Project on Setting Up an Apparel Retail Store

7/31/2019 Project on Setting Up an Apparel Retail Store

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5/23

For setting up our first retail store we acquired an area of 350sq feet @10000 per sq feet amounting to Rs.3500000 atcenter stage mall .we have been purchasing land and building for furtherexpansion of Desi PunkFor the smooth functioning we hired people for the

following positions : Store manager(1) Assistant store manager(1) Department manager (2) Team leader (1) Team members (2) Cleaning Team (2)


6/23

CAPITAL REQUIREMENTS:

YEAR 1:CAPITAL- 25,00,000

LOAN 20,00,000

YEAR 2:CAPITAL 40,00,000LOAN 17,60,000

YEAR 3:CAPITAL 60,00,000LOAN 32,60,000Interest on loan and capital was being provided at 10% per annum.


7/23


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9/23

To insurance account 60,000

To repairs 4,900

To sundry trade expenses 1,200

To conveyance 13,400

To office expenses 16,200

To interest on loan 2,00,000

To interest on capital 2,50,000

To office lighting 56,600

To advertising 15,000

To import duty 2,00,000

To discount 21,200

To bad debts written off 1,23,750

To depreciation:

Equipment 27,500

Furniture and fitting 7,500

Land and building 3,50,000

To net profit t/f to capital account 7,26,850


10/23


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12/23

PARTICULARS AMOUNT PARTICULARS AMOUNT

To opening stock 4,15,000 By sales 43,70,000To purchases 14,12,000 By closing stock 3,80,000To octroi 7,500

To dock charges 8,300

To Wages 24,000

To gross profit transferred to p &l a/c

28,83,200

47,50,000 47,50,000

To salaries 1,95,000 By gross profit transfer fromtrading account

28,83,200

To stationary and printing 5,815 By income from investment 3,85,000

To postage and telegram 2,800

To audit fees 8,000

To legal charges 8,400

To telephone expenses 12,250


13/23


To repairs 5,650






To office lighting 88,150



To depreciation:

Equipment 49,000


Land and Building 4,40,000


32,68,200 32,68,200


14/23

LIABILITIES AMOUNT ASSETS AMOUNTCreditors 3,70,000 Cash in hand 6,54,358Bills payable 59,000 Cash at bank 10,43,500Employee provident fund 9,750 Debtors 16,50,000

Loan 16,00,000(Add) interest onLoan 1,60,000

17,60,000Closing stock 3,80,000

Equipment 4,90,000(Less)depreciation 49,000

4,41,000

Capital 40,00,000 Furniture andFitting 3,70,000(Less)depreciation 37,000

3,33,000

(Add) intereston capital 4,00,000

Land andBuilding 44,00,000(Less)depreciation4,40,000

39,60,000

(Add)netprofit 14,33,160 58,33,160

Income tax 4,29,948

84,61,858 84,61,858


15/23


16/23

PARTICULARS AMOUNT PARTICULARS AMOUNT

To opening stock 3,80,000 By sales 59,33,000To purchases 21,80,000 By closing stock 5,80,000To octroi 14,000

To dock charges 21,050

To Wages 24,000

To gross profit transferred to p &l a/c

38,93,950

65,13,000 65,13,000

To salaries 2,34,000 By gross profit transfer fromtrading account

38,93,950

To stationary and printing 14,200 By income from investment 14,30,000

To postage and telegram 3,100

To audit fees 11,000

To legal charges 8,400

To telephone expenses 16,840


17/23


To repairs 9,145






To office lighting 1,10,085



To depreciation:

Equipment 49,000


Land and Building 5,70,000


53,23,950 53,23,950


18/23

LIABILITIES AMOUNT ASSETS AMOUNTCreditors 2,93,000 Cash in hand 23,50,000Bills payable 1,15,000 Cash at bank 25,57,610Employee provident fund 11,700 Debtors 26,70,000Loan 17,60,000

(Add) intereston Loan 1,76,000(Add)additionalLoan 15,00,000(Add) interestOn loan 1,50,000

35,86,000

Closing stock 5,80,000

Equipment 4,90,000(Less)depreciation 49,000 4,41,000

Capital 60,00,000 Furniture andFitting 4,75,000(Less)depreciation 47,500

4,27,500

(Add) intereston capital 6,00,000

Land andBuilding 57,00,000(Less)depreciation 5,70,000

51,30,000

(Add)net profit 27,31,085

93,31,085

Income tax 8,19,325

1,41,56,110 1,41,56,110


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20/23

The projected sales has been increasing tremendously as in the1 st year the sale was Rs. 34,00,000,2 nd year sales areRs.43,70,000 which shows an increase of 28.52% and in the 3 rd year the sales further increased by 15,63,000 which meant a35.76% increase.

Desi punk witnessed continuous profits wherein the profit in the1 st year was of 14,33,160 which grew by 11.42% in the secondyear which has further grown by 13.24% which has becomepossible due to the effective promotional strategy in advertisingthe brand.

The proportionate increase in return on investment as in year1:16.15% and in year 2:25.59% and in the year 3:29.49%.It has increased constantly with each passing year.


21/23

Desi Punk was successful in establishing a unique clothingretail business in Delhi and NCR .

The strength of Desi Punk is that the customers could easilydifferentiate among the products while its weakness wasabsence of promotions strategy.

We intend to diversify the business .

We strive for continuous profits.


22/23

This project report mainly focused on ethnic women ware,other different kinds of trades under clothing sector are notconsidered.A new firm may find it difficult to enter in cloth trading asthe already established firm may give them a toughcompetition.

The firm needs to maintain varieties of stock whichultimately demanded a huge investment.


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Documents

Project on Setting Up an Apparel Retail Store