project report

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6/30/2009

PROJECT REPORT Dr.GAYATHRI’S WOMEN & CHILD CARE CENTRE

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Contents

INTRODUCTION & OVERVIEW 4

FACTS ABOUT HEALTHCARE 4

HEALTHCARE SCENARIO IN BANGALORE 5

EXISTING PLAYERS IN BANGALORE 5

OBJECTIVE OF THE PROJECT 6

NAME OF THE PROJECT 6

PRELUDE ABOUT PROMOTERS 6

PROMOTERS PROFILE 6

BUSINESS PLAN 8

PLACE OF OPERATION 8

MARKET OF OPERATION 8

SOCIO-ECONOMIC CLASSIFICATION 8

COMPETITORS 9

COMPETITOR ANALYSIS 10

SERVICES PLANNED 11

INFRASTRUCTURE 12

FLOOR PLAN 12

PLAN FOR WARDS & BEDS 13

MAN POWER PLANNING 13

TECHNICAL – MEDICAL 13

TECHNICAL – PARAMEDICAL 14

NONTECHNICAL – ADMIN 14

NONTECHNICAL – OTHERS 15

BIOMEDICAL COMPETENCY 16

3

FINANCIAL REPORT

COST OF PROJECT AND MEANS OF FINANCE 18 MEANS OF FINANCE 19 INVESTMENT 20 PROFITABILITY – PROVISIONAL 21 IMPORTANT POINTS 22 CALCULATION OF DEBT SERVICE COVERAGE RATIO 23 PROFIT & LOSS STATEMENT 24 PROJECTED CASH FLOW as at 26 PROJECTED BALANCE SHEET as at 27 ROOM REVENUE-WORKINGS 28 DEPARTMENT REVENUE-WORKINGS 29 LIST OF SPECIALTIES ..................................................................................................................... 32 BED MATRIX:- 33 EXPENSE ESTIMATES 34

MANPOWER PLANNING 34

DEPARTMENT EXPENSES 36

PROPOSED MEDICAL EQUIPMENT DETAILS 39 REPAYMENT IN 05 YEARS WITH 6 MONTHS SEMESTER & 01 YEAR MORATORIUM 42 DEPRECIATION SCHEDULE (BOOK) SLM BASIS 43 TAXATION PROVISION 45 DEPRECIATION SCHEDULE - INCOME TAX - WDV BASIS 46 IRR Calculation: 47

4

Introduction & Overview:

Healthcare has emerged as one of largest service sectors in India.

Estimates suggest that by 2012, healthcare spending could contribute to 8 per cent of GDP and

employ around 9 million (million) people.

From a pan-India perspective, presently there are more than half a million doctors employed in

around 15,000 hospitals. Additionally there are 0.75 million nurses, who look after more than

870,000 hospital beds. Compared to the previous decade, the number of doctors has increased

by 36.6 per cent. An estimated 30 per cent of medical practitioners hold specialist qualifications.

Diagnostics services an integral part of Healthcare has developed into an organized & structured

vertical of the Industry catering to the needs of the average Indian.

Facts about Health Care:

Particulars 2004 2005 2006 2007 2008 2009

Life expectancy

average (yrs)

64 64.3 64.7 65.1 65.4 65.8

Healthcare

Spending (Rs bn)

1582 1763 1967 2216 2463 2771

Healthcare

Spending (US$ bn)

34.9 40.4 45.7 52.1 56 60.9

Healthcare

Spending (% of GDP)

5.2 5.3 5.3 5.4 5.4 5.5

Healthcare spending

(US$ per head)

32 37 41 46 49 53

Sources: US Census Bureau; Economist Intelligence Unit.

5

HealthCare Scenario in Bangalore:

Health care business in Bangalore is well developed, but definitely is not in a matured and saturated

state. Considering the developments in Bangalore there is still a lot of space for new players to

effectively cater to the needs of the metro city.

To ascertain the above said assumption an analysis has been made and factors’ strengthening the logic

has been given below.

A smooth transition from a city of 4 million to 10 million within a span of 10 years.

A complete change in spending pattern and lifestyle in different socio-economic classes.

Developmental transition of different socio-economic classes.

Increase in lifestyle related disease, lack of information & awareness about lifestyle modification

and medication.

Need for newer players in existing as well as newer areas to cater to the needs of growing

population.

Need for newer players in existing areas considering proximity as a major factor in choosing a

Healthcare centre.

Existing Players in Bangalore:

Government Private Corporate

Jayadeva Apollo Hospitals BEL

TB Centre Fortis Hospital BHEL

Vanivillas BGS Global BEML

Wockhardt Hospital HMT

Manipal Hospitals HAL

Columbia Asia

6

Objective of the Project:

To establish a general diagnostic centre with clinical focus on women & child care and a special focus on

Infertility management, catering to the need of middle & upper middle class of population.

The rationale behind starting a Diagnostic centre with clinical establishment is to provide preventive

health to women who are the most integral part of our society.

Name of the Project: Dr Gayathri’s Women & Child Care Centre

Prelude about Promoters:

The promoters has got over three decades of experience in the field of Health care and Varalaksmi

Nursing Home headed by Dr MNR.Gowda and Dr Gayathri Devi has been a landmark in health care

sector for the middle class in the areas of Rajaji Nagar, Malleshwaram etc.,

With their vast experience this new initiative by the group with Diagnostic & Women health care as

focus in the geographical domain will be great boon.

Promoters Profile:

Mr. Ajay R. Gowda

• Qualification – B.Sc., M.B.A. (Ohio University)

• Designation – Chief Finance Officer – Varalakshmi Nursing Home.

• Mr. Ajay is a young budding entrepreneur. He has completed his M.B.A. from Ohio University

(U.S.A) in 2004. Since then he has been working in the health care industry. He is working as the

chief finance officer of Varalakshmi Nursing Home since the past four years and hence garnered

a lot of knowledge and experience in health care management. Apart from working as the CFO

in Varalakshmi, he was also the C.E.O. of Ambika College and school of nursing.

• He is a hard working individual who gives his hundred percent in any task he undertakes.

• Now he intends to use his zeal and youthful enthusiasm in starting a new venture.

7

Dr. M.N.R. Gowda

• Qualification – M.B.B.S. D.A.

• Designation – Managing Director Varalakshmi Nursing Home.

Chairman – Ambika Educational Institutions.

• Dr. Gowda is one of the profound names in the health care industry. He is one of the pioneers in

this industry, establishing Varalakshmi Nursing Home thirty years ago when hospitals were far

and few. He has been the managing director of Varalakshmi Nursing home from past thirty years

and has taken the hospital from strength to strength, so much so that Varalakshmi Nursing

Home is a landmark in Bangalore.

• Apart from being the managing Director of Varalakshmi Nursing Home, Dr. Gowda was also the

Chairman of Ambika Educational Institutions, a Nursing college and school. Under his guidance

the institution grew from strength to strength during the past 10 years and it is one of the most

well known institutions in Bangalore.

• In his vast experience of 30 years in hospital and health care management Dr. Gowda’s

knowledge and vision in this industry is profound and now he intends to use his experience in a

new venture.

Dr. Gayathri Devi R.

• Qualification – M.B.B.S., M.D., D.G.O. (Obstetrician & Gynaecologist)

• Designation – Chief Obstetrician & Gynaecologist, Varalakshmi Nursing Home.

• Dr. Gayathri is one of the most well-known and popular obstetrician & gynaecologists in

Bangalore; she’s a pioneer in the women health care sector. She has been working as a

obstetrician & gynaecologist since the past 30 years and today is one of the senior most

gynaecologists in Bangalore.

• She has been working at Varalakshmi Nursing Home since the past 30 years, which is one of the

most popular and oldest hospitals in Bangalore; she is the sheet anchor and the main revenue

source for the hospital today. She has performed countless deliveries and other procedures in

her vast experience of 30 years; she also has a vast experience in the field of infertility. She has

contributed enormously to the cause of women health care and hence one of the most sought

after doctors by women in Bangalore.

• Now she intends to use her vast experience to further help in the cause of women health care.

8

Business Plan:

Place of Operation: Rajaji Nagar

Market of Operation:

Area’s from which the customers can be expected, considering proximity as an factor of

expectation:

Rajaji nagar

Gayathri nagar

Prakash nagar

Basaweshwara nagar

Malleshwaram

West of Chord Road

Srirampura

Socio-Economic Classification:

A socio-economic classification is done in the area of operation and also in the area of coverage

based on the assumptive factors such as

Proximity from commercial hub of the metro

Proximity from the industries in the metro

Facilities available in the area

Competitors

Cost of essential commodities

Availability of Niche & luxury products

Commercial establishments

Type

Brands

9

Based on the factors mentioned it is assumed that

Population available in the area of operation is largely middle class and lower middle class

groups.

Population available in the area of coverage is largely upper middle class and also middle class.

Class Factors

Lower Middle Class Area with small petty shops and small commercial

establishments

Middle Class Area with good departmental stores & Middle level commercial

establishments

Upper Middle Class Area with brand stores & corporate offices of organizations.

Competitors:

Competitor’s information & Analysis is an important part of Business plan. An emphasis on Competitor

analysis gives an additional insight about the market and also helps in creating a strategy for the project.

Competitors Information:

Kanva diagnostic centre

Isha diagnostic centre

Theresa Hospital

Sughuna Hospital

Panacea Hospital

Ashish Hospital

Gurukrupa Hospital

Pristine Hospital

Ananya Hospital

Vatsalya Infertility Centre

Ankur IVF centre

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Competitor Analysis:

The objective to do a Competitor analysis is to determine

Whether the Project would be profitable in the area of operation

Whether the competitors could survive with their strategy

What strategy can be made for that socio-economic group of population

Whether the services planned by competitors has a gap

If so whether that can be filled up by the project to cater to the need of that socio-economic

group in the market of operation.

Whether the Bio-Medical Competency planned is sufficient

Above all to know the feasibility of the project.

To analyze the competitors and their strategy first we need to categorize them and then determine our

stand.

Categorization of the competitors in the market of operation is done based on the segment to which

they cater.

Hence competitors are categorized into Diagnostic centre, Hospitals and IVF Centre's.

Diagnostic Centre: Catering to the need of all segment of patients with a focus on diagnosis. (i.e.,

Investigation Based)

Hospitals: Catering to the need of all segment of patients with a clinical focus. (i.e., Investigation as well

as treatment based)

IVF Centre’s: Catering to the need of specific segment of infertile patients with a focus on treatment for

infertility.

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The common gap among the competitors is that their target customer focus is not specific towards

women’s health and their operational focus (i.e., focus on any particular aspect of health) is either too

wide (Diagnostic & Hospitals – Either only diagnosis or only treatment) or too narrow (IVF Centre’s).

Thus we can come to a conclusion that a diagnostic centre with clinical focus on women & child health

and with a special focus on Infertility management which is the objective of the project would be

definitely a success.

Services Planned: Services planned below are based on the knowledge obtained from competitors’

analysis with the expertise available leading to the objective of the project.

Diagnostic services (For Men & Women)

X-Ray

Scans

Bone Densitometry

Biochemistry

Master Health Plans (For Men, Women & Children)

Clinical Services

Endocrinology

Gynecology

Infertility

Pediatric service

Category Focus Gap

Diagnostic Centre Men, Women & Children – Focus on

diagnosis

Not Specific for Women health and

only diagnosis

Hospitals Men, Women & Children – Focus on

clinical practice

Not specific for Women health and

only clinical focus

IVF Centre’s Men & Women – Focus on Infertility Specific but only on Infertility

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Infrastructure Plan:

Type of place Leased Premises

Total Area 3098 Sq. ft

Buildup Area 6067 Sq. ft

Amenities Lift (6 Passenger), Three phase, Generator, etc.,

Building Approval Premises Leased

Business Approval NA

Floor Plan:

Ground Floor Plan First Floor Plan Second Floor Plan

Enquiry Desk Operation Theatre Deluxe ward

Reception Sterilization zone Executive Ward

Cash counter Preop. Preparation room General Ward

Consultation chambers Labor ward

Diagnostic area Post Operative Rehab. Room

Pathology lab Andrology

Biochemistry lab Semen Collection room

X-Ray Dept. Specialized scans

Bone Densitometry

Scan room

Pharmacy

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Plan for Wards & Beds:

Room Type No. of Beds

Deluxe rooms 4

Executive rooms 8

General Wards 8

Total 20

Man Power Planning:

Technical – Medical

Specialty Numbers

RMO 1

Pathologist 1

Radiologist 1

Gynecologist 1

Embryologist 2

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Technical –Para Medical:

Paramedical & Nursing Numbers

Radiographers 3

X-Ray Technician 4

Phlebotomist 2

Nursing Superintendent 1

OT Nurse 6

Nursing Station In charge 3

Nursing Staffs 8

Sr. Pharmacist 1

Jr. Pharmacist 2

Non-Technical – Admin.:

Admin. & Marketing Numbers

MD 1

Assistant Manager 1

Materials & IT 2

Accountant 1

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Clerical, Stores 2

Receptionist, Front office, Billing 4

Telephone operator 2

PRO 1

Marketing Manager 1

Marketing Executive 3

Non-Technical – Others:

Non-Technical staffs Numbers

Electrician 2

Civil maintenance staff 1

Air-Conditioner technician 1

Plumbers 1

Ambulance Driver 2

Housekeeping Supervisors 2

Housekeeping Staffs 20

CSSD In charge 1

CSSD asst. 1

16

Security In charge 1

Security Guards 6

Bio-Medical Competency:

IVF Lab Numbers

IVF Workstation L242 1

ROL 1

SMZ 800 1

Integra 1

Laminar Air Flow 1

Microscope 1

HB 1

Remi 1

Malker 1

Cl 2200 1

Coda 1

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Diagnostic Lab Numbers

Fully Auto Clinical Chem. Analyzer 1

5 Part Fully Auto Hematology 1

Electrolyte System 1

Immunoassay System 1

Nephelometer 1

Urine Analyzer 1

Olympus Microscope 1

Equipments Numbers

Cardiology ECG (GE MAC 1200) 1

Echo (GE Vivid S5 Premium) 1

Fetal Monitor 1

Bone Density 1

Stress Test TMT (GE MAC 5500) 1

Surgical Equip. Boyles Apparatus 1

Colposcope 1

Laproscope 1

Hystoscope 1

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Financial Report

IVF CENTRE PROJECT, BANGALORE

COST OF PROJECT AND MEANS OF FINANCE

Cost of Project Rs.

lacs

Cost of Land 0.00

Built up cost :- civil, Electrical & Interior ( medical furniture not 100.00

included)

Medical Equipments 333.88

Non Medical - HVAC & Fire Safety 0.00

(Assumed to be included in cost of construction )

Non-medical( software & hardware, Water Treatment

plant and Ambulance ) 9.00

Preliminary & Preoperative Expenses (@ 1.5% ) 6.64

Marketing exp. 5.00

Interest during Construction(IDC) 46.50

Working Capital requirement margin 21.61

Upfront Fee 1% 4.43

527.06

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3

Financial Report

MEANS OF FINANCE

Promoters Contribution 212.06

Unsecured Loan -

Debt 315.00

527.06

Working Capital requirement

Inventory & Exp. (30 days) 45.34

Sundry Debtors (30 days) 41.10

86.44

Margin at 25% 21.61

Bank WC Loan 64.83 =

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Financial Report

INVESTMENT

Rs. In

SN PARTICULARS Lacs

1 LAND & BUILDING 100.00

2 MEDICAL EQUIPMENTS 333.88

NON-MEDICAL

3 EQUIPMENTS 9.00

PRE-OPERATIVE

4 EXPENSES 6.64

5 MARKETING EXPENSES. 5.00

MARGIN FOR WORKING

6 CAPITAL 21.61

INTEREST DURING 46.50

7 CONSTRUCTION PERIOD

8 UP FRONT FEE 4.43

TOTAL 527.06

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Financial Report

PROFITABILITY – PROVISIONAL

RS. IN LACS

SN PARTICULARS I II III IV V

822.05 959.06 1096.07 1233.07 1233.07 1.00 REVENUE

570.31 660.71 774.94 865.90 869.53 2.00 OPERATING COSTS

251.74 298.35 321.13 367.17 363.55 3.00 OPERATING MARGIN

44.89 35.44 25.99 16.54 7.09 4.00 FINANCIAL COST

206.85 262.91 295.14 350.63 356.46 5.00 PBDT

29.46 29.46 29.46 29.46 29.46 6.00 DEPRECIATION

177.39 233.45 265.68 321.17 327.00 7.00 PROFIT/(LOSS) BEFORE TAX

53.38 77.04 91.53 114.14 118.25 8.00 TAX

124.01 156.41 174.15 207.03 208.75 9.00 PROFIT/(LOSS) AFTER TAX

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Financial Report

IMPORTANT POINTS

Rs. In Lacs

SN PARTICULARS I II III IV V

26.35

1.00 CAPITAL COST PER BED

20

NUMBER OF BEDS

0.11 0.13 0.15 0.17 0.17 2.00 REVENUE PER BEDday

0.08 0.09 0.11 0.12 0.12 3.00 OPERATING COST PER BEDday

4.00 AVERAGE LENGTH OF STAY 5.00 DAYS

Number of Beds 20.00

Available Bed days in a Year 7,300.00

Occupancy 100.00

Average Length of stay 5.00

No of admissions 1,460.00

Total no of days - IP 365.00

Total no of days - OP 300.00

23

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Financial Report

Notes:

1. The cost of construction includes the HVAC system, Fire Safety.

2. Patient beds are provided for separately.

3. Non-Medical furniture is provided separately.

4. Inventory & Expenditure Description:

a. (Page 19) = (Total material consumption +variable expenses of 1

st year +salaries expense

+expense on printing and stationary +travel and conveyance +communication cost)/12

b. (Page 26-Projected balance sheet )= Inventory expense for 30 days =45.34 Lakhs

5. Calculation for Sundry Debtors for 30 days (Page 19)= (60% of total income from

the credit patients of 1st

year)/12

CALCULATION OF DEBT SERVICE COVERAGE RATIO

Year-0 Year-1 Year-2 Year-3 Year-4 Year-5

Net Operating Income

( earnings before Interest 0 222.28 268.89 291.67 337.71

334.09

and income tax)

Debt Service ( Interest + 0.00 107.89 98.44 88.99 79.54 70.09

Loan)

DSCR Ratio 0.00 2.06 2.73 3.28 4.25 4.77

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Financial Report

PROFIT & LOSS STATEMENT

Rs in lacs>>>>>>>>

Year 1 Year 2 Year 3 Year 4 Year 5

Percentage Capacity Utilization 60% 70% 80% 90% 90%

INCOME 35.04 40.88 46.72 52.56 52.56 Bed Revenue

769.82 898.12 1,026.43 1,154.73 1,154.73 Department/OT Revenue

17.19 20.06 22.92 25.79 25.79 Pharmacy Revenue

822.05 959.06 1,096.07 1,233.07 1,233.07 INCOME TOTAL(A)

EXPENSES

Variable Costs

163.92 191.24 218.56 245.88 163.92 Consumables

243.13 283.66 324.18 364.70 243.13 Doctors/Surgeon Fees

8.76 10.22 11.68 13.14 8.76 Food

17.94 20.93 23.92 26.91 17.94 Water, Power & medical gas

6.91 8.06 9.21 10.36 10.36 Laundry

2.39 2.79 3.19 3.59 2.39 Linen

Housekeeping 4.38 5.11 5.84 6.57 6.57

Waste disposal 0.88 1.02 1.17 1.31 1.31

CSSD 3.60 3.96 4.36 4.79 5.27 16.69 16.69 16.69 Bio-medical-AMC(5% on ME cost) 0.00 0.00

2.21 2.21 8.86 8.86 8.86 Repairs & maintenance-0.5%

454.12 529.20 627.65 702.81 703.29 Sub Total

Fixed Costs

72.50 84.59 96.67 108.76 108.76 Salaries & Wages

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Financial Report

Printing & Stationery (Rs.25000/-Month) 3.00 3.30 3.63 3.99 4.39

Travel & Conveyance (01 lac/mth) 12.00 13.20 14.52 15.97 17.57

Communication Costs (Rs.20000/- month) 2.40 2.64 2.90 3.19 3.51

Business Promotion 1.00 1.10 1.21 1.33 1.46

3.32 3.32 3.32 3.32 3.32 Insurance

5.00 5.50 6.05 6.66 7.32 Marketing Expenses

1.33 1.33 1.33 1.33 1.33 Preliminary Exp. Written off.

10.19 10.19 10.19 10.19 10.19 IDC written Off + upfront fee

5.45 6.34 7.47 8.36 5.45 Miscellaneous (at 1% of above)

116.19 131.50 147.29 163.10 116.19 Sub-Total

570.39 660.71 774.94 865.90 570.39 EXPENSE TOTAL (B)

251.74 298.35 321.13 367.17 363.55 EBITD(A-B)

29.46 29.46 29.46 29.46 29.46 Depreciation

44.89 35.44 25.99 16.54 7.09 Interest

177.39 233.45 265.68 321.17 327.00 EBT

177.39 410.84 676.52 997.69 1,324.69 Cumulative

53.38 77.04 91.53 114.14 118.25

Less: Tax

124.01 156.41 174.15 207.03 208.75 EAT

0.00 0.00 0.00 0.00 Less: Dividend paid

124.01 156.41 174.15 207.03 208.75

124.01 280.43 454.58 661.61 870.35 Cumulative Balance of EAT

15 16 16 17 17

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Financial Report

PROJECTED CASH FLOW as at

Rs. Lacs >>>>>>

Year

Const Year 1 Year 2 3 Year 4 Year 5

SOURCES OF FUNDS

0.00 25.86 119.90 243.62 381.94 555.07 OPENING CASH/BK BALANCE

0.00 124.01 156.41 174.15 207.03 208.75 NET PROFIT

0.00 29.46 29.46 29.46 29.46 29.46 Depreciation

0.00 1.33 1.33 1.33 1.33 1.33 Preliminary exp. Written off

0.00 10.19 10.19 10.19 10.19 10.19 IDC written off+ upfront fee

212.06 0.00 0.00 0.00 0.00 0.00 Promoters Contribution

315.00 0.00 0.00 0.00 0.00 0.00 Term Loans - taken/(paid)

0.00 78.49 2.28 2.28 2.28 0.00 Increase in Current Liabilities

527.06 269.34 319.57 461.02 632.22 804.79 T O T A L

APPLICATIONS OF FUNDS

6.64 0.00 0.00 0.00 0.00 0.00 Prel Exp Paid

51.68 0.00 0.00 0.00 0.00 0.00 Interest during Construction

442.88 0.00 0.00 0.00 0.00 0.00 Fixed Assets bought

0.00 0.00 0.00 0.00 0.00 0.00 Purchase of land

0.00 86.44 12.94 16.09 14.15 0.07 Current Assets

0.00 63.00 63.00 63.00 63.00 63.00 Repayment of Term Loan

0.00 0.00 0.00 0.00 0.00 0.00 Dividends paid

501.20 149.44 75.94 79.09 77.15 63.07

25.86 119.90 243.62 381.94 555.07 741.71 Add: Closing CASH/BK BALANCE

527.06 269.34 319.56 461.03 632.22 804.78 T O T A L

27

PROJECTED BALANCE SHEET As At Rs Lacs >>>>>

Constn Year 1 Year 2 Year 3 Year 4 Year 5

SOURCES OF FUNDS

212.06 212.06 212.06 212.06 212.06 212.06 Promoters Contribution

0.00 124.01 280.43 454.58 661.61 870.35 Reserves & surplus

315.00 252.00 189.00 126.00 63.00 0.00 Secured loans

527.06 588.07 681.49 792.64 936.67 1,082.41 T O T A L

APPLICATIONS OF FUNDS 442.88 442.88 442.88 442.88 442.88 442.88 Fixed Assets

0.00 0.00 0.00 0.00 0.00 0.00 Cost of Land

29.46 58.92 88.38 117.84 147.30 less : Depreciation

442.88 413.42 383.96 354.50 325.04 295.58 a >

6.64 58.32 46.81 35.29 23.78 12.26 Preliminary Expenses

IDC (Interest During

Construction 51.68 0.00 0.00 0.00 0.00 0.00 Period)

0.00 11.51 11.51 11.51 11.51 11.51 less : Written off

58.32 46.81 35.29 23.78 12.26 0.75 b >

Current Assets 0 41.10 47.95 54.80 61.65 61.65 Sundry Debtors

0 45.34 51.42 60.66 67.96 68.04 Inventory (30-days)

25.86 119.90 243.62 381.94 555.07 741.71 Cash & Bank

25.86 206.34 343.00 497.41 684.69 871.40 i >

L e s s :

Current Liabilities 0.00 65 65 65 65 65 Bank WC loan

28

27

Financial Report

0.00 13.66 15.94 18.21 20.49 20.49 Sundry Creditors

0.00 0.00 0.00 0.00 0.00 0.00 Provisions & Creditors

0.00 78.49 80.77 83.04 85.32 85.32 ii >

Net Current Assets (i-ii)

25.86 127.85 262.23 414.36 599.37 786.08 c >

527.06 588.08 681.48 792.64 936.67 1082.41 T O T A L (a + b + c )

ROOM REVENUE-WORKINGS

No. of In-Patient beds 20

NO. OF DAYS 365

CAPACITY 100%

ROOM CATEGORY NO. RATE PER TOTAL REVENUE

OF BED DAY (RS.) PY @ 100%

BEDS OCCUPANCY

GENERAL WARD 8 500 1,460,000

SINGLE ROOM 8 750 2,190,000

Delux Room 4 1500 2,190,000

TOTAL 20 5,840,000

Rs. In Lacs >>>

YEAR-ON-YEAR ESTIMATE YEAR-1 YEAR-2 YEAR-3 YEAR-4 YEAR-5

CAPACITY(%) 60% 70% 80% 90% 90%

ROOM REVENUE ESTIMATE @ STATED 35.04 40.88 46.72 52.56 52.56

CAPACITY

29

13

Financial Report

DEPARTMENT REVENUE-WORKINGS

Number of Beds 20

Available Bed days in a Year 7300

Occupancy 100 %

Average Length of stay 5 days

No of patients 1460

Total no of days - IP 365

Total no of days - OP 300

Total

Yearly Avg Rate per case income(Rs.

Department Productivity(Nos.) @ Yearly Income(Rs.) ) @

(Rs.)

100%

100%

capacity

IP OP IP OP IP OP

OPD Consultation 0 9,000 0 300 - 2,700,000 2,700,000

Health Check-up 0.00 450 0.00 2,000.00 - 900,000 900,000

No of patients(Admission Fees) 1,460 0 200.00 0.00 292,000 - 292,000

Laboratory(Biochemistry/Haemot

olo 14,600 9,000 275.00 250.00 4,015,000 2,250,000 6,265,000

gy/Microbiology)

IVF 0.00 60.00 0.00 60,000.00 - 3,600,000 3,600,000

ICSI 0.00 60.00 0.00 80,000.00 4,800,000 4,800,000

Radiology & Imaging -

X-Ray 365 450 220.00 200.00 80,300 90,000 170,300

Ultrasound Sonogram 146 3,000 770.00 700.00

30

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Financial Report

112,420 2,100,000 2,212,420

Mamography 600 1,000.00 - 600,000 600,000

Cardiology Tests -

ECG 584 450 275.00 250.00 160,600 112,500 273,100

3D-ECHO 730 1,500 2,750.00 2,500.00 2,007,500 3,750,000 5,757,500

Stress test 365 600 2,200.00 2,000.00 803,000 1,200,000 2,003,000

Fetal Monitor Test 0 600 0.00 200.00 - 120,000 120,000

Dressing procedure 0 600 0.00 100.00 - 60,000 60,000

Operation Theatre Complex -

Normal Delivery(package) 1,095 20,000 -

Room Rent 0.00 - -

Labour room charges 6,000.00 - 6,570,000 - 6,570,000

Consumables(including

pharmacy) 6,000.00 - 6,570,000 - 6,570,000

Surgeon Fees 8,000.00 - 8,760,000 - 8,760,000

LSCS(package) 1,095 40,000 -

Room Rent 0.00 - -

OT Charges 8,000.00 8,760,000 8,760,000

Consumables(including

pharmacy) 12,000.00

30

31

Financial Report

13,140,000 13,140,000

Surgeon Fees 15,000.00 16,425,000 16,425,000

Anaesthetists Charges 5,000.00 5,475,000 5,475,000

Laproscopic surgery 730 30,000

Surgeon's Charges 10,000.00 10,950,000 10,950,000

Anaesthetists fee 3,000.00 3,285,000 3,285,000

OT Charges 8,000.00 8,760,000 8,760,000

Consumables 9,000.00 9,855,000 9,855,000

Pharmacy 7,300 4,500 300 150 2,190,000 675,000 2,865,000

Total 108,210,820.00 22,957,500.00 131,168,320.00

Rs. In Lacs>>>>>


Capacity (%) 60% 70% 80% 90% 90% 876 1,022 1,168 1,314 1,314

No. of admissions at stated capacity

769.82 898.12 1,026.43 1,154.73 1,154.73 Dept./OT revenue @ stated capacity

17.19 20.06 22.92 25.79 25.79 Pharmacy

32

31

Financial Report

LIST OF SPECIALTIES

OBG &Gynecology Maternity

Fertility IVF LAB( IVF & ICSI)

Radiology dept.

X-Ray

Ultrasound

Mammogram

Laboratory Dept:

Diagnostic Centres Micro- biology

Immunology

Bio-chemistry

Cardiology Dept:

ECG

TMT

Echo

Pharmacy Pharmacy

33

Financial Report

BED MATRIX:-

BED CATEGORY BREAK-UP OF BEDS NO. OF BEDS % ON TOTAL

BEDS

WARD GENERAL WARD 8 40

SINGLE ROOM 8 40

DELUX 4 20

TOTAL BEDS 20 100

OT GENERAL/MATERNITY 1

TOTAL OT 1

NON COUNT BEDS PRE/POST LABOUR 1

PRE OPERATIVE 1

POST OPERATIVE 1

DELIVERY SUITE 1

TOTAL NON COUNT BEDS 4

34

Financial Report

EXPENSE ESTIMATES

MANPOWER PLANNING

MONTHLY MONTHLY SALARY SALARY SALARY PER YEAR

DESIGNATION/POSITIONS (RS.) NUMBERS (RS.) (RS.)

Medical Administration

MD 40,000.00 1 40,000 480,000.00

Full Time Doctors (1::4)

RMOs 25,000.00 1 25,000 300,000.00

Pathologists 30,000.00 1 30,000 360,000.00

Radiologist 30,000.00 1 30,000 360,000.00

Gynecologist 50,000.00 2 100,000 1,200,000.00

Embrologist 90,000.00 1 90,000 1,080,000.00

Nursing

Nursing Superintendent 20,000.00 1 20,000 240,000.00

OT Nurse (6 nurse for every OT ) 10,000.00 6 60,000 720,000.00

Nursing station incharge (3 nursing

stations) 12,000.00 3 36,000 432,000.00

Nursing staffs 8,000.00 8 64,000 768,000.00

Paramedical

Radiographers 20,000.00 3.00 60,000 720,000.00

Lab techincian 8,000.00 4.00 32,000 384,000.00

Phlebotomist 10,000.00 2.00 20,000 240,000.00

Administration

Assistant Managers:-Front office &

Billing/Materails/IT 10,000.00 3.00 30,000 360,000.00

Accountants 8,000.00 1.00 8,000 96,000.00

Clerical, Stores etc. 5,000.00 2.00 10,000 120,000.00

Receptionists, Front Ofice, Billing 6,000.00 4.00 24,000 288,000.00

35

34

Financial Report

Telephone Operator 5,000.00 2.00 10,000 120,000.00

PRO 8,000.00 1.00 8,000 96,000.00

Pharmacy

Sr. Pharmacist 15,000.00 1.00 15,000 180,000.00

Jr. Pharmacist 6,000.00 2.00 12,000 144,000.00

Security Control

Security In-charge 12,000.00 1.00 12,000 144,000.00

Security guards 5,000.00 6.00 30,000 360,000.00

Maintenance

Electrician 6,000.00 2.00 12,000 144,000.00

Civil maintenance staff 8,000.00 1.00 8,000 96,000.00

Air-Conditioner technician 12,000.00 1.00 12,000 144,000.00

Plumbers 6,000.00 1.00 6,000 72,000.00

Drivers

8,000.00 2.00 16,000 192,000.00 Ambulance & driver pool

Housekeeping

Housekeeping supervisiors 5,000.00 2.00 10,000 120,000.00

Housekeeping Staffs 2,000.00 20.00 40,000 480,000.00

Marketing

Marketing mgr 25,000.00 1.00 25,000 300,000.00

Marketing executive 10,000.00 3.00 30,000 360,000.00

CSSD

CSSD in charge 8,000.00 1.00 8,000 96,000.00

CSSD asst 4,000.00 1.00 4,000 48,000.00

97.00 1,007,000.00 12084,000.00

36

Financial Report

DEPARTMENT EXPENSES

Consumables Doctor's Fee

% of

Department Inco

Income(Rs.) me Expense % of inc Expense Total

2,700,000.00 2% 54,000.00 80% 2,160,000.00 2,214,000.00 OPD Consultation

Laboratory(Biochemistry/Haemoto 6,265,000.00 35% 2,192,750.00 0% 0.00 2,192,750.00 logy/Microbiology)

170,300.00 30% 51,090.00 0% 0.00 51,090.00 X-Ray

2,212,420.00 10% 221,242.00 20% 442,484.00 663,726.00 Ultrasound Sonogram

273,100.00 20% 54,620.00 0% 0.00 54,620.00 ECG

5,757,500.00 10% 575,750.00 0% 0.00 575,750.00 3D-ECHO

2,003,000.00 2% 40,060.00 0% 0.00 40,060.00 Stress test

120,000.00 0% 0.00 20% 24,000.00 24,000.00 Fetal Monitor Test

600,000.00 5% 30,000.00 20% 120,000.00 150,000.00 Mamography

900,000.00 0% 0.00 20% 180,000.00 180,000.00 Comprehensive Health Check-up

2,865,000.00 60% 1,719,000.00 0% 0.00 1,719,000.00 Pharmacy

3,600,000.00 20% 720,000.00 20% 720,000.00 1,440,000.00 IVF

4,800,000.00 20% 960,000.00 20% 960,000.00 1,920,000.00 ICSI

60,000.00 10% Dressing 6,000.00 0% 0.00 6,000.00

6

37

Financial Report

Surgeries:

0.00 LSCS

8,760,000.00 Room Rent

13,140,000.00 70% 9,198,000.00 OT charges

16,425,000.00 80% 13,140,000.00 Consumables

5,475,000.00 0.80 4,380,000.00 Surgeon Fees

0.00 Anaesthetists Charges

Normal Delivery(package)

Room Rent

6,570,000.00 Labour room charges

6,570,000.00 70% 4,599,000.00 Consumables

8,760,000.00 80% 7,008,000.00 Surgeon Fees

Laproscopic Surgery

10,950,000.00 80% 8,760,000.00 Surgeon's Charges

3,285,000.00 80% 2,628,000.00 Anaesthetists fee

8,760,000.00 0.00 OT Charges

9,855,000.00 6,898,500.00 0.00 Consumables

27,320,012.00 40,522,484.00 67,842,496.00 Total

38

Financial Report

Rs. Lacs >>>>>>

Year-1 Year-2 Year-3 Year-4 Year-5

Capacity utilization considered 60% 70% 80% 90% 90%

Consumables 163.92 191.24 218.56 245.88 245.88

Dr.Fees 243.13 283.66 324.18 364.70 364.70

38

39

Financial Report

PROPOSED MEDICAL EQUIPMENT DETAILS

S.NO DEPARTMENT EQUIPMENT NAME NO. Rate / unit Total Value

(Rs. In lac) (Rs. In lac)

1 IVF Lab IVF workstatiob L424 1 747500 747500

ROL 1 95000 95000

SMZ 800 1 225000 225000

Integra 1 1750000 1750000

Laminar air flow 1 50000 50000

Microscope 1 32000 32000

HB 1 19500 19500

Remi 1 15500 15500

Malker 1 32000 32000

Cl 2200 1 29000 29000

CODA 1 160000 160000

Total 3155500

2 Diagnostic lab Fully Auto Clinical Chem 1 2912000 2912000

Analyzer

5 Part Fully Auto Hematology 1 1664000 1664000

Cell Counter

Electrolyte System 1 249600 249600

Immunoassay System 1 2184000 2184000

Nephelometer 1 291200 291200

Urine Analyser 1 83200 83200

40

Financial Report

olympus microscope 1 324000 324000

Total 7708000

3 Radiology X - Ray (HF Advantage High 1 900,000.00

Freq) 900,000.00

Portable X-Ray 1 250,000.00

250,000.00

Mamo - Gold seal with flash 1 1,950,000.00

1,950,000.00

Ultrasound Voluson 730 1 3,400,000.00

3,400,000.00

Total 6,500,000.00

4 Cardiology ECG (GE MAC 1200) 1 130,000.00

130,000.00

Echo (GE Vivid S5 Premium) 1 2,000,000.00

2,000,000.00

Fetal Moniter (GE Corometrics 1 190,000.00

172) 190,000.00

Bone Density (GE Achillies) 1 600,000.00 600,000.00

Stress Test TMT (GE MAC 1 1,050,000.00

5500) 1,050,000.00

Total 3,970,000.00

5 Surgical Surgicals Equipments 556,244.00

Equipments 556,244.00

Boyles Appratus 1 179,920.00

179,920.00

Colposcope 1 218,400.00

218,400.00

Laproscope 1 300,000.00

300,000.00

40

41

Financial Report

Hystoscope 1 300,000.00

300,000.00

1,554,564.00

6 0T General/Maternity 1 4,500,000 4,500,000.00

Laparascopy OT 1 2,000,000 2,000,000.00

6,500,000.00

7 Medical patient beds ( normal and ICU LS 2500000 2,500,000.00

Furniture beds),IV stand ,

medicine trolley,etc

8 CSSD 1 2500000 2,500,000.00

Grand Total 33,388,064.00

ME cost 333.88

(lacs)

Non Medical Assets

Software & Hardware 6

Furniture & Fittings 3

Ambulance (with small ventilator and defibrillator) 0

Total Non Medical Assets 9

ME and 342.88064

NME Cost

42

41

Financial Report

REPAYMENT IN 05 YEARS WITH 6 MONTHS SEMESTER & 01 YEAR MORATORIUM

Rs. Lacs >>>>>>

Semester Loan Instalment Interest Outstanding Total

Outstanding Received Paid 15.00

% p.a.

1 315.00 0.00 23.63 315.00 23.63

2 315.00 0.00 23.63 315.00 23.63

3 315.00 31.50 23.63 283.50 55.13 year-1

4 283.50 31.50 21.26 252.00 52.76 year-1

5 252.00 31.50 18.90 220.50 50.40 year-2

6 220.50 31.50 16.54 189.00 48.04 year-2

7 189.00 31.50 14.18 157.50 45.68 year-3

8 157.50 31.50 11.81 126.00 43.31 year-3

9 126.00 31.50 9.45 94.50 40.95 year-4

10 94.50 31.50 7.09 63.00 38.59 year-4

11 63.00 31.50 4.73 31.50 36.23 year-5

12 31.50 31.50 2.36 0.00 33.86 year-5

0.00 0.00 0.00 0.00 0.00

315.00 177.19 492.19

43

Financial Report

DEPRECIATION SCHEDULE (BOOK) SLM BASIS

SUMMARY Rs Lacs >>>>>


Total Fixed Assets

442.88 442.88 442.88 442.88 442.88 442.88

442.88 442.88 442.88 442.88 442.88 442.88

Depreciation

29.46 29.46 29.46 29.46 29.46

Cummulative

Depreciation 29.46 58.92 88.38 117.84 147.30

Closing Block

442.88 413.42 383.96 354.50 325.04


Total Cost

100 100 100 100 100 100

Add: Capitalised Interest

0

Opening Block

100 100 100 100 100 100

Depreciation @ 5.00 %

pa 5 5 5 5 5

Cummulative

Depreciation 5 10 15 20 25

Closing Block

100 95 90 85 80 75

44

Financial Report

Equipment Rs lacs >>>>>


Purchase Cost

333.88 333.88 333.88 333.88 333.88 333.88


0.00

Total Fixed Assets

333.88 333.88 333.88 333.88 333.88 333.88


pa 23.61 23.61 23.61 23.61 23.61

Cummulative

Depreciation 23.61 47.21 70.82 94.42 118.03

Closing Block

333.88 310.28 286.67 263.06 239.46 215.85

Non-medical Rs crores >>>>>


Purchase Cost

9.00 9.00 9.00 9.00 9.00 9.00


0.00

Opening Block

9.00 9.00 9.00 9.00 9.00 9.00


pa 0.86 0.86 0.86 0.86 0.86

Cummulative Dep

0.86 1.71 2.57 3.42 4.28

Closing Block

9.00 8.15 7.29 6.44 5.58 4.73

45

44

Financial Report

TAXATION PROVISION

Rs.Lacs >>>>>>

Tax at Normal Rates


177.39 233.45 265.68 321.17 327.00

PBT

29.46 29.46 29.46 29.46 29.46

Add: Book Depreciation

206.85 262.91 295.14 350.63 356.46

PBT + Book Dep

Less : Unabsorbed Depreciation 0.00 0.00 0.00 0.00 0.00

(IT)

I T Depreciation (Current 60.98 52.38 45.01 38.70 33.29

Yr)

145.87 210.54 250.12 311.93 323.17

PBT Less I T Dep

53.38 77.04 91.53 114.14 118.25

TAX @ 36.59 % - Normal rates (A)

Unabsorbed Depreciation (IT) Rs.Lacs>>>>>>


Opening Balance 0.00 0.00 0.00 0.00 0.00

60.98 52.38 45.01 38.70 33.29

I T Depreciation (Current Yr)

60.98 52.38 45.01 38.70 33.29

Less :

206.85 262.91 295.14 350.63 356.46

PBT + Book Dep

0.00 0.00 0.00 0.00 0.00

Closing Balance (c/fwd)

46

Financial Report

DEPRECIATION SCHEDULE - INCOME TAX - WDV BASIS SUMMARY Rs lacs >>>>>


442.88

Total Fixed Assets

442.88 442.88 381.90 329.52 284.51 245.80 Opening Block

60.98 52.38 45.01 38.70 33.29 Depreciation

442.88 381.90 329.52 284.51 245.80 212.51 Closing Block

Building Development Rs lacs >>>>>


100.00

Purchase Cost

0.00


100.00 100.00 90.00 81.00 72.90 65.61 Opening Block

% 10.00 9.00 8.10 7.29 6.56 Depreciation @ 10.00 pa

100.00 90.00 81.00 72.90 65.61 59.05 Closing Block

Equipment Rs Lacs >>>>>


333.88

Purchase Cost

0.00


333.88 333.88 283.80 241.23 205.04 174.29 Opening Block

% 50.08 42.57 36.18 30.76 26.14 Depreciation @ 15.00 pa

333.88 283.80 241.23 205.04 174.29 148.14 Closing Block

46

47

Financial Report

Non-Medical including

Furniture and Fittings Rs lacs


9.00

Purchase Cost

0.00


9.00 9.00 8.10 7.29 6.56 5.90 Opening Block

% 0.90 0.81 0.73 0.66 0.59 Depreciation @ 10.00 pa

9.00 8.10 7.29 6.56 5.90 5.31 Closing Block

IRR Calculation:

Const Year 1 Year 2 Year 3 Year 4 Year 5

Earnings before int.dep.tax (527.06) 251.74 298.35 321.13 367.17 363.55

IRR 49%

IRR on Debt Component

Const Year 1 Year 2 Year 3 Year 4 Year 5

Earnings Before Interest and

Tax (315.00) 222.28 268.89 291.67 337.71 334.09

IRR 78%

IRR on Equity

Earnings after tax (212.06) 124.01 156.41 174.15 207.03 208.75

IRR 66%

project report

Documents

charge cssd

varalakshmi

projected

upper middle

child care

women health

health care

tax irr irr