Diagnostics Center Market in Ahmedabad

A PROJECT REPORTON

A STUDY ON DIAGNOSTIC CENTRE IN AHMEDABAD

PROJECT GUIDED BY Mr. MIKIN SHAH MS. CHARMI SHAH

SUBMITTED TOSHRI CHIMANBHAI PATEL INSTITUTE OF MANAGEMENT AND RESEARCH

SUBMISSION DATE 15TH MARCH 2010

SUBMITTED BY DHRUVI SHAH (100) FARNAZ SAIYED (92) MBA (SEM-IV)

A STUDY ON DIAGNOSTIC CENTRE IN AHMEDABAD

PREFACE

Knowledge and human power are synonyms, Once said the great philosopher Francis Bacon. However based on the experience within todays global market, he would probably say, The ability to capture, communicate & leverage knowledge to solve problems is human power. This raises the question how exactly one can best capture, communicate & leverage knowledge, especially within world of system engineering.

As a part of this MBA degree, students have to undergo a project, which is designed keeping the prerogative and preferences of industry in mind. This particular project allows a student to implement what they have learned within organization.

Practically study, knowledge and learning can only be useful to become more eligible and competitive. Due to this point of view each and every student of M.B.A. has to prepare MEGA PROJECT as per Gujarat University norms, which is really helpful to the students for making their bright career.

We consider our self very fortunate that we got an opportunity to work on a study of Diagnostic Centre in Ahmedabad. Under the guidance of Ms Charmi Shah, Faculty of CPIMR.

ACKNOWLEDGEMENT

It is said success is a journey. The same is applicable to us during the success completion of our project. We have come across many persons who helped us all possible ways. We would like to express as immense sense of gratitude to all of them.

We heartily, thank college who has provided us this wonderful opportunity of making a project report. This opportunity has made us have a deep insight of the practical use of financial models that we have studied during the course of MBA.

We are very grateful to Ms. Chami Shah, faculty of CPIMR, whose guidance, suggestions and help boost the interest for this work. The valuable ideas, recommendation and response are simply adorable.

Sincere efforts have been made to make our endeavours worth studying and interpreting. However we welcome helpful suggestions.

DHRUVI SHAH (100)FARNAZ SAIYED (92)

TABLE OF CONTENT

SR.NO.TOPICPAGE NO.

1EXECUTIVE SUMMARY7

2Introduction9

3History17

4Five force model21

5SWOT analysis24

6Research methodology26

7Data analysis29

7.1Primary data30

-Findings 40

7.2Secondary data41

-Common size statement42

-Trend analysis 52

-Horizontal analysis57

-Findings77

-Ratio analysis78

8Future forecasting95

9Recommendation98

10Conclusion100

11Bibliography102

12Annexure104

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

There are many Diagnostic Centre in Ahmedabad that provides various services to the patients. Some of these services are computed radiology, ultrasoundand full body computed tomography scanning including cardiac immiging. Earlier laboratories were helpful for such diagnostic services, but from last two or three years there has been a sudden change and that is because of new concept that is Diagnostic Centre. The Diagnostic Centre gives instant and better services to the patients. Diagnostic Centre is modernized and has different equipment and technology from which the people can be benefited. We have done the study of 5 Diagnostic Centres of which 3 are public and 2 are private centres. We have done a comparative study between the centres for financials, services provided, analysis of reports, etc. We have considered the advantages of the Diagnostic Centre and the limitations of the study. We have prepared horizontal analysis, common size statement, trend analysis of Balance Sheet and Profit and Loss Account of Piramal, Religare and Apollo Diagnostic Centre.Our study is based on primary as well as secondary data. Based on the data available we have done comparative analysis for different Diagnostic Centre.Through the study, we are trying to find out the current market scenario of the Diagnostic Centre, and we have tried to find out which Diagnostic Centre is profitable for the year.

INTRODUCTION

INTRODUCTIONDiagnostic Services Industry

Since health care is dependent on the people served, Indias huge population of a billion people represents a big opportunity. And its the middle income group, which forms a large 250 million that the international groups are targeting, besides patients due to medical tourism. Estimates say that while the proportion of households in the low income group has declined significantly, middle and higher income group has increased from 14 to20percent. With the demand for health care far exceeding supply, the industry has transformed to a USD 23million industry, which is surging ahead with a growth rate of 13percent a year. While the general belief is that private health care spending in India contributes to 60 percent of the countries health care services, the World Bank report, 2004 has pegged it at 82 percent. Besides, the unmet demand, labour comes cheap in India. CII-Mckinsey report on Indias health care industry, opines the world stand up and take notice of the immense opportunities that were lying unutilised in the Indian health care industry.

Diagnostic services: Radiology:Radiography is the term for a general x-ray exam that captures clear, precise images using radiation. Radiation, a form of energy, exists in nature and emanates from the atmosphere and earth. As with many naturally-occurring substances, radiation, in moderation, is considered harmless. X-ray beams can pass through the human body. When they strike a detector, they produce a picture. Traditional film-based exams have been replaced by digital imaging in many cases. Digital radiography requires no film processing. Test results can be viewed seconds after the exposure is made. 64 Slice CT:As the first in the Mid-South to introduce the Light Speed VCT 64-Slice Scanner, this impressive technology's incredible speed and high quality images provide significant advancements in diagnostics as the most advanced CT or "Cat" scan technology in the world.This new imaging tool is important in diagnosing and pinpointing heart attack, stroke and other neurological problems. Scans allow doctors to quickly and clearly see coronary artery blockages and the motion and pumping action of a patient's heart. In just one second this scanner can non-invasively capture the image of an organ, scan the entire body in ten seconds and produce images of the heart and coronary arteries in less than five heartbeats. The scanner offers a multitude of other uses including scans for cancer, trauma and other internal injuries.Available only by physician referral, bothMethodist North and Methodist South offer the following innovative procedures through the Light Speed VCT Scanner: 5-Beat Cardiac TM - Captures images of the whole heart and coronary arteries in just five heartbeatsproviding clearer images of cardiovascular anatomy and a shorter breath hold for the sick and elderly. Stroke Work-Up - Delivers the speed and resolution required for rapid imaging of blood vessels in the brain because ance a stroke occurs, treatment must be delivered as quickly as possible to ensure the best outcome for the patient. Physicians can make a quick diagnosis and determine the best course of treatment using less exams.Additional 64-Slice CT scanner procedures include: brain, kidney, liver and lung exams, colonography, oncology/cancer care, inner ear ailments and abdominal and spinal injuries. UltrasoundUltrasound at Riverview, sometimes called a sonogram, is a type of imaging that visualizes internal structures by recording the pulsating "echoes" of harmless and painless sound waves that are directed to a specific area of the body. A computer converts the electrical impulses into images that are displayed onto a monitor and recorded so that a radiologist can view them and interpret the results. Riverview also has a Registered Vascular Technologist who performs and administers various vascular tests such as screening for PDV and aortic aneurisms PathologyPathology is the study and diagnosis of disease through examination of organs, tissues, bodily fluids, and whole bodies (autopsies). Pathology also encompasses the related scientific study of disease processes, called general pathology.Medical pathology is divided into two main branches, anatomical pathology and clinical pathology.In clinical psychology or psychiatry, the focus is on mental experience and functioning so the term psychopathology is used. Neurological disorders are studied within neurology, where the term neuropathy is generally reserved for cases of peripheral nerve pathology.Veterinary pathology is concerned with animal disease, whereas phytopathology is the study of plant diseases.

1.5 TMI1.5 TMI full body high definition magnetic resonance imaging, including new technology to perform breast biopsy

Diagnostic laboratory market in India:

Increasing participation by the private sector in healthcare services is stimulating change in the Indian healthcare industry. The in-vitro diagnostic (IVD) industry is experiencing rapid technological developments. The need for a highly inaccurate and wider test menu has resulted in the introduction of new test parameters. The majority of diagnostic laboratories are restricted to routine biochemistry tests (e.g., enzymes and substrates) due to the low level of automation.

Though the demand for these tests is high, laboratories remain subject to low profitability and intense competition. Laboratories are trying to differentiate themselves by offering specialized tests such as drug screenings, extended lipid profile, and therapeutic drug monitoring.

According to a 2005 ICFA report on Indian medical care industry, India spends 5.10 percent of its GDP on healthcare. While Indias overall expenditure on health care is comparable to most developing countries, Indias per capita health care expenditure is low due its large billion plus population and low per capita income. This scenario is not likely to improve because of rising health care cost and Indias ever growing population (estimated to increase from 1 billion to 1.2billion by 2012

Current Scenario in India

Both the government and the private sector provide health care in India, but patients increasingly turn to private hospitals and clinics for quality treatment and better facilities. According to the estimates provided by the industry sources, there are approximately 30000 laboratories that service 1 to 1.25 million patients per day. This includes specialise laboratory facilities in hospital and nursing homes, and small testing centres with basic facilities. The equality of services and facilities provided by these laboratories varies widely. The national Accreditation Board of Laboratories (NABL) has been established to accredit the laboratories, yet the numbers of accredit laboratories remains minimal. Currently, there are only a few large national players including SRL Ranbaxy, Apollo clinics

It is estimated that the total market for IVD equipment and reagents is Rs.6.75 billion ($147 million). Equipment constitutes 40 % of the total IVD market while reagents account for 60% of the market. The market for IVD is segmented into biochemistry (including microbiology), hematology, immunoassays, hispathology and cytology, and consumables.

Changing Diagnostic Services market Over past years the diagnostic market has undergone a change. Though stratification exists in the laboratories, there are a growing number of corporate players. The high-end laboratories, which offer automated chemistry and hematology systems, cater to approximately 30 percent of the national workload while the second tier regional laboratories cater to 40 percent of the patients. The manual laboratories account for the remaining 30 percent patients.

MAJOR PLAYERS IN AHMEDABAD: SRL RANBAXY Diagnostics Apollo Clinic Piramal Diagnostic Centre Scientific Diagnostic Centre Green Cross Supratech Micro path Kunal Diagnostic Centre Micro Aid Diagnostic Laboratory Sapphire Medicare services

Emerging Trends and completion:The emerging trend of corporate players establishing Diagnostic Centre in small towns and rural areas will provide opportunities for the import of automated systems and imported reagents. The market for Diagnostic equipment is highly competitive. Equipment is often leased or rented, and revenue is generated through consumables. Increasing competition pressures the laboratories to continuously improve quality and provide rapid results; this demand drives the need for equipment and reagents that perform multiple functions efficiently. There are opportunities for technologically superior products. With growing completion laboratories are trying to distinguish themselves by using better reagents and instrumentation.

Several Indian and foreign companies are active in the equipment and reagent market:Transia, Bio Medical, Roche Diagnostics, Accurex, Bayer Healthcare, Becton and Dickinson, bio Merieux, India, Nicholas Piramal, Wipro Biomed, Johnson and Johnson, Olympus Diagnostics, Sigma Aldrich, Hitachi, ortho Clinical Diagnostic, Ranbaxy diagnostics, and Bio-Rad Laboratories.

Regulation:The government of India does not require a license to import equipment and reagents. In fact, imports provide approximately 60 percent of the diagnostic medical equipment and supplies market. In cases where government hospitals directly import equipment, the government levies a 5 percent duty.Government laboratories procure equipment and supplies through tenders where price plays a major role in the decision making process. Private hospitals and laboratories, however, make their own purchase decisions and consider both quality and price while making procurement decisions.In India, medical equipment is distributed through regional distributors who have a network of sub-distributors. Use of a local well-qualifies distributor helps to establish good relationships and often influences buying decisions. The distributor should have a sales network and provide after sales service.

Impact on Indian healthcare sector:Exposure to international quality standards will imply that completely Indian owned operations will have to benchmark their operations against the international groups. The international groups promise to usher in standards and disciplined approach towards work, along with accountability to Indian healthcare industry.

Avers Vishal Bali, VP, Wockhardt hospitals group Bangalore and members of CIIs healthcare groups, this is a welcome trend, which will professionalize the Indian healthcare sector. This is a step towards globalizing health care, making Indian healthcare industry in sync with international standards.

HISTORY

HistoryThe history of medical diagnosis began in earnest from the days of Imhotep in ancient Egypt and Hippocrates in ancient Greece but is far from perfect despite the enormous bounty of information made available by medical research including the sequencing of the human genome. The practice of diagnosis continues to be dominated by theories set down in the early 20th century.Ancient ChinaIn Traditional Chinese Medicine, there are four diagnostic methods: inspection, auscultation-olfaction, interrogation, and palpation.[1]Ancient EgyptAn Egyptian medical textbook, the Edwin Smith Papyrus written by Imhotep (fl. 2630-2611 BC), was the first to apply the method of diagnosis to the treatment of disease.[2]Ancient BabyloniaA Babylonian medical textbook, the Diagnostic Handbook written by Esagil-kin-apli (fl. 1069-1046 BC), introduced the use of empiricism, logic and rationality in the diagnosis of an illness or disease.[3] The book made use of logical rules in combining observed symptoms on the body of a patient with its diagnosis and prognosis.[4] He described the symptoms for many varieties of epilepsy and related ailments along with their diagnosis and prognosis.[5]Ancient GreeceOver two thousand years ago, Hippocrates recorded the association between disease and heredity. In similar fashion, Pythagoras noted the association between metabolism and heredity (allergy to Fava beans). The medical community, however, has only recently acknowledged the importance of genetics and its relevance to mainstream medicine.Medieval Islamic worldThe Arabic physician, Abu al-Qasim al-Zahrawi (Abulcasis), wrote on hematology in his Al-Tasrif (1000). He provided the first description on haemophilia, a hereditary genetic disorder, in which he wrote of an Andalusian family whose males died of bleeding after minor injuries.[6]The Persian physician, Ibn Sina (Avicenna, 980-1037), in The Canon of Medicine (1025), pioneered the idea of a syndrome in the diagnosis of specific diseases.[7]The Oslerian idealThe ideals of William Osler, who transformed the practice of medicine in the early 1900s, were based on the principles of the diagnosis and treatment of disease. According to Osler, the functions of a physician were to be able to identify disease and its manifestations and to understand its mechanisms and how it may be prevented or cured. For his medical students he believed that the best textbook was the patient himselfanalysis of morbid anatomy and pathology were the keys. The Oslerian ideal continues today as the basis of the doctor's strategy is, "What disease does this patient have, and what is the best way for treatment?" The emphasis is on the classification of the disease in order to use the remedies available for its effects to be reversed or ameliorated. The human being in question is representative of a class of people with this type of disease; this person's biological individuality is not given any great weight.Garrod's viewThe successor to William Osler as Regius Professor at Oxford was Archibald Garrod. Garrod echoed the observations of his Greek counterparts of two millennia ago, ...our chemical individualities are due to our chemical merits as well as our chemical shortcomings; and it is more nearly true to say that the factors which confer upon us our predispositions to and immunities from various mishaps which are spoken of as diseases, are inherent in our very chemical structure; and even in the molecular groupings which confer upon us our individualities, and which went into the making of the chromosomes from which we sprang. Because Garrod practiced in the early 1900s, well before the knowledge of DNA encoding genes that in turn encoded proteins responsible for bodily structure and functions were discovered, it took some time before medicine could fully appreciate the fundamental importance of his concept of diagnosis Present-day Oslerian practiceWhereas Osler laid the founding principles by which medicine should be practiced, Garrod placed these principles in a greater context of a chemical individuality that is inherited and is subject to the mechanisms of evolutionary selection. The Oslerian ideal of medical practice continues to dominate medical philosophy today. The patient is a collective of symptoms to be characterized and analyzed algorithmically in order to draw a diagnosis and subsequently produce a strategy of treatment. Medicine is about problems based solutions. In keeping with this philosophy, today's pathology reports provide a momentary snapshot of the patient's biochemical profile, highlighting the end result of the disease process.Influence of DNA technologyGarrod's conception of biological individuality was confirmed with the advent of the sequencing of the human genome. Finally the subtle relationship between inheritance, individuality and environment became apparent via the variations detected in DNA. In each patient's DNA lies a script for how their bodies will change and become ill as well as how they will handle the assaults of the environment from the beginning of their life to its end. It is hoped that by knowing a patient's genes that the biological strengths and weaknesses in respect to these assaults will be revealed and disease processes can be predicted before they have the opportunity to manifest. Although knowledge in this area is far from complete, there are already medical interventions based on this. More importantly, the physician, forewarned with this knowledge can guide the patient towards appropriate lifestyle changes to anticipate and mitigate disease processes.

FIVE FORCE ANALYSIS OF DIAGNOSTIC CENTRE

THREAT OF RIVAL: There are large numbers of players in Diagnostic industry. There is an intense competition among the centres. Because of this intense competition, each centre tries to provide better services. For this reason as well as the Diagnostic Centres have huge amount of investment in Research and Development department.

BARGAINING POWER OF SUPPLIERS:Heavy equipments are purchased by Diagnostic Centre, for which they have to incur huge fixed cost. As for Diagnostic Centre the equipments are purchased from foreign countries, which requires huge capital. Injections, needles, gel, etc is also required day to day. The suppliers therefore have high bargaining power.

BARGAINING POWER OF CUSTOMERS:Bargaining power of customers are high because there are many major players providing similar services at a affordable rate. The switching cost is low.

THREAT OF NEW ENTRANT:Market for Diagnostic Centres is new a concept and is being accepted in exchange of laboratories. It is very difficult for a new player to enter because it requires huge investment for fixed assets and to carry out day to day expenses.

THREAT OF SUBSTITUTE:Not all are aware about what is Diagnostic Centre? What is done in Diagnostic Centre? The major threat of substitute for Diagnostic Centre is laboratories. They are wide spread and are less expensive as compared to Diagnostic Centre.

SWOT ANALYSIS

STRENGHT Advance technology Fast evaluation of reports Availability of all tests at one place Easy availability of test from any collection centre WEAKNESS Expensive

OPPORTUNITY Availability of new market New concept THREATS Laboratories Hospitals

RESEARCH METHODLOGY

RESEARCH METHODOLOGY

A) Topic: A study on Diagnostic Centre of AhmedabadB) Objective of the study:a) The main objective of the study is to see the profitability of Diagnostic Centre.b) To make a comparative study of Diagnostic Centre.c) To know the working of the Diagnostic Centre.

C) Secondary Objective of the study:To study the different services of various Diagnostic Centre as specially Piramal, Apollo, Religare, Scientific and Green Cross.

D) Research design a) Type of research: Descriptive b) Scope of Research:The scope of the study is limited to Ahmedabad c) Data collection sources: Primary data: Questionnaire Secondary data: Journals, Books, internet d) Research Instrument: Structured questionnaire E) Sampling design: a) Target population: Doctors of Diagnostic Centre in Ahmedabadb) Sample Size: Total sample size is 5.c) Sampling area: Ahmedabadd) Sampling technique: convenience sampling F) Limitation of Research: a) Sample size is small as compared to area. b) Less co-operation from Diagnostic Centre as regard to filling up the questionnaire. c) Financial details are not provided by private Diagnostic Centre.

G) Contribution of study: Proper guidance of services to patients Awareness of diagnostics services with compared to laboratories services.

H) Beneficiary of study: Students who want to study the report for the reference People will come to know about various diagnostic services through this study.

DATA ANALYSISPIRMARY DATA

1. What are the services provided by the Diagnostic Centre?ServicesPiramalReligareApolloScientificGreen cross

Radiology11101

Ultrasound11110

1.5 TMI10100

64 slice CT10000

Pathology11111

In the survey we found that pathology service is provided by all Diagnostic Centres and Piramal is only Diagnostic Centre which is provided all services.

2. How many branches are there of your centre in Ahmedabad?

CentrePiramalReligareApolloScientificGreen cross

00 0000

1 01000

2 10000

300100

400010

500001

From the survey we found that green cross have maximum branches and Religare has only 1 branch.

3. How many collection centres are there of your Diagnostic Centre?

CentrePiramalReligareApolloScientificGreen cross

1-510111

6-1001000

11-1500000

More than 1500000

We see that no. of branches is less of Religare but no. of collection centre is more in Religare

4. How many employees are working in your centre?

EmployeesPiramalReligareApolloScientificGreen cross

1-1000000

11-2500100

26-3500000

36-5001000

More than 5010011

From the survey we found that Piramal, scientific and Apollo have more than 50 employees, they have large organization

5. Recently, have your centre introduced any new services?

PiramalReligareApolloScientificGreen cross

Yes Yes

INTREPRETATION: There are average two or three Diagnostic Centre introducing new services every year. But during the current year Piramal, Religare and scientific Diagnostic Centre has not introduced any new services.

6. How much time does it take for your Centre to analyze one Report?

less than a day24 hours48 hoursmore than 48 hours

Piramal1000

Religare0000

Apollo0000

Scientific0000

Green cross1000

We got mixed opinion from Apollo, scientific, Religare regarding analysis of their reports as that depend upon the type of test. Whereas, Green cross and Piramal takes less than a day

7. How much Expenditure was incurred on new Machine by the Centre for the year?

We found mixed approach in this question also. Because all Diagnostic Centre are do not purchase machines every year. Besides that, some of them are having full kit of latest technology.

8. What is the maintenance cost for the Equipments during the year?

less than 10lakh10--5050--1croremore than 1 crore

Piramal0010

Religare0000

Apollo0100

Scientific0000

Green cross0000

As this question was found quite confidential, we could not get answer from green cross, scientific and Religare Diagnostic Centre but Apollo incurred cost of10-50 lakhs, Piramal incurred 50-1crore.

9. What is the revenue of the centre for the year?

less than 10lakh10--30308080--1croremore than 1 crore

Piramal00001

Religare00000

Apollo00010

Scientific00000

Green cross00001

Piramal and Green cross has revenue of more than 1 crore. Apollo has a revenue of 80-1crore. Other centres could not provide details about revenue earned.

FINDINGS

From the survey of 5 Diagnostic Centre, we come to know that all Diagnostic Centre do not provide all services they are known for their special service.

In the survey we found that every Diagnostic Centre does not introduce new services every year, but in 2009 among 5 centre ,2 Diagnostic Centre introduced new services where, Apollo provided the thyroid service & there is a tie up with the other Apollo clinic for the service of Memography.

From the survey of 5 Diagnostic Centres Piramal Diagnostic Centre is the only centre that provides 100% diagnostic services.

From the survey we also come to know that average monthly revenue of one Diagnostic Centre is between 6 lakhs to 8 lakhs.

From the survey we also found out that some Diagnostic Centre purchase a kit for the maintenance of the equipments whereas, some Diagnostic Centre take a annual maintenance contract for the machinery.

SECONDARY DATA

COMMON SIZE STATEMENT PROFIT AND LOSS ACCOUNT

PIRAMAL HEALTHCARE

APOLLO CLINIC

RELIGARE

COMMON SIZED PROFIT AND LOSS ACCOUNT OF THE PIRAMAL HEALTH CARE

PIRAMAL HEALTH CARE

200920082007

(RS in Million)Common Size % (RS in Million)Common Size %(RS in Million)Common Size %

INCOME

Sales23839.4102.9219974.2104.46517032.8106.36

less: excise duty676.82.92852.94.4610196.36

Net Sales23162.610019121.310016013.8100.00

Other Income284.41.23259.41.353852.40

23447101.2219380.7101.3516398.8102.40

EXPENDITURE

Materials9551.441.237805.340.816683.841.74

staff cost2515.510.862359.912.341857.911.60

research and development Expenses411.61.77275.91.44878.95.49

Other Expenses6755.529.164710.324.634154.125.94

(Increase)/Decrease in WIP/Finished Goods-149.9-0.6423.90.12-214.3-1.34

19084.182.3915175.379.3613360.483.43

PROFIT BEFORE INTREST,DEPRICIATION AND TAX4362.918.834205.421.993038.418.97

Less: interest (net)3791.631730.91090.68

PROFIT BEFORE DEPRICIATION AND TAX3983.917.194032.421.082929.418.29

less: depreciation838.13.61704.83.687054.40

PROFIT BEFORE TAX3145.813.583327.617.42224.413.89

less : Provision for taxation-Current and wealth tax Provision rs 1.0 Million357.21.54400.32.09265.51.66

less :MAT credit Entitlement-320.4-1.38-170.2-0.89-111.6-0.70

less: Deferred tax107.34.6352.70.271661.04

less: Fringe Benefits tax248.51.07300.1521.70.14

392.61.69312.81.63341.62.13

PROFIT FOR THE YEAR2753.211.883014.815.761882.811.76

Balance profit brought forward3208.613.853208.616.783039.318.98

NET PROFIT AVAILABLE FOR APPROPRIATION5961.825.736223.432.544922.130.74

proposed dividend on equity shares877.93.79877.94.59877.95.48

distribution tax 149.20.644149.20.78105.70.66

dividend paid on preferences shares-13.40.073.70.02

proposed dividend on preference shares19.20.12

distribution tax -2.30.0123.30.02

transfer to general reserve1401.16.041626.78.57004.37

transfer to capital redemption reserve-345.31.8-

transfer to debenture redemption reserve3251.4-1500.94

2753.211.883014.815.761713.510.70

BALANCE CARRIED TO BALANCE SHEET3208.613.853208.616.783208.620.04

earning per share (basic/diluted)13.214.38.9

Common Sized Profit And Loss Account

APPOLO CLINIC

200920082007

RS Common Size%RSCommon Size %RSCommon size %

INCOME

Sales14,57,97,76,42410011,25,39,41,778100 9,00,24,09,352 94.81

Add: share holder profit 49,21,29,422 5.18

less: excise duty

Net Sales14,57,97,76,42410011,25,39,41,778100 9,49,45,38,774 100

Other Income22,37,25,5821.5326,25,25,8912.33714809920.75

Total 14,80,35,02,006 101.5311516467669102.33 9,56,60,19,766 100.75

EXPENDITURE

Materials8,09,65,09,72255.536,20,73,39,08155.155,09,81,17,37853.69

staff cost2,21,05,10,00815.161,68,48,18,88114.971,42,19,03,36514.97

Administrative expense2,06,57,38,37214.161,59,81,76,91214.201,42,68,89,25315.02

Financial expense22,31,60,4371.5319,89,75,7551.7627,00,70,0262.84

Other Expenses21,78,3470.01421,75,0000.0191,55,13,7800.16

Deferred Revenue Expenditure 36,25,7040.0265,48,1370.0581,15,05,1370.12

Total12,60,17,22,59086.439,69,80,33,76686.178,24,39,98,93986.83

PROFIT BEFORE DEPRICIATION AND TAX2,20,17,79,41615.101,81,84,33,90316.151,32,20,20,82713.92

less: depreciation43,92,03,7993.0136,74,60,6953.2640,75,36,1974.29

PROFIT BEFORE EXTRAORDINARY ITEM AND TAX1,76,25,75,61712.081,45,09,73,20812.8991,44,84,6309.63

less: extraordinary item4,01,88,5250.27 -30,97,87,8183.26

PROFIT BEFORE TAX1,72,23,87,09211.811,45,09,73,20812.89122427244812.89

less : Provision for taxation-Current and wealth tax Provision rs 1.0 Million47,97,89,2813.2938,11,19,1983.3829,04,62,8033.06

less: Deferred tax3,68,63,3260.251,90,61,4070.163,41,02,8240.36

less: Fringe Benefits tax250409220.17200663700.171,52,96,2800.16

less: income tax paid relating to earlier years3,34,78,1700.35

add: deferred tax assets-4,83,92,214-0.51

PROFIT AFTER TAX11806935638.0910174521109.048986945859.47

Add: shares in associates5,48,84,2610.58

Balance profit brought forward12479263808.5589,24,27,5927.922,60,80,0890.27

NET PROFIT AVAILABLE FOR APPROPRIATION242861724316.65190987970216.9797965893510.32

Dividend40,16,01,5842.7535,21,14,2123.1225,81,92,9152.72

Dividend tax payable6,82,52,1900.465,98,41,8100.533,93,14,8880.41

transfer to general reserve75,00,00,0005.1425,00,00,0002.2215,00,00,0001.58

BALANCE CARRIED TO BALANCE SHEET12087634698.29124792368011.0853,21,51,1925.60

TOTAL242861724316.65190987970216.9797965893510.32

COMMON SIZED PROFIT AND LOSS ACCOUNT OF THE RELIGARE SUPER RELIGARE

200920082007

(RS in Million)Common Size %(RS in Million)Common Size %(RS in Million)Common Size %

INCOME

sales12,54,91,48210034,14,12,813100100

less: excise duty--

Net Sales12,54,91,48210034,14,12,813100153831768100

Other Income14,89,56,82654.274,84,7610.142

TOTAL27,44,48,308218.6934,18,97,574100.142153831768100

EXPENDITURE

less: depreciation31,25,0102.494,55,6320.1374200.0048

personal expenses10,73,28,75585.524,46,41,95813.0741197982.67

interest 20,16,87,990160.714,03,14,56011.801608333110.45

Other Expenses6,21,52,67649.522,34,09,5426.8568982894.48

TOTAL37,42,94,431298.2610,88,21,69231.872710883817.62

PROFIT/(LOSE) BEFORE TAX(9,98,46,123)-79.5623,30,75,88268.2612672293082.37

less : Provision for taxation-Current and wealth tax Provision Rs 1.0 Million5,54,11,71744.15(42,688)-0.01287379105.68

less: Deferred tax16,75,1981.33(13,87,584)-0.40-53296-0.03

less: Fringe Benefits tax26,64,7422.1223,6260.0069267000.017

Profit before prior period items11801161676.71

prior period adjustment60000003.90

PROFIT/(LOSE) AFTER TAX(15,95,97,780)-127.1723,44,82,52868.6811201161672.81

balance brought forward to previous year9,45,63,43575.357,27,34,52921.304345602128.25

NET PROFIT AVAILABLE FOR APPROPRIATION(6,50,34,345)-51.8230,72,17,05789.98155467637101.06

APPROPRIATION

interim dividend51,4470.04117,38,83,42350.936738217743.80

distribution tax 1,53,21,9434.4894503506.14

transfer to general reserve2,34,48,2536.8659005813.83

BALANCE CARRIED TO BALANCE SHEET(6,50,85,792)-60.649,45,63,43527.697273452947.28

TOTAL(6,50,34,345)-51.8230,72,17,05789.98155467637101.06

COMMON SIZE ANALYSIS OF PIRAMAL DIAGNOSTIC CENTRE& APOLLO HEALTHCARE & RELIGARE

PROFIT AND LOSS ACCOUNT

PIRAMALAPOLLORELIGARE

200720082009200720082009200720082009

PBDT 2,92,94,00,000.00 4,03,24,00,000.00 3,98,39,00,000.00 1,32,20,20,827.00 1,81,84,33,903.00 2,20,17,79,416.00

PBT 2,22,44,00,000.00 3,32,76,00,000.00 3,14,58,00,000.00 1,22,42,72,448.00 1,72,23,87,092.00 1,72,23,87,092.00 12,67,22,930.00 23,30,75,882.00 -9,98,46,123.00

PAT 1,88,28,00,000.00 3,01,48,00,000.00 2,75,32,00,000.00 89,86,94,585.00 1,01,74,52,110.00 1,18,06,93,563.00 11,20,11,616.00 23,44,82,528.00 -15,95,97,780.00

PIRAMALAPOLLORELIGARE

% 200720082009200720082009200720082009

PBDT 18.29 21.0817.1913.92 16.15 15.1

PBT 13.58 17.413.8912.8912.8911.8182.3768.26-79.56

PAT11.8815.7611.769.479.048.0972.8168.68-127.17

COMMANSIZE BALANCESHEET

COMMON SIZED BALANCE SHEET OF THE PIRAMAL HEALTH CARE

PIRAMAL HEALTH CARE

200920082007

(RS in Million)Common Size %(RS in Million)Common Size %(RS in Million)Common Size %

SOURCES OF FUNDS

share holders fund

share capital4181.854182.60801.75.20

reserve and surplus11472.250.709746.760.659762.263.40

11809.252.1910164.763.2510563.968.60

Loan funds

secured funds4480.119.801511.79.411793.311.64

unsecured funds5288.523.373531.221.972168.814.08

9768.643.175042.931.383962.125.73

Deferred tax liabilities

Deferred tax liabilities1180.25.221031.96.421033.66.71

less: Deferred tax assets210.50.93169.51.05162.11.05

969.74.29862.45.37871.55.66

TOTAL22628.5100.0016070110015397.5100

APPLICATION OF FUNDS

Fixed Assets

Gross Block14278.163.1011372.370.7611525.674.85

Less: Depreciation4090.918.08329020.472824.118.34

Net Block10187.245.028082.350.298701.556.51

Capital Wip463.32.05478.22.97459.72.98

10650.547.078560.553.279161.259.49

INVESTMENT1299.85.741282.67.9812658.21

Current Assets, Loans and Advances

Inventories288012.732524.915.712264.814.70

Sundry Debtors3618.815.993021.418.802298.814.92

Cash and Bank Balance174.70.77340.72.12220.51.43

Other Current Assets78.80.3577.90.4886.50.56

Loans and Advances837036.994258.526.492677.617.38

15122.366.8310223.463.617548.249.02

Less: Current Liabilities And Provisions

Current Liabilities3271.814.46280717.462328.715.12

Provisions1172.35.181189.57.40248.21.61

4444.119.643996.524.862576.916.73

Net Current Assets10678.247.196226.938.744971.332.28

TOTAL22628.5100.001607010015397.5100

Common Sized Balance Sheet

APPOLO CLINIC

20092008 2007

RSCommon Size %RSCommon Size %RSCommon Size %

SOURCES OF FUNDS

share holders fund

share capital60,23,57,0203.1958,68,57,0204.7951,63,85,8306.93

reserve and surplus13,02,91,12,29669.1911,64,78,20,00772.676,93,30,61,65557.50

13,63,14,69,31672.3912,23,46,77,02776.347,44,94,47,48561.79

Loan funds

secured funds4,36,55,24,96323.182,92,19,52,42318.233,27,12,57,33027.13

unsecured funds12,92,91,0000.6813,43,96,0000.8330,78,57,8362.55

4,49,48,15,96323.873,05,63,48,42319.073,57,91,15,16629.68


Deferred tax liabilities62,65,60,1163.3258,96,96,7903.6759,40,14,0804.92

less: Deferred tax assets---

62,65,60,1163.3258,96,96,7903.6759,40,14,0804.92

TOTAL18,82,99,45,39010016,02,64,17,48510012,05,57,39,857100


goodwill on consolidation24,56,24,409

Fixed Assets

Gross Block9,40,66,66,74849.957,59,17,84,17547.378,34,30,03,30269.20

Less: Depreciation2,77,99,15,72714.762,34,83,23,00514.652,37,22,29,20719.67

Net Block6,62,67,51,02135.195,24,34,61,17032.715,97,07,74,09549.52

Capital Wip2,37,26,42,09512.6070,83,19,51611.901,84,47,56,18915.30

8,99,93,93,11647.795,95,17,80,68637.137,81,55,30,28464.82

INVESTMENT6,29,27,95,16533.417,06,01,08,86444.052,23,03,40,16218.50

deferred tax asset7,51,99,4430.62


Inventories1,08,84,17,3015.7879,08,90,4634.9359,14,81,8034.90

Sundry Debtors1,60,73,54,9608.531,26,15,86,0267.871,08,87,65,6519.03

Cash and Bank Balance64,61,60,3893.431,04,55,72,8626.5270,59,97,9985.85

Other Current Assets

Loans and Advances3,69,32,23,78119.612,72,10,98,39316.971,77,25,45,47414.70

7,03,51,56,43137.365,81,91,47,74436.304,15,87,90,92634.49


Current Liabilities1,52,70,05,8368.101,40,29,34,3658.751,55,61,57,80312.90

Provisions1,97,08,51,06110.461,40,47,55,4448.7692,13,92,4647.64

3,49,78,56,89718.572,80,76,89,80917.512,47,75,50,26720.55

Net Current Assets3,53,72,99,53418.783,01,14,57,93518.791,68,12,40,55913.94

MISCLLENIOUS EXPENCES4,57,5750.002430,70,0000.0278,05,0000.06

TOTAL18,82,99,45,39010016,02,64,17,48510012,05,57,39,857100

COMMON SIZED BALANCE SHEET OF THE RELIGARE

SUPER RELIGARE

200920082007

(RS)Common Size %(RS)Common Size %(RS)Common Size %

SOURCES OF FUNDS

share holders fund

share capital1,01,28,97,6004.0276,08,33,57013.6664,39,68,64022.06

Share application money18,00,16,15,18071.37

reserve and surplus6,20,75,95,07424.614,05,23,75,95272.792,23,89,14,71076.73

25,22,21,07,85499.994,81,32,14,54286.452,88,28,83,35098.80

Loan funds

secured funds

unsecured funds75,39,86,91713.543,50,00,0001.19

75,39,86,91713.543,50,00,0001.19


Deferred tax liabilities2,34,3180.0009

less: Deferred tax assets

TOTAL25,22,23,42,1721005,56,72,01,4591002,91,78,83,350100


Fixed Assets

Gross Block3,73,02,9270.1455,95,0520.1082,6620.0028

Less: Depreciation35,66,4720.0144,63,0520.00837,4200.00025

Net Block3,37,36,4550.1351,32,0000.0975,2420.0025

Capital Wip59,5730.00027,46,1660.013-

3,37,96,0280.1358,78,1660.1075,2420.0025

INVESTMENT20,23,54,65,23180.225,45,27,65,82397.942,89,81,08,96399.32

Deferred tax assets14,40,8800.0353,2960.0018


Inventories

Sundry Debtors92,08,5070.0366,36,1910.0119,25,9750.06

Cash and Bank Balance4,73,20,06,82218.761,76,83,5190.3130,25,9750.10

Other Current Assets10,93,91,1430.4312,98,18,7312.333,57,72,9941.22

Loans and Advances11,34,44,9540.456,43,93,0141.1572,65,8760.24

4,96,40,51,42619.6821,25,31,4553.817,52,22,0122.57


Current Liabilities3,54,50,9460.141,67,15,0840.303,09,60,8591.06

Provisions1,12,56,5250.048,86,99,7811.592,46,15,3040.84

4,67,07,4710.1810,54,14,8651.895,55,76,1631.90

Net Current Assets4,91,73,43,95519.4910,71,16,5901.921,96,45,8490.67

Less: Balance in general reserve3,57,36,9580.14-

TOTAL25,22,23,42,1721005,56,72,01,4591002,91,78,83,350100

COMMON SIZED ANALYSED OF BALANCESHEET

Piramal equity went down to 52.18% of its total revenue in 2009 as against 63.25% in 2008 and 68.60% in 2007 due to increase in loan funds. Apollo still went up 99.99% in 2009 from 86.45% in 2008 & 98.8% in 2007.

Primal differed tax liability is 4.29%in 2009 & 5.37% in 2008Apollo differed tax liability is 3.32%in 2009 & 3.67% in 2008

Net fixed assets45.02% in 2009 & 50.29% in 2008 of Piramal and 35.19% in 2009 & 32.71% in 2008 of Apollo and 0.13% in 2009 & 0.09% in 2008 of S.R.L.

Investment 5.74% in 2009 & 7.98% in 2008 of Piramal and 33.41% in 2009 & 44.05% in 2008 of Apollo and 80.22% in 2009 & 97.93% in 2008 of S.R.L

TRENDS ANALYSIS

Trend Analysis Data Of Piramal Diagnostic Centre

PARTICULARS200720082009

RESULT FOR THE YEAR

Sales & other income16398.819380.723447

Index11.1818364761.429799741

Profit before tax2224.43327.63145.8

Index11.4959539651.41422406

Profit after tax1882.83014.82753.2

Index11.6012322071.462290206

Equity Dividend731.6877.9877.9

Index11.1999726631.199972663

Dividend (%)

POSITION AT THE YEAR END

Gross Block11525.611372.314278.1

Index10.9866991741.2388162

Net Block8701.58082.310187.2

Index10.9288398551.170740677

Net current Assets4971.36226.910678.2

Index11.252569752.147969344

Net Worth

Index

Share Capital801.7418418

Reserve And Surplus9762.29746.711472.2

Book Value

No of Employees

Trend Analysis Data Of Apollo Diagnostic Centre


RESULT FOR THE YEAR

Sales & other income 9,56,60,19,766 11516467669 14,80,35,02,006

Index11.2038933591.547509034

Profit before tax12242724481,45,09,73,2081,72,23,87,092

Index11.1851718221.406865845

Profit after tax89869458510174521101180693563

Index11.1321444761.313787334

Equity Dividend25,81,92,91535,21,14,21240,16,01,584

Index11.3637640371.555432239

Dividend (%)


Gross Block 8,34,30,03,302 7,59,17,84,175 9,40,66,66,748

Index10.9099581891.127491673

Net Block 5,97,07,74,095 5,24,34,61,170 6,62,67,51,021

Index10.8781878341.109864637

Net current Assets 1,68,12,40,559 3,01,14,57,935 3,53,72,99,534

Index11.7912118042.103981798

Net Worth

Index

Share Capital 51,63,85,830 58,68,57,020 60,23,57,020

Reserve And Surplus 6,93,30,61,655 11,64,78,20,007 13,02,91,12,296

Trend Analysis Data Of RELIGARE Diagnostic Centre


RESULT FOR THE YEAR

Sales & other income153831768341412813125491482

Index12.2193908150.815770914

Profit before tax126722930233075882-99846123

Index11.839255784-0.787908889

Profit after tax112011616234482528-159597780

Index12.093376887-1.424832403

Equity Dividend67382177 17,38,83,423 51,447

Index12.5805551370.000763511

Dividend (%)


Gross Block 82,662 55,95,052 3,73,02,927

Index167.68590162451.2705596

Net Block 75,242 51,32,000 3,37,36,455

Index168.20658675448.3726509

Net current Assets 1,96,45,849 10,71,16,590 4,91,73,43,955

Index15.452377752250.2993867

Net Worth

Index

Share Capital 64,39,68,640 76,08,33,570 1,01,28,97,600

Reserve And Surplus 2,23,89,14,710 4,05,23,75,952 6,20,75,95,074

TREND ANALYSIS

1. Result for the yeari) Piramal: Consistent rise in sales from year2007 to 2009Apollo: Consistent rise in sales from year2007 to 2009Religare: Constant growth in Sales in year 2007 to 2008 but in 2008 to 2009 declined from 2.21 to 0.81ii) Piramal: PBT growth is always much lower than the sales growth, but in year 2008 it is more.Apollo: PBT growth is always much lower than the sales growth, there is heavy pressure on marginsReligare: PBT growth is always much lower than the sales growth, there is heavy pressure on marginsiii) Piramal: The same applies to PAT. Apollo: The same applies to PAT Religare: The same applies to PAT

2. Position at the year endi) Piramal: Growth in gross block and sales near to each other.Apollo: Growth in gross block and sales neck to neck.Religare: There is a vast difference in gross block and sales and high ratio of gross block. ii) Piramal: Net current assets up in every year Religare: Net current assets up in every year Apollo: Net current assets up in every year

HORIZONTAL ANALYSIS

PIRAMAL HEALTH CAREHORIZONTAL BALANCE SHEET OF PIRAMAL HEALTH CARE

20092008INCREASE/DECREASE %

(RS in Million)(RS in Million)(RS in Million)

SOURCES OF FUNDS

share holders fund

share capital41841800

reserve and surplus11472.29746.71725.517.70343

11809.210164.71644.516.17854

Loan funds

secured funds4480.11511.72968.4196.3617

unsecured funds5288.53531.21757.349.76495

9768.65042.94725.793.70997


Deferred tax liabilities1180.21031.9148.314.37155

Less :Deferred tax assets210.5169.54124.18879

969.7862.4107.312.44202

TOTAL22628.5160706558.540.81207


Fixed Assets

Gross Block14278.111372.32905.825.55156

Less: Depreciation4090.93290800.924.34347

Net Block10187.28082.32104.926.04333

Capital Wip463.3478.2-14.9-3.11585

10650.58560.5209024.41446

INVESTMENT1299.81282.617.21.341026


Inventories28802524.9355.114.06392

Sundry Debtors3618.83021.4597.419.77229

Cash and Bank Balance174.7340.7-166-48.7232

Other Current Assets78.877.90.91.155327

Loans and Advances83704258.54111.596.54808

15122.310223.44898.947.9185


Current Liabilities3271.82807464.816.5586

Provisions1172.31189.5-17.2-1.44599

4444.13996.5447.611.1998

Net Current Assets10678.26226.94451.371.48501

TOTAL22628.5160706558.540.81207

HORIZONTAL BALANCE SHEET OF PIRAMAL HEALTH CARE

20082007INCREASE/DECREASE%

(RS in Million)(RS in Million)(RS in Million)

SOURCES OF FUNDS

share holders fund

share capital418801.7-383.7-47.86

reserve and surplus9746.79762.2-15.5-0.15

10164.710563.9-399.2-3.77

Loan funds

secured funds1511.71793.3-281.6-15.70

unsecured funds3531.22168.81362.462.81

5042.93962.11080.827.27


Deferred tax liabilities1031.91033.6-1.7-0.16

less: Deferred tax assets169.5162.17.44.56

862.4871.5-9.1-1.04

TOTAL1607015397.5672.54.36


Fixed Assets

Gross Block11372.311525.6-153.3-1.33

Less: Depreciation32902824.1465.916.49

Net Block8082.38701.5-619.2-7.11

Capital Wip478.2459.718.54.02

8560.59161.2-600.7-6.55

INVESTMENT1282.6126517.61.39


Inventories2524.92264.8260.111.48

Sundry Debtors3021.42298.8722.631.43

Cash and Bank Balance340.7220.5120.254.51

Other Current Assets77.986.5-8.6-9.94

Loans and Advances4258.52677.61580.959.04

10223.47548.22675.235.44


Current Liabilities28072328.7478.320.53

Provisions1189.5248.2941.3379.25

3996.52576.91419.655.08

Net Current Assets6226.94971.31255.625.25

TOTAL1607015397.5672.54.36

APOLLOHORIZONTAL BALANCE SHEET OF APOLLO CLINIC

SOURCES OF FUNDS20092008INCREASE/DECREASE %

share holders fund

share capital60,23,57,02058,68,57,0201,55,00,0002.64

reserve and surplus13,02,91,12,29611,64,78,20,0071,38,12,92,29011.86

13,63,14,69,31612,23,46,77,0271,39,67,92,29011.42

Loan funds

secured funds4,36,55,24,9632,92,19,52,4231,44,35,72,54049.40

unsecured funds12,92,91,00013,43,96,000-51,05,000-3.80

4,49,48,15,9633,05,63,48,4231,43,84,67,54047.06


Deferred tax liabilities62,65,60,11658,96,96,7903,68,63,3266.25

less: Deferred tax assets--

62,65,60,11658,96,96,7903,68,63,3266.25

TOTAL18,82,99,45,39016,02,64,17,4852,80,35,27,91017.49


goodwill on consolidation

Fixed Assets

Gross Block9,40,66,66,7487,59,17,84,1751,81,48,82,57323.91

Less: Depreciation2,77,99,15,7272,34,83,23,00543,15,92,72218.38

Net Block6,62,67,51,0215,24,34,61,1701,38,32,89,85126.38

Capital Wip2,37,26,42,09570,83,19,5161,66,43,22,579234.97

8,99,93,93,1165,95,17,80,6863,04,76,12,43051.21

INVESTMENT6,29,27,95,1657,06,01,08,864-76,73,13,699-10.87

deferred tax asset


Inventories1,08,84,17,30179,08,90,46329,75,26,83837.62

Sundry Debtors1,60,73,54,9601,26,15,86,02634,57,68,93427.41

Cash and Bank Balance64,61,60,3891,04,55,72,862-39,94,12,473-38.20

Loans and Advances3,69,32,23,7812,72,10,98,39397,21,25,38835.73

7,03,51,56,4315,81,91,47,7441,21,60,08,68720.90


Current Liabilities1,52,70,05,8361,40,29,34,36512,40,71,4718.84

Provisions1,97,08,51,0611,40,47,55,44456,60,95,61740.30

3,49,78,56,8972,80,76,89,80969,01,67,08824.58

Net Current Assets3,53,72,99,5343,01,14,57,93552,58,41,59917.46

MISCLLENIOUS EXPENCES4,57,57530,70,000-26,12,425-85.10

TOTAL18,82,99,45,39016,02,64,17,4852,80,35,27,90517.49

HORIZONTAL BALANCE SHEET OF APOLLO CLINIC

SOURCES OF FUNDS20082007INCREASE/DECREASE %

share holders fund

share capital58,68,57,02051,63,85,8307,04,71,19013.65


12,23,46,77,0277,44,94,47,4854,78,52,29,54264.24

Loan funds

secured funds2,92,19,52,4233,27,12,57,330-34,93,04,907-10.68

unsecured funds13,43,96,00030,78,57,836-17,34,61,836-56.34

3,05,63,48,4233,57,91,15,166-52,27,66,743-14.61


Deferred tax liabilities58,96,96,79059,40,14,080-43,17,290-0.73

Less :Deferred tax assets--

58,96,96,79059,40,14,080-43,17,290-0.73

TOTAL16,02,64,17,48512,05,57,39,8573,97,06,77,62832.94


Goodwill on consolidation24,56,24,409-24,56,24,409-100.

Fixed Assets

Gross Block7,59,17,84,1758,34,30,03,302-75,12,19,127-9.00

Less: Depreciation2,34,83,23,0052,37,22,29,207-2,39,06,202-1.01

Net Block5,24,34,61,1705,97,07,74,095-72,73,12,925-12.18

Capital Wip70,83,19,5161,84,47,56,189-1,13,64,36,673-61.60

5,95,17,80,6867,81,55,30,284-1,86,37,49,598-23.85

INVESTMENT7,06,01,08,8642,23,03,40,1624,82,97,68,702216.55

deferred tax asset7,51,99,443-7,51,99,443-100.00


Inventories79,08,90,46359,14,81,80319,94,08,66033.71

Sundry Debtors1,26,15,86,0261,08,87,65,65117,28,20,37515.87

Cash and Bank Balance1,04,55,72,86270,59,97,99833,95,74,86448.10

Other Current Assets

Loans and Advances2,72,10,98,3931,77,25,45,47494,85,52,91953.51

5,81,91,47,7444,15,87,90,9261,66,03,56,81839.92


Current Liabilities1,40,29,34,3651,55,61,57,803-15,32,23,438-9.85

Provisions1,40,47,55,44492,13,92,46448,33,62,98052.46

2,80,76,89,8092,47,75,50,26733,01,39,54213.33

Net Current Assets3,01,14,57,9351,68,12,40,5591,33,02,17,37679.12

MISCLLENIOUS EXPENCES30,70,00078,05,000-47,35,000-60.67

TOTAL16,02,64,17,48512,05,57,39,8573,97,06,77,62832.94

RELIGAREHORIZONTAL BALANCE SHEET OF RELIGARE


(RS in Million)(RS in Million)

SOURCES OF FUNDS

share holders fund

share capital1,01,28,97,60076,08,33,57025,20,64,03033.12

Share application money18,00,16,15,180-18,00,16,15,180


25,22,21,07,8544,81,32,14,54220,40,88,93,312424.01

Loan funds

secured funds

unsecured funds75,39,86,917(75,39,86,917)-100

75,39,86,917(75,39,86,917)-100


Deferred tax liabilities2,34,3182,34,318


TOTAL25,22,23,42,1725,56,72,01,45919,65,51,40,713353.05


Fixed Assets

Gross Block3,73,02,92755,95,0523,17,07,875566.71

Less: Depreciation35,66,4724,63,05231,03,420670.20

Net Block3,37,36,45551,32,0002,86,04,455557.37

Capital Wip59,5737,46,166(6,86,593)-92.01

3,37,96,02858,78,1662,79,17,862474.94

INVESTMENT20,23,54,65,2315,45,27,65,82314,78,26,99,408271.10

Deferred tax assets14,40,880(14,40,880)-100


Inventories

Sundry Debtors92,08,5076,36,19185,72,3161347.44

Cash and Bank Balance4,73,20,06,8221,76,83,5194,71,43,23,30326659.41

Other Current Assets10,93,91,14312,98,18,731(2,04,27,588)-15.73

Loans and Advances11,34,44,9546,43,93,0144,90,51,94076.17

4,96,40,51,42621,25,31,4554,75,15,19,9712235.67


Current Liabilities3,54,50,9461,67,15,0841,87,35,862112.08

Provisions1,12,56,5258,86,99,781(7,74,43,256)-87.30

4,67,07,47110,54,14,865(5,87,07,394)-55.69

Net Current Assets4,91,73,43,95510,71,16,5904,81,02,27,3654490.64

Less: Balance in general reserve3,57,36,958-3,57,36,958

TOTAL25,22,23,42,1725,56,72,01,45919,65,51,40,713353.05

HORIZONTAL BALANCE SHEET OF RELIGARE



SOURCES OF FUNDS

share holders fund

share capital76,08,33,57064,39,68,64011,68,64,93018.14

Share application money-


4,81,32,14,5422,88,28,83,3501,93,03,31,19266.95

Loan funds

secured funds-

unsecured funds75,39,86,9173,50,00,00071,89,86,9172054.24

75,39,86,9173,50,00,00071,89,86,9172054.24


Deferred tax liabilities-


TOTAL5,56,72,01,4592,91,78,83,3502,64,93,18,10990.79


Fixed Assets

Gross Block55,95,05282,66255,12,3906668.59

Less: Depreciation4,63,0527,4204,55,6326140.59

Net Block51,32,00075,24250,56,7586720.65

Capital Wip7,46,166-7,46,166

58,78,16675,24258,02,9247712.34

INVESTMENT5,45,27,65,8232,89,81,08,9632,55,46,56,86088.14

Deferred tax assets14,40,88053,29613,87,5842603.54


Inventories-

Sundry Debtors6,36,19119,25,975(12,89,784)-66.96

Cash and Bank Balance1,76,83,51930,25,9751,46,57,544484.39

Other Current Assets12,98,18,7313,57,72,9949,40,45,737262.89

Loans and Advances6,43,93,01472,65,8765,71,27,138786.23

21,25,31,4557,52,22,01213,73,09,443182.53


Current Liabilities1,67,15,0843,09,60,859(1,42,45,775)-46.01

Provisions8,86,99,7812,46,15,3046,40,84,477260.34

10,54,14,8655,55,76,1634,98,38,70289.67

Net Current Assets10,71,16,5901,96,45,8498,74,70,741445.23

Less: Balance in general reserve-

TOTAL5,56,72,01,4592,91,78,83,3502,64,93,18,10990.79

HORIZONTAL ANALYSED OF BALANCESHEET

1. 2008-09:Piramal: Net worth down by 16.17% as against high growth in loan funds by 93.70% shows a very weak position of the centre.

2008-07: Net worth down by -3.77% as against high growth in loan funds by 27.27% shows a very weak position of the centre

2008-09 Apollo: Net worth down by 11.42% as against a very high growth In loan funds by 46.06% shows weak position of the centre. 2008-07: Net worth down by 64.24% as against a very high growth In loan funds by -14.61% shows a strong position of the centre.

2008-09:Religare: Net worth down by 424.01% as against very high growth in loan funds by -100% shows a strong position of the centre. 2008-07: Net worth down by 66.95% as against very high growth in loan funds by 2054.24% shows a weak position of the centre

2. 2009-08:Piramal: Net fixed assets higher by 24.42% where as net sales grew by 21.13% are not efficient fixed assets utilization. 2008-07: Net fixed assets lower by-6.55 % where as net sales grew by 29.55% are efficient fixed assets utilization

2009-08 Apollo:: Net fixed assets higher by 51.21% where as net sales grew by 29.55% are not efficient fixed assets utilization 2008-07: Net fixed assets higher by -23.85% where as net sales grew by 18.53% are efficient fixed assets utilization 2009-08Religare: Net fixed assets higher by 51.21% where as net sales grew by 29.55% are not efficient fixed assets utilization2008-07: Net fixed assets higher by 7712.34% where as net sales grew by 121.93% are not efficient fixed assets utilization

3. 2009-08Piramal: Inventory management is very efficient. Growth in inventory is only 14.06% despite of 21.13% growth in sales.2007-08: Inventory management is very efficient. Growth in inventory is only 11.48% despite of 19.40% growth in sales.

2009-08Apollo: Inventory management is not very efficient. Growth in inventory is only 37.62% despite of 29.55% growth in sales 2007-08: Inventory management is not very efficient. Growth in inventory is only 33.71% despite of 18.53 % growth in sales

4. 2008-09Piramal: Management of receivables is efficient as sundry debtors grows high by 19.77% against growth in sales 2007-08: Management of receivables is efficient as sundry debtors grows high by 31.43% against growth in sales

2008-09Apollo: Management of receivables is efficient as sundry debtors grows high by 27.41% against growth in sales. 2007-08: Management of receivables is efficient as sundry debtors grows high by 15.87% against growth in sales 2008-09. Religare: Management of receivables is efficient as sundry debtors grows high by 26659.41% against growth in sales in the year 2007-08: Management of receivables is efficient as sundry debtors grows high by 484.39% against growth in sales5. 2008-09Piramal: Current liabilities growth is 16.55% lower than rise in materials cost. Companys paying its suppliers faster to avail cash discounts. 2007-08: Current liabilities growth is 55.08% higher than rise in materials cost.2008-09Apollo: Current liabilities growth is 8.84% lower than rise in materials cost. May be company paying its suppliers faster to avail cash discounts. 2008-07: Current liabilities growth is13.33% lower than rise in materials cost. Companys paying its suppliers faster to avail cash discounts. 2008-09 Religare: Current liabilities growth is 11.19 % lower than rise in materials cost. Companys paying its suppliers faster to avail cash discounts. 2008-07: Current liabilities growth is 55.08% higher than rise in materials cost. Companys paying its suppliers faster to avail cash discounts.

HORIZONTAL ANALYSISPROFIT AND LOSS

HORIZONTAL PROFIT AND LOSS OF PIRAMAL HEALTH CARE



INCOME

Sales23839.419974.23865.219.35

less: excise duty676.8852.9-176.1-20.64

Net Sales23162.619121.34041.321.13

Other Income284.4259.4259.63

2344719380.74066.320.98

EXPENDITURE

materials9551.47805.31746.122.37

staff cost2515.52359.9155.66.59

research and development Expenses411.6275.9135.749.18

Other Expenses6755.54710.32045.243.41

(Increase)/Decrease in WIP/Finished Goods-149.923.9-173.8-727.19

19084.115175.33908.825.75

PROFIT BEFORE INTREST,DEPRICIATION AND TAX4362.94205.4157.53.74

Less: interest (net)379173206119.07

PROFIT BEFORE DEPRICIATION AND TAX3983.94032.4-48.5-1.20

less: depreciation838.1704.8133.318.91

PROFIT BEFORE TAX3145.83327.6-181.8-5.46

less : Provision for taxation-Current and wealth tax Provision rs 1.0 Million357.2400.3-43.1-10.76

less :MAT credit Entitlement-320.4-170.2-150.288.24

less: Deferred tax107.352.754.6103.60

less: Fringe Benefits tax248.530218.5728.33

392.6312.879.825.51

PROFIT FOR THE YEAR2753.23014.8-261.6-8.67

Balance profit brought forward3208.63208.600

NET PROFIT AVAILABLE FOR APPROPRIATION5961.86223.4-261.6-4.20

proposed dividend on equity shares877.9877.900

distribution tax 149.2149.200

dividend paid on preference shares-13.4-13.4-100

distribution tax -2.3-2.3-100

transfer to general reserve1401.11626.7-225.6-13.83

transfer to capital redemption reserve-345.3-345.3-100

transfer to debenture redemption reserve325-325

2753.23014.8-261.6-8.67

BALANCE CARRIED TO BALANCE SHEET3208.63208.600

HORIZONTAL PROFIT AND LOSS OF PIRAMAL HEALTH CARE



INCOME

sales23839.419974.23865.219.35

less: excise duty676.8852.9-176.1-20.64

Net Sales23162.619121.34041.321.13

Other Income284.4259.4259.63

2344719380.74066.320.98

EXPENDITURE

materials9551.47805.31746.122.37

staff cost2515.52359.9155.66.59

research and development Expenses411.6275.9135.749.18

Other Expenses6755.54710.32045.243.41

(Increase)/Decrease in WIP/Finished Goods-149.923.9-173.8-727.19

19084.115175.33908.825.75

PROFIT BEFORE INTREST,DEPRICIATION AND TAX4362.94205.4157.53.74

Less: interest (net)379173206119.07

PROFIT BEFORE DEPRICIATION AND TAX3983.94032.4-48.5-1.20

less: depreciation838.1704.8133.318.91

PROFIT BEFORE TAX3145.83327.6-181.8-5.46

less : Provision for taxation-Current and wealth tax Provision rs 1.0 Million357.2400.3-43.1-10.76

less :MAT credit Entitlement-320.4-170.2-150.288.24

less: Deferred tax107.352.754.6103.60

less: Fringe Benefits tax248.530218.5728.33

392.6312.879.825.51

PROFIT FOR THE YEAR2753.23014.8-261.6-8.67

Balance profit brought forward3208.63208.600

NET PROFIT AVAILABLE FOR APPROPRIATION5961.86223.4-261.6-4.20

proposed dividend on equity shares877.9877.900

distribution tax 149.2149.200

dividend paid on preference shares-13.4-13.4-100

distribution tax -2.3-2.3-100

transfer to general reserve1401.11626.7-225.6-13.86

transfer to capital redemption reserve-345.3-345.3-100

transfer to debenture redemption reserve325-325

2753.23014.8-261.6-8.67

BALANCE CARRIED TO BALANCE SHEET3208.63208.600

HORIZONTAL PROFIT AND LOSS OF APOLLO CLINIC


RS RS

INCOME

Sales14,57,97,76,42411,25,39,41,7783,32,58,34,64629.55

Add: share holder profit

less: excise duty

Net Sales14,57,97,76,42411,25,39,41,7783,32,58,34,64629.55

Other Income22,37,25,58226,25,25,891-3,88,00,309-14.78

Total14803502006115164676693,28,70,34,33728.54

EXPENDITURE

Materials8,09,65,09,7226,20,73,39,0811,88,91,70,64130.43

staff cost2,21,05,10,0081,68,48,18,88152,56,91,12731.20

Administrative expense2,06,57,38,3721,59,81,76,91246,75,61,46029.26

financial expense22,31,60,43719,89,75,7552,41,84,68212.15

Other Expenses21,78,34721,75,0003,3470.15

Deferred Revenue Expenditure 36,25,70465,48,137-29,22,433-44.63

Total12,60,17,22,5909,69,80,33,7662,90,36,88,82429.94

PROFIT BEFORE DEPRICIATION AND TAX2,20,17,79,4161,81,84,33,90338,33,45,51321.08

less: depreciation43,92,03,79936,74,60,6957,17,43,10419.52

PROFIT BEFORE EXTRAORDINARY ITEM AND TAX1,76,25,75,6171,45,09,73,20831,16,02,40921.48

less: extraordinary item4,01,88,525-4,01,88,525

PROFIT BEFORE TAX1,72,23,87,0921,45,09,73,20827,14,13,88418.71

less : Provision for taxation-Current and wealth tax Provision rs 1.0 Million47,97,89,28138,11,19,1989,86,70,08325.89

less: Deferred tax3,68,63,3261,90,61,4071,78,01,91993.39

less: Fringe Benefits tax250409222006637049,74,55224.79

less: income tax paid relating to earlier years

add: deferred tax assets

PROFIT AFTER TAX1180693563101745211016,32,41,45316.04

Add: shares in associates

Balance profit brought forward124792638089,24,27,59235,54,98,78839.84

NET PROFIT AVAILABLE FOR APPROPRIATION2428617243190987970251,87,37,54127.16

Dividend40,16,01,58435,21,14,2124,94,87,37214.05

Dividend tax payable6,82,52,1905,98,41,81084,10,38014.05

transfer to general reserve75,00,00,00025,00,00,00050,00,00,000200.00

BALANCE CARRIED TO BALANCE SHEET12087634691247923680-3,91,60,211-3.14

TOTAL2428617243190987970251,87,37,54127.16

HORIZONTAL PROFIT AND LOSS OF APOLLO CLINIC


RSRS

INCOME

Sales11,25,39,41,7789,00,24,09,3522,25,15,32,42625.01

Add: share holder profit49,21,29,422-49,21,29,422-100.00

less: excise duty

Net Sales11,25,39,41,7789,49,45,38,7741,75,94,03,00418.53

Other Income26,25,25,8917148099219,10,44,899267.27

Total115164676699,56,60,19,7661,95,04,47,90320.39

EXPENDITURE

Materials6,20,73,39,0815,09,81,17,3781,10,92,21,70321.76

staff cost1,68,48,18,8811,42,19,03,36526,29,15,51618.49

Administrative expense1,59,81,76,9121,42,68,89,25317,12,87,65912.00

financial expense19,89,75,75527,00,70,026-7,10,94,271-26.32

Other Expenses21,75,0001,55,13,780-1,33,38,780-85.98

Deferred Revenue Expenditure 65,48,1371,15,05,137-49,57,000-43.09

Total9,69,80,33,7668,24,39,98,9391,45,40,34,82717.64

PROFIT BEFORE DEPRICIATION AND TAX1,81,84,33,9031,32,20,20,82749,64,13,07637.55

less: depreciation36,74,60,69540,75,36,197-4,00,75,502-9.83

PROFIT BEFORE EXTRAORDINARY ITEM AND TAX1,45,09,73,20891,44,84,63053,64,88,57858.67

less: extraordinary item-30,97,87,818-30,97,87,818-100.00

PROFIT BEFORE TAX1,45,09,73,208122427244822,67,00,76018.52

less : Provision for taxation-Current and wealth tax Provision rs 1.0 Million38,11,19,19829,04,62,8039,06,56,39531.21

less: Deferred tax1,90,61,4073,41,02,824-1,50,41,417-44.11

less: Fringe Benefits tax200663701,52,96,28047,70,09031.18

less: income tax paid relating to earlier years3,34,78,170-3,34,78,170-100.00

add: deferred tax assets-4,83,92,2144,83,92,214-100.00

PROFIT AFTER TAX101745211089869458511,87,57,52513.21

Add: shares in associates5,48,84,261-5,48,84,261-100.00

Balance profit brought forward89,24,27,5922,60,80,08986,63,47,5033321.87

NET PROFIT AVAILABLE FOR APPROPRIATION190987970297965893593,02,20,76794.95

Dividend35,21,14,21225,81,92,9159,39,21,29736.38

Dividend tax payable5,98,41,8103,93,14,8882,05,26,92252.21

transfer to general reserve25,00,00,00015,00,00,00010,00,00,00066.67

BALANCE CARRIED TO BALANCE SHEET124792368053,21,51,19271,57,72,488134.51

TOTAL190987970297965893593,02,20,76794.95

HORIZONTAL PROFIT AND LOSS ACCOUNT OF RELIGARE



INCOME

sales12,54,91,48234,14,12,813(21,59,21,331)-63.24

less: excise duty

Net Sales12,54,91,48234,14,12,813(21,59,21,331)-63.24

Other Income14,89,56,8264,84,76114,84,72,06530627.89

TOTAL27,44,48,30834,18,97,574(6,74,49,266)-19.72

EXPENDITURE

less: depreciation31,25,0104,55,63226,69,378585.86

personal expenses10,73,28,7554,46,41,9586,26,86,797140.42

interest20,16,87,9904,03,14,56016,13,73,430400.28

Other Expenses6,21,52,6762,34,09,5423,87,43,134165.50

TOTAL37,42,94,43110,88,21,69226,54,72,739243.95

PROFIT/(LOSE) BEFORE TAX(9,98,46,123)23,30,75,882(33,29,22,005)-142.83

less : Provision for taxation-Current and wealth tax Provision rs 1.0 Million5,54,11,717(42,688)5,54,54,405-129906

less: Deferred tax16,75,198(13,87,584)30,62,782-220.72

less: Fringe Benefits tax26,64,74223,62626,41,11611178.85

Profit before prior period items

prior period adjustment

PROFIT/(LOSE) AFTER TAX(15,95,97,780)23,44,82,528(39,40,80,308)-168.06

balance brought forward to previous year9,45,63,4357,27,34,5292,18,28,90630.01

NET PROFIT AVAILABLE FOR APPROPRIATION(6,50,34,345)30,72,17,057(37,22,51,402)-121.16

APPROPRIATION

interim dividend51,44717,38,83,423(17,38,31,976)-99.97

distribution tax1,53,21,943(1,53,21,943)-100

transfer to general reserve2,34,48,253(2,34,48,253)-100

balance carried to Balance Sheet(6,50,85,792)9,45,63,435(15,96,49,227)-168.82

(6,50,34,345)30,72,17,057(37,22,51,402)-121.16

HORIZONTAL PROFIT AND LOSS ACCOUNT OF RELIGARE



INCOME

sales34,14,12,81334,14,12,813

less:excise duty

Net Sales34,14,12,81315383176818,75,81,045121.93

Other Income4,84,7614,84,761

TOTAL34,18,97,57415383176818,80,65,806122.25

EXPENDITURE

less: depreciation4,55,63274204,48,2126040.59

personal expenses4,46,41,95841197984,05,22,160983.59

Interest4,03,14,560160833312,42,31,229150.66

Other Expenses2,34,09,54268982891,65,11,253239.35

TOTAL10,88,21,692271088388,17,12,854301.42

PROFIT/(LOSE) BEFORE TAX23,30,75,88212672293010,63,52,95283.92

less : Provision for taxation-Current and wealth tax Provision Rs 1.0 Million(42,688)8737910(87,80,598)-100.48

less: Deferred tax(13,87,584)-53296(13,34,288)2503.54

less: Fringe Benefits tax23,62626700(3,074)-11.51

Profit before prior period items118011616(11,80,11,616)-100

prior period adjustment6000000(60,00,000)-100

PROFIT/(LOSE) AFTER TAX23,44,82,52811201161612,24,70,912109.33

balance brought forward to previous year7,27,34,529434560212,92,78,50867.37

NET PROFIT AVAILABLE FOR APPROPRIATION30,72,17,05715546763715,17,49,42097.60

APPROPRIATION

interim dividend17,38,83,4236738217710,65,01,246158.05

distribution tax1,53,21,943945035058,71,59362.13

transfer to general reserve2,34,48,25359005811,75,47,672297.38

balance carried to Balance Sheet9,45,63,435727345292,18,28,90630.01

30,72,17,05715546763715,17,49,42097.60

HORIZONTAL ANALYSIS OF PIRAMAL DIAGNOSTIC CENTRE& APOLLO HEALTHCARE & RELIGARE

PROFIT AND LOSS ACCOUNT2008-09: PBDT is 17.19% in Piramal, 15.10% in Apollo, there is no PBDT in Religare.2007-08: PBDT is 21.08% in Piramal, 16.15% in Apollo, there is no PBDT in Religare. So there is more PBDT in Piramal.

2008-09: PBT is-5.46 % in Piramal, 18.71% in Apollo, and in Religare-(-142.83%) loss 2007-08: PBT is 17.4% in Piramal, 18.52 % in Apollo, and in Religare 83.92% so in the year 2008-09 Piramal has more PBT and in the year 2007-08 Religare has more PBT

2008-09: PAT is 11.88% in Piramal, 8.09% in Apollo, and in Religare-(127.17)loss 2007-08: PAT is 15.76% in Piramal, 9.04% in Apollo, and in Religare 68.68% so in the year 2008-09 Piramal has more PAT

FINDINGS

In the survey we compare the common size statement of profit and loss account of Apollo, Piramal and Religare for the year 2008-09. And we come to know that net sales growth of Piramal 62.85%,Apollo 58.86% and Religare 54.17% . So Piramal is having a better position as compared to Apollo and Religare.

Despite of decline in PAT, Piramals net profit margin is 11.88%, which is ahead of Apollo clinic & Religare 8.09% & -51.82% respectively. Piramal is more profitable company than Apollo clinic & Religare

From the study we come to know that among three Diagnostic Centre overall condition of Religare is good in the year 2009.

RATIO ANALYSIS

RATIO ANALYSIS OF PIRAMAL HEALTHCARESR No

RATIO

FORMULA

2009

2008

2007

Interpretation

LIQUIDITY RATIO

Result

Result

Result

1

current ratio

current assets/current liabilities

1.6

1.6

2

As per the institutional norm the bench mark is 1.33:1 and here Piramal have the ratio above 1.33:1 in the three year so we can say that is good liquidity condition

2

quick ratio

current assets-inventory/current liabilities

1.2

1.2

1.1

here also the ratio is above the institutional norms in three years because the norms is 1:1 so the ratio is same in 2009 & 2008 but it is decreased in 2007

3

collection period allowed to customers

receivable*365/total sales

55.4

55.2

49.3

If the ratio is decline over previous year it is good for the company. and here in last three years the ratio is increased it means centre is not realises its outstanding dues timely

4

suppliers credit

payables*365/purchase

70.6

78

78.7

It is good condition for the Piramal because the days is declined,

SR No

RATIO

FORMULA

2009

2008

2007

Interpretation

PROFITABILITY RATIO

Result

Result

Result

1gross profit ratio

gross profit*100/net sales

42.5

39.6

41.2

The gross profit ratio is declined from 2008 & increased in 2009 so centre should try to increased their gross profit

2Net profit ratio

net profit *100/net sales

11.9

15.8

11.8

The Net profit Ratio is increased from 2007 to 2008 and again it is decreased in 2009 due to declined in net profit so the centre should try to increased net profits

SR No

RATIO

FORMULA

2009

2008

2007

Interpretation

TURNOVER RATIO

Result

Result

Result

1fixed asset turnover ratio

net sales/net block of fixed assets

1.2

1.2

1.2The fixed assets turnover ratio is same in the last three years even there is decreased in net block of fixed assets

2net worth turnover ratio

net sales/equity shareholders funds

23.2

29.7

17.8

net worth turnover ratio is decreased as Compare to 2008 and increased in 2008, compare to 2007 because of declined in equity shareholder fund in 2008.

SR No

RATIOFORMULA

2009

2008

2007

Interpretation

SOLEVENCY RATIO

Result

Result

Result

1NAVequity shareholders fund/no.of equity shares

0.2

0.2

0.2

The Centre has same NAV in every year

2debt equity ratio

long term debt/total net worth

0.8

0.5

0.4

As per the institutional norms debt-equity ratio is 1.5:1 and Piramal has very low ratio in every year.

SR No

RATIOFORMULA

2009

2008

2007

Interpretation

CAPITAL MARKET RATIOResult

Results

Result

1P/E Ratio

market price of the equity share/EPS0.15

0.14

0.22

Earning per share is different in this three years so the ratio is different and the ratio is decreased in 2008 &2009 as compare to the year 2007.

2market price to NAV

market price of the equity share/ NAV13.33

13.33

13.33

Market price to NAV ratio is same in every year because Piramal issue shares at same market price

SR No

RATIOFORMULA

2009

2008

2007

Interpretation

OthersResults

Results

Result

1Working capital to sales

working capital /sales

0.2

0.2

0.2

This ratio is same in all three years in spite of different sales in every year but the centre has strong working capital management

APOLLOSR No

RATIO

FORMULA

2009

2008

2007

Interpretation

LIQUIDITY RATIOResult

Result

Result

1

current ratio

current assest/current liabilities

1

1.1

1

Apollo have not current ratio as per the institutional norm, As per the institutional norm the bench mark is 1.33:1

2

quick ratio


1.5

1.7

1.3

The institutional norm is in quick ratio is 1: 1 and in all three years the ratio is above the norm, so it is good for the centre and efficient use of resources provided by the suppliers.

3

collection period allowed to customers

receivable*365/total sales

40.2

40.9

40.1Collection period is almost same in three years but is compared to less Piramal

4

suppliers credit

payables*365/purchase

26.6

33.5

32.9

in this ratio supplier credit days reduced in 2009 and it is not beneficial for the Apollo

5

inventory holding period

inventory *365/COGS

30.4

28.3

22.7

Inventory holding period is less in the year 2008 & 2007 so it is good for Apollo & in the year 2009 it is little bit more.

SR No

RATIO

FORMULA

2009

2008

2007

Interpretation

PROFITABILITY RATIO

Result

Result

Result

1gross profit ratio


29.3

29.8

30.6

Net sales is increased proportionally and gross profit is decreased constantly so the ratio is declined so the position is bad for future.

2Net profit ratio


8.1

9

11.2

Net profit is declined in every years so the ratio is decreased compared to each years

SR No

RATIO

FORMULA

2009

2008

2007

Interpretation

TURNOVER RATIO

Result

Result

Result



0.8

0.91The ratio is decreased in 2008 & 2009 as compared to 2007.



8.9

8.29Net sales and equity share holder fund is increased in every year even though the ratio is not increased. It is decreased in 2008 as compared to 2007

SR No

RATIOFORMULA

2009

2008

2007

Interpretation

SOLEVENCY RATIO

Result

Result

Result

1NAVequity shareholders fund/no. of equity shares101010

The Centre has same NAV in every year

2debt equity ratio


0.3

0.20.2As per the institutional norms debt-equity ratio is 1.5:1 and Apollo has very low ratio in every year.& it is because of unstructured capital structure.

SR No

RATIOFORMULA

2009

2008

2007

Interpretation

OthersResults

Results

Result



0.10.20.1Working capital ratio is slightly increased in 2008 because of increased in current assets

RELIGARE

SR No

RATIO

FORMULA

2009

2008

2007

Interpretation

LIQUIDITY RATIO

Result

Result

Result

1

current ratio

current assets/current liabilities

97.46

2.03

1.35

As per the institutional norm the bench mark is 1.33:1 and here Religare have the ratio above 1.33:1 in the three year so we can say that it is good liquidity condition

2

quick ratio


97.38

2.01

1.35

here also the ratio is above the institutional norms 1:1 in three years. In 2007 the ratio is very near to benchmark.

SR No

RATIO

FORMULA

2009

2008

2007

Interpretation

PROFITABILITY RATIO

Result

Result

Result

1gross profit ratio


-30.58

85.69

94.03

In 2009 the ratio is negative. The profit is declined in each year and in 2009 the gross profit is negative

2Net profit ratio


-58.15

73.49

76.71

Gross profit is decline and net profit is also negative in 2009.so the ratio is negative overall condition in 2009 is very bad

SR.NO

RATIO

FORMULA

2009

2008

2007

Interpretation

TURNOVER RATIO

Result

Result

Result



7.42

56.93

1,860.97

There is huge difference in the fixed turnover ratio. It is decreased because there is huge difference in net block of fixed assets



2.29

4.87

4.09

Net worth turnover ratio is negative in the year 2009 so it is bad for Religare and it is increased in 2008 from 2007

SR No

RATIOFORMULA

2009

2008

2007

Interpretation

SOLEVENCY RATIO

Result

Result

1debt equity ratio


0.03

0.15

0.01

As per the institutional norms debt-equity ratio is 1.5:1 and Religare has very low ratio in every year.& it is because of unstructured capital structure.

SR No

RATIOFORMULA

2009

2008

2007

Interpretation

OthersResults

Results

Result



39.180.310.13Working capital ratio has increased in 2009 because of increased in current assets

FUTURE FORECASTING

FUTURE FORECASTINGThe healthcare industry will witness presence of more international groups in the future as only ten percent of the market has been tapped so far, say analysts.

Besides, allowing 100 percent FDI subject to approval by the foreign investment Promotion Board under the department of industrial policy and promotion in the Ministry of Commerce and Industry is a sign of the market opening up for international investors, say experts.

For Singapore, the Indian government has gone a step ahead and inked the comprehensive Economic Cooperation Agreement (CECA) in June, this year, paving the way for increased business and investment opportunities between the two countries for health sector.

Under the CECA, Singapore companies receive the most favoured nation (MFN) treatment for trade in health products and services as well as national treatment, which means they are treated on par with domestic companies; tariff concessions for exports originating from Singapore, including exports of pharmaceuticals and medical equipment. Most importantly, it allows easier access for investments, joint ventures and collaborations in the health sector. And its not just Indian market that the investors are gunning for. After the saturation of Singapore, the US and European health care markets, the investors are also eyeing middle east, china, Vietnam, some African states and Thailand. However, Indians bureaucracy and lack of discipline workforce do peeve the international groups. in India, one has to seek 80 to 100 licenses, while in the western world one does not have to procure more then 10 sighs an official of an international group. The IVD market is estimated to grow 25% annually. Contributing factors to the growth of IVD market are Increasing health awareness and demand for quality healthcare Changing demographics and prevalence of diseases Increasing corporate presences Expansion of diagnostic market to towns and rural areas Growing number of insured lives Changes in medical liability legislation Developing clinical research market

RECOMMENDATION

RECOMMENDATIONS

Super Religare Laboratories should increase their net profit, because their profit are consistently diminishing.

As there is no awareness about healthcare in low income groups , the focus should be more on low income group rather than high income group.

Piramal should try to reduce the expenditure cost, because of which net profit has been affected.

As per the study, Apollos liquidity position is not good. So they should try to use more resources efficiently which are provided by supplier. Apollo should try to improve working capital management.

Diagnostic Centre should reduce their charges up to some extent rather than providing costly services, so that low income group can afford it.

CONCLUSION

CONCLUSION

With constantly growing population and economy, India provides huge opportunities in its healthcare sector. Due to cheap labour, many international pharmaceutical companies are outsourcing research to our country. And clinical research is the heart of any new research in healthcare. At the same time due to increasing per capita income, standard of living and awareness there is constantly rising demand of quality health services. Thus, diagnostic services are attractive industries to lookout for bright opportunity. From overall conclusion we find that Piramal has better profitability than Apollo, Religare

BIBLIOGRAPHY

BIBLIOGRAPHYBook: book: Financial Accounting for management by Ambrish GuptaJournal: Journal of clinical oncology no 22, no 6,(march 15), 2004 pp 1126-1135Websites: http://jco.ascopubs.org www.Piramaldiagnostics.com [email protected] http://www.sdslab.net/profile.php www.clickindia.com www.greenhosp.org www.methodisthealth.org www.greencrossvet.com www.search.conduit.com

ANNEXURE

QUESTIONNAIREFOR THE STUDY ON DAIGNOSTIC CENTER IN AHMEDABAD

NAME:______________________________

ADDRESS:______________________________

Documents

Diagnostics Center Market in Ahmedabad