Project report for Ladies botique

Introduction

 Indian Garment Industry has been rapidly growing for last few years. Exports have been rising as there is an increase in the orders from global buyers. The overall demand of the readymade garments is going up due to the increase in number of the middle class people, who are very keen in their dressing habits. Youngsters are very much eager to follow the trends and fashions. With the change of trends, dress also has to change. Most of the people don’t prefer to wear a dress more than two years even if it is in good condition. It’s our habit to purchase new dress in special occasions such as birthday, wedding anniversary, marriages of relatives and during festivals like Onam, X’mas, Ramsan etc. This project is on production of readymade garments especially churidar of latest fashion which are having great demand in the market. After food and shelter, clothing is the most essential human need. Few years back, we had to depend on tailors to get our dress stitched, but now most of us depend on readymade garments. If we had to wait for the mercy of tailor for days or even weeks, that time, to get the dress stitched, now most of us choose the readymade cloths of any type/size/style/price, which we like and wear it right away. With the advent of online shops, there is no need to go to textile shops either. One can select his/her dress through computer and purchase it online by sitting at home itself. Readymade garments are usually cheaper than tailor made one as material is purchased in bulk quantity.

Product / Services & process

The proposed products of the unit are Readymade Garments. Major products are.

1.Readymade Churidars,Pardha,Abhaya.

Nowadays Churidars are the most common dress of girls and women. Various types of latest materials are available. It ranges from cotton to artificial fabrics. Materials are collected from Bangalore , Mumbai & Gujarat from where latest fashion materials with cheap rate are available.

PROCESS

The raw material is procured from wholesale markets of Karnataka, Tamil Nadu, Maharashra and Gujarath. After quality checking, with the help of designers, the cloth is cut and then move for stitching. Parts are stitched and finally stitch together to make the finished goods. After the final quality verification, move for packing.

Market potential & Strategy

High economic growth has resulted in higher disposable income in India. This has led to rise in demand for products creating a huge domestic market. The domestic market for apparel and lifestyle products, currently estimated at US$ 85 billion, is expected to grow at a Compound Annual Growth Rate (CAGR) of 11.8 per cent to reach US$ 160 billion by 2025.

In the locality majority of the folk belongs to the middle-income group and their purchasing power is comparatively better with the gulf remittance. Peoples from all economic strata generally wish to wear attractive, quality dress in every special occasion. This unit also aims at customers of all classes, up to the upper middle class people. Youngsters and students are the major focusing area. When the unit gains grounds with the domestic sales, export is also aimed as a distant target.

Strategy

The promoter has personal contacts with many retail shops, where the products can be displayed and sold. Being an experienced person, the products can be directly sold to the customers who are known to her. Beauty parlors can also be targeted for designer dress of ladies. Bigger shops are also targeted with products of latest designs. No distributors are opted for the initial phase. Direct supply is preferred during this phase.

Name & Address of Unit

Ladies botique

Address

Details of unit
Email : [email protected]
Phone : 000
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Working capital loan : *******
Name & address of promoter(s)
Name : Your name
Address : Address
Phone : 00000
Designation : Proprietor
E-mail : [email protected]
Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33
Net profit Sales %
Quick ratio
Revenue v/s Expense
Expense Splitup
Sl. no Item Amount Rs
1 Interior design for existing building *******
2 Inverter *******
3 Iron Box *******
4 Aircondition *******
5 F4 Tailoring machine *******
6 Tailoring machine *******
7 Fashion Mate *******
8 Embroidery Machine *******
9 Thread lock *******
10 Desk and chairs *******
11 Counter table and chairs *******
12 Electrification *******
13 Preliminary expenses *******
14 Illuminating name board *******
15 Aluminium fabrication charges *******
16 Working Capital *******
Total *******

 

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******
9 Working capital loan *******

Sl. no Item Rate Quantity Unit Total Rs
1 Sales ******* X 300 Day *******
Total *******

Sl. no Item Amount Rs
1 Shop Rent *******
2 Salary for cutting staff *******
3 Salary for Stiching staff *******
4 Salary for office assistant *******
5 Maintenance charges *******
6 Electricity charges *******
7 Transportation *******
8 Packing materials *******
9 Office Stationary *******
10 Rawmaterials *******
11 Advertisement *******
Total *******
Sl. no Item Subsidy % No. Rate Amount Rs
1 Interior design for existing building ******* 1 ******* *******
2 Inverter ******* 1 ******* *******
3 Iron Box ******* 1 ******* *******
4 Aircondition ******* 1 ******* *******
5 F4 Tailoring machine ******* 1 ******* *******
6 Tailoring machine ******* 1 ******* *******
7 Fashion Mate ******* 1 ******* *******
8 Embroidery Machine ******* 1 ******* *******
9 Thread lock ******* 1 ******* *******
10 Desk and chairs ******* 1 ******* *******
11 Counter table and chairs ******* 1 ******* *******
12 Electrification ******* 1 ******* *******
13 Preliminary expenses ******* 1 ******* *******
14 Illuminating name board ******* 1 ******* *******
15 Aluminium fabrication charges ******* 1 ******* *******
Total Investment *******
Total Subsidy *******
Net Investment *******
Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Less :
Opening stock ***** ***** ***** ***** *****
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****
Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 ***** ***** ***** ***** *****
Subsidy ***** ***** ***** ***** ***** *****
Termloan ***** ***** ***** ***** ***** *****
Profit before tax with interest ***** ***** ***** ***** ***** *****
Increase in WC loan ***** ***** ***** ***** ***** *****
Depreciation ***** ***** ***** ***** ***** *****
Increase in Current liability ***** ***** ***** ***** ***** *****
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing ***** ***** ***** ***** ***** *****
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow ***** ***** ***** ***** ***** *****
Closing balance ***** ***** ***** ***** ***** *****
Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus ***** ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan ***** ***** ***** ***** ***** *****
Account payable ***** ***** ***** ***** *****
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory ***** ***** ***** ***** ***** *****
Trade receivables ***** ***** ***** ***** ***** *****
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****
Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit ***** ***** ***** ***** *****
b).Depreciation ***** ***** ***** ***** 0.30
c).Interest on termloan ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Repayments
a).Loan Principal ***** ***** ***** ***** *****
b).Interest on termloan ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
DSCR ***** ***** ***** ***** *****
Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building ***** ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Computers/ Printers /Photocopier/Electronic gadget 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Furniture & fixtures 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Racks & storage/Interior works 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
new item 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
new 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Air-conditioning 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Other investments 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Total less depreciation ***** ***** ***** ***** *****
Total written down value ***** ***** ***** ***** *****

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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