Intership project report

“managerial aspect of working capital management”

AT

SHYAM COTON

Submitted by
DIXA [Link] (Enrolment NO: 23BM001UG00131)
(Course:BBA SEM :5 ),Harivandana college, Rajkot .)

Submitted to,
Department of Commerce and Management, Harivandana college,Rajkot

Guided by

Internal Guide, External guid,

[Link] D Sardhara Param varsani

Asst. professor, manager,

[Link] Commerce &Management

Harivandana College,Rajkot. Shyam cotton

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 DECLARATION

I am DIXA PARESHBHAI RAMANI. The student of

Harivandana collage, hereby declare that this report is my own
work and carried out under supervision and guidance of our
lectures and made as per the syllabus. So I would thankful to
university who has keep this product project report in syllabus.
That would be help me to get lots of knowledge about
entrepreneur and about how actually business running.

DATE: 26th may, 2025

PLACE: Jashapar, Jamnagar Sign
of student,

DIXA P. RAMANI

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 ACKNOWLEDGEMENT

A project Report is a part of our study as implied by

SAURASHTRA UNIVERSITY. As we know we daily study
theory but practical is more important to understand actual thing
of the that theory so after studied four semester now I have few
clear about business things so for the practical fulfills this project
would help me very much. I am feeling happy that I have pursued
B.B.A. course because by pursuing this course one become aware
of the practical aspect of life. I am also thankful to
SAURASHTRA UNIVERSITY for introducing this subject in
course. My special thanks to who have made a great effort for
making the training program smooth and easy going.

THANK YOU.

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 PREFACE

Practical is more important as theory without practical we are

not able to understand proper meaning of the thing which actually we
are wants to know. For example I studied till fourth semester if I have
just only theory knowledge about business then it is not enough but
practically it is necessary to have knowledge otherwise it would
useless.

If we don’t have practical knowledge then we are not able to

do an activities which we actually want so it is necessary to have
practical as well as theory knowledge about that thing.

“Practical activities are helps to make necessary correction

of our mistake.”

Practical study helps to arrange theory knowledge what thing is

necessary how to achieve how arrange that entire thing is done with
the help of arrangement of theory into some physical activities (i.e.
practice)

Thus practical training helps individuals of know he actual uses

and impaction of what he has gained from theoretical
[Link] theory knowledge remains useless.

So as the student of B.B.A. I also gets valuable opportunities to learn

the practically of the theories, which learn.

DIXA P. RAMANI

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 INDAX

Sr. Particulars Page no.

No.

GENERAL INFORMATION

1 1. INTRODUCTION 8-18
2. ABOUT COMPANY
3. ORGANIZATIONAL
INFORMATION(CHART)
4. VISSION AND MISSIONS
5. INFORMATION

PRODUCTION DEPARTMANT

2 1. INTRODUCTION 19-26
2. RAW MATERIAL
3. PRODUCTION PROCESS
4. MACHINERY

PERSONAL DEPARTMENTS

1. INTRODUCTION
3 2. EMPLOYEES AND WORKERS 27-37
3. WAGES
4. TRAINING AND DEVELOPMENT
5. WORKER FACILITIES

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 MARKETING DEPARTMENT

1. INTIODUCTION
2. SELLING PROCESS
4 3. DISTRIBUTION CHANNEL 38-44
4. PRICING OF PRODUCTS
5. TRANSPORTATION

FINANCIAL DEPARTMENT

1. INTRODUCTION
2. SOURCES OF CAPITAL
5 3. ACCOUNTING METHOD 45-53
4. CAPITAL STRUCTURE
5. WORKING CAPITAL
MANAGEMENT

6 S.W.O.T. ANALYSIS 54-58

7 FUTURE PLANS 59
8 CONCLUSION 60
9 BIBLIOGRAPHY 61
10 UNIT PICTURES 62-66

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 GENRAL
INFORMATION

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 COMPANY PROFILE

PARTICULARS INFO
TRADE NAME SHYAM COTTON

KALAVAD-RAJKOTHIGHWAY,
ADDRESS OPP.” SURSANGADA MAHADEV,
HANUMANJI TEMPLE”
JASHAPAR.360405

ESTABLISHMENT
2019
YEAR
GST [Link] 24ADXFS2336K1ZJ
EMAIL SHYAMCOTTON19@[Link]

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 CONSTITUTION PARTNERSHIP FIRM
OF BUSINESS
BANKER BANKOFBARODA

WORKING
24*7
HOURS
PRODUCTION
300 BALES
PER DAY
TOTAL 24
MACHINERY
TOTAL
75
EMPLOYEES
OFFICE
5
OPERATER
ACCOUNTING
YEAR APRIL 1 TO MARCH 31

BROTHER SHREE HARE KRISHNA

COMPANY COTTON INDUSTRY

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 INTRODUCTION

Shyam cotton was established May 2019, and started trading

half a year after due to construction i.e., from January 2020
and continuing.
The company was developed by three working partners.
Having two equal partners and one partner having more
shares in the company (3:3:4).
The main job of the company is to separate cotton and cotton
seeds from raw cotton. The cotton separated is then
transferred to cotton bale and then both of them are sold
separately.

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 ORGANISATIONAL CHART

As all the partners are working partners, they handle the

purchase to production and selling process by themselves.

BOARD OF PRODUCTION MARKETING HUMAN

MANAGER MANAGER RESOURCE
DIRECTORS

PURCHASE OF SELLING OF MANAGING

RAW FINISHED OFFICE
MATERIAL COTTON ACTIVITIES

UNLOADING SELLINGOF MANAGING

RAW COTTON ON FIELD
MATERIAL SEEDS WORKERS

RAWMATERIAL
TO FINISHED
PRODUCT

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 SIZE OF THE FIRM

 There is a scale to measure the size of the firm on basis

of investment.

INDUSTRY INVESTMENT

Small scale >3crores

Medium scale 3-10crores

Large scale <10crores

SHYAM COTTON is MSME i.e.,

Medium scale investing 3–10 crores into the business.

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 VISION & MISSION

 Vision of Shyam cotton is to grow and become a good

company in all over the criteria the products they are
offering.
 Money is a byproduct of value. And to thrive in the long
run, business must retain and focus on developing a brand
value or goodwill.
 To adapt new technology in the manufacturing of
their products.

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 LOCATIONOFUNIT

 Shyam cotton is located at Kalavad Rajkot highway, the most

advantageous factor for the plant is it has an easily
availability of resources as it is located at the center from
where they purchase and sell their raw material and goods.
 That helps them to reduces their expenses and maximize their
profit.
 The plant is covered by field farming cotton, and that helps
farmers getting better price and also, they save the
transportation cost.

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PRODUCTION
DEPARTMANT

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 INTRODUCTION

 The main task of the firm is to convert raw cotton into

cotton bale and extract cotton seed.

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 RAWMATERIAL

 Raw material for the company is raw cotton.

 The raw material is purchased by two methods:
 Through agents directly from farmers.
 From marketing yards (bidding).

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 MANUFACTURING PROCESS

The manufacturing process is as follows:

1. Weighing of the raw material.

2. Quality testing.

3. Unloading raw material

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 4. Combining the raw material till it Has a large quantity
& then watering it.

5. Transferring it through loader to input of

machinery known as bucke

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Next from the bucket cotton is transferred it to the main machinery
where it separates cotton and seeds. And it also removes waste
particles from cotton.

6. Then the cotton is converted into a cotton bale.

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 BALES&SEEDS

BALES SEEDS

One bale is almost160- Seeds are counted in

16kgs. tones.

Bales are converted from Seeds are 2/3rd of

1/3rdofcotton. cotton.

1 lot of contains 100 -

bales.

1 truck of raw material Similarly,6.5-7 tone

makes20 bales seeds can be separated.

*1tone=1000kgs.
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 MOISTUREMEASURING

After production the bales and seeds are checked and measured.

1. Bale moisture meter.

2. Seed moisture meter.

Moisture plays an important role,if it is more or less than the

condition of business then they can also deduct the amount.

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 HUMAN
RESOURCES

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 INTRODUCTION

Human resources are one of the important features. And play a

crucial role in the process of manufacturing. Human sources are:

ºOffice workers
ºLabors
ºManagers, etc.

Every being that works in the organization are the human resource
for the company.

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 EMPLOYEES&WORKERS

There are four types of employees needed in the organization:

1. Dealing with raw material.
2. Handling machinery.
3. Loading the finished product in transport
vehicles.
4. Handling the front office.
The front office people handle the purchase and selling of
the raw material handle later part of the purchase and sales
i.e., handling payments and also handovers the invoice of the
sales.

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 WAGES

There are two shifts

 one in the day
 another in night.
The wages given to workers on the daily basis. And on the
basis of the work, they do in the whole shift.
The on-field males are given INR300per day & INR 500
per truck they unload.
The machinery workers are given wages on the quantity of
bales they produce per day.
For loading of the finished bales, the labours are also given
INR500 per truck.

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 TRAINING&DEVELOPMENT

 There is less training as it requires experienced machinery

handlers.

 There is an agent appointed so he can meet up to the

requirement of worker in the company. The agent looks
after the effectiveness & efficiency of the workers.

 There’s any loss in production he looks after it, also if

there’s any problem, he deals with it.

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 WORKER FACILITY

Workers are provided with room accommodation,

food accommodation, etc.
Also, they are tea & snack break.
Everything is provided by the firm to let them feel home.
For their medicals there are doctors prescribed medicines for
their easy & fast recovery.

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 SAFETY &PRECAUTIONS

There are many safety precautions and guidelines posted on

the walls:
1. Smoke protector for vehicles silencer.

2. Safety guidelines.

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 3. Fire safety equipment’s.

4. 24 Fire extinguishers around plant.

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 SAFETY/SECURITY MEASURES

 Shyam cotton is extremely careful about their factory’s

safety for that these are some related pictures which it
self defines them:

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 MARKETING
DEPARTMENT

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 SELLING PROCESS

The selling process is a crucial part of the business. The

pricing of their products mainly depends on the foreign cents
and other related products. Price differs every day.
There are mediators between the companies buying and
selling, so that there will not be any issue between both the
parties.
There are two people handling the sale. One handles seeds
and another one handles sales of finished bales.
For both the mediators are different.
For business of bales local and exports the mediators are
different.

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 DISTRIBUTION CHANNEL

Distribution channel performs the work of moving good

from producers to [Link] this are not the final products,
other producers are consumer .As they are next part of the chain.
So, it comes under zero level channel
i.e.,
MANUFACTURER->CONSUMER
(In this case consumer is other producers).
But they also keep mediators in between so it can also come
under one level channel
i.e.,
MANUFACTURER

AGENT

CONSUMER/OTHERPRODUCERS.

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 PRICING OF PRODUCTS

 Price of the products differs everyday , as like fuel price

it is also declared every day.

 The prices are given by purchasers to the mediator and

then gives to sellers.

 There are testers appointed to check the quality of the

bales.

 Seller has to inform agent for making a route of tester

and then he checks and approves or reject the lots. If he
has doubt then that lot’s sample goes under checkup, if
reports are fine the lots are approved. Then the final
prices are negotiated.

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 TRANSPORTATION OF BALES

 After the testing, when the goods are qualified by

them. Transporters are fixed for the companies.
 Here, they contact the transporter for the accommodate
the transport of goods.
 They then send the vehicle as per the number of bales
to transport.
 Transporting vehicles are of many sizes,it can
contain100,125,150,175, up to 200 bales in a particular
vehicle.
 After that they send report of the lot.
 If the quality is not degraded or if it’s degraded than
the payment will be credited less by them.
 There is15working days due date for payment.

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 TRANSPORTATION OF SEEDS

 Seeds are sold on the basis of quality.

 Seeds are sold in tones.
 Price of seeds fluctuates everyday.
 Seed are priced on 20kgs-
(1Mound/Mann)
 Seeds are also transported via trucks, sometimes they
send them or truck of raw material are loaded with
seeds, hence the cost of transportation also decreases.
 There is 3-5 working days due date for payment

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 TRANSPORTATIONCOST

 The transportation cost of raw material is on

the company.
 The transportation cost of finished cotton as well as
cotton seeds is on the organization purchasing them.

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 FINANCE
DEPARTMENT

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 INTRODUCTION

In early years the finance management had no duty

concept collection of finance from resources but today, it
has been a great importance in top management. In recent
time "No finance No business" has become a common
statement

Finance is the life blood of the business. We need

finance for the production of goods and services as well as
for the distribution. It has been said that managerial activity
which is concerned with the planning and controlling of the
firms. Financial resources functions in an organization
which is related with the arrangement of cash and credit so
that organization may have the means to carry out business
as possible. Without finance it is not possible to run the
business systematically.

Finance is needed to meet working & fixed capital requirement.

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 SOURCES OF FINANCE

Every business needs fixed capital & working capital to

operate the activities.
To this type & size of sources of finance is divided into two:

A. Long term capital

 Long term borrowings
 Long term investments

B. Short term capital

 Short term borrowings
 CC-Cash credit

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 A. Long term capital
Long term capital is essentially contributed by debt
finance & equity finance.
 Debt financing means borrowed money and
repaying it with interest.
 Equity financing means money invested into
business in exchange for part ownership.

For Shyam Cotton source are:

[Link] finance/Long term borrowings:

Bank of Baroda (Kalavad)
2. Equity finance/Long term investments:
Business partners for part ownership.

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 B. Short term capital
Short term financing comes due within one year.
Short term borrowings main source can be cash
credits(CC) & overdrafts (OD).

Shyam cotton has INR 80 lakh as CC, they can access more
but then they have to make their payments offline.

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 ACCOUNTINGMETHOD

Book-keeping is the base of accounting. It is concerned

with record-keeping aspect of accounting. Book-keeping is
that aspect is that aspect of accounting which i h recording
business transactions in the books of account. There are
three methods for Keeping accounts like:

1. Double Entry System:-

 The most important method of keeping accounts is the
Double Entry System. It is a scientific system of
keeping accounts. In this system every transaction has
two-fold effects.

2. Single Entry System:

 This is the system of accounting used by small traders. It
s nothing but incomplete double. In this method, as all
accounts are not kept or two-fold effect of every
transaction. It is not a systematic recording of business
transaction.

.
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 3. Indian System or Bahaha System:
 It is a very old system used by Indian and is called
Bahi-Khata system.

Shyam cotton uses tally software for accounting & single-

entry system, which tally then converts it into double entry,
which eases work for them

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 CAPITAL STRUCTURE

Capital structure indicates all possible way of capital

investment in the firm. Capital structure is the most important
thing for the financial department. The capital structure is
made up of debt and equity securities, which compare a firm's
finance of its assets. There are mainly two types of capital
structure.

1. Internal–It uses its profit or assets as a source of

capital.

2. External – It uses financial debts from financial

institutions or equity.

Shyam Cotton’s partners invest their own capital into the

business. They also invest capital from secured loan taken
from Bank of Baroda.
Hence, Shyam Cotton uses both the type of capital structure.

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 WORKINGCAPITAL
MANAGEMENT

Working capital management is concerned with the problems

that arise in attempting to manage the currents assets and
liabilities.
Working capital is generally useful in running day-to-day
business activities.

Shyam Cotton’s working capital is managed by their

financial department. The department sees that working
capital is provided continuously for the smooth and efficient
working of the unit.

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 S.W.O.T.
ANALYSIS

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 S-STRENGTH

 Easy availability of resources.

 Low transportation of goods as the units in
The middle of their trading.
 Vast network of purchase & sales of raw material &
finished goods. They also get raw material in scarce due
to vast network.
 All the partners know all the jobs, so when someone’s
absent their work won’t stop, anyone can replace them
for that period.
 They have a slight edge over their competitors since
they have a brother company which gives them
advantage to purchase raw material in bulk from yards
or direct from farmers.

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 W-WEAKNESS

 Due to seasonal availability of raw material, after the

period the amount of raw material decreases.
 For making payment online they have a limit, due to
that they have to physically go to the bank after the
limit exceeds.
 Lack of funds due to their payment cycle ,they give 15
days creditability to the purchaser & they make payment
the next day.

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 O-OPPORTUNITY

 There is a textile Chain:

Raw cotton-
Ginning–
Spinning–
Weaving–
Dying.

Ginning is the first step, so it has high opportunity

to continue the business.

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 T-THREAT

 There are not many threats but there are some

which are:
1. Low production of raw cotton.
2. Low cost of related products that can affect price
of products i.e., price of seed oil.
 Sometimes government also plays threat to this
business.
 In 2010, the price of cotton bales almost reached
$60,000 & then to earn more, ginners stocke dup but
then government took down the price to almost half.
And It turned out as the companies became insolvent.

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 FUTURE PLANS

 They are about to expand their business to next step

Of the textile industries chain i.e., they are preparing
for a new spinning industry in their group.
 They also onto increase the production so they can
directly export their finished product& so for that
they will upgrade their p

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 CONCLUSION

 To review this project report in short, it has been an excellent and

rewarding experience. I have been able to meet and create a
relation with so many people that I am sure it will help me with
more growth opportunities in the near future.

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 BIBLIOGRAPHY

REFERENCE:
SHYAMCOTTON

 Points noted by visiting the industry.

 Suggestions given by officials of the organization

 Records of the company i.e.,

-Tally software,
-Sale invoice,
-Purchase invoice, etc.

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 UNIT PICTURES

 There are some pictures of the unit from starting to

end of the process:

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