mohan's funds flow

8/6/2019 Mohan's Funds Flow

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FUNDS FLOW STATEMENT

INDUSTRY PROFILE

SALN College of Engg & Mngt Page 1


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INDUSTRY PROFILE

This chapter presents a brief sketch of the profile of HOSPITAL INDUSTRY.

Hospital is a not for profit making. It is a social institution to make available to

society the required Medicare services. As the specified hospitals are growing in number,

each is trying to create a distinct positioning for it self. You must be aware that there are

hospitals, specializing in cardiac surgery, cancer care, spinal injury, eye hospitals, abortion

clinic, maternity homes etc. Each one is trying to take care a unique identity & wants to

create to a specific segment of the market.

Hospitals were setup for as a charitable institution to take care of the sick and poor.

Today the hospitals are a place for the diagnosis & treatment of humanity, the education &

training and research promoting health care activities and to some extent a center helping

bio-social research consider hospital as a social institution for delivering health care,

offering considerable advantage to both patients and society.

HOSPITAL SYSTEM AND FUNCTIONS:

1. When a patient enters a hospital many groups are involved and outside the hospital.

Inside, to name only few, the patient is concerned with admission, doctors, nurses,

dietetics, business office, and house keepers, externally, to name a few, the patient is

involved with relatives, friends and a third party i.e. the payer and is influenced by

governments regulations, accreditation and community



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INFLUENCES THAT WORK ON PATIENTS, DOCTORS AND

HOSPITALSRECEPTIVITY:

INFLUENCES ON PATIENTS:


Patients

Social

Status

EconomicsConditions Kind of illness

Employers

Other pressing

needs

Level of

knowledge

Urgency fortreatment

Friends and

Relatives


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INFLUENCE ON DOCTORS:


Doctors

Structure of the

organization

Socio Economic

Conditions of patients

Employer

Improving

Professional ability Peer Group

Government

Regulations

PROFESSIONAL

ETHICS

Facilities available

at Hospital


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INFLUENCES ON HOSPITALS:

The key inputs of the hospitals are patients-other important inputs are skill &

knowledge of doctors, nurses, and support staff, the level of sophistication of equipment

utilized etc.


Hospital

Medical Ethics

Non Medical Staff

Para-Medical Staff

Patients

Medical

Administrative

Organizations

Gove

rnment

Socio Economic

Condition of nationfood

Medical Staff


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COMPONENTS OF INTERNAL HOSPITAL SYSTEM:

The three major components of internal hospitals system are:

1. The medical staffs, who diagnose, admit and treat patients and perform quality control

procedure through their paramedical staff organization.

2. Programmers for the detection of illness and direct care and cure of patients such as

nursing, X- ray and laboratory.

3. Support and administrative services such as record keeping finance and administration.

The functions of hospitals appear to be obvious, but in reality, these are quite

complex they keep changing with time and evolution of new techniques in the field of

medicine.

FUNCTIONS 0F HOSPITALS:

Some of main functions of hospitals are

1. Patient care function:

It is important to remember that, besides treatment, the attitudes and behavioral

pattern of health professional is known to have an important influence on patient care as

they are directly related to quality of care. The different systems affecting the patients and

their effects are discussed beside.

a. Environmental system

b. Social system

c. Cultural relationships



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d. Seasons have a direct influence on diseases and illness especially in the

context of our country where the variations are too wide.

2. Providing a workshop for physicians:

It has to be understood that the physician is not so much a part of hospital, as the

hospital is part of the physicians practice.

3. Working as community health centre:

Hospitals have been increasing in number to save the population, rather than

sticking to the reactive role of crisis care.

4. Growth and Prestige:

Serving the institution itself is achieving perpetuation, growth and prestige for

institution, its staff and community.

FEATURES OF HOSPITALS:

Some peculiar features of hospitals are given below, which must be kept in mind.

Hospitals are dominated by professionals registered with the medical council. There fore

certain peculiarities of their organizations are

i. The inconsistency between the organizational objectives and of the professional

body cannot be ruled out. This is further complicated by the fact that the rewards received

for achieving the professional objectives may be greater than those received for obtaining

organizational ones.



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ii. These professionals work on management activities in the hospitals on a part

time basis. Most of time the work the consultant does is similar to that done by their

subordinates.

iii. The consultants often prefer to work independently.

iv. In hospitals, the professional qualities of the doctor and Para medical staff are

of primary importance, other considerations being secondary.

v. Promotions are on the criteria established by the organization, and tend to be

time based .Not much emphasis is paid to effectiveness and efficiency in the working of

the hospital.

vi. The professional medical education lays stress on professional discipline, and

does not usually include management education.

vii. Although the leadership job in a non profit organization may require more

management skills, traditions often require that the managerial skills to be a unit in the

professional.

The Hospital produces intangible services rather than tangible goods

Service cannot be stored, these are perishable. It is not easy to measure quality of

service produced. The quality of service cannot be inspected in advance like the goods.

The literature on control techniques tends to emphasize the production environment rather

than on service organization. Example given for explaining techniques like, standard costs,

variance analysis, statistical quality controls, inventory controls etc., do not generally

pertain to service organizations as they are less efficient, even though the statistical

comparisons are not possible in the absence of data on productivity.



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TYPES OF HOSPITALS

Hospital Types:


Size Path Owner ship Objective

Teaching

District

Taluk

PrimaryHealth

Allopathic

Ayurveda

Homeopathy

Unani

Others

Government

SemiGovernment

VoluntaryAgencies

PrivateCharitable

Teaching cumResearch

General

Special


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On the basis of the objective, hospitals are classified as three types such as

teaching-cum-research for developing medicos & promoting research to improve the

quality of medical aid. General hospital for treating general aliments & special hospitals

for specialized services in one (or) a few selected areas.

Types of ownership are four. They are of government hospitals which are owned,

managed & controlled by government. Semi government hospitals which are partially

shared by government voluntary organizations which in addition to the charitable

activities also run hospitals.

On the basis of path of treatment, we find allopath (or) say the system which is

promoted under the English system. Ayurveda is based on Indian system where herbals

are used for preparing medicine like this we find Unani & others.

On the basis of size, we find variation in the size of hospitals. Such as teaching

hospitals generally have five hundred beds which can be adjusted in tune with the number

of students. The district hospitals generally have two hundred beds which can be raised to

three hundred in the face of changing requirements. The Taluk hospitals generally have

fifty beds that can be raised to one hundred depending upon the requirements. The primary

health centers generally have six beds that can be raised to ten beds.

EMERGING TRENDS:

A number of spectacular successes have been achieved in India in respect of

medical services, Small pox stands eradicated and plague is on longer a problem,

Morbidity & morality on account of malaria. Cholera and various other diseases have also



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declined; considerably despite a number of constraints we have also been successful in

devising sophisticated world class medical aid.

The crude birth rate and infant morality rate have also been found showing a down

word trend. At the same time, it is important to mention that we still have the largest

number of leprosy patients in the world, cholera is still around & often appears as an

epidemic. Tuberculosis is greater killer, Explaining hospitals and rural health centers but

we have one doctor for 2,165 people where as in Italy it is only for 195 people one doctor

is available. Malaria which had been eradicated (or) dramatically reduced in 17 countries

in the 1960 has now returned to India & the available medicines are found ineffective.

Black fever is found spreading like epidemic. Dengue has been found aggravating and the

magnitude of the problem is very huge.

Hospitals & health centers support and make available to the society the quality of

medical aid. It is amazing that government hospitals are found dying & the rural health

centers have virtually became non existent. Buildings are there, equipments are there,

patients are there, doctors are also there actually but they are busy in their private clinics.

The patients do not get medical aid as minor surgical items are not available in the stores.

The situation is more critical in the rural areas since poorer sections of society fail

in getting the services of rural health center. It is the most vulnerable segment. Viral &

communicable diseases are spreading but hospitals in towns & cities are in a depleted

condition. Malaria, black fever, cholera are spreading like wide fire but the police makers

are found satisfied with the fake data.



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To be more specific in the decades 1980s &1990s, we have witnessed frequent

innovations and inventions in medical sciences but the sophisticated developments

remained confined to the cities precincts only.

The educational institutions, the municipalities, the local bodies, the corporations,

the government& private hospitals and even the voluntary organizations failed in

inculcating mass awareness for rural population. Ultra modern urban elites have played a

big role in making the environment disease prone. We have failed in improving the

Medicare facilities keeping pace with the growing requirements but have been successful

in making the environment unhealthy which is found raising the pressure on both the

government as well as private hospitals.

In view of the prevailing conditions, we expect much more from hospitals

managed by either government (or) private. They are supposed to play an out standing

role. We cannot serve others unless we are strong enough to face rough and tough weather.

This necessitates managerial proficiency, by marketing Medicare services. The hospitals

would not only serve masses but would also be efficacious in inculcating mass awareness

to prevent aliments and to reduce the number of prospects. Contrary to other

organizations, the success rate of a hospital is coiled in the essence of creating mass

awareness and playing an incremental role in preventing aliments & minimizing the

number of prospects.



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COMPANY PROFILE



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APOLLO HOSPITAL PROFILE:

Apollo hospital had begun with the establishment of the first corporate hospitals in

the Chennai in 1983 with 150 beds. It was the vision of the founder & the promoter,

Dr.Prathap C Reddy that embarked on a significant and challenging journey in the field

of health care. Apollo group had setup a full-fledged, multi-specially hospital with the

latest technology & a large team of dedicated specialists & consultants in Chennai in the

year 1983 as its pioneer hospital.

When it comes to health, Apollo believes that there should be no compromise &

that you deserve only the best, the best doctors, the best nurses, the best medical care

system with the most advanced equipment and treatment procedures.



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The Company is committed to provide to their patients the best possible health

care & this commitment is reflected in the entire Apollo group situated at major cities in

India. Each of these is a landmark in high quality health care delivery system.

VISSION

Most essential institutions in society have developed in response to an overwhelming

need...

Sixteen years ago; I lost a patient in India who couldn't make it to Texas for an

open heart surgery. But now people have the opportunity in India to access the best that

healthcare has to offer worldwide. Our state-of-the-art equipment, backed by the world's

best professionals, equals those available globally. To that extent, Apollo's mission may

have been accomplished. Fifteen years into being called a pioneer and leader in

revolutionizing healthcare in India may have been ample reason, traditionally, to rest on

our laurels. Not at Apollo though. We realize that today, people measure companies'

strengths by an array of more demanding criteria than just who-came-first. Quite the way

Apollo measures itself. By constantly measuring our deliverables, we have succeeded in

creating infrastructure that meets the needs of the future that incorporates the latest

technology and provides superior healthcare delivery systems. Our immediate agenda

includes setting up of healthcare facilities in all major Indian cities, 23-hour hospitals,

pharmacies, a pharmaceuticals business and finally, a Health Maintenance Organization

that will give millions of people access to all these facilities. This is an agenda for a

country which is seeing rapid growth. Our mission is also to transcend the realm of

curative care. With a new focus on preventive care, Apollo is going beyond medicine to

bring health to the individual. As the 21st century approaches, we stand committed to



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building an infrastructure that will create an environment that protects and nurtures our

future generations.

THE MAIN HIGHLIGHTS OF THESE ARE

High Qualified Specialists and Doctors:

A specialists consultant manages every department with many years of work

experience in India & abroad. In addition to this house doctors are available for all major

specialties, round the clock.

Sophisticated Equipment and Backup Facilities:

Apollo has the state of art equipment for a multi specialty hospital to offer the best

and complete service under one roof in a safe and speedy way.

Highly Trained Paramedics and Support Staff:

Experienced nurses, technicians and paramedics work as closely knitted groups

committed for excellence in their service and great importance is given for their training.

Personalized Patient Care:

At Apollo patient are given individual attention in a unique family oriental

environment with great attention and care. They believe in taking care of the emotional

needs along with the physical ones.



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HISTORY OF APOLLO GROUP:

The mission of the Apollo group is to bring health care of international standards

within the research of every individual. They are committed to the achievement and

maintenance of excellence in education, research & health care for the benefit of

humanity.

The Apollo Hospitals Enterprises Limited journey begun with the establishment of

the first co-operate hospitals at Chennai in 1983. It was the vision of the founder &

promoters, Dr. Prathap C Reddy that embarked on a significant & challenging journey in

the field of health care. As pioneers, they had a terrific responsibility, in a country where

medicine, medical institution & individual medical performances, is mainly in the hands

of Government Apollo group has set up full-fledged, multi-specialty hospital with the

latest technology & large of dedicated specialist & consultants.

Their commitment & results succeed in touching the hearts & minds of the

community. Patients start pouring in not only from South India but from allover the

country, and abroad as well. This acceptance of the patients and the financial strength, the

company has built up over the years, which has helped them to expand the Apollo

Hospitals Enterprise Limited group in India as well as overseas. In 2004, Apollo, is the

largest private hospitals having retail pharmacies across India with Health & Life style

franchisee clinics and their global presences is felt by the centers in Srilanka, Bangladesh,

UAE, Nepal, Ghana, Nigeria, UK & the kingdom of Saudi Arabia their overall asset value

has grossed Rs.7591.78 Millions.

Along the way to reaching these milestones, they have established commitment to

quality. They have also established position of leadership in the field of health care with



18/104


measures like family health plan, corporate health packages, and facilitating companies in

the public & private sector, Health & Life style clinics laying an emphasis on preventive

medicine, and education and research in hospital administration, nursing, emergency

medicine and physiotherapy.

The Apollo Hospitals Enterprise Limited. (AHEL) evolved with the merger of

IHCL (Indian Hospital Corporation Ltd), DHCL (Deccan Hospital Corporation Ltd) and

OHSL (Om Sindoor Hotels Ltd). The enterprise today controls the wide spread activities

of the group.

On September 18 2008, Apollo Hospitals Enterprise Limited group, Indias first

and Asias largest private health care provider, completed twenty five years of dedicated

service to the people of India, and patients from abroad. What made the occasion even

more important was that it coincided with Apollo Hospital Enterprise Limited group

emerging as the worlds third largest private health services provider. After the modest

beginning in 1983 with a 150 bed hospital of Chennai, they have grown & performed

consistently, touching over 10 million lives & presently having a network of over 43

hospitals, owning & managing more than 10, 000 beds in India. On 27 th anniversary,

Apollo shared plans for growth and reaching out to the global audience. They have already

taken the first definitive steps in the direction of utilizing Indias potential to emerge as the

preferred global health care destination.

The 25th anniversary celebrations were started by Apollo, the first child born at

Apollo Hospitals Enterprise Limited in 1983 & were followed by a pledge by Apollo

Hospitals Enterprise Limited groups 16000 employees, from 46 hospitals, 53 clinics &

from it offices in India & abroad, to reorganization of their commitment to Apollo and to

every patient they treat. The entire program was also available on web. The web sites are



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www.apollolife.com,www.apollohospitals.com,www.apollohospitalsgroup.com and

www.medvarsity.com wherein for people to participate from anywhere in the world to be

a part of the celebrations to mark a milestones in Indian health care.

Apollos mission has been made possible by a leadership that sets the highest

professional standards, provides an inspiring and supportive work environment,

emphasizes the safe and ethical practice of medicine. This is what has made the Apollo

Hospitals Enterprise Limited team of employees & medical professionals take giant strides

in the field of health care, even in the face of challenges and competition. The Apollo

Hospitals Enterprise Limited group is the single largest private hospital group in Asia. It is

widely recognized as the architect of modern health care in India what distinguishes the

Apollo Hospitals Enterprise group is effective resource management and able deployment

of technology and knowledge to service the mankind.

The mission began with the establishment of the corporate hospital in

Chennai in 1983. Today they have Apollo Hospitals Enterprise Limited in many Indian

cities, and have extended their reach to all the regions of the country.

APOLLO HOSPITALS ENTERPRISE LIMITED HAS LAID EMPHASIS

ON PROMOTING MEDICAL TOURISM IN INDIA:

A trend of international patients coming to India, for medical treatment has been

on the rise. Patients prefer to travel here as international standards of health care are

provided at reasonable costs. Apollo has initiated the process of medical tourism by

http://www.apollolife.com/http://www.apollohospitals.com/http://www.apollohospitalsgroup.com/http://www.apollohospitalsgroup.com/http://www.medvarsity.com/http://www.apollolife.com/http://www.apollohospitals.com/http://www.apollohospitalsgroup.com/http://www.medvarsity.com/


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targeting middle-East Asia, South-East Asia, CIS countries, Eastern Africa and Indias

neighboring countries. AHEL has started Tele medicine centers in Kazakhstan, Sudan and

Ethiopia. Apollo is trying to bring together the best of East and West, to capitalize on the

image health business trough Apollo through Apollo health & diet clinics, Apollo

Aesthetic surgical center, international dental clinics, Ayurveda, Aromatherapy, panic

healing, etc. Apollo Hospitals Enterprise Limited, through its managed care projects in

Mauritius, Ghana, Nigeria, Kuwait, Malaysia and Nepal, is on an expansion mode.

Expansion plans in India include managed hospital in Punjab, Fatehpur and Jaipur. The

group is leveraging opportunities in medical business process outsourcing by claims

processing for insurance companies abroad. The medical business process outsourcing

model, one of Apollos latest ventures, has created employment opportunities and valuable

foreign exchange.

QUALITY POLICY:

The people at Apollo Hospitals Enterprise Limited are committed to provide health

care solutions of international standards by creating the ideal work environment and

ensuring the practice of safe and ethical medicine. This firms the basis of their ISO quality

management systems.

QUALITY PROGRAMMERS:

The Hospital is accredited by JCI.( Joint Commission International)

First hospitals to be awarded ISO 9002 certification for quality management

systems.

NABL accreditation in process.



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The groups stringent infection control practices meet W.H.O standards.

Setting standards in quality of service monitored by quality circles.

Being sensitive to the needs and expectations of the customers.

Formulating statutory & regulatory requirements.

Quality planning.

Business planning.

Bringing in accountability at all levels & ensuring effective communication.

Safety and risk management committee.

Professional indemnity.

Hospital insurance.

Infection control.

Preventive maintenance of equipment.

Staff training.

Statutory compliance.

Medical advisory committees constantly monitor.

MEDICAL AUDIT COMMITTEE:

To evaluate medical care rendered to patients infection control committee.

Promotes & advises on best practice.



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Develops & reviews policy.

Provides link for surveillance activity.

Provides guidance of all units pertaining to out break investigation, control of

infectious diseases & isolation.

OPERATION THEATRE COMMITTEE:

Devices policy for theatre operating systems.

Academic council.

Improves academic & research activity.

Drug committee.

Reviews and approves the quality of documentation, plans & programmers of

medical records.

CORPORATE HIGH LIGHTS:

New milestones, now achievements that has been the story of Apollo Hospitals

year after. Some of the more notable achievements and recognition are listed below.

Dr. Prathap C Reddy executive chairman became the first recipient of the Asia

Pacific bio-business leadership award. The award sponsored by global bio-business

initiative, a program of the University of Southern California Marshall Center for global

business excellence (C-GLOBE), recognizes leading individuals, organizations (or)

corporations that best exemplify the spirit of innovation, enterprise, a field that

incorporates health care, bio medical, agricultural, food, environmental and emerging

technology areas.



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The legation for the award said, Through his revolutionizing of modern health

care delivery in South Asia, Dr. Reddy had brought world-class health care and the

benefits of advances technology within the economic and geographic reach of millions of

patients for the first time.

The Dr.B.C.Roy award for excellence in teaching conferred on Dr.T.V.Devarajan,

consultant physician.

Apollo Hospitals, 11 hospitals have been accredited by JCI in the SAARC region.

Recognized as the Super Brand of India in the health care sector in both 2003 &

2004.

Health care excellence award to Chennai Hospital as

Operational Excellence and Overall Best Hospital

Apollo hospitals, Chennai rated the Best Private Sector Hospital for the second

consecutive year by The Week Magazine.

First super specialty corporate hospital, set up in Bangladesh Apollo hospitals,

Dhaka with over 50 specialty departments.

Record-breaking project implementation six centers of excellence in health care

open in just 65 days.

South East Asias first 16-slice PET CT imaging system launched at Apollo

Hospitals Jubileehills and Hyderabad.

Indias largest third party administrator of health insurance, covering 5 million

lives.

The largest pharmacy chain with 800 pharmacies across the country, including in

hospital-in-clinic.



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BUSINESS EXPANSION:

In 2009, Apollo is the Largest Private Hospital Group in Asia with a network of

hospitals, retail pharmacies across India, health and style franchise clinics and a global

presence with centers in Srilanka, Bangladesh, UAE, Nepal, Ghana, Nigeria, UK and the

kingdom of Saudi Arabia. This overall asset value has crossed 1050 cores in 2007-08.

Apollo group Indias Largest Private Health Care Provider completed twenty-six

years of dedicated service in 2009. On this occasion Apollo group shared its vision of

making India the preferred global health care hub.

Apollo Telemedics networking foundation the non-profit organization of AHEL

has tied up with the Anna University & has launched a certificate course on telehealth

technology. This is the formal course of its kind in Asia. It also has a tie up with BCCL

under which the group will extend its medical services to members of cricket fraternity.

COMPANY FACTS:

AHEL is the largest private health provider in Asia and Fourth Largest in the

world. It has evolved in to a health care powerhouse with interests across the entire health

care space. Besides owning and managing hospitals, the group has leadership positions in:

Hospital project consulting.

Health cares IT and Education.

Manpower sourcing & placement.

Medical business process outsourcing.

Retail pharmacies.

Health & life style clinics.



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OWNED HOSPITALS:

46 Hospitals with 10,000 beds.

10 cardio thoracic units.

5 oncology units.

700 Intensive care beds.

MANAGED HOSPITALS:

3107 beds.

PHARMACY OPERATIONS:

Largest retail pharmacy chain in India.

Over 800 pharmacies.

FAMILY HEALTH PLAN:

Largest third party administrator in Asia.

Manages 10 million lives.

23 operating offices.

Affiliated to 1700 major corporate.

APOLLO HEALTH STREET:

Information technology arm of the group.

Tele medicine solutions.

Medical BPO services.

Med varsity, E-learning platform for medical professionals.



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APOLLO EDUCATION & RESEARCH FOUNDATION:

7 colleges of nursing.

Post-Graduate courses in hospitals administration.

Technician courses.

College of physiotherapy.

Clinical trails.

Courses in emergency medicine.

Examination center for FRCS.

Training center for DBN in 16 medical disciplines.

MEDICAL HIGHLIGHTS:

In the delivery of clinical care Apollo Hospitals:

1. Has performed till-date over 7, 50,000 major surgeries and over 1,000,000

minor surgical procedures with success rates on par with international

standards.

2. Has performed over 60,000 cardiac surgeries with a 99.6% success rate.

3. 70% success rate in bone marrow transplants.

4. Has performed over 200,000 Angiograms, 16,200 Angioplasties (PTCA).



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5. Have over 4,000 specialists and super specialists, 3,000 medical officers

spanning 53 clinical departments in patient care.

6. Has employee strength over 15,927 highly motivated and dedicated

professionals who provided the highest quality of patient focused service.

This includes over 15,927 employees as on 31st March2008 in various

administrative positions for smooth and efficient operations in its hospitals.

THE AWARDS RECEVIED:

1. Apollo has received many awards & accolades in recognition of its pioneering

achievement in Indian health care.

a) Apollo hospital Chennai overall best hospitals of the year.

b) Apollo hospital Chennai operational excellence.

c) Apollo specialty hospital, Chennai leveraging global opportunity.

d) Apollo health city, Hyderabad sustained growth.

e) Apollo health city, Hyderabad patient care.

2. Apollo hospital Chennai rated best private sector hospital in India by the

week magazine for 2003, 2004 & 2007.

3. Apollo hospitals recognized as a super brand of India in the health care sector for

2003 & 2004.

4. Apollo clinics awarded franchisor at the year for 2003 & 2004.

5. Asiapacific bio business leadership award 2005 to Dr. Prathap C Reddy founder

chairman Apollo hospital group.



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6. Modern medicine excellence award 2006-2007 award to Dr. Prathap C Reddy

founder chairman Apollo hospital group. By ICICI group, to honour outstanding

achievements in the health care industry.

7. Save a childs heart runner up in the corporate governance category at

hospitals, Mgt Asia 2004 a major hospital expo in Bangkok, Thailand.

8. Avaya global connect award for the third successive year in 2007, to Apollo

hospitals, Hyderabad for customer responsiveness in the health care sector based

on a ration wide polling exercise.

CENTER OF CARDIOLOGY & CARDIO THRACIC SURGERY:

The center of cardiology & cardio thoracic surgery at Apollo hospitals is one of

the largest cardiovascular setup in the world. The commitment of its Cardiologists &

cardio thoracic surgeons to the prevention & treatment of heart disease has led to the

achievement of better outcomes & improved quality of life for thousands of cardiac

patients who visit Apollo hospitals each year. Several of the doctors have been recognized

for their contributions to the specialty through national and international awards.



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LIST OF BOARD OF DIRECTORS

Executive chairman : Dr. Prathap C Reddy

Managing directors : Smt. Preetha Reddy

Director finance : Smt. Suneetha Reddy

Director operations : Smt. Sangita Reddy

Directors : Shri. P Obul Reddy

Shri. Rajkumar Menon

Shri. Rafeeque Ahmed

Shri. N. Veghul

Shri. Deepak vaidya

Shri. T. K. Balaji

Shri. Habibullah Basha

Shri. Khairil Anuar

Shri. G. Venkatraman

Shri.StevenJThompson

Shri. Neeraj

Bharadwaj



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Shri. Sandeep Naik

(Alternate Director to Shri. Neeraj Bharadwaj)

Chief financial officer

& company secretary : Shri. S K Venkata

Rama

Group president : Shri. K Padmanabhan

LIST OF BRANCHES

There are many branches of AHEL spread all over the world. But due to timed

geographical constraint. I couldnt visit all the branches present. I have done my study

only at Hyderabad & the branches that are spread over in the city, which can be depicted

in the following chart.


APOLLO HEAD OFFICE CHENNAI

APOLLO - HYDERABAD

Jubilee Hills

Malakpet DRDO

Kukatpally


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The AHEL has its branches spread over through out the world. The places where

they are situated are: Mauritius, Ghana, Nigeria, Kuwait, Malaysia, and Nepal. Its

expansion plans in India include managed hospital in Punjab, Fathehpur & Jaipur.

Chairmans Profile

Dr. Prathap C Reddy, Chairman

Apollo Hospitals Group

His dream is to make India the Healthcare Destination of the World.

Two decades ago, Dr. Reddy lost a patient who couldnt make it to Texas

for an open heart surgery. This was the milestone in the Indian Healthcare

Industry. Today people have the opportunity in India to receive the best that


Vikrampuri

Hyderguda International

Airport

Mehdipatnam


32/104


healthcare has to offer world wide. Driven by a deep urge to create world-class

medical infrastructure in India and make it more accessible and affordable to a

large cross section of our people, Dr. Prathap Reddy opted to give up his

successful practice in the US to return to India in the early eighties. Thus, Dr.

Reddy began what was truly the process of revolutionizing the path of the Indian

Healthcare Industry. Undeterred by initial constraints Dr. Reddy succeeded in

setting up the first center of the Apollo Hospitals Group in Chennai in1983. This

was soon followed by Indias first hospital consultancy body the Indian Hospitals

Corporation and the commissioning of two more Tertiary Care Centers in India.

Not only did he set a precedent for corporate healthcare in the country, but the

Government of India soon recognized his enterprising efforts leading to Financial

institutions amending their funding legislation to include hospitals On an upswing

since then, today the Apollo Hospitals Group has over 22 centers in major

metropolises in India with a combined turnover of over US $ 100 million. Apollo

over the last decade has demonstrated that Indian skills are equivalent to the best

centers in the world and has produced world-class results in the most complicated

Cadaver Transplant. Having steered the Apollo Hospitals Group to a number of

locations within India, Dr. Reddy embarked on an Asian expansion plan with the

first clinic in Dubai established in March 1999. Now, projects in Sri Lanka, Africa,

Bangladesh and Oman are on the anvil. His newest initiative is to integrate into

healthcare, the digital nervous system that will eventually create a virtual Apollo

Center anywhere any time. Apollos major Web initiative, Med Varsity a virtual

medical university providing total access to experts in the field of medicine

anywhere in the world and MEDNET Hospital Systems Management package are



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slated to transform the way medicine is practiced in the country. His plans for

improved accessible and affordable healthcare for the millions of our people are an

ongoing process and to bring country-wide, comprehensive health insurance

scheme to our people is now his obsession. The telemedicine technology that has

been successfully introduced by Dr. Reddy in India will be a key enabler in

transforming the healthcare delivery in India. His blueprint for the nation includes

setting up of many rural hospitals. Dr. Reddy is now looking at secondary health

centers in semi urban and smaller cities and has already identified 23 sites for the

same. The maiden effort in this venture has been at Aragonda, his native village

and Dr. Reddy envisages that this center will serve as a model for all such projects

of the Apollo Group in rural India. Dr. Reddy has been a keen promoter of active

research and exchange programmes for Doctors at Apollo with leading medical

institutions for providing excellent opportunities for clinical interaction with their

counterparts abroad and also for constant update of their knowledge for the

optimum benefit of the mankind. Recognizing his pioneering role in transforming

the Indian healthcare industry, the Government of India awarded him the

prestigious Padma Bhushan in February 1991. He was also presented with the Sir

Neel Ratan Sarkar Award for medical excellence in June 1998. Nominated by

Business India as one of the Top Fifty personalities, who have made a difference to

the country in the fifty years since Independence, the country has certainly

recognized his contributions. The Royal college of Surgeons of Edinburgh has

conferred the Award of fellowship Adhominem. Dr. Reddys firmly believes that

the Indian doctors have not got their true entitlement. He is convinced that India is

not only well poised to meet the healthcare challenges of the millennium, but also



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equipped with the talent and strength to contribute in further developing the health

and economy of the world.

GROUP OF HOSPITALS:

Indraprastha Apollo

Hospitals

Sarita Vihar, MathuraRoad

NEW DELHI - 110 076Tel: +91-011 -26925801/26925858Fax: +91-011-26823629

Website:www.apollohospdelhi.com

Apollo Hospitals

21, Greams Lane OffGreams RoadCHENNAI 600 006Tel: +91-044- 28293333 /28290200Fax: +91-044-2834429

Website:www.apollohospitals.com

http://www.apollohospdelhi.com/http://www.apollohospitals.com/http://www.apollohospdelhi.com/http://www.apollohospitals.com/


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Apollo Hospitals

Jubilee Hills, HYDERABAD - 500033Tel: +91-40-23607777

FAX: +91-40-23608050email: [email protected]

Apollo Gleneagles Hospital

#58, Canal Circular RoadKolkata - 700 054Tel: + 91 033-23203040 / 2122 /2003 / 2004 / 2006email:[email protected]

mailto:[email protected]?subject=Apollo%20Hospital%20Mail%20Through%20apollohospdelhi.commailto:[email protected]?subject=Apollo%20Hospital%20Mail%20Through%20apollohospdelhi.commailto:[email protected]?subject=Apollo%20Hospital%20Mail%20Through%20apollohospdelhi.commailto:[email protected]?subject=Apollo%20Hospital%20Mail%20Through%20apollohospdelhi.com


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Apollo Hospitals

Limited

Plot No. 1A , Bhat GIDC

EstateGandhinagar, Gujarat-382428Tel : +91-079 - 66701800

email:[email protected]

Apollo Heart & Kidney

Center

10-50-80, WALTAIR MAINROADVISHAKPATNAM - 530002Ph: 0891-2529618/19/20/21/22FAX: 0891 -2560858Website:www.apollohospitalgroup.com

Apollo HospitalsSeepat Road,BILASPUR - 495 006Tel: +91-07752-243300Website:www.apollobilaspur.com

Apollo NoidaE - 2, Sector - 26, Noida(Adjacent to Club 26)Tel: +91-120-4012000 /2445353Fax: +91-120-2445355Email:[email protected]

mailto:[email protected]?subject=Apollo%20Hospital%20Mail%20Through%20apollohospdelhi.comhttp://www.apollohospitalgroup.com/http://www.apollobilaspur.com/mailto:[email protected]?subject=Apollo%20Hospital%20Mail%20Through%20apollohospdelhi.commailto:[email protected]?subject=Apollo%20Hospital%20Mail%20Through%20apollohospdelhi.commailto:[email protected]?subject=Apollo%20Hospital%20Mail%20Through%20apollohospdelhi.comhttp://www.apollohospitalgroup.com/http://www.apollobilaspur.com/mailto:[email protected]?subject=Apollo%20Hospital%20Mail%20Through%20apollohospdelhi.commailto:[email protected]?subject=Apollo%20Hospital%20Mail%20Through%20apollohospdelhi.com


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Apollo Hospitals Bangalore

154/11, Opp. I.I.M., BannerghattaRoad,

Bangalore - 500 069.Tel: +91 80 4030 4050Website:www.apollohospitalsbangalore.com

APOLLO GROUP OF COMPANIES:

Apollo Hospitals Enterprise Limited

Apollo Pharmacies

Keimed.com Limited

Apollo Health and Lifestyle Limited (AHLL)

Apollo Health Street Limited (AHSL)

MedVarsity Online Limited (MOL)

Apollo Telemedicine Enterprises Limited (ATEL

Apollo Hospitals Education and Research Foundation (AHERF)

Family Health Plan Limited (FHP)

Online Hospital Equipment Services Private Limited (Equipment World)

http://www.apollohospitalsbangalore.com/http://www.apollohospitalsbangalore.com/


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INTRODUCTION:

Funds flow statement summarizes for a particular period the resources made

available to finance the activities of an enterprise and the uses to which such resources

have been put.

Funds flow statement is based on accrual concept of profit. The Company prepares

a statement of funds flow to cater Purchase of fixed assets and investments, redemption of

debentures and preference shares and repayment of loans, payment of dividend, payment

of tax, and increase in working capital.

It is the responsibility of the organization to maintain a standard level of funds flow

neither excess or deficit.

Here, funds means working capital and flow means movement

VARIOUS FORMS OF ANSWERS TO FUNDS FLOW STATEMENT:

It refers to the sources and uses of funds received through the year.

It is the statement of changes in financial position prepared determine only the

sources and uses of working capital between dates of 2 balance sheets.

Inflow and outflow working capital for a business.

Change in working capital for the particular period, sources and application for one

year

Funds flow statement indicates the flow of funds in certain period and it helps to

compare the past and present statements.

It is a statement showing changes in financial position, in sources (FUND

RECEIVED) AND application ( USAGE OF FUND)



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MANNAR WITH FOLLOWING BASIS

1) Working capital base.

2) Cash flow (cash budget) base.

3) All resources base.

Fund Flow is statement which analyzes the inflow and out flow of funds of an

organisation or firm in a particular period.

Fund flow statement is a shown the source and uses of application and change in

working capital an organization or a firm in a financial.

It shows the difference between the opening & closing value of the asset &

liability. This may be due to the purchase/investment/sale of an asset,

increase/decrease in liability.

Fund flow mean inflow and outflow of fund in the orgnization. It includes

Schedule of change in working capital, P/L or source of application and Funds

flow statement.

In this we never write To and By.

Funds flow statements are the statements which give a clear picture of the

movement of funds in a certain period

A simple funds flow statement can be arrived at by comparing the balance sheets at

the stating of the period with the balance sheet at the ending of the period

Fund flow statement consists with two word fund and flow. Fund means cash or

working capital or all resource of fund and flow means change.

Fund flow refers to change in financial position in beginning of financial period to

end of year.



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MEANING AND CONCEPT OF FLOW OF FUNDS

The term flow means movement and includes both inflow and outflow. The

term flow of funds means transfer of economic and values from one asset of equity to

another. Flow of funds is said to have taken place when any transaction makes changes in

the amount of funds available before happening of the transaction. If the effect of

transaction results in the increase of funds it is called source of funds and if it results in the

decrease of funds it is known as an applications of funds the term flow of funds refers to

the movement of funds in the working capital it is said to be a source or inflow of funds

and if it results in the decrease of working capital, it is said to be an application or outflow

of funds.

MEANING AND DEFINITION OF FUNDS FLOW STATEMENT

Funds flow statement is a method by which we study changes in the financial

position in the business enterprise between beginning and ending financial statement

dates. It is a statement showing sources and uses of funds for a period of time.

A statement of sources and applications of funds is a technical device designed to

analyze the changes in the financial condition of a business enterprise between two dates.

The term Funds means working capital, i.e., the excess of current assets over

current liabilities.



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According to Robert Anthony "the funds flow analysis describes the

sources fro which additional funds were derived and the uses to which these funds

were put.

Funds flow statement is called by various names such as sources and application of

funds; statement of changes in financial position, sources and uses of funds, summary of

financial operations, where came in and where gone out statement, where got, where gone

statement; movement of working capital statement movement of funds statement, funds

received and disbursed statement; funds generated and expended statement, funds

statement etc.

NEED OF FUNDS FLOW STATEMENT:

Fund may be interpreted in various ways as (a) Cash, (b) Total current assets. Net

working capital, (d) Net current assets. For the purpose fundflow statement the term fund

means net working capital. The flow fund will occur in a business, when a transaction

results in a change i increase or decrease in the amount of fund.

According to Robert Anthony, the Fund Flow Statement describes t sources from which

additional funds were derived and the uses to which these funds were put.

Different Names of Fund-flow Statement:

* A Funds Statement

* A statement of sources and uses of fund

* A statement of sources and application of fund

* Where got and where gone statement

* Inflow and outflow of fund statement



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USES, SIGNIFICANCE AND IMPORTANCE OF FUNDS FLOW

STATEMENT:

It helps in the analysis of financial operations.

It throws light on many perplexing questions of general interest.

It helps in the formation of realistic dividend policy.

It helps in the proper allocation of resources.

It acts as a future guide.

It helps in a appraising the use of working capital.

It helps knowing the overall credit worthiness of a firm.

The FFS furnishes the information about the sources from which the company

mobilized the resources or fund during the year.

The statement is most useful to the lending authorities for the sanction of loans to

the company.

LIMITATIONS OF FUNDS FLOW STATEMENT

The funds flow statement has a number of uses, how ever it has certain limitations

also which are listed below:

It should be remembered that a funds flow statement is not a substitute of an

income statement or a balance sheet. It provides only some additional information

as regards changes in working capital.

It can not reveal continuous changes.

It is not an original statement but simply, arrangement of data given in the

financial statements.



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It is essential historic in nature and projected funds flow statement cannot be

prepared

Changes in cash are more important and relevant for financial management than

the working capital.

It indicates only the post position and not future

FINANCIAL MANAGEMENT

Management of funds is an important aspect of financial

management. Management of funds acts as the primary concern

whether it may be in a business undertaking or in an educational

institution. Financial management, which is simply meant dealing

with management of money matters.

According to Phillippatus, "Financial management is concerned

with the managerial decisions that result in the acquisition and

financing of short term and long term credits for the firm.

PROCUREMENT OF FUNDS

As funds can be obtained from different sources so procurement of funds is

considered as an important problem of business concerns.

Funds procured from different sources have different characteristics in terms of

risk, cost and control.



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Funds issued by the issue of equity shares are the best from risk point of view for

the company as there is no question of repayment of equity capital except when the

company is under liquidation.

From the cost point of view equity capital is most expensive source of funds as

dividend expectations of shareholders are normally higher than prevalent interest

rates.

Financial management constitutes risk, cost and control. The cost of funds should

be at minimum for a proper balancing of risk and control.

General Rule:

The flow of funds occurs when a transaction changes on the one hand a non

current account and on the other a current account and vice versa.

A current asset and a fixed asset.

A fixed asset and a current liability.

A current asset and a fixed liability.

A fixed liability and a current liability.



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LIST OF CURRENT OR WORKING CAPITAL ACCOUNTS

Current Asset:

Cash in hand

Cash at bank

Bills Receivable

Sundry debtor (or) Accounts receivable

Short - term Loans & Advances

Temporary or Marketable investments

Inventories or stocks such as

a. Raw materials

b. Work in process

c. Stores and spares

d. Finished goods

Prepaid expanses

Accured incomes

Current Liabilities:

o Bills payable

o Sundry creditors (or) Accounts payable

o Accured or Oustanding expanses

o Dividends Payable



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o Bank over draft

o Short term loans & Advances

o Provision against current assets

o Provision for taxation, if it does not amount to appropriation of profits

o Proposed dividend ( may be current or non current liability)

Non Current or Permanent Liabilities:

o Equity Share capital

o Preference share capital

o Redeemable preference share capital

o Debenture

o Long term loans

o Share premium account

o Share forfeited account

o Profit & loss account

o Capital reserve

o Capital redemption reserve

o Provision for depreciation against fixed assets

o Appropriate of profits

a. General reserve

b. Dividend equalization fund



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c. Insurance fund

d. Compensation fund

e. Sinking fund

f. Investment fluctuation fund

g. Provision for taxation

h. Proposed dividend

Non Current or Permanent Assets:

Preliminary Expenses

Other differed expenses

Discount on issue of debentures

Discount on issue of shares

Debit balance of Profit & loss account

Long-term investment

Patent rights

Trade Marks

Furniture & fittings

Plant & Machinery

Building

Land



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Goodwill

PROCEDURE FOR KNOWING WHETHER A TRANSACTION

RESULTS IN THE FLOW OF FUNDS OR NOT:

1. Analyze the transaction and find out the two accounts involved.

2. Make Journal Entry of the transaction.

3. Determine whether the account involved in the transaction are current or non-

current.

4. If both the accounts involved are current i.e., either current assets or current

liabilities, it does not result in flow of funds.

5. If both the account involved are non-current i.e., either permanent assets or

permanent liabilities, it still does not results in the flow of funds.

6. If the account involved are such that one is a current account while the other is a

non current liability and i.e., current asset and permanent liability, or current

asset and fixed asset, or current liability and fixed asset, or current liability and

permanent liability then it results in the flow of funds.

FUNDS WILL EFFECT ONLY IN THE FOLLOWING SITUATION ONLY:

FLOW OF FUNDS


NO YES


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DIAGRAM DEPICTING FLOW OF FUNDS

FLOW OF FUNDS?

NO

YES YES YES


WHEN BOTH

CURRENT

OrNON- CURRENT

ACCOUNTS ARE

INVOLVED

WHEN ONE

CURRENT

And

OTHER NON

CURRENT

ACCOUNT ARE

INVOLVED

CURRENT ASSETS CURRENTLIABILITIES

NON-CURRENTASSETS

NON-CURRENTLIABILITIES


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NO

BALANCE SHEET

Balance sheet is the most significant financial statement. It indicates the financial

condition or the state of affairs of a business at a particular moment of time. More

especially balance sheet contains information about resources and obligations of a

business entity and about its owners interests in the business at a particular point of time.

Thus, the balance sheet reveals the firms financial position on specific date. In the

language of accounting balance sheet communicates information about assets, liabilities

and owners equity for a business firm as on a specific date. It provides a snapshot of the

financial position of the firm at the firms accounting period. The balance sheet is a stock

or status statement as it shows assets, liabilities and owners equity at a point of time.

DISTINCTION BETWEEN BALANCE SHEET AND FUNDS FLOW

STATMEN:

Balance sheet is a statement showing the financial position of the concern on a

particular date. The asset side portrays the development of resources in various

types of properties a liabilities side indicates the manner in which these resources

are obtained. It shows all assets and liabilities whether current or fixed, tangible or

intangible etc., while Funds Flow Statement shows the changes in current assets an

current liabilities during a particular period of time.



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Balance Sheet shows the total financial position on a particular date and in this

way, it is of a historical nature and therefore, its utility is very limited for the

management. On the other hand, Funds Flow Statement is a comparative statement

of assets and liabilities and depicts the changes in working capital during the

period of two Balance sheets.

Funds Flow Statement is an analysis and control device for the management.

Management can ensure the long term and short term solvency of the firm by

studying the internal funds flow cycles. It is a modern technique of knowing the

inflows and outflows of funds during a particular period. Balance Sheet represents

the balance of various assets and liabilities and does not present analysis of any

kind.

There are two views of h financial position of the firm-long term and short-term.

Short-term financial position means the technical solvency of the firm in the near

future while on the other hand, long-term financial position means future financial

structure of the firm. Both are inter-relate but there is a differences in their

analysis. The short-term view of the financial position of the firm ca not be had

from the Balance Sheet.

CASH FLOW STATEMENT

A revenue or expense stream that changes a cash account over a given period. Cash

inflows usually arise from one of three activities - financing, operations or investing -

although this also occurs as a result of donations or gifts in the case of personal finance.

Cash outflows result from expenses or investments. This holds true for both business and

personal finance.



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An accounting statement called the "statement of cash flows", which shows

the amount of cash generated and used by a company in a given period. It is calculated by

adding noncash charges (such as depreciation) to net income after taxes. Cash flow can be

attributed to a specific project, or to a business as a whole. Cash flow can be used as an

indication of a company's financial strength.

DISTINCTION BETWEEN THE FUNDS FLOW STATEMENT AND

CASH FLOW STATEMENT:

Funds Flow Statement is concerned with all items constituting funds (Working

Capital) for the business while Cash Flow Statement deals only with cash

transactions. In other words, a transaction affecting working capital other than cash

will affect Funds statement, and not the Cash Flow Statement.

In Funds Flow Statement, net increase or decrease in working capital is recorded

while in Cash Flow Statement; individual item involving cash is taken into

account.



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Funds Flow statement is started with the opening cash balance and closed with the

closing cash balance records only cash transactions.

Cash Flow Statement is started with the opening cash balance and closed with the

closing cash balance while there is no opening or closing balances in Funds Flow

Statement.

CONSTRUCTION OF FUNDS FLOW STATEMENT:

Funds flow statement is a method by which we study changes in the financial position of

business enterprises between beginning and ending financial statements dates. Hence, the

funds flow statement is prepared by comparing two balance sheets and with the help of

such other information derived from the accounts as may be needed. Broadly speaking, the

preparation of a funds flow statement consists of two parts:

1. Statement or Schedule of changes in working capital.

2. Statement of Sources and Application of funds.

Statement or Schedule of changes in Working Capital:

The increase or decrease in working capital can be calculated by preparing

the schedule of changes in working capital. Working capital means the excess of

current assets over current liabilities. Statement of changes in working capital is

propose to show the changes in the working capital between two balance sheets

data. This statement is prepared with the help of current assets and current

liabilities derived from two balance sheets.

While preparing a schedule of changes in working capital, it should be note that:



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Increase in Current Assets, Increases the Working Capital.

Decrease in Current assets, Decreases the Working Capital.

Increase in Current Liabilities, Decreases the working capital.

Decrease in Current Liabilities, Increases the Working Capital.

An increase in current assets and increase in current liabilities does not affect

working capital.

A decrease in current assets and decrease in current liabilities does not affect

working capital.

Changes in fixed (non-current) assets and fixed (non-current) liabilities affect

working capital.

The changes in all current assets and current liabilities are merged into one

figure only either an increase of decrease in working capital over the period for which

funds statements has been prepared.

If the working capital at the end of the period is more than the working

capital at the beginning the difference is expresses as increase in working capital.

On the other hand, if the working capital at the end of the period is less than

at the commencement, the difference is called decrease in working capital.

Working Capital = Current assets Current Liabilities

Current Assets:

The expression current assets denotes those assets, which are continually



56/104


on the move. Since they are constantly in motion, they are known as the circulating capital

of the business. These assets can or will be converted into cash during a complete

operating cycle of the business.

Current Liabilities:

Current Liabilities are those liabilities, which are to be paid in the near

future, i.e., during a complete operating cycle of the business.

PROFORMA OF STATEMENT OF CHANGES IN WORKING CAPITAL

Particulars Beginning Ending

Changes inworking capital

Increase Decrease

Current assts (CA):

Inventories: XXX XXX

Raw material XXX XXX

Consumable stores XXX XXX

Finished goods XXX XXX

Sundry debtors XXX XXX



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Cash in hand XXX XXX

Balance with bank XXX XXX

Other current assets: XXX XXX

Deposits XXX XXX

Income tax (advance tax) XXX XXX

Sales tax XXX XXX

Total Current assets XXXXXXXXXX

Current liabilities:

Trade creditors XXX XXX

Dealers deposits XXX XXX

Expenses payable XXX XXX

Total current liabilities XXXXXXXXXX

Working Capital (CA-CL)XXXXX

Net Increase / decreaseworking capital XXXXX XXXXX

XXXXX XXXXX XXXXX XXXXX

STATEMENT OF SOURCES AND APPLICATION OF FUNDS:

Funds flow statement is a statement, which indicates various sources for

which funds have been obtained during a chain period and the uses or applications to

which these funds have been put during that period.

Sources of funds

Application of Funds.



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Generally this statement prepared in two formats.

Report form (Vertical form)

T Form (An Account form)

PROFORMA OF REPORT FORM OF FUNDS FLOW STATEMENT

PARTICULARS AMOUNT

SOURCES OF FUNDS

Funds from Operations

Issue of Share Capital

Issue of debentures



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Receipts of dividend and Interest

Sales Proceeds of Non-current asset

Raising long term loans

Sale of investments (long term)

Receipts from partly paid up shares, called up

Decrease in working Capital

Total

APPLICATION OF FUDS

Funds Lost in OperationRedemption of Preference Share Capital

Redemption of long term loans

Repayment of Debenture

Repayment of long term loans

Purchase of non current (fixed ) assets

Purchase of long term investments

Non trading payments

Payment of dividends

Payment of tax

Increase in working capital

Total

T FORM OR AN ACCOUNT FORM OF FUNDS FLOW STATEMENT



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Funds from trading

factitively or

Operating profit

Issue of shares and

debentures

Receipts of dividend and

Interest

Sales Proceeds of Non-

current asset

Long term

Borrowings

Decrease in working

Capital

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXXX

Funds costs in operations

Repayment of debentures

Reduction in share Capital

Interest and dividend paid

Payment of Long-term

loans.


XXXX

XXXX

XXXX

XXXX

XXXX

XXXX

XXXXX

EXAMPLE PROBLEM:



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Balance sheet of XYZ Pvt. Ltd for the year 2005-2006

Sources of funds 2006 2005

Share holders funds:

A) share capital 3976.36 3976.36

B) Reserves and Surplus 3804.74 2160.18

A) Secured Loans 10886.36 10723.23

B) Unsecured Loans 9588.74 5404.59

Differed tax Liability 424.17

Total 28680.37 22264.36

Application of funds:

Fixed Assets: -

A) Gross Block 2002136 17884.47

B) Less: Depreciation 5417.03 4648.10

Net Block 14604.33 13236.37

Capital Work In Progress 6015.09 2652.95

Investment 589.83

Current Assets, Loans and Advances

A) Inventories 7075.18 5294.05

B) Sundry Debtors 7197.89 4098.66

C) Cash and Bank Balance 247.72 447.49

D) Loans and Advances 1616.75 1462.76

Less: current Liabilities and Provisions

A) Current Liabilities 8090.45 5052.57

B) Provisions 586.14 572.72



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Net Current Assets 7460.95 5677.67

Differed Tax Assets 683.48

Miscellaneous Expenditure 10.17 13.83

SOLUTION:

STATEMENT OF CHANGES IN WORKING CAPITAL

Particulars 2004-05 2005-06 Changes in working capitalIncrease Decrease

Current assts (CA)

Inventories 5294.05 7075.18 1781.13

Sundry debtors 4098.66 7197.89 3099.23

Cash and bank balances 447.49 247.72 199.77

Loans and advances 1462.76 1616.75 153.99

Total Current Assets 11302.96 16137.54

Current liabilities (CL)

Current liabilities 5052.57 8090.45 3037.88Provisions 572.72 586.14 13.42

Total current liabilities 5625.29 8676.59

Working capital (CA-CL) 5677.67 7460.95

Net working capital 1783.28 1783.28

7460.95 7460.95 5034.35 5034.5

Net increase in the working capital is 1783.28.

Interpretation:

From the above table is observed that the networking capital of the

company shows increasing trend. The total current assets of the company have increased

from Rs.11302.96. in 2004-05 to Rs.16137.54 in 2005-06.

But the bank balance decreased from Rs.447.49 to Rs.247.72 i.e., 199.77.

The total current liabilities increased from Rs.5677.67 to Rs.8676.59. The net working

capital increases Rs.1783.28.



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Statement of Sources and Applications of Funds for the year ended at 31st March

2006.

Sources Amount Applications Amount

Secured loans

Unsecured loans

Funds from operation

163.13

4184.15

3524.86

7872.14

Purchase of fixed assets

Capital W-in-P

Purchase of investments


2136.89

3362.14

589.83

1783.28

7872.14

Interpretation:

It is evident from the above table that the total flows during the period from

2005-2006 amounts Rs. 7872.14 lakhs. In the total funds 3% of funds were received

through secured loans, 87% of funds received through the unsecured loans and the

remaining 10% of funds received from funds from operation.

Regarding application of the funds the 63% were invested in fixed assets i.e.

purchase of fixed assets and remaining 37% of funds were utilized for working capital.



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RESEARCH DESIGN

The various purposes of this chapter are to describe the need of the study, to define

its objectives and to discuss the methodology employ besides efforts are also made to

outline scope, limitations and plan of the study.

Funds flow statement is the statement that shows companies how funds are flowing

between two period of times. It can be classified as sources of funds, application of funds,

funs flow statement shows how funds floating (In flow & Out flow of funds) between two

comparable periods.



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The management and Preparation of funds flow statement is vital importance to

companies and firms to know in what are those ways company is getting major funds &

how those funds are utilizing. Healthy flow of funds are essential for organization to run

the business smoothly & safely.

NEED FOR THE STUDY IN APOLLO HOSPITAL ENTERPRISE

LIMITED:

APOLLO HOSPITAL is committed to provide their patients the best possible

health care and this commitment is reflected in the entire Apollo Group situated at major

cities in India. Each of these is a landmark in high quality health care delivery system.

This analysis provides a comprehensive view about companys strengths and

weaknesses, significance of this analysis makes in judging the financial soundness of the

firm and its probability. With these rations and conclusions we draw inferences about the

performance of the firm.

OBJECTIVES OF THE STUDY:

To study the importance of funds flow statement in AHEL.

To evaluate the funds flow position and its management through various

working capital statements.

To analyze the operating cycle of funds flow statement.



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To study the various elements of the funds flow statements, viz share

capital, loans & advances, fixed assets, and investments etc.,

To assess the liquidity position of the company.

To give appropriate suggestions for the decision-making authority for

effective working capital management in Apollo Hospitals Enterprise

Limited.

To analyze Apollos annual report, year-to-year performance.

METHODOLOGY:

Methodology is a systematic procedure of collecting information in order to

analyze and verify a phenomenon. The collection of information is done through two

principle sources viz.

Primary data

Secondary data

PRIMARY DATA:

It is the information collected directly without any reference. In the study, it is

mainly interviews with concerned officers and staff either individually or collectively.

Some of the information had been supplemented with personal observations.



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SECONDARY DATA:

The secondary data was collected from already published sources such as annual

reports and internal records. The data includes:

Collection of required data from annual reports of Apollo Hospital

Enterprise Limited.

Reference from text books and journals relating to financial management.

Articles published in business dailies like the economic times, Business

time etc.

SCOPE OF THE STUDY:

The present study is design to make effort to understand the how funds are flowing

in Apollo Hospitals Enterprise Limited with the help of working capital, so as to enable to

determine the financial variability of the company.

The scope of the study is the last five financial years i.e., from 2003-04 to 2007-08.

LIMITATIONS OF THE STUDY:

As Apollo Hospitals is a service oriented organization the data is classified. The

audited accounts are taken for collection of the main data for the analysis.



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The main limitations of the project are:

Time Constraint is the major limitation as the data has to be collected in

real time; data could not be collected in great detail as Apollo Hospital-

Hyderabad unit is only a branch and the head office is located at Chennai.

Apollo Hospitals Group comes under service-oriented industry, so the

financial statement analysis cannot be compared with any standards laid.



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DATA ANALYSIS

AHEL BALANCE SHEET FOR THE YEAR ENDED 2003-04



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I. Sources of funds2004 2003

(1) Share holders funds:

Share capital A 395,186,880 395,186,880

Reserves and Surplus B2,071,555,641 1,864,558,995

(2) Loans & Advances:

(a) Secured Loans C916,261,993 1,118,302,314

(b) Unsecured Loans D647,625,224 607,106,641

Deferred Tax Liability534,498,611 -----

TOTAL4,565,128,349 3,985,154,830

II. Application of funds:

Fixed assets:

A) Gross Block3,946,247,611 3,600,839,133

B) Less: Depreciation1,232,187,391 1,061,446,007

Net Block2,714,060,220 2,539,393,126

Capital Work In Progress4,495,248 67,397,336

Investment

909,703,681 917,015,658

Current assets, Loans & Advances:

A) Inventories332,233,960 292,610,725

B) Sundry Debtors722,483,822 682,835,869

C) Cash and Bank Balance143,559,640 95,180,182

D) Loans and Advances804,005,122 917,015,658

Less: Current liabilities:

A) Current Liabilities

735,857,902 654,124,079

B) Provisions386,040,967 738,083,452

Net Current Assets880,383,675 397,556,415

Miscellaneous Expenditure56,485,525 77,933,863

TOTAL4,565,128,349 3,985,154,830

STATEMENT SHOWING CHANGES IN WORKING CAPITAL OF

AHEL FROM 2002-03 & 2003-04



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Particulars 2002-03 2003-04 Increase Decrease

CURRENT ASSETS

a) Inventories

b) Sundry Debtors

c) Cash & Bank balances

d) Loan & Advances

292,610,725

682,835,869

95,180,182

719,137,170

332,233,960

722,483,822

143,559,640

804,005,122

39623235

39647953

48379458

44525770

.

.

.

.

Total Current Assets (A) 1789763946 2002282544

CURRENT LIABILITIES

& PROVISIONS

a) liabilities

b) Provisions

654,124,079

738,083,452

735,857,902

386,040,967

..

352,042,485

81,733,823

..

Total Current Liabilities (B) 1,392,207,531 112,189,869 75,285,800

Net working Capital (A-B)397,556,666 880,383,675

Increase in Working Capital 482,827,009 482,827,009

TOTAL

88083,,675 88,083,675 1,235,685,009 1,235685,009

Interpretation:



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Current assets: (2002 -03 to 2003 -04)

Inventory is increased.

Sundry debtors are increased.

Cash and bank balances are increased.

Loans and advances are increased.

As per our report totally current assets is increased.

Current liabilities: (2002 -03 to 2003-04)

Current liabilities are increased.

Provisions are increased.

As per our report totally current liabilities are decreased.

COMPARISION:

Current assets of 2002 -03 more than current liabilities of 2002 -03.

Current assets of 2003 -04 more than current liabilities of 2003-04.



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Statement of Sources and Applications of Funds for the year ending at

31st March 2004.

SOURCES AMOUNT APPLICATIONS AMOUNT

Issue of shares

Un-secured

Differed Tax liabilityPurchase of Investments

Work In Progress

Funds from operation:

40,518,583

534,498,611

7,311,977

62,902,088

1,446,490,556

Re pay of Secured Loans

Purchase of Fixed assets


202,040,321

1,406,854,485

482,827,009

2,091,721,815 2,091,721,815

Interpretation:

It is evident from the above table that the total flows during the period from

2003-04 amounts Rs. 2,091,721,815. In the total funds 2% of funds received through the

un-secured loans, 25% through differed tax liability, 3% through capital work in progress,

1% from sale of Investments and the remaining 69% of funds received from funds from

operation.



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Regarding application of the funds the 67% were invested in fixed assets

i.e. purchase of fixed assets, 10% funds were used to re- pay the secured loans, and

remaining 23% were utilized for working capital.

AHEL BALANCE SHEET FOR THE YEAR ENDED 2004-05

III. Sources of funds 2005 2004

(3) Share holders funds:

Share capital A415,986,180 395,186,880

Reserves and Surplus B 2,862,213,464 2,071,555,641

(4) Loans & Advances:

(a) Secured Loans C 1,058,858,176 916,261,993

(b) Unsecured Loans D308,687,000 647,625,224

Deferred Tax Liability 535,649,884 534,498,611

TOTAL5,181,394,704 4,565,128,349

IV. Application of Funds:

Fixed assets:

A) Gross Block 4,304,258,110 3,946,247,611

B) Less: Depreciation 1,427,712,198 1,232,187,391

Net Block 2,876,545,912 2,714,060,220

Capital Work In Progress41,034,904 4,495,248

Investment 1,062,670,972 909,703,681

Current assets, Loans & Advances:

A) Inventories371,247,722 332,233,960

B) Sundry Debtors 835,144,733 722,483,822

C) Cash and Bank Balance219,098,299 143,559,640

D) Loans and Advances 94,131,322 804,005,122

Less: Current liabilities & provisions:

A) Current Liabilities 698,440,243 735,857,902

B) Provisions553,386,010 386,040,967

Net Current Assets 1,167,795,823 880,383,675

Miscellaneous Expenditure 33,347,093 56,485,525



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TOTAL 5,181,394,704 4,565,128,349

STATEMENT SHOWING CHANGES IN WORKING CAPITAL OF

AHEL FROM 2003-04 & 2004-05

Particulars 2003-04 2004-05 Increase Decrease

CURRENT ASSETS

a) Inventories

b) Sundry Debtors

c) Cash & Bank balances

d) Loan & Advances

332,233,960

722,483,822

143,559,640

804,005,122

371,247,722

808,181,529

219,098,209

102,194,526

39,013,762

85,697,707

7,558,659

217,089,404

..

..

.

..

Total Current Assets (A) 2002282544 2419622076

CURRENT LIABILITIES

& PROVISIONS

c) liabilities

d) Provisions

735,857,902

386,040,967

698,440,243

553,386,010

37,417,659

..

..

167,345,043

Total Current Liabilities (B) 112,189,863 1,243,129,253

Net working Capital (A-B)880,383,675 1,176,492,823

Increase in Working Capital 296,109,148 296,109,148

TOTAL1,176,492,823 1,,176,492,823 314,451,140 314,451,140



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Interpretation:

Current assets: (2003 -04 to 2004 -05)

Inventory is increased.

Sundry debtors are increased.

Cash and bank balances are increased.

Loans and advances are increased.

As per our report totally current assets is increased.

Current liabilities: (2003 -04 to 2004-05)

Current liabilities are increased.

Provisions are increased.

As per our report totally current liabilities are incr

mohan's funds flow

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