyoday Soap Factory131,gidc,kalol.32Kamal Kapoorc-1 ,15 ,gidc, kalol.33Metal Strips1/6,gidc,kalol.34Himalay Wood Craftplot-c1,41/3,gidc,kalol.35Mahesh Industries36,gidc,kalol.36Raj Producta-135,gidc,motipura, Himatnagar.37Hetal IndustriesVijapura shed , Nr.sapsna ston,gidc,Himatnagar38Paresh Industries83,gidc,himatnagar.39Astron Group of co.96,gidc,Himatnagar.40Subhagya Agro EquipmentPlot-283,DHANDHA, Idar Road , Himatnagar.41Sabar Agro Industries122,gidc,motipura, Himatnagar.42Yogi Agro Industriesplot-117,gidc,himatnagar43Shiv Shakti Plus Mill126,gidc,Himatnagar.44Umiya Industriesplot-106,gidc,ransan,Vijapur.45Mahadev Timer Mart`plot-92-94,gidc,ranasan,Vijapur.46MANSI PLASTICC.1, 407, GIDC, MANSA47SAYTAM INDUSTRIES40/B, KARNAVATI ESTATE, A'BAD48GANESH INDUSTRIES310/A, GIDC, MANSA49SOHAM INDUSTRIES310/B, GIDC, MANSA50GANDHI COTTON INDUSTRIES PVT. LTDA-6P-1, DHOLAKUVA, G'NAGAR, MANSA HIGHWAY51NIDHI INDUSTRIESI-521/2, GIDC ESTATE, MANSA52OMKAR INDUSTRIESI-518/2, GIDC ESTATE, MANSA53CORE ENGINEERSE-77, GIDC, SECTOR 26, GANDHINAGAR54KESHRINANDAN GRANITEOFFICE-7, GIDC, SECTOR 28, GANDHINAGAR55OM WOODLANDE-232, SECTOR 26, GIDC, GANDHINAGAR56SPM ELECTRONICS AND SYSTEMSE-201, GIDC, SECTOR 26, GANDHINAGAR57SHAEE GANESH TIMBER MART903/1, K-1, GIDC, SECTOR 28, GANDHINAGAR58BHARAT STEEL & WIRE408, GIDC, MANSA59DIAMOND CHAIN WORKERS1/517, GIDC, MAMSA60MOON EXTRUSIONS PVT. LTDA/212, GIDC, MANSA61NAVIN PLASTIC INDUSTRIESC-1/79, GIDC-2, MAHESANA62VISHVASH BIO-JINETIC PVT. LTD501-C, GIDC, MANSA63SHUBH SEEDS LTD603, GIDC, MANSA64RAVI SEEDS CORPORATIONC/1, 405/406/311, GIDC, MANSA65BAJRANG ENGINEERING INDUSTRIESA-213,GIDC, MANSA66SILICON INDUSTRIES601/1, GIDC, MANSA67DIVYAJYOT AGRICULTURE PVT. LTDIDAR ROAD, POO.DHANDHA, AT & PO. HIMATNAGAR68CHANDRA AGRI. IMPLIMENTS PVT. LTDBH. GIDC MOTIPURA, HIMATNAGAR69UMA TRANSFER AND ENGINEERING103/104, GIDC ESTATE, HIMATNAGAR70PARTH INDUSTRIES113, GIDC, MOTIPUR, HIMMATNAGAR71YOGI PULSE MILL117, GIDC ESTATE, MOTIPURA, HIMMATNAGAR72PARMESHWARI INDUSTRIES201, GIDC, MANSA73RUSHIL DÉCOR LTD608, GIDC, MANSA74REGENT CIRAMIC & SANETORY WAREGIDC, MANSA75MAHESHWARI PLASTIC INDUSTRIESC-502, GIDC, MANSA76DHARTI STONE INDUSTRIESGIDC, MAMSA77MARUTI AGRICULTURE WORKERS412, GIDC, MANSA78ARJUN FARMS PVT. LTD305/2, GIDC ESTATE, MANSA79INDIA AGRICO306/3, GIDC, MANSA80MAYUR STEEL183, GIDC-1, MEHSANA81INDIA AGRO INDUSTRIESNR. GIDC, VISNAGAR ROAD, MANSA82GANGA HYBRID SEEDS COMPANYC-1, 415, GIDC, MANSA83MUKTANAND SEEDS & PESTISIDESGIDC, MANSA & OFFICE 8, SARDRA PATEL MARKET, MANSA84NAVBHARAT PACKAGING COMPANY207, GIDC, MANSA85SAHJANAND AGRICO520/2, GIDC, MANSA86ASHWAMEGH WIRE INDUSTRIESC-1, 416, GIDC, MANSA87JALDHARA PLASTICSC-1, 504, GIDC, MANSA88SHRI RADHAKRISHNA INDUSTRIES306, 3-A, GIDC, MANSA89KANAN CASTINGS PVT. LTD410, GIDC, MANSA90MODERN POLYMER INDUSTRIES209, GIDC, MANSA91KABIR SEEDS413, GIDC, MANSA92UMA METAL205, GIDC, MANSA93SAIBABA PIPES PVT. LTD219, GIDC, MANSA94GAYATRI SEEDS CORPORATION308, GIDC, MANSA95VARDHMAN MARBLES302, GIDC, MANSA96Online Power Care Ltd.306,kalash, 2, Navrangpura ,Ahmadabad.97Viral Control private ltdB-29,gidc,gandhinagar98Shiv Shakti tire retardershalvad road, dhangadhra99chain electronic pvt ltdd-22,gidc,sector-25,gandhinagar100HP ElectronicB-141,sector-25, Gandhinagar101PETROTEC RETAIL PETROLEUM EQUIPMENT(INDIA)PRIVATE LIMITEDE/109-110,GIDC ELECTRONIC ESTATE,SECTOR 26102KRISHNA ENTERPRISEPLOT NO.E-126,GIDC,SECTOR-26,G'NAGAR103KEPREJ POWERTRONICSE-138,GIDC ELECTRONIC ESTATE,SECTOR 26104HARIOM PLOYMERSE-127,GIDC ELECTRONIC ESTATE,SECTOR 26105SHRIJIG.P. KIRTIDHAM COMPLEX,INCOMTAX A'BAD106PAAVAN ELECTRONICS INDUSTRIESE-54,GIDC ELECTRONIC ESTATE,SECTOR 26107SHREE UMIYA ELECTRONICSE-41,GIDC ELECTRONIC ESTATE,SECTOR 26108VIMAL ELECTRONICSE-49,GIDC ELECTRONIC ESTATE,SECTOR 26109REGENT CONTROL SYSTEME-83,GIDC ELECTRONIC ESTATE,SECTOR 26110DUTT ELECTRONICSB-167,GIDC ELECTRONIC ESTATE,SECTOR 25111SAMAYB-803,GIDC,SECTOR 28112HIREL CIRCUIT PVT.LTDB-132,GIDC ELECTRONIC ESTATE,SECTOR 26113SHIVAM TREADERSPRAJAPATIVAS, RANDHEJA,G'NAGAR114PATHFINDER WOODPLASTK-1,903/5, GIDC,SECTOR 28,G'NAGAR115ASUTOS&ARYAN ENTERPRISEK-1,902/10, GIDC,SECTOR 28,G'NAGAR116S.R.TRADING CO.PLOT NO.201,GIDC,SECTOR-28,G'NAGAR117MARUTI STEEL WORKPLOT NO.E-203,GIDC,SECTOR-26,G'NAGAR118JAMNA TILESK-1,902/16, GIDC,SECTOR 28,G'NAGAR119UMA TILESPLOT NO.803/2,GIDC,SECTOR-28,G'NAGAR120DHANRAJ ELECTRONICSE-45,GIDC ELECTRONIC ESTATE,SECTOR 26121SHUKAN PLYWOOD&HARDWARE32,SUPAR MALL-1,INFOCITY,GH-0CIRCLE,G'NAGAR122RAJAJI NAMKINK-1,802/23,GIDC,SECTOR-28,G'NAGAR123KIRAN ENTERPRISEB-38,GIDC ELECTRONIC ESTATE,SECTOR 25124H.A.T124.CORPORATIONE-208,GIDC ELECTRONIC ESTATE,SECTOR 26125SPACE TRANS PVT.LTDE-101,GIDC ELECTRONIC ESTATE,SECTOR 26126CAPITAL OIL & GREASE COE-53,GIDC ELECTRONIC ESTATE,SECTOR 26127OUM ELECTROMECHE-47,GIDC ELECTRONIC ESTATE,SECTOR 268128YOGM SALESB-50,GIDC9ELECTRONIC ESTATE,ECTOR 25129LUNAR ELECTRONICSB-48,GIDC ELECTRONIC ESTATE,SECTOR 25130PATEL STILL WOOD INDUSTRIESE-78,GIDC ELECTRONIC ESTATE,SECTOR 26131A.D ENTERPRISESPLOT NO.E-99 G.I.D.C. SEC-26 GANDHINAGAR132ATLAS INDUSRTIESPLOT NO.E-14/1 G.I.D.C.2 DEDIYASAN MEHSANA133PATEL SECURITIESB-57 VAMAL SUPER MARKET MEHSANA134SAGAR RUBBER PRODUCT PVT .LTDPLOT NO.E-143 G.I.D.C.2 DEDIYASAN MEHSANA135ATLAS INDUSRTIESPLOT NO.E-317 G.I.D.C.2 DEDIYASAN MEHSANA136DEEP INDUSRIES LTD.F-20 WIDE ANGLE COMPLEX MEHSANA137MOONLIGHT CONSULTANTSG-37 WIDE ANGLE NAGALPUR MEHSANA138ATLAS EQUPMENTSPLOT NO.E-317 G.I.D.C.2 DEDIYASAN MEHSANA139KESAR ENTERPRISEF/2 PANDYABA COMPLEX NAGALPUR MEHSANA140ACCUMAX BUSINESS CORPORATIONB-94 ELECTRONICS G.I.D.C. SEC-25 GANDHINAGAR141PRIMA CHEMICALSC-1, 343, G.I.D.C, ESTET, ODHAV, AHEMEDABAD.142ANIL METAL INDUSTRIES439/2.OPP,ODHAVPOLICE CHOKY, GIDC, ODHAV, A'BAD143DARPAN DENIMS PVT.LTD333/334,G.I.D.C,NEW,WATERTANK,ODHAV,A'BAD144PIONEER ENGINEERING SERVICES428.G.I.D.C.ODHAV A'BAD145MORDERN METAL INDUSTRIESC-1/345.G.I.D.C.ODHAV A'BAD146AESHA BEARINGSG-49 ,RAVI COMPLEX, OPP.G.I.D.C. BUS STOP,ANKLESHWAR147ELEMBICA SERVICES340, G.I.D.C. NR. DEVERSON, ODHAV, A'BAD148DIPCO ENGINEERING WORKS339,340/P OPP. PRIMA CHEMICALS, GIDC A'BAD149YASHWANT INDUSTRIES440/7.A, GIDC, ODHAV A'BAD150SHRI NAVKAR METAL LTDPLOT NO.342/A,GIDC ODHAV, A'BAD151SIDDHI SURGICALPLOT NO. 156/B.GIDC,SECTOR 25 GANDHINAGAR152SHREE UMIYA ELECTRONICS CO.E/41.GIDC,(ELECTRONICS),SEC.26,GANDHINAGAR-382944153APEX ELECTRONICSE/108/A,GIDC ELECTRONICS ESTATE,NR.DEVI ELECTRONICS,SEC-26,GANDHINAGAR-382028154RAJESH ELECTRIC CO.PLOT NO. 906/9 K-1, GIDC. NEAR D.S.P OFFICE, SEC-28 GANDHINAGAR-382028155YOGI WOODEN WORKESPLOT NO. 906/7,K-1,GIDC,NEAR GOKUL ICE CREAM, SEC.28, GANDHINAGAR156JAYANT CIRCUITSPLOT NO. B-63, GIDC, ELECTRONICS ESTATE, OPP. CIRCUIT SYSTEM. SEC.25,GANDHINAGAR-382044157LAXMI REFRIGERATION AND ELECTRICAL WORKSPLOT NO.B-89.NR MCBS,GIDC ELECTRONICS ESTATE,SEC-25,GANDHINAGAR-382023158SURWIN TECHNOLOGYC-61/62,SHREENEMI,GIDC HOUSING PLOT,SEC-26,GANDHINAGAR-382044159MODI SORTEXKHALI CHAR RASTA,HIGHWAY,SIDHPUR-384 151.DIST.PATAN160COGENT BIOTECH INDIA LIMITEDPLOT NO. 902/13, GIDC,SEC-28 GANDHINAGAR161H.P.ELECTRONICSPLOT NO.B-141,GIDC SEC-25 G" NAGAR162CADRE AGRO PVT. LTD.PLOT NO-902/12 GIDC SEC-28 G'NAGAR163CIRCUITRONIX MANU. OF C.B.PLOT NO-B-90 GIDC SEC-25 G'NAGAR164ARZOO SORTEXSTATE HIGHWAY KHALI SIDDHPUR165PANCHSHIL BRIEKS &SONE SUPPLIERMUMANVAS,SATALASANA,MEHSANA166SHIVSHAKTI TIMBAR MARTPLOT NO-906/21 K-1 SEC-28 GIDC G'NAGAR7167HITECH OPTHLMIC SYSTEM PVT. LTD.E-222 SEC-26 GIDC G'NAGAR168ARBUDA INSTRUMENTSE-58 GIDC SEC-26 G'NAGAR169VARDHMAN ELECRO-MECHB-87-88 GIDC SEC-25 G'NAGAR170S.B.ELECTRONICSB-105 GIDC SEC-25 G'NAGAR171AMEE STEEL INDUSTRIESPLOT NO-273 GIDC RANASAN VIJAPUR172SAGAR INDUSTRIESPLOT NO 261 RANASAN VIJAPUR173ARBUDA STEEL CORPORATIONKALOL HIGHWAY ROAD MANSA174JAY AMBE LAMINATIONE-61 SEC-26 G'NAGAR175AMBIKA PUMP SERVICEPRTAPNAGAR MANSA176AMBICA DIAMOND PVT. LTDNR.RAILWAY STATION VIJAPUR177AES AUTOMATION ENG. SERVICESB-83 GIDC G'NAGAR178AYUSH WORLD BEVERAGE PLOT NO 126 GIDC VIJAPUR179AGRO SERVICE CENTERASHRAM CHOKDI VIJAPUR180SHREE HARI OIL INDUSTRIESPLOT NO 261 RANASAN VIJAPUR181PALIKHANDA RICE MILLMODASA ROAD, BAYAD, DIST.-S.K.182PURITY FLEXPACK LTD.AT- VANSETI POST- TAJPURA,DIST-PMS183TRAKTRONIKSB5859,GIDC,SE.-25, G'NAGAR184CENTURY TILES LTD.BLOCK NO. 210 AT-GADHODA, DIST-S.K.185ASIAN GRANITO INDIA LTD.AT-DALPUR TA-PRANTIJ DIST-S.K.186MARUTI ENGG.WORKSAT-BIBIPURA,TA-BAYAD,DIST-S.K.187RAJ QUORY WORKSAT JASHVANTPURA, TA-DHANSURA,DIST-S.K.188RAJHANS OIL MILLAT-VANTADA,TA-BAYAD,DIST-S.K.189NEW BHOLENATH TIMBER MARTOPP.AASIANA HOTEL, HALOL, DIST-PMS.190CHEMO TRADE ORGANIC2006 D3,GIDC.ESTATE ANKLESHVAR191ANKUR INDUSTRIESSHED NO.C-1/3913,GIDC ESTATE,ANKLESHWAR-393002192AKRUTI INDUSTRIESSHED NO.C-1,B-2010,GIDC,ANKLESHWAR-383002193LEO SALES CORPORATIONG-61,RAVI COMPLEX,VALIA CROSS ROAD,G.I.D.C.,ANKLESHWAR194ANAND PETROCHEM PVT LTD.SHED NO-A-2/5513,ROAD NO.3,G.I.D.C.ANKLESHWAR195SHREE SURYA WOOD INDUSTRIESSHED NO.A1/320, GIDC, ASIAN PAINT CHOKDI,ANKLESHWAR.196KANGAROO INDUSTRIESPLOT NO.1806-1807,G.I.D.C.INDUTRIAL ESTATE, ANKLESHWAR197CARDKEM PHARMA PVT. LTD.2301-02,GIDC ESTATE,ANKLESHWAR, BHARUCH198P.B.ENTERPRISES5-PRIYA COMPLEX NR.ASIAN PAINT CHOWKDI GIDC ANKLESHWAR 199KIRSHNA METAL & TUBESPLOT NO 732/A, SHOP NO G/11/ARUNODAY COMPLEX GIDC ANK.200SOLIYA TRADE CENTERPLOT NO 5-10,ARUNODAY COMPLEX GIDC ANKLESHWAR<br />Q1. What are the difficulties during Initiation of business? <br /> <br />Introduction: <br /> 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.<br />Description: <br />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.<br />Theory: <br /> 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.<br /> 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.<br />Table: <br />OptionNo. of companiesPercentageA9648%B4422%C4623%D3718.5%<br /> <br />Conclusion: <br />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.<br />Q2. Years of incorporation<br />Introduction:<br />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.<br />Description:<br />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:<br />Table: <br />RangeNo. of CompaniesPercentage1960-7921%1979-892412%1989-998140.5%1999-099346.5%<br /> <br />Conclusion:<br />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.<br />Q3.Type of organisation.<br />Introduction: <br />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. <br />Description: <br />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. <br />Table:<br />OptionNo. of CompaniesPercentage(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%<br /> <br /> <br />Conclusion:<br />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. <br />Q4.Type of Business.<br />Introduction:<br />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. <br /> Description:<br />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.<br />Table: <br />OptionNo. of CompaniesPercentageTrading4221%Manufacturing13869%Both2010%<br /> <br />Conclusion:<br />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. <br />Q5.Is there any change in the type of organisation?<br />Introduction:<br />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. <br />Description:<br />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. <br />Table: <br />OptionNO. of CompaniesPercentageYes3718.5%No16381.5%<br /> <br />Conclusion:<br />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. <br />Q6.How much regulatory permission is required to initiate the business?<br />Introduction:<br />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:<br /><ul><li>Local municipality and panchayat
  17. 17. Registrar of partnership/ society/ company
  18. 18. Tax Authorities
  19. 19. Pollution control board</li></ul>Description:<br />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.<br />Table: <br />OptionNo. of CompaniesPercentage(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%<br /> <br />Conclusion:<br />In our research all companies are take permission from government, which are good for the society or customers. <br />Q7. Was there any difficulty during initiation of business?<br />Introduction:<br />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.<br />Description:<br />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. <br />Table:<br />OptionNo. of CompaniesPercentageYes10351.5%No9748.5%<br /> <br />Conclusion:<br />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. <br />Q8.Annual cost of regulatory compliance in running business.<br />Introduction:<br />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. <br />Description:<br />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. <br />Table:<br /> <br /> RangeNo. of CompanyPercentage1000-1lakh12160.5%1lakh -20lakh3316.5%20lakh-40lakh115.5%40lakh-60lakh126%60lakh-80lakh00%80lakh-1crore21%<br />Conclusion:<br />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. <br />Q9. Is information on different promotional schemes of the Government easily available?<br />Introduction:<br />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. <br />Description:<br />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. <br />Table: <br />OptionNo. of CompaniesPercentageYes10653%No9447%<br /> <br /> <br />Conclusion:<br />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. <br />Q10. Number of computers the enterprise uses. <br />Introduction:<br />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. <br />Description:<br />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.<br />Table:<br />RangeNo. of CompaniesPercentage 0115.5%1-1018165.5%11-2042%21-3021%31-4010.5%41-5010.5%<br /> <br />Conclusion:<br />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.<br />Q11.Is the Enterprise allowed to file Online Information to the Regulatory Authority<br />Introduction:<br />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. <br />Description:<br />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. <br />Table: <br /> <br />OptionNo. of CompaniesPercentageYes10854%No9246%<br /> <br />Conclusion:<br />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.<br />Q12.Initial Capital of the Enterprise.<br />Introduction:<br />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. <br /> Description:<br />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. <br />Table:<br />RangeNo. of CompaniesPercentage0-50thd63%50thd-1lk63%1lk-50lk11859%50lk-1cr21%1cr-50rc6532.5%50cr-100cr21.10%100cr & above10.50%<br /> <br />Conclusion:<br /> 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.<br />Q13.Present Capital of Enterprise.<br />Introduction:<br />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. <br />Description:<br />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. <br />Table:<br />RangeNo. of CompaniesPercentage0-50thd73.5%50thd-1lk10.50%1lk-50lk7236%50lk-1cr94.50%1cr-50cr11055%50cr-100cr00%100cr & above10.50%<br /> <br /> <br />Conclusion:<br />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. <br />Q14.Audited Profit/ loss of the business.<br />Introduction:<br />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. <br />Description:<br />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.<br />Table: <br /> Range No. of CompaniesPercentage1000-1lakh 115.5%1lakh-20lakh 13668%20lakh-40lakh 94.5%40lakh-60lakh 52.5%60lakh-80lakh 10.5%80lakh-1crore 21%<br /> <br />Conclusion:<br />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.<br />CHAPTER: 7<br /> Conclusion<br />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.<br />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.<br />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.<br />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.<br />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.<br />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.<br />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.<br />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 <br />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.<br />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.<br />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 <br />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.<br />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.<br />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.<br />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 <br />90% of owners and managers of the SSIs are not professionally qualified and majority of the laborers are unskilled.<br />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.<br />In nutshell, the study turned out to be comprehensive, suggestive and path showing for the readers, researchers and government policy makers.<br />BIBLIOGRAPHY<br />Websites:<br /><br /><br /><br /><br />Newspapers:<br />Economics TIMES<br />Business Standard<br />Financial Express<br />Books:<br />Indian Economy ( Rudar Dutt & KPM Sundaram)<br /> <br /> <br /> <br />