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This partticular pre-fe

easibility is re
egarding So
ound Box & DJ System.

The obje
ective of the
e pre-feasibility report is primarily to facilitate potential en
ntrepreneurss in
project id
dentification for investment and in o
order to serv
ve his objecctive; the do
ocument covvers
various aspects of the projecct concept development, start-up, marketing
g, finance and
a
managem
ment.

[We can modify the project cap

pacity and prroject cost as
a per your requirement. We can also
a
prepare project
p report on any subject as per your require
ement.]

Lucknow O Office: Sidhivin

nayak Building ,
27/1/B, Gokhlley Marg, Lucknow-226001
L 1

Delhi Officce : Multi Discip

plinary Trainin
ng
Centre, Gaandhi Darshan Rajghat,
New Delhi 110002

Email : [email protected]
Contact : ++91 75260003333, 444, 555
 PROJECT AT A GLANCE

1 Name of the Entreprenuer xxxxxxxxxx

2 Constitution (legal Status) xxxxxxxxxx

3 Father / Spouse Name xxxxxxxxxxxx

4 Unit Address : xxxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxxxxxxx
Mobile xxxxxxx

5 Product and By Product : SOUND BOX & DJ SYSTEM

6 Name of the project / business activity proposed : SOUND BOX & DJ SYSTEM UNIT

7 Cost of Project : Rs.11.44 Lakhs

8 Means of Finance
Term Loan Rs.6.3 Lakhs
Own Capital Rs.1.14 Lakhs
Working Capital Rs.4 Lakhs

9 Debt Service Coverage Ratio : 3.19

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 36%

13 Employment : 9 Persons

14 Power Requirement : 2.00 HP

15 Major Raw materials : Plywood, Speaker Coil, Black Sheet, Other Consumables

16 Estimated Annual Sales Turnover (Max Capacity) : 138.27 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Building /Shed 1000 Sq ft 4.00
Plant & Machinery 2.00
Furniture & Fixtures 1.00
Working Capital 4.44
Total 11.44

MEANS OF FINANCE
Particulars Amount
Own Contribution 1.14

Working Capital(Finance) 4.00

Term Loan 6.30

Total 11.44
 SOUND BOX & DJ SYSTEM

Introduction: A sound box or sounding box is an open chamber in the

body of a musical instrument which modifies the sound of the instrument, and
helps transfer that sound to the surrounding air. Objects respond more
strongly to vibrations at certain frequencies, known as resonances. The
frequency and strength of the resonances of the body of a musical instrument
have a significant impact on the tone quality it produces. The air inside
the chamber has its own resonances, and these interact with the resonances of
the body, altering the resonances of the instrument as a whole. A sound
system is a group of DJs and studio engineers contributing and working
together as one, playing and producing music over a large PA system or sound
reinforcement system, typically for a dance event or party.

Type of Products sold:

 DJ Set: DJ mix or DJ mix set is a sequence of musical tracks typically

mixed together to appear as one continuous track. DJ mixes are usually
performed using a DJ mixer and multiple sounds sources, such as
turntables, CD players, digital audio players or computer sound cards,
sometimes with the addition of samplers and effects units, although it is
possible to create one using sound editing software.
DJ sets are available in the market in different types like:
 1. 10 inch DJ set
2. 12 Inch DJ set (most popular)
3. 15 Inch
4. 18 inch DJ set & so on…

 Amplifier: An amplifier, electronic amplifier or amp is an electronic

device that can increase the power of a signal (a time-varying voltage or
current). It is a two-port electronic circuit that uses electric power from
a power supply to increase the amplitude of a signal applied to its input
terminals, producing a proportionally greater amplitude signal at its
output. The amount of amplification provided by an amplifier is
measured by its gain the ratio of output voltage, current, or power to
input. Types of amplifier available in the market are 300 W, 500 W,
1000 W, 2000 W, 3000 W, etc.

 Horn: An acoustic horn or waveguide is a tapered sound guide

designed to provide an acoustic impedance match between a sound
source and free air. This has the effect of maximizing the efficiency with
which sound waves from the particular source are transferred to the air.
Conversely, a horn can be used at the receiving end to optimize the
transfer of sound from the air to a receiver.

 DJ Light: DJ lighting is a variant of stage lighting that is used by

mobile DJs and in nightclubs. DJ lighting is generally used by mobile
disco DJs and in most modern nightclubs and many late-night bars.
There are many different types of DJ lighting such as scanners which use
a mirror to reflect beams of light that move around, twister-style effects
that project multiple beams of light that rotate in a twisting style and
also strobe lighting that flash intensely.

 Mic: A microphone, colloquially named mic or mike (is a device – a

transducer – that converts sound into an electrical signal. Microphones
are used in many applications such as telephones, hearing aids, public
address systems for concert halls and public events, motion picture
production, live and recorded audio engineering, sound recording, two
way radios, megaphones, radio and television broadcasting, and in
computers for recording voice, speech recognition, VoIP, and for non-
acoustic purposes such as ultrasonic sensors or knock sensors.
Equipments Required:

S No. Name Quantity Amount

1 Generator 1 150000
2 Electronic Kit 1 20000
3 Cutter machine & tools 1 20000
4 Other tools Ls 10000
Total Amount 200000

Raw material Requirement: Raw material is required only for the DJ

set other products were directly purchase from the market and sold to the
clients. Which are as follow:
1. Plywood: Cost Rs. 1500 per DJ Set
2. Speaker Coil: Cost Rs. 1500 per DJ Set
3. Black Sheet: Cost per Bundle approx. Rs. 6000
4. Other consumables such as Wire, Tools, Nail, Fevicol.

Note: Average raw material cost for 12 inch DJ Speaker is approx. Rs 3500
per piece. DJ Sets are generally sold in pairs (2 Speaker combine). Total raw
material cost for 1 Pair DJ Set is Rs. 7000.
In this report DJ System constitutes 2 DJ Speaker(1 Set), 1 Mic, 1
Amplifier(Average 3000 W), DJ Light and Horn. Therefore, total cost per DJ
System including raw material and purchase cost of other parts is taken as
Rs. 25000-35000 (Approx.)

Area: The industrial setup requires space for Inventory, workshop or

manufacturing area, space for power supply utilities and auxiliary like
Generator setup. Also some of the area of building is required for office staff
facilities, documentation, office furniture, etc. Thus, the approximate total area
required for complete industrial setup is 1000 to 1500Sqft. Civil work cost
will be Rs 4 Lac (Approx.)
Power Requirement: The power consumption required to run all the
machinery could be approximated as 2 Hp

Manpower Requirement: There are requirement of skilled machine

operators to run the machine set. Experience quality engineers are required
for desired quality control. Some helpers are also required to transfer the
material from one work station to other. Office staffs are required to maintain
the documentation. The approximate manpower required is 9 including 1
Supervisor, 2 unskilled worker, 2 Helper and 1 Security guard. 3 Skilled
worker including Accountant, Manager and Sales person.

Bank Term Loan: Rate of Interest is assumed to be at 11%

Depreciation: Depreciation has been calculated as per the Provisions of

Income Tax Act, 1961

Approvals & Registration Requirement:

Basic registration required in this project:

 GST Registration
 Udyog Aadhar Registration (Optional)
 Choice of a Brand Name of the product and secure the name with
Trademark if require.
 NOC from State Pollution Control Board
Implementation Schedule:
S No. Activity Time required
1. Acquisition of premises 1-2 Months
2. Procurement & installation of Plant & Machinery 1-2 Months
3. Arrangement of Finance 1.5-2 Months
4. Requirement of required Manpower 1 Month
5. Commercial Trial Runs 1 Month
Total time Required (some activities shall run 5-6 Months
concurrently)

FINANCIALS
PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 1.14 -

Reserve & Surplus 2.43 3.65 4.67 5.61 6.52
Depriciation & Exp. W/off 0.80 0.71 0.62 0.55 0.48
Increase In Cash Credit 4.00
Increase In Term Loan 6.30 - - - -
Increase in Creditors 3.75 0.46 0.47 0.49 0.50

TOTAL : 18.42 4.81 5.76 6.65 7.51

APPLICATION OF FUND

Increase in Fixed Assets 7.00 - - - -

Increase in Stock 6.39 0.77 0.79 0.81 0.84
Increase in Debtors 2.70 0.41 0.34 0.35 0.36
Repayment of Term Loan 0.70 1.40 1.40 1.40 1.40
Taxation - - - 0.56 0.98
Drawings 1.00 2.00 3.00 3.50 3.80
TOTAL : 17.78 4.58 5.53 6.62 7.37

Opening Cash & Bank Balance - 0.64 0.87 1.10 1.13

Add : Surplus 0.64 0.23 0.23 0.02 0.13

Closing Cash & Bank Balance 0.64 0.87 1.10 1.13 1.26
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 2.57 4.22 5.89 7.44
Add: Additions 1.14 - - - -
Add: Net Profit 2.43 3.65 4.67 5.05 5.54
Less: Drawings 1.00 2.00 3.00 3.50 3.80
Closing Balance 2.57 4.22 5.89 7.44 9.18
CC Limit 4.00 4.00 4.00 4.00 4.00
Term Loan 5.60 4.20 2.80 1.40 -
Sundry Creditors 3.75 4.21 4.68 5.17 5.67

TOTAL : 15.92 16.63 17.37 18.00 18.85

APPLICATION OF FUND

Fixed Assets ( Gross) 7.00 7.00 7.00 7.00 7.00

Gross Dep. 0.80 1.51 2.13 2.68 3.16
Net Fixed Assets 6.20 5.50 4.87 4.32 3.84

Current Assets
Sundry Debtors 2.70 3.11 3.45 3.79 4.15
Stock in Hand 6.39 7.15 7.94 8.76 9.60
Cash and Bank 0.64 0.87 1.10 1.13 1.26

15.92 16.63 17.37 18.00 18.85

TOTAL :

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 89.90 103.64 114.88 126.43 138.27

Total (A) 89.90 103.64 114.88 126.43 138.27

B) COST OF SALES

Raw Material Consumed 75.00 84.15 93.60 103.35 113.40

Elecricity Expenses 0.40 0.44 0.48 0.52 0.56
Repair & Maintenance 0.63 1.04 1.15 1.26 1.38
Labour & Wages 8.19 8.60 9.03 9.48 9.91
Depreciation 0.80 0.71 0.62 0.55 0.48

Cost of Production 85.02 94.93 104.88 115.17 125.74

Add: Opening Stock /WIP - 2.64 2.95 3.26 3.59

Less: Closing Stock /WIP 2.64 2.95 3.26 3.59 3.93

Cost of Sales (B) 82.39 94.62 104.57 114.84 125.40

C) GROSS PROFIT (A-B) 7.51 9.01 10.31 11.58 12.87

8.36% 8.69% 8.98% 9.16% 9.31%
D) Bank Interest (Term Loan ) 0.68 0.56 0.40 0.25 0.10
ii) Interest On Working Capital 0.44 0.44 0.44 0.44 0.44
E) Salary to Staff 3.78 4.16 4.57 5.03 5.53
F) Selling & Adm Expenses Exp. 0.18 0.21 0.23 0.25 0.28

TOTAL (D+E) 5.08 5.36 5.65 5.97 6.35

H) NET PROFIT 2.43 3.65 4.67 5.61 6.52

I) Taxation - - - 0.56 0.98

J) PROFIT (After Tax) 2.43 3.65 4.67 5.05 5.54

COMPUTATION OF MAKING OF SOUND BOX & DJ SYSTEM

Item to be Manufactured Sound Box & DJ System

Average sale per day 2 Set

No. of Working Hour 12

No of Working Days per month 25

No. of Working Day per annum 300

Total Production per Annum 600 Set

Total Production per Annum 600 Set
SOUND BOX &
Year Capacity DJ SYSTEM
Utilisation

I 50% 300.00
II 55% 330.00
III 60% 360.00
IV 65% 390.00
V 70% 420.00

Raw Material Consumed Capacity Rate per Set Amount (Rs.)

Utilisation

I 50% 25000.00 75.00

II 55% 25500.00 84.15
III 60% 26000.00 93.60
IV 65% 26500.00 103.35
V 70% 27000.00 113.40
COMPUTATION OF SALE
Particulars I II III IV V

Op Stock - 10.00 11.00 12.00 13.00

Production 300.00 330.00 360.00 390.00 420.00

300.00 340.00 371.00 402.00 433.00

Less : Closing Stock(10 Days) 10.00 11.00 12.00 13.00 14.00

Net Sale 290.00 329.00 359.00 389.00 419.00

Sale Price per Set 31,000.00 31,500.00 32,000.00 32,500.00 33,000.00

Sale (in Lacs) 89.90 103.64 114.88 126.43 138.27

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(10 Days requirement) 2.64 2.95 3.26 3.59 3.93
Raw Material
(15 Days requirement) 3.75 4.21 4.68 5.17 5.67

Closing Stock 6.39 7.15 7.94 8.76 9.60

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 6.39
Less:
Sundry Creditors 3.75
Paid Stock 2.64 0.26 2.37

Sundry Debtors 2.70 0.27 2.43

Working Capital Requirement 4.80

Margin 0.53

MPBF 4.80
Working Capital Demand 4.00
BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary

Supervisor 15,000.00 1 15,000.00

Unskilled Worker 12,000.00 2 24,000.00
Helper 10,000.00 2 20,000.00
Security Guard 6,000.00 1 6,000.00

65,000.00
Add: 5% Fringe Benefit 3,250.00
Total Labour Cost Per Month 68,250.00
Total Labour Cost for the year ( In Rs. Lakhs) 6 8.19

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary
Manager 12,000.00 1 12,000.00
Accountant cum store keeper 10,000.00 1 10,000.00
Sales 8,000.00 1 8,000.00
Total Salary Per Month 30,000.00

Add: 5% Fringe Benefit 1,500.00

Total Salary for the month 31,500.00

Total Salary for the year ( In Rs. Lakhs) 3 3.78

COMPUTATION OF DEPRECIATION

Plant &
Description Land Building/shed Machinery Furniture TOTAL

Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - -
Addition - 4.00 2.00 1.00 7.00
- 4.00 2.00 1.00 7.00
- - -
TOTAL 4.00 2.00 1.00 7.00
Less : Depreciation - 0.40 0.30 0.10 0.80
WDV at end of Ist year - 3.60 1.70 0.90 6.20
Additions During The Year - - - - -
- 3.60 1.70 0.90 6.20
Less : Depreciation - 0.36 0.26 0.09 0.71

WDV at end of IInd Year - 3.24 1.45 0.81 5.50

Additions During The Year - - - - -
- 3.24 1.45 0.81 5.50
Less : Depreciation - 0.32 0.22 0.08 0.62
WDV at end of IIIrd year - 2.92 1.23 0.73 4.87
Additions During The Year - - - - -
- 2.92 1.23 0.73 4.87
Less : Depreciation - 0.29 0.18 0.07 0.55
WDV at end of IV year - 2.62 1.04 0.66 4.32
Additions During The Year - - - - -
- 2.62 1.04 0.66 4.32
Less : Depreciation - 0.26 0.16 0.07 0.48
WDV at end of Vth year - 2.36 0.89 0.59 3.84
 REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 6.30 6.30 0.17 - 6.30
Iind Quarter 6.30 - 6.30 0.17 - 6.30
IIIrd Quarter 6.30 - 6.30 0.17 0.35 5.95
Ivth Quarter 5.95 - 5.95 0.16 0.35 5.60
0.68 0.70
II Opening Balance
Ist Quarter 5.60 - 5.60 0.15 0.35 5.25
Iind Quarter 5.25 - 5.25 0.14 0.35 4.90
IIIrd Quarter 4.90 - 4.90 0.13 0.35 4.55
Ivth Quarter 4.55 4.55 0.13 0.35 4.20
0.56 1.40
III Opening Balance
Ist Quarter 4.20 - 4.20 0.12 0.35 3.85

Iind Quarter 3.85 - 3.85 0.11 0.35 3.50

IIIrd Quarter 3.50 - 3.50 0.10 0.35 3.15
Ivth Quarter 3.15 3.15 0.09 0.35 2.80
0.40 1.40
IV Opening Balance
Ist Quarter 2.80 - 2.80 0.08 0.35 2.45
Iind Quarter 2.45 - 2.45 0.07 0.35 2.10
IIIrd Quarter 2.10 - 2.10 0.06 0.35 1.75
Ivth Quarter 1.75 1.75 0.05 0.35 1.40
0.25 1.40
V Opening Balance
Ist Quarter 1.40 - 1.40 0.04 0.35 1.05
Iind Quarter 1.05 - 1.05 0.03 0.35 0.70
IIIrd Quarter 0.70 - 0.70 0.02 0.35 0.35

Ivth Quarter 0.35 0.35 0.01 0.35 0.00

0.10 1.40

Door to Door Period 60 Months

Moratorium Period 6 Months
Repayment Period 54 Months
CALCULATION OF D.S.C.R

PARTICULARS I II III IV V

CASH ACCRUALS 3.23 4.35 5.29 5.60 6.03

Interest on Term Loan 0.68 0.56 0.40 0.25 0.10

Total 3.91 4.91 5.69 5.85 6.12

REPAYMENT
Repayment of Term Loan 0.70 1.40 1.40 1.40 1.40
Interest on Term Loan 0.68 0.56 0.40 0.25 0.10

Total 1.38 1.96 1.80 1.65 1.50

DEBT SERVICE COVERAGE RATIO 2.83 2.51 3.16 3.54 4.09

AVERAGE D.S.C.R. 3.19

COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required HP 2
Load Factor 0.7460
Electricity Charges per unit 7.50
Total Working Days 300
Electricity Charges 26,856.00

Add : Minimim Charges (@ 10%)

(B) DG set
No. of Working Days 300 days
No of Working Hours 0.3 Hour per day
Total no of Hour 90
Diesel Consumption per Hour 8
Total Consumption of Diesel 720
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel 0.47

Add : Lube Cost @15% 0.07

Total 0.54

Total cost of Power & Fuel at 100% 0.81

Year Capacity Amount

(in Lacs)

I 50% 0.40
II 55% 0.44
III 60% 0.48
IV 65% 0.52
V 70% 0.56
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume no financial liability to anyone using the content for any purpose. All the
materials and content contained in Project report is for educational purpose and
reflect the views of the industry which are drawn from various research material
sources from internet, experts, suppliers and various other sources. The actual
cost of the project or industry will have to be taken on case to case basis
considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is
intended for general guidance only and must not be considered a substitute for a
competent legal advice provided by a licensed industry professional. SAMADHAN
hereby disclaims any and all liability to any party for any direct, indirect, implied,
punitive, special, incidental or other consequential damages arising directly or
indirectly from any use of the Project Report Content, which is provided as is, and
without warranties.