INDEX

S.NO CONTENTS PG.NO.

CHAPTER-1
Introduction

The technique of funds flow analysis is widely used by the financial analyst, credit
granting institution, and financial managers in performance of their jobs. Funds flow
statement is also known as statement of sources and uses of funds.
As the name implies, it is a statement which depicts the sources from which funds are
obtained and the uses to which they are being put. It is essentially derived from the
analysis, of changes which have occurred in assets and equities between two balance
sheets period.
According to Foulkes, “A statement of sources and applications of fund is a technical
device designed to analyse the changes in the financial condition of a business
enterprise between two dates.” It is a statement which highlights the underlying
financial movements and reflects the changes in the financial position or working
capital position in two different dates.

Meaning and Definition of Funds Flow Statement:

Funds flow statement enables us to study the changes in the financial position of a
business enterprise between beginning and ending financial statement dates. It is a
statement showing sources and uses of funds for a period of time.
Foulke defines the funds flow statement as “a statement of sources and application of
funds is a technical device designed to analyse the changes in the financial condition
of a business enterprise between two dates.”
ICWA in glossary of management accounting terms defines funds flow statement as “a
statement, either prospective and retrospective, setting out the sources and
applications of the funds of an enterprise. The purpose of the statement is to indicate
clearly the requirement of funds and how they are proposed to be raised and the
efficient utilization and application of the same.”
Funds flow statement is called by various names, such as sources and application of
funds, statement of changes in financial position, sources and uses of funds, summary
of financial operations, etc.
Need For the Study

The traditional package of financial statements has as such limited role to play in
financial analysis. The balance sheet is a statement of assets and liabilities on a
particular date and portrays the financial position as on that particular date.

Similarly, the income statement will show in more detail only the profit or loss arising
out of the productive and commercial activities of the enterprise during that period.
However, they fail to throw light on those major financial transactions, which are
behind the balance sheet changes.

In order to ascertain such major financial transactions or movement of financial

resources or funds, a separate statement is prepared by comparing the balance
sheets of two periods. This statement is variously known as funds flow statement or
statement of sources and uses of funds.

The funds statement aims to supplement the two conventional statements. It shows
information that can only be obtained through analysis and interpretation of income
statements and opening and closing balance sheets.

This information relates to the overall investment and financial activities of the
company, showing the principal sources and application of funds.

By recording these changes in the financial structure that have resulted from the
company’s trading activities, and at the same time indicating the reasons for those
changes, the funds statement serves the dual role of an accounting report and an
analytical tool. This is so because the funds statement can be used as part of
budgetary process in forecasting the company’s financial requirements for the future.
OBJECTIVES OF THE STUDY

The project was designed keeping in view the following objectives.

• To know about the nature and scope of financial management in a services sector
like "LOTUS HOSPITALS".

• To study about theoretical aspects of Funds flow Analysis. To know the process of
working capital of Lotus hospitals Pvt Ltd.

• To study the ability of Lotus hospital to meet its obligations. To know the extent to
Lotus hospital excitingly uses assets in the operation.

• To observe the change in the assets and liabilities position of the Hospital To draw
the current picture of financial position of the Firm.

• To review the requirement of the working capital, the cash inflow and outflow,
sources and application of funds is necessary.

• To analyse the changes in financial position and suggest some strategies for
protecting the fluctuations of financial management in "Lotus Hospitals Pvt Ltd".

• To study the strengths and weakness of "Lotus Hospitals Pvt Ltd" This study is to
determine the efficiency of the management in cash segment of the financial
activities.
SCOPE OF THE STUDY

 It helps in analysis of financial operations.

 It helps in the formation of a realistic dividend policy.

 It helps in the proper allocation of resources.

 It acts as a future guide.

 It helps in appraising the use of working capital.

 It helps in knowing the overall credit worthiness of a firm.

METHODOLOGY:

Methodology is a systematic procedure of collecting information on

order to analyse and verify a phenomenon, The present study is based on the data
collected from primary and secondary sources, The data collected from the primary
sources is called the 'Primary data'. While from the secondary sources is 'Secondary
data.

PRIMARY DATA:

It is the information collected directly without any reference.

Primary data consists of information obtained from interaction and discussion with
concerned official of the organization to elicit their opinions on various relevant matters.
In the process of interaction with officials it is planned to confirm through secondary
sources.

THE DATA COLLECTION INCLUDES:

* Through direct discussions and personal interviews with the concerned officer of
finance department of Lotus Hospitals accounts department.

SECONDARY DATA:

Secondary source of data includes collection of data through study of official records,
journals, annual reports, administration reports and various magazines to LOTUS
HOSPITALS
THE DATA COLLECTION INCLUDES :

• Collection of required data from annual reports of LOTUS LOSPITALS.

• Reference from textbooks and journals relating to financial management.

The information is collected from both the sources will be subjected to statistical
treatment to make the study a useful one. Application of statistical techniques
helps to draw useful conclusions and to enable to give appropriate suggestion to
improve the efficiencies of the organization.
LIMITATIONS OF THE STUDY:

Though the project is completed successfully a few limitations can be observed in the
study.
• The time allotted for the project study is too short, to depict a clear and real picture
of the company and its operations.
• Reliability on usage of secondary data available and the performance was made
accordingly. Some aspect of financial information was not available because of the
confidentiality of the LOTUS HOSPITALS.
• During the period of analysis, the company's current financial information is not
available. This work is confined to published data available.
• Due to the busy schedule of the executives, it was very difficult to get valuable
information about the organization.
• The calculated data can be compared with the other shipping companies but it was
not available. They are not compared with other Hospitals.
• The financial results of the company are having the effect of general economic
conditions and government policies.
• The performance therefore must consider the same but it is hard and difficult to
find the effect of such factors affecting the financial position of the company.
CHAPTER-2
INDUSTRY PROFILE:

The healthcare industry (also called the medical industry or health

economy) is an aggregation and integration of sectors within the economic
system that provides goods and services to treat patients
with curative, preventive, rehabilitative, and palliative care. It includes the generation
and commercialization of goods and services lending themselves to maintaining and
re-establishing health. The modern healthcare industry includes three essential
branches which are services, products, and finance and may be divided into many
sectors and categories and depends on the interdisciplinary teams of trained
professionals and paraprofessionals to meet health needs of individuals and
populations.
The healthcare industry is one of the world's largest and fastest-
growing industries. Consuming over 10 percent of gross domestic product (GDP) of
most developed nations, health care can form an enormous part of a country's
economy. U.S. health care spending grew 4.6 percent in 2019, reaching $3.8 trillion or
$11,582 per person.  As a share of the nation's Gross Domestic Product, health
spending accounted for 17.7 percent.

Backgrounds
For the purpose of finance and management, the healthcare industry is typically
divided into several areas. As a basic framework for defining the sector, the United
Nations International Standard Industrial Classification (ISIC) categorizes the
healthcare industry as generally consisting of:

1.Hospital activities;
2.Medical and dental practice activities;
3."Other human health activities".
 This third class involves activities of, or under the supervision of, nurses,
midwives, physiotherapists, scientific or diagnostic laboratories, pathology clinics,
residential health facilities, or other allied health professions, e.g. in the field of
optometry, hydrotherapy, medical massage, yoga therapy, music therapy,
occupational therapy, speech therapy, chiropody, homeopathy, chiropractic,
acupuncture, etc.
The Global Industry Classification Standard and the Industry Classification
Benchmark further distinguish the industry as two main groups:
healthcare equipment and services; and
pharmaceuticals, biotechnology and related life sciences.
The healthcare equipment and services group consist of companies and entities that
provide medical equipment, medical supplies, and healthcare services, such as
hospitals, home healthcare providers, and nursing homes. The latter listed industry
group includes companies that produce biotechnology, pharmaceuticals, and
miscellaneous scientific services.
Other approaches to defining the scope of the healthcare industry tend to adopt a
broader definition, also including other key actions related to health, such as
education and training of health professionals, regulation and management of health
services delivery, provision of traditional and complementary medicines, and
administration of health insurance.
Providers and professionals
See also: Healthcare provider and Health workforce
A healthcare provider is an institution (such as a hospital or clinic) or person (such as a
physician, nurse, allied health professional or community health worker) that provides
preventive, curative, promotional, rehabilitative or palliative care services in a
systematic way to individuals, families or communities.
The World Health Organization estimates there are 9.2 million physicians, 19.4 million
nurses and midwives, 1.9 million dentists and other dentistry personnel, 2.6 million
pharmacists and other pharmaceutical personnel, and over 1.3 million community
health workers worldwide, making the health care industry one of the largest
segments of the workforce.
The medical industry is also supported by many professions that do not directly
provide health care itself, but are part of the management and support of the health
care system. The incomes of managers and administrators, underwriters and medical
malpractice attorneys, marketers, investors and shareholders of for-profit services, all
are attributable to health care costs.
In 2017, healthcare costs paid to hospitals, physicians, nursing
homes, diagnostic laboratories, pharmacies, medical device manufacturers and other
components of the healthcare system, consumed 17.9 percent of the gross domestic
product (GDP) of the United States, the largest of any country in the world. It is
expected that the health share of the Gross domestic product (GDP) will continue its
upward trend, reaching 19.9 percent of GDP by 2025. In 2001, for the OECD countries
the average was 8.4 percent with the United States (13.9%), Switzerland (10.9%),
and Germany (10.7%) being the top three. US health care expenditures totalled
US$2.2 trillion in 2006. According to Health Affairs, US$7,498 be spent on every
woman, man and child in the United States in 2007, 20 percent of all spending. Costs
are projected to increase to $12,782 by 2016.
The government does not ensure all-inclusive health care to every one of its natives,
yet certain freely supported health care programs help to accommodate a portion of
the elderly, crippled, and poor people and elected law guarantees community to crisis
benefits paying little respect to capacity to pay. Those without health protection
scope are relied upon to pay secretly for therapeutic administrations. Health
protection is costly and hospital expenses are overwhelmingly the most well-known
explanation behind individual liquidation in the United States.

Delivery of services
See also: Gatekeeper physicians
The delivery of healthcare services—from primary
care to secondary and tertiary levels of care—is the most visible part of any
healthcare system, both to users and the general public. There are many ways of
providing healthcare in the modern world. The place of delivery may be in the home,
the community, the workplace, or in health facilities. The most common way is face-
to-face delivery, where care provider and patient see each other in person. This is
what occurs in general medicine in most countries. However, with modern
telecommunications technology, in absentia health care or Tele-Health is becoming
more common. This could be when practitioner and patient communicate over
the phone, video conferencing, the internet, email, text messages, or any other form
of non-face-to-face communication. Practices like these are especial applicable to
rural regions in developed nations. These services are typically implemented on a
clinic-by-clinic basis.
Improving access, coverage and quality of health services depends on the ways
services are organized and managed, and on the incentives influencing providers and
users. In market-based health care systems, for example such as that in the United
States, such services are usually paid for by the patient or through the patient's health
insurance company. Other mechanisms include government-financed systems (such
as the National Health Service in the United Kingdom). In many poorer
countries, development aid, as well as funding through charities or volunteers, help
support the delivery and financing of health care services among large segments of
the population.
The structure of healthcare charges can also vary dramatically among countries. For
instance, Chinese hospital charges tend toward 50% for drugs, another major
percentage for equipment, and a small percentage for healthcare professional fees.
China has implemented a long-term transformation of its healthcare industry,
beginning in the 1980s. Over the first twenty-five years of this transformation,
government contributions to healthcare expenditures have dropped from 36% to
15%, with the burden of managing this decrease falling largely on patients. Also over
this period, a small proportion of state-owned hospitals have been privatized. As an
incentive to privatization, foreign investment in hospitals—up to 70% ownership has
been encouraged.

Systems
Main article: Health system
Healthcare systems dictate the means by which people and institutions pay for and
receive health services. Models vary based on the country, with the responsibility of
payment ranging from public (social insurance) and private health insurers to
the consumer-driven by patients themselves. These systems finance and organize the
services delivered by providers. A two-tier system of public and private is common.
The American Academy of Family Physicians define four commonly utilized systems of
payment:
Beveridge model
Named after British economist and social reformer William Beveridge, the Beveridge
model sees healthcare financed and provided by a central government. The system
was initially proposed in his 1942 report, Social Insurance and Allied Services—known
as the Beveridge Report. The system is the guiding basis of the modern British
healthcare model enacted post-World War II. It has been utilized in numerous
countries, including The United Kingdom, Cuba, and New Zealand.
The system sees all healthcare services— which are provided and financed solely by
the government. This single payer system is financed through national
taxation. Typically, the government owns and runs the clinics and hospitals, meaning
that doctors are employees of the government. However, depending on the specific
system, public providers can be accompanied by private doctors who collect fees from
the government. The underlying Principal of this system is that healthcare is a
fundamental human right. Thus, the government provides universal coverage to all
citizens. Generally, the Beveridge model yields a low cost per capita compared to
other systems.

Bismarck model
The Bismarck system was first employed in 1883 by Prussian Chancellor Otto von
Bismarck. In this system, insurance is mandated by the government and is typically
sold on a non-profit basis. In many cases, employers and employees finance insurers
through payroll deduction. In a pure Bismarck system, access to insurance is seen as a
right solely predicated on labour status. The system attempts to cover all working
citizens, meaning patients cannot be excluded from insurance due to pre-existing
conditions. While care is privatized, it is closely regulated by the state through fixed
procedure pricing. This means that most insurance claims are reimbursed without
challenge, creating low administrative burden. Archetypal implementation of the
Bismarck system can be seen in Germany's nationalized healthcare. Similar systems
can be found in France, Belgium, and Japan.

National health insurance mode

The national insurance model shares and mixes elements from both the Bismarck and
Beveridge models. The emergence of the National Health Insurance model is cited as
a response to the challenges presented by the traditional Bismarck and Beveridge
systems. For instance, it is difficult for Bismarck Systems to contend with aging
populations, as these demographics are less economically active. Ultimately, this
model has more flexibility than a traditional Bismarck or Beveridge model, as it can
pull effective practices from both systems as needed.
This model maintains private providers, but payment comes directly from the
government. Insurance plans control costs by paying for limited services. In some
instances, citizens can opt out of public insurance for private insurance plans.
However, large public insurance programs provide the government with bargaining
power, allowing them to drive down prices for certain services and medication. In
Canada, for instance, drug prices have been extensively lowered by the Patented
Medicine Prices Review Board. Examples of this model can be found in Canada,
Taiwan, and South Korea.

Out-of-pocket model
In areas with low levels of government stability or poverty, there is often no
mechanism for ensuring that health costs are covered by a party other than the
individual. In this case patients must pay for services on their own. Payment methods
can vary—ranging from physical currency, to trade for goods and services. Those that
cannot afford treatment typically remain sick or die.

Inefficiencies
In countries where insurance is not mandated, there can be gaps in coverage—
especially among disadvantaged and impoverished communities that cannot afford
private plans. The UK National Health System creates excellent patient outcomes and
mandates universal coverage but also suffers from large lag times for treatment.
Critics argue that reforms brought about by the Health and Social Care Act 2012 only
proved to fragment the system, leading to high regulatory burden and long treatment
delays. In his review of NHS leadership in 2015, Sir Stuart Rose concluded that "the
NHS is drowning in bureaucracy."

hospital, an institution that is built, staffed, and equipped for the diagnosis of disease;

for the treatment, both medical and surgical, of the sick and the injured; and for their
housing during this process. The modern hospital also often serves as a centre for
investigation and for teaching.

To better serve the wide-ranging needs of the community, the modern hospital has
often developed outpatient facilities, as well as emergency, psychiatric, and
rehabilitation services. In addition, “bed less hospitals” provide
strictly ambulatory (outpatient) care and day surgery. Patients arrive at the facility for
short appointments. They may also stay for treatment in surgical or medical units for
part of a day or for a full day, after which they are discharged for follow-up by a
primary care health provider.

Hospitals have long existed in most countries. Developing countries, which contain a
large proportion of the world’s population, generally do not have enough hospitals,
equipment, and trained staff to handle the volume of persons who need care. Thus,
people in these countries do not always receive the benefits of
modern medicine, public health measures, or hospital care, and they generally have
lower life expectancies.

In developed countries the hospital as an institution is complex, and it is made more

so as modern technology increases the range of diagnostic capabilities and expands
the possibilities for treatment. As a result of the greater range of services and the
more-involved treatments and surgeries available, a more highly trained staff is
required. A combination of medical research, engineering, and biotechnology has
produced a vast array of new treatments and instrumentation, much of which
requires specialized training and facilities for its use. Hospitals thus have become
more expensive to operate, and health service managers are increasingly concerned
with questions of quality, cost, effectiveness, and efficiency.

History of hospitals

As early as 4000 BCE, religions identified certain of their deities with healing. The
temples of Saturn, and later of Asclepius in Asia Minor, were recognized as healing
centres. Brahminic hospitals were established in Sri Lanka as early as 431 BCE, and
King Ashoka established a chain of hospitals in Hindustan about 230 BCE. Around
100 BCE the Romans established hospitals (valetudinaria) for the treatment of their
sick and injured soldiers; their care was important because it was upon
the integrity of the legions that the power of ancient Rome was based.
however, that the modern concept of a hospital dates from 331 CE when Roman
emperor Constantine I (Constantine the Great), having been converted to Christianity,
abolished all pagan hospitals and thus created the opportunity for a new start. Until
that time disease had isolated the sufferer from the community. The Christian
tradition emphasized the close relationship of the sufferer to the members of the
community, upon whom rested the obligation for care. Illness thus became a matter
for the Christian church.

About 370 CE St. Basil the Great established a religious foundation in Cappadocia that

included a hospital, an isolation unit for those suffering from leprosy, and buildings to
house the poor, the elderly, and the sick. Following this example, similar hospitals
were later built in the eastern part of the Roman Empire. Another notable foundation
was that of St. Benedict of Nursia at Montecassino, founded early in the 6th century,
where the care of the sick was placed above and before every other Christian duty. It
was from this beginning that one of the first medical schools in Europe ultimately
grew at Salerno and was of high repute by the 11th century. This example led to the
establishment of similar monastic infirmaries in the western part of the empire.

The modern hospital

Hospitals may be compared and classified in various ways: by ownership and control,
by type of service rendered, by length of stay, by size, or by facilities and
administration provided. Examples include the general hospital, the specialized
hospital, the short-stay hospital, and the long-term-care facility.

Bed number and length of stay

Hospitals may be compared by the number of beds they contain. Modern hospitals
tend to rarely exceed 800 beds, and though some integrated health facilities may
have more beds, they often comprise multiple geographic locations, each with several
hundred beds. In the early 21st century, it was thought that a facility of 800 beds was
the largest unit that could be governed satisfactorily from a single administrative unit
while maintaining a corporate unity.

Another index is the average bed-occupancy rate—that is, the percentage of available
beds actually occupied per day or per month. Bed-occupancy rates may be higher in
the cold winter months, which bring more respiratory disease. In developing
countries, the bed-occupancy rate is often more than 100 percent—there are more
patients in the hospital than there are beds for them. This situation has also emerged
in some developed countries where demand for services has outstripped supply.

The amount of time that a patient spends in a hospital bed, or the average length of
stay (ALOS), is another important index and depends on the nature of the hospital. In
an acute-care hospital the ALOS will be relatively short. In hospitals catering to
the chronically ill, the ALOS will, for the most part, be higher. There may be significant
variations between units in the same hospital, depending on the acuity and
comorbidities of the patients (comorbidity is the presence of two or more unrelated
diseases or disease processes in a single patient). In hospitals in developing countries,
the ALOS is much shorter than in developed countries.

Ownership and control

The issues of hospital ownership and control underwent significant analysis and
change in the late 20th and early 21st centuries. Such transformation was prevalent in
developed countries, particularly those in which fiscal sustainability was problematic.

In many countries nearly all hospitals are owned and operated by the government. In
Great Britain, except for a small number run by religious orders or serving special
groups, most hospitals are within the National Health Service. The local hospital
management committee answers directly to the regional hospital board and
ultimately to the Department of Health and Social Security. In the United States most
hospitals are neither owned nor operated by governmental agencies. In some
instances, hospitals that are part of a regional health authority are governed by the
board of the regional authority, and hence these hospitals no longer have their own
boards.

In Canada some hospitals are owned by religious orders and are contracted to deliver
publicly funded services. Other hospitals may be owned by municipalities
or provincial or territorial governments.

Worldwide, many hospitals are associated with universities; others were founded by
religious groups or by public-spirited individuals. Mental health facilities traditionally
have been the responsibility of state or provincial governments, while military and
veterans hospitals have been provided by the federal government. In addition, there
are a number of municipal and county general hospitals.
Financing

Because hospitals may serve specific populations and because they may be not-for-
profit or for-profit, there exist a variety of mechanisms for hospital financing. Almost
universally, hospital-construction costs are met at least in some part by governmental
contributions. Operating costs, however, are taken care of in different ways. For
example, funds may come from private endowments or gifts, general funds of some
unit of government, funds collected by insurance carriers from subscribers, or some
combination thereof. In some countries, operating costs may be supplemented in part
by public or private sources that pay charges on uninsured or inadequately insured
patients or by out-of-pocket payment by these individuals.

In many countries, and in Europe in particular, the financial support of services in

hospitals tends to be collectivized, with funding provided through public
revenues, social insurance, or a combination of the two. Thus, the costs of hospital
operation are covered infrequently by payments made directly by patients. Details
vary somewhat from country to country. In Sweden, for example, most hospital
operating costs are financed by public revenues collected by regional governments.
Many other European countries follow a similar model, with operating costs for
hospitals paid out of national insurance funds; such is the case in the Netherlands,
Finland, Norway, and elsewhere. In contrast, other countries, such as the United
States, rely heavily on private insurance funds.
Private health insurance corporations or agencies exist in many countries. These
entities may offer different or more services relative to national health insurance,
although generally at additional cost as well. Private insurance funds offer
an alternative mechanism of hospital financing.

The general hospital
General hospitals may be academic health facilities or community-based entities.
They are general in the sense that they admit all types of medical and surgical cases,
and they concentrate on patients with acute illnesses needing relatively short-term
care. Community general hospitals vary in their bed numbers. Each general hospital,
however, has an organized medical staff, a professional staff of other health providers
(such as nurses, technicians, dietitians, and physiotherapists), and basic diagnostic
equipment. In addition to the essential services relating to patient care, and
depending on size and location, a community general hospital may also have
a pharmacy, a laboratory, sophisticated diagnostic services (such
as radiology and angiography), physical therapy departments, an obstetrical unit (a
nursery and a delivery room), operating rooms, recovery rooms, an outpatient
department, and an emergency department. Smaller hospitals may diagnose and
stabilize patients prior to transfer to facilities with specialty services.

In larger hospitals there may be additional facilities: dental services, a nursery for
premature infants, an organ bank for use in transplantation, a department of
renal dialysis (removal of wastes from the blood by passing it through semipermeable
membranes, as in the artificial kidney), equipment for inhalation therapy, an intensive
care unit, a volunteer-services department, and, possibly, a home-care program or
access to home-care placement services.

The complexity of the general hospital is in large part a reflection of advances in

diagnostic and treatment technologies. Such advances range from the 20th-century
introduction of antibiotics and laboratory procedures to the continued emergence of
new surgical techniques, new materials and equipment for complex therapies
(e.g., nuclear medicine and radiation therapy), and new approaches to and equipment
for physical therapy and rehabilitation.

The legally constituted governing body of the hospital, with full responsibility for the
conduct and efficient management of the hospital, is usually a hospital board. The
board establishes policy and, on the advice of a medical advisory board, appoints a
medical staff and an administrator. It exercises control over expenditures and has the
responsibility for maintaining professional standards.

King George Hospital, Visakhapatnam

King George Hospital  (shortly KGH) is a first Government
General Hospital located in Visakhapatnam, Andhra Pradesh, India. It is the largest
and busiest government hospital in Andhra Pradesh. The hospital served the needs of
north coastal Andhra Pradesh and adjacent Orissa for more than 150 years. Takes in
about 1000 cases above O.P.D daily of people coming from even Orissa, Chhattisgarh .

HISTORY
 It was started as civil dispensary in 1845 and upgraded into a 30 bedded
hospital in 1857. The hospital's new building was inaugurated by Hon'ble Raja of
Panagal, Chief Minister of Madras on 19 July 1923.
The hospital sees over 1250 outpatients every-day in various departments.
Laboratory tests can be done inside the hospital. Turnaround time for laboratory test
results is about three to four days. Average wait time to see a doctor is between one
and two hours on a weekday.
In the year 2020, Dr P V Sudhakar, Principal, AMC College (AMC),
unveiled a 380 crores modernisation plan for the college.

Affiliated Hospitals
1.Rani Chandramani Devi Hospital for Physically Handicapped

2.Government Victoria Hospital for Women and Children

3.Government Hospital For Mental Care

4.Government hospital for Chest and TB diseases

5.Dr. Rednam Surya Prasada Rao Regional Eye Hospital

6.Regional Health Center at Simhachalam

7.UGPHC at Subbavaram

8.CHC at Aganampudi
 CHAPTER-3

Lotus Hospital for Women & Children

Catering to Smiles, Care, Excellence & Leadership in Healthcare Management

Achieving universal health coverage particularly for infants, cute toddlers, children and
women is an appropriate, feasible and paramount goal for all nations. Lotus Hospitals is
driven to provide the highest quality healthcare services for women and children of India by
extending the entire spectrum health services to them.

Incorporated at Lakdikapul, Hyderabad on 10th November 2006, the Lotus Hospitals

Groups' excellence runs through all its branches standing out of the crowd:
as an exemplary model of integrating women's and children's healthcare
services all under one roof. Lotus Hospitals for Women and Children steadfastly pursue the
quality policy ' To fulfil the healthcare needs of patients using the best practices in an
ethical and cost-effective manner by a qualified team of doctors and support staff '.

The state-of-art medical infrastructure and facilities follow international protocols of safety
and efficiency. The flagship centre ( main tertiary care hospital ) is a 150 bedded well
equipped hospital nestled in the heart of the city, equidistant from all directions The
Hospital is managed by its Directors Dr. V.S.V. Prasad as CEO, Dr.(Mrs) V. Hema Malini,
Director-Operations, Dr.(Retd.Lt.Col) N.K. Sarangi, Medical Superintendent,  and staffed by
competent teams of specialist doctors, consultants, technicians, analysts, registered nurses,
qualified general nursing midwifes, auxiliary nursing midwifes, qualified pharmacists,
housekeeping personnel, biomedical engineers and administrative personnel. The Hospital
is also equipped with a full-fledged laboratory to carry out all necessary diagnostic
investigations.

The Lotus team is dedicated to provide the highest quality of care to women and children in
their mission to make their chain of centers world class hospitals in India. Lotus Hospital for
Women & Children is empanelled with several governmental and corporate organizations,
insurance companies and third party administered organizations for the provision of
healthcare services.
Over the last decade, the organization has established three more hospitals in addition to
the flagship center at Lakdikapul, Hyderabad, Telangana. They include two within
Hyderabad: at Kukatpally and L.B. Nagar and one at Visakhapatnam in Andhra Pradesh
State with a combined capacity of 300 beds. The unique feature of these finest centers in
India is the meticulous attention paid to the   design and detail and in particular a very child
friendly ambience for areas of the hospital catering to children. The floor plans
are all detailed and planned meticulously to ensure smooth workflow and patient transfers
between floors for their healthcare needs.

Accreditations
  The hospital is accredited by the College of Paediatric Critical Care, India and the
Indian Academy of Paediatrics – Intensive Care Chapter, for training
paediatricians as 'Pediatric Intensivists' and by National Board of Examinations,
Ministry of Health & Family Welfare, Government of India, New Delhi, for
training medical graduates as pediatricians.

 Lotus Hospital has been accredited by the I. A. P. Neonatology Chapter (Indian

Academy of Pediatrics-Neonatology Chapter, for training pediatricians as
'Neonatologists'.

Treatment of patients is carried out under controlled conditions as per the standard
operating procedures and protocols. Doctors ensure close monitoring of the condition
of the patients and evaluate the status during their frequent visits. After delivery, the
mother and child are tagged suitably prior to transfer to the ward to ensure positive
identification. The child's foot print is marked in the Medicals record for identification
and traceability. Customer feedback and complaints are timely evaluated to get an
insight into the level of customer satisfaction.

The Man behind blooming Lotus 

 "We are an ethical, transparent group and follow purely ' evidence-based medicine'
in all our centers with a wide variety of accommodation to suit the budget of low-
income families in addition to the middle -upper income strata of society."- Dr. V.S.V.
PRASAD

A triple gold medallist in MBBS and MD Pediatrics degree holder from AIIMS, New
Delhi,  Dr. V.S.V. PRASAD needs no introduction. He brings with him an illustrious and
brilliant academic career after his MD with advanced clinical fellowship training in
both the United Kingdom and the United States of America for seven years. With an
expertise of 26 years in Neonatology and Pediatric Intensive Care, way back in 1997
during a visit to India on vacation from the United States, he observed the
stark condition of hospitals in the country. This prompted to
him to think of how world class healthcare facilities could be created in
India and the feasibility of setting up a world class hospital in india. He played an
instrumental role in bringing advanced children's health care    to undivided Andhra
Pradesh State for the first time in 1999, the year he returned
permanently back to Hyderabad from the United States.
Before his return and initiatives, there was a non/existent advanced and structured he
althcare system for children and women in the city and state. He pioneered
and spearheaded the change   Dr. V.S.V. Prasad is currently serving Lotus Hospital for
Women & Children, Lakdikapul, Hyderabad as the Chief Executive Officer and Chief
Consultant Neonatologist & Pediatric Intensivist. He is an active member of many
professional bodies including the Indian Academy of Pediatrics, IAP Intensive Care
Chapter and the Indian Society of Critical Care Medicine, ISCCM. He has published
original articles and several case reports in several journals with over 14 publications
in peer reviewed, indexed medical journals.

Lotus Hospital for Women & Children: ' An inside view ' 
The Hospital chain has established quality objectives and systems in line with the
national standards set by the National Accreditation Board for Hospitals and the
National Accreditation Board for Testing & Calibration Laboratories to consistently
provide medical services to patients meeting customer, legal, and other
requirements, aiming to enhance customer satisfaction, preventing  pollution,
preventing ill health and injury to staff and visitors, improving  the performance of the
hospital and collecting  and analyzing data to identify the areas for improvement in
the processes, services and systems of relevant functions and levels for the processes
needed for the quality management system. The performances of all functional
activities are reviewed periodically to evaluate the achievement of quality objectives.

Management review of all activities of the hospital is scheduled following regular

internal audits which are planned and scheduled once in six -month. A project titled
Inspirational Workplace for reduction in the attrition of staff with the implementation
of HIMS Software application package and the training of staff was successfully
executed during 2013-2016 as a Service Delivery Innovation. Technology driven
innovations are promptly applied in Pediatric and Obst etric– Gynecology services. As
a part of continuing education and research, various courses are offered and several 
seminars  continuing medical and nursing education programmes in the fields of 
pediatrics, pediatric specialities, neonatology and obstetrics & gynecology.  Training
Programs of 1 hour duration are conducted on about 80 different clinical and
nonclinical topics covering all nursing staff. The management is continually on the
lookout for opportunities to improve the performance of the hospital and to enhance
customer satisfaction.
Claps and way post
 The clinical research papers published by the consultants received 16 Citations
(National & International journals).

 Lotus Hospital for Women & Children was adjudged the 'Best Paediatric Hospital
in India, Ranked No.1' by 'Indian Healthcare Awards 2016' sponsored by ICICI
Lombard Insurance 24X7 & CNBC TV 18.

 Lotus Hospital for Women & Children received the 'Express Healthcare
Excellence Awards 2016' for 'Best Inspirational Work Place' by United
Biotech Limited & Indian Express group.

 V.S.V. Prasad, CEO, of the Lotus Hospital for Women & Children was honoured
with a citation and listed among the ' 100 Most Impactful Healthcare Leaders ' –
Global Listing, conferred at the " World Health &Wellness Congress and Awards
by CMO Asia and received the citation at a glittering event in Mumbai on 14
February, 2017.

 Lotus Hospital for Women & Children was recognised as the 'Best Hospital of the
Year in Pediatrics in the Telugu States' and was presented the 'Times of India
Healthcare Achievers Awards, 2017', on 28th February, 2017.

 V.S.V.Prasad was  awarded  a citation  for  being the " Legend of the Year in
Pediatrics " at the 'Times of India Healthcare Achievers Awards, 2017', on 28th
February, 2017. He was chosen as THE ONLY ONE PEDIATRICIAN amongst over
5000 Pediatricians all over Telangana and Andhra Pradesh states.
  Lotus Hospital for Women& Children received an International award and
citation for recognition as the 'Best Hospital for Pediatrics & Gynecology 'by
CMO Asia at the Golden Globe Tigers Award 2017 for Excellence in Leadership
and Healthcare Management, at Kuala Lumpur, Malaysia on 24th April, 2017.

Lotus Hospitals For Women and Children in Visakhapatnam, District.

Lotus Hospitals For Women and Children in Visakhapatnam, District. Hospital and
Medicals with Address, Contact Number, Photos, Maps. View Lotus Hospitals For
Women and Children, on ELookAdsLocation and Overview: Established in the year,
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Visakhapatnam and District. Over the course of its journey, this business has
established a firm foothold in it?s industry. The belief that customer satisfaction is as
important as their products and services, have helped this establishment garner a vast
base of customers, which continues to grow by the day.In Visakhapatnam , this
establishment occupies a prominent location in . It is an effortless task in commuting
to this establishment as there are various modes of transport readily available. It is at
10-59-9, Opp. Waltair Club, Siripuram, Visakhapatnam 530003 Dist Visakhapatnam
Andhra Pradesh, Siripuram, which makes it easy for first-time visitors in locating this
establishment. The popularity of this business is evident from the reviews it has
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It is known to provide top service in the following categories: Lotus Hospitals For
Women and Children in Visakhapatnam, District. has a wide range of products and
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for the address and contact details of Lotus Hospitals For Women and Children in
Visakhapatnam, District.

HOSPITAL BRANCHES
Lotus Hospitals Lakdikapul

040 4040 (4444) / (4400)

• 150 Bedded Hospital

• Advanced ICU / NICU / PICU
• Advanced Operation Theater
• Best-in-class Labour Room
• Located in the Heart of the City
• Valet Parking Available
• Highly Hygienic Cafeteria
• Free Ambulance within 5km Radius (subject to availability)

Lotus Hospitals Kukatpally

040 4040 (6666) / (6688) / (6699)

• 65 Bedded Hospital
• Advanced ICU / NICU / PICU
• Advanced Operation Theater
• Best-in-class Labour Room
• IVF Theatre & Laboratory
• Valet Parking Available
• Highly Hygienic Cafeteria
• Free Ambulance within 5km Radius (subject to availability)

Lotus Hospitals L.B. Nagar

040 4040 2222

• 50 Bedded Hospital
• Advanced ICU / NICU / PICU
• Advanced Operation Theater
• Best-in-class Labour Room
• Located on the Mainroad between L.B. Nagar & Nagole
• Valet Parking Available
• Highly Hygienic Cafeteria
• Free Ambulance within 5km Radius (subject to availability)

Lotus Hospitals Visakhapatnam

0891 6656 666s

• 50 Bedded Hospital
• Advanced ICU / NICU / PICU
• Advanced Operation Theater
• Best-in-class Labour Room
• Located on Walter Mainroad
• Valet Parking Available
• Highly Hygienic Cafeteria
• Free Ambulance within 5km Radius (subject to availability)
CONTACT DETAILS

Dr.Saraj Kumar
CHAIRMAN
Lotus Hospital For Women and Children

Dr.V.S.V. Prasad
Chief Executive Officer
Lotus Hospital For Women and Children

A Jyothi
HR In Visakhapatnam
Lotus Hospital For Women and Children
CHAPTER-4
FUNDS FLOW STATEMENT:

The basic financial statements i.e, The Balance sheet and Profit and Loss account or
income statement of business, reveal the net effect of the various transactions on the operational
and financial position of the assets and liabilities of an undertaking at particular point of time. The
asset side of the balance sheet shows the deployment of resources of an undertaking while the
liabilities side indicates its obligation i.e., the manner in which these resources are obtained.

The Profit and Loss account reflects the results of the business operations for a
period of time. It contains a summary of expenses incurred and the revenues realized in an
accounting period. The Balance sheet gives a static view of the resources (liabilities) of a business
and uses (assets) to which these resources have been put a certain point of time. The Profit and
Loss account, in a general way. indicates the resources provided by operations.

But there are many transactions that takes place in an undertaking and which do
not operate through Profit and Loss account. Thus another statement has to be prepared to show
the changes in assets and liabilities from the end of one period of time to the end of another
period of time. The statement is called is called statement of changes in financial position or the
funds flow statement.

The funds flow statement is a statement, which shows the movement

of funds and is a report of financial operations of business undertakings. It indicates various
means by which funds were obtained during a particular period and the way to which these funds
were employed. In simple words, it is a statement of sources and application of funds.

MEANING AND CONCEPT OF FLOW OF FUNDS:

 The term 'Flow' means movement and includes both inflow and outflow. The term 'Flow
of funds' means transfer of economic values from one assets of equity to another. Flow of funds is
said to have taken place when any transaction makes changes in the amount of funds available
before happening of the transaction. If the transaction results in the increase of funds, it is known
as application of funds. Further, in case the transaction does not change funds, it is said to have
not resulted in the flow of funds. According to the working capital concept of funds, the term 'flow
of funds' refers to the movement of funds in the working capital. If any transaction resuits in the
increase in working capital, it is said to be a source or inflow of funds and if it results in decrease
of working capital, it is said to be an application or outflow of funds.

Components of Funds Flow Statement:

A Funds flow statement comprises of:

 Source of funds : It talks about the extent of funds availed from

o Owners
o Out siders

 Application of Funds : It talks about how the funds have been utilized
o Funds deployed in fixed assets
o Funds deployed in current assets

SIGNIFICANCE OR IMPORTANCE OF FUNDS FLOW STATEMENT:

A Funds flow statement is an essential tool for the financial analysis
and is of primary importance to the financial management. Now a days it is being widely used by
the financial analysis, credit granting institutions and financial managers. The basic purpose of a
funds statement is to reveal the changes in working capital on the two balance sheet dates. It also
describes the sources from which additional Capital has been applied such a statement is
particularly useful in assessing the growth of the firm resulting in financing these needs.
By making use of projected FUNDS FLOW STATEMENT, the management can come to know
the adequacy or inadequacy of working capital even in advance. One can plan the debts,
expansion of the business, allocation of resources etc.,
The significance or importance of FUNDS FLOW STATEMENT can be were followed
from its various uses given below

* It helps in the analysis of financial operations:

The financial statements reveal the net effect of various transactions on the
operation and financial position of a concern. The balance sheet gives a static view of the
resources of a business and the uses to which these resources have been put at a certain point of
time.

* It helps in the formation of a realistic dividend policy:

Sometimes a firm has a sufficient profit available for distribution as dividend but yet it
may not advisable to distribute for lack of liquid or cash resources. In such cases a FUNDS FLOW
STATEMENT helps in the formation of a realistic dividend policy
*It helps in the proper allocation of resources:
The resources of a concern are always limited and it works to make the best use of
these resources. A projected funds flow statement constructed for the future help in making
managerial decisions. The firm can plan the deployment of its resources and allocates them
among various applications.

* It acts as a future guide:

A projected funds flow statement also acts as a guide for future to the
management The management can come to know the various problems it is going to face can be
projected well in advance and also the timing of these needs The firm can arrange to finance these
needs more effectively and avoid future problem.
* It helps in appraising the use of working capital:
A funds flow statement helps in explaining how efficiently the management has used
its working capital and also suggests way to improve working capital position of the firm.

* It helps to know the overall credit worthiness of the firm:

The financial institutions and banks such as
State Financial Institution, Industrial Financial Development Corporation Of India, Industrial
Development Bank Of India etc., all for funds flow statement constructed for a number of years
before granting loans to know the credit worthiness and paying capacity of the firm. Hence, a firm
seeking financial assistance from these institutions has no alternative but prepare funds flow
statements.

OBJECTIVES OF FUND FLOW STATEMENT:

Some of the important objectives of preparing fund flow statement are

1. Fund flow statement reveals clearly the changes in items of financial position between two
different balance sheet dates showing clearly the different sources and applications of funds.
Thus, it summarizes the finance and investing activities of the enterprise.
2. It also reveals how much of the total funds are being collected by disposing of fixed assets, how
much from issuing shares or debentures, how much from long-term or short-term loans, and how
much from normal operational activities of the business.
3. It also provides information about the specific utilization of such funds Le. how much has been
used for acquiring fixed assets, how much for redemption of preference shares, debentures or
short-term loans as well as payment of tax, dividend etc.
4. It helps the management in depicting all inflows and outflows of funds which cause a change in
working capital of a business organization.
5. The projected fund flow statement helps management to exercise budgetary control and
capital expenditure control in the enterprise.
6.Management uses fund flow statement for judging the financial and operating performance of
the business.

Advantages of Funds Flow Statement:

Funds flow statement presents the following advantages:
(a) Fund Generating Capacity: with the help of cash flows from operating activities, a Funds Flow
Statement helps to understand the fund generating capacity of the firm which, ultimately,
provides valuable information to the management for taking future courses of action.
(b) Changes in Working Capital Position: A Funds Flow Statement presents either the increase in
Working Capital or Decrease in Working Capital with the help of 'A Statement of Exchanges in
Working Capital-which helps us to know from which sources the additional Capital has been
procured, or the application of such funds.
(c) Projected Funds Flow Statement: A firm can prepare its expected inflows and outflows of cash
for future with the help of a Projected Funds Flow Statement.
(d) Highlights the Causes of Changes: A Funds Flow statement highlights the significant causes of
changes in Working Capital position between two accounting periods revealing the effect for the
same on the liquidity and solvency position of a firm.
(e) Evaluation of Credit-Worthiness: Credit Granting Agencies, after careful analysis of a Funds
Flow Statement, can evaluate the creditworthiness of a firm-which helps them to understand the
liquidity Position.
(f) Highlight the Causes of the Following Contradictions:
(i) Adequate Cash Reserve but insufficient profit. Or,
(ii) Sufficient profit, inadequate cash reserves.

Limitations of Funds Flow Statement:

The funds Flow Statement is also not free from limitations.

The significant snags are:

a) A funds flow statement cannot present a continuous change of financial activities including the
changes of working capital.
(b) Since it is based on financial statement (i.e. Income Statement and Balance Sheet), it is not a
original statement.
(c) A projected Funds Flow Statement does not always present very accurate estimates about the
financial position since it is a historic one.
 (d) t is not a substitute of financial statements, i.e. Income Statement and Balance Sheet. It simply
supplies information about the change of Working Capital position which, again, depends on the
data presented by the financial statements.
(e) Cash Flow Statement, i.e. changes in cash position, is more important or more informative than
the changes in working capital which is presented by a Funds Flow Statement.

Steps To Prepare Fund Flow Statement

The steps involved in preparing the statement are as

follows:

 STEP1: Prepare statement of change in working capital

STEP2: Prepare funds from operation

STEP3: Preparation of fund flow statement

CHANGES IN WORKING CAPITAL

Step 1: Preparation of Statement of Changes in Working Capital : Statement of Changes in

working capital shows the net increase or decrease in the working capital of the business .

The working capital of the firm increases if there is an increase in the current assets or a

decrease in the current liabilities. However, the working capital of the firm decreases if there

is a decrease in the current assets and an increase in the current liabilities.

FORMAT OF CHANGES IN WORKING CAPITAL

2. FUNDS FROM OPERATION
Step 2: Determination of Funds from Operations:

MEANING OF FUND FROM OPERATION- Funds from operations refer to the profit earned or
loss incurred from the regular business operation.

Funds from the operation are necessary for the preparation of the fund flow statement. Fund
from the operation can be solved by direct or indirect method. The Indirect Method is more
applicable.

DIRECT METHOD

INDIRECT METHOD
3. FUND FLOW STATEMENT
 Preparation of Fund Flow Statement: After recognizing the funds/loss from operations, a

fund flow statement is prepared, which will show the net increase or decrease in the working

capital.

Basically, any change in the assets and liabilities may result in the inflows and outflows of
funds, but not always, as in the case of depreciation or revaluation of assets, there is no
inflow or outflow of funds. Hence, only those assets or liabilities will become a part of the
statement, which actually leads to the flows of the fund to/from the business.

While preparing the Funds Flow Statement, the Sources and Uses of Funds are to be disclosed
clearly so as to highlight the Sources from where the Funds have been generated the Uses to
which these Funds have been applied. This Statement is also sometimes referred to as
the Sources and Applications of Funds Statement or Statement of Changes in Financial
Position.
Sources of Funds

Items to be shown under the head Sources of Funds are as follows

1. Issue of Shares and Debentures for Cash: – The total amount received from the Issue of
Shares or Debentures is to shown under this head. But, the Issue of Bonus Shares or
Conversion of Debentures into Equity Shares or Shares issued to vendors shall not be
shown here as there is no inflow of Cash

2. Sale of Investments and other Fixed Assets: The Total Amount received on the sale of
Investments and other Fixed Assets is to be shown under this head.

3. Funds from Operations: The Funds generated from Operations as computed in Step II

are also required to be shown here.

4. Decrease in Working Capital: This would be the Balancing Figure of the Statement and
will come from a change in Working Capital Statement.
Application of Funds

Items to be shown under Application of Funds are as follows :-

1. Purchase of Fixed Assets and Investments: The Cash Payment made for the purchase of
Fixed Assets and Investments is an application of Funds. But if the purchase is made by
issue of shares or debentures, such a transaction will not constitute application of
funds. Similarly, if the purchases are on credit, these will not constitute fund
applications.

2. Redemption of Debentures, Preference Shares, and Repayment of Loan:-  Payment

made including Premium (less: Discount) is to be taken as fund application

3. Payment of Dividend & Tax: Payment of Dividend and Tax is to be taken as applications
of the fund if the provisions are excluded from Current Liabilities and Current Provisions
are added back to profit to determine the “Funds from Operations”

FORMAT OF FUNDS FLOW STATEMENT

Sources/Inflow Amt.Rs Application/Out flow Amt.Rs.

Funds from XXX Funds Lost in XXX

Operations Operations

Sale of Fixed XXX Purchase of Fixed XXX

Asset Asset

Sale of XXX Purchase of XXX

Investment Investment

Issue of Shares XXX Redemption of XXX

Preference shares
 Issue of XXX Redemption of XXX
Debentures debentures

Loan Taken XXX Loan Repaid XXX

Dividend XXX Dividend Paid XXX

Received

Non-Operating XXX Non-Operating XXX

Incomes Expenses

Decrease in XXXX Increase in Working XXX

Working Capital Capital

Total XXXXX Total XXXXX

 CHAPTER-5

STATEMENT OF CHANGES IN WORKING CAPITAL

 Rs in lakhs
31-3-2019 31-3-2020 Effect of W.C.
Particulars
Increase Decrease
Current Assets :
Inventories 3036.66 2693.46 343.20

Sundry Debtors 3534.10 1938.12 1895.99

Funds & Bank Balances 4184.68 1571.09 2793.63

Loans & Advances 3744.19 1983.03 1961.18

Total Current Assets 16479.63 7885.65

Current Liabilities :
Current Liabilities 3448.29 3557.46 109.19
Provisions 35.25 36.29 1.04

Total Current Liabilities 3483.54 3593.75

Working Capital (C.A. – C.L.) 10996.09 4291.9

Decrease in Working Capital 6704.19 6704.19

10996.09 10996.09 6704.19 6704.19

STATEMENT OF SOURCES AND APPILICATION OF FUNDS FOR THE PERIOD (2019-20)

Rs in lakhs
Source Rs. Application Rs.
Issue of share capital 19,000.00 Funds lost in operation 6528.76
Repayment of long term loan
Raising of long term loans 765.63 12969.5
Loans
Purchase of long term
Sale of non-current (fixed) 2656.18 36233.88
assets Investments
Non-trading receipts 10.79
Sale of investment 27595.37
Decrease in working capital 6704.19
54732.16 54732.16
INTERPRETATION

From the table it is observed that the working capital of company shows decreased trend. The current
Asset of the company has decreased Rs 16479.63 in 2019-20 to Rs 7885.65 in 2019-20. But the item
funds balance showing increasing trend in 2019-20. The current liabilities of company are decreased
3483.54 in 2019-20 to Rs 3593.75 in 2018-19. In 2019-20 the net working capital of company stood
10996.09. It is decreased to Rs 4291.9 in 2019-20. The decreasing net working capital is Rs 6704.19.

It is evident from the above table that the total funds flow during the period from 2019-
20amounts Rs 54732.16. In the total funds 23.32% was received from funds from operation 4.42 from
unsecured loans. Regarding the application of funds 33.71% used for investment in fixed assets and funds
used for working capital purpose. Constitute 30.77% respectively.

STATEMENT OF CHANGES IN WORKING CAPITAL

Rs in lakhs
 31-3-2018 31-3-2019 Effect of W.C.
Particulars
Increase Decrease

Current Assets : Inventories

Sundry Debtors 2693.46 2281.92 412.54
1938.12 3109.72 1471.61

Funds & Bank Balances 1571.09 1918.40 345.35

Loans & Advances 1983.03 1971.46 212.57

Total Current Assets 7885.65 8879.50

Current Liabilities :

Current Liabilities 2664.15 3827.16 1273.01

Provisions 36.29 50.43 16.16

Total Current Liabilities 2700.42 3877.84

Working Capital (C.A. – C.L.) 5195.23 5001.66

Decrease in Working Capital 193.57 193.57

5195.23 5195.23 1900.53 1900.53

STATEMENT OF SOURCES AND APPILICATION OF FUNDS FOR THE PERIOD

(2018-19)

Rs in lakhs
Source Rs. Application Rs.

Issue of share capital 19,000.00 Funds lost in operation 2747.91

Raising of long- term loans 6195.00 Redemption of pre share 1900.00

capital
Sale of non-current (fixed) assets 2689.41 Repayment of long -term loan 6149.33

Non-trading receipts 100.41 Purchase of long -term 291.17

investments
Decrease in working capital 1935.57 Dividend Paid 1852.00

27820.39 27820.39
INTERPRETATION

From the table it is observed that the working capital of company shows decreased trend. The current
Asset of the company has decreased Rs 7885.65 in 2018-2019 to Rs 8879.50. The current liabilities of
company are decreased 2700.42 in 2018 to Rs 3877.84 in 2019. In 2018- 19 the net working capital of
company stood 5195.23. It is decreased to Rs 5001.66 in 2018- 19. The decreasing net working capital is
Rs 193.57
It is evident from the above table that the total funds flow during the period from 2018-19 amounts
Rs 27820.39. In the total funds 9.82% was received from funds from operation 35.82 from unsecured
loans.

Regarding the application of funds 19.15% used for investment in fixed assets and
funds used for working capital purpose. Constitute 0.84% respectively
 STATEMENT OF CHANGES IN WORKING CAPITAL
Rs in lakhs
31-3-2017 31-3-2018 Effect of W.C.
Particulars
Increase Decrease
Current Assets :

Inventories 2281.92 2503.20 221.28

Sundry Debtors 3109.72 2467.39 642.33

Funds & Bank Balances 1918.40 1490.71 425.69

Loans & Advances 1971.46 1910.20 154.74

Total Current Assets 8879.50 8187.50

Current Liabilities :
Current Liabilities 3827.41 3381.69 445.72
Provisions 50.43 147.90 77.47
Total Current Liabilities 3877.84 3509.59
Working Capital (C.A. – C.L.) 5001.66 4657.91

Decrease in Working Capital 343.75 343.75

5001.66 5001.66 1255.49 1255.49

STATEMENT OF SOURCES AND APPILICATION OF FUNDS FOR THE PERIOD (2017-18)

Rs in lakhs
Source Rs. Application Rs.
Raising of long term loans 696.90 Funds lost in operation 2104.92
Sale of non current (fixed) 2575.09 Repayment of long term 1787.48
assets loans
Non-trading receipts 109.09 Purchase of long term 32.43
investments
Decrease in working capital 343.75
3724.83 3724.83
INTERPRETATION

From the table it is observed that the working capital of company shows decreased trend. The current
Asset of the company has decreased from Rs 8879.5 to Rs 8187.5. The current liabilities of company are
decreased 3877.84 to Rs 3509.59. I n 2018the net working capital of company stood 5001.66. It is
decreased to Rs 4657.91. The decreasing net working capital is Rs 343.75
It is evident from the above table that the total funds flow during the period from 2018amounts
Rs 3724.83. In the total funds 7.51% was received from funds from operation 4.03% from unsecured
loans. Regarding the application of funds 2.29% used for investment in fixed assets and funds used for
working capital purpose. Constitute 1.57% respectively.
 STATEMENT OF CHANGES IN WORKING CAPITAL

31-3-2016 31-3-2017 Effect of W.C.

Particulars
Increase Decrease

Current Assets :

Inventories 2503.20 3125.57 612.37

Sundry Debtors 2467.39 943.79 1723.60

Funds & Bank Balances 1490.71 1583.35 92.64

Loans & Advances 1910.20 5284.23 3378.03

Total Current Assets 8187.50 10725.94

Current Liabilities :

Current Liabilities 3381.69 3758.62 376.93

Provisions 147.90 183.86 35.96

Total Current Liabilities 3509.59 3922.48

Working Capital (C.A. – 4657.91 6803.46

C.L.)
2165.55 2165.55
Increase in Working
Capital
6803.46 4082.04 4082.04
 STATEMENT OF SOURCES AND APPILICATION OF FUNDS FOR THE PERIOD
(2016-17)
Source Rs. Application Rs.
Funds from operations 2265.12 Repayment of long term loans 2100.56
Raising of long term loans 101.16 Purchase of long term investments 186.03
Sale of non-current (fixed) 1944.29 Increase in Working Capital 2165.55
assets
Non-trading receipts 102.00
4414.16 4414.16
INTERPRETATION

From the table it is observed that the working capital of company shows increased trend. The
current Asset of the company has increased from Rs 8187.50 to Rs 10725.94. The current
liabilities of company are increased from 3509.59 to Rs 3922.48. In 2016the net working capital
of company stood 4657.91. It is increased to Rs 6803.46 in 2017. The increasing net working
capital is Rs 2165.55

It is evident from the above table that the total funds flow during the period from 2016-17
amounts Rs 4414.54. In the total funds 44.42% was received from funds from operation 0.58%
from unsecured loans.

Regarding the application of funds 9.44% used for investment in fixed assets and funds used
for working capital purpose. Constitute 9.84% respectively
Rs in lakhs
1-4-2015 31-03-2016 Effect of W.C.
Particulars
Increase Decrease
Current Assets:
Inventories 2889.51 3971.01 1081.50

Sundry Debtors 1966.12 2531.00 664.89

Funds & Bank Balances 1776.48 14016.18 10435.68
Loans & Advances 3442.81 8821.93 5379.14

Total Current Assets 9774.91 27336.1

Current Liabilities:

Current Liabilities 6020.09 151242.52 7123.43

Provisions 566.86 1573.63 810.77

Total Current Liabilities 6586.95 16510.19

Working Capital 3197.96 14829.95
(C.A. – C.L)
9641.99 9641.99
Increase in
 Working Capital
19561.19 19561.19

STATEMENT OF SOURCES AND APPILICATION OF FUNDS FOR THE PERIOD (Mar2015 –

2016)
Rs in lakhs
Source Rs. Application Rs.
Issue of Share Capital 18168.49 Funds from loss 1909.25
Raising of longterm loans 3342.83 Repayment of longterm loans 2592.04
Purchase of long term
Sale of non-current (Fixed) 36810.58 32032.56
Assets investments
Non-trading payment 10142.10
Increase in W.C. 9641.99
56297.90 56297.90
 INTERPRETATION
From the table it is observed that the working capital of company shows increased trend. The
current Asset of the company has increased Rs 9774.91 in 2015-2016 to Rs 27336.10 in Jan
2016-Dec The current liabilities of company are increased 6586.95 in 2015 to Rs 16510.17 in
2016. In 2015-16 the net working capital of company stood 3197.96. It is increased to Rs
14829.95 in Jan 2016. The increasing net working capital is Rs 9641.99
 PROFIT AND LOSS ACCOUNT FOR THE ONE YEAR PERIOD
ENDED 2019-20
Rs in lakhs
Particulars 31-03-2019 31-03-2020
Income
Sales (Gross) 50,309.92 47,310.19
Less : Excise Duty on Sales 6,388.76 7,618.56
Sales (Net) 43,921.18 39,689.62
Other Income 432.61 457.41
44,353.77 44,167.03
Expenditure
Purchase of finished goods for resale 1,753.71 3,288.27
Manufacturing and other expenses 26,109.26 29,552.25
Depreciation 2,200.41 2,859.77
Interest and other finance charges 990.68 2,234.88
(Increase)/Decrease in stocks of work-in-
process and finished goods (165.12) (244.60)

30,908.95 37,690.57
Profit / (Loss) before tax for the year 15,444.82 2,456.46
Extraordinary Item – Compensation paid to
employees under Voluntary Retirement and
Other Schemes -- 146.35
Profit / (Loss) before tax for the year 15,444.82 2,330.12
Provision for Tax
Current Tax 982.00 --
Fringe Benefit Tax 28.00 65.00
Profit / (Loss) for the year 14,434.82 2,265.12
Debit balance brought forward from previous
year (16,344.07) (18,609.19)
Debit balance carried to balance sheet 1,909.25 16,344.07

BALANCE SHEET AS 2019-20 Rs in lakhs

Particulars 31-3-2013 31-03-2020

1. Sources of Funds :

Share Capital 42,796.16 42,796.16

Reserve & Surplus 21,901.93 21,901.93

64,698.07 64,698.07

Loans Funds :
Secured Loans / Funds 14,876.51 17,330.07

Unsecured Funds 3,678.89 9,868.55

18,655.40 25,198.62

Total 81,253.47 89,896.69

2. Application of Funds :

Fixed Assets

Gross Block 53,812.03 54,209.96

(-) Dep. 24,043.25 22,537.14

Net Block 29,767.78 31,668.84

Capital work in progress 3,453.60 289.62

33,221.38 31,958.46

Investments 42,083.62 36,723.60

Advances / Expenses --
 Current assets, loans & advances :

Inventories 2.889.51 3,125.57

Sundry Debtors 1,866.12 934.79

Funds & Bank Balances 1,576.48 1,383.35

Loans & Advances 3,095.64 5,284.23

10,725.94

Current Liabilities & Provisions :

Current Liabilities 5101.79 3,758.62

Provisions 326.73 289.62

5388.52 3,922.48

Net Current Assets 6,803.46

Miscellaneous Expenditure ----------- 67.10

Profit and Loss Account 1909.25 16,344.07

Total 81,253.47 89,896.69

PROFIT AND LOSS AC FOR THE YEAR ENDED2018-19

 31-3-2018
Particulars (Amalgamated) 31-3-2019

Income
Sale of manufactured goods 1,18,900.24 47,909.48
Less : Excise Duty 19,521.32 6,388.76
99,378.92 41,518.72
Sale of traded goods - 2,404.44
Other Income 1,832.29 432.61
1,01,212.21 44,353.77
Expenditure
Cost of goods sold 36,192.58 18,825.32
Personnel cost 3,604.81 1,777.200
Other expenses 25,129.28 9,234.53
Depreciation 5,204.23 2,200.41
Amortisation of goodwill 1,7,99.20 --
Interest and other finance cost 950.93 871.49

72,851.03 30,908.95
Profit before tax 28,360.19 15,444.82

Provision for tax 6,542.84 982.00

- Current tax (982.00) -

- MAT credit of earlier years (715.59) -

- fringe benefit tax 126.83 28.00

- deferred tax charge 5,339.36 -

Profit for the year 19,097.74 14,434.82

Debit balance in Profit and Loss account brought
forward (1,909.25) (16,344.07)
Balance in Profit & Loss account carried forward 18,168.49 (1,909.25)

BALANCE SHEET AS ON 31st Mar 2019 Rs. in lakhs

31-3-2018
Particulars (Amalgamated 31-3-2019
1. Sources of Funds :
Share Capital 42,796.16 42,796.16
Reserve & Surplus 38,090.42 21,901.93
80846.56 64,698.07
Loans Funds :
Secured Loans / Funds 4,188.45 6,760.49
Unsecured Funds 14,286.48 8,943.65
Deferred tax liability 5,659.63 ---------
22,125.29 17,704.16
Total 1,02,960.85 80402.21
2. Application of Funds :
Fixed Assets
Gross Block 89,683.71 53,812.03
(-) Dep. 29,850,93 24,043.25
Net Block 59,832.78 29,767.78
Capital work in progress 320,247.10 3,453.60
80,079.84 33,221.38
Investments 10,091.10 42,083.62

Current assets, loans & advances :

Inventories 3971.01 2889.51

Sundry Debtors 2531.00 1966.12

Funds & Bank Balances 14016.18 1776.48

Loans & Advances 8821.93 3442.81

27336.1 9774.91

Current Liabilities & Provisions :

Current Liabilities 151242.52 6020.09

Provisions 1573.63 566.86

16510.19 6586.95

Net Current Assets 14,829.95 3,197.96

Profit and Loss Account ----------- 1,909.25

Total 1,02,960.85 80402.21