Marketing Project Report on Diagnostic centre in Ahmedabad

Description
Companion diagnostics have also been developed to preselect patients for specific treatments based on their own biology. Such targeted therapy holds great promise in the treatment of diseases such as cancer

A PROJECT REPORT ON

A STUDY ON DIAGNOSTIC CENTRE IN AHMEDABAD

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TABLE OF CONTENT

SR.NO. TOPIC 1
2 3 4 5 6 7 7.1 EXECUTIVE SUMMARY Introduction History Five force model SWOT analysis Research methodology Data analysis Primary data -Findings 7.2 Secondary data -Common size statement -Trend analysis -Horizontal analysis -Findings -Ratio analysis 8 9 10 Future forecasting Recommendation Conclusion

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7 9 17 21 24 26 29 30 40 41 42 52 57 77 78 95 98 100
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11 12

Bibliography Annexure

102 104

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EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY
There are many Diagnostic Centre in Ahmedabad that provides various services to the patients. Some of these services are computed radiology, ultrasound and 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.

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INTRODUCTION

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INTRODUCTION
Diagnostic Services Industry

Since health care is dependent on the people served, India’s huge population of a billion people represents a big opportunity. And it’s 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 India’s 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.

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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, both Methodist 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 heartbeats—providing 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.

? Ultrasound
Ultrasound 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
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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 ? Pathology Pathology 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 TMI
1.5 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
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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 India’s overall expenditure on health care is comparable to most developing countries, India’s 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 India’s 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
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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

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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

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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 CII’s 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.?

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HISTORY

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History
The 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 China In Traditional Chinese Medicine, there are four diagnostic methods: inspection, auscultation-olfaction, interrogation, and palpation.[1] Ancient Egypt An 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 Babylonia A Babylonian medical textbook, the Diagnostic Handbook written by Esagilkin-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 Greece Over 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 world

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The 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 ideal The 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 himself—analysis 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 view The 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 practice

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Whereas 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 technology Garrod'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.

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FIVE FORCE ANALYSIS OF DIAGNOSTIC CENTRE

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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.

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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.

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SWOT ANALYSIS

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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

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RESEARCH METHODLOGY

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RESEARCH METHODOLOGY

A)

Topic:
A study on Diagnostic Centre of Ahmedabad

B)

Objective of the study:
a) b) c) The main objective of the study is to see the profitability of Diagnostic Centre. To make a comparative study of Diagnostic Centre. 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
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E) Sampling design:
a) Target population: Doctors of Diagnostic Centre in Ahmedabad b) Sample Size: Total sample size is 5. c) Sampling area: Ahmedabad d) 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.

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DATA ANALYSIS PIRMARY DATA

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1. What are the services provided by the Diagnostic Centre? Services Piramal Religare Apollo Scientific

Green cross
1 0 0

Radiology Ultrasound 1.5 TMI

1 1

1 1 0

1 1 1

0 1 0

1
1 1

64 slice CT Pathology

0 1

0 1

0 1

0 1

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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.

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2. How many branches are there of your centre in Ahmedabad? Centre Piramal Religare Apollo Scientific Green cross 0 0 0 0 1 0 0 0 0 0 0 1

0 1 2 3 4 5

0 0
1

0
1

0 0 0
1 0 0

0 0 0 0

0 0 0

5 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Piramal Religare Apollo Scientific Green Gross 1 2
No. of Branches in Ahmedabad

4 3

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

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3. How many collection centres are there of your Diagnostic Centre? Centre Piramal Religare Apollo Scientific Green cross
1

1-5 6-10 11-15
More than 15

1

0
1

1

1

0 0 0

0 0 0

0 0 0

0 0 0

0 0

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

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4. How many employees are working in your centre? Employees 1-10 11-25 26-35 36-50 More than 50 Piramal 0 0 0 0
1

Religare Apollo 0 0 0
1

Scientific Green cross 0 0 0 0
1

0
1

0 0 0 0
1

0 0 0

0

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

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5. Recently, have your centre introduced any new services? Piramal Religare Apollo Scientific Green 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.

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

less than a day Piramal Religare Apollo Scientific Green cross 1 0 0 0 1

24 48 more than 48 hours hours hours 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

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

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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 10lakh Piramal Religare Apollo Scientific Green cross 0 0 0 0 0 10-50 0 0 1 0 0 50-more than 1 1crore crore 1 0 0 0 0

0 0 0 0 0

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.

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9. What is the revenue of the centre for the year? 30— 80 0 0 0 0 0 0 0 0 0 0

less than 10lakh Piramal Religare Apollo Scientific Green cross 0 0 0 0 0

10-30

80--1crore 0 0 1 0 0

more than 1 crore 1 0 0 0 1

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.

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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.

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SECONDARY DATA

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COMMON SIZE STATEMENT PROFIT AND LOSS ACCOUNT
? PIRAMAL HEALTHCARE

? APOLLO CLINIC

? RELIGARE

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COMMON SIZED PROFIT AND LOSS ACCOUNT OF THE PIRAMAL HEALTH CARE
PIRAMAL HEALTH CARE 2009 Common Size % 2008 Common Size % 2007 Common Size %

(RS in Million) INCOME Sales less: excise duty Net Sales Other Income EXPENDITURE Materials staff cost research and development Expenses Other Expenses (Increase)/Decrease in WIP/Finished Goods PROFIT BEFORE INTREST,DEPRICIATION AND TAX Less: interest (net) PROFIT BEFORE DEPRICIATION AND TAX less: depreciation PROFIT BEFORE TAX less : Provision for taxation-Current and wealth tax Provision rs 1.0 Million less :MAT credit Entitlement less: Deferred tax less: Fringe Benefits tax PROFIT FOR THE YEAR Balance profit brought forward NET PROFIT AVAILABLE FOR APPROPRIATION proposed dividend on equity shares distribution tax dividend paid on preferences shares proposed dividend on preference shares distribution tax transfer to general reserve transfer to capital redemption reserve transfer to debenture redemption reserve BALANCE CARRIED TO BALANCE SHEET earning per share (basic/diluted)

(RS in Million)

(RS in Million)

23839.4 676.8 23162.6 284.4 23447 9551.4 2515.5 411.6 6755.5 -149.9 19084.1

102.92 2.92 100 1.23 101.22 41.23 10.86 1.77 29.16 -0.64 82.39

19974.2 852.9 19121.3 259.4 19380.7 7805.3 2359.9 275.9 4710.3 23.9 15175.3

104.465 4.46 100 1.35 101.35 40.81 12.34 1.44 24.63 0.12 79.36

17032.8 1019 16013.8 385 16398.8 6683.8 1857.9 878.9 4154.1 -214.3 13360.4

106.36 6.36 100.00 2.40 102.40 41.74 11.60 5.49 25.94 -1.34 83.43

4362.9 379 3983.9 838.1 3145.8 357.2 -320.4 107.3 248.5 392.6 2753.2 3208.6 5961.8 877.9 149.2 1401.1 325 2753.2 3208.6 13.2

18.83 1.63 17.19 3.61 13.58 1.54 -1.38 4.63 1.07 1.69 11.88 13.85 25.73 3.79 0.644

4205.4 173 4032.4 704.8 3327.6 400.3 -170.2 52.7 30 312.8 3014.8 3208.6 6223.4 877.9 149.2 13.4 2.3 1626.7 345.3 3014.8 3208.6 14.3

21.99 0.9 21.08 3.68 17.4 2.09 -0.89 0.27 0.15 1.63 15.76 16.78 32.54 4.59 0.78 0.07 0.012 8.5 1.8

3038.4 109 2929.4 705 2224.4 265.5 -111.6 166 21.7 341.6 1882.8 3039.3 4922.1 877.9 105.7 3.7 19.2 3.3 700 150 1713.5 3208.6 8.9

18.97 0.68 18.29 4.40 13.89 1.66 -0.70 1.04 0.14 2.13 11.76 18.98 30.74 5.48 0.66 0.02 0.12 0.02 4.37

6.04

1.4 11.88 13.85

15.76 16.78

0.94 10.70 20.04

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Common Sized Profit And Loss Account

APPOLO CLINIC
2009 Comm on Size% 2008 Comm on Size % 2007 Com mon size %

RS INCOME Sales Add: share holder profit less: excise duty Net Sales Other Income Total EXPENDITURE Materials staff cost Administrative expense Financial expense Other Expenses Deferred Revenue Expenditure Total PROFIT BEFORE DEPRICIATION AND TAX less: depreciation PROFIT BEFORE EXTRAORDINARY ITEM AND TAX less: extraordinary item PROFIT BEFORE TAX less : Provision for taxation-Current and wealth tax Provision rs 1.0 Million less: Deferred tax less: Fringe Benefits tax less: income tax paid relating to earlier years add: deferred tax assets PROFIT AFTER TAX Add: shares in associates Balance profit brought forward NET PROFIT AVAILABLE FOR APPROPRIATION Dividend Dividend tax payable transfer to general reserve BALANCE CARRIED TO BALANCE SHEET TOTAL

RS

RS

14,57,97,76,424

100

11,25,39,41,778

100

9,00,24,09,352 49,21,29,422 9,49,45,38,774 71480992 9,56,60,19,766

94.81 5.18 100 0.75 100.75

14,57,97,76,424 22,37,25,582 14,80,35,02,006

100 1.53 101.53

11,25,39,41,778 26,25,25,891 11516467669

100 2.33 102.33

8,09,65,09,722 2,21,05,10,008 2,06,57,38,372 22,31,60,437 21,78,347 36,25,704 12,60,17,22,590 2,20,17,79,416 43,92,03,799

55.53 15.16 14.16 1.53 0.014 0.02 86.43 15.10 3.01

6,20,73,39,081 1,68,48,18,881 1,59,81,76,912 19,89,75,755 21,75,000 65,48,137 9,69,80,33,766 1,81,84,33,903 36,74,60,695

55.15 14.97 14.20 1.76 0.019 0.058 86.17 16.15 3.26

5,09,81,17,378 1,42,19,03,365 1,42,68,89,253 27,00,70,026 1,55,13,780 1,15,05,137 8,24,39,98,939 1,32,20,20,827 40,75,36,197

53.69 14.97 15.02 2.84 0.16 0.12 86.83 13.92 4.29

1,76,25,75,617 4,01,88,525 1,72,23,87,092 47,97,89,281 3,68,63,326 25040922

12.08 0.27 11.81 3.29 0.25 0.17

1,45,09,73,208 1,45,09,73,208 38,11,19,198 1,90,61,407 20066370

12.89 12.89 3.38 0.16 0.17

91,44,84,630 30,97,87,818 1224272448 29,04,62,803 3,41,02,824 1,52,96,280 3,34,78,170 -4,83,92,214 898694585 5,48,84,261 2,60,80,089 979658935 25,81,92,915 3,93,14,888 15,00,00,000 53,21,51,192 979658935

9.63 3.26 12.89 3.06 0.36 0.16 0.35 -0.51 9.47 0.58 0.27 10.32 2.72 0.41 1.58 5.60 10.32

1180693563 1247926380 2428617243 40,16,01,584 6,82,52,190 75,00,00,000 1208763469 2428617243

8.09 8.55 16.65 2.75 0.46 5.14 8.29 16.65

1017452110 89,24,27,592 1909879702 35,21,14,212 5,98,41,810 25,00,00,000 1247923680 1909879702

9.04 7.92 16.97 3.12 0.53 2.22 11.08 16.97

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COMMON SIZED PROFIT AND LOSS ACCOUNT OF THE RELIGARE SUPER RELIGARE
2009 (RS in Million) INCOME sales less: excise duty Net Sales Other Income TOTAL EXPENDITURE less: depreciation personal expenses interest Other Expenses TOTAL PROFIT/(LOSE) BEFORE TAX less : Provision for taxationCurrent and wealth tax Provision Rs 1.0 Million less: Deferred tax less: Fringe Benefits tax Profit before prior period items prior period adjustment PROFIT/(LOSE) AFTER TAX balance brought forward to previous year NET PROFIT AVAILABLE FOR APPROPRIATION APPROPRIATION interim dividend distribution tax transfer to general reserve BALANCE CARRIED TO BALANCE SHEET TOTAL 12,54,91,482 12,54,91,482 14,89,56,826 27,44,48,308 100 100 54.27 218.69 34,14,12,813 34,14,12,813 4,84,761 34,18,97,574 100 100 0.142 100.142 153831768 100 100 Common Size % (RS in Million) 2008 Common Size % (RS in Million) 2007 Common Size %

153831768

100

31,25,010 10,73,28,755 20,16,87,990 6,21,52,676 37,42,94,431

2.49 85.52 160.71 49.52 298.26

4,55,632 4,46,41,958 4,03,14,560 2,34,09,542 10,88,21,692

0.13 13.07 11.80 6.85 31.87

7420 4119798 16083331 6898289 27108838

0.0048 2.67 10.45 4.48 17.62

(9,98,46,123)

-79.56

23,30,75,882

68.26

126722930

82.37

5,54,11,717 16,75,198 26,64,742

44.15 1.33 2.12

(42,688) (13,87,584) 23,626

-0.012 -0.40 0.0069

8737910 -53296 26700 118011616 6000000

5.68 -0.03 0.017 76.71 3.90 72.81

(15,95,97,780)

-127.17

23,44,82,528

68.68

112011616

9,45,63,435

75.35

7,27,34,529

21.30

43456021

28.25

(6,50,34,345)

-51.82

30,72,17,057

89.98

155467637

101.06

51,447

0.041

17,38,83,423 1,53,21,943 2,34,48,253 9,45,63,435 30,72,17,057

50.93 4.48 6.86 27.69 89.98

67382177 9450350 5900581 72734529 155467637

43.80 6.14 3.83 47.28 101.06

(6,50,85,792) (6,50,34,345)

-60.64 -51.82

42 | P a g e

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

PROFIT AND LOSS ACCOUNT

PIRAMAL 2007 PBDT PBT PAT 2,92,94,00,000.00 2,22,44,00,000.00 1,88,28,00,000.00 2008 4,03,24,00,000.00 3,32,76,00,000.00 3,01,48,00,000.00 2009 3,98,39,00,000.00 3,14,58,00,000.00 2,75,32,00,000.00 2007 1,32,20,20,827.00 1,22,42,72,448.00 89,86,94,585.00

APOLLO 2008 1,81,84,33,903.00 1,72,23,87,092.00 1,01,74,52,110.00 2009 2,20,17,79,416.00 1,72,23,87,092.00 1,18,06,93,563.00

PIRAMAL % PBDT PBT PAT 2007 18.29 13.58 11.88 2008 21.08 17.4 15.76 2009 17.19 13.89 11.76 2007 13.92 12.89 9.47

APOLLO 2008 16.15 12.89 9.04 2009 15.1 11.81 8.09

43 | P a g e

COMMANSIZE BALANCESHEET

44 | P a g e

COMMON SIZED BALANCE SHEET OF THE PIRAMAL HEALTH CARE
PIRAMAL HEALTH CARE 2009 (RS in Common Million) Size % SOURCES OF FUNDS share holders fund share capital reserve and surplus Loan funds secured funds unsecured funds Deferred tax liabilities Deferred tax liabilities less: Deferred tax assets TOTAL APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Wip INVESTMENT Current Assets, Loans and Advances Inventories Sundry Debtors Cash and Bank Balance Other Current Assets Loans and Advances Less: Current Liabilities And Provisions Current Liabilities Provisions Net Current Assets TOTAL 2880 3618.8 174.7 78.8 8370 15122.3 3271.8 1172.3 4444.1 10678.2 22628.5 12.73 15.99 0.77 0.35 36.99 66.83 14.46 5.18 19.64 47.19 100.00 2524.9 3021.4 340.7 77.9 4258.5 10223.4 2807 1189.5 3996.5 6226.9 16070 15.71 18.80 2.12 0.48 26.49 63.61 17.46 7.40 24.86 38.74 100 2264.8 2298.8 220.5 86.5 2677.6 7548.2 2328.7 248.2 2576.9 4971.3 15397.5 14.70 14.92 1.43 0.56 17.38 49.02 15.12 1.61 16.73 32.28 100 2008 (RS in Common Million) Size % 2007 (RS in Common Size Million) %

418 11472.2 11809.2 4480.1 5288.5 9768.6 1180.2 210.5 969.7 22628.5

1.85 50.70 52.19 19.80 23.37 43.17 5.22 0.93 4.29 100.00

418 9746.7 10164.7 1511.7 3531.2 5042.9 1031.9 169.5 862.4 16070

2.60 60.65 63.25 9.41 21.97 31.38 6.42 1.05 5.37 1100

801.7 9762.2 10563.9 1793.3 2168.8 3962.1 1033.6 162.1 871.5 15397.5

5.20 63.40 68.60 11.64 14.08 25.73 6.71 1.05 5.66 100

14278.1 4090.9 10187.2 463.3 10650.5 1299.8

63.10 18.08 45.02 2.05 47.07 5.74

11372.3 3290 8082.3 478.2 8560.5 1282.6

70.76 20.47 50.29 2.97 53.27 7.98

11525.6 2824.1 8701.5 459.7 9161.2 1265

74.85 18.34 56.51 2.98 59.49 8.21

45 | P a g e

Common Sized Balance Sheet

APPOLO CLINIC
2009 RS SOURCES OF FUNDS share holders fund share capital reserve and surplus Loan funds secured funds unsecured funds Deferred tax liabilities Deferred tax liabilities less: Deferred tax assets TOTAL APPLICATION OF FUNDS goodwill on consolidation Fixed Assets Gross Block Less: Depreciation Net Block Capital Wip Common Size % 2008 RS Common Size % 2007 RS Common Size %

60,23,57,020 13,02,91,12,296 13,63,14,69,316 4,36,55,24,963 12,92,91,000 4,49,48,15,963 62,65,60,116 62,65,60,116 18,82,99,45,390

3.19 69.19 72.39 23.18 0.68 23.87 3.32 3.32 100

58,68,57,020 11,64,78,20,007 12,23,46,77,027 2,92,19,52,423 13,43,96,000 3,05,63,48,423 58,96,96,790 58,96,96,790 16,02,64,17,485

4.79 72.67 76.34 18.23 0.83 19.07 3.67 3.67 100

51,63,85,830 6,93,30,61,655 7,44,94,47,485 3,27,12,57,330 30,78,57,836 3,57,91,15,166 59,40,14,080 59,40,14,080 12,05,57,39,857

6.93 57.50 61.79 27.13 2.55 29.68 4.92 4.92 100

24,56,24,409 9,40,66,66,748 2,77,99,15,727 6,62,67,51,021 2,37,26,42,095 8,99,93,93,116 6,29,27,95,165 49.95 14.76 35.19 12.60 47.79 33.41 7,59,17,84,175 2,34,83,23,005 5,24,34,61,170 70,83,19,516 5,95,17,80,686 7,06,01,08,864 47.37 14.65 32.71 11.90 37.13 44.05 8,34,30,03,302 2,37,22,29,207 5,97,07,74,095 1,84,47,56,189 7,81,55,30,284 2,23,03,40,162 7,51,99,443 69.20 19.67 49.52 15.30 64.82 18.50 0.62

INVESTMENT deferred tax asset Current Assets, Loans and Advances Inventories Sundry Debtors Cash and Bank Balance Other Current Assets Loans and Advances Less: Current Liabilities And Provisions Current Liabilities Provisions

1,08,84,17,301 1,60,73,54,960 64,61,60,389 3,69,32,23,781 7,03,51,56,431

5.78 8.53 3.43 19.61 37.36

79,08,90,463 1,26,15,86,026 1,04,55,72,862 2,72,10,98,393 5,81,91,47,744

4.93 7.87 6.52 16.97 36.30

59,14,81,803 1,08,87,65,651 70,59,97,998 1,77,25,45,474 4,15,87,90,926

4.90 9.03 5.85 14.70 34.49

1,52,70,05,836 1,97,08,51,061 3,49,78,56,897 3,53,72,99,534 4,57,575 18,82,99,45,390

8.10 10.46 18.57 18.78 0.0024 100

1,40,29,34,365 1,40,47,55,444 2,80,76,89,809 3,01,14,57,935 30,70,000 16,02,64,17,485

8.75 8.76 17.51 18.79 0.02 100

1,55,61,57,803 92,13,92,464 2,47,75,50,267 1,68,12,40,559 78,05,000 12,05,57,39,857

12.90 7.64 20.55 13.94 0.06 100

Net Current Assets MISCLLENIOUS EXPENCES TOTAL

46 | P a g e

COMMON SIZED BALANCE SHEET OF THE RELIGARE
SUPER RELIGARE
2009 (RS) SOURCES OF FUNDS share holders fund share capital Share application money reserve and surplus Loan funds secured funds unsecured funds Deferred tax liabilities Deferred tax liabilities less: Deferred tax assets TOTAL APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Wip INVESTMENT Deferred tax assets Current Assets, Loans and Advances Inventories Sundry Debtors Cash and Bank Balance Other Current Assets Loans and Advances Less: Current Liabilities And Provisions Current Liabilities Provisions Net Current Assets Less: Balance in general reserve TOTAL Common Size % (RS) 2008 Common Size % (RS) 2007 Common Size %

1,01,28,97,600 18,00,16,15,180 6,20,75,95,074 25,22,21,07,854

4.02 71.37 24.61 99.99

76,08,33,570 4,05,23,75,952 4,81,32,14,542

13.66 72.79 86.45

64,39,68,640 2,23,89,14,710 2,88,28,83,350

22.06 76.73 98.80

75,39,86,917 75,39,86,917 2,34,318 0.0009

13.54 13.54

3,50,00,000 3,50,00,000

1.19 1.19

25,22,23,42,172

100

5,56,72,01,459

100

2,91,78,83,350

100

3,73,02,927 35,66,472 3,37,36,455 59,573 3,37,96,028 20,23,54,65,231

0.14 0.014 0.13 0.0002 0.13 80.22

55,95,052 4,63,052 51,32,000 7,46,166 58,78,166 5,45,27,65,823 14,40,880

0.10 0.0083 0.09 0.013 0.10 97.94 0.03

82,662 7,420 75,242 75,242 2,89,81,08,963 53,296

0.0028 0.00025 0.0025 0.0025 99.32 0.0018

92,08,507 4,73,20,06,822 10,93,91,143 11,34,44,954 4,96,40,51,426

0.036 18.76 0.43 0.45 19.68

6,36,191 1,76,83,519 12,98,18,731 6,43,93,014 21,25,31,455

0.01 0.31 2.33 1.15 3.81

19,25,975 30,25,975 3,57,72,994 72,65,876 7,52,22,012

0.06 0.10 1.22 0.24 2.57

3,54,50,946 1,12,56,525 4,67,07,471 4,91,73,43,955 3,57,36,958 25,22,23,42,172

0.14 0.04 0.18 19.49 0.14 100

1,67,15,084 8,86,99,781 10,54,14,865 10,71,16,590 5,56,72,01,459

0.30 1.59 1.89 1.92

3,09,60,859 2,46,15,304 5,55,76,163 1,96,45,849

1.06 0.84 1.90 0.67

100

2,91,78,83,350

100

47 | P a g e

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

Net fixed assets 45.02% 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

48 | P a g e

TRENDS ANALYSIS

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Trend Analysis Data Of Piramal Diagnostic Centre
PARTICULARS RESULT FOR THE YEAR Sales & other income Index Profit before tax Index Profit after tax Index Equity Dividend Index Dividend (%) 2007 2008 2009

16398.8 1 2224.4 1 1882.8 1 731.6 1

19380.7 1.181836476 3327.6 1.495953965 3014.8 1.601232207 877.9 1.199972663

23447 1.429799741 3145.8 1.41422406 2753.2 1.462290206 877.9 1.199972663

POSITION AT THE YEAR END Gross Block Index Net Block Index Net current Assets Index Net Worth Index Share Capital Reserve And Surplus Book Value No of Employees

11525.6 1 8701.5 1 4971.3 1

11372.3 0.986699174 8082.3 0.928839855 6226.9 1.25256975

14278.1 1.2388162 10187.2 1.170740677 10678.2 2.147969344

801.7 9762.2

418 9746.7

418 11472.2

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Trend Analysis Data Of Apollo Diagnostic Centre
PARTICULARS RESULT FOR THE YEAR Sales & other income Index Profit before tax Index Profit after tax Index Equity Dividend Index Dividend (%) 2007 2008 2009

9,56,60,19,766 1 1224272448 1 898694585 1 25,81,92,915 1

11516467669 1.203893359 1,45,09,73,208 1.185171822 1017452110 1.132144476 35,21,14,212 1.363764037

14,80,35,02,006 1.547509034 1,72,23,87,092 1.406865845 1180693563 1.313787334 40,16,01,584 1.555432239

POSITION AT THE YEAR END Gross Block Index Net Block Index Net current Assets Index Net Worth Index Share Capital Reserve And Surplus

8,34,30,03,302 1 5,97,07,74,095 1 1,68,12,40,559 1

7,59,17,84,175 0.909958189 5,24,34,61,170 0.878187834 3,01,14,57,935 1.791211804

9,40,66,66,748 1.127491673 6,62,67,51,021 1.109864637 3,53,72,99,534 2.103981798

51,63,85,830 6,93,30,61,655

58,68,57,020 11,64,78,20,007

60,23,57,020 13,02,91,12,296

51 | P a g e

Trend Analysis Data Of RELIGARE Diagnostic Centre
PARTICULARS RESULT FOR THE YEAR Sales & other income Index Profit before tax Index Profit after tax Index Equity Dividend Index Dividend (%) 2007 2008 2009

153831768 1 126722930 1 112011616 1 67382177 1

341412813 2.219390815 233075882 1.839255784 234482528 2.093376887 17,38,83,423 2.580555137

125491482 0.815770914 -99846123 -0.787908889 -159597780 -1.424832403 51,447 0.000763511

POSITION AT THE YEAR END Gross Block Index Net Block Index Net current Assets Index Net Worth Index Share Capital Reserve And Surplus

82,662 1 75,242 1 1,96,45,849 1

55,95,052 67.68590162 51,32,000 68.20658675 10,71,16,590 5.452377752

3,73,02,927 451.2705596 3,37,36,455 448.3726509 4,91,73,43,955 250.2993867

64,39,68,640 2,23,89,14,710

76,08,33,570 4,05,23,75,952

1,01,28,97,600 6,20,75,95,074

52 | P a g e

TREND ANALYSIS

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

2. Position at the year end i) 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
53 | P a g e

HORIZONTAL ANALYSIS

54 | P a g e

PIRAMAL HEALTH CARE

HORIZONTAL BALANCE SHEET OF PIRAMAL HEALTH CARE 2009 (RS in Million) SOURCES OF FUNDS share holders fund share capital reserve and surplus Loan funds secured funds unsecured funds Deferred tax liabilities Deferred tax liabilities Less eferred tax assets TOTAL APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Wip INVESTMENT Current Assets, Loans and Advances Inventories Sundry Debtors Cash and Bank Balance Other Current Assets Loans and Advances Less: Current Liabilities And Provisions Current Liabilities Provisions Net Current Assets TOTAL 3271.8 1172.3 4444.1 10678.2 22628.5 2807 1189.5 3996.5 6226.9 16070 2880 3618.8 174.7 78.8 8370 15122.3 2524.9 3021.4 340.7 77.9 4258.5 10223.4 14278.1 4090.9 10187.2 463.3 10650.5 1299.8 11372.3 3290 8082.3 478.2 8560.5 1282.6 1180.2 210.5 969.7 22628.5 1031.9 169.5 862.4 16070 4480.1 5288.5 9768.6 1511.7 3531.2 5042.9 418 11472.2 11809.2 418 9746.7 10164.7 2008 (RS in Million)

INCREASE/DECREASE
(RS in Million)

%

0 0 1725.5 17.70343 1644.5 16.17854 2968.4 196.3617 1757.3 49.76495 4725.7 93.70997 148.3 41 107.3 6558.5 14.37155 24.18879 12.44202 40.81207

2905.8 800.9 2104.9 -14.9 2090 17.2 355.1 597.4 -166 0.9 4111.5 4898.9

25.55156 24.34347 26.04333 -3.11585 24.41446 1.341026 14.06392 19.77229 -48.7232 1.155327 96.54808 47.9185

464.8 16.5586 -17.2 -1.44599 447.6 11.1998 4451.3 71.48501 6558.5 40.81207 55 | P a g e

HORIZONTAL BALANCE SHEET OF PIRAMAL HEALTH CARE 2008 (RS in Million) SOURCES OF FUNDS share holders fund share capital reserve and surplus Loan funds secured funds unsecured funds Deferred tax liabilities Deferred tax liabilities less: Deferred tax assets TOTAL APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Wip INVESTMENT Current Assets, Loans and Advances Inventories Sundry Debtors Cash and Bank Balance Other Current Assets Loans and Advances Less: Current Liabilities And Provisions Current Liabilities Provisions Net Current Assets TOTAL 2807 1189.5 3996.5 6226.9 16070 2328.7 248.2 2576.9 4971.3 15397.5 2524.9 3021.4 340.7 77.9 4258.5 10223.4 2264.8 2298.8 220.5 86.5 2677.6 7548.2 11372.3 3290 8082.3 478.2 8560.5 1282.6 11525.6 2824.1 8701.5 459.7 9161.2 1265 1031.9 169.5 862.4 16070 1033.6 162.1 871.5 15397.5 1511.7 3531.2 5042.9 1793.3 2168.8 3962.1 418 9746.7 10164.7 801.7 9762.2 10563.9 2007 (RS in Million)

INCREASE/DECREASE
(RS in Million)

%

-383.7 -47.86 -15.5 -0.15 -399.2 -3.77 -281.6 -15.70 1362.4 62.81 1080.8 27.27 -1.7 7.4 -9.1 672.5 -0.16 4.56 -1.04 4.36

-153.3 465.9 -619.2 18.5 -600.7 17.6 260.1 722.6 120.2 -8.6 1580.9 2675.2

-1.33 16.49 -7.11 4.02 -6.55 1.39 11.48 31.43 54.51 -9.94 59.04 35.44

478.3 941.3 1419.6 1255.6 672.5

20.53 379.25 55.08 25.25 4.36

56 | P a g e

APOLLO
HORIZONTAL BALANCE SHEET OF APOLLO CLINIC
SOURCES OF FUNDS share holders fund share capital reserve and surplus Loan funds secured funds unsecured funds Deferred tax liabilities Deferred tax liabilities less: Deferred tax assets TOTAL APPLICATION OF FUNDS goodwill on consolidation Fixed Assets Gross Block Less: Depreciation Net Block Capital Wip 9,40,66,66,748 2,77,99,15,727 6,62,67,51,021 2,37,26,42,095 8,99,93,93,116 INVESTMENT deferred tax asset Current Assets, Loans and Advances Inventories Sundry Debtors Cash and Bank Balance Loans and Advances Less: Current Liabilities And Provisions Current Liabilities Provisions 1,52,70,05,836 1,97,08,51,061 3,49,78,56,897 Net Current Assets MISCLLENIOUS EXPENCES TOTAL 3,53,72,99,534 4,57,575 18,82,99,45,390 1,40,29,34,365 1,40,47,55,444 2,80,76,89,809 3,01,14,57,935 30,70,000 16,02,64,17,485 1,08,84,17,301 1,60,73,54,960 64,61,60,389 3,69,32,23,781 7,03,51,56,431 79,08,90,463 1,26,15,86,026 1,04,55,72,862 2,72,10,98,393 5,81,91,47,744 6,29,27,95,165 7,59,17,84,175 2,34,83,23,005 5,24,34,61,170 70,83,19,516 5,95,17,80,686 7,06,01,08,864 62,65,60,116 62,65,60,116 18,82,99,45,390 58,96,96,790 58,96,96,790 16,02,64,17,485 4,36,55,24,963 12,92,91,000 4,49,48,15,963 2,92,19,52,423 13,43,96,000 3,05,63,48,423 60,23,57,020 13,02,91,12,296 13,63,14,69,316 58,68,57,020 11,64,78,20,007 12,23,46,77,027 2009 2008 INCREASE/DECREASE

% 2.64 11.86 11.42 49.40 -3.80 47.06 6.25 6.25 17.49

1,55,00,000 1,38,12,92,290 1,39,67,92,290 1,44,35,72,540 -51,05,000 1,43,84,67,540 3,68,63,326 3,68,63,326 2,80,35,27,910

1,81,48,82,573 43,15,92,722 1,38,32,89,851 1,66,43,22,579 3,04,76,12,430 -76,73,13,699

23.91 18.38 26.38 234.97 51.21 -10.87

29,75,26,838 34,57,68,934 -39,94,12,473 97,21,25,388 1,21,60,08,687 12,40,71,471 56,60,95,617 69,01,67,088 52,58,41,599 -26,12,425 2,80,35,27,905

37.62 27.41 -38.20 35.73 20.90 8.84 40.30 24.58 17.46 -85.10 17.49 57 | P a g e

HORIZONTAL BALANCE SHEET OF APOLLO CLINIC
SOURCES OF FUNDS share holders fund share capital reserve and surplus Loan funds secured funds unsecured funds Deferred tax liabilities Deferred tax liabilities Less eferred tax assets TOTAL APPLICATION OF FUNDS Goodwill on consolidation Fixed Assets Gross Block Less: Depreciation Net Block Capital Wip 7,59,17,84,175 2,34,83,23,005 5,24,34,61,170 70,83,19,516 5,95,17,80,686 INVESTMENT deferred tax asset Current Assets, Loans Advances Inventories Sundry Debtors Cash and Bank Balance Other Current Assets Loans and Advances Less: Current Liabilities And Provisions Current Liabilities Provisions 1,40,29,34,365 1,40,47,55,444 2,80,76,89,809 Net Current Assets MISCLLENIOUS EXPENCES TOTAL 3,01,14,57,935 30,70,000 16,02,64,17,485 2,72,10,98,393 5,81,91,47,744 7,06,01,08,864 58,96,96,790 58,96,96,790 16,02,64,17,485 2,92,19,52,423 13,43,96,000 3,05,63,48,423 58,68,57,020 11,64,78,20,007 12,23,46,77,027 2008 2007 INCREASE/DECREASE

% 13.65 68.00 64.24 -10.68 -56.34 -14.61 -0.73 -0.73 32.94 -100. -9.00 -1.01 -12.18 -61.60 -23.85 216.55 100.00

51,63,85,830 6,93,30,61,655 7,44,94,47,485 3,27,12,57,330 30,78,57,836 3,57,91,15,166 59,40,14,080
-

7,04,71,190 4,71,47,58,352 4,78,52,29,542 -34,93,04,907 -17,34,61,836 -52,27,66,743 -43,17,290 -43,17,290 3,97,06,77,628 -24,56,24,409 -75,12,19,127 -2,39,06,202 -72,73,12,925 -1,13,64,36,673 -1,86,37,49,598 4,82,97,68,702 -7,51,99,443

59,40,14,080 12,05,57,39,857 24,56,24,409 8,34,30,03,302 2,37,22,29,207 5,97,07,74,095 1,84,47,56,189 7,81,55,30,284 2,23,03,40,162 7,51,99,443

and 79,08,90,463 1,26,15,86,026 1,04,55,72,862

59,14,81,803 1,08,87,65,651 70,59,97,998 1,77,25,45,474 4,15,87,90,926

19,94,08,660 17,28,20,375 33,95,74,864 94,85,52,919 1,66,03,56,818

33.71 15.87 48.10 53.51 39.92

1,55,61,57,803 92,13,92,464 2,47,75,50,267 1,68,12,40,559 78,05,000 12,05,57,39,857

-15,32,23,438 48,33,62,980 33,01,39,542 1,33,02,17,376 -47,35,000 3,97,06,77,628 58 | P a g e

-9.85 52.46 13.33 79.12 -60.67 32.94

RELIGARE
HORIZONTAL BALANCE SHEET OF RELIGARE 2009 2008 INCREASE/DECREASE (RS in Million) (RS in Million) SOURCES OF FUNDS share holders fund share capital Share application money reserve and surplus Loan funds secured funds unsecured funds Deferred tax liabilities Deferred tax liabilities less: Deferred tax assets TOTAL APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Wip INVESTMENT Deferred tax assets Current Assets, Loans and Advances Inventories Sundry Debtors Cash and Bank Balance Other Current Assets Loans and Advances Less: Current Liabilities And Provisions Current Liabilities Provisions Net Current Assets Less: Balance in general reserve TOTAL

%

1,01,28,97,600 18,00,16,15,180 6,20,75,95,074 25,22,21,07,854

76,08,33,570 4,05,23,75,952 4,81,32,14,542

25,20,64,030 18,00,16,15,180 2,15,52,19,122 20,40,88,93,312

33.12 53.18 424.01

75,39,86,917 75,39,86,917 2,34,318

(75,39,86,917) (75,39,86,917) 2,34,318

-100 -100

25,22,23,42,172

5,56,72,01,459

19,65,51,40,713

353.05

3,73,02,927 35,66,472 3,37,36,455 59,573 3,37,96,028 20,23,54,65,231

55,95,052 4,63,052 51,32,000 7,46,166 58,78,166 5,45,27,65,823 14,40,880

3,17,07,875 31,03,420 2,86,04,455 (6,86,593) 2,79,17,862 14,78,26,99,408 (14,40,880)

566.71 670.20 557.37 -92.01 474.94 271.10 -100

92,08,507 4,73,20,06,822 10,93,91,143 11,34,44,954 4,96,40,51,426

6,36,191 1,76,83,519 12,98,18,731 6,43,93,014 21,25,31,455

85,72,316 4,71,43,23,303 (2,04,27,588) 4,90,51,940 4,75,15,19,971

1347.44 26659.41 -15.73 76.17 2235.67

3,54,50,946 1,12,56,525 4,67,07,471 4,91,73,43,955 3,57,36,958 25,22,23,42,172

1,67,15,084 8,86,99,781 10,54,14,865 10,71,16,590 5,56,72,01,459

1,87,35,862 (7,74,43,256) (5,87,07,394) 4,81,02,27,365 3,57,36,958 19,65,51,40,713

112.08 -87.30 -55.69 4490.64 353.05

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HORIZONTAL BALANCE SHEET OF RELIGARE 2008 2007 INCREASE/DECREASE (RS in (RS in Million) Million) SOURCES OF FUNDS share holders fund share capital Share application money reserve and surplus Loan funds secured funds unsecured funds Deferred tax liabilities Deferred tax liabilities less: Deferred tax assets TOTAL APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Wip INVESTMENT Deferred tax assets Current Assets, Loans and Advances Inventories Sundry Debtors Cash and Bank Balance Other Current Assets Loans and Advances Less: Current Liabilities And Provisions Current Liabilities Provisions Net Current Assets Less: Balance in general reserve TOTAL

%

76,08,33,570 4,05,23,75,952 4,81,32,14,542 75,39,86,917 75,39,86,917 -

64,39,68,640 2,23,89,14,710 2,88,28,83,350

11,68,64,930 1,81,34,61,242 1,93,03,31,192

18.14 80.99 66.95

3,50,00,000 3,50,00,000

71,89,86,917 71,89,86,917

2054.24 2054.24

5,56,72,01,459

2,91,78,83,350

2,64,93,18,109

90.79

55,95,052 4,63,052 51,32,000 7,46,166 58,78,166 5,45,27,65,823 14,40,880 6,36,191 1,76,83,519 12,98,18,731 6,43,93,014 21,25,31,455

82,662 7,420 75,242 75,242 2,89,81,08,963 53,296

55,12,390 4,55,632 50,56,758 7,46,166 58,02,924 2,55,46,56,860 13,87,584

6668.59 6140.59 6720.65 7712.34 88.14 2603.54

19,25,975 30,25,975 3,57,72,994 72,65,876 7,52,22,012

(12,89,784) 1,46,57,544 9,40,45,737 5,71,27,138 13,73,09,443

-66.96 484.39 262.89 786.23 182.53

1,67,15,084 8,86,99,781 10,54,14,865 10,71,16,590 5,56,72,01,459

3,09,60,859 2,46,15,304 5,55,76,163 1,96,45,849 2,91,78,83,350

(1,42,45,775) 6,40,84,477 4,98,38,702 8,74,70,741 2,64,93,18,109

-46.01 260.34 89.67 445.23 90.79

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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:

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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

2009-08 Religare: 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 7712.34% where as net sales grew by 121.93% are not efficient fixed assets utilization

3. 2009-08 Piramal: 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.
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2009-08 Apollo: 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. 2008-09 Piramal: 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

2008-09 Apollo: 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 sales 5. 2008-09 Piramal: Current liabilities growth is 16.55% lower than rise in materials cost. Company’s paying its suppliers faster to avail cash discounts. 2007-08: Current liabilities growth is 55.08% higher than rise in materials cost.
63 | P a g e

2008-09 Apollo: 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. Company’s paying its suppliers faster to avail cash discounts. 2008-09 Religare: Current liabilities growth is 11.19 % lower than rise in materials cost. Company’s paying its suppliers faster to avail cash discounts. 2008-07: Current liabilities growth is 55.08% higher than rise in materials cost. Company’s paying its suppliers faster to avail cash discounts.

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HORIZONTAL ANALYSIS PROFIT AND LOSS

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HORIZONTAL PROFIT AND LOSS OF PIRAMAL HEALTH CARE 2009 (RS in Million) INCOME Sales less: excise duty Net Sales Other Income EXPENDITURE materials staff cost research and development Expenses Other Expenses (Increase)/Decrease in WIP/Finished Goods PROFIT BEFORE INTREST,DEPRICIATION AND TAX Less: interest (net) PROFIT BEFORE DEPRICIATION AND TAX less: depreciation PROFIT BEFORE TAX less : Provision for taxation-Current and wealth tax Provision rs 1.0 Million less :MAT credit Entitlement less: Deferred tax less: Fringe Benefits tax PROFIT FOR THE YEAR Balance profit brought forward NET PROFIT AVAILABLE FOR APPROPRIATION proposed dividend on equity shares distribution tax dividend paid on preference shares 9551.4 2515.5 411.6 6755.5 -149.9 19084.1 4362.9 379 3983.9 838.1 3145.8 357.2 -320.4 107.3 248.5 392.6 2753.2 3208.6 5961.8 877.9 149.2 7805.3 2359.9 275.9 4710.3 23.9 15175.3 4205.4 173 4032.4 704.8 3327.6 400.3 -170.2 52.7 30 312.8 3014.8 3208.6 6223.4 877.9 149.2 13.4 23839.4 676.8 23162.6 284.4 23447 19974.2 852.9 19121.3 259.4 19380.7 2008 (RS in Million)

INCREASE/DECREASE %

3865.2 -176.1 4041.3 25 4066.3 1746.1 155.6 135.7 2045.2 -173.8 3908.8 157.5 206 -48.5 133.3 -181.8 -43.1 -150.2 54.6 218.5 79.8 -261.6 0 -261.6 0 0
-13.4

19.35 -20.64 21.13 9.63 20.98 22.37 6.59 49.18 43.41 -727.19 25.75 3.74 119.07 -1.20 18.91 -5.46 -10.76 88.24 103.60 728.33 25.51 -8.67 0 -4.20 0 0 -100

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distribution tax transfer to general reserve transfer to capital redemption reserve transfer to debenture redemption reserve BALANCE CARRIED TO BALANCE SHEET

1401.1 325 2753.2 3208.6

2.3 1626.7 345.3 3014.8 3208.6

-2.3

-225.6 -345.3
325

-100 -13.83 -100 -8.67 0

-261.6 0

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HORIZONTAL PROFIT AND LOSS OF PIRAMAL HEALTH CARE 2009 (RS in Million) INCOME sales less: excise duty Net Sales Other Income EXPENDITURE materials staff cost research and development Expenses Other Expenses (Increase)/Decrease in WIP/Finished Goods PROFIT BEFORE INTREST,DEPRICIATION AND TAX Less: interest (net) PROFIT BEFORE DEPRICIATION AND TAX less: depreciation PROFIT BEFORE TAX less : Provision for taxation-Current and wealth tax Provision rs 1.0 Million less :MAT credit Entitlement less: Deferred tax less: Fringe Benefits tax PROFIT FOR THE YEAR Balance profit brought forward NET PROFIT AVAILABLE FOR APPROPRIATION proposed dividend on equity shares distribution tax dividend paid on preference shares distribution tax transfer to general reserve transfer to capital redemption reserve transfer to debenture redemption reserve BALANCE CARRIED TO BALANCE SHEET 9551.4 2515.5 411.6 6755.5 -149.9 19084.1 7805.3 2359.9 275.9 4710.3 23.9 15175.3 23839.4 676.8 23162.6 284.4 23447 19974.2 852.9 19121.3 259.4 19380.7 2008 (RS in Million)

INCREASE/DECREASE

%

3865.2 -176.1 4041.3 25 4066.3 1746.1 155.6 135.7 2045.2

19.35 -20.64 21.13 9.63 20.98

22.37 6.59 49.18 43.41 -173.8 727.19 3908.8 25.75 157.5 3.74 206 119.07 -48.5 133.3 -181.8 -1.20 18.91 -5.46

4362.9 379 3983.9 838.1 3145.8 357.2 -320.4 107.3 248.5 392.6 2753.2 3208.6 5961.8 877.9 149.2 1401.1 325 2753.2 3208.6

4205.4 173 4032.4 704.8 3327.6 400.3 -170.2 52.7 30 312.8 3014.8 3208.6 6223.4 877.9 149.2 13.4 2.3 1626.7 345.3 3014.8 3208.6

-43.1 -10.76 -150.2 88.24 54.6 103.60 218.5 728.33 79.8 25.51 -261.6 -8.67 0 0 -261.6 0 0
-13.4 -2.3

-225.6 -345.3
325

-4.20 0 0 -100 -100 -13.86 -100

-261.6 0

-8.67 0

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HORIZONTAL PROFIT AND LOSS OF APOLLO CLINIC
2009 RS INCOME Sales Add: share holder profit less: excise duty Net Sales Other Income Total EXPENDITURE Materials staff cost Administrative expense financial expense Other Expenses Deferred Revenue Expenditure Total PROFIT BEFORE DEPRICIATION AND TAX less: depreciation PROFIT BEFORE EXTRAORDINARY ITEM AND TAX less: extraordinary item PROFIT BEFORE TAX less : Provision for taxation-Current and wealth tax Provision rs 1.0 Million less: Deferred tax less: Fringe Benefits tax less: income tax paid relating to earlier years add: deferred tax assets PROFIT AFTER TAX Add: shares in associates Balance profit brought forward NET PROFIT AVAILABLE FOR APPROPRIATION Dividend Dividend tax payable transfer to general reserve BALANCE CARRIED TO BALANCE SHEET TOTAL 1247926380 2428617243 40,16,01,584 6,82,52,190 75,00,00,000 1208763469 2428617243 89,24,27,592 1909879702 35,21,14,212 5,98,41,810 25,00,00,000 1247923680 1909879702 35,54,98,788 51,87,37,541 4,94,87,372 84,10,380 50,00,00,000 -3,91,60,211 51,87,37,541 39.84 27.16 14.05 14.05 200.00 -3.14 27.16 1180693563 1017452110 16,32,41,453 16.04 8,09,65,09,722 2,21,05,10,008 2,06,57,38,372 22,31,60,437 21,78,347 36,25,704 12,60,17,22,590 2,20,17,79,416 43,92,03,799 1,76,25,75,617 4,01,88,525 1,72,23,87,092 47,97,89,281 3,68,63,326 25040922 6,20,73,39,081 1,68,48,18,881 1,59,81,76,912 19,89,75,755 21,75,000 65,48,137 9,69,80,33,766 1,81,84,33,903 36,74,60,695 1,45,09,73,208 1,45,09,73,208 38,11,19,198 1,90,61,407 20066370 1,88,91,70,641 52,56,91,127 46,75,61,460 2,41,84,682 3,347 -29,22,433 2,90,36,88,824 38,33,45,513 7,17,43,104 31,16,02,409 4,01,88,525 27,14,13,884 9,86,70,083 1,78,01,919 49,74,552 18.71 25.89 93.39 24.79 30.43 31.20 29.26 12.15 0.15 -44.63 29.94 21.08 19.52 21.48 14,57,97,76,424 22,37,25,582 14803502006 11,25,39,41,778 26,25,25,891 11516467669 3,32,58,34,646 -3,88,00,309 3,28,70,34,337 29.55 -14.78 28.54 14,57,97,76,424 11,25,39,41,778 3,32,58,34,646 29.55 2008 RS

INCREASE/DECREASE

%

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HORIZONTAL PROFIT AND LOSS OF APOLLO CLINIC 2008 RS INCOME Sales Add: share holder profit less: excise duty Net Sales Other Income Total EXPENDITURE Materials staff cost Administrative expense financial expense Other Expenses Deferred Revenue Expenditure Total PROFIT BEFORE DEPRICIATION AND TAX less: depreciation PROFIT BEFORE EXTRAORDINARY ITEM AND TAX less: extraordinary item PROFIT BEFORE TAX less : Provision for taxation-Current and wealth tax Provision rs 1.0 Million less: Deferred tax less: Fringe Benefits tax less: income tax paid relating to earlier years add: deferred tax assets PROFIT AFTER TAX Add: shares in associates Balance profit brought forward NET PROFIT AVAILABLE FOR APPROPRIATION Dividend Dividend tax payable transfer to general reserve BALANCE CARRIED TO BALANCE SHEET TOTAL 89,24,27,592 1909879702 35,21,14,212 5,98,41,810 25,00,00,000 1247923680 1909879702 1017452110 6,20,73,39,081 1,68,48,18,881 1,59,81,76,912 19,89,75,755 21,75,000 65,48,137 9,69,80,33,766 1,81,84,33,903 36,74,60,695 1,45,09,73,208 1,45,09,73,208 38,11,19,198 1,90,61,407 20066370 5,09,81,17,378 1,42,19,03,365 1,42,68,89,253 27,00,70,026 1,55,13,780 1,15,05,137 8,24,39,98,939 1,32,20,20,827 40,75,36,197 91,44,84,630 30,97,87,818 1224272448 29,04,62,803 3,41,02,824 1,52,96,280 3,34,78,170 -4,83,92,214 898694585 5,48,84,261 2,60,80,089 979658935 25,81,92,915 3,93,14,888 15,00,00,000 53,21,51,192 979658935 1,10,92,21,703 26,29,15,516 17,12,87,659 -7,10,94,271 -1,33,38,780 -49,57,000 1,45,40,34,827 49,64,13,076 -4,00,75,502 53,64,88,578 -30,97,87,818 22,67,00,760 9,06,56,395 -1,50,41,417 47,70,090 -3,34,78,170 4,83,92,214 11,87,57,525 -5,48,84,261 86,63,47,503 93,02,20,767 9,39,21,297 2,05,26,922 10,00,00,000 71,57,72,488 93,02,20,767 21.76 18.49 12.00 -26.32 -85.98 -43.09 17.64 37.55 -9.83 58.67 -100.00 18.52 31.21 -44.11 31.18 -100.00 -100.00 13.21 -100.00 3321.87 94.95 36.38 52.21 66.67 134.51 94.95 11,25,39,41,778 26,25,25,891 11516467669 9,49,45,38,774 71480992 9,56,60,19,766 1,75,94,03,004 19,10,44,899 1,95,04,47,903 18.53 267.27 20.39 11,25,39,41,778 9,00,24,09,352 49,21,29,422 2,25,15,32,426 -49,21,29,422 25.01 -100.00 2007 RS

INCREASE/DECREASE

%

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HORIZONTAL PROFIT AND LOSS ACCOUNT OF RELIGARE 2009 2008 INCREASE/DECREASE (RS in Million) (RS in Million) INCOME sales less: excise duty Net Sales Other Income TOTAL EXPENDITURE less: depreciation personal expenses interest Other Expenses TOTAL PROFIT/(LOSE) BEFORE TAX less : Provision for taxation-Current and wealth tax Provision rs 1.0 Million less: Deferred tax less: Fringe Benefits tax Profit before prior period items prior period adjustment PROFIT/(LOSE) AFTER TAX balance brought forward to previous year NET PROFIT AVAILABLE FOR APPROPRIATION APPROPRIATION interim dividend distribution tax transfer to general reserve balance carried to Balance Sheet

%

12,54,91,482 12,54,91,482 14,89,56,826 27,44,48,308

34,14,12,813 34,14,12,813 4,84,761 34,18,97,574

(21,59,21,331) (21,59,21,331) 14,84,72,065 (6,74,49,266)

-63.24 -63.24 30627.89 -19.72

31,25,010 10,73,28,755 20,16,87,990 6,21,52,676 37,42,94,431 (9,98,46,123) 5,54,11,717 16,75,198 26,64,742

4,55,632 4,46,41,958 4,03,14,560 2,34,09,542 10,88,21,692 23,30,75,882 (42,688) (13,87,584) 23,626

26,69,378 6,26,86,797 16,13,73,430 3,87,43,134 26,54,72,739 (33,29,22,005) 5,54,54,405 30,62,782 26,41,116

585.86 140.42 400.28 165.50 243.95 -142.83 -129906 -220.72 11178.85

(15,95,97,780) 9,45,63,435

23,44,82,528 7,27,34,529

(39,40,80,308) 2,18,28,906

-168.06 30.01

(6,50,34,345)

30,72,17,057

(37,22,51,402)

-121.16

51,447

(6,50,85,792) (6,50,34,345)

17,38,83,423 1,53,21,943 2,34,48,253 9,45,63,435 30,72,17,057

(17,38,31,976) (1,53,21,943) (2,34,48,253) (15,96,49,227) (37,22,51,402)

-99.97 -100 -100 -168.82 -121.16

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HORIZONTAL PROFIT AND LOSS ACCOUNT OF RELIGARE 2008 2007 INCREASE/DECREASE (RS in Million) (RS in Million) INCOME sales less:excise duty Net Sales Other Income TOTAL EXPENDITURE less: depreciation personal expenses Interest Other Expenses TOTAL PROFIT/(LOSE) BEFORE TAX less : Provision for taxation-Current and wealth tax Provision Rs 1.0 Million less: Deferred tax less: Fringe Benefits tax Profit before prior period items prior period adjustment PROFIT/(LOSE) AFTER TAX balance brought forward to previous year NET PROFIT AVAILABLE FOR APPROPRIATION APPROPRIATION interim dividend distribution tax transfer to general reserve balance carried to Balance Sheet

%

34,14,12,813 34,14,12,813 4,84,761 34,18,97,574 153831768 153831768

34,14,12,813 18,75,81,045 4,84,761 18,80,65,806 121.93 122.25

4,55,632 4,46,41,958 4,03,14,560 2,34,09,542 10,88,21,692 23,30,75,882 (42,688) (13,87,584) 23,626

7420 4119798 16083331 6898289 27108838 126722930 8737910 -53296 26700 118011616 6000000 112011616 43456021

4,48,212 4,05,22,160 2,42,31,229 1,65,11,253 8,17,12,854 10,63,52,952 (87,80,598) (13,34,288) (3,074) (11,80,11,616) (60,00,000) 12,24,70,912 2,92,78,508

6040.59 983.59 150.66 239.35 301.42 83.92 -100.48 2503.54 -11.51 -100 -100 109.33 67.37

23,44,82,528 7,27,34,529

30,72,17,057

155467637

15,17,49,420

97.60

17,38,83,423 1,53,21,943 2,34,48,253 9,45,63,435 30,72,17,057

67382177 9450350 5900581 72734529 155467637

10,65,01,246 58,71,593 1,75,47,672 2,18,28,906 15,17,49,420

158.05 62.13 297.38 30.01 97.60

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HORIZONTAL ANALYSIS OF PIRAMAL DIAGNOSTIC CENTRE& APOLLO HEALTHCARE & RELIGARE

PROFIT AND LOSS ACCOUNT
2008-09: 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

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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, Piramal’s 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.

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RATIO ANALYSIS

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RATIO ANALYSIS OF PIRAMAL HEALTHCARE
SR No RATIO FORMULA 2009 2008 2007 Interpretation

LIQUIDI TY 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 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

2

quick ratio

current assets- 1.2 inventory/curr ent liabilities

1.2

1.1

3

collection period allowed to customers

receivable*36 5/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 It is good condition for the Piramal because the days is declined,

4

suppliers credit

payables*365 /purchase

70.6

78

78.7

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SR No

RATIO

FORMUL A

2009

2008

2007

Interpretation

PROFIT ABILITY RATIO

Result

Result

Result

1

gross profit ratio

gross profit*100/n et 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 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

2

Net profit ratio

net profit *100/net sales

11.9

15.8

11.8

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SR No

RATIO

FORMULA

2009

2008

2007

Interpretation

TURNOVER RATIO

Result

Result

Result

1

fixed asset turnover ratio

net sales/net block of fixed assets

1.2

1.2

1.2

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

2

net worth turnover ratio

net 23.2 sales/equity shareholders funds

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.

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SR RATIO No

FORMULA

2009

2008

2007

Interpretation

SOLEVENC Y RATIO

Result

Result

Result

1

NAV

equity shareholders fund/no.of equity shares

0.2

0.2

0.2

The Centre has same NAV in every year

2

debt 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.

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SR RATIO No

FORMULA

2009

2008

2007

Interpretation

CAPITAL MARKET RATIO 1 P/E Ratio market price of the equity share/EPS

Result

Results

Result

0.15

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

2

market price to NAV

market price of the equity share/ NAV

13.33

13.33

13.33

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SR RATIO No

FORMULA

2009

2008

2007

Interpretation

Others

Results

Results

Result

1

Working 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

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APOLLO
SR RATIO No FORMULA 2009 2008 2007 Interpretation

LIQUIDITY RATIO 1 current ratio current assest/current liabilities

Result

Result

Result

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

current assetsinventory/curr ent liabilities

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

3

collection period allowed to customers

receivable*36 5/total sales

40.2

40.9

40.1

4

suppliers credit

payables*365/ 26.6 purchase

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.

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SR No

RATIO

FORMULA

2009

2008

2007

Interpretation

PROFITABIL ITY RATIO

Result

Result

Result

1

gross profit ratio

gross profit*100/net sales

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.

2

Net profit ratio

net profit *100/net sales

8.1

9

11.2

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

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SR RATIO No

FORMULA

2009

2008

2007

Interpretation

TURNOVER RATIO

Result

Result

Result

1

fixed asset turnover ratio

net sales/net block of fixed assets

0.8

0.9

1

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

2

net worth turnover ratio

net sales/equity shareholders funds

8.9

8.2

9

Net 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

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SR RATIO No

FORMULA

2009

2008

2007

Interpretation

SOLEVEN CY RATIO

Result

Result

Result

1

NAV

equity shareholders fund/no. of equity shares long term debt/total net worth

10

10

10

The Centre has same NAV in every year

2

debt equity ratio

0.3

0.2

0.2

As 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.

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SR RATIO No

FORMULA

2009

2008

2007

Interpretation

Others

Results

Results

Result

1

Working capital to sales

working capital /sales

0.1

0.2

0.1

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

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RELIGARE

SR RATIO No

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

2

quick ratio

current assetsinventory/curr ent liabilities

97.38

2.01

1.35

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SR No

RATIO

FORMUL A

2009

2008

2007

Interpretation

PROFITABIL ITY RATIO

Result

Result

Result

1

gross profit ratio

gross profit*100/n et sales

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

2

Net profit ratio

net profit *100/net sales

-58.15

73.49

76.71

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SR .N O

RATIO

FORMULA

2009

2008

2007

Interpretation

TURNOVER RATIO

Resu lt

Result

Result

1

fixed asset turnover ratio

net sales/net block of fixed assets

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

2

net worth turnover ratio

net sales/equity shareholders funds

2.29

4.87

4.09

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SR No

RATIO

FORMULA

2009

2008

2007

Interpretation

SOLEVEN CY RATIO

Result

Result

1

debt equity ratio

long term debt/total net worth

0.03

0.15

0.01

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

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SR RATIO No

FORMULA

2009

2008

2007

Interpretation

Others

Results

Results

Result

1

Working capital to sales

working capital /sales

39.18

0.31

0.13

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

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FUTURE FORECASTING

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FUTURE FORECASTING
The 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
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? 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

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RECOMMENDATION

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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, Apollo’s 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.

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CONCLUSION

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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

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BIBLIOGRAPHY

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BIBLIOGRAPHY
Book: ? book: Financial Accounting for management by Ambrish Gupta Journal:
?

Journal of clinical oncology no 22, no 6,(march 15), 2004 pp 1126-1135

Websites:
? ? ? ? ?

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

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ANNEXURE

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QUESTIONNAIRE FOR THE STUDY ON DAIGNOSTIC CENTER IN AHMEDABAD

NAME:______________________________

ADDRESS:___________________________

___________________________________ ___________________________________ ___________________________________

CONTACT NO.:______________________________

1. WHAT ARE THE SERVICES PROVIDED BY THE DAIGNOSTIC
CENTER?

( ( ( ( (

) RADIOLOGY ) ULTRASOUND ) 1.5 TMI ) 64 SLICE CT ) PATHALOGY

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2. RECENTLY, HAVE YOUR CENTER INTRODUCED ANY NEW SERVICES?
( ( ) YES ) NO

3. IF YES THEN PLEASE SPECIFY. ___________________________________________ ___________________________________________

4. HOW MANY BRANCHES ARE THERE OF YOUR CENTER IN AHMEDABAD?
( ( ( ( ( )0 )1 )2 )3 ) OR MORE

5 HOW MANY COLLECTION CENTERS ARE THERE OF YOUR DAIGNOSTIC CENTER?
( ( ( ( ) 1-5 ) 6-10 ) 11-15 ) MORE THAN 15

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6 HOW MANY EMPLOYEES ARE WORKING IN YOUR CENTER?
( ( ( ( ( ) 1-10 ) 11-25 ) 26-35 ) 36-50 ) MORE THAN 50

7 HOW MUCH TIME DOES IT TAKE FOR YOUR CENTER TO ANALYSE ONE REPORT?
( ( ( ( ) LESS THAN A DAY ) 24 HOURS ) 48 HOURS ) MORE THAN 48 HOURS

8 HOW MUCH EXPENDITURE WAS INCURRED ON NEW MACHINE BY THE CENTER FOR THE YEAR?
( ( ( ( ( ) LESS THAN 10 LAKH ) 10-30 LAKH ) 30-80 LAKH ) 80-1 CRORE ) MORE THAN 1 CRORE

9 WHAT IS THE MAINTANCE COST FOR THE EQUIPMENTS DURING THE YEAR?
( ) LESS THAN 10 LAKH 104 | P a g e

( ( (

) 10-50 LAKH ) 50-1 CRORE ) MORE THAN 1 CRORE

10 WHAT IS THE REVENUE OF THE CENTER FOR THE YEAR?
( ( ( ( ( ) LESS THAN 10 LAKH ) 10-30 LAKH ) 30-80 LAKH ) 80-1 CRORE ) MORE THAN 1 CRORE

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