Monday, January 27, 2020

Status and Capacity Utilization in Small Scale Industries

Status and Capacity Utilization in Small Scale Industries ABSTRACT Over the past year, the global economic crisis has exerted considerable influence on many business organizations of any size. Large industrial establishments have attempted to manage this crisis in their own ways. Amid all this, SMEs are increasingly being brought into focus on account of their huge growth potential. The present study aims at examining the status of small industries, industrial policy and capacity utilization of small industries and the reasons for not utilizing it to the fullest extent. Capacity utilization has been examined taking into account the location of the unit, industry group to which it belonged, year of establishment, form of organization, investment in plant and machinery, the entrepreneurs background and various reasons specified by the entrepreneurs. This study is empirical in nature and it is based on the data collected with the help of questionnaire. Efforts are also being made to offer suggestions. Introduction Small and medium enterprises have an important role to play in the present context due to its capacity for employment generation, technological innovation, raising exports and developing entrepreneurial skills. They reduce regional imbalances. They have been accorded a strategic position in the successive five year plans towards fulfilment of our socio-economic objectives and helped to achieve our dictum of growth with equity. Since the early 1990s, Indian SMEs have been exposed to intense competition due to the accelerated process of globalization. But at the same time, globalization has brought new opportunities and challenges to Indian SMEs. India used to support small and medium industrial sector since independence compared to many developing countries. Series of institutions have been set up by the Central Government, State Governments, and provided financial assistance, technical consultancy, information, technical input, training, legal advice, and marketing support and helped in the healthy development and progress of small and medium industries. But a pertinent question that has often been emerged here, whether their capacity has been utilized to the fullest extent or not. Through this paper an effort is made to study the capacity utilization of small scale and medium industries. Meaning and Definition In the Indian context, we have not so far succeeded in giving a definition to small and medium industries. What is neither small nor large industries is being loosely defined as medium industries. Here, the term enterprise encompasses business, services and industries. The Micro, Small and Medium Enterprises Bill, 2006, defined the segment on the basis of investments in plant and machinery. Small enterprises are those with an investment of not more than Rs 50 mn in plant and machinery, and medium enterprises with an investment of over Rs 50 mn but less than Rs 100 mn in plant and machinery. This definition has finally put the segment within a legal framework. Under the Act, enterprises have been categorized broadly into those engaged in (i) manufacturing, and (ii) providing/rendering of services. Both the categories have been farther classified into micro, small and medium enterprises, based on gross investment in plant and machinery for manufacturing enterprises, and in equipment in case of enterprises providing or rendering services, as shown in the following table. Insert Table 1 Here SMEs are not uniform across the globe. The way they are defined depends on th stage of economic development and the broad policy purposes for which the definition is used. The most commonly used definitions relate to either size of employment and or quantum of capital investments or fixed assets. As the process of economic development leads to changes in industrial sector shares in GDP and the contribution of sub-sectors within industry, the definition is extended to include not only manufacturing industries but all enterprises which fall within or below the defined cut off point. Small scale units engage themselves in various kinds of manufacturing such as manufacturing of metal alloys and products, machinery, electrical equipments, chemicals, drugs, electronics and miscellaneous products. But most of the small scale units have not been able to achieve capacity utilization to the fullest extent. A very few of them have been able to achieve a capacity utilization greater than 80%, as revealed by many surveys. Recent study conducted at Dakshina Kannada and Udupi Districts of Karnataka have indicated that more than 80 of the industrial units in the various industrial estates of the two districts are either closed or sick. The fact that the same scenario prevails throughout the country and the difference, if any, is only in degree and cannot be a consoling factor. We know that this situation is not good for the economy of the country and due to these financial institutions and the banks in the country themselves are becoming sick as it increases the non-performin g assets of industrial units and other enterprises. The position of Sick SSI and Weak and non-viable units financed by commercial banks are not encouraging. The following table throws light on the magnitude of sickness. Insert Table 2 here Despite several measures for the promotion of this sector, it is very disappointing to observe that its performance has not been satisfactory. The problems are many like finance, production, marketing, labour, which have resulted in under utilization of installed capacity. At the same time, power cut, lack of demand, lack of working capital are all hindering the full utilization of installed capacity. Objectives of the Study The present study is intended to examine the capacity utilization of selected small scale units in the Udupi Districts and to find out the reasons for it. The specific objectives are: To examine and project the existing performance level of industrial units in the study area. To investigate into the reasons for underutilization of capacity in the small scale units of target area. To examine the relation between the investment and capacity utilization. To examine the relationship between the age of the unit and the capacity utilization. to examine the relation between the background of the entrepreneur and capacity utilization To study the current status of the small and medium scale industries To study the industrial policy and importance of the small-scale industries. Limitation of Study The study is not free from limitations. Some of them are likely: Udupi district itself is not an industrialized area; hence based of this study we cannot make generalizations. The researcher collected data from only 100 respondents, out of which only 85 units responded. Few sample units did not maintain the books for recording their capacity utilization, production, etc. Hence collected data may be biased. Review of Literature A number of studies on the efficiency of small and medium industries were undertaken. Dhar and Lydall, Hajra, Sandesara (1966 and 1969) and Mehta studied the relationship between size and output-capital ratio by using the data from confederation of medium industries. Their report showed positive relationship. Bhavani (1980) conducted a detailed census of SSI units and concluded that the capital productivity of SSI units is lower than that of large scale units suggesting efficiency differences in line with the findings of Dhar-Lydall-Sandesara. Tambiinam T(2007) found out that the levels of productivity are higher in large enterprises (LEs) and foreign-owned enterprises than in small and medium enterprises (SMEs), partly because they have higher levels of technology capacity. He suggested that increasing the productivity of SMEs might be facilitated through improved knowledge or technology. Business outlook survey conducted by Confederation of Indian Industries (CII) based on preliminary analysis of responses from 352 small and medium members reveals a dull scenario (June 2003). However, the small and medium industry foresees an improvement in the business situation in the coming years and expects an increase in turnover of production, profit margins, capacity utilization and exports. According to the information collected from Small Scale Industrial Centers, Government agencies for small scale industries and some of the associations of the small scale industries, no in depth studies have been made till now on the capacity utilization of small scale industries. Under utilization of capacity may be considered as one of the problems, but neither the entrepreneurs nor the concerned authorities have taken up this issue very seriously. Empirical studies in several countries show that SMEs are characterized by Lower and more variable profitability (Dunlop, 1992; Cosh and Hughes, 1993; Peel and Wilson, 1996); Lower liquidity (Gupta, 1969; Chittenden et ah, 1996); Lower use of long-term debt (Chittenden et al., 1996; Levratto, 1997; Audretsch and Elston, 1997); Lower leverage (Rivaud-Danset et ah, 1998); Higher short-term debt (Tamari, 1980; Cosh and Hughes, 1993; Rivaud-Danset et al., 1998). In one the study conducted by Prof. Jayachandran, Narendra Kumar and Dr. Himachalam at selected small scale units of Tirupathi Industrial Estate revealed that 50% of the SMEs were utilizing 25% to 50% capacity and the remaining 50% were utilizing 50 to 75%. None of the studied units was utilizing more than 75% of plant capacity. Further it revealed that age of the unit alone is not accountable for the extent of capacity utilization. They concluded that entrepreneurial talents and problems, which confronted the unit, also influenced the level of capacity utilization in the small scale units. From the above review, it is obvious that few research studies have been undertaken on the subject capacity underutilization in SMEs. Hence, there is a research gap necessitating further study, particularly SSI sector and the problems confronted by them. This paper throws light the status of small and medium enterprises and their capacity utilization. Research Methodology The present study aims at examining the status of small industries, industrial policy and capacity utilization of small industries and the reasons for not utilizing it to the fullest extent. Capacity utilization has been examined taking into account the location of the unit, industry group to which it belonged, year of establishment, form of organization, investment in plant and machinery, the entrepreneurs background and various reasons specified by the entrepreneurs. This study is empirical in nature and it is based on the data collected with the help of questionnaire. Attempts have also been made to extract the correct information through discussion with the entrepreneurs. Chi-square test is applied to study the association between capacity utilization and variables like location of the plant, investment, age of the unit and background of the industrialists. Besides the primary data, necessary information and data also collected through secondary sources like periodicals, reports, Government, publications of industrial association, research organization, and company documents. Documents are also collected from District Industrial Centre of Udupi and Industries Association, Manipal. In the study, convenience sampling of 85 units were selected. Heterogeneous sample units were selected for the study. Importance was given for the amount of investment on the units and the location as well. Present Study There are 15 medium scale industries existing in the District. Among them printing, fishnet, granite, water gel explosives are the major industries. There are 5629 tiny and small scale industrial units registered in the District. Total amount of Rs. 218.49 crores has been invested in these units generating employment for 34,123 numbers. Table reveals the number of SSI registered, the total investment and employment generation by this sector. Insert Table 3 here Table shows the list of existing medium scale industries up to 31-3-2008. Insert Table 4 here The District has only one industrial area and it is located at Shivally Manipal, about 5 kms from Udupi town. There are 3 industrial estates one at Shivally, Manipal in Udupi Taluk and the others at Koteshwara in Kundapur Taluk and Karkala in Karkala Taluk. The District has ports at Malpe, Gangolly and Hangarakatte. But these ports are not used for commercial transportation, for commercial transportation the nearest port is New Mangalore port at Mangalore. The District has the nearest aerodrome at Mangalore Capacity utilization in a sample survey conducted at Udupi District. The study is based on data collected from primary and secondary sources. The primary data were collected from 85 Small Scale Industrial Units situated in an around the Udupi District. Table 5 shows the Capacity Utilization-Industry Group Classfication. Insert Table 5 here Table 5 shows that out of 85-sample units, 4 units (5%) utilized up to 25% while 13 units (15%) utilized between 26 to 50% of their capacities. 39 units (46%) utilized between 51 and 75% of their capacities and the remaining 29 (34%) utilized above 75%. It can be seen that nearly 20% of the sample units were not in a position to exceed 50% of their capacities. Insert Table 6 here Table 6 depict the capacity utilization of the units based on their location i.e. whether they are located in industrial estates, commercial area, residential area or non-residential area. Out of 55 units which were located in industrial estates 12 units (23%) used their installed capacities upto 50% only. In the case of units located in commercial area 2 out of 15 units (13%), residential areas 3 out of 9 (33%) and non residential areas all the 6 units utilizes more than 50% of their installed capacities. Insert table 7 here An attempt has been made to examine the direct reasons for utilizing the capacity to the fullest extent. The various reasons indicated by the entrepreneurs are presented in Table 7. Inadequate market demand and inadequate working capital were equally predominant reasons. 45 out of 85 entrepreneurs stated the above reasons. Irregular and inadequate power supply, reported by 13 entrepreneurs. Inadequate work force (12units), 8 units facing problems from brand products, 8 entrepreneurs stated other reasons like excess tax, technological problems etc. and inadequate raw material reported by 4 entrepreneurs. Out of 4 units which were utilizing their capacity upto 25 percent only 2 stated inadequate working capital as the reason for not utilizing their capacities while 2 units indicated inadequate market demand as the reasons. In the case of ancillaries, mother unit not buying as per the stipulated terms was reported by few units. Thirteen units utilized their capacity between 26 and 50 percent. Among these inadequate market demand appears to be the major problem compared to inadequate working capital. In the third category, 39 units utilized their capacities between 51 and 75 percent. Inadequate market demand posed a big problem compared to the problem of inadequate working capital. The former was reported by 15 units whereas the latter by 5 units. Inadequate workforce and irregular and inadequate supply of power were mentioned by 5 units each and 6 units stated other reasons. Among 29 units which were utilizing above 51 percent of their capacities on an average 5 each were facing the problems of inadequate working capital, inadequate workforce, inadequate market demand, problem of raw material supply, power cut, problems from branded products and other reasons were mentioned by three and two units respectively. The above analysis shows that the problems vary from unit to unit. The reasons could be the different types of growing needs. The analysis indicates that units at both lowest and highest extremes largely faced the problem of finance, whereas the units at medium level mostly faced the problem of marketing. In order of assess the impact, capacity utilisation was taken as the criterion in this study. The capacity utilisation level was divided into four categories: up to 25 percent, between 26 and 50 percent, between 51 and 75 percent, and above 75 percent. The capacity utilisation was examined vis a vis other variable which included the industry group to which they belonged, location of the unit, year of establishment, form of organization, investment in plant and machinery, age of the unit, background of the entrepreneur. The analysis of the study reveals that only 20 percent of the sample units were not in a position to exceed 50 percent of their capacities. But 65 percent of the sample units were unable to reach the 75 percent of their installed capacity. The study of Small Scale Units makes it clear that the form of organization, the area of location, investment in plant and machinery, the background of entrepreneur etc do not influence capacity utilisation. But the various reasons indicated by entrepreneurs say inadequate market demand, inadequate working capital, inadequate raw material inadequate workforce, power failure and competition from branded products were reasons for the underutilization of installed capacity. SUGGESTIONS In order to overcome the bottlenecks faced by the small-scale units following measures are recommended. Inadequate market demand and inadequate working capital are the major problems confronted by the small-scale units. Marketing problem includes inadequate market demand, fluctuations in demand, competition from large industrial units and etc. To solve the problem of inadequate or fluctuating market demand the Government agencies must give small entrepreneurs periodical training and educate them about modern marketing, using flexible pricing, promotion, incentive and other methods to increase demand including the different uses for the same product. Management Institutions can also extend their help to the small-scale units to modernize their marketing techniques. To solve the working capital problem it is better to take the help of professional financial experts say chartered accountants and cost accountants. As well as Institutes like Chartered Accountants or Cost Accountants and Financial Management Institutes should extend their assistance to the small-scale units. Proper manpower planning and adequate wages and salaries can overcome inadequate workforce. Power failure, inadequate supply of power, and load shedding must be avoided. Due to various reasons the Electricity Corporation is not able to prevent their occurrence. The concerned Governments should take interest to improve the power supply. Alternative sources of energy may be made available to the small-scale industries as a part of the National Energy Policy. Other causes such as excessive sales tax, procedural delays and practices can be removed by streamlining the tax structure and the office methods followed. CONCLUSION The cost and value of small-scale industries could benefit a large section of our countrys population, if the resources and efforts of small-scale industries could be more productively used. It is common knowledge that on the one hand surpluses generated are far below normal expectations and on the other obsolescence and industrial sickness among small scale industries threaten to become a net drain. Although the awareness of these issues is now more widespread, the problem of social and economic insecurity prevents effective measures from bringing about the change. The subject of fuller utilisation of capacity, modernization and productivity thus tend to be obscured. But the punishment for inaction will be very heavy. To avoid it the need to change now becomes imperative and unavoidable. Lack of real consultants is adding to the problem. The so called consultants who exist in large numbers, tend to indicate every project as viable as otherwise it affects their own viability and existence. They make every project a success on paper and in reality hardly 20% of the projects register success. The practice of starting enterprise based on exemptions and subsidies is adding to the problem. Thus a deep study of the capacity utilization in small industries is a crying need. The government policy also needs review in the interest of promoting fuller growth of small-scale units and making them viable. In the present study an attempt has been made to examine the capacity utilisation of small-scale industries in Udupi district and the reasons for not utilizing the capacity into the fuller extent. Capacity utilisation was examined taking into account the location of the unit, the industry group to which it belonged, year of establishment, form of organization, investment in plant and machinery, the entrepreneurs background and reasons indicated by the entrepreneur. Now in this era of socio-economic transformation and favorable conditions it is the turn of small-scale industries to rise to the occasion and tell the society that they are capable of producing results.

Sunday, January 19, 2020

Child Abuse and the Feeling of Helplessness Essay examples -- Children

Smack! Mother hits me in the face, and I topple to the floor. I know better than to stand there and take the hit. I learned the hard way that she takes that as an act of defiance, which means more hits, or worst of all, no food. I regain my posture and dodge her looks, as she screams in my ear. Please, I say to myself, just let me eat this time. Hit me again, but I have to have food. Another blow pushes my head against the tile counter top (Pelzer, 1995). This is the beginning of a typical day for David Pelzer, a victim of child abuse for four years. Child abuse is the physical, emotional, or sexual mistreatment of children. That is the typical definition coming from the Merriam-Webster’s Dictionary. But ask anyone who has been a victim of child abuse, and they might tell you that child abuse is like living in hell, never knowing what might happen to you, and never knowing when it will end. Nobody should have to feel that helpless, and victims are usually left with an uncountable amount of psychological effects. Everyone needs to become more aware of the signs of abuse, and become more educated of a problem that keeps growing every day. Child abuse can incorporate a wide variety of abusive actions, from acts of commission, to lack of action or omission (Kliegman, 1997). Abuse can start even before the birth of a child, such as maternal drug abuse and failure to seek the usual prenatal health care during pregnancy. After birth, child abuse is divided into four basic forms, and each area overlaps into another. The four areas are physical abuse, sexual abuse, neglect, and emotional abuse. Children who are at high-risk for child abuse include mentally retarded children, premature infants, infants with chronic medical pr... .... I chose to right this paper in hoping that I get my point across. People need to be more educated about abuse. It is becoming too normal for everyday life. I am only 19, and know personally two people who have been abused. Is it going to become a regular occurrence for at least one child in every family to be abused in some way? But if everyone in every community works together in providing the proper information and education, people can stop abuse before it even starts. We can stop this feeling of helplessness going around today. References Kaplan, Michael. (1996, September). A Boy or Girl. Children Today, pp. 25-29. Kleigman, Arvin. (1997, March). The Effects of Child Abuse on All Involved. Psychology:Today and Tomorrow, pp. 17-39. Pelzer, Dave. (1995). A Child Called It: One Child's Courage to Survive. Health Communications, Inc.; Reissue edition

Saturday, January 11, 2020

Alliteration and Symmetry in Sir Gawain and the Green Knight

Note on poetic meter: Gawain is typical of Middle English alliterative poems in that it is written in alliterative long lines, following the basic metrical principles of Old English verse. Each long line consists of two half-lines, each half with two stressed syllables and a varying number of unstressed syllables. Most importantly, the two half lines are connected by alliteration ? that is, repetition of the same consonant sound on at least two, often three, of the stressed syllables. For example, the poem begins: â€Å"Sithen the sege and the assaut was sesed at Troye† (line 1), with the â€Å"s† sound recurring five times within the single long line. The long lines do not rhyme with each other. However, they are organized in stanzas of fifteen to twenty-five lines, and each stanza concludes with a construction known as a â€Å"bob and wheel. † This term refers to a group of five short lines, which do rhyme, to the pattern of ababa. If you are not reading Gawain in the original Middle English, the poetic structure may not be maintained in the translation. Some modern English translations keep the rhyme and meter strictly; others are only prose translations. SYMMETRY Sir Gawain and the Green Knight has a symmetrical structure. Everywhere in the poem is balance, contrast and antithesis. The poet highlights number symbolism to add symmetry and meaning to the poem. For example, three kisses are exchanged between Gawain and Bertilak's wife; Gawain is tempted by her on three separate days; Bertilak goes hunting three times, and the Green Knight swings at Gawain three times with his axe. The number two also appears repeatedly, as in the two beheading scenes, two confession scenes, and two castles. [55] The five points of the pentangle, the poet adds, represent Gawain's virtues, for he is â€Å"faithful five ways and five times each†. [56] The poet goes on to list the ways in which Gawain is virtuous: all five of his senses are without fault; his five fingers never fail him, and he always remembers the five wounds of Christ, as well as the five joys of the Virgin Mary. The fifth five is Gawain himself, who embodies the five moral virtues of the code of chivalry: â€Å"friendship, generosity, chastity, ourtesy, and piety†. [57] All of these virtues reside, as the poet says, in the â€Å"Endless Knot† of the pentangle, which forever interlinks and is never broken. This intimate relationship between symbol and faith allows for rigorous allegorical interpretation, especially in the physical role that the shield plays in Gawain’s quest. [59] Thu s, the poet makes Gawain the epitome of perfection in knighthood through number symbolism. The number five is also found in the structure of the poem itself. Sir Gawain is 101 stanzas long, traditionally organised into four ‘Fitts' of 21, 24, 34, and 22 stanzas. These divisions, however, have since been disputed; scholars have begun to believe that they are the work of the copyist and not of the poet. The original manuscript features a series of capital letters added after the fact by another scribe, and some scholars argue that these additions were an attempt to restore the original divisions. These letters divide the manuscript into nine parts. The first and last parts are 22 stanzas long. The second and second-to-last parts are only one stanza long, and the middle five parts are eleven stanzas long. The number eleven is associated with transgression in other medieval literature (being one more than ten, a number associated with the Ten Commandments). Thus, this set of five elevens (55 stanzas) creates the perfect mix of transgression and incorruption, suggesting that Gawain is faultless in his faults. The format of â€Å"Sir Gawain and the Green Knight† works on the principles of repetition and multiplication. Think about the number of departures for adventure, the almost eerie property of â€Å"threes,† the characters who play multiple roles, the five points of the pentangle and so on.

Friday, January 3, 2020

Confederation and Constitution Essay - 1539 Words

The Constitution of 1787of the United States of America is signed by 38 of 41 delegates present at the conclusion of the Constitutional Convention in Philadelphia. Supporters of the document paid a hard won battle to win ratification by the necessary nine out of thirteen U.S. states. The Articles of Confederation, ratified just before the British surrender at Yorktown in 1781. Congress the central authority had the control to govern foreign concerns, conduct war, and control currency. These powers were suddenly limited because Congress was given no authority to enforce its requests to the states for money or troops. By 1786, it was specious that the Union would soon break up if the Articles of Confederation were not corrected or replaced.†¦show more content†¦The Article of Confederations had many strengths starting with declaring war and making peace. Another strength that the Article of Confederations had was to coin and borrow money. The Article of Confederations even det ailed with foreign countries and sign treaties. Even though the Article of Confederation had its strength, it also had its weaknesses. The Articles of Confederation was the first official government of the United States and there were lots weaknesses. The national government could not power the states to follow its laws. It did not have the authority to implement laws. Congress did not have a strong and steady leadership. There was no official army or navy. There was no organization of national courts. Each state had the authority to issue its own paper money. Each state also had the authority to put tariffs on trades between states. Under the there was only a one legislature so that there was no separation of powers. The central government was too weak since the most of the power rested with the states. Congress did not have the control over taxes which meant their finances were not in order. 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