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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 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

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

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 Prof. L. R. Sharma


(Project Guide) (Head of the Project Committee)

Dr. S. G. Chapke
(Principal)
Place: Akola.
Date:

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

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

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

Acknowledgement
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
Smt. L. R. T. College of Commerce, Akola.
Place: Akola.
Date:

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Project Report on Readymade Garment Shop
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INDEX
SR.
PARTICULAR PAGE NO.
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 Methodology of the Project
2. 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
A. Questionnaire
5. 35TO 37
B. Bibliography
C. Application Forms

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Project Report on Readymade Garment Shop
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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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Project Report on Readymade Garment Shop
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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 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

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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. 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

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Project Report on Readymade Garment Shop
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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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Project Report on Readymade Garment Shop
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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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Project Report on Readymade Garment Shop
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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 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

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Project Report on Readymade Garment Shop
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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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Project Report on Readymade Garment Shop
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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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Project Report on Readymade Garment Shop
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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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Project Report on Readymade Garment Shop
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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 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

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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 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.

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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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Project Report on Readymade Garment Shop
[Special Reference to Ladies 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

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

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

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 6000
2. Telephone 10800
3. Stationary 5000
4. Carriage 5500

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

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. 262400
4. Other Expenses 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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Project Report on Readymade Garment Shop
[Special Reference to Ladies Garment Shop]

TABLE 3.9
Man Power Requirement

Sr. Salary Salary


Particular
No 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

Sr. No Particular Amount


1. Total Sales 250000
- Cost of Goods Sold 200000
2. Gross Profit 50000
3. - Selling Expenses 3000
- Other Expenses / Operating Expenses 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_

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

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 %

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

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.

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

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

Building Furniture
Year Particular Total
(10%) (15%)

Actual Cost 520000 200000


1st Year
- Less : Depreciation 52000 30000 82000
468000 170000
2nd Year
- Less : Depreciation 46800 25500 72500
421200 144500
3rd Year
- Less : Depreciation 42120 21675 63795
379080 122825
4th Year
- Less : Depreciation 37908 18424 56332
5th 341172 104401
Year - Less : Depreciation 34112 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

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

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

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

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

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

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

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

Appendix 2
BIBLIOGRAPHY
Year of
Sr. No Author Name Book Name Publishing House
Publication
A. Books
Nilkanth
Organization of
1. Bhosle R. M. Publishing House June 1996
Commerce
Mumbai
Organization of Himalaya
2. Franandes S. Commerce And Publishing House 2006-2007
Management Nagpur
Research
Phadke Prakashan September
3. Herekar Dr.P.M. Methodology And
Pune 2004
Project Work
Himalaya
Research Methods
4. Nakkiram Dr S. Publishing House 2001-2002
In Social Sciences
Nagpur
Himalaya
Shivkumar M. Guideline of
5. Publishing House 2001-2002
Prakash M. Project Report
Nagpur
B. Magazines
Delhi Press
Bhavan,Rani
6. Nath Paresh Gruhshobha Oct.2008
Zansi Marg New
Delhi
Vishwapti Laghu
7. Tiwari jitendra Udyamita Oct.2008.
Udyog

At Indian Express
8. Varma Pradip Lokprabha Newspapers Oct.2008.
(Bombay)
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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