Project Report On Readymade Garment Shop [special 6k2u3f

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Shop]

A Project Report on

“READYMADE GARMENT SHOP” [Special Reference to Ladies Garment Shop] 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 (Project Guide)

Prof. L. R. Sharma (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 & d to Sant Gadge Baba Amravati University, Amravati. (Accredited With “B+” Grade by NAAC, Banglore)

2008 – 2009

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

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

Certificate 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 (Project Guide)

Prof. L. R. Sharma (Head of the Project Committee)

Dr. S. G. Chapke (Principal)

Place: Akola. Date:

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

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

Place: Akola. Date:

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

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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:


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Acknowledgement Writing a project of this kind is very difficult job. But it could be completed because of the help and from many corners. It is my desire to mention my fillings about 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 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 and assistance received from my family 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 Smt. L. R. T. College of Commerce, Akola.

Place: Akola. Date:


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INDEX SR.

PARTICULAR

NO.

PAGE NO.

CHAPTER 1 : INTRODUCTION 1.1 Introduction 1.

1.2 Selection of the Project

07 TO 15

1.3 Profile of the Subject 1.4 Importance of the Subject

CHAPTER 2 : PROJECT METHODOLOGY 2.1 Meaning of the Project 2.

2.2 Methodology of the Project

16 TO 19

2.3 Data Collection 2.4 Objectives of the Study 2.5 Limitations of the Study

CHAPTER 3 : PROJECT COST 3.1 Meaning of the Project Cost 3.2 Analysis of the Finance 3.3 Analysis of the Project Cost 3.

[Essentials / Estimated]

20 TO 32

3.4 Essentials for the Business Establishment 3.5 Capital Structure and Profit 3.6 Ratio Analysis 3.7 List of Suppliers 4.

CONCLUSIONS AND SUGGESTIONS

33 TO 34

APPENDIX 5.

A. Questionnaire

35TO 37

B. Bibliography C. Application Forms


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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


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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 –


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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 themA. 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


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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


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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. ment means to make the product know to the word with the help of attractive ment 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 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


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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,


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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


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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.

*****


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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 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


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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


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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


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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.

*****


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


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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 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 ed 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.


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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.


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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 II. Purchase of Garments

62400 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. VII. Advertising Exp.


2000 800

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____________ 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.


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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

Land 1.

400 sq. feet @ 800 sq. feet

320000

Building 2.

Construction area 300 sq. feet

200000

Other Fixed Asset 3.

Furniture and Fixture

200000

Electrification

6000

License

6000 Total

732000

TABLE 3.4

Working Capital (Variable Expenses) Sr. No

Particular

Amount

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 Sr. No

Particular

Amount

1.

Printed carry bags

2.

Telephone

10800

3.

Stationary

5000

4.

Carriage

5500


6000

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5.

Postage

3000

6.

Other Exp.

2000

7.

Advertising Exp.

800 Total

33100

TABLE 3.6

Total Sale Sr. No

Particular

Amount

1.

Sale of Garments

250000

2.

Selling Expenses

3000 Total

253000

TABLE 3.7

Total Capital Invested Sr. No

Particular

Amount

Fixed Asset 1.

Land and Building

520000

Other Fixed Asset 2.

Furniture, Fixture, Electricity, license, etc.

212000

Variable Expenses 3.

Salary, Stock, etc.

4.

Other Expenses

262400 33100 Total

1027500

TABLE 3.8

Means of Finance Sr. No

Particular

Amount

1.

Loan form Bank

750000

2.

Loan form Relative

200000

3.

Self Contribution

77500

Total


1027500

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TABLE 3.9

Man Power Requirement Sr.

Particular

No 1.

Salary

Salary

Per Month

Per Year

2800

33600

2 Skilled Worker 1400 Rs. Per Worker

2.

2 Labor / Helper 1200 Rs. Per Labor Total

2400

28800

5200

62400

TABLE 3.10

Total Profit Sr. No 1.

Particular Total Sales

250000

- Cost of Goods Sold 2. 3.

Amount

Gross Profit - Selling Expenses

200000 50000 3000

- Other Expenses / Operating Expenses Net Profit

33100 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_


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1.Gross Profit Ratio Gross Profit Ratio

=

Gross Profit _____________ × 100 Sales

=

50000 _____________ × 100 250000

=

20 %

=

Net Profit _____________ × 100 Sales

2.Net Profit Ratio Net Profit Ratio

=

13900 _____________ × 100 250000

=

5.56 %

3.Operating Expenses Ratio Operating Exp. Ratio

=

Operating Expenses ____________________ Sales

=

33100 _____________ × 100 250000

=

13.24 %

× 100

4.Selling Expenses Ratio Selling Expenses Ratio


=

Selling / Distribution Exp. _______________________ Sales

=

3000 _____________ × 100 250000

=

1.2 %

× 100

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5.Stock Turnover Ratio Stock Turnover Ratio

Average Stock =

=

=

200000 _____________ × Times 55000

=

3.64 Times

× Times

Opening Stock +Closing Stock ___________________________ 2 =

6.Operating Ratio

Cost of Good Sold. ____________________ Average Stock

110000 _____________ 2

=

55000

=

Cost Of Good Sold + Operating Exp. _______________________________ Sale

=

=

200000 + 33100 ______________ 250000

× 100

× 100

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 ing period as result of its use is known depreciation.


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Definition: “Depreciation ing is a system of ing 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 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

1st Year

2nd Year

3rd Year

4th Year

Particular Actual Cost - Less : Depreciation

- Less : Depreciation



5th Year

- Less : Depreciation Total

Building

Furniture

(10%)

(15%)

520000

200000

52000

30000

468000

170000

46800

25500

421200

144500

42120

21675

379080

122825

37908

18424

341172

104401

34112

15660

307060

88741

Total

82000

72500

63795

56332

18452

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


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4. Delhi

:

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

5. Chennai

:

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

*****


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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.


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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.


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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 ister 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 16. If There Is Partner in Shop

Directly / Indirectly Yes / No

17. If Yes Then How Many Partners Are There? 18. If You Supply Good To the Customer on Order


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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.


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Appendix 2 BIBLIOGRAPHY Sr. No

A. 1.

Author Name

Book Name

Year of Publication

Books Organization of Commerce

Bhosle R. M.

Organization of Commerce And Management Research Methodology And Project Work

2.

Franandes S.

3.

Herekar Dr.P.M.

4.

Nakkiram Dr S.

Research Methods In Social Sciences

5.

Shivkumar M. Prakash M.

Guideline of Project Report

B.

Publishing House

Nilkanth Publishing House Mumbai Himalaya Publishing House Nagpur Phadke Prakashan Pune Himalaya Publishing House Nagpur Himalaya Publishing House Nagpur

June 1996

2006-2007 September 2004 2001-2002

2001-2002

Magazines Gruhshobha

Delhi Press Bhavan,Rani Zansi Marg New Delhi

Oct.2008

6.

Nath Paresh

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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