ENTREPRENEURSHIP DEVELOPMENT REPORT

ON
Chitra-Mandira Pvt. Ltd.
Submitted in Partial fulfillment of the requirement for the award of the
Degree of Bachelor of Business Administration Honours.
Of Christ University
By
Pranjal Agrawal
(Reg No: 1411936)
Siddharth Narang
(Reg No: 1411949)
Under the guidance of
Dr. Leena James

Department of Management Studies

CHRIST UNIVERSITY
BANGALORE
2016

DECLARATION

We, Pranjal Agrawal (Reg No: 1411936)

and Siddharth Narang (Reg No:

1411949),hereby declare that the entrepreneurship development report, titled

Chitra-Mandira Pvt. Ltd. submitted to Christ University, in partial fulfillment of
the requirements for the award of the Degree of Bachelor of Business
Administration is a record of original and independent research work done by us
during 2014 2015 under the supervision and guidance of Dr. Leena James,
Department of Management Studies and it has not formed the basis for the award
of any Degree/ Diploma/ Associate ship/ Fellowship or other similar title of
recognition to any candidate of any University.

Date: Feburary19,2016

Pranjal Agrawal
(1411936)
Siddharth Narang
(1411949)

CERTIFICATE

This is to certify that the entrepreneurship development report, titled ChitraMandira Pvt. Ltd submitted to Christ University, in partial fulfillment of the
requirements for the award of the Degree of Bachelor of Business Administration,
is a record of original research work done by Pranjal Agrawal and Siddharth
Narang , during the period

20152016 of their study in the Department of

Management Studies at Christ University, Bangalore, under my supervision and

guidance and the report has not formed the basis for the award of any Degree/
Diploma/ Associate ship/ Fellowship or other similar title of recognition to any
candidate of any University.

Date: Feburary19,2016

Dr. Leena James

Department of management studies

ACKNOWLEDGEMENT

We would like to express our profound gratitude to all those who have been
instrumental in the preparation of this Entrepreneurship Development Report. We
wish to place on records, our deep gratitude to our project guide, Dr. Leena James,
for guiding us through this project with valuable and timely advice.
We would like to thank Dr. (Fr). Thomas. C. Mathew, Vice Chancellor and
Dr. Jain Mathew, HOD, for their encouragement.
Last but not least, we would like to thank our parents and friends for their constant
help and support.

Pranjal Agrawal
(1411936)
Siddharth Narang
(1411949)

TABLE OF CONTENTS
Chapter
1

Chapter Name
Introduction
Introduction to industry
Company summary
Product summary
Entrepreneur profile
Company profile
Approximate profile

Executive summary

Market survey
Market summary and fessiblity
SWOT analysis
Competetive edge
Problems and challenges
Critical risk and worst case scenario

Marketing
Target market
7 Ps
Advertisement copy
Michael Porters model
USP

Page no.

 Positioning/location
Strategies
5

Human resource plan

Organization chart
Number of employees and partners
Training procedure
Management structure
Qualification of posts
Salary and break-up
Fringe benefits
Working hours and conditions
Leave policy and maternity benefits
Recruitment sources
Recruitment policy

Production and operation plan

Floor plan
Machinery used / equipments
Facilities
Location analysis

Financial plan

Executive plan

Conclusion
Bibliography and annexure

CHAPTER 1
INTRODUCTION

1.1 Introduction to the Industry

The precise definition of small-scale, medium-scale and large-scale industry varies

depending on a number of factors.
There are two key ways in which the size of a business can be defined:
1. The number of employees working in the industry.
2. The amount of revenue that the industry gets from its investments.

The definition of an industry being a large, medium or small scale industry is also
dependent on the specific industry and its products. Some industries are a lot more labor
intensive, and the definition of "small" may include a large number of employees. Other
industries, especially those that rely on technology or specific skills of an individual, may
reach only a low employee number before being included into the next category of
industry size.
Our project fits into a medium scale industry.
Medium-scale businesses are often a result of slow and steady growths of businesses.
These businesses come into existence because of the small scale industries flourishing
and dealing with a greater market. As a company starts earning more revenue, it sets
aside the capital needed for buildings, equipment and more employees. This eventually
bridges the gap between small business and large corporations.

Micro, Small and Medium Enterprises (MSME) contribute nearly 8 percent of the
countrys GDP, 45 percent of the manufacturing output and 40 percent of the exports.
They provide the largest share of employment after agriculture. They are the nurseries for
entrepreneurship and innovation. They are widely dispersed across the country and
produce a diverse range of products and services to meet the needs of the local markets,
the global market and the national and international value chains. Ministry of MSME
encourages and honors innovation and enterprise which works in close coordination with
the State Governments, Industry Associations, Banks and other stakeholders through their
numerous field offices and technical institutions to help the engines of growth
throughout the country.

1.1.1. About Medium Scale Industries

A medium enterprise is an enterprise where the investment in plant and machinery

is more than Rs.5 crore but does not exceed Rs.10 crore.

Investment in plant and machinery excluding land and building for enterprises engaged in
manufacturing or production, processing or preservation of goods has to be more than
Rs.500.00 lakhs but does not exceed Rs.1000.00 lakhs.

Investment in equipment excluding land and building for enterprises engaged in

providing or rendering of services (loans up to Rs 1 crore) has to be more than Rs.200.00
lakhs but does not exceed Rs.500.00 lakhs.

1.1.2 Pros and cons of Medium scale industry

Advantage of a Medium Scale Industry:
1. Medium-sized companies have the advantage of mobility over larger companies. For
example, if the marketplace abruptly changes its demand for a particular product, a
medium-sized company may quickly lower production output or modify products to
fit the needs of customers. Larger companies must deal with bureaucracy and
shareholders before making changes.
2. The other advantage of the medium scale businesses is its employment potential at
low capital cost. The labour intensity of this sector is much higher than that of the
large enterprises.
Issues with Medium Scale Industries:
1. Poor infrastructural facilities tend to be a big factor affecting medium scale industry
today. When necessary facilities are not put in place, and even when it is in place,
lack of maintenance of such facilities leads to a trouble for this sector. This increases
the cost of operation of the industry. For example, no access to water, poor road and
no constant supply of electricity are some of the problems.
2. No business can function perfectly without adequate capital. Lack of access to credit
facilities from banks as a result of high interest rate, no collateral to stand in place for
loan creates a major problem for the medium scale businesses. Also, no grant is
provided by government to assist the industry .This has affected their operation of
performance.
3. Due to economic of scale, giant firms have competitive advantage over small and
medium scale business.

4. Small and medium scale industry makes use of outdated technology. Poor financial
status of this industry deprived them to upgrade to modern technology. Other
problems faced are wrong choice of business, lack of experience staff and lack of
managerial know how. They affect the effectiveness and efficiency in running the
business.

1.2 Company Summary

Chitra-Mandira Pvt. Ltd. Company would be a private limited. The head office for our
company would be situated in Udaipur, KARNATAKA.
The theatre market in India is well exploited by big players like BigCinemas, PVR,
Adlabs etc. However, these players play only in the urban areas. None of these
companies are actually targeting the rural population of the nation. Our company only
aims at providing the rural population with the entertainment which our well-established
film industry creates for not only the urban population, but the entire nation.
With more than 70% of Indian population resides in rural areas and very few of these
rural areas actually have proper theatres to screen movies.
Besides entertainment, movies today, are one of the most sought after ways of spreading
awareness due to their visual impact. The population in rural areas (mostly uneducated) is
given messages through movies. We believe that is of prime importance to deliver the
messages effectively to the target audience.

Our mission is to give our customers a big city entertainment experience in their
localities. Our customers will relax in comfort and watch high-quality presentations of
popular second-run movies, all within a close reach from their villages.
We aim to please the local community (who can wait a few weeks to see their favorite
movies and don't want to pay big city, new release prices). We will also provide our
customers with satisfying and reasonably priced snack foods and beverages.

1.3 Product Summary

Chitra-Mandira Pvt. Ltd. provides the rural population of India with theatres
screening second-run movies. Each theatre would be having a single screen with a
capacity of 200 persons. We would be screening a movie 3 times a day 11am,
5pm and 9pm, considering the fact that the rural population is not bound by early
night sleeps, we believe that a night show would be not only profitable for us but
also convenient for the customers.

The theatres would have proper ventilation and well-placed fans all over.

There would be 2 kinds of seats- balcony and normal. A balcony ticket would
cost Rs.80 and a general ticket would cost Rs.50.

Properly-planned fire exits would exist in each theatre.

There would be a projector along with a 9*16 meters screen in each theatre.

For the snacks and beverages, we would employ the village staff and prepare
snacks. (preferably we would hire deceased , retired or job- deprived people , this

way we would contribute a little towards CSR). This way, costs would be low,
employment would be created and recruitment would be easy. The villagers
would produce, sell and keep the surplus with them. Tying up with other
companies would prove to be both cumbersome and expensive. Besides, this
would not only benefit us but also benefit the society.

Also, the servers of foods and beverages, the cleaners, the projector operators, the
ticket seller and other required staff would be from the village itself. Providing
them training would be our responsibility.

The theatre's management will be aided in movie selection by being able to see how
movies have fared in their initial run, especially those that have shown success in the
theatre's two target markets: families and children. Only these movies shall be shown as
2nd run releases.
Our name Chitra-Mandira would not have a problem in getting established/recognized
as this is the term used by the rural population to refer to the minimal theatres they have
when they go to watch a movie.

1.4 Entrepreneur Profile

Siddharth Narang is a young energetic and enthusiastic mind who is pursuing his BBA
honors from Christ university, Bangalore. Siddharth always has a clear idea about what
he is doing and what is the course of action he has chosen. By the end of april 2016 he
will be completing his undergraduate with competitive skills through his ability and
knowledge. He is a smart learner and an opportunist and has always showed interest in

socializing and lifting up the society through charity and social responsibility project
during his degree program with CSA of Christ University. He has undergone and
participated in many national level conferences in his academic life span. He has always
shown interest in theatre and reaching out people to show them the glimpse of unrealistic
and fictional life. He has also participated in many street plays in his school career and
has also performed many nukad natak.

Pranjal agrawal aging 19 years residing in Bangalore is a creative and innovative mind
who is pursuing his BBA Honors from Indias no.1 institute Christ University,
Bangalore. Pranjal is a multi talented boy who has a keen interest in learning new skills
and techniques; he is very energetic and is focused about his career. After completing his
graduation he is thinking of proceeding further in studies by doing MBA from the best
institutes. He is a kinesthetic learner and an opportunity grabber who always believes in
giving his best in every task. He is a quick and smart learner and have always showed
interest in socializing and lifting up the society and the poors. He has undergone many
projects like IRP and SRP and has participated in many national conferences during his
academic life. He is an active sports player who has played football for 6 years and has
participated at district level, he is a good dancer and believes in friends a lot he is very
clear about his decision and aims at achieving the highest goals, a good team player with
good communicational skills.

1.4 Approximate Investment

The first year requires an approximate initial investment of Rs. 1,98,50,000 which includes all
the fixed cost for the first year and variable cost for the second year.. Opting Angel Investors
would help us to reduce the bank efforts and would save a large amount of interest money.

Company Profile

Company Name
Chitra-Mandira Pvt. Ltd.

Sector

Entertainment

Type

Movie cinema

Geographic Area Served

Villages in KARNATAKA

Owners

Pranjal Agrawal
Siddharth Narang

Profit Sharing Ratio

1:1

Starting Capital

1,98,50,000

Total Number of

Employees

36

Probable Competitors

No competition around

CHAPTER2
EXECUTIVE SUMMARY

2.1 Executive Summary

Indias movie market being one of the biggest in the world is still not tapped in the rural areas.
We find at least one multiplex in each city. However, its not the same with the rural areas.
Besides, its not even that the rural population does not enjoy watching these movies. A lot of
film producers and directors today are targeting the rural population as the subject of their films.
The rural population, thus, not only relates but also enjoys these films. Taking advantage of this
fact and being the only company to establish its theatres only in the rural areas, Chitra-Mandira
Pvt. Ltd. considers it a way of distinguishing itself from the other recognized theatre owner
companies.
2013 sees the Indian Film Industry completing 100 years. What use of these 100 years if the
majority of the population here doesnt have access to it? Chitra-Mandira Pvt. Ltd. will provide
the residents of these rural areas with long-awaited hometown movie theatres. The films shown
will be second run releases of the most popular movies in two target markets: families and
children. While catering to the rural population, keeping the budget in mind, showing 2nd hand
releases would be a feasible option and therefore, has been adopted.

CHAPTER 3
MARKET SURVEY

3.1 MARKET ANALYSIS SUMMARY AND FEASIBIITY

With India being the country with the maximum number of movie releases in the World
(more than 1000 per year), it is but obvious the market for these movies has to be ever
increasing. Presently, only 1.4% of the total Indian population goes to watch a movie
daily. Therefore, there is a lot of scope in increasing this number.The Indian Film
industry is producing movies for all sectors and stratas on society. So much so,
producers and directors today enjoy making movies based on the lower strata of our
society. But what would be the use of such movies if they cant reach the target
audience? Villagers have to travel long distances to enjoy this mode of entertainment. We
would place our theatres within close reach of the villagers. This provides easy access for
every resident of the villages and a viable entertainment option any night of the week.

3.2 SWOT ANALYSIS

Strengths:

1. Media And Entertainment is one of the most booming sectors in India due to its
vast customer reach. The various segments of the Media And Entertainment industry
like television and film industry have a large customer base.
2. The growing middle class with higher disposable income has become the strength
of the Media And Entertainment industry.
3. Change in the lifestyle and spending patterns of the Indian masses on
entertainment.
4. Technological innovations like online distribution channels, web-stores, multiand mega-plexes are complementing the ongoing revolution and the growth of the
sector.
5. Indian film industry is the largest in the world and the largest in terms of the films
produced and t
Weaknesses:

1. The Media And Entertainment sector in India is highly fragmented.

2. Lack of cohesive production & distribution infrastructure, especially in the case of
music industry.
3. The lack of efforts for media penetration in lower socio-economic classes, where the

media penetration is low.

Opportunities:

1. The concept of crossover movies, such as Bend It Like Beckham has helped open up
new doors to the crossover audience and offers immense potential for development.
2. The increasing interest of the global investors in the sector.
3. The media penetration is poor among the poorer sections of the society, offering
opportunities for expansion in the area.
4. The nascent stage of the new distribution channels offers an opportunity for
development.
5. Rapid de-regulation in the Industry
6. Rise in the viewership and the advertising expenditure.
7. Technological innovations like animations, multiplexes, etc and new distribution
channels like mobiles and Internet have opened up the doors of new opportunities in the
sector.

Threats:
1. Piracy, violation of intellectual property rights pose a major treat to the Media And
Entertainment companies.
2. Lack of quality content has emerged as a major concern because of the 'Quick- buck'
route being followed in the industry.

3. With technological innovations taking place so rapidly, the media sector is facing
considerable uncertainty about success in the marketplace.

3.3 MARKET TRENDS

Chitra-Mandira Pvt. Ltd. believes in providing entertainment with comfort, but
simplicity. Analyzing our target market - the rural population, we have kept in mind what
the rural populations priorities are. More than an Air Conditioner (which, in the first
place they are not habituated to), the villagers would want comfortable seats and good
food.
Therefore, we serve what is needed. There will be comfortable seats provided to each
viewer. Only well scrutinized second run releases would be screened. Viewers are
guaranteed a worthwhile experience.
No entertainment is complete without food. The snacks counters which will be managed
by the villagers would serve reasonably priced regional snacks to the viewers. For
example, the theatres in KARNATAKA would serve delicacies like vadapav and
samosa.

3.4 MARKET SHARE

The film and television industry in India is one of the world's largest markets in terms of
number of consumers and offers significant growth potential. Over the past few years the

industry has experienced rapid double-digit growth and it is expected that this trend will
continue in future, resulting in increasing contribution to the Indian economy.

The total direct economic contribution of the Indian film industry is estimated at Rs.
2,931 crore, and employment generated was 1.83 million workers in 2012.
The Indian film industry contributes greatly to the total revenue of India.
Within the villages, we aim to get at least 70% of the market share (market being the
locality), if not 100 % in the movie sector considering the distance at which present
movie theatres are situated in the first year. The second year would see a rise to 85% of
the market share.

The third year would see a further rise to 100% of the market share.

Market Share
120%
100%
80%
60%
Market Share
40%
20%
0%
Year 1

Year 2

Year 3

CHAPTER 4
MARKETING

STRATERGY AND IMPLEMENTATION SUMMARY

The strategy is simple: provide fair-priced, quality entertainment close to home for the two
markets that comprise the bulk of the villages population.

4.1 COMPETITIVE EDGE

Chitra-Mandira Pvt. Ltd. has a distinct competitive edge in that it is the only company catering to
the rural population in terms of movie entertainment. The theatres would be located very close
to the residences of the villagers. They would not have to travel for hours to enjoy the
entertainment. The entertainment would be at their doorstep calling out to them. Considering the
distance which they have to travel to watch a movie, villagers shy away from watching many
movies. This way, there is harm for both the movie makers and the villagers. The movie
makers do not get to put across their movie to all of those whom they had intended it to be for.
Secondly, the villagers miss out on entertainment, awareness and knowledge.
Another competitive edge which we enjoy is the benefit of screening second run releases. Our
highly qualified management team carefully scrutinizes the movies which release in a week.
Throughout the week, the reviews are analyzed and appropriate movies are screened for each
theatre. We screen one movie a week. The viewers get to watch filtered movies and are assured
of a valuable and cherished experience.

Our snacks would also attract the crowd. Villagers dont have many outlets to visit and explore
when they want to eat out. Thus, the regional snacks could serve as magnets.
Mr. Pranjal agrawal has had an experience in the same industry for the past 7 years. In this time,
she has gained experience which would clearly serve as a boon for the company.

4.2 Michael Porters model

Threat of New Entries: Currently we will have monopoly in the market but seeing the scope in
the market we are sure to have competition, the company will be ready to face the challenge

with costing edge and the company will also be capable to cope with the competition, with our
innovative marketing strategies. We are expecting this competition to come after 3 years of
existence.

Buyer Power: our bargaining power would be that we will be the only company or we will be
having monopoly and the Gopalan cinemas also has a stake in the company so that makes our
company more reliable. The funding that we have recived from different channels also shows
that our offering is more likely to be successful.

of Substitution: There are rural Talkies that will be our biggest substitutes and may turn out to
be our competition for that we will be having a better infrastructure and innovative marketing
strategies such as special discounts for children , festival discounts.

Supplier power: The supplier has a good bargaining power as he will supplying has the rights at
a subsidized rate for the 2nd run movies that we will be showing. The supplier for the rights
would be the Gopalan Cinemas who will be having a minor stake in the company.

Competitive Rivalry: we feel that major rivals would be the rural talkies and the new
competition that we are expecting in our 4th year. Another indirect rivalry would be the pirated
Movies that are available and the pirated movies available on the net.

Unique selling proportion

The USP of the company mainly would be the subsidized rate at which the rural people can
have a proper experience of an urban area cinema hall. The companys innovative
marketing strategies such as children discount and festive discounts are sure to click. The
companies another USP is that the company would be saving a lot on the then tax as the
company will be charged 0% tax and the same money which will be saved would be used for
further growth and to face the challenges that we are expecting in the 4 th year.

4.3 7ps OF MARKETING MIX

PRODUCT:
For a movie to be selected by its target audiences, it needs to be clearly identified by the
audiences in its Marketing. Marketing should include the knowledge of genre, core cast, theme
of film, special effects, etc. If we take Movie as a Product we can say that it is an intellectual
product that can be delivered by different ways: like, by theaters, video tapes, DVDs, CDs of
sound tracks, television and also by Internet, etc.
PRICE:
Pricing in movie industry looks to be very standardized as in multiplexes, a movie ticket cost
same for all the movies. But if we considered the broader concept of movie product then the
price is very fluctuating. There are certain contracts which are made between producers and
distributors and according to the distribution contract the returns are given to producers. It can
be negotiated on the bases of:

Market segments

Percentages

Promotional budgets

Theatrical schedules

PLACE: Now innovation in technology has discovered so many ways as people find venues for
entertainment not only by Theaters and broadcast, but on in homes, by internet, on phones, etc.
options for delivering the movie product are expanding.

PROMOTION: Promotion is a very important marketing tool for every movie form the initial
stage but till end of lifecycle of that movie. Promotion of the film is done by many of the
techniques like through merchandising; media tie up, in film placements, promoting new games
and toys with in the market. Promotion helps in attracting audiences towards theatre.
Puneeth Rajkumar (face of cinemas)
Most talented all rounder in Kannada film industry. He is
National award winner at young age. Power star is the best
actor ever. No one can beat him! He is the king of Kannada
Best actor and singer

PEOPLE: People Employees are internal Customers. 2 employees at the corporate level. 15 16 employees at each cinema headed by a Cinema General Manager. For the customers
convenience, The nature of all employees is very friendly, informed, helpful, reliable, soothing,
cheerful and youth- like. Therefore, the audience can easily relate and communicate with them.

PROCESS: It was the first cinema company to introduce cinema in the 3 tier cities through use
of innovation skills of Pranjal and Sidddharth. First cinema in the rural sector to accept per ticket
booking. First to offer Children discount in the cinema sector . Chitra mandira will be the1st to
give proper sound system in the rural sector.

PHYSICAL EVIDENCE:

4.4 MARKETING STRATERGY

The buzz about the theatres would naturally start in the villages as soon as the employment
process begins. Construction of the theatre would require laborers to come forward from the
village itself. Training for the snack stalls would also begin soon after. Villages not being very
big, the word would spread around quickly. Word of mouth is considered the fastest way of
promoting anything. With posters of different movies all over the prime locations of the village,
an excitement would be infused within the villagers even before the theatre is ready. With this
kind of excitement, the villagers would actually be excited about the coming up theatre and wait
for it to be put into action. Once in action, there would be attractive posters for the movie which
would be screened the next week every week all over the villages.

4.5 SALES STRATEGY

Considering different earning and spending patterns even in the villages, we will have two
categories of seats- Balcony and Normal. The balcony seats would be at a raised platform and
would be farther away from the screen. Normal seats would be on ground level, closer to the
screen. There is flexibility, thus, for the villagers to spend differently and enjoy differently.
Since, all the movies are either going to be for children or for the family, which constitutes all
of the villages, sales would be constant throughout the year.
The main strategy is to screen movies which are well filtered. This way, there would be only
good movies screened, and sales would remain constant.
In case a movie is doing extremely well, it would be screened for 2 weeks consecutively

CHAPTER 5
HUMAN RESOURCE
PLAN

EMPLOYEERS NAME:
The employees of the Chitra Mandira will be called Manorites which basically means people
with manners and ethics. We feel the name is apt as we are in the Entertainment Industry and
hospitality is a major part of it.
As in the initial stage we have a link up with Gopalan Inovation Cinemas so we will be having
there experts coming In and inculcating the meaning of the above word that is MANORITE.

5.1 Organization Chart

Entrepreneurs

Manager
(Adminstrator
head)

Projector man

Stall man

Ticket and sales

collector

5.2 /Huuku (Human Resource Planning)

ITEM

DESCRIPTION

COST( in Rs. )

Electricity+ Water

Rs. 97410 * 12 months

11,69,000

Salary (Projector

1 worker *Rs. 6,000 *

72,000

Boy)

12 months

Salary (Cleanliness)

2 workers * Rs.4,500 *

1,08,000

12 months
Salary (Ticket Boy)

1 workers * Rs.5,000 *

60,000

12 months
Salary ( Stall helpers)

2 workers * Rs.2,000 *

48,000

12 months
Movie Rights

Rs. 10,000 * 52 weeks

5,20,000

Maintenance

Rs. 13,000 * 1 year

13,000

Posters + Advertising

Rs. 30,000

Remuneration to

1 worker * Rs.15,000 *

Rs. 1,80,000

Administrative Staff

12 months

(manager)
Cotingency
Total:

40,000
22,00,000

There will be 2 partners and 35 staff for 5 theaters situated at different places which includes 5
administrator head/manager and 5 people for projector functioning and 10 people for cleanliness

and 5 to look over at ticket counter and 10 people who will be doing the job at the food stall. All
the 30 people employed will be accountable and show responsibility to the administrator head or
the manager.

Job titles interviewed

Maintenance Department ,

Ticketing Office

Gate Keeper

Projector Boy

Catering Department

Basic Job description (Basic function)

Cinema and theatre attendants help customers during entertainment shows. If you love theatre or
film and like helping people, a job as a cinema or theatre attendant could be ideal for you.
To become a cinema-theatre attendant, you should have a polite and helpful manner. You will
need good communication skills. You will also need good team working skills.
You do not need any qualifications to work as a cinema or theatre attendant. You should ideally
have experience of working with people in a customer service role, for example, as a shop
assistant. Cinema-theatre attendants may also be known as ushers, usherettes, front-of-house

staff, customer service assistants, or (usually in large multiplex cinema chains) cast or crew
members or guest assistants.
Job Specification
The qualification of the posts in not much required but we expect them to be atleast be qualified
till 9th grade and must understand and know the local language. The administrator head should be
considerably qualified to understand math and accounts and must know how to deal with
numbers. Since he will be responsible of huge amount of cash we will make sure one of us will
frequently visit the site until we hire another manager to do this collection job and accounting
(generally after 6 months of starting operation)

5.3 /Gellalu tayru (Training)

The training of employees would be an combination of stimulation and lecture for time period
and then the projector responsible head would be trained under another projector head from
Gopalan cinema pvt. Ltd. situated in Bengaluru (acquaintance of the promoter siddharth narang).
Precisely the employees (projector operator, cleaner, stall handler and ticket distributor) will be
undergoing off-the job training for about 50 to 60 days under the administrator head of Gopalan
Inovation cinema pvt. Ltd. ,So as to develop the way and technique of their job. Gopalan
Inovation Cinemas pvt. Ltd. Also does a drill of emergency situation to prepare their employees
to handle and tackle the situation in odd cases. Our employees will also be undergoing the same
drill with them.

5.4 Management Structure

Management Structure that we have adopted is very simple and direct, keeping in mind that we
are having a medium scale industry and is targeted in the rural area. We would make it very
simple and small for time being say for initial 3 years because of the employees we have. They
will be accountable to the administrator head or the manager directly and we will be in touch to
the administrator head frequently who will be giving us information of all revenue and income
generated. Also, the headcount of staff is quite less which would make the flow of information
and communication fast and easy.

Promoters

Manager

Employee and staff

5.5 26/Via 26(Selection)

We will be having basic interview as the audience that we are targeting as our employees are of
the rural area where we will setup our business. We will Also be having reference employment
on the bases of initial employees.

The major Steps that we will be having are:

Primary application

Interview

Medical check

Background Check

Employment

5.6 Salary and break up

We have kept competitive salary packages for the employees to keep them attracted to the job.
We will be providing them increment on yearly basis which would motivate them to stay tuned,
moreover we would be giving them free tickets for their entire family (4 members) once every
month so that they can also enjoy the movies.

5.6.1 Fringe Benefits

Pick up and drop service

Medical Insurance to every employee (limited)

Free meal for everyone working

Company car for the General Manager

Once a month free family visit and meal in the restaurant

Disbursement of accumulated tips amongst all employees

50% profit sharing amongst the partners, rest 50% amongst the rest of the employees
according to the pre decided ratio

5.6.2 Working Hours And Conditions

Working hours of the job would be from 10:00am till 10:00pm. The conditions of the work place
will be kept decent and clean. We would be encouraging people to rotate their job for enhancing
the scope in their working hours.

5.7 Leave Policy

15 days earned leave

7 days sick leave

7 days casual leave for a casualty / emergency not more than 3 days in a row

In case someone takes a leave then, overtime would be considered for other employees
who work extra.

5.8 Maternity Benefits

The object of maternity leave and benefit is to protect the dignity of motherhood by providing for
the full and healthy maintenance of women and her child when she is not working. We as ethical
promoters would surely follow the MATERNITY BENEFIT ACT, 1991 and would undergo all
the provisions it says to safeguard the interest and security of employees. Providing with these
strategies we would ensure women employment and women empowerment.

5.9 Recruitment sources:

Just like other big companies choose employment organization to recruit employees for their
organization we will also be choosing same option but slightly different in terms of the
organization. In our case we will be taking Gram Panchayat as the organiastion and they will
be suggesting us the employees as per our need. Precisely, we will follow external sources of
recruitment like employment organization and also we may consider walk in interviews for
the recruitment process.

5.9.1 Recruitment Policy

Just like big companies consider recruiting from the employee organizations to recruit the
employee, same way we will contact the village panchayat for help and consideration of the best
suitable employees with the promise of increasing employment in near future. We will also look
for employee from city after 6-8 months of operation who would be a senior manager at the post
to take care of the theatre and financials.

5.10 LEGAL FRAMEWORK

Chitra MandiraPvt. Ltd. is a private limited company falling under the purview of The Indian
Companys Act, 1956. The company would be registered with the Registrar of Companies
(ROC).
It is relatively less cumbersome to organise and operate it as it has been exempted from many
regulations and restrictions to which a public limited company is subjected. Some of them are :

It need not file a prospectus with the Registrar.

It need not obtain the Certificate for Commencement of business.

It need not hold the statutory general meeting nor need it file the statutory report.

The liability of its members is limited.

It enjoys continuity of existence i.e. it continues to exist even if all its members
die or desert it.

The shares allotted to its members are also not freely transferable between them. These
companies are not allowed to invite public to subscribe to its shares and debentures.

5.11 Retirement Policies

Employees Provident Fund Organisation

The employees' provident fund organization is a statutory body of the government of India under the
ministry of labor and employment. It administers a compulsory contributory provident fund scheme,
pension scheme and an insurance scheme. It is one of the largest social security organizations in the
India in terms of the number of covered beneficiaries and the volume of financial transactions
undertaken. The epfo's apex decision making body is the central board of trustee.

Recruitment Advertisement

Newspaper Advertisement: /prajavani

Cinema and theatre attendants help customers during entertainment shows. If you love theatre or
film and like helping people, a job as a cinema or theatre attendant could be ideal for you.
To become a cinema-theatre attendant, you should have a polite and helpful manner. You will
need good communication skills. You will also need good team working skills.
You do not need any qualifications to work as a cinema or theatre attendant. You should ideally
have experience of working with people in a customer service role, for example, as a shop
assistant. Cinema-theatre attendants may also be known as ushers, usherettes, front-of-house
staff, customer service assistants, or (usually in large multiplex cinema chains) cast or crew
members or guest assistants.

Retirement Gratuity
Retirement gratuity is admissible to all employees who retire after completion of 5 years of
qualifying service at the rate of one-fourth of emoluments for each completed six monthly period of
qualifying service subject to maximum of 16 1/2 times the emoluments or amount. 3.50 lakh,
whichever is less. Emoluments for the purpose of gratuity means: basic pay, stagnation increment,
dearness pay, non-practicing allowance and dearness allowance on the date of cessation of service.
Shandar( Appraisal)
We will be having a concept of Star employees of the month fro every department this will help us
to monitor there performance and will also help us in promotion and salary hikes. It will also help us
to determine who need training and development. The person form gopalan will help us to monitor
on the job performance.

CHAPTER 6
PRODUCTION AND
OPERATION

6.1 Floor Plan

6.1.1 INDEX FOR FLOOR PLAN

1. 1 Theatre entry gate no. 1
2. 2Projector room entrance and projector room
3. Theatre entry gate no. 2
4. Seating for balcony class ticket
5. Emergency exit / way to washroom

6. Exit/parking
7. Free passage
8. Free passage
9. Screen
10. Seating for normal class ticket
11. Free passage
12. Canteen
13. Restricted store room for canteen staff
14. Clock room and Store room for projector equipments

6.1.2 Lateral view

A birds eye view of

the theatre with the
normal class ticket
seats .

6.2 EQUIPMENTS AND MACHINERY USED

Chitra-Mandira will not be using any specialized or heavy machinery except the projector
and the screen which requires less maintenance and repairing cost
Equipment required for each theatre would be a sound system, a projector, a screen, a
generator, fans, lights, seats, food stalls and bathroom equipment and flexes for the
posters.
Each theatre seating area is estimated to be of 1200 sq. feet + 800 sq. feet of surrounding
area including the toilets and stalls. There would be 1 fan for every 100 sq. feet making it
12 fans per theatre. Fans would be purchased from Kraft Fans in bulk.
There would be 20 lights from Librety Technologies India Pvt. Ltd. in each theatre.
We would be using Dolby sound systems and screens.
Generators would be supplied by Jagson Company.
Seats would be coming from Naveen Furnishers Pvt. Ltd.
Bathroom equipment would come from Sulabh Pvt. Ltd.
Posters would be printed in Udaipur, the head office itself and transported..

6.3 FACILITIES

Chitra-MandiraPvt. Ltd. would provide ventilated halls with comfortable seats to watch
the movie in. There would be a bathroom in each theatre. Second run releases would
assure the villagers that they are going in to watch a good movie and not wasting their
money on a movie with less significance or entertainment value.

Food would be provided on the stalls outside the movie halls prepared by the villagers
themselves. The food stalls are completely going to be managed by the villagers from
buying the ingredients to selling the final products. Our company has nothing to do with
it. We are just going to provide training to the cooks. We seek to gain goodwill and
increase employment in this way.

6.4 Location Analysis

We have chosen villages because they suited best for our venture set-up because our
theme suited it best. These villages have everything for sustaining basic living like small
generals stores, grocery shops but they dont have any access to entertainment. And also
they have a convenient connection to Udaipur.
Chitra-Mandira Pvt. Ltd. is going to start with 5 theatres in 5 different villages of
KARNATAKA
(parent states of the entrepreneur)

Dharwad -Hubli -Bengeri

Dharwad -Hubli - Sulla

Davanagere- Mallapura

Belgaum- Yellur

Shimoga -Govindapura

*It would take this much time for a person in the village to reach the theatre by car.
However, we must
remember that a car is not very often found in villages.

CHAPTER 7
FINANCE PLAN

7.1 Sources of finance

Some of the ways by which one can start business and get sources of finance are as
follows :
Supplier or wholesaler financing
This method works with a supply chain to get the money that you need. It usually
works best with a smaller business, local supplier who really wants your business
and is willing to work with you.
Peer-to-peer lending.
This is a process whereby a group of people comes together to lend money to each
other. Its been around many years, in examples like small business groups or
ethnic groups supporting similar efforts. This is done online where people who
either need fast cash or have bad credit history posts requsting for a certain amount
of loan at a specified interest he/she is willing to pay

Crowd funding
This is the process where we use power of the Internet to find a crowd of likeminded people, with small amounts each, to back your efforts. This approach is
now spreading all around the world in a effective way.

Vendor financing
This is the process in which many manufacturers and distributors can be convinced
to defer your payment until the goods are sold by you this is mostly done in
manufacturing industry.
IRA financing
Investment Retirement Account are arguably the single most accessible alternative
funding source available today for start-ups. You cant use your own self-directed
funds for your start-up, but many others are willing and able to loan you money
from theirs, for the right terms, if they believe in you.
Microloans
There are many private companies and non-profits that offer small loans, up to
$35,000 to promote entrepreneurship, to individuals who would not normally
quality for bank financing.
Angel investors
Those looking to finance their business can always look to an angel investor.
Angel investors have helped to start up several prominent companies, including
Google, Yahoo and Costco. This alternative form of investing generally occurs in a
company's early stages of growth, with investors expecting a 20 to 25 percent
return on their investment.

Home equity
If you have equity in your real estate holdings, some lenders will accept that as
collateral against a business loan. Alternately, you could refinance your home,
taking a mortgage with a lower monthly payment, thus freeing up some funds for
business.

Factoring
It is one of the oldest technique of in-house financing. Factoring, basically put, is
when a company sells its accounts receivable to a financial institution or "factor".
The factor will progress funds on a share of the receivables, usually 75-80% of
their face value. The rest of 20-25% is called as the "reserve" and is initially
detained by the factor. The sum of the reserve will differ with the quality of the
receivables and the historical average of the payers.

Hedge-Fund Lenders corporate

Hedge fund lenders have been referred to as "the new ATMs" (August 2008
BusinessWeek article). The reason for this is because hedge funds will frequently
loan funds into high threat businesses, like asset- or technology-concept backed
companies. The range of the loan will depend on the value made by the borrower.

The decision to provide loan is usually done after some due conscientiousness, but
with greater flexibility than that experienced with conventional borrowers.

Customer Lenders
Borrowing from business customers started in the early 2000s with community
supported agricultural loans (CSAs). For example, in CSAs, farmers' customers
loaned funds proceeding to the planting time and took compensation in harvested
goods at discounted prices. To participate in customer lending, a company must be
well-established in the neighborhood, have a good record of customers and have
earned the hope of those customers.

Credit Card Lenders

Financing from credit cardshas the advantage of simple and early access to money
if the creditors history is good. It has several threats and weaknesses, however.
Credit card financing is generally limited in the amount gievn to borrowers based
on the borrower's demonstrated

ability to gain and refund the loan. Credit card rates are high and subject to
enormous price penalties for delayed or missed payments on any outstanding bills.

Convertible Debt Instruments

Convertible debt instruments are basically asset-backed loans that can entail the
business owner to give up various future equity in the firm if the lender wants to
convert the debt to an equity position in the firm. One of the benefits is that the
lender incurs less risk in making this type of loan and thus is more likely to make
the loan even with some risk in the situation.

Venture Capital
Venture capital may also comprise managerial and technical expertise. Most
venture capital comes from a set of wealthy investors, investment banks and added
financial institutions that group such investments or partnerships. This type of
raising capital is accepted among new companies or ventures with boundless
operating history, which cant raise funds by issuing debt. The disadvantage for
entrepreneurs is that venture capitalists generally get a say in business decisions, in
addition to a share of the equity.

Get a Business Partner

The expression brings to mind a 50/50 partnership where both partners have the
same financial investment, do the same amount the work and share profits. This is

not the case all the time. There are times when one partner mainly finances the
original operations, like an investor, but more like a board member, counsels,
directs, and can do some of the managerial, advertising, or business growth work,
while the other partner is mainly hands on in day to day activities.

Second Mortgage
Second mortgages are also referred to as home equity lines of credit. These loans
tap into the locked up equity you may have in your home. To calculate how much
you may be able to borrow for a second mortgage take the value of your home and
deduct the value of any outstanding mortgageOne of the biggest advantages of
using a second mortgage is that the interest rate tends to be lower than with others
form of financing. This is because the bank knows it can always recover the value
of the loan by foreclosing on your property if you are not able to meet your interest
payments.

Innovation incubators
The innovation incubators act as incubators for new knowledge-based spin-offs
from public or private research and development. They provide professional advice
and, on behalf of the State, invest venture capital at the earliest stages where
normal market investors are more cautious.The purpose of the innovation

incubators is to promote the commercialization of your ideas, inventions and

research results by ensuring close collaboration on the development of new
products and services between you as an entrepreneur, research and capital.

Frost Data Capital

It is a fund that is creating more win-wins between investors and entrepreneurs.
Considering themselves parallel entrepreneurs, Frost Data Capital is redefining
the way compelling big data startups are created. They identify gaps in the big data
technology marketplace by partnering with major corporations, including Intel
INTC +1.63%, GE, Accenture and others. This enables them to start with ideas that
are already identified as needs, grow those innovations and then structure fair and
equitable exits for both parties more rapidly than traditional companies and funds.

Bootstrapping
Bootstrapping can also refer to a highly-leveraged transaction when an investor
acquires a controlling interest in a company, financing the transaction by using the
assets of the company as collateral for the loan. Bootstrapping frees the
entrepreneur from having to pay interest on a loan or from having to share any
potential profits with other investors. However, entrepreneurship involves

significant risk. When personal funds are used to finance a new business, the
person stands to lose not only the time invested but their own money as
well.Bootstrapping in leveraged transactions is extremely risky since the potential
investor is using the companys assets to service their loan.

Seed Capital
Seed capital is needed to get most businesses off the ground. It is considered a
high-risk investment, but one that can reap major rewards if the company becomes
a growth enterprise. This type of funding is often obtained in exchange for an
equity stake in the enterprise, although with less formal contractual overhead than
standard equity financing.Banks and venture capital investors view seed capital as
an "at risk" investment by the promoters of a new venture, which represents a
meaningful and tangible commitment on their part to making the business a
success. Frequently, capital providers will want to wait until a business is a little
more mature before making the larger investments that typify the early stage
financing of venture capital funding.

Government Grants
A financial award given by the federal, state or local government to an eligible
grantee. Grants do not include technical assistance or other forms of financial

assistance such as a loan or loan guarantee, an interest rate subsidy, direct

appropriation or revenue sharing. The federal government provides grants for a
wide range of projects and businesses that serve public groups. Over 26 federal
agencies administer more than 1,000 grant programs annually to provide funding
for the arts, educational institutions, agricultural projects and much more.

7.2 Financial plan

CHITHRA-MANDIRA Pvt. Ltd. is a private limited company. According to

the new Companies Bill, 2013, a private company can have a maximum of
200 people. The first year requires an initial investment of Rs. 1,98,50,000.
Since it is a private limited company, the shares would not be listed on any
particular stock exchange. These shares would be subscribed by relatives
and family friends.
The books would be audited yearly to make sure that there is no
misallocation or misuse of funds or mistake in keeping the accounts on the
business.
Our stake holders will get regular updates on the finances and the then
financial status of the company. There would be transparency maintained

7.3 ESTIMATED SALES AND REVENUE

1st year:
60 seats * 3 shows * 5 theatres * 50 cost * 300** days = Rs.1,35,00,000

2nd year:
75 seats * 3 shows * 5 theatres * 50 cost * 300** days = Rs. 1,68,75,000
25 seats * 3 shows * 5 theatres * 80 cost * 300 **days = Rs. 90,00,000
Rs. 2,58,75,000

3rd year:
100 seats * 3 shows * 5theatres * 50 cost * 300** days = Rs.2,25,00,000
50 seats * 3 shows * 5theatres * 80 cost * 300** days = Rs.1,80,00,000
Rs. 4,05,00,000

**assuming the theater will be closed for 65 days an year under the charge
of Maintenance and religious holidays

7.4 COSTING:
FIXED COST PER THEATRE
ITEM

DESCRIPTION

COST( in Rs.)

Land

2,000 sq. feet @ 200rs sq 4,00,000

ft.

Construction

2,000 sq. feet * Rs. 360

7,20,000

Fans

12 fans * Rs. 820

10,000

Electronic Equipment Projector+Screen

60,000

Generator

15 KVA

1,60,000

Music System

40,000

Seats

200 seats * Rs. 300

60,000

Lights

20 lights * Rs. 400

8,000

Trainer

for

village Remuneration

14,000

cooks
Stalls

10,000

Toilet Equipment

8,000

Overheads

Advertisement
Transportation

+ 30,000
+

Fire

Extinguisher
Contingency

50,000

Total

17,70,000

Fixed cost for 1 theatre(s): Rs. 17,70,000* 5 theatres = Rs 88,50,000

VARIBLE COSTS(1ST YEAR)
ITEM

DESCRIPTION

COST( in Rs. )

Electricity+ Water

Rs. 97410 * 12 months

11,69,000

Salary (Projector Boy)

1 worker *Rs. 6,000 * 12 72,000

months

Salary (Cleanliness)

2 workers * Rs.4,500 * 1,08,000

12 months

Salary (Ticket Boy)

1 workers * Rs.5,000 * 60,000

12 months

Salary ( Stall helpers)

2 workers * Rs.2,000 * 48,000

12 months

Movie Rights

Rs. 10,000 * 52 weeks

5,20,000

Maintenance

Rs. 13,000 * 1 year

13,000

Posters + Advertising

Rs. 30,000

Remuneration to

1 worker * Rs.15,000 * Rs. 1,80,000

Administrative Staff

12 months

(manager)
Contingency
Total:

40,000
22,00,000

Variable Cost for 1st year for 1 theatre : Rs. 22,00,000 *5 theatres = Rs.
1,10,00,000
VARIBLE COSTS(2ND YEAR)
ITEM

DESCRIPTION

COST ( in Rs. )

Electricity + Water

Rs. 97410 * 12 months

Rs. 11,69,000

Salary ( Projector
Boy)

1 worker *Rs. 6,500 *

12 months

Rs.72,000

Salary (Cleanliness)

2 workers * Rs.5,000 * Rs.1,20,000

12 months

Salary (Ticket Boy)

1 workers * Rs.5,500 * Rs. 66,000

12 months

Salary ( Stall helpers)

2 workers * Rs.2,500 * Rs. 60,000

12 months

Movie Rights

Rs. 10,000 * 52 weeks

Rs. 5,20,000

Maintenance

Rs. 20,000 * 1 year

Rs. 20,000

Posters + Advertising

Rs. 25,000

Remuneration
Administrative
(manager)
Contingency
Total:

to 1 worker * Rs.17000 * Rs. 2,04,000

Staff 12 months

Rs. 40,000
Rs. 2,28,60,000

Variable Cost for 2nd year for 1 theatres: Rs.2,28,60,000 * 5 theatres =

Rs.1,14,30,000
VARIBLE COSTS(3RD YEAR)
ITEM

DESCRIPTION

Electricity + Water

Rs.

1,00,000

COST ( in Rs. )
*

12 12,00,000

months
Salary

Projector 1 worker *Rs. 7000 * 84,000

Boy)

12 months

Salary (Cleanliness)

2 workers * Rs.6,000 * 1,44,000

12 months
1 workers * Rs.6,000 * 72,000

Salary (Ticket Boy)

12 months
Salary ( Stall helpers)

2 workers * Rs.3,000 * 72,000

12 months

Movie Rights

Rs. 10,000 * 52 weeks

5,20,000

Maintenance

Rs. 40,000 * 1 year

40,000

Posters + Advertising

Rs. 52,000

Remuneration
Administrative

to 1 worker * Rs.20,000 * Rs. 2,40,000

Staff 12 months

(manager)
Contingency

40,000

Total:

24,64,000

Variable Cost for 3rd year for 5 theatres: Rs. 24, 64,000* 5 theatres = Rs.
1,23,20,000
7.5 BREAKEVEN POINT

The 2nd year from the operation would see CHITHRA-MANDIRA Pvt. Ltd.
reaching its breakeven point and getting a modest profit as well.

1st year:
Total costs:

Rs 1,98,50,000 (fixed cost + variable cost of 1st year)

Total revenue: Rs. 1,35,00,000

End of year: Deficit of Rs. 63,50,000
2st year:
Total costs:

Rs. 1,14,30,000

Total revenue: Rs. 2,58,75,000

After removing 1st years deficit from revenue- Rs. 1,95,25,000
After removing 2nd years total cost- Rs80,95,000
Therefore, Rs80,95,000 is the profit for the 2nd year.

7.6 PROFIT MARGINS

1st year sees a deficit of Rs. 63,50,000

2nd year sees a profit of Rs. 80,95,000.
3rd year sees a profit of Rs. 2,81,80,000
graph showing profits (in crores) for the 3 subsequent years.

Profit ( in crores )
3
2.5
2
1.5
1
0.5
0
-0.5

Year 1

Year 2

Year 3

-1

Sources of finance for CHITHRA-MANDIRA

1. Authorized share capital 1crore: 1000000 * 10
a. 500000 * 10 share capital (paid up capital), Issue price 10 rupees.
2. 5000 Debentures issued @ 6% P.A. 500000 rupees.

Profit ( in crores )

3. Inter corporate funding : funds taken from Gopalan cinemas @12% P.A. 3500000
rupees.
4. Long term borrowings from kotak Mahindra bank @ 6% interest rate P.A. 2500000
rupees.
5. Venture capitalist intake of 1500000 rupees. (12.62lakhsfor first year)
6. Preference share capital of 2500000 @10% P.A.

7.7 Depreciation:The rate of depreciation below is @ 0.15% as per clauses of Income Tax
Department of India.
DEPRECIATION ON ASSETS (Written Down Method)

ASSET NAME
Fans

Value

Year 2

Year 3

1500

1275

1085

60,000

9000

7650

6500

1,60,000

24,000

20400

17,340

Music Systems

40,000

6000

5100

4335

Seats

60,000

9000

7650

6500

Land & Building

11,20,000

1,68,000

1,42,800

1,21,380

Canteen Stalls

10,000

1275

1080

Electronic Equipment
Generator

10,000

Year 1

8500

Lights

8000

1200

1020

867

Toilet Equipments

8000

1200

1020

867

7.7.1 CRITICAL RISKS AND ASSUMPTIONS

Low competition directly amounts to low risks. Since we are the sole sellers of movies in these
rural areas, there doesnt seem to be any risk involved from the competition side unless some
other companies decide on opening their theatres around these areas.
However, we still have to face some risks. Getting a positive response and cooperation from the
villagers is something we have assumed based on our surveys and statistics. We cannot be sure
that the villagers would like to go watch movies and pay for the tickets.
Also, the snack stalls are going to face the risk of selling food not enjoyed by the viewers.
There can always be a mistake in selecting the right kind of movies to screen in the theatres. In
such a case, we would lose our audience, and thus, lose some of the revenue.
The respective Development Authorities could also create a problem in granting approvals for
the land and structure created for the theatre.
Since we target families and children there could be a possibility that at one point of time there
is no movie for either of our target viewers. This would result in the same movie running for a
longer period of time. This could be another risk which we would have to consider.
For advertisement, we are mainly dependent on word of mouth. However, this could also prove
to work against us.

7.7.2 PROBLEMS
Being a private company, the funds available would be lesser compared to public companies.
The shares in a private limited company cannot be sold or transferred to anyone else without
the agreement of other shareholders. Scope of growth is limited.
Getting grants from the respective Development Authorities would prove to be timeconsuming and will involve a lot of formalities.
Teaching the cooks in the village would be a tedious task. The food has to be of standard
quality. Since that department has completely been handed over to the villagers, it would be
tough to monitor it all the time.
Villagers are generally not very educated people. We see seats in theatres getting spoilt due to
harsh use. This would require us to provide regular maintenance. This is going to be financially
taxing.

7.8 Profit & Loss account

Profit & Loss

------------------- in Rs. Cr. ------------------Mar '18

Mar '17

Mar '16

12 mths

12 mths

12 mths

Sales Turnover

4.05

2.5875

1.35

Excise Duty

0.00

0.00

0.00

Net Sales

4.05

2.5875

1.35

Other Income

0.60

0.45

0.30

Stock Adjustments

0.00

0.00

0.00

Total Income

4.65

3.0375

1.65

Raw Materials

0.00

0.00

0.00

Power & Fuel Cost

0.12

0.1169

0.1169

Employee Cost

0.372

0.318

0.288

Other Manufacturing Expenses

0.00

0.00

0.00

Selling and Admin Expenses

Miscellaneous Expenses

0.240
0.92

0.204
0.045

0.18
0.043

Preoperative Exp Capitalised

0.00

0.00

0.00

Total Expenses

1.652

0.6839

0.6279

Mar '18

Mar '17

Mar '16

12 mths

12 mths

12 mths

Operating Profit
PBDIT

2.998

2.3536

1.0221

2.998

2.3536

1.0221

Interest

0.91

0.89

0.87

PBDT

2.087

1.4636

0.1521

Depreciation

0.1599

0.1881

0.2284

Other Written Off

Profit Before Tax

0.00
1.9271

0.00
1.2755

0.00
-0.0763

Extra-ordinary items

0.00

0.00

0.00

PBT (Post Extra-ord Items)

1.9271

1.2755

-0.0763

*Tax

0.00

0.00

0.00

Reported Net Profit

1.9271

1.2755

-0.0763

Total Value Addition

0.00

0.00

0.00

Preference Dividend

0.03025

0.0275

0.025

Equity Dividend

0.00

0.00

0.00

Corporate Dividend Tax

0.00

0.00

0.00

Per share data (annualised)

Shares in issue (lakhs)

0.05

0.05

0.05

Earning Per Share (Rs)

0.00

0.00

0.00

Equity Dividend (%)

0.00

0.00

0.00

Book Value (Rs)

0.00

0.00

0.00

Income

Expenditure

*Tax will not be charged as per the guidelines issued by Karnataka government.

7.9 BALANCE SHEET

PROJECTED BALANCE SHEET
Assets

Year 1

Year 2

Year 3

Land & Building

9,52,000

8,09,200

6,87,820

8500

7225

6141

Electronic Equipments

51000

43350

36,850

Music Systems

34,000

28,900

24,565

Seats

51000

43350

36,850

Canteen Stalls

8500

7225

6145

Lights

6800

5780

4913

Toilet Equipments

6800

5780

4913

Fans

Cash

1,85,47,400 1,87,35,590 1,88,95,543

Generator

1,36,000

Total Assets

1,15,600

98260

1,98,02,000 1,98,02,000 1,98,02,000

Liabilities
Equity share capital

5000000

5000000

5000000

Preference share capital

2500000

2750000

3025000

Loan from Kotak Mahindera

2500000

2500000

2500000

5000000

5000000

6% debentures

5000000

Long term borrowings

4762000

4512000

4237000

Reserves

40,000

40,000

40,000

Total Liabilities

1,98,02,000 1,98,02,000 1,98,02,000

7.10 Cash Flow Statement

CASH FLOW STATEMENT
Particulars
Cash received

Amount
Year 1

Year 2

Year 3

Cash from Operations

Cash Sales

1,35,00,000 2,58,75,000 4,05,00,000

Additional Cash received

New Current Borrowings

Sales Tax, VAT, HSG/GST Received

New Long Term Liabilities

Sale of Current Assets

Sale of Long-Term Assets

New Investment Received

Subtotal Cash Received

1,35,00,000

2,58,75,000

0
4,05,00,000

Expenses from operations

Cash Spending

1,10,00,000

1,14,30,000

1,23,20,000

Additional Cash spent

Principal Repayment of Current Borrowings

Sales Tax, VAT, HSG/GST Paid Out

Long Term Liabilities Principal Repayment

Purchase of Other Current Assets

Purchase of Long-Term Assets

Dividends

Subtotal Cash Spent

1,10,00,000

1,14,30,000

1,23,20,000

Net Cash Flow

25,00,000

1,44,45,000

2,81,80,000

CHAPTER 8
EXECUTIVE PLAN

8.2.1 ROLE OF SUPPLIERS

A major tie-up would be with MoviesUnlimitedPvt. Ltd. screens movies in the cities as
fresh releases i.e. show them in the very week they are released. Besides, there is no
filtering of the movies as such for the cities. Most of the releases are screened as it is.
This would prove to be rather beneficial for us since the rights for the movies to be
screened would be already available weeks before they have to be screened in the ChitraMandiraPvt. Ltd. theatres. Getting the rights for screening the movies in Chitra-Mandira
theatres would be easy and cheap, say Rs. 10000 per movie per week. Also, the fact that
the screening in these theatres would take place 2-3 weeks post the release, would reduce
the costs of obtaining each movie.
MoviesUnlimitedPvt. Ltd. already being a reputed company would get rights to good
prints of movies and have trusted distributors.

8.2.2 ROLE OF GOVERNMENT

The KARNATAKA government development authorities would be required to provide

approvals to the structures created for the theatres. Being a private limited company,
Chitra-MandiraPvt. Ltd. would not have many formalities to perform for the government.
Unlike public companies, a statutory report need not be filed every year to the
government. Private companies do not get much interference in their working from the
government. Therefore, Chitra-MandiraPvt. Ltd. expects the government not to hinder its
operations and stick to the number of formalities that are required. This does not imply

that Chitra-MandiraPvt.Ltd..would be doing something against its ethics. However,

government formalities get cumbersome to follow and are extremely time consuming.

8.3 SOCIAL ASPECT

Chitra-Mandira Pvt. Ltd. is also going to serve the society by creating employment for
villagers in 3

ways:

1) The food stalls shall be completely handled by the villagers. It would give them a
platform where they could cook and earn out of it.
2) The construction of the theatres would be done with the help of labor employed from
the village itself.
3) The staff required to clean, sell the tickets and take care of the theatres would be
employed from the village too.
This social aspect to Chitra-Mandira Pvt. Ltd. would help it flourish. There would be
popularity gained in villages, as a result of which, advertisement would not be required as
much as it earlier would have. Also, costs for the company would reduce in employing
people from the locality itself.

8.4 IMPLEMENTATION STRATEGY

The buzz about the theatres would naturally start in the villages as soon as the
employment process begins. Construction of the theatre would require labourers to come
forward from the village itself. Training for the snack stalls would also begin soon after.
Villages not being very big, the word would spread around quickly. Word of mouth is
considered the fastest way of promoting anything. With posters of different movies all
over the prime locations of the village, an excitement would be infused within the
villagers even before the theatre is ready. With this kind of excitement, the villagers
would actually be excited about the coming up theatre and wait for it to be put into
action. Once in action, there would be attractive posters for the movie which would be
screened the next week every week all over the villages.

CHAPTER 9
CONCLUSION

Conclusion
With the proposed business plan we expect Chitra-Mandira Pvt. Ltd. To make a major
contribution to the society in terms of entertainment and fun to those people who have a keen
interest in watching movies. The project will help us generate employment and will create
enthusiasm in people through artificial entertainment.
Indias movie market being one of the biggest in the world is still not tapped in the rural areas.
We find at least one multiplex in each city. However, its not the same with the rural areas.
Besides, its not even that the rural population does not enjoy watching these movies. A lot of
film producers and directors today are targeting the rural population as the subject of their films.
The rural population, thus, not only relates but also enjoys these films. Taking advantage of this
fact and being the only company to establish its theatres only in the rural areas we analyzed the
opportunity of opening and starting this venture to help the entertainment deprived people.

BIBLIOGRAPHY

REFERENCES
Bala, P. (2011, April 12). Cinema Blog. Retrieved from cinema Business in India:
http://cinemabizindia.blogspot.in/2011/03/cinema-business-angel-investment.html
Contextly. (2013, April 14). Inc42. Retrieved from Startup Incubators Accelerator in India:
http://restobizindia.blogspot.in/2011/03/cinema-business-angel-investment.html
Karnataka Government. (2016, January 10). Terms and Conditions. Retrieved from Government of NCT
of KArnatakas:
http://Karnataka.gov.in/wps/wcm/connect/doit_tourism/Tourism/Home/Terms+and+Condition+for+Ci
nemas
entertainment Corporation-Government of India. (2015, September 28). FSSAI. Retrieved from
Deaprtment of entertainments Safety: https://entertainmentlicensing.fssai.gov.in/indexSL_DL.aspx
Government of India. (2016, january 15). License in Karnataka. Retrieved from Tourism Department:
http://www.Karnatakagovt.nic.in/dept/tourism/tour_restaur.htm
Indian Bank. (2015, APRIL 1). INDIAN BANK. Retrieved from LOAN TO CINEMA BUSINESS:
http://www.indian-bank.com/contact.php
Nusra. (2013, May 24). Cinema India. Retrieved from License for Cinema:
http://www.cinemaindia.in/article/starting-up/legal-structure/Licenses-for-Opening-New-Cinema.a5/

www.wikipedia.org
https://www.sba.gov/content/business
www.cineact.com
www.copyrightlawmatters.com
(Indian Bank, 2015)
(Government of India, 2016)
(Karnataka Government, 2016)
(Entertainment Corporation-Government of India, 2015)
(Bala, 2011)

ANNEXURES

PARTNERSHIP DEED
This DEED OF PARTNERSHIP is made this THURSDAY(18th ) of February
2016 between siddharth Narang and Pranjal Agrawal
hereinafter called the partners of the first part and Second Part
respectively

AND
A company registered under the provisions of the Companies Act 1956 and
having its registered office at Bangalore hereinafter called the party of
Third part

WHEREAS the Parties of First and Second Part by virtue of their

partnership deed dated 18th February, 2016

have been carrying on the

business of manufacturing and Cinemas in the three tier cities. under the name
and style of Chitra Mandira

with Cinemas at five location at the

outskirts of Banglore under the same name and style.

AND WHEREAS the Party of Third Part Viz. the company is formed with
the objects of Showing Movies at cheap rates in the 3 tier cities.
AND WHEREAS the Party of the Second Part has expressed its desire
and willingness through the director Siddharth Narang to enter into
Partnership and parties First, Second part have mutually decided that the
Party of the third Part shall be taken as Partner.
AND WHEREAS it is deemed necessary and desirable that a regular
Deed of Partnership be reduced in writing and executed on the terms and
conditions mentioned hereunder.

NOW THIS DEED WINTESSETH AS UNDER: 1. The Partnership shall come into effect from January 2016 and shall be
for an indefinite period unless it is determined.
2. That the name and style of the Partnership firm hereby formed shall be
with the Partners under the same names and style or with branch or
branches at such place(s) as the parties may mutually decide.
3. That the business of the Partnership Firm hereby formed shall be that of
creating cinemas in the three tier cities., as hereto before. The parties may,
however, with their mutual consent embark upon a new line or lines of
business and may open branch or branches or new factory.
4. the Parties will have equal sharing ration that is 1:1.
5. That further finance required for the purpose of business of the firm
shall be contributed by the parties in such rate as may be mutually agreed
upon.
6. That the regular accounts books shall be kept in due course of business in
which shall be faithfully recorded all the transactions enter into by the
firm and such books shall be closed on 31st March of every year or/on any
other convenient or auspicious day as may be mutually agreed upon between
the parties hereto from time to time.

7. That on closing the account books in the aforesaid manner, a regular

profit & Loss Account shall be prepared and a balance sheet shall be drawn
up.
8. That the Profits & Losses shall be divided between and borne by parties
hereto in the following proportions:
Partners with 50 % of share in Profits and Losses
9. There will be no salary for the Patners in the 1st year and the amount of
profit in future will be distributed in the equal ratio.
10. That all the assets and liabilities of the firm as on 1 st Janusary,2016
tangible or otherwise, would be taken over by the Partnership at its book
value and shall be deemed to be assets and liabilities of this Partnership and
all the Parties hereto will have equal rights/liabilities thereon.
11. That all rights of the firm as on 1 st Janusary,201 namely ISI marketing
license, Trade marks, Sales Tax registration, Telephone connections,
Tenancy rights, Lease rights, Ownership right etc. shall be deemed to be the
rights of the partnership and all the parties hereto will have equal
rights/liabilities thereon.

12. That each partner shall: (a) Diligently attend to the business of the Partnership and devote his/her
necessary time and attention thereto.
(b) Punctually pay her/his separate debts and indemnify the other partner
and the Assets of the firm against the same and all expenses therefore.
(c) Upon every reasonable request inform the other Partner of all
letters, accounts, writings and such other things which shall come to
her/his

hands

or

knowledge

concerning

the

business

Partnership.

13. That neither Partner shall without the consent of the others: -

of

the

(a) Lend any of the money or deliver upon credit any of the goods of
the firm to any person or persons whom the other Partners shall
have previously in writing forbidden her/him to trust.
(b) Raise or advance any loan in the name of or on behalf of the firm.
(c) Assign, charge or transfer her/his shares in assets or profits of
the firm.
14. That the account in the name of the firm Chitra Mandiera shall be opened
with the Banks or bankers as the Parties may mutually decide and the same
shall be operated upon by the Parties hereto singly.
15. That any partner may retire from the Partnership firm, hereby formed by
giving two months notice in writing to the others but none shall leave the
firm until or unless all the pending commitments are carried out, liabilities
paid off, assets realized and accounts are rendered fully and settled finally
to the entire satisfaction of each of the parties hereto.
16. That the parties hereto may, however, with their mutual consent pay
remuneration to any of the parties hereto at a rate that may be mutually
agreed upon between them from time to time.

They shall be at liberty to

increase or decrease such rate of remuneration with their consent from time
to time.
17. That in the event of death or retirement of any of the parties hereto the
partnership firm hereby formed shall not dissolve, but shall continue. The
legal heir or the representative of the deceased shall step into her/his
shoes.
18. That upon the dissolution of the partnership in any even not hereinafter
provided for the said business, the assets, goodwill and liabilities thereof
should absolutely vest on any one partner mutually decided by the parties to
the partnership.
19. That it will always remain open to the parties hereto to amend, annul or
change any term or terms of this Deed of Partnership in the course of its
business and in that event of amending, annulling or changing any term or
terms of this deed of Partnership no fresh deed shall be required to be
executed.

20. That without prejudice to the above terms and conditions the parties
hereto in all other matters shall be governed by the provisions of Indian
Partnership Act, 1932.
21. That all the disputes or differences arising out of it and connected with
the Partnership shall be referred to the arbitrator in accordance with the
Indian Arbitration Act.
IN WITNESS WHRE OF, the parties of the first and Second parts
here have put their respective hands on this DEED OF PARTNERSHIP on the
day, month and year first mentioned above.

WITNESSESS:
Rahul Kumar Singh
Abishek Mittal
(Owners: Master-Stroke)

Partners
Pranjal Agrawal
Siddharth Narang