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Venture Capital Financing for Rs.

100 crore Prepared by SBI Capitals

The best way to find yourself is to lose yourself in the service of others.

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About the company


It was in the year 1995 that Dr. P N C Menon founded ST

Agen Hospitals Pvt. Ltd. with the clear vision to "transform the way people perceive quality" in the Hospital industry Over a decade of quality focused best practices for providing world class services have helped us enhance quality of life and delight customers. Today we have 1oo bed capacity in Bangalore and ST Agen Hospitals is Rs. 300 cr plus company. We are having record of continuous growth in profitability and revenue. Now keeping in view of increase demand for quality service, we are planning to establish another new Hospital in Vashi, Navi Mumbai with cost of project of Rs. 350 crore
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About the Management


Dr. P.N.C. Menon - is the founder and chairman of St Agen Hospital

Pvt Ltd. An doctor and entrepreneur, He has master degree in medical science from AIIMS. Mr Menon began his professional career at the age of 26. He has more than 25 years of experience in the field of surgery and medicine. Mr. J.C. Sharma was the Chief Financial Officer of Sobha Developers Ltd. He is graduated with a Bachelor of Commerce (Hons.) degree from Xavier College , Calcutta . He is qualified chartered accountant and company secretary and has over 25 years of experience in diversified industries such as automobiles, textiles, steel & real estate in the areas of Finance and Management Mr. Anup Shah, has a bachelor's degree in commerce from HR college, Mumbai and a degree in law from Government Law College , Mumbai. He has over 22 years of experience in the field of law, specifically real estate law. He specializes in commercial and property documentation, corporate and commercial litigation, property related issues, and laws and arbitration and alternative dispute resolutions
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About the Project


With a large gap between the need and availability of

hospitals facilities, our focus is to increase the bed capacity by about 50% every year. We are planning to establish a new hospital with bed capacity of 100 in Vashi, NaviMumbai. Proximity of the place to Mumbai, Thane and Pune , availability proper transport facility and increased purchasing power and demand for hospitals, makes this place ideal for new project. The cost of the project will be Rs.350 crore, out which Rs. 100 crore will be financed by Venture capital, Rs 200 crore through debt and balance Rs. 50 crore from internal accruals and promoters contribution.
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Source of Finance

Amount in Rs. Cr
50 100

Fund From Venture Capital

Debt
Internal Accrual and Promoter Capital

200

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Application of Fund

Application of Fund Land Building Machine for Operation Theator Baloon Pump Ventilators(4) Monitors (8) Furniture & Fixtures Surgical Instruments Cathlab machine Monitor Ambulance Car Equipments required for Laboratory Working Capital Preliminary Exp. Total

Amount in Rs Cr 130.00 94.00 17.00 3.00 7.00 23.00 34.00 12.00 7.00 2.00 1.00 1.00 6.00 12.00 1.00 350.00

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Financials-Operating Statement
Particulars Year Operating Income Service and Other Charges Sale of Medicine Net Sales (A) Audited 31.03.2010 112.00 45.00 157.00 Projected 31.03.2011 122.00 68.00 190.00 Projected 31.03.2012 298.00 72.00 370.00 Projected 31.03.2013 458.00 80.00 538.00

Operating Expenses
a) Purchage of Medicine b) Stores and Spares c) Power and fuel d) Salary e) Repairs & Maintainance f)Expenses g) Depreciation Cost of Sales 6/16/2012 22.00 2.00 1.00 18.00 12.33 3.40 55.00 113.73 24.00 3.00 3.00 24.00 14.00 4.50 48.00 120.50 37.00 6.00 4.00 48.00 12.00 6.70 72.00 185.70 42.00 7.00 6.00 55.00 12.00 6.90 80.00 208.907

Financials-Operating Statement

h) Selling and General Exp. i) Interest/finance cost Total Operating Expenses (B) Operating Income ( A - B )

14.00 12.00 139.73 17.27

23.00 9.00 152.50 37.50

32.00 22.00 239.70 130.30

47.00 25.00 280.90 257.10

Add: Non Opearting Income


Less:Non operating Exp. Profit before tax Tax Paid Profit after tax Growth in Revenue % Growth in PAT %

2.00
1.00 18.27 5.48 12.79

3.00
1.00 39.50 11.85 27.65 21.02 116.20

3.00
1.00 132.30 39.69 92.61 94.74 234.94

4.00
1.00 260.10 78.03 182.07 45.41 96.60

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Financials Balance sheet


PARTICULARS LIABILITIES Audited 31.03.2010 Projected 31.03.2011 Projected 31.03.2012 Projected 31.03.2013

Capital
Reserves and Surplus Shareholders' Fund (A) Term loan from banks Total term liabilities (B) Current Liabilites Short term borrowings from bank (incl.WCDL) Sundry Creditors (Trade) & Acceptance Advance from customers Provision for taxation (Net) Other current liabilities/provisions Total Current Liabilities (C)
6/16/2012 Total Liabilities ( A + B + C )

120.00 301.00 421.00 55.00 55.00

132.00 328.65 460.65 45.00 45.00

232.00 421.26 653.26 222.00 222.00

356.00 603.33 959.33 332.00 332.00

6.00 2.40 2.00 0.59 11.66 22.65 498.65

7.00 2.22 1.00 5.08 14.49 29.79 535.44

10.00 2.60 2.60 3.45 14.25 32.90 908.16

10.00 3.56 1.90 3.56

26.98
46.00 1337.33
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Financials Balance Sheet


PARTICULARS Current Assets Cash and bank Balances Investments Receivables Inventory Advances recoverable in cash or kind 1.80 33.84 3.00 3.00 1.00 0.98 43.62 1.78 53.00 5.00 5.00 1.00 4.00 69.78 3.40 65.00 2.20 123.00 Audited 31.03.2010 Projected 31.03.2011 Projected 31.03.2012 Projected 31.03.2013

8.00
6.00 2.00 6.00 90.40

12.00
8.00 2.00 7.00 154.20

Other Current Assets


Total Current Assets (D) Fixed Assets Gross Block Less: Depreciation Add: Capital Work in Progress Net Fixed Assets (E) Total Non Current Assets (F) Total Assets ( D + E + F) 6/16/2012

504.65 55.00

426.66 48.00

767.34 72.00 119.42 814.76 3.00 908.16

905.18 80.00 354.95 1180.13 3.00 1337.33 10

4.38
454.03 1.00 498.65

85.00
463.66 2.00 535.44

Break Even Analysis

Year Break Even Analysis Sale Variable Cost Margine Fixed Asset Operating Profit % of PV ratio

31.03.2010

31.03.2011

31.03.2012

31.03.2013

157.00 41.40 115.60 97.33 18.27 73.63

190.00 54.50 135.50 96.00 39.50 71.32

370.00 81.70 288.30 156.00 132.30 77.92

538.00 102.90 435.10 175.00 260.10 80.87

Break Even Sales


Margine of Safety

132.19
24.81

134.61
55.39

200.21
169.79

216.39
321.61

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SWOT ANALYSIS
STREINGTH Experienced promoters having experience of more than 25 years in Surgery and Medicine Availability of experienced technical and commercial staff. Wide gape in demand and availability of hospitals will result in growth of sales manifold. WEAKNESS Land required for the project is still to be purchased. Environmental clearance, State Government clearance and Health Ministry is still to be obtained.
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SWOT ANALYSIS
OPPURTUNITY Availability of hospital beds in our country - against a world average of four beds per 1,000 population, India lags behind at just over 0.7 presently. We still need large no of hospitals to fill the gap. Proximity of this place to Mumbai and Pune and Thane, make it easy assessable to large no of people. Government is planning establish a new Air port near to this place will result in migration of more people to this place and ultimately result in sales increase. THREATS Competition from the big players of the market Changes in government Policy may make compliance more complex. Establishment of any other hospital in the area may effect the sales growth.
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Open for queries

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