PROJECT REPORT ON SAFETY & HEALTH PROGRAMME ON AWARENESS BY PEOPLE’S CENTER

FOUNDATION

TOTAL PROJECT COST Rs: 400000

FIXED CAPITAL Rs: 250000

WORKING CAPITAL Rs: 150000

MEANS OF FINANCING BANK

TERM LOAN 80% Rs: 200000

WORKING CAPITAL 80% Rs: 120000

PROMOTER’S CONTRIBUTION 20% Rs: 80000

EMPLOYMENT Nos. 6

B.E.P. % 46.98

AVERAGE D.S.C.R. % 8.85

INTRODUCTION:
The role of human resource management within the economy is firstly to integrate the aspects of
the economy with the existing processes, policies and strategies of the organization. The needs of
the human resources within the organization need to be re-evaluated and people must be placed at
the heart of corporate purpose. Human resource management has to alert the top management of
how important the internet, e-commerce and globalization are for the organization’s success and
competitive advantage. Incorporating these means that change will occur. It will be the role of the
human resource professionals to act as an interface between top management and the employees
during this period of change. Employees are endowed with skills, knowledge, abilities, values,
attitudes, aptitude etc. They come to the organization with all these varieties of human resources.
Though the job and the organization mostly require employee’s skills and knowledge, it is inevitable
to the management to bear and respect the total employee. Then only the employee commits
himself to the organization. “A state of complete physical, mental and social well being and not
merely the absence of disease or infirmity”.

Preservation and maintenance of physical health.

Preservation and maintenance of mental health.
Preservation and maintenance of social well being.
Preservation and maintenance of working environment that promotes health.
Prevention of working condition causing pollution and health hazard.
Protecting workers from risks and other occupational health hazards.
Designing works station and equipment to suit individual physique and psychology.

BASIC ASSUMPTIONS
Bank will take his own credit decisions
Fixed Capital has been calculated on the basis of total outlay on Land & Building, Plant & Machinery
expenses
Working Capital Requirement, Cash Credit Limit an Margin has been calculated as per the
recommendation of Nayak Committee instituted by the RBI.
Capacity Utilization has been considered on the basis of @70%, 75%, 80%, 85%, 90% on its installed
capacity in the 1st, 2nd, 3rd, 4th & 5th year respectively and its assumed that the same would be
stabilized thereafter.
Labour & wages have been taken on the basis of statutory minimum wages & as per the prevailing
market places in Odisha which may likely to change with time & location of the unit.
Working Capital Requirement, Cash Credit Limit an Margin has been calculated as per the
recommendation of Committee instituted by the RBI.
Project Estimates have been calculated on the basis of 300 working days of Single shift operation
and each shift of 8 hours duration.
Eight hours per day 25 Days per month have been considered in preparing the project. Minimum
labour wages have been considered in preparing the scheme.

60% of total recurring expenses Expect Raw Materials is treated as fixed cost and 40% treated as
variable cost.

Project will operate @ 80% in 1st year, 90% in 2nd year and 100% from 3rd year onwards
Term Loan will be repaid from end of 2nd year per annum Rs. 40000
Depreciation 10% on machinery & 5% on shed per year on W.D.V. method
It is assumed that all transaction will be routed through bank/cash only.

FINANCIAL ASPECTS
FIXED CAPITAL
Land Rented
Building/Already Constructed 850 Sft PM Rented 3000

Plant & Machinery & Office Furniture Qty Rate Amount 250000
Health care equipments for awaring the needy
1 LS 100500 100500
person
Medical fitness equipments 1 LS 69500 69500
First-Aid equipments, Hand tools & other fixed
1 LS 20000 20000
assets
Add GST @18% 1 18% 34200 34200
Electrification & Installation, Counter Cup Board
and Office Furniture, Show Case, Rack, Furniture & 1 LS 25800 25800
Fixture
TOTAL BLOCK CAPITAL Rs. 250000
WORKING CAPITAL (PER MONTH)
Raw Materials & Consumable Rs. 90000
All types of medicines for awareness 1 LS 70000 70000
Tool kit 1 LS 20000 20000

Salary & Wages Per

No/Nos Rs. 40000
Month
Manager cum Supervisor 1 No Self
Master trainer 1 Nos 10000 10000
Assistance 2 Nos 8000 16000
Semi Skilled Worker 2 Nos 7000 14000
Sub Total 6 Nos
Other Overheads Rs. 20000
Rent 3000
Electricity 8000
Repair & Maintenance 2000
Telephone Charges 1000
Travelling & Transportation Expenses 5000
Miscellaneous Expenses 1000
TOTAL WORKING CAPITAL (FOR 1 MONTH) Rs. 150000

TOTAL PROJECT COST

1 Fixed capital Rs. 250000
TOTAL PROJECT COST 2 Working Capital Rs. 150000
TOTAL Rs. 400000

MEANS OF FINANCE
A Promoters contributors 20% 80000
B Term Loan 80% 200000
MEANS OF FINANCE
C Working Capital Loan 80% 120000
TOTAL Rs. 400000
 No MM(Subsidy) will be provided from GOVT. as MSME Loan will Financed by Branch Level in the
name of the Institutional/Skill training purpose.

DEPRECIATION SCHEDULE
PARTICU GROSS ADDITIO GROSS DEPRECIAT DEPRECIAT TOTAL W.D.V. UP W.D.V. AT

DEDUCTION
LARS BLOCK N BLOCK ION UP TO ION DEPRECIAT TO THE END
AT THE PREVIOUS DUTING ION PREVIOUS OF THE
END OF YEAR THE YEAR YEAR YEAR
THE
YEAR

1ST YEAR
Building
0 0 0 0 0 0 0 0 0
Mach &
Equip 0 250000 0 250000 0 25000 25000 0 225000
TOTAL
0 250000 0 250000 0 25000 25000 0 225000
2ND YEAR
Building
0 0 0 0 0 0 0 0 0
Mach &
Equip 250000 0 0 250000 25000 22500 47500 225000 202500
TOTAL
250000 0 0 250000 25000 22500 47500 225000 202500
3RD YEAR
Building
0 0 0 0 0 0 0 0 0
Mach &
Equip 250000 0 0 250000 47500 20250 67750 202500 182250
TOTAL
250000 0 0 250000 47500 20250 67750 202500 182250
4TH YEAR
Building
0 0 0 0 0 0 0 0 0
Mach &
Equip 250000 0 0 250000 67750 18225 85975 182250 164025
TOTAL
250000 0 0 250000 67750 18225 85975 182250 164025
5TH YEAR
Building
0 0 0 0 0 0 0 0 0
Mach &
Equip 250000 0 0 250000 85975 16403 102378 164025 147623
TOTAL
250000 0 0 250000 85975 16403 102378 164025 147623
 PROJECTED TRADING, PROFIT & LOSS ACCOUNT
PARTICULARS (DR.) 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR
Raw Materials 864000 972000 1080000 1080000 1080000
Other Recurring Expenses 576000 648000 720000 720000 720000
Depreciation 25000 22500 20250 18225 16403
Interest 35520 36960 33600 28800 24000
TOTAL (A) 1500520 1679460 1853850 1847025 1840403

PARTICULARS (CR.)
By earning from remuneration 1830000 2058750 2287500 2287500 2287500
Govt.
[PBT] Profit Before Tax (B-A) 329480 379290 433650 440475 447098
Tax @ 10% 32948 37929 43365 44048 44710
Profit After Tax [PAT] 296532 341361 390285 396428 402388

PROJECTED CASH FLOW STATEMENT

(A) SOURCES 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR
Increase In Capital 80000
Increase in Term Loan 200000
Increase in Working Capital 40000 15000 15000
Net Profit After Tax 296532 341361 390285 396428 402388
Depreciation 25000 22500 20250 18225 16403
MM (Subsidy) from PMEGP 0
TOTAL 641532 378861 425535 414653 418790
(B) APPLICATION
INCREASE IN Fixed Assets 250000
Decrease in Term Loan 40000 40000 40000 40000
Drawings 200000 200000 200000 200000 200000
MM (Fixed Deposit) 0
TOTAL 450000 240000 240000 240000 240000
(C) Cash Surplus for the year (A-B) 191532 138861 185535 174653 178790
(D) Opening Balance 191532 330393 515928 690581
(F) closing Cash Balance 191532 330393 515928 690581 869371

PROJECTED BALANCE SHEET

LIABILITIES 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR
Share Capital (Capital + Profit + 176532 317893 508178 704606 906993
Drawings)
Borrowings (Term Loan & W.C. 240000 215000 190000 150000 110000
Loan)
MM Subsidy 0 0 0
Cash Reserve Ratio 0 0
TOTAL 416532 532893 698178 854606 1016993
ASSETS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR
Fixed Assets 225000 202500 182250 164025 147623
Cash in hand 191532 330393 515928 690581 869371
Fixed Deposit (MM) 0 0 0
TOTAL 416532 532893 698178 854606 1016993
 GROSS DEBT SERVICE COVERAGE RATIO
PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR
Net Profit After Tax 296532 341361 390285 396428 402388
Depreciation 25000 22500 20250 18225 16403
Interest on Term Loan 24000 24000 19200 14400 9600
Total “A” 345532 387861 429735 429053 428390
Interest on Term Loan 24000 24000 19200 14400 9600
Repayment of Term Loan 40000 40000 40000 40000
Total “B” 24000 64000 59200 54400 49600
D.S.C.R. : Total “A” / Total “B” 14.40 6.06 7.26 7.89 8.64
AVG.D.S.C.R. 8.85 %
B.E.P. Break Even Point: Fixed Cost × 100 43200000
= 46.98 %
Sales – Variable Cost 919500

REPAYMENT OF TERM LOAN

PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR
Interest on Term Loan 24000 24000 19200 14400 9600
Repayment of Term Loan 40000 40000 40000 40000
TOTAL (A) 24000 64000 59200 54400 49600