apollo hospitals dhaka · sts holdings limited corporate management team message from chairman...
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A P O L L O H O S P I T A L S D H A K A
STS Holdings Limited
Growing TogetherIt was five years ago that Apollo Hospitals Dhaka first
opened its doors. We were driven not only by a mission, but more so by a passion; a passion to touch lives. We did not treat only patients, we treated lives. Each life we changed touched the lives of many others – as we saw in the smiling faces of their families and loved ones.
Five years later, we can proudly say that by touching lives the way we have, we have performed countless
miracles. We have not only saved lives, we have saved families. We have helped people to grow together.
Our Annual report is a commemoration of all this and, how we too have grown stronger with every life that
we’ve touched.
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ContentsThis is Apollo Hospitals Dhaka
Notice of the 13th Annual General Meeting
Vision & Mission
Corporate Directory
Corporate Chronology
Our Success Stories
USP
Board of Directors
STS Holdings Limited Corporate Management Team
Message from Chairman
Message from CEO
Directors’ Report
Corporate Governance Information
Our Consultants; Our Everyday Heroes
Management Team
Management Discussion
Future Outlook
Financial Highlights
Auditors Report
Proxy Form
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This
is A
pollo
Hos
pita
ls D
haka
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There is a passion shared by each and every staff member of Apollo Hospitals Dhaka. As
unique as each of us are, we come together under a common belief and a natural
tendency to help and connect with those in need. Apollo Hospitals Dhaka is the only 'JCI
Accredited' 450-bed multi-disciplinary super-specialty tertiary care hospital in
Bangladesh, confidently providing comprehensive health care with the latest medical,
surgical and diagnostic facilities. These services are provided by expert medical
professionals, skilled nurses and technologists using state-of-the-art technology. Apollo
Hospitals Dhaka is not all about cutting-edge technology and performance driven skill of
its doctors and nurses; it is also about the hope that we bring to each life we touch. We are
Apollo Hospitals Dhaka.
This isApollo Hospitals Dhaka
Not
ice
of t
he 1
3th
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ual G
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Notice of the 13th Annual General MeetingNotice Hereby given that the 13th Annual General Meeting of the shareholders of STS Holdings Limited will be held on
the 24 June, 2010 at 10.30 am in the board room of Apollo Hospitals Dhaka, Plot-81, Block-E, Bashundhara R/A,
Dhaka -1229, Bangladesh to transact the following business :
Agenda 01: To receive, consider and adopt the Directors’ and Auditors Report and Audited Financial Statements for the
year ended December 2009.
Agenda 02: To elect Directors in the place of those who retire by rotation in terms of the article of association of the
company.
Agenda 03: To appoint Auditor for the year 2010 and fix their remuneration.
By Order of the Board
Dated: (B.R.Sikder)
09 June, 2010 Company Secretary
Notes:
• For the state of convenience, Shareholders are requested to submit their queries, if any, on the Directors’ Report and
Audited Financial Statements for the year 2009, at the Corporate Office of the Company, located at House # 8/A,
Road # 143, Gulshan-1, Dhaka-1212 preferably 72 hours before the day of the Annual General Meeting.
• A member eligible to attend and vote in the AGM may appoint a Proxy to attend and vote on his/her behalf. The Proxy
form duly completed and stamped must be deposited at the registered office of the company not later than 48 hours
before the time fixed for the meeting.
OurVision &Mission
“Our Vision isOur Way of Life”
Our
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& M
issi
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VisionApollo Hospitals Dhaka (AHD) enjoys the distinction of being the first private sector for-profit corporate hospital in Bangladesh. We started our operations as a tertiary care super specialty hospital on March 30, 2005. Its affiliation with prestigious quality brand of Apollo Hospitals Enter-prises Limited (AHEL) of India, reflects the International Standard for Quality and Patients Safety in providing corporate healthcare and consumer value in our market niche. Being the first and only Joint Commission Interna-tional Accredited hospital in Bangladesh, AHD leads with clear superiority in healthcare solution market proving once inaccessible pinnacles in healthcare delivery parameters can be reached. Of course our clinical excellence today, is unmatched. But the courage – the courage to go first as a for-profit corporate hospital in this country, to lead, where none has gone before – is doubly unmatched.
Apollo Hospitals Dhaka is a smarter high-tech hospital than many in the country; hence the problems we have here are, solvable. While it cannot eradicate diseases or even reduce them, technology can certainly help mitigate losses and alleviate patient suffering. Based on analysis of affected areas, skilled medical staff can be guided to manage patients, diseases, outcomes and consequences.
In AHD, our strength is built through struggle and
hardship to upkeep consistent quality in every aspect of patient service. All of us share that strength with us to improve our patient’s health and contribute productively to their condition and thus the opportunity to build lives that are better, fuller and healthier in everyway. Through our actions to make quality healthcare accessible to our patients, everyday we prove that our service isn’t a mere occupation, but a way of life.
Apollo Hospitals Dhaka is staffed with people having natural tendency to help, combined with the qualities of mind and spirit that always seek to reach out and connect to patients. When we counsel our patients, we give those who hear us confidence not only in us but also in themselves to get well. Not only we listen to our patients, we hear what is actually said by them. We need to know about our custom-ers’ pains and problems, so we can help. So we can change their life. And not later or a little bit. But now, profoundly.
MissionOur Mission is to bring Healthcare of International standards within the reach of every individual. We are committed to the achievement and maintenance of excellence in education, research and healthcare for the benefit of humanity.
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Corporate DirectoryThere is a network which binds our organization in bondage. These are the people who know the businesses of touching lives. It is through their touch that Apollo Hospitals Dhaka has become the best at providing healthcare services. They are the Life Line of Apollo Hospitals Dhaka.
Corp
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Name of the Company STS Holdings Limited
Name of the Project Apollo Hospitals Dhaka
Legal Form Incorporated as a Private Limited Company
in 1997. Subsequently converted into a
Public Limited Company in July, 2006.
Date and Place of Incorporation August 28, 1997, Dhaka, Bangladesh
Registration No. C-33709 (455)/97
Registered office House # 8A, Road # 143, Gulshan – 1
Dhaka, Bangladesh
Board of Directors Mr. Bhagwan W. Kundanmal Chairman
Mr. Khondoker Monir Uddin Managing Director
Mr. Tipu Munshi Director
Mr. Mohammad A. Moyeen Director
Mr. Nissanka Weerasekera Director
Chef Executive Officer Mr. Michel S. Potter
Auditor S. F Ahmed & Co.
Chartered Accountants
Banker Eastern Bank Limited
Pubali Bank Limited
Dutch-Bangla Bank Limited
HSBC
Standard Chartered Bank
Legal Advisor LeeKhan & Associates
Sadat, Sarwat & Associates
Company Secretary B.R. Sikder, FCS
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Corp
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hron
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August, 1997 Company Registration
December, 1997 Authorized Capital Increased
December, 2002 Authorized Capital Increased
April, 2005 Out-patients Activity Started
February, 2006 Authorized Capital Increased
July, 2006 Converted to Public Limited Company
June, 2007 Private Placement for Preference Share
September, 2007 Private Placement of Ordinary Share (foreign)
October, 2007 Private Placement of Ordinary Share (local)
January, 2008 Syndication Loan Repayment
April, 2008 JCI Accreditation
June, 2009 Inauguration of Dedicated Paediatric In-patient Wing in AHD
April, 2010 Receiving allotment of land from Chittagong Development Authority (CDA) for construction of a Multispecialty Hospital
Corporate Chronology
Our
Suc
cess
Sto
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Since its inception in the year 2005, a total of 229,204 patients have registered with Apollo Hospitals Dhaka (AHD) and over 645,525 patients availed out-patient consultation across 29 disciplines.
Over 20,586 successful surgeries have been carried out at AHD till date.
Apollo Heart Centre is providing cutting edge technology which is a great source of convenience for patients seeking Congenital Heart Surgery. Since beginning, AHD has completed 1,728 successful Cardiac Surgeries. World-class Cardiac Catheterization for the patients suffering from heart diseases is also provided here. 4,410 Angiography and 1,032 Angioplasty procedures have been successfully executed at AHD. The first Atrial Septal Defect (ASD) closure by non-surgical procedures has been accomplished in the Cath Lab on July 19, 2009 using 24 mm ASD Device Closure. To date, there have been 4 ASD closures at AHD Cath Lab. Intra-cardiac device implant services, like implantable cardiac device (ICD) and Pacemaker implants are performed at Apollo Heart Centre. There have been 3 ICD implants and 203 Pacemaker implants performed at AHD till 2009 end.
The world-class Stroke Centre at AHD is the pioneer and only comprehensive centre of its kind in Bangladesh providing complete stroke-recovery solution.
AHD has achieved 1,866 successful Neuro Surgeries from its start to date. It provides integrated comprenhensive solution for the patients suffering from Neurological Dysfunction.
Our Success Stories
In life, miracles don’t just happen as it does in stories. They take place everyday when you believe in touching lives. We never really cure patients; we treat mothers, fathers, sons, daughters, grandfathers and grandmothers. So that they can get better and go home in the quickest possible time, and touch the hearts of everyone in their family by bringing a smile to their faces. This is the miracle we perform.
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3,204 Orthopaedic Surgeries have been successfully completed in AHD since its inauguration, which includes 36 Hip Replacement and 55 Knee Replacement surgeries.
AHD’s super specialized Dermatology Department is providing skin balancing treatment to rejuvenate one’s skin. Its Laser Centre is performing surgery with PDL and Multiplex, as the only centre in Bangladesh having both. Its
ultramodern Phototherapy Centre is equipped with latest PUVA and narrow band UVB chamber.
AHD has also completed 1,152 High-end Plastic and Reconstructive Surgeries so far.
2,518 General Surgeries have been successfully performed in AHD up to now. The Surgical Centre has started to
Our
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perform Liver Resection Surgery, the first of which has been successfully carried out on a 34-year old female patient (left lobectomy) on November 23, 2009.
10 Renal Transplants have been successfully completed in AHD, which is the first of its kind among the private hospitals in Bangladesh.
2 Cochlear Implants for permanent deaf patients have been successfully performed in AHD as well, being pioneer in providing this Cochlear Implants facility among the private hospitals in Bangladesh.
Apollo Mother & Child Centre is providing comprehensive treatment in specialties like O b s t e t r i c s / G y n a e c o l o g y, Neonatology, Paediatrics, and Fertility. AHD has opened a dedicated Paediatric In-Patient Wing at Apollo Children’s Centre at Level-5 of the hospital on June 1, 2009. The Paediatric IP Wing has 24 standard beds and 8 single private cabins and has proven to be a successful show-case of patient care. Apollo Fertility Centre has been working relentlessly in Infertility Management for couples’ care and follow-up with utmost privacy since its inception in February 2008. The first test tube babies (full term healthy twins) have been born in Apollo Fertility Centre on November 20, 2009. In addition to IVF, expert fertility management team also provides international standard support including IUI, ICSI, ET, and cryopreservation of embryo and sperm.
AHD’s Lab Medicine Department has started Plasma
ACTH (Adrenocorticotropic Hormone) Test in March 2009, which is particularly important in the differential diagnosis of Insufficiency and Hypersecretion of Adrenal Gland. The department has also initiated a unique approach in diagnosis and management of sepsis through measurement of serum procalcitonin in August 2009. This blood test can also be used to monitor the course and prognosis of life-threatening systemic bacterial infections, as well as a guide to the initiation and duration of antibiotic therapy. The department has introduced Rapid Influenza Detection Test (RIDT) for patients with influenza-like illness and pneumonia in November 2009. This test can reduce the use of antibiotics and detect and distinguish between influenza A and B viruses.
AHD has introduced two new vaccines, Influvac and Prevnar, in its Vaccination Centre in November 2009, which are the first of their kinds in Bangladesh. Influvac is the flu vaccine recommended for those with increased risk of flu and flu-related complications, while Prevnar is the vaccine effective for children below 2 years of age for pneumococcal diseases.
AHD has started to use Non-Touch Infrared Thermometer for its patient service in November 2009, which so far, is not available anywhere in Bangladesh except in this hospital.
AHD has set up eight new health packages in its Master Health Check (MHC) services by August 2009. AHD’s MHC services started on 16 April 2005 and it is the only hospital in the country to be providing this service in one-stop hassle free corporate style. At present there are a total of 21 MHC packages available. The eight new packages include: Apollo Liver Screening, Apollo Screening for Smokers, Apollo Thyroid Check, Apollo DAP (Drugs with Addiction Potentiality) Screening, Hearing Screening Test, Apollo Joint Pain & Arthritis Check, Apollo Obesity Check, and Apollo Pre-anaesthesia Check.
With the promise of providing escalated service and call attendance, AHD has inaugurated its renovated Appointment Centre on August 4, 2009 and has extended the Appointment Centre’s operation hours from 8:00 am to 9:00 pm. To improve the service quality, a new IVR-based software system will be soon implemented for achieving 100% service availability for all the callers.
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USP
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At Apollo Hospitals Dhaka, we realize that choosing a health care provider is a carefully considered decision. We take special effort in putting your mind at ease; from world class medical expertise to internationally benchmarked protocols, from modern infrastructure to state-of-the-art technology. Our seamless and holistic service has you covered from initial consultation through decision making, medical treatment and post discharge recuperative support. Our customer care services cover everything from appointment scheduling to pharmacy dispensing and revisit.Our patients look at Apollo Hospitals Dhaka for an unparalleled experience; globally respected medical expertise, and a tradition of care deeply rooted in the ethos of its people.We encourage people to talk to us about their medical options and assist them to take charge of their own health.
Unique advantages constituting USP• Only hospital in Bangladesh having JCI (Joint Commission Accreditation) Gold Seal Approval;
first time ever in Bangladesh • Affiliation with AHEL (Apollo Hospitals Enterprises Limited) • Highest number of medical and surgical subspecialties • Proven best Infection Control System Emergency and Accident Service Waste Disposal and Management System• Corporate & Collaborative Governance ensuring accountability at every step of service • Stringent Credential Policy for selection of medical and allied staff • Only hospital in Bangladesh having Hospital Emergency Code • Strongest IT backup support having the only Jukebox in the country and demonstrating
complete EMHR (electronic medical health record) of patient • All facilities under one roof • World class dedicated nursing staff
Apollo Hospitals DhakaThe medical expertise you valuethe care you deserve
FingerprintsWhat makes us unique? Is it our world class medical expertise, state-of-the-art medical facilities or our seamless service? We believe what makes us truly unique can be defined by a simple value – the value we give to each and every life.
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Mr. Bob W. KundanmalChairmanMr. Kundanmal is a renowned business personality of Sri Lanka and has in his credit a long business career in Sri Lanka, Bangladesh and Thailand. Apart from Apollo Hospitals Dhaka, Mr. Kundanmal is also associated with Sino Lanka (Pvt.) Ltd., Shanta Group, Lanka Bangla Finance Ltd., Royal Park Residence Ltd. as Chairman/Director.
Board of Directors
Mr. Khondoker Monir UddinManaging DirectorMr. Monir Uddin is a renowned business personality of the country and is involved with the business for more than 20 years. Mr. Monir Uddin is also associated with Shanta Garments Ltd., Shanta Apparel Ltd., Moazzem Garment Industries Ltd., Shanta
Washing Plant Ltd., Shanta Industries Ltd. at EPZ, GDS Chemical Bangladesh Ltd., Universal Business Machines Ltd., and Shanta Properties Ltd. (SPL) in the capacity of Managing Director. He is the shareholder Director of Dhaka Bank Limited, Spring Valley Ltd., and Lanka Bangla Finance Ltd. He was the Chairman of the Board of Directors of Dhaka Bank Limited, a reputed bank in the private sector.
Mr. Mohammad A. MoyeenDirectorAfter graduating as an architect from Bangladesh University of Engineering and Technology in 1982, Mr. Moyeen involved himself in business. Besides being the Director of Apollo Hospitals Dhaka, he is the Founding Member and Chairman of LankaBangla Finance Ltd. and the Managing Director of
Tropica Garments Ltd. and Global Aviation Services Ltd. He is also a Director of Standard Paper Products Ltd., Wings Air Cargo Ltd., Swift Logistics Services Ltd., M & M Ltd., Freight Care Aviation Services Ltd., Expo Express Services Ltd., Wings Logistic Ltd., Orchid Air Ltd., UCL Logistic Ltd., Cross Freight Lines Ltd. and Air Line Cargo Resources Ltd.
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Mr. Tipu MunshiDirector
Mr. Munshi is involved with the garment and textile manufacturing, exporting business, education and healthcare service. He is also associated with Sepal Garments Ltd., MAS Trade Int’l Garments Ltd., Creative Garments Ltd., Glory Fashion Wear Ltd., and Sepal Washing Plant Ltd. as Managing Director; Orchid Garments Ltd. as Director. Mr. Munshi was the President of Bangladesh Garments Manufacturers & Exporters Association (BGMEA). He is currently a Member of Parliament elected
from the reigning party Bangladesh Awami League.
Mr. Nissanka Bandra Weerasekera
DirectorMr. Weerasekera is representing Aureos South Asia Fund LLC, one of the institutional shareholders of STS Holdings Limited as a nominated Director of the Board. Mr. Weerasekera is also the current Managing Partner of Aureos Lanka Advisers (Pvt.) Limited in Sri Lanka, a sister concern of Aureos South Asia Fund LLC is one of the 10 funds established by Aureos Capital, a joint venture between CDC group plc, a UK Government fund and the Nonfund, the Norwegian investment fund for developing countries that
focuses on investment in India, Sri Lanka and specially in Bangladesh.
STS Holdings LimitedCorporate Management Team
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From Left to Right: Mr. B.R Sikder - Company Secretary; Mr. Giashuddin Ahmed - General Manager, Administration; Mr. Giash Uddin - Chief Financial Officer; Mr. Abu Taleb - Chief Executive Officer; Mr. M. Khan Bahar - General Manager, Procurement & Logistic;Mr. Shibly Ahmed- Head of Internal Audit
Message fromthe Chairman
Mr. Bhagwan W. KundanmalChairman
Mes
sage
from
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Bangladesh economy showed its mettle in 2009 when it passed one of the toughest tests triggered by the global financial meltdown, which significantly impacted performances in the major, Asian nations. Almost all the major sectors including exports, imports, remittance and the stock market of the country have performed well in 2009 despite the shocks of global recession. Bangladesh attained a 5.9 percent GDP growth in 2009 compared to 6.2 percent growth in 2008.The economy in the outgoing 2009 beginning with fear of global recession proved the government has set right kind of directions to safeguard the country's economy from the shocks of recession. The growth in the country's two major sectors, export and agriculture was satisfactory in the outgoing year 2009. Bangladesh's export earning grew at a rate of 10 percent in 2009 and agriculture by 4.8%. Imports including capital machinery are also on rise, indicating that the domestic business and investments are gaining momentum. Rate of inflation, a major concern of the country fell steadily through out the year. Annual average inflation declined to 6.7% in 2009 from 9.9% in 2008. The political stability, which is very rare in South Asia, also contributed to achieve steady economic growth in 2009. The country has highest ever foreign exchange reserves, stable exchange rates, adequate liquidity in the banking sector and increasing revenue earnings. The domestic investment increased by 15 percent during the year despite that, foreign direct investment registered fall to some extent.
ProspectsEconomy has entered into 2010 in a position of strength, notwithstanding some pretty tough global circumstances. Good recovery in agriculture, a sustained growth in exports and remittances, and a steady growth in services will help achieve the overall budgeted growth. A decline in international commodity prices driven by the global recession and an improvement in domestic food supplies will bring inflation further down in 2010. The forecasts for 2010 depend on some key assumptions. It is assumed that political stability will prevail, and that the Government will be able to move forward in fulfilling its development priorities, sustain its focus on prudent macroeconomic management, and deepen economic reforms. It is also assumed that the measures outlined in the 2010 budget to accelerate ADP utilization streamlining project approval
processes and raising institutional capacities in key line ministries will be implemented, and that the private sector will invest more in infrastructure through the new PPP scheme. It is further assumed that the Government will be able to mobilize adequate external assistance and improve revenue mobilization, and at the same time avoid crowding out the private sector through excessive bank borrowing. To encourage local industries, the Government has reduced import duties on raw materials while keeping duties on finished goods unchanged, thus raising the level of effective protection. Higher protection for local industries has also come in the form of regulatory import duties on some items and higher supplementary duties at the import stage for numerous other items. The Government has also raised the turnover threshold for value-added tax on smaller enterprises. Other expansionary measures in the budget for 2010 include large infrastructure investment programs under the ADP and the new PPP initiative as well as a widening of social safety net operations. The fiscal stimulus package announced in 2009 to support the sectors affected by the global slump is continued through 2010, with additional allocation of funds. The budget has also strengthened existing safety net programs and introduced several new programs, including an enhanced employment generation program for the hardcore poor.
Healthcare ChallengesWe have a challenging and inspiring mission to improve the quality of human life by enabling people to do more, feel better and live longer. By focusing our business around our strategic priorities, we’re confident that we can fulfill this promise. The hospital industry is experiencing a time of unprecedented challenge. The biggest challenge for the healthcare industry today is an acute shortage of trained personnel, ranging from physician consultants, to nurses, technicians and even healthcare administrators. Recruiting physician consultants from outside the country is a costly option and again, because of the existing health policy of the government, it also becomes extremely difficult to recruit at right time. The migration of skilled technicians and nursing personnel to developed countries due to higher compensation levels leaves behind a void in the quality of personnel available to our indigenous hospitals. Hospitals are a capital-intensive industry with major investments going into land, buildings and medical equipment. Medical
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equipment accounts for 40-45% of the total expenditure in hospitals. Rapid changes in technology in this era of modern science often makes existing medical equipment obsolete. The high rate of advancement in medical technology is leading to shorter lifespan, and obsolescence of medical equipment, requiring medical professionals to upgrade their skills on a constant basis. Replacement of costly equipment has become an important issue for healthcare business decision makers. Further recent shortages of gas supply have become a serious challenge for the hospital industry even affecting the bottom line. Return on investment in hospital industry completely depends upon business volume, which can take three years or more for achieving EBITD break-even and five years or more for achieving net profit.
OpportunitiesThe Bangladesh economy has been growing and the health consciousness among common people is increasing. Since healthcare is dependent on the size of the population served, and Bangladesh has a huge population of one hundred fifty million, this represents a big opportunity. There is a growing trend of people who are spending more on healthcare and prefer private corporate health care services. There are people who are ready to spend more but they expect recognition and super class service delivery from every level of staff in the hospital. Our strong brand name has helped us in positioning our business and extending our range of services. We in Apollo are offering high-quality medical facilities and services at cost competitive rates as compared with the neighboring countries in our region.
Business StrategyOur business model has been successful and it has started returning a positive bottom line even in the face of the high equity and capital intensive nature of healthcare services. Our mission is to continuously improve the quality of healthcare services provided to the communities we serve and to strive to bring healthcare services of international standards within the reach of every individual. At the same time, we seek to generate strong financial performance and appropriate returns to our investors through disciplined and balanced execution of a comprehensive business strategy that reinforces both quality of care and financial
strength. We seek to further strengthen our position as a leading healthcare service company by successfully differentiating our service offerings and increasing the scale of operations. Our quality consciousness and patient-centric approach has improved our operational and clinical efficiency, and led to numerous accolades in the medical arena in Bangladesh. We have implemented clinical governance measures that have gone a long way toward ensuring and improving the quality of clinical care at all levels of healthcare provision in Apollo Hospitals Dhaka. Joint Commission International (JCI) accreditation has in the meantime given us the roadmap for our commitment to establishing the internationally accepted patient safety and quality of care standards. The accreditation process is designed to create a culture of safety and quality within the organization which continually improves patient care processes and results. In doing so, we also develop public trust that the organization places value on patient safety and quality of care.
Distinguished ShareholdersOn behalf of the Board of Directors of STS Holdings Limited (STS) I welcome you all here to this 13th Annual General Meeting (AGM) of the Company. I take this opportunity to express my appreciation and heartfelt thanks for your continued support and encouragement, which has resulted in greater success in many areas of our hospital operations.
During 2009 we had a remarkable success after only four years of operation and have been able to make a Net Profit of Taka 46.75M through establishing new strategic business policies. Our annual turnover reached up to Taka 1,701.95M in 2009 compared to Taka 1,348.08M in 2008, a growth of 26%. Gross margin also improved to 50% in 2009 as against 45% in 2008. Operating cost was controlled by adopting different cost control measures and consequently EBITD increased to 19%.
We are pleased with the response of the business unit to what we knew would be a challenging 12 months. Our financial strategy continues to focus on maintaining an efficient balance sheet, while using cash resources to invest in our strategic priorities in order to increase returns for our shareholders.
Mes
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We take this responsibility to our shareholders very seriously. Our belief is that we can best maximize shareholder value by maintaining a long-term focus. Rather than thinking about ways in which we can create short-lived economic gains, we focus on serving our customers. We believe in the importance of building shareholder trust. We adhere to the highest levels of ethical business practices, which provide guidelines for ethical conduct by our directors, officers and employees. We believe that we've created the optimal corporate structure to realize AHD’s long-term potential and have established the appropriate financial controls and management oversight of our internal processes.
We have adopted guidelines for the ethical conduct of our directors, officers, and employees. The Board of Directors has set Corporate Governance guidelines to provide a framework so that management and the Board can operate effectively together to achieve the objectives for the benefit of our shareholders. Running our business in a responsible way is fundamental to our success and inseparable from our strategic priorities. We operate in a way that reflects our values, seeks to understand and respond to stakeholder views and connects our business decisions to ethical, social and environmental concerns. We also understand that transparency is a key factor in building trust with our stakeholders and have implemented a number of initiatives to improve the transparency of our activities. We report our
financial results in a clear and consistent manner; in accordance with Generally Accepted Accounting Principles. AHD has provided its employees anonymous methods of reporting questionable accounting, internal accounting controls or auditing matters.
In the end, I would like to reassure you that we are committed to building value for our shareholders. Our efforts to add value to the business and thus to the shareholders’ earnings will continue relentlessly in the future days as well. The success so far achieved has only been possible because of the collective efforts of the employees of the company. At the conclusion of my message, I express my grateful thanks and appreciation to Management and Staff at all the various levels for the time and effort they spend to achieve the Mission of Apollo Hospitals Dhaka. The confidence that the customers have in us has always been the source of our strength. We are also grateful to them for their trust on us. My colleagues at the Board of Directors of our Company deserve special mention as well for providing their time, expertise and relentless support.
(Bhagwan W. Kundanmal)Chairman
Mr. Michael S. PotterChief Executive Officer
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Message from theChief Executive Officer
Beginnings:At the genesis of Apollo Hospitals Dhaka’s story, there
was a dream – a dream so powerful that it inspired the
transformation of the healthcare landscape in
Bangladesh. The dream grew within a vision of quality
healthcare based upon clinical excellence. The dream
envisioned a setting in which dedicated caregivers at all
levels could touch and enrich lives every minute of
every day. It was a dream of success, achievement and
hope – a dream which became Apollo Hospitals Dhaka
and its family of caregivers.
Apollo Hospitals Dhaka is housed in a 400,000 square
feet structure on 4 acres of land. It operates as a
450-bed capacity (304 beds currently licensed) super
specialty facility delivering advanced tertiary care to the
people. The hospital is a recognized provider of
premium private healthcare in Bangladesh, and is the
first of its kind in the country to redefine the essential
infrastructure for hospital based healthcare. Apollo
Hospitals Dhaka is the first and only hospital in the
country certified as meeting Joint Commission
International standards for quality healthcare.
Apollo Hospitals Dhaka is an example of the synergy
of medical technology and clinical advancement in a
world-class facility, successfully integrating a wide range
of quality specialty services, equipment, technology,
and ambience. In order to make these services available
to a wide range of people, Apollo Hospital Dhaka
accepts appropriate referrals of patients. These
referring facilities, including physician offices, clinics
and both public and private hospitals, believe that the
referred patients will benefit from services which they
cannot provide or for which the specialty consultants
are not available outside of Apollo Hospitals Dhaka.
As Apollo Hospitals Dhaka has made significant strides
in reaching its current level of excellence, more and
more facets of the founding dream and vision have
become a reality. We are continuing to play a pioneering
role in moving Bangladesh towards becoming a key
player in healthcare sector across South Asia.
An Atmosphere of Trust and Respect: A High Touch Feeling in our High Tech Facility.We have many goals for our organization. Two key
goals which require the focus of every member of the
Apollo Hospitals Dhaka team include: improving
patient satisfaction and core measure results. These
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goals are based on our patients’ expectations of service
excellence and their desire for superior care.
Maintaining an environment of mutual respect is
necessary if we are to meet our patients’ expectations.
Our dedication to continuous improvement has
introduced Apollo Clinical Excellence innovations in
Infection Control Protocols, Clinical Pathways,
Hospital Disaster Management, Rational Use of
Antibiotics, and many others. At Apollo Hospitals
Dhaka, quality is not a new trendy phrase; it was
designed into the facility and is expected of our staff.
We have both the resources and the commitment to
meet and exceed international standards for quality
health care. In the future, the demands for medical
effectiveness and quality are only going to increase and
with each passing day health service providers are being
pressed to improve their performance. Guided by the
Hippocratic Oath and our educational and social
responsibilities, we pledge to continue to provide the
best possible patient care at Apollo Hospitals Dhaka, as
we are committed to engaging the resources necessary
to achieve our goals. We recognize that, ultimately, the
challenges we encounter and the patients we treat will
be the final arbiter of our quality.
In addition to remaining abreast with advances in
technology, our focus on continuous improvement is of
paramount importance. Apollo Hospitals Dhaka is well
into its quality journey, meeting and exceeding
benchmarks and quality indicators for accreditation by
Joint Commission International (JCI), which is a
division of Joint Commission Resource (JCR), the
subsidiary of the Joint Commission.
Overview - Year 2009: The year 2009 was an exceptionally challenging year for
the global economy and for the Bangladeshi Health
Sector. The global financial concerns introduced new
fiscal pressures. AHD’s core values, strengths,
leadership skills, and innovation were tested. Despite
the challenges, we did not simply survive, we thrived.
Apollo Hospitals Dhaka continued to explore new
target markets, improved its services and expanded its
product lines. Our Management Team carefully
balanced revenues and expenses. Apollo Hospitals
Dhaka refused to compromise when it came to medical
quality and services. This commitment has served us,
our patients and our shareholders well and it will
continue to do so, going forward. The year 2009 was a
significant growth year for Apollo Hospitals Dhaka.
Global Economy: The world is changing rapidly and profoundly. We heard
the rumblings of global economic crisis and felt the
pressure of global financial concerns. We responded
with integrity, reliability, and patient focused care. This
approach, along with the skills of our dedicated staff,
has proved that despite the challenges, we can be
successful clinically and financially even in a challenging
financial climate.
The global financial picture now appears to be
expanding again, bolstered by the strong performance
of Asian economies and stabilization or modest
recovery elsewhere. Emerging and developing
economies are moving ahead on the road to recovery,
led by resurgence in Asia. The recent rebound in
commodity prices and supportive monetary policies are
helping many of these economies as well. As prospects
have improved, world trade has begun to pick up. The
triggers for this rebound are strong public policies that
have supported demand and reduced fears of a global
depression. Together, these measures reduced
uncertainty and increased confidence, fostering the
improvement in financial conditions.
Bangladesh Economy:During the year 2009, political issues affected the
infrastructure and economics in Bangladesh. This was
particularly evident in the areas of water, electrical
service and natural gas. All three of these staples of the
hospital’s daily operation have been and continue to be
in perilously short supply.
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Financial markets and institutions in Bangladesh
remained free of the toxic assets afflicting many of the
global financial markets, with output activities meeting
domestic demand in FY 2009. Output activities for
export demand weakened as exports declined for most
items. Even the stalwart textile and apparels segments
showed some growth slowdown. According to the
recent Monetary Policy Statement (MPS) of Bangladesh
Bank, unlike most other economies in the region and
elsewhere, output growth in Bangladesh has, thus, far
been only mildly impacted by the ongoing global
economic recession, with estimated 5.9 percent real
GDP growth in FY 2009 following the 6.2 percent
growth of FY 2008. Despite signs of recovery, in global
financial markets and related institutions, effects of the
global slowdown are expected to linger until mid 2010,
affecting the growth momentum in export
manufacturing and investment activities. Accordingly,
FY 2010 real GDP growth is projected to be in the
range of 5.5 to 6.0 percent.
The downward trend in global commodity prices has by
and large ceased and the decline in domestic annual
average CPI inflation is, therefore, likely to be slower
and smaller in FY 2010. The initial projection is for
inflation to be at 6.5 percent by June 2010. The
opposite scenario of unexpectedly faster global
recovery will also involve some risk of exacerbating
domestic inflation.
On the domestic front, agricultural growth will
depend, in addition to favorable weather and
reasonable market prices, on adequate and timely
availability of irrigation, fertilizers and other inputs to
the growers. This is a challenge not always well
addressed in the past. Infrastructure inadequacies,
particularly those of electrical power, water and natural
gas remain as severe constraints for growth in all
economic sectors. Ongoing infrastructure projects and
the public-private partnership program announced in
the FY 2010 national budget will need to be brought to
rapid fruition for growth aspirations of the economy
to be fulfilled.
Financials 2009: “The Growth Year”Against this very challenging backdrop, Apollo
Hospitals Dhaka started the year on an unsteady note
but finished the year with a growth rate of 26% despite
the sluggish nature of the global economy. We were
able to overcome the country’s infrastructure issues
through our strength and resilience which turned the
challenges into advantages. We increased our focus on
people and invested in improving our existing facilities.
We are proud to have satisfied customers from a broad
spectrum of society; corporate customers, customers
from small and medium enterprises, families and
individual customers. We met the demand of all AHD
patient segments by tailoring our products and services
to meet their varying needs. We have introduced a
diverse range of products and services which are based
upon anticipating the needs of all of our valued
customers. We offer our corporate customers a range
of options and Corporate Credit Facilities as financial
solutions to balance their health and financing needs.
The year 2009 was a successful year for Apollo
Hospitals Dhaka in terms of total revenue as well as
profit margin. 2009 marks the first time that the
hospital has operated at a profit. The revenue trend is
increasing and financial performance is reflecting the
positive results. This year ended with significantly
higher revenue compared to 2008 and achieved 107%
of the 2009 revenue budget. During the year Apollo
Hospital Dhaka earned Taka 1,701 million in revenue
compared with the revenue of Taka 1,348 million in
year 2008 and the 2009 budgeted revenue of Taka 1,587
million.
Raising the Bar on Healthcare Standards:In Bangladesh, Healthcare is a sunrise industry with
tremendous growth potential. Following the increase of
general awareness in healthcare, the industry is set to
boom. Apollo Hospitals Dhaka has not only set the
standard but has also raised the bar for the Bangladesh
Healthcare Industry as a whole. While it has several
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ground breaking achievements to its credit, Apollo
Hospitals Dhaka faces an ongoing challenge to
constantly and consistently advance its goals.
On the operations front, we are critically examining our
current and future demand and needs in order to be
better prepared for uncertain economic conditions.
Apollo Hospitals Dhaka has already implemented
system-wide measures to contain costs and improve
operational efficiency and effectiveness. We are also
monitoring internal benchmarks and best practices to
meet and exceed internationally recognized healthcare
standards for clinical outcomes. All of these measures
will help us maintain our leadership position over the
long term period.
More than 90% of our patients do not have health
insurance coverage and as a result, they incur significant
out-of-pocket payments. For this reason, Apollo
Hospitals Dhaka focuses on becoming more cost
effective through process engineering and design to
achieve maximum efficiency. At the same time we must
maintain a consumer-centric focus to ensure patient
satisfaction.
A recent survey on service delivery under the Health
and Population Sector Programme shows that 60% of
health service users visit unqualified medical
practitioners and at the same time, a significant amount
of funds are spent for treatment of Bangladeshis
abroad. This scenario provides Apollo Hospitals Dhaka
both a challenge and an opportunity.
Focused and Emerging StrongerIt is our firm belief that competent and skilled human
resources are the cornerstone of our success. We have
been able to attract and retain talented staff with
outstanding qualifications in all areas of Apollo
Hospitals Dhaka.
In order to remain as the employer of choice in the
health care sector, we offer a broad range of benefits
and competitive compensation to our employees. We
also require Apollo Hospitals Dhaka employees to
attend need-based training programs for their ongoing
professional development.
These efforts are directed to ensure the quality of
healthcare we provide and at the same time, meet the
expectations of our key stakeholders. We perform all
of our responsibilities with the expertise and dedication
necessary to provide healthcare of the highest quality,
to increase the value of the enterprise, and most
importantly, to provide excellent services to our valued
customers.
These attributes are a testament to the solid
reputation and international prominence that the
Apollo brand has established over time. The strength
of our brand should not be underestimated. For our
patients, it is synonymous with healthcare excellence,
and for our shareholders and investors, it stands for
operational stability, competent governance and
transparency.
Meeting the Challenges AheadLike many other companies in Bangladesh and the rest
of the world, Apollo Hospitals Dhaka is facing an
economic environment that is unprecedented in its
challenges. While our regional business is sound and
long term industry fundamentals remain intact, we will
take the necessary steps to prudently prepare the
Company for a more difficult operating environment.
The Management has taken the lead in this respect; I am
grateful to everyone for this support. The Board and I
are also appreciative of everyone who has played a part
and made sacrifices in this belt-tightening exercise.
Apollo Hospitals Dhaka:People Helping People I extend my appreciation to the Apollo Hospitals
Dhaka management team and staff, both clinical and
non-clinical, for their commitment and dedication to
strengthening our Apollo Brand. Their tireless effort
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has allowed our hospital to achieve its mission: to
make a difference in people’s lives through excellent
patient care.
I firmly believe that our people are our greatest assets
and as a result of their skills, we have the infrastructure
in place to attract, develop and retain the best in this
business. My gratitude also extends to our Medical
Staff, who ensure that we are able to provide the best
clinical outcomes possible for our patients. An
especially big “thank you” goes to our Directors for
their invaluable counsel and contribution to the
continued growth of our Hospital.
To our shareholders, thank you for your loyalty and
especially for your belief in the long term growth
prospects of Apollo Hospitals Dhaka. 2010 is a year of
promise for more growth, based upon quality services
and continuing investment in human capital and
physical infrastructure. The Healthcare Sector in
Bangladesh still has significant opportunities to
increase the quality and scope of services available to
our neighbors and friends in Dhaka and beyond. I am
confident that we will continue to grow in order to fill
the unmet needs for healthcare services for our
community. To that end we will diligently seek
appropriate opportunities to support and collaborate
with our physician colleagues in bringing more options
and modalities for diagnosis and treatment to Apollo
Hospitals Dhaka.
Thanks and regards.
Michael S. Potter, FACHE
Chief Executive Officer
Apollo Hospitals Dhaka
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Directors’ ReportOn behalf of the Board of Directors, we are pleased to present these reports and audited financial statements of STS Holdings Limited for the year 2009, ended on 31 December.
Apollo Hospitals Dhaka entered its fifth year of operation in 2009. The company has enjoyed strong organic growth throughout its history. The 2008/2009 world financial crisis created a series of challenges for all businesses; however, we are pleased with AHD’s record earnings in 2009. AHD entered this year with a strong balance sheet, healthy cash flow and a business plan geared to identify new business opportunities and protect our core businesses.
The past four years have brought a higher level of organizational maturity and a keen knowledge of the healthcare market that allows AHD to consistently outperform the market and deliver growth. While paying close attention to maintaining or improving margins, AHD kept its commitment to not compromise the quality of its medical care and service to patients.
Much credit for these achievements goes to our doctors and nurses, along with the clinical and support staff of the hospital who positively touch the lives of millions of patients. It is to these loyal patients who have supported us throughout the years that the bulk of the credit goes.
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GrowthFor the year 2009, the Company reported revenues from hospital operations of Taka 1,702 million, an increase of 26% from Taka 1,348 million in 2008. The increase is mainly the result of the continuous growth in hospital operations. Other incomes increased to Taka 9.65 million in 2009 from Taka 5.52 million in 2008. This increase came primarily from the sales in Apollo Food Village, a dining facility which was launched in June 2009, and from revenues generated through sale of scrap materials, collection of car park tolls and interest earned from banks.
In 2009, the Company reported a Taka 858.96 million cost of hospital operations, an increase of 14.78% from Taka 748.37 million in 2008. This represents a slightly lower growth rate than that of revenues from hospital operations. This result was achieved through continuous cost management. The gross profit increased by 40.56% to Taka 842.98 million in 2009 from Taka 599.71 million in 2008, with improvement in gross profit margin to 49.53% in 2009 compared to 44.49% in 2008. The Company’s administrative expenses increased to Taka 474.81 million in 2009 compared to Taka 465.69 million in 2008 – an increase of 1.96%, which, again, is at lower rate than the rate of increase in total revenues. As a result, EBITDA was Taka 323.47 million in 2009, a 263.49% increase from Taka 88.99 million in 2008. Our EBITDA margin had a significant growth rate of 19.01% in 2009 compared to 6.60% in 2008. The Company reported depreciation and amortization of Taka 194.06 million in 2009, an increase of 1.42% from Taka 191.34 million in 2008. Financing expenses decreased to Taka 82.66 million in 2009 compared to Taka 114.08 million in
2008, as the STS Educational Group Ltd.’s loan outstanding was settled through issue of equity and controlled utilization of overdraft and bank interest thereof.
Strategy“We will do everything for everybody” has never been a viable value proposition for any successful business model that we know of – and yet that is the value proposition. Delivering a value proposition to do the first job requires a solution-shop business model that will ensure high quality. The second job requires a value-adding business model organized around the efficient delivery of specific services. While implementing such strategies, we decided our physicians should move to a fee-for-service scheme with minimal guarantee money to ensure quality and productivity.
Being the first corporate sector private hospital, we had some responsibilities in setting up competition in healthcare quality. We decided not to compete on price with the other top tier hospitals but instead to continuously improve our patient services quality in order to capture market share and ensure margin growth for our business.
We strive to continuously meet and exceed our customers’ expectations. We act daily to sustain continuous process improve¬ments in direct response to customer input. Simply stated, our Centers of Excellence will be perceived as the best service choice in the marketplace.
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Our CommitmentThe leadership of Apollo Hospitals Dhaka has made a conscious commitment since our inception, to provide safe, quality services to the people of Bangladesh. Now, having implemented these standards for world class patient care, we stand even more strongly committed to providing the best We are also committed to routinely updating our protocols and practices based on the most current information available and through implementation of periodic international quality updates issued by JCI.
Patient CareThe hospital provides patient care in an ethical manner,
and at the best quality possible, taking into c o n s i d e r a t i o n patient safety, p a t i e n t satisfaction and efficiency in p r o v i d i n g services. The h o s p i t a l ’ s Medical Ethics C o m m i t t e e e n s u r e s a p p r o p r i a t e interactions and
protects patients’ rights. In addition, the Hospital has a department which reviews customer complaints, monitors and continuously improves the quality of the care provided while taking into consideration patients’ needs and suggestions.
Through its JCI accreditation Apollo Hospitals Dhaka conveys a strong message to the community about our confidence in the quality and safety services we provide. The JCI guidelines and proven best practices implemented here are aimed at constantly improving risk prevention and risk reduction, so that patients are put at ease once they are within the folds of Apollo.
Quality Control AHD is committed to providing a system of Quality Management for its ongoing clinical and operational activities. Apollo Hospitals Dhaka has put in place a strong Quality Management Protocol to ensure quality, safety and efficiency in all departments of the hospital. We are dedicated to achieving complete patient satisfaction.
A specially designated team monitors the quality, safety and infection control related data from the various departments to ensure that they meet the hospital’s standards. Critical Incidence Report Analysis with it’s corrective guidelines, advice on best practices and monitoring of patient satisfaction are among the functions which help elevate the quality of care. This team also monitors the implementation of JCI standards in the hospital and conducts internal reviews and quality audits from time to time. There is a regular ongoing training program for the hospital staff on the quality and JCI standards.
The Quality Steering Committee, comprised of Senior Physicians and Management staff of the Hospital, regularly meets to review the data, consider quality related issues and make suitable recommendations for improvement. Achieving accreditation by the JCI for compliance with the stringent international healthcare quality standards is a testament to the dedication of the entire staff of Apollo Hospitals Dhaka and to their efforts for ensuring the best and safest care for our patients.
Risk AssessmentThe Company regularly assesses business risk factors, taking into account economic, political, social and environmental circumstances, including the industry situation and competition, which are external factors. It also assesses internal factors, especially risk factors concerning medical services, which may have a significant impact to the Company.
In addition, the Company has established a risk management policy and assigned the management to continually monitor for incidents which could increase the risk factors. It has also defined the Hospital Risk
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Management Process and the Safety and Environment Risk Assessment as part of the Hospital Administrative Policy (HAP). Consequently, we believe that the Company has an effective risk management process that can mitigate business risks to an acceptable level.
Information and CommunicationThe Company ensures the effective flow of information on internal activities and external factors across the management levels. All individuals receive a clear message from senior management that control responsibilities must be taken seriously.
Corporate Social ResponsibilityHealthcare delivery organizations are now regarded as "Corporate Citizens" and as a result, they are striving to fulfill their responsibility in this regard. STS Holdings Limited emphasizes social, ethical and environmentally responsible approaches to business activity.
At Apollo Hospitals Dhaka, we believe that our ability to make a difference extends beyond our hospital walls. Both as an organization and as individuals, we’re dedicated to playing an active role in providing services with support, outreach programs and special services to improve quality of life factors. This sense of responsibility to the community is a core element of our professional culture, and our nurses and allied health clinicians go to tremendous lengths to adopt this mission as their own.
Each day, we are discovering new ways to make a positive impact in the lives of people both within and beyond the hospital, and just how rewarding it can be in our own lives. Our continued growth, both in terms of size and stature, has been paralleled by the expansion of our commitment to serving poor and disadvantaged patients. We take great pride in offering free or reduced rate hospital care to qualifying patients, as well as funding from Foundation Fund, which is one of the most generous financial assistance policies in the area. We also sponsor and participate in a wide range of physician training and development programs and activities that ultimately benefit the general population.
Control EnvironmentControl activities are the policies and procedures which help ensure that management directives are carried out, and the necessary actions are taken to minimize the risks of failure to meet stated objectives. Policies and procedures are effectively established within the Company and are continuously reviewed for compliance, adequacy and improvement opportunities.
The Board of Directors sets the tone for an effective control environment through regular reviews of the processes for identifying, evaluating, and managing significant risks. The Standard Operating Procedures (SOP) are signed off by each Head of Department to provide assurance that these standards are communicated, understood and complied with. An effective Control environment is set by top management and cascades across all business functions. Every year the top team conducts a self assessment of key controls that affect the business and develops action plans to make the internal control environment more robust.
Contribution to National ExchequerApollo Hospitals Dhaka has contributed significantly to the government effort in collection of revenue. As per law Hospital deducts income tax at source, VAT and other required withholdings from various payments for services and deposits them to the benefit of the government exchequer. STS also pays taxes on its earnings as per the income tax laws.
Supplier Payment PolicyAHD developed and implemented set payment polices for all suppliers. We explain the payment method and
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Financial OverviewDuring the year under review the company has achieved a gross profit of Taka 843 million alongwith with a net profit of Taka 47 million. After four years of operation, the hospital has now become financially robust with a healthy Balance Sheet. The Hospital cash flows are also improving. The healthcare industry generally requires huge initial capital investments, especially in equipment and for recruiting and retaining skilled healthcare workers. With such huge upfront investments, it is not unusual to see unsatisfactory, and often negative, ROIs during the startup period. In that light, 2009 has been an exceptional year for AHD as we have a reported net profit of Taka 46,747,065.
system and review the process with the vendor before issuing a purchase order. Bills are paid according to the payment terms and VAT and other withholding taxes are deducted from bills as per law. As of date, there are no legal cases filed by the Hospital or filed against the Hospital by any supplier.
Board of Directors’ MeetingIt is the duty of every Director to attend Board of Directors’ meetings regularly, in order to acknowledge and make decisions relating to the operations of the company. The Directors hold 4 scheduled meetings and additional meetings as necessary.
Before each meeting the agenda items are clearly set by the Chairman of the Board together with other Directors and Chief Executive Officer. The Company Secretary prepares and sends notice of the meetings, together with
the agenda and supporting documents, to the Directors in advance to study information prior to the meeting.
Senior Management team members are invited to attend the Meetings to provide useful information and to directly obtain business strategies from the Directors which are to be implemented in the Company’s operations.
The Chief Financial Officer, as per the directives of the Securities & Exchange Commission (SEC) and the Head of Internal Audit, also attends the meetings as per invitation of the Board.
The Company Secretary is responsible for documenting and circulating the minutes of the meetings to the Board of Directors and to other relevant divisions for adoption.
2009 2008 2007
Revenue 1,701,948,841 1,348,084,223 1,286,287,304
Direct Operating Expenses 187,642,054 199,601,066 179,300,572
Hospital Supplies 671,322,056 548,772,806 531,600,226
Gross contribution 842,984,731 599,710,351 575,386,506
General and admin expenses 474,806,132 465,689,120 536,529,852
Marketing Expenses 24,295,197 31,500,041 30,878,434
Management fees 30,071,352 19,059,603 20,643,263
Finance Cost 82,664,627 114,079,313 192,800,642
Depreciation and amortisation 194,056,328 191,337,254 181,591,676
Other income 9,655,970 5,524,502 6,379,875
Net Profit/(Loss) 46,747,065 (216,430,477) (380,677,485)
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Election of DirectorsMr. Bhagwan W. Kundanmal and Mr. Nissanka B. Weerasekera, Chairman and Director respectively, among the Board of Directors of the Company retire as per article 91(2) of the Companies Act. 1994, being eligible, have offered themselves for re-election.
Appointment of AuditorsM/S. S. F. Ahmed & Company, Chartered Accountants, Auditors of the Company, retire at this Annual General Meeting and being eligible offer themselves for appointment as Auditors of the Company for the year 2010 and re-fixation of their remuneration.
Standards of ReportingThe financial statements have been prepared in accordance with Bangladesh Financial Reporting Standards (BFRS), as adopted by the Institute of Chartered Accountants of Bangladesh, and applicable provisions of the Companies Act, 1994. Our managenment accepts responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable
basis, in order that the financial statements reflect the financial operations of the company in a true and fair manner.
AppreciationThe Board of Directors would like to express their deep appreciation to the management and employees for their unrelenting commitment throughout 2009. We would like to place on record our thanks to our valued business partners for their support and loyalty. The above listed achievements are the result of the commitment and diligence of all our employees and business partners. In addition, the Board of Directors also expresses their gratitude to the shareholders of the company for their ongoing support as we continue to move forward with Apollo Hospitals Dhaka as a leading healthcare player within our society.
On behalf of the Board of Directors,
Bhagwan W. KundanmalChairman
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CorporateGovernanceInformationGood living begins with living well. At Apollo Hospitals Dhaka, good business begins with operating efficiency and effectiveness. The behind-the-scenes story to touching lives is that of a large multi-national corporation, with extensive global network, state-of-the-art facilities and world-class employees.
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Corporate Governance StatementCorporate Governance has been defined as the system by which companies are directed and controlled. The Board is accountable to the shareholders for ensuring that appropriate Corporate Governance measures are in place. It is imperative for the Company to maximize the shareholder's value and wealth. Though disclosure of Corporate Governance practices is not mandatory in Bangladesh, STS Holdings reports its activities so that investors can place their full confidence in the Company.
Corporate Governance is a blend of law, regulation, enforcement, and appropriate voluntary practices by companies that permit a company to attract capital, perform efficiently and generate long-term economic value for its shareholders, while respecting the interests of its stakeholders and society in general. The principal characteristics of effective corporate governance include: • Protection of the rights of minority shareholders • Transparency, including disclosure of relevant and
reliable financial and operational information; information on ownership and control; and information on the internal processes of management
• Responsible Directors capable of independently evaluating and approving the company’s strategy, business plans and decisions, independently hiring, monitoring and, when necessary, replacing management and consultants
This Statement outlines the main Corporate Governance Practices in STS Holdings Limited under the following headings:
• Board of Directors and their roles • Relationship with shareholders • Accountability and audit • Compliance with legal requirements • Human Resources Policy • Standards of Business Conduct
Board of Directors and their Roles:The present Board of STS Holdings Limited consists of 5 Directors, including one from Aureos South Asia Fund LLC (holds 9.09% shares of the Company).
A Code of Corporate Governance has been produced as a framework for Directors to the Board of STS Holdings Limited. It describes their roles and responsibilities and suggests a process for their continued development in order to ensure an effective ongoing contribution to our healthcare business. The Company fully supports establishment of the Code and is committed to ensuring that structured processes are used to direct and manage the business. We believe this enhances business ethics and corporate accountability with the ultimate objective of realizing long term shareholder value, while taking into account the interests of other stakeholders. The Code on Corporate Governance of the Company sets out the principles and best practices to be applied by the Company in its operations to achieve an optimal governance framework. The Board of Directors is responsible for protecting the rights and interests of all shareholders and is also accountable for the overall management of the Hospital. In addition to its legal and statutory responsibilities, the Board is responsible for the following:
• Reviewing and adopting a strategic business plan for the Company
• Overseeing the conduct of the Company's business to evaluate whether the Company is being properly managed
• Identifying principal risks and ensuring the implementation of appropriate systems to manage these risks
• Succession planning, including appointing, training, fixing the compensation of and where appropriate, and replacing senior management
• Reviewing the adequacy and the integrity of the Company's internal control systems and management information systems, including systems for compliance with applicable laws, regulations, rules, directives and guidelines
• Reviewing and approving the financial statements and accounting policies of the Company
• Establishing committees, including the Audit Committee and the Compensation Committee
• Determining the levels of authority to be delegated to committees of the Board
• Receiving and reviewing reports from committees of the Board
• Establishing and monitoring compliance with the
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Company's Standards of Business Conduct and other policies of the Company
• Establishing appropriate systems of corporate governance in the Company
• Considering and approving other matters specifically reserved for the attention of the Board
• Constantly guiding and assisting the Company in external Stakeholder Management
Relationship with ShareholdersGood corporate governance encourages dialogue with shareholders, and the Annual General Meeting encourages participation by shareholders. The Company continues to have regular communication with shareholders through quarterly updates of performance and at any other time when it believes it to be in the best interests of shareholders generally.
Accountability and AuditApollo Hospitals Dhaka values the internal control system and internal audit systems, and realizes that good internal control and audit systems can prevent potential losses, detect existing process errors, mitigate business and operational risk to ensure an acceptable confidence level, ensure accurate and reliable financial reports, and by doing so, help the Company achieve its goals. The Board of Directors has, therefore, assigned an audit team to review and comment on the effectiveness of the Company’s internal control system.
The Company set its vision, mission and operating policy, with emphasis on integrity and ethics, and has clearly defined both short-term and long-term business goals. It has also rewarded employees based on their performances in achieving those goals. In addition, the Company has created an organizational structure and work procedures that help tighten operational controls and prevent unauthorized asset use.
As part of the operational control system, the Company has established transaction approval authority and limits based on the nature and amount of the transaction. In cases of connected transactions or transactions with high potential for conflict of interest, the audit team has a duty to review the necessity and rationale of those transactions, which
must be approved by the management. The Company set up an Internal Audit Division, reporting directly to the Board of Directors, to ensure its independence. Its duty is to audit the internal control system, the risk management process, and corporate governance.
The audit objectives are to ensure that: • Operations in various processes are efficient and
effective enough to achieve the Company’s objectives • The financial reporting process has adequate and
proper controls to make financial data reliable • The management control process is sufficiently
effective to govern adherence to laws and regulations, and the Company’s policies and procedures
• The internal controls on work processes pertaining to patients’ safety are effective and adequate
Compliance with Legal RequirementsThe Board, through the Legal and Secretarial function, makes every endeavor to ensure that the business of the Company complies with the laws and regulations of Bangladesh and that the necessary controls are in place to ensure compliance with the policies of the Board. The Board of Directors requires that in all possible aspects, the Financial Statements are prepared in accordance with the Bangladesh Accounting Standards and requirements of Securities and Exchange Commission. Maximum possible information is provided to shareholders and full disclosure is made while ensuring appropriate treatment of sensitive information which could directly impact the Company.
Human Resources PolicyApollo Hospitals Dhaka actively encourages employee involvement in the Company's business through team briefings and regular meetings with various departmental employees. The Company's equal opportunity employment policy includes commitments to recruit people on the basis of their ability. Employee competence and commitment are the key drivers of the competitive advantage of any organization. The Management continues to put emphasis on staff development initiatives. Examples include Continuous Medical Education (CME) and Continuous Nursing Education (CNE) as part of the hospital’s staff development program. In-house management training and symposia are conducted regularly for all the employees to
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develop their soft skills. The Management is working steadily and continuously to maintain Apollo Hospitals Dhaka as a learning organization.
AHD is committed to providing excellent customer service for the patients and their attendants. The Management is ensuring that regular Customer Service Training programs are available throughout the year. Apollo Hospitals Dhaka declared 2009 – A Year of “Dedication, Commitment and Customer Service.” We have taken various actions including recognition and rewards for employees demonstrating excellent customer service. AHD has organized staff recreational and motivational programs to boost employee morale. A sampling of the activities includes the New Year Celebration with Corporate Theme, Employee Appreciation Program, Best Employee Recognition Program, Movie Nights, Cultural Nights, and other motivational and recreational opportunities.
Standards of Business ConductApollo Hospitals Dhaka is committed to achieving high standards of integrity in public life and in all of its business practices. This commitment is set out in the Standards of Business Conduct adopted by the Company in order to conduct the Company's business with honesty, integrity and transparency. It is critical to the continuing development of a business that is responsible, successful and sustainable in the long term. The Standards provide support and guidance to ensure that employee conduct meets the highest expectations, complies with the regulations applicable to the Company's business and that they act with integrity. The Standards are an integral part of the principles of corporate governance in STS Holdings and are designed to: • Ensure that decisions and judgments made by the
employees are lawful and comply with the ethical standards expected of a premier hospital in Bangladesh
• Set a tone and culture for the organization which will ensure it is regarded as a good corporate citizen
• Help employees who are faced with making appropriate judgments in the course of doing their work
• Assist managers in considering disciplinary matters where appropriate, giving reassurance to shareholders, customers and suppliers, as well as to Government and to other third parties with whom STS Holdings comes into business contact
• Seek to protect STS Holdings Limited from being subject to loss as a consequence of extortion, fraud, theft, bribery, corruption, insider dealing and market abuse, violations of anticompetitive and antitrust laws, money laundering, terrorism, or other forms of dishonesty
The Standards of Business Conduct are reviewed from time to time and updated to reflect what we see as developments and issues currently affecting corporate conduct, values, and expected standards.
Management TeamThe Board is the highest decision and policy making authority of the company to execute the directions. The Management Team is the executive leadership of STSHL and is charged with managing the affairs of the Company. The Management Team consists of the CEO and other key leaders within the company. The CEO is the leader of the Team. The Management Team endeavors to achieve the strategic goals and mission of the hospital as set by the Board of Directors. The Management Team meets on at least a weekly basis to monitor the operational and business performance of the Hospital.
The following is the major scope of work by this committee:
• Set and review vision, mission, strategies, and organogram of the Hospital and its business units
• Make strategic and tactical decisions relating to medical services, business, and operations
• Analyze business and financial performance of the Hospital
• Review and discuss policies and procedures of the Hospital and make changes or recommend to the Board as appropriate
• Finalize periodic employee performance appraisal and promotions
• Analyze market opportunities and internal service quality
• Discuss and agree on budget development for Board review and approval
• Analyze monthly business and financial performance
• Review and analyze monthly performance of each business unit
• Manage and develop human resources
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Control Environment in Apollo Hospitals DhakaIn implementing the right Governance in STSHL, the Board and the Management Team ensure the following:
a) Business Plan & Forecast The Management prepares the Strategy and Business
Plan each year which is approved by the Board. Such plans are prepared and modified from time to time considering the forecast and actual market situation.
b) STSHL has strong financial reporting procedures in line with the requirements of the International Financial Reporting Standard (IFRS), Bangladesh Standards of Accounting (BSA) and other local legislations. In 2009, STSHL completed total automation under the HIS model (Hospital Information System). Financial reports are generated from this automated platform.
c) Management of Assets STSHL is continuously investing in healthcare services
in line with the business plan. To maintain accountability and proper utilization of assets, it complies with clearly defined and approved policies starting from procurement, recording, reporting, and disposal of assets. To ensure proper safeguarding of assets, physical verification of all assets is conducted periodically and all risk relating to these assets is appropriately insured.
d) Internal Control STSHL has established an effective internal control
system to maintain accountability, integrity and security of its assets, as well as information. The internal control system guides every member of the Hospital with regard to processing of every transaction, authority level for approval of the transaction, documentation, access to the system and related responsibilities. As the business evolves, amendments and improvements are also brought to the internal controls on a regular basis.
e) Statutory Audit Statutory Audit of the Company is governed by the
Companies Act, 1994 of Bangladesh. The Companies Act explicitly provides guidelines for the appointment, scope of work and retirement of auditors and fixes their remuneration in the Annual General Meeting. The Shareholders appoint Auditors upon evaluation in the Annual General Meeting. S. F. Ahmed & Co. Chartered Accountants is the Statutory Auditor of the Company. In addition to the annual audit, the auditors carry out interim audits and review the quarterly financial reports of the Company.
f) Compliance with Rules and Regulations of the Country
As the leaders of a compliant Company, the Management Team of AHD is accountable not only to its Board and Shareholders, but also to various external regulatory bodies. These regulatory bodies review AHD and its activities and monitor our standard practices in comparison with those that are generally applicable for healthcare industry.
g) Internal Auditor The Internal Audit Department is responsible for
monitoring the operational activities of the Company in light of the policies and procedures set by the Board of Directors and the Management Team for ensuring effective internal control, transparency and accountability in the organization. On the basis of reports from the Internal Auditor, actions are taken to bring development and improvement in the processes and polices.
h) Business Continuity Management (BCM) A Business Continuity Management (BCM) process
has been adopted in STSHL for identifying and addressing the potential risk and threats related to environmental, technical and operational areas of the company. In this process, after an assessment of the probability and impact of the potential risk, detailed plans have been prepared in order to mitigate and manage the risks and to secure the continuity of the business in the long run.
i) Code of conduct STSHL has adopted a clearly defined Code of Conduct,
approved by the Board of Directors for securing good
Corp
orat
e G
over
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e In
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n
45
business ethics in all aspects of the company’s activities. The Code of Conduct is clearly communicated to all the employees, and is strictly enforced.
Communication for Transparency and Accountability Apollo Hospitals Dhaka believes that all stakeholders should have access to complete information regarding the business and financial performance and position of the Company to enable them in accurately assessing its future potential. The Annual Report, including audited financial statements, is available for review by the shareholders and the other stakeholders.
Decision Making ProcessThe Board is involved in the decision making process on a continuous basis. The degree of involvement is variable depending upon the extent of delegation of authority from the top down and upon the reporting requirements for accountability from the bottom up. These aspects of governance are shared by the Board of Directors, Executive Management, operational participants and others in fulfillment of the common goals that converge in increasing the benefits for all stakeholders. To this end, the entire corporate governance effort is committed to good governance practices and ethically and morally acceptable standards.
Audit CommitteeThe following are the main objectives of the Audit Committee of the Board:
• To assist the Board in fulfilling its oversight responsibilities, including implementation of the objectives, strategies and overall business plans set by the Board for effective functioning of the Hospital
• To review the financial reporting process, the system of internal controls and approaches to management of financial risk, the audit process, and the Hospital processes for monitoring compliance with laws and regularities and its own code of business conduct
Environmental Policy We have established environmental, health, and safety policies that comply with government regulations and world standards, and ensure that staff and contractors are properly educated and trained in these policies. Every staff member and contractor on the Hospital's premises is expected to follow the Hospital's environmental policies and report any environmental, health or safety concerns to the management for appropriate actions. We have minimized the environmental impact of the hospital's operations on the neighboring communities due to such potential hazards as infectious waste management, etc. We respect the use of natural resources by participating in energy conservation initiatives and supporting the recycling of materials. We conduct stringent audits and reviews of the Hospital's compliance with our environmental policies and strive to continuously protect and improve the environment.
46
ACCIDENT & EMERGENCYDr. Borhan Uddin AhmadMBBS (DMC), MRCP (UK)Coordinator & Senior Consultant
ANAESTHESIAProf. (Dr.) Kazi Mesbahuddin IqbalMBBS, DA, FFARCS (Ireland), FRCA (UK), FCPSCoordinator & Senior Consultant
Prof. (Dr.) Salim M JahangirMBBS, FCPS (Anaesthesia)Senior Consultant
Dr. Lutful AzizMBBS, PhD (Japan), FCPSConsultant
Dr. Md. Azharul IslamMBBS, FCPS (Anaesthesia)Senior Consultant
CRITICAL CAREProf. (Dr.) Salim M JahangirMBBS, FCPS (Anaesthesia)Senior Consultant
Dr. Anil Kumar GuptaMBBS, MD (Anaesthesia)Consultant
CARDIOLOGYProf. (Dr.) Md. Shahabuddin TalukderMBBS, D. Card. (DU), FCPS (Med.)Coordinator & Consultant
Dr. Shams MunwarMBBS, MRCP (UK), D. Card. (London)Senior Consultant
Dr. A Q M RezaMBBS, MD (Cardiology)Consultant
Dr. Anupam LalMBBS, MDConsultant
ENTDr. Saket AggarwalMBBS, MS, DNB (ENT)Consultant
ENDOCRINOLOGYDr. Abdul Mannan SarkerMBBS, DEM (DU), MD (Endocrinology)Coordinator & Consultant
FERTILITY CENTREDr. Mrinal Kumar SarkerMBBS, DGO, FCPS, Fellow Reproductive Medicine &Assisted Reproductive Techniques,KKIVF (Singapore) Coordinator & Senior Consultant
GASTROENTEROLOGYDr. Lutful L. ChowdhuryMBBS, MRCP, FRCP, FCGE (UK)Coordinator & Senior Consultant
Dr. S K SinhaMBBS, MD (Med.), DM (Gastroenterology)Consultant
GENERAL AND LAP SURGERYProf. (Dr.) Anisur RahmanMBBS. M.Sc (Canada), FCPS (Surgery)FRCS (Glasgo, UK)Coordinator & Senior Consultant
Dr. G P N VarmaMBBS, MS (Gen. Surgery), DNB,FRCS (Glasgow), DLS (France)Senior Consultant
CARDIOTHORACIC ANAESTHESIADr. Dutta PrabhatMBBS, MD, PDCC (Cardiac Anaesthesia)Coordinator & Consultant
CARDIOTHORACIC SURGERYDr. Attawar Sandeep GMBBS, MS (Gen. Surgery)M.Ch. (Cardiothoracic Surgery)Chief Coordinator & Senior Consultant
DERMATOLOGYDr. Jasmin ManzoorMBBS, DDSc (UK), MDSc (USA)Clinical Fellowship in Advanced Dermatology & Wound Healing (USA)Coordinator & Senior Consultant
Professor Lt. Col. (Retd.) Dr. Q M Mahabub UllahMBBS, DDV, MD, Trained in Laser Surgery (USA)Senior Consultant
DIAGNOSTIC & INTERVENTIONAL RADIOLOGYProf. Brig. Gen. (Retd.) Jahangir AlamMBBS, MCPS, FCPSCoordinator & Senior Consultant
Dr. Bidyut Kumar SahaMBBS (India), MD (India), Post Doctoral Trainingin Neuro Cardio Radiology (AIIMS, Delhi)Consultant
Dr. Atiya HudaMBBS, FCPS (Radiology)Consultant
Dr. Roy GeorgeMBBS, FRCR (UK), DNB (RD)M. Med (Singapore), DMRDConsultant
Our Consultants;Our Everyday Heroes
Our
Con
sult
ants
; Our
Eve
ryda
y H
eroe
s
47
INTERNAL MEDICINEDr. Azizul HasanMBBS, MRCP (UK), MRCP (IRE), D. Card.(Austria), DTCD (Wales), FAMS (Austria)Coordinator & Senior Consultant
Dr. Md. Sadiqul IslamMBBS, FCPS (Med.), Post Graduate Training in Rheumatology (England)Senior Consultant
Dr. Abdullah Al MamunMBBS, FCPS (Med.), MACP (USA)Senior Consultant
Dr. Sharad Dayadhan SonawaneMBBS, MD (Med.) Consultant
KNEE CENTREDr. M AliMBBS, MS (Ortho.) Fellow (Sports Medicine)Consultant
LAB SERVICESProf. (Dr.) Tareak-Al-NasirMBBS, M. Phil (Pathology), FRCP (Edin)D. Med (Australia), Fellow Immunology (UK)Coordinator & Senior Consultant
NEONATOLOGYDr. Abu Sayeed Mohammad IqbalMBBS, FCPS, MD, Fellow (Singapore)Neonatal Training in Singapore & AustraliaCoordinator & Senior Consultant
Dr. M Quamrul HassanMBBS, FCPS (Ped.)Senior Consultant
Dr. Kazi Naushad-Un-NabiMBBS, DCH (Ireland), MRCP (UK)Senior Consultant
NEPHROLOGYDr. Krishna M SahuMBBS, MD (Med.), DNB (Nephrology),DM (Nephrology), Fellowship (Canada)Coordinator & Consultant
NEUROSCIENCENeurosurgery
Prof. (Dr.) Mathew J. ChandyMBBS, MS (Gen. Surgery), M.Ch. (Neurosurgery), MNAMS, FICS, FRSM, FAMSCoordinator & Senior Consultant
Dr. Md. WaheeduzzamanMBBS, FCPS (Surgery)Senior Consultant
Dr. S M Qumruz ZamanMBBS, MS, M.Ch. (Neurosurgery)Consultant
Neurology
Dr. Alim Akhtar BhuiyanMBBS, DTM & H (UK), MD (USA),Board Certified in Psychiatry & Neurology (USA), Post Doctoral Fellowship in Epilepsy (USA)Coordinator & Consultant
Dr. Sandip Kumar DashMBBS, MD (Med.), DNB (Med.), DNB (Neuro.) MNAMSConsultant
OBSTETRICS/GYNAECOLOGYDr. Monowara BegumMBBS, FCPS (BCPS), MS (Obs./Gynae.), Trained in Advanced Laparoscopic Surgery (India)Coordinator & Senior Consultant
Dr. Gulshan AraMBBS, MCPS, MS (Obs./Gynae.), FCPS, Trained in Advanced Laparoscopic Surgery (India)Consultant
Dr. Mrinal Kumar SarkerMBBS, DGO, FCPS, Fellow ReproductiveMedicine & Assisted Reproductive Techniques, KKIVF (Singapore) Senior Consultant
Professor Dr. Maliha RashidMBBS, FCPS (Obs./Gynae.)Trained in Laparoscopic Surgery (Kerala, India)Senior Consultant
Dr. Ritu Prashant AgrawalMBBS, MD (Obs./Gynae.)Consultant
OPHTHALMOLOGYDr. Sheeba KhanMBBS, MS (Ophthalmology)Coordinator & Senior Consultant
ORTHOPAEDICS Dr. Nandkumar KatakdhondMBBS, MS (Ortho.), SICOT Diploma, Coordinator & Consultant
Dr. Prashant AgrawalMBBS, MS (Ortho.), DNB (Ortho.), A. O. Fellow(Germany), SICOT Diploma, ICRETT (USA)Senior Consultant
Dr. M AliMBBS, MS (Ortho.) Fellow (Sports Medicine)Consultant
PAEDIATRICSDr. M Quamrul HassanMBBS, FCPS (Ped.)Coordinator & Senior Consultant
Dr. Pinkoo AttawarMBBS, D. Ped., MD (Ped.), USMLESenior Consultant
Dr. Abu Sayeed Mohammad IqbalMBBS, FCPS, MD, Fellow (Singapore)Neonatal Training in Singapore & AustraliaSenior Consultant
Dr. Kazi Naushad-Un-NabiMBBS, DCH (Ireland), MRCP (UK)Senior Consultant
PAEDITRIC SURGERY AND PAEDIATRIC UROLOGYProf. (Dr.) Md. Shahid KarimMBBS, FCPS, FICS (USA)Coordinator & Senior Consultant
PHYSICAL MEDICINE & REHABILITATION Dr. Md. Mohiuddin ArafMBBS, MD (AIIMS, India), Trained in Advanced Pain Management and Neuro-Rehab (England)Head of Physical Medicine & Rehabilitation
PLASTIC, RECONSTRUCTIVE & COSMETIC SURGERYDr. AKM Fazlul HaqueMBBS, FRCS (Edin)Coordinator & Consultant
RESPIRATORY MEDICINEDr. Chandra Prakash DokwalMBBS, MDCoordinator & Senior Consultant
RHEUMATOLOGYDr. Md. Sadiqul IslamMBBS, FCPS (Med.), Post Graduate Training in Rheumatology (England)Senior Consultant
Dr. Abdullah Al MamunMBBS, FCPS (Med.), MACP (USA)Senior Consultant
UROLOGYDr. Waheed ZamanMBBS, MS, M.Ch. (Uro.), DNB (Uro.), MNAMSCoordinator & Senior Consultant
As on June 01, 2010
Management
Profile of the Management TeamApollo Hospitals DhakaSmart, knowledge-based and experienced management professionals have kept Apollo Hospitals Dhaka well positioned to weather difficult economic times and maintain the company's strategic direction.
From Left to Right:Mr. Hasnat Shahid Ferdous - General Manager, Health Care Plan; Mr. A. K. M. Nazrul Haider - General Manager, Information Technology;Mr. Keerthi Weragoda - General Manager, Hospitality Service; Dr. Mohd. Naseem Siddiq - Director, Medical Services;Mr. Michael S. Potter - Chief Executive Officer; Dr. Shagufa Anwar - General Manager, Business Development;
Mr. K i shwar Imdad - Gene r a l Manag e r , Opera t i ons ; Mr. Imam Has san - Gene r a l Manag e r , F inance ;Dr. Monette B. Brombuela - Chief Nursing Officer; Mr. Shahjahan Majumder, FCA - Chief Operating Officer;Mr. Iftikhar Husain - General Manager, Supply Chain & Facility Management; Mr. Kazi Rakibuddin Ahmed - Director, Human Resources
ManagementDiscussion
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Apollo Hospitals Dhaka is a very special place, over and beyond its legacy of providing excellent care. It remains dedicated to a mission that values the sanctity of life and places the highest priority on treating every individual with dignity. It has touched more and more lives, providing medical excellence with human touch, and has emerged as a pioneer in its class. From the physicians and nurses to our leadership team and other professionals, we all share a single-minded approach to provide care for the physical, emotional, and spiritual needs of our community. We succeeded in executing our expansion strategy to grow our network and strengthen our position as a leading provider of value-based integrated healthcare in Bangladesh - always a step ahead in terms of advanced and latest technology; the first internationally accredited JCI Hospital setting the highest standards for the country's private healthcare systems.
Operating Performance
During the year our revenue was Taka 1,702 million as compared to Taka 1,348 million in 2008. The actual revenue also
exceeded the budget by Taka 114 million and was 7% higher. In 2009, increased revenue was Taka 354 million compared
to last year, making it 26% higher. Gross contribution increased by Taka 243 million, i.e. 41% higher than the previous year.
The gross margin also increased by 50% this year against 45% in 2008. Net profit increased by Taka 263 million over the
last year. There was budgeted loss of Taka 7.50 million, but we actually finished with a net profit of Taka 46.75 million. The
operating profit increased from Taka 88.99 million to Taka 323.47 million in 2009.
Infrastructure Facility
Apollo Hospitals Dhaka is presently operating with 304 beds. With an expandable capacity of 450 beds, this tertiary
care hospital’s mission is to provide high quality international standard healthcare that will meet the needs and exceed
the expectations of the people of Bangladesh. We now have a complete dialysis unit with private rooms and lithotripsy
service (treatment of kidney stones); we have 71 ICU beds, 12 Cardiac ICU beds, 96 Standard beds, 60 Semi private
beds, 24 Single private beds, 26 Deluxe beds, 5 Suite beds, and 10 other category beds. Our Emergency Department
has 8 dedicated emergency beds and 21 beds for day care facility. The state-of-the-art Radiology Department includes
1.5 Tesla MRI, 64 Slice CT, Colored Doppler, Ultrasound, and Gamma camera, creating the most modern radiology
service in the country, with equipment that is faster and capable of conducting a wide range of examinations with a
higher degree of detail. This is in addition to the EEG, EMG, ECG, Stress test, and pulmonary function test, matched
by the state-of-the-art Laboratory services.
54
Segment Overview
OPDThe Out-patient Department of Apollo Hospitals Dhaka consists of 5 Centers of Excellence and 5 Strategic Business Units with 27 specialties and 55 Consultants. In terms of OPD patients, a growth of 17.72% was achieved in 2009 as compared to 2008. The average monthly OPD visit was 15,469. The revenue also showed a growth of Taka 135.45 million, which is 33.27% higher.
RegistrationIn 2009, the number of new registrations increased by 6.85 % compared to last year. The average per day registration in 2009 was 168 as compared to 157 in 2008.
2008 2009 Variance
OPD Visits 157,688 185,630 17.72%
020,00040,00060,00080,000
100,000120,000140,000160,000180,000200,000
OPD Visits
2008 2009
157,688185,630
2008 2009
Registration 47,098 50,322
47,098 50,322
0
10,000
20,000
30,000
40,000
50,000
60,000
Registration
2008 2009
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AdmissionIn 2009, the number of admitted patients increased by 15.66% in comparison to 2008, whereas admission through OPD increased by 20.91% and through ER by 10.49%.
10,193
11,789
0
2,000
4,000
6,000
8,000
10,000
12,000
Admission
2008 2009
5,056
6,113
5,1375,676
0
1000
2000
3000
4000
5000
6000
7000
Admission from OPD Admission from ER
2008 2009
56
Among the total admitted patients of 11,789 in 2009, 85% were adults and 15% were from the pediatric age group.
Bed OccupancyOn an average, 53.16% beds were occupied in 2009, which increased by 15.14% in comparison to 2008. Deluxe and Single Private Rooms always maintained the above average occupancy, whereas Suite, Semi-Private and Standard beds’ occupancies were below the average line.
Admitted Patient in 2009
Male, 5,492 47%
Pediatric, 1,78515%
Female, 4,512 38%
Female Child 7596%
Male Child 1,0269%
50,38558,010
0
10,000
20,000
30,000
40,000
50,000
60,000
Bed Occupancy
2008 2009
2008 2009
Bed Occupancy 50,385 58,010
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In 2009, revenue of Taka 233.21 million was earned from bed charges, which is 18.31% higher than that of the previous year 2008.
197.11
233.21
0
50
100
150
200
250
Revenue from Bed Charge (BDT. In M)
2008 2009
2008 2009
Revenue from Bed Charge BDT. In M 197.11 233.21
37.06
33.32
30.00
51.28
9.27
68.25
3.61
28.29
32.73
14.13
49.72
9.58
59.36
3.31
8.77
0.59
15.88
1.56
(0.31)
8.89
0.30
Standard Bed
Semi Private
Single Private
Deluxe
Suite
CU
Other
Grand Total 232.79 197.11 35.67
Bed Category-wise Revenue2008 Vs 2009 (In Million BDT)
Bed Category 2009 2008 Variance
58
The average occupancies of critical and specialized areas were as follows:
Average Occupancy of Critical Area80%
70%
60%
50%
40%
30%
20%
10%
0%
HD
U, 7
8.35
%
LD
R, 7
4.99
%
HD
U, 7
8.35
%
NE
O-L
2, 5
6.31
%
LR
(G
W),
51.
18%
SIC
U, 5
0.18
%
CC
U, 4
6.60
%
CT
IC
U, 4
0.83
%
PC
CU
, 34.
89%
NE
O-I
CU
, 19.
81%
ICC
U, 1
3.65
%
Emergency DepartmentThe overall statistics of the Emergency Department is shown below:
In 2009, the number of emergency patients increased by 7.48% in comparison to 2008. Admission from Emergency has also increased by 10.49%. However, miscellaneous procedures in Emergency decreased by 10.67%.
2008
9,573
5,137
3,330
1,807
2,470
456
1,452
492
12
46
2009
10,289
5,676
3,490
2,186
2,537
715
1,297
676
19
45
Total Patients in ER
Admission from ER
Shifted to wards
Shifted to ICU, CCU, HDU
Discharge from ER
DAMA
Miscellaneous
MLC
Death in ER
Brought in death
12,000
10,000
8,000
6,000
4,000
2,000
0Total Patients in ER
9,573
2008 2009
10,289
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Master Health CheckupIn MHC, the number of cash paying patients increased by 2.94% in 2009, but the number of corporate patients decreased by 1.24% in comparison to 2008. The growth of MHC patients was low due to limited capacity to accommodate the patients with the existing logistic support.
Emergency Patient Ratio - 2009
Shifted to wards
0.62%
13%
7%25%
21%
34%
Shifted to ICU, CCU, HDU
Discharge from ER
DAMA
Miscellaneous
Death in ER
Brought in death
0.18%
0.44%
The ratio of Emergency patients in 2009 was as follows:
2008 2009
Cash Patient 3,167 3,260
Corporate Patient 890 879Total Patients 4,057 4,139
6,000
4,000
2,000
0
4,1394,057
MHC
2008 2009
CorporatePatient
0 1,000 2,000 3,000 4,000
Cash Patient
2008 2009
60
Biochemistry
Clinical Pathology
Hematology
Histopathology
Microbiology
Transplant Immunology
Total Test Done
2008
321,768
32,178
62,539
3,988
26,902
7,140
454,515
2009
439,673
42,014
76,366
5,061
36,561
9,038
608,713
Variance
36.64%
30.57%
22.11%
26.91%
35.90%
26.58%
33.93%
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Department-wise Yearly Sales
Biochemistry ClinicalPathology
Hematology Histopathology Microbiology Transplant &Immunology
2008 2009
Lab MedicineIn 2009, the highest number (605,587) of tests were done in our Laboratory, which contributed a positive growth of 33.93% in comparison to 2008. The table below shows the resulting growth of various departments:
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Radiology & ImagingIn 2009, a total of 77,779 scans were conducted in different modalities, which provided a positive growth of 17.92% in comparison to 2008. The table below shows the contribution of various modalities towards this growth:
DialysisIn 2009, the overall number of dialysis procedures increased by 31.93% compared to 2008. Noticeably, C+ dialysis increased by 86.48% and single use dialysis increased by 32.95%. However, CRRT and HD portable dialysis showed a negative growth of 46.67% and 33.33% respectively.
X-RAYTotal Scan Done
CT SCAN MRIULTRASOUND
40,62965,958
2008 4,772 4,250 16,307
48,88577,779
2009 5,213 4,273 19,408
20.32%17.92%
Variance9.24%0.54%
19.02%
CRRT (24 Hours Session)Dialysis With Single Use DialyserHbs Ag+Ve DialysisHCV Dialysis With Single Use DialyserHD PortableCapd-Exchange (Per Exchange)Total
2008 75 4,662 194 614 495 776,117
2009 40 6,198 226 1,145 330 1318,070
Variance-46.67%32.95%16.49%86.48%
-33.33%70.13%31.93%
Modality-wise Yearly Scan50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0CT SCAN MRI ULTRASOUND X-RAY
2008
2009
The chart above shows comparison between the number of scans (modality wise) in 2008 and 2009.
62
Blood BankThe overall Blood Bank services in 2009 increased by 7.15% as compared to last year (2008) due to the increased amount of blood donation and related investigations.
CAPD
HD
HCV
HBS AG+
SINGLE U
SE
CRRT
13177
330495
226
6,1984,662
194
40
0 1000 2000 3000 4000 5000 6000 7000
75
1,145
Yearly Dialysis Procedures
614
2009
2008
OPDIPDTotal Dialysis Procedures
2008 4,822 1,2956,117
2009 6,648 1,4228,070
InvestigationBlood DonationBlood Component IssueCross Match ServicesTotal
200842,6463,2625,0245,241
56,173
200946,5743,3524,9725,292
60,190
Variances9.21%2.76%
-1.04%0.97%7.15%
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0OPD IPD
1,295 1,422
4,822
6,64820082009
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CardiologyIn 2009, CAG was the main procedure done in the Cath Lab, representing 75% of the work load. This number increased by 11.78% in 2009 as compared to 2008, followed by PCI (20%), which increased about 17.75%. The total Cath Lab procedures increased by 13.04% in 2009 compared to the previous year.
CAGPCITPIPPIOthers
Total Cath Procedures
20081,129
2932838
1,488
20091,262
345203916
1,682
2009
2008
0 10,000 20,000 30,000 40,000 50,000
Investigation
Blood Donation
Blood ComponentIssue
Cross MatchService
5,2925,241
4,9725,024
3,3523,262
46,57442,646
2009
2008
0 200 400 600 800 1,000 1,200 1,400
Others16
3938
2028
345293
PPI
TPI
PCI
CAG
1,262
1,129
64
Surgery PerformanceIn terms of the number of surgeries, the Obstetrics & Gynecology Department performed the highest number in 2009, with 16% growth compared to the previous year. This number was followed by Orthopedics, Urology and Plastic Surgery departments with 53%, 14% and 110% growths respectively. However, in terms of revenue, Obstetrics & Gynecology Department earned 4% less than that of the previous year due to variation in packages. On the other hand, Plastic Surgery, Orthopedics and Urology departments gained substantial growth (105%, 62% and 45% respectively) in terms of revenue. The growth of the Orthopedics Department was also remarkable, i.e. 53% in number and 62% in revenue. The joining of another orthopedic surgeon in 2009 substantially contributed to the growth performance of orthopedic surgeries. However, comparing with the highest revenue, the Cardiothoracic Surgery Department showed only 7% growth in revenue while the number of surgeries remained almost the same. High value surgeries like High Risk CABG were performed more in 2009. In contrast, low value surgeries like varicose vein surgery were performed more in 2008.
The chart below shows the different procedures done in our Cath Lab
CABGObstetrics & Gynecology Surgery
Urology SurgeryOrthopedic SurgeryNeuro SurgeryLaparoscopic SurgeryGeneral SurgeryENT SurgeryPlastic SurgeryPediatric SurgeryKidney Transplant Ophthalmology SurgeryChest, Thorax & Vascular SurgeriesDental SurgeryTotal
SURGERIES Number
414
1,458
753793426173496553705249
679
1811
6,133
Revenue89,012,946
29,794,422
15,823,51813,113,87411,066,3139,466,6725,790,3534,975,9024,241,2902,213,6601,805,000
489,175
414,75081,400
188,289,275
Number424
1,261
660519364160446432337246
7112
1373
5,054
Revenue83,544,105
31,047,463
10,876,2228,077,5369,162,1958,857,7485,238,0263,857,1542,067,0752,153,5352,434,992
824,460
395,860194,000
168,730,370
Number(10)
197
93274621350
121369
3(1)
(33)
5(62)
1,080
Revenue5,468,841
(1,253,041)
4,947,2965,036,3381,904,118
608,924552,327
1,118,7482,174,215
60,125(629,992)(335,285)
18,890(112,600)
19,558,905
2009 2008 Variance
Cath Lab Procedures Done in 2009
PCI, 345, 20.51%
AICD, 1, 0.06%
PTMC, 5, 0.30%
PP, 2, 0.12%CRT, 1, 0.06%
ASD DC, 3, 0.18%
Pericardial Taping, 3,0.18%Bi-ventricularPPI, 1, 0.06%CAG, 1262, 75.03%
TPI, 20, 1.19%
PPI, 39, 2.32%
Other, 16, 0.95%
Surgery: Comparison between 2008 and 2009
Man
agem
ent
Dis
cuss
ion
65
PharmacyIn 2009, the sales trend of the Pharmacy was quite good and showed an incessant growth rate. The overall Pharmacy sales from 2008 to 2009 showed a rapid increase of 30.59%. The Pharmacy contributed to BDT 61.64 million more revenue in 2009 as compared to 2008.
In comparison to 2008, In-Patient Pharmacy Sales reached to BDT 146.10 million, which is 22.96% higher than the previous year. Out-Patient Pharmacy sales achieved 36% growth (followed by Vaccination Center), which topped the incremental list and reached to 100.74%, setting a landmark in all previous years’ sales records.
90.00
80.00
70.00
60.00
50.00
40.00
30.00
-
20.00
10.00
DentalVascular
Opthalmo
KidneyPediatric
PlasticLaparoNeuro
OrthoGynaeCABG
Uro
General
ENT2008
2009
Revenue from Surgery (In Million BDT)
2009 2008
89.0
1
83.5
4
31.0
5
10.8
8
8.08 9.
16 8.86
5.24
3.86
2.07 2.15 2.
43
0.82 0.40 0.19
29.7
9
15.8
2
13.1
1
11.0
7
9.47
5.79
4.98 4.24 2.21
1.81
0.49 0.
41 0.08
2008 2009
Pharmacy Sale (BD Taka Million)
2009
2008Jan Feb Mar Apr May Jun Jul Dec
30
20
10
0Aug Sep Oct Nov
16.2
6
16.8
4
22.2
5
20.6
4
23.3
8
20.5
5
23.6
4
26.6
5
21.0
2
23.0
4
22.5
4
26.3
5
17.1
15.8
6
16.2
8
14.5
3
16.6
7
15.7
9
19.2
6
20.3
9
16.4
5
15.7
8
17.3
1
15.8
9
66
Future OutlookIt has only been five years since Apollo Hospitals Dhaka began to touch lives in Bangladesh. We grow stronger with each life that we touch. We perform more and more miracles everyday. Yet, we think of ourselves as a new born, because there’s no limit to how many lives we can touch.
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Apollo Hospitals Dhaka, with continuously increasing patient number, has set up bigger plans for expansion of its services and facilities to cater to the needs of its patients. Our goal is not only to reach out to the premium segment patients in full swing with our escalating middle-class patients, but also addressing developing and growing niche therapeutic areas with a view to contribute to a bigger market for the hospital. Our aim is to keep these old and new patients satisfied with our services and facilities, in light of which we are going to expand our complex and incorporate more numbers of advanced equipments and other facilities.
Multi-disciplinary hospital in ChittagongApollo Hospitals Dhaka is planning to add a multi-specialty hospital in Chittagong to make “Group of Hospitals” concept turn into a reality. From Chittagong Development Authority (CDA), the required land has been already bought by the sponsor group STS, who will invest around BDT 2.5 billion as part of its capital expenditure plan.
The facility will be located approximately 3 miles north of central Chittagong. The main road is a four lane, 100 feet wide divided thoroughfare. The site is a 1.5 acre irregular rectangle with the southwest corner of the plot forming the radius of the exit road from the main thoroughfare. The Hospital will be pioneer in modern, international standard driven, health care services in Chittagong. It will be an advanced clinical setting for skilled practitioners, providing them access to a multi-specialty hospital with both out-patient diagnostics and treatment on a primary and secondary specialty level. The linkage with Apollo Hospitals Dhaka will provide an avenue to transfer patients with a higher level of acuity to the Tertiary level sister hospital in Dhaka. The project contemplates a 450 bed general medical/surgical hospital with emergency services, outpatient clinic space, and shared diagnostic and treatment areas in an attractive facility which meets Joint Commission International requirements as well as local regulations. In the initial operational phase, it is anticipated that a minimum of 250 in-patient beds will be operational with shell space for an additional 200 beds.
This hospital will be built keeping the specialties and facilities of Apollo Hospitals Dhaka as a model. All super specialties of Medicine and Surgery supported by
ultramodern technology and skilled nurses will make it a showcase of patient care for the patients of Chittagong, Cox’s Bazar, Feni, Maizdee and Comilla. For uninterrupted power supply, 2 Gas Generators having 1500 MW capacity along with 1 standby generator of 75 MW capacities will be installed. Integrated IT systems will be implemented to run the fully automated hospital with effective HIS (hospital information system) and HMS (hospital management system) modules. The project work starting from July 2010 will be complete by the same time period in the year 2012. The development work relating to the surrounding land including piling, construction of boundary walls, internal road construction and interior and exterior lighting will also start in no time.
Medical ICUApollo Hospitals Dhaka plan to enrich its Critical Care services by adding 18 more Medical ICU beds to its existing 86 ICU beds, delivering a volume of 104 ICU beds service in total. This Medical ICU will aim to provide state-of-the-art specialized personal care for every critical patient, supervised by trained ICU doctors and nurses 24 hours a day, 7 days a week. The enhanced Medical ICU will provide the following services for its critical care patients:
• Central monitoring system
• Hi-tech vital sign monitor for every patient
• Invasive & non invasive haemodynamic monitoring system
• Syringe & infusion pumps for metered medications and accurate volume infusions
• Ultramodern ventilator with monitoring facilities for patient's own breathing effort
• Instant Arterial Blood Gas analysis
• Instant electrolyte assessment
• Portable X-ray machine within ICU
• Bed side Echocardiogram and Ultrasonogram
• Bedside Continued Renal Replacement Therapy (CRRT) for moderate to severe kidney failure patients
• Intra Aortic Balloon Pump (IABP) facility for maintaining blood pressure in circulatory failure patients
• Total Parenteral Nutrition (TPN) for patients who are unable to have nutrition by mouth
68
In-patient facility expansion on hospital top floorIn Level 10 of Apollo Hospitals Dhaka, 36 new Single Deluxe rooms are going to be added with homely and posh exterior and matching interior for patients who will have ‘room with a view’ to augment their hospital stay to a greater level of comfort. The floor will have its separate pantry for immediate food services catering.
Independent Septic OT in Emergency and Accident Department Inside the Emergency Department, an active and running Septic OT will be made operational with proper manning in regular and odd hours for emergency operation on patients having multiple trauma and multi systemic injuries, especially victims of road traffic accidents.
Expansion of Original Hospital Complex in Bashundhara, DhakaTo increase services for its continuously growing patients, Apollo Hospitals Dhaka is going to expand its original complex in Bashundhara, Dhaka. The new building on an approximate area of 15,000 sqft will have fifteen stories along with at least three to four stories of basement car parking facility.
Out-Patient Services magnifiedThe new building will have all OPD specialties with expanded and modernized gamut, ambience, facilities and amenities; i.e. the existing OPD will shift to the new building from the current hospital building. The OPD building will inter-connect to the existing hospital building for timely routing of patients to in-patient area for admission, or for other procedures and surgeries.
OPD super specialty clinics like Growth Clinic, Well ness Centre for babies, Knee Centre, Breast Clinic, Geriatric Centre, and others will start as catchments for the hospital and also as concentrated care service for identified patients.
Oncology OPD In Bangladesh, about 150,000 cancer patients out of the present 1.2 million die annually; about 200,000 cancer patients are added to this overwhelming size every year.
Cancer treatment can be given to only 20,000 to 25,000 patients in a year, at present; which is also hampered by a shortage of Oncologists, as the number in the country is only 100. The existing medical facilities in the area of cancer are far from satisfactory.
In the new extension complex Apollo will initiate Oncology OPD, which will have Linear Accelerator and Brachy Therapy facilities with soothing amenities to make the patients comfortable at their times of distress. A separate entrance will also be designed for these patients visiting the Oncology Centre to make them more at-ease and undisturbed.
Master Health Check-upStanding on the ground of having increasing customer awareness and demand for having preventive health screenings; AHD has decided to dedicate an independent area for MHC with necessary basic facilities available on its own. The aim is to make the turnaround faster, more efficient and friendlier for clients. The expansion aims to better cater our increasing MHC patients and attract them for additional MHC packages.
Diagnostic ServicesEnlarged and extensive Lab and Diagnostic & Imaging will be started, which will be bigger and having more number of state-of-the art machinaries and equipments for better and quicker diagnosis of our increasing patient number.
Pneumatic Tube Systems will be installed The hospital pneumatic tube system will transport practically everything like medicine, laboratory samples, emergency samples, units of stored blood, X-Rays, documents and so on. By doing so, the pneumatic tube system will create a direct connection between all hospital in-patient area, such as blood banks, out-patient departments, nursing wards, reception or administration offices.
While doctors and nursing staff dedicate themselves to the patients, the pneumatic tube system will transport a multitude of small and medium-sized items. This system will save not only time, but also space; laboratories can be centralized and stocks in the decentralized medicine storage depots can be reduced. Furthermore, the pneumatic tube
Futu
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69
system will help increase efficiency since the staff will no longer be busy running errands, allowing the wards to stay occupied all the time. Plus, conveyor belts will be installed to receive numerous carriers. The empty carriers will return automatically without manual destination selection.
Others: Finesse in patient care with necessity additions
New CentresSpecialized centres like Sports Medicine Centre with its own rehabilitation and exercise area and Cosmetology Centre with its own surgery will be created in the new building.
Day Care SurgeryAt least four new operation theatres will be established for day care surgery in the new extension building.
ICU in Emergency & Accident departmentProvisions will be kept in Emergency & Accident Department for probable additions of ICU beds to manage critical patients in emergency set-up then transferring them to dedicated ICUs for further care if patients’ clinical severity and length of stay so demand.
Mother & Child Centre Birthing Centre & designated Antenatal Clinic will be physically added to the Mother & Child Centre to make it independent and self-serving.
Second Cath Lab for Interventional Cardiology A new Cath Lab (the second one) will be started for Interventional Cardiology Procedures to meet the increasing demands of increased patient traffic at Apollo Heart Centre.
70
Financial Highlights
Fina
ncia
l Hig
hlig
hts
71
2009 2008 2007 2006 2005
Current Assets 218.62 189.95 240.25 190.44 156.92
Total assets 2,843.25 2,937.35 3,141.22 3,167.16 2,419.43
Current liabilities 514.48 691.27 1,278.96 1,070.02 447.22
Total Liabilities 674.59 925.16 1,373.62 1,796.96 1,404.22
Shareholders' equity 2,164.80 2,007.70 1,762.46 1,364.42 1,008.79
Revenue (Net) 1,701.95 1,348.08 1,286.29 988.57 288.21
Net Earnings 46.75 (216.43) (380.68) (417.29) 0.45
Book Value per share 11.33 11.28 11.59 14.36 10.62
Gross Profit Margin (%) 49.53% 44.49% 44.73% 42.47% 62.97%
EBITDA Margin (%) 19.01% 6.60% -0.49% -7.67% 38.87%
Pre-tax Profit Margin 2.75% -16.05% -29.60% -42.21% 0.16%
Net Profit Margin 2.75% -16.05% -29.60% -42.21% 0.16%
Growth on Sales from Hospitals Operations (%) 26.25% 4.80% 30.12% 243.00% 0.00%
Net Profit Growth (%) 121.60% 43.15% 8.77% -92831.11% 0.00%
Return on Equity (%) -0.66% -17.46% -25.64% -30.58% 0.04%
Return on Assets (%) 1.64% -7.37% -12.12% -13.18% 0.02%
Liabilities to Equities (X) 0.31 0.46 0.78 1.32 1.39
Debt to Equity (X) 0.37 0.44 0.32 0.70 0.95
Interest Coverage Ratio (X) 1.57 (0.90) (0.97) (1.20) 1.00
Current ratio (Times) 0.42 0.27 0.19 0.18 0.35
Quick ratio (Times) 0.12 0.08 0.07 0.04 0.07
Average Collection Period (Days) 2.08 3.63 3.04 1.62 2.65
Average Inventory Period (Days) 62.58 69.93 77.64 88.18 211.86
Average Payable Period (Days) 35.71 57.97 55.77 32.13 15.28
72
1,800.0
1,600.0
1,400.0
1,200.0
1,000.0
800.0
600.0
400.0
200.0
-2005 2006 2007
Net Revenue
20092008
2,500.0
2,000.0
1,500.0
1,000.0
500.0
-
2005200620072009
2,164.802,007.70
1,762.46
1,364.42
1,006.02
2008
Shareholders’ Equity
Fina
ncia
l Hig
hlig
hts
73
Share CapitalShare capital of the company comprises of Ordinary and Preference shares. In 2009 there was no changes in authorized share capital which is Taka 3,000,000,000 (Three billion) divided into 300,000,000 (Three hundred million) shares, comprising of 240,000,000 (Two hundred forty million) ordinary shares of Taka 10 each and 60,000,000 (Sixty million) preference share of Taka 10 each. However, during the year Ordinary paid up share capital has been increased by Taka 132.75 million.
Shareholding Pattern
Number ofShareholders
Percentage of totalshareholdingsShareholdings No. of shares
7 100001-1000000 5,200,000 3.44%
13 Over-1000000 145,745,000 96.56%
20 Total 150,945,000 100.00%
3%100001-1000000Over-1000000
97%
74
Shareholdings as on 31 December 2009
Institution
Ramon Investments Ltd. Sponsor 33,174,350 33,174,350
Shanta Apparels Ltd. (SAL) Sponsor 21,990,000 21,990,000
Sepal Garments Ltd. Sponsor 21,990,000 21,990,000
Aureos South Asia Fund LLC. General-Institution 13,720,000 13,720,000
STS Educational Group Ltd. Associates 6,275,000 -
National Bank Ltd General-Institution 5,000,000 5,000,000
LankaBangla Finance Limited General-Institution 4,800,000 -
United Commercial Bank Ltd. General-Institution 4,000,000 4,000,000
Sino Lanka (Pvt.) Ltd. Sponsor 2,559,400 2,559,400
Anwer Khan Modern Hospital Ltd. General-Institution 2,000,000 2,000,000
Modern Hatchery Ltd. General-Institution 1,000,000 1,000,000
National Accessories Ltd. General-Institution 1,000,000 1,000,000
Jhony Textiles Ltd. General-Institution 1,000,000 -
South Asia Capital Fund General-Institution 800,000 -
AIMS First Guaranteed Mutual Fund General-Institution 500,000 500,000
Grameen One General-Institution 500,000 500,000
Grameen One-Scheme Two General-Institution 400,000 -
Individual - -
Mr. Mahabubul Anam Sponsor 8,246,250 8,246,250
Directors - -
Mr. Khondoker Monir Uddin Managing Director 13,743,750 13,743,750
Mr. Mohammad A. Moyeen Director 8,246,250 8,246,250
150,945,000 137,670,000
Shareholders Holding Ten Percent or more Voting Interest
Ramon Investments Ltd. 21.98% 33,174,350 33,174,350
Shanta Apparels Ltd. (SAL) 14.57% 21,990,000 21,990,000
Sepal Garments Ltd. 14.57% 21,990,000 21,990,000
Name of the Shareholders StatusShares Held
2009Shares Held
2008
Fina
ncia
l Hig
hlig
hts
74/75
Dividend to Preference ShareDuring the year company had paid Taka 58,042,654 as dividend against 12.75% redeemable Preference Share.
SponsorFinancial and other institution
73%
27%
76
Auditors' Report to the Shareholders of STS Holdings Limited
We have audited the accompanying financial statements of STS HOLDINGS LIMITED (the Company), namely Balance Sheet as of 31 December, 2009 and related Income Statement, Cash Flow Statement, Statement of Changes in Equity and the notes thereto for the year then ended. The preparation of these financial statements and notes thereto, in due conformity with Generally Accepted Accounting Principles, procedures and Accounting Standards as applicable in Bangladesh, are the responsibility of the Company’s management. Our responsibility is to express an independent opinion on these financial statements based on our audit.
Basis of Opinion:We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA), which fully comply with International Standards on Auditing (ISA). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidences supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
Opinion:In our opinion, the financial statements together with the notes thereto, prepared in accordance with the Bangladesh Financial Reporting Standards (BFRS), which fully comply with International Financial Reporting Standards (IFRS) give a true and fair view of the state of the Company’s affairs as of 31 December, 2009 and of the results of its operations and its cash flows for the year then ended and comply with the Companies Act 1994 and other applicable laws and regulations.
We also report that:
a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due verification thereof;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared from our examination of those books; and
c) the Company’s Balance Sheet, Income Statement, Cash Flow Statement and Statement of Changes in Equity dealt with by the report are in agreement with the books of account.
d) the expenditure incurred and payments made were for the purpose of the Company's business.
S. F. Ahmed & Co.Chartered Accountants
House 21, Road 13, Sector - 1, UttaraDhaka - 1230, Bangladesh Dated: 14 March, 2010
S. F. Ahmed & Co., Chartered AccountantsBangladesh Representative of Ernst & Young Global----Established: 1958
Fx. Fl. IJyPoh F¥ ßTJÄ
Bala
nce
Shee
t
77
Balance Sheetas at 31 December 2009 Figures in Taka Notes 2009 2008Application of Funds:
Non current assets 2,624,632,660 2,747,400,644 Property, plant and equipment 3 2,448,580,767 2,597,737,057 Intangible assets 4 116,935,852 141,412,899 Capital work in progress 5 59,116,042 8,250,688
Current assets 218,618,237 189,952,060 Inventories 6 159,258,509 135,265,332 Accounts receivable 7 11,544,101 10,049,482 Advances, deposits and prepayments 8 32,853,078 27,642,055 Cash and cash equivalents 9 14,962,549 16,995,191
Current liabilities 514,482,129 691,267,655 Trade and other payable 10 171,442,220 165,043,918 Current account with associated undertakings 11 11,626 149,676,124 Short term bank loan 12 127,721,298 145,321,909 Bank overdraft 13 137,269,967 173,344,149 Bridge finance 14 - 10,250,000 Obligation under finance lease 20 78,037,019 47,631,555
Net current assets (295,863,892) (501,315,595)
Total Application of Fund 2,328,768,769 2,246,085,050
Sources of Funds:
Owners' equity 2,164,805,994 2,007,698,988 Ordinary share capital 15.1 1,509,450,000 1,376,700,000 12% Preference share capital 15.2 455,236,500 455,236,500 Share premium 16 614,925,000 415,800,000 Share money deposit 17 - 163,000,000 Revaluation surplus 18 620,434,977 639,015,477 Retained earnings (1,035,240,483) (1,042,052,989)
Donation fund 19 3,850,800 4,492,600
Non current liabilities 160,111,975 233,893,462Obligation under finance lease 20 118,390,938 201,723,202Deferred liability (Gratuity) 21 41,721,037 32,170,260
Total fund available 2,328,768,769 2,246,085,050Contingent liabilities and commitments 32 34,204,210 34,204,210
The attached notes from 1 to 34 form an integral part of these accounts and should be read in conjunction therewith
For and on behalf of the Board of Directors of STS HOLDINGS LIMITED
B. R. Sikder Mohammad A. Moyeen Khondoker Monir Uddin Company Secretary Director Managing Director
Signed in terms of our report of date annexed.
S. F. Ahmed & Co.Chartered AccountantsHouse 21, Road 13, Sector - 1, Uttara, Dhaka - 1230, BangladeshDated: 14 March, 2010
78
Income Statementfor the year ended 31 December, 2009
Figures in Taka Notes 2009 2008Net Revenue 22 1,701,948,841 1,348,084,223Direct operating expenses 23 (858,964,110) (748,373,872)
Gross Profit 842,984,731 599,710,351
Other Operating Expenses (698,933,812) (676,085,976) General and administrative expenses 24 (474,806,132) (465,689,120) Management fees 25 (30,071,352) (19,059,603) Depreciation 26 (169,579,280) (166,860,206) Amortization 27 (24,477,048) (24,477,048) Finance cost 28 (82,664,627) (114,079,313) Marketing expenses 29 (24,295,197) (31,500,041) Other income 30 9,655,970 5,524,503
Net Profit/ (Loss) 46,747,065 (216,430,477)
The attached notes from 1 to 34 form an integral part of these accounts and should be read in conjunction therewith
For and on behalf of the Board of Directors of STS HOLDINGS LIMITED
B. R. Sikder Mohammad A. Moyeen Khondoker Monir Uddin Company Secretary Director Managing Director
Signed in terms of our report of date annexed.
S. F. Ahmed & Co.Chartered Accountants
House 21, Road 13, Sector - 1, UttaraDhaka - 1230, BangladeshDated: 14 March, 2010
Inco
me
& C
ash
Flow
Sta
tem
ent
79
Cash Flow Statementfor the year ended 31 December, 2009 Figures in Taka 2009 2008Cash flows from operating activities : Cash receipts from customer & others 1,720,373,251 1,358,171,163 Cash paid for direct operating expenses (896,252,712) (741,506,180) Cash paid for other operating expenses (515,382,166) (580,172,906) Income tax paid (472,404) - Finance costs (75,570,474) (119,043,235)
Net cash flows from operating activities 232,695,495 (82,551,158)
Cash flows from investing activities : Acquisition of property, plant & equipment (21,560,476) (50,984,098) Disposal of fixed assets 491,939 447,693 Capital work-in-progress (50,865,354) 12,131,396
Net cash used in investing activities (71,933,891) (38,405,009)
Cash flows from financing activities : Syndication loan received / (payment) - (186,411,765) Received as share money deposit - 163,000,000 Received from lease finance (52,926,801) 210,803,990 Received/(payment) from bridge finance (10,250,000) (29,750,000) Demand loan/ working capital received (17,600,611) 10,321,909 Received from associates undertakings 100,003 (370,171,875) Received from ordinary share capital 4,800,000 50,000,000 Received from 12% pref. share - 230,000,000 Received from share premium 7,200,000 75,000,000 Paid for dividend on preference share (58,042,654) (56,335,517)
Net cash used in financing activities (126,720,064) 96,456,742
Net increase/(decrease) in cash and cash equivalent : 34,041,540 (24,499,425) Opening cash and cash equivalents (156,348,958) (131,849,533)
Closing cash and cash equivalents (122,307,418) (156,348,958)Closing cash and cash equivalents represents : Cash and bank balances 14,962,549 16,995,191 Bank overdraft (137,269,967) (173,344,149)
(122,307,418) (156,348,958)
The attached notes from 1 to 34 form an integral part of these accounts and should be read in conjunction therewith
For and on behalf of the Board of Directors of STS HOLDINGS LIMITED
B. R. Sikder Mohammad A. Moyeen Khondoker Monir Uddin Company Secretary Director Managing Director
Signed in terms of our report of date annexed.
S. F. Ahmed & Co.Chartered Accountants
House 21, Road 13, Sector - 1, UttaraDhaka - 1230, BangladeshDated: 14 March, 2010
80
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5,51
7)
Exc
ess o
f de
prec
iatio
n fo
r rev
aluat
ion
- -
- -
(18,
546,
558)
18
,546
,558
-
Pr
ofit
for t
he y
ear e
nded
31
Dec
embe
r, 20
08
- -
- -
- (2
16,4
30,4
77)
(216
,430
,477
)
Bal
ance
as
on 3
1 Dec
embe
r, 20
08
1,37
6,70
0,00
0 45
5,23
6,50
0 41
5,80
0,00
0 16
3,00
0,00
0 63
9,01
5,47
7 (1
,042
,052
,989
) 2,
007,
698,
988
O
rdin
ary
shar
e iss
ue
132,
750,
000
- -
- -
- 13
2,75
0,00
0
Tax
paym
ent
- -
- -
- (4
72,4
04)
(472
,404
)
Shar
e m
oney
dep
osit
rece
ived
-
- -
(163
,000
,000
) -
- (1
63,0
00,0
00)
D
ivid
end
paid
on
pref
eren
ce sh
ares
-
- -
- -
(58,
042,
654)
(5
8,04
2,65
4)
Shar
e pr
emiu
m re
ceiv
ed
- -
199,
125,
000
- -
- 19
9,12
5,00
0
Exc
ess o
f de
prec
iatio
n fo
r rev
aluat
ion
- -
- -
(18,
580,
500)
18
,580
,500
-
Pr
ofit
for t
he y
ear e
nded
31
Dec
embe
r, 20
09
- -
- -
- 46
,747
,065
46
,747
,065
Bal
ance
as
on 3
1 Dec
embe
r, 20
09
1,50
9,45
0,00
0 45
5,23
6,50
0 61
4,92
5,00
0 -
620,
434,
977
(1,0
35,2
40,4
83)
2,16
4,80
5,99
4
Th
e ac
com
pany
ing
note
s for
m a
n in
tegr
al pa
rt of
thes
e fin
ancia
l sta
tem
ents.
For a
nd o
n be
half
of
the
Boa
rd o
f D
irect
ors
of S
TS
HO
LDIN
GS
LIM
ITE
D
B.
R. S
ikde
r M
oham
mad
A. M
oyee
n K
hond
oker
Mon
ir U
ddin
Co
mpa
ny S
ecre
tary
D
irect
or
Man
agin
g D
irect
or
Sign
ed in
term
s of
our r
epor
t of
date
ann
exed
.
S. F
. Ahm
ed &
Co.
Cha
rter
ed A
ccou
ntan
tsH
ouse
21,
Roa
d 13
, Sec
tor -
1, U
ttara
Dha
ka -
1230
, Ban
glad
esh,
Dat
ed: 1
4 M
arch
, 201
0
Stat
emen
t of C
hang
es in
Equ
ity &
Not
es to
the
Fina
ncia
l Sta
tem
ents
81
Notes to the Financial Statementsfor the year ended 31 December, 2009
1. Reporting entity :
1.1 Company profile :
STS Holdings Limited is a public limited company formed under Companies Act 1994 and incorporated in Bangladesh in the year of 1997 bearing Registration No. C-33709(455)/97 dated 28.08.1997. The registered office as well as the corporate office of the company is situated at House 8A, Road 143, Gulshan, Dhaka-1212.
1.2 Nature of business :
The company has been formed with the object of engaging in healthcare services of international standard. As a pioneering venture, it has established super specialty tertiary care hospital named Apollo Hospitals Dhaka (AHD) with the franchise and assistance of Apollo Hospitals Enterprises Limited, India. By virtue of separate Project Management Agreement, Operations Management Agreement and Franchise Agreement AHD uses the expertise, skills, know-how and technical services of Apollo Hospitals Enterprises Limited, India for commissioning, managing and operating this international standard super specialty hospital. Apollo Hospitals Dhaka is located at Plot No.81, Block No. E, Bashundhara R/A, Dhaka-1229, Bangladesh.
2. Summary of significant accounting policies :
The principal accounting policies applied in the preparation of the financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.
2.1 Basis of preparation, presentation and disclosures of financial statements :
The basis of preparation of the financial statements is the "Historical Cost Convention", except on account of land and building, plant & machinery and other tangible assets which have been revalued by independent valuer as described in Note-18, in accordance with the applicable Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS) as adopted by The Institute of Chartered Accountants of Bangladesh and applicable provisions of the Companies Act 1994.
2.2 Functional and presentational currency & level of precision :
These financial statements are presented in Bangladesh Currency (Taka), which have been rounded off to the nearest Taka except where indicative otherwise . Figures in brackets indicate deductions.
2.3 Reporting period :
The financial statements of the company have been prepared for the period from 01 January 2009 to 31 December 2009.
2.4 Comparative amount :
Wherever necessary figures of the prior year has been rearranged to conform to current year's presentation. The comparative period covers for the period from 01 January 2008 to 31 December 2008.
2.5 Consistency :
The accounting policies and methods of computation used in preparation of financial statements for the year ended 31 December 2009 are consistent with the policies and methods adopted in preparing the financial statements for the year ended 31 December 2008.
82
2.6 Transactions in foreign currencies :
Foreign currencies are translated into Taka at the rates ruling on the date of respective transactions. Exchange difference on borrowings denominated in foreign currencies to finance the respective plant and machinery is included in the carrying amount of related plant and/or machinery.
Other monetary assets and liabilities, if any, denominated in foreign currencies at the Balance Sheet date are translated at the applicable rates of exchange ruling at that date and the related exchange differences are charged or credited to the income statement.
2.7 Property, plant and equipment :
The fixed asset of the company shown under "Property, Plant and Equipment" as per BAS 16 is initially recorded at historical cost. Historical cost includes its purchase price and any directly attributed cost of bringing the asset to its working condition for its intended use inclusive of inward freight, duties, non-refundable taxes and (a) the cost of site preparation; (b) initial delivery and handling costs; (c) installation costs; (d) professional fees such as for architects and engineers; and (e) the estimated cost of dismantling and removing the asset and restoring the site, to the extent applicable in line with the provisions under 'BAS 37: Provisions, Contingent Liabilities and Contingent Assets'.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the income statement during the financial period in which they are incurred.
2.8 Revaluation of Fixed Assets :
The fixed assets as on 30 September 2006 were revalued to their fair market value as per decisions of the Board of Directors. All fixed assets under property, plant and equipment available on the cut-off date 30 September 2006 were revalued by an independent valuer. The basis of valuation of assets has been the fair market value of those assets as on the cut-off date after allowing depreciation at applicable rates against the revalued amount. The carrying amount shown in the balance sheet represents revalued amount of fixed assets less restated depreciation.
Increase in the carrying amount arising on revaluation is credited to "Revaluation Surplus" under shareholders' equity. Each year the difference between depreciation based on the revalued carrying amount and depreciation based on the asset's original cost is transferred from "Revaluation Surplus Reserve" to retained earnings.
2.9 Depreciation :
Land is held on a freehold basis and is not depreciated considering its unlimited life. In respect of all other fixed assets, depreciation is provided on straight line method to amortize the cost of the assets after commissioning, over their expected useful life. Depreciation is charged on additions to fixed assets from the month of capitalization and no depreciation is provided from the month of retirement. The annual depreciation rates applicable to different category of assets are:
Land and land development : 0% Building : 2% Computer & IT equipment : 20% Furniture & fixture : 10% Library books : 25% Medical and surgical equipment : 10% Office equipment : 15% Housekeeping equipment : 20% Air conditioning plant & air conditioners : 10% Electrical installations, generators, boiler, elevator etc. : 10% Vehicles : 20%
Not
es to
the
Fin
anci
al S
tate
men
ts
83
2.10 Impairment :
The carrying value of the Company's assets other than inventories ,are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated . An impairment loss is recognized whenever the carrying amount of the asset or its cash-generating unit exceeds its recoverable amount. Impairment losses ,if any, are recognized in the income statement.
2.11 Leases :
Fixed assets acquired under lease are considered as Finance Lease depending on lease classification checklist as per BAS 17 "Leases".
2.12 Inventories :
Inventories comprise consumables, medicine, materials, linens, printing & stationery etc.
Inventories are stated at the lower of cost and net realizable value in accordance with BAS 2 "Inventories" after making due allowances for any obsolete or slow moving items.
The cost is determined using the first-in, first-out (FIFO) method consistently. The cost of inventories comprises expenditure incurred in the normal course of business in bringing such inventories to their present location and condition. Net realizable value is based on estimated selling price less VAT in the ordinary course of business less any further costs expected to be incurred to make the sale (applicable variable selling expenses).
2.13 Cash and cash equivalents :
This comprises cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown in current liabilities on the balance sheet.
2.14 Borrowing costs :
Interest and other costs incurred by the company in connection with the borrowing of funds are recognized as expense in the period in which they are incurred, unless such borrowing cost relates to acquisition / construction of assets in progress that are capitalized as per alternative treatment of BAS 23 "Borrowing Costs".
2.15 Taxation :
The company has cumulative operating loss and hence no provision for taxation for the year 2009 has been accounted for.
2.16 Revenue recognition :
Revenue in the hospital is recognized as follows:
(i) In case of IPD services, as and when final bill for different services are raised.
(ii) In case of OPD services, as and when invoices are issued.
(iii) In case of Pharmacy, when medicines are delivered from the pharmacy counter.
2.17 Donation fund :
Donation Fund has been created out of the donation received from Shing On International Ltd. in 2005 to finance acquisition of medical equipment for Apollo Hospital Dhaka. As per decisions of the Board of Directors, donation fund is subject to set off against the depreciation charge on assets acquired out of the said fund over the expected useful life of the related assets following the principles of BAS 20 "Accounting for Government Grants and Disclosure of Government Assistance".
2.18 Deferred revenue expenditure :
Considering the capacity utilization during the first nine months of its operation (for the period from 01 April 2005 to 31 December 2005), 75% of fixed nature expenditures has been deferred to be written off over a period of ten years while marketing expenditures shall be written off over a period of five years.
84
2.19 Intangible assets :
Intangible assets like deferred revenue expenditures are initially recognized at cost and deferred to amortize over ten years effective from 01 January 2006 except marketing expenses included therein to be amortized over next five years of operation.
2.20 Provisions, contingent liabilities and contingent assets :
2.20.1 Contingent liabilities and contingent assets :
Contingent liabilities are not provided for unless a reliable estimate of probable amount as at the balance sheet date can be made. Contingent assets are not recognized.
2.20.2 Provision :
A provision is recognized in the balance sheet when the company has a legal or constructive obligation as a result of past event, future outflow will require to meet the past obligation and a reliable estimate can be made of the amount of the obligation.
2.21 Post-employment benefit schemes :
Schemes of post-employment benefits of eligible employees, payable after completion of employement, include contributory provident fund, unfunded gratuity and group insurance scheme as envisaged in BAS 19. The management of recognized providend fund, within the framework of the Rules approved by the National Board of Revenue, is vested in a Board of Trustees which is independent of Company's management. All permanent employees contribute @8.33% of their basic pay to the said provident fund and the Company makes equal contribution. Furthermore, the Company operates an unfunded gratuity scheme for its parmanent employees under which an employee is entitled, upon completion of minimum five years' continuous service, gratuity of one month's basic pay, last drawn, for each completed year of his/her service. The Company calculates the provisions for maximum exposure as at the balance sheet date for all eligible employees. While no actuarial valuation has ever been done, the management does not anticipate significant difference in amount payable on the basis of such actuarial valuation vis-à-vis provisons made.
2.22 Cash flow statement :
Cash flow statement is prepared principally in accordance with BAS-7 and the cash flow from the operating activities has been presented under the direct method.
2.23 Events after balance sheet date :
Events after balance sheet date that provide additional information about the company's position at the balance date are reflected in the financial statements. Events after balance sheet date that are not adjusting events are disclosed in the notes when material.
Not
es to
the
Fin
anci
al S
tate
men
ts
85
3. P
rope
rty,
pla
nt a
nd e
quip
men
t :
Lea
se fr
ee:
Land
and
land
dev
elop
men
t 77
0,57
7,50
0 -
- 77
0,57
7,50
0 0%
-
- -
- 77
0,57
7,50
0
Bui
ldin
g 1,
094,
985,
610
- -
1,09
4,98
5,61
0 2%
99
,182
,105
21
,899
,712
-
121,
081,
817
973,
903,
792
Com
pute
r & I
T e
quip
men
t 12
1,67
1,73
9 4,
117,
498
- 12
5,78
9,23
7 20
%
70,2
90,1
16
24,7
16,6
09
- 95
,006
,725
30
,782
,511
Furn
iture
& fi
xtur
e 94
,897
,586
1,
943,
567
27,2
69
96,8
13,8
84
10%
35
,274
,630
9,
585,
117
12,2
71
44,8
47,4
76
51,9
66,4
07
Libr
ary
Boo
ks
1,18
6,58
3 10
9,80
1 -
1,29
6,38
4 25
%
175,
863
302,
508
- 47
8,37
1 81
8,01
3
Med
ical
and
sur
gica
l equ
ipm
ent
781,
895,
172
12,7
01,1
67
802,
851
793,
793,
488
10%
2
62,9
41,8
33
78,6
23,4
04
325,
910
341,
239,
327
452,
554,
161
Off
ice
equi
pmen
t 2,
165,
486
156,
700
- 2,
322,
186
15%
82
8,42
1 33
5,21
9 -
1,16
3,64
0 1,
158,
546
Hou
seke
epin
g E
quip
men
t 29
3,00
0 24
7,00
0 -
540,
000
20%
9,
767
65,5
17
- 75
,284
46
4,71
6
Air
cond
ition
ing
plan
t &
air C
ondi
tione
rs
109,
224,
219
398,
300
- 10
9,62
2,51
9 10
%
40,7
24,9
23
10,9
51,4
80
- 51
,676
,403
57
,946
,116
Ele
ctric
al in
stal
latio
ns, g
ener
ator
s,
boile
r, el
evat
or e
tc
192,
780,
058
1,88
6,44
3 -
194,
666,
501
10%
71
,047
,771
19
,368
,870
-
90,4
16,6
41
104,
249,
860
Veh
icle
s 3,
914,
046
- -
3,91
4,04
6 20
%
2,80
7,82
2 78
2,80
9 -
3,59
0,63
1 32
3,41
5
Lea
se h
old:
Ele
ctric
al in
stal
latio
ns, g
ener
ator
s,
boile
r, el
evat
or e
tc
3,00
0,00
0 -
- 3,
000,
000
10%
22
5,00
0 30
0,00
0 -
525,
000
2,47
5,00
0
Veh
icle
s 16
,467
,908
-
- 16
,467
,908
20
%
11,8
13,5
96
3,29
3,58
2 -
15,1
07,1
78
1,36
0,73
0
31 D
ecem
ber
2009
3,
193,
058,
905
21,5
60,4
76
830,
120
3,21
3,78
9,26
1
595,
321,
848
170,
224,
827
338,
181
765,
208,
494
2,44
8,58
0,76
7
31 D
ecem
ber
2008
3,
142,
772,
454
50,9
84,0
98
697,
647
3,19
3,05
8,90
5
428,
069,
797
167,
502,
006
249,
954
595,
321,
848
2,59
7,73
7,05
7
3.1
Cur
rent
yea
r's (i
.e. F
Y '0
9) d
epre
ciat
ion
char
ge (T
k.17
0,22
4,82
7) h
as b
een
adju
sted
by
Tk.
641
,800
by
way
of
tran
sfer
fro
m d
onat
ion
fund
@ e
quiv
alen
t to
10%
of
don
atio
n fu
nd b
alan
ce a
s be
ing
defe
rred
inco
me
(Not
e -
19) a
nd T
k.3,
746
as o
ther
adj
ustm
ent t
o de
rive
net c
harg
e of
Tk.
169
,579
,280
to in
com
e st
atem
ent
(Not
e - 2
6).
Cat
egor
y of
Ass
ets
Bal
ance
As
on01
Jan.
'09
Taka (2)
Add
ition
durin
gth
e ye
arTa
ka (3)
Dis
posa
l/A
djus
tmen
tTa
ka (4)
Bal
ance
As
on01
Jan.
'09
Taka (7)
Cha
rged
durin
gth
e ye
arTa
ka (8)
Dis
posa
l/A
djus
tmen
tTa
ka (9)
Writ
ten
Dow
n V
alue
as o
n31
Dec
. '09
Taka
11=
(5 -
10)
Bal
ance
As
on31
Dec
. '09
Taka
(10)
=(7
+8-
9)
Bal
ance
As
on31
Dec
. '09
Taka (5)
Rat
e
% (6)
(1)
C o
s t
&
R e
v a
l u
a t I
o n
D e
p r
e c
I a
t I o
n
86
Figures in Taka Notes 2009 20084. Intangible assets : Deferred revenue expenditure 4.1 116,935,852 141,412,899 116,935,852 141,412,899
4.1 Deferred revenue expenditure : Opening Balance Amortization Closing Balance Administrative expenses 123,004,406 17,572,058 105,432,349 Operating expenses 6,437,928 919,706 5,518,222 Marketing expenses 11,970,565 5,985,284 5,985,281 141,412,899 24,477,048 116,935,852
a) The remaining deferred administration expenses Tk. 105,432,349 and operational expenses Tk. 5,518,222 will be amortized within next six years.
b) The remaining deferred marketing expense Tk. 5,985,281 will be amortized within next year.
5. Capital work in progress : Local procurement 5.1 16,955,585 3,115,486 Foreign procurement 5.2 42,160,457 5,135,202 59,116,042 8,250,688
5.1 This includes various construction works of hospital building not completed as on the date of Balance Sheet.
5.2 Foreign procurement : Equipment 42,160,457 5,135,202 42,160,457 5,135,202
6. Inventories :
Consumable 43,490,322 479,931,992 480,273,531 43,148,783 43,490,322 Pharmacy 13,685,236 183,147,405 183,922,811 12,909,830 13,685,236 Hospitality services 3,011,844 49,502,967 47,436,283 5,078,528 3,011,844 Goods-in-transit 4,740,209 23,065,826 13,910,542 13,895,494 4,740,209 Instruments 33,445,881 12,176,362 390,004 45,232,239 33,445,881 Maintenance spares 14,884,719 17,831,970 18,116,807 14,599,882 14,884,719 Medical gas 256,073 6,956,585 7,124,041 88,617 256,073 Others 21,751,047 27,542,691 24,988,602 24,305,136 21,751,047 135,265,332 800,155,799 776,162,622 159,258,509 135,265,332
6.1 In view of innumerable items of inventory and diverse units of measurement, it is not feasible to disclose quantities against each item.
7. Accounts receivable : Trade receivable 9,353,477 10,049,482 Other receivable 2,190,624 - 11,544,101 10,049,482
ParticularsOpeningBalance Purchase Consumption Closing Balance
Not
es to
the
Fin
anci
al S
tate
men
ts
87
Figures in Taka Notes 2009 20088. Advances, deposits & prepayments : Advances : Margin on bank guarantee 10,059,506 10,153,601 Advance to contractor 8,094,194 2,063,905 Advance income tax 5,189,185 4,249,308 Advance rent 1,741,831 5,873,410 Margin on letter of credit 1,635,883 143,618 Advance against motorcycle 1,285,793 - Advance to staff 59,011 352,647 28,065,403 22,836,489 Deposits : Security deposit 1,830,989 1,768,989 Lease deposit 1,207,401 1,207,401 3,038,390 2,976,390 Prepayments : Pre-paid insurance 1,749,285 1,829,176 32,853,078 27,642,0559. Cash and cash equivalents : Cash in hand 9.1 11,698,877 9,067,607 Cash at bank 9.2 3,263,672 7,927,584 14,962,549 16,995,1919.1 Cash in hand : Cash in hand (daily collection) 7,789,075 5,056,576 Credit card collection 2,437,828 2,239,724 Cheque in hand 863,307 1,405,485 Petty cash 466,527 213,406 Corporate office 142,140 152,416 11,698,877 9,067,6079.2 Cash at bank : Name of banks : Standard Chartered Bank 609,094 2,104,782 Southeast Bank Limited 586,118 563,813 Pubali Bank Limited 546,928 1,912,190 Dutch-Bangla Bank Limited 356,162 400,552 HSBC Limited 333,005 14,632 Commercial Bank of Ceylon 324,014 686,090 HSBC Limited 246,664 1,799,405 Commercial Bank of Ceylon 149,678 163,679 Southeast Bank Limited 56,534 56,475 Eastern Bank Limited 20,113 20,557 Eastern Bank Limited 19,297 70,547 Southeast Bank Limited 15,358 50,710 Bank Asia Limited 486 486 HSBC Limited 221 471 Commercial Bank of Ceylon - 358 Standard Chartered Bank - 82,837 3,263,672 7,927,584
88
Figures in Taka Notes 2009 200810. Trade & other payable : Trade payable 71,642,893 84,938,318 Management fee payable 10.1 30,071,352 27,194,415 Patients advance collection 21,153,799 10,890,740 Accrual for personnel A/c 17,654,775 7,987,629 Other payable 11,722,762 20,179,815 Withheld tax payable 11,616,664 6,982,999 VAT payable 3,839,975 1,812,687 Accrued expenses 1,616,897 1,740,523 Other liability 1,220,000 1,232,500 Loan from directors 672,983 998,039 Security deposit received 184,000 184,000 Interest payable 46,120 62,467 Employee provident fund - 839,785 171,442,220 165,043,91810.1 Management fees payable : to AHEL: 1% of revenue 10.1.1 17,019,487 19,985,270 to AHEL: 5% of PBDT 10.1.1 7,380,509 - to AHEL : fixed fees 10.1.1 5,600,004 7,040,004 30,000,000 27,025,274 to AHEL: Franchise fees 10.1.2 71,352 169,141 30,071,352 27,194,415
10.1.1 This represents operation management fees payable to AHEL (Apollo Hospitals Enterprise Ltd.) as per agreement dated 25 June 1998 and supplemental agreements of different dates. According to 2nd Supplementary Agreement dated 28.01.02, every year during first seven and half years, the fees payable are: a) fixed sum of IRs 4,000,000/-(Rupees Four Million only) shall be paid in advance for first 2 years and in 4 equated quarterly installments for the remaining subsequent periods. b) 1% of the Gross Revenue of the hospital business and c) 5% of Profit before Depreciation and Tax (PBDT) shall be paid on quarterly basis based on provisional accounts drawn at the end of each quarter. However, the cumulative payment under the above will not exceed Taka 30,000,000 (Thirty Million) in any one year.
10.1.2 This represents royalty payable to AHEL (Apollo Hospital Enterprise Limited) India, IRs. 50,000 per annum as per agreement dated 25 June 1998.
11. Current account with associated undertakings : STS Educational Group Ltd. 11,626 149,676,124 11,626 149,676,12412. Short term bank loan : Demand loan 110,000,000 145,000,000 Import loan 17,721,298 321,909 127,721,298 145,321,909
This amount forming working capital has been received from Eastern Bank Limited. The demand loan and import loan limits are Tk.170 million and Tk. 80 million respectively.
Not
es to
the
Fin
anci
al S
tate
men
ts
89
Figures in Taka Notes 2009 200813. Bank overdraft : Pubali Bank Limited 117,880,875 150,109,623 Eastern Bank limited 19,389,092 23,234,526 137,269,967 173,344,149
The overdraft limit of Pubali Bank Limited is Tk. 150 (One hundred fifty) million and Eastern Bank Limited is Tk. 30 (Thirty) million bearing floating rate of interest as applicable from time to time.
14. Bridge finance : Opening balance 10,250,000 40,000,000 Less: Payment during the year 10,250,000 29,750,000 Closing balance - 10,250,000
Short term loan (Current Liabilities) - 10,250,000 - 10,250,000
90
Figures in Taka Notes 2009 2008
15. Share Capital : Authorized: 240,000,000 ordinary shares of Taka 10 each. 2,400,000,000 2,400,000,000 60,000,000 preference share of Taka 10 each. 600,000,000 600,000,000 3,000,000,000 3,000,000,000 Issued, subscribed and paid up:
15.1 Ordinary share capital : 150,945,000 ordinary shares of Taka 10 each issued and fully paid-up in cash 15.1.1 1,509,450,000 1,376,700,000
15.2 12% Redeemable Preference share capital : 45,523,650 Preference Shares of Taka 10 each 15.2.1 455,236,500 455,236,500
15.1.1 Position of ordinary shares holding :
The composition of share holders at balance sheet date was as follows:
Individual : Mr. Khondoker Monir Uddin 9.11% 9.98% 137,437,500 137,437,500 Mr. Mohammad A. Moyeen 5.46% 5.99% 82,462,500 82,462,500 Mr. Mahabubul Anam 5.46% 5.99% 82,462,500 82,462,500 20.03% 21.96% 302,362,500 302,362,500 Corporate : Ramon Investments Ltd. 21.98% 24.10% 331,743,500 331,743,500 Shanta Apparels Ltd. (SAL) 14.57% 15.97% 219,900,000 219,900,000 Sepal Garments Ltd. 14.57% 15.97% 219,900,000 219,900,000 Aureos South Asia Fund LLC. 9.09% 9.97% 137,200,000 137,200,000 STS Educational Group Ltd. 4.16% 0.00% 62,750,000 - National Bank Ltd 3.31% 3.63% 50,000,000 50,000,000 LankaBangla Finance Limited-IP A/C 3.18% 0.00% 48,000,000 - United Commercial Bank Ltd 2.65% 2.91% 40,000,000 40,000,000 Sino Lanka (Pvt.) Ltd. 1.70% 1.86% 25,594,000 25,594,000 Anwer Khan Modern Hospital Ltd. 1.32% 1.45% 20,000,000 20,000,000 Modern Hatchery Ltd. 0.66% 0.73% 10,000,000 10,000,000 National Accessories Ltd. 0.66% 0.73% 10,000,000 10,000,000 Jhony Textiles Ltd. 0.66% 0.00% 10,000,000 - South Asia Capital Fund 0.53% 0.00% 8,000,000 - AIMS First Guaranteed Mutual Fund 0.33% 0.36% 5,000,000 5,000,000 Grameen One 0.33% 0.36% 5,000,000 5,000,000 Grameen One-Scheme Two 0.26% 0.00% 4,000,000 - 79.97% 78.04% 1,207,087,500 1,074,337,500 100.00% 100.00% 1,509,450,000 1,376,700,000
Name of shareholders2009 2008 2009 2008
Percentage of shareholdings Value
Not
es to
the
Fin
anci
al S
tate
men
ts
91
15.1.2 Composition of shareholdings as on 31 December 2009 was under :
Sponsors (Institution) 4 90,874,350 60.20 Sponsors (Individual) 3 30,236,250 20.03 General Public (Institution) 13 29,834,400 19.77 Total 20 150,945,000 100.00
15.2.1 Position of preference shares holding
Bangladesh Industrial Finance Co. Ltd. 26.36% 12,000,000 120,000,000 Southeast Bank Limited 21.97% 10,000,000 100,000,000 IDLC Bangladesh Limited 12.13% 5,523,650 55,236,500 Brac Bank Limited 10.98% 5,000,000 50,000,000 Bank Alfalh Limited 10.98% 5,000,000 50,000,000 Eastern Bank Limited 10.98% 5,000,000 50,000,000 Premier Bank Limited 6.59% 3,000,000 30,000,000 100% 45,523,650 455,236,500
16. Share Premium Share Premium 614,925,000 415,800,000
This amount represents issue of 40,995,000 ordinary shares at premium of Taka 15 per share.
17. Share money deposit :
Name of shareholders : Figures in Taka 2009 2008
Corporate : South Asia Capital Fund - 20,000,000 LankaBangla Finance Limited-IP A/C - 118,000,000 Jhony Textiles Ltd. - 25,000,000 - 163,000,000
Name of shareholders Percentage Number Face value
Shares
No. of Shareholders No. Of Shares Percentage
92
Land
and
land
dev
elop
men
t 20
7,01
3,73
8 77
0,57
7,50
0 56
3,56
3,76
2 -
- -
563,
563,
762
Bui
ldin
g 1,
023,
657,
843
1,09
4,98
5,60
9 71
,327
,766
82
,491
,061
12
1,08
1,81
7 38
,590
,756
32
,737
,009
Com
pute
r & I
T e
quip
men
t 12
4,10
7,22
0 12
5,78
9,23
6 1,
682,
016
87,0
68,8
73
95,0
06,7
26
7,93
7,85
3 (6
,255
,837
)
Furn
iture
& fi
xtur
e 86
,942
,884
96
,813
,888
9,
871,
003
32,1
72,2
10
44,8
47,4
75
12,6
75,2
65
(2,8
04,2
62)
Hou
seke
epin
g eq
uipm
ent
540,
000
540,
000
(0)
75,2
83.6
6 75
,284
-
(0)
Libr
ary
book
s 1,
296,
384
1,29
6,38
4 (0
) 47
8,37
1 47
8,37
1 -
(0)
Med
ical
and
sur
gica
l equ
ipm
ent
686,
045,
643
793,
793,
485
107,
747,
842
259,
626,
493
341,
239,
329
81,6
12,8
36
26,1
35,0
06
Off
ice
equi
pmen
t 2,
332,
575
2,32
2,18
5 (1
0,39
0)
1,01
3,08
8 1,
163,
641
150,
553
(160
,943
)
Air
cond
ition
ing
plan
t & a
ir C
ondi
tione
rs
91,6
07,2
53
109,
622,
518
18,0
15,2
64
37,0
89,4
23
51,6
76,4
04
14,5
86,9
81
3,42
8,28
3
Ele
ctric
al in
stal
latio
ns, g
ener
ator
s, bo
iler,
elev
ator
etc
16
6,45
2,71
8 19
7,66
6,50
3 31
,213
,785
66
,880
,814
90
,941
,640
24
,060
,826
7,
152,
959
Veh
icle
s 20
,381
,954
20
,381
,954
-
15,3
36,8
10
18,6
97,8
09
3,36
0,99
9 (3
,360
,999
)
31 D
ecem
ber
2009
2,
410,
378,
215
3,21
3,78
9,26
1 80
3,41
1,04
6 58
2,23
2,42
8 76
5,20
8,49
5 18
2,97
6,06
9 62
0,43
4,97
7
31 D
ecem
ber
2008
2,
389,
510,
500
3,19
3,05
8,91
0 80
3,54
8,41
0 43
0,37
8,29
0 59
4,91
1,22
1 16
4,53
2,93
3 63
9,01
5,47
7
Cat
egor
y of
ass
ets
(2)
(3)
(4 =
3 -
2)(7
= 6
- 5)
(8 =
4 -
7)
Net
Rev
alua
tion
Surp
lus
Taka
Exc
ess
Dep
reci
atio
n
Taka
Acc
umul
ated
Dep
reci
atio
n on
Rev
alue
d am
ount
Taka
Acc
umul
ated
Dep
reci
atio
n on
His
toric
al C
ost
Taka
Gro
ss
Rev
alua
tion
Surp
lus
Taka
Rev
alue
dA
mou
nt
Taka
Cos
t
Taka
(5)
(6)
(1)
18.
Rev
alua
tion
sur
plus
:
Not
es to
the
Fin
anci
al S
tate
men
ts
93
Figures in Taka Notes 2009 200819. Donation fund : Opening balance 4,492,600 5,134,400 Less: Transfer to Income Statement 641,800 641,800 Closing balance 3,850,800 4,492,600
An amount of US$ 100,000 (exchange rate 1US$ = TK. 64.18) received from Shing On International as donation for acquisition of medical equipment of the hospital on May 28, 2005 with the approval of the Bangladesh Bank.
The grant is recognized as income over the life of a depreciable asset (10 years) by way of a reduced depreciation charge.
20. Obligation under finance lease : Repayment of lease obligation is classified as follows: Payment due within one year (Current portion) 78,037,019 47,631,555 Payment due within 5 years but later than one year 118,390,938 201,723,202 196,427,957 249,354,757
Obligation under finance lease represents lease of vehicles from United Leasing Company Limited, International Leasing Company Limited and IDLC Finance Limited.
21. Deferred liability (Gratuity) : Liability for gratuity 21.1 41,721,037 32,170,260 41,721,037 32,170,260 21.1 Liability for gratuity is payable to the permanent employees at the time of separation from the company. The balance
represents provision up to December 31, 2009.
22. Net revenue : Revenue from health care services-net of VAT 1,726,899,862 1,376,099,200 Less: Free bed and Discounts 22.1 24,951,021 28,014,977 1,701,948,841 1,348,084,223
22.1 Represents discounts allowed to corporate clients, company staffs and free bed to poor patients.
23. Direct operating expenses : Hospital supplies 487,399,245 407,617,895 Medicine 183,922,811 141,154,911 Medical gas, sterilisation and other service charges 139,603,440 133,852,128 F & B and House keeping 33,864,679 51,380,456 Power and energy 14,173,935 14,368,483 858,964,110 748,373,872
24. General and administrative expenses : Salary & allowances 24.1 352,621,605 329,586,457 Repair & maintenance 24.2 47,808,125 46,949,095 Printing & stationery 24.3 15,214,562 11,655,590 Premises 24.4 11,947,324 17,086,760 Car maintenance 24.5 10,260,666 10,462,345 Other administration expenses 24.6 9,808,112 9,690,262 Communication 24.7 5,235,445 6,314,388 Recruitment 24.8 5,139,385 3,606,642 Traveling 24.9 4,728,668 10,948,609 Legal, registration & renewal 24.10 4,027,896 10,137,256 Employee welfare 24.11 3,306,940 1,818,728 Insurance 24.12 2,821,424 4,304,583 Entertainment 24.13 1,324,596 2,092,630 Training 24.14 561,384 1,035,775 474,806,132 465,689,120
94
Figures in Taka Notes 2009 200824.1 Salary & allowances : Salary & allowances 308,741,971 299,203,930 Festival bonus 13,461,432 11,178,551 Gratuity 9,606,049 6,056,389 Overtime 8,230,012 1,408,324 Employer contribution to PF 5,684,732 5,026,006 Leave encashment 3,640,892 3,526,400 Part time & casual staff 3,256,517 3,186,857 352,621,605 329,586,457 24.2 Repair & maintenance : Bio- medical equipment 28,273,968 23,808,213 Plant & machinery 6,614,151 14,137,626 Electrical 6,246,656 1,915,769 Building 2,555,300 2,814,914 General 2,517,614 2,584,369 Office furniture 1,043,460 713,099 Generator 381,996 730,458 Office equipment 174,980 244,647 47,808,125 46,949,09524.3 Printing & stationery : Printing, stationery & computer accessories 13,303,754 8,878,303 Office supplies 1,430,974 2,262,765 Newspaper & periodicals 479,834 514,522 15,214,562 11,655,590 24.4 Premises : Guest house rent 6,908,465 12,115,258 Security services 2,775,011 2,561,037 Service charge & utilities 842,493 743,215 Information center rent 751,600 981,578 Other premises costs 669,755 685,672 11,947,324 17,086,76024.5 Car maintenance : Lease rental 5,045,900 5,256,022 Car allowances 1,936,110 644,000 Fuel & oil 1,525,226 2,077,196 Repairs & maintenance 815,899 1,161,228 Hire 420,000 857,800 Insurance 397,717 348,167 Registration & renewal fees 119,814 117,932 10,260,666 10,462,34524.6 Other administration expenses : Corporate office expenses 9,000,000 9,000,000 Loading & unloading expenses 434,569 228,062 Office expenses 372,243 458,034 Crockery & utensils 1,300 4,166 9,808,112 9,690,262
Not
es to
the
Fin
anci
al S
tate
men
ts
95
Figures in Taka Notes 2009 200824.7 Communication : Mobile phone costs 2,436,277 2,719,587 Internet usage subscription 1,272,656 1,274,092 Telephone expenses 1,001,360 1,694,442 Cable Network 316,107 423,240 Courier services 209,045 203,027 5,235,445 6,314,38824.8 Recruitment : Advertisement 1,929,199 880,767 Visa & work permit 1,402,776 1,924,236 Traveling 1,202,894 399,256 Others 604,516 402,383 5,139,385 3,606,64224.9 Traveling : Overseas 3,994,042 9,641,477 Local 734,626 1,307,132 4,728,668 10,948,60924.10 Legal, registration & renewal : Professional fees 1,104,900 388,614 License & registration 1,055,473 538,216 Share issue expenses 929,875 7,430,000 Legal fees 719,648 1,169,968 Audit fees 218,000 222,500 JCI accreditation - 387,959 4,027,896 10,137,25624.11 Employee welfare : Dress & uniform 1,797,250 10,600 Refreshment allowance 631,393 937,391 Sports & social club 457,508 311,138 Other welfare cost 280,495 318,589 Professional subscriptions 140,294 241,010 3,306,940 1,818,72824.12 Insurance : General insurance 2,596,641 2,589,663 Group life insurance 224,783 1,714,920 2,821,424 4,304,58324.13 Entertainment : Tea coffee and etc. 1,133,990 1,281,485 Other 190,606 811,145 1,324,596 2,092,63024.14 Training : Local training 308,179 35,626 Overseas training 253,205 1,000,149 561,384 1,035,775
96
Figures in Taka Notes 2009 200825. Management fees : Operations management fees (1% of revenue) 17,019,487 13,480,851 Operations management fees (5% of PBDT) 7,380,509 - Operations management fees (Fixed) 5,600,004 5,490,000 30,000,000 18,970,851 Françhise fee (Fixed) 71,352 88,752 30,071,352 19,059,603
The above fees, up to a maximum of Tk. 30 million excluding fixed françhise fee, are payable to Apollo Hospitals Enterprises Limited, India by virtue of Operations Management and Franchise Agreement signed on 25 June 1998.
26. Depreciation : Depreciation 3 170,224,826 167,502,006 Less: Adjusted with donation fund 19 641,800 641,800 Other adjustment 3,746 - 3.1 169,579,280 166,860,20627. Amortization : Deferred revenue expenditure : Administrative expense 17,572,058 17,572,058 Marketing expenses 5,985,284 5,985,284 Operating expenses 919,706 919,706 24,477,048 24,477,04828. Finance cost : Interest -finance lease 36,918,057 43,815,829 Interest -working capital loan 16,470,103 19,144,470 Interest-demand loan 16,049,845 20,122,246 Interest-inter-company loan 7,110,499 22,650,268 Bank charges 6,040,386 4,951,107 Interest -bridge finance 75,737 3,011,459 Interest-syndication loan - 383,934 82,664,627 114,079,31329. Marketing expenses : Promotional expenses 11,917,024 11,823,599 A & P - news paper & periodicals 7,499,178 6,920,413 A & P - bill board, neon sign 2,460,135 1,539,825 Seminar & special events 1,473,860 1,130,421 Sponsorship 945,000 4,347,500 A & P - radio & TV - 5,738,283 24,295,197 31,500,04130. Other income : Miscellaneous income 5,124,016 4,083,367 Income from restaurant 30.1 2,933,787 - Car parking 1,297,558 1,006,251 Bank interest received 300,608 434,885 9,655,970 5,524,503
30.1 Income from restaurant represents net of VAT and after deducting consumable expenses.
30.2 Miscellaneous income includes scrap sale, ID card re-issue and share of profit from the sale of foods & beverage etc.
Not
es to
the
Fin
anci
al S
tate
men
ts
97
31. Related party disclosure :
During the year the Company carried out a number of transactions with related parties in the normal course of business at arms' length basis. Names of those related parties, nature of those transactions and their total value have been set out in accordance with the provisions of BAS-24: Related Party Disclosure.
32. Contingent Liabilities and Commitments :
32.1 The company has a contingent liability for the guarantee issued by Dutch Bangla Bank, Gulshan Branch and Southeast Bank, Gulshan Branch in favor of National Board of Revenue for Tk. 34,204,210 as there is a dispute with the customs authority regarding the duty exemption facilities in pursuant to the SRO No.133-Aain/2005/2069/Sulko dated 02/06/2005 issued by the National Board of Revenue (NBR).
32.2 The company has no capital expenditure commitments.
32.3 There is no claim against the company acknowledged as debt. Figures in Person
33. Number of employees : 2009 2008
Expatriate 43 59
Local 1,299 1,100
Management 12 15
Staff 1,287 1,085
Total number of employees 1,342 1,159
No. of employees received more than Tk. 3,000 per month 1,342 1,038
34. Others :
34.1 Directors' remuneration for attending board meeting.
No remuneration is paid to Directors for attending board meetings.
34.2 Directors' remuneration for special service rendered.
No remuneration is paid to the Directors for special service rendered.
34.3 Receivable from directors
No amount is lying as receivable from the Directors.
For and on behalf of the Board of Directors of STS HOLDINGS LIMITED
B. R. Sikder Mohammad A. Moyeen Khondoker Monir Uddin Company Secretary Director Managing Director
Name ofRelated Party
Nature ofRelationship
Nature ofTransaction
Terms andconditions
TransactionValue Taka
Outstanding Balance
Taka
STS EducationGroup Ltd
CommonDirectorship
Mutualunderstanding
(149,664,498) 11,626Providing formeeting operationalexpenses
STS Holdings Limited(Registered Office: House #8/A, Road#143, Gulshan-1, Dhaka-1212)
Proxy Form
I/We ………………………………………………………………………………………………...……………………
of
……………………………………………………………………………………………………………………………
being a member of STS Holdings Limited do hereby appoint
Mr./Mrs./Miss ……………………………………………………………………………...
Of …………………………………………………………………………………………
As my/our proxy to attend and vote for me/us behalf at the 13th Annual General Meeting of the company to be held on
Wednesday the 24 June,2010 at 10.30 am. in the board room of Apollo Hospitals Dhaka, Plot-81, Block-E, Bashundhara
R/A, Dhaka -1229 and at any adjournment thereof.
As witness my hand this day of ………………… June, 2010.
Signature of the Proxy Signature of the Shareholder
Register Folio No. ………….
Dated: ……………
Note: The proxy form should reach the registered office of the company not less than 48 hours before the time fixed for
meeting.
APOLLO HOSPITALS DHAKA
Plot 81, Block E, Bashundara R/A,Dhaka 1229, BangladeshEmergency Hotline: 10678 Central PABX: (02)-8401661 Appointment: (02)-8845242Fax: (02)-8401679
e-mail: [email protected]: www.apollodhaka.com