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Lanka-Hospital-AR.Pdf Content Our vision 02 Our mission 03 Corporate philosophy 04 OUR VISION Financial highlights 05 Chairman’s statement 08 Chief executive officer’s review 10 To be the foremost and Medical director’s statement 15 Board of directors 17 Strategic committee 23 preferred Private Healthcare Management team 24 Business review 28 facility in the Country, which Corporate governance 38 Remuneration committee report 44 will serve the Nation and her Corporate Social Responsibility 45 Annual report of the directors 49 Directors’ responsibility for financial reporting 51 People to build a healthier Audit committee report 52 Independent auditors’ report 53 community and to be Balance sheet 54 Income statement 55 Statement of changes in equity 56 recognised as one of the best Cash flow statement 57 Notes to the financial statements 58 in the region. Shareholder & investor information 71 Notice of meeting 73 Notes 74 Form of proxy 75 OUR MISSION To maintain exceptional and compassionate quality while offering cost effective healthcare solutions of international standards. Corporate Philosophy OUR PROMISE We believe that every person has the right to be treated with the utmost respect and consideration. Therefore at The Lanka Hospitals Corporation PLC, we care about our patients, we care about their families, who are anxious and concerned. We care about our colleagues and how we as a team provide the best care to our patients. Because we care, we will be sincere, compassionate and sensitive. To make a difference in lives we touch! Page | 5 The Lanka Hospitals Corporation PLC | Annual Report 2010 Financial Highlights Five Year Summary 2010 2009 (9 Months)* 2008/09 2007/08 2006/07 Rs. Rs. Rs. Rs. Rs. Turnover 3,156,022,682 1,777,370,507 2,469,606,111 1,924,684,272 1,811,897,031 Profit/(Loss) before interest & tax 277,298,829 24,692,113 108,877,414 (87,313,564) 33,701,930 Profit/(Loss) after tax 289,143,723 7,243,970 41,126,810 (286,357,381) (173,493,266) Total Assets 3,655,399,477 2,731,414,156 2,737,686,192 2,954,057,223 2,949,618,335 Net Assets 2,730,002,259 2,007,591,301 2,000,347,331 1,954,425,163 1,243,142,649 Earnings/(Deficit) Per Share*** 1.29 0.04 0.18 (1.53) (1.00) Annual revenue growth %** 33.18 (28.03) 28.31 6.22 (1.09) Net Assets per share 12.20 8.97 8.94 8.74 7.94 Net cash flow from operating activities 415,578,722 135,405,161 310,074,763 (48,033,439) 23,742,670 Turnover Profit from Operations Profit after Tax Annual Revenue Growth Net Assets Per Share Net Cash Flow from Operating Activities Rs.’000 Rs.’000 Rs.’000 3,500,000 300000 300,000 % Rs. Rs.’000 40.00 15.00 500,000 3,000,000 220000 200,000 400,000 2,500,000 24.00 12.00 140000 100,000 2,000,000 300,000 8.00 9.00 1,500,000 200,000 60000 0 -8.00 6.00 1,000,000 100,000 -20000 -100,000 500,000 -24.00 3.00 0 0 -100000 -200,000 -40.00 0.00 -100,000 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 * The Company changed its balance sheet date from 31st March to 31st December. ** In arriving annual revenue growth in 2010, revenue for 9 months has been extrapolated for comparison purpose. *** Annualised earnings per share for the period ended 31st December 2009 Clinical Expertise Management Reviews What makes a world-class hospital? Page | 8 Management Reviews Chairman’s Statement Lanka Hospitals in 2010 accelerated its efforts in “journeying towards excellence. Through deliberate and far reaching strategic initiatives, the Company precipitated towards the realisation of Lanka Hospitals’ vision to be the “Best in Asia”... ” As another financial year draws to a close, it gives me great pleasure as your Chairman, to present the Audited Financial Statements and the Annual Report of The Lanka Hospitals PLC for the financial year 2010. In the year under review, our shareholders will be pleased to note that Lanka Hospitals registered commendable growth both financially and operationally, moving with consistency towards its strategic corporate objectives. Page | 9 The Lanka Hospitals Corporation PLC | Annual Report 2010 Lanka Hospitals in 2010 accelerated its efforts in journeying an agent of change, challenging Sri Lanka’s healthcare towards excellence. Through deliberate and far reaching industry to meet the expectations of the international strategic initiatives, the Company precipitated towards the community in service and infrastructure standards. Lanka realisation of Lanka Hospitals’ vision to be the “Best in Asia”. Hospitals seeks to be the benchmark for the entirety of In the past three years, your Company has made headway in Sri Lanka’s medical infrastructure and seeks to convincingly shifting its market position as a “follower” to a “leader”. I can position itself at the pinnacle of healthcare provision. confidently say that in today’s market context, Lanka Moreover, your Company plays a pivotal role in acting as an Hospitals remains not only the leader but also a fierce icon of Sri Lanka’s economic and industrial maturity. challenger to players in the healthcare sector. In light of this, I must take this opportunity to reiterate that In pursuit of its vision to be the best, Lanka Hospitals has the Government of Sri Lanka remains passionate and taken bold and unconventional measures, in effect, committed towards its stake in The Lanka Hospitals revolutionising its product and service offer. Through Corporation PLC. As such, allow me to establish GoSL’s strategic alliances, the Company has created streamlined interest in your Company as strategic and long-term. Lanka avenues for knowledge transfer and sharing of best practices Hospitals remains critical to the GoSL for many reasons; with some of the most recognised global healthcare primarily its ability to provide world-class medical care whilst providers. However, despite the Company’s global outlook, it balancing the equation of affordability; and the role it plays in remains very much an entity with a concerted focus on uplifting the general standard of living of our citizens. augmenting the overall standard of living of Sri Lankans from all walks of life. In conclusion, allow me, to reiterate the assurance of commitment that I extended in previous years. As is evident Since end 2008, Lanka Hospitals has strived with great vigour from the progress we have made so far, our strength of towards the delivery of key promises. I am pleased to note commitment and dedication towards your Company is that in 2010, your Company made significant headway in this unwavering. I, as your Chairman commit my full capacity regard. Lanka Hospitals as a healthcare provider not only towards garnering international recognition and acceptance offers quality medical care, but does so within the context of for Lanka Hospitals as a centre of excellence in healthcare. affordability and value addition. The continued pursuance of This alone, I believe, is the key to the long-term sustainability a multi-pronged strategy aimed at realising four core pillars; of your Company. best medical care, best customer care, process enhancements across functions, and affordability has Sincere appreciations are due to my Board of Directors, the accelerated its journey towards becoming a hospital and a employees and of course to you our shareholders for being corporate that is truly world-class. Price restructuring in the the pillar of strength and support that has sustained the past two years has enabled the Company to effectively cater challenging journey so far. to the healthcare needs of Sri Lankans across a spectrum of demographics. Performance-wise, the delivery of these promises has impacted the bottom line positively, driving profitability upwards as a direct outcome of enhanced patronage. Gotabaya Rajapaksa As I have noted repeatedly in my statements in previous Chairman years, Lanka Hospitals plays a key role in positioning Sri Lanka as a competitive nation on par with international 12th April 2011 standards. Your Company has been in the forefront, acting as Page | 10 Management Reviews Chief Executive Officer’s Review The steps taken in 2010 towards the improvement “ of operational efficiencies will, I believe, stand in good stead towards the achievement of operational and service excellence – a key goal by end 2011. Given the operational changes, we at Lanka Hospitals are confident that we are more capable than ever before to market the services of Lanka Hospitals to the global community... ” The financial year 2010 was in many aspects a commendable year for Lanka Hospitals. It was a year in which strategic initiatives undertaken in the previous financial years bore fruit with both tangible and intangible returns. The perceptive strategic vision of our Chairman coupled with the able direction of the Board of Directors set the stage in 2009 for the strategic turnaround of Lanka Hospitals. A consistent and progressive management approach that has been focused on step-wise achievement of strategic objectives has, I believe, been the crux of our achievements this financial year. The cumulative effect of sound management practice, good governance and the ability of the Company to garner economies of scale have notched Lanka Hospital into the realms of a world-class health care provider. Page | 11 The Lanka Hospitals Corporation PLC | Annual Report 2010 Industry composition and changes be the best centre of medical care in Asia. Complementing Operational Overview The healthcare industry remained highly competitive in 2010. this strategy, in 2010, Lanka Hospitals accelerated its efforts Lanka Hospitals in the period under review, attained With a market structure that demonstrates oligopolistic towards attracting the best medical expertise to the Hospital.
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