This example has a technique to draw a bullet spot on the object, If you follow all the steps that has been mentioned here, I am sure will can allow make it.
Picture: First take a picture to modify, I have taken here a car picture.
Circle: Draw a circle with "5d6780" color by the Ellipse tool (U key) as given here.
Ripple: Go to Filter menu > Distort > Apply Ripple.
You will get it.
A little circle: Now draw a little circle inside the rippled shape with black color.
Layer style: Go to Layer menu > Layer style > Bevel and Emboss.
Blur: Go to Filter menu > Blur > Gaussian blur.
Levels: Go to Image menu > Adjustment > Apply Levels.
This is the bullet holed picture.
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