We are doing project work on multiplex industry .The multiplex segment is growing
leaps and bounds due to the high demand for quality family entertainment as watching
movies is one of the foremost entertainment options in India. With the corporatization of
film production better movies targeted at a specific audience are increasing in
number,thereby attracting greater number of movie buffs.
Indian retail boom
Organized retail business in India is expected to boom due to rising
consumption,availability of quality real estate, and significant investment in malls by
large Indian corporate houses. Multiplexes are preferred anchor tenants in majority of the
malls as they increase footfalls by around 30 – 40% and help in providing the one stop
destination for family entertainment & shopping, which the malls are striving for.
Changing demographic profile
India is one of the youngest nations in the world, with two-third of the population below
35 years of age. The 15-34 years age group represents the most frequent moviegoers
worldwide. Hence, an increase in this group would propel growth in the film exhibition
segment. Spurred by improving quality of theatres and excellent services, the multiplex
segment will witness a spurt in demand.
Rising disposable income
The rise of the Indian middle class with greater earning power and a higher disposable
income due to strong economic growth and increased globalization will drive the growth
of the multiplex segment. The higher the income earned, the greater percentage of that
income will be spent on discretionary items such as movies & entertainment. The boom
in IT & BPO industry has also added to the increased availability of disposable income
with young people, whose aspiration levels have jumped, thus leading to greater appetite
for lifestyle products and entertainment.
Changing lifestyle
The traditional joint family set up in India is slowly giving way to a nuclear family
system. This is more pronounced in urban India. With the rise of the service sectors like
IT & BPO young people with less family commitments are earning more. Their
aspirational levels have gone up dramatically. They don’t just spend on basic goods and
services, but always something more, something extra. They want to indulge themselves
by spending more on lifestyle products.
Execution/compliance delays and over capacity - matter of concern
Majority of the multiplexes are coming up in leased properties. Hence, the multiplex
operators are highly dependent on developers for timely delivery of civic shell.Mall
development is currently highly unorganized activity in India and delays are quite
common. Moreover, there are close to 21 clearances, which vary from state to state which
a multiplex operator has to obtain before starting the operations.
All the major multiplex operators are on a growth path. We feel PVR looks themost
attractive in this segment due to its high ROCE and low P/BV ratios coupled with its
expansion plans using the low cost digital model, which has immense growth potential.
Shringar has become aggressive with its expansion in the recent days and we expect it to
turn around by mid FY07. We feel shringar is a high-risk high return stock at current
levels.
Entertainment tax exemptions
Entertainment tax rates in India are one of the highest in the world. Currently it varies
from 15% to 60% of gross box office collections (differing from state to state) in
comparison to the average rate of 10% in the developed countries. Several states like
Maharahtra, Rajasthan, Kolkatta have announced entertainment tax exemptions for
multiplexes in the initial years to drive growth. The exemption provided differs from state
to state and hinge on fulfilling various conditions. These again vary from state to state.
Industry sources feel that in few states like Karnataka, the conditions are such that it
makes operating sense to pay an entertainment tax of 40% instead of exercising the
exemption benefits.
Indian Film Industry
The Indian film industry is the largest in the world in terms of number of films produced
and admissions. Watching movies is one of the most popular entertainment options in
India. On an average, every year 1000 feature films are produced in India in different
languages. In FY04, the total number of admissions in Indian cinemas was 3.1bn. The
second largest number of admissions was in the US, which had 1.5bn admissions in the
same period. But in terms of revenue, the Indian film industry pales in comparison with
its American counterpart. The revenue of the Indian film industry was estimated at
$1.5bn (Rs68bn) in FY05, which is only a fraction of the estimated $37bn that the US
film industry earned in 2005. Indian Film entertainment is expected to grow at a CAGR
of 18% over the next 5 years and is the fastest growing film entertainment market in the
world.
The trend of corporatisation of the Indian film industry is considered to be one ofthe most
important aspects for the growth of the industry. Industry sources also indicate that more
than half of the releases in 2005 were by corporates rather than individuals. Corporates
have also forayed into film distribution – not just forfilms being produced/exhibited by
them, but also for other producers.The Indian film industry currently realizes almost 80%
of its revenue from domestic and overseas box office collections. In comparison, the US
film industry earnsonly 35% from box office receipts. KPMG estimates that revenue
leakage due to piracy is 14% in India. However, some industry people put the figure as
high
Highly fragmented industry
The exhibition industry is highly fragmented, with no single entity having controlover a
large number of theaters. Local entrepreneurs currently run large numberof theaters and
don’t have deep pockets or the management expertise to starta chain of theaters.
Under-screened
In India, the number of screens per million population is just 12 whereas the average in
the western countries is approximately 40. A UNESCO study has estimated that India
needs 20,000 screens to cater to the cinema viewing population. No new single/double
screen cinemas are expected in the near future.
Besides, majority of the traditional theatres in cities/towns are expected to be converted
into multiplexes. Also, the lands are being put to use for building malls to capitalize on its
real estate value.
Uneven regional distribution
According to the Film Federation of India, there are 12,000 theaters in India.Many of
these are not functional. There are around 80 multiplexes with 295 screens. Moreover, the
geographical distribution of theaters is quite uneven. Four southern states of Karnataka,
Kerala, Tamil Nadu and Andhra Pradesh account for about 60% of the total theaters in
the country, while housing just 22% of the population.
VISION –
TO BE A LEADING MULTIPLEX RESONATING WITH THE
SOCIETAL NEEDS OF FUN AND ENTERTAINMENT
MISSION –
TO CATER TO THE ENTERTAINMENT NEEDS OF SOCIETY
THEREBY MAINTAINING BALANCE BETWEEN PROFIT
MAXIMISATION FEATURE AND CORPORATE SOCIAL
RESPONSIBILITY,
Government of Rajasthan Department of Industries & Commerce
No.5/58/2002/5IB/2725 : Whereas, with a view to facilitate the development of Industry in the State, Government of Rajasthan have notified the “Industrial Policy – 2003” vide No. 5/58/2002/IIB/968 dated 26.3.2003, which inter-alia provides for Grant of Concessions to Multiplex Complexes.
Now, therefore, to implement the scheme of Development of Multiplex Complexes, set out in the aforesaid policy, the Governor of Rajasthan is pleased to notify detailed scheme as under:- 1. Definition
Multiplex complex shall mean an integrated entertainment and shopping centre/complex having at least three cinema halls with total minimum seating capacity of 1500 seats, set up in an area of 4000 Sq. Yards or above with minimum investment to the tune of Rs. 4 crore including the cost of land, if owned by the developer. Apart from Cinema Halls the entertainment area may have restaurant, fast food outlet, , health spa / centres and other recreational activities. The shopping centre may have retail outlets, showrooms, etc.
Existing cinema halls converting to multiplexes will be covered under this scheme, if they have a plot area of 4,000 sq. yds.
2. Land Use
Multiplexes will be permitted on land earmarked for commercial use or cinemas in any master plan or development plan prepared by the Rajasthan Urban Planning & Development Authority (RUDA) or any local body. They will also be permitted on land on which no land use restrictions are applicable under any law.
3. Procedure for Approvals
A developer intending to put up a multiplex will submit a composite application (10 copies) in Annexure I along with the documents and fees mentioned therein to the General Manager, District Industries Centre with a copy to Chief Coordinator Udyog Sahayak. The General Manager will place the application within 15 days before the District Level Committee comprising of the
following:-1. Deputy Commissioner Chairman
2. ACA, RUDA Member
3. Superintending Engineer (PWD) - Buildings Member 4. Representative of Chief Electrical Inspector Member 5. Commissioner Municipal Corporation / Executive
Officer Municipal Committee / Executive Officer Improvement Trust
6. District Town Planner Member
7. Chief Fire Officer Member
8. General Manager District Industries Centre Convenor
The Committee will consider the proposal for granting in principle approval to the project enabling the applicant to start construction. This will include approval of site and building plan by the relevant Municipal body / Improvement Trust / RUDA, as the case may be.
A copy of the approval of District Level Committee will be sent by the GM to Udyog Sahayak within 7 days of approval by the Committee. The Udyog Sahayak will place the proposal within 21 days before the Empowered Committee for Industrial Approvals for the grant of provisional eligibility certificate to the applicant.
Upon completion of the project the developer will submit Composite application for issue of eligibility certificate (10 copies) in Annexure II along with application for permission to occupy / operate the multiplex, to the General Manager, District Industries Centre.
The General Manager will place the same within 15 days before the District Level Committee for grant of Licence under the Rajasthan Cinemas (Regulation) Rules, 1952 and permission to occupy the building.
Consequent upon the grant of licence / permission, the General Manager will send a copy of the application along with a copy of licence / permission within 7 days toUdyog Sahayak. The documents will be put up by Udyog Sahayak to the Principal Secretary Industries & Commerce within 10 days for conversion of provisional eligibility certificate into final eligibility certificate enabling the developer to take benefits mentioned hereunder in the scheme.
4. Development Controls
Development controls will be as per the bye-laws of
(a) Municipal bodies within the Municipal area except in areas developed by PUDA or Improvement Trust.
(b) Improvement Trust within the area developed by Improvement Trust.
(c) PUDA or any other Local Development Authority constituted under Rajasthan Regional and Town Planning & Development Act, 1995 in areas other than (a) and (b) above.
Provisions of the Rajasthan Cinemas (Regulations) Rules 1952 will also be strictly adhered to. It is, however, clarified that rule 19 of the Rajasthan Cinema Regulations Rules 1952 will apply to the multiplex buildings as a whole and not the individual cinema halls within it. Rule 20 of these Rules shall be relaxed to allow activities mentioned in the definition of Multiplex as per Clause 1 of this notification.
5. Benefits under the Industrial Policy
The following benefits will be available in respect of multiplexes for which a Certificate of Eligibility has been issued under the foregoing
provisions:-i) 100% exemption from entertainment tax for a period of five years from the date of issue of licence under the Rajasthan Cinema (Regulations) Act 1952, as per notification No.S.O./P.A.8/54/S.6/Amd./2003 dated 1st April, 2003 issued by Department of Excise & Taxation, Rajasthan.
ii) Power tariff rates as applicable to industry will be applicable, subject to approval by Rajasthan State Electricity Regulatory Commission.
iii) No transfer fee except stamp duty shall be leviable on the first sale of shopping area by the developer of the multiplex. However, on subsequent sale transfer fee as applicable at that time shall be leviable.
Iv) The owner of the multiplex be at liberty to fix ticket rates in relaxation of the Rajasthan Cinema (Regulation) Rules 1952.
6. Applicability
This Scheme is applicable to all multiplexes for which application under Clause III above is made after 1.4.2003.
S.C. Agrawal
Principal Secretary to Government, Rajasthan
ANNEXURE I Composite Application For Grant Of Permission To Construct New Multiplex/ Convert
Existing Cinema In To Multiplex.
To
The Chief Coordinator, Udyog Sahayak,
Sir,
I enclose, herewith my application for seeking requisite approval(s) for our project...THE PYRAMIDS MULTIPLEX...
1 hereby certify that the particulars given in this application and attached Annexure(s)are true and correct to the best of my knowledge and belief and that no material facts have been concealed.
Yours faithfully, Date : Signature... ... Name...SNS GROUP ... List of Enclosures:-1. ______A__________________________________ 2. ______B__________________________________ 3. ______C__________________________________ 4. ________D________________________________ 5. __________E______________________________
Application For Issue Of Provisional Eligibility Certificate For Multiplex
1. Name of Multiplex - THE PYRAMIDS
2. Location - VAISHALI NAGAR
3. Address for Correspondence - SHUBHAM SADAN ,
VAISHALI NAGAR
Phone - 9460605378
Fax - 0145-2640872
E-mail - multiplexpyramids@snsgroup,com
4. Details of Promoters
5. Total Area on which the multiplex - 4000 sq.feet 6. Percentage of covered area earmarked for entertainment - 80%
7. Mode of acquisition of land - CASH PURCHASE
8. Land cost - 4,80,00000 Rs.
9. Trial Project Cost. - 10 lakhs
10. Means of Finance - loans
11. Proposed date of commissioning of project. - 1 July 2010
12. No. of Cinema halls proposed. - 3
13. Seating capacity (Cinemawise) - 500
Date: 31/ 03/2010 Authorised Signatory
List of documents to be attached:
1. Memorandum of Article of Association / Certificate of in corporation of the Company or Certificate in Form –A issued by Registrar Firms along with partnership deed.
2. Attested copy of resolution of BOD/Power of Attorney in favour of Authorised Signatory. 3. Attested copy of conveyance deed/ Allotment letter / Lease deed of the land.
4. Project Report along with cost estimates certified by the Architect.
5. Letter from Bank/ Financial Institution for in principle approval to finance the project, if applicable.
Application For Permission To Construct Building For Multiplex. From ____sns group ________ _____________________ _____________________ To
The Competent Authority, _____________________ _____________________ _____________________
I/ We apply for permission to erect/ re-erect/ add to / alter a building for multiplex in accordance with the plans submitted herewith on site at __vaishali nagar _________ I/We attach herewith the following documents:
1. A site pan in triplicate showing the position of site proposed to be built. 2. Plans, elevation and sections of the proposed building.
3. Water supply, drainage plans structural stability certificate, scheme for the safety and fire-fighting system and equipment, electrical scheme and scheme for air-conditioning and air cooling as required under rules ibid.
4. Name and address of Architect / Engineer who will supervise the construction of building.
Date: 31/03/2010
Application For Permission For The Grant Of Temporary Licence Under The Rajasthan Cinema (Regulation) Rules 1952
From
_______sns group ___________ _______________________ _______________________ To
The Competent Authority,
_______________________ _______________________ _______________________
I/We apply for permission for the grant of licence for the Cinema Halls in our Multiplex located at ______Vaishali Nagar____
I/We attach herewith the following documents:
1. Full particulars regarding the ownership of, and all rights in, the premises and in the cinematograph apparatus to be used therein;
2. complete plans, elevations and sections in duplicate, of the premises and all erections or buildings thereon drawn correctly to the scale of one-eighth of an inch to one foot and showing the width of all stairways and the number of steps in each, the width of corridors, gangways and doorways, the height of the cinematograph and of the plant for the generation or conversion of electrical energy;
3. a site plan in duplicate on a separate sheet drawn to the scale of one-fortieth of a inch to one foot showing the position of the premises in relation to any adjacent premises and to the pubic thorough- fares upon which the site of the premises abuts, and the arrangements proposed for the parking of motor cars and others vehicles;
4. Specifications of the various materials proposed to be used in the construction of the buildings.
Government of Rajasthan Department of Industries & Commerce.
PROVISIONAL ELIGIBILITY CERTIFICATE FOR MULTIPLEX.
Reg. No________ Date_31/03/2010_________
M/s ______sns group ____________ are eligible for construction of new multiplex/conversion of existing cinema hall into multiplex at ___________. The multiplex will be set up in an area of ___________ with investment of Rs _________crore. The multiplex wil have _____% area for entertainment and will have _______Cinema halls with capacity _________seats each. The likely date of completion of the project is ________.
This certificate is valid during the construction period only.
for Director of Industries & Commerce Endst No. _______________ Dated _______________
A copy is sent to the following for information & necessary action:
i) M/s________________________ with reference to their application dated____________.
ii) The Chief Administration RUDA / Commissioner Municipal Corporation ____________.
iii) The Deputy Commissioner ____________.
iv) The General Manager, District Industries Centre ____________. v) The Excise & Taxation Commissioner
ANNEXURE II Composite Application For Issue Of Eligibility Certificate For Multiplex
To
The Chief Coordinator, Udyog Sahayak,
Sir,
I enclose, herewith my application for seeking requisite approval(s) for our project ...
1 hereby certify that the particulars given in this application and attached Annexure(s) are true and correct to the best of my knowledge and belief and that no material facts have been concealed.
Yours faithfully, Date : Signature... ... Name... ... List of Enclosures:-1. ________________________________________ 2. ________________________________________ 3. ________________________________________ 4. ________________________________________ 5. ________________________________________
Application For Eligibility Certificate By Industries Department
1. Name of Multiplex - THE PYRAMIDS
2. Location - VAISHALI NAGAR
3. Address for Correspondence - SHUBHAM SADAN ,
VAISHALI NAGAR
Phone - 9460605378
Fax - 0145-2640872
E-mail - multiplexpyramids@snsgroup,com
4. Details of Promoters
5. Total Area on which the multiplex - 4000 sq.feet 6. Percentage of covered area earmarked for entertainment - 80%
7. Mode of acquisition of land - CASH PURCHASE
8. Land cost - 4,80,00000 Rs.
9. Trial Project Cost. - 10 lakhs
10. Means of Finance - loans
11. Proposed date of commissioning of project. - 1 July 2010
12. No. of Cinema halls proposed. - 3
13. Seating capacity (Cinemawise) - 500
Date: 31/ 03/2010 Authorised Signatory
List of documents to be attached:
1. Provisional Eligibility Certificate issued by Department of Industries.
2. Memorandum of Article of Association / Certificate of in corporation of the Company or Certificate in Form – An issued by Registrar Firms along with partnership deed.
3. Attested copy of resolution of BOD/Power of Attorney in favour of Authorised Signatory . 4. Attested copy of conveyance deed/ Allotment letter / Lease deed of the land.
5. Project Report duly approved and appraised by the Bank/financial Institution. 6. Certificate of Architect / Engineer about actual cost of the project.
7. Statement of actual expenditure on implementation of the project certified by a Chartered Accountant.
AFFIDAVIT
I/We _________________do here solemnly affirm that I / We have are sole proprietor / partner / director of M/s.__________________________________ and that contents given in my / our application for grant of eligibility certificate are correct. I / We shall be liable to face penal action in case any information / past of information is found wrong/ incorrect at any stage.
I/We also undertake to abide by all the term & conditions/rules/ regulations mentioned under the scheme for the development of multiplex notified by the State Government.
Application For Permission To Occupy Building For Multiplex. From _____________________ _____________________ _____________________ To
The Competent Authority, _____________________ _____________________ _____________________ Sir,
I/We hereby give you notice that the building of the Multiplex sanctioned with your order No.__________ dated _____________ has been completed on ______________ in all respects according to the provisions of the Rajasthan Regional and Town Planning and Development Act, 1955 and the rules made there under and sanctioned plans, and the suggested modifications have been carried out.
2. Completion Certificate from the registered architect/engineer who supervised the construction of the building and a completion certificate from the registered plumber are submitted herewith.
3. Kindly permit me / us to occupy the building as required by rule 11 of the Rajasthan Urban Planning and Development Authority (Building) Rules, 1966.
Description of Building Area
Application For Permission For The Grant Of Licence Under The Rajasthan Cinema (Regulation) Rules 1952
From
_______________________ _______________________ _______________________ To
The Competent Authority,
_______________________ _______________________ _______________________
I/We apply for permission for the grant of licence for the Cinema Halls in our multiplex located at _____________
I/We attach herewith the following documents:
1. Full particulars regarding the ownership of, and all rights in, the premises and in the cinematograph apparatus installed therein;
2. Certificate from registered Architect/ Engineer regarding completion of building as per drawings submitted earlier.
3. Certificate from Chief Electrical Inspector / Chartered Engineer regarding electric installation as notified by State Government.
Application For Exemption From Entertainment Tax From ___________________ ___________________ ___________________ To
The Excise & Taxation Officer, _______________________
Sir,
I/We have set up a multiplex at ____________. The complex wills have_________ Cinema halls with seating capacity of ______ each. The admission rates for these would be as follows:
The multiplex will be operational from ____________.
You are requested to issue us certificate for exemption from entertainment tax for a period of five years from __________ in accordance with the scheme for development of multiplex notified by State Government vide No.__________________ dated _________.
Date: Authorised Signatory/ ies Document enclosed:
i. Attested copy of eligibility certificate issued by Industries Department.
Government of Rajasthan Department of Industries & Commerce
Eligibility Certificate for Multiplex
No : ___________ Dated:___________
M/s _____________________have completed the Multiplex at __________________ on ___________area of land with investment of Rs ___________. The complex has ____________Cinema halls with seating capacity of ____________each.
The multiplex would be entitled to benefits under the scheme for developments of multiplex notified by Sate Govt. vide No.____________dated ________.
Director of Industries & Commerce, Rajasthan.
Endst. No. _______________ Dated___________ A copy is sent to the following for information & necessary action:
vi) M/s________________________ with reference to their application dated____________.
vii) The Chief Administration RUDA / Commissioner Municipal Corporation ____________. viii) The Deputy Commissioner ____________.
ix) The General Manager, District Industries Centre ____________. x) The Excise & Taxation Commissioner
Analysis of questionnaire
:-price band no of respondents
100-300 94
300-500 6
500-800 0
above 800 0
price band of tickets
0 0 0 0 94 6 0 0 0 20 40 60 80 100
price band of tickets
n o . o f re s p o n d e n ts price band no of respondents
distance no. of respondents
1-5 kms 41 5-10 kms 25 10-15kms 4 15+ 3 doesn’t matter 27 distance analysis 41% 25% 4% 3% 27% 1-5 kms 5-10 kms 10-15kms 15+ doesn’t matter location no of respondents vaishali nagar 41 jaipur road 29 adarsh nagar 11 beawar road 12 others 7
41% 29% 11% 12% 7% vaishali nagar jaipur road adarsh nagar beawar road others
expected features inside multiplex no of respondents
virtual cinema 33
3 D cinema 15
digital dolby 15
electric fly catchers and smell filters 8
high quality screen 29
33 15 15 8 29 0 5 10 15 20 25 30 35
virtual cinema 3 D cinema digital dolby electric fly catchers and smell filters
high quality screen Series1 Series2 Series3 Series4
expected features inside multiplex no. of respondents
multi cuisine restaurant 23
shopping arcade 33
amusing park 12
saloon and spas 5
features at multiplex 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 23% 33% 12% 5% 27%
multi cuisine restaurant shopping arcade amusing park saloon and spas branded restaurants
value added services no of respondents
mobile e ticketing 41
on the door ticket delivery 25
home pick and drop 10
ticket counter facility 24
value added services
41 25 10 24 0 5 10 15 20 25 30 35 40 45 mobile e ticketing on the door ticket delivery home pick and drop ticket counter facility service n o o f re sp o n d en ts Series3 Series2 Series1
mode of advertisement no of respondents
newspapers 24
leaflets in newspapers 7
hoardings and banners 20
local channel advertisements 17
local channnel news 14
24 7 20 17 14 18 0 5 10 15 20 25
newspapers hoardings and
banners local channnel news Series1 Series2 Series3
movie in theatre no of respondents
once in a week 3
once in a month 35
once in a year 11
once In a fortnight 10
once in a quarter 41
movie watch in theatre
3% 35% 11% 10% 41% once in a week once in a month once in a year once In a fortnight once in a quarter
why multiplex are better source of entertainment no of respondents
ambience 7 safety 6 service 35 price 6 choice of movies 29 technology 17
7 6 35 6 29 17 0 5 10 15 20 25 30 35 40 ambie nce safe ty serv ice price choic e of mov ies tech nolog y Series1 Series2 Series3 Series4
Unique features of THE PYRAMIDS
:-- We have decided to built our multiplex on an area of 4000
sq feet in Dasana and the cost of purchasing that area
came out to be Rs four lakh eighty crore .
- In the Pyramid , we will be having 3 floors and a
basement that will serve as a parking space .
-- at the ground floor , we have decided to have a branded
- at the first floor , we will have a multicuisine restaurant
and a shopping arcade .
- at the top floor we will have the three screens of the
Pyramids .
- special seating arrangement facility will be there in which
the whole family can be seated in a row .
-- we are having a modern canteen that will be providing on
the seat food service to the movie lovers .
- we are having the good quality screen with virtual cinema
experience and 3-D screen . the dolby screen is there that
will give a surround sound system .
- there will be leg room facility also for stretching the legs .
- escalators are also there to give it an ease of moving
- we will be doing our advertising through newspapers ,
hoardings and banner , local fm and radio channel and
also through sareh rah.
- will be providing on the door ticket delivery service and
home pick and drop facility .
PROJECTED COST BENEFIT
ANALYSIS
PARTICULARS
AMOUNT IN Rs
SOURCES OF FUND CASH IN HAND 50,00,000 CASH IN BANK 8,00,00,000 TOTAL M 85000000 FIXED ASSETS LAND 48000000 BUILDING 40000000MACHINERY PROJECTS ,COMPUTERS 7700000
FURNITURE 5000000
ELECTRICAL 1500000
ESCALATORS 7500000
TRANSPORTATION CARS VANS 1200000
GENERATORS 12500000
ARCHITECT COST 2500000
TOTAL
A 125900000
MISCELLANEOUS EXPENSES
CURTAINS AND CARPETS 4000000
FINISHING EXPENSES PAINTS ETC 4000000
PREMIUM 10000000
PROJECT APPROVAL COST 5760000
TOTAL B 23760000 CURRENT LIABILITIES COMMISSION PAID 144000 SALARIES 2238000 ADVERTISING COST 5000000
MOVIE RIGHT PURCHASE COST 6,000,000
INSTALLMENT PER YEAR 14000000
INTEREST ON INSTALLMENT@8% 1,120,000 TELEPHONE BILL 250,000 WATER BILL 5,000,000 ELECTRICITY BILL 40,000,000 TOTAL C 73752000
REVENUE ANALYSIS
SALE OF SPACE FOR
:-AMUSING PARK 20000000
MULTI CUISINE RESTAURANT 20000000
TOTAL
a 40,000,000
PER YEAR REVENUE GENERATION
RENT FROM
:-SALOON AND SPAS 250,000
BRANDED RESTAURANT 600000
PARKING SPACE 2340000
CANTEEN 360000
SHOPPING ARCADE 1000000
REVENUE FROM TICKETS 69750000
ADVERTISING REVENUE 2500000
TOTAL
b 76,800,000
BREAK EVEN ANALYSIS
=FC / PV RATIO
PV
RATIO = C/S*100
CALCULATION OF FIXED COST- = A+B-M-a = 24660000 Rs
CALCULATION OF CONTRIBUTION = SALES -VARIABLE COST
b-C = 3048000 Rs
SALES = b = 76800000 Rs
PV RATIO = 3.97%
BEP SALES = Rs 621158690.2
SO BEP POINT WILL BE REACHED IN
8
yearsNote 1 -: Areas like elevators, ticket counters ,ticket jackets, seats, floors, walls, popcorn containers ,and washrooms were never used by traditional cinemas for advertising are being exploited now.