CONTENTS
- About the Report
- Who we are
- Performance Highlights
- Financial Highlights
- Awards and Accreditations
09
Leadership
31
Business
Overview
- Value Creation Model
- Operating Environment
- Strategy
- Stakeholder Engagement
- Strategic Business Units
55
Management
Discussion
and Analysis
- Focus on the Patient
- Nurturing Relationships
- Our Strength
129
Financial Reports
- Financial Calendar
- Independent Auditors' Report
135 Statement of Profit or Loss and Other Comprehensive Income
- Statement of Financial Position
- Statement of Changes in Equity
- Statement of Cash Flows
- Notes to the Financial Statements
- Chairman's Message
- Director/General Manager's Review
14 Board of Directors
21 Senior Management Team
30 Executive Clinical Management Team
74 | 233 | |
Stewardship | Supplementary | |
75 Risk Management | Information | |
81 Corporate Governance
106 | Annual Report of the | 234 | Investor Information |
Board of Directors | 238 | Ten Year Financial Summary | |
115 | Remuneration | 242 | Notice of Meeting |
Committee Report | Enclosed - Form of Proxy | ||
117 | Audit Committee Report | ||
Inner Back Cover - | |||
120 | Related Party Transactions | ||
Corporate Information | |||
Review Committee Report | |||
122 Nominations and Governance Committee Report
124 Directors' Responsibility in Financial Reporting
126 Chief Executive Officer's and
Head of Finance Statement of Responsibility
128 Senior Independent Director's Statement
Innovating healthcare with technology at the forefront
At Nawaloka Hospital, we are committed to redefining healthcare through the integration of cutting-edge technology. From state-of-the-art diagnostic tools to advanced treatment methods, we place technology at the forefront of our mission to deliver exceptional patient care. Our innovative approach ensures that we not only meet the highest standards of clinical excellence but also provide a seamless and efficient experience for every patient. Join us in exploring the future of healthcare, where technology leads the way.
ABOUT THE REPORT
We are pleased to present our twelfth Integrated Annual Report which sets out the performance of Nawaloka Hospitals PLC and its subsidiaries (herein after referred to as the "Group") for the financial year ended 31 March 2024. The Report provides a balanced review of our financial, social and environmental performance and provides concise and material information on the Group's Operating Context, Strategy, Governance, Risk Management Framework and Prospects.
SCOPE AND BOUNDARY
The Report covers the activities of the Group - Nawaloka Hospitals PLC and its three subsidiaries New Nawaloka Hospitals (Private) Ltd., New Nawaloka Medical Centre (Private) Ltd., and Nawaloka Laboratories (Private) Ltd. and equity accounted investees - Nawaloka Collage of higher studies (Private) Ltd. for the period 01 April 2023 to 31 March 2024. An annual reporting cycle has been adopted and the most recent report for the financial year ended 31 March 2023 is available on our website www.nawaloka.com.
The Report focuses on aspects deemed material to the Group's operations and to our key stakeholders. All financial and non-financial information presented herein represents consolidated figures of the Company and its subsidiaries, unless otherwise stated.
There are no significant changes in the scope and aspect boundaries. Restatements of deferred taxation provided in previous reports, is explained in Note 30 to the Financial Statements.
REPORTING STRUCTURE
We have structured the report to provide an overview of how we nurtured our capitals to deliver value to our stakeholders. We aim to continually improve the quality of our reporting and this year's report includes the following features to enhance clarity and readability.
- Increased strategic orientation in reporting
- Careful consideration of relevant and material information
QUALITY ASSURANCE
The Group has obtained an independent opinion on the Financial Statements from its External Auditors Messrs KPMG (Chartered Accountants) which is set out on pages 131 and 134 of this Report.
02 | Nawaloka Hospitals PLC Annual Report 2023/24 |
About the Report
REPORTING STANDARDS
The following frameworks were used to prepare the report moving beyond regulatory compliance to incorporate international best practices into our reporting processes.
Financial Reporting
- Sri Lanka Financial Reporting Standards
- Companies Act No. 7 of 2007
- Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995
Narrative Reporting
- Integrated Reporting Framework of the IFRS Foundation
Corporate Governance
- Continuing Listing Requirements of the Colombo Stock Exchange and Corporate Governance Rules
- Code of Best Practice on Corporate Governance 2017 issued by CA Sri Lanka
FEEDBACK
We value your input on our Annual Report, as it empowers us to consistently enhance our comprehensive reporting. Kindly share your comments and suggestions with us at:
Finance Manager - Reporting
Nawaloka Hospitals PLC
No. 23, Deshamanya H K Dharmadasa Mawatha, Colombo 02, Sri Lanka.
Email: financemanager.reporting@nawaloka.com
Tel: +94 11 557 7111
Nawaloka Hospitals PLC Annual Report 2023/24 | 03 |
WHO WE ARE
Nawaloka Hospitals Group is a leading player in the private healthcare sector providing primary, secondary, and tertiary healthcare services.
Nawaloka Hospital, established over 39 years ago as the first private multi-specialist hospital in the country, sets the standard for advanced medical care and technology. Renowned as a center of excellence, we are committed to providing healthcare that meets international benchmarks. Continuously pioneering innovations, we proudly introduce South Asia's first AI-powered radiology unit, reaffirming our position as a preferred private healthcare institution. At Nawaloka, we combine state-of-the-art technology with expert medical care to enhance patient outcomes.
OUR GROUP
The Nawaloka Hospital was established in 1985 by our founder Chairman Deshamanya H K Dharmadasa. It has since expanded to a Group consisting of Nawaloka Hospitals PLC and three 100% owned subsidiaries and one equity accounted investee. Nawaloka Hospitals PLC was listed on the Colombo Stock Exchange in 2004.
NAWALOKA HOSPITALS PLC
Fully Owned Subsidiaries
New Nawaloka Hospitals (Pvt) Ltd.
New Nawaloka Medical Centre (Pvt) Ltd.
Nawaloka Laboratories (Private) Ltd.
Equity Accounted Investees
Nawaloka Collage of Higher Studies (Pvt) Ltd.
OUR VISION
"To be the Hospital of Tomorrow", to provide quality and safe healthcare to the people whilst maintaining leadership and excellence in the healthcare facility.
OUR MISSION
"Healing with Feeling", to provide the best quality healthcare in accordance with international standards to the needy in a cost-effective, timely, and professional manner.
OUR VALUES
We are working in a rapidly changing healthcare environment. With the input of a multidisciplinary team of faculty and staff, Nawaloka Hospitals PLC has in place instead of developed to lead change and guide our business strategy and decisions. Our focus is on five strategic areas in which we will invest our time and resources:
- Strengthen Safety and Quality
- Drive Innovation, Technology and Research
- Enable Our People
- Plan for a Sustainable Future
- Achieve Financial Health
04 | Nawaloka Hospitals PLC Annual Report 2023/24 |
Leadership
Leadership
who we areBusiness Overview Business Overview
Management Discussion and
Management DiscussionAanalysisd Analysis
Stewardship | ||
Stewardship | ||
Financial Reports | ||
Financial Reports | ||
Supplementary Information | ||
PATIENT | Supplementary Information | |
QUALIFIED AND | ||
CONSULTANTS | ADMISSIONS | TRAINED NURSES |
700+ | 23,474 | 499 |
SURGERIES
15,421
CHANNEL
APPOINTMENTSEMPLOYEES
428,985 | 2,287 |
BEDS | |
(HIGHEST NO. OF | |
JCI | BEDS IN A SINGLE |
PRIVATE FACILITY) | |
ACCREDITATION | 264 |
ISLAND-WIDE LABORATORY NETWORK AND COLLECTION
LABORATORY NETWORK | PLAN FOR THE YEAR |
2023/24 | 2024/25 |
Main | Mini |
Labs | Labs |
4 | 8 |
OUR BUSINESS ACTIVITIES
COCO | Transform main |
and mini labs | |
14 | into medical |
centers | |
04 | |
Nos. |
Launch of new
medical centers/
COCO outlets in designated locations
07
Nos.
Setup the lab chain in other
private medical
institutes
02
Nos.
CHANNELING | RADIOLOGY | LABORATORY PHARMACEUTICALS | THEATRES | EMERGENCY |
SERVICES | SERVICES | TREATMENT UNIT (ETU) |
Nawaloka Hospitals PLC Annual Report 2023/24 | 05 |
PERFORMANCE HIGHLIGHTS
EMPLOYEES
ENVIRONMENT | |||
Employees | 2,287 | Energy consumed (kWh) | 9,216,574 |
Training (Rs. Mn.) | 1.6 | Water usage (m3) | 231,300 |
Training (Hours) | 7,094 | ||
Male : Female Ratio | 2:3 |
INFRASTRUCTURE | EXPERTISE AND | RELATIONSHIPS | ||
AND TECHNOLOGY | INNOVATION | |||
Property, plant | Laboratories | Employees with over | Patient Admissions | 23,474 |
and Equipment | 4 Main Labs | 10 years' experience | Channel | 428,985 |
(Rs. Mn.) | 509 | |||
15,996 | 8 Mini Labs | appointments | ||
7 In-house | No of Surgeries | 15,421 | ||
Pharmacies | No. of Consultants | 700+ |
STRONG DIAGNOSTIC AND PATHOLOGICAL SERVICES
The Nawaloka Hospital central laboratory is a world class facility equipped with state of the art lab machines including Sri Lanka's first fully automated modular system COBAS 6000. The facility is capable of conducting over 2,500+ range of tests, at high speed, efficiency and accuracy. The complex is the single largest medical diagnostic centre in Sri Lanka.
LEADER IN
CHANNELLING
SERVICES
Our channeling facility provides access to over 700+ expert consultants of numerous medical specialties.
FULLY-FLEDGED NURSES TRAINING SCHOOL
Established in 1985, the school has built a strong reputation for equipping students with the academic, clinical, practical and personal skills required for a professional career in health care. All nurses are absorbed into the Nawaloka Hospital Group on completion of the programme.
06 | Nawaloka Hospitals PLC Annual Report 2023/24 |
FINANCIAL HIGHLIGHTS
2023/24 | 2022/23 | CHANGE | ||||
For the year ended 31 March 2024 | Rs. | Rs. | Rs. | |||
` Income Statement Data | ||||||
Revenue | 10,379,164,804 | 9,305,061,318 | 11.54 | |||
Operating profit | 1,024,615,844 | (73,460,408) | 1,494.79 | |||
Profit/(loss) before tax | (247,007,212) | (1,910,781,335) | 87.07 | |||
Profit/(loss) after tax | 304,747,263 | (2,438,455,495) | 112.50 | |||
Total comprehensive (expense) for the year | (338,102,459) | (1,758,863,543) | 80.78 | |||
Gross profit | 5,616,640,676 | 4,635,090,908 | 21.18 | |||
Gross profit margin (%) | 54.11 | 50.0 | 4 | |||
Operating (loss)/profit margin (%) | 9.87 | (1.0) | 11 | |||
Net profit/(loss) margin (%) | 2.94 | (26.2) | 29 | |||
Return on asset (ROA) (%) | 0.05 | (0.39) | 0 | |||
Return on capital employed (ROCE) (%) | 0.22 | (1.49) | 2 | |||
Interest cover | 1.0 | 0.1 | 1 | |||
Return on equity | 0.07 | (0.5) | 1 | |||
` Financial Position | ||||||
Total assets | 18,695,096,944 | 18,995,059,239 | (1.58) | |||
Total liabilities | 14,109,698,516 | 14,071,558,352 | 0.27 | |||
Shareholders' equity | 4,585,398,428 | 4,923,500,887 | (6.87) | |||
Debt ratio | 0.75 | 0.74 | 1.99 | |||
Net assets per share | 3.25 | 3.49 | (6.79) | |||
Current ratio | 0.25 | 0.24 | 6.07 | |||
Quick assets ratio | 0.21 | 0.19 | 11.94 |
- Shareholder information
Number of shares in issue | 1,409,505,596 | 1,409,505,596 | 0% | |||
Earnings per share | (0.22) | (1.73) | 51 | |||
Dividend per share | 0 | 0 |
Nawaloka Hospitals PLC Annual Report 2023/24 | 07 |
AWARDS AND ACCREDITATIONS
ISO 9001:2015
Nawaloka Hospitals PLC has established a quality management system in accordance with its ISO 9001:2015 international standard. The quality management system implemented at Nawaloka Hospitals PLC encompasses all functional areas and follows naturally and sequentially from the customer related functions through the operational to the delivery or discharge function so as to meet the specified requirements of customers. Nawaloka Hospitals PLC is the first ISO certified Private Hospital in Sri Lanka (Year 2000) and has retained the standard for the past Twenty years up to present.
5 Crown Award For Food Hygiene
Leading healthcare provider Nawaloka Hospitals PLC received praise for the quality and hygiene of its food when presented with the prestigious 5 Crown Award for Food Hygiene by Ind-Expo Certification Ltd. for the fifth consecutive year. The hospital chain clinched the first of these awards in 2012 on its very first attempt and has gone on to further strengthen its food storage and preparation practices each subsequent year.
National Quality Award
The Sri Lanka National Quality Award is presented annually to recognise Sri Lankan Organisations that excel in quality management and quality achievement. The Quality award programme is organised and implemented by the Marketing and Promotion division of Sri Lanka Standards Institution (SLSI). Nawaloka Hospitals PLC was the only Hospital to win the Sri Lankan National Quality Award in the year 1998.
National Business Excellence Award
This is awarded by the National Chamber of Commerce (NCCSL) which recognises business enterprises that have demonstrated excellence in business, whilst contributing to the economic progress of the country.
Lab Accreditation ISO 15189:2012
Adhering to National and International Standards applicable to Clinical Testing Laboratory and Good Laboratory Practices (GLP). Nawaloka Laboratories (Pvt) Ltd. Will, at all times, works towards a common goal of providing cost effective total customer satisfaction by way of efficient and effective pathology testing services that combine precision, accuracy, quality, safety, integrity and courtesy.
08 | Nawaloka Hospitals PLC Annual Report 2023/24 |
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |