Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] A Project Report on READYMADE GARMENT SHOP

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 (Project Guide) Prof. L. R. Sharma (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 Smt. L.R.T. College of Commerce, Akola. -1-

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] 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 candida te 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 i s of sufficiently high standard to warrant its presentation for examination. Prof. Dr. M. C. Dabre (Project Guide) Prof. L. R. Sharma (Head of the Project Committee) Dr. S. G. Chapke (Principal) Place: Akola. Date: Smt. L. R. T. College of Commerce, Akola. Smt. L.R.T. College of Commerce, Akola. -2-

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] 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 Smt. L.R.T. College of Commerce, Akola. -3-

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] 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: Smt. L.R.T. College of Commerce, Akola. -4-

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] 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 expres sing 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-o peration I could not have even taken a single step towards completion of this pr oject. I would like to express my deepest sense of gratitude toward Principal, D r. S. G. Chapke and Prof. L. R. Sharma for their sincere help and constant encou ragement. And I am also thankful to Dr. S R. Baheti sir to provide me for librar y books and magazines information. I shall be failing in my duty if I don't acknow ledge enormous support and assistance received from my family members throughout this endeavors. Their kind blessings lead me to see these days of achievement a nd satisfaction. I am also thankful to all my dear friends who motivated me in a ccomplishing 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: Smt. L.R.T. College of Commerce, Akola. -5-

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] INDEX SR. NO. PARTICULAR PAGE NO. CHAPTER 1 : INTRODUCTION 1.1 Introduction 1. 1.2 Selection of the Project 1.3 Profile of the Subject 1.4 Importance of the Subject 07 TO 15 CHAPTER 2 : PROJECT METHODOLOGY 2.1 Meaning of the Project 2. 2.2 Methodology of the Project 2.3 Data Collection 2.4 Objectives of the Study 2.5 Limitations of the Study 16 TO 19 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] 3.4 Essentials for the Business Establi shment 3.5 Capital Structure and Profit 3.6 Ratio Analysis 3.7 List of Suppliers 4. 20 TO 32 CONCLUSIONS AND SUGGESTIONS APPENDIX 33 TO 34 5. A. Questionnaire B. Bibliography C. Application Forms 35TO 37 Smt. L.R.T. College of Commerce, Akola. -6-

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] CHAPTER NO 1 INTRODUCTION 1.1 INTRODUCTION As the technology advances each and e very sector has been rapidly developed like a Government Sector, Engineering Sec tor, 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 w ant to wear more fashionable cloths. In movies actor and actresses are wearing d ifferent types of dresses and sarries. Every person wants to look like them. Wit h the increase in fashion every person want to wear that type of cloths. Some pe ople purchase cloth material and visit at the tailor shop for stitching the dres ses they like. But it takes too much time. Fashion is growing up day to day. Rea dymade Garment Shops are opened. People are satisfied from Readymade Garment Sho p and people also save their valuable time. Readymade Garment Shop provides bett er design dresses to customers. With the change in the trend in fashion market R eadymade Garment have become very popular. Most of the people used to wear Ready made Garment Shop have become very popular. Most of the people used to wear Read ymade Garment in case of time saving activity. Especially ladies have taken very much interest in new designs and fashionable garments. New fashion designers ma de new trend designs to attract customers and mostly to female customers. They l ike to wear new fashion cloths or new look of garment. There are various types o f dresses which are very reasonable to general or ordinary people. Readymade Gar ment 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 pe ople are interested in wearing Readymade cloths and specially ladies have most i nterest in that type of cloths so when the researcher is a lady it takes too Smt. L.R.T. College of Commerce, Akola. -7-

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] much interest for the topic. So that researcher selected the subject Readymade G arment 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 researc hers 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 scient ific curiosity may be interested in some general subject matter about which litt le is known. And when there is a lady researcher for the topic like ladies cloth s, the topic becomes very interesting and gives best results. It is said that `sel ect a project which will bring out improvement in the present status of an activ ity'. 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 achiev ed through the implementation and suggestions and solutions. The subject matter of the project should be such that it has underlying management principles and t heoretical framework on the basis of what data can be collected, analyzed and ar guments can be developed. The project idea should be such that it should be appl icable in other similar situations like the development of the idea, proving or disapproving of hypothesis and methodology. The project should not be so exclusi ve that its principals have no other application. The project work should be bas ed 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. The re are various causes responsible for increasing unemployment. Some of them are even increasing population computerization and automation. Thus in today's world s elf employment is one of the best opportunity. Readymade Garment Shop offers you this great opportunity of self employment. From the researchers point of view i t is very important that he will study all points related to his topic. So his r eason 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 d elivery and other very important reason for selection of the particular topic is to know about Smt. L.R.T. College of Commerce, Akola. -8-

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] 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 SUBJ ECT There are various factors which plays very important part of any Readymade G arment Shop. Followings are some of themA. Fashion:For some women, fashion is a way of life. It reflects their personality, their attitude, their approach towar ds life, and their lifestyle. A closer look tells us that it refers to a particu lar 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, a nd a hint of the extraordinary, something that catches the eye instantly, and is visually appealing, is fashionable. Thus, fashion is a phenomenon that continue s to change womens lives all over the world. Today women have access to a wider range of fashionable clothes. Over the years, women have embraced fashion to pr oject themselves the way they want to. Whatever women wear or use today, is a ma tter of great speculation and scrutiny. Fashion has entered all arenas of women s lives, right from veiled hats to high-heeled shoes. Their fashion consciousnes s and the need for fresh, new concepts and ideas from time to time have given th e 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 i ndustry is a creative industry which involves continuous change, innovativeness, and state-of-the-art technology. Womens fashion industry comprises: a. Designe rs b. Manufacturers Smt. L.R.T. College of Commerce, Akola. -9-

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] c. Sellers/Marketers d. Buyers e. Others (Colorist, Forecaster, Illustrator, Mod els Etc.) C. Market:The word market is derived from the Latin word Mercantile whic h means a place where a business is conducted. In common parlance a market refer s 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 sol d. In a broader sense, a market does not necessarily mean a place. The term `market' an d `sellers' in person, by mail, telephone, telegraph, cable fax as any other means o f communication so that their mind may meet of effect purchases and sales. Phili p 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 findi ng 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 sli ght time at the right places, in the required quantities, at the right prices. M arketing consist of all those activities which are included in the process of fl ow of goods from the production centers to the consumers. The whole process invo lves the creation as time, place and possession utility. Druker defines that Mark eting is a process which converts resources, distinct knowledge into a contribut ion of economic value in the market. E. Business Smt. L.R.T. College of Commerce, Akola. - 10 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] Business in an economic activity which is conducted with the aim as motive of ea rning profits, business refers to all those activities which are concerned with production and distribution of goods and services. The term business has two win gs or two aspects or two branches. One aspect of business is commerce. Keith Dev is 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 an d to reap some rewards for this effort. F. Advertising The word advertising has b een derived from the Latin word Adverter which means `turn to' as turning the attentio n 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 f or those particular products but the main function or work of advertising is cre ate a place in minds of people to purchase the product because the main objectiv e of advertising is to increase the sale. Definition given by Prof. Albert Fray A dvertising as the preparation or visual or oral messages and their dissemination through paid media for the purpose of making people aware of and favorably incl ined towards a product, brand, service, institution, idea or point of view. G. Se rvices In modern time services are extend become a valuable things for all the b usiness in situations services which are closely relating with the customer or u ser is the necessity of every business with the help of services the seller prov ides number of services to the customer or earning a profit or the other side co nsumer get satisfaction of their need by paying same amount for the services. An other important thing is that the people who want to share a thought, pleasure o r pains which are closely related with services. H. Discount Smt. L.R.T. College of Commerce, Akola. - 11 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] Discount is a deduction given by seller to buyer on sale price of the goods so a s 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 custome r or buyer will be ready to purchase bulk quantities of goods. Discount is percen tage reduction on sale price i.e. each cash discount which reduces the invoice v alue of goods which reduces the invoice value of goods e.g. 25% discount on clot hs. I. Replacement guarantee Replacement guarantee means the security to the cust omer about whole product. It is the whole product may be change or replaced by a nother one. The customers have to fallow the guarantee period for claim. J. Gift s Customers are very much attracted toward the gifts specially while giving one dress free for purchasing two dresses. For that shopkeeper prepares big banner w ith wording as_ BUY TWO GET ONE FREE K. Window display In this method actual good are displayed in showcases to attra ct the attention of the prospective buyers. As the goods are displayed in showca ses outside the shop, people are allowed to watch and inspect the goods. This pr ovokes the prospective buyers to buy the goods. L. Showroom In this method of ad vertising spacious area is provided for display of goods hence they are arranged very systematically in an attractive way. The visitors to such showroom, Smt. L.R.T. College of Commerce, Akola. - 12 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] who are prospective buyers, are allowed to handle and inspect the goods presente d in showroom. M. Customer service Customer service is the overall activity of i dentifying and satisfying customer needs. . As an overall description of the des ired relationship between a supplier and a customer. Service in this sense is based on the premise that every commercial transaction is a service. Customer se rvice is one of the most important ingredients of the marketing mix for products and services. High quality customer service helps to create customer loyalty. C ustomers 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 recei ve 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 ot her people. What customers thin it is the job of marketers to understand the nee ds 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 proc ess of buying a product is more complex than it might at first appear. Customers do not usually make purchases without thinking carefully about their requiremen ts. Wherever there is choice, decisions are involved, and these may be influence d 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 indu stry provides a good example of the way in which different groups of customers w ill have different expectations. Some customers just want to buy standard produc ts at the lowest possible prices. They will therefore shop from supermarkets tha t 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 cu stomers will have special tastes such as wanting to buy FAIRTRADE products or or ganic fruit and vegetables. It Smt. L.R.T. College of Commerce, Akola. - 13 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] is clear therefore that to be successful a business has to have a clear understa nding of their target customers and the expectations of this group. 1.4 IMPORTAN CE OF THE SUBJECT In modern business every business should be given greater impo rtance whether it has be in the nature of large, middle, small scale industry. T he various important things are in Readymade Garment Shop. In today's large compet ition it is essential to know ones market position. A successful organization ha s to know its strength and weakness and in the market along with Readymade Garme nt. Market study stimulates need by taking appropriate steps for remaining defec ts in its marketing effect. Project of Readymade Garment serves as instrument fo r 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 t hat kind of business we can provides various job opportunities to all kinds of p eople like men and women. V. This project provides us information about various Government policies, production policies, sale and profits, etc. VI. Readymade G arment Shop provides all types of knowledge for business, market as well as empl oyment. ***** Smt. L.R.T. College of Commerce, Akola. - 14 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] CHAPTER NO 2 PROJECT METHODOLOGY 2.1 MEANING OF THE PROJECT: A project is a scie ntific 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 disci pline of management like finance, marketing, production, personnel. The essentia l requirement of a project is that it should entail scientific collection, analy sis and interpretation of data leading to valid conclusion. Form the study attem pting to diagnose and identify managerial problems and at the same time providin g him an exposure to the real business world. Form the organization point of vie w it is a sort of feedback of its policies and plans which may facilitate the de cision making. A project is a kind of action oriented research aiming at the det ection 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 probl em with the intention of resolving the problem by application of management conc ept and skill. A project work is a scientifically evolved work plan devised to ach ieve a specific objective within a specified period of time. 2.2 METHODOLOGY OF THE PROJECT A. Project methodology A project methodology tell s you what you have to do, to manage your projects from start to finish. It desc ribes every step in the project life cycle in depth, so you know exactly Smt. L.R.T. College of Commerce, Akola. - 15 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] which tasks to complete, when and how. Whether youre 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. Metho dology refers to the logic of scientific investigation. It is a procedure of emp irical investigation. It is not concerned with build of knowledge but how knowle dge is built, i.e. how facts are collected classified and analyzed. B. Methods o f research Following are the main types or method of research which are generall y used by any researcher a) Case study method b) Historical method c) Experiment al method d) Survey method. a) case study method Case study is a recent development in research. Case study is a method of explor ing and analyzing the life of a social unit, a person, a family, institution, cu ltural group or even an entire community. b) Historical method This method investigates the past events and phenomena on the basis of historica l 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 depe ndent variable by artificially controlling the effect of rest of the variables. It is conducted in fundamental sciences like physics, chemistry, biology, nuclea r science, etc. through laboratory experiments. d) Survey method Smt. L.R.T. College of Commerce, Akola. - 16 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] The survey is a method of analysis in scientific and orderly form for defined pu rpose of social situation of problem or population. Above explained are the basi s 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 metho d is a technique of investigation by a direct observation of a phenomena or by s ystematic gathering of data from population. It involves a systematic and compre hensive study of a particular group, community, or organization, etc. with a vie w to analyzed a social problem and presentation of recommendation for its soluti ons. 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 s urvey method for deep study of our subject. In survey method a techniques of inv estigation by direct observation is used. But we can also use various publicatio ns, 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 tot ally depends on collection of data, or collecting all relevant information which are necessary for project work. The collection of data means a purposive gather ing of information relevant to the subject matter of investigation from the unit s of population under investigation. Collection of data makes the most important step of any research enquiry or statistical enquiry. If data collected is not c orrect, 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 colle cting data for any statistical enquiry. In the preparation of this project repor t the data is collected form above sources. A. Primary sources a. Observation b. Interview c. Questionnaire B. Secondary sources Smt. L.R.T. College of Commerce, Akola. - 17 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] d. Magazines e. Books f. Library g. Internet 2.4 OBJECTIVES OF THE STUDY Followi ngs are the main objects of the study I. To study the scope of financial approac h concerning to the cloth business. II. To find out the potential benefits and o pportunities lie in this business. III. To study the information about various s uppliers of the product. IV. To study the management policy or formulation of pr oduction policy, marketing, storing, etc. V. To make the study of marketing skil ls. VI. To evaluate profitability VII. To study the management of capital and ot her 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 o r other cloths trading, which is just a part of cloth trading. Other different k inds 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 giv e them a tough competition. III. The scope of study is limited to marketing prof ile of Readymade Garments. IV. The firm needs to maintain varieties of stock, wh ich ultimately demanded for huge investment. ***** Smt. L.R.T. College of Commerce, Akola. - 18 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] CHAPTER NO 3 PROJECT COST 3.1 MEANING OF PROJECT COST Project cost is a statemen t which presents detailed information relating to the various stages of cost, an d 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-mo nthly, quarterly or yearly, etc. It has already been explained earlier that manu facturing accounts deals with cost relating to cost of goods manufactured i.e. o nly prime cost & factory cost. Its offices and administration expenses are added to the costs, we get the cost of production. Similarly, if selling and distribu tion expenses are added to the cost of production we get cost of goods sold or t otal 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 su itable production policy. IV. It is very helpful to submit the price quotation f or tenders. V. It also helps the management by supplying suitable information fo r management control. 3.2 ANALYSIS OF FINANCE Finance is the life blood of any industrial or commercia l 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 th e shop management fulfillment made by the money. When starts the business, avail able money could a capital. Capital is playing very important role in the busine ss 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 ank B. Government policies Smt. L.R.T. College of Commerce, Akola. - 19 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] 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 fu lly 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 th e industry because the finance is the Readymade product which made the shop to r un 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 f ollowing 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 B ank. The Bank provides the finance in low rate of interest. The comparison betwe en 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 transa ction should be held in accordance to the law. The investment made by self is on ly 20% to 30% of total capital. Balance 70% to 80% amount is provided by the Ban ks. The payment of loan in adjusting premium or installment all are overview of the financial conditions. B. Government policies The business start for that nee ds the finance. The need of finance fulfillment is made by Banks. The project pa ssed by Government which provides the Bank loan and the project allots the subsi dies to the business. The Government provides the infrastructure facility to the business. The Government also provides 20% to 30% subsidies on the business cos t. With adopting the strategy the industrial development increases. The unemploy ment problem solves by Government by providing financial assistance to the busin ess. 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. Smt. L.R.T. College of Commerce, Akola. - 20 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] C. private financial companies The private financial companies provide the finan ce to the business. The need of the business satisfies by money which provides b y the private financial companies. In current times the private companies are ge t part in the finance. So they provide finance to the backward and economic back ward 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 ce rtain 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 differenc e in the rate of interest. The money lender provide loan without security of wea lth. They provide on one sign on paper. The earliest get the finance in simple m anner 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 fina nce is the important thing. Suddenly the emergency finance availability gets onl y the relatives of the businessman. The finance gets without any security. Get m oney without any interest and pay only principal amount. When person needs the f inance firstly goes to the relatives for the help. 3.3 ANALYSIS OF THE PROJECT C OST 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. Smt. L.R.T. College of Commerce, Akola. - 21 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] In the pre-historic Stone Age when man killed an animal with the forces of his h and, without the use of weapon. The cost activity was Labor. When that man convert ed animals hide into his clothes the cost of his activity was material + Labor a nd 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. F eet Construction Area 300 Sq. Feet 320000 200000 ____________ 520000 II. Other F ixed Asset Furniture and Fixture Electrification License 200000 6000 6000 ______ ______ 732000 B] Working capital [per annum] I. Salary and Wages II. Purchase of Garments 62400 200000 ____________ 262400 C] Other contingency I. Printed carry bags II. Telephone III. Stationary IV. Carriage V. Postage VI. Other Exp. VII. Advertising Exp. 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 Sh op] ____________ 33100 D] Total Working Capital E] Total Capital Investment [A + B] F] Man Power Requirement 294400 994400 04 Person. 02 Labor 02 Workers 3.4 ESSENT IALS FOR THE BUSINESS ESTABLISHMENT TABLE 3.2 Area Plot Electricity Supply Water Facility Labors In Market Place. 400 Sq. Feet. 220w. Water Purifier (Drinking W ater) Total 04 People Skilled Worker 02 Labor / Helper 02 Market Financers Urban / Ruler 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. Ne ar Greenland Cottage Hotel, Vidya Nagar, Murtizapur Road, Akola No Objection Cer tificate Electricity Supply Rural Area Concern Engineer, Sub Divisional Office, Electricity Board. Municipal Corporation, Gandhi Road, Akola Smt. L.R.T. College of Commerce, Akola. - 23 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] 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 Priv ate Sector H.D.F.C., I.C.I.C.I., Etc. 3.5 CAPITAL STUCTURE AND PROFIT TABLE 3.3 Fixed Asset Sr. No Land 1. 400 sq. feet @ 800 sq. feet Building 2. Construction area 300 sq. feet Other Fixed Asset 3. Furniture and Fixture Electrification Lic ense Total TABLE 3.4 Particular Amount 320000 200000 200000 6000 6000 732000 Working Capital (Variable Expenses) Sr. No 1. 2. 3. Particular Salary and Wages to Worker Purchase of Garment for Sale Other Contingency Total TABLE 3.5 Amount 62400 200000 32000 294400 Other Expenses Sr. No 1. 2. 3. 4. Particular Printed carry bags Telephone Statio nary Carriage Amount 6000 10800 5000 5500 Smt. L.R.T. College of Commerce, Akola. - 24 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] 5. 6. 7. Postage Other Exp. Advertising Exp. Total 3000 2000 800 33100 TABLE 3.6 Total Sale Sr. No 1. 2. Particular Sale of Garments Selling Expenses Total TABLE 3.7 Amount 250000 3000 253000 Total Capital Invested Sr. No Fixed Asset 1. Land and Building Other Fixed Asset 2. Furniture, Fixture, Electricity, license, etc. Variable Expenses 3. 4. Salar y, Stock, etc. Other Expenses Total 262400 33100 1027500 212000 520000 Particula r Amount TABLE 3.8 Means of Finance Sr. No 1. 2. 3. Particular Loan form Bank Loan form Relative Se lf Contribution Total Amount 750000 200000 77500 1027500 Smt. L.R.T. College of Commerce, Akola. - 25 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] TABLE 3.9 Man Power Requirement Sr. No 1. Particular 2 Skilled Worker 1400 Rs. Per Worker 2. 2 Labor / Helper 1200 Rs. Per Labor Total 2400 5200 28800 62400 2800 33600 Sa lary Per Month Salary Per Year TABLE 3.10 Total Profit Sr. No 1. Total Sales - Cost of Goods Sold 2. 3. - Selling Expenses - Other Expenses / Operating Expenses Net Profit Gross Profit Particular Amount 250000 200000 50000 3000 33100 13900 3.6 RATIO ANALYSIS Ratio analysis is an important technique of financial analysi s which calculated the financial stability and financial soundness of the concer n. The simple ratios that are inherent for assessing a firm position are as unde r_ Smt. L.R.T. College of Commerce, Akola. - 26 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] 1.Gross Profit Ratio Gross Profit Ratio = Gross Profit _____________ 100 Sales 5 0000 _____________ 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. Ratio = Operating Expenses ___________ _________ Sales 33100 _____________ 100 250000 13.24 % 100 = = 4.Selling Expenses Ratio Selling Expenses Ratio = Selling / Distribution Exp. _______________________ Sales 3000 _____________ 100 250000 1.2 % 100 = = Smt. L.R.T. College of Commerce, Akola. - 27 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] 5.Stock Turnover Ratio Stock Turnover Ratio = Cost of Good Sold. _______________ _____ Average Stock 200000 _____________ Times 55000 Times = = Average Stock = 3.64 Times Opening Stock +Closing Stock ___________________________ 2 = 110000 ____________ _ 2 55000 Cost Of Good Sold + Operating Exp. _______________________________ Sal e 200000 + 33100 ______________ 250000 93.24 % = 6.Operating Ratio = 100 = 100 = Depreciation: Generally, `depreciation' means gradual decrease in the value of an as set which arises due to normal wear and tear, obsolescence etc, in short, deprec iation means the gradual diminution, loss or shrinkage in utility value of an as sets due to wear and tear in use, efflux ion of time or obsolescence. It practic ally, the payment which is made against the purchase of fixed asset is an advanc e 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 se rvices over a number of years. Hence, the portion of fixed assets consumed durin g 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 Sh op] Definition: Depreciation accounting is a system of accounting which claims to dis tribute the estimated useful life of the unit in a systematic and national manne r. 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 eff ect of all such occurrences. Depreciation chart TABLE 3.11 Year Actual Cost Particular Building (10%) 520000 52000 468000 Furniture (15%) 200000 30000 170000 25500 144500 21675 122825 18424 104401 15660 88741 Total 1st Year - Less : Depreciation 82000 2nd Year - Less : Depreciation 46800 421200 72500 3rd Year - Less : Depreciation 42120 379080 63795 4th Year 5th Year - Less : Depreciation 37908 341172 56332 - Less : Depreciation Total 34112 307060 18452 3.7 NAME AND ADDRESSES OF STOCK SUPPLIERS

1. Akola 2. Amravati 3. Mumbai : : : Deepak Garment, New Cloth Market, Akola. Shreeram Hogiary, Tahsil Road Amravati. 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 Sh op] 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 Sh op] 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 c ountry. 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 pro ject throws light on clothing sector and business opportunities it has. 4. New e ntrepreneurs 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 o f dress material. 6. As the Indian fashion industry is growing every day, Indian dress designer's touch, creating garment which are truly outstanding. Designers a re always experimenting with the new design, style every season. For this purpos e, 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 d esigner outfit. So this business is more profitable. 9. Women want to be more st ylish 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 s titched with latest fashion. So the readymade garment shop gets the indeed signi ficant place in market. 11. This business requires huge investment and it also i nvolves some risk factors. 12. Its scope is wider as Akola is rapidly growing an d developing market place. Smt. L.R.T. College of Commerce, Akola. - 31 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] 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 sat isfy the needs of customers. 3. Owing to cut throat competition the shop owner n eeds to keep latest and fashionable stock to attract to large number of customer s. 4. Location plays the key role for this business. For a shop in a prime local ity 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 tim e. 6. They should have to know customer value 7. They have to develop their comm unication skill. 8. They should always aware about their social responsibility. 9. Develop self confidence and sufficient product knowledge. 10. They should ado pt 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 helpfu lness 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 Sh op] 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 ad minister and easy for respondents to deal with. They simplify the analysis of re sults, and can provide surprisingly detailed information. A useful way of delive ring a questionnaire is on-line. . However, questionnaires are easy to cheat o n and a market research agency will ensure that control questions has been bui lt 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. Y ear 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 Accepti ng Business 10. Any Other Additional Business 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 16. If There Is P artner in Shop 17. If Yes Then How Many Partners Are There? 18. If You Supply Go od To the Customer on Order Directly / Indirectly Yes / No Yes/No Wholesale / Re tailer Monthly / Yearly Smt. L.R.T. College of Commerce, Akola. - 33 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] 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 Y our 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? 2 9. If Yes How Much Is It 30. What Are The Risks of The Shop? 31. Which Problem D id You Face While Doing This Business. Yes / No Smt. L.R.T. College of Commerce, Akola. - 34 -

Project Report on Readymade Garment Shop [Special Reference to Ladies Garment Sh op] Appendix 2 BIBLIOGRAPHY Sr. No Author Name Book Name Publishing House Year of Publication A. 1. Books Bhosle R. M. Organization of Commerce Organization of Commerce And Managem ent Research Methodology And Project Work Research Methods In Social Sciences Gu ideline of Project Report Nilkanth Publishing House Mumbai Himalaya Publishing H ouse Nagpur Phadke Prakashan Pune Himalaya Publishing House Nagpur Himalaya Publ ishing House Nagpur Delhi Press Bhavan,Rani Zansi Marg New Delhi Vishwapti Laghu Udyog At Indian Express Newspapers (Bombay) June 1996 2. Franandes S. 2006-2007 September 2004 2001-2002 3. Herekar Dr.P.M. 4. Nakkiram Dr S. Shivkumar M. Prakash M. Magazines Nath Paresh 5. B. 6. 2001-2002 Gruhshobha Oct.2008 7. Tiwari jitendra Udyamita Oct.2008. 8. C. Varma Pradip Internet Lokprabha Oct.2008. 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 -