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GORJA HEALTH CARE PRIVATE LIMITED

1. Gorja Health Care Pvt. Ltd. was incorporated on 02.10.05 for setting up a 50 bed well
equipped hospital with diagnostic centre at Kallam. The commercial operations of the
hospital started from 01.10.07 as against, 01.04.07 as originally projected. The delay was
mainly on account delay in construction of building.
Inaugurated on the 7th September 2007 by Hon Shri Padmasinghji Patil, we are constantly
and consistently progressing in all the aspects. We aim to deliver the best possible
healthcare in a homely and holistic manner to our patients who come from all strata of the
society
2. Cost of the project
Rs 285 lakhs (Actual cost Rs 410 lakhs)
3. Performance
Due to non availability of doctors in Orthopaedic and Medicine department the initial flow of
patient was not as per the expectation.
4. Company could not achieve the projected turnover which has resulted in incurring cash
losses.
The last two years working results as against projections are given below:-

Gross receipts
Cash Profits

2007-08
Projected
Actual
75.00
19.20
6.46
(31.64)

(Rs. in Lakhs)
2008-09
Projected
Actual
125.00
50.50
22.85
(40.20)

Due to cash losses incurred by the Company in last two years it is defaulting in payment in
interest and instalments to the bank.
To come out of difficulties the directors have introduced additional funds of Rs. ________
during last two years.
5. Current Performance
Currently the hospital is having 30 functional beds on its ground floor. In addition, there are
three intensive beds and a special care baby unit. The radiology department has x-ray and
ultrasound with Doppler machines. The laboratory can perform all the basic needed tests.
The outpatient unit has 10 rooms with an injection room. Currently we have Medicine,
Surgery, Obstetrics, Gynaecology, Orthopaedics and Paediatrics department. Also, certain
specialists like psychiatrist, dermatologist, and urologist visit for consultation/surgeries on
regular basis.

The IT system of the hospital is run by the HIS supplied by Seeds Software Ltd. and we
envisage a paperless digital environment with a smooth administration through it
Since January09 there has been overall improvement in the operation of the Hospital. With
the appointment of doctors in nearly all the departments and goodwill being created by our
good services, day by day things are moving in an encouraging way. Month by month the
business has shown an encouraging trend. The last four months performance is as given
below:(Rs. in Lakhs)
Month/
Department
Medicine
Surgery
Gynaecology
Laboratory
Radiology
Total (Above with
others)

March09

April09

May09

June09

0.55
0.96
0.33
0.29
0.21
1.89

0.51
1.31
0.83
0.29
0.18
2.74

0.96
0.97
0.92
0.21
0.28
2.86

1.23
1.15
0.84
0.39
0.54
3.21

6. Future Prospects
With the present improving trend we are hopeful to show better results. We are planning
to involve local general practitioners and get the inpatients from them. We envisage a
better future once the first floor gets functional and we are well equipped with the latest
machines like ventilators.
Recently the Company has started a Paramedical College affiliated with Bharat Sevak Samaj
which will improve its profitability in the coming the years. There are five courses and the
maximum intake is 50 candidates per course. We hope to get Rs 20,000 per month per
candidate.
However the funds generated through these may not be sufficient to meet the present
financial obligations.
The Projected Profitability for next one year has been worked out as below:-

Gross Receipt
Profit before Interest
Interest
Cash Profit
Instalments due
7. Requirement of Funds

(Rs. in Lakhs)
2009-10
2010-11
125.00
150.00
98.50
102.00
89.00
55.00
34.50
74.00
10
-

2011-12
160.00
104.00
--104.00
-

The cash profit of the Hospital in the first two years will not be sufficient to meet the
repayment obligations.
Hence funds are needed to be infused to meet the immediate repayment obligations.
Infusion of Rs.200 lakhs will act like oxygen and help the Company to revive faster.
8. The Revised Profitability
Rs.200 lakhs introduced in the Company will be utilized as below- Rs.150 lakhs for the
repayment to the bankers and Rs.50 lakhs for completing the 1 st floor and purchasing
equipments which will increase the capacity of the hospital resulting in increase in
profitability.

Profit before Interest


Interest
Balance for Repayment

2009-10
98.50
89.00
9.50

(Rs. in Lakhs)
2010-11
102.00
55.00
47.00

2011-12
104.00
--104.00

The bank loan hence will be fully repaid by 2010-11.


9. Terms & Conditions of Funds Infusion
The investor of Rs.200 lakhs would receive 51% of the company shares against the share
capital of Rs.100 lakhs and the balance Rs.100 lakhs with interest at the rate of 6% will be
repaid after the bankers dues are repaid. The dividends will be distributed after all these
dues are repaid.