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    An Entrepreneurship Project On

    MANUFACTURING INDUSTRYOF

    COMPACT DISC

    KRITIKA MAURYA-0501227437

    GULMI PATANAYAK-0501227596

    Branch-Information Technology

    8TH SEMESTER

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    CERTIFICATION

    This is to certify that KRITIKA MAURYA and

    GULMI PATANAYAKis studying in 8

    th

    semester, ofInformation Technology branch for the academic session

    2008-09, bearing class roll no. 0501227437 and

    0501227596 submitted his entrepreneurship report on

    MANUFACTURING INDUSTRY OF COMPACT DISC for

    partial fulfillment of B.Tech in Computer Science &

    Engineering has been given by B.P.U.T, Rourkela, Orissa.

    Under the guidance of

    Dr.Prof.Mrs.Rachita Mishra

    H.O.D IT Dept.

    Miss. Haripriya Rout

    Project In Charge

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    ACKNOWLEDGEMENT

    Completing a job has never been an easy go for a single person; often it is the

    result of invaluable contributions from individuals in the surrounding in a direct or

    indirect manner.

    I am deeply grateful to my advisorMiss. Haripriya Rout

    for having been a constant source of encouragement for my Business Plan Report on

    Compact Disc Manufacturing Industry.

    In my association with my guide for this purpose, I experienced not only his in-depth

    knowledge but also his affection towards me. I would like to thank all my friends who

    have helped me for successful completion of my report.

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    TABLE OF CONTENTS

    1. GENERAL INFORMATION...........................................................................5

    2. WHAT IS ENTREPRENEURSHIP................................................................9

    3. DETAILS OF THE PROPOSED PROJECT.15

    3.1 BACKGROUND...16

    3.2 RAW MATERIAL & DESIGN...19

    3.3 MANUFACTURING PROCESS21

    3.4 DATA.27

    3.4.1 Land and Building

    3.4.2 Machineries / Equipments

    3.4.3 Miscellaneous Fixed Assets

    3.4.4 Preliminary and Pre Operative Expenses

    3.4.5 Working Capital

    4. MARKET POTENTIAL..31

    4.1. Present Demand and Supply of the Product Competition

    4.2 Target Clients

    4.3 Marketing Strategy

    5. TECHNICAL KNOWLEDGE.34

    5.1 Technical Know How Availability

    5.2 Step by Step Description

    6. PRODUCTION SCHEDULE366.1 Number of Working Days per Annum

    6.2 Number of Working Shifts

    6.2.1 Sales Revenue

    6.2.2 Utilities

    6.2.3 Salaries/Wages

    6.2.4 Repairs and Maintenance

    6.2.5 Selling and Distribution Expenses

    6.2.6 Administrative Expenses

    6.2.7 Total Cost of the Project

    7. PROFIBILTY PROJECTIONS.41

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    8. QUALITY CONTROL43

    9. BIBLIOGRAPHY.45

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    Name of the Entrepreneur:

    Gulmi patanayak and Kritika Maurya

    Proposed Project:

    A compact disc, or CD, is an optical storage medium with digital data recorded on it.

    The digital data can be in the form of audio, video or computer information. When the

    CD is played, the information is read or detected by a tightly focused light source

    called a laser (thus, the name optical medium).The CD is plastid disc 1.2mm thick and

    12 cm in diameter, with a silver-colored surface that reflects laser light. The

    maximum playing time for music recorded on compact disc is 74 minutes.

    Mechanically, the CD is less vulnerable than the analogue record, but that doesnt

    mean that it must not be treated with care.

    Major Product / Services:

    Compact disc

    Proposed Locations:

    Bhubaneswar / Hyderabad / Bangalore/Mumbai

    Type of Organization:

    Hardware Development

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    ENTREPRENUER PROFILE:

    Name : Gulmi Patanayak and Kritika Maurya

    Educational Qualification:Bachelor of Technology

    Technical Skills:C, C++

    TYPE OF THE PRODUCT / SERVICES:

    1. Type of the Project :

    Compact Disc Manufacturing

    2. Product / Services Description :

    It is a Product Oriented firm which Manufactures Compact

    Disc in the form of CD-R (Compact Disc Writeable) and

    CD-RW (Compact Disc Re writeable). With two different

    storage capacity 700MB and 128MB which are generally used

    in various field such as audio video recording and data storing

    etc.

    3. Major Consumers :

    Our plan is to start our business with most of our local audio

    companies, video companies and Software companies. So that

    we can supply them with affordable price in comparisons to

    other manufacturers due to reduction in transportation cost.When we can able to grab a better market condition in local

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    market we must tries to spread our business in global market.

    We also planed to target most of the office stationary suppliers.

    PROMOTERS:

    1. Capital from reliable and Supportive Capital Ventures

    2. The main Promoter of our project will be loans taken from

    banks.

    3. The company to whom our firm will collaborate will produce

    audio CDs, video CDS, game CDs, and software CDs etc

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    The definition of Entrepreneurship is as diverse as the different functions of the

    Entrepreneur. A largely held view of the term is that an Entrepreneur is the person

    who brings about a change and possesses characteristics to implement ideas to benefit

    the society as a whole. Only a few people are talented enough to manage this change.

    Apart from this definition, a simple explanation of the term Entrepreneurship is that

    it is the person who wants to work for himself.

    The Austrian economist Schumpeter defines Entrepreneurship as an event that

    introduces a new product, a new product method, new markets or a new form of

    organization. According to Schumpeter, in a perfect scenario, these actions will help

    generate wealth by creating a demand in the market from a newly introduced

    innovation. Thus, a true Entrepreneur is one who combines the input factors in such a

    manner that will generate a greater output. This greater output from the various input

    factors will result in creating wealth for the society.

    ENTREPRENEURSHIP AND SOCIETY

    Entrepreneurship helps the society as well as the entrepreneur, itself. The benefitsof an entrepreneurship may be divided into three distinct categories that include the

    benefits to the nation, benefit to the society and the benefit to the individual.

    As already discussed, an effective entrepreneurship venture fosters the

    production of wealth for a nation. When many of the entrepreneurship produce an

    output greater than the input, the economy of the nation is directly bolstered. Another

    advantage to the nation is the creation of jobs for its people. Such a job creation

    utilizes the human resources of that particular country and helps the natural talent

    materialize. With the new inventions and development in the new technology a nation

    can use its resources more effectively. Since, a majority of the entrepreneurship

    projects are private; it provides an environment of competitiveness which further

    increases the quality of the products in the national markets. By privatizing the local

    economy, entrepreneurship ventures help attract eager foreign firms who areotherwise reluctant to do business with the government subsidized economy.

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    The income level of the average person and the standard of living of a society

    increase with every successful entrepreneurship project that is undertaken. There is an

    increase in the employment level on the regional scale. It is also noticeable that an

    entrepreneurship helps develop other entrepreneur businesses because of the extra

    incentives that it can provide to a new entrepreneur in the shape of capital, knowledge

    and technology. Entrepreneurship helps the societies to fulfill its basic needs in the

    world that calls for the survival of the fittest. Entrepreneurs lead by example in

    assisting the society and therefore boost the moral of the public.

    An entrepreneur helps himself while creating opportunities for others. It is a

    fact that by doing so an entrepreneur fulfills his creative urge. Each successful project

    carried out by the entrepreneur leads to self satisfaction. The greatest satisfaction is

    derived from the fact that the individual is his own boss and therefore can use its

    creativity without any fear of repercussion. The quality of every good entrepreneur

    project is the profit and the fame that such a career provides. Infect, entrepreneurs

    always enjoy respect and high status in their communities.

    FUNCTIONS AND FEATURES OF ENTREPRENUERSHIP

    Ever since the French economist Richard Cantillon tired to define the

    entrepreneurship, there has been a debate on the exact role and functions of an

    entrepreneur. Apart from the differences in defining the term, all of the economist

    from Adam Smith, David Ricardo to the\ modern economist like Mill and Marshall

    agree that entrepreneurship plays an important role in developing the economy by

    generating wealth.

    Early economist agreed that among the four factors of production, (land, labor,

    capital and organization) organization is the factor that is the coordinating factor that

    brings together the other three factors and the entrepreneurship is the element that

    powers and strengthens the organization. These economists approved that the

    entrepreneur has a vast understanding of the workings of the industry in which he

    determines to undertake the venture. Also, the entrepreneurship is a skill that not

    everyone possesses. The ability to be an entrepreneur is inherited and is displayed by

    a minority in a population.

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    A few modern economists believe that entrepreneurship is itself the fourth factor

    of production that is the most important in driving a successful economy. These

    experts are of the view that entrepreneur are defined by their risk taking abilities and

    their intentions to fill in the void because of the existing lack of knowledge about a

    product. According to them the entrepreneur ventures are carried out where there is a

    gap in the development of a product. The entrepreneurs work to fill the gap by

    introducing something that increases the effectiveness of the already existing product.

    Still, many recent theories of entrepreneurship stress that it is not only the

    inherent and risk taking abilities of a person that can define an entrepreneur but also

    the ability to predict where the opportunity for growth exist. By grasping these

    favorable opportunities, an entrepreneur works to create a new product by using

    innovation. The new entrepreneurs are able to track the deficiencies in the demand

    and supply of the market and provide a new improved product, for which there will be

    a demand. It is true that a great amount of entrepreneurship projects in the developing

    countries can be attributed to inventing a new product, very few of the entrepreneurs

    can innovate a new product in less developed countries due to limited resources.

    Therefore, in the third world countries the definition of the entrepreneur can be

    modified to include those people who try to improve on the existing technology which

    is already present in the developing countries.

    ENTREPRENUERSHIP AND BUSINESS ENVIRONMENT

    The state of the society and the government are interdependent on the manyentrepreneur projects being undertaken around the world. The role of each

    entrepreneurship projects differs widely on a global scale due to the disparities in the

    local business environment. In developing countries, the process of privatization has

    helped to eliminate restrictions on the kind of opportunities that exist in the market.

    Whereas, socialist countries have historically helped entrepreneurs who have shown

    keen interest in optimizing the plans of the government. On the other side, less

    developed counties have rarely provided the entrepreneur a thriving atmosphere.

    The major hurdles that the new entrepreneurs face are the availabilityof resources

    to carry out such a business. The most important is the allocation of funds that comes

    in the form of money to research and development. Another largely ignored factor is

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    the availability of knowledgeable partners who can run a successful entrepreneurship

    after its initial stage. This is so because there is a great tendency for the entrepreneur

    to move from one project to another. The lack of knowledge on part of the

    management can halt the development process, if adequate training is not provided.

    Historically, women owned businesses have not been successful even in the

    developing countries due to the lack of government support. It remains the most

    significant problem in mainly the theoretical and male dominated societies.

    Governments can help improvise the entrepreneurial spirit by not only removing

    the hurdles described above but by creating an industrial atmosphere that is favorable

    to the structural change. If the resources are allocated from the losers to gainers by

    purchasing the sales of assets, the entry and exist of the firms and rise and fall of the

    industries, the governments can effectively allocate resources to the successful

    entrepreneurs.

    Experts agree that the most effective method of managing the entrepreneurship

    industry is to foster the start-ups. Among other techniques, this can be achieved by

    minimizing the paper work and formalities for the new starter. A single identification

    number should be issued to every new entrepreneurial project to track down each

    case. The authorization process should not take long and the case decisions should be

    made by a fixed date. Tax treatment of the new subsidiaries and the policies on

    induction of new employees should be simplified.

    TYPES OF ENTREPRENUERSHIP

    According to Schumpeter, there are five basic types of entrepreneurshipprojects. The introduction of a new good in the market is the first of these. By new

    product, it means something that has been invented and has never been available in

    the market. In simple terms, whenever a new invention is made, it is seen as an act of

    entrepreneurship. The second is the introduction of the new method of production. As

    we know that it is production of goods that forms the pillar of the economy. By new

    method, it is assumed that the method that is effective and efficient and is able to

    improve on an existing production method. The third type of entrepreneurship is the

    opening of a new market. Whenever, such resources are provided that enables the

    population to benefit, whether it is an economic, education or any other benefit, it

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    establishes a new opportunity that is known as a new market for using that particular

    resource. The fourth factor is the conquest of a new source of supply. Economist

    believes that a new supply source allows the industry to increase its productivity. This

    new source can be in many forms including the discovery of a natural resource (oil,

    steel etc) or attracting a labor force that hasnt been exposed to that industry. The last

    but not least is the carrying out the new organization of industry that will increase

    human welfare.

    Although, all of the five types of entrepreneurship are important but according to

    Schumpeter, the most influential is the introduction of the new product in the market

    (invention) that will directly increase the human welfare. The remaining four factors

    indirectly affect the human welfare by reducing the cost. Therefore, in order for the

    remaining four factors to contribute, it is important that the first factor be present and

    it can only be done with the invention of a new product.

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    Ever since the invention of the phonograph in 1876, music has been a popular

    source of home entertainment. In recent years, the compact disc has become the

    playback medium of choice for recorded music.

    A compact disc, or CD, is an optical storage medium with digital data recorded on it.

    The digital data can be in the form of audio, video, or computer information. Whenthe CD is played, the information is read or detected by a tightly focused light source

    called a laser (thus the name optical medium). This article will focus on audio

    compact discs, which are used to play back recorded music.

    The history of the compact disc can be traced back to the development of electronic

    technology and particularly digital electronic technology in the 1960s. Although the

    first applications of this technology were not in the recording area, it found increasing

    use in audio components as the technology evolved.

    During the same period, many companies started experimenting with optical

    information storage and laser technology. Among these companies, electronic giantsSony and Philips made notable progress in this area.

    By the 1970s, digital and optical technologies had reached a level where they could be

    combined to develop a single audio system. These technologies provided solutions to

    the three main challenges faced by the developers of digital audio.

    The first challenge was to find a suitable method for recording audio signals in digital

    format, a process known as audio encoding. A practical method of audio encoding

    was developed from the theories published by C. Shannon in 1948. This method,

    known as pulse code modulation (PCM), is a technique that samples a sound during a

    short time interval and converts the sample to a numerical value that is then

    modulated or stored for later retrieval.

    The storing of audio signals in digital form requires a large amount of data. For

    instance, to store one second of music requires one million bits of data. The next

    challenge, therefore, was to find a suitable storage medium to accommodate any

    significant amount of sound. The solution to this problem came in the form of optical

    discs. An optical disc can store large amounts of data tightly compressed together. For

    example, one million bits of data on a CD can occupy an area smaller than a pinhead.

    This information is read by means of a laser beam that is capable of focusing on a

    very narrow area as small as 1/2500th of an inch.

    The final challenge of digital audio was to process the densely packed information on

    compact discs quickly enough to produce continuous music. The solution was

    provided by the development of integrated circuit technology, which allow the

    processing of millions of computations in just micro-seconds.

    By the late 1970s, a common set of standards for the optical storage discs had been

    developed by the joint efforts of Sony and Philips. A consortium of 35 hardware

    manufacturers agreed to adopt this standard in 1981 and the first compact discs and

    compact disc players were introduced in the market in 1982.

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    Making a compact disc involves first preparing a glass "disc master." This master is

    then encoded with the desired information and put through a series of electroforming

    steps. In electroforming, metal layers are deposited on the glass master using electric

    currents. When the final master version is ready, its information is transferred onto a

    plastic disc. A reflective aluminum layer is applied, followed by a clear acrylic

    protective layer, and finally the label.

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    RAW MATERIAL

    A compact disc is a deceptively simple looking device considering the technology

    required to make it. CDs consist of three layers of materials:

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    A base layer made of a polycarbonate plastic.

    A thin layer of aluminum coating over the polycarbonate plastic.

    A clear protective acrylic coating over the aluminum layer.

    Some manufacturers use a silver or even gold layer instead of the aluminum layer in

    the manufacture of their compact discs.

    DESIGN

    The compact disc is designed strictly according to the standards established by Sony

    and Philips in order to maintain universal compatibility. A CD is 4.72 inches (120

    millimeters) in diameter and .047 inches (1.2 millimeters) thick. The positioning hole

    in the middle is .59 of an inch (15 millimeters) in diameter. A CD usually weighs

    around .53 of an ounce (15 grams).

    A standard CD can store up to 74 minutes of data. However, most CDs contain only

    about 50 minutes of music, all of which is recorded on only one side of the CD (the

    underside). The recorded data on the CD takes the form of a continuous spiral starting

    from the inside and moving outward. This spiral or track consists of a series of

    indentations called pits, separated by sections called lands. A tiny laser beam movingalong the track reflects light back to a photo sensor. The sensor sees more light when

    it is on a land than when it is on a pit, and these variations in light intensity are

    converted into electrical signals that represent the music originally recorded.

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    This business plan is to install a manufacturing plant for compact disk. In such

    a location where we can easily get the raw materials and target market. Our

    manufacturing process will go through the following process.

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    1. Premastering

    First, we ensure the CD-ROM content provided by ourcustomers meets the proper ISO standards when it is organized

    on the disc. This is an essential step to guarantee quality for

    professionals who require precise, high quality data

    reproduction that is backed by ISO certification.

    Figure 1.1-Premastering

    2. Mastering

    Then we create a glass master covered with a photosensitive

    layer and engrave all our customers information on it with a

    laser light. To help fight against piracy on behalf of our

    customers, the plant engraves its International Federation of the

    Phonographic Industry (IFPI) number on every glass disc it

    produces. Following that, a fine silver coating is applied to the

    glass masters surface by a process known as vacuum

    evaporation.

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    Figure 1.2-Mastering

    3. Electroplating

    The glass master is then transformed into a mould which is

    used to press discs. This is achieved by adding a layer of nickel

    on the glass master by means of electrolysis. The nickel layer is

    then separated from the glass base to recover the negative of

    the CD. The result is what is called the stamper. Other masters

    can be produced by repeating the electrolysis phase.

    Figure 1.3- Electroplating

    4. Pressing

    With the mould ready, CDs can now be replicated.

    Liquefied polycarbonate is then injected into the mould and,

    after only a few seconds of pressing, a compact disc containing

    all the data is quickly created.

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    Figure 1.4- Pressing

    5. Metallization

    In order for the CD to be readable, it must be covered with a

    micro thin layer of aluminum which is vacuum laid. The

    aluminum surface acts as a mirror to reflect the laser light back

    so information can be read.

    Figure 1.5- Metallization

    6. Varnishing

    To protect the CD and its information from harm scratching,

    bending, or dropping it the disc is covered with a layer of

    varnish. The lacquer envelops the aluminum and seals it from

    the elements. The disc is then ready for printing.

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    Figure 1.6- Varnishing

    7. Label Printing

    The final touch comes with the printing of the label right on the

    disc, either by a silk screen or offset process or with up to six

    colors. The result is a clean, polished appearance.

    Figure 1.7 Label Printing

    8. packaging

    The CD is automatically packaged and prepared for shipping.

    We are committed to providing customers with the highest

    quality printing services and the most complete selection of

    packaging solutions in the industry. We know the importanceof choosing packaging that has maximum customer impact, and

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    offer a variety of options from cost-saving automated

    packaging to custom-made solutions.

    Figure 1.8 Packaging

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    3.4.1 Land and Building:

    Serial

    .No.

    Particular Area Required Total

    Value(Rs)

    Remarks

    1. Land 2 acres 10,00,000 Permanent purpose

    2. Plant 1500 Sq Feet 25,50,000 Manufacturing plant

    3. Building 2 acres

    15000 Sq. Feet

    25,50,000 Buildings for

    accommodating the entire

    staff.

    Total : 51,00,000

    3.4.2 Machineries / Equipments:

    Sr. No. Description Nos. Required Rate(Rs.) Total Value(Rs.)

    1 CD Mastering machine 2 50,000 1,00,000

    2 Electro plating machine 2 10,000 20,000

    3 Processing machine 2 15,500 31,000

    4 Metallization machine 2 10,000 20,000

    5 Varnishing machine 2 7,000 14,000

    6 Label printing machine 2 5,500 11,000

    7 Packaging machine 2 22,000 44,000

    8 Computers 15 30,000 4,50,000

    9 Printers 5 3,000 15,000

    10. Scanners 5 3,500 17,500

    Total: 7,22,500

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    3.4.3. Miscellaneous Fixed Assets:

    Serial No. Particular Requirement Rate (Rs.) Total Value

    (Rs.)

    1. Personal

    Computers

    10 32000 3,20,000

    2. Documents

    and

    Stationeries

    Paper, Office

    Accessories etc

    30000 30,000

    3. Printers 4 2000 8,000

    4. Furniture Sofa, Chair,Table, etc

    30,000

    5. Phone and fax 2 10,000

    Total 3,98,000

    3.4.4. Preliminary and Pre Operative Expenses:

    Serial

    No.

    Particulars Amount

    (Rs.)

    Remarks

    1. Interest during

    Implementation

    64,000 If we take a loan of Rs 80,00,000

    2. Establishments 15,00,000 For creating the Business Area

    3. Start Up Expenses 20,15,000 For starting the Business

    Total : 22,46,200

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    3.4.5 Working Capital:

    SerialNo.

    Item Rs.

    1. Raw Material 3,25,000

    2. Salary 15,00,000

    3. Interest on Loan 8,00,,000

    4. Rent 7,50,000

    Total : 29,60,200

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    4.1. Present Demand and Supply of the ProductCompetition:

    We have to make compact disc that will use by all the audio & video companies &

    local softwares/hardwares vendors. This is going to help a user in many ways. Thereare no further charges of this product.

    The CD system technology has come a long way in the last few years, and new

    applications for compact disc systems are being discovered every day. The market has

    already seen the introduction of CD-ROMs, CD-Videos and CD-Interactive. The

    latest product to attract consumer attention is Kodak's Photo-CD, which can display

    photographs on television and computer screens. These pictures can be edited or

    cropped by the user, just like clip art images.

    Our plan is to start our business with most of our local audio companies, video

    companies and Software companies. When we can able to grab a better market

    condition in local market we must tries to spread our business in global market. We

    also planed to target most of the office stationary suppliers.

    Hence we get the market of small businessmen to youngsters who are in largenumbers hence our business will do well during the start and flourish afterwards.

    4.2 Target Clients:

    Our main target clients are sarthak music, Samrat cassettes, TP musics ,T-series &

    local software companies like-NTCS, 3M business solution private ltd. That includes

    around the 70% of the total population and which is a large target section.

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    4.3 Marketing Strategy:

    The Marketing Strategy will be advertising the product in the media and by

    companys representatives by visiting various target clients and by making them

    aware of the features, application and the type of technology used in product. Our

    main aim is to target all those above music companies & software companies all over

    the country.

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    5.1 Technical Know How Availability:

    Books related to CD manufacturing process, Chemistry, Polymer Science and

    Material Science. Different working platforms like Windows, Linux etc and

    processing skills like premastering, mastering, electroplating, varnishing, labeling for

    the enhancement of the CD manufacturing technology and for development of the

    new technology.

    5.2 Steps by Step Description:

    1) Study and analysis of whole project: - It includes knowing the full

    manufacturing process of the project i.e. what the project means and how to do

    the project.

    2) Design of the Compact Disc includes these processes:-

    Premastering.

    Mastering

    Electroplating

    Pressing

    Metallization

    Varnishing

    Label printing

    Packaging

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    Number of Working Days per Annum:

    The Industry will remain open for all weekdays except Sundays and National

    holidays.

    Number of Working Shifts:

    Since it is a service and production firm it follows a shift system which has working

    hours from 9:00am to 5:00 pm for 1st shift and from 10:00pm to 6:00am for the other.

    6.2.1 Sales Revenue:

    The sales revenue of the business depends on the number of clients it has dealt with in

    the present year.

    Year No of Items Quantity sold per

    year

    Unit Price

    In Rupees

    Total

    Realization(Rs)

    2007

    700MB CD-R 40,00,000 3 1,20,00,000

    700MB CD-RW 5,50,000 10 55,00,000

    128MB CD-R 10,00,000 3 30,00,000

    128MB CD-RW 1,50,000 10 15,00,000

    Total: 2,20,00,000

    Utilities:

    SerialNo. Particulars Expenditure(Rs.) Remarks

    1. Power/Electricity 1,50,000

    2. Water 10,000

    3. Miscellaneous 30,000

    Total : 1,90,000

    Salaries/Wages:

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    Serial

    No

    Particulars Numb

    ers

    Wages/Salary per month

    (Rs.)

    Annual Expenses

    (Rs.)

    1.

    2.

    3.

    Skilled

    Semi-skilled

    Unskilled

    3

    8

    18

    75,000

    1,20,000

    1,26,000

    9,00,000

    14,40,000

    15,12,000

    4. Office Staff 10 1,00,000 12,00,000

    Total : 50,52,000

    Repairs and Maintenance:

    Repair and Maintenance charges are based upon the amount of work to be put in by

    the system manager and team to get the assignment finished correctly and completely.

    Selling and Distribution Expenses:

    Serial

    No.

    Particulars Amount

    (Rs.)

    Remarks

    1. Publicity Expenses 1,00,000

    2. Traveling 80,000

    3. Commission 10,000

    Total : 1,90,000

    Administrative Expenses:

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    Serial

    No.

    Particulars Amount

    (Rs.)

    Remarks

    1. Stationery\Printing 40,000

    2. Post\Telephone 30,000

    3. Entertainment 1,00,000

    Total : 1,70,000

    6.2.7 Interest:

    Year Outstanding

    Loan Amount

    (Rs)

    Interest Installment(Rs.) Balance(Rs.)

    1 80,00,000 8,00,000 9,00,000 88,00,000

    Depreciation:

    Sr.

    No.

    Type of Asset Cost of

    Asset

    Expected

    Life

    Depreciation Total

    Amount(Rs.)

    1. Computer 30,000 5 yrs 15,000 3,00,000

    2. A.C. 20,000 5 yrs 5,000 25,000

    Total 3,25,000

    Misc. Expenses:

    Sr.

    No.

    Description Cost

    1. Furniture 40,000

    2. Coffee Maker 5,000

    3. A.C. 1,00,000

    Total 1,45,000

    Rent:

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    Sr.

    No.

    Item Rs.

    1.

    2.

    3.4.

    Building

    Electricity

    WaterPhone

    6,00,000

    1,50,000

    10,00030,000

    Total 7,90,000

    Total Cost of the Project:

    Sr. No. Particulars Total Value(Rs.)

    1.

    2.

    3.

    Fixed Capital

    (Total of item No.2.1,2.2,2.3)

    Working Capital margin

    (Total of item No. 2.5)

    Preliminary & Pre-operative

    Expenses

    (Total of item No. 2.4)

    23,80,500

    29,60,200

    22,46,200

    Total 75,86,900

    Means of Finance:

    Sr. No. Particulars Amount

    (Rs.)

    Remarks

    1. Own Investment 30,00,000

    2. Term Loan 80,00,000

    3. Working Capital Loan 6,86,900

    4. Any Other Source

    Total: 1,16,86,900

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    Serial

    No.

    Particulars Amount (Rs.)

    1. Sale Realization 2,20,00,000

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    2. Cost of Servicing/Manufacturing

    i. Utilities 1,90,000

    ii. Selling and Distribution 1,90,000

    iii. Salary \ wages 50,52,000

    iv. Administrative Expenses 1,70,000

    v. Interest 8,00,000

    Vi Rent 7,90,000

    Vii Depreciation 3,25,000

    Viii Misc. expenses 1,45,000

    Ix Annual working capital 30,00,000

    Total 1,06,62,000

    3. Gross Profit 1,13,38,000

    4. Income tax 33,08,000

    5. Net Profit 80,30,000

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    A compact disc is a very precise and accurate device. The microscopic size of

    the data does not allow for any errors in the manufacturing process. The smallest of

    dust particles can render a disc unreadable.

    The first quality control concern is to ensure that the clean room environment is

    properly monitored, with controlled temperature, humidity, and filtering systems.

    Beyond that, quality control checkpoints are built into the manufacturing process. Thedisc master, for instance, is inspected for smoothness and its photo resist surface for

    proper thickness by means of laser equipment. At later stages in the process, such as

    before and after the aluminum coating is deposited and after the protective acrylic

    coating is applied, the disc is checked automatically for warps, bubbles, dust particles,

    and encoding errors on the spiral track. This mechanical checking is combined with

    human inspection using polarized light, which allows the human eye to spot defective

    pits in the track.

    In addition to checking the discs, the equipment used to manufacture them must be

    carefully maintained. The laser cutting machine, for instance, must be very stable,

    because any vibration would make proper cutting impossible. If strict quality control

    is not maintained, the rejection rate of CDs can be very high.

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    BIBLIOGRAPHY

    MAGAZINES:

    1. CHIP

    2. DIGIT3. PC WORLD

    4. PC QUEST

    5. Red Book (audio CD standard)

    6. DVD-Audio

    7. Computer hardware

    8. Phase-change Dual

    9. DVD-ROM

    10.CD/DVD authoring

    11.CD shattering

    12. MultiLevel Recording, an obsolete technology (with non-binary modulation)

    - 45 -

    http://en.wikipedia.org/wiki/DVD-Audiohttp://en.wikipedia.org/wiki/Computer_hardwarehttp://en.wikipedia.org/wiki/Phase-change_Dualhttp://en.wikipedia.org/wiki/Phase-change_Dualhttp://en.wikipedia.org/wiki/DVD-ROMhttp://en.wikipedia.org/wiki/CD/DVD_authoringhttp://en.wikipedia.org/wiki/CD_shatteringhttp://en.wikipedia.org/wiki/MultiLevel_Recordinghttp://en.wikipedia.org/wiki/DVD-Audiohttp://en.wikipedia.org/wiki/Computer_hardwarehttp://en.wikipedia.org/wiki/Phase-change_Dualhttp://en.wikipedia.org/wiki/DVD-ROMhttp://en.wikipedia.org/wiki/CD/DVD_authoringhttp://en.wikipedia.org/wiki/CD_shatteringhttp://en.wikipedia.org/wiki/MultiLevel_Recording
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    WEBSITES:

    1. www.wikipedia.com

    2. www.google.com

    3. How CDs Workfrom HowStuffWorks.com

    4. Andy McFadden's CD-Recordable FAQ5. Understanding CD-R & CD-RWby Hugh Bennett

    6. Inside a CD-ROM drive from The PC Doctor

    7. Comparative perspective on CD data transfer rates. Database for examination

    http://www.wikipedia.com/http://www.google.com/http://computer.howstuffworks.com/cd.htmhttp://computer.howstuffworks.com/cd.htmhttp://computer.howstuffworks.com/cd.htmhttp://www.cdrfaq.org/http://www.osta.org/technology/cdqa.htmhttp://www.pcdoctor-guide.com/wordpress/?p=1396http://www.pcdoctor-guide.com/wordpress/?p=1396http://www.pcdoctor-guide.com/wordpress/?p=1396http://www.units-of-measure.com/Block_Database_Pages/Seconds_-08_-10.htmlhttp://www.wikipedia.com/http://www.google.com/http://computer.howstuffworks.com/cd.htmhttp://www.cdrfaq.org/http://www.osta.org/technology/cdqa.htmhttp://www.pcdoctor-guide.com/wordpress/?p=1396http://www.units-of-measure.com/Block_Database_Pages/Seconds_-08_-10.html