INTRODUCTION

Vijay Pvt Ltd gives you the best scope of kid shirts, men's shirts, men's neckline shirts, gentlemen half sleeve shirts and
children shirts with the viable and ideal conveyance.

Vijay Pvt Ltd in Bhadur Ke Road, Ludhiana is a top part of the class of Casual T-Shirt Manufacturers in Ludhiana. This
notable foundation goes about as a one-stop objective overhauling clients both nearby and from different pieces of
Ludhiana. Throughout its excursion, this business has set up firm traction in its industry. The conviction that consumer
loyalty is pretty much as significant as their items and administrations have helped this foundation earn an immense base
of clients, which keeps on developing continuously. These business workers are committed to their particular jobs and
put in a great deal of work to accomplish the normal vision and bigger objectives of the organization. Before long, this
business plans to grow its line of items and administrations and oblige a bigger customer base. In Ludhiana, this
foundation possesses a noticeable area in Bhadur Ke Road. It is an easy undertaking in driving to this foundation as there
are different methods of transport promptly accessible. It is situated in New Veer Nagar, Opposite Ludhiana Cold
Storage, which makes it simple for first-time guests in finding this foundation. It is known to offer top support in the
accompanying classifications: T-Shirt Manufacturers, Readymade Garment Manufacturers, Children Readymade
Garment Manufacturers, Shoe Manufacturers, Casual T-Shirt Manufacturers, Printed T-Shirt Manufacturers, Men Shoe
Manufacturers, Men Trouser Manufacturers.

It is named a Non-govt organization and is enlisted at Registrar of Companies, Chandigarh. It is engaged with the
Manufacture of wearing clothing, aside from hiding attire this class incorporates the production of wearing attire made of
material not made in a similar unit. Both ordinary and agreement exercises are incorporated.
Eligibility criteria and documents required for getting funds for the chosen business

 BANK LOAN

Eligibility criteria:

i. Credit score: personal and business credit score

ii. Annual revenue: Monthly financial will be looked at (metrics like current ratio)
iii. Updated business plan: how the loan will be used and how they plan on paying it back
iv. Additional collateral

For a business loan, the applicant has to provide the following documents:

a) Identity Proof: PAN Card / Aadhaar Card / Voters ID Card / Driving License / Passport.
b) Address Proof: Trade license / Electricity Bill / Sales Tax certificate / Ration Card

/Telephone Bill / Passport / Lease agreement

c) Income Proof: Bank Statement of Last 2 Years.

d) Financial Documents: Last 2 Years ITR along with computation of Balance Sheet, income & Profit &
Loss a/c for the last 2 yrs.
e) Proof of Business Continuation

f) Business Ownership Proof: Other Mandatory Documents like the Sole Proprietorship Declaration,
Articles of Association & Certified true copy of Memorandum
g) Audited financials for the last 3 years

 RETAINED EARNINGS
They are those earnings which are kept aside for specific purposes or an uncertain event in the future. They are
not available for distribution and the amount is kept aside

only after paying other expenses like dividend, etc. The main eligibility criteria to keep retained earnings
is to have a good profit amount.

No such documents as the law doesn’t make it compulsory to keep retained earnings or make an account for
it. The management takes care of it and keeps it safe.
 VENTURE CAPITALISTS
Eligibility criteria:

1. schedule caste holds atleast 51% stake in the company for 6-12 months along with the
management
2. till the SC promotors of the investee company do not exit under the scheme, they are not to dilute
their stake below 51% in the company
3. At least 51% of the company should be preferably be women or disabled SC, this includes
atleast 30% of the categories mentioned

Documents:

1. Stock purchase agreement

2. Voting agreement

3. Right of first refusal / co-sale agreement

4. Investor’s rights agreement

5. Subscription agreement

6. Certificate of incorporation

7. Term sheet

8. Articles of association
 Angle Funding

Angel funding refers to an investment model wherein "business angels" – essentially, high net worth individuals –
provide financial backing and their networks and knowledge for small businesses in exchange for equity in the company.
Angel financing can be a one-time investment, or it can refer to ongoing support.

Eligibility Criteria/ Documentations

Your business plan and team are what eventually convince an investor. Angel investors look for the following
documents:
 Your cover letter,
 Your elevator page i.e a brief description about the idea and the product
 Your business plan and financials and,
 Your pitch deck presentation i.e a presentation deck that is used to pitch your idea or company to any
number of audiences
The legal documents required are similar to that of seed funding. Angle investors here are provided with
shares based on the post money valuation of company.
  Credit guarantee fund trust for Micro and Small Enterprises (CGTMSE)

(GOVERNMENT ASSISTANCE)

CGTMSE is an initiative of the Government of India in collaboration with the Ministry of Micro, Small and Medium
Enterprises (MSME) and the Small Industries Development Bank of India (SIDBI) launched on 30 th August 2000.
The CGTMSE full form is Credit Guarantee Fund Trust for Micro and Small Enterprises, and as is evident from the
name, it is a Trust which provides the financial institutions with credit guarantee to provide loans to SMEs and MSMEs.

The basic aim of CGTMSE is to encourage first-time entrepreneurs to establish SME and MSME, considered to be the
bulwark of the Indian economy by availing of collateral free loans from the eligible financial institutions. The guarantee
covers default by the borrower to repay the advance. Thus, the CGTMSE scheme primarily envisages the provision of
loans to first generation entrepreneurs so that they can flourish in the competitive environment without the burden of
security or third-party guarantees. In turn the financial institutions are provided cover for the absence of security to fund
SMEs and MSMEs promoted by small Indian businessmen up to a certain limits.

CGTMSE Scheme Eligibility Criteria:

As per the CGTMSE guidelines, credit guarantee is deemed to back a borrower with a  collateral and third party
guarantee free advance. Under the scheme, the member lending institution which can be an NBFC also, who lend to the
SME and MSME sector are eligible for a maximum credit cap of Rs. 2 crores, which in any case is meant to cover a large
proportion of the loan amount. The eligibility norms prescribed both for the credit providers and borrowers are.

 Lending Institutions: It covers the whole gamut of scheduled commercial banks, specified Regional Rural
Banks, SIDBI, NSIC, NEDFi, SFB and NBFCs who lend to the specific sector and have entered into an
agreement with CGTMSE or the Trust for the purpose. These are designated as Member Lending Institutions
(MLIs) and number 131 at present.

 Lending Borrowers: The CGTMSE coverage is conditional to all new and existing SMEs:

o The maximum credit facility is Rs.50 lakhs for a guarantee cover not exceeding Rs. 62.50 lakhs / Rs.65
lakhs.

o For credit facility above Rs.50 lakhs, the guarantee cap is limited to Rs. 1 crore.

o Term credit for the entire outstanding amount on the date the loan is declared to be an NPA or on the
date of filing a suit.

 Exclusions: Some entities are excluded from the CGTMSE coverage. They are:

o Retail Trade.

o Educational Institutions.

o Agriculture.

o Self Help Groups (SHG).

o Training Institutes.
Documents Required for CGTMSE Loan Process:

Availing of a credit facility or loan from the lender entails a series of activity on the part of the borrower for a seamless
experience. The major steps for CGTMSE loan scheme can be tabulated as under:

 Establishment of the Business Entity: The unit has to be incorporated a distinct business enterprise in the
appropriate category like proprietorship, partnership or a limited company and necessary approvals, certificates
and tax registrations are need to obtained to execute the project.

 Business Project Report: The components of the project must be well defined based on a thorough market
study and analysis. The factors to be mandatorily covered are:

o Business Model.

o Promoter Profile.

o Cost and other Financials.

 Submission: The project report and the CGTMSE loan application form is to be submitted to the lender for
further processing. If the homework is proper, the first step towards a successful completion of the process is
taken.

 CGTMSE Scheme Banks Sanction: Once the CGTMSE application forms are successfully submitted, the
processing begins. After proper evaluation and gauging the viability of the project sanction is accorded in
alignment with the lender’s policy.

 Obtaining CGTMSE Loan Cover: After according sanction to the loan, it is responsibility off the lender to file
for guarantee cover at the CGTMSE.

 Business Incubators

A business incubator is a corporation that helps early-stage enterprises and start-ups grow by providing
them with various services and resources. Incubators provide infrastructure for new firms that are just getting
started. Perhaps a manufacturing business need a commercial premises, or a machines requires the most up-to-
date technology. Incubators often provide such turnkey facilities that represent a savings in overhead for start-
ups. Frequently, business incubators are partially funded by state and federal grant money.
 Interest rates and repayment options for the available sources.

Repayment refers to paying back the amount borrowed from the lender. It involves the principal amount
and interest rate. The duration and modes of payment differ based on the type of sources of finance.

1) Retained Earnings: Retained earnings refers to the amount that that company keeps aside from its profits.
They do not have to pay an interest rate for this amount
2) Returns are generated by Angle investors and Venture Capitalists, but they offer to buy out much
higher equity of the company, from around 10-30%. They expect around 10X growth in company
valuation. Since they invest huge sums of money, when the company goes public they have the option
to exit by selling their shares at a much higher price and earn huge capital gains.

3) CGTMSE -All lenders impose a certain cost to the borrower. The major component of the cost to the
borrower is the interest rate for the loan. Majority of the lenders recover CGTMSE loan interest
rate that does not exceed 14% to 18% including the guarantee cover.

4) Bank Loan: DCB Bank offers Business Loan starting at interest rate of 9.25%. The rates vary by loan amount,
occupation and type of loan availed. Maximum Loan Offered is 40Lakhs

Interest Rate 9.25%

Processing Fee Upto 2% of the loan amount
Tenure From 12 months to 60 months
INFERENCES

 Business Incubators

Why:

Your incubator ought to give a free or minimal expense work area that permits lessening overhead while you
develop. The organized climate and educational plan of a hatchery can help another business stay on track and
fill the correct way.

How much and Use:

A rough estimate would be 2 lakhs plus his networks. These will be used to purchase furniture of the
organisation which includes tables, chairs. Stools, Sofa set etc. and we also know that computer is necessary in
every organization so this amount will be used to buy 2 computers for the organisation.

 Angel Investors

Why:

financing from angel investment is considerably less dangerous than obligation financing. In contrast to credit,
contributed capital doesn't need to be repaid in case of business disappointment. What's more, most private
supporters get business and take a drawn-out see. Likewise, a private backer is frequently searching for an
individual chance just as speculation.

How much and Use:

We have planned to collect almost Rs15-20 Lakhs which will be used to purchase machinery and raw
materials. The machinery includes sewing machines, spinning machines, textile and dyeing machines etc and
raw materials includes cloth, cotton , silk etc for production of garments.

 Loan:

Why:

At the point when you fund-raise through a loan, you are not leaving behind any portions of your organization,
which implies your proprietorship stays unblemished. This settles on advances a well-known decision among
borrowers. With credits, you additionally have the adaptability to utilize the cash for practically any reason.

How Much and Use:

The maximum limit we can get from a bank in a form of loan is 40 lakhs so we will be going to get a loan of
Rs 30 Lakhs from the bank. Although these 30lakhs will not be enough to buy an Industrial building but it will
cover the cost by more than 50% of the cost.

 Venture Capitalist

Why:

When a funding firm puts resources into your business, it will do such for value in the organization. This
implies that dissimilar to independent venture and individual advances, there are no instalments for your
business to make, and no personal property has to be pledged.

How Much and Use:

A rough estimate would be 5 lakhs collection from venture capitalists. This amount will be used to meet the
miscellaneous expenses of the firm. Miscellaneous expense is a term used to define and cover costs that
typically do not fit within specific tax categories or account ledgers.

 CGTMSE

Why:

can secure cover for the credit office regardless of whether you have least or no involvement with setting up a
business.

How Much:

A rough estimate would be 25 lakhs. We will be taking help from the government and these funds will help in
fulfilling the need of purchasing the building.

 Retained Earnings

Why:

The utilization of held profit doesn't include any procurement cost. The organization does not commit to
offering anything in appreciation of held income. Retained profit reinforce the monetary situation of a business
and consequently give monetary strength to the business.

How Much and Use:

A rough estimate would be 4-5 lakhs from retained earnings. This amount will be used to pay the wages and
salaries of the firm.
CONCLUSION:

All our capital and sources we picked are value-based. However, there are alternatives of straightforward
obligation and credit. The motivation to remove that is insight and systems administration. In an industry like
manufacturing, making solid connections and organizations with industry accomplices.

Simultaneously, credit makes a risk that it must be repaid on schedule. Though value interest in fire up brings
no commitment of recompense, rather a push to continue to search for assets to build the organization's
valuation.

In the following part, we'll contrast our capital design and another organization, and attempt to follow every
one of the likenesses and contrasts dependent on capital and its sources.