Post on 03-Aug-2015
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Financial Financial Management Management
Hospital Hospital sectorsector
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Financial ManagementFinancial Management
Managerial activity.
forecasting planning
organizingdirecting
coordinating controlling
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ImportanceImportance
Balancing income & expenditureManagement of cash inflows and outflows.
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ScopeScope
Decisions regarding>>>>>>
Procurement of fundsInvestmentFinancing Dividend.
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Hospital SectorHospital Sector
An institution for health care providing treatment by specialised staff and equipment.
General- Deals with many kinds of disease and injury.
Specialized- Includes trauma centers, rehabilitation hospitals,etc.
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India's Hospital SectorIndia's Hospital Sector
India's healthcare/hospital sector has been growing rapidly
Revenues account for 5.2 per cent of the GDP
The third largest growth segment in India.
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The key drivers for this growthThe key drivers for this growth
Shift from socialized to private
healthcare providers
Booming economy and literacy rates
Shift to lifestyle-related diseases
Currently, private sector contributes 75%.
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Hospitals Revenue Hospitals Revenue
By providing medical services.
By providing nonmedical services.
Through donations and grants from individuals, foundations, or the government.
Through investments.
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Hospital ExpensesHospital Expenses
Wages and salaries Supplies and OtherDepreciation and AmortizationInterestOther ExpensesBad Debt Expense
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Fortis Healthcare LimitedFortis Healthcare Limited
Fortis Healthcare Limited is one of the leading chain of Hospitals in India
FocusHealthcareTelemedicineResearch
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Incorporated on February 28, 1996 as Rancare Limited
under the Companies Act.
Subsequently on June 20, 1996 name was changed to present name- Fortis Healthcare Limited.
Currently has a network of 11 hospitals primarily in north India
Fortis Healthcare Limited
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RATIOS FOR THE YEAR 2008BALANCE SHEET RATIOS
Current Ratio = Current asssets / Current Liabilities = 31691.67 / 4198.46 = 7.54 : 1Quick Ratio = Quick assets / Quick liabilities = 31443.57 / 4198.46 = 7.49 : 1
Stock Working Capital Ratio = Closing Stock / Working Capital * 100 = 248.10 / 27493.21 * 100 = 0.9 %
Debt –Equity Ratio = Borrowed Funds / Proprietor’s Fund = 18260.77 / 102091.31 = 0.17
Proprietor’s Ratio = Proprietor’s Fund / Total Assets * 100
= 102091.31 / 110810 * 100 = 92.06 %
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PROFIT & LOSS RATIOSOperating Ratio = Cost of Goods Sold + Operating Expenses / Net sales * 100 = 8519.36 / 15793.39 * 100 = 53.94 %
Operating profit Ratio = Operating Profit / Net sales * 100 = 4346.86 / 15793.39 * 100 = 27.52 %
Gross Profit Ratio = Gross Profit / Sales * 100 = 10824.39 / 15793.39 * 100 = 68.53 %
Net Profit Ratio = Net Profit after Tax / Sales * 100 = 261.77 / 15793.39 * 100 = 1.65 %
Stock turnover Ratio = Cost of goods sold / Average stock = 4969.13 / 232.5 = 21.37 : 1
Financial expenses ratio = Financial expenses / sales *100 = 2962.09 / 15793.39 * 100 = 18.75 %
Selling,General and administrative expenses ratio = Selling,General and administrative expenses ratio/ sales *100 = 2656.80 / 15793.39 * 100 = 16.82 %
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COMBINED RATIOS
Return on Capital employed
= Profit before tax / Capital employed * 100 = 320.57 / 120352.08 * 100 = 0.26 %
Return on Proprietor’s fund
= Net profit after tax / Proprietor’s fund * 100 = 261.77 / 102091.31 * 100 = 0.25 %
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FUTURE PROSPECTS OF FORTIS HOSPITAL
New hospital projects over the next few years:
A super – speciality hospital in shalimar bagh, West Delhi, Cardiac care,
A super – speciality hospital in Gurgaon, with a focus on trauma, oncology, mother and child care, cardiac care, orthopaedics, organ transplants and neuro-sciences
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Presented by……Presented by……
Dipti Dattani 06Jeenal Dedhia 07Dipen Dhanu 08Jerry Dias 09Aneesh Dikshit 10Pratik Gathani 15
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