FHL Annual Report 2020-21
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ANNUAL REPORT 2020-2021 COMPANY INFORMATION CONTENTS BOARD OF DIRECTORS CORPORATE OVERVIEW CLINICAL EXCELLENCE Chairman 02 Introduction 66 Dedicated to Serve Responsibly Ravi Rajagopal (Independent Director) 04 Vision and Mission AWARDS AND ACCOLADES 06 Values Vice-Chairman 74 Inspired By Recognitions Shirish Moreshwar Apte (Non-Executive Director) 08 Key Performance Highlights 2020-21 HUMAN RESOURCES Managing Director and CEO BOARD OF DIRECTORS 78 Inspiring Trust Through the People Power Dr. Ashutosh Raghuvanshi 10 Fortis Healthcare Limited 12 SRL Limited Non-Executive Directors STATUTORY REPORTS Dilip Kadambi MANAGEMENT COMMUNIQUE 84 Director’s Report Dr. Farid Bin Mohamed Sani 136 Report on Corporate Governance 14 From the Chairman’s Desk Heng Joo Joe Sim 164 Business Responsibility Report Joerg Ayrle 18 MD & CEO’s Message (FHL) 175 Management Discussion and Analysis Report Dr. Kelvin Loh Chi-Keon 22 CEO’s Message (SRL) Takeshi Saito FINANCIAL STATEMENTS COVID-19 AND OUR RESPONSE Independent Directors 26 A Clear and Compelling Purpose 191 Standalone Financials Indrajit Banerjee 283 Consolidated Financials Shailaja Chandra FORTIS HEALTHCARE LIMITED Suvalaxmi Chakraborty 32 Inspiring Trust Across the Nation Chief Financial Officer OUR TRANSFORMATION Vivek Kumar Goyal 38 The New Journey Company Secretary and Compliance Officer FINANCIAL HIGHLIGHTS Sumit Goel 40 Performance Snapshot Auditors CLINICAL FOCUS B S R & Co. LLP Chartered Accountants 44 New Clinical Offerings Fortis Healthcare Limited 46 Speciality Mix CIN: L85110PB1996PLC045933 INVESTOR INFORMATION Registered Office: OPERATIONAL HIGHLIGHTS BSE code: 532843 Fortis Hospital, Sector 62 50 Business Review Summary NSE symbol: FORTIS Phase – VIII, Mohali, Punjab - 160062 Tel.: +91-172-5096001 DIGITALISATION AND INNOVATION AGM date: July 30, 2021 Fax: +91-172-5096221 56 Inspiring Trust with State-of-the-art AGM mode: Video Conferencing (“VC”) / Website: www.fortishealthcare.com Technological Innovations Other AudioVisual Means (“OAVM”) Registrar and Transfer Agent KFin Technologies Private Limited *FHL: Fortis Healthcare Ltd | *SRL: SRL Limited CORPORATE OVERVIEW The year 2020 has been a challenging year for the entire world. Little did we know how the year would unfold. The year has created significant changes in how we all live, how we all work and most importantly it has given a profound importance to the word ‘healthcare’. The prevailing scenario did call for changes, but something that did not change was our passion to deliver the best and the commitment to put our patients’ interests first. The year gone by tested the adaptability and resilience of our people. It has enabled the organisation to continue caring for its patients with compassion and in a safe environment. Our this year’s annual report highlights our corporate values and humble efforts that led to an increasing maturity of our engagement with our stakeholders and community. It is a reflection of how we continued to inspire trust through quality and care. 2 FORTIS HEALTHCARE LIMITED ANNUAL REPORT 2020-21 3 CORPORATE OVERVIEW VISION To create a world-class integrated healthcare delivery system in India, entailing the finest medical skills combined with compassionate patient care. MISSION To be a globally respected healthcare organisation known for Clinical Excellence and Distinctive Patient Care. 4 FORTIS HEALTHCARE LIMITED ANNUAL REPORT 2020-21 5 CORPORATE OVERVIEW PATIENT CENTRICITY INNOVATION VALUES TEAMWORK INTEGRITY OWNERSHIP 6 FORTIS HEALTHCARE LIMITED ANNUAL REPORT 2020-21 7 CORPORATE OVERVIEW KEY PERFORMANCE HIGHLIGHTS 2020-21* ` 4,077 Crores 55% Total Income Overall hospital occupancy ` 451 Crores ` 1.58 Crores EBITDA Hospital business ARPOB ` 42 Crores 23.5 Million PBT (before exceptional items) Tests performed by SRL 1.04X^ 2.5 Million Net debt to EBITDA COVID-19 tests performed by SRL *On a consolidated basis ^Annualised for Q4FY21 PBT: Profit Before Tax EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortisation 8 FORTIS HEALTHCARE LIMITED ANNUAL REPORT 2020-21 9 BOARD OF DIRECTORS FORTIS HEALTHCARE LIMITED Ravi Rajagopal Shirish Moreshwar Apte Dr. Ashutosh Raghuvanshi Dilip Kadambi Dr. Farid Bin Mohamed Sani Heng Joo Joe Sim Independent Director, Chairman Non-Executive Director, Vice-Chairman Managing Director and CEO Non-Executive Director Non-Executive Director Non-Executive Director Indrajit Banerjee Joerg Ayrle Dr. Kelvin Loh Chi-Keon Shailaja Chandra Suvalaxmi Chakraborty Takeshi Saito Independent Director Non-Executive Director Non-Executive Director Independent Director Independent Director Non-Executive Director 10 FORTIS HEALTHCARE LIMITED ANNUAL REPORT 2020-21 11 BOARD OF DIRECTORS SRL LIMITED Ravi Rajagopal Dr. Ashutosh Raghuvanshi Dilip Kadambi Heng Joo Joe Sim Independent Director, Chairman Non-Executive Director Non-Executive Director Alternate Director to Dr. Kelvin Loh Chi-Keon Dr. Kelvin Loh Chi-Keon Praneet Singh Srinivas Chidambaram Suvalaxmi Chakraborty Non-Executive Director Non-Executive Director Non-Executive Director Independent Director 12 FORTIS HEALTHCARE LIMITED ANNUAL REPORT 2020-21 13 MANAGEMENT COMMUNIQUE FROM THE CHAIRMAN’S DESK FY 20-21 has truly been a challenging year. used the crisis to good measure to improve clinical Multiple preparation efforts at several levels from practices and governance protocols ensuring March 2020 ensured that all our units across the high-quality outcomes. All these helped us bring At the peak of this country could effectively confront the surge of the business to near normal levels by end of FY21. pandemic, the Company infections. Our operations were impacted severely Keeping in mind the needs of both COVID-19 and during the countrywide lockdown. Postponement non-COVID-19 patients, there have been various reserved 1,600 beds of non-COVID-19 services and elective surgeries new initiatives in the past year. To mention a few, for over three months resulted in reduced activity. Fortis Hospital, Vadapalani, a 250-bedded (with 35 for COVID-19 patients. The modest recovery of the overall business from operational beds currently and the rest scheduled Currently, 23 Fortis September onwards meant we saw revenues to open in FY-22) multispeciality hospital was decline when compared with the previous financial opened in October 2020 as the second Fortis hospitals are also year. However, the management’s focus, with full facility in Chennai. An endoscopy unit was proactively partnering support from the Board, on productivity and cost inaugurated at Fortis Hospital, Bannerghatta efficiency measures, improving cash generation Road, Bengaluru, along with Karnataka’s first with the Government and liquidity, made considerable difference. We state-of-the-art advanced Biplane Cath Lab to in the vaccination drive across the country. Ravi Rajagopal Dear Shareholders, At the outset, I would like to express my deepest gratitude to all our clinicians, healthcare and administrative members of the Fortis fraternity for their tireless efforts and unceasing commitment in treating patients infected by the novel coronavirus. Working collaboratively with the Central and State Governments, Fortis ensured full compliance with all institutional guidelines, prioritising, and maintaining patient safety, as protocols for management of patient care and hospital operations evolved continuously throughout the past year. In the last one year, over 33,000 COVID-19 patients were successfully treated and discharged, over 1.18 lakh patients were treated at the flu clinics/OPDs, and approx 2.5 million COVID-19 molecular and serology tests were conducted by our partner, SRL Diagnostics. At the peak of this pandemic, the Company reserved 1,600 beds (40% of beds available) for COVID-19 patients. Currently, 23 Fortis hospitals are closely partnering with the Government in the vaccination drive across the country. The remarkable leadership, vision and foresight of our Medical Council (our governance body overseeing clinical practices), has ensured that the best-in-class protocols are in place, leading to desired outcomes. 14 FORTIS HEALTHCARE LIMITED ANNUAL REPORT 2020-21 15 MANAGEMENT COMMUNIQUE provide safer care for neurovascular disorders. ensure the safety of those conducting the tests. The Board and the management re-prioritized some clinicians and enable them to collaborate on a The Fortis National Mental Health Programme In the last quarter, there was a massive spurt in of the key strategic areas it had earlier defined for the real-time basis. launched Sukoon Health, a dedicated in-patient the number of people signing up on the SRL coming year. For the year 2021-22, our focus would be Whilst COVID-19 2.0 has brought in a huge surge psychiatric hospital, under the Department of mobile app. Today, roughly 3.3 million patients on revenue growth initiatives, including building our of infections, the new wave is being dealt with Mental Health and Behavioural Sciences. Fortis have an SRL Diagnostics mobile app. franchise in the catchment areas, engaging with key effectively by our hospitals. The resoluteness Anandapur, Kolkata, launched the city’s only corporate clients, strengthening community connect With regard to the open offer from IHH Berhard, demonstrated by our team of doctors, nurses, Dual Source Dual Energy Somatom Drive CT and leveraging our digital platforms. We will strengthen the matter is sub-judice due to a Supreme Court paramedics and administrative staff makes scanner, making it a fast and clinically superior key specialties such as cardiology, neurology,