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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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