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Similar to City Max Men's Fashion Shop Project Report
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City Max Men's Fashion Shop Project Report
- 1. Project Report On City Max Men’s Fashion Shope Kottarakkara, Near ICICI Bank, Kottarakkara Taluk, Kollam Dist.
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- 3. CONTENTS MUDRA/PMMY AT A GLANCE. MUDRA - VISSION, MISSION AND PURPOSE. INTRODUCTION. SCOPE & MARKET POTENTIAL. PROMOTER. LOCATION & INFRASTRUCTURE FACILITY. ECONOMIC VIABILITY. FINANCIAL VIABILITY. CONCLUSION. COST OF EXPANSION PROJECT & FINANCE ANNEXURE - FINANCIAL INFORMATION 3
- 4. MUDRA/PMMY AT A GLANCE Micro Units Development & Refinance Agency Limited (MUDRA) and Pradhan Mantri MUDRA Yojana (PMMY) were launched on 08 April 2015 by the Hon’ble Prime Minister, Shri Narendra Modi. The guidelines of PMMY issued by Department of Financial Services (DFS), GOI indicated that all banks are required to lend to micro enterprises engaged in manufacturing, processing, trading and service sector activities, for a loan upto ₹10 lakh. Further, it was also advised that the loan may be given in three categories, i.e. Loan upto ₹ 50,000 under Shishu; ₹ 50,000 to ₹ 5 lakh under Kishor; and ₹ 5 lakh to ₹ 10 lakh under Tarun. 4
- 5. INTRODUCTION After food and shelter, cloths is very essential need of human being. It was earlier to wear individually tailored dresses, and 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 realizing the potential of both areas, this project aims to establish a readymade garments as well as a designer garments unit for the fashion sensitive people. SCOPE & MARKET POTENTIAL 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, Keralite 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 5
- 6. 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 in the field for a long time, the promoter deeply know the various aspects of the industry and now confidently came forward to expand his a garment unit. PROMOTER The promoter of this proprietorship business unit, CITY MAX MENS FASHION SHOPE KOTTARAKKARA , Kollam [Dist.] is Mr. Sajeev Khan residing at sajeev manzil kannimel pattazhi, kottarakkra kollam- 691522 Mr. Sajeev Khan has a spontaneous talent of selling aptitude and strong vision to develop his on mark in the garment retile industry. He is a very experienced person in the said industry, and he is very capable of running the business in very success which he shown already. He has a huge amount of contacts in the current business cycle and all of them confident in the service that he provide to them. He is a dynamic person with greater aspiration. And strong in convincing his customers. His current success is an great example of his excellence. He now looking to expand his business to achieve greater heights in the area of textiles industry. 6
- 7. LOCATION & INFRASTRUCTURE FACILITY Being in the right location is a key ingredient in a business's success. The principal place of business of is located in Kottarakkara market jn., opp: ICICI Bank, Kottarakkara Taluk Kollam District in a rental building. The place offers ample scope for a business like this. This location has all the facilities for the smooth functioning of his business. 7
- 8. ECONOMIC VIABILITY It is known to all that around 40 to 50 percent of the gross receipts is an accepted gross margin in this sector and the industry standard of spread in demand and expenses is around 12 to 18 percent which is sufficient to cover the fixed financial charges of the bank providing working capital for the business. . Estimated Annual Average Profitability (Based on Projected Financials) Particulars ₹ Average annual Sales. (A) 41,85,500.00 Average annual Cost of sales. (B) 25,11,300.00 Gross Profit. (A-B) 16,74,200.00 Gross Profit Ratio 40% Average Net Profit 1,40,189.70 Average Net Profit Ratio 33.50% 8
- 9. FINANCIAL VIABILITY The Profitability Statements, Balance Sheets, Cash Flow Statements and Schedules of fixed assets are given as Annexure to this report. The financials given as Annexure are worked out on the following assumptions:- Rate of Interest for Term loan from bank is estimated at 10.45% per annum. Gross Turnover/receipts increases at the rate of around 20 percent per annum. Carriage inward and unloading charges are considered to be 10 percent of purchases. Schemes and Discounts are 2 percent of cash paid to suppliers. Sundry creditors allow 2 weeks for payment. Sundry debtors allow maximum 15 days credit to keep the regularity. All other operating expenses increased @ 10 percent pa . Depreciation is calculated on Written Down Value Method as per the prevailing rate and manner prescribed under the Income Tax Act, 1961. Income tax for the year is considered to be paid in the year itself in view of the advance tax provisions and are duly transferred to drawings. 9
- 10. CONCLUSION The Project Report is prepared on a conservative basis. The experience of the Proprietor in the business, location based advantages, large clientele, etc. are added advantage for the success of the business of Mr. Sajeev Khan. The good net margin and comparatively lower indirect expenses indicates the creditworthiness of this business and industry. Considering this with all other infrastructural facilities and strong customer relationship... etc., the project is technically feasible and financially viable. 10
- 11. PROJECT HIGHLIGHTS COST OF EXPANSION PROJECT MEANS OF FINANCE S.L Items Amount 1 Shop & Storage Space On Rent 2 Furniture And Fittings & Display Materials 1,00,000.00 3 Electrical Equipments 20,000.00 Sub Total 1,20,000.00 Working Capital 4 Assorted Garments and Ready-mades 3,80,000.00 5 Receivables/ Debtors 50,000.00 6 On other Current Assets 25,000.00 7 Provision for contingencies 25,000.00 Sub Total 4,80,000.00 Total (A+B) 6,00,000.00 Means of Finance S.L Items Amount % 1 Promoter's Contribution 1,50,000.00 25% 2 Loan Amount 4,50,000.00 75% Total 6,00,000.00 100% 11
- 17. PREPARED BY: JIJO SAJI For , M/s. DEEPU MOHAN & ASSOCIATES CHARTERED ACCOUNTANTS GLORY BHAVAN BUILDING NEAR ICICI BANK KOTTARAKKARA - 691506 PH: +91 8547489041; 9207349353 E-MAIL: jijosajiepz@gmail.com cadmktr@gmail.com