A Winter Internship Project Report

On
A comparative analysis of financial performance
between Woodlands Multispecialty Hospital and
Apollo Gleneagles Hospital Kolkata
at

Submitted by
Mita Das
MBA (MAJOR- FINANCE, MINOR- MARKETING)
 Declaration

I, Ms. Mita Das hereby declare that this project is the record of
authentic work carried out by me during the academic year 2018-
2020.This project is plagiarism free and has not been submitted to any
other university or Institute towards the award of any degree.

Signature of the student

Mita Das
 ACKNOWLEDGEMENT

Preparing this project was a great chance for learning and professional
development. Therefore I consider myself as a lucky individual as I was
provided with this opportunity to be associated with Woodlands Multispeciality
Hospital which taught me a lot of things and where I got the chance to meet
wonderful people who helped me by sharing their knowledge.

I use this opportunity to express my deepest gratitude and special Thanks to Dr.
Ananda Mohan Pal (University of Calcutta) who took keen interest and guided
me all along, till the completion of my project work by providing all the
necessary information for making this project grand.

I wish to express my sincere thanks to ptoject guide Mr. Rajib Roy (Deputy
General Manager ,Finance) and Mr.Supratim Auddy (Deputy General Manager,
Finance) for their ceaseless effort for making this project a grand success.
 Table of contents
Chapter Particulars Page
No. No.
1. Executive Summary 1

2. Introduction
3. Objective
4. Healthcare industry in India

5. Company Profile
Company History
Vision Mission
Achievements accolades, Ratings
Other details
Service/product profile
SWOT Analysis
6. Literature Review

7. Research Methodology

8. Data Analysis & Interpretation

9. Observation / Findings

10. Suggestions/ Recommendations

11. Conclusion

12. Contribution to the Organization

13. Limitation
14. Bibliography

15.
Chapter 1
Executive Summary
Analysis is the process of critically examining in detail information given in the
financial statement. For the purpose of analysis individual items are studies.

Analyzing financial statement is a process of evaluating relationship between

components parts of the financial statements to obtain a better understanding of
firm’s position and performance .It is largely a study of relationship among the
various financial factors.

Analysis and interpretation is closely related. Interpretation is not possible

without analysis. And without interpretation analysis has no value.
Interpretation is thus drawing of inference and stating.

Analysis and interpretation of financial statements are an attempt to determine

significance and meaning of the financial statement. So that forecast may be
made as the prospectus for future earnings ability to pay interest and debt
maturities.

The main scope is the study of comparative financial performance analysis of

Woodlands Multispeciality Hospital and Apollo Gleneagels Hospital Kolkata.

 The study is based on the accounting information of both the companies.

The study covers the period of 2018-19 or analyzing the financial
statements.

 The scope of the study involves the various factors that affect the
financial efficiency of the company to increase the profit and sales
growth of the company.

 The study finds out the operational efficiency of the organization and
allocation of resources to improve the efficiency of the organization.

 The data of both the companies for the financial year 2018-19 are taken
into account for the study. The performance of Woodlands Multispeciality
Hospital is compared with Apollo Gleneagles Hospital Kolkata. This
study finds out the financial performance of the company with its major
competitor Apollo Gleneagles Hospital.
 Chapter 2
Introduction :
Woodlands Hospital is as old as India herself. Ever since its inception,
Woodlands Hospital have nursed a dream of becoming one of the leading
healthcare provider of free India by providing global standards with advanced
technology.
In 1947, we began as a tertiary care unit. And today, we've grown much larger
to become a Multispeciality hospital. Over the years, our global quality of
treatment has enabled us to become the hospital of trust for patients not only of
Kolkata and eastern India, but also of neighboring countries.
In its 70+ year long journey, it have touched millions of lives and with that, also
the dream it nursed. Woodlands is part of the large and diversified business
conglomerate RP-SG group.

Statutory Compliance:

 Woodlands is authorized by the West Bengal Pollution Board for

management and handling of Bio-Medical waste.

 Dedicated Housekeeping team and Infection Control department is jointly

responsible to oversee the segregation and scientific disposal of Bio-Medical
waste as per Biomedical Waste handling rule 2016 in appropriate color coded
bags /containers from all patient care areas of the hospital.

 Bio-Medical Waste is not be mixed with any other waste. The collected
waste is temporarily stored in a designated Bio-Medical Waste room.

 Green tech Environment Management Pvt. Ltd is responsible for

transportation of Bio-Medical Waste from the Hospital to their site of treatment
in a covered van and the Bio-Medical waste is done as per regulation.
Chapter 3
Objective
The objective of this study are-

 To know about the financial position of Woodlands Multispecialtity Hospital in

comparison with its major competitor Apollo Gleneagles Hospital.

 To do the financial analysis of both the companies.

 To know about the sources of incomes and expenses of both the companies.

 To do a comparative financial performance analysis.

 To do the cost , sales analysis of both the companies.

 To know more about private healthcare sector how it operates and all. WHO has
estimated that India will need an additional 80000 hospital beds each year for the next
five years to meet the demand of the Indian population.
Chapter 5
Healthcare industry in India
 India is a land full of opportunities for players in the medical devices
industry. India’s healthcare industry is one of the fastest growing sectors
and it is expected to reach $280 billion by 2020.

 The country has also become one of the leading destinations for high-end
diagnostic services with tremendous capital investment for advanced
diagnostic facilities, thus catering to a greater proportion of population.

 Besides, Indian medical service consumers have become more conscious

towards their healthcare upkeep.

 Indian healthcare sector is much diversified and is full of opportunities in

every segment which includes providers, payers and medical technology.
With the increase in the competition, businesses are looking to explore
for the latest dynamics and trends which will have positive impact on
their business.

 The hospital industry in India is forecasted to increase to Rs 8.6 trillion

(US$ 132.84 billion) by FY22 from Rs 4 trillion (US$ 61.79 billion) in
FY17 at a CAGR of 16-17 per cent.

 The Government of India is planning to increase public health spending

to 2.5 per cent of the country's GDP by 2025.

 India's competitive advantage also lies in the increased success rate of

Indian companies in getting Abbreviated New Drug Application (ANDA)
approvals.

 India also offers vast opportunities in R&D as well as medical tourism.

To sum up, there are vast opportunities for investment in healthcare
infrastructure in both urban and rural India.
Chapter 6

Company Profile
 HISTORY & ORIGIN:

 Sometime in the early forties, British Companies realised the need of

good healthcare services for their families.

 Accordingly they opened a company called “East India Clinic Ltd” on

23rd October 1946 East India Clinic started 2 nursing homes in Elgin
Road in 1947 and started his journey.

 The construction of Woodlands Nursing Home started in 1958 and was

inaugurated on 8th January 1961 by the then Chief Minister and eminent
Dr Bidhan Chandra Roy whose birthday is celebrated as Doctor’s Day.

 East India Clinic Ltd was shifted to Woodlands Nursing Home. The
name Woodlands was derived from the name of the Palace.

 The set up of Elgin Road as well as the pharmacy in Russel Street were
closed immediately after the opening of the Woodlands Nursing Home.

 The name of East India Clinic Limited got changed to Woodlands

Hospital and Medical Research Centre Limited in the year 1994 and
thereafter to Woodlands Medical Centre Limited in the year 2004.

 In 2009 Woodlands Medical Centre Limited became the Woodlands

Multispeciality Hospital Limited.
 MISSION & VISION
 VISION: To position Woodlands as the most trusted and admired
healthcare provider of choice in Eastern India.

 MISSION: To be a patient centric organization offering our patients an

experience which exceeds their expectations and achieve excellence in service
through care, knowledge and innovation.

 QUALITY POLICY:
Woodlands Hospital, Kolkata, is established with the purpose of providing
international standards of healthcare. We are further committed to achieve
patient centric care, clinical excellence and safety of patients, their relatives and
staff with the aid of trained medical, non-medical and paramedical
professionals.

 AWARDS,ACCOLADES,CERTIFICATIO
N
 WOODLANDS HOSPITAL IS NOW NABH
ACCREDITED****
"A public recognition of the achievement of accreditation standards by a
healthcare organisation, demonstrated through an independent external
peer assessment of that organisation's level of performance in relation to
the standards".
CERTIFICATION NUMBER - PEH -2019-0715
HIGHLIGHTS OF ACHIEVEMENT OF NABH
ACCREDITATION –
 Empathetic Patient care and scientific treatment outcome.
 High quality of care and patient safety
 Patients get services by credential Medical& Support staff.
 Rights of patients are respected and protected
 Patient satisfaction is regularly evaluated
 Accreditation provides an objective system of
empanelment by insurance and other third parties.
Accreditation provides access to reliable and certified
information on facilities, infrastructure and level of care.
 THE ONLY HOSPITAL IN EASTERN INDIA
WITH ‘PHARMACIE-DE-QUALITIE’
CERTIFICATION -

Pharmacie De Qualite is a global recognition in accordance to World

Health Organization’s definition of Good Pharmacy Practices &
excellence in pharmacy operation.

 Woodlands Hospital received this certification for meeting the

following standards-
 High patient care standards
 Benchmarking global standards
 Effective competency building
 Consistently positive treatment outcomes.
 Services offered
 The Hospital has a well equipped Diagnostic centre. It consists of 12
lead ECG, Colour Doppler, 128 slice dual source dual energy CT Scan
and 3 Tesla MRI facility. It offers Cardiac Stress Tests, Holter
Monitoring Pulmonary Function Tests, Echocardiogram,
Mammography, CT/USG Guided FNAC, Special Imaging and
EEG/EMG.

 Various surgeries such as Cardio-thoracic & Vascular surgeries,

Orthopaedic replacement & implant, Laparoscopic Abdominal
procedures, Obstetric & Gynaecological, Major oncosurgical
intervention Eye & ENT, Oral & Maxillofacial; Kidney transplants,
Complete Urology including Laser and major endoscopic surgeries are
performed at the hospital by skilled surgeons.

 Woodlands Hospital Kolkata consists of several Laboratories such as

Clinical Pathology, Microbiology, Haematology,
Immunohistochemistry Histopathology and Hormonal Studies.

 It has Lifestyle / Diabetics / Hypertension / IHD Clinic, Well Women

Clinic, Eye Clinic, ENT Clinic, Dental Clinic, Bone & Joint Clinic, Baby
Clinic and Stone Clinic.

 The hospital offers Cardiac health Check Up, Executive Health Check
Up; Health Screening Schemes I, II & III; Customized Corporate
Diagnostics; Renal, Hepatic, Cardiovascular and Urological &
Gastrointestinal Test Packages.

 There are Intensive Therapy Unit, Intensive Cardiac care Unit, Critical
care Unit, Neo-natal Intensive Therapy Unit and Special Care Units.
Procedures like Laparoscopies, Lithotripsy, URS / Uroslometry,
Cystoscopy & Allied Procedures, Cardiotocography; Burn, Trauma &
other cosmetic treatment and Smile Correction are carried out.
 The Hospital provides 24-hour service.
 It consists of a Blood Bank. It offers Dialysis, Imaging and Emergency
Intervention services.
 The Hospital provides outpatient as well as in-patient care. It treats and
cures a wide range of maladies and complicated.
 SWOT Analysis
STRENGTHS WEAKNESSES
 Highly qualified and  Limited presence
experienced doctors  High costs
 Patient care 
 Focus on continuous
improvement
 Quality Accreditations
 Corporate Tie-ups.
OPPORTUNITIES THREATS
 Growing health concerns  Competition
 Underdeveloped healthcare  Prohibitive healthcare costs
availability
 Medical Tourism.

Strengths:
 Highly qualified and experienced doctors – the doctors and
facilities are what make a hospital good. This is something that is
readily available in Woodlands Hospital. Every single appointed
doctor is highly qualified with impeccable experience which
ensures that you are in good hands and not just callous ones. This is
what segregates this hospital from the sea of other hospitals.

 Patient care: Woodlands understands the importance of patient

care and right from the design of its facilities such as emergency,
trauma care and even entry and exit to, doctors and support staff
and specialized and advanced services the need of the patient is
considered and given maximum attention. Patients are made
comfortable at every instant and all staff is asked to display high
levels of sensitivity.
 Focus on continuous improvement: Woodlands Hospitals looks
at services across various specialty areas in medicine and the
healthcare provider focuses on continuous improvement in all
 aspects of its services giving paramount importance to research
and development.

 Quality Accreditations: The hospital ensures that all its systems

and facilities are in tune with industry benchmarks and state of the
art. In order to ensure this, the hospital has taken certification from
NABH. This ensures standardization in the delivery of services by
qualified professionals.

 Corporate Tie-ups: Business houses and corporates are concerned

today about the health and well being of their employees. This
makes them enter into tie-ups with hospitals for regular health
check-ups for employees. Woodlands itself have tie ups with major
corporate like IBM, NHPC,IOCL etc which is one of the strengths
to capitalize on.

Weaknesses :
 Limited presence – At present only providing services in
Kolkata with one and only branch.
 High Costs -Even with the world-class services that they
provide, they charge a hefty amount of money which is not
always affordable by the common people. This is why this
hospital is not always the first option for the ordinary
people, even with the kind of services that they provides.

Opportunities:
 Growing health concerns: With more and more
information available over the Internet, people are highly
conscious of their health today. They are also aware that
after 40 they need to keep track of the signals that their
body gives them. This is making people approach
specialists even for small ailments providing a plethora
of opportunities for hospitals.
 Underdeveloped healthcare availability – India is that
third world country that is evolving in terms of hospitals
and healthcare. This is definitely one of the main reasons
which account for positive opportunities for the Apollo
 Hospitals. The lesser amount of developed healthcare
service providers around the country pose as one of the
best opportunities for this hospital.
 Medical Tourism: India is popular globally not just for
the quality of its healthcare but also for the quality of the
professionals who provide them. The nurses of India are
wanted globally for the prowess. The healthcare facilities
in India are also relatively cheaper. All this makes India a
prime target for medical tourism.

Threats:
 Competition –With the advancing technology and newer
medical interventions, several hospitals are evolving with
their services as well. This is one of the primary threats
that Woodlands Hospital might encounter in the coming
future. Newer technologies are being added and most of
the high-end hospitals are incorporating the same into
their services to be able to successfully serve people with
their added and advanced services. This is one of those
threats that this establishment might face along the way.
Chapter 7
Literature Review
Literature review was done y referring previous studied, articles,
journals , books to know areas of the study and analyze the gap or
study not done so far. There are various studies were conducted
relating to operational performance of the company from which most
relevant literature were reviewed.
Susan Ward (2008) , emphasis that financial performance analysis
using ratios between key values helps investors to cope with the
massive amount in company financial statements.For example – they
can compute the percentage of net profit a company is generating on
the funds it has deployed. All other things remaining the same , a
company that earns a higher percentage of profit compare to other
companies is a better investment option.
M Y Khan and P K Jain (2011) , have explained that the financial
statements provide a summarized view of the financial position and
operations of a firm. Therefore much can be learnt about a firm from a
careful examination of its financial statements as invaluable
documents performance reports. The analysis of financial statements
is , thus an important aid to financial analysis.
Elizabeth Duncan and Eliott(2004) , had stated that the paper in the
title of efficiency ,customer service and financial performance among
Australian financial institutions show that all financial performance
measures as profit margin, return on assets are positively correlated
with customer service quality scores.
Jonas Elmeraji (2005) , tries to say that ratios can be an inevitable tool
for making an investment decision .Even so many new investors
would rather leave their decisions to fate than try to deal with the
intimidation of financial ratios. The truth is that ratios aren’t that
intimidating ,even if you don’t have a degree in business or finance.
Using ratios to make informed decisions about an investment makes a
lot of sense , once you know how to use them.
Carlos Coreaa (2007) , had explains that any analysis of the firm
whether by management, investors , or other interested parties, must
inclue an examination of te company’s financial data. The most
obvious and readily available source of this information is the
company’s annual report. The financial statement shall, in conformity
will generally accepted accounting practice, fairly present the state of
affairs of the company and the results of operations for the financial
year.
Rachell Minakxi .A (2011) have suggested that the financial statement
analysis involves analyzing the financial statements to extract
information that can facilitate decision making .It is the process if
evaluating the relationship between component parts of the financial
statements to obtain a better understanding of an entity’s position and
performance.
T.S Reddy and Y. Hari Prasad Reddy (2009) have stated that “The
statement disclosig status of investments is known as balance sheets
and statement showing the result is known as profit and loss account”.
I.M. Pandey had stated that the financial statements contain
information about the financial consequences and sources and uses of
financial resources, one should be able to say whether the financial
condition of a firm is good or bad, whether it is improving or
deteriorating One can relate financial variables of financial statements
in a meaningful way which will suggest the actions which one may
have to initiate to improve the firm’s financial condition.
Chapter 7
Research Methodology
This study is conducted to ascertain the comparative financial
performance of Woodlands Multispeciality hospital and Apollo
Gleneagles Hospital.
Research Design:
In this study I am going to analyze the financial
performance by using relevant tools and techniques
,quantitative and analytical research design is used.

Research Tool: The following tools are used -

1. Ratio Analysis
2. Revenue and Expenditure analysis

Type of data:
The paper is based on basically secondary data. Datas
are collected from various sources i.e. annual report of the companies,
Govt published reports and various journals.
Chapter 8
Data analysis & interpretation
%OF TOTAL REVENUE OF WOODLANDS MULTISPECIALITY
HOSPITAL

%OF TOTAL REVENUE OF APOLLO GLENEAGLES HOSPITAL

% OF TOTAL EXPENSES OF WOODLANDS MULTISPECIALITY
HOSPITAL

%OF TOTAL EXPENSES OF APOLLO GLENEAGLES HOSPITAL

 Balance Sheet Woodlands Apollo
Ratios Multispeciality Gleneagles
Hospital Hospital
Current Ratio 1.710218475
1.2264
Quick Ratio 1.654208509 0.8828
1.103064388 0.1340
Absolute liquidity
ratio

6.95% 0.910 %
Return on Assets

16.85% 12.36%
Net Profit Ratio

0.081331661 0.019
Return on Equity

30.46 21.76
Earnings Per Share

Debt-to-Assets Ratio 0.11263 0.329284

Debt to EBITDA Ratio 11.75522 10.35

1.170407
Asset to Equity Ratio 2.17
 Liquidity ratio
Liquidity ratios measure a company's ability to pay debt obligations and its
margin of safety through the calculation of metrics including the current
ratio, quick ratio, absolute liquidity ratio.

Current Ratio:

The current ratio is a liquidity ratio that measures a company's ability to pay
short-term obligations or those due within one year. It tells investors and analysts
how a company can maximize the current assets on its balance sheet to satisfy its
current debt and other payables.

Interpretation
This ratio shows the current assets available to cover current liabilities at the
balance sheet date. There should be a reasonable buffer of current assets over
current liabilities as an indication of the ability of the firm to pay its debts as and
when they fall due.
 In the year 2018-19 Woodlands Multispeciality Hospital shows
current ratio of 1.71 which implies that the firm has the current
assets of 1.71 times of its debts to pay off when they fall due.
 Whereas, Apollo Gleneagles Hospital shows current ratio of 1.2264
which implies that the firm has currents assets of 1.2264 times of
its debts to pay off when they fall due.
Quick ratio :
The quick ratio is an indicator of a company’s short-term liquidity position and
measures a company’s ability to meet its short-term obligations with its most
liquid assets other than inventories.

Interpretation
As a supplement to current ratio, quick or acid test ratio aims to show the more
Liquid assets.With reference to current assets, the results are not significantly
affected since only inventories are not considered here.
 Initially in the year 2018-19 Woddlands Multispeciality Hospital
recorded 1.65 which is more than that of Apollo Gleneagles
Hospital (0.8828) which implies more liquid assets are available to
Woodlands Multispeciality Hospital to pay thr more immediately
payable liabilities.
Absolute liquidity ratio:

The reason of computing absolute liquid ratio is to eliminate accounts

receivables from the list of liquid assets because there may be some doubt about
their quick collection. This ratio is useful only when used in conjunction with
current ratio and quick ratio. An absolute liquid ratio of 0.5:1 is considered ideal
for most of the companies.

Interpretation
An absolute liquid ratio of 0.5:1 is considered ideal for most of the companies.

 Here it is noted that in the year 2018-19 Woodlands Multispeciality

Hospital shows absolute liquid ratio of 1.10 which is more than the
benchmark of 0.5. So we can state that the company has sufficient
current assets to meet its current liabilities other than accounts
receivables.

 For Apollo Gleneagles Hospital the absolute liquid ratio is 0.134

which is less than its benchmark of 0.5.
 Profitability Ratio
Profitability ratios are a class of financial metrics that are used to assess a
business's ability to generate earnings relative to its revenue, operating costs,
balance sheet assets, and shareholders' equity over time, using data from a
specific point in time.

Net Profit Ratio:

The net profit ratio illustrates how much of each dollar in revenue collected by a
company translates into profit.

Interpretation:

 Woodlands Multispeciality Hospital recorded Net Profit ratio 16.85% which

is more than than that of Apollo Gleneagles Hospital which indicates that
the the company 16.85% which is more than than that of Apollo Gleneagles
Hospital which indicates that the the company is exercising good cost
control and has an enough amount of revenue left after deducting all
expenses from sales.
Return on assets:
Return on assets (ROA) is an indicator of how profitable a company is relative
to its total assets. ROA gives a manager, investor, or analyst an idea as to how
efficient a company's management is at using its assets to generate earnings.
Return on assets is displayed as a percentage.

Interpretation

Generally, the higher this ratio, the more effective it is.

 The return on asset of Woodlands Multispeciality Hospital recorded as

6.95% which indicates the effectiveness of using assets to generate
revenues.

 Whereas Apollo Gleneagles Hospital recorded 0.91% which indicates that

that it has less effectiveness of using assets than Woodlands
Multispeciality Hospital to generate revenues.
Return on Equity :
The Return on Equity ratio essentially measures the rate of return that the
owners of common stock of a company receive on their shareholdings. Return
on equity signifies how good the company is in generating returns on the
investment it received from its shareholders.

Interpretation

The return on equity ratio is a profitability ratio that measures the ability of a
firm to generate profits from its shareholders’ investments in the company.

 Initially in the year 2018-19 Woodlands Multispeciality Hospital shows

return on equity of 0.081 which id more than that of Apollo Gleneagles
Hospital which’s ROE shows 0.019.

 It implies that Woodlands Multispeciality Hospital has more ability to

generate profits from its shareholders investents in the company than that
of Apollo Gleneagles Hospital.
Earnings Per Share:
It is an indicator of a company's profitability. It is common for a company to
report EPS that is adjusted for extraordinary itemss and potential share dilution.
The higher a company's EPS, the more profitable it is considered.

Interpretation

This ratio indicates the ability of the firm’s assets to generate operating income.

 In 2018-19 Woodlands Multispeciality Hospital recorded its best

EPS of 30.46 and Apollo Gleneagles Hospital recorded its EPS of
21.76.

 As a rule of thumb, the higher this ratio, the better it is.

 So from the above discussion we can state that Woodlands

Multispeciality Hospital shows the return that shareholders are
actually obtaining on their investment, is more than Apollo
Gleneagles Hospital.
 Leverage ratios
Debt to assets ratio:
This metric enables comparisons of leverage to be made across different
companies. The higher the ratio, the higher the degree of leverage (DoL) and,
consequently, financial risk. The total debt to total assets is a broad ratio that
analyzes a company's balance sheet by including long-term and short-term debt
(borrowings maturing within one year), as well as all assets—both tangible and
intangible, such as goodwill.

Interpretation:

In the year 2018-19 Woodlamds Multispeciality Hospital recorded Debt to

assets ratio of 0.11 which is less than that of Apollo Gleneagles Hospital which
has Debt to Assets ratio of 0.32.

 So it can stated that the total amount of debt is more for Woodlands
Multispeciality Hospital relative to its assets which shows there is an
inefficiency in managing debtors.
Debt-to-EBITDA Ratio:
The net debt-to-EBITDA ratio is a debt ratio that shows how many years it
would take for a company to pay back its debt if net debt and EBITDA are held
constant. If a company has more cash than debt, the ratio can be negative. It is
similar to the debt/EBITDA ratio, but net debt subtracts cash and cash
equivalents while the standard ratio does not.

Interpretation
 Woodlands Multispeciality Hospital shows Debt to EBITDA ratio for the
year 2018-19 is 11.75 approx 12 years which implies that it would tale for
the company to payback its debt and EBITDA are held constant.

 Whereas ,for Apollo Gleneagles Hospital it will take 10.35 aopprox 11 years
for the company to payback its debt if EBITDA held constant.
Asset-to-Equity Ratio:
The asset to equity ratio reveals the proportion of an entity’s assets that has been
funded by shareholderss. The inverse of this ratio shows the proportion of assets
that has been funded with debt.

Interpretation
Initially in the year 2018-19 Woodlands Multispeciality Hospital recorded
Assets to Equity ratio of 1.17 which is less than that of Apollo Gleneagles
Hospital wich has assets to equity ratio of 2.17.

 It can be stated that the proportion of Woodlands Multispeciality Hospital’s

assets funded by its shareholders is less than the the assets funded by the
shareholders of Apollo Gleneagles Hospital.

Chapter 9
Observation /Findings
Based on the Statement of profit and loss of both the companies it can be stated
that-

 Woodlands Multispeciality Hospital’s 96% of total revenue comes from

revenue from operations i.e from hospital fees and services,0.40% of total
revenue comes from sale of traded goods,2.13% from other income and
2.1% income from college fees.

 Whereas in case of Apollo Gleneagles Hospital , approx. 100% of

revenue comes from revenue from operations.

So, we can state that Woodlands Multispeciality Hospital needs to focus on the
area of improving sales.

Woodlands Hospital spends more for employee benefits expenses approx. 41%
of its total expenses, 24% on cost of material consumed, 0.44% on purchase of
traded goods ,0.34% on decrease or increase in traded goods.

Apollo Gleneagles Hospital spends approx. 23% on other expenses, 19% on

cost of materials consumed,40% on stock in trade, 18% on employee benefit
expenses.

 The company needs to manage an efficient benefits plan involves less

company spending but maintains high employee satisfaction.

 Based on the Balance sheet of both the companies we can state that
there is an inefficiency of managing inventories of Apollo Gleneagles
Hospital as the end of the year 2018-19 it stands for Rs.56115 whereas
for Woodlands Hospital it stands for 140.72.

Chapter 10
Suggestion & Reccomendation
On the basis of P/L analysis it can be suggested to the Woodlands
Multispeciality Hospital that-

 It needs to focus on the area of improving sales.

 The company needs to manage an efficient benefits plan which involves

less company spending but maintains high employee satisfaction.

 It needs more transparency on sale of traded goods process.

 The company also needs to manage more effective cost system to

decrease the cost of materials consumed.

On the basis of Balance sheet analysis-

Based on factors like liquidity ratios, profitability ratios and leverage ratios ,it
can be concluded that Woodlands Multispeciality Hospital is the most sought-
after company, which have shown tremendous financial result in the year
2018-19.

Chapter 11
Conclusion

Chapter 12
Contribution to the organization
As a two month finance intern I have learned here
• How to prepare bank reconciliation statement,
• The entire billing process which involves preparation of
purchase order then Goods received note which is issued by the
security after all this process the vendor’s bill is matched with the
purchase order , then the amount whichever is lower that is paid to
the respective vendors.
• How to do entry in their own software Hospital Management
System (HMS).How to operate it and make entry in it.

Chapter 13
Limitation :
The study has the following limitations-

 The period of study is limited to one year only.

 Ratio analysis suffers from various drawbacks moreover ; the

standard norm for the ratio also varies from industry to industry
and hence interpretation is not done with high degree of
accuracy.

 The time allocated for this study is limited to 2 months only.

Chapter 14
Bibliography
1. Annual report of Woodlands Hospital for the year 2018-19
2. Annual report of Apollo Gleneagles Hospital for the year
2018-19.
3. www.slideshare.net
4. www.woodlandshospital.com
5. www.ibef.org
6. www.olympiabenefits.com
7. www.scribd.com
8. Classnotes of Dr. Rajni Gupta on ratio analysis.
9. www.investopedia.com

ROUGHWORK
RATIO ANALYSIS FOR THE YEAR 2018-19 WOODLANDS
HOSPITAL

LIQUIDITY RATIO :

 Current Ratio =Current Assets / Current Liabilities

= 4296.77/2512.4
= 1.710218475
 Acid Test or Quick Ratio = Quick Assets/ Current Liabilities
= Current Assets – Inventories/Current Liabilities
= 4296.77-140.72/2512.41
= 1.6542085
Note: Quick assets are current assets that can be converted to cash
within 90 days or in the short-term.

 Absolute liquidity ratio= Cash / Current Liabilities

=2771.35/2512.41

= 1.103064388

PROFITABILITY RATIO :

 Net Profit Ratio = Net Profit /Sales × 100

= 1902.56/11837.81

= 16.85913386

 Return on Assets = Net Profit /Total Assets ×100

= 1902.56/21608.1 ×100

=8.80%
 Return on Equity = Profit after Tax / Net worth

= Profit after Tax /Equity share capital, and Reserve and Surplus

= 934.45/18462.06

=0.081331661

 Earnings Per Share = Net Profit /Total no of shares outstanding

= 30.46

LEVERAGE RATIO :
 Debt-to-Assets Ratio = Total Debt / Total Assets
= (Short-term debt + Long-term debt) - (Cash + Cash equivalents)
/ Total Assets
= (196.86+ 140.75) -2771.35/ 21608.12
= - 0.11263

 Debt-to-EBITDA Ratio =Total Debt / EBITDA

= (196.86+ 140.75) /1902.56
=11.75522

 Asset-to-Equity Ratio = Total Assets / Total Equity

=21608.12/18462.06
=1.170407
COVERAGE RATIO :

 Asset Coverage Ratio = (Assets – Intangible Assets) – (Current

Liabilities – Short-term Debt)) / Total Debt
 = (21608.12-6.76) – (2512.41-196.86)/(196.86+140.75)

Statement of profit and loss ratios

Ratio analysis of Apollo

Current Ratio = Current assets / current liabilities
= 200303/163321
= 1.2264
Quick Ratio = Quick Assets/ Current Liabilities
=Current Assets – Inventories/Current Liabilities
= 200303-56115/163321
= 0.8828
Absolute liquidity ratio = Cash / Current Liabilities
= 21896/163321
= 0.1340
Net Profit Ratio = Net Profit (PAT) /Sales × 100
= 7678/216711/100
= 3.54%
Return on Assets = Net Profit /Total Assets ×100
= 7678/842846*100
= 0.910
Return on Equity = Profit after Tax / Net worth

= 7678/388340
=0.019
Earnings Per Share = Net Profit /Total no of shares outstanding

= 21.76
Debt-to-Assets Ratio = Total Debt / Total Assets

= 259733+45569-27766/842846
= 0.329284
Debt-to-EBITDA Ratio =Total Debt / EBITDA

= 259733+45569-27766/26806
=10.35
Asset-to-Equity Ratio = Total Assets / Total Equity
= 842846/388340

=2.17
Asset Coverage Ratio = (Assets – Intangible Assets) – (Current
Liabilities – Short-term Debt)) / Total Debt
= (842846-9483-3032)(16332145569)/(259733+45569-27766)

= 2.57
Notes to financial statements for the year ended 31-
3-2019
Woodlands Multispecialty hospital Limited (“the company”) was
incorporated on 29th December ,2009 and necessary certificate for
commencement of business was issued by the Registrar of
Companies, West Bengal on 11th January,2010.The company is
engaged in the business of healthcare and other related services.
Pursuant to a Scheme of Arrangement (“the scheme”) sanctioned by
the Hon’ble High Court Of Calcutta on 29th November, 2010, the
undertaking of Woodlands Medical Centre Limited (“transferor
company”) including inter alia all its properties, assets and liabilities
as on 1st April 2010 (“Transfer Date”) stood transferred to and vested
in the company as going concern effective the transfer date without
further act or deed.
The Scheme, upon sanction by the Hon’ble High Court at Calcutta
became operative on 11th January 2010.IIn consideration of the
scheme the company has issued Equity shares to members and
Debenture holders of the transferor company:
To the extent the Equity shares have remained unallotted by the
company as on 31st march, 2019, either because application in the
requisite format has not been received or otherwise , the value thereof
computed at Rs.10 per equity share has been credited to and
considered under “Share Capital suspense account – Pending
allotment”. The amount of Rs.47.02 Lacs (previous year –Rs. 47.88
lacs)disclosed in share capital suspense account – pending allotment
and considered in the company’s Balance sheet as on 31st march ,
2019, has evolved out of the above and this will be transferred to
share capital account as and when the procedural issues stipulated in
the scheme are completed.

 SIGNIFICANT ACCOUNTING POLICIES:

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with the

Generally Accepted Accounting Principles (GAAP) in India on
accrual basis and under historical cost convention except for assets
acquired earlier and revalues subsequently. GAAP comprises
mandatory Accounting Standards prescribes under Section 133 of the
Companies Act, 2013 (“the act”) read with Rule 7 of the Companies
(Accounts ) Rules,2014 and the provisions of the Act. Accounting
policies have been consistently applied except where a newly issued
Accounting Standard is initially adopted or a revision to an existing
Accounting Standard requires a change in the Accounting policy
hitherto in use.
1.2 USE OF ESTIMATES:
The preparation of financial statements on conformity with GAAP
requires management to make estimates and assumptions that effect
the reported balances of assets and liabilities as at the date of the
financial statements and reported amounts of income and expenses
during the reporting period. Examples of such estimates include
useful lives of intangible depreciable fixed assets, Provisions for
impairment , Employee Retirement Benefit Plans, Doubtful
debts/Advances, Income Tax, Deferred Tax etc. Actual result could
differ from those estimates. Such difference is recognizes in the
period in which the results are known /materialized.
1.3 REVENUE RECOGNITION:
Revenue is recognized to the extent it is probable that the economic
benefits will flow to the company and the revenue can be reliably
measured. The company presents revenue met of indirect taxes, if any,
in the statement of profit and loss . Other items of income are
recognizes on accrual and prudent basis except otherwise stated.
1.1 PROPERTY , PLANT AND EQUIPMENT AND CAPITAL
WORK IN PROGRESS:
An item of property , plant and equipment whose fair value can be
measured reliably is carried at a revalued amount, being its fair value
at the date of revaluation less any subsequent accumulated
depreciation and subsequent impairment losses, if any.
Depreciation of tangible assets is provided on the written down value
method over the useful life of fixed assets as stipulated in schedule II
to the Act. Depreciation for assets purchased /sold during the current
financial year is proportionately charged.
In case of revaluation of any asset, the Company recognizes
depreciation based on the revalued amount (substituted cost) of the
asset. Depreciation on revaluation surplus is adjusted against the
Revaluation Reserve account created upon such revaluation.
Intangible assets are recorded at the consideration paid for acquisition
of such assets and are carried at cost less accumulated amortization
and impairment. Accordingly, Intangible Assets (Computer software)
are amortized under straight line Method over useful life as estimated
by the Management commencing from the date the asset is available
to the company. For amortization, useful lives are revised periodically.
1.5. IMPAIRMENT OF ASSETS:
The carrying amount of assets are reviewed at each balance sheet date
if there is any indication of impairment based in internal and external
factors. An impairment loss is recognized wherever the carrying
amount of an asset exceeds its recoverable amount. However, the
recoverable amount is higher of an asset’s net selling price and its
value in use. Value in use is the present value of estimated future cash
flows expected to arise from the continuing use of an asset and from
its disposal at the end of its useful life.
1.6 INVESTMENTS:
Investments are classified as Long term investments in accordance
with Accounting Standard (AS-13) OF THE Companies (Accounting
standards) Rules , 2006. Investments in shares, Debentures, Mutual
funds, etc are stated at cost except otherwise indicated. Gains/ losses
on disposal of investments are recognizes as income/expenditure.
Dividends are being accounted for when received.
1.7 INVENTORIES:
Inventories are valued at lower of cost or net realizable value. Cost is
determined on First in first out basis.
1.8 CASH AND CASH EQUIVALENTS:
Cash and cash equivalents include cash in hand , demand deposits
with banks, other short term highly liquid investments with original
maturities of three months or less.

1.9 FOREIGN CURRENCY TRANSACTIONS:

Transactions of foreign currency are recorded at exchange rate
prevailing at the date of transactions. Monetary items denominated in
foreign currency are restated at the exchange rate prevailing at the
Balance sheet date. Exchange differences arising on settlement of
transactions and / restatements are dealt in Statement of Profit and
loss.
Exchange differences relating to long term foreign currency monetary
items to the extent that are used for financing the acquisition of fixed
assets, are added to or subtracted from the cost of such fixed assets.
1.10 EMPLOYEE BENEFITS:

 Gratuity and Leave Encashment : Year-end accrued liabilities

on account of gratuity payable to employees are recognized on
the basis of actuarial valuation with appropriate contribution to
the approved gratuity fund. Leave encashment payable to
employees are also evaluated on the basis of actuarial valuation
and recognized as revenue charge in the accounts, taking into
consideration the requirement of accounting standard (AS-15) of
the Companies (Accounting Standards)Rules,2006.
 Provident Fund: Eligible employees receive benefits from
provident fund which is a defined contribution plan. Both the
eligible employees and t5he company make monthly
contributions to the provident fund plan equal to the specified
percentage of the covered employees salary.
1.11 INCOME TAXES:
Income taxes accrued in the same period that the related revenue and
expense arise.
A provision is made for Income Tax, based on the tax liability
computed, after considering tax allowance and exemptions. Minimum
Alternate Tax (MAT), if any, is paid in accordance with the tax laws
of INDIA.
Income Tax Provision comprises current tax and deferred tax charge.
Deferred tax assets and liabilities are recognized on timing differences
, being the difference between taxable income and accounting income
that originated in one period and are capable of reversal in one or
more subsequent periods. Deferred tax assets are recognized only if
there is reasonable certainty that sufficient future taxable income will
be available against which such deferred tax assets will be realized.
Such assets are reviewed as at each Balance Sheet date to reassess
realisability thereof.
Deferred tax assets and liabilities are offset wherever the company has
a legally enforceable right to set off current tax assets and current tax
liabilities and where the deferred tax assets and the deferred tax
liabilities relate to income taxes levied by the same taxation authority.

1.12 ACCOUNTING FOR PROVISIONS AND CONTINGENT

LIABILITIES :
Provisions are recognized in terms of accounting standard (AS-29)
under Companies (Accounting Standards) Rules , 2006, for
“Provisions and Contingent Liabilities”, when there is a present legal
or statutory obligation as a result of past events , where it is probable
that there will be outflow of resources to settle the obligation and
when a reliable estimate of the amount of the obligation can be made.
Contingent liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non
occurrence of one or more uncertain future events not wholly within
the control of the company or where any present obligation cannot be
measured in terms of future outflow of resources or where a reliable
estimate of the obligation cannot be made. Obligations are assessed
on an ongoing basis and only those having a largely probable outflow
of resources are provided for.
1.13 OTHER INCOME
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
1.14 EARNING PER SHARE
Basic earning per share is calculate by dividing the net profit or loss
for the periods attributable to equity shareholders by the weighted
average number or equity shares outstanding during the period.
1.15OTHER EXPENSES
Other expenses includes electricity charges, nursing school expenses
etc.