SET 3: PowerPoint Presentation

Course 7 Financial Management

Name: Vishal Bindal
Batch: Diploma in Hospital Planning and Design 2022-2023
PRN: 22040786005
Programme: Diploma in Hospital Planning and Design
Submission timeline: 1st August, 2022
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PowerPoint Presentation
 Instructions:
 1. Please prepare the PowerPoint Presentations as per THIS template.
 2. Submit/Upload your PowerPoint Presentation in the learning management
system on or before submission timeline.
 3. Use font type: Times New Roman & size: 18 for writing your answers.
 4. Number of Slides: 10-15 slides excluding introduction and thank you
Select any one topic for PowerPoint Presentation

(Total: 10 marks)

 1. Prepare a presentation on methods used for basic

concepts of accounting.
Or
 2. Prepare a presentation on Functions of a Financial
Manager.
Functions of a Financial Manager
 There are four main functions of Financial Manager:
1. Investment Planning (Long term as well as short term)
2. Financing of activities, both CAPEX and OPEX via
Equity/Debt/Govt. Grant/Crowd Financing
3. Capital Management: Working as well as Operational
4. Profit Allocation: Dividend / Retention of profit
5. Financial Risk Management
 1.0 Investment Planning
 Analysis of CAPEX and OPEX requirements of a given project
 Fund requirement plotted on timeline to monitor and manage financial requirements as
and when required basis
 Investment planning involves investment as per various heads. This enables finance
manager to monitor whether fund are over utilised or under utilised and helps in creating
deficit
 Investment planning also enables finance manager to identify contingencies and emergency
fund requirements as well defined heads don’t fall in these sub-heads
 Budget Planning:
 Any project budget depends on many variables such as:
 Location of project
 Size of market
 Size of hospital: which defines its residential and non-residential building and
equipment and manpower requirement
 Projected Income and expenditure statement
 Phasing of Project
 Project specific Govt subsidies/ CSR (Corporate social responsibilities)/ CER
(Corporate Environmental Responsibilities) requirements
 2.0 Financing of Activities
For defining financial activities stages of project is required such as:
1. Socio- Economic Survey of area served
2. Land acquisition
3. Building planning and approval
4. Building construction and advertising
5. Installation of various equipment's and machinery
6. Hiring of manpower and HRD (Human Resource development) requirements like
training etc
7. Commissioning of project
8. Running of hospital for first five years/ till it reaches self-sustainable stage
After defining all these benchmarks along with capital required for each stage following
steps are required to be taken:
9. Amount of capital required at each stage
10. Sourcing of funds (Equity/Debt or both)
11. Long term/short term capital, secured/ unsecured capital
 3.0 Working Capital Management
Definition of Working Capital (WC)
 Working capital typically means the firm’s holding of current or short-term assets
such as cash, receivables, inventory and marketable securities.
 These items are also referred to as circulating capital
 Corporate executives devote a considerable amount of attention to the
management of working capital.
Working Capital refers to that part of the firm’s capital, which is
required for financing short-term or current assets such a cash
marketable securities, debtors and inventories.
Funds thus, invested in current assets keep revolving fast and are constantly
converted into cash and this cash flow out again in exchange for other current
assets.
Working Capital is also known as revolving or circulating capital or short-term
capital.
3.0 Working Capital Management (Contd.)
3.0 Working Capital Management (Contd.)
 Setting up of Financial Procedures and system:
 Setting up of Financial approval process
 Billing cycle and payment procedures
 Defining Tax liabilities and their due clearances
 Revenues:
 Setting targets for revenues
 Exploring new methods for revenue generation
 Based on client and patient feedback improvisation in services and value addition to services
 Expanses:
 Managing expenses
 Maintaining critical balance between services and expanses
 Optimising manpower requirements
 Utilisation of plant and machinery for 100% capacity
3.0 Working Capital Management (Contd.)
 Capital Management:
 Working capital management is concerned with the problems that arise in
attempting to manage the current assets, the current liabilities and the
interrelations that exist between them.
 Current assets refer to those assets which in the ordinary course of
business can be, or will be, converted into cash within one year without
undergoing a diminution in value and without disrupting the operations of
the firm.
 Examples- cash, marketable securities, accounts receivable and inventory.
 Current liabilities are those liabilities which are intended, at their
inception, to be paid in the ordinary course of business, within a year, out
of the current assets or the earnings of the concern.
 Examples- accounts payable, bills payable, bank overdraft and outstanding
expenses
This needs decision on whether to give credit, payment to supplier,
managing cash and cash flow, managing inventory
4.0 Profit Allocation (Dividend v/s Retention
 Corporate profits are either retained by firm or paid as dividend
to shareholders or both
 Finance management requires to need to answer following
questions and to strike a balance between dividend and
retention
 How much profit to be retained and how much to be distributed?
 Whether to go for profit maximization or wealth creation?
 Profitability or quantum of profit?
 How much to be retained as savings and how much to be reinvested
before dividend?
Answer to above question is project specific and risk involved in project
 5.0 Financial Risk Management
 There is always a risk involved in every project
 Risk management aims to balance the risk taken and ensure the returns
in tune with risk involved
 Main risks involved in hospital project are:
 New competition in the market
 Emerging technologies
 Change in Disease profile
 Human resource management: neither managers nor directors can treat a
patient. So if doctors and paramedical staff migrates from hospital the
whole scheme collapse like pack of cards
 Inflation, bank interest rates and purchasing power of target client
 Government regulations
 Defaming due to operational lapses or lesser customer satisfaction
Thank you