A STUDY ON IMPACT OF A SUPERSPECIALITY HOSPITAL IN SERVING

THE SOCIETY IN MODERN DAY

By

S.HARI KRISHNAN

Roll No. 0804MBA0371

Reg. No. 68508200409

A PROJECT REPORT

Submitted to the

FACULTY OF MANAGEMENT SCIENCES

in partial fulfillment for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

In

HUMAN RESOURCE MANAGEMENT

CENTRE FOR DISTANCE EDUCATION

ANNA UNIVERSITY CHENNAI
CHENNAI - 600 025

AUGUST, 2010
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BONAFIDE CERTIFICATE

Certified that this project report titled “A STUDY ON IMPACT OF A SUPER

SPECIALITY HOSPITAL IN SERVING THE SOCIETY IN MODERN DAY” is

the bonafide work of Mr.S.HARI KRISHNAN (Register No. 68508200409) who

carried out the work under my supervision. Certified further that to the best of my

knowledge the work reported herein does not form part of any other project report or

dissertation on the basis of which a degree or award was conferred on an earlier occasion

on this or any other candidate.

Signature of student Signature of Guide

Name : S.HARI KRISHNAN Prof. A. Shameem
Roll No. : 0804MBA1204 Professor & Head
Reg No. : 68608200354 Aalim Muhammed Salegh College of
Engineering, Muthapudupet, IAF
Avadi, Chennai-55

Signature of Project-in-charge

Name : Prof. A. Shameem

Designation : Professor & Head
 iii

Certificate of Viva-voce- Examination

This is to certify that Mr.S.HARI KRISHNAN (Roll No. 0804MBA0371 ;

Register No. 68508200409) has been subjected to Viva-voce-Examination on

---------------- (Date) at ------------ (Time) at the Study centre Aalim Muhammed Salegh

College of Engineering, Muthapudupet, IAF-Avadi, Chennai -55.

Internal Examiner External Examiner

Name : Name :
(in capital letters) (in capital letters)
Designation : Designation :
Address : Address :

Coordinator
Study Centre
Name :
(in capital letters)
Designation :
Address :

Date :
 ABSTRACT

The impact of hospital highlights the features of the hospital. Changes in the health care
environment over the past ten years have prompted changes in the way hospitals are
being managed. The rising cost of health care has affected Medicare reimbursement. All
these conditions have resulted in decreased revenue and increased competition for
hospitals.

This study focuses on what billroth hospital have done to adapt to these changing
conditions and it mainly advocates the hospitals focused mission and dedicated
resources of improving quality and reduce costs.The quality of its service should be
standardized to international quality. Many patients felt that the parking facilities at
billroth hospitals were poor and it should be improved and also medical services can be
improved to serve the patients in much better way.

The
ACKNOWLEDGEMENT

At first I submit my heart full thanks to almighty for giving me the strength for
completing my degree project successfully.

I extend my sincere thanks to the management of Anna University (Distance

Education) and also the management of Aalim Muhammed Salegh College of
Engineering who gave me an opportunity to continue my studies in their study centre.

I wish to express my deep sense gratitude to Prof. A.Shameem, M.B.A., M.phil,

Adv. PGDMR, MISTE, Ph.D, Head of the Dept. of Management Studies and
Mr.J.Selvakumar, Coordinator of my study centre for their kind encouragement and
guidance.

I wish to express my gratitude to my guide Mr.S.CHANDRAMOULI , M.B.A.,

who supported me all the way in my project completion.

I submit my sincere thanks to Mr.PADMANABAN, Manager of Billroth hospital,

Chennai for permitting and guiding me to finish this project successfully.

I would like revealing my wholehearted thanks to my Study Centre faculty

members who encouraged me very much in project completeness.

I also wish to thank my parents, my friends, and my family members for their
kind support and encouragement for shaping and helping me to finish this project
successfully.

(S.HARI KRISHNAN)
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TABLE OF CONTENTS

CHAPTER CONTENTS Page

No
ABSTRACT Iv
LIST OF TABLES vii
LIST OF FIGURES viii

Chapter - 1 INTRODUCTION
1.1 Project Objectives 1
1.2 Need of the Study 2
1.3 Scope of the study 2
1.4 Statement of problems 3
1.5 Industry Profile 3
1.5.1 Progress of Textile Industry 4
1.5.2 Role of Textile Industry in India's GDP 5
1.6 Company Profile 5
1.6.1 Vision 6
1.6.2 Mission 7
1.6.3 Product Ranges 7
1.6.4 Certifications 9
1.7 Theoritical frame work about working capital 10

Chapter - 2 LITERATURE SURVEY

2.1 Review of Literature 27

Chapter - 3 METHODOLOGY

3.1 Research Design 30

3.2 Sources of data 30
3.3 Tools used 30
3.4 Other tools 32
 TABLE OF CONTENTS (CONTINUED)
Chapter - 4 DATA ANALYSIS AND INTERPRETATION
4.1 Ratio Analysis and Trend Analysis 33
4.1.1 Current Ratio 35
4.1.2 Projected Current Ratio 36
4.1.3 Working Capital Turnover Ratio 37
4.1.4 Projected Working Capital Turnover Ratio 38
4.1.5 Age of Inventory 39
4.1.6 Projected Age of Inventory 40
4.1.7 Debtors to Sales Ratio 41
4.1.8 Projected Debtors to Sales Ratio 42
4.1.9 Fixed Asset Turnover Ratio 43
4.1.9A Projected Fixed Asset Turnover Ratio 44
4.2 Correlation Analysis 45
4.2.1 Correlation analysis between Value Added Capital
47
Employed and Current Ratio
4.2.2 Correlation between Current Ratio and Capital employed 47
4.2.3 Correlation analysis between Value Added Capital
Employed and Working Capital Turnover Ratio 48
4.2.4 Correlation between Working Capital Turnover Ratio and
48
Capital employed
4.2.5 Correlation analysis between Value Added Capital
Employed and Age of Inventory 49
4.2.6 Correlation between Age of Inventory and Capital
49
employed
4.2.7 Correlation analysis between Value Added Capital
Employed and Debtors to Sales Ratio 50
4.2.8 Correlation between Debtors to Sales Ratio and Capital
50
employed
4.2.9 Correlation analysis between Value Added Capital
Employed and Fixed Asset Turnover Ratio 51
4.2.9A Correlation between Fixed Asset Turnover Ratio and
51
Capital employed
4.3 Determining the Optimal Cash balance 52
 TABLE OF CONTENTS (CONTINUED)
4.3.1 Optimum cash balance under certainty - Boumol's model 52
4.3.2 Optimum cash balance under uncertainty - Miller Orr 56
model
4.4 Operating cycle calculation 58
4.5 Working Capital Statement 60
4.6 Z score analysis 64

Chapter –5 CONCLUSION
5.1 Summary of Findings 67
5.2 Suggestions and Recommendations 70
5.3 Conclusion 72
APPENDIX 1 73
APPENDIX 2 74
REFERENCES 75
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LIST OF TABLES

TABLE NO. PARTICULARS PAGE

NO.

4.1 Summary of various ratios of Loyal Textile Mills Ltd. 34

4.1.1 Current Ratio 35
4.1.3 Working Capital Turn Over Ratio 37
4.1.5 Age of Inventory 39
4.1.7 Debtors to Sales Ratio 41
4.1.9 Fixed Asset Turnover Ratio 43
4.2 Consolidated Correlation Analysis 46
4.2.1 Current Ratio and Capital Employed 47
4.2.2 Correlation between Current Ratio and Capital Employed 47
4.2.3 Working Capital Turnover Ratio and Capital Employed 48
Correlation between Working Capital Turnover Ratio and
4.2.4 Capital Employed 48
4.2.5 Age of Inventory and Capital Employed 49
4.2.6 Correlation between Age of Inventory and Capital Employed 49
4.2.7 Debtors to Sales Ratio and Capital Employed 50
Correlation between Debtors to Sales Ratio and Capital
4.2.8 Employed 50
4.2.9 Fixed Asset Turnover Ratio and Capital Employed 51
Correlation between Fixed Asset Turnover Ratio and Capital
4.2.9A Employed 51
4.3.1 Optimum cash balance under certainty - Boumal's model 56
4.4.1 Operating cycle 59
4.5.1 Change in working capital - 2004-05 and 2005-06 60
4.5.2 Change in working capital - 2005-06 and 2006-07 61
4.5.3 Change in working capital - 2006-07 and 2007-08 62
4.5.4 Change in working capital - 2007-08 and 2008-09 63
4.6.1 Calculation of Z Score 65
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LIST OF FIGURES

FIGURE NO. PARTICULARS PAGE NO.

1.5 Textile Manufacturing 4

4.1.1 Current Ratio 35
4.1.2 Projected Current Ratio 36
4.1.3 Working Capital Turnover Ratio 37
4.1.4 Projected Working Capital Turnover Ratio 38
4.1.5 Age of Inventory 39
4.1.6 Projected Age of Inventory 40
4.1.7 Debtors to Sales Ratio 41
4.1.8 Projected Debtors to Sales Ratio 42
4.1.9 Fixed Asset Turnover Ratio 43
4.1.9A Projected Fixed Asset Turnover Ratio 44
4.4.1 Operating cycle 59
4.5.1 Change in working capital - 2004-05 and 2005-06 60
4.5.2 Change in working capital - 2005-06 and 2006-07 61
4.5.3 Change in working capital - 2006-07 and 2007-08 62
4.5.4 Change in working capital - 2007-08 and 2008-09 63
4.6.1 Z score 66
iv