An Entrepreneurship Project

8/6/2019 An Entrepreneurship Project

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ENTREPRENEURSHIP

Entrepreneurship has been identified by many researchers as a major driving

force of a free market economy. However, it was only recently that economists

began to synthesize the knowledge about entrepreneurship and analyze its

impact on economic growth. This new interest in entrepreneurship appears to

have been triggered by research and development (R&D) and innovation

developments. Many countries, particularly in Europe, that have had significant

increases in R&D and innovation expenditures over the last two decades have

not experienced the boost to economic growth they were expecting from such

investment. Some empirical studies also question the positive relationship found

between R&D and innovation expenditures, and economic performance .

According to these studies, the rate of return on R&D and innovation

expenditures typically quoted appears to be implausibly high. There are clearly

a number of other influences that affect any direct empirical relationship

between knowledge inputs and economic outputs at either firm level or country

level. Many researchers now believe that the missing link could be the

entrepreneur.


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HISTORY OF ENTREPRENEURSHIP

Throughout the theoretical history of entrepreneurship, scholars from multiple

disciplines in the social sciences have grappled with a diverse set of

interpretations and definitions to conceptualize this abstract idea. Over time,

"some writers have identified entrepreneurship with the function of uncertainty -

bearing, others with the coordination of productive resources, others with the

introduction of innovation, and still others with the provision of capital"

(Hoselitz, 1952). The term "entrepreneur" was first introduced by the early 18th

century French economist Richard Cantillon. In his writings, he formally

defines the entrepreneur as the "agent who buys means of production at certain

prices in order to combine them" into a new product (Schumpeter, 1951).

Shortly thereafter, the French economist J.B. Say added to Cantillon's definition

by including the idea that entrepreneurs had to be leaders. Mill goes out of his

way to stress the significance of entrepreneurship for economic growth. In his

writings, Mill claims that entrepreneurship requires "no ordinary skill," and he

laments the fact that there is no good English equivalent word to encompass the

specific meaning of the French term entrepreneur (Schumpeter, 1951).

Unfortunately, although many economists agree that entrepreneurship is

necessary for economic growth, they continue to debate over t he actual role that

entrepreneurs play in generating economic growth. One school of thought on

entrepreneurship suggests that the role of the entrepreneur is that of a risk -

bearer in the face of uncertainty and imperfect information. Although many


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current theories on entrepreneurship agree that there is an inherent component

of risk, the risk-bearer theory alone cannot explain why some individuals

become entrepreneurs while others do not. For example, following from Knight,

Mises claims any person who bears the risk of losses or any type of uncertainty

could be called an entrepreneur under this narrow -definition of the entrepreneur

as the risk-bearer (Swoboda, 1983). Thus, in order to build a development

model of entrepreneurship it is necessary to look at some of the other

characteristics that help explain why some people are entrepreneurs; risk may be

a factor, but it is not the only one. Thus, the necessary characteristic of the

entrepreneur is alertness, and no intrinsic skills-other than that of recognizing

opportunities-are necessary. Other economists in the innovation school side

more with Mill and Marshall than with Kirzner; they claim that entrepreneurs

have special skills that enable them to participate in the process of innovation.

By combining the above disparate theories, a generalized set of

entrepreneurship qualities can be developed. In general, entrepreneurs are risk -

bearers, coordinators and organizers, gap-fillers, leaders, and innovators or

creative imitators. Although this list of characteristics is by no means fully

comprehensive, it can help explain why some people become entrepreneurs

while others do not. Thus, by encouraging these qualities and abilities,

governments can theoretically alter their country's supply of domestic

entrepreneurship.


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THE ENTREPRENEUR

An entrepreneur is a person who has possession over a new enterprise or venture

and assumes full accountability for the inherent risks and the outcome. The term is a

loanword from French and was first defined by the Irish economist Richard Cantillon.

A female entrepreneur is sometimes known as an entrepreneurs. However, with the

word "entrepreneurs" being the French feminine form of entrepreneur, its usage in

English in delineating sexes detracts from the meaning of the word "Entre preneur."

Entrepreneur in English is a term applied to the type of personality who is willing to

take upon her or himself a new venture or enterprise and accepts full responsibility

for the outcome.

The modern myths about entrepreneurs include the idea that they assume the

risks involved to undertake a business venture, but that interpretation now

appears to be based on a false translation of Cantillon's and Say's ideas. The

research data indicate that successful entrepreneurs are actually risk averse.

They are successful because their passion for an outcome leads them to organize

available resources in new and more valuable ways. In doing so, they are said to

efficiently and effectively use the factors of production. Those factors are now

deemed to include at least the following elements: land(natural resources), labor

(human input into production using available resources), capital (any type of

equipment used in production i.e. machinery), intelligence and knowledge, and

creativity. A person who can efficiently manage these factors in pursuit of a real

opportunity to add value in the long-run, may expand (future prospects of larger

firms and businesses), and become successful.


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Entrepreneurship is often difficult and tricky, as many new ventures fail.

Entrepreneur is often synonymous with founder. Most commonly, the term

entrepreneur applies to someone who creates value by offering a product or

service. Entrepreneurs often have strong beliefs about a market opportunity and

organize their resources effectively to accomplish an outcome that changes

existing interactions.

Some observers see them as being willing to accept a high level of personal,

professional or financial risk to pursue that opportunity, but the emerging

evidence indicates they are more passionate experts than gamblers.

Business entrepreneurs are viewed as fundamentally important in the capitalistic

society. Some distinguish business entrepreneurs as either "political

entrepreneurs" or "market entrepreneurs," while social entrepreneurs' principal

objectives include the creation of a social and/or environmental benefit .

WHAT IS ENTREPRENEURSHIP?Entrepreneurship is a process undertaken by an entrepreneur to augment his

business interests. It is an exercise involving innovation and creativity that l eads

towards establishing his/her enterprise. One of the qualities of entrepreneurship

is the ability to discover an investment opportunity and to organize an

enterprise, thereby contributing to real economic growth. It involves taking of

risks and making the necessary investments under conditions of uncertainty and

innovating, planning, and taking decisions so as to increase production in

agriculture, business, industry etc. Entrepreneurship is a composite skill, the

resultant of a mix of many qualities and traits - these. Include tangible factors as


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imagination, readiness to take risks, ability to bring together and put to use other

factors of production capital, labor, land, as also intangible factors such as the

ability to mobilize scientific and technological advances. A practical approach is

necessary to implement and manage a project by securing the required licenses,

approvals and finance from governmental and financial agencies. The personal

incentive is to make profits from the successful management of the project. A

sense of cost consciousness is even more necessary for the long -term success of

the enterprise. However, both are different sides of the same coin.

Entrepreneurship lies more in the ability to minimize the use of resources and to

put them to maximum advantage. Without an awareness of quality and desire

for excellence, consumer acceptance cannot be achieved and sustained.

NEED OF ENTREPRENEURSHIPEntrepreneurs play an important role in developing and contributing to the

economy of a nation. It is all the more in a developing world where are ample

opportunities for innovations to exploit the available resources and initiate

entrepreneurial ventures. But the emergence of entrepreneurship in all countries

and in all parts of any country is not usually even. Commonly we see more

entrepreneurs in comparatively more developed areas. Another paradox exists in

terms of increasing number of unemployed population, seeking wage earners

career and unaware of the wide opportunities for entrepreneurial c areer. This is,

by and large, because of lack of education about entrepreneurship.

The business entrepreneur, the archetypal enterprising person, has become the

focus of interest in many nations as an instigator of social and economic change.

The search is on for more and better ways of creating enterprising people and

specially for developing entrepreneurs. For this, the role of education and

training is typically very important. Education is a strong influencing media that


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sets values, develops attitude s and motivation and induce people to acquire

skills and competencies to achieve goals. The word education can be linked to

the word enterprise in three ways

Education about enterprise in which the role of education is in raising

awareness of enterprise and entrepreneurship as a key change agent in economic

process.

Education through enterprise in which the education process itself can be

enhanced by using pedagogic styles which work in and makes use of

enterprising situations including the student concerned and real world project

driven approaches.

Education for enterprise, which is aimed at entrepreneurship development and

includes training existing entrepreneurs as well as for new business start -up.

Qualities ,skills ,values ,attitude ,aptitude ,and capability of an entrepreneur:

An entrepreneur should be a confident person because confidence develops an

edge over the competitors. The person should be confident in his appearance,

body language, communication, work style and relationshi ps.

An entrepreneur should have a clear perception. Perception has a make or

break capacity. An entrepreneur with developed perception can think of new

product, new raw-materials, new designs, new packaging material, new uses

and application. Perception helps the entrepreneur in decision making, goal

setting, team building and conflict management which guides the entrepreneur

towards creativity, imagination and innovativeness.

An entrepreneur is neither a zero risk-taker nor hundred percent risk taker. Asuccessful entrepreneur will always take a moderate or calculated risk. An

entrepreneur not only takes the risk but shoulders the responsibility of the

outcome of his decisions. He has to exhibit an excellent team building ability.


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Lastly an entrepreneur should be time conscious person. He should set his goals

targets with reference to time. Time scheduling, time monitoring and time

management are important entrepreneurial skills.

An entrepreneur must be able to guard business secrets. Leakage of business

secrets to trade competitions is a serious matter which should be carefully

guarded by the entrepreneur.

An entrepreneur must have a reasonable level of technical knowledge.

The success of the entrepreneur demands the ability to work long hours for

sustained periods of time with appreciable amount of s dedication and high

energy level.

CHARACTERISTICS OF ENTREPRENEURSHIPThere are certain traits and attitudes that make some people more suited to

running a successful small business than others. In one study w here

entrepreneurs were given a list of attributes and asked to rate their importance

for success, the seven most highly ranked qualities were perseverance, the

desire and willingness to take the initiative, competitiveness, self -reliance, a

strong need to achieve, self-confidence, and good physical health

a) Mental Ability - It consists of intelligence and creative thinking. An

entrepreneur must be reasonably intelligent, and should have creative thinking

and must be able to engage in the analysis of vari ous problems and situations in

order to deal with them.

b) Clear Objectives - An entrepreneur should have a clear objective as to the

exact nature of the business, the nature of the goods to be produced and

subsidiary activities to be undertaken. A successful entrepreneur may have the

objective to establish the product, to make profit or to render social service.


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c) Business Secrecy - An entrepreneur must be able to guard business secrets.

Leakage of business secrets to trade competitors is a serious matte r, which

should be carefully guarded against by an entrepreneur.

d) Human Relation Ability - The most important personality factors

contributing to the success of an entrepreneur are emotional stability, personal

relations, consideration and tactfulness. An entrepreneur must maintain good

relation with his customers if he is to establish relations that will encourage

them to continue to patronize his business. He must also maintain good relations

with his employees if he is to motivate them to perform their jobs at a high level

of efficiency.

e) Communication Ability - It is the ability to communicate effectively. Good

communication also means that both the sender and the receiver understand

each other and are being understood. An entrepreneur who can effectively

communicate with customers, employees, suppliers and creditors will be more

likely to succeed than the entrepreneur who does not.


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Figure 1.1 : Characteristics of an Entrepreneur

f) Technical Knowledge - An entrepreneur must have a reasonable level of

technical knowledge. Technical knowledge is the one ability that most people

are able to acquire if they try hard.

CONTRIBUTIONS OF ENTREPRENEURSHIP IN THE

ECONOMY

On the one hand, it is obvious that entrepreneurship is essential to rapid

economic growth; on the other no one agrees on how to measure it and so

confirm its importance. Entrepreneurship is about changes in the way of doing

business, new products, etc.


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Contributions to the team of an ENTP

In a team environment, the ENTP can contribute by:

y challenging the status quo, and encouraging other team members to

achieve more than they thought they could.

y leading other team members to a greater understanding of the concepts

and principles involved.

y involving people who are competent in r elevant skills.

y contributing creative ideas on how the task can be achieved or quality

improved.

y creating new ideas out of confrontational discussion .

The potential ways in which an ENTP can irritate others include:

y initiating too many projects, and not being able to deliver on all of them

y introducing too much change, and not leaving well -established, workable

routines alone

y not taking sufficient account of current realities

y appearing competitive and unappreciative of the contribution of others .

Personal Growth


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As with all types, the ENTP can achieve personal growth by developing all

functions that are not fully developed, through actions such as:

y being selective about the initiation of projects

y appreciating the value of existing routines that work well

y investigating the facts, and documenting them, before interpreting what

they mean

y taking time to consider the impact of the ENTP's approach and ideas on

people's feelings

y expressing appreciation towards others .

Recognising Stress

As stress increases, 'learned behaviour' tends to give way to the natural style, so the

ENTP will behave more according to type when under greater stress. For example,

in a crisis, the ENTP might:

y spend time brainstorming ideas, and debating or critiquing what needs to

be done

y provide a lot of drive, but try to do too much

y draft in people with proven skills to work on the problem

Under extreme stress, fatigue or illness, the ENTP's shadow may appear - a

negative form of ISFJ. Example characteristics are:

y being pedantic about unimportant details

y

doing things to excess - e.g.: eating, drinking or exercisingy expressing emotions in an intensive and uncontrolled way

y being very sensitive to criticism


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The shadow is part of the unconscious that is often visible to others, onto whom

the shadow is projected. The ENTP may therefore readily see these faults in

others without recognising it in him/her self.

WHAT DOES SUCCESS MEAN TO AN ENTP?

ENTP personalities are motivated by possibilities. They love the outside

chances; the new or unusual combinations lurking within the ordinary everyday

world of things and ideas. For them, something is always on the up, something

is always tantalizing their desire to re-orchestrate life into new patterns and

shapes; new ways of fulfilling what can be as strong as a never ending desire to

beat the odds and win at every game in town, or as mild as a quirky personal

need for constant variety and change. With their thinking tied to the myriad

possibilities they see in the world, they act swiftly and decisively upon those

angles, choices and combinations scarcely noticed by other types, but through

which they can build whole new frameworks or completely redefine an existing

external situation in such a way that it appears new, revitalized and once again

full of promise. Sameness, stasis, conservatism - even daily routine - can be

loathsome to fervent ENTPs, whose drive is always to be into something new,

different and full of fresh possibilities, and who, given the opportunity, wil l

always be the first to show others a new path to success in a venture, or to find a

way of doing something that no-one has done before.


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ADVANTAGES OF ENTREPRENEURSHIP

Every successful entrepreneur brings about benefits not only for himself/ herself but

for the municipality, region or country as a whole. The benefits that can be derived

from entrepreneurial activities are as follows:

1. Enormous personal financial gain

2. Self-employment, offering more job satisfaction and flexibility of the work

force

3. Employment for others, often in better jobs

4. Development of more industries, especially in rural areas or regions

disadvantaged by economic changes, for example due to globalisation effects

5. Encouragement of the processing of local materials into finished goods for

domestic consumption as well as for export

6. Income generation and increased economic growth

7. Healthy competition thus encourages higher quality products

8. More goods and services available

9. Development of new markets

10.Promotion of the use of modern technology in small-scale mastering to

enhance higher productivity

11.Encouragement of more researches/ studies and development of modern

machines and equipment for domestic consumption

12.Development of entrepreneurial qualities and attitudes among potential

entrepreneurs to bring about significant changes in the rural areas

13.Freedom from the dependency on the jobs offered by others


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RADIO INDUSTRY

India has been among the fastest growing economies in the world,

with a nominal GDP CAGR of 9.94% over the last 10 years (1997 -2008).

According to CSO estimates, nominal GDP growth for consequent years wouldshow a consistent rise. There is a correlation between the economic growth rates

of a country i.e. the nominal GDP growth rate, and growth rates of the

advertising industry.

Indian Advertising Industry

The Indian advertising spends, as a percentage of GDP, is 0.34%, which lags

behind other developed and developing countries.

During fiscal 2005, the gross advertising spend in India is estimated at Rs.111

billion, and is expected to grow at 14.2% to reach Rs.127 billion by fiscal 2006.


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The key factors which have contributed to growth of the Indian advertisingindustry include:

y Rapid economic growth of the country on the back of economic

liberalization and deregulation

y Increase in consumer prosperity

y Entry of global consumer companies with large advertising budgets

y Higher degree of competitive intensity among consumer compa nies; and

y Growth in media vehicles leading to increase in media penetration.

Segmentation of Advertising Spends

The five key industry segments comprise print, television, radio, cinema, and

outdoors. These different segments within the industry are at varying stages of

growth and corporatization.

Media Spends as % of Total Ad Spend

Year Print TV Radio Cinema Outdoor Internet

2005 48.0% 39.3% 3.5% 0.5% 8.4% 0.3%

2006 47.4% 40.6% 3.7% 0.4% 7.5% 0.4%

2007 46.2% 41.9% 3.9% 0.7% 7.0% 0.4%

2008 45.6% 43.0% 3.9% 0.7% 6.5% 0.4%

2009 43.9% 43.7% 4.3% 0.6% 6.0% 0.3%


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The Indian television industry has grown rapidly, especially since 1991, which

saw the beginning of satellite broadcasting in India. This growth was also aided

by the economic liberalization program of the Government. The growth of the

satellite television audience saw proliferation of a number of satellite television

channels offering more choices to media buyers and consumers of

entertainment. Thus, the television broadcasting business, whic h started off as asingle government controlled television channel, now has over 300 channels

covering the Indian footprint, resulting in growing ad spends on this medium.

Reforms and proliferation of private players were the key reasons for this rapid

growth of the share of television in the advertising industry.

Similarly, sectoral reforms and increased number of players could drive market

expansion for emerging media segments including radio, outdoor, cinema and

internet.

RADIO CHARACTERISTICS

Cost Effective Medium to Advertiser

Radio offers reach, frequency, impact and economical advertising solutions for

advertisers. Radio advertising rates are low on cost-per-thousand basis as

compared to other media.

Excellent Complementary Medium

Radio forms an excellent complementary medium to television and print. It can

extend the reach of a campaign, focus the delivery, and enhance or reinforce a

message.

Interactive medium

Radio speaks to its audience in a highly personal manner. Listeners build a

relationship with their local radio personalities - a rich resource into which thecommunity can tap.

Low Content Costs

Unlike television, radio does not require any commissioned original content.

Most of the content on radio is live. The biggest content - music - requires


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a royalty which is payable to the relevant societies viz. Phonographic

Performance Limited (PPL) and Indian Performing Rights Society (IPRS) and

certain music companies.

Prime Time differs from Television

The prime time for radio listenership differs from prime time televisionviewing. Radio listenership peaks in the morning, afternoon and late nighttim e

slots, while Television viewer ship reaches its peak during the night slot .

Delivers relevant audience

Listenership of radio as indicated by the Indian Listenership Track (ILT) survey

is the highest as a percentage among the younger audiences (15 -29) and the

SEC A audiences. The research indicates that almost 70% of SEC A audiences

listens to radio everyday. This is the audience most sought by advertisers.

(RADARS)


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SECTION--A

INFORMATION ABOUT THE PRODUCT

1. NAME OF THE FM STATION:Radio SPARKZ-FM

2. DESCRIPTION OF THE PRODUCT:

. Radio SPARKZ -FM pioneered private FM in India to

offer premium quality radio entertainment to every listener. Radio SPARKZ

will launch its first station in Bhubaneswar in a span of2 months and would be

available within 60-km radius of Bhubaneswar-Cuttack

Radio SPARKZ-FM will soon be launching in 9 new circles after

serenading listeners in Bhubaneswar and Cuttack. Radio 94 SPARKZ-FM has

been planned to be available to the listeners in Rourkela, Puri, Ranchi, Kolkata,

Raipur, Nagpur, Patna, Vizag and Hyderabad.

Radio SPARKZ-FM will soon become the choice destination for

connoisseurs of music who tune in to satiate their thirst for the latest hit Hindi

music that would be spun out by our RJ's who speak the language of the people

and make everyday seem livelier and brighter.

With a unified frequency of 94 FM, Radio 94 SPARKZ -FM uses QPSK

modulation technique and will truly ensure a musical sojourn across the length

and breadth of the country.Radio 94 SPARKZ-FM targets to have the largest operating network and

the highest listener ship among private FM radio broadcasters in India. Radio 94

SPARKZ-FM believes that its industry-leading operating network and listener

reach will enable it to offer an attractive advertising platform to its advertisers.

For its studio and transmission facilities, Radio 94 SPARKZ-FM hasinvested in high quality equipment. Most of its key equipment, such astransmitters, mixers and codecs, has been sourced from suppliers based inUnited States and Canada. Radio 94 SPARKZ-FM believes that its investmentin technology will help increase the quality of broadcast and coverage in each ofits local markets.

Future plans of Radio 94 SPARKZ-FM include exploring opportunities to

become FM radio broadcasters or content providers in international markets at

an appropriate time, either directly or through strategic partnerships or inorganic

initiatives.


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BUSINESS STRATEGY:

y Expand our footprint:

We will expand our footprint and cover additional markets and regions in

India. We also intend to explore opportunities to become FM radio broadcasters

or content providers in international markets, either directly or through strategic

partnerships, arrangements, joint ventures or acquisitions.

y Continuously invest in brand building andprogramming innovation:

We intend to maintain and enhance the leadership position of our radio

stations through continuous innovation, focused marketing, intensive brand

building and exploiting the interactive nature of FM radio. We plan to engage

current and potential listeners through on-air as well as off-air activities. Weintend to increase our use of research generated internally as well as provided

by external agencies to continuously monitor the evolving needs of our audience

and advertisers.

y Exploit additional revenue streams:

Additional income streams include revenue from SMSs or calls received

from our listeners, or from the sale or licensing of content to third parties,

whether in India or in international markets. It also includes providingconsultancy services to industrial groups for setting up radio stations and launch

visual radio services for the first time in India. With visual radio, images and

texts will be synchronized with the radio broadcast to bring information and

interactivity directly to a mobile phone. Visual radio services will also provide

an additional advertising opportunity to our clients. These services will provide

us with additional advertising revenues from our clients as well as digital

service revenues from the telecommunications sector.

MAJOR COMPETITORS DETAILS :

y AVAILABLE SUBSTITUTES:

Three private FM radio channels namely Eastern Media Ltds

Radio CHOCOLATE 104 FM, Ad labs BIG 92.7 FM and Sun TVs 93.5 S-FM

and one government channel All India Radios RAINBOW FM & soon to be

launched AIRs FM GOLD and RED FM owned by Kalanidhi Maran, with a


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48.9% stake as well as minority holdings of Hyderabad -based IT company

Value Labs, NDTV and Malaysian conglomerate Astro Malaysia .

y COMPETITORS IN THE MARKET:

ADLABS BIG 92.7 FM:

BIG 92.7 FM spans across 45 cities, 1000 towns and 50,000 villages to reach 200

million Indians across the length and breadth of the country. The company plans

to take FM radio as a medium of entertainment not only to the key metros, but

also to virgin markets that have never before experienced this medium of

entertainment.

BIG 92.7 FM has the capacity to touch every fifth Indian across the country -

every third urban Indian and one in every eight Indian in the rural areas.

The Brand Its positioning and unique content

Unique Auditorium Music Tests (AMT's) have been conducted by the companyacross all cities and over 1000 songs run past the sample audiences to verifyboth local flavor and city -connect. Based on these findings, the station air tunes,40% of which are exclusively heard on BIG 92.7 FM. The music played spanseras and genres so that it appeals to all.

BIG 92.7 FM entertains and informs and empowers the listener with utilities thatone may take for granted. The station has designed utilities such as traf fic andweather updates along with time checks and health tips to help optimize thelistener's time management and health.

Another important content strategy of the Station is "Acknowledgement of localheroes in our Society". BIG 92.7 FM aims to honor the deserving common manwho works relentlessly and voluntarily for the betterment of society.

The Infrastructure

With an investment of Rs. 400 crore dedicated to Transmission Equipment,

Infrastructure and licensing, it has a big network. The overall manpower

strength stands at 1000 employees nationwide. The IP protocol technology

being utilized forBIG 92.7 FM has been sourced from AXIA, USA making this

station amongst the first to utilize such superior gear in Asia.

BIG 92.7 FM brings 24x7 unique entertainment from a highly advanced and

state-of-the-art radio broadcast technology via transmitters with web based


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remote management capability, hot swappable power supply and power

amplifier with controller card redundancy. The transmitters have the capability

of back up play time of four hours of music or pre-programmed content in case

of any link failure. BIG 92.7 FM has a web-based Media Monitoring Center

(MMC) at Mumbai to monitor all the 45 stations live and provide round-the-

clock hands on solutions and technical support.

The Network

North 20 cities

Chandigarh, Hissar, Shimla, Ajmer, Kota, Jodhpur, Bikaner, Udaipur, Srinagar,

Jammu, Patiala, Jalandhar, Jhansi, Bareily, Aligarh, Amritsar, Agra, Allahabad,

Kanpur, New Delhi.

East 7 cities

Guwahati, Rourkela, Bhubaneswar, Ranchi, Jamshedpur, Asansol, Kolkata

West 9 cities

Panaji, Sholapur, Gwalior, Bhopal, Indore, Rajkot, Vadodara, Surat, Mumbai

South 9 cities

Pondicherry, Tirupathi, Thurivananthapuram, Vishakhapatman, Chennai,

Bangalore, Hyderabad, Mangalore, Mysore

SUN TVS S-FM:

S-FM has substantial localization of content to retain the regional flavour. The

Frequency Modulation broadcasting is through state -of-art, high power

transmitters to provide fine aural output. In order to maintain tonal fidelity and

sound clarity, S-FM has bid good-bye to playing tapes and compact discs. Theentire programmes are digitized and broadcast from a sensitive computer server,

eliminating sound impurities and disturbances totally.

The reach of S-FM stations is more than a 120 Km radius thereby providing

high quality entertainment for most of the neighbouring districts. The

Coimbatore station covers four districts- Coimbatore, Nilgiris, Erode and Salem


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in Tamil Nadu and three districts- Palakad & Waynad in Kerala. The reach of

the Tirunelveli station includes Tirunelveli, Nagerkoil, Tuticorin and

Virudunagar in Tamil Nadu and Thiruvanathapuram and Kollam districts of

Kerala. Chennai reaches out to Kanchipuram and Thiruvallur, Vellore,

Tiruvannamalai and Villupuram as well as the Union Territory of Pondicherry.

S-FMstations

Chennai, Coimbatore, Tirunelveli, Madurai, Tuticorin, Pondicherry, Tiruchy,

Vishakapatinam, Bangalore, Hyderabad, Jaipur, Bhubaneshwar, Tirupati,

Lucknow, Bhopal, Kozhikode, Indore, Vijayawada, Varanasi, Rajahmundry,

Kanpur, Thiruvananthapuram, Thrissur & Mangalore.

EASTERN MEDIA LTDS RADIO CHOKLATE 104 FM:

RADIO CHOKLATEis the first FM radio venture of Orissa from the house of

Sambad group. The chief features of the channel:

y Special Programs with local flavor, local content to suit the local

entertainment needs.

y State-of-the art studio and transmission facilities.

y 24hrs non-stop music with stereo digital sound in a variety of language s.

AIR FM RAINBOW:

AIR FM Rainbow is a group of FM radio channels across India. It is run by All

India Radio, a government owned enterprise. It features Hindi/Tamil and

regional language songs and occasional English songs along with hourly news

in English, regional language and/or Hindi. In Mumbai it operates on 107.1

megahertz. In Lucknow, it uses the 100.7 MHz slot. In Vizag it operates on 102

megahertz. In Hyderabad it operates on 101.9 megahertz. It operates in

Bangalore as well with a frequency of 101.3. It was earlier called FM Metro; thename was changed to FM Rainbow in 2002. The signals of this station are very

strong and it catches till the far villages. The channel plays various genres of

music unlike private channels; it does not stick to music of just one language. It

plays ghazals, soundtracks as well as English songs, a rare occurrence in Indian

radio channels. The slot for English music [called radio raptures] airs everyday

at 7am-10am and 10pm-1am and it has a very good audience .


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AIR FM GOLD:

AIR FM Gold is a FM radio channel in Mumbai and Chennai, India. It is run

by the All India Radio, a government owned enterprise. In Mumbai, it features

Hindi songs and occasional English songs along with hourly news in English

and Hindi. It operates on 100.7 Mhz. In Chennai, it broadcasts Tamil songs andoccasional English songs with news in English and Tamil operating in 105.0

MHz. In Delhi its frequency is 106.40 MHz. It is airing live commentary for

cricket matches also.

RED FM:

Red FM is an Indian FM radio brand, with stations broadcasting at 93.5

megahertz in the cities of Mumbai, Delhi, and Kolkata. It was launched in 2002,

playing a mix of Hindi and English songs. However, the programming is now100% exclusively Hindi.

The channel is owned by Kalanidhi Maran, with a 48.9% stake, as well as

minority holdings of Hyderabad-based IT company Value Labs, NDTV, Astro

Malaysia. It was acquired from India Today promoter Living Media in

January 2006. Their punchline is 'Bajaate Raho' (Keep Playing). The most

widely broadcast shows include "Morning No.1", "Dilse", "Mumbai Local",

"One Two ka Four", "Mera Wala Gana", "Superhits Music Show", "RDX" and

"Nomoshkar Kolkata.

PRODUCT POSITIONING

y PRESENT DEMAND AND SUPPLY POSITION OF THEPRODUCT:

The demand is very high in the region, as the cheap FM radio sets

has replaced expensive tape recorders and CD players in the buses, roadsideshops and homes. With the emergence of FM radio feature in mobile phones,

its demand has shot up very rapidly which is visible from the data provided by

TRAI.


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[SURVEY BY TRAI (TELEPHONE REGULATORY AUTHORITY OF INDIA)]

The numbers of private FM channels providing service in the region are

just three with one government channel providing service 18 hours a day. Two

radio channels are soon going to be launched; one government and one private.

Thus, more channels are on demand and any new channel being launched is

expected to meet the demand of the people to a great extent.

y FUTURE DEMAND AND SUPPLY POSITION OF THE

PRODUCT:

With the rapid expansion of FM radio, it is expected to hook

listeners even in the remote villages and gradually reaching to all people of the

country. In such a situation the number of players in the market is expected to

increase so as to cater to the needs of the people. Thus the demand is expected

to touch the sky in the near future.

With the number of players increasing, the supply would try to

meet the demand.

MARKET SCENARIO WITH RESPECT TO THE PRODUCT:

The numbers of players operating in the market are less and the

demand is very high. FM radio has not yet reached large chunks of the society.

Operating in the cities like Bhubaneswar, Cuttack and Rourkela, only a small


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fraction of the whole society is being entertained. With its emergence of cheap

FM radio sets, FM radio feature in cell phones and the demand rapidly

increasing, FM radio has to reach the remote areas and entertain people in each

and every part of the region. Thus the numbers of pla yers are expected to

increase and the players entering into the market in the near future are expected

to make huge profits.The cost for the spectrum is expected to increase. With all the

players broadcasting from Prasar Bharatis All India Radio tower in Cuttack,

demand for new towers is expected in the near future.

y ANTICIPATED CHANGES IN DEMAND:With FM channels mostly broadcasting Hindi and regional songs,

demand for English songs, News in English/Hindi/regional language, highl ights

and commentary of cricket matches and entertaining programmes is expected.

Separate FM channels for sports, music, news, business and entertainment willbe of high demand in the near future.

y ANTICIPATED CHANGES IN TECHNOLOGY:Most FM channels are expected to switch to digital modulation

techniques from analog modulation techniques for smooth transmission. New

towers for signal transmission are expected to be set up in the near future .

TARGET CUSTOMERS :

Radio SPARKZ will initially hook listeners in Bhubaneswar and

Cuttack and will soon regale listeners in Rourkela, Puri, Ranchi, Kolkata,

Raipur, Nagpur, Patna, Vizag and Hyderabad. Radio SPARKZ targets to reach

the remote areas and finally reach to all the peopl e of the country.

Radio SPARKZ expects additional revenue from SMSs or calls

received from its listeners and from the sale or licensing of content to third

parties, whether in India or in international markets. It expects additional

revenue by providing consultancy services to industrial groups for setting up

radio stations and by launching visual radio services for the first time in India.

With visual radio, images and texts will be synchronized with the radio

broadcast to bring information and interact ivity directly to a mobile

phone.Visual radio services will also provide an additional advertising

opportunity to its clients. These services will provide Radio SPARKZ with

additional advertising revenues from its clients as well as digital service

revenues from the telecommunications sector.


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TARGET MARKET SHARE:

Radio SPARKZ targets to achieve 20% share in the market within

1 year and gradually have 80% share in 5 years.

MARKETING STRATEGY:

Radio SPARKZ will market its existence through:

y Advertisements through newspapers, television and radio.

y Advertisements through hoardings at different places in the cities.

y Advertisements through the circulation of Radio SPARKZ booklets.

y Advertisements through organizing small contests among the peop le of

the city.

y Airing messages that would inculcate human values among the people in

the society.

y Airing special programmes during festivals like Dussehra, Diwali, Holi

etc.

y Airing patriotic programmes.

y Attending to the social problems of the people.

y Airing comedy programmes that would entertain people.

y Airing Ollywood stars to promote SPARKZ.

SECTION--B

DESCRIPTION OF THE LOCATION

Radio 94 SPARK-FM is planned to be at the 16th

floor of the IDCO Towers at

1,Janpath in the temple city of India, Bhubaneswar. The flat is going to be hired

as per an agreement with the Director, IDCO Towers for a lease of 100 years. It

is well connected to the major city centres through public transport systems. The

office of Radio 94 SPARKZ-FM is about 3 km away from the Bhubaneswar

Railway Station and 5 km from the modern Biju Patnaik Airport, which is being

extended to receive wide-bodied aircraft, and one may well see international

charters landing here soon. With numerous hotels as well as the Orissa Tourism


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Development Corporation's Panthanivas, Bhubaneswar is well equipped to

accommodate every type of visitor. Radio SPARKZ has obtained no objection

certificate from the Bhubaneswar Municipal Corp oration, which ensures its long

existence.


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RADIO TOWERS

SECTIONC

PLAN LAYOUT OF THE PROJECT


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SERIAL NO. PARTICULARS SIZE

1.BROADCASTING

CENTRE17FT*17FT

2. TECHNICAL ROOM 20FT*8FT

3. CONTROL ROOM 6FT*8FT

4. RJ REST ROOM 10FT*8FT

5. SWITCHING SECTION 10FT*6FT

6.PROGRAMME

COORDINATOR10FT*6FT

7. TECHNICIAN 10FT*6FT

8. HR CELL 10FT*6FT

9. MARKETING CELL 10FT*6FT

10. FINANCE CELL 10FT*6FT

11. LEGAL ADVISOR 8FT*8FT

12. CONFERENCE HALL 20FT*6FT

13. RECEPTION 8FT*8FT

14. CD SUPPLIER 6FT*6FT

15.SITTING ROOM /

VISITORS6FT*6FT

16. PANTRY 7FT*10FT

17. DRINKING WATER 4FT*4FT

18. STORE ROOM 8FT*8FT

19. TOILET 8FT*8FT

20. ENTRANCE 6FT*3FT

21. HALL SIZE 61FT*56FT


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SECTION D

DETAILS OF THE PROJECT REPORT

1. PRODUCTION PROGRAM (FOR 1 YEAR):

SER

IAL

NO.

NAME AND

DESCRIPTI

ON OF

THEPRODUCT

AD

SLOT

AD

RATE

DURATI

ON OF

ADS IN

THE

SLOT

(IN

MINUT

ES)

PRICE

PER

MINU

TE (IN

RUPE

ES)

SALES

REVENUE

PER YEAR

(INRUPEES)

CAPA

CITY

UTILI

ZATION

1.Advertiseme

nts12AM-6AM

AD PER10 MIN

36 300 39, 42,000 100%

2.Advertiseme

nts6AM-10AM

AD PER8 MIN

30 600 90, 70,000 100%

3. Advertisements

10AM-4PM

AD PER6 MIN

60 700 1,78,30,000 100%

4.Advertiseme

nts4PM-8PM

AD PER5 MIN

48 1000 200,20,000 100%

5.Advertiseme

nts8PM-12AM

AD PER6 MIN

40 800 1,41,80,000 100%

TOTAL INCOME PER YEAR: Rs.6,50,42,000


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2. INPUTS:

2.1. MACHINERY / EQUIPMENTS / INSTRUMENTS:

SERIALNO.

DESCRIPTION NUMBER OFMECHINERYUSED

PRICE (IN

RUPEES)(INCLUSIVEOF TAXES)

TOTAL

VALUE (INRUPEES)(=NUMBER

* PRICE)

NAME OF THESUPPLIER

1.CO-AXIALSWITCH

CONTROL UNIT1 84,800 84,800

TechnomediaSolutions Pvt.

Ltd.

2.Quartz PLLSynthesized

Tuner (RS 80)1 1,28,400 1,28,400 Rolls

3.FM Modulation

Analyzer (Model531)

1 96,300 96,300 Inovonics Inc.

4. DA (4x4a)1

56,600 56,600 Radio Systems

5.Digital AudioDistributionAmplifier

1 38,800 38,800 ATI

6.6 Ex

HD+FM1 23,200 23,200 Omnia

7.Analog AudioMonitor Panel(AMP2A-4S)

1 7,500 7,500Wohler

Technologies

8. Silence Eliminator 1 59,800 59,800 Classic

9. CD Player 1 8,500 8,500 TASCAM

10. Enhanced apt-X 1 14,400 14,400World Cast

Eclipse

11.

Plug n Play Digital

(PNP 1000)1

18,100

18,100

Marti

12.Wattmeter (50ohm) (Model3127-040)

1 5,300 5,300 Thruline

13. Multimeter 1 2,000 2,000 FM 5C

14.Transmitter

Exciter1 82,700 82,700 Fxi-250

15.UPS for 5WTransmitter

5 12,400 62,000 Emerson

16. Dermi 1 69,600 69,600

BIRD ElectronicCorporationCleveland

(Solon) Ohio,

USA

17. Air Conditioner 5 27,000 1,35,000 Carrier

18. Coupler 1 1,67,700 1,67,700BIRD Electronic

Corporation


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VHF-FM TRANSMITTER 2*3 KW

SERIAL NO. DESCRIPTION

NUMBER

OFMECHINERY USED

PRICE (INRUPEES)

(INCLUSIVE OF

TAXES)

TOTALVALUE (IN

RUPEES)(=NUMBER*PRICE)

NAME OF

THESUPPLIER

1.VHF-AMPLIFIER

(1500 W)2 1,34,800 2,69,600 WML

2.FM MOSFET

Amplifier (1500W)1 82,400 82,400

BharatElectronics

3.

Einschaltsteuerung Switch on Unit

(GS 033 A1)(3KW)

1 21,300 61,300

Rhode &

Schwarz

4.VHF-FM SenderTransmitter (SU115) (3 KW)

1 29,700 89,700Rhode &Schwarz

5.Adaptereinschub

Plug-in Adapter(KA 033 A1)


6.

FM-Uberwachungsdemodulator

(87.5-108 MHz)


7.FM MonitoringDemodulator


8. UPS 2 21,800 43,600 Emerson

9.Combining andMonitoring Unit

1 71,900 1,71,900Bharat

ElectronicsLtd.


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TRANSMITTER CONTROL UNIT

SERIA

L NO.DESCRIPTION

NUMBER

OF

MECHINE

RY USED

PRICE (IN

RUPEES)

(INCLUSI

VE OFTAXES)

TOTAL

VALUE

(IN

RUPEES)

(=NUMBE

R*PRICE)

NAME OF

THE

SUPPLIER

1.Variable Pre-emphasis (ME

266XS)1 32,800 92,800 Meltron

2.FM Transmitter

Controller1 99,700 99,700

Rhode &Schwarz

TOTAL COST OF THE MACHINERY: Rs. 20,82,900

2.2. RAW MATERIALS:

SERIALNO.

BRIEFDESCRIPTION

QUANTITYOF RAW

MATERIALS

PRICE OF RAWMATERIALS (IN

RUPEES)(INCLUSIVE OF

TAXES)

TOTAL VALUEOF RAW

MATERIALS(IN RUPEES)

SOURCESOF RAW

MATERIALS

1. CDs 1,000 7575,000

CD Shops

TOTAL VALUE OF RAW MATERIALS FOR A PARTICULAR YEAR: Rs.75,000

2.3. UTILITIES:

SERIAL

NO.DESCRIPTION

TOTAL PRICE PER YEAR

(IN RUPEES)

1. Electricity consumption 1,80,000

2. Water consumption 12,000

TOTAL PRICE FOR ALL UTILITIES PER YEAR: Rs.1,92,000


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2.4. LABOUR / MAN POWER / HUMAN RESOURCES:

SL.

NO.PARTICULARS NUMBERS

WAGES

(IN

RUPEES

PERMONTH)

TOTAL WAGES (IN

RUPEES PER YEAR)

(=NUMBER*WAGES)

REMARKS

1.Star Radio

Jockey2 20,000 4,80,000

TV stars asRadio

presenters

2. Radio Jockey 6 15,000 10,80,000Radio

presenters

3.MarketingExecutive

1 20,000 2,40,000Looks after

marketing theproduct

4.Finance

Executive

1 20,000 2,40,000Looks after

finance

sources

5. HR Executive 1 20,000 2,40,000Looks afterquality ofemployees

6. Legal Advisor 1 16,000 1,92,000Solves legal

matters

7.ProgrammeCoordinator

3 15,000 5,40,000

Organize the

generatedprogrammes

8.Switching

Section Staff3 10,000 3,60,000

Maintain theprogrammes

9. TechnicalQueries staff

4 14,000 6,72,000Handle

technicalproblems

10. Receptionist 2 9,000 2,16,000Look afterthe visitors

11. Peon 3 5,000 1,80,000 Office boy

12. CD Supplier 2 5,000 1,20,000Supply

programmesCDs

TOTAL WAGES PER YEAR: Rs.45,60,000


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3. COST OF THE PROJECT:

3.1. FIXED COST:

SERIAL NO. ITEMTOTAL COST (IN

RUPEES PERYEAR)

1. Spectrum 50,00,000

2.AIR Tower rent +

Maintenance charge3,00,000

3. Flat rent 2,40,000

4. Machinery 20,82,900

5. Furniture 4,00,000

6.Radio SPARKZ

anthem5,00,000

TOTAL FIXED COST: Rs.85,22,900

3.2. VARIABLE COST:

SERIAL NO. ITEMTOTAL COST (IN

RUPEES)

1. Wages 45,60,000

2. Utilities 1,92,000

TOTAL VARIABLE COST: Rs.47,52,000


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3.3. TOTAL COST OF THE PROJECT:

SERIAL NO. PARTICULARS

AMOUNT (IN

RUPEES)1. Fixed Cost 85,22,900

2. Variable cost 47,52,0003. Cost of Survey 16,000

TOTAL COST OF THE PROJECT: Rs.1,32,90,900

4. MEANS AND SOURCES OF RAISING FINANCE:

SERIAL NO. PARTICULARSAMOUNT (IN

RUPEES)REMARKS

1. Own investment 50,00,000

Fiveentrepreneurs

each contributingRs.10,00,000

2.Long term

Finance for fixedcapital

35,38,900From SIDBI @

12.5% per annum

3.Short termFinance for

working capital47,52,000

From PNB @

11.5% per annum


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5. PROFITABILITY ANALYSIS:

SERIA

L NO.PARTICULARS AMOUNT (IN RUPEES)

1. Revenue 6,50,42,000

2.Manufacturing Expense (Raw

Materials + Utilities + Labour)48,27,000

3. Promotional Expense 25,00,0004. Administrative Expense 12,00,000

5.

Interest 9,88,842.50

Particulars

Amount

(in

Rupees)

Rate of

Interest

Long term

Finance forfixed

capital

35,38,900 12.5% perannum fromSIDBI

4,42,362.50

Short termFinance for

workingcapital

47,52,00011.5% per

annum fromPNB

5,46,480

6.

Depreciation 4,76,580

Item

Total Cost

(in Rupees

per year)

Rate of

Depreciatio

n

Machinery 20,82,900 20% 4,16,580Furniture 4,00,000 15% 60,000

7. Gross Profit 4,50,49,577.50

8.

Taxes 2,55,78,292.975

Particulars Rate

Income Tax35% of Gross

Revenue1,57,67,352.125

License Fee4% of Gross

Revenue18,01,983.10

Copyright Tax Rs.400 per hour 35,04,000

Service Tax10% of Gross

Revenue45,04,957.75

9. Net profit 1,94,71,284.525


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7.CASH FLOW STATEMENT:

1. CASH INFLOW:

SERIAL NO. PARTICULARS AMOUNT (INRUPEES)

1. Income 6,50,42,000

2. Own Investment 50,00,000

3.Long Term Finance for

Fixed Capital35,38,900

4.Short Term Finance for

Working Capital47,52,000

5. Gross Profit 4,50,49,577.50

3. Net Profit 1,94,71,284.525

2. CASH OUTFLOW:

SERIAL NO. PARTICULARSAMOUNT (IN

RUPEES)

1. Fixed Cost 85,22,900

2. Variable Cost 47,52,000

3. Cost of Survey 16,000

4. Manufacturing Expense 48,27,000

5. Promotional Expense 25,00,000

6. Administrative Expense 12,00,000

7. Interest 9,88,842.50

8. Depreciation 4,76,580

9. Taxes 2,55,78,292.975


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SECTION--E

HIGHLIGHTS OF PHASE II POLICY

Players / Stations

y Total of 91 cities,

y Maximum of338 channels (excluding channels under Phase I Policy)

y Maximum of338 channels (excluding channels under Phase I Policy)

y Channels categorized into 5 categories, on the basis of population of each city

A+ - 4 cities, 22 channels, metro cities;A - 9 cities, 42 channels, population above 2 million;

B -17 cities, 57 channels, population above 1 million and up to 2 million;

C - 48 cities, 170 channels, population above 0.3 million and up to 1 milli on;

and

D - 3 cities, 47 channels, population above 0.1 million and up to 0.3 million .


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Under the Phase II Policy issued on July 13, 2005:

y Existing licensees under the Phase I Policy, who have operationalised their

channels and are not in default, would be given the initial option to

automatically migrate to Phase II Policy by a prescribed date, which has not

been notified to us as yet;

y Cut-off date for automatic migration to Phase II Policy shall be taken as April

1, 2005;

y OTEF for automatic migration shall be the average of all successful bids

received under Phase II in that city;

y On exercising its option to automatically migrate to Phase II, and payment of

the OTEF within the prescribed period, each eligible operationalised license

holder of Phase I shall be issued a fresh permission with the same terms and

conditions as for successful bidders of Phase II.

2. INTEREST RATES

2.1. PUNJAB NATIONAL BANK

The spirit of Enterprise knows no boundaries, irrespective of the scale of operations.

Realizing the significance that, SSI Sector contributes 40% of the gross turnover in

Manufacturing Sector, gives employment to 283 lakh persons, produces 7500

products and contributes more than 35% of the country's exports, PNB has

formulated a number of measures to provide a impetus for the growth of the SSI

Sector.

AMOUNT OF LOAN

y Term Loan (Need based).

y Rs.10.00 Lakh for borrowers having good track record, under Laghu Udyami

Card and Rs.2 lakh under PNB Artisans Credit Card Scheme.


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y Simplified Loan Application Forms for convenience of borrowers.

y Loan Applications complete in all respects duly receipted & a cknowledged.

y Speedy Processing within specified time norms.

Upto Rs.2 Lakh 2 weeks

Over Rs.2 Lakh and upto Rs.5Lakh

4 weeks

Over Rs.5 Lakh 8 -9 weeks

RATE OF INTEREST: 11.50% p.a

y Advances upto Rs.50, 000 at BPLR* minus 2%.

y Advances above Rs.50,000 & upto Rs.2 Lakh at BPLR minus 1%.

y Advances Above Rs.2 Lakh & upto Rs.20 Lakh at BPLR.

y Advances Above Rs.20 Lakh - Linked with Credit Risk Rating.

y Interest Rebate of 0.50% and margin at 10%, irrespective of loan amount,

available to women borrowers under Mahila Sashaktikaran Abhiyan.

(Term Premia of 0.50% is to be added for arriving at interest rate in respect of loans

repayable in 3 years & above. *BPLR 11.50% p.a )

COLLATERAL SECURITY:

y Advances upto Rs.5.00 Lakh without collateral security.

y Advances over Rs.5 Lakh and upto Rs.25 Lakh, based on good track record

and financial position, no collateral insisted upon.

y Advances upto Rs.25 Lakh guaranteed under Credit Guarantee Fund Trust

for Small Industries Scheme (for manufacturing SSI, service Industries &

IT units) without collateral security.

SSI SCHEMES:

y Sarthak Udyami - Scheme for financing SSI

y SME Sahayog Scheme

y PNB Vikas Udyami - Scheme for Loans acquisition of ISO - 9000 Series

Certification


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y PNB Pragati Udyami - Scheme for financing SSI related Services / Business

Enterprises

y PNB Artisan Credit Card - Scheme to provide hassle free financial support to

Artisan

y

PNB Laghu Udyami Credit Card - A simplified Loan Delivery Mechanismy Loans for setting up Industrial estates.

y PNB Kushal Udyami

2.2. SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

Revised Interest Rate Structure under Refinance Scheme of SIDBIApplicable to Scheduled Commercial Banks

(Effective from April 05, 2007)

A. Refinance against termloans in respect of projects /activities eligible forassistance under the Scheme(including ISO 9000Scheme)*

Interest on term loansfor fixed assets andworking capitaladvances (% p.a.)

SIDBI rate of interest on refinance(% p.a.)

CR1 CR2 CR3 CR4

1. Upto Rs.50,000/- With a maximumspread of3% over

and above applicablerefinance rate

10.00 10.25 10.50 10.752.

Above Rs.50,000/- andupto Rs.2 lakh

3. Above Rs.2 lakh

(a) For period above

one year and upto twoyears

As may be decided bythe PLI

11.00 11.25 11.50 11.75

(b) For a period abovetwo years and upto 5

years

11.50 11.75 12.00 12.25

(c) For period above

five years12.00 12.25 12.50 12.75

(*) Interest on term loans for fixed assets and working capital advances in respect of projects /activities eligible for assistance under ISO 9000 Scheme, shall not exceed SIDBI PLR i.e.,12.5% p.a.

Notes:1. The maximum period of refinance in respect of loans upto Rs.2 lakh shall not exceed 3 years.2. The refinance shall carry applicable rate(s) of interest as may be prevailing as on the date of


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respective disbursement which will be based on the rating assigned to the bank.3. For bulk assistance beyond Rs.50 crore, SIDBI reserves the right to disburse the amount inlump sum or in installments depending upon the market conditions.

Revised Interest Rate Structure under Refinance Scheme of SIDBIApplicable to RRBs and Co operative Banks

(Effective from April 05, 2007)

A. Refinance against termloans in respect of projects/ activities eligible forassistance under theScheme (including ISO9000 Scheme)*

Interest on term loans forfixed assets and workingcapital advances (% p.a.)

SIDBI rate ofinterest on refinance(% p.a.)

1. Upto Rs.50,000/- With a maximum spread of3% over and aboveapplicable refinance rate

10.75

2.Above Rs.50,000/-and upto Rs.2 lakh

11.25

3.Above Rs.2 lakh and

upto Rs.25 lakhAs may be decided by the

PLI12.50

4. Above Rs.25 lakh 13.00

(*) Interest on term loans for fixed assets and working capital advances in respectof projects / activities eligible for assistance under ISO 9000 Scheme, shall notexceed SIDBI PLR i.e., 12.5% p.a.

Notes:

1. The maximum period of refinance in respect of loans upto Rs.2

lakh shall notexceed 3 years.2. The refinance shall carry applicable rate(s) of interest as may be prevailing ason the date of respective disbursement which will be based on the rating assignedto the bank.


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3.TAXES ON CORPORATE INCOME

3.1. INCOME TAX:

Companies residents in India are taxed on their worldwide income arising fromall sources in accordance with the provisions of the Income Tax Act. Non -

resident corporations are essentially taxed on the income earned from a business

connection in India or from other Indian sources. A corporation is deemed to be

resident in India if it is incorporated in India or if its control and management is

situated entirely in India.

Domestic corporations are subject to tax at a basic rate of 35% and a 2. 5%

surcharge. Foreign corporations have a basic tax rate of 40% and a 2.5%

surcharge. In addition, an education cess at the rate of2% on the tax payable is

also charged. Corporate are subject to wealth tax at the rate of 1%, if the net

wealth exceeds Rs.1.5 mn (approx. $ 33333).

Domestic corporations have to pay dividend distribution tax at the rate of 12.5%,

however, such dividends received are exempt in the hands of recipients.

Corporations also have to pay for Minimum Alternative Tax at 7.5% (plus

surcharge and education cess) of book profit as tax, if the tax payable as per

regular tax provisions is less than 7.5% of its book profits.

3.2. SERVICE TAX:

Service tax is levied at the rate of 10% (plus 2% education cess) on certain

identified taxable services provided in India by specified service providers.


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Servi e tax on taxable servi es rendered in India are exempt i payment for such

services is received in convertible foreign exchange in India and the

same is not repatriated outside India. The Cenvat Credit Rules allow a service

provider to avail and utili e the credit of additional duty of customs/excise dutyfor payment of service tax. Creditis also provided on payment of service tax on

input services forthe discharge of output service tax liability.

C C SI

With the current trend of the growingpopularity ofthe Radio Marketin entertainment world this projectholds promising returns. New innovative ways of reaching the

youth mass through efficient campaigns would enhance the profitratio. The freshness of R IO-94 SPAR would give it acompetitive edge over others.


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Information about the Entrepreneur:-

Name : Lala Chandan Kumar Ray

Address : S/O. Lala Pradipta Kumar RayPlot no 829, Mahanadivihar,Cuttack: 753004

Date of Birth : 06-06-1990

Sex : Male

Ph : 9439938538

Email I.D :[email protected]

Educational Qualification : B.Tech in Applied &Instrumentation

Engineering.Category : General

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An Entrepreneurship Project

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