Mohan's Funds Flow

FUNDS FLOW STATEMENT
INDUSTRY PROFILE
SALN College of Engg & Mngt Page 1

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 relative’s, friends and a third party i.e. the payer and is influenced by
government’s regulations, accreditation and community

INFLUENCES THAT WORK ON PATIENTS, DOCTORS AND
HOSPITALSRECEPTIVITY:
INFLUENCES ON PATIENTS:
Social
Status
Economics
Kind of illness Conditions
Friends and
Employers Patients
Relatives
Other pressing Urgency for

needs treatment
Level of
knowledge

INFLUENCE ON DOCTORS:
Structure of the
organization
PROFESSIONAL Socio Economic

ETHICS Conditions of patients
Government
Regulations
Employer
Doctors
Peer Group Improving

Professional ability
Facilities available
at Hospital

INFLUENCES ON HOSPITALS:
Medical Ethics
Socio – Economic
Medical Staff
Condition of nation
food
Gove
rnment Non Medical Staff
Hospital
Med
ical
Administrative
Para-Medical Staff
Organizations
Patients
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.

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

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 physician’s 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.

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.

TYPES OF HOSPITALS
Hospital Types:
Size Path Owner ship Objective
Teaching cum
Teaching Allopathic Government Research
Semi
District Ayurveda Government General
Taluk Homeopathy Voluntary

Agencies Special
Primary
Health Unani Private
Charitable
Others

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

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.

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.

COMPANY PROFILE
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.

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

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 specialist’s 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 paramedic’s 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.

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

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, India’s first
and Asia’s 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 “world’s 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 27th 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 India’s 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 group’s 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

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.
Apollo’s 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

targeting middle-East Asia, South-East Asia, CIS countries, Eastern Africa and India’s
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 Apollo’s 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.

 The group’s 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.

 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.

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 Asia’s first 16-slice PET CT imaging system launched at Apollo
Hospitals Jubileehills and Hyderabad.
 India’s 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.

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 India’s 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.

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.

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).

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 March’2008 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. Asia–pacific bio business leadership award 2005 to Dr. Prathap C Reddy founder
chairman Apollo hospital group.

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 child’s 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.

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

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 couldn’t 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 Kukatpally
Malakpet DRDO
Mehdipatnam
Vikrampuri
Hyderguda International
Airport
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.
Chairman’s 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 couldn’t 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

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 India’s 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. Apollo’s 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

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. Reddy’s 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

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, Mathura
Road
NEW DELHI - 110 076
Tel: +91-011 -
26925801/26925858
Fax: +91-011-26823629
Website:
www.apollohospdelhi.com
Apollo Hospitals
21, Greams Lane Off
Greams Road
CHENNAI 600 006
Tel: +91-044- 28293333 /
28290200
Fax: +91-044-2834429
Website:
www.apollohospitals.com

Apollo Hospitals
Jubilee Hills, HYDERABAD - 500033
Tel: +91-40-23607777
FAX: +91-40-23608050
email: apollohyd@apollolife.com
Apollo Gleneagles Hospital

#58, Canal Circular Road
Kolkata - 700 054
Tel: + 91 033-23203040 / 2122 /
2003 / 2004 / 2006
email:
apollo_gleneagles@hotmail.com

Apollo Hospitals
Limited
Plot No. 1A , Bhat GIDC
Estate
Gandhinagar, Gujarat
-382428
Tel : +91-079 - 66701800
email:
response@apolloahd.com
Apollo Heart & Kidney

Center
10-50-80, WALTAIR MAIN
ROAD
VISHAKPATNAM - 530002
Ph: 0891-
2529618/19/20/21/22
FAX: 0891 -2560858
Website:
www.apollohospitalgroup.com
Apollo Hospitals
Seepat Road,
BILASPUR - 495 006
Tel: +91-07752-243300
Website:
www.apollobilaspur.com
Apollo Noida
E - 2, Sector - 26, Noida
(Adjacent to Club 26)
Tel: +91-120-4012000 /
2445353
Fax: +91-120-2445355
Email:
helpdesk_delhi@apollohospital
s.com

Apollo Hospitals Bangalore

154/11, Opp. I.I.M., Bannerghatta
Road,
Bangalore - 500 069.
Tel: +91 80 4030 4050
Website:
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)


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)

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.

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.

• 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 fund flow 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

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.

• 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.

• 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.

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

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

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

 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

WHEN ONE
CURRENT
And
OTHER NON –
CURRENT
ACCOUNT ARE
INVOLVED
WHEN BOTH
CURRENT
DIAGRAM DEPICTING FLOW OF Or FUNDS
NON- CURRENT
ACCOUNTS ARE
INVOLVED
FLOW OF FUNDS?
NO
CURRENT ASSETS CURRENT

LIABILITIES
YES YES YES
NON-CURRENT NON-CURRENT
ASSETS LIABILITIES
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 owner’s 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.

 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.

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.

 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:

 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

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’ 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 in
working 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

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 XXXXX
XXXXX
Current liabilities:
Trade creditors XXX XXX
Dealers deposits XXX XXX
Expenses payable XXX XXX
Total current liabilities XXXXX
XXXXX
Working Capital (CA-CL)
XXXXX
Net Increase / decrease
working 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.

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

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 Operation
Redemption 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

Funds from trading Funds costs in operations XXXX

factitively or
XXXX Repayment of debentures
Operating profit
XXXX Reduction in share Capital XXXX
Issue of shares and
XXXX Interest and dividend paid XXXX
debentures
XXXX Payment of Long-term XXXX
Receipts of dividend and
loans.
Interest XXXX XXXX
Sales Proceeds of Non-

current asset Increase in working capital
XXXX
Long – term
XXXX XXXX
Borrowings
Decrease in working
XXXXX XXXXX
Capital
EXAMPLE PROBLEM:

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

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

Changes in working capital
Particulars 2004-05 2005-06
Increase 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 3037.88
Provisions 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.

Statement of Sources and Applications of Funds for the year ended at 31st March
2006.
Sources Amount Applications Amount
Secured loans 163.13 Purchase of fixed assets 2136.89

Unsecured loans 4184.15 Capital W-in-P 3362.14
Funds from operation 3524.86 Purchase of investments 589.83
1783.28
7872.14 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.

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.

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 company’s strength’s 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.

 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 Apollo’s 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.

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 Hospital’s 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.

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.

DATA ANALYSIS
AHEL BALANCE SHEET FOR THE YEAR ENDED 2003-04

2004 2003
I. Sources of funds
(1) Share holders funds:
395,186,880 395,186,880
Share capital A
2,071,555,641 1,864,558,995
Reserves and Surplus B
(2) Loans & Advances:
916,261,993 1,118,302,314
(a) Secured Loans C
647,625,224 607,106,641
(b) Unsecured Loans D
534,498,611 -----
Deferred Tax Liability
4,565,128,349 3,985,154,830
TOTAL
II. Application of funds:
Fixed assets:
3,946,247,611 3,600,839,133
A) Gross Block
1,232,187,391 1,061,446,007
B) Less: Depreciation
2,714,060,220 2,539,393,126
Net Block
4,495,248 67,397,336
Capital Work In Progress
909,703,681 917,015,658
Investment
Current assets, Loans & Advances:
332,233,960 292,610,725
A) Inventories
722,483,822 682,835,869
B) Sundry Debtors
143,559,640 95,180,182
C) Cash and Bank Balance
804,005,122 917,015,658
D) Loans and Advances
Less: Current liabilities:
735,857,902 654,124,079
A) Current Liabilities
386,040,967 738,083,452
B) Provisions
880,383,675 397,556,415
Net Current Assets
56,485,525 77,933,863
Miscellaneous Expenditure
4,565,128,349 3,985,154,830
TOTAL
STATEMENT SHOWING CHANGES IN WORKING CAPITAL OF

AHEL FROM 2002-03 & 2003-04

Particulars 2002-03 2003-04 Increase Decrease
CURRENT ASSETS
a) Inventories 39623235 …….

292,610,725 332,233,960
b) Sundry Debtors 39647953 …….
682,835,869 722,483,822
c) Cash & Bank balances …….
95,180,182 143,559,640 48379458
d) Loan & Advances
719,137,170 804,005,122 44525770 …….
Total Current Assets (A) 1789763946 2002282544
CURRENT LIABILITIES
& PROVISIONS
a) liabilities 654,124,079 735,857,902 …….. 81,733,823
b) Provisions 738,083,452 386,040,967 352,042,485 ……..
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
88083,,675 88,083,675 1,235,685,009 1,235685,009

TOTAL
Interpretation:

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.

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

31st March 2004.
SOURCES AMOUNT APPLICATIONS AMOUNT
Issue of shares ……… Re pay of Secured Loans 202,040,321
Un-secured 40,518,583 Purchase of Fixed assets 1,406,854,485
Differed Tax liability 534,498,611

Increase in working capital 482,827,009
Purchase of Investments 7,311,977
Work In Progress 62,902,088
Funds from operation: 1,446,490,556
2,091,721,815 2,091,721,815
Interpretation:
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.

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.
III. Sources of funds 2005 2004

Share capital A 415,986,180 395,186,880
Reserves and Surplus B 2,862,213,464 2,071,555,641

(a) Secured Loans C 1,058,858,176 916,261,993
(b) Unsecured Loans D 308,687,000 647,625,224
Deferred Tax Liability 535,649,884 534,498,611
TOTAL 5,181,394,704 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

41,034,904 4,495,248
Investment 1,062,670,972 909,703,681

A) Inventories 371,247,722 332,233,960
B) Sundry Debtors 835,144,733 722,483,822
C) Cash and Bank Balance 219,098,299 143,559,640
D) Loans and Advances 94,131,322 804,005,122
Less: Current liabilities & provisions:

A) Current Liabilities 698,440,243 735,857,902
B) Provisions 553,386,010 386,040,967
Net Current Assets 1,167,795,823 880,383,675
Miscellaneous Expenditure 33,347,093 56,485,525

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

AHEL FROM 2003-04 & 2004-05
CURRENT ASSETS
……..
a) Inventories 332,233,960 371,247,722 39,013,762
……..
b) Sundry Debtors 722,483,822 808,181,529 85,697,707
…….
c) Cash & Bank balances 143,559,640 219,098,209 7,558,659
……..
d) Loan & Advances 804,005,122 102,194,526 217,089,404
Total Current Assets (A) 2002282544 2419622076
CURRENT LIABILITIES
& PROVISIONS
735,857,902 698,440,243 37,417,659 ……..

c) liabilities
386,040,967 553,386,010 …….. 167,345,043
d) Provisions
Total Current Liabilities (B) 112,189,863 1,243,129,253

880,383,675 1,176,492,823
Increase in Working Capital 296,109,148 296,109,148
1,176,492,823 1,,176,492,823 314,451,140 314,451,140

TOTAL

Interpretation:

As per our report totally current liabilities are increased.
COMPARISION:


31st March 2005.
Issue of shares 20,799,300 Re pay of Un-Secured Loans 338,938,224

Secured Loans 142,596,183 Purchase of Fixed assets 1,590,197,890
Differed Tax liability 1,151,273 Purchase of Investments 152,967,291
Funds from operation: 2,250,205,447 Increase in working capital 296,109,148
2,414,752,203 2,414,752,203
Interpretation:
2004-05 amounts Rs. 2,414,752,203. In the total funds 1% of funds were received
through share capital, 6% of funds received through the securing loans and the remaining
93% of funds received from funds from operation.

i.e. purchase of fixed assets, 6%of funds were invested in Investments I.e. purchase of
investments, 14% funds were used to re- pay the un-secured loans, 2% were used in
capital work in progress and remaining 12% were utilized for working capital.
V. Sources of funds 2006 2005
Share holders funds:

Share capital A 505,986,180 415,986,180
Loans & Advances:

(a) Secured Loans C 707,601,814 1,058,858,176
TOTAL 7,922,720,745 5,181,394,704
VI. APPLICATION OF FUNDS

Fixed assets:
A) Gross Block 5,084,477,000 4,304,258,110
Net Block 3,401,953,855 2,876,545,912

128,525,742 41,034,904
Investment 2,729,953,179 1,062,670,972

A) Inventories 457,180,349 371,247,722
B) Sundry Debtors 890,363,906 835,144,733
D) Loans and Advances 1,835,560,490 94,131,322
Current Liabilities & Provisions:

A) Current Liabilities 1,009,874,344 698,440,243
B) Provisions 893,076,142 553,386,010
Net Current Assets 1,644,548,542 1,167,795,823

TOTAL 7,922,720,745 5,181,394,704


AHEL FROM 2005-06 & 2006-07
PARTICULARS 2004-05 2005-06 INCREASE DECREASE
CURRENT ASSETS:
…………
a) Inventories 371,247,722 457,180,349 85,932,627
b) Sundry Debtors 835,144,733 890,363,906 55,219,173 …………
…………
c) Cash & Bank 219,098,299 364,394,283 145,295,984
balances
…………
d) Loans & Advances 994,131,322 1,835,560,490 841,429,168
TOTAL CURRENT
ASSETS: (A) 2,419,622,076 3,547,499,028
CURRENT
LIABILITIES &
PROVISIONS:
a) Liabilities 698,440,243 1,009,874,344 ………… 311,434,131

893,076,14
b) Provisions
553,386,010 2 ………… 339,690,132
TOTAL CURRENT ………… …………

LIABILITIES: (B) 1,251,826,253 1,902,950,486
working capital (a-b) 1,167,795,823 1,644,548,542 ………… …………
Net working capital 476,752,719 ………… 476,752,479
TOTAL
1,644,548,542 1,644,548,542 1,135,123,883 1,135,123,883

Interpretation:

COMPARISION:


31st March 2006.
Issue of shares 90,000,000 Re – pay of loans:

Differed Tax liability 14,541,818 Secured 351,256,362
Un-secured 188,575,000
Purchase of Fixed assets 3,890,424,233
Purchase of Investments 1,667,282,201
Funds from operation: 6,557,239,535 Work In Progress 87,490,838
Increase in working capital 476,752,719
6,661,781,353 6,661,781,353
Interpretation:
2005-06 amounts Rs. 6,661,781,353. In the total funds 1.4% of funds were received
through share capital, 0.2% of funds received through the differed tax liability and the
remaining 98.4% of funds received from funds from operation.
i.e. purchase of fixed assets, 25%of funds were invested in Investments I.e. purchase of
investments, 6% funds were used to re- pay the secured loans, 3% were used to re – pay of
un secured loans, 1% were used in capital work in progress and remaining 7% were
utilized for working capital.


VII. Sources of funds 2007 2006

Share capital A 584,981,080 505,986,180

(a) Secured Loans C 1,297,505,979 707,601,814
Total 9,545,721,673 7,922,720,745
VIII. APPLICATION OF FUNDS

Fixed assets
A) Gross Block 6,011,264,062 5,084,477,000
Net Block 4,028,386,328 3,401,953,855

128,525,742
Capital Work In Progress 424,581,632
Investment 3,229,602,239 2,729,953,179
(3) Current Assets, Loans & Advances:

A) Inventories 551,945,670 457,180,349
B) Sundry Debtors 978,920,391 890,363,906
D) Loans and Advances 1,847,079,300 1,835,560,490
(4) Current liabilities & Provisions:

A) Current Liabilities 1,254,576,474 1,009,874,344
B) Provisions 912,057,630 893,076,142
TOTAL 9,545,721,673 7,922,720,745

AHEL FROM 2005-06 & 2006-07

PARTICULARS 2005-06 2006-07 INCREASE DECREASE
CURRENT ASSETS:
…………
a) Inventories 457,180,349 551,945,670 94,765,321
b) Sundry Debtors 890,363,906 978,920,391 88,556,485 …………
…………
c) Cash & Bank 364,394,283 644,035,217 279,640,934
balances
…………
d) Loans & Advances 1,835,560,490 1,847,079,300 11,518,810
TOTAL CURRENT
ASSETS: (A) 3,547,499,028 4,021,980,578
CURRENT
LIABILITIES &
PROVISIONS:
a) Liabilities 1,009,874,344 1,254,576,474 ………… 244,702,130

893,076,14
b) Provisions
2 912,057,630 ………… 18,981,488
TOTAL CURRENT ………… …………

LIABILITIES: (B) 1,902,950,486 2,166,634,104
working capital (a-b) 1,644,548,542 1,855,346,474 ………… …………
Net working capital 210,797,932 ………….. ………… 210,797,932
TOTAL
1,855,346,474 1,855,346,474 532,359,479 532,359,479
Interpretation:

COMPARISION:


31st March 2007.
Issue of shares 10,399,650 Purchase of Fixed assets 4,592,187,940

Loans & Advances: Purchase of Investments 499,649,066
Secured 589,904,165 Work In Progress 296,055,890
Un – Secured 24,186,000 Increase in working capital 210,797,932
Differed Tax liability 20,443,681
Funds from operation: 4,953,757,332
5,598,690,828 5,598,690,828
Interpretation:
2006-07 amounts Rs. 5,598,690,828. In the total funds 0.2% received from issue of
shares, 11% funds were received through secured loans, 0.5% of funds received through
the unsecured loans, 0.3% were received through differed tax liability and the remaining
88% of funds received from funds from operation.
i.e. purchase of fixed assets, 9% were invested in Investments i.e. purchase of investments,
5% were utilized for capital work in progress and remaining 4% of funds were utilized for
working capital.
AHEL BALANCE SHEET FOR THE YEAR ENDING 2007-2008

I. Sources of funds 2008 2007
Share capital A 732,552,265 584,981,080
(a) Secured Loans C 2,921,952,423 1,297,505,979
TOTAL 16,026,417,485 9,545,721,673
II. Application of funds:
Fixed Assets:
A) Gross Block 7,591,784,175 6,011,264,062
Net Block 5,243,461,170 4,028,386,328
Capital Work In Progress 708,319,516 424,581,632
Investment 7,060,108,864 3,229,602,239
Current Assets, Loans and Advances:

A) Inventories 790,890,463 551,945,670
B) Sundry Debtors 1,261,586,026 978,920,391
C) Cash and Bank Balance 1,045,572,862 644,035,217
D) Loans and Advances 2,721,098,393 1,847,079,300
Less: current Liabilities and Provisions
A) Current Liabilities 1,402,934,365 1,254,576,474
B) Provisions 1,404,755,444 912,057,630
TOTAL 16,026,417,485 9,545,721,673

AHEL FROM 2006-07 & 2007-08

CURRENT ASSETS
-------
a) Inventories 551,945,5,670 790,890,463 238,944,793
-------
b) Sundry Debtors 978,920,391 1,261,586,026 282,665,635
-------
c) Cash & Bank balances 644,035,217 1,045,572,862 401,537,645
-------
d) Loan & Advances 1,847,079,300 2,721,098,393 874,019,093
Total Current Assets (A) 4,021,980,578 5,819,147,744
CURRENT LIABILITIES
& PROVISIONS
e) liabilities 1,254,576,474 1,402,934,365 ------- 148,357,891
f) Provisions 912,057,630 1,404,755,444 ------- 492,697,814
Total Current Liabilities (B) 2,166,634,104 2,807,689,809 ------- -------

1,855,346,474 3,011,457,935 ------- -------
Increase in Working Capital 1,156,111,461 ------- -------
3,011,457,935 3,011,457,935 1,872,190,810 1,872,190,810

TOTAL
Interpretation:


COMPARISION:

31st March 2008.

Issue of shares 147,571,185 Un- Secured loan paid 9,902,000

Secured loans 1,624,446,444 Purchase of Fixed assets 5,911,720,852
Differed Tax liability 19,061,407 Purchase of Investments 3,830,506,625
Funds from operation: 9,400,899,786 Increase in working capital 1,156,111,461
11,191,978,822 11,191,978,822
Interpretation:
2006-07 amounts Rs. 11,191,978,822. In the total funds 1.3% received from issue of
shares, 14.50% funds were received through secured loans, 0.2% was received through
differed tax liability and the remaining 84% of funds received from funds from operation.
i.e. purchase of fixed assets, 34% were invested in Investments i.e. purchase of
investments, 3% were utilized for capital work in progress and remaining 10% of funds
were utilized for working capital.
AHEL BALANCE SHEET FOR THE YEAR ENDING 2008-2009
I. Sources of funds 2009 2008

(1) Share holders fund:

Share capital A 679.5 732.6
Reserves and Surplus B 13,499.0 11,647.8
(2) Loans & Advance:
(a) Secured Loans C 4,365.5 2,922.0
(b) Unsecured Loans D 129.3 134.4
Deferred Tax Liability 626.6 589.7
TOTAL 19,299.8 16,026.4
II. Application of funds
Fixed assets:
A) Gross Block 9,406.7 7,591.8
B) Less: Depreciation 2,779.9 2,348.3
Net Block 6,626.8 5243.5
Capital Work In Progress 2,388.1 708.3
Investment 6,265.8 7,060.1
Current Assets:
A) Inventories 1,088.4 790.9
B) Sundry Debtors 1,607.4 1,261.6
C) Cash and Bank Balance 655.9 1,045.6
D) Loans and Advances 3,704.8 2,721.1
A) Current Liabilities 1,536.8 1,402.9
B) Provisions 1,501.0 1,404.8
Net Current Assets 4,018.7 3,011.5
Miscellaneous Expenditure 0.5 3.1
TOTAL 19,299.8 16,026.4

AHEL FROM 2006-07 & 2007-08
(In Millions)

CURRENT ASSETS
a) Inventories 1,088.4 297.5 -------

790.9
b) Sundry Debtors 1,607.4 345.8 -------
1,261.6
c) Cash & Bank balances 655.9 ……. 389.7
1,045.6
d) Loan & Advances 3,704.8 983.7 -------
2,721.1
Total Current Assets (A) 5819.2 7056.5
CURRENT LIABILITIES
& PROVISIONS
g) liabilities 1,402.9 1,536.8 ------- 133.9
h) Provisions 1,404.8 1,501.0 ------- 96.2
Total Current Liabilities (B) 2807.7 3037.8 ------- -------

3011.5 4018.7 ------- -------
Increase in Working Capital 1007.2 …….. ------- 1007.2
4018.7 4018.7 1627 1627

TOTAL
Interpretation:


 Cash and bank balances are decreased.
As per our report totally current assets is increased only Loans &
Advances are decreased.

COMPARISION:

31st March 2008.

(In Millions)
Issue of shares 15.5

Un- Secured loan paid 5.1
Secured loans 1443.5
Purchase of Fixed assets 6943.1
Differed Tax liability 36.9
Work In Progress 1679.8
Sale of Investments 794.3

1007.2
Funds from operation: 7345
9635.2 9635.2
Interpretation:
2008-09 amounts Rs. 9635.2 Millions. In the total funds 0.2% received from issue of
shares, 15% funds were received through secured loans, 0.4% was received through
differed tax liability, 8.2% was received from sale of Investments and the remaining
76.2% of funds received from funds from operation.
i.e. purchase of fixed assets, 17.5% were utilized for capital work in progress and
remaining 10.5% of funds were utilized for working capital.
AHEL Balance sheet total amounts from 2003-2009

Year Total Amount
2002-03 3,985,154,830
2003-04 4,565,128,349
2004-05 5,181,394,704
2005-06 7,922,720,745
2006-07 9,545,721,673
2007-08 16,026,417,485
2008-09 19,299,805,105
AHEL Total Balance sheet amounts in chart form:
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09

Interpretation:
The diagram clearly showing the Apollo Health city’s balance sheet amounts from
2002-2009.
The balance sheet amounts are showing increasing figures in every year especially
in 2007-08 & 2008-09 the balance sheet amounts are very large comparing to previous
years.
The statement showing the working capital from 2003-08
Year Increase Decrease

2003-04 482,827,009 ……..
2004-05 296,109,148 ……..
2005-06 476,752,719 ……..
2006-07 210,797,932 ……..
2007-08 1,156,111,461 ……..

Changes in working capital in chart form:
1.2E+09
1E+09
80000000
60000000
40000000
20000000
0 East
2003- 2004- 2005- 2006- 2007-
04 05 06 07 08
Interpretation:
The above diagram clearly shows that the net working capital of the AHEL
showing an increase with a decreasing trend. As the net working capital for the year 2003-
04 is 482,827,009 after 2003-04 the net working capital of the firm was decreasing at a
4400.02, 296,109,148, after it increased to 476,752,719. Again for next year 2006-07 the
net working capital decreased to 210,797,932. For 2007-09 the net working capital
increased very highly to 1,156,111,461.

The Statement of showing funds from Operations from 2003-2008
Year Funds from Operations Funds lost in Operations

2003-04 1,446,490,556 ………
2004-05 2,250,205,447 ………
2005-06 6,557,239,535 ………
2006-07 4,953,757,332 ………
2007-08 9,400,899,786 ………
Statement of Funds flow in the form of chart:
fundsfromoperations
2003-04
2004-05
2005-06
2006-07
2007-08
Interpretation:

The above diagram clearly shows that AHEL’s funds from operations from 2003-2008.
From above we can know that funds from operation are constantly increasing. In 2003
1,446,490,556/- were cam through funds from operations this amount is every year
increased in organization the funds from operations amount at 2007-08 were
9,400,899,786/-.

FINDINGS, SUGGESTIONS
& CONCLUSION

Here I am presenting all the filings of the sources for data collection based on
findings and broad suggestions to help the society and the firm in general.
FINDINGS
 In 2003-2004 the Organization majorly funds received from Operations. In this
year AHEL received nearly 69% funds in total funds from Operations and 25% of
funds through Differed Tax liability.
In 2003-2004 the Organization utilizes the funds in various ways in this
majorly funds utilized to purchase of fixed assets. In this year AHEL 67%
of funds are invested in fixed assets and 10% funds are used to re- pay of
Secured loans.
{Compare to other years in this year funds flow in organization are very
less}
 In 2004-2005 the Organization majorly funds received from Operations. In this
year AHEL received nearly 93% of funds from Operation.
In this financial year AHEL utilizes its funds mainly to increase fixed
assets. In this period the Organization 66% funds invested in purchase of
fixed assets and 14% funds were used to re-pay of un secured loans.
 In 2005-2006 the Organization again majorly funds received through Operation
activities only. In this year AHEL received 98% through funds from operations.
In 2005-2006 the Organization utilizes the funds through purchase of fixed
assets. In this period AHEL spent 58% of funds for purchase of fixed assets
and 25% of funds for purchase of investments.

 In 2006-2007 the Organization once again major funds were received from
Operations only. In this financial year AHEL received nearly 88% funds from
Operational activities.
In 2006-2007 the Organization utilizes the major funds to Purchase of fixed
assets. In this period AHEL spent nearly 82% funds to purchase of fixed
assets.
 In 2007-2008 the Organization majorly funds received from Operational activities.
In this financial year AHEL received 84% of funds through Operational activities
and 14.5% were received from Secured loans.
In 2007-2008 the Organization majorly utilizes its funds for the purchase of
fixed assets & Investments. In this period AHEL spent 53% of funds for
purchase of fixed assets and 34% funds are utilizes to purchase of
Investments.
 From 2003-208 the Organizations working capital positions are satisfactory.

SUGGESTIONS
 From 2003-2008 between this 5 years period the Organizations over all financial
position are good. But between this 5 years, Year – Year the amounts having some
un certainty i.e. in 2003-04 increase in working capital amount was 482,827,009
but in next year 2004-05 the increase decrease to 296,109,148. So management
need to take a steps avoid this type of uncertainty.
 AHEL mainly & majority of funds are receiving from Operation activities only.
 AHEL needs to increase the share capital from this it invite the funds from public.
CONCLUSION
It can be concluded that funds flow performance of the Organization is reasonably
satisfactory. In certain area the Organization has to focus more.
Apollo Hospital Enterprise Limited is a Service Oriented Organization. In this
Service motive also the Organization are getting good financial results.

BIBLIOGRAPHY
 James C.Vann Horne Financial Management, 9th edition Prentice – Hall of India
Private Limited, New Delhi, 1994.
 Khan M.Y. & Jain P.K. Financial Management, 2nd Edition Tata Mc. Graw-Hill
Publishing Co. Ltd., New Delhi.
 Pandey I.M., Financial Management, 7th Edition, Vikas Publishing House Pvt. Ltd.,
New Delhi, 1995.
 Kothari C.R. Research Methodology, 2nd Edition, Wishwa Prakasham, New Delhi,
1990.
 Maheswari S.N., Financial Management, 4th Edition, Sultan Chand & Sons, New
Delhi. 1997.
 Man Mohan & Goyal S.N., Principles of Management Accountings 6 th Edition,

Sathiya Bhavan, Agra, 1998.
 Prasanna Chandra, Financial Management, 3rd Edition, Tata Mc.Graw-Hill

Publishing Co., Ltd., New delhi, 1984.
Website: www.apollohospitals.com

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SALN College of Engg & Mngt Page 1

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

create to a specific segment of the market.

offering considerable advantage to both patients and society.

HOSPITAL SYSTEM AND FUNCTIONS:

government’s regulations, accreditation and community

SALN College of Engg & Mngt Page 2

INFLUENCES THAT WORK ON PATIENTS, DOCTORS AND

Other pressing Urgency for

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PROFESSIONAL Socio Economic

Peer Group Improving

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COMPONENTS OF INTERNAL HOSPITAL SYSTEM:

The three major components of internal hospitals system are:

procedure through their paramedical staff organization.

nursing, X- ray and laboratory.

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

their effects are discussed beside.

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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:

hospital is part of the physician’s practice.

3. Working as community health centre:

sticking to the reactive role of crisis care.

4. Growth and Prestige:

institution, its staff and community.

certain peculiarities of their organizations are

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

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

iii. The consultants often prefer to work independently.

of primary importance, other considerations being secondary.

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

does not usually include management education.

The Hospital produces intangible services rather than tangible goods

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

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Size Path Owner ship Objective

Taluk Homeopathy Voluntary

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

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

shared by government voluntary organizations which in addition to the charitable

activities also run hospitals.

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

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

devising sophisticated world class medical aid.

magnitude of the problem is very huge.

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.

government as well as private hospitals.

Mohan's Funds Flow

Mohan's Funds Flow