MAHARASHTRA STATE BOARD OF

TECHNICAL EDUCATION, MUMBAI

A
MICRO PROJECT REPORT
ON
Management Principles of
Small Scale Industry

Submitted By

GadhaveAbhishek
.

Under The Guidance Of

Prof. Shinde D.L

DEPARTMENT OF ELECTRICAL ENGINEERING

S.R.E.I’s
SAMARTH POLYTECHNIC, BELHE.
TAL-JUNNAR, DIST-PUNE 412410
(2022– 2023)
 MAHARASHTRA STATE BOARD OF
TECHNICAL EDUCATION, MUMBAI
S.R.E.I’s
SAMARTH POLYTECHNIC, BELHE.
TAL-JUNNAR, DIST-PUNE 412410

Certificate
This is to certify that
Gadhave Abhishek.

Have satisfactorily completed Micro Project on

“MANAGEMENT PRINCIPLEOF SMALL
SCALE INDUSTRY”

As a part of Syllabus of Management (22509)

Maharashtra State Board of Technical Education, Mumbai
For the partial fulfillment of

Diploma in Electrical Engineering

In the academic year 2022-2023

Mr. Shinde D.L Mr. Sonawane G.L.

SUBJECT TEACHER H.O.D.

Prof. Kapile A. S.
PRINCIPAL
 ACKNOWLEDGEMENT

It gives me great pleasure in presenting this project report. I would like to thank Head
of Dept. of Electrical-Egg. - Prof. Sonawane G.L. for wholeheartedly helping and directing
in my project work. I would also like acknowledge my wholehearted gratitude to my Subject
teacher Prof. Shinde D.L. for his inspiration and guidance without which it would have been
difficult for me to complete the project report. Last but not the least; I would also like to
thank the Civil Engineering Department Staff Members, College Library Staff Members and
College Staff.
I also thanks to all our friends & well-wishers who have helped us directly or
indirectly to complete this synopsis in a satisfactory manner.
Finally, I would like to thanks our family for their support, it would have been
impossible for us to accomplish this study without their support.
 Management Principles of Small Scale Industry

ABSTRACT

Small Scale industries play a key role within the industrial economy everywhere
the world. They contribute considerably to economic growth, innovation, and employment
generation. globalisation, fast technological changes, and greater competitive pressure ar having
a serious impact on little scale industries round the globe. little scale industries got to upgrade
their organisation strategies to succeed in money, social and environmental improvement while
not giant investments or in depth changes. the combination of lean and 6 letter of the alphabet is
that the bestresponse to the current challenge. However, the adoption of lean Six letter of the
alphabet in little scale industries is not widespread due to the worry of high implementation value
and therefore the sequent edges. With the restricted resources to implement Lean six letter of
the alphabet for little scale industries while not external aid. Essentially the little scale industries
ar usually comprised of these industries that manufacture, manufacture and render services with
the assistance of little machines and fewer personnel. These enterprises should make up the rules,
set by the govt. of India. The SSI’s ar the lifeline of the economy, particularly in developing
countries like India. These industries ar usually effortful, and thence they play a very important
role within the creation of employment. SSI’s ar an important sector of the economy each from a
money and social purpose of read, as they assist with the per capita financial gain and resource
usage within the economy.

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 Management Principles of Small Scale Industry

INDEX

SR PAGE
TITLE
NO. NO.
CERTIFICATE
ACKNOWLEDGEMENT

ABSTRACT

INDEX
1 Chapter No - 1- INTRODUCTION
2 Chapter No - 2- LITERATURE REVIEW
3 Chapter No -3- METHODOLOGY
4 Chapter No -4- CONCLUSION
5 Chapter No -5- REFERENCE

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 Management Principles of Small Scale Industry

Actual Procedure Followed

Sign of
Sr. Activity Activity
Subject
No. Details of Activity Start Finish
Teacher
Date date
Select a project name with the help of a subject
teacher. Teacher guide the how to make a
1
project.

Discuss the Micro project subject with

groupmembers and how to collect the
2 information.

Collect the information with the help of textbook

, reference books. Note down the main points with
3
the help of group members.

Collect information and diagram to saw

theteacher. Teacher guide to how to
4
prepare a report of micro Project.

Made the micro project report with the help of

group members and printout the pages and made
5
afile of micro project

Check the project with the help of teacher

6 andsubmit the micro project report.

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 Management Principles of Small Scale Industry

Chapter No : 01

INTRODUCTION

Small scale industries comprise of tiny enterprises WHO manufacture merchandise or services
with the assistance of comparatively smaller machines and a number of employees and workers.
Basically, the enterprise should constitute the rules set by the govt. of Asian nation. At the nonce
such limits ar as follows,
• For producing Units for Goods: Investment in plant and machinery should be between twenty
{five} lakhs and five crores.
• For Service Providers: Investment in machinery should be between ten lakhs and 2 crores. In
developing countries like Asian nation, these tiny scale industries ar the lifeline of the economy.
These ar usually labor-intensive industries, so that they produce abundant employment. They
additionally facilitate with per capita financial gain and resource utilization within the economy.
they're a awfully necessary sector of the economy from a money and social purpose of read.

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 Management Principles of Small Scale Industry

Chapter No : 02

LITERATURE REVIEW

This study utilises time series data from the ASI at two digit level of disaggregation. We should
mention some major problems inherited in the ASI data and one has to bear them while using
this data base. First, industrial units are classified here on the basis of National Industrial
Classification (NIC) of economic activities. The NIC has, however, been changing from time to
time and it creates a serious problem of comparability of the factory units from one NIC to
another, particularly at five-digit level of disaggregation.

The NIC70 was used from 1973-74, but it was replaced by NIC87 in 1989-90, was replaced
further by NIC98 in the year 1998-99, and by NIC04 in 2004-05, and recently by NIC 08 in
2008-09. Although concordance tables are provided by the CSO to combine different data
series based on different NIC for constructing continuous time series, one can combine the data
only at the two-digit or three-digit or at most four-digit level of disaggregation.

Second, the frequent changes in sampling design and the coverage of factory units under the
census sector lead to a deviation of the number of factory units reported in ASI from the
number of factories actually operated. Initially, all units with 50 or more workers operating
with power, and units having 100 or more workers operating without power were covered
under the census sector. In 1987-88, the definition of the census sector was revised to include
the units having 100 or more workers irrespective of their operation with or without power in to
this sector.

It was further modified in 1997-98 and the criterion for a unit to be regarded as a part of the
census sector became that it should have a minimum number of workers of 200, working with
or without power. Also, all public sector undertakings (PSUs), irrespective of the number of
employees, were included in the census sector. In 2004-05, again a new sampling design was
adopted and units with 100 or more workers were reconsidered as part of the census sector.

Finally, the definition of the census sector was changed in 2007-08 and, additionally, joint
sector firms were included in the census sector without considering the number of their
employees. Third, although all firms registered under sections 2m(i) and 2m(ii) of the Factories
Act 1948 are supposed to supply relevant information mentioned in the ASI schedule, many of
them have failed to supply it regularly.

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 Management Principles of Small Scale Industry

Chapter No : 03

METHODOLOGY

Characteristics of SSI:-

1. Ownership: SSI’s typically square measure below single possession. thus it will either be a sole
proprietary or generally a partnership.

2. Management: Generally, each the management and therefore the management is with the
owner/owners. thus the owner is actively concerned within the every day activities of the
business.

3. Labor Intensive: SSI’s dependence on technology is pretty restricted. thus they have an
inclination to use labour and work force for his or her production activities.

4. Flexibility: SSI’s square measure additional adaptable to their dynamic business surroundings.
thus just in case of amendments or sudden developments, they're versatile enough to adapt and
continue, not like massive industries.

5. restricted Reach: Small scale industries have a restricted zone of operations. Hence, they will
meet their native and regional demand. 6. Resources utilisation: They use native and pronto out
there resources that helps the economy totally utilize natural resources with minimum wastage.

Objectives of SSI:-

Small enterprises generally aim at enjoying complementary role within the socio economic found
out of a rustic. Its practical objectives aren't solely business however additionally social.

• The basic objectives of small-scale business are:

(i) Providing accumulated employment opportunities on honest and cheap terms.

(ii) Promoting production of an oversized kind of goods-specially goods through effortful ways.

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 Management Principles of Small Scale Industry

(iii) Encouraging adoption of contemporary techniques within the unorganised ancient sector of
the trade while not inflicting any perceptible technological state.

(iv) Facilitating a good mobilisation of resources of capital and talent which might have otherwise
remained unutilised.

(v) group action the viable little sector with the very important massive scale-sector.

(vi) Encouraging and supporting the native talent and utilising native resources to realize native
self-reliance.

(vii) Avoiding the issues of unplanned urbanisation of industries,

(viii) guaranteeing a additional evenhanded distribution of the value Associate in Nursingd a

balanced industrial growth in numerous regions thus on lay down a basis for an primarily localised
socio-economic set-up.

(ix) making a replacement cadre of small-entrepreneurs, skilled and self used consultants.

(x) Correcting regional disparities in industrial growth through locational spread of small-
enterprises.

Role of Small Scale Industries:-

1) Small Scale industries give Brobdingnagian scope for increasing employment.

2) They area unit labour intensive and need relatively very little capital to start out with.

3) They facilitate production of commodity and thus will meet the demand for shopper
merchandise.

4) They facilitate reduction of costs.

5) They accelerate the speed of commercial growth.

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 Management Principles of Small Scale Industry

6) They facilitate in equitable distribution of national wealth.

Classification of Small-Scale Industries:-

• Small-scale industries are classified into 5 main categories:

(a) producing industries-producing articles for direct consumption also as process industries. (

b) Feeder industries-specialising specific|especially|specially|particularly|above all|specifically}

sorts of particular product and services, e.g., casting, electroplating, fastening etc.

(c) sexual union industries-covering light-weight repair retailers necessary to take care of
mechanical instrumentality.

(d) Mining or production.

(e) Ancillaries-producing elements and parts for light-weight engineering product cycles, stitching
machines, diesel engines, machine tools, mathematical instruments, workplace and home
instrumentality, electrical appliances, air-conditioners, etc.

Principles of management:-

1. Division of work:- Dividing the complete work of the organization among people and making
departments is named the division of labor. Division of labor ends up in specialization helps to
extend potency which ends up in enhancements within the productivity and profit of the
organization.

2. Discipline:- Discipline suggests that relevancy the foundations and rules of the organization.
Discipline could also be self-discipline, or it should be implemented discipline.

3. Unity of command:- in line with this principle subordinate should have and receive orders from
just one superior.

4. Unity of direction:- One head and one arrange for a bunch of activities with an equivalent
objectives. Al activities that have an equivalent objective should be directed by one manager, and
he should use one arrange. this can be known as unity of direction.

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 Management Principles of Small Scale Industry

5. Authority and responsibility:- There ought to be a balanced between authority and

responsibility .The right to present orders ought to be thought of while not regard to
responsibility.

6. Scalar chain:- The chain of command, generally known as the scalar chain, is that the formal
line of authority, communications, and responsibility at intervals a company.

7. Equity:- in line with this principal , manager , ought to treat all staff with fairness, kindness and
justice. this may build staff to be additional loyal and devoted towards the organization.

7 Essential Principles of Small scale industry Success:

1. Associate in Nursing Entrepreneurial mentality To develop a mentality for achievement, you

want to understand that however you understand your business and your life determines your
reality. Business homeowners with Associate in Nursing entrepreneurial mentality don't suppose
like employee bees. they need many characteristics that cause them to square get in the gang.
Entrepreneurs don't seem to be born. they're engineered through constant study and
determination. Entrepreneurs square measure willing to fail to eventually win. They perceive that
not each plan could be a sensible one. there'll be times once you are going to be doing all your
best, however feel annoyed by a scarcity of progress in your business. each businessperson goes
through these troublesome periods. I actually are there on quite one occasion. it's sometimes like
this that you just got to concentrate on the positive and keep your optimism operating. The key's
to avoid negative thinking.

2. Strict commercial enterprise Discipline Successful business individuals use budgets and realistic
sales projections to run their businesses. They recognize by the fifteenth of the month however
well their business did financially the month previous. they are doing not pay cash on travel,
events or trade shows that don't seem to be budgeted. they are doing not rent employees while
not have the money or contracts in situ ahead. They additionally perceive the way to use a line of
credit. They use it fastidiously for short-run money desires, and not long funding desires like
promoting expenses.

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 Management Principles of Small Scale Industry

3. A coterie of Advisors You will got to develop relationships with people that square measure
already entrepreneurs or different business people in an exceedingly position to present nice
insight into what you would like to be a business success. it's terribly useful to additionally
embrace a possible consumer in your line conversations. purchasers will offer valuable insight into
budget cycles and current pain points, and most significantly introduce you to different potential
customers. Keep the corporate of good individuals. typically a telephone to Associate in Nursing
adviser will save heaps of symptom and cash.

4. an outlined complete Your complete is that the temperament of your product, company or
service, however what makes the complete great? you want to shield your complete with the
required emblems, patents and/or copyrights for everything from your brand, colours and style of
your packaging to the invention of a replacement product or method. Your complete enhances
the performance, innovation, transparency of your company and it's the ability to project a way of
social responsibility outside the corporate.

5. a distinct segment Market Successful little businesses homeowners perceive that solely a
restricted variety of individuals can obtain their product or service. They solely pursue promoting
efforts toward the precise individuals they're targeting as customers. Having a narrowly outlined
cluster of shoppers is however they’ve engineered their business.

6. glorious client Service Successful entrepreneurs recognize glorious client service can keep
customers coming.In today’s customer-oriented business setting, “people skills” square measure
important for little business success. however you handle your customers will directly have an
effect on your company’s performance. robust businesses offer manuals and employees coaching
on the talents required to speak expertness, gain respect and enhance client relationships. They
additionally use client relationship management (CRM) software package to trace the worth {of
clients|of consumers|of shoppers} to the business and to manage customer contacts.

7. money Position and sensible Banking Relationship On a every day basis, prospering
entrepreneurs perceive what their money position is in terms of assets and accounts collectible.
they are doing not simply build deposits and withdrawals. they need a relationship with the
manager and head teller at their bank. They additionally use 2 banks to form positive that their
personal and business assets don't seem to be situated within the same bank.

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 Management Principles of Small Scale Industry

Role of Small Scale Industries in the Indian Economy:-

1. Total Production These enterprises account for pretty much four-hundredth of the full
merchandise and services created within the Indian economy. they're one in all the most reasons
for the expansion and strengthening of the economy.

2. Employment These tiny scale industries square measure a serious supply of employment within
the country. the full labour force cannot realize add the formal sector of the economy. therefore
these labor-intensive industries offer a keep to an outsized portion of the personnel.

3. Contribution to Export Nearly 1/2 the products (45-55%) of the products that square measure
exported from Republic of India square measure created by these tiny enterprises. concerning
thirty fifth of direct exports and 15 August 1945 of the indirect exports square measure from the
little scale industries. therefore India’s export business majorly depends on these tiny industries
for his or her growth and development.

4. Welfare of the general public Other than economic reasons, these industries also are vital for
the social growth and development of our country. These industries square measure sometimes
started by the lower or bourgeois public. they need a chance to earn wealth and worker others. It
helps with financial gain distribution and contributes to social progress.

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 Management Principles of Small Scale Industry

Advantages/Disadvantages of Small Scale Industries

Advantages Of SSI:-

• Close supervision
• Nature of demand
• More employment
• Need of small capital
• Easy management
• Freedom of work
• External economies
• Direct relation between the workers and the employee
• Direct relation between the customers and the produce

Disadvantages Of SSI:-

• High cost of production

• Wastage of by-products
• Less use of machine
• Lack of division of labour
• Lack of research
• Old techniques
• Costly raw material
• Difficulty in getting loans
• Difficult to face economic crisis

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 Management Principles of Small Scale Industry

Chapter No : 04

CONCLUSION

In this project we learnt about the actual management of Small Scale Industries, we learned
about the principles and tips of management that should be applied to the Small Scale Industries.
We also learned about the role of SSI in Indian Economy, the Steps to manage Small Scale
Industries, Characteristics of SSI, Objectives of SSI and also saw the Seven essential principles to
manage SSI. In this project we also discussed about some of the advantages and disadvantages of
Small Scale Industries. This Project help us to gain all the knowledge that is required to manage a
Small Scale Industry in an efficient way. .

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 Management Principles of Small Scale Industry

Chapter No : 05

REFERENCE

1. Gross, Samantha (2021-06-24). "The challenge of decarbonizing heavy industry". Brookings.

Retrieved 2021-10-04.
2. ^ Suman, Jachym; Uhlik, Ondrej; Viktorova, Jitka; Macek, Tomas (2018-10-16). "Phytoextraction
of Heavy Metals: A Promising Tool for Clean-Up of Polluted Environment?". Frontiers in Plant
Science. 9: 1476. doi:10.3389/fpls.2018.01476. ISSN 1664-462X. PMC 6232834. PMID 30459775.
3. ^ "Mitsubishi Heavy Industries, LTD. Global Website | the Dynamism of Turbochargers".
4. ^ Teubal, Morris (1973). "Heavy and Light Industry in Economic Development". The American
Economic Review. 63 (4): 588–596. ISSN 0002-8282.
5. ^ Park, Jong H. "The East Asian Model of Economic Development and Developing Countries."
Journal of Developing Societies 18.4 (2002): 330-53. Print.
6. ^ Kumar, N. (2020). EAST ASIA’S PATHS TO INDUSTRIALIZATION AND PROSPERITY:
LESSONS FOR INDIA AND OTHER LATE COMERS IN SOUTH ASIA.
7. ^ Wade, Robert (2003-11-30). Governing the Market: Economic Theory and the Role of
Government in East Asian Industrialization (With a New introduction by the author ed.). Princeton,
NJ: Princeton University Press. ISBN 978-0-691-11729-4.
8. ^ Birman, Igor (1988-04-01). "The imbalance of the Soviet economy". Soviet Studies. 40 (2): 210–
221. doi:10.1080/09668138808411750. ISSN 0038-5859.
9. ^ Walder, Andrew G. (2015-04-06). "5, 8". China Under Mao. Harvard University
Press. ISBN 978-0-674-28670-2.
10. ^ Naughton, Barry J. (2006-10-27). The Chinese Economy: Transitions and Growth. Cambridge,
Mass: The MIT Press. ISBN 978-0-262-64064-0.

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 Management Principles of Small Scale Industry

Teacher Evaluation Sheet

Name of Student: Gadhave Abhishek A.

Enrollment No: 2009920074

Course Title: Diploma in Electrical engineering Code:22509

Title of the Micro-Project: MANAGEMENT PRINCIPLES OF

SMALL SCALE INDUSTRY

Course Outcomes Achieved:

a) Collect the information on Small scale industries

b) Select alternative resources for more information.

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 Management Principles of Small Scale Industry

Evaluation as per Suggested Rubric for Assessment of Micro Project

✓ (Please tick in appropriate cell for each characteristic)

Sr. Characteristic Poor Average Good Excellent

No to be assessed ( Marks 1-3 ) ( Marks 4 - 5 ( Marks 6 - 8 ( Marks 9- 10
) ) )
1 Relevance to Relate to very Related to some Los Take care of atleast Take care of
the course few LOs one CO more than one
CO

2 Literature Not more than two At-least 5 relevant At –least 7 About 10

Survey sources (primary sources, at least 2 relevant sources, relevant
/information and secondary), latest most latest sources, most
collection very old reference latest

3 Completion of Completed less Completed 50 to 60% Completed 60 to Completed

the Target as than 50% 80% more than 80
per project %
proposal
4 Analysis of Sample Size small, Sufficient and Sufficient and Enough data
Data and data neither appropriate sample, appropriate collected by
representation organized nor enough data sample, enough sufficient and
presented well generated but not data generated appropriate
organized and not which is sample size.
presented well. No organized and Proper
or poor inferences presented well but inferences
drawn poor inferences drawn by
drawn organising
and
presenting
data through
Sr. Characteristic Poor Average Good Excellent
No to be assessed ( Marks 1-3 ) ( Marks 4 - 5 ( Marks 6 - 8 ( Marks 9-
) ) 10 )

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 Management Principles of Small Scale Industry

5 Quality of Incomplete Just Well Well

Prototype/ fabrication/assembly. Assembled assembled/fabricated assembled/fa
Model with proper bricated with
/fabricated and parts functioning parts. In proper
are not functioning proper shape, within
well. Not in proper tolerance functioning
shape, dimensions dimensions and parts. In
beyond tolerance good proper shape,
limit. within
finish/appearance.
Appearance/finish is tolerance
But no creativity in
shabby. dimensions
design and use of and good
material finish/appear
ance.
Creativity in
design and
use of
material

6 Report Very short, poor Nearly sufficient and Detailed, correct and Very
Preparation quality sketches, correct details about clear description of detailed,
Details about methods, material, methods, materials, correct, clear
methods, material, precautions and precautions and description
precaution and conclusion, but Conclusions. of methods,
conclusions omitted, clarity is not there in Sufficient Graphic materials,
some details are presentation. But not Description. precautions
wrong enough graphic and
description. conclusions.
Enough
tables, charts
and sketches

7 Presentation Major information is Includes major Includes major Well

not included, information but not information and well organized,
information is not well organized and organized but not includes
well organized. not presented well presented well major
information
,well
presented
8 Any other
(depending
upon nature of
project: please

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 Management Principles of Small Scale Industry

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 Management Principles of Small Scale Industry

Sr.No Characteristic to Poor Average Good Excellent

be assessed ( Marks ( Marks 4 - ( Marks 6 - ( Marks 9-
1-3 ) 5) 8) 10 )

Defense Could not Replied to Replied properly Replied most

9 reply to considerable to considerable of the
considerable number of number of questions
number of questions but not question. properly
question. very properly

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 Management Principles of Small Scale Industry

Micro – Project Evaluation Sheet

(A) (B)
Process and Product Total Marks
Assessment Individual Presentation/Viva
10
(6 Marks ) (4 Marks )

Comment/Suggestion about team work/leadership/inter-personal communication (if any)

Name and Designation of the Teacher: Prof. Shinde .D.L (Lecturer)

Dated Signature.

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 Management Principles of Small Scale Industry

Micro-Project Proposal
“DETAILS OF CONTRACT”
1.0 Aim of the Micro-Project

The main aim of this micro project is details of contract

2.0 Course Outcomes Addressed

a) Collect the information on Small scale industries
b) Select alternative resources for more information.

3.0 Proposed Methodology

1. To study the Small scale industry

2. To study the management principles of Small scale industry

4.0 Action Plan (sequence and time required for major activities for 8 Weeks)

Planned Start Planned Name of Responsible

S. No. Details of activity
Date Finish date Team Members
1 Pratik Bhor
To subject.
Pratik Bhor
2 Selection of micro project title
3 Search & collect information Pratik Bhorj
related to selected topic
4 Completion of micro project topic Pratik Bhor

Proposal
5 Analyze & finalize collected data Pratik Bhor
For micro-Project report.
6 Finalize Design Pratik Bhor
7 Implementation of micro project Pratik Bhor
8 Report preparation, finalization, Pratik Bhor
Submission

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 Management Principles of Small Scale Industry

5. Resources Required

S. No. Name of Resource /Material Specifications Qty. Remarks

1 Window10 EDIT
1 PC
2 Management NOTES
1 Book

(Prof. Sinde .D.L)

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