Mar 31, 2015
The Directors have pleasure in presenting their 25th Annual Report and
Audited Statement of Accounts of the Company for the year ended 31!t
March, 2015.
PERFORMANCE AT A GLANCE: (Rs. in Lakhs)
Year ended Year ended
Particulars 31.03.2015 31.03.2014
Gross Income 1898.88 1800.20
Profit / (Loss) Before Depreciation,
Tax a Financial Expenses 225.77 268.47
Financial Expenses 138.38 139.35
Depreciation 118.71 80.95
Profit/(Loss) Before Tax (31.32) 48.18
Less: Exceptional Items 65.89
Tax Expenses:
a. Current Tax - -
b. Fringe Benefit Tax - -
c. Deferred Tax Liability - -
d. Income Tax for earlier year - 3.54
Profit / (Loss) for the year carried
to Balance Sheet (97.21) 44.64
DIVIDEND
No Dividend has been recommended by the Board in view of losses
suffered by the Company in FY 2014-15.
TRANSFER TO RESERVES:
As the company has suffered loss, there are no transfers made to
Reserves a Surplus during the year under review.
BUSINESS OPERATIONS:
The Company has made a gross income of Rs.1898.88 Lakhs during the year
under review (previous year-Rs 1800.20 Lakhs). The depreciation for the
year under review amounted to Rs. 118.71 Lakhs as against Rs.80.95
Lakhs in the corresponding period of the previous year. The Company has
registered a Loss of Rs. (97.20) Lakhs during the year under review as
against the profit after tax of Rs 44 64 Lakhs of the previous year.
Increase in employee cost, administrative expenses, repairs a
maintenance and depreciation are the main reasons for the decrease in
Net Profit. Due to competition by various hospitals located near our
hospital the company was compelled to maintain competitive rates for
the patients. The Patient Care services underwent improvements which
resulted in improved service levels which in turn contributed to the
revenue growth. Your management believes that the strengthening of
existing facilities and addition of new facilities and services with
restructuring of tariff keeping always the affordability factor in mind
will improve the performance to further heights.
OPERATIONAL HIGHLIGHTS
During the year under review, the number of inpatients was 4041 as
against 4398 in the previous year. The number of outpatients was 29237
during the year under review as against 29918 in the previous year. The
average occupancy was 80%.
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed review of operations, performance and future outlook of the
Company is contained in the "MANAGEMENT DISCUSSION AND ANALYSIS REPORT"
that forms an integral part of this report. (Annexure-I)
MATERIAL CHANGES 6 COMMITMENTS:
There is no change in the nature of business of the company during the
year. There are no material changes and commitments in the business
operations of the company since the close of the financial year on 31
st March 2015 to the date of this report.
EXTRACT OF ANNUAL RETURN:
As required pursuant to Section 92(3) of the Companies Act, 2013 and
rule 12(1) of the Companies (Management and Administration) Rules,
2014, an extract of annual return in MGT 9 is given in (Annexure-II)
REAPPOINTMENT OF DIRECTOR:
Mr. NAVIN RAAKESH, Director is retiring by rotation at this Annual
General Meeting and being eligible offer himself for re-appointment.
COMPOSITION OF COMMITTEES OF BOARD:
Currently the board has three committees: Audit Committee, Nomination &
Remuneration Committee and Stakeholders Relationship Committee.
The Com positions Activities are as follows:
Name of the
Committee Composition of the Highlights of duties,
responsibilities
Committee/ No of
times the & Activities
committee met
Audit
Committee Dr. R, Venkataswami
Chairperson of the
Committee - The Audit Committee was
(Independent Director) mandated with the same Terms of
Reference specified in Clause
49 of
Mr. T Jeyapragasam the Listing Agreements with Stock
Secretary of the
Committee Exchanges.
(Company Secretary)
Dr. S. Kameswaran - The current Terms of Reference
(Independent Director) fully conform to the requirements
of
Mr. B. Ramachandran the Companies Act
(Independent Director)
- The Audit committee is
Mr. A.N. Radhakrishnan responsible for overseeing the
(Chairman & Managing , Company s financial reporting
Director) process, reviewing the quarterly
/half- yearly/ annual financial
statements, reviewing with
the management the
The Committee met
4 times financial statements and adequacy
of
on internal audit function,
recommending
* 29-05-2014 the appointment re-appointment of
* 14-08-2014 statutory auditors and fixation
of audit
* 10-11-2014 fees, reviewing the significant
internal
* 12-02-2015 audit findings/related party
transactions, .reviewing the
Management Discussion and
Analysis of financial condition
and result of operations and also
statutory compliance issues.
- The Committee acts as a link
between the management, external
and internal auditors and the
Board of Directors of the
Company.
Nomination &
Remuneration Dr. S. Kameswaran - - To fix salary allowances and
other
Committee Chairperson of the
Committee perks to senior level personnel
as and
(Independent Director) when appointed by the Company.
Dr. R. Venkataswami REMUNERATION POLICY The
(Independent Director) Remuneration Policy of the
Company for the managerial
personnel is based
Mr. B. Ramadiandran on the performance potential
and
(Independent Director) performance of the individual/
personnel.
The Committee met on CEOCFO CERTIFICATION by
1448-2014 Dr. V. Krishnamurthy, Chief
Executive Officer and Mr. A.N.
Radhakrishnan, Chairman &
Managing Director as required
under Clause 49 (DQ of the
Listing Agreement was placed
before the Board at its meeting
held on 28.05.2015.
Stakeholders
Relationship Dr. S. Kameswaran - The Company has attended
to the
Committee Chairperson of the
Committee investors! complaints and
redressed
(Independent Director) them within 15 days from the date
of their receipt during the
year 2014-
Dr. R. Venkataswami 2015-
(Independent Director)
Mr. B. Ramachandran
(Independent Director)
POLICIES OF THE BOARD:
WHI5TLE BLOWER POLICY:
As per Section 177 (9) of the Act read with relevant Rule 7 of the
Companies (Meetings of Board and its Powers) Rules, 2014 and Clause 49
of the Listing Agreement, the Company has established a vigil mechanism
overseen by the Audit Committee. The Policy ensures that strict
confidentiality is maintained whilst dealing with concerns and also
that no discrimination will be meted out to any person for a genuinely
raised concern. This has been uploaded in the Company's website. No
complaint under this facility was received in FY 2014-15.
REMUNERATION POLICY:
The Remuneration Policy of the Company for the managerial personnel is
based on the performance potential and performance of the
individual/personnel.
RI5K MANAGEMENT POLICY:
The Company has Business Risk Management framework to identify,
evaluate business risks and opportunities. This framework seeks to
create transparency, minimize adverse impact on the business objectives
and enhance the Company's competitive advantage.
AUDITORS
M/s. varma and Varma (FRN. 0045325), Chartered Accountants, Chennai-600
020, has been appointed as the auditors of the Company at the 24th
Annual General Meeting held on 17.09.2014 6 their appointment has to be
ratified for the current financial year. There are no qualifications in
the Independent Auditors report.
SECRETARIAL AUDIT:
Pursuant to Section 204(1) of the Companies Act, 2013 read with the
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014, the Company has appointed Mr. T. Murugan, a Practicing Company
Secretary (C.P.No.4393) to undertake the Secretarial Audit of the
Company for FY 2014-15.
The Secretarial Audit Report was placed before the Board on 28th May
2015. There are no qualifications in the Secretarial Audit Report.
(Annexure-III)
PUBLIC DEPOSITS
The Company has not accepted deposits during the year and there are no
public deposits fallen due for payment and claimed but not paid as on
31st March, 2015. The total amount of deposit outstanding as at 31st
March, 2015 was Nil.
SIGNIFICANT OF MATERIAL ORDERS:
There are no significant and material orders passed by the regulators
or courts or tribunals impacting the going concern status and company's
operations in future.
DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS:
The Company has an Internal Control System, commensurate with the size,
scale and complexity of its operations. To maintain its objectivity and
independence, the Internal Audit function reports to the Chairman of
the Audit Committee of the Board. During the year, such controls were
tested and no reportable material weaknesses in the operations
were observed.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
The company did not give any Loan or Guarantee or provided any security
or make investment covered under Section 186 of the Companies Act, 2013
during the year.
CORPORATE SOCIAL RESPONSIBILITY:
The requirements of compliance of Corporate Social Responsibility are
not applicable to our company.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTY:
Particulars of contracts or arrangements with Related Patties referred
in Section 188(1) of the Companies Act, 2013 is furnished in accordance
with Rule 8(2) of the Companies (Accounts) Rules, 2014in FormAOC-2
(Annexure IV).
FORMAL ANNUAL EVALUATION:
The Board has carried out the annual performance evaluation of its own
performance and the Directors individually after taking into
consideration inputs received from the Directors, covering various
aspects on the Boards' functioning such as adequacy of the composition
of the Board and its Committees, performance of specific duties,
obligations and governance.
The Performance evaluation of the Independent Directors was carried out
by the entire board 6 the Performance evaluation of the Chairman was
carried out by the Independent directors.
The Directors expressed their satisfaction with the overall evaluation
process.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Particulars required to be disclosed under the Companies (Disclosures
of Particulars in the Report of the Board of Directors) Rules, 1988 are
annexed hereto and the same forms part of this Report. (Annexure V)
REPORT ON CORPORATE GOVERNANCE
Your Company continues to strive towards highest standards of Corporate
Governance. The report of Board of Directors on Corporate Governance is
given in separate section titled "Report on Corporate Governance" which
forms part of this Annual Report. The company has established Whistle
Blower Mechanism. (Annexure VI)
DIRECTORS' RESPONSIBILITY STATEMENT:
In pursuance of section 134 (5) of the Companies Act, 2013, the
Directors hereby confirm that:
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed and that there is no material
deviation there from:
(b) Reasonable and prudent accounting policies have been applied in the
preparation of the financial statements, that they have been
consistently applied and that reasonable prudent judgment and estimates
have been made in respect of items not concluded by the year end, so as
to give a true and fair view of the state of affairs of the Company as
at 31st March, 2015 and of the Loss for the year ended on that date.
(c) Proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of this Act for
safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities.
(d) The financial statements have been prepared on a going concern
basis.
(e) The Directors, had laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating efficiently.
(f) The directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems are
adequate and operating efficiently.
DUES TO SSI
During the year under review, the following dues were outstanding more
than Rs.1,00,000/- to Small Scale Industrial Units:
1. M/S. Shree Health Care India - Rs. 1,37,644 /-
2. M/S. Medicine Zone - Rs. 3,34,581 /-
3. M/S. Sri Vari Paadham Products - Rs. 3,07,551 /-
LISTING FEES:
The Company confirms that it has paid the annual listing fees for the
year 2015-16 to BSE where shares of the company are listed.
ACKNOWLEDGEMENTS:
Your Company is grateful for the co-operation and assistance extended
by various Departments of Government of Tamilnadu and Government of
India. The Board also wishes to place on record its appreciation of the
dedicated services of our Consultants, employees and other members of
the hospital. The Board also places on record its sincere appreciation
to the Shareholders for reposing faith in the management of the
Company.
ON BEHALF OF THE BOARD
Place: Chennai A.N. RADHAKRISHNAN
Date : 28.05.2015 CHAIRMAN & MANAGING DIRECTOR
Mar 31, 2014
Dear members,
The Directors have pleasure in presenting their 24th Annual Report and
Audited Statement of Accounts of the Company for the year ended 31st
March, 2014.
PERFORMANCE AT A GLANCE: (Rs. in Lakhs)
Particulars Year ended Year ended
31.03.2014 31.03.2013
Gross Income 1800.20 1622.16
Profit / (Loss) Before Depreciation,
Tax & Financial Expenses 268.47 292.31
Financial Expenses 139.35 153.10
Depreciation 80.95 70.51
Profit / (Loss) Before Tax 48.18 68.70
Tax Expenses
a. Current Tax - -
b. Fringe Benefit Tax - -
c. Deferred Tax Liability - -
d. Income Tax for earlier year 3.5 -
Profit / (Loss) for the year carried to
Balance Sheet 44.64 68.70
DIVIDEND
In view of the insufficient profit, your Directors could not recommend
any dividend for the year.
BUSINESS OPERATIONS
The Company has made a gross income of Rs. 1800.20 Lakhs during the
year under review (previous year-Rs.1622.16 Lakhs). The depreciation
for the year under review amounted to Rs.80.95 Lakhs as against
Rs.70.51 Lakhs in the corresponding period of the previous year. The
Company has registered a profit after tax of Rs.44.64 Lakhs during the
year under review as against the profit after tax of Rs.68.70 Lakhs.
Increase in employee cost and repairs and renewals are the main reasons
for the decrease in Net Profit. Due to competition by various hospitals
located near our hospital the company was compelled to maintain
competitive rates for the patients. However, due to the increased
expenditure on repairs and renewals to the age-old medical equipments
coupled with cost of renewals on quite number of areas of the hospital
building the growth rate in the Net Profit level has not gone up.
The Patient Care services underwent improvements which resulted in
improved service levels which in turn contributed to the revenue growth
and consequently leading to improved Gross Profits. The business has
started improving and we are hopeful to get good amount of business in
the succeeding years.
Your management believes that the strengthening of existing facilities
and addition of new facilities and services with restructuring of
tariff keeping always the affordability factor in mind will boost the
performance to further heights.
OPERATIONAL HIGHLIGHTS
During the year under review, the number of inpatients has gone upto
4398 during the year under review as against 4174 in the previous year.
The number of outpatients was 29918 during the year under review
against 30289 in the previous year. The average occupancy was 80%.
DIRECTORS
The term of Mr. A.N. Radhakrishnan, Chairman and Managing Director will
be expiring on 28.04.2015. In view of the new provisions of the
Companies Act, 2013 and also taking into account the probable date of
Annual General Meeting of the company will be only after expiry date of
his present tenure, the Board has considered for his reappointment with
effect from the date of ensuing Annual General Meeting on the existing
terms and conditions of his appointment and recommended for his
reappointment for a further period of three years from the date of the
ensuing Annual General Meeting. Mrs. Premalatha Kanikannan, Director
is retiring by rotation at this Annual General Meeting and being
eligible offers herself for re-appointment.
The Board met 5 times on 09.05.2013; 14.08.2013; 25.09.2013; 13.11.2013
and 08.02.2014.
In terms of Section 149 and any other applicable provisions of the
Companies Act, 2013, Dr. Venkataswami. R (DIN: 02622178), Dr. S.
Kameswaran (DIN No. 00255389) and Mr. Ramachandran.B (DIN No.06397113)
offer themselves for appointment as Independent Directors. The Board
proposes to appoint them as Independent Directors for a term upto March
31, 2019 not liable to retire by rotation.
AUDIT COMMITTEE
Dr. R. Venkataswami, Independent Director-Chairman, Dr. S. Kameswaran
and Mr. B. Ramachandran - Independent Directors-Members. Mr.A.N.
Radhakrishnan, Chairman and Managing Director is also a member of the
Audit Committee. The Committee met 4 times on 09.05.2013; 14.08.2013;
13.11.2013 and 08.02.2014.
DUES TO SSI
During the year under review, there are no outstanding dues amounting
to or exceeding Rs. 1,00,000/- to any Small Scale Industrial Units by
the Company except the following.
1. M/S. Shree Health Care India - Rs.1,49,070/-
2. M/S. Medicine Zone - Rs.3,84,133/-
3. M/S. Sri Vari Paadham Products - Rs.1,95,622/-
DlRECTORS'' RESPONSIBILITY STATEMENT
As required under the Companies Act, 1956, your Directors confirm:
(a) That in the preparation of the annual accounts, the applicable
accounting standards have been followed and that there is no material
deviation therefrom.
(b) Reasonable and prudent accounting policies have been applied in the
preparation of the financial statements, that they have been
consistently applied and that reasonable prudent judgment and estimates
have been made in respect of items not concluded by the year end, so as
to give a true and fair view of the state of affairs of the Company as
at 31 st March, 2014 and of the Profit for the year ended on that date.
(c) Proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies
Act, 1956 for safeguarding the assets of the Company and for preventing
and detecting fraud and other irregularities.
(d) The financial statements have been prepared on a going concern
basis.
PUBLIC DEPOSITS
Your Company has not accepted deposits during the year and there are no
public deposits fallen due for payment and claimed but not paid as on
31st March, 2014. The total amount of deposit outstanding as at 31st
March, 2014 was Nil.
HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION
Your Company has substantially complied with all applicable
Environmental Laws and Labour Laws.
PERSONNEL
A statement concerning employees as required by Section 217(2A) of the
Companies Act, 1956 is attached to this report.
AUDITORS
M/s.Varma and Varma (FRN. 004532S), Chartered Accountants,
Chennai-600020, the auditors of the Company retire at the ensuing
Annual General Meeting and are eligible for reappointment.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Particulars required to be disclosed under the Companies (Disclosures
of Particulars in the Report of the Board of Directors) Rules, 1988 are
annexed hereto and the same forms part of this Report. (Annexure -1)
REPORT ON CORPORATE GOVERNANCE
Your Company continues to strive towards highest standards of Corporate
Governance. The report of Board of Directors on Corporate Governance is
given in separate section titled "Report on Corporate Governance" which
forms part of this Annual Report. The Company has established Whistle
Blower mechanism.
MANAGEMENT DISCUSSION AND ANALYSIS
Adetailed review of operations, performance and future outlook of the
Company is given separately under the head "Management Discussion and
Analysis" and forms part of this report.
ACKNOWLEDGEMENTS
Your Company is grateful for the co-operation and assistance extended
by various Departments of Government of Tamilnadu and Government of
India. The Board also wishes to place on record its appreciation of the
dedicated services of our Consultants, employees and other members of
the hospital. The Board also places on record its sincere appreciation
to the Shareholders for reposing faith in the management of the
Company.
ON BEHALF OF THE BOARD
Place: Chennai A.N. RADHAKRISHNAN
Date : 14.08.2014 CHAIRMAN a MANAGING DIRECTOR
Mar 31, 2013
The Directors have pleasure in presenting their 23rd Annual Report and
Audited Statement of Accounts of the Company for the year ended 31st
March, 2013.
PERFORMANCE AT A GLANCE: (Rs. in Lakhs)
Particulars Year ended Year ended
31.03.2013 31.03.2012
Gross Income 1622.16 1493.57
Profit / (Loss) Before
Depreciation, Tax Et
Financial Expenses 292.31 231.63
Financial Expenses 153.10 157.55
Depreciation 70.51 67.05
Profit / (Loss) before Tax and
Exceptional Items 68.70 7.03
Add: Exceptional Item -- --
Profit / (Loss) Before Tax 68.70 7.03
Provision for Taxation
a. Current Tax
b. Fringe Benefit Tax -- --
c. Deferred Tax Liability
d. Income Tax/FBT of earlier years -- --
Profit / (Loss) for the year
carried to Balance Sheet 68.70 7.03
BUSINESS OPERATIONS
During the year under review the operating performance of the Company
has shown improvement. Profit Before Tax was Rs.68.70 Lakhs compared
to the previous year figure of Rs.7.03 Lakhs and there was no income
tax liability. Your Company has achieved a gross income of Rs. 1622.16
Lakhs as against Rs. 1493.57 Lakhs in the previous year (increase of
8.61%).
Patient Care and Patient Welfare Services have contributed to
significant improvement in patient satisfaction levels. Your Company
continues renovation activities, up gradation of medical and engineering
equipments to suit the present needs.
Your management believes that the strengthening of existing facilities
and addition of new facilities and services with restructuring of
tariff keeping always the affordability factor in mind will boost the
performance to further heights.
OPERATIONAL HIGHLIGHTS
During the year under review, the number of inpatients has gone up to
4174 as against 3964 in the previous year. Similarly, the number of
outpatients also gone up to 30289 from 25311 in the previous year. The
average occupancy was 80%.
The growth in occupancies and revenues with focus on efficiencies and
cost control has led to better performance during the year under
review. Your company continued its focus on quality parameters and
patient satisfaction.
DIVIDEND
In view of the insufficient profit, your Directors express their
inability to recommend any dividend for the year. Also during the said
year no amount has been transferred to reserves.
DIRECTORS
During the year under review Dr. S. Kameswaran and Mr. G. R. Navin
Rakesh are retiring by rotation and are seeking reappointment. Mr. B.
Ramachandran was appointed as an Additional Director under Section 260
of the Companies Act 1956 on 26.09.2012 and his tenure expires at the
ensuing Annual General Meeting and in respect of whom the company has
received a notice under Section 257 of the Companies Act, 1956
proposing his candidature for the office of the Director which has been
included in the Notice under Special Business for the approval of the
members. The Board met five times on 14.05.2012; 13.08.2012;
26.09.2012; 07.11.2012 and 13.02.2013.
AUDIT COMMITTEE
The Company has constituted Audit Committee and the following are the
members:
Dr. R. Venkataswami - Chairman, Mr. A.N. Radhakrishnan, Dr. S.
Kameswaran and Mr. B. Ramachandran as Members.
The Committee met 4 times on 14.05.2012, 13.08.2012, 07.11.2012 and
13.02.2013.
DUES TO SSI
During the year under review, there are no outstanding dues amounting
to or exceeding Rs. 1,00,000/- to any Small Scale Industrial Units by
the Company except the following.
1. M/S. Ganesh Pharmaceuticals - Rs.3,39,859/-
2. M/S. Shree Health Care India - Rs.1,41,123/-
3. M/S. Medicine Zone - Rs.3,39,598/-
4. M/S. Sri Sai Enterprises - Rs.2,10,168/-
Directors'' RESPONSIBILITY STATEMENT
As required under the Companies Act, 1956, your Directors wish to
state:
(a) That in the preparation of the annual accounts, the applicable
accounting standards have been followed and that there is no material
deviation there from.
(b) Reasonable and prudent accounting policies have been applied in the
preparation of the financial statements, that they have been
consistently applied and that reasonable prudent judgment and estimates
have been made in respect of items not concluded by the year end, so as
to give a true and fair view of the state of affairs of the Company as
at 31 st March, 2013 and of the Profit for the year ended on that date.
(c) Proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies
Act, 1956 for safeguarding the assets of the Company and for preventing
and detecting fraud and other irregularities.
(d) The financial statements have been prepared on a going concern
basis.
PUBLIC DEPOSITS
Your Company has not accepted deposits during the year and there are no
public deposits fallen due for payment and claimed but not paid as on
31st March, 2013. The total amount of deposit outstanding as at 31 st
March, 2013 was Nil.
HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION
Your Company has substantially complied with all applicable
Environmental Laws and Labour Laws.
PERSONNEL
A statement concerning employees as required by Section 217(2A) of the
Companies Act, 1956 is attached to this report.
AUDITORS
M/s.Varma and Varma, Chartered Accountants, Chennai-600 020, the
statutory auditors of the Company will retire at the conclusion of the
ensuing Annual General Meeting and being eligible offer themselves for
reappointment as statutory auditors for the financial year 2013-14.
EXPLANATION TO AUDITORS'' COMMENTS
Reply to qualification given by the auditors in the Auditors'' Report:
Auditors'' Qualification: Para 9(a) of the Annexure to the Auditors''
Report:
9(a) The company has been fairly regular in depositing undisputed
statutory dues including Provident Fund, Income-Tax, Sales-Tax and
Service Tax with the appropriate authorities during the year except for
minor delay in stray cases. According to the information and
explanation given to us, there are no undisputed amount payable in
respect of Provident Fund, Investors Education and Protection Fund,
ESI, Income-Tax, Sales Tax, Service Tax, Wealth Tax, Customs Duty,
Excise Duty, Cess and any other statutory due which are overdue for a
period of more than six months as on the Balance Sheet date except for
minor delay in stray cases.
Management''s reply:
Due to transition from manual filing to electronic filing relating to
various statutory remittances the minor delays occurred. It will be
avoided in future.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Particulars required to be disclosed under the Companies (Disclosures
of Particulars in the Report of the Board of Directors) Rules, 1988 are
annexed hereto and the same forms part of this Report. (Annexure -1)
REPORT ON CORPORATE GOVERNANCE
Your Company continues to strive towards highest standards of Corporate
Governance. The report of Board of Directors on Corporate Governance is
given in separate section titled "Report on Corporate Governance"
which forms part of this Annual Report.
SUBSIDIARIES
Your Company has no subsidiary.
DEMATERIALISATION OF SHARES:
Your Company has entered into agreements with the National Securities
Depositories Limited(NSDL) and Central Depository Services(lndia)
Limited(CDSL) for dematerialization of the shares of the company.
Accordingly the shares of your company are available for
dematerialization and can be traded in Demat form.
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed review of operations, performance and future outlook of the
Company is given separately under the head "Management Discussion and
Analysis" and forms part of this report.
ACKNOWLEDGEMENTS
Your Directors are grateful to the Government of India, the Government
of Tamilnadu, Bankers, promoters, customers, suppliers and general
public for their valuable support. The Directors wish to thank the
shareholders for their continued support and also place on record their
appreciation for the consistent good work put in by all cadres of
employees.
ON BEHALF OF THE BOARD
Place: Chennai A.N. RADHAKRISHNAN
Date : 14.08.2013 CHAIRMAN & MANAGING DIRECTOR
Mar 31, 2012
The Directors have pleasure in presenting their 22nd Annual Report and
Audited Statement of Accounts of the Company for the year ended 31 st
March, 2012.
PERFORMANCE AT AGLANCE: (Rs. in Lakhs)
Particulars Year ended Year ended
31.03.2012 31.03.2011
Gross Income 1493.57 1273.90
Profit/ (Loss) Before
Depreciation, Tax & Financial Expenses 231.63 124.13
Financial Expenses 157.55 142.41
Depreciation 67.05 61.82
Profit / (Loss) before Tax and
Exceptional items 7.03 (80.10)
Add: Exceptional Item -- --
Profit/(Loss) Before Tax 7.03 (80.10)
Provision for Taxation
a. Current Tax -- --
b. Fringe Benefit Tax -- --
c. Deferred Tax Liability -- --
d. Income Tax/FBT of earlier years -- --
Profit / (Loss) for the year carried to
Balance Sheet 7.03 (80.10)
DIVIDEND
In view of the insufficient profit, your Directors express their
inability to recommend any dividend for the year.
BUSINESS OPERATIONS
The operating performance of the Company has shown better results.
Profit Before Tax was Rs.7.03 Lakhs (previous year Loss Rs.80.10 Lakhs)
and there was no income tax liability. Your company has improved its
performance. During the year under review your Company has achieved a
gross income of Rs. 1493.57 Lakhs as against Rs. 1273.90 Lakhs in the
previous year (increase of 17.24%).
Patient Care and Patient Welfare Services have resulted in improvement
in patient satisfaction levels. Your Company continues renovation
activities, upgradation of medical and engineering equipments to suit
the present needs.
Your management believes that the strengthening of existing facilities
and addition of new facilities and services with restructuring of
tariff keeping always the affordability factor in mind will boost the
performance to further heights.
DIRECTORS
The term of Mr.A.N. Radhakrishnan expired on 28.04.2012 and he was
appointed as the Chairman and Managing Director of the Company with
effect from 29.04.2012 to 28.04.2015 for a period of three years
without making any salary revision. Ms. Premalatha Kanikannan, Director
is retiring by rotation at this Annual General Meeting and being
eligible offer herself for re-appointment. Mr.T.V. Venkataraman,
Director is also retiring by rotation at this Annual General Meeting
express his desire to retire. The next Director, as per seniority, Dr.
R. Venkataswami, is retiring by rotation at this Annual General Meeting
and being eligible offer himself for re-appointment. The Board placed
on record the valuable and excellent services rendered by Mr.T.V.
Venkataraman, during his tenure as Director of the Company. The term of
Mr.G.R. Navin Rakesh ended on 28.04.2012 and he was appointed as an
Additional Director of the Company with effect from 29.04.2012 and his
tenure expires at the ensuing Annual General Meeting. The Board placed
on record the valuable services rendered by Mr.G.R. Navin Rakesh during
his tenure as Managing Director. Mr.G.R. Navin Rakesh is proposed to be
appointed as Director of the company in the ensuing Annual General
Meeting. The Company had received a notice from a member proposing the
appointment of Mr.G.R. Navin Rakesh as Director of the Company. The
Board met 5 times on 14.05.2011; 12.08.2011; 21.09.2011;
14.11.2011 and 11.02.2012.
AUDIT COMMITTEE
The Company has constituted Audit Committee and the following are the
members:
Mr. T.V. Venkataraman - Chairman, Mr. A.N. Radhakrishnan, Dr. S.
Kameswaran and Dr. R. Venkataswami as Members. The Committee met 4
times on 14.05.2011, 12.08.2011, 14.11.2011 and 11.02.2012.
DUES TO SSI
During the year under review, there are no outstanding dues amounting
to or exceeding Rs. 1,00,000/- to any Small Scale Industrial Units by
the Company except the following.
1. M/S. Ganesh Pharmaceuticals - Rs.6,27,337/- ãt 2. M/S. Shree
Health Care India-Rs. 1,92,114/-. DIRECTORS' RESPONSIBILITY STATEMENT
As required under the Companies Act, 1956, your Directors wish to
state:
(a) That in the preparation of the annual accounts, the applicable
accounting standards have been followed and that there is no material
deviation therefrom.
(b) Reasonable and prudent accounting policies have been applied in the
preparation of the financial statements, that they have been
consistently applied and that reasonable prudent judgment and estimates
have been made in respect of items not concluded by the year end, so as
to give a true and fair view of the state of affairs of the Company as
at 31 st March, 2012 and of the Profit for the year ended on that date.
(c) Proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies
Act, 1956 for safeguarding the assets of the Company and for preventing
and detecting fraud and other irregularities.
(d) The financial statements have been prepared on a going concern
basis.
PUBLIC DEPOSITS
Your Company has not accepted deposits during the year and there are no
public deposits fallen due for payment and claimed but not paid as on
31st March, 2012. The total amount of deposit outstanding as at 31 st
March, 2012 was Nil.
HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION
Your Company has substantially complied with all applicable
Environmental Laws and Labour Laws. PERSONNEL
A statement concerning employees as required by Section 217(2A) of the
Companies Act, 1956 is attached to this report.
AUDITORS
M/s. Varma and Varma, Chartered Accountants, Chennai-600 020, the
auditors of the Company retire at the ensuing Annual General Meeting
and are eligible for reappointment.
EXPLANATION TO AUDITORS' COMMENTS
Reply to qualification given by the auditors in the Auditors' Report:
Auditors' Qualification: Para 17 of the Annexure to the Auditors'
Report:
According to the information and explanations given to us, and an
overall examination of the Balance Sheet of the company, in our opinion
short term funds have not been used for long term purposes except to
the extent of Rs.4,83,24,026/-.
Management's reply:
Due to non-availability of sufficient other funds to meet the urgent
requirements the company has used the long term funds for long term
purpose and short terms funds for long term purpose. The company is
planning to rectify it at the earliest possible period.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Particulars required to be disclosed under the Companies (Disclosures
of Particulars in the Report of the Board of Directors) Rules, 1988 are
annexed hereto and the same form'; part of this Report. (Annexure -1)
REPORT ON CORPORATE GOVERNANCE
Your Company continues to strive towards highest standards of Corporate
Governance. The report of Board of Directors on Corporate Governance is
given in separate section titled "Report on Corporate Governance"
which forms part of this Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed review of operations, performance and future outlook of the
Company is given separately under the head "Management Discussion and
Analysis" and forms part of this report.
ACKNOWLEDGEMENTS
We are thankful to our Bankers for the cooperation and assistance
extended by them. The Board places on record their thanks to the
shareholders and the patient public for the confidence reposed by them
in the Company and their appreciation for the services and untiring
efforts of the Doctors and Employees at all levels, which has helped
the Company to run its affairs smoothly.
ON BEHALF OF THE BOARD
Place: Chennai A.N.RADHAKRISHNAN
Date : 13.08.2012 CHAIRMAN a MANAGING DIRECTOR
Mar 31, 2010
The Directors have pleasure in presenting their Report and the Audited
Accounts of the Company for the year ended 31st March, 2010.
PERFORMANCE ATA GLANCE: (Rs. in Lakhs)
Particulars Year ended year ended
31.03.2010 31.03.2009
Gross Income 833.57 259.26
Loss Before Depreciation,
Tax & Financial Expenses 82.49 207.66
Financial Expenses 118.48 94.35
Depreciation 58.31 54.49
Loss before Tax and
Exceptionalltems 259.28 356.50
Add: Exceptional ltem(Refer
Note No.9 in Schedule P) 85.80 -
Loss Before Tax 545.08 356.50
Provision for Taxation
a. Current Tax
b. Fringe Benefit Tax -- 0.75
c. Deferred Tax Liability (24.99) (45.62)
d. IncomeTax/FBTof earlieryears 0.86 2.92
Loss for the year carried to
Balance Sheet 520.95 314.55
DIVIDEND
In view of the unavailability of the profit, your Directors express
their inability to recommend any dividend for the year.
BUSINESS OPERATIONS
During the year under review your Company has achieved a gross income
of Rs.833.57 Lakhs as against Rs.259.26 Lakhs in the previous year and
suffered a loss of Rs.520.95 Lakhs as against the loss of Rs.314.55
Lakhs during the previous year.
The new management has taken a number of steps to improve the
performance of the Company. The number of cases treated (both
inpatients and outpatients) has increased considerably. New experienced
doctors were inducted and it is yielding good results. New Doctors in
the fields of Nephrology, Ortho, Renal Transplant, Master Health Check
up, Blood Storage facility were inducted. The Hospital Tariff was
increased marginally which has improved the income level to certain
extent. Major repairs and renewals to the hospital buildings to
face-lift the entire environment and repairs and renewals to the
hospital equipments, purchase of latest bio-medical equipments to
replace the old machines are the causes for the high expenditure.
Your management felt the urgent need to strengthen the marketing and
sales. To achieve this, your management has initiated new marketing
techniques based on the current trends which is yielding positive
signs.
The management has initiated various steps to bring into operation the
total capacity of 80 beds. At present on an average of 70-80% of the
beds are occupied. It is expected that the full capacity will be
utilized in the coming periods. Further, the management has taken
various steps to bring into fold number of Third Party Administrators
to attract more patients and this has resulted in positive results in
earning revenue. New lines of treatment which were introduced to
improve the overall performance have yielded good results.
EXCEPTIONAL ITEM
During the year the company has entered into a compromise settlement
with a former Director and her relative as per which both the parties
to the agreement have agreed to withdraw all the cases/claim including
those which were pending before various judicial forums. As per the
agreement, the company has agreed to pay a sum of Rs.100 Lakhs to the
said parties in full and final settlement of the various claims made by
them in the previous years against the company. Pursuant to the above,
the company has written off a sum of Rs.185 Lakhs due from the above
parties in the Accounts of the year.
FUTUREOUTLOOK
There is continuous growth in the Health and Healthcare Sectors. It
grows with the growth of the population. By inducting experienced
consultant doctors in various fields and strengthening of existing
facilities it is expected that the performance of the hospital will
improve substantially. The management is focusing its attention to
further strengthen its infrastructure and other facilities. Much scope
is expected in the overall performance and revenue generation.
OPPORTUNITES AND THREATS
Opportunities are plenty due to increasing population, Governmental
Health Insurance Schemes and the emergence of India as a medical
tourism destination. Sophisticated equipments, links to other medical
centers and the ability to treat a complex range of ailments are
providing plenty of opportunities for the growth of the industry. The
need for speciality hospitals by the people is gradually increasing.
Threat of stiff competition by the hospitals situated adjacent to your
hospital is the cause for decrease in the margins. Strict enforcement
of reducing the operational cost is expected to overcome this threat.
RISKS AND CONCERNS
Non availability of super speciality medical consultants will lead to
slow growth.
With the advantages of an excellent location supported by the existing
senior consultants, your company is confident of continuing to grow.
The inadequate focus on continued academic and research particularly in
the field which is witnessing rapid strides in diagnostic technologies,
new molecules for varied ailments, sub-specialisation needs and better
knowledge sharing methodologies are the areas of concern for the
industry.
CORPORATE GOVERNANCE
The Company is observing the Corporate Governance and a separate report
on Corporate Governance forms part of this Annual Report. The Company
has appointed Independent Directors to fulfill the requirements of
Corporate Governance.
DIRECTORS
During the year Messers T.V.Venkataraman and Dr. Venkatawami are
retiring by rotation at this Annual General Meeting and being eligible
offer themselves for re-appointment. The Board met 6 times on
27.04.2009, 27.07.2009, 29.08.2009, 29.09.2009, 28.10.2009 and
29.01.2010.
AUDIT COMMITTEE
The Company has constituted Audit Committee and the following are the
members:
Mr.T.V. Venkataraman-Chairman, Mr.A.N.Radhakrishnan, Dr.S.Kameswaran
and Dr. R.Venkataswami as Members. The Committee met 5 times on
27.04.2009, 27.07.2009, 29.08.2009, 28.10.2009 and 29.01.2010.
DUES TO SSI
During the year under review, there are no outstanding dues amounting
to or exceeding Rs. 1,00,000/- to any Small Scale Industrial Units by
the Company.
DIRECTORS RESPONSIBILITY STATEMENT
As required under the Companies Act, 1956, your Directors wish to
state:
(a) That in the preparation of the annual accounts, the applicable
accounting standards have been followed and that there is no material
deviation therefrom.
(b) Reasonable and prudent accounting policies have been applied in the
preparation of the financial statements, that they have been
consistently applied and that reasonable prudent judgment and estimates
have been made in respect of items not concluded by the year end, so as
to give a true and fair view of the state of affairs of the Company as
at 31 st March, 2010 and of the Loss for the year ended on that date.
(c) Proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies
Act, 1956 for safeguarding the assets of the Company and for preventing
and detecting fraud and other irregularities.
(d) The financial statements have been prepared on a going concern
basis. PUBLIC DEPOSITS
Your Company has not accepted or renewed deposits during the year and
there are no public deposits fallen due for payment and claimed but not
paid as on 31st March, 2010. The total amount of deposit outstanding as
at 31 st March, 2010 was Rs. 120.35 lakhs..
HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION
Your Company has substantially complied with all applicable
Environmental Laws and Labour Laws. PERSONNEL
A statement concerning employees as required by Section 217(2A) of the
Companies Act, 1956 is attached to this report.
AUDITORS
M/s.VarmaandVarma, Chartered Accountants, Chennai-600020, the auditors
of the Company retire at the ensuing Annual General Meeting and are
eligible for reappointment.
EXPLANATION TO AUDITORS COMMENTS
Reply to qualification given by the auditors in the Auditors Report:
Auditors Qualification: Para 4(a) of the Auditors Report:
"We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit expect as stated in Note No. 1b, Balances of Loans and Advances,
Sundry Debtors, Creditors and some of the Bank Balances are subject to
confirmation.
Managements Reply: The Management is in the process of obtaining
confirmation of balances.
Auditors Qualification: Para 4 of the Annexure to the Auditors
Report:
In our opinion and according to the information and explanations given
to us, the internal control procedures for purchase of pharmacy and
other consumables and fixed assets and for sale of goods and services
requires to be strengthened.
Managements Reply: The Internal Control Procedure is being
strengthened wherever required.
Auditors Qualification: Para 9(a) of the Annexure to the Auditors
Report:
There has been delays in depositing undisputed statutory dues including
Provident Fund,
Income-Tax and Property Tax with the appropriate authorities during the
year.
Managements Reply: Due to funds crunch there were some delays.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Particulars required to be disclosed under the Companies (Disclosures
of Particulars in the Report of the Board of Directors) Rules, 1988 are
annexed hereto and the same forms part of this Report. (Annexure-1)
ACKNOWLEDGEMENTS
We are thankful to our Bankers for the cooperation and assistance
extended by them. The Board places on record their thanks to the
shareholders and the patient public for the confidence reposed by them
in the Company and their appreciation for the services and untiring
efforts of the Doctors and Employees at all levels, which has helped
the Company to run its affairs smoothly.
ON BEHALF OF THE BOARD
Place: Chennai
Date: 25.08.2010 A.N. RADHAKRISHNAN
CHAIRMAN
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