To establish a unique clothing retail business in the city of Delhi and NCR.

To provide quality clothing and customer service at a reasonable price. To achieve the largest market share in the respective sector in 5 yrs down the line. To achieve a profit in the first year and witness continuous profits in the coming To build lasting relationships years and improve loyalty, and acquire new customers over the years.

For setting up the first retail store of Desi Punk we acquired an area of 350sq feet @10000 per sq feet amounting to Rs.3500000 at center stage mall , shop no. 80, 2nd floor , sector 18 , Noida. PRODUCT SPECIFICATION: For women : kurtis , Salwar and churidaar . Jewellery includes rings , earrings, neck pieces and Traditional jootis

For men : full sleeves kurta pajamas and Traditional footwear .

Target Customers: College going youth and young professionals and just married couples in the higher middle class category within age group of 18-40 years. MARKETING MIX: Price Promotion Product Place Competition SALES STRATEGIES: To provide the customers value for money. Customer retention strategy through keeping a visitor book. Regular updates through posts and sms.

For setting up our first retail store we acquired an area of 350sq feet @10000 per sq feet amounting to Rs.3500000 at center stage mall . we have been purchasing land and building for further expansion of Desi Punk For 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)

CAPITAL REQUIREMENTS:

YEAR 1: CAPITAL- 25,00,000 LOAN 20,00,000 YEAR 2: CAPITAL 40,00,000 LOAN 17,60,000 YEAR 3: CAPITAL 60,00,000 LOAN 32,60,000 Interest on loan and capital was being provided at 10% per annum.

PARTICULARS To opening stock To purchases To wages To octroi To dock charges

AMOUNT 5,65,500 10,30,000 24000 5,000 6,500

PARTICULARS By sales By closing stock

AMOUNT 34,00,000 4,15,000

To gross profit transferred to p &21,84,000 l a/c

38,15,000

38,15,000

To salaries To stationary and printing To postage and telegram To audit fees To legal charges To telephone expenses

1,10,000 5,000 2,500 8,000 8,400 13,000

By gross profit transfer from21,84,000 trading account By bad debts recovered 27,000 By income from investment 10,000

To insurance account To repairs To sundry trade expenses To conveyance To office expenses To interest on loan To interest on capital To office lighting To advertising To import duty To discount To bad debts written off To depreciation: Equipment Furniture and fitting Land and building

60,000 4,900 1,200 13,400 16,200 2,00,000 2,50,000 56,600 15,000 2,00,000 21,200 1,23,750

27,500 7,500 3,50,000

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

LIABILITIES Creditors Bills payable Employee provident fund Loan 20,00,000 (Add) interest on Loan 2,00,000

AMOUNT 1,43,500 18,000 5,500

ASSETS Cash in hand Cash at bank Debtors 6,15,000 (Less) bad debts 1,23,750

AMOUNT 7,04,300 9,50,855

22,00,000 (Add) bad debts Recovered Closing stock Equipment 5,18,250 27,000 4,15,000 2,75,000 2,47,500 1,42,500

Capital (Add) interest on capital (Add) net profit

25,00,000

2,50,000 7,26,850

34,76,850

(Less) depreciation 27,500 Furniture and Fitting 1,50,000 (Less) depreciation 7,500 Land and building 35,00,000 (Less)depreciation 3,50,000 Patents

Income tax

3,12,555

31,50,000 28,000

61,56,405

61,56,405

PARTICULARS To opening stock To purchases To octroi To dock charges To Wages

AMOUNT 4,15,000 14,12,000 7,500 8,300 24,000

PARTICULARS By sales By closing stock

AMOUNT 43,70,000 3,80,000

To gross profit transferred to p &28,83,200 l a/c

47,50,000

47,50,000

To salaries To stationary and printing To postage and telegram To audit fees To legal charges To telephone expenses

1,95,000 5,815 2,800 8,000 8,400 12,250

By gross profit transfer from28,83,200 trading account By income from investment 3,85,000

To insurance account To repairs To sundry trade expenses To conveyance To office expenses To interest on loan To interest on capital To office lighting To advertising To import duty To depreciation: Equipment Furniture and fitting Land and Building

66,000 5,650 1,400 19,375 18,700 1,60,000 4,00,000 88,150 80,000 2,37,500

49,000 37,000 4,40,000

To net profit t/f to capital account 14,33,160 32,68,200 32,68,200

LIABILITIES Creditors Bills payable Employee provident fund Loan 16,00,000 (Add) interest on Loan 1,60,000

AMOUNT 3,70,000 59,000 9,750 17,60,000

ASSETS Cash in hand Cash at bank Debtors Closing stock

AMOUNT 6,54,358 10,43,500 16,50,000 3,80,000

Capital

40,00,000

Equipment 4,90,000 4,41,000 (Less)depreciation 49,000 Furniture and Fitting 3,70,000 3,33,000 (Less)depreciation 37,000 Land and Building 44,00,000 (Less)depreciation4,40,000 58,33,160 4,29,948 39,60,000

(Add) interest on capital 4,00,000 (Add)netprofit 14,33,160 Income tax

84,61,858

84,61,858

PARTICULARS To opening stock To purchases To octroi To dock charges To Wages

AMOUNT 3,80,000 21,80,000 14,000 21,050 24,000

PARTICULARS By sales By closing stock

AMOUNT 59,33,000 5,80,000

To gross profit transferred to p &38,93,950 l a/c

65,13,000

65,13,000

To salaries To stationary and printing To postage and telegram To audit fees To legal charges To telephone expenses

2,34,000 14,200 3,100 11,000 8,400 16,840

By gross profit transfer from38,93,950 trading account By income from investment 14,30,000

To insurance account To repairs To sundry trade expenses To conveyance To office expenses To interest on loan To interest on capital To office lighting To advertising To import duty To depreciation: Equipment Furniture and fitting Land and Building

70,575 9,145 1,730 25,940 21,000 3,26,000 6,00,000 1,10,085 49,350 4,25,000

49,000 47,500 5,70,000

To net profit t/f to capital account 27,31,085 53,23,950 53,23,950

LIABILITIES Creditors Bills payable Employee provident fund Loan 17,60,000 (Add) interest on Loan 1,76,000 (Add)additional Loan 15,00,000 (Add) interest On loan 1,50,000

AMOUNT 2,93,000 1,15,000 11,700 35,86,000

ASSETS Cash in hand Cash at bank Debtors Closing stock

AMOUNT 23,50,000 25,57,610 26,70,000 5,80,000

Capital

60,00,000

Equipment 4,90,000 (Less)depreciation 49,000 4,41,000 Furniture and Fitting 4,75,000 4,27,500 (Less)depreciation 47,500 Land and Building 57,00,000 (Less)depreciation 5,70,000 93,31,085 51,30,000

(Add) interest on capital 6,00,000 (Add)net profit Income tax

27,31,085 8,19,325

1,41,56,110

1,41,56,110

GROSS PROFIT RATIO:

YEAR 1: 64.23% YEAR 2: 65.97% YEAR3: 65.6 %

NET PROFIT RATIO:

YEAR 1: 21.37% YEAR 2: 32.79% YEAR 3: 46.03%

RETURN ON INVESTMENT:
YEAR 1: 16.15% YEAR 2: 25.59% YEAR 3: 29.49%

The projected sales has been increasing tremendously as in the 1st year the sale was Rs. 34,00,000,2nd year sales are Rs.43,70,000 which shows an increase of 28.52% and in the 3rd year the sales further increased by 15,63,000 which meant a 35.76% increase. Desi punk witnessed continuous profits wherein the profit in the 1st year was of 14,33,160 which grew by 11.42% in the second year which has further grown by 13.24% which has become possible due to the effective promotional strategy in advertising the brand. The proportionate increase in return on investment as in year 1:16.15% and in year 2:25.59% and in the year 3:29.49%. It has increased constantly with each passing year.

Desi Punk was successful in establishing a unique clothing retail business in Delhi and NCR . The strength of Desi Punk is that the customers could easily differentiate among the products while its weakness was absence of promotions strategy. We intend to diversify the business . We strive for continuous profits.

This project report mainly focused on ethnic women ware, other different kinds of trades under clothing sector are not considered. A new firm may find it difficult to enter in cloth trading as the already established firm may give them a tough competition. The firm needs to maintain varieties of stock which ultimately demanded a huge investment.