PROJECT PROFILE ON READY-MADE GARMENTS

Introduction

Garment is basic need for every human being. The Garments are necessary items and people looks very
beautiful in colourful garments. The trend for using garments is increasing day by day due to new fashion
trends. TRADING OF GARMENT ITEMS: Items are bought from many Suppliers / Manufacturers at the possible
reasonable rates and then Garment items are traded to Retailers / Consumers.

1 Name of the Product: Ready-Made Garments

*(Amounts are in Indian Rupees)
2 Investment in Assets:
a. Capital Expenditure -
Land
Plant & Machinery
Furnitures & Equipments 550,000.00 (Own)

b. Working Capital - 210,000.00

Total 760,000.00

3 Estimated Annual Purchase Expense:

# Particulars Supplies in No's Avg. Rate Total Value
a. Ready-Made Garments 22,000.00 86.36 1,900,000.00

Total 22,000.00 86.36 1,900,000.00

4 Inward Supplies/Purchases: 1,870,000.00 (V)

5 Packing Materials: 30,000.00 (V)

6 Wages- (2 Labours): 144,000.00 (V)

7 Salaries- (1 Manager): 84,000.00 (F)

8 Rent of Premises: 120,000.00 (F)

9 Administrative Expenses: 70,000.00 (F)

10 Miscellaneous Expenses: 24,000.00 (F)

11 Depreciation: 55,000.00

12 Insurance: 8,000.00 (F)

13 Interest on Loan: (Assumed @ 5% p.a.) 125,000.00 (F)

14 Working Capital Requirement:
Fixed Cost (F) 431,000.00
Variable Cost (V) 2,044,000.00
Total Cost of Project 2,475,000.00

Requirement of Working Capital per Cycle 203,425.00

15 Profit Analysis
# Particulars Capacity of Turnover
100% 60% 70% 80%
1 Fixed Cost 431,000.00 431,000.00 431,000.00 431,000.00
2 Variable Cost 2,044,000.00 1,226,400.00 1,430,800.00 1,635,200.00
3 Cost of Production 2,475,000.00 1,657,400.00 1,861,800.00 2,066,200.00
4 Projected Sales 3,520,000.00 2,112,000.00 2,464,000.00 2,816,000.00
5 Gross Profit 1,045,000.00 454,600.00 602,200.00 749,800.00
6 Expected Net Surplus 990,000.00 399,600.00 547,200.00 694,800.00