ACKNOWLEDGEMENTIt is a matter of great satisfaction and pleasure to present this reporton Working Capital Management of SPS APOLLO HOSPITAL LUDHIANA I take this opportunity to owe my thanks to allthose involved in my training.This project report could not have been completed without theguidance of our general manager T. SUNDRESAN, accounts officer RAVI SHARMAand project guide Prof.GIRDHARI. Their timely help & encouragement helped me to completethis project successfully.I thank Mrs. RICHA SHARMA(SR. OFFICER HRD) for givingme opportunity to work at APOLLO, as a FINANCE TRAINEE.I am thankful to Mr. GAMBHIR (SR. FINANCE MANAGER)and MR. R.R. TAVERGIRI (DGM, FINANCE) for their encouragement andable guidance at every stage of my training work.I express my gratitude towards staff of APOLLO, those who havehelped me directly or indirectly in completing the training.
OVERVIEW OF APOLLO HOSPITALThe formulation of the concept of SPS Apollo Hospital, Ludhiana was inspired and backed by Satguru Shri JagjitSinghji. The hospital was commissioned on 28th March 2005, with 65 beds in the initial phase. In association with theApollo Hospitals Group, SPS Apollo Hospital is now a state-of-the-art 350-bedded multi-speciality hospital.The hospital is the first of its kind in this region performing superspeciality procedures and has a wide range ofinvestigative, preventive and therapeutic facilities aiming to provide comprehensive healthcare services under oneroof. It has the most qualified and talented medical professionals, nurses, technicians and other management stafffrom across the world to deliver the highest standards of patient care. It has been awarded the gold-standardcertification from the Joint Commission International (JCI) USA.This hospital caters to the specific needs of the people in North India. It has world-class standards of service,expertise, equipment and a well-organised healthcare system in a clean environment to provide efficient patient care.Apollo Hospitals Enterprise Ltd. is providing management and operational support to the hospital in order for it toposition itself as a tertiary care healthcare provider.Clinical Specialities Interventional Cardiology & Cardiothoracic Vascular Surgery Minimally Invasive Surgery & other Surgical Specialities Neurology & Neurosurgery Orthopaedics & Joint Replacement Trauma Care & Emergency Services Anaesthesia & Intensive Care Clinical Specialities including Internal Medicine, Pulmonary Medicine, Endocrinology, Gastroenterology & Dermatology Nephrology & Urology Otolaryngology & Head and Neck Surgery Ophthalmology & Laser Surgery Plastic, Cosmetic & Reconstructive Surgery Laboratories & Blood Bank Radiology & Imaging Sciences Mother & Child Healthcare Physiotherapy & Nutrition Preventive Health Checkups24 hour Pharmacy
INTRODUCTION:Management is an art of anticipating and preparing for risks,uncertainties and overcoming obstacles. An essential precondition forsound and consistent assets management is establishing the sound andconsistent assets management policies covering fixed as well as currentassets. In modern financial management, efficient allocation of funds has agreat scope, in finance and profit planning, for the most effective utilizationof enterprise resources, the fixed and current assets have to be combinedin optimum proportions.Working capital in simple terms means the amount of funds that acompany requires for financing its day-to-day operations. Finance
WHAT IS WORKING CAPITAL?Working capital refers to the investment by the company in shortterms assets such as cash, marketable securities. Net current assets or networking capital refers to the current assets less current liabilities.Symbolically, it means,Net Current Assets = Current Assets Current Liabilities.DEFINITIONS OF WORKING CAPITAL:The following are the most important definitions of Working capital:1) Working capital is the difference between the inflow and outflow offunds. In other words it is the net cash inflow.2) Working capital represents the total of all current assets. In otherwords it is the Gross working capital , it is also known asCirculating capital or Current capital for current assets are rotatingin their nature.3) Working capital is defined as The excess of current assets overcurrent liabilities and provisions . In other words it is the Net CurrentAssets or Net Working Capital
IMPORTANCE OF WORKING CAPITALWorking capital may be regarded as the lifeblood of the business. Withoutinsufficient working capital, any business organization cannot run smoothlyor successfully.In the business the Working capital is comparable to the blood of thehuman body. Therefore the study of working capital is of major importanceto the internal and external analysis because of its close relationship withthe current day to day operations of a business. The inadequacy ormismanagement of working capital is the leading cause of businessfailures.To meet the current requirements of a business enterprise such as thepurchases of services, raw materials etc. working capital is essential. It isalso pointed out that working capital is nothing but one segment of thecapital structure of a business.In short, the cash and credit in the business, is comparable to the blood inthe human body like finance s life and strength i.e. profit of solvency to thebusiness enterprise. Financial management is called upon to maintainalways the right cash balance so that flow of fund is maintained at adesirable speed not allowing slow down. Thus enterprise can have abalance between liquidity and profitability.Therefore the management ofworking capital is essential in each and every activity.
WORKING CAPITAL MANAGEMENTINTRODUCTION:Working Capital is the key difference between the long term financialmanagement and short term financial management in terms of the timing ofcash.Long term finance involves the cash flow over the extended period of timei.e 5 to 15 years, while short term financial decisions involve cash flowwithin a year or within operating cycle.Working capital management is a short term financial management. Working capitalmanagement is concerned with the problems that arise in attempting to manage thecurrent assets, the current liabilities & theinter relationship that exists between them.The current assets refer to those assets which can be easily converted into cash inordinary course of business, without disrupting the operations of the firm.Composition of working capitalMajor Current Assets :1) Cash2) Accounts Receivables3) Inventory4) Marketable SecuritiesMajor Current Liabilities1) Bank Overdraft2) Outstanding Expenses3) Accounts Payable4) Bills PayableThe Goal of Capital Management is to manage the firm s current assets &liabilities, so that the satisfactory level of working capital is maintained.If the firm can not maintain the satisfactory level of working capital, it islikely to become insolvent & may be forced into bankruptcy. To maintain themargin of safety current asset should be large enough to cover its currentassets.Main theme of the theory of working capital management is interactionbetween the current assets & current liabilities.