A PROJECT REPORT

ON
"ANALYSIS OF REVENUE AND EXPENDITURE"
AT
APOLLO HOSPITAL
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF

BACHELOR OF COMMERCE (ADVERTISEMENT SALES &

MANAGEMENT)

Submitted by
AZMATH BAIG
1062-20-403-056
SYED FOZAN SHAHRAAZ
1062-20-403-062

Under the Guidance of

Mrs. BUSHRA FATIMA
(ASSISTANT PROFESSOR)

DEPARTMENT OF BUSINESS ADMINISTRATION

ANWAR-UL- ULOOM DEGREE COLLEGE (AUTONOMOUS)
(AFFILIATED TO OSMANIA UNIVERSITY)
NEW MALLEPALLY, HYDERABAD
(2020-2023)
ANWARUL ULOOM DEGREECOLLEGE
An Autonomous Muslim Minority Institution
(Affiliated to Osmania University)
# 11-3-918, New Mallepally, Hyderabad – 500 001., A.P., INDIA
Tel : 23340134, 30582660, 30582678, 30582666, 23342285 Fax: 23342750

Ref No………………………………. Date:……………………………..

CERTIFICATE

This is to certify that AZMATH BAIG bearing Roll No: 1062-20-403-056 , SYED
FOZAN SHAHRAAZ bearing Roll No: 1062-20-403-062 has successfully
completed they project work entitled “ANALYSIS OF REVENUE AND
EXPENDITURE., and submitted in partial fulfillment of the requirement for the
award of the Degree of Bachelor of Commerce (ADVERTISEMENT SALES &
MANAGEMENT) Administration by Osmania University, Hyderabad.

This is a bonafide work completed under my guidance and supervision.

Signature of Internal Guide Signature of H.O.D

Signature of Principal
 DECLARATION

We, AZMATH BAIG bearing Roll No: 1062-20-403-056, SYED

FOZAN SHAHRAAZ bearing Roll No: 1062-20-403-062 the
undersigned, hereby declare that the project report entitled
"ANALYSIS OF REVENUE AND EXPENDITURE " carried out at
APOLLO HOSPITAL is our original work written and submitted by
us in partial fulfillment of the award of the degree of Bachelor of
Commerce (ADVERTISEMENT SALES & MANAGEMENT) from
Anwar-Ul-Uloom Degree College, (Autonomous). We are also declare
that this project has not been submitted earlier in any other
university or institution.

Date:

AZMATH BAIG
1062-20-403-056

SYED FOZAN SHAHRAAZ

1062-20-403-062
 ACKNOWLEDGEMENT
We would like to acknowledge, our sincere thanks to Mr. Mohammed Abdul
Razzak, Principal of "Anwar-UI-Uloom Degree College (Autonomous)" for the
extended helping hand for the development of our career.
We wish to express our sincere thanks to Dr. Mohammed Ahmed Mohiuddin
H.O.D and our express and sincere thanks to our Project Guide
Mrs. BUSHRA FATIMA for sharing her valuable dine in providing her valuable
Knowledge, guidance and excellent support for the successful completion of my
project.

We express our sincere thanks to Mr. MURTHY of APOLLO HOSPITAL for

sharing his valuable time in providing his valuable suggestions, information and
excellent co-operation for the successful completion of my Project.

We would like to acknowledge, our sincere thanks to all faculty members of "Anwar-
UI-Uloom Degree College (Autonomous)" who have extended helping hand in
giving the information being part of the study. We would like to express our gratitude
for all the people, who extended unending support at all stages of the project.

AZMATH BAIG
1062-20-403-056

SYED FOZAN SHAHRAAZ

1062-20-403-062
 ABSTRACT

Cost controls starts by the businesses identifying what their costs are and evaluate
whether those costs are reasonable and affordable. Then, if necessary, they can look
for ways to cut costs through methods such as cutting back, moving to a less
expensive plan or changing service providers. The cost-control process seeks to
manage expenses ranging from phone, internet and utility bills to employee payroll
and outside professional services. Control over finance is one of the most important
aspects of every organization, to survive and grow in this competitive environment.
Financial management is mainly concerned with the control over various costs
associated with the daily operations in the due course of business which involves an
in-depth analysis of all the factors that affect the cost structure of the firm. Thus,
being the main aim of the project, it is essential to perform a comparative study of the
over all cost structure of the organization over a given period of time to make each
one familiar of the cost analysis and control. For this, it requires an in-depth analysis
of objectives and scope involves various types cost, the industry and organizational
factors at par with cost structure, the techniques followed and the tools applied in cost
management in analysis and cost control.
 TABLE OF CONTENTS

CHAPTER NO DESCRIPTION PAGE NO

CHAPTER - I INTRODUCTION 1

CHAPTER - II REVIEW OF LITERATURE 8

CHAPTER - III RESEARCH METHODOLOGY 14

CHAPTER - IV THEORETICAL FRAME WORK 18

CHAPTER – V COMPANY PROFILE 21

CHAPTER - VI DATA ANALYSIS AND INTERPRETATION 26

CHAPTER - VII RESEARCH FINDINGS & SUGGESTIONS 54

CHAPTER -VIII SUGGESTIONS & RECOMMENDATIONS 57

BIBLIOGRAPHY 59
 CHAPTER - I
INTRODUCTION

1
 INTRODUCTION

In the modern business world profitability, growth, and survival are considered as the
basic economic goals of any business operation. Among these, profitability is the key
goal because growth and survival are incidental to the profitability; no enterprise can
survive if it does not prove profitable in the long run. The revenue and cost data are
expressed in monetary value the profit is determined as under

Cost analysis and revenue analysis analyze the inputs and factors that impact the mix of
products and services companies provide, procurement practices, resource utilization,
sales and marketing efforts, and product and service delivery. The information gleaned
from this analysis helps owners and managers identify actions to take to reduce costs and
drive additional revenues. Companies attempting to expand their business lines,
strengthen their financials, or enter new markets often find these types of analysis useful.

COSTS

Companies incur costs in many ways. Costs result from the production of goods, the
purchase of inventory, the operating of the business, and the purchase of assets. These
costs include the fixed and variable costs associated with production, depreciation and
investment costs, and general and administrative costs. Costs also include opportunity
costs, sunk costs and marginal costs. Cost analysis identifies and investigates the sources
and components of these costs. Cost analysis has several different names, including cost
allocation, cost-benefit analysis and cost-effectiveness analysis.

WHAT COST ANALYSIS REVEALS

Cost analysis helps a company determine the expected costs and benefits of a particular
asset, new product, or plan of action before it makes the requisite investment. An in-
depth cost analysis can reveal hidden costs embedded in a company's normal way of
doing business and the unanticipated costs of certain actions. Identifying and then
stripping out costs can help a company increase its profitability and long-term viability.

2
Cost analysis also aids companies in changing their service and product delivery
procedures to those that are more cost-efficient and effective.

REVENUES

Companies generate revenues from sales of their products and services. To generate
more revenues, companies can increase the prices of existing products and services, offer
add-on services for an additional price, or introduce new products or services at a higher
price point. Companies can also increase revenues by increasing the quantity sold. Firms
accomplish this by lowering prices or increasing their marketing efforts to stimulate
demand.

WHAT REVENUE ANALYSIS REVEALS

Revenue analysis helps companies determine how to increase their revenues

significantly. When combined with cost analysis, it helps companies do this while
keeping costs at a minimum. Revenue analysis aids companies in assessing which course
of action produces the highest increase in revenue with the least effort. For example, a
company determines that it takes a series of press releases, website testimonials, and
well-placed classified ads to drastically increase sales of a particular product, but it also
determines that adding a low-cost add-on to a higher priced service would have the same
effect.

BREAK-EVEN

The break-even point for a product or service occurs when revenue generated by the
product equals the costs incurred in producing, selling and delivering the product. Break-
even analysis blends cost and revenue analysis to help companies determine if a new
product or service makes financial sense. While companies may focus solely on cost
analysis for the purpose of cost reduction, most companies use revenue analysis
combined with cost analysis to choose the revenue option that produces the most profit.

3
REVENUE - COST = PROFIT.
Thus profit is the positive difference of revenue and cost .The margin of profit
can be increased by the maximization of revenue or reduction of cost or maximization of
revenue along with the reduction of cost. The other alternative to the goal of
maximization of profits the cost reduction .The cost reduction can be managed
effectively only when the cost are clearly defined and are ascertained on the basis of
some units of production.

STANDARD COSTING:

It is a technique that estimates pre-determined estimates of cost of product and

services and then compares them with actual cost as they are incurred. It is very detailed
and requires considerable development work before it can be put to use. Standard costing
can be used in a variety of costing situations but the greatest benefit is obtained in case of
substantial degree o repetitive activity in the manufacturing process. it facilitates
formulation of production and pricing policies before the actual start of production.

COST SHEET OR STATEMENT OF COST:

A cost sheet or a statement of cost is a statement that is prepared to present

information regarding the various elements of cost incurred in production during a
defined period of time. The cost sheet is generally prepared at short intervals and
presents the total cost as well as cost per unit of products manufactured during the
period.

The cost sheet does not have a statutory format. It is not part of the accounting
system. The purpose of cost sheet is to present the elements of cost in as much detail as
possible. in order to provide comparison a cost sheet may haveinformation pertaining
tothe previous year in an additional column alternatively standard cost may also be
provided.

A Performa of cost sheet shows the break up of total cost into various elements
sales value of goods and profit earned during the period.

4
 Cost sheet of………..for the period ended…………..

Particulars Amount Amount Cost p.a. rs.

Direct material consumed
Opening stock of raw Xxx
materials
Add: purchase of raw Xxx
materials
Add: carriage on purchase Xxxx
Xxxx
Less: closing stock of raw Xxxx Xxxx Xx
material
Direct wages xxxx Xx
Direct expenses xxxx Xx
Prime cost xxxx Xx
Add:factory overheads Xxxx
Xxxx
Less:sale of scrap Xxxx

Add:work in xxxx
progress(opening)
Xxx
Less:work in Xxx
progress(closing)
Worl cost or factory cost xxxxx Xx
Add:administration Xxxx
overheads
Cost of production of xxxx Xx
goods slod
Add:opening stock of Xxxx
finished goods
Xxxx
Less:closing stock of Xxxx
finished goods
Cost of goods sold xxxx Xx
Add:selling and xxxx
distribution overhead
Cost of sales or total cost xxxx Xx
Net profit xxxx Xx
Sales xxxxx Xx

5
 Studies of costs and related economic implications comprise a major group of methods
used in HTA. These studies can involve attributes of either or both of primary data
collection and integrative methods. That is, cost data can be collected as part of RCTs
and other clinical studies, as well as administrative databases used in health care
payment. Cost data from one or more such sources often are combined with data from
primary clinical studies, epidemiological studies, and other sources to conduct cost-
effectiveness analyses and other cost studies that involve weighing health and economic
impacts of health technology.

Interest in cost analyses has accompanied concerns about rising health care costs,
pressures on health care policymakers to allocate resources, and the need for health
product makers and other technology advocates to demonstrate the economic benefits of
their technologies. This interest is reflected in a considerable increase in the number of
reports of cost analyses in the literature and further refinement of methods.

Main Types of Cost Analysis

There is a variety of approaches to cost analysis, the suitability of any of which depends
upon the purpose of an assessment and the availability of data and other resources. It is
rarely possible or necessary to identify and quantify all costs and all benefits (or
outcomes), and the units used to quantify these may differ.

Main types of cost analysis include the following.

 Cost-of-illness analysis: a determination of the economic impact of an illness or

condition (typically on a given population, region, or country) e.g., of smoking, arthritis
or bedsores, including associated treatment costs
 Cost-minimization analysis: a determination of the least costly among alternative
interventions that are assumed to produce equivalent outcomes
 Cost-effectiveness analysis (CEA): a comparison of costs in monetary units with
outcomes in quantitative non-monetary units, e.g., reduced mortality or morbidity
 Cost-utility analysis (CUA): a form of cost-effectiveness analysis that compares
costs in monetary units with outcomes in terms of their utility, usually to the patient,
measured, e.g., in QALYs

6
 Cost-consequence analysis: a form of cost-effectiveness analysis that presents
costs and outcomes in discrete categories, without aggregating or weighting them
 Cost-benefit analysis (CBA): compares costs and benefits, both of which are
quantified in common monetary units.

Cost-minimization analysis, CEA and CUA necessarily involve comparisons of

alternative interventions. A technology cannot be simply cost effective, though it may be
cost effective compared to something else. Although CBA typically involves
comparisons of alternative technologies, this is not necessary.

Because it measures costs and outcomes in monetary (not disease-specific) terms, CBA
enables comparison of disparate technologies, e.g., coronary artery bypass graft surgery
and screening for breast cancer. A drawback of CBA is the difficulty of assigning
monetary values to all pertinent outcomes, including changes in the length or quality of
human life. CEA avoids this limitation by using more direct or natural units of outcomes
such as lives saved or strokes averted. As such, CEA can only compare technologies
whose outcomes are measured in the same units. In CUA, estimates of utility are
assigned to health outcomes, enabling comparisons of disparate technologies.

Two basic approaches for cost-benefit analysis (CBA) are ratio approach and the net
benefit approach. The ratio approach indicates the amount of benefits (or outcomes) that
can be realized per unit expenditure on a technology vs. a comparator. In the ratio
approach, a technology is cost beneficial vs. a comparator if the ratio of the change in
costs to the change in benefits is less than one. The net benefits approach indicates the
absolute amount of money saved or lost due to a use of a technology vs. a comparator. In
the net benefits formulation, a technology is cost-beneficial vs. a comparator if the net
change in benefits exceeds the net change in costs. The choice between a net benefits
approach or a benefit/cost approach for a CBA can affect findings. The approach
selected may depend upon such factors as whether costs must be limited to a certain
level, whether the intent is to maximize the absolute level of benefits, whether the intent
is to minimize the cost/benefit ratio regardless of the absolute level of costs, etc. Indeed,
under certain circumstances these two basic approaches may yield different preferences
among alternative technologies.

7
 CHAPTER - II
REVIEW OF LITERATURE

8
 COST AND REVENUE ANALYSIS

INTRODUCTION:

In the modern business world profitability, growth, and survival are considered as the
basic economic goals of any business operation. Among these, profitability is the key
goal because growth and survival are incidental to the profitability; no enterprise can
survive if it does not prove profitable in the long run. The revenue and cost data are
expressed in monetary value the profit is determined as under:

Revenue - cost = profit.

Thus profit is the positive difference of revenue and cost .The margin of profit
can be increased by the maximization of revenue or reduction of cost or maximization of
revenue along with the reduction of cost. The other alternative to the goal of
maximization of profits the cost reduction .The cost reduction can be managed
effectively only when the cost are clearly defined and are ascertained on the basis of
some units of production.

In fact, the traditional financial accounting system failed to fulfill the needs of the
professional management, which gave way to the development of cost accounting. Cost
accounting provides the data to the management required for the following key purpose:

 Planning and policy decisions for non-routine functions.

 Planning and controlling routine operations.
 Valuation of inventory and determination of income.

In the modern times the development of the science of cost accounting is sufficient
enough to treat it s a separate branch of science of accountancy. The specialized cost
accounting institute is training the professional cost accountants to cater the needs of the
business world.

9
MEANING:

COST:
Cost may be defined as resources sacrificed or foregone to achieve specific
objective. Cost signifies an expenditure or monetary outlay to secure some benefits.

COSTING:
Costing is a technique and process of determining the cost of doing
something. E.g. the cost of manufacturing an article, rendering a service or
performing a function.

ELEMENTS OF COST:

The cost of any product or service is the sum of various segments of

the cost. Such segments are treated as elements of cost; e.g. the cost of chair prepared
out of a piece of wood involves following cost elements.

 Cost of raw material.

 Labour cost.
 Overhead cost

DIRECT MATERIAL COST

Direct material cost in the cost of material used for the manufacturing of the units. It is
directly traceable to the production units. The direct material cost includes the purchase
price as well as incidental expenses such as freight, insurance, loading and unloading
expenses, octroi, import duties etc. the expenses incurred for the grease and oil, nails,
cleaning material other consumables stores etc are of common nature which are not
traceable to any point of production. So they are treated as indirect material cost which
forms a part of the overhead cost.

10
 METHODS AND TECHNIQUES OF COSTING:

METHODS OF COSTING:

Costing method is the method of costing that is designed to suit the way goods
are processed are manufactured are the way services are provided. Each industry will
have a costing method with its unique features, however. The basic costing principle
relating to analysis allocation and apportionment will be the same; there are two broad
categories of product costing method namely specific order costing and continuous
operation or process costing.

SPECIFIC ORDER COSTING

The institute of cost and work accountants of India (ICWAI) defines specific order
costing as “the basic costing method applicable where the work consists of separate
contract”. Thus job costing contract costing and batch costing come under the category
of specific order costing.

JOB COSTING:

It is that form of specific order costing where work is undertaken to customers‟

special requirement and each order is of comparatively short duration. The work is
usually carried out within the factory .the cost unit is the job and cost is collected and
accumulated for each job separately.

CONTRACT COSTING:

Contract costing is very identical to job costing except that it is applied to a job
which is of relatively long duration and is required to be executed on the site of the
client. Contract costing system normally has higher proportion of direct cost‟s separate
account is maintained for each contract, it is normally used in construction of projects.

11
BATCH COSTING:

This method is applicable where a quantity of identical articles is manufactured

as a batch. The procedure of batch costing is very similar to that of job costing. The
batch itself would be treated as a job and the batch becomes the cost unit. It is adapted in
the engineering component industry etc.

UNIT OR OUTPUT COSTING:

It is a costing method where the organization produces only a single product.

Consequently the whole production process is geared to the one product and is frequently
highly mechanized. The object of this method is to ascertain the total cost and cost per
unit of the output.

OPERATING COSTING

It is a method of costing of specific services. it is applied to transport

undertakings, hotels, hospitals, colleges, power supply companies etc. a particular
difficulty in case of operating costing is to define a realistic cost unit that represent a
suitable measure of service provided. a composite cost unit such as passenger kilometers
or patient days are more relevant and hence more commonly adapted.

TECHNIQUES OF COSTING:

Techniques of costing refers to the specialized procedures adopted for ascertaining the
cost of products or services for certain special purpose under special conditions and for
providing relevant cost data to the management for purpose of cost control, management
policy and managerial decision making. The various techniques are stated under:

12
HISTORICAL COSTING:

It refers to ascertainment of cost after they are actually incurred. It has very
limited use, as no control can be ascertained over actual cost. Although it helps periodic
comparison it is similar to a postmortem action akin to financial accounting.

MARGINAL COSTING:

It is a technique that distinguishes between fixed and variable cost .the marginal
cost of a product is its variable cost. The fixed cost of the period is written off against
total contribution earned in that period. Where contribution is excess of sales realization
over marginal cost. Even the inventory is value only at marginal or variable cost.
Marginal costing technique is used to determine the compact of change in volume or
change in product mix or shut down of a production unit or current profits.

DIRECT COSTING:

It is a technique wherein only the direct costs are changed to operations;

processes or products and the indirect cost are written off against profits of the period.
Direct costing technique is very similar to marginal costing technique. Since most direct
cost are variable in nature. It is a useful tool for decision-making.

ABSORPTION COSTING:

It is a technique that takes into account the total cost of running an enterprise. It is
also known as total costing or full costing. it is a traditional technique and does not
distinguish between various kinds of cost. Particularly fixed and variable cost. it values
inventory also at total cost. It is useful in preparation of job estimates or quotations.

13
 CHAPTER - III
RESEARCH METHODOLOGY

14
OBJECTIVE OF THE STUDY

1. The first basic objective of my project is to know the process, methods by which
expenditures on different hospital activities are recorded, classified and allocated
so that the cost of services may be accurately ascertained.

2. The second objective of my project is to find out the overall profitability by

calculating Hospital Margin i.e. operating Margin with reference to Coronary
Artery Bypass Graft (CABG) cases only.

SCOPE OF THE STUDY

 The efficiency with which the hospital is providing the required service in
generating the Revenue.
 To look into the overall efficiency of hospital.
 The scope is limited to the operation of Apollo Hospital, Banjara Hills.
 The information obtained from primary & secondary source were limited to
Apollo Hospital.

15
METHODOLOGY OF THE STUDY

Ho. There is no difference between observed and expected frequencies.

H1: there i s difference between observation and expectation

For my study both Primary and Secondary data has been used.
Sources of Data:-

 Primary Data :- Primary data is the data that is originally collected by the
researcher through survey and personal interview, making personal
investigation help in collecting primary data like the process of computation
of cost and revenue etc.,
 Secondary Data: - Secondary data is the data that is available prior to the
commencement of the research study. It is collected through the repair of the
hospital records.
 Apart from the primary & secondary data I have calculated the hospital
margin by using the following formula.

Operating Revenue – Operating Cost

Hospital Margin = ---------------------------------------------------
Operating Revenue

 For my study I gather one year i.e. 2014 year information of Coronary Artery
Bypass Graft (CABG) cases, I have represented the data in tables and graphs.

Proposed statistical Tools for the study

Descriptive statistics- mode , percentages, frequencies, bar graphs and pie charts
Mann-Whitney Test
Correlation Analysis
Chi-square
Ratio Analysis

TOOLS USED IN THE ANALYSIS

 Statistical tools

 Financial tools

16
 Research gap

Period of study
4 years data Time gap 2016 completed study from 2016_2021

LIMITATIONS OF THE STUDY

 The study is based on the Accounting Information, so all the limitation of the
accounting applies for the study.
 The study was conducted on the performance of the hospital & certain aspects
may be ignored.
 The study has only made a humble attempt at evaluating the cost of Revenue
Prices and does not claim to be perfect study.
 The busy working schedule of the executives in the hospital did not allow me to
extract the full and accurate information needed for the study.
 Due to the communication gap between the executives it was not possible for me
to extract the more data for that reason, my study is limited to 1 year i.e. 2021.
 The suggestions, made in this project are purely based in personal discretion.

17
 CHAPTER – IV
THEORETICAL FRAME WORK

18
Analysis of the determinants of efficiency is made by means of the following: risk,
capital, size, and market competitiveness. The relationship with risk has led to different
results. Gorton and Rosen (1995) explain the positive relationship between efficiency
and risk by the hypothesis that rooted managers in an efficient bank tend to follow an
expansionist strategy, which may appear excessively risky. Hughes et al. (1994) suggest
that, under the assumption of risk aversion, managers are willing to give up part of their
compensations in favour of risk reduction. Miller and Noulas (1997) notice that an
increase in credit risk leads to an improvement in profit margin, leading subsequently
to an enhancement of efficiency (Johnes et al., 2013). Among the studies that
corroborate a positive relationship between efficiency and risk we mention those of
Altunbas et al. (2007), Yener et al. (2007), Yong and Christos (2013) and Saeed and
Izzeldin (2014). However, Kwan and Eisenbeis (1997) point to a positive relationship
between inefficiency and risk taking. In addition, Barajas et al. (1999) assume that banks
have to incur additional expenses so as to manage properly any increase in credit risk.
The negative relationship between efficiency and risk is also supported by Berger
and De Young (1997), Deelchand and Padgett (2009).

The relationship between efficiency and capital was considered in the analysis of the
relationship between capital, risk and efficiency. Hughes and Moon (1995)
highlighted the importance of introducing an efficiency independent variable in
empirical models dealing with the relationship between risk and capital. Examining a
sample of European banks between 1992 and 2000, Altunbas et al. (2007) found that the
most efficient banks tend to take more risks, while the least efficient banks appear to
hold higher levels of capital with lower levels of credit risk. The same result is obtained
by Yener et al. (2007) on a sample of commercial banks, savings banks and cooperative
banks in Europe. Examining a sample of 263 Japanese cooperative banks over the 2003
to 2006 period, Deelchand and Padgett (2009) modelled the relationship between risk,
capital and cost efficiency. The results of this modelling show that inefficient banks
operate with more capital while maintaining a high level of risk. Yong and Christos
(2013) assessed the relationship between risk, capital and efficiency on a sample of 101
Chinese commercial banks between 2003 and 2009.

The authors found that banks with higher liquidity levels present lower pure and
technical efficiencies and higher capitalization. However, examining a sample of US
banks, Kwan and Eisenbeis (1997) found a positive relationship between efficiency
and capitalization, which implies that the best-managed banks have a higher capacity of
capital accumulation. Size is among the other variables used to study efficiency
determinants. In this regard, several empirical evidences proved the existence of a
positive relationship between efficiency and size in the banking industry
(Bhattacharryya et al., 1997), Miller and Noulas (1996), Jackson and Fethi (2000 ), Chen
et al. (2005), Abdul Majid et al. (2005), Drake et al. (2003) and Yong and Christos
(2013). However, Deelchand and Padgett (2009) show that large banks hold less
capital, take more risks and are less efficient. Jensen (1986) argues that at a certain

19
level the positive relationship between size and efficiency can be reversed when
managers‟ power and their rewards largely relate to company growth and size

The relationship between efficiency and market competitiveness has also aroused the
interest of several authors. Berger and Mester (2003) found that competition
conditions are likely to affect banking performance and efficiency. A negative
relationship between concentration of an industry and efficiency is supported by Berger
and Mester (1997) with the “quite life” theory (Note 4). The theory assumes the
absence of incentives for efficiency when competition is low (high market
concentration). Mean while, a positive relationship agrees with the “Information
generating hypothesis” that supposes that a greater market power makes it easier to
access information and thus contributes to improving banking efficiency. This finding is
confirmed by Maudos and De Guevara (2007), Casu and Girardone (2009) and Koetter
et al. (2011).

The success of the Malaysian banking system in surviving the “subprime” crisis with the
least damage reflects the significance of the different monetary policies adopted by
policymakers and supervisory authorities since the 1997 Asian crisis. Developing Islamic
financial intermediation is part of these policies. Indeed, today Malaysia is considered
among the leaders of Islamic finance. Its prominent position resulted from the political
choices undertaken by the successive cabinets of Mahathir Mohamed. It was in
1980 that the decision to support Islamic finance in Malaysia has become political. This
date marks the event of adopting the “Islamic Banking Act” which provides a legal
framework for the creation of IBs. The new practice of Islamic finance in Malaysia
was initiated as an experiment that lasted ten years in which one bank was created; it was
the “Bank Islam Malaysia Berhad”. Following this period, the door was open for a
rapid development of Islamic finance. In 1993, the government launched the
“Interest Free Banking Schema” authorizing CBs to open “Islamic windows”
benefitting from management and accounting practices that are independent of those of
CBs. In 2004, the government decided, as part of a strategy to liberalize the banking
sector, to grant new licenses for foreign IBs mainly from the Gulf countries. As a
result, the number of IBs in 2012 reached sixteen banks in addition to ten Islamic
windows

20
 CHAPTER - V
COMPANY PROFILE

21
 COMPANY PROFILE
Apollo Group of Hospitals is a major healthcare provider in India with 3 independent,
super-speciality Hospitals in twin-cities located at Secunderabad, Malakpet and
Somajiguda with post graduate courses and super speciality courses for medical
education, nursing schools and colleges attached to each hospital. The Group also
operates 3 Cancer Institutes and 3 Heart Institutes all providing 24/7 emergency
services with advanced equipment.

With a combined capacity of about 1200 beds, 600 specialists, 1,500 nurses and 6,600
paramedical and other support staff; Apollo Group treats roughly about 250,000 people
annually.

HISTORY
Apollo Hospitals was established in 1983 by Dr. Prathap C Reddy, renowned as the
architect of modern healthcare in India. As the nation‟s first corporate hospital, Apollo
Hospitals is acclaimed for pioneering the private healthcare revolution in the country.
Apollo Hospitals has emerged as Asia‟s foremost integrated healthcare services
provider and has a robust presence across the healthcare ecosystem, including
Hospitals, Pharmacies, Primary Care & Diagnostic Clinics and several retail health
models. The Group also has Telemedicine facilities across several countries, Health
Insurance Services, Global Projects Consultancy, Medical Colleges, Medvarsity for E-
Learning, Colleges of Nursing and Hospital Management and a Research Foundation.
In addition, „ASK Apollo‟ – an online consultation portal and Apollo Home Health
provide the care continuum.
The cornerstones of Apollo‟s legacy are its unstinting focus on clinical excellence,
affordable costs, modern technology and forward-looking research & academics.
Apollo Hospitals was among the first few hospitals in the world to leverage technology
to facilitate seamless healthcare delivery. The organization embraced the rapid
advancement in medical equipments across the world, and pioneered the introduction
of several cutting edge innovations in India. Recently, South East Asia‟s first Proton
Therapy Centre commenced operations at the Apollo Centre in Chennai.
Since its inception, Apollo Hospitals has been honoured by the trust of over 150
million individuals who came from 140 countries. At the core of Apollo‟s patient-

22
centric culture is TLC (Tender Loving Care), the magic that inspires hope amongst its
patients.
As a responsible corporate citizen, Apollo Hospitals takes the spirit of leadership well
beyond business and has embraced the responsibility of keeping India healthy.
Recognizing that Non Communicable Diseases (NCDs) are the greatest threat to the
nation, Apollo Hospitals is continuously educating people about preventive healthcare
as the key to wellness. Likewise, envisioned by Dr. Prathap C Reddy, the “Billion
Hearts Beating Foundation” endeavours to keep Indians heart-healthy.
Apollo Hospitals has championed numerous social initiatives – to cite a few which
assist underprivileged children – SACHi (Save a Child‟s Heart Initiative) which
screens and provides paediatric cardiac care for congenital heart diseases, SAHI
(Society to Aid the Hearing Impaired) and the CURE Foundation focused on cancer
care. To introduce population health into the Indian narrative, the Total Health
Foundation, as envisaged by Dr. Reddy, is piloting a unique model of healthcare in the
Thavanampalle Mandal of Andhra Pradesh. It aims to provide “holistic healthcare” for
the entire community starting from birth, through one‟s journey into childhood,
adolescence, adulthood and old age.
In a rare honour, the Government of India had issued a commemorative stamp in
recognition of Apollo‟s widespread contributions, the first for a healthcare
organization. In addition, a stamp was also released to mark the 15th anniversary of
India‟s 1st successful liver transplant performed at Apollo Hospitals. More recently
Apollo Hospitals was again honoured with a postal stamp for having successfully
performed 20 million health checks and its pioneering efforts in encouraging
preventive healthcare in the country.
Dr. Prathap C Reddy, Founder Chairman of the Apollo Hospitals Group has been
conferred with the prestigious Padma Vibhushan, India‟s second highest civilian
award.
Dr. Prathap C. ReddyFounder, Chairman
Dr. Prathap C Reddy, the visionary Founder Chairman of Apollo Hospitals is widely
acknowledged as the architect of modern Indian healthcare. He is best described as a
compassionate humanitarian, who dedicated his life to bringing world-class healthcare
within the economic and geographic reach of millions. The institution that he
envisioned and built - Apollo Hospitals, steered a revolution and marked the birth of
the private healthcare industry in India.

23
Apollo Hospitals opened its doors in 1983 and introduced international quality
healthcare to India, at a cost that was a fraction of comparable costs in the western
world. This was Apollo‟s first act of social responsibility and it underscored the
intrinsic social conscience of the organization‟s business model

Dr. Preetha ReddyExecutive Vice Chairperson, Apollo Hospitals Enterprise

Limited.
Dr. Preetha Reddy is the Executive Vice Chairperson of Apollo Hospitals Enterprise
Limited and a member of its founding family. She is widely recognized for her
contributions in making high quality healthcare accessible to millions and for her
support to various entities and industry bodies, working for the betterment of India.
Apollo Hospitals is the pioneer of private healthcare in India and is Asia‟s foremost
integrated healthcare conglomerate. Since its inception, in 1983, the Group has touched
the lives of more than 200 million individuals from over 140 countries.

Ms. Shobana KamineniExecutive Vice Chairperson

Shobana Kamineni is the Executive Vice Chairperson of Apollo Hospitals Enterprise
Limited and a member of its founding family. Apollo Hospitals is the pioneer of
private healthcare in India and is Asia‟s foremost integrated healthcare conglomerate.
Championing Special Initiatives for over seven years, Shobana now steers the
organization‟s emergence as a proponent of integrated digital first healthcare services
in India through Apollo 24/7. She heads Apollo Pharmacy, India‟s largest pharmacy
chain with a pan-India network of over 4,000+ stores and 30,000+ employees. It serves
more than 6,00,000 customers a day...

Ms. Suneeta ReddyManaging Director

Suneeta Reddy is the Managing Director of Apollo Hospitals, Asia‟s foremost and
trusted healthcare provider. A member of the founding family, Suneeta Reddy started
working with Apollo Hospitals in 1989. Under her stewardship Apollo Hospitals has
emerged as a forerunner of integrated healthcare and also has a robust presence across
the healthcare spectrum; the Group has touched the lives of more than 200 million
individuals from over 140 countries...

24
 Awards
2021
Dr. Prathap C Reddy
Founder and Chairman, Apollo Hospitals Group was presented with the Champion of
Humanity Award by Hindustan Chamber of Commerce.
Dr. Prathap C Reddy
Founder and Chairman, Apollo Hospitals Group has been honoured with the title
Honorific Geras by Geriatric Society of India.

2020
Ms. Preetha Reddy
Vice Chairperson, Apollo Hospitals Enterprise Limited was conferred with the
Economic Times Businesswoman of the Year award in recognition of Apollo Hospitals
delivering outstanding medical care during the COVID-19 outbreak.
Ms. Suneeta Reddy
Managing Director, Apollo Hospitals Enterprise Limited was conferred with the
Economic Times Businesswoman of the Year award in recognition of Apollo Hospitals
delivering outstanding medical care during the COVID-19 outbreak.
Ms. Preetha Reddy
Vice Chairperson, Apollo Hospitals Enterprise Limited was conferred with the
„Healthcare Personality of the Year Award‟ by FICCI Healthcare Excellence Awards
2020.

2019
Dr. Prathap C. Reddy
Founder and Chairman, Apollo Hospitals Group was conferred with the Rotary
Institute 2019 Super Achiever Excellence in Healthcare Award for pioneering
innovation in accessible healthcare, bringing high quality healthcare within the reach of
all and conceptualizing a model for preventive healthcare.
Dr. Prathap C Reddy
Founder and Chairman, Apollo Hospitals Group was conferred with Outstanding
Institution Builder award by the All India Management Association.
Dr. Prathap C Reddy
Founder and Chairman, Apollo Hospitals Group was conferred with the „Effective
Succession Planning‟ award at the Economic Times Family Business Awards
Dr. Sangita Reddy
Joint Managing Director, Apollo Hospitals Enterprise Limited was felicitated with the
prestigious Healthcare Transformation Leader‟s Award for the exemplary role in
India‟s healthcare sector at India‟s Biggest Event on Innovation in Healthcare –
„Healthcare in today‟s Digital India‟

25
 CHAPTER - VI
DATA ANALYSIS AND
INTERPRETATION

26
 DATA ANALYSIS

PROCEDURE FOR COST ANALYSIS WITH REFERENCE CABG PACKAGE

 Apollo Hospital undergoes with different surgeries but mainly it‟s popular for
cardiac surgeries. This hospital as achieved success in satisfying the patient right
from the “Health to Wealth.”
 The package amount is charged according to the category of patient. They are
categorized under:
 General Ward
 Sharing
 Single Room
 Deluxe Room
All other charges such as material cost, Investigations, Drugs or Ward
Medicines, Bed Charges, Room Charges, Surgeon Fees, Employee Overhead,
Equipment Overhead, Other Overhead, Indirect Material etc., are charged according
to the above category.
The package consists of 10 days period:
 2 days before the surgery the patient admits in the hospital in General Ward.
 4 days in ICU.
 4 days in General Ward.
 Then gets discharged according to his condition.
The package also includes the investigations, Bandaging, Nebulisation, Inf/Syr
Pump, Ventilation, Oxygen only for package duration.
Other than the package the patient also incure other expenses i.e. pre-package and
post-package. That depends on the condition of patient and his stay in the hospital. Other
than the package days the patient might admit before 5 days of the surgery due to some
reason i.e. example if he is a diabetic patient he needs to take more care and post package
is incurred after the surgery. It depends on the number of days the patient stays or
depending on his condition. Other than this package the patients are also categories
according to the mode of payment i.e. cash or credit, cash payment is a payment which is
done at the same time by cash and the credit payment is a payment done by those
patients who can take advantage of the companies where they are employed. Those
companies bear the cost of surgery and further their payment is also divided under
payment of lump sum amount or in installments.

27
 STATEMENT SHOWING COST AND PROFIT/LOSS FOR THE YEAR 2021
MONTH WISE

STATEMENT OF COST & PROFIT FOR THE MONTH OF JANUARY

TABLE: 1.1

Particulars Amount Amount

Package 930000
Less-Materials Cost 68831
Investigation Fees 67500
Drugs 57500
Bed Charges 125100
Consultation Fees 185700
Employee OH 20000
Equipment OH 22500
Other OH 77500
Indirect Material 12500 637131
Profit 292869

GRAPH 2.1

28
 Calculation of Hospital Margin for the month of JANUARY, 2021

Operating Revenue – Operating Cost

Operating Revenue

= 9,30,000 – 6,37,131/ 9,30,000

= 2,92,869 / 9,30,000

= 0.3149 (or) 31%

INTERPRETATION:

In the month of January 2021 the package amount for the surgery was 9,30,000 Rs cost
and profits was 6,37,131 Rs & 2,92,869Rs and were as the hospital margin of Apollo
Hospital in the month of Jan is 31%.

29
STATEMENT OF COST & PROFIT FOR THE MONTH OF FEBRUARY
TABLE 1.2

Particulars Amount Amount

Packages 800000
Less-Materials Cost 65219
Investigation Fees 67500
Drugs 57500
Bed Charges 113400
Consultation Fees 157100
Employee OH 20000
Equipment OH 22500
Other OH 77500
Indirect Materials 12500 593219
Profit 206781

GRAPH: 2.2

30
 Calculation of Hospital Margin for the month of FEBRUARY 2021

Operating Revenue – Operating Cost

Operating Revenue

= 800000– 593219/ 800000

= 206781/ 800000

= 0.2584 (OR) 26%

INTERPRETATION:

In the month of February 2021 the package amount for the surgery was 800000 Rs cost
and profits was 593219 & 206781 Rs and were as the hospital margin of Apollo
Hospital in the month of Feb is 26% .

31
 STATEMENT OF COST & PROFIT FOR THE MONTH OF MARCH

TABLE: 1.3

Particulars Amount Amount

Packages 770000
Less-Materials Cost 67463
Investigation Fees 67500
Drugs 57500
Bed Charges 111600
Consultation Fees 150500
Employee OH 20000
Equipment OH 22500
Other OH 14500
Indirect Materials 12500 524063
Profit 245937

GRAPH: 2.3

32
Calculation of Hospital Margin for the month of MARCH 2021

Operating Revenue – Operating Cost

Operating Revenue

= 770000– 524063/ 770000

= 245937/ 770000

= 0.3193 (OR) 32%

INTERPRETATION:

In the month of March 2021 the package amount for the surgery was 770000Rs cost and
profits was 524063 Rs & 245937 Rs and were as the hospital margin of Apollo Hospital
in the month of March is 32% .

33
STATEMENT OF COST & PROFIT FOR THE MONTH OF APRIL

TABLE: 1.4

Particulars Amount Amount

Packages 922000
Less-Materials Cost 65970
Investigation Fees 67500
Drugs 57500
Bed Charges 121500
Consultation Fees 183500
Employee OH 20000
Equipment OH 22500
Other OH 77500
Indirect Materials 12500 628470
Profit 293530

GRAPH: 2.4

34
Calculation of Hospital Margin for the month of APRIL 2021

Operating Revenue – Operating Cost

Operating Revenue

= 922000– 628470/ 922000

= 293530/ 922000

= 0.3183 (OR) 32%

INTERPRETATION:

In the month of April 2021 the package amount for the surgery was 922000 Rs cost and
profits was 628470 Rs & 293530 Rs and were as the hospital margin of Apollo Hospital
in the month of April is 32%.

35
 STATEMENT OF COST & PROFIT FOR THE MONTH OF MAY

TABLE: 1.5

Particulars Amount Amount

Packages 810000
Less-Materials Cost 68834
Investigation Fees 67500
Drugs 57500
Bed Charges 113400
Consultation Fees 158100
Employee OH 20000
Equipment OH 22500
Other OH 77500
Indirect Materials 12500 597834
Profit 212166

GRAPH: 2.5

36
Calculation of HospitalMargin for the month of MAY 2021

Operating Revenue – Operating Cost

Operating Revenue

= 810000– 597834/ 810000

= 212166/ 810000

= 0.2619 (OR) 26%

INTERPRETATION:

In the month of May 2021 the package amount for the surgery was 810000 Rs cost and
profits was 597834 Rs & 212166 Rs and were as the hospital margin of Apollo Hospital
in the month of May is 26%.

37
STATEMENT OF COST & PROFIT FOR THE MONTH OF JUNE

TABLE: 1.6

Particulars Amount Amount

Packages 731000
Less-Materials Cost 66570
Investigation Fees 67500
Drugs 57500
Bed Charges 108900
Consultation Fees 141700
Employee OH 20000
Equipment OH 22500
Other OH 77500
Indirect Materials 12500 574670
Profit 156330

GRAPH: 2.6

38
Calculation of Hospital Margin for the month of JUNE

Operating Revenue – Operating Cost

Operating Revenue

= 731000– 574670/ 731000

= 156330/ 731000

= 0.2138 (OR) 21%

INTERPRETATION:

In the month of June 2021 the package amount for the surgery was 731000 Rs cost and
profits was 574670 Rs & 156330 Rs and were as the hospital margin of Apollo Hospital
in the month of June was 21%.

39
STATEMENT OF COST & PROFIT FOR THE MONTH OF JULY

TABLE 1.7

Particulars Amount Amount

Packages 706000
Less-Materials Cost 60610
Investigation Fees 67500
Drugs 57500
Bed Charges 108900
Consultation Fees 134220
Employee OH 20000
Equipment OH 22500
Other OH 77500
Indirect Materials 12500 561230

Profit 144770

GRAPH: 2.7

40
Calculation of Hospital Margin for the month of JULY

Operating Revenue – Operating Cost

Operating Revenue

= 706000 – 561230/ 706000

= 144770/ 706000

= 0.2050 (or) 20%

INTERPRETATION:

In the month of July 2021 the package amount for the surgery was 706000 Rs and were
as cost & profit was 561230 & 144770 Rs and were as the hospital margin of Apollo
Hospital in the month of July was 20%.

41
 STATEMENT OF COST & PROFIT FOR THE MONTH OF
AUGUST

TABLE: 1.8

Particulars Amount Amount

Packages 953000
Less-Materials Cost 144678
Investigation Fees 67500
Drugs 57500
Bed Charges 127800
Consultation Fees 190760
Employee OH 20000
Equipment OH 22500
Other OH 77500
Indirect Materials 12500 720738
Profit 232262

GRAPH: 2.8

42
Calculation of Hospital Margin for the month of AUGUST

Operating Revenue – Operating Cost

Operating Revenue

= 953000 – 720738/ 953000

= 232262/ 953000

= 0.2437 (OR) 24%

INTERPRETATION:-

In the month of August 2021 the package amount for surgery is 953000 Rs and were as
cost & profit was 720738 Rs & 232262 Rs were as hospital margin in the month of
August was 24%.

43
STATEMENT OF COST & PROFIT FOR THE MONTH OF SEPTEMBER

TABLE: 1.9

Particulars Amount Amount

Packages 940000
Less-Materials Cost 90549
Investigation Fees 67500
Drugs 57500
Bed Charges 118700
Consultation Fees 187900
Employee OH 20000
Equipment OH 22500
Other OH 77500
Indirect Materials 12500 654649
Profit 285351

GRAPH: 2.9

44
Calculation of Hospital Margin for the month of SEPTEMBER

Operating Revenue – Operating Cost

Operating Revenue

= 940000 – 654649/ 940000

= 285351/ 940000

= 0.303564894 (OR) 30%

INTERPRETATION:

In the month of September 2021 the package amount for surgery was 940000 Rs were as
cost & profit was 654649 Rs 285351 Rs were as hospital margin in the month of
September was 30%.

45
STATEMENT OF COST & PROFIT FOR THE MONTH OF OCTOBER

TABLE: 1.10

Particulars Amount Amount

Packages 846000
Less-Materials Cost 146521
Investigation Fees 67500
Drugs 57500
Bed Charges 125100
Consultation Fees 167220
Employee OH 20000
Equipment OH 22500
Other OH 77500
Indirect Materials 12500 696341
Profit 149659

GRAPH: 2.10

46
Calculation of Hospital Margin for the month of OCTOBER

Operating Revenue – Operating Cost

Operating Revenue

= 846000– 696341/ 846000

= 149659/ 846000

= 0.1769 (OR) 18%

INTERPRETATION:

In the month of October 2021 the package amount for surgery was 846000 Rs were as
the cost & profit was 696341 Rs & 149659 Rs were as the hospital margin for the month
of October was 18%

47
STATEMENT OF COST & PROFIT FOR THE MONTH OF NOVEMBER
TABLE: 1.11

Particulars Amount Amount

Packages 777000
Less-Materials Cost 66338
Investigation Fees 67500
Drugs 57500
Bed Charges 98700
Consultation Fees 152040
Employee OH 20000
Equipment OH 22500
Other OH 77500
Indirect Materials 12500 574578
Profit 202422

GRAPH: 2.11

48
Calculation of Hospital Margin for the month of NOVEMBER

Operating Revenue – Operating Cost

Operating Revenue

= 777000 – 574578/ 777000

= 202422/ 777000

= 0.2605 (OR) 26%

INTERPRETATION:

In the month of November 2021 the package amount of surgery was 777000 Rs were as
the cost & profit was 574578 Rs & 202422 Rs and were as the hospital margin was 26%.

49
STATEMENT OF COST & PROFIT FOR THE MONTH OF DECEMBER

TABLE: 1.12

Particulars Amount Amount

Packages 832000
Less-Materials Cost 79657

Investigation Fees 67500

Drugs 57500

Bed Charges 138600

Consultation Fees 181740

Employee OH 20000

Equipment OH 22500

Other OH 77500

Indirect Materials 12500 657497

Profit 174503

GRAPH: 2.12

50
Calculation of Hospital Margin for the month of DECEMBER

Operating Revenue – Operating Cost

Operating Revenue

= 832000 – 657497/ 832000

= 174503 / 832000

= 0.2097 (OR) 21%

INTERPRETATION:

In the month of December 2021 the package amount of surgery was 832000 Rs were as
cost & profit was 657497 Rs & 174503 Rs, were as the hospital margin is 21%

51
STATEMENT SHOWING COST & % CHANGE IN COST FOR 12 MONTHS
FOR THE YEAR 2021

TABLE: 3.1

MONTH COST % CHANGE

JAN 637131
FEB 593219 7%
MAR 524063 12%
APR 628470 20%
MAY 597834 5%
JUN 574670 4%
JULY 561230 2%
AUG 720738 28%
SEP 654649 9%
OCT 696341 6%
NOV 574578 17%
DEC 657497 14%

INTERPRETATION:
With the help of the table and graph it can be concluded that Apollo Hospital has able to
reduced the cost for past 12 months in the month of Feb the cost decreased by 7%, in
March decreased by 12%, in May by 5% were as in Sep it was decreased by 9%, in Nov
it was increased by 17%.But were as in the months of April, August & Dec the cost
increased by 20%, 28%, 14%.

52
STATEMENT SHOWING PROFITS AND CHANGE IN PROFITS FOR 12
MONTHS FOR 2021

TABLE 3.2

MONTH PROFITS % CHANGE

JAN 292869
FEB 206781 29%

MAR 245937 19%

APR 293530 19%

MAY 212166 28%

JUN 156330 26%

JUL 144770 7%

AUG 232262 60%

SEP 285351 23%

OCT 149659 48%

NOV 202422 35%

DEC 174503 14%

INTERPRETATION:

there is a lot of fluctuation in the profits of the Apollo Hospital in Feb it decreased by
29% were as in March it decreased by 19%but in April the profits increased by 19% and
were as in May again the profits are decreased by 28% and this trend continued June ,
July which is decreased by 26% & 7%.

53
 CHAPTER - VII
RESEARCH FINDINGS AND
SUGGESTIONS

54
 FINDINGS
 In the month of January 2021 the package amount for the surgery was 9,30,000
Rs cost and profits was 6,37,131 Rs & 2,92,869Rs and were as the hospital
margin of Apollo Hospital in the month of Jan is 31%.

 In the month of February 2021 the package amount for the surgery was 800000
Rs cost and profits was 593219 & 206781 Rs and were as the hospital margin of
Apollo Hospital in the month of Feb is 26% .

 In the month of March 2021 the package amount for the surgery was 770000Rs
cost and profits was 524063 Rs & 245937 Rs and were as the hospital margin of
Apollo Hospital in the month of March is 32% .

 In the month of April 2021 the package amount for the surgery was 922000 Rs
cost and profits was 628470 Rs & 293530 Rs and were as the hospital margin of
Apollo Hospital in the month of April is 32%.

 In the month of May 2021 the package amount for the surgery was 810000 Rs
cost and profits was 597834 Rs & 212166 Rs and were as the hospital margin of
Apollo Hospital in the month of May is 26%.

 In the month of June 2021 the package amount for the surgery was 731000 Rs
cost and profits was 574670 Rs & 156330 Rs and were as the hospital margin of
Apollo Hospital in the month of June was 21%.

 In the month of July 2021 the package amount for the surgery was 706000 Rs and
were as cost & profit was 561230 & 144770 Rs and were as the hospital margin
of Apollo Hospital in the month of July was 20%.

 In the month of August 2021 the package amount for surgery is 953000 Rs and
were as cost & profit was 720738 Rs & 232262 Rs were as hospital margin in the
month of August was 24%.

 In the month of September 2021 the package amount for surgery was 940000 Rs
were as cost & profit was 654649 Rs 285351 Rs were as hospital margin in the
month of September was 30%.

55
 In the month of October 2021 the package amount for surgery was 846000 Rs
were as the cost & profit was 696341 Rs & 149659 Rs were as the hospital
margin for the month of October was 18%
 In the month of November 2021 the package amount of surgery was 777000 Rs
were as the cost & profit was 574578 Rs & 202422 Rs and were as the hospital
margin was 26%.
 In the month of December 2021 the package amount of surgery was 832000 Rs
were as cost & profit was 657497 Rs & 174503 Rs, were as the hospital margin is
21%

SUGGESTIONS

 It has been observed throughout my study that Apollo Hospital is running in

profits but in some months of 2021 year the cost is suddenly increasing due to
that the profits are decreasing so the Hospital should focus to bring stability in
cost by making effective cost and benefit analysis.
 The Hospital should frame effective marketing strategies to create awareness
in the market and to compete with close competitor.
 Apollo Hospital margin is following a decreasing trend so the hospital should
focus on it.
 The hospital should introduce new packages for the patients.

56
 CHAPTER -VIII
SUGGESTIONS &
RECOMMENDATIONS

57
Cost analysis and revenue analysis analyze the inputs and factors that impact the mix
of products and services companies provide, procurement practices, resource
utilization, sales and marketing efforts, and product and service delivery. The
information gleaned from this analysis helps owners and managers identify actions to
take to reduce costs and drive additional revenues. Companies attempting to expand
their business lines, strengthen their financials, or enter new markets often find these
types of analysis useful.

Companies incur costs in many ways. Costs result from the production of goods, the
purchase of inventory, the operating of the business, and the purchase of assets. These
costs include the fixed and variable costs associated with production, depreciation and
investment costs, and general and administrative costs. Costs also include opportunity
costs, sunk costs and marginal costs. Cost analysis identifies and investigates the
sources and components of these costs. Cost analysis has several different names,
including cost allocation, cost-benefit analysis and cost-effectiveness analysis.

Companies generate revenues from sales of their products and services. To generate
more revenues, companies can increase the prices of existing products and services,
offer add-on services for an additional price, or introduce new products or services at a
higher price point. Companies can also increase revenues by increasing the quantity
sold. Firms accomplish this by lowering prices or increasing their marketing efforts to
stimulate demand.

Revenue analysis helps companies determine how to increase their revenues

significantly. When combined with cost analysis, it helps companies do this while
keeping costs at a minimum. Revenue analysis aids companies in assessing which
course of action produces the highest increase in revenue with the least effort.

58
BIBLIOGRAPHY

59
 BIBLIOGRAPHY

1. BOOKS REFERRED

BOOK NAME AUTHOR NAME EDITION

Advanced accountancy S.n.maheshwari III

Financial managment prasanna chandra VI

Financial managment M. Y. Khan &p.k jain VII

2. Hospital Financial and annual Reports

3. Web sites: www.google.com

4. Web sites:www.wikipedia.com

5. Web sites:www.scribd.com

60