Botique Industry

Zarmeen's Collection

DEDICATION

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First of all we are thankful to our Almighty Allah for making

us able to complete this project. We are also thankful to our

teacher for imparting us the knowledge and for his

encouragement. Last but not the least we are thankful and

indebted to our parents with out whose support we would not

be, where we are. We are helpful that this Endeavour of ours

will be fruitful. We dedicate this project to our Honorable

teacher and our parents.


Executive Summary

Our Boutique Zarmeen’s Collection is newly established in Bahawalpur City in

Satellite Town. We focus on the establishment of designer wear Boutique

including the operations of apparel designing, manufacturing, selling and

marketing. This Project has been designed to capture the dynamics of the

Boutique industry in Bahawalpur and other big cities of Pakistan like Lahore,

Islamabad, Karachi, Faisalabad etc, with its many components and possible

strategic opportunities. This Project is financed with debt equity ratio of 60:40.

The Average Installed capacity of our product is 50% with 8400 dresses annually.

The internal rate of return is approximately is 78%.

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EMBROIDERY:

Embroidery is one of the most sought out handicrafts of Pakistan the world over.

Multan, Bahawalpur and surrounding areas are full of gifted men and women

who produce one of the most adorable cross stitch. "Tilla" work, Pearl work and

"Salma Sitary" work of NWFP are very famous throughout the country. Swat is

well-known due to thread embroidery, whereas, in D.G.Khan mirror work is

done on clothes. Works of these types are called "Kadhai." Chitrali "Patti," that is

woven on hand looms and Kadhai done on Chitrali Chugha is very famous

What is embroidery?

Embroidery is the art or handicraft of decorating or making things

Types of Embroidery

Following are some types of embroideries in Pakistan as well as in our neighbor

country India.

Zardozi Embroidery:

As far as the world of design is concerned, embroidery is the backbone of Pakistan. Some of

our embroideries that can do wonder for Zardozi embroidery.

Zardozi work is an ancient form of embroidery basically done with gold or silver zari

threads. It is also known as metal embroidery. Although now-a-days it is also done with

colored metal threads. The word Zardozi is derived by combining two words Zar and Dozi

which in Persian language means gold and embroidery respectively. Therefore it is clear

that this art of embroidery was originated in Persia which was bought to India by Moghuls.

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http://en.wikipedia.org/wiki/Art

http://en.wikipedia.org/wiki/Handicraft


Initially it was done with real metal threads of gold and silver. It was done on clothes for

the rich and royal, wall hangings, bedsheets, etc. In between the application of pearls and

precious stones looks stunning on it. Basically it is done on silk, crepe, brocade and velvet

fabrics. Zardozi embroidery saw its decline during the reign of Aurangzeb. It was revived

after the independence.

Mirror Embroidery:

This work also originated in Persia during 13th century. Mirror work is never done alone, it

is generally in combination with other types of stitches or embroideries. This embroidery is

done with both large and small mirrors. It is embroidered using colorful threads like red,

green, blue, yellow, black, maroon, etc.

Kantha Embroidery

Kantha is the traditional form of embroidery of West Bengal. It is running style of stitch.

The embroidery is done on many layers of cloth. It is done on quilts, bedsheets, blankets,

saris, salwar suits, stoles, napkins, etc.

It is also known as Dorukha. This word means making worn out garments into beautiful

garments. Therefore it is also known as recycling art. In earlier times the worn out silk or

muslin clothes where used to be put in piles and stitched together. It is believed that its date

of origin lies during the era of Lord Buddha. They used to drape themselves with rags of

clothes that were stitched together.

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Chikankari Embroidery

Chikankari is derived from the word Chakeen that means elegant patterns on the fabric

which is a Persian word. Earlier it was done with white thread on muslin clothes. However

now it is been done on various types of fabrics like cotton, linen nylon, georgette, chiffon

and synthetic fabrics. Apart from wearable garments it is also done on various other things

like curtains, bed sheets, table cloths, pillow covers and cushion covers.

Unlike earlier times it is not only done on white colored cloths but also fabrics of various

colors. But the thread used for the embroidery is generally white. Various motifs are

embroidered through it like floral motifs which include flowers like rose, lotus, jasmine,

creepers, etc.

Sindhi Embroidary

sindhi embroidery is very famous all over the Pakistan including sindhi topi, ajrak. Sindhi

embroidery made on dresses.

It is made with the help of many types of threads and in in different colours on different

fa brics.

Phool patti Work

Phool patti work is popular in allover the pakistan & it need no special machines. It is done

with the help of needles not with machines. It is done with different colours threads and on

different fabrics.

TYPES OF EMBROIDERY

As far as the world of design is concerned, embroidery is the backbone of Pakistan. Some of our

embroideries that can do wonders for an outfit are:

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Mirror Work Mirror work which has its roots in Rajasthan and Kutch.

Lari Fine quality gold thread embroidery found in Bareilly , Benaras ( Varanasi ), Lucknow and Agra. These days silver zari is equally popular.

Phool Patti Work Applique work from Aligarh where usually organdi or other fabric cutouts in floral and leaf motifs are affixed on to a plain fabric sometimes in tandem with silver tilla embroidery.

Chikan Work Originating from Lucknow this involves a technique of finding separated warp and weft threads for a textural effect.

Jaali Network.

Zardosi Leaf-scroll worked in gold and silver thread on silk, satin, velvet and other rich fabrics. Zardosi is also combined with Dabka work and is originally from Lucknow.

Mokaish Silver dots strewn all over is Mokaish work.

Sitara Work Sequins are embroidered into the fabric.

Product Mix

Designers dresses for men and women,

Matching Ladies Bags

Ladies and gents Matching Shoes

Matching Jewelry

Embroidery dresses will design and manufactured in the boutique while

Bags, shoes and jewelry will be purchased on order form other Suppliers.

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Suppliers

Stylo Shoes, Service shoes & Borjan shoes will provide us with matching

ladies and gents shoes. We will Order for matching bags to Sanat Zaar

Embroidery School. Jewelry will be purchased from main market of

Bahawalpur.

Installed Capacity

The Boutique business capacity is greatly dependent on the market size and

the number of potential clientele one can attract. Furthermore, the women

fashion wear garments will be designed through a contracted designer and

then stitched through in-house stitching unit. On average Installed capacity

of our Product is 60%..700 dresses will be manufactured in one month to

sale in Boutique. While Embroidery work on Order will also be taken from

in and outside the city.

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Estimated Production during the first Year

With in 1 year approximately 8400 dresses will be produce in boutique for

sale. Orders are exceptions from this production.

Cost of Project

Description Rs.

Fixed Initial cost 9990320

Initial Working Capital 13773350

Total 23763670

Means of Finance

Description Amount

Debt:Eqity Ratio 60:40Amount of Debt

Amount of Equity

14.258202 million

9.505468 million

Name of Financial Institution

Habib Bank Limited BahawalpurRate of Interest 18%

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Sponsors and Machinery Suppliers

Name of Sponsors Zarmeen, Zareen

Machinery Suppliers Ahmad and Son’s TradersFauji Trading CorporationHafiz and Karim Trading Corporation

Sponsor Stake 40%

Financial Ratios & Net Profit Margin

Year 2010 2011 2012 2013 2014Current Ratio 87.59 147.08 220.42 308.53 412.41

Debt as %-age of total capital. 60.00% 39.36% 23.39% 12.30% 4.87%

Net Margin (%) 22.83% 26.84% 29.58% 32.03% 34.21%

:

IRR:Internal Rate of Return 78%

Payback Period:

Payback Period (Years) 0.2072

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Introduction of Business:

Our boutique is established in 2009 to compete the market of embroided

dresses, shoes, hand bags etc. It’s a partnership type business started by 2

members Zarmeen & Zareen. They started this business with huge

investment for the purpose of this business is to make embroided dresses

and to sell these in market and as well as we sell the readymade hand bags,

shoes, jewellary in our boutique to enhance sale & to attract customer that an

opportunity to collect their relevant shopping from our boutique.

We also sell hand bags, jewellary, matching shoes but we not made these but

purchase these from market we mostly purchase shoes from Stylo, Borjan,

Bata shoes.

We collect jewellary from akram Awn shopping center, Takbeer shopping

mall, Ace shopping mall etc.

Technical Analysis

In our boutique 10 embroiding machines, 20 single needle locking macines,

10 over lock stitching machine are present for the purpose of embroidery

dresses with the handmade embroidery dresses. In this simple machines are

used having not very expensive.

Inputs required are:-

Fabric

Electricity

Single needle lock stitch Machines

Embroidery machine

Scissors

Cutting board

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Embroideries accessories

In technical analysis following is production process flow described as well

as shown in a diagram

Design:

Pattern Making/Cutting

Stitching:

Finishing:

Presentation/Market:

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Designing Pattern Making Embroidery

CuttingStitchingFinishing

PresentationMarket/Clientele


Personnel Analysis

In our boutique following is description of personnel

Chief executive

Designers

Sales girls

Product supervisor/ cutting master

Iron man

Office boy

Above all these personnel these include all technical & non-technical

personnel but at the same time there is no special need of technical

knowledge except designer who need some technical knowledge in

computer for innovating new designs day by day.

SWOT ANALYSIS

Strengths

Our Boutique would be the first big boutique in Bahawalpur city The labor

to manufacture embroidery dresses is easily available we can reach easily to

low cost labor. Moreover the location for our project is very attractive. We

can avail maximum advantage from this market.

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Weaknesses

Our weakness is that we are not manufacturing other accessories like bags,

shoes etc at initial stage. And we have to rely on other contractors for these

accessories. But with the passage of time we will hopefully enter in

Matching Bags and Shoes Business as well.

Opportunities

Clothing is a beautiful visual demonstration of the social and emotional

needs of people wearing it. It also portrays in a clearly understood visual

manner, what people of different cultures and styles want socially. Fashion,

through times, has gone through so many rapid changes and bizarre

extremes that it has examples of nearly every kind of clothing function.

The range of Pakistani dresses is remarkably wide, according to the vast

cultures, geographical differences, purchasing capacities, influence of the

western culture, and bewildering diversities of the ethnic groups. One has,

therefore, to sift and isolate, and then relate and bring together, the ideas for

creating various designs, which can fit in the context of the fashion in vogue

and the culture in practice. Furthermore, there is massive export potential in

this sector, as the demand of Pakistani dresses, especially in countries like

UAE, USA, and UK, is massive due to a high number of Pakistani

expatriates who have settled in these countries. The Boutique business can

also be expanded into a more profitable venture by providing stitching

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facilities to other boutiques, which do not own a stitching unit or are lacking

this facility.

Threats

Competitive Structure of the market

The market of the boutiques is highly competitive; therefore if the

entrepreneur is

not well responsive to the tastes and response of the clientele as well as the

fashions

in vogue he/she may not be able to capitalize the opportunity properly.

Pilferage in the designs

The designs which a designer produces can be sold by the staff even before

that Design is launched and that can pose serious threat to the business

because in the Fashion industry it is the uniqueness of the design which

matters.

Selection of the wrong venue

Selection of the wrong venue can be a major hurdle in achieving the desired

business objectives.

Selection of the wrong design

If the designs are not selected according to the tastes of the clientele then it

can be detrimental for the business, so the clientele taste should be properly

tracked.

Tax

Improper documentation of the sales receipt record may lead to problems

with Tax department.

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MARKETING

The marketing of boutique follows the conventional marketing pattern which

is dependent on selection of venue of the outlet/s and the product mix

(designs and sizes), as well as the promotional strategy. We are using

following medium to promote our product.

1) Usage of print media i.e. printing of posters and pamphlets as well as

displaying it and distributing it at proper places

2) Advertisement in print media i.e. newspapers and fashion magazines, etc.

3) Usage of electronic media i.e. projection of the boutique in fashion

programs, Advertisement on television, and provision of dresses to various

television plays and films.

4) Event arrangement like fashion shows and photo-shoots.

5) Usage of e-commerce i.e. launching of website and advertising on web.

List of Machinery

Machinery NoSingle needle Lock stitch machine 20Over Lock Stitch Machine 10Embroidery Machine 10Accessories (Scissors, Cutting Board,Table, Stool, Carpet etcOther EquipmentsAir Conditioner 2Stereo System 1Computer and Printer 5Telephone 2Security System( Cameras and television) 3

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Raw Material:

The raw-material required for such sort of projects, would be as follows:

Fabric: The fabric, which is the basic raw material requirement for a

boutique and a major component of the cost, can be obtained from wholesale

markets or from markets specializing in designer cloth at Faisalabad,

Karachi, and Lahore.

Accessories: Accessories such as buttons, laces, zippers, elastics, threads,

needles, embroidery threads, glasses, etc. will be procured from the local

market at competitive rates.

Labels, tags and packaging: Labels and tags can be obtained on order, as

these serve as an identity for the boutique and are useful for promotion.

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Personnel:

Requirement of Staff:

Production Staff

Designer 5

Product Supervisor/Cutting Master 5

Snitchers/Tailors 4

Press/Iron Man 5

Finishing Man 2

Administrative Staff:

Chief Executive Officer/Owner 2

Sale Girls 8

Office boy 3

Total 34

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Infrastructure Requirement

The project will have the following infrastructure components:

Infrastructure Requirement

Description Sq.ftMain shop (30x30)Bags Deptt (15x4)Shoes Deptt (15x4)Jewelry Deptt (15x4) Try Room 2, (4x5) Office 7x7Store BasementBuilding for Stitching Unit 10 Marla House

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15x4 Bags shop

15x4Shoes

7x70ffice

15x4Jewlry

4x5 4x5

30z30

30x30 Entrance

Try roomTry room

Main Shop Structure


Financial analysis

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Cost of the ProjectDescription Local Foreign Total

Lease Expenses (shop) 1000000 0 1000000Furniture and Fixture ((interior Decration) 500000 0 500000Machinery and Equipment. 6955000 0 6955000Security Deposit for Stitching house. 108000 0 108000

Pre-operating Expenses:Staff's 1month Salaries. 442000 0 442000Promotional Expenses 985320 0 985320Total Pre Operating Expenses 1427320

Total capital cost 9990320

Working Capital: Raw Material (Fabric and Accessories) 7244600 0 7244600 Cost Incurred on Bags, Shoes, Jewellery 4365000 4365000Account Recivable 5% of sales 1767750 0 1767750Advance Rent (Boteque and Stitching house) 396000 0 396000Total Working Capital 6528750 0 13773350

Total Project Cost 23763670


Project ReturnsDescription Rate

Internal Rate of Return 78%

Payback Period (Year) 0.2072

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Means of financeDebt and Equity

Debt:

Long term Loan 14258202

Total Debt 14258202

Equity:

Paid-up-Capital 9505468

Total Equity 9505468

Total Debt and Equity 23763670

Debt : Equity Ratio 60:40


Zarmeen’s Collection Projected Income Statement

Projected Income Statement

Year 2010 2011 2012 2013 2014Description Sales 35355000 38890500 42779550 47057505 51763256Cost of Goods Sold: Raw Material 4809000 4857090 4905661 4954718 5004265Embridory and Accessories costs 2435600 2459956 2484556 2509401 2534495 RawMaterial,Embriodry and Accessory 7244600 7317046 7390216 7464119 7538760 Purchase of Bages , Shoes and Jewellery 4365000 4474125 4585978 4700628 4818143Machine Maintanece 25000 27500 30250 33275 36603Payroll Production staff. 3420000 3762000 4138200 4552020 5007222Direct Electricity 120000 132000 145200 159720 175692 Total 15174600 15712671 16289845 16909761 17576420 Gross Profit 20180400 23177829 26489705 30147744 34186836 Operating Expenses: Fixed Electricity 144000 158400 174240 191664 210830Payroll Administration 1884000 2072400 2279640 2507604 2758364Shop and Stitching House rent 396000 415800 436590 458420 481340Amortization pre Operating Expense 142732 142732 142732 142732 142732Telephone, Internet Charges 84000 88200 92610 97241 102103Promotional Expenses 1060650 583358 641693 705863 776449Depriciation 1093250 1093250 1093250 1093250 1093250Total 4804632 4554140 4860755 5196773 5565069 Operating Profit 15375768 18623690 21628950 24950971 28621767 Non-Operating Expenses: Fnancial Charges 2566476 2053181 1539886 1026591 513295Total 2566476 2053181 1539886 1026591 513295

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Profit Befor Tax 12809292 16570508 20089064 23924381 28108472Tax 4739438 6131088 7432954 8852021 10400135

Net Profit After tax 8069854 10439420 12656111 15072360 17708337 Operating Retained Earnings 0 8069854 18509274 31165385 46237744Retained earning beginning of year 8069854 18509274 31165385 46237744 63946082

Zarmeen’s CollectionProjected Cash Flow Statement

Year 2009 2010 2011 2012 2013 2014 Description Operating Activities: Net Profit 8069854 10439420 12656111 15072360 17708337 Amortization of Preoperating Expenses 142732 142732 142732 142732 142732 Security Deposits (1108000) Building Rent Expenses 396000 415800 436590 458420 481340 Building Rent Repayments (396000) (415800) (436590) (458420) (481340) (505407)Depriciation 1093250 1093250 1093250 1093250 1093250 Stock and Inventory(Embriodry dresses and Bags, Shoes, Jewellery) (11609600) (307435) (338178) (371996) (409196) (450115)Account Recievable (1767750) (265163) (304937) (350677) (403279) (463771)Account Payable 144270 1443 1457 1472 1486 Cash Provided By Operations (14881350) 8857708 11012940 13149047 15474418 18007853 Financing Activities: Share Capital 9505468 Adition To Long Term Debt 14258202 Long term Debt Repayment (2851640) (2851640) (2851640) (2851640) (2851640)Short Term Debt

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Repayment Cash Provided/used for financing Activities 23763670 (2851640) (2851640) (2851640) (2851640) (2851640) Investing Activities: capital Expenditure (8882320) 0 0 0 0 0 Cash Used, Provided by Investing Activities (8882320) 0 0 0 0 0 Net Cash Inflow/Out flow 6006068 8161299 10297406 12622777 15156212 Cash Balance Brought Forword 0 6006068 14167368 24464774 37087551 Cash Balance 6006068 14167368 24464774 37087551 52243763 Running Finance 0 0 0 0 0 Cash Carried Forword 6006068 14167368 24464774 37087551 52243763

Projected Balance Sheet

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Year 2009 2010 2011 2012 2013 2014 Description

Assets:

Current Assets: Cash 0 6006068 14167368 24464774 37087551 52243763 Security Deposit 1108000 1108000 1108000 1108000 1108000 1108000 Stock and Inventry((Embriodry dresses and Bags, Shoes, Jewellery) 11609600 3074348 3381783 3719961 4091957 4501153 Prepaid Rent 396000 415800 436590 458420 481340 505407 Account Receivbles 1767750 2032913 2337849 2688527 3091806 3555577 Net Current Assets 14881350 12637128 21431589 32439681 45860654 61913900

Fixed Assets: Furniture and Fixtue 500000 500000 500000 500000 500000 500000 Machinery And Equipment 6955000 6955000 6955000 6955000 6955000 6955000 Total 7455000 7455000 7455000 7455000 7455000 7455000 Less: Accumulated Depriciation Furniture and fixture 0 (50000) (100000) (150000) (200000) (250000) Machinery and Equipment 0 (1043250) (2086500) (3129750) (4173000) (5216250) Total Accumulated Depriciation 0 (1093250) (2186500) (3279750) (4373000) (5466250)Net Fixed Assets 7455000 6361750 5268500 4175250 3082000 1988750 Intangible Assets: Pre Operational Expenses 1427320 1427320 1284588 1141856 999124 856392 Less Amortization 0 (142732) (142732) (142732) (142732) (142732)Total 1427320 1284588 1141856 999124 856392 713660 Suspense Account 0 8842687 8873431 8907248 8944448 8985368

Total Assets 23763670 29126153 36715376 46521303 58743494 73601678

Liabilities and

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Owner Equity: Liabilities: Long term Debt 14258202 11406562 8554921 5703281 2851640 0 Short term Debt Account Payable 0 144270 145713 147170 148642 150128 Total 14258202 11550832 8700634 5850451 3000282 150128 Equity: Paid Up Capital 9505468 9505468 9505468 9505468 9505468 9505468 Retained Earnings 0 8069854 18509274 31165385 46237744 63946082 Total 9505468 17575322 28014742 40670853 55743212 73451550

Total Liabilities and Equity 23763670 29126153 36715376 46521303 58743494 73601678

Important Ratios

Year 2009 2010 2011 2012 2013 2014Current Ratio 87.59 147.08 220.42 308.53 412.41Debt as %-age of total captlsn. 60.00% 39.36% 23.39% 12.30% 4.87%- Gross Margin (%) 57.08% 59.60% 61.92% 64.07% 66.04%- Operating Margin (%) 43.49% 47.89% 50.56% 53.02% 55.29%- Net Margin (%) 22.83% 26.84% 29.58% 32.03% 34.21%Interst Coverage(Times) 5.99 9.07 14.05 24.30 55.76

Calculations1)Machinery and Equipment

Machinery No Rs/Unit Rs.

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Single needle Lock stitch machine 20 300000 6000000Over Lock Stitch Machine 10 25000 250000Embriodry Machine 10 25000 250000Accessories (Scissors, Cutting Board, Table, Stool, Carpet etc 75000Total 6575000Other Equipments Air Conditioner 2 30000 60000Stereo System 1 20000 20000Computer and Printer 5 40000 200000Telephone 2 5000 10000Security System( Cameras and television) 3 30000 90000Total 380000Total Machinery and Equipment cost 6955000

2)Security Deposit for Stitching house Description Months Rent/month TotalSecurity Deposits for Stitching house 6 18000 108000Rent payment for Stitching House 12 18000 216000Rent payment for Shop 12 15000 180000Rent Payment for Shop and Stitching House(1 Year) 396000Advance Rent Advance Rent for Shop 12 15000 180000Advance Rent for Stitching House 12 18000 216000Total Advance Rent 396000

3)Human Resource RequirementPosition Required salary/month

Salary Per

Salary Per

Per Worker month AnnumChief Executive Officer/Owner 2 40000 80000 960000Designer 5 30000 150000 1800000Sale Girls 8 7000 56000 672000Product Supervisor/Cutting Master 5 10000 50000 600000Stitchers/Tailors 4 10000 40000 480000Press/Iron Man 5 7000 35000 420000Finishing Man 2 5000 10000 120000Office boy 3 7000 21000 252000Total 34 442000 5304000Payroll of production Staff 3420000Payroll Administration staff 1884000

4)Depriciation Cost DEPRECIATION COST HAS BEEN CALCULATED ON STRAIGHT LINE PRINCIPLE APPLYING USUAL RATES AS UNDER;- Machinery and Equipment 15.00% 6955000 1043250Ferniture and Fixture 10.00% 500000 50000

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Total 1093250

5)Amortization CostAmortization Pre-Operating Expenses 10.00% 1427320 142732

Tenure 10 year

6)Capital Expenditures

Furniture and Fixture ((interior Decration) 500000

Machinery and Equipment. 6955000

Staff's 1month Salaries. 442000

Promotional Expenses 985320

Total Capital Expenditurs 8882320

7)Long Term Debt Payment 14258202 5 2851640

8)Project Return

Year Operating Depriciation

Net cash

Profit flow

2009 (23763670) 0 (23763670)

2010 15375768 1093250 16469018

2011 18623690 1093250 19716940

2012 21628950 1093250 22722200

2013 24950971 1093250 26044221

2014 28621767 1093250 29715017

Internal Rate of Return(%age) 77.99%

Payback Period(year) 0.2072

Assumptions

1) production Assumptions

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Ladies Gents Total Dress Dress Number of Stitching Machines 20Production Capacity (No. of dresses per month) 800 600 1400Production Capacity (No. of dresses per year) 9600 7200 16800Capacity Utilization for the first year (No. of dresses per month) 300 400 700Capacity Utilization for the first year (No. of dresses per Year) 3600 4800 8400Self Production (% of total production) 100.00%Installed Capacity 50.00%

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2) Cost Assumptions

Embroided Dresses Average unit cost per dress (Rs.) Fixed cost Machine Maintenance Cost 5 Admin & Rent expenses & promotional expenses 300 Fixed electricity 30 Average Fixed Cosr Per Dress(Rs) 335

Ladies Dresses Average Variable Cost Material & Fabrics 669 Accessories 160 Embroidery Cost 358 Direct Labor Cost 250 Direct Electricity Cost 23 Average Variable cost per Ladies dress (Rs.) 1461 Average Total Cost Per Ladies Dress 1796 Gents Dresses Variable Cost Material & Fabrics 500 Accessories 22 Embroidery Cost 97 Direct Labor Cost 250 Direct Electricity Cost 22 Average variable cost per gents Dress 891 Total cost per Gents Dress 1226

Raw Material

Embriodry and

Direct Electri- Maintain-

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Cost Accessory city Costence Cost

Cost Ladies Dresses 2409000 1866000 84000 18000 Gents Dresses 2400000 569600 105600 24000 Total 4809000 2435600 189600 42000 Raw Material And Accessories cost 7244600

Ladies Bags(Annual purchase) Cost Per units Rs. Unit Casual Bags 550 800 440000Fancy Bags 700 500 350000Total Cost on Bags 1300 790000Stock in Hand (1Year) 10% 900 130 117000

Shoes(Annual purchase) Purchase units Rs. Price/Unit Ladies Shoes 850 1500 1275000Gents Shoes 1500 1000 1500000Total Cost on Shoes 2500 2775000Stock in Hand (1Year) 10% 1600 250 400000

Jewellery(Annual purchase) Purchase Items Rs. Price/Items Casual Jewelry 400 1000 400000 Formal Jewelary 500 800 400000

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Total Cost on Jewellery 1800 800000 Stock in Hand (1Year) 10% 650 180 117000 Total Cost on Bags, Shoes, Jewellery 4365000 Total Stock in Hand (Bags, Shoes, Jewellery) 634000 Increase in cost of (Bags, Shoes, Jewellery) 0.025

3)Salea assumptions Embroided Dresses Laddies Dresses No. of dresses sold per month(Year 1) 500Average unit price per dress (Rs.) 3283Average Monthly Sales through retail outlet (Rs.) 1641667Gents Dresses No. of dresses sold per month(Year 1) 300Average unit price per dress (Rs.) 1933Average Monthly Sales through retail outlet (Rs.) 580000Net Sale per month (1 Year) 2221667 Net Units Produced per Year (Units) 1year 8400Ending stock (1 Year) %age of units Produced 672Net Units Sold per year 7728Average Price per ress 4250Net Sale per Year (Rs) 1year 32844000 Closing Stock 2856000

Ladies Bags(Annual Sale) Sale units Rs. Price/Unit Casual Bags 150 720 108000 Fancy Bags 200 450 90000 Net Sale of 1170! 198000

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Bags

Shoes(Annual Sale) sale units Rs. Price/Unit Ladies Shoes 700 1350 945000Gents Shoes 1000 900 900000Net Sale of Shoes 2250 1845000

Jewellery(Annual Sale) Sale Items Rs. Price/Items Casual Jewellery 200 900 180000Formal Jewellery 400 720 288000Net Sale of Jewellelry 1620 468000 Net sale of Bags,Shoes, jewellery (1 Year) 2511000 Net sale of Boteque 35355000 Sale growth rate (Units) 10.00%Sale growth rate (price) 3.00%

4) Operating Assumptions

total

Hours operational per day 8

Days operational per month (Production)

25

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Days operational per month (Boutique) 25

6) Expense Assumptions Initial Promotional Expenses (Year 1) 3.00% (%age of expected sales) Promotion Expenses after Year 1 1.50% (% of expected sales) Machine Maintenance per annum Rs. 25000Direct Electricity per month (Year 1) 10000Fixed Electricity per month (Year 1) 12000Telephone and Internet charges per month (Year 1) 7000Raw Material Price Growth rate 1.00%Payroll growth rate 10.00%Machine Maintenance growth rate 10.00%Direct electricity growth rate 10.00%Fixed electricity growth rate 10.00%Rent growth rate 5.00%Telephone and Internet charges growth rate 5.00%

Depreciation Method Straight

LineAccount Recivable(%age of sales) 2.00%Account Payable (%age of Raw Material and Accessories 3.00%

7) Financial Assumption

Project Life 15 yearDebt: Equity Ratio 0Interest Rate on Long Term Debt

18.00%

Interest Rate on Short Term Debt

18.00%

Debt Tenure 5yearDebt Payment per year 100.00%Discount Rate 18.00%

Tax Rate 37.00%5) Cash flow Assumptions

total

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Account Payable Cycle (Days) 10

Account Receivable Cycle (Days)

10

Raw Material Inventory (Days)

15

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Documents

Botique Industry