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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]
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 [Special Reference to Ladies Garment Shop]
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
D at e :
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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.
Da t e :
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Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Shop]
INDEX SR.
PARTICULAR PAGE NO. NO.
CHAPTER 1 : INTRODUCTION
1.
2.
3.
4.
5.
1.1 Introduction
1.2 Selection of the Project
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
2.3 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
[Essentials / Estimated]
3.4 Essentials for the Business Establishment
3.5 Capital Structure and Profit
3.6 Ratio Analysis
3.7 List of Suppliers
CONCLUSIONS AND SUGGESTIONS
APPENDIX A. Questionnaire
B. Bibliography
C. Application Forms
07 TO 15
16 TO 19
20 TO 32
33 TO 34
35T O 37
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Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Shop]
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 [Special Reference to Ladies Garment Shop]
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 a bout -
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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
Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Shop]
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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Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Shop]
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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Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Shop]
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 [Special Reference to Ladies Garment Shop]
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 [Special Reference to Ladies Garment Shop]
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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Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Shop]
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 [Special Reference to Ladies Garment Shop]
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 [Special Reference to Ladies Garment Shop]
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 [Special Reference to Ladies Garment Shop]
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 . B ooks f.
Library g.
Internet
2.4 OBJECTIVES OF THE STUDY
Followings are the main objects of the study
Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Shop]
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 [Special Reference to Ladies Garment Shop]
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 . B a nk
B. Government policies
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Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Shop]
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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Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Shop]
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 he l p.
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
.
L
a
n
d
4
0
0
S
q
.
F
e
e
t
@
8
0
0
S
q
.
F
e
e
t
Construction Area 300
Sq. Feet
II. Other Fixed Asset
Furniture and
Fixture
Electri
ficatio
n
L
i
c
e
n
s
e
B] Working capital [per annum] I. Salary and Wages
II. Purchase of Garments
C] Other contingency I. Printed carry bags
II. Telephone III.
Stationary
IV. Carriage
V. Postage
VI. Other Exp.
VII. Advertising Exp.
320000
200000
___ _________
520000
200000
6000
6000
___ _________
732000
62400
200000
___ _________
262400
6000
10800
5000
5500
3000
2000
800
Smt. L.R.T. College of Commerce, Akola. - 22 -
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
A
rea
Plot
Electricity Supply
Water Facility
Labors
Market
Financers
License
In Market Place.
400 Sq. Feet. 220w .
Water Purifier (Drinking Water)
Total 04 People
Skilled Worker 02
Labor / Helper 02
Urban / Ruler
Government
Private Financer
Shop Act License
N.O.C.
M.S.E.B.
Shop Act License
No Objection Certificate
Electricity Supply
Rural Area
Name and Address of Offices Under Maharashtra Shop Act 1948. Near Greenland
Cottage Hotel, Vidya Nagar, Murtizapur Road, Akola
Municipal Corporation, Gandhi Road, Akola
Concern Engineer, Sub Divisional Office, Electricity
Board.
Smt. L.R.T. College of Commerce, Akola. - 23 -
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 A m ount
Land
1
.
2.
3.
Sr. No
1.
2.
3.
Sr. No
1.
2.
3.
4.
400 sq. feet @ 800 sq. feet
Building
Construction area 300 sq. feet
Other Fixed Asset
Furniture and Fixture
Electrification
License
Total
TABLE 3.4 Working Capital (Variable Expenses)
Particular
Salary and Wages to Worker
Purchase of Garment for Sale
Other Contingency
Total
TABLE 3.5 Other Expenses
Particular
Printed carry bags
Telephone
Stationary
Carriage
32000 0
20000 0
20000 0
600 0
600 0
73200 0
Amount
62400
200000
32000
294400
A m ount
60 00
108 00
50 00
55 00
Smt. L.R.T. College of Commerce, Akola. - 24 -
5.
6.
7.
Postage
Other Exp.
Advertising Exp.
Total
Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Shop]
30 00
20 00
80 0
331 00
Sr. No
1.
2.
Sr. No
1.
2.
3.
4.
Sr. No
1.
2.
3.
TABLE 3.6 Total Sale
Particular
Sale of Garments
Selling Expenses
Total
TABLE 3.7 Total Capital Invested
Particular
Fixed Asset
Land and Building
Other Fixed Asset
Furniture, Fixture, Electricity, license, etc.
Variable Expenses
Salary, Stock, etc.
Other Expenses
Total
TABLE 3.8 Means of Finance
Particular
Loan form Bank
Loan form Relative
Self Contribution
Total
A m ount
250000
3000
253000
Amount
520000
212000
262400
33100
1027500
Amount
750000
200000 7
7500
10 27500
Smt. L.R.T. College of Commerce, Akola. - 25 -
Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Shop]
TABLE 3.9
Sr.
No
1.
Man Power Requirement
Salary Particular
Per Month
2 Skilled Worker
Salary
Per Year
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
2.
3.
- Cost of Goods Sold
Gross Profit
- Selling Expenses
- Other Expenses / Operating Expenses
Net Profit
200000
50000
3000
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_
Smt. L.R.T. College of Commerce, Akola. - 26 -
Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Shop]
1.Gross Profit Ratio Gross Profit Ratio = Gross Profit
____________ _ × 1 00 Sales
50000 = ____________ _ × 1 00
250000
= 20 %
2.Net Profit Ratio
Net Profit Ratio = Net Profit ____________ _ × 1 00
Sales
13900 = ____________ _ × 1 00
250000
= 5.56 %
3.Operating Expenses Ratio
Operating Exp. = Operating Expenses Ratio ____________ ________ × 100
Sales
33100 = ____________ _ × 1 00
250000
= 13.24 %
4.Selling Expenses Ratio
Selling Expenses = Selling / Distribution Exp. Ratio ____________ ___________ × 100
Sales
3000 = ____________ _ × 1 00
250000
= 1.2 %
Smt. L.R.T. College of Commerce, Akola. - 27 -
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
550 00
= 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 + 33 100 ______ ________ × 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.
Smt. L.R.T. College of Commerce, Akola. - 28 -
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 Ye a r Particular Total
(10%) (15%)
Actual Cost 52 0000 20 0000 1s t Y e a r
- Less : Depreciation 5 2000 3 0000 82000
46 8000 17 0000 2nd Y e a r
- Less : Depreciation 4 6800 2 5500 72500
42 1200 14 4500 3rd Year
- Less : Depreciation 4 2120 2 1675 63795
37 9080 12 2825 4th Year
- Less : Depreciation 3 7908 1 8424 56332
5t h 34 1172 10 4401
Ye a r - Less : Depreciation 3 4112 1 5660 18452
Total 30 7060 8 8741
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
Smt. L.R.T. College of Commerce, Akola. - 29 -
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.
*****
Smt. L.R.T. College of Commerce, Akola. - 30 -
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.
Smt. L.R.T. College of Commerce, Akola. - 31 -
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.
Smt. L.R.T. College of Commerce, Akola. - 32 -
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
6. If Rental, Amount of Rent
7. Area of Shop
8. How much space require for opening a cloth shop
9. Reason for Accepting Business 10.
Any Other Additional Business
11. Which of One
Wholesale / Retailer
Monthly / Yearly
Yes/No
12. What are the legal formalities to be fulfilled for starting a new business?
13. Total Capital of Business
14. How You Established This?
15. How Your Family Member Help You in
This Business
16. If There Is Partner in Shop
17. If Yes Then How Many Partners Are There?
18. If You Supply Good To the Customer on Order
Smt. L.R.T. College of Commerce, Akola.
Self / Relative / Friend
Circle/Loan from Bank
Directly / Indirectly
Ye s / No
- 33 -
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? Ye s / 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.
Smt. L.R.T. College of Commerce, Akola. - 34 -
Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Shop]
Appendix 2
BIBLIOGRAPHY
Year of Sr. No
A.
1.
2.
Author Name
B ooks
Bhosle R. M.
Franandes S.
Book Name
Organization of Commerce
Organization of Commerce And
Publishing House
Nilkanth Publishing House
Mumbai Himalaya
Publishing House
Publication
J une 1996
2006-2007
3.
4.
5.
Herekar Dr.P.M.
Nakkiram Dr S.
Shivkumar M. Prakash M.
Management Research
Methodology And Project Work
Research Methods In Social Sciences
Guideline of Project Report
Nagpur
Phadke Prakashan Pune
Himalaya Publishing House
Nagpur Himalaya
Publishing House Nagpur
September 2004
2001-2002
2001-2002
B.
6.
7.
8.
Magazines
Nath Paresh
Tiwari jitendra
Varma Pradip
Gruhshobha
Udyamita
Lokprabha
Delhi Press Bhavan,Rani
Zansi Marg New D e l hi
Vishwapti Laghu Udyog
At Indian Express Newspapers
Oct.2008
Oct.2008.
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
Smt. L.R.T. College of Commerce, Akola. - 35 -