ANNUAL REPORT 2015-16 Contents
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ANNUAL REPORT 2015-16 Contents Corporate Information 02 The Story in Numbers 04 Thyrocare – A Snapshot 06 Board of Directors 12 Chairman's Review 14 `LHYZVM Translating Vision Into Reality 18 Translating Strategies Into Volumes 20 Translating Technologies to Gain Velocity 22 Accelerating Through Brands 24 Nurturing Intellectual Capital 26 Board's Report 27 Corporate Governance Report 49 CEO Certificate on Code of Conduct 58 CEO and CFO Certification 58 Management Discussion & Analysis 59 Financial Statements 81 Standalone Financial Statements 86 Consolidated Financial Statements 119 16th Annual General Meeting Notice 157 Thyrocare Technologies Limited 3H[L:T[:\TH[OP=LS\THUP -VYTLY5VU,_LJ\[P]L+PYLJ[VY;O`YVJHYL;LJOUVSVNPLZ3PTP[LK (December 17, 1960 to February 13, 2016) Your life has been an inspiration to all of us with the passion and focus you demonstrated in every task that you undertook. We remain thankful for your invaluable contribution towards the growth of the Company. While you may not be with us today, your memories shall always remain in our hearts as a cherished treasure. We will continue to move steadfastly towards achieving the higher goals you had set for our Company, your vision and values guiding us all at Thyrocare. 0UMVUKTLTVY` From the entire team of Thyrocare *VYWVYH[L6]LY]PL^ Statutory Reports Financial Statements Corporate Information 9LNPZ[LYLK6MÄJL Thyrocare Technologies Limited D/37-1, TTC Industrial Area, MIDC Turbhe, Navi Mumbai - 400 703. Tel: +91 22 2762 2762 | Fax: +91 22 2768 2409 Website: www.thyrocare.com | E-mail: [email protected] Corporate Identity Number: U85110MH2000PLC123882 *VYWVYH[L6MÄJL Thyrocare Technologies Limited D/37-3, TTC Industrial Area, MIDC Turbhe, Navi Mumbai - 400 703. 9LNPZ[YHY :OHYL;YHUZMLY(NLU[ Link Intime India Private Limited C-13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West) Mumbai - 400 078, Maharashtra, India. Tel: +91 22 6171 5400 | Fax: +91 22 2596 0329 Website: www.linkintime.co.in E-mail: [email protected] )HURLYZ Axis Bank Limited IDBI Bank Limited ICICI Bank Limited Citibank :[H[\[VY`(\KP[VYZ B S R & Co. LLP, Chartered Accountants 5th Floor, Lodha Excelus, Apollo Mills Compound N.M. Joshi Marg, Mahalaxmi, Mumbai - 400 011. Tel.: +91 22 4345 5300 | Fax: +91 22 4345 5399 02 Thyrocare Technologies Limited It has been 20 years since we commenced operations as a healthcare service provider with a vision. (]PZPVU that focussed on providing wellness and preventive diagnostic services to the common man at the most affordable rates; enabled us to disrupt the dynamics of the industry through focus on high volumes, low pricing, franchising concept, use of advanced technologies and speed of delivery; propelled us to become the undisputed leader in the segment; contributed to our exponential growth during these years. However, at Thyrocare, our vision is not just about the destination that we have arrived at. It is about the journey that we made to come here, the path that we took and the challenges we faced and more importantly, it is about our passion to become the world's largest preventive care laboratory that provides world-class quality to the masses. Annual Report 2015-16 03 *VYWVYH[L6]LY]PL^ Statutory Reports Financial Statements The story in numbers Income from EBITDA operations growth growth 30.6% 28.8% Over 2014-15 Over 2014-15 CAGR FY12-16 CAGR FY12-16 PAT Samples growth growth 20.8% 27.5% Over 2014-15 Over 2014-15 CAGR FY12-16 CAGR FY12-16 Total investigations Total assets growth growth 28.6% 41.3% Over 2014-15 Over 2014-15 CAGR FY12-16 CAGR FY12-16 Promoters' Earnings per holding share (`) as on as on March 31, 2016 March 31, 2016 04 Thyrocare Technologies Limited INCOME FROM OPERATIONS (` in Mn) EBIDTA (` in Mn) FY16 FY15 FY14 FY13 FY12 FY16 FY15 FY14 FY13 FY12 PAT (` in Mn) NET WORTH (` in Mn) FY16 FY15 FY14 FY13 FY12 FY16 FY15 FY14 FY13 FY12 SAMPLES PROCESSED (in ‘000) TOTAL INVESTIGATIONS (in ‘000) FY16 FY15 FY14 FY13 FY12 FY16 FY15 FY14 FY13 FY12 Annual Report 2015-16 05 *VYWVYH[L6]LY]PL^ Statutory Reports Financial Statements Thyrocare - a snapshot Thyrocare is a reputed and reliable pan-India diagnostic solutions provider, offering high quality services at affordable prices. Steered by deep domain expertise and well-established competencies, the Company has emerged among India’s fastest growing and leading companies in the healthcare sector. A combination of strong vision, disruptive business ideas, and sharp entrepreneurial skills has spearheaded the success of the Company. The Company positions itself as a front-end laboratory that uses state-of-the-art equipment with a robust back-end IT system to manage its extensive volume of business and provide value- added services to customers. Driven by a team of skilled and dedicated employees, the Company continues to reinforce the trust and belief reposed by its expanding customer base. 06 Thyrocare Technologies Limited 3,.(*@ p Founded in 1996 by the visionary Dr. A Velumani (an ex-scientist at Bhabha Atomic Research Centre) p Currently valued at more than USD 400 million p Private equity investors include Agalia Private Limited, Samara Capital, Norwest Venture Partners and Emerging India Fund p Listed in the National Stock Exchange and Bombay Stock Exchange =0:065 p Thyrocare should serve to 50% of world's population, 50% of their diagnostic needs at 50% of the costs p Thyrocare should be the biggest client for top 20 diagnostic manufacturing companies in the globe 40::065 p Being in the healthcare industry, it is the patient who is both our primary customer and concern p Ensuring that the right value is given at the right time to the right patient is the test we undergo everyday successfully Annual Report 2015-16 07 *VYWVYH[L6]LY]PL^ Statutory Reports Financial Statements 2,@6--,905.: The Company leveraged its experience and expertise in the diagnostic testing industry to develop the brand. It took this initiative a step further by creating various brands to provide a wide range of tests and profiles for testing. These brands include: Services offered +PHNUVZ[PJ;LZ[PUN Metabolic disorders and Thyroid testing Services offered >LSSULZZHUK7YL]LU[P]L*HYL Liver, cholesterol, kidney, thyroid, iron deficiency, testosterone, cardiac markers, pancreas, electrolytes, arthritis, folic acid, toxic elements, diabetic screening, complete hemogram and vitamin deficiency profile Services offered *HUJLYTVUP[VYPUN Full body and Brain scans Services offered >H[LY;LZ[PUN Physical and chemical contaminants, elements, microbiology, pesticides and volatile organic compounds testing (**9,+0;(;065: ISO 9001:2008 NABL (National CAP (College of American Pathologists) Accreditation Board for Testing and Calibration Laboratories) 08 Thyrocare Technologies Limited .,6.9(7/0*:79,(+ Headquartered in Navi Mumbai Six operational Regional Processing Laboratories (RPLs) in New Delhi, Bhopal, Kolkata, Hyderabad, Coimbatore and Bengaluru Note: Map not to scale Thyrocare is driven by the goal to make available affordable diagnostic services a reality for every Indian. As of date, the network includes presence of 1,041 authorised service providers (ASPs) in 566 cities scattered across the country, to cater to the requirements of clients even in remote areas of the country. The Company is continually exploring new formats to further expand its business model. p Headquartered in Navi Mumbai (India) with a state-of-the-art fully automated 200,000 sq. ft. Central Processing Laboratory (CPL) having the most advanced testing equipment p Six operational Regional Processing Laboratories (RPLs) in New Delhi, Bhopal, Kolkata, Hyderabad, Coimbatore and Bengaluru 05-9(:;9<*;<9,(5+;,*/5636.@7(9;5,9: Thyrocare houses some of the most advanced testing and automation equipment, which are either developed in-house with the assistance of third party vendors as per specific requirements or procured from leading international technology suppliers like Siemens, Transasia Bio Medicals and Roche Diagnostics India. Annual Report 2015-16 09 *VYWVYH[L6]LY]PL^ Statutory Reports Financial Statements 1996 2001- 04 p Commenced operations under the name p Received ISO and CRISIL certification Thyrocare Diagnostics Pvt. Ltd. with only p Entered into agreement with Bayer seven tests in its menu Diagnostics (presently Siemens) for instrument supply and launched Thyroid tests by CLIA technology p Undertook various laboratory upgradation that include bi-directional interfacing system, unique barcoding system and procurement of advanced instruments 43 20cr 1997- 2000 (]LYHNL/LHK ;\YUV]LY p Introduced various new tests, upgraded *V\U[ systems and infrastructure p Moved to a 2,500 sq. ft. premises and added about 50 service providers to its network p Thyrocare Technologies Limited is incorporated 2005-2008 p Increased test menu to 50 and upgraded p Received accreditation from ‘NABL' infrastructure with ERP software and p Launched a comprehensive preventive care automation system profile under the brand Aarogyam p Launched integrated air-cargo logistics p Launched Direct Selling Associates (DSA) system with email reporting facility model for promoting preventive care profile p Launched the first monthly magazine in p Issued fully convertible debentures diagnostic industry aggregating ` 250 million to BCCL p Received accreditation from ‘CAP' p Shifted to a 50,000 sq. ft. Central Processing Laboratory with modern infrastructure p Introduced SugarScan glucose monitor for 2009-2010 Point of Care