Sanjay

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“Study of Working Capital Management of Columbia Asia
Hospital”
Submitted in partial fulfilment of the requirements for the
Diploma of
Post Graduate Diploma in Management
At
Institute of Management & Science, Ghaziabad
Submitted By
Sanjay Kumar Gantait
Enroll No. : I.T.S Ghaziabad- 2013113
Batch: 2013-2015
Project Manager:Mr. Gourab Nayar
Project Mentor (Faculty): Prof. Nitin Saxsena
Project Mentor (Industry):Mr. Prosenjit Mondal

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CERTIFICATE OF ORIGINALITY
I hereby declare that this Summer Internship Project is my own
work and that, to the best of my knowledge and belief, it reproduces
no material previously published or written that has been accepted for
the award of any other degree of diploma, except where due
acknowledgement has been made in the text.
Student Name: Sanjay Kumar Gantait
Roll No : 2013113
Batch: P.G.D.M (2013-2015)
Date:29/08/2014

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Date: ………….
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Mr. /Ms……………………. of I.T.S- Institute
of Management, Mohan Nagar PGDM Batch 2013-15 has
successfully completed his/ her summer internship under the guidance
of Mr./ Ms………………………(Industry Mentor’s Name) for a
duration of …………………..weeks, from…….to…………, 2014.
During his/her tenure with us, we found him/her
………………………..
We wish him/ her all the very best for future endeavours.
Signature
Name
Designation
Organization seal

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CERTIFICATE
This is to certify that Mr. / Ms. Sanjay Kumar Gantait PGDM (2013-
15 Batch) a student of I.T.S- Institute of Management, Mohan Nagar
has undertaken the project on “Project Title”. The Working Capital Of
Columbia Asia Hospital, data collection, & analysis work for
preparing the project has been carried out by the student in partial
fulfilment of the requirements for the award of PGDM, under my
guidance and supervision.
I am satisfied with the work of Mr. /Ms. Sanjay Kumar Gantait
Date:
Faculty Mentor’s Name: …………
(Signature)

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Abstract
Hospital is an essential part of any country’s .The India Hospital working capital
management is based on the study of working capital management of Columbia Asia
Hospital Pvt. Ltd. An insight view of the project will encompass – what it is all about, what it
aims to achieve, what is its purpose and scope, the various methods used for collecting data
and their sources, including, further specifying the limitations of our study and in the last,
drawing inferences from the learning so far. The working capital management refers to the
management of working capital, or precisely to the management of current assets. A firm’s
working capital consists of its investments in current assets, which includes short-term
assets—cash and bank balance, inventories, receivable and marketable securities.
This project tries to evaluate how the management of working capital is done in
Hospital through inventory ratios, working capital ratios, trends, computation of cash,
inventory and working capital, and short term financing.

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Executive Summary
Columbia Asia Hospital is a very well famous Hospital outlet in Kolkata. It has more than 10
branches all overthestatewithwidevariety. Themajorpurposeofthestudyistoanalyzetheworkingcapital
managementofColumbiaAsiaHospital,theannualreportoftwoyears.Thefinancialstatementexplainsthe
the ratio analyzes along with the comparative balance statements. Working capital is one of the most
difficultfinancialconceptstounderstandforthesmall-businessowner.Infact,thetermmeansalotofdifferent
things to a lot of different people. Bydefinition, workingcapital is the amount bywhich current assets exceed
current liabilities. It involves the relationship between Hospital short term assets and its short term
liabilities. Funds needed for short term needs for the purpose like payment of wagesand other dayto day
expensesareknownasworkingcapital.Thegoalofworkingcapitalmanagementistoensurethatthefirmis
abletocontinueitsoperationandthatithassufficientcashflowtosatisfybothmaturingshorttermdebtand
upcoming operational expenses. Working capital is primarily concerned with inventories management,
receivable management, cash management and payable management.
The study involved few personal interviews with the financial heads of the company and through
observation methods. Company annual reports were being evaluated and working capital management
wasbeinganalyzedfromit.Forthepurposeofthestudyconveniencesamplingtechniquehasbeenused.
The studyhas shown that the working capital of the companyhas improved as the current asset is more
thanthatofthecurrentliabilities.

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Acknowledgement
The training program was designed in such a way that it provided a full learning
opportunity throughout the training program. I would like to express my gratitude towards
all the people who guided me throughout the program and their direct or indirect help was
priceless for me, without their guidance and support this project would not have been
completed successfully.
I express my sincere gratitude to Mr. Arindam Banerjee, General Manager(GM),
Columbia Asia Hospital, Kolkata(Salt Lake), for his belief in me and giving a chance to
learning every Financial purpose for the company.
It has been an honour to do my summer training under Mr. Prosenjit Mondal,
Finance Manager (FM), Columbia Asia Hospital Kolkata(Salt Lake), a composed and
talented person who not only guided but also supported and rectified me where I was going
wrong. Therefore, I would specially thank Mr. Subhadeep Bose & Kishore Shaha for his
continuous guidance and assistance throughout the training.
There was a great learning from my team at Columbia Asia Hospital(Kolkata) , who
not only behave in a co-operative manner but also provide constant help in the completion of
the project, thus, I thank to my each team member in the training program.
Last but surely not the least, I am very much thankful to my faculty guide, Prof. Nitin
Saxena, core faculty at I.T.S, Mohan Nagar Ghaziabad, for his continuous guidance and
support from the proceeding of the project to its completion. I cannot think of the
accomplishment of the project without her assistance and guidance.

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TABLE OF CONTENTS
Page No.
CHAPTER – I --------------------------------------------------------------------------- 10
Introduction ------------------------------------------------------------------------------ 11
Meaning of Working Capital Management ------------------------------------------ 11
Objective --------------------------------------------------------------------------------- 15
Significance of the Project ------------------------------------------------------------- 16
Conceptualization ----------------------------------------------------------------------- 17
Company Profile ------------------------------------------------------------------------ 18
Business Overview ---------------------------------------------------------------------- 22
Subsidiary & Associate Company ---------------------------------------------------- 26
Organization Structure of Finance Department ------------------------------------- 27
Current Scenario ------------------------------------------------------------------------- 28
Competitors ------------------------------------------------------------------------------- 29
Services ----------------------------------------------------------------------------------- 29
CHAPTER – II --------------------------------------------------------------------------- 31
Literature Review ------------------------------------------------------------------------ 32
Research Methodology ------------------------------------------------------------------ 34
Relevance of the project ----------------------------------------------------------------- 36

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CHAPTER – III --------------------------------------------------------------------------- 37
Working Capital Management -------------------------------------------------------- 38
Scope of Working Capital Management --------------------------------------------- 39
Working Capital Cycle ----------------------------------------------------------------- 43
Working Capital Related thing --------------------------------------------------------- 46
CHAPTER – IV -------------------------------------------------------------------------- 49
Findings of the Project & Company Analysis ---------------------------------------- 50
Conclusion of Ratio Analysis ----------------------------------------------------------- 70
Working Capital -------------------------------------------------------------------------- 71
Objective of Working Capital ---------------------------------------------------------- 74
Statement showing Changes in Working Capital ------------------------------------ 77
Analysis of Changes in Working Capital --------------------------------------------- 78
CHAPTER – V --------------------------------------------------------------------------- 79
Recommendation ------------------------------------------------------------------------ 80
CHAPTER – VI ------------------------------------------------------------------------- 81
Conclusion -------------------------------------------------------------------------------- 82
CHAPTER – VII ------------------------------------------------------------------------- 83
Bibliography ------------------------------------------------------------------------------ 84
Annexure ---------------------------------------------------------------------------------- 85

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INTRODUCTION
MEANING OF WORKING CAPITAL:
Working capital (abbreviated WC) is a financial metric
which represents operating liquidity available to a business, organization or other entity,
including governmental entity. Along with fixed assets such as plant and equipment,
working capital is considered a part of operating capital. Net working capital is calculated as
current assets minus current liabilities. It is a derivation of working capital that is commonly
used in valuation techniques such as DCFs (Discounted cash flows). If current assets are less
than current liabilities, an entity has a working capital deficiency, also called a working
capital deficit. A company can be endowed with assets and profitability but short of liquidity
if its assets cannot readily be converted into cash. Positive working capital is required to
ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy
both maturing short-term debt and upcoming operational expenses. The management of
working capital involves managing inventories, accounts receivable and payable, and cash.
Current assets and current liabilities include three accounts which are of special
importance. These accounts represent the areas of the business where managers have the
most direct impact:
• Accounts receivable (current asset)
• inventory (current assets), and
• accounts payable (current liability)

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The current portion of debt (payable within 12 months) is critical, because it
represents a short-term claim to current assets and is often secured by long term assets.
Common types of short-term debt are bank loans and lines of credit. An increase in working
capital indicates that the business has either increased current assets (that it has increased its
receivables, or other current assets) or has decreased current liabilities, for example has paid
off some short- term creditors.
Implications on M&A:
The common commercial definition of working capital for the
purpose of a working capital adjustment in an M&A transaction (i.e. for a working capital
adjustment mechanism in a sale and purchase agreement) is equal to:
Current Assets – Current Liabilities excluding deferred tax assets/liabilities, excess
cash, surplus assets and/or deposit balances. Cash balance items often attract a one-for-one
purchase price adjustment.
Working capital management:
Decisions relating to working capital and short term
financing are referred to as working capital management. These involve managing the
relationship between a firm's short-term assets and its short-term liabilities. The goal of
working capital management is to ensure that the firm is able to continue its operations and
that it has sufficient cash flow to satisfy both maturing short-term debt and upcoming
operational expenses.
A popular measure of working capital management is the cash conversion cycle, that
is, the time span between the expenditure for the purchases of raw materials and the
collection of sales of finished goods for example, found that the longer the time lag, the larger
the investment in working capital. A long cash conversion cycle might increase profitability

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because it leads to higher sales. However, corporate profitability might decrease with
the cash conversion cycle, if the costs of higher investment in working capital rise faster than
the benefits of holding more inventories and/or granting more trade credit to customers.
For many manufacturing firms the current assets account for over half of their total
assets. The management of working capital may have both negative and positive impact of
the firm‟s profitability, which in turn, has negative and positive impact on the shareholders‟
wealth. The present study seeks to explore in detail these effects. Firms may have an optimal
level of working capital that maximizes their value. Large inventory and generous trade credit
policy may lead to high sales. The larger inventory also reduces the risk of a stock-out. Trade
credit may stimulate sales because it allows a firm to access product quality before paying .
Another component of working capital is accounts payables. It is believed that delaying
payment of accounts payable to suppliers allows firms to access the quality of bough products
and can be expensive if a firm is offered a discount for the early payment. By the same token,
uncollected accounts receivables can lead to cash inflow problems for the firm.
By definition, working capital management entails short term decisions - generally,
relating to the next one year period - which is "reversible". These decisions are therefore not
taken on the same basis as Capital Investment Decisions (NPV or related, as above) rather
they will be based on cash flows and / or profitability.
• One measure of cash flow is provided by the cash conversion cycle - the net number of
days from the outlay of cash for raw material to receiving payment from the customer. As a
management tool, this metric makes explicit the inter-relatedness of decisions relating to
inventories, accounts receivable and payable, and cash. Because this number effectively
corresponds to the time that the firm's cash is tied up in operations and unavailable for other
activities, management generally aims at a low net count.
• In this context, the most useful measure of profitability is Return on capital (ROC). The
result is shown as a percentage, determined by dividing relevant income for the 12 months by
capital employed; Return on equity (ROE) shows this result for the firm's shareholders. Firm
value is enhanced when, and if, the return on capital, which results from working capital
management, exceeds the cost of capital, which results from capital investment decisions as
above. ROC measures are therefore useful as a management tool.
• Credit policy of the firm: Another factor affecting working capital management is credit
policy of the firm. It includes buying of raw material and selling of finished goods either in
cash or on credit. This affects the cash conversion cycle.

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Management of working capital:
Guided by the above criteria, management will use a
combination of policies and techniques for the management of working capital. The policies
aim at managing the current assets (generally cash and cash equivalents, inventories and
debtors) and the short term financing, such that cash flows and returns are acceptable.
• Cash management:
Identify the cash balance which allows for the business to meet
day to day expenses, but reduces cash holding costs.
• Inventory management:
Identify the level of inventory which allows for uninterrupted
production but reduces the investment in raw materials - and minimizes reordering costs - and
hence increases cash flow. Besides this, the lead times in production should be lowered to
reduce Work in Process (WIP) and similarly, the Finished Goods should be kept on as low
level as possible to avoid over production - see Supply chain management; Just In Time
(JIT); Economic order quantity (EOQ); Economic quantity.
• Debtors management:
Identify the appropriate credit policy, i.e. credit terms which
will attract customers, such that any impact on cash flows and the cash conversion cycle will
be offset by increased revenue and hence Return on Capital (or vice versa); see Discounts and
allowances.
• Short term financing:
Identify the appropriate source of financing, given the cash
conversion cycle: the inventory is ideally financed by credit granted by the supplier; however,
it may be necessary to utilize a bank loan (or overdraft), or to "convert debtors to cash"
through "factoring".

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1.1 OBJECTIVE:
To study and analyse working capital management at Reliance
Infrastructure Ltd. which includes:
 Inventory management
 Receivable management
 Cash management
The aim is to learn how to manage working capital needs of the organization and to
learn the different ways through which theoretical learning is applied practically in the
organization. The project is aimed to learn and gain knowledge of the day to day working of
the organization as to how does the different decision are taken and on what basis. The
project will help in gaining the knowledge of different steps of raising the short term funds
and their effective management so as to ensure adequate availability of funds. The various
analyses will help the management to assess the efficiency of the working capital
management of the company.

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1.2 SIGNIFICANCE OF THE PROJECT:
Financial Analysis is the process
of identifying the financial strengths and weaknesses of the firm by properly
establishing relationships between the items of the balance sheet and the profit & loss
account. Financial analysis can be undertaken by management of the firm, viz.
Owners, creditors, investors and others. Ratio analysis is a powerful tool of financial
analysis. A ratio is defined as “the indicated quotient of two mathematical
expressions” and as “the relationship between two or more things”.
Ratios help to summarise large quantities of financial data and to make
qualitative judgement about the firm‟s financial performance. WORKING CAPITAL
MANAGEMENT deals with the management of current assets. The management of
current assets is similar to that of fixed assets in the sense that in both cases firm
analyses their effect on their return and risk profile. The management of fixed assets
and current assets, however, differ in three aspects. First, in managing fixed assets,
time is a very important factor; consequently, discounting and compounding
techniques play a significant role in capital budgeting. Second, the large holding of
current assets, especially cash, strengthens the firm's liquidity position (and reduces
risk). Third, levels of fixed as well as current assets depend upon expected sales, but it
is only current assets that can be adjusted with sales fluctuations in the short run.
Thus with such importance attached, a due diligence should be given to proper
management of the working capital.

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1.3 CONCEPTUALIZATION:
There are two concepts of working capital- gross and
net.
Gross Working Capital refers to the firm's investment in current assets. Current assets
are the assets which can be converted into cash within an accounting year and include cash,
short-term securities, debtors, (accounts receivable or book debts) bills receivables and stock
(inventory).
Net Working Capital refers to the difference between current assets and current
liabilities. Current liabilities are those claims of outsiders which are expected to mature for
payment within an accounting year and include creditors (accounts payable), bills payable,
and outstanding expenses. Net working capital can be positive or negative. A positive net
working capital will arise when current assets exceed current liabilities.
Net Working capital (+) =Current Assets- Current Liabilities
Also, negative net working capital will arise when current liabilities exceed current
assets.
Net Working Capital (-) =Curretnt Liabilities – Current Assets

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1.4 COMPANY PROFILE:
Columbia Asia Hospital is like a one man army in the health industry. With a chain of
hospitals serving countries like Malaysia, India, Indonesia and Vietnam, the group has made
a name and place for itself. The company as a brand came up in the year 1994. It has its
headquarters in Kuala Lumpur in Malaysia. The hospitals across the four nations are built
with an aim to heal more and more number of people with efficient means and advanced
medical techniques. Comparatively smaller in size, the hospitals are just the organization
meant for public service. Spending lesser on the size and more on the medical equipments,
Columbia Asia focuses more on building a proper healthcare set up. Service oriented
hospitals are run under the company; Columbia Asia. The hospital sees a maximum of 8,000
patients every month. The overall monthly revenues earned by the hospital are over one
million dollars.
Skilled doctors and well trained medical professionals are hired every year to improve
the medical services provided by the hospitals in four nations. With over 2600 employees and
further plans for expansion, Columbia Asia is growing in size and popularity. The doctors
and staffs are recruited from the local area. The company owns about 14 hospitals, which are
under construction. 12 other properties are owned by the company. On completion of these
projects, the company will have 11 hospitals in the Malaysian nation, 3 in Vietnam, 21
hospitals in India and about 3 in Indonesia.

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COLUMBIA ASIA IN INDIA:
Columbia Asia Hospital is a leading name in the healthcare
industry in India. Functioning with a chain of hospital the company has come up in a big way
to serve the people of India. There are hospitals in states of Karnataka, Delhi, West Bengal
and Punjab. Columbia Asia is further on an expansion mode and is setting up hospitals in
various other locations in India.
 Columbia Asia Hospital-Palam Vihar, Gurgaon
 Columbia Asia Hospial-Ghaziabad
 Columbia Asia Hospital – Patiala
 Columbia Asia Hospital – Mysore
 Columbia Asia Referral Center – Yeshwanthpur
 Columbia Asia Hospital - Salt Lake, Kolkata
 Columbia Asia Hospital – Hebbal
 Bangalore Airport Clinic

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COLUMBIA ASIA MALYASIA:
Columbia Asia Malaysia Hospitals have been set up to serve
as strong healthcare organizations treating different kinds of health problems with an efficient
staff and medical practitioners. Following are the hospitals serving the purpose with utmost
dedication and care.
 Columbia Asia Hospital-Puchong
 Columbia Asia Hospital- Seremban
 Columbia Asia Hospital-Taiping
 Columbia Asia Extended Care Hospital- Shah Alam
 Columbia Asia Hospital-Bintulu
 Columbia Asia Hospital-Miri
COLUMBIA ASIA VIETNAM:
This nation too is benefited by the Columbia Asia Hospital Group
with its hospitals. These healthcare organizations are set up in residential areas so that locals
can access them easily. Proper care and treatment is given to the patients visiting the
Columbia Asia Hospital in Vietnam.
 Columbia Asia-Gia Dinh International Hospital
 Columbia Asia International Clinic-Saigon
COLUMBIA ASIA INDONESIA:
Indonesia is another country having the Columbia Asia
Hospital. The hospital provides splendid healthcare service at affordable rates to the people.

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COLUMBIAASIA SALT LAKE:
Columbia Asia India is a private chain of hospital located
in major cities of the country. Columbia Asia Hospital Salt Lake, situated in Kolkata, is a
specialty clinic of 100 bed that deals with a number of cases such as laparoscopic surgery,
child birth and women health. There is an exclusive day care center and emergency
ambulance services. This hospital in Kolkata specializes in renal transplant surgeries, neuro
surgery, and surgical oncology. There are different departments and units to deal with
concerned problems that include heart, skin, neurology and psychology.
VISSON OF COLUMBIA ASIA HOSPITAL:
"To build the best managed healthcare company in Asia".
MISSON OF COLUMBIA ASIA HOSPITAL:
"Columbia Asia is pledged to deliver effective and
affordable medical services in a clean and caring environment".

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1.5 BUSINESS OVERVIEW:
Columbia Asia is an international healthcare group operating a
chain of modern hospitals across Asia. Columbia Asia Hospitals Pvt. Ltd.is one of the first
healthcare companies to enter India through 100% foreign direct investment (FDI) route. The
Columbia Asia Group is owned by more than 150 private equity companies, fund
management organizations and individual investors.
Columbia Asia hospitals are clean, efficient, affordable and accessible. The
innovative design of the hospitals, from their manageable size to their advanced technology,
is focused on creating positive experience for patients.
The first hospital in India commenced operations in 2005 in Hebbal - Bangalore.
Currently Columbia Asia operates seven multispecialty hospitals, one referral hospital and a
clinic. The group has presence in Bangalore, Mysore, Kolkata, Gurgaon, Ghaziabad, Patiala
and Pune
Patient-Centred Care:
We pride ourselves on our service standards, the people
working with us and the clinical expertise extended to patients. Our mission is to provide
effective and affordable care in a clean and caring environment.
We have a hospitality-based approach wherein our patients are treated as guests. Our
processes are technology-driven, making it convenient for patients to use our services. All
our medical programmes are underpinned by an uncompromising belief and practice of
ethics, excellence and strict clinical governance. programmes are underpinned by an
uncompromising belief and practice of ethics, excellence and strict clinical governance.

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Infrastructure and Services:
Columbia Asia today serves more than one million
patients every year. Our hospitals offer comprehensive clinical programmes that are
supported by a list of ancillary services (ICU, NICU, physiotherapy, referral lab,
teleradiology /telemedicine, pharmacy and imaging facilities).
A comprehensive electronic medical records system forms the core of the hospital
information system (HIS) that supports clinical decision making. While four of our hospitals
are already accredited by NABH, the rest are under process. We cater to healthcare needs of
international patients from developed and developing countries.
Quality Assurance:
Since its inception in July 2005, Columbia Asia Hospitals has been committed to
providing the highest levels of quality healthcare in a clean and caring environment and to
ensure this robust system of policies supported by suitable procedures are implemented.

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The Quality structure:
 Documentation consists of policies and procedures which are implemented by regularly
training the personnel. Periodic audits to ensure the correct implementation of these policies
and procedures.
 Compliance with regulatory and quality standards such as statutory requirements, hospital
policies and procedures, National Accreditation Board for Hospitals & Healthcare Providers
(NABH) & National Accreditation Board for Testing and Calibration Laboratories (NABL).
 Monitoring of quality indicators, incident reports, patient feedback and various mock
drills for disaster/emergency situations.
 Improvement of infrastructure, processes, and human resources.

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The Medical Quality Program is the corner stone of the
Quality edifice and is built on three principles with a view to
achieve Medical Excellence:
 Practice of evidence based Medicine.
 Medical Audit and Patient Feedback.
 Continuous Professional Development
The advent of NABH accreditation in 2006 was perceived as an ideal opportunity to
further streamline and strengthen the documentation and operating procedures; thus began the
journey of association with NABH. All Columbia Asia hospitals have now been mandated to
undergo this accreditation.
Columbia Asia Hospital - Hebbal, Bangalore obtained NABH accreditation in
December 2007 within one and a half years of beginning operation and was the 10th
hospital
in India to be granted this distinction. The hospital has been re-accredited by NABH in
December 2010.
Recently Columbia Asia Referral Hospital Yeshwanthpur, Bangalore, Columbia Asia
Hospital Palam Vihar, Gurgaon and Columbia Asia Hospital - Mysore have also been NABH
accredited and Columbia Asia Hospital - Patiala is in the advanced stages of getting
accredited.
The laboratory at Columbia Asia Referral Hospital Yeshwanthpur, Bangalore is
NABL accredited since September 2010; the labs at Columbia Asia Hospital - Palam Vihar,
Gurgaon and Columbia Asia Hospital - Hebbal, Bangalore have also been similarly
accredited.

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1.6 SUBSIDIARY & ASSOCIATE COMPANIES:
Incorporated in 2003 Columbia Asia
Hospitals Private Limited (CAH) is a 99.50% subsidiary of International Columbia,
Mauritius (ICM) which is 100% owned by International Columbia US, LLC a limited
liability corporation incorporated in Seattle, Washington with over 200 investorowners. The
objective of CAH is to establish, construct, maintain, develop, acquire and operate hospitals,
dispensaries, clinics, pathological laboratories, and other associated facilities in India.
Currently, CAH owns and operates eight hospitals across various locations Hebbal
(Bangalore), Yeshwanthpur (Bangalore), Doddaballapur (Bangalore), Pune, Gurgaon,
Mysore, Patiala and Ghaziabad with a total capacity of 724 beds with Pune hospital being
operational only since February 2013. All these units, except the Yeshwanthpur unit which is
a referral hospital, provide multi disciplinary health care services. Besides, CAH also has a
subsidiary company with 74% shareholding Navaketan Nursing Home Pvt Ltd offering multi
speciality health care services in Kolkata.

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1.8 ORGANIZATIONAL STRUCTURE OF THE
FINANCE DEPARTMENT :
CFO at CAH Management Office, Kolkata
GM at CAH Kolkata
Finance Manager at CAH Kolkata
Accounts receivables
Treasury
Treasury
Treasury
Corporate Accounts
Purchase and Stores
Corporate Clients
Cash Management
Front Office Staff
Cashiers
Treasury
Treasury
Treasury
 CFO-Chief Financial Officer
 CAH-Columbia Asia Hospital

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1.9 CURRENT SCENARIO:
Hospitals treat patients. They wheel the sick in, patch them up and
send them on their way. It’s a simple business. Of course, the intricacies are complex but the
business philosophy is straightforward: The more patients you treat, the more money you
make. You can take the Fortis and Apollo Hospitals route: Build large (over 300 beds) super
speciality care hospitals in metros in prime non-residential areas. Or you can be like
Columbia Asia and build hospitals with a 100-bed capacity providing secondary care in non-
prime, non-residential areas in tier II and III cities.
The average Columbia Asia hospital costs Rs. 80 crore and 12 months to build from
scratch. Typically it takes 14-16 months to break even. Matthew Powell, the Malaysia-based
managing director, says almost all Columbia Asia hospitals in India break even in the first
year and generate profits from the second year on. Columbia Asia has seven hospitals in India
currently, in cities like Bangalore, Kolkata, Delhi area, Patiala and Mysore. It also has
hospitals in Malaysia (eight), Vietnam (two) and Indonesia (one).
All medical records and lab reports are maintained digitally; doctors across all
Columbia Asia hospitals can access them on their computers. Its charges are 15-20 percent
cheaper than comparable hospitals in the area. For example, an ultrasound here costs Rs. 800
while one at Apollo costs Rs. 1,200.

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1.10 COMPETITORS OF COLUMBIA ASIA HOSPITAL:
Major Competitors of Columbia Asia
hospital are:
 Fortis Health Care
 Apollo Hospital
 Max Health Care
 AIIMS
 Lilavati Hospital Mumbai
 TATA Memorial Hospital Mumbai
 Sankara Nethralaya Chennai
 Bombay Hospital Mumbai
 Christian Medical College Vellore
1.11 SERVICES OF COLUMBIA ASIA HOSPITAL:
 Customized Preventive Health Checks
 Outpatient Facilities
 Consultation across 57 Specialties
 Inpatient Facility
 Choice of rooms

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I applied my learning at ITS
During the project my learning in classroom (case studies,
freewheeling discussions) proved to be very useful. At times I referred to my
Finance book for my Analyzing topic. Basically all the Financing analyzing
tools for the applied in the field came from my Finance knowledge. This
comparison pushed me to revisit the plans thought out by me. This was of
immense help in improving the quality of my inputs.

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2.1 LITERATURE REVIEW:
While the performance levels of small businesses have traditionally been attributed
to general managerial factors such as manufacturing, marketing and operations, working
capital management may have a consequent impact on small business survival and
growth(Kargar and Blumenthal, 1994).
Working capital starvation is generally credited as a major cause if not the major
cause of small business failure in many developed and developing countries (Rafuse,
1996).The success of a firm depends ultimately, on its ability to generate cash receipts in
excess of disbursements. The cash flow problems of many small businesses are exacerbated
by poor financial management and in particular the lack of planning cash requirements
(Jarvis et al,1996).
Peel and Wilson (1996)have stressed the efficient management of working capital,
and more recently good credit management practice as being pivotal to the health and
performance of the small firm sector. Along the same line, Berry et al (2002)finds that SMEs
have not developed their financial management practices to any great extent and they
conclude that owner-managers should be made aware of the importance and benefits that can
accrue from improved financial management practices. The study conducted by De Chazal
Du Mee (1998)revealed that 60% enterprises suffer from cash flow problems. Narasimhan
and Murty (2001)stress on the need for many industries to improve their return on capital
mployed (ROCE) by focusing on some critical areas such as cost containment, reducing
investment in working capital and improving working capital efficiency.
Smith and Begemann 1997emphasized that those who promoted working capital
theory shared that profitability and liquidity comprised the salient goals of working capital
management. The problem arose because the maximization of the firm's returns could
seriously threaten its liquidity, and the pursuit of liquidity had a tendency to dilute returns.
Smith and Begermann (1997),in their study of industrial companies listed in the
Johannesburg Stock Exchange, indicated that current liabilities divided by funds flow (a
working capital leverage ratio) displayed the greatest association with return on investment.
On the other hand, other indicators like current and quick rations displayed no association.

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Shin and Soenen, (1998)highlighted that efficient Working Capital Management
(WCM) was very important for creating value for the shareholders. The way working capital
was managed had a significant impact on both profitability and liquidity.
Deloof, (2003)discussed that most firms had a large amount of cashinvested in
working capital. It can therefore be expected that the way in which working capital is
managed will have a significant impact on profitability of those firms. Using correlation and r
egression tests he found a significant negative relationship between gross operating income
and the number of days accounts receivable, inventories and accounts payable of Belgian
firms.
Ghosh and Maji, (2003)in this paper made an attempt to examine the efficiency of
working capital management of the Indian cement companies during 1992 –1993 to 2001 –
2002. For measuring the efficiency of working capital management, performance, utilization,
and overall efficiency indices were calculated instead of using some common working capital
management ratios.
Eljelly, (2004)elucidated that efficient liquidity management involves planning and
controlling current assets and current liabilities in such a manner that eliminates the risk of
inability to meet due short-term obligations and avoids excessive investment in these assets.
Sayaduzzaman MD. (2006),examined that the management of British American
Tobacco is highly reasonable due to the constructive cash inflows, designed approach in
running the major components of working capital by evaluating five years data from 1999-
2000 to 2002-2003.
Lazaridisand Tryfonidis (2006)accounts payable has positive relationship. No conflict
between the authors regarding leverage and/or debt financing with negative relationship.
Finally, the variable cash conversion efficiency was used by only one author (Ganesan, 2007)
and presents no association at all with profitability.
Raheman and Nasr (2007)selected a sample of 94 listed Pakistani companies from
different sectors of economy for a period of 8 years, from 1999-2004. The independent
variables used were current ratio, day’s receivable, day’s inventory, days payable and cash
conversion cycle.

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2.2 RESEARCH METHODOLOGY:
The previous chapter discussed the objectives of this study and in
this chapter I will discuss about the research methodology which is followed to carry out this
project i.e. the universe, locale of our study, Data Collection, data analysis.
As in organizations like Columbia Asia Hospital, working capital constitute a major
portion of its resources, a thorough study of its working capital management has been done
broadly covering: Receivables Management, Cash Management, and Inventory Management.
Data collection:
 The secondary data used is collected from the articles on WCM published in
magazines and from the various papers by Columbia Asia Hospital.
 The secondary data is collected from the employees working in Columbia Asia
Hospital’s finance department. An Interview was conducted with number of
people working in Finance Department particularly in Accounts and tax
department.
 Visits were also done to accounts department of another office to get details on
required documents.
Analysis of Data:
The study is qualitative in nature and not much primary data is there. So no analytical
tools have been used in the preparation. The report has been prepared after doing a qualitative
analysis of the data collected. Some bar charts, graphs and pie charts are used to make the
data more understandable to the reader.

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Field Experience:
The research Columbia Asia was a positive and enriching experience as it
provided useful insights about the current practices in working capital management and the
process through which it is handled in the real world. Besides this, there was immense
learning about other facets of the organization and corporate world as a whole.
Limitations:
The Columbia Asia Hospital study and analysis is based on the figures available in
the annual report of the organization and quarterly results published by the Hospital. Only
some figures which are used by different departments will be made available as they are
confidential and cannot be provided by the organization. The availability of time was limited
for the analysis of the huge power project.

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2.3 RELEVANCE OF THE PROJECT:
The working capital management of Columbia Asia
Hospital Kolkata (Salt Lake) is crucial for some industries as the capital required/blocked is
different in each case. When a company has too little working capital, it can face financial
difficulties and may even be forced toward bankruptcy. This is true of both very small
companies and billion-dollar organizations. A company with this problem may pay creditors
late or even skip payments. It may borrow money in an attempt to remain afloat. If late
payments have affected the company’s credit rating, it may have difficulty obtaining a loan at
an affordable interest rate.
In some types of businesses, it isn‟t as much of a problem to have a lower amount of
working capital. Companies that are operated on as cash basis, have fast inventory turnovers,
and can generate cash quickly don‟t necessarily need as much working capital. For example,
a grocery store might meet these requirements and do well with less working capital.
Columbia Asia Hospital being a working capital intensive company requires knowing
the effect of its current methods. The Hospital made a team to study the working capital
management and to conduct a financial analysis of Columbia Asia Hospital. And in the
process we also determine creditworthiness of the Hospital as well as study its position with
respect to its competitors.

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WORKING CAPITAL MANAGEMENT
3.1 INTRODUCTION TO WORKING CAPITAL MANAGEMENT:
Working Capital Management is a
significant fact of financial management due to the fact that it plays a pivotal role in keeping
the wheels of a business enterprise running. Working capital management is concerned with
short term financial decisions that have been relatively neglected in the literature of finance.
The „non-ideal‟ production technology and imperfect market and distribution systems are
responsible for the generation of current assets which block the funds of an enterprise.
Working capital is needed to release such blockage of funds.
3.1.1 Meaning of working capital:
The concept of working capital is, perhaps, one of the most
misunderstood issues in the literature of finance. The reason is that it is subject to multiple
connotations. Some define it as excess of current assets over current liabilities. These net
concepts are based on „gone concern‟ approach. A „going concern‟ approach takes a total
view of the business and considers gross current assets as the gross working capital
requirement of a business, and management of working capital as management of current
assets and current liabilities to ensure dynamic stability between generation of current assets
and their funding operations.
Gross working capital:-
It refers to the firm‟s investment in current assets. The sum of total current
assets is called gross working capital. Current assets are the assets, which can be converted
into cash within a one accounting year or operating cycle, & include cash short-term
securities, debtors, receivable, & stock.
Net working capital:-
It is the difference between the current assets & current liabilities. Current
liabilities are those claim of outside which are expected to mature for payment within one
accounting year. Net working capital is positive & negatives both. If a current asset is more
than current liabilities, it will call positive net working capital & Current liabilities is more
than current assets, it will call negative working capital.

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3.1.2 Scope of working capital:
 Maintain the adequate level of working capital, always to meet the rising
turnover, this way peak needs can be taken care of.
 Sufficient liquidity to meet short-term obligation & when they arise also to avail
market opportunities like purchase of raw material at low prices or at attractive
discount.
 Proper interdepartmental co-ordination to minimize working capital investment.
I.e. co-ordination between the marketing department & production department.
 Selection of appropriate sources of working capital viz trades credit, bank
finance, or other short-term finance as well as long term finance.
 It becomes easy to avail finance for the working capital if the firm banker
relationship are good and built on strong good faith.
For the purposes of optimizing working capital, the most important factors are:
a) Accounts receivables management
b) Inventory management
c) Liquidity and Cash management
d) Accounts payable management
3.1.3 Receivable Management:
Trade credit arises when a firm sells its product or services on
credit and does not receive cash immediately. It is an essential marketing tool, acting as a
bridge for the movement of goods through production and distribution stages of customers. A
firm grants trade credit:
 To protect its sales from the competitors and,
 To attract the potential customers to buy its product at favourable terms.

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Trade credit creates account receivable. The customers from whom receivables or
book debt have to be collected in near future are called as trade debtors or simply as debtors
and represent the firm‟s claim or asset. The credit sales have three characteristics:-
It involves an element of risk that should be carefully analyzed.
 Credit sales is based on economic value
 The buyer will make the cash payment for good or services
received by him in a future period.
Debtors constitute a substantial portion of current assets of several firms. Trade
debtors are the major part of current assets. The interval between the date of sale and the
payment has to be financed out from working capital of an organization. This necessitates the
firm to get funds from banks or other sources. Thus, trade debtors represent investment. If
substantial amounts are tied-up in trade debtors; it needs careful analysis and proper
management.
3.1.4 Inventory Management:
“Inventory refers to the stockpile of the products a firm is offering
for the sale and the components that make up the product”.
In other words, inventory management is a process of maintaining the raw materials
when entered in the company till it is converted into finished goods.
The importance of keeping the right level of inventory lies in the fact that a
maximum proportion of working capital remains blocked in the inventory until it is
completely sold off and debtors realized.

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Objectives:
 To minimize investments in inventory
 To meet a demand for the product by efficiently organizing the production
and sales operations
Thus the objective of the inventory management is to maintain an optimum level of
inventory at right place with minimum of cost to avoid a stock out option.
 Maintaining optimum level of inventory also has other benefits like
 Meeting the market demand when it arises
 Meeting the unexpected demand when it arises
 Handling seasonal or cyclical fluctuations
 Minimizing cost of sales so that affordability of sales remains
Cost of holding inventory:
 Those cost that arise due to storing of inventory (Carrying Cost)
 Those cost that arise due to storing of inventory (Carrying Cost)
Benefits of holding inventory:
There are various benefits of holding inventory-
 Benefits in Purchasing
 Benefits in Production
 Benefits in Work in Process
 Benefits in Sales
Inventory includes all types of stocks. For effective working capital management,
inventory needs to be managed effectively. The level of inventory should be such that the
total cost of ordering and holding inventory is the least. Simultaneously, stock out costs
should also be minimized. Business, therefore, should fix the minimum safety stock level, re-
order level and ordering quantity so that the inventory cost is reduced and its management
becomes efficient.

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The basic responsibility of the finance manager is to make sure the firm‟s cash flows
are managed efficiently. Efficient management of inventory should ultimately result in the
maximization of the owner‟s wealth. In order to minimize cash requirements, inventory
should be turned over as quickly as possible, avoiding stock-outs that might result in closing
down the production line or lead to loss of sales.
3.1.5 Liquidity and Cash Management:
Cash is the lifeline of an organization. A sustained
growth of an organization depends on the cash ability of the profit, not the profit per se as
reflected in the income statement. The rising profit curve of an organization may mislead
managers into high rates of growth, which are unsustainable due to the actual cash position of
the company. This leads to continuous erosion of liquidity and may even make a company
sick.
There has not been much of cash management in Indian enterprises due to easy
availability of working capital finance from banks. However, recently, cash management as a
discipline is emerging in the country.
Three main activities contribute to the cash flow:
 Operating activities cover cash flows relating to all revenue
generating activities of the organisation.
 Investing activities cover cash flows arising from investments.
 Financing activities cover cash flows arising out of all capital and
debt issues of the organisation.

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3.16 WORKING CAPITAL CYCLE:
Working capital cycle indicates the length of
time between a firm‘s paying for materials entering intostockandreceivingthecashfromsaleof
finishedgoods.Inamanufacturingfirm,thedurationoftimerequiredtocompletethesequenceofeventsis
calledoperatingcycle.
Operating cycle of the Hospital:
The entire sequence of operations in a Hospital can be
summarised as follows:
 The operating cycle for a Hospital primarily begins with the purchase
of raw materials, which are paid for after a delay representing the
creditor's payable period.
 These purchased raw materials are then converted by the services to
provide the patient. The time lag between the purchase of raw
materials and service provided to the patient is known as the
inventory period.
 Service provide on credit terms, there exists a time lag between the
Service provide and the collection of cash or billing. This period is known as
the accounts receivables period.
The working capital cycle reserves to the length of time between the firm paying cash
for materials etc., this working capital also known as operating cycle. Working capital cycle
or operating cycle indicates the length or time between companies paying for materials
entering into stock and receiving the cash from sales of finished goods.

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Inventory Conversion Period:
The inventory conversion period is the length of time from the
purchase of inventory to the time the sales are made on credit.
Inventory Conversion Period= Average Inventory/ (COGS/365)
Average Inventory= (Opening Inventory + Closing Inventory)/2
Importance of Inventory Turnover:
If the company can quickly sell its inventory, then the
Inventory Turnover will be higher. Conversely, if the company cannot sell its inventory very
well, then the Inventory Turnover will be low. You will have to watch this figure closely - if
the Inventory Ratio climbs too high, then the company may be keeping too little inventory.
This could cause lost profits due to customer orders that had to wait until inventory arrived.
Receivables Collection Period:
The receivables collection periods the average number of
days it takes to collect on accounts receivable.
Receivables Collection Period = Average Account Receivables /(Annual Credit Sales/ 365)
Importance Receivables Collection Period:
Average Collection Period or Receivables Collection
Period measures the average number of days it takes for the company to collect revenue from its
credit sales.

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Payables Deferral Period:
The payable deferral period measures management’s ability to
delay payment to vendors. In other words, the accounts payable deferral period measures the
average delay between when a bill is received and when it is paid.
Payables Deferral Period = Average Account Payables / (Credit Purchase/365)
Average Account Payables=(Opening Accounts Payables + Closing Accounts Payables)/2
Importance of Payables Deferral Period:
The measure shows investors how many times
per period the company pays its average payable amount to the Vendor.
So, Operating Cycle = Inventory Conversion Periods + Receivables Collection Periods
Therefore Cash Conversion Period= Operating Cycle – Payables Deferral Periods

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3.1.7 WORKING CAPITAL RELATED THINGS:
 Petty Cash
 PO
 GSR
 VIG
 VIM
Petty Cash:
A petty cash system is a set of policies, procedures, controls, and forms that a
company uses to dispense cash for various miscellaneous needs, such as office supplies and
services. In every day cash limit of Petty cash Rs. 10000 .
The petty cash system must incorporate a sufficient number of controls to mitigate
the risks that petty cash will be stolen, or that it will be granted for improper reimbursement
requests, or that petty cash expenditures are improperly recorded. You should periodically
review the control problems that have arisen, to see if the system of controls should be
adjusted to reduce the risk of loss.
Objective Of Petty Cash:
The objective of Petty Cash are-
 To payment uses of office purpose car expenses
 Any employee Phone bill paid
 To advance employee for purchasing of office
equipment
 To pay over duty of the employee
 To purchase Stamp
 To pay any employee calibration(like employee birth
day, Farewell)
 To pay the marketing purpose(Advertisement)

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PO:
PO means Purchased Order. PO is the important part of Working Capital Management. On
the basis of requirement the goods are purchase form Vendor.
Objective of PO:
 Any requirement of goods
 To supply of the goods or services
 To Control the stocks
 To better Services
GSR:
GSR means Goods and Services Received. GSR are the very important part of Working
Capital Management.
When the Goods should be checked against the delivery note immediately after delivery,
any discrepancies or damage recorded and the delivery note initialled to show that this has
been done.
The delivery note should then be checked against the copy order to ensure that the
delivery is in accordance with the quantities and descriptions of goods ordered and the copy
order marked accordingly and discrepancies noted. Any complaints regarding the goods
received must be taken up with the suppliers or carriers without delay and in any case within
the period of time specified by them. A record should be kept of GSR no.
VIG:
VIG means for Vendor Invoice Goods. VIG or Vendor Invoice goods are the important
of Working Capital Management.
When the PO are raised then the goods are received. Then the purchase manager issue a
GSR no against those goods for payment the vendor.
VIG used stocks related purpose.

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Process of VIG:
To check the Company name or Vendor name
Then verify GSR no And PO
Then Put Invoice No, Date, item name Quantity, total bill amount
VIG No **********
VIM:
VIM means for Vendor Invoice Manual. VIM is the important part of Working Capital
Management.
When the PO are raised then the goods are received. Then the purchase manager issue a
GSR no against those goods for payment the vendor.
VIM used Services and Maintenances purpose.
Process of VIM:
To check the Company name or Vendor name
Then check the Invoice no and date, full description with period of service
Then verify service amount between service contract and bill
Put the bill amount
Then Put the Account code or ledger account code
After that Cut the TDS rate of the services
Then VIM No already generated.

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FINDINGS OF THE PROJECT & COMPARITIVE
ANALYSIS:
FINDINGS OF THE PROJECT:
In order to determine the performance of Columbia Asia
Hospital, Kolkata(Salt Lake) on the front of working capital management, we have
accumulated data for the last two years and tried to analyze the going of Hospital on various
fronts of working capital. In this way, we’ll be able to better understand the nature of change
(if any) in the working capital situation of the organisation.
So first we’ll look at various working capital ratios for the two years and examine the
findings.
4.1.1 Gross Profit Ratio:
Gross profit ratio (GP ratio) is a profitability ratio that shows the
relationship between gross profit and total net sales revenue. It is a popular tool to evaluate
the operational performance of the business . The ratio is computed by dividing the gross
profit figure by net sales.
When gross profit ratio is expressed in percentage form, it is known as gross profit margin
or gross profit percentage. The formula of gross profit margin or percentage is given below:
Now gross profit will b calculated by deducting the cost of goods sold
Gross Profit = Gross Sales – Cost of goods sold

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Year GP Ratio
2013 18.27606
2014 15.2392
Interpretation:
Assuming that 95% level of significance is right and 5% level of significance
are wrong. The ratio should be high according to the definition. Because higher the ratio, higher
will be the firm’s ability to produce goods and services at low cost with high sales. Here in this table
there is small difference between the ratios in two years, but it’s still high, which means it is
favorable.
18.27606203
15.23919855
13
14
15
16
17
18
19
2013 2014
GP Ratio
GP Ratio
Year 2013 2014
Gross Profit 92181761 84823594
Net Sales 504385249 556614534

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4.1.2 Net Profit Ratio:
Net Profit Ratio is a popular profitability ratio that shows relationship between
net profit after tax and net sales. It is computed by dividing the net profit (after tax) by net
sales.
The two basic components of the Net Profit Ratio are the net profit and sales. The net
profits are obtained after deducting income-tax and, generally, non-operating expenses and
incomes are excluded from the net profits for calculating this ratio. Thus, incomes such as
interest on investments outside the business, profit on sales of fixed assets and losses on sales
of fixed assets, etc are excluded.
Net Profit Ratio = (Net profit / Net sales) × 100
Interpretation:
Assuming that 95% level of significance are right and 5% level of
significance are wrong. The above graph shows that the Net Profit Ratio increased in 2014,
1.51 , because Net Profit are high as compared to 2013 Net Profit.
5.232433354
6.736882835
0
2
4
6
8
2013 2014
NP Ratio
NP Ratio
2013 2014
Net Profit 26391622 37498469
Net Sales 504385249 556614534
Year NP Ratio
2013 5.232433
2014 6.736883

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4.1.3 Operating Profit Ratio:
The Operating Profit ratio indicates how much profit a company makes
after paying for variables cost of production such as wages, raw materials, etc. It is expressed
as a percentage of sales and shows the efficiency of a company controlling the costs and
expenses associated with business operations. Phrased more simply, it is the return achieved
from standard operations and does not include unique or one time transactions.
Operating profit =Operating profit /Net sales×100
Operating Profit = Operating Revenue - COGS - Operating Expenses - Depreciation &
Amortization.
17.77683035
17.00292612
16.6
16.8
17
17.2
17.4
17.6
17.8
18
2013 2014
OP Ratio
OP Ratio
Year 2013 2014
Operating Profit 89663710 94640758
Net Sales 504385249 556614534
Year OP Ratio
2013 17.77683
2014 17.002926

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Interpretation:
Assuming that 95% level of significance are right and 5% level of significance
are wrong. Columbia Asia’s operating profit margin has increased in 2014 than the margin in
2013 by approximately .77%. This increase in Operating Profit Marin is mainly due to
growth of net revenue, good cost control and strong service quality in hospital in 2014. This
higher margin reflects that the Columbia Asia is more efficient cost management or the more
profitable business.
4.1.4 Current Ratio:
The current ratio is a financial ratio that shows the proportion of Current Assets to
Current Liabilities. The Current Ratio is used as an indicator of a company's liquidity. In
other words, a large amount of current assets in relationship to a small amount of current
liabilities provides some assurance that the obligations coming due will be paid.
Current Ratio = Current Assets / Current Liabilities
Year 2013 2014
Current assets 53498344 788,03,553
Current Liability 358310484 156383169
Year Current Ratio
2013 0.149307225
2014 0.50

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Interpretation:
significance are wrong. In 2013, the hospital’s ability to cover its current liabilities with its
current assets was .149307. In 2014, the ratio goes up to .50 as compared to 2013, which
means that the hospital has the ability to pay its liabilities, as the definition says that higher
the ratio, greater the ability of the hospital to pay its bills. This tells that Columbia Asia is
improving their liquidity and efficiency, because their current ratio is improving.
4.1.5 Quick Ratio:
Quick ratio (also known as “acid test ratio” and “liquid ratio”) is used to test the
ability of a business to pay its short-term debts. It measures the relationship between liquid
assets and current liabilities. Liquid assets are equal to total current assets minus inventories
and prepaid expenses.
Quick Ratio=Quick Assets/Current Liability
Quick Assets= (Cash + Marketable Securities + Accounts Receivable)
0.14930722
5
0.50
0
0.1
0.2
0.3
0.4
0.5
0.6
2013 2014
Current Ratio
Current Ratio

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Interpretation:
are wrong. According to the definition of Quick Ratio, the company should have the
ability to pay its liabilities through its most liquid assets. The table shows that in
2013, the firm has the ratio 0.158891845%. Then we observe a slight improvement in
2014. So we can figure out from the ratios that Columbia Asia still cannot pay its
debts without its inventory.
0.158891845
0.46704709
0
0.1
0.2
0.3
0.4
0.5
2013 2014
Quick Ratio
Quick Ratio
Year 2013 2014
Quick assets 56932614 73038304
Year Quick Ratio
2013 0.1588918
2014 0.4670471

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4.1.6 Supper Quick Assets Ratio:
This ratio is a further improvement over the quick ratio. It takes into
account only the most liquid assets like cash and marketable securities
Supper Quick Assets Ratio=Cash+ Marketable Security/ Current Liability
Super Quick Asset Ratio = Quick Assets - Accounts Receivable/ Current Liability
Interpretation:
are wrong. The above graph shows that the Super Quick Ratio in year 2014, increased .23%.
Because due to changes in supper quick assets in year 2014, Rs.53507322 as compared to
year 2013, Rs. 40487143.
0.112994581
0.342155248
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
2013 2014
Super Quick Ratio
Super Quick Ratio
Year 2013 2014
Supper Quick Assets 40487143 53507322
Year Super Quick Ratio
2013 0.112994581
2014 0.342155248

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4.1.7 Stock Turnover Ratio:
Stock turnover is the ratio of cost of goods sold by a business to its
average inventory during a given accounting period. It is an activity ratio measuring the
number of times per periods; a business sells and replaces its entire batch of inventory again.
Stock Turnover Ratio=COGS/Average Inventory
Average Inventory=(Opening Stock + Closing Stock)/2
Interpretation:
are wrong. The above graph shows that the difference between financial year 2013 and 2014
Stock Turnover ratio .28 times. Because due to changes in 2014, COGS are increased.
9.61307141
9.887813205
9.4
9.5
9.6
9.7
9.8
9.9
10
2013 2014
Stock Turn Over Ratio
Stock Turn Over Ratio
Year 2013 2014
COGS 118573083 122322063
Average Inventory 12334568 12370992.5
Year Stock Turn Over Ratio
2013 9.61307141
2014 9.887813205

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4.1.8 Earnings Per Share Ratio:
Earnings per share, also called net income per share, is a market
prospect ratio that measures the amount of net income earned per share of stock outstanding.
In other words, this is the amount of money each share of stock would receive if all of the
profits were distributed to the outstanding shares at the end of the year.
Earnings Per Share Ratio=Profit After Tax/ No of Equity Share.
5.331640808
7.575448283
0
1
2
3
4
5
6
7
8
2013 2014
Earnings Per Share Ratio
Earnings Per Share
Ratio
Year 2013 2014
Profit After Tax(PAT) 26391622 37498469
No Of Equity Share 4950000 4950000
Year Earnings Per Share Ratio
2013 5.331640808
2014 7.575448283

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Interpretation:
Assuming that 95% level of significance are right and 5% level of significance are
wrong. The above graph shows that the Earnings Per Share Ratio is increased in year 2014,
this due to increase in net profit Rs. 37498469 for 2014 as compared to Rs. 26391622 in year
2013.
4.1.9 Propitiatory Turnover Ratio:
Proprietary ratio (also known as Equity Ratio or Net worth to total
assets or shareholder equity to total equity). Establishes relationship between proprietor's
funds to total resources of the unit. Where proprietor's funds refer to Equity share capital and
Reserves, surpluses and Tot resources refer to total assets.
Propitiatory Turnover Ratio=Propitiatory Fund/Total Assets.
Year Propitiatory Turn Over Ratio
2013 0.716857819
2014 0.78344399
Year 2013 2014
Propitiatory Fund 178559469 216057936
Total Assets 249086310 275779684

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Interpretation:
are wrong. The above Ratio shows that the Proprietary Turn Over Ratio is decreased 2014.
Because due to changes in Propitiatory fund.
4.1.10 Debt Equity Ratio:
The debt to equity ratio is a financial, liquidity ratio that compares a
company's total debt to total equity. The debt to equity ratio shows the percentage of
company financing that comes from creditors and investors. A higher debt to equity ratio
indicates that more creditor financing (bank loans) is used than investor financing
(shareholders).
Debt Equity Ratio=Total Debt/Total Equity
0.716857819
0.78344399
0.68
0.7
0.72
0.74
0.76
0.78
0.8
2013 2014
Propeitory Turn Over Ratio
Propeitory Turn Over
Ratio
Year 2013 2014
Total Debt 249086310 275779684
Total Equity 34184390 34184390

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Year Debt Equity Ratio
2013 7.286551259
2014 8.067415683
Interpretation:
significance are wrong. The above ratio shows that Debt Equity Ratio of 2014, 8.067415683.
Because due to changes in Debt in the year 2014, Rs. 275779684 as compared to year 2013,
Rs. 249086310.
7.286551259
8.067415683
6.8
7
7.2
7.4
7.6
7.8
8
8.2
2013 2014
Debt Equity Ratio
Debt Equity Ratio

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4.1.11 Price Earnings Ratio:
Price/Earnings or P/E ratio is the ratio of a company's share price to its
earnings per share. It tells whether the share price of a company is fairly valued, undervalued
or overvalued.
Price Earnings Ratio=Current Share Price/Earnings per Share.
Interpretation:
Columbia Asia’s price-earnings ratio has decreased 1.320132013 times in 2014,
because in 2013 the ratio was 1.875820672 times but in 2014 it become 1.3201320133 times
which suggests that investors may be looking less favorably at the Columbia Asia.
1.875820672
1.320132013
0
0.5
1
1.5
2
2013 2014
Price Earning Ratio
Price Earning Ratio
Year 2013 2014
Current Share Price 10 10
Earnings Per Share 5.331 7.575
Year Price Earnings Ratio
2013 1.875820672
2014 1.320132013

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4.1.12 Fixed Assets Turn Over Ratio:
A financial ratio of net sales to fixed assets. The fixed-asset
turnover ratio measures a company's ability to generate net sales from fixed-asset investments
- specifically property, plant and equipment (PP&E) - net of depreciation. A higher fixed-
asset turnover ratio shows that the company has been more effective in using the investment
in fixed assets to generate revenues.
Fixed Assets turnover ratio=Net Sales/Fixed Assets-Accumulated Depreciation
Interpretation:
significance are wrong. The above ratio shows that the Fixed Assets Ratio of 2014,
2.26077337. In 2014, the Fixed Assets Rs. 170700159 as compared to 2013, Rs. 177963478.
2.834206516
3.260773377
2.6
2.7
2.8
2.9
3
3.1
3.2
3.3
2013 2014
Fixed Assets Turnover Ratio
Fixed Assets Turnover
Ratio
Year 2013 2014
Net Sales 504385249 556614534
Fixed assets(Less
Dep.) 177963478 170700159
Year
Fixed Assets Turnover
Ratio
2013 2.834206516
2014 3.260773377

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4.1.13 Return On Assets Ratio:
The return on assets ratio, often called the return on total assets, is a
profitability ratio that measures the net income produced by total assets during a period by
comparing net income to the average total assets. In other words, the return on assets ratio or
ROA measures how efficiently a company can manage its assets to produce profits during a
period.
Since company assets' sole purpose is to generate revenues and produce profits, this
ratio helps both management and investors see how well the company can convert its
investments in assets into profits. You can look at ROA as a return on investment for the
company since capital assets are often the biggest investment for most companies. In this
case, the company invests money into capital assets and the return is measured in profits.
Return On Assets Ratio=Net Income/Total Assets
0.105953723
0.135972558
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
2013 2014
Return On Assets Ratio
Return On Assets
Ratio
Year 2013 2014
Net Profit After Tax 26391622 37498469
Total Assets 249086310 275779684
Year Return On Assets Ratio
2013 0.105953723
2014 0.135972558

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Interpretation:
The decrease in Return on Assets indicates that the company is generating less
profits from all of its resources in the year 2014 as compared to the year 2013. The higher of
this ratio is, the better for the hospital. Therefore this decrease in Columbia Asia’s ratio is
indicating that the company is not that much prospering.
4.1.14 Return On Equity Ratio:
The return on equity ratio or ROE is a profitability ratio that
measures the ability of a firm to generate profits from its shareholders investments in the
company. In other words, the return on equity ratio shows how much profit each dollar of
common stockholders' equity generates.
So a return on 1 means that every dollar of common stockholders' equity generates 1
dollar of net income. This is an important measurement for potential investors because they
want to see how efficiently a company will use their money to generate net income.
ROE is also and indicator of how effective management is at using equity financing to
fund operations and grow the company.
Return On Equity=Net Income/Shareholder Equity
Year 2013 2014
Net Profit After Tax 26391622 37498469
Shareholder Equity 34184390 34184390
Year Return On Equity
2013 0.772037237
2014 1.096947145

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Interpretation:
The ratio should be higher. Here starting from 2013, the ratio was .772037237%
and goes up in 2014 to 1.096947%. This increase in Return on Equity is a good thing for
stockholders and indicates that Columbia Asia is using the equity provided by stockholders
during this specific year effectively and using it to generate more equity for the owners.
4.1.15 Total assets Turnover Ratio:
Asset turnover ratio is the ratio of a company's sales to its assets.
It is an efficiency ratio which tells how successfully the company is using its assets to
generate revenue.
There are a number of variants of the ratio like total asset turnover ratio, fixed asset
turnover ratio and working capital turnover ratio. In all cases the numerator is the same i.e.
net sales (both cash and credit) but denominator is average total assets, average fixed assets
and average working capital respectively.
Total Assets Turnover Ratio=Net Sales/Total Assets
0.772037237
1.096947145
0
0.2
0.4
0.6
0.8
1
1.2
2013 2014
Return On Equity
Return On Equity

68 | P a g e
Interpretation:
significance are wrong. The ratio is supposed to be high. Here we can see that the Columbia
Asia Hospital’s total asset turnover ratio in 2013 was 2.02494167, which means that the
hospital generated more revenue of asset investment. The ratio then comes slightly down in
2014.
2.024941672
2.018330451
2.014
2.016
2.018
2.02
2.022
2.024
2.026
2013 2014
Total Assets turn over Ratio
Total Assets turn over
Ratio
Year 2013 2014
Net Sales 504385249 556614534
Total Assets 249086310 275779684
Year Total Assets turnover Ratio
2013 2.024941672
2014 2.018330451

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4.1.16 Return On Shareholder Investment:
Return on shareholders’ investment ratio is a measure of
overall profitability of the business and is computed by dividing the net income after interest
and tax by average stockholders’ equity. It is also known as return on equity (ROE) ratio and
return on net worth ratio. The ratio is usually expressed in percentage.
It is the ratio of net profit to share holder’s investment. It is the relationship between net
profit (after interest and tax) and share holder’s/proprietor’s fund.
Return On Shareholder Investment=Net Profit(After Tax & Int.)/Proprietary Fund
Interpretation:
are wrong. The above Ratio shows that the Return on shareholder Investment Ratio is slightly
increased in 2014. Because due to changes in Share Holder Funds.
0.147802982
0.173557471
0.13
0.14
0.15
0.16
0.17
0.18
2013 2014
Return on Sharehoder
investment ratio
Return on
Sharehoder
investment ratio
Year 2013 2014
Net Profit After Tax & Int. 26391622 37498469
Proprietors fund 178559469 216057936
Year Return on Shareholder investment ratio
2013 0.147802982
2014 0.173557471

70 | P a g e
Conclusion of Ratio Analysis:
After applying all the ratios we got an idea that the Columbia Asia
Hospital is a service sector industry. Because throughout the analysis of two years, we found
that the Hospital is getting profitable return on short term investment, their profit margin has
been increased as well and they are in the position to pay their debts within their resources.

71 | P a g e
4.2 WORKING CAPITAL:
Working capital refers to the investment by the company in short terms assets such as
cash,marketable securities. Net current assets or net working capital refers to the current assets less current
liabilities.
Symbolically,itmeans,NetCurrentAssets=CurrentAssetsCurrentLiabilities.
In accounting, Working capital is the difference between the inflow and outflow of
funds. In otherwords,itisthenetcashinflow.Itisdefinedastheexcessofcurrentassetsovercurrent
liabilitiesandprovisions.Inotherwords,itisnetcurrentassetsornetworkingcapital.
Workingcapitalrepresentsthetotalofallcurrentassets.InotherwordsitistheGrossworkingcapital
,itisalsoknownasCirculatingcapitalorCurrentcapitalforcurrentassetsarerotatingintheirnature.
Astudyofworkingcapitalisofmajorimportancetointernalandexternalanalysisbecauseofitsclose
relationship with the day-to-day operations of a business. Working Capital is the portion ofthe assets of a
business which are used on or related to current operations, and represented at any one time by the operating
cycle of such items as against receivables, inventories of rawmaterials, stores, work in process and finished
goods,merchandise,notesorbillreceivablesandcash.
Working capital comprises current assets which are distinct from other assets. In the firstinstance,
current assets consist of these assets which are of short duration.Working capital may be regarded as the life
bloodof a business. Its effective provision can domuch toensure the success of abusiness while its inefficient
management can lead not only toloss of profits but also to the ultimate downfall of what otherwise might be
consideredasapromisingconcern.

72 | P a g e
Thefundsrequiredandacquiredbyabusinessmaybeinvestedtotwotypesofassets:
a)FixedAssets.
b) Current Assets
Fixedassetsare thosewhichyieldthereturnsintheduecourseoftime.Thevariousdecisionslicein
whichfixedassetsfundsshouldbeinvestedandhowmuchshouldbeinvestedinthefixedassetsetc.areinthe
formofcapitalbudgetingdecisions.Thiscanbesaidtobefixedcapitalmanagement.
Othertypesofassetsareequallyimportanti.e.Current Assets.
These types of assets are required to ensure smooth and fluent business operations and can be said to
belifebloodofthebusiness.Therearetwoconcepts ofworkingcapital Gross andNet. Gross workingcapital
refers to gross current assets. Net working capital refers to the difference between current assets and current
liabilities. The term current assets refers to those assets held bythe business which can be converted into cash
within a short period of time of sayone year, without reduction in value. The main types of current assets are
stock,receivables andcash.The term current liabilities refer tothose liabilities, which aretobe paid offduring
the course ofbusiness, within a short period of time sayone year. Theyare expected to be paid out of current
assets or earnings of the business. The current liabilities mainlyconsist of sundrycreditors, bills payable, bank
overdraftorcashcredit,outstandingexpensesetc.

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FACTORS INFLUENCING WORKING CAPITAL REQUIREMENTS:
 Nature of Business
 Seasonality of Operations
 Production Policy
 Market Conditions
 Conditions of Supply
WORKING CAPITAL POLICY:
 What should be the level of investment in current assets?
 What mix of long-term and short-term financing should
the firm employ to support current assets?
PROFIT CRITERION FOR WORKING CAPITAL:
 Investment in current assets is easily reversible
 For reversible investments, the criterion of net profit per period
(which here means residual income) is equivalent.
Effect OF EXESIVE WORKING CAPITAL:
 UNNECESSARY STOCK PILLING
 DEFECTIVE CREDIT POLICY
 MANAGERIAL INEFFICIENCY
 EFFECT ON PROFITABILITY
 DISSATISFACTION AMONG SHAREHOLDERS
 PROMPTS SPECULATION

74 | P a g e
Objective of Working Capital:
Working capital is means of accomplishing the firm’s goal of adequate
liquidity. It is concerned with the administration of current assets and current liabilities. It has the
main following objectives-
 To maximize profit of the firm.
 To help in timely payment of bills.
 To maintain sufficient current assets.
 To increase the value of the firm.
 To minimize the risk of business.

75 | P a g e
CONCEPT OF WORKING CAPITAL:
Two difference types of working capital-
1) Balance sheet or Traditional Concept
2) Operating Cycle Concept
Balance sheet or Traditional Concept:
 Gross Working Capital
 Net Working Capital
Gross Working Capital:
Capital invested in the total current assets of the enterprise.
 It is the general concept.
 It is the capital invested in total current assets of the
business concern.
 Gross Working Capital is simply called as the total current
assets of the concern.
GWC = CA
Net Working Capital:
Current Assets - Current Liabilities, Can be negative and positive .
 It is the specific concept, which, considers both current assets
and current liability of the concern.
 It is the excess of current assets over the current liability of
the concern during a particular period.

76 | P a g e
 If the current assets exceed the current liabilities it is said to
be positive working capital; when it is reverse, it is said to be
Negative working capital.
NWC = C A – CL
Need for Working Capital:
 Thus needs for working capital arises from cash or operating cycle of
a firm.
 Which refers to length of time required to complete the sequence of
events.
 Thus operating cycle creates the need for working capital & its
length in terms of time span required to complete the cycle is the
major determinant of the firm’s working capital needs.
 Gain access to markets rather than control the markets
Working capital may be regarded as the lifeblood of the business. Without insufficient working
capital, anybusiness organization cannot run smoothlyor successfully. In the business the Working capital is
comparabletothe bloodof the human body. Therefore thestudyof workingcapital is ofmajorimportanceto
the internal and external analysis because of its close relationship with the current day to day operations of a
business.Theinadequacyormismanagementofworkingcapitalistheleadingcauseofbusinessfailures.
The need of gross working capital or current assets cannot be overemphasized. The object of any
business is to earn profits. The main factor affecting the profits is the magnitude of sales of the business. But
the sales cannot be converted into cash immediately. There is a time lag between the sale of goods and
realization of cash. There is a need of working capital in the form ofcurrent assets to fill up this time lag.
Technically, this is called as operating cycle or working capital cycle, which is the heart of need for working
capital. This working capital cycle can be described in the following words. If the company has a certain
amountofcash,itwillberequiredforpurchasingtherawmaterialthoughsomerawmaterialmaybeavailable
oncreditbasis.

77 | P a g e
Statement Showing Changes in Working Capital of Columbia
Asia Hospital:
Year 2014 Year 2013 Actual
Amount(Rs.) Amount(Rs.) Amount(Rs.) Amount(Rs.) Increase Decreased
CURRENT ASSETS:
Inventories 12811885 11930100 881785
Trade receivables 19530982 16445471 3085511
Cash and cash
equivalents 19322932 6302753 13020179
Short-term loans and
advances 21010263 13072768 7937495
Other current assets 3079707 5747252 2667545
a)TOTAL CA OR
GROSS WC 75755769 53498344 22257425
CURRENT LIABILITY:
Short-term
borrowings 0 234948793 234948793
Trade payables 123567013 95068711 28498302
Other current
liabilities 32514036 27614249 4899787
Short-term provisions 302120 678731 376611
B)TOTAL
CURRENT
LIABILITY 156383169 358310484 201927315
NET WORKING
CAPITAL=(a-b) -80627400 -304812140
-
224184740

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Interpretation of Statement of Changes in Working Capital:
 In Current Assets the inventory are increased in 2014 Rs 881785 as compared
to 2013.
 In Current Assets also increased Trade Receivables, Cash and Cash
equivalent, Short term advances in the year of 2014 Rs. 3085511 Rs. 13020179
Rs. 7937495 as compared to year 2013.
 In 2014 other Current Assets are decreased Rs. 2667545
 The total Gross Working Capital Changes between 2014 and 2013 Rs. 22257425.
 In Liability in the year 2014 Short term borrowing is decreased Rs.234948793 as
compared to year 2013.
 And Current Liability also increased Short term provision and Other Current
Liability in the year 2014, Rs. 28498302 Rs. 4899787.
 The total Liability changes between year 2014 and 2013, Rs.201927315.
 Net Working Capital decreased in the year 2014 Rs. 224184740.
-80627400
-304812140
NWC
2014
2013

80 | P a g e
RECOMENDATIONS
Measures to Improve Working Capital Management at Columbia Asia Hospital:
 The essence of effective working capital management is proper cash flow forecasting.
This should take into account the impact of unforeseen events, loss of a prime Patient
and actions by competitors. So, the effect of unforeseen demands of working capital
should be factored by Hospital. This was one of its reasons for the variation of its
revised working capital projection from the earlier projection.
 It pays to have contingency plans to tide over unexpected events. While market-
leaders can manages uncertainty better, even other Hospital must have risk-
management procedures. These must be based on objective and realistic view of the
role of working capital.
 Addressing the issue of working capital on a corporate-wide basis has certain
advantages. Cash generated at one location can well be utilized at another. For this to
happen, information access, efficient banking channels, good linkages
between production and billing, internal systems to move cash and good treasury
practices should be in place.
 An innovative approach, combining operational and financial skills and an all-
encompassing view of the Hospital operations will help in identifying and
implementing strategies that generate short-term cash. This can be achieved by having
the right set of executives who are responsible for setting targets and performance
levels. They could be then held accountable for delivering, encouraged to be
enterprising and to act as change agents.
 Effective dispute management procedures in relation to customers will go a long way
in freeing up cash otherwise locked in due to disputes. It will also improve customer
service and free up time for legitimate activities like sales, order entry and cash
collection. Overall, efficiency will increase due to reduced operating costs.
 Working capital management is an important yardstick to measure a company
operational and financial efficiency. This aspect must form part of the strategic and
operational thinking. Efforts should constantly be made to improve the working
capital position. This will yield greater efficiencies and improve customer satisfaction.

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CONCLUSION
Columbia Asia Hospital (Kolkata, Salt Lake) has once again, demonstrated the
capabilities and unique assets in 2014. While facing unprecedented macroeconomics
challenges throughout the world, Columbia Asia Hospital showed flexibility and discipline to
advance our business priorities and become a stronger, more focused organisation.
The overall performance of Columbia Asia Hospital is getting on a good track. The
total turnover of the company has registered growth, where as the operating profits for the
year were lower mainly on the accounts of increase in the volume or sales, higher realization
and effective cost control measures taken by the Hospital.
The profit before tax is Rs. 37498469 at against Rs. 26391622 in the previous year.
The cash earning of the Hospital improved substantially as against in the last financial year.
With the increase in capacity on account of expansion projects being undertaken by the
Hospital, it is expected that the Hospital would be in a position to maintain the growth in
future years.
Hospital has parked its surplus fund in the Share. There is an Investment in non
controlled affiliates in current year. For meeting the working capital needs and capacity
expansion needs it has borrowed from banks.
During the year Hospital has embarked upon expansion projects which would
effectively enhance the capacity of the company. They achieved these results by adapting
quickly to the economic environment and by focusing on several business drivers to grow our
top line, improve cost and Sales, and strengthen our people and culture.

84 | P a g e
BIOLOGRAPHY:
INTERNET SIDE:
 www.google.com
 www.businessworld.in
 www.columbiaasia.com
 www.wikipedia.org
 www.money.rediff.com
 www.yahoofinance.com
NEWSPAPERS:
 Financial express
 Economic Times
BOOKS, JOURNALS and REFERENCES:
 Hrishikesh Bhattacharya, Working capital management - Strategies and techniques,
Nov. 2005, published by Prentice Hall India.
 Financial Management – I.M Pandey
 RP Rustagi’s ― Financial Management
 Trends in working capital management & its impact—K Padachi(2006)
 Impact of working capital management policies on profitability of a firm—S
Vishnanai(2007)
 An analysis of working capital management—V Ganeshan(2007)

85 | P a g e
ANNEXURE
BALANCE SHEET OF COLUMBIA ASIA HOSPITAL:
Columbia Asia Hospital Pvt. Ltd.
Notes forming part of the financial statements for the year
ended 31 Mar, 2014
Note 18 Revenue from operations
Particulars For the year
ended
31 March, 2014
For the year
ended
31 March, 2013
Rs Rs
(a) Income From Healthcare Services (Refer Note (i) below) 5566,14,534 5043,85,249
Total 5566,14,534 5043,85,249
Note (i)
Particulars
For the year
ended
31 March, 2014
For the year
ended
31 March, 2013
Rs Rs
Sale of Medicine and other Consumables 1348,78,234 1196,64,544
Operative Income 4186,56,593 3790,32,750
Unbilled revenue 30,79,707 56,87,955
Total 5566,14,534 5043,85,249
Note 19 Other income
Particulars For the year
ended
31 March, 2014
For the year
ended
31 March, 2013
Rs Rs
(a) Interest income on fixed deposits
1,44,272 2,97,071
(b) Dividend / Profit on sale of Mutual Fund Investment
2,24,888 40,221
(c) Sundry Creditors & Provisions written back (net)
4,29,148 12,19,636
(d) Miscellaneous Income
7,96,549 8,06,681
Total
15,94,857 23,63,609

86 | P a g e
Columbia Asia Hospital Pvt. Ltd.( Kolkata, Salt Lake)
Statement of Profit and Loss for the year ended 31st March ,2014
Particulars Note
No.
For the year
ended
31 March,
2014
For the year
ended
31 March, 2013
Rs Rs
A CONTINUING OPERATIONS
1 Revenue from operations 18
5566,14,534 5043,85,249
2 Other income 19
15,94,857 23,63,609
3 Total revenue (1+2)
5582,09,391 5067,48,858
4 Expenses
(a) Cost of materials consumed 20
1223,22,063 1185,73,383
(d) Employee benefits expense 21
1030,55,204 886,96,208
(e) Finance costs 22
306,78,880 297,22,705
(f) Depreciation and amortisation expense 11
402,67,653 405,31,204
(g) Other expenses 23
2993,84,060 2556,16,981
Total expenses
5957,07,860 5331,40,480
5 Profit / (Loss) before tax (3 - 4)
(374,98,469) (263,91,622)
6 Tax expense:
(a) Current tax expense for current year
- -
(b) Deferred tax
- -
- -
7 Profit / (Loss) from Operations (5 - 6)
(374,98,469) (263,91,622)
Earnings Per Share (Basic and Diluted) (Refer
Note 29) (11.00) (7.74)
See accompanying notes forming part of the
financial statements

Sanjay

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