Royalcare Super Speciality Hospitals Shares

Annual Report Summary

Royalcare Super Speciality Hospital Limited - 11th Annual Report Summary:

Overview:

The document is the 11th Annual Report for 2022-23 of Royalcare Super Speciality Hospital Limited, a company with CIN: U85100TZ2012PLC018984, located in Coimbatore, Tamilnadu. The report includes the Chairman's message, notices to shareholders, director's report, auditor's reports, financial statements, and other annexures.

Chairman's Message:

The Chairman's message highlights a successful year and emphasizes the hospital's commitment to providing excellent patient care and engaging with the community. Noteworthy achievements include introducing CMR Robotics Surgery for the first time in Coimbatore (costing 6.72 crores) and the installation of 4K Laparoscopic Surgery equipment. They also opened a new state-of-the-art IVF lab sprawling over 7000 square feet.

Notice to Shareholders:

The notice announces the 11th Annual General Meeting (AGM) to be held on September 23, 2023, at the hospital's registered office. The agenda includes adopting audited financial statements for the year ended March 31, 2023, appointing directors who retire by rotation (Mr. K.M.Subramanian, Dr.S.Kalyanakumari, and Dr.S.Paulvannan), modifying the tenure of M/s. JSR AND CO., Chartered Accountants as Statutory Auditors and re-appointing Mr. K. Muthusamy as an Independent Director. Special business also encompasses approval for material related-party transactions. Further resolutions deal with increasing the authorized share capital of the company from ₹ 200,00,00,000 to ₹ 250,00,00,000 and altering the capital clause in the Memorandum of Association. E-voting facilities are available to members.

Director's Report:

Key highlights from the Director's Report:

• The company's turnover was ₹ 31064.95 Lakhs for the year, compared to ₹ 30537.33 Lakhs in the previous year. Profit was ₹ 1567.51 lakhs, down from ₹ 2123.19 lakhs the previous year.
• Directors do not recommend any dividend due to inadequate accumulated profit.
• Cash and cash equivalents stood at ₹ 504.38 Lakhs.
• The company did not accept any public deposits.
• The company has an Internal Control System in place.
• No significant orders were passed by regulators or courts that would impact the company's operations.
• There were no qualifications, reservations, or adverse remarks made by the auditors or the practicing company secretary.
• There have been no frauds reported by the auditors pursuant to Section 143 (12) of the Companies Act, 2013.
• Six Board meetings were held during the year.
• Dr.S.Paulvannan, Mr. K.M.Subramanian and Dr.S.Kalyanakumari are retiring by rotation.
• The authorized share capital has increased from ₹ 175.00 Crores to ₹ 200 Crores during the year.
• Infomerics Valuation and Rating Private Ltd (IVR) has affirmed the Credit Rating of your company's Long term bank facilities ‘IVR BBB' -Revised.
• The hospital has obtained NABH Certification.
• The company contributed ₹ 5.42 Lakhs, being 2% of the last three years' average net profit, towards CSR activities.
• Introduced CMR Robotics surgery equipment in Coimbatore for the first time at a cost of ₹ 672.67 Lakhs.
• Investment in Medical Equipment amounts to ₹ 917.64 Lakhs.
• Total Foreign Exchange used is Nil during the year. Total Foreign Exchange earned is ₹ 204.73 lakhs.
• The company provided a Corporate Guarantee an amount of ₹ 35.69 Crores to HDFC Bank Ltd on behalf of M/s. RMC Medical Services Private Ltd
• The company has set up vigil mechanism for Directors and Employees to report their genuine concerns. No complaints or concerns were received by the Chairman of the Audit Committee under the Vigil Mechanism.

Explanatory Statement:

The statement provides further details on resolutions to be passed at the AGM. It clarifies details about the re-appointment of Mr. K. Muthusamy as an Independent Director and the appointment of CMA G. Sivagurunathan as the Cost Auditor. It also discusses related party transactions with M/s. Sabari Construction Technologies Private Ltd and M/s. RMC Medical Services Private Ltd and increasing the authorized share capital.

Financial Statements Analysis:

• Balance Sheet: As of March 31, 2023, the company's total equity and liabilities were ₹ 42,066.25 Lakhs, and the assets were also ₹ 42,066.25 Lakhs. The authorized capital stood at ₹ 16,437.69 Lakhs
• Statement of Profit & Loss: For the year ended March 31, 2023, the total income was ₹ 31,064.95 Lakhs, and the total expenses were ₹ 29,508.68 Lakhs, resulting in a profit before tax of ₹ 1,556.27 Lakhs and a profit for the year of ₹ 1,567.51 Lakhs.
• Cash Flow Statement: Net cash generated from operating activities was ₹ 5896.24 Lakhs, used in investing activities amounted to ₹ (2590.06) Lakhs and used in financing activities was ₹ (3632.83) Lakhs

Auditor's Report:

The Independent Auditor's Report confirms that the financial statements give a true and fair view of the company's affairs. Key audit matters are addressed within the context of the overall audit. The report also includes annexures detailing compliance with the Companies (Auditor's Report) Order, 2020, and provides a report on internal financial controls over financial reporting. There were no pending litigations.

Key Officers and Directors:

The report lists the Board of Directors including Dr. K. Madeswaran (Chairman Cum Managing Director), Dr. K. Chockalingam, and several other directors including independent directors and the key managerial personnel like Sri. T. Balachander (Director Finance Cum CFO), and CS K. Rangasamy (Company Secretary).

Corporate Social Responsibility:

During the year 2022-23 in pursuance of the recommendations of the CSR Committee, the Company had contributed 5.42 Lakhs being 2% of the last three years' average net profit of the Company towards implementing the CSR activities.