PROJET

REPORT
PROJECT AT A GLANCE

1. Name of the Unit : Abhinav fashions

2. Location : Delhi Gate, Main Market, Najafgarh 110043
3. Project : Readymade and Designer Garments Reselling
4. Type : Retail Business
5. Management : Proprietary
6. Category : All Clothing (Men,Women & Children)
7. Promoter : Abhinav
8. Total Project Cost : 12 Lakh
9. Fixed Capital : 4 Lakh
10. Working Capital : 8 Lakh
11. Equity(16 %) : 2 Lakh
12. Loan Requirement(84%) : 10 Lakh
13. Family Income : 50,000 p.m.
14. Employment : 3 Nos

Promoter BIO – DATA

1. Full name and address : Abhinav

2. Address : Netaji Lane,Najafgarh,Delhi 110043
3. Experience : 2 year in Sales & Marketing
4. Name of Father/Husband : Jogender Kumar
5. Age : 22 year
6. Sex : Male
7. Nationality : Indian
8. Category : General
9. Academic Qualification : Senior Secondary School
10. Functional Responsibilities in the unit : Proprietor

Signature
1. Introduction

After food and shelter, clothing is the most essential human need. It
was earlier to wear individually tailored dresses, then it became fashion to wear
readymade garments. It is easier to go to a shop and select what she/he likes and
wear it right away. During readymade era, there is no need to go to a shop to
select a shirt piece and go to another shop to get it tailored and wait for the
clothing. Readymade garments are bulk manufactured and hence it is cheaper
than individually tailored ones. But now people find that, many people wear the
same clothing, since readymade dresses are made alike. Now fashion conscious
people started turned to designer garments. By realising the potential of both
areas, this project aims to establish a readymade garments as well as an designer
garments unit for the fashion sensitive people.

The readymade garment industry is on of the channel of India’s textile

industry which dates back to the middle of 19 th century. The textile industry is a
leading industry in the country. There are mainly two types of clothing, one is
natural and the other is synthetic. Cotton, Silk, Wool etc. comes under natural
clothing and Polyester, Nylon etc. comes under synthetic clothing.

The overall demand of clothing is gone up since the increase in number

of middle and upper middle class people who are very keen in their dressing
habits. Compared to any other state in the country, Delhite purchases more
clothing for their personal needs. The increasing level of travel habits of the
people has in turn created demand for occasional and seasonal clothing. The
development in all spheres of life in general especially in educational, industrial
and commercial sectors made the demand for garments manifold which can be
evident from the fact that there are a lot of garment shops in every nuke and
corner of even remote places. Very big players are setting up garment shops in
almost every town. Being understanding the field for a long time, the promoter
studied various aspects of the industry and now confidently came forward to
establish a readymate garments shop. Moreover he is setting up a designer
garment shop, which is a value addition to the readymade industry.
2. LOCATION :
Retail Shop Unit – Delhi Gate, Main Market, Najafgarh 110043
The unit will be set up in a rented building. It is made available on rented basis and
the rent per month is Rs. 20,000. We have already considered the suitability of the
location. The power,Communication facility etc are available. Hence with out
doubt one can say that the site selected is very suitable for these types of units.

3. MANPOWER REQUIREMENT :

The enterprise needs 3 employees to start with, as detailed below:

Sr.No. Designation of Employees Monthly Number of Annual cost
Salary ₹ employees required ₹.

1 Manager 8,000 1 96,000

2 Sales Executive 6,000 2 1,44,000

Total 3 2,40,000

4. IMPLEMENTATION SCHEDULE :
Reasonable planning can help complete the project in about 4 months.
Sr. No. Activity Time Required (in months)

1 Acquisition of premises 1

2 Furniture & Interior Decoration 1

3 Procurement of Finished Clothing 1

4 Recruitment of required manpower 1

Total time required (some activities shall run

4
concurrently)
5. FINANCIAL ASPECTS :

Sr. No. Particulars ₹

A. Fixed Capital

1. Rent Deposits @20,000 p.m for 12 month 2,40,000

2. Storage Racks, Furniture (Table,Chair), Lighting, Fittings, Fans etc 1,00,000

3. Computer & Printer 60,000

Total 4,00,000

B. Working Capital

1. Salary (1 Manager-8,000p.m. , 2 Sales Executive-6,000 p.m.) 2,40,000

2. Water, Repair, Telephone, Stationary,Miscellaneous Expenses etc (3,000 p.m. approx.) 36,000

3. Electricity (6,000 p.m. approx.) 72,000

4. Readymade Garments/Clothing Stock (Men, Women & Children) 4,52,000

Total 8,00,000

C. Total Capital Requirement (A+B) 12,00,000

6. MEANS OF FINANCE :

Sr. No. Particulars ₹ in Lacs

1 Promoter's contribution (16%) 2

2 Bank Finance (84%) 10

Total 12
7. REPAYMENT CHART OF TERM LOAN @13%

Particular (₹) Year-1 (₹) Year-2 (₹) Year-3 (₹) Year-4 (₹) Year-5 (₹)

Opening Balance 10,00,000 8,00,000 6,00,000 4,00,000 2,00,000

Principal Repayment
2,00,000 2,00,000 2,00,000 2,00,000 2,00,000
Per Year

Closing Balance 8,00,000 6,00,000 4,00,000 2,00,000 0

Interest @13% 1,30,000 1,04,000 78,000 52,000 26,000

Total Repayment Per

3,30,000 3,04,000 2,78,000 2,52,000 2,26,000
Year

8. PROJECTED PROFITABILITY STATEMENT

Sr. No. Particulars ₹

A. Pocurement of Garments

1. Women (Qty 2000 * ₹300) 6,00,000

2. Children (Qty 3000 * ₹80) 2,40,000

3. Men (Qty 2000 * ₹250) 5,00,000

Total * (It includes both 50%Cash & 50%Credit Purchases) 13,40,000*

B. Sale of Garments

1. Women (Qty 2000 * ₹600) 12,00,000

2. Children (Qty 3000 * ₹160) 4,80,000

3. Men (Qty 2000 * ₹500) 10,00,000

Total 26,80,000

C. Net Profit From Sale Proceeds (B-A) 13,40,000

*QTY and PRICE taken above is average from a variety of Products

(Year-to-Year Increase in sale is assume to be @10%)
Sr.
Particulrs Year-1 (₹) Year-2 (₹) Year-3 (₹) Year-4 (₹) Year-5 (₹)
No.

A. Sale Profit from Sale Proceeds 13,40,000 14,74,000 16,21,400 17,83,540 19,61,894

B. Expenses

Rent 2,40,000 2,40,000 2,40,000 2,40,000 2,40,000

Salary 2,40,000 2,40,000 2,40,000 2,40,000 2,40,000

Bank Loan Repayment with

3,30,000 3,04,000 2,78,000 2,52,000 2,26,000
Interest

Miscellaneous Expenses 36,000 36,000 36,000 36,000 36,000

Electricity Expenses 72,000 72,000 72,000 72,000 72,000

Depriciation on Computer @25%

15,000 15,000 15,000 15,000 0
by SLM method

Depriciation on Furniture @10%

10,000 10,000 10,000 10,000 10,000
by SLM method

C. Net Profit (A-B) 3,97,000 5,57,000 7,30,400 9,18,540 11,37,894

9. BREAK-EVEN ANALYSIS (Based on 1st year)

Particulars ₹

Sale 26,80,000

Less - Variable Cost 19,28,000

= Contribution 7,52,000

Fixed cost 3,55,000

100
Break-Even Point 𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡 × 47.20%
𝑐𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛

The Project is Economically viable and Technically feasible. The project is

submitted for approval.

Signature of Promoter