Royalcare Super Speciality Hospitals Shares

Annual Report Summary

Royalcare Super Speciality Hospital Limited 12th Annual Report Summary (2023-2024)

Overview: The document is the 12th Annual Report for Royalcare Super Speciality Hospital Limited for the financial year 2023-2024, encompassing the Chairman’s message, notices to shareholders, director’s report, audit reports (secretarial and independent auditor), and financial statements.

Chairman's Message: The hospital is striving to become the leading private hospital in western Tamilnadu. The hospital is expanding with 104 individual rooms in a new block, with further expansion expected to add 373 rooms, creating a 1 lakh square foot modern healthcare facility. The hospital is investing over ₹1 crore in new HIMS software for paperless operations. The hospital has added two 2-wheeler ambulances and four fully equipped regular ambulances. The hospital has purchased Biofire and maldi Tof equipment for the Microbiology department to diagnose infections 10 times faster. The hospital has started a MEM course in Emergency Medicine with 4 seats every year from 2024. The hospital invested ₹3 crores in flow cytometry and a bone marrow transplant unit.

Notice to Shareholders: The 12th Annual General Meeting will be held on September 28, 2024, in Coimbatore to transact business including adopting the audited financial statements, appointing directors, and re-appointing the cost auditor, CMA. G. Sivagurunathan, for the financial year 2024-25 with a remuneration of ₹1,00,000 plus GST and out-of-pocket expenses. Approval for material related party transactions with M/s. Sabari Constructions Technologies Private Ltd for hospital expansion (₹180 Crores) and M/s. RMC Medical Services Private Ltd for purchase of medicines/surgical items (₹85 Crores) will be sought. Remote e-voting will be available from September 25 to September 27, 2024, and CS. R. Mahalingam has been appointed as the scrutinizer.

Directors' Report: The directors are presenting their 12th annual report with audited accounts for the year ended March 31, 2024. The company reported a turnover of ₹33792.64 Lakhs compared to the previous year's ₹31064.95 Lakhs and earned a profit of ₹2448.15 lakhs against a profit of ₹1567.51 lakhs the previous year. No dividend is recommended due to inadequate accumulated profit. Cash and Cash equivalents as of March 31, 2024, are ₹2724.94 Lakhs. The company did not accept any deposits from the public during the year. The company has an internal control system and there were no significant orders passed by regulators/courts. There was no change in the nature of the business and there were no material changes affecting the financial position of the company. The company complied with secretarial standards, received declarations of independence from independent directors, and doesn't have a Risk Management Policy. The authorized share capital increased from ₹200.00 Crores to ₹250 Crores. Paid up Share capital increased from ₹164,37,69,430 to ₹171,01,77,680. The company has “IVR BBB –“ credit rating for long-term bank facilities. The hospital has obtained NABH certification.

Committees: The Audit Committee consists of Sri. K. Muthusamy (Chairman), Dr. S.P. Thiruppathy, Sri. M.P. Prabhu, and Sri. K.K. Chandrasekar. The Nomination and Remuneration Committee consists of Sri. K. Muthusamy (Chairman), Dr. S.P. Thiruppathy, Sri. K.M. Subramanian, and Dr. P. Selvaraj (upto 16.08.2024), with Sri. T. Balachander replacing Dr. Selvaraj. The Corporate Social Responsibility Committee consists of Sri. K. Muthusamy (Chairman), Sri. K.P. Alagesan, and Sri. T. Balachander. The company contributed ₹27.38 Lakhs towards CSR activities.

Key Managerial Personnel: Dr. K. Madeswaran, Sri.T. Balachander, and CS. K. Rangasamy. The directors retiring by rotation include Mr. K.K. Chandrasekar, Mr. M.P. Prabhu, and Dr. P. Chokkalingam. Dr. P. Selvaraj resigned from the board effective August 16, 2024. M/s. JSR AND CO, Chartered Accountants, Tirupur, is the statutory auditor for five years (FY 2022-23 to 2026-27). CA.P. Vishnu Adithan is the Internal Auditor. CMA.G. Sivagurunathan, is the Cost Auditor. CS.R. Mahalingam is the Secretarial Auditor.

Other Points: The company has taken measures to reduce energy consumption and has invested ₹506.23 Lakhs in medical equipment. All transactions with related parties were in the ordinary course of business and on an arm's length basis, approved by the Audit Committee.

Secretarial Audit Report: Royalcare Super Speciality Hospital Limited complied with the statutory provisions and adhered to good corporate practices, with proper Board processes and compliance mechanisms in place.

Independent Auditors' Report: The financial statements give a true and fair view of the company's state of affairs as of March 31, 2024, and its profit and cash flows for the year ended on that date, in conformity with accounting principles generally accepted in India. There are instances of certain dues of Income-Tax, Customs Duty, Sales Tax, Service Tax, Goods and Service Tax, Value Added Tax, Excise Duty and Cess that are under dispute. The company is using an accounting software with a feature of recording audit trail (edit log).