Sorry guys, I should have given more inputs.
My room size: 155 ft'
Movies:40% of time (mostly Hollywood)
Music: 60% of time (Heavy metal and Carnatic (south Indian classical))
Source: DVD (old Phillips one.... working decently), CD, USB, Set Top Box,
As advised, I would prefer to go for a good AV receiver (which can cater to the above mix of music and movies) and front towers for now. Then add a sub little later when the pocket is warm again!! Is that a good plan? Is the budget enough for the AV receiver and front towers? What options do I have in this budget?