21

2009-10

B.M. COLLEGE OF
Pre Feasibility Report on Retail B siness O! Gi!t " Arti#les

S b$itte% by
Na$e Ra&i Goyani May r Italiya Priyan* +iyani '( ') ,)
Roll No.

S b$itte% to Pro!. As-isS *-a%iya

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-:INDEX:NO. 1. 2. 3. 4. . ". %. *. -. 10. 11. 12. 13. CONTENT Introduction Introduction of Business Target customer Infrastructure Ac!uirement #escri$tion Of E!ui$ment Cas& 'e!uirement Per (ont& Tota) re!uirement of recourses P)ant +a,out .aci)it, Pro/ided to Customer Ca$ita) 0tructure .irst 1ear Estimate And .uture Pro2ections Estimated Ba)ance s&eet .or T&e .irst 1ear Necessar, +icenses PAGE NO. 03 04 0 0" 0% 0% 0* 13 14 1 1" 1% 1*

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INTRODUCTION
T&e 'etai) 3usiness in 0urat cit, is /er, /ast. Business )i4e Gift 5Artic)e6 Garments6 (o3i)e s&o$6 3oo4store etc. In suc& 3usiness6 'etai)er direct), communicates 7it& t&e consumer 8 it re!uires )ess in/estment. Our 3usiness is a)so concerned 7it& retai) 3usiness. 9e main), concentrate on gift artic)es6 3oo4s 8 C# ga))er,. Gift artic)e contains products related to Special functions like birth day party, wedding, engagement & also Related to festival like DA), DIWA I,RA!S"A#A$D"A$,%&A'"&R(S DA),*RI&$DS"I+

&%', Boo4s is meant for )i3rar, 7&ere customer can get /arious t,$es of 3oo4s )i4e No/e)s6 0tor, Boo4s6 (aga:ines on ;arious To$ics etc. C# Ga))er, contains C#<#;# for (o/ies6 0ongs6 Education.

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INTRODUCTION OF BUSINESS

1= $A-& .* %"& S".+ / 2= .'A%I.$ /

('P 9O'+# Gu2arat Gas Circ)e6 Ada2an6 0urat. 1 00 0>.T - ?NO0=

3= W.R! S+A'&/ 4= &-+ .)-&$% +.%&$%IA /

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Target customer
We mainly focused on youngster, teenagers &students We have one department of books for that our target audience is teachers, students, professionals, senior citi en

!or the gift article our target audience is every class of people

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INFRASTRUCTURE ACQUIREMENT:1. .urniture 8 .i@tures 2. ;e&ic)es 3. Bui)ding ?On rent= Total Investment:-

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$., 1, 2, 3, 4, 5, 6,

D&S'RI+%I.$
Bui)ding ?on rent= ?'s.206000 $er mont& 8 16006000's. #e$osit= (ac&iner, .urniture 8 fi@tures ;e&ic)es Cas& re!uirement $er mont& (ateria) Tota)

A-.0$%
36406000 -46000 36006000 306000 06000 1 6006000 22,76,888

DISCRIPTION OF EQUIPMENT

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Table of Equipment costs are as follows %A# & .* &90I+-&$% $A-& .* -:', $.S, '.S%
A.C. (<C. CO(PATE'0 Co)our $rinter 8 0canner 0ound 0,s tem Te)e$&one +C# Te)e/ision %.%A '.S% .* 2 1 1 1 1 1 40000 20000 *000 000 1000 206000 ;4,888

SR,$., 1 2 3 5 6 7

CASH REQUIREMENT PER MONTH

$., +AR%I'0 AR i, 0a)ar, 8 9ages ii, iii, iv,
Po7er Ot&er (ic. E@$enses 'ent %otal

A-.0$%
3%6000 *000 000 20000 78888

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TOTAL REQUIREMENT OF RESOURCES

No Name . "#)#&# 1 2 3
,--./ 01!T 2$T1"23'/

Total cost
1,*+,000 1,+0,000 11,*+,000

"#s are available at 28 $s%each and our selling price is 30 $s%

#&#s are available at 38 $s% 'ach and selling price is 40 $s%

(rofit margin on books is 20% on purchased price%

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(rofit margin on 0ift articles is 0% on purchased price%

GIFT ARTICLES

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CDs & DVDs

CARDs

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Suppliers
$o, 1 2 3 S0++ I&RS
Om #istri3uter 0&reenat&2i 'a/i Boo4 #e$o

+ A'&
(um3ai 0urat A&mada3ad

Te!ms a"# co"#$t$o"s %$t& '!o#(ct s(''l$e!

1% We purchase gift articles from one supplier so,they give us +4 discount%

2% We make payment *04 in cash & remaining 504 on t6o months credit%

5% "#)#&# (ayment is done in cash%7"#)#&#s of 8-/'$,'2$ "-8(29:;

<% ,ooks are purchased in cash%

COM)ETITOR

1%3ocal 0ift 2rticle shop, 8alls, ,ig ,a aar etc%

2%(lante 8, 3ocal cd& dvd shop etc%

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5%2rchices 0allery, 9To9 #ollar shop ,3ocal shop etc%

2dvertising and marketing

We print out pamphlets and advertisement in 9e6s (apers% We put -ne pamphlet in each 9e6s (aper% 2dvertisement on $adio%

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PLANT LAYOUT

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Facili ies Pr!"i#e# ! Cus !$er i% Pa&$e' Facili & Payment by Credit Card Cash Payment ii. Customer can get CD/DVD and B !" on rent and can purchase as per requirement. #e also pro$ide yearly membership to our customer %n our shop& there is also a sitting arrangement where the customer read the boo's.

iii.

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CAPITAL STRUCTURE
So(!ces o* *("#s
$., 1 +AR%I'0 AR O7ners&i$ ca$ita) %.%A A-.0$% 2400000 2488888

T(ree par 'ers are i' (e )usi'ess* eac( par 'er carries Rs%+ lac,s as capi al%

Ma"'o%e! + sala!, stateme"t

No. 1 2 3 )e!so""el /ales men /ales girl "ashier Total Sala!, <000 <000 +000 No. 'e!so""el !e-($!e# < < 1 . Total Sala!, 1=000 1=000 +000 3 000

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FIRST YEAR ESTIMATE - FUTURE PRO.ECTIONS

&stimated +ro<ections +AR%I'0 AR 0a)es Ot&er income Tota) income Tota) cost EB#T de$reciation $et profit before ta? Pro/ision for ta@ation +rofit after ta? S!$e speci/ica i!'s 2818=11 21 3-2* 132000 22* -2* 2130000 155;2> *4"00 %132* 2353> 4%%-0 2811=12 23"-320 14 200 2 14 20 223" 00 27>828 *4"00 1-3420 63>2> 12- -2 2812=13 2"0"2 2 1 -%20 2%" -%2 234*32 417647 *4"00 33304% 18;;85 223142

#e$reciation is c&arged 20B on t&e assets. Pro/ision for ta@ation is made 33B on t&e net $rofit.

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ESTIMATED BALANCESHEET FOR THE FIRST YEAR IA#I I%I&S O7ners&i$ ca$ita) 246006000 C$rofit 4%6%-0 2464%6%-0 5ta@ 236 3* A-.0$% ASS&%S .i@ed Asset .urniture 300000 5de$. "0000 E!ui$ment -4000 2462462 2 5de$. 1**00 ;e&ic)e 5#e$. 0toc4 Cas&8 Ban4 30000 "000 A-.0$%

26406000 % 6200

246000 16 06000 1-63 60 2

%.%A IA#I I%I&S

2462462 2 %.%A ASS&%S

2462462 2

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ESTIMATED BALANCESHEET FOR THE SECOND YEAR IA#I I%I&S A-.0$% ASS&%S A-.0$% O7ners&i$ .i@ed Asset ca$ita) 246006000 .urniture C$rofit162-6 -2 26406000 2 62-6 -2 5de$. "0000 16*06000 5ta@ "3*2* 246" 6%"4 E!ui$ment % 6200 5de$. 1**00 "6400 ;e&ic)e 5#e$. 0toc4 Cas&8 Ban4 246000 "000 1*000 16" 6 0

2064 6*14

%.%A IA#I I%I&S

246" 6%"4 %.%A ASS&%S

246" 6%"4

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ESTIMATED BALANCESHEET FOR THE THIRD YEAR IA#I I%I&S O7ners&i$ ca$ita) 246006000 C$rofit223142 2"23142 5TAD 10--0 A-.0$% ASS&%S .i@ed Asset .urniture 16*06000 5de$. "0000 2 1323% E!ui$ment 5de$. ;e&ic)e 5#e$. 0toc4 Cas&8 Ban4 %.%A IA#I I%I&S 2 1323% %.%A ASS&%S 1*000 "000 12000 16%06 00 21%313% 2 1323% "6400 1**00 3%6"00 A-.0$%

16206000

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NECESSARY LICENSES TO BE TA0EN FOR STARTIN1 $., 1 I'&$S& 'etai) Business %. #& ISS0&D #) 0urat (unici$a) Cor$oration?Gumasta #&aro=

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Co"cl(s$o"

We comes to kno6 that /urat city people are very price sensitive 6hile buying any product first and foremost thing they check is the price of the product and secondly >uality of the product%