Project Report on Readymade Garment Shop [Special

Project Report on Readymade Garment Shop

[Special Reference to Ladies Garment Shop]

Smt. L.R.T. College of Commerce, Akola. - 1 -

A Project Report on

“READYMADE GARMENT SHOP” “READYMADE GARMENT SHOP” “READYMADE GARMENT SHOP” “READYMADE GARMENT SHOP”

[[[[Special Reference to Ladies Garment ShopSpecial Reference to Ladies Garment ShopSpecial Reference to Ladies Garment ShopSpecial Reference to Ladies Garment Shop]]]]

A Project report submitted to the Sant Gadge Baba Amravati University,

Amravati.

In Partial Fulfillment of the requirement for the Degree of “Master of

Commerce”

Submitted By

Ku. Swapna Rambhau Gokhe

Prof. Dr. M. C. Dabre Prof. L. R. Sharma

(Project Guide) (Head of the Project Committee)

Dr. S. G. Chapke

(Principal)

The Berar General Education Society’s

Smt L. R. T. College of Commerce, Akola.

Recognized by Government of Maharashtra & Affiliated to Sant Gadge

Baba Amravati University, Amravati. (Accredited With “B+” Grade by NAAC, Banglore)

2008 – 2009




Smt. L. R. T. College of Commerce, Akola.

CertificateCertificateCertificateCertificate

This is to certify that, Ku. Swapna Rambhau Gokhe is a bonafide student

of M.Com. [Semester IV] of Smt. L. R. T. College of Commerce, Akola.

1. That the candidate has satisfactorily conducted the project work

for not less than one academic year and

2. That the project is result of the candidates own research work and is of

sufficiently high standard to warrant its presentation for examination.

Prof. Dr. M. C. Dabre Prof. L. R. Sharma

(Project Guide) (Head of the Project Committee)

Dr. S. G. Chapke

(Principal)

Place: Akola.

Date:





Candidate’s Declaration Candidate’s Declaration Candidate’s Declaration Candidate’s Declaration

I hereby declare that the project repost entitled

Readymade Garment Shop is the result of my own

research work for the degree of master of commerce and it

has not been submitted earlier by me to this or any other

university.

Ku. Swapna Rambhau Gokhe M. Com. Semester IV


Place: Akola.

Date:

Letter of TransmissionLetter of TransmissionLetter of TransmissionLetter of Transmission




This is certified that Ku. Swapna Rambhau Gokhe

student of Smt. L. R. T. College of Commerce, Akola,

Studying in M. Com. [Semester IV], she has visited to our

Shreeji Kapad Kendra, Akola for getting all relevant

information relating to her project.

Shreeji Kapad Kendra

Akola

Place: Akola

Date:




AcknowledgementAcknowledgementAcknowledgementAcknowledgement

Writing a project of this kind is very difficult job. But it could be completed

because of the help and support from many corners. It is my desire to mention my

fillings about support sources here.

Every research, in any field, needs proper guidance of experts and

knowledgeable person. I feel immense pleasure in expressing whole hearted thanks

towards my project guide Prof. Dr. M. C. Dabre for his outstanding guidance,

enthusiastic suggestions immensely valuable encouragement throughout the course of

the study. Without the pillars of his support and co-operation I could not have even

taken a single step towards completion of this project.

I would like to express my deepest sense of gratitude toward Principal, Dr. S.

G. Chapke and Prof. L. R. Sharma for their sincere help and constant encouragement.

And I am also thankful to Dr. S R. Baheti sir to provide me for library books and

magazines information.

I shall be failing in my duty if I don’t acknowledge enormous support and

assistance received from my family members throughout this endeavors. Their kind

blessings lead me to see these days of achievement and satisfaction.

I am also thankful to all my dear friends who motivated me in accomplishing

this project work.

Last but the foremost important I would like to thank God for sending so many

people in my life to help me.

Ku. Swapna Rambhau Gokhe M. Com. Semester IV


Place: Akola.

Date:




INDEX

SR.

NO. PARTICULAR PAGE NO.

1.

CHAPTER 1 : INTRODUCTION

1.1 Introduction

1.2 Selection of the Project

1.3 Profile of the Subject

1.4 Importance of the Subject

07 TO 15

2.

CHAPTER 2 : PROJECT METHODOLOGY

2.1 Meaning of the Project

2.2 Methodology of the Project

2.3 Data Collection

2.4 Objectives of the Study

2.5 Limitations of the Study

16 TO 19

3.

CHAPTER 3 : PROJECT COST

3.1 Meaning of the Project Cost

3.2 Analysis of the Finance

3.3 Analysis of the Project Cost

[Essentials / Estimated]

3.4 Essentials for the Business Establishment

3.5 Capital Structure and Profit

3.6 Ratio Analysis

3.7 List of Suppliers

20 TO 32

4. CONCLUSIONS AND SUGGESTIONS 33 TO 34

5.

APPENDIX

A. Questionnaire

B. Bibliography

C. Application Forms

35TO 37




CHAPTER NO 1

INTRODUCTION

1.1 INTRODUCTION

As the technology advances each and every sector has been rapidly developed like a

Government Sector, Engineering Sector, etc. then how can the “READYMADE GARMENT SHOP”

become backward. Each and every person wants to look like a hero and heroine. As the

fashion takes place, they want to wear more fashionable cloths.

In movies actor and actresses are wearing different types of dresses and sarries. Every

person wants to look like them. With the increase in fashion every person want to wear that

type of cloths. Some people purchase cloth material and visit at the tailor shop for stitching

the dresses they like. But it takes too much time. Fashion is growing up day to day.

Readymade Garment Shops are opened. People are satisfied from Readymade Garment Shop

and people also save their valuable time. Readymade Garment Shop provides better design

dresses to customers.

With the change in the trend in fashion market Readymade Garment have become

very popular. Most of the people used to wear Readymade Garment Shop have become very

popular. Most of the people used to wear Readymade Garment in case of time saving activity.

Especially ladies have taken very much interest in new designs and fashionable garments.

New fashion designers made new trend designs to attract customers and mostly to

female customers. They like to wear new fashion cloths or new look of garment. There are

various types of dresses which are very reasonable to general or ordinary people.

Readymade Garment Company like as Nain See Private Ltd., Saujnya Dresses,

Ashika Sarries and Dresses, Garden Dresses, Damini Sarries and Salwar Suit, etc. makes

garment very attractive and it gives it special effect to that garment or dresses to be very

attractive. There work of various types of stitches like “Kashmiri Buta, Kunadan Work or

Jardari Work is become very famous in new trend. There are various other companies are

also work to give better quality product.

In recent years many people are interested in wearing Readymade cloths and specially

ladies have most interest in that type of cloths so when the researcher is a lady it takes too




much interest for the topic. So that researcher selected the subject Readymade Garment Shop

[Ladies Garment Shop] as the study of the project.

1.2 SELECTION OF THE PROJECT

The best topic for the research is one which arises from the researchers own curiosity.

He can handle a topic in which he is really interested well than the one suggested by someone

else. The researcher who is prompted by scientific curiosity may be interested in some

general subject matter about which little is known. And when there is a lady researcher for

the topic like ladies cloths, the topic becomes very interesting and gives best results.

It is said that ‘select a project which will bring out improvement in the present status

of an activity’. Moreover such improvement should be quantifiable. It means that it should be

able to point out how much time, money and other resources can be saved or how much

enhancement in sales, production, efficiency and productivity can be achieved through the

implementation and suggestions and solutions.

The subject matter of the project should be such that it has underlying management

principles and theoretical framework on the basis of what data can be collected, analyzed and

arguments can be developed. The project idea should be such that it should be applicable in

other similar situations like the development of the idea, proving or disapproving of

hypothesis and methodology. The project should not be so exclusive that its principals have

no other application. The project work should be based on personnel hunch.

The selection of the topic is very important job for the researcher. In today’s

competitive world employment is emerging great problem. There are various causes

responsible for increasing unemployment. Some of them are even increasing population

computerization and automation. Thus in today’s world self employment is one of the best

opportunity. Readymade Garment Shop offers you this great opportunity of self employment.

From the researchers point of view it is very important that he will study all points

related to his topic. So his reason for doing this project to know how logistics helps in

material management. Logistics include the flow and storage of items from raw material to

customer delivery and other very important reason for selection of the particular topic is to

know about –




1) Material planning and control.

2) Purchase of goods.

3) Selling of goods.

4) Financial statement for the shop

5) Profit earnings etc.

1.3 PROFILE OF THE SUBJECT

There are various factors which plays very important part of any Readymade Garment

Shop. Followings are some of them-

A. Fashion:-

For some women, fashion is a way of life. It reflects their personality, their attitude,

their approach towards life, and their lifestyle. A closer look tells us that it refers to a

particular style of clothing which is worn by people on a national/ international level. Fashion

is not restricted to clothing alone. Anything with a touch of class, and a hint of the

extraordinary, something that catches the eye instantly, and is visually appealing, is

fashionable. Thus, fashion is a phenomenon that continues to change women's lives all over

the world. Today women have access to a wider range of fashionable clothes.

Over the years, women have embraced fashion to project themselves the way they

want to. Whatever women wear or use today, is a matter of great speculation and scrutiny.

Fashion has entered all arenas of women's lives, right from veiled hats to high-heeled shoes.

Their fashion consciousness and the need for fresh, new concepts and ideas from time to time

have given the fashion industry a major boost.

B. Fashion industry:-

The fashion industry is a huge platform which provides access to a wide range of

fashionable goods. This industry is a creative industry which involves continuous change,

innovativeness, and state-of-the-art technology.

Women's fashion industry comprises:

a. Designers

b. Manufacturers




c. Sellers/Marketers

d. Buyers

e. Others (Colorist, Forecaster, Illustrator, Models Etc.)

C. Market:-

The word market is derived from the Latin word “Mercantile” which means a place

where a business is conducted. In common parlance a market refers to a place where buyers

and sellers actually meet to effect purchase and sales. In other words, a market is a particular

place where goods are brought and sold.

In a broader sense, a market does not necessarily mean a place. The term ‘market’ and

‘sellers’ in person, by mail, telephone, telegraph, cable fax as any other means of

communication so that their mind may meet of effect purchases and sales.

Philip Kolter says that,

“Market is the set of actual and potential buyers of product”.

D. Marketing:-

The term marketing refers to the sum of activities involved in finding out the needs of

the potential buyers developing the products and services to satisfy those needs and making

them available to those who need them at the slight time at the right places, in the required

quantities, at the right prices.

Marketing consist of all those activities which are included in the process of flow of

goods from the production centers to the consumers. The whole process involves the creation

as time, place and possession utility.

Druker defines that

“Marketing is a process which converts resources, distinct knowledge into a

contribution of economic value in the market.”

E. Business




Business in an economic activity which is conducted with the aim as motive of

earning profits, business refers to all those activities which are concerned with production and

distribution of goods and services. The term business has two wings or two aspects or two

branches. One aspect of business is commerce.

Keith Devis says that,

“Business may be defined as the organized efforts of individuals to produce goods

and services to sell these goods and services in a market place and to reap some rewards for

this effort.”

F. Advertising

The word advertising has been derived from the Latin word “Adverter” which means

‘turn to’ as turning the attention towards the products. Advertisement means to make the

product know to the word with the help of attractive advertisement policy. Customer may be

demand more for those particular products but the main function or work of advertising is

create a place in minds of people to purchase the product because the main objective of

advertising is to increase the sale.

Definition given by Prof. Albert Fray

“Advertising as the preparation or visual or oral messages and their dissemination

through paid media for the purpose of making people aware of and favorably inclined

towards a product, brand, service, institution, idea or point of view”.

G. Services

In modern time services are extend become a valuable things for all the business in

situations services which are closely relating with the customer or user is the necessity of

every business with the help of services the seller provides number of services to the

customer or earning a profit or the other side consumer get satisfaction of their need by

paying same amount for the services. Another important thing is that the people who want to

share a thought, pleasure or pains which are closely related with services.

H. Discount




Discount is a deduction given by seller to buyer on sale price of the goods so as

increase sale or for immediate payment of sale price in case of cash sale. It is always offered

by buyer at percentage (%) of sale price. Discount scheme will be generally adopted in case

of off season period. So as to attract the customer or buyer will be ready to purchase bulk

quantities of goods.

“Discount is percentage reduction on sale price i.e. each cash discount which reduces

the invoice value of goods which reduces the invoice value of goods e.g. 25% discount on

cloths.”

I. Replacement guarantee

Replacement guarantee means the security to the customer about whole product. It is

the whole product may be change or replaced by another one. The customers have to fallow

the guarantee period for claim.

J. Gifts

Customers are very much attracted toward the gifts specially while giving one dress

free for purchasing two dresses.

For that shopkeeper prepares big banner with wording as_

“BUY TWO GET ONE FREE”

K. Window display

In this method actual good are displayed in showcases to attract the attention of the

prospective buyers. As the goods are displayed in showcases outside the shop, people are

allowed to watch and inspect the goods. This provokes the prospective buyers to buy the

goods.

L. Showroom

In this method of advertising spacious area is provided for display of goods hence

they are arranged very systematically in an attractive way. The visitors to such showroom,




who are prospective buyers, are allowed to handle and inspect the goods presented in

showroom.

M. Customer service

Customer service is the overall activity of identifying and satisfying customer needs. .

As an overall description of the desired relationship between a supplier and a customer.

'Service' in this sense is based on the premise that every commercial transaction is a service.

Customer service is one of the most important ingredients of the marketing mix for products

and services. High quality customer service helps to create customer loyalty. Customers

today are not only interested in the product they are being offered but all the additional

elements of service that they receive from the greeting they receive when they enter a retail

outlet, to the refund and help that they receive when they have a complaint about a faulty

product that they have paid for.

N. Customer expectation

Customers are people who buy products and services from other people. What

customers thin it is the job of marketers to understand the needs of their customers. In doing

so they can develop goods or services which meet their needs more precisely than their

competitors. The problem is that the process of buying a product is more complex than it

might at first appear. Customers do not usually make purchases without thinking carefully

about their requirements. Wherever there is choice, decisions are involved, and these may be

influenced by constantly changing motives and feel about a company and/or its products is a

key aspect of business success.

O. Customer requirements

The supermarket industry provides a good example of the way in which different

groups of customers will have different expectations. Some customers just want to buy

standard products at the lowest possible prices. They will therefore shop from supermarkets

that offer the lowest prices and provide a reasonable range of goods. In contrast, some

supermarket shoppers are seeking such aspects as variety and quality. They will therefore

choose to buy from an up-market supermarket. Additionally some customers will have

special tastes such as wanting to buy FAIRTRADE products or organic fruit and vegetables. It




is clear therefore that to be successful a business has to have a clear understanding of their

target customers and the expectations of this group.

1.4 IMPORTANCE OF THE SUBJECT

In modern business every business should be given greater importance whether it has

be in the nature of large, middle, small scale industry. The various important things are in

Readymade Garment Shop.

In today’s large competition it is essential to know ones market position. A successful

organization has to know its strength and weakness and in the market along with Readymade

Garment. Market study stimulates need by taking appropriate steps for remaining defects in

its marketing effect.

Project of Readymade Garment serves as instrument for development of certain

important skills in commerce and management student to make earning more effective these

skills are as follows _

a) Analytical Skill

b) Communication Skill

c) Research Skill

d) Decision making Skill

Importance Of The Study Of Readymade Garment Shop Is As Follows:

I. Readymade Garment Shop business is that type which has little investment and more

profit.

II. It is a business where in short production period, business can earn a lot.

III. This business provides grater availability of market.

IV. In that kind of business we can provides various job opportunities to all kinds of

people like men and women.

V. This project provides us information about various Government policies, production

policies, sale and profits, etc.

VI. Readymade Garment Shop provides all types of knowledge for business, market as

well as employment.

*****




CHAPTER NO 2

PROJECT METHODOLOGY

2.1 MEANING OF THE PROJECT:

A project is a scientific and systematic study of a real problem faced by and

organization with an object to resolve it with the application of management concepts and

skills. The study can deal with a small or a big problem faced by the enterprise in a discipline

of management like finance, marketing, production, personnel. The essential requirement of a

project is that it should entail scientific collection, analysis and interpretation of data leading

to valid conclusion. Form the study attempting to diagnose and identify managerial problems

and at the same time providing him an exposure to the real business world. Form the

organization point of view it is a sort of feedback of its policies and plans which may

facilitate the decision making.

A project is a kind of action oriented research aiming at the detection managerial

problem of a business organization and inviting the efforts to solve those. It provides a

scientific basis or managerial decision and actions.

Definition

“A project is scientific and systematic study of real issue or a problem with the

intention of resolving the problem by application of management concept and skill”.

“A project work is a scientifically evolved work plan devised to achieve a specific

objective within a specified period of time.”

2.2 METHODOLOGY OF THE PROJECT

A. Project methodology

A project methodology tells you what you have to do, to manage your projects from

start to finish. It describes every step in the project life cycle in depth, so you know exactly




which tasks to complete, when and how. Whether you're an expert or a novice, it helps you

complete tasks faster than before.

Method refers to the procedure for obtaining knowledge based on empirical

observations and logical reasoning. Methodology refers to the logic of scientific

investigation. It is a procedure of empirical investigation. It is not concerned with build of

knowledge but how knowledge is built, i.e. how facts are collected classified and analyzed.

B. Methods of research

Following are the main types or method of research which are generally used by any

researcher

a) Case study method

b) Historical method

c) Experimental method

d) Survey method.

a) case study method

Case study is a recent development in research. Case study is a method of exploring

and analyzing the life of a social unit, a person, a family, institution, cultural group or even an

entire community.

b) Historical method

This method investigates the past events and phenomena on the basis of historical

documents and evidences. It seeks to find explanation of questions of current interest by an

intensive study of past.

c) Experimental method

In this method the researcher studies the effect of independent variable on dependent

variable by artificially controlling the effect of rest of the variables. It is conducted in

fundamental sciences like physics, chemistry, biology, nuclear science, etc. through

laboratory experiments.

d) Survey method




The survey is a method of analysis in scientific and orderly form for defined purpose

of social situation of problem or population.

Above explained are the basis methods used for most of the researcher. In the project

like readymade garment shop researcher is interested to use the survey method because the

survey method is a technique of investigation by a direct observation of a phenomena or by

systematic gathering of data from population. It involves a systematic and comprehensive

study of a particular group, community, or organization, etc. with a view to analyzed a social

problem and presentation of recommendation for its solutions.

The first, second and third method both have some special conditions so the

researcher cannot apply it to each and every research. So it is better to use survey method for

deep study of our subject.

In survey method a techniques of investigation by direct observation is used. But we

can also use various publications, reference books, magazines, articles, etc. to collect data. So

we select the survey method for our research study.

2.3 DATA COLLECTION

A project work is totally depends on collection of data, or collecting all relevant

information which are necessary for project work. The collection of data means a purposive

gathering of information relevant to the subject matter of investigation from the units of

population under investigation. Collection of data makes the most important step of any

research enquiry or statistical enquiry. If data collected is not correct, reliable, relevant, and

appropriate, one can not obtain valid and useful results from the enquiry.

Collection of data requires common sense, experience, and knowledge. One should be

alert, tactful, cautious and sensitive while collecting data for any statistical enquiry. In the

preparation of this project report the data is collected form above sources.

A. Primary sources

a. Observation

b. Interview

c. Questionnaire

B. Secondary sources




d. Magazines

e. Books

f. Library

g. Internet

2.4 OBJECTIVES OF THE STUDY

Followings are the main objects of the study

I. To study the scope of financial approach concerning to the cloth business.

II. To find out the potential benefits and opportunities lie in this business.

III. To study the information about various suppliers of the product.

IV. To study the management policy or formulation of production policy, marketing,

storing, etc.

V. To make the study of marketing skills.

VI. To evaluate profitability

VII. To study the management of capital and other sources.

VIII. To acquire useful guidelines to venture in cloth market.

2.5 LIMITATIONS OF THE STUDY

I. This project report mainly focused on ladies dress or other cloths trading, which is just

a part of cloth trading. Other different kinds of trades under clothing sector are not

considered.

II. A new firm may find it difficult to enter in cloth trading as the already established firms

may give them a tough competition.

III. The scope of study is limited to marketing profile of Readymade Garments.

IV. The firm needs to maintain varieties of stock, which ultimately demanded for huge

investment.

*****




CHAPTER NO 3

PROJECT COST

3.1 MEANING OF PROJECT COST

Project cost is a statement which presents detailed information relating to the various

stages of cost, and it also shows the total cost of product manufactured during particular

period of time. Thus the project cost is prepared for particular period of time, via-monthly,

quarterly or yearly, etc.

It has already been explained earlier that manufacturing accounts deals with cost

relating to cost of goods manufactured i.e. only prime cost & factory cost. Its offices and

administration expenses are added to the costs, we get the cost of production. Similarly, if

selling and distribution expenses are added to the cost of production we get cost of goods sold

or total cost.

Object of preparing project cost

I. The total cost and cost per unit of production can be ascertained.

II. After proper comparison the management may take the corrective measures.

III. It helps the management while formulating suitable production policy.

IV. It is very helpful to submit the price quotation for tenders.

V. It also helps the management by supplying suitable information for management

control.

3.2 ANALYSIS OF FINANCE

Finance is the life blood of any industrial or commercial undertaking. It is needed for

starting the business. Some capital is required, without the money business are not run in

good manner. Because every need of the shop management fulfillment made by the money.

When starts the business, available money could a capital. Capital is playing very important

role in the business transactions. Finance is not important in large scale and small scale.

Every enterprise needs the finance these fulfillment made by the following medium

A. Bank

B. Government policies




C. Private financial groups

D. Money lender

E. Finance from relatives

A. Bank

The business starts needs the finance. The businessman involves the all money for the

business function is growing fast. But all the business may not fully capable in the finance

department so they need the money. Various financial institutions are ready to provide the

facility of credit money. But most popular word in the financial sector called a Bank. Banks

play the important role in the industry because the finance is the Readymade product which

made the shop to run the business. Banks provide the credit facility to the business. The

capacity of credit means loan depend upon the nature because the loan provide with the

following rules and conditions of Banks. In all view the finance taken from Bank economical

truthful, secure, etc. so that large amount loans are demanded from Bank.

The Bank provides the finance in low rate of interest. The comparison between the

rate of interest and services of both sides the Bank get the appreciated. Bank also provides the

special policies and schemes to the business. The transaction should be held in accordance to

the law. The investment made by self is only 20% to 30% of total capital. Balance 70% to

80% amount is provided by the Banks. The payment of loan in adjusting premium or

installment all are overview of the financial conditions.

B. Government policies

The business start for that needs the finance. The need of finance fulfillment is made

by Banks. The project passed by Government which provides the Bank loan and the project

allots the subsidies to the business. The Government provides the infrastructure facility to the

business. The Government also provides 20% to 30% subsidies on the business cost. With

adopting the strategy the industrial development increases.

The unemployment problem solves by Government by providing financial assistance

to the business. The different schemes and policies attract to unemployment person to start

the employment and self employment. The Government wants to increase standard of living

of society for that income of every person increases.




C. private financial companies

The private financial companies provide the finance to the business. The need of the

business satisfies by money which provides by the private financial companies. In current

times the private companies are get part in the finance. So they provide finance to the

backward and economic backward class, needy persons, businessman etc.

D. money lenders

For the every business need the finance. At that time the Banks and other sources of

finance are not capable or avoid provide the finance in certain limit. The businessman goes to

the money lender. Money lender provides the finance in large manner with less paperwork.

The less paper is the advantage in the businessman’s side so that he takes loan form money

lender on a high rate of interest.

The comparison between Bank and other sources of finance the difference in the rate

of interest. The money lender provide loan without security of wealth. They provide on one

sign on paper. The earliest get the finance in simple manner so that the businessman attract

towards the money lenders for the finance.

E. Finance from Relatives

The business gets the finance from the various source of finance. One of that

is finance from Relatives. In the business need of finance is the important thing. Suddenly the

emergency finance availability gets only the relatives of the businessman.

The finance gets without any security. Get money without any interest and pay

only principal amount. When person needs the finance firstly goes to the relatives for the

help.

3.3 ANALYSIS OF THE PROJECT COST

Cost analysis means that the drafting of all the procedure which relates the

production i.e. calculation of the project cost of Readymade Garment Shop.




In the pre-historic Stone Age when man killed an animal with the forces of his

hand, without the use of weapon. The cost activity was “Labor”. When that man converted

animals hide into his clothes the cost of his activity was material + Labor and when articles

began to be manufactured in his factories as in the present age the cost of the output began to

count as_

Material + Labor + Expenses.

PROJECT COST [ESTIMATED]

TABLE 3.1

A] Land and Building

I. Land 400 Sq. Feet @ 800 Sq. Feet 320000

Construction Area 300 Sq. Feet 200000

____________

520000

II. Other Fixed Asset

Furniture and Fixture 200000

Electrification 6000

License 6000

____________

732000

B] Working capital [per annum]

I. Salary and Wages 62400

II. Purchase of Garments 200000

____________

262400

C] Other contingency

I. Printed carry bags 6000

II. Telephone 10800

III. Stationary 5000

IV. Carriage 5500

V. Postage 3000

VI. Other Exp. 2000

VII. Advertising Exp. 800




____________

33100

D] Total Working Capital 294400

E] Total Capital Investment [A + B] 994400

F] Man Power Requirement 04 Person.

02 Labor 02 Workers

3.4 ESSENTIALS FOR THE BUSINESS ESTABLISHMENT

TABLE 3.2

Area In Market Place.

Plot 400 Sq. Feet.

Electricity Supply 220w.

Water Facility Water Purifier (Drinking Water)

Labors Total 04 People

Skilled Worker 02

Labor / Helper 02

Market Urban / Ruler

Financers Government

Private Financer

License Shop Act License

N.O.C.

M.S.E.B.

Name and Address of Offices

Shop Act License Under Maharashtra Shop Act 1948. Near Greenland

Cottage Hotel, Vidya Nagar, Murtizapur Road, Akola

No Objection Certificate Municipal Corporation, Gandhi Road, Akola

Electricity Supply

Rural Area Concern Engineer, Sub Divisional Office, Electricity

Board.




Urban Area Electricity Board, M.S.E.B. Main Office, Necklace

Road, Durga Chowk, Akola

Finances

Government S.B.I., Janta Bank, Nationalized And Co-Operative Banks

Private Sector H.D.F.C., I.C.I.C.I., Etc.

3.5 CAPITAL STUCTURE AND PROFIT

TABLE 3.3

Fixed Asset

Sr. No Particular Amount

1.

Land

400 sq. feet @ 800 sq. feet

320000

2.

Building

Construction area 300 sq. feet

200000

3.

Other Fixed Asset

Furniture and Fixture

Electrification

License

200000

6000

6000

Total 732000

TABLE 3.4

Working Capital (Variable Expenses)


1. Salary and Wages to Worker 62400

2. Purchase of Garment for Sale 200000

3. Other Contingency 32000

Total 294400

TABLE 3.5

Other Expenses


1. Printed carry bags 6000

2. Telephone 10800

3. Stationary 5000

4. Carriage 5500




5. Postage 3000

6. Other Exp. 2000

7. Advertising Exp. 800

Total 33100

TABLE 3.6

Total Sale


1. Sale of Garments 250000

2. Selling Expenses 3000

Total 253000

TABLE 3.7

Total Capital Invested


1.

Fixed Asset

Land and Building

520000

2.

Other Fixed Asset

Furniture, Fixture, Electricity, license, etc.

212000

3.

Variable Expenses

Salary, Stock, etc.

262400

4. Other Expenses 33100

Total 1027500

TABLE 3.8

Means of Finance


1. Loan form Bank 750000

2. Loan form Relative 200000

3. Self Contribution 77500

Total 1027500




TABLE 3.9

Man Power Requirement

Salary Salary Sr.

No Particular

Per Month Per Year

1. 2 Skilled Worker

1400 Rs. Per Worker

2800

33600

2. 2 Labor / Helper

1200 Rs. Per Labor

2400

28800

Total 5200 62400

TABLE 3.10

Total Profit


1.

2.

3.

Total Sales

- Cost of Goods Sold

Gross Profit

- Selling Expenses

- Other Expenses / Operating Expenses

250000

200000

50000

3000

33100

Net Profit 13900

3.6 RATIO ANALYSIS

Ratio analysis is an important technique of financial analysis which calculated the

financial stability and financial soundness of the concern. The simple ratios that are inherent

for assessing a firm position are as under_




1.Gross Profit Ratio

Gross Profit Ratio = Gross Profit

_____________ × 100

Sales

50000

= _____________ × 100

250000

= 20 %

2.Net Profit Ratio

Net Profit Ratio = Net Profit

_____________ × 100

Sales

13900

= _____________ × 100

250000

= 5.56 %

3.Operating Expenses Ratio

Operating Exp. = Operating Expenses

Ratio ____________________ × 100

Sales

33100

= _____________ × 100

250000

= 13.24 %

4.Selling Expenses Ratio

Selling Expenses = Selling / Distribution Exp.

Ratio _______________________ × 100

Sales

3000

= _____________ × 100

250000

= 1.2 %




5.Stock Turnover Ratio

Stock Turnover = Cost of Good Sold.

Ratio ____________________ × Times

Average Stock

200000

= _____________ × Times

55000

= 3.64 Times

Average Stock = Opening Stock +Closing Stock

___________________________

2

= 110000

_____________

2

= 55000

6.Operating Ratio = Cost Of Good Sold + Operating Exp.

_______________________________ × 100

Sale

= 200000 + 33100

______________ × 100

250000

= 93.24 %

Depreciation:

Generally, ‘depreciation’ means gradual decrease in the value of an asset which arises

due to normal wear and tear, obsolescence etc, in short, depreciation means the gradual

diminution, loss or shrinkage in utility value of an assets due to wear and tear in use, efflux

ion of time or obsolescence. It practically, the payment which is made against the purchase of

fixed asset is an advance payment for an expenses. Purchases of fixed asset represent claims

to service which will gradually expire and turn into expenses in the course of rendering

services over a number of years. Hence, the portion of fixed assets consumed during a

particular accounting period as result of its use is known depreciation.




Definition:

“Depreciation accounting is a system of accounting which claims to distribute the

estimated useful life of the unit in a systematic and national manner. It is a process of

allocation, not of valuation. Depreciation for the year is the portion of the year. Although

allocation may be properly take into account occurrences during the year. It is not intended to

be the measurement of the effect of all such occurrences.”

Depreciation chart

TABLE 3.11

Year Particular Building

(10%)

Furniture

(15%) Total

1st Year Actual Cost

- Less : Depreciation

520000

52000

200000

30000

82000

2nd Year


468000

46800

170000

25500

72500

3rd Year


421200

42120

144500

21675

63795

4th Year


379080

37908

122825

18424

56332

5th

Year


341172

34112

104401

15660

18452

Total 307060 88741

3.7 NAME AND ADDRESSES OF STOCK SUPPLIERS

1. Akola : Deepak Garment, New Cloth Market, Akola.

2. Amravati : Shreeram Hogiary, Tahsil Road Amravati.

3. Mumbai : 37-41, Ansar Manzil, 2nd Floor, Room No-36, Mumbai




4. Delhi : 4525, Gali Jatan, Puhari Dhiraj, Sardar Bazaar, New

Delhi.

5. Chennai : 765-B Anna Nagar, West Exth, 4th Avenue, Chennai.

*****




CONCLUSIONS AND SUGGESTIONS

A. CONCLUSIONS

1. Clothing and textile sector forms a part for heritage of India and exemplifies the

richness and diversity of our country.

2. Akola town itself is the biggest cloth market throughout the vidarbha region.

3. Cloth trading is having an important place in Akola market. This project throws light

on clothing sector and business opportunities it has.

4. New entrepreneurs may venture into this sector to acquire the potentials and benefits

lie in this field.

5. Through this project, one can develop and understandings of the nature, scope and

financial aspect of cloth business especially trading of dress material.

6. As the Indian fashion industry is growing every day, Indian dress designer’s touch,

creating garment which are truly outstanding. Designers are always experimenting

with the new design, style every season. For this purpose, they require dress material.

7. One can show their creativity and innovative thinking over cloth material as they

cannot experiment with readymade outfits.

8. People today are more fashion conscious. They prefer to wear fashionable and

designer outfit. So this business is more profitable.

9. Women want to be more stylish and descent. So they like to buy dress from more

reliable and stylish shop as per their requirement.

10. They want the dress which are more designed and stitched with latest fashion. So the

readymade garment shop gets the indeed significant place in market.

11. This business requires huge investment and it also involves some risk factors.

12. Its scope is wider as Akola is rapidly growing and developing market place.




B. SUGGESTIONS

Followings are the few suggestions which I would like to suggest for this type of

business.

1. To open a cloth shop it is recommended to invest a fairly huge sum of money

2. Variety of stock is to be maintained as the fashion of cloth changes too rapidly,

moreover huge color rang is to be maintain to satisfy the needs of customers.

3. Owing to cut throat competition the shop owner needs to keep latest and fashionable

stock to attract to large number of customers.

4. Location plays the key role for this business. For a shop in a prime locality would

definitely be a plus point for the business.

5. Take care of customers by providing them various services to be still stand in the

market for long time.

6. They should have to know customer value

7. They have to develop their communication skill.

8. They should always aware about their social responsibility.

9. Develop self confidence and sufficient product knowledge.

10. They should adopt pleasant and likable disposition

11. Sense of humor necessary to cool down an angry customer and reduce tension in the

atmosphere.

12. Tactfulness to do the correct things at the right moment to win customers.

13. Co-operation and helpfulness to build an effective sales team and to develop good

customer relationship.




Appendix 1

QUESTIONNAIRE

This is the most popular method of extracting information from people. They are

usually conducted by post, telephone or in person. Questionnaires are easy to administer and

easy for respondents to deal with. They simplify the analysis of results, and can provide

surprisingly detailed information. A useful way of delivering a questionnaire is on-line. .

However, questionnaires are easy to 'cheat' on and a market research agency will ensure that

'control questions' has been built in to check that the questionnaire has been filed in a suitable

fashion.

1. Name of Proprietor

2. Address of the Shop

3. Education of the Proprietor

4. Year of Establishment

5. Nature of Business Wholesale / Retailer

6. If Rental, Amount of Rent Monthly / Yearly

7. Area of Shop

8. How much space require for opening a cloth shop

9. Reason for Accepting Business

10. Any Other Additional Business Yes/No

11. Which of One

12. What are the legal formalities to be fulfilled for starting a new business?

13. Total Capital of Business

14. How You Established This? Self / Relative / Friend

Circle/Loan from Bank

15. How Your Family Member Help You in

This Business Directly / Indirectly

16. If There Is Partner in Shop Yes / No

17. If Yes Then How Many Partners Are There?

18. If You Supply Good To the Customer on Order




19. Do You Get Advance Payment While Ordering?

20. If There Is Other Godown for the Stock of Goods

21. What Varieties Of Material Do You Keep In Your Shop?

22. Do You Keep Annual Statement?

23. What Is Your Annual Expenditure?

24. What Is Your Annual Income?

25. If There Are Any Employees in Your Shop

26. How Many Are They

27. What Is The Salary of Employee?

28. Did You Fill Business/Income Tax? Yes / No

29. If Yes How Much Is It

30. What Are The Risks of The Shop?

31. Which Problem Did You Face While Doing This Business.




Appendix 2

BIBLIOGRAPHY

Sr. No Author Name Book Name Publishing House Year of

Publication

A. Books

1. Bhosle R. M. Organization of

Commerce

Nilkanth

Publishing House

Mumbai

June 1996

2. Franandes S.

Organization of

Commerce And

Management

Himalaya

Publishing House

Nagpur

2006-2007

3. Herekar Dr.P.M.

Research

Methodology And

Project Work

Phadke Prakashan

Pune

September

2004

4. Nakkiram Dr S. Research Methods

In Social Sciences

Himalaya

Publishing House

Nagpur

2001-2002

5. Shivkumar M.

Prakash M.

Guideline of

Project Report

Himalaya

Publishing House

Nagpur

2001-2002

B. Magazines

6. Nath Paresh Gruhshobha

Delhi Press

Bhavan,Rani

Zansi Marg New

Delhi

Oct.2008

7. Tiwari jitendra Udyamita Vishwapti Laghu

Udyog Oct.2008.

8. Varma Pradip Lokprabha

At Indian Express

Newspapers

(Bombay)

Oct.2008.

C. Internet

I. www.womenfashionwear.com

II. www.time100.co.uk

III. www.readymade-garment.com/india

IV. www.jimyellowpages.com/kokata/8/readymade.garment

V. www.webduniya123.com/city/delhi

VI. www.marketresearch.com

VII. www.answers.com

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