Project report for VFX studio

Introduction

In India cinema is one of the most popular mean of entertainment, its one of the largest industry in the country where billions of revenue are generated and spent, the history of Indian cinema dated back to  nineteenth century wherein 1896 first film was shown in Mumbai, from then the movie industry and filmmaking had gone through tremendous changes and growth, from black and white era to the latest technological assisted high-resolution definition, a paradigm shift has been happening in the filmmaking format and process, the cinema now become more a technical craft with the great use of software and sophisticated technical gadgets like high-resolution cameras, and the main reason behind this change is the demand of the audience for a quality and realistic experience they are looking for in movies, not only a good story but a great visual experience also turn to be inevitable requirement for the movies. one of the greatest revolutions happen in the filmmaking is the  introduction of visual effects or VFX- it changed the way of making movies in a drastic way,

Visual Effects (abbreviated VFX) is the process by which imagery is created or manipulated outside the context of a live action shot in filmmaking...

Product / Services & process

The use of vfx not only remain with movies, it’s been widely used in all form of visual products, including advertisements, short films, video album, documentaries, serials etc, as we all know the movie and related industries are now on a very growing phase and the best testimony is the increase in number of films made, along with the exposure of internet, and social media, penetration of television even to core remote villages - all these factors really played vital role in the increased demand of visual products like movies to a great level and this increased demand will definitely help in the vfx like ingredient behind making it also worth growing, so in short analysing all these aspects starting a vfx editing studio posses huge scope and with this huge growing market the future of the venture seems more promising.
 

Market potential & Strategy

The market potential is estimated by analysing few elements and prime among them is the

market size - as for a venture like vfx studio the main market lies in the movie industry,India had a total box office gross of US$2.1 billion, third largest in the world. Indian cinema is a global enterprise. it’s a huge and promising one, along with that the related industries like television, advertisement, album making and other visual ventures also came under the market, it makes the size of market much bigger and stronger and demanding. Due to this success history more and more filmmaker’s are planning to take big budget movies where there will be lots of vfx works are going to display, the commercial success of the films and vfx technology used behind it is giving more encouragement to even low budget movie makers to introduce and include those special effects and vfx in their ventures according to the need and budget. So for a vfx editing like venture - the market is a growing one where lots of opportunities are waiting and huge demand to fulfil and tap, along with that related industries like television, the advertisement is also in a growing phase,

Another element to be checked is the profitability of the business- when evaluating profitability, the main thing to give importance is pricing and competition, as far as pricing is concerned, a competitive and affordable pricing strategy is planning to implement- as movies are the main market and movie makers are main customers, an affordable customised pricing strategy according to the each and every customer demand and budget is planning to follow, when evaluating the movie market trend lots of young filmmakers with new concept and with low budget are now in large number, so main target will be those low budget movie makers and and an affordable pricing will make it possible to attract more of them along with that it will help to withstand competition and will help for a smooth market entry ...

PROJECT REPORT

VFX studio

Address

Introduction

In India cinema is one of the most popular mean of entertainment, its one of the largest industry in the country where billions of revenue are generated and spent, the history of Indian cinema dated back to  nineteenth century wherein 1896 first film was shown in Mumbai, from then the movie industry and filmmaking had gone through tremendous changes and growth, from black and white era to the latest technological assisted high-resolution definition, a paradigm shift has been happening in the filmmaking format and process, the cinema now become more a technical craft with the great use of software and sophisticated technical gadgets like high-resolution cameras, and the main reason behind this change is the demand of the audience for a quality and realistic experience they are looking for in movies, not only a good story but a great visual experience also turn to be inevitable requirement for the movies. one of the greatest revolutions happen in the filmmaking is the  introduction of visual effects or VFX- it changed the way of making movies in a drastic way,

Visual Effects (abbreviated VFX) is the process by which imagery is created or manipulated outside the context of a live action shot in filmmaking.Visual effects involved in the integration of live-action footage (special effects) and generated imagery (digital effects) to create environments which look realistic but would be dangerous, expensive, impractical, time-consuming or impossible to capture on film. Visual effects using computer-generated imagery have recently become accessible to the independent filmmaker with the introduction of affordable and easy-to-use animation and compositing software.Visual effects are often integral to a movie's story and appeal. Although most visual effects work is completed during post-production, it usually must be carefully planned and choreographed in pre-production and production. Visual effects primarily executed in Post-Production with the use of multiple tools and technologies such as graphic design, modelling, animation and similar software, Visual effects primarily divided into two groups of special Effects and Digital Effect- Digital Effects often involve the integration of still photography and computer-generated imagery  to create environments which look realistic but would be dangerous, costly, or impossible to capture in camera. FX is usually associated with the still photography world in contrast to visual effects which is associated with motion film production. Digital FX also divides into different subgroups of professions such as: Matte paintings and stills: digital or traditional paintings or photographs which serve as background plates for 3D characters, particle effects, digital sets, backgrounds. Motion Capture (Mo-Cap for short): It’s the process of recording the movements of objects and or people. In a session of motion capture, the subject whose motion is being captured is recorded and sampled many times per second by different scanners placed all over the environment. the motion captured data is mapped to a virtual skeleton using software such as Autodesk’s MotionBuilder or other software of choice. Modelling: Creating 3D models of props or characters using specialised software. Animation: Assign movements for any objects and characters in 2D or 3D. Compositing: Combining visual elements from different sources to create the illusion that all those elements are parts of the same scene. 

 

Product / Services & process

The use of vfx not only remain with movies, it’s been widely used in all form of visual products, including advertisements, short films, video album, documentaries, serials etc, as we all know the movie and related industries are now on a very growing phase and the best testimony is the increase in number of films made, along with the exposure of internet, and social media, penetration of television even to core remote villages - all these factors really played vital role in the increased demand of visual products like movies to a great level and this increased demand will definitely help in the vfx like ingredient behind making it also worth growing, so in short analysing all these aspects starting a vfx editing studio posses huge scope and with this huge growing market the future of the venture seems more promising.
 

Market potential & Strategy

The market potential is estimated by analysing few elements and prime among them is the

market size - as for a venture like vfx studio the main market lies in the movie industry,India had a total box office gross of US$2.1 billion, third largest in the world. Indian cinema is a global enterprise. it’s a huge and promising one, along with that the related industries like television, advertisement, album making and other visual ventures also came under the market, it makes the size of market much bigger and stronger and demanding. Due to this success history more and more filmmaker’s are planning to take big budget movies where there will be lots of vfx works are going to display, the commercial success of the films and vfx technology used behind it is giving more encouragement to even low budget movie makers to introduce and include those special effects and vfx in their ventures according to the need and budget. So for a vfx editing like venture - the market is a growing one where lots of opportunities are waiting and huge demand to fulfil and tap, along with that related industries like television, the advertisement is also in a growing phase,

Another element to be checked is the profitability of the business- when evaluating profitability, the main thing to give importance is pricing and competition, as far as pricing is concerned, a competitive and affordable pricing strategy is planning to implement- as movies are the main market and movie makers are main customers, an affordable customised pricing strategy according to the each and every customer demand and budget is planning to follow, when evaluating the movie market trend lots of young filmmakers with new concept and with low budget are now in large number, so main target will be those low budget movie makers and and an affordable pricing will make it possible to attract more of them along with that it will help to withstand competition and will help for a smooth market entry . When evaluating the competition exists in market, it’s visible that lots of big players are there to compete, but the market is so huge that every player will get their space to run the business,

Another important aspect to evaluate is the service offered, as the vfx editing studio like business is a repeated one, a thorough vigilant in giving high-quality service will be monitored thoroughly, a single mistake can ruin the goodwill and trust , so quality service according to their demand at affordable cost according to their budget will be given the most consideration, to ensure quality along with most modern software and computer system are planning to purchase and along with that planning to hire some professional experts to be part of the team. So when evaluating all these aspects it’s very visible that starting a venture like a VFX studio carries immense scope, with a huge growing movie and other related industries market, in which a huge demand gap existing for a professional VFX studio especially for the low budget filmmaker and to tap that market giving quality service at affordable price with the help of advanced software and computers will definitely help to achieve success of the business.

Project at a glance

Name & Address of Unit

VFX studio

Address

Details of unit
Email : youremail@gmail.com
Phone : 00000
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Name & address of promoter(s)
Name : Your name
Address : Address
Phone : 000000
Designation : Proprietor
E-mail : youremail@gmail.com

Project Feasibility Ratio

Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33

Project Feasibility graph

Revenue v/s Expense Expense Splitup
 
Revenue
 
Expense
Net profit Sales % Quick ratio

Project Cost

Sl. no Item Amount Rs
1 Deposit *******
2 Computer AMD rysen 1900*8 core precessor & Acceosories *******
3 Computer i9 7900 processor & Accesories *******
4 Corner Sopha setty *******
5 Computer Table 2 nos *******
6 Bosq Tqt Chair *******
7 Computer Chair 2 nos *******
8 Visitors Chair *******
9 High Back Chair *******
10 LLOYD SPLIT AC 1 ton *******
11 Inverter *******
12 Furnishing *******
13 Working Capital *******
Total *******

 

Working Capital Computation

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******

Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs
1 Revenue From Service ******* X 12 Month *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Rent *******
2 Accountant *******
3 Designer *******
4 Editor *******
5 Electricity Charges *******
6 Stationary *******
7 Advertisement *******
8 Telephone & Internet *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Deposit ******* 1 ******* *******
2 Computer AMD rysen 1900*8 core precessor & Acceosories ******* 1 ******* *******
3 Computer i9 7900 processor & Accesories ******* 1 ******* *******
4 Corner Sopha setty ******* 1 ******* *******
5 Computer Table 2 nos ******* 1 ******* *******
6 Bosq Tqt Chair ******* 1 ******* *******
7 Computer Chair 2 nos ******* 1 ******* *******
8 Visitors Chair ******* 1 ******* *******
9 High Back Chair ******* 1 ******* *******
10 LLOYD SPLIT AC 1 ton ******* 1 ******* *******
11 Inverter ******* 1 ******* *******
12 Furnishing ******* 1 ******* *******
Total Investment *******
Total Subsidy *******
Net Investment *******

Means of Finance

Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Profitability Statement

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock 0.00 0.00 0.00 0.00 0.00
Total ***** ***** ***** ***** *****
Less :
Opening stock 0.00 0.00 0.00 0.00 0.00
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****

Cash flow statement

Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 0.00 0.00 0.00 0.00 0.00
Subsidy 0.00 0.00 0.00 0.00 0.00 0.00
Termloan ***** 0.00 0.00 0.00 0.00 0.00
Profit before tax with interest 0.00 ***** ***** ***** ***** *****
Increase in WC loan 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 ***** ***** ***** ***** *****
Increase in Current liability 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 ***** ***** ***** ***** *****
Interest on WC 0.00 0.00 0.00 0.00 0.00 0.00
Income Tax 0.00 ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow 0.00 ***** ***** ***** ***** *****
Closing balance 0.00 ***** ***** ***** ***** *****

Balance sheet

Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus 0.00 ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan 0.00 0.00 0.00 0.00 0.00 0.00
Account payable 0.00 0.00 0.00 0.00 0.00
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory 0.00 0.00 0.00 0.00 0.00 0.00
Trade receivables 0.00 0.00 0.00 0.00 0.00 0.00
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****

Repayment of Term loan

Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****

Debt Service Coverage Ratio

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit 0.00 0.00 0.00 0.00 0.00
b).Depreciation 0.00 0.00 0.00 0.00 0.30
c).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
Repayments
a).Loan Principal 0.00 0.00 0.00 0.00 0.00
b).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
DSCR 0.00 0.00 0.00 0.00 0.00

Depreciation

Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building 0.00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Computers/ Printers /Photocopier/Electronic gadget 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Furniture & fixtures 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Racks & storage/Interior works 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new item 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Air-conditioning 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Other investments 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Total less depreciation 0.00 0.00 0.00 0.00 0.00
Total written down value 0.00 0.00 0.00 0.00 0.00

Conclusion

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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