Annual Report of Durdans Hospital

EXCELLENCE IN HEALTHCARE...FOR EVERYONE.
DURDANS HOSPITAL | ANNUAL REPORT 2018/19

EXCELLENCE IN
HEALTHCARE...
Durdans Hospital
No. 03, Alfred Place
Colombo 03
Sri Lanka
Tel : +94 (0) 11 214 0000
Fax : +94 (0) 11 257 5302
+94 (0) 11 237 2632
Email : [email protected]
ANNUAL REPORT 2018/19
Corporate Information
NAME OF COMPANY LAWYERS

Ceylon Hospitals PLC Mr. D. F. R. Jayamaha
Hector Jayamaha Law Office
BRAND NAME
Contents
No. 228, Thimbirigasyaya Road
DURDANS Colombo 05
LEGAL FORM SECRETARIES

A quoted public company with limited Nexia Corporate Consultants (Pvt) Ltd
liability incorporated in Sri Lanka under the No. 181, Nawala Road
Companies Ordinance No. 51 of 1938 and Narahenpita
registered under the Companies Act No. 07
of 2007 REGISTRARS
Our Business Financial Reports SSP Corporate Services (Pvt) Ltd
Vision, Mission and Values 3 Annual Report of the Board of Directors on the COMPANY REGISTRATION NUMBER No. 546, Galle Road
Affairs of the Company 92
Financial Highlights 4 PQ 113 Colombo 03
Statement of Directors’ Responsibility 97
Historical Time Line 6
Our Leadership 8
Report of the Related Party Transactions STOCK EXCHANGE LISTING
Review Committee (RPTRC) 98
The Ordinary Shares of the Company are
Report of the Remuneration Committee 99
Our Leadership Report of the Nominations Committee 100
listed on the Colombo Stock Exchange of
Sri Lanka
Chairman’s Message 10 Audit Committee Report 101
Message from the Director Medical Services 14 Independent Auditor’s Report 103 REGISTERED OFFICE
Board of Directors 16 Consolidated Statement of Profit or Loss and No. 03, Alfred Place, Colombo 03
Senior Management Team 20 Other Comprehensive Income 106
Consolidated Statement of Financial Position 107 BANKERS
Performance and Capital Management Statement of Changes in Equity 108 Commercial Bank of Ceylon PLC
Value Creation Model 24 Statement of Cash Flows 110 Bank of Ceylon
Stakeholder Engagement 26 Notes to the Financial Statements 111 DFCC Bank PLC
Union Bank PLC
Financial Capital 28
National Development Bank PLC
Social and Relationship Capital 31 Value Added Statement 160
Nations Trust Bank PLC
Human Capital 54 Ten Year Summary 161 Seylan Bank PLC
Manufactured Capital 62 Share Information 162 Sampath Bank PLC
Intellectual Capital 67 Notice of Meeting 166 Hatton National Bank PLC
Natural Capital 74 Form of Attendance 167 People’s Bank
Form of Proxy 169
Governance AUDITORS
Corporate Governance 78 Corporate Information IBC B. R. De Silva & Co. Chartered Accountants
No. 22/4, Vijaya Kumaranatunga Mawatha
Enterprise Risk Management 86
Colombo 05
This report can be accessed online at

https://www.durdans.com
...for everyone.
At Durdans Hospital, we take pride in delivering
excellence in healthcare for everyone. With a name
founded on dedication and trust, our team remains
committed to serving people with warmth and
compassion.
The year under review has seen us rise to greater heights.

Durdans Hospital continued to set exemplary standards
in the provision of clinical expertise, state-of-the-art
technology and outcome oriented healthcare.
This report speaks of our year of expansion, strategic

investments made and standards set. As we continue to
redesign the future of Sri Lankan healthcare and create
enhanced value for our diverse stakeholder community
who have partnered us in our journey, we are indeed
humbled to be a hospital which continues to deliver
excellence in healthcare to everyone.
Vision
At the forefront of medical excellence, defining the future
of Sri Lankan healthcare.
Mission
To enhance the lives of our community at large, by
unfolding a paradigm shift in all service tiers and excelling
in preventative and compassionate patient care.
2 Durdans Hospital | Annual Report 2018/19

Values
Empowering Pride
Attract, inspire and motivate passionate individuals
Dedicated Compassion
Creating heartfelt, customer-centered experiences
Advancing Medical Excellence

Driving the medical industry towards greater heights
Prestige Beyond Our Borders

Enhancing our reputation beyond Sri Lanka
Our Business
Our Leadership
Performance and Capital Management
Governance
Financial Reports
Financial Highlights
Group 2015 2016 2017 2018 2019
Financial Results
Turnover (Rs. Mn) 4,083 4,728 5,289 5,733 5,806
Operating Profit (Rs. Mn) 390 643 621 723 682
Profit Before Tax (Rs. Mn) 266 557 525 603 549
Profit After Interest and Tax (Rs. Mn) 224 500 389 488 376
Net Profit Per Share (Rs.) 6.61 14.76 11.48 14.40 11.10
Statement of Financial Position

Fixed Assets - Net Book Value (Rs. Mn) 4,107 4,286 6,445 6,539 6,959
Total Assets (Rs. Mn) 4,932 5,366 7,939 8,093 8,797
Capital Employed (Rs. Mn) 3,857 4,225 6,530 6,738 7,265
Net Assets (Rs. Mn) 2,778 3,087 5,198 5,009 5,143
Ratios
Earnings Per Share (Rs.) 5.91 12.67 9.67 11.87 9.50
Annual Income Growth (%) 3.00 16.00 11.87 8.39 1.27
Interest Cover (times) 3.10 7.44 6.34 6.02 5.15
Net Assets Per Share (Rs.) 82.01 91.14 153.46 147.88 151.83
Return on Assets (%) 4.50 9.30 4.90 6.00 4.50
Return on Capital Employed (%) 10.00 15.00 10.00 11.00 9.40
Return on Equity (%) 8.10 16.20 7.50 9.70 7.40
REVENUE PROFIT AFTER TAX NET ASSETS PER SHARE
Rs. 5.8 Bn Rs. 376 Mn Rs. 151.83

TURNOVER - (Rs. Mn) PROFIT BEFORE TAX - (Rs. Mn) PROFIT AFTER INTEREST AND TAX - (Rs. Mn)
6,000 700 600
5,000 600 500

500
4,000 400
400
3,000 300
300
2,000 200
200
5,733
5,806
4,083
4,728
5,289
549
376
1,000 100
266
557
525
603
224
500
389
488
100
0 0 0
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
NET PROFIT PER SHARE - (Rs.) FIXED ASSETS - NBV - (Rs. Mn) TOTAL ASSETS - (Rs. Mn)
15 8,000 10,000
12 8,000
6,000
9 6,000
4,000
6 4,000
2,000
11.10
6,539
6,959
8,093
8,797
14.76
11.48
14.40
4,107
4,286
6,445
4,932
5,366
7,939
3 2,000
6.61
0 0 0
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
EARNINGS PER SHARE - (Rs.) RETURN ON CAPITAL EMPLOYED - (%) INTEREST COVER - (Times)
15 15 8
12 12
6
9 9
4
6 6
2
12.67
11.87
10.00
15.00
10.00
11.00
5.91
9.67
3.10
7.44
6.34
6.02
3 3
9.50
9.40
5.15
0 0 0
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
Excellence in Healthcare...for everyone. 5

Our Business
Our Leadership
Governance
Financial Reports
Historical Time Line
1939 1968 1993

A special focus was given to maternity care The Intensive Care Unit (ICU) was formally
A military hospital opens to treat
from 1968 when Durdans opened its first established.
British personnel in Ceylon and maternity ward as well as an outpatient
is known as the forerunner of the facility. 1995
Durdans Enterprises. The Endoscopy Unit was set up.
1982
1945 The Paediatric Ward, Surgical Ward and 1996
In 1945, a group of doctors recognised Operating Theatre complex was set up. The Pathological Laboratory and Blood
an opportunity to develop the fledgling Bank commenced operations.
healthcare sector as a private enterprise, 1984
and took over the former military hospital to Radiology services were introduced to the
establish Ceylon Hospitals Limited. public.
1997 2001 2005

Durdans established strategic alliances with A formal Emergency Treatment Unit was set Commencement of Ocular surgery and
the ‘Escorts Heart Institute and Research up. Cochlear Implant surgery for the first time in
Centre’ in New Delhi which is a renowned Sri Lanka.
institute in the field of Cardiology. 2002
The five-year modernisation program of 2010
1999 the hospital and the modernisation of the Durdans Medical and Surgical Hospital (Pvt)
The Heart Command Centre and Heart surgical theatre complex was completed. Ltd was unveiled to the public and became
Station became operational. fully operational.
2003
2000 Ceylon Hospitals Limited was listed on the 2012
Cardiovascular surgeries, invasive and Colombo Stock Exchange. Operations relating to the Diabetes and
interventional cardiac procedures Endocrinology Centre and Durdans Oral
commenced. 2004 Health Centre commenced.
The Neonatal and Dialysis Units were
established.

New technology for the Cardiac Fractional 2015 The Dietetic and Nutritional Care Centre as
Flow Reserve (CFFR) Measurement System well as ‘Enhance’ Cosmetic Care Centre and
The Phillips Alluraclarity Cardiac,
was launched in order to evaluate the inner the Physiotherapy and Sports Medicine Units
Angiography System and the advanced
diameter of a blood vessel. were established.
Ultrasound Phillips EPIQ 7 was installed.
Sleep Lab Test services and the Autologus
2013 Platelet Rich Plasma Liquid Procedure
2017
The Neuro Centre was established. (APRP) were introduced. A state-of-the-art Bone Densitometer (Dexa
Scanner), Dental X-ray System, Digital
2014 2016 Imaging Plate System and a Mobile X-ray
Durdans became the first hospital in System was introduced to the Radiology
Minimally invasive instruments for Coronary
Sri Lanka to be accredited with the Gold Department. Laboratory operations were re-
Artery Bypass Grafting (CABG) and valve
Seal of approval by the Joint Commission accredited with ISO 15189:2012, including
surgeries were introduced.
International (JCI). the Histopathology Unit the latter being a
first for a hospital.
2018
Relaunch of the Durdans brand under the 2019
slogan ‘Dedicated to You’, enhancing the Durdans Hospital continued to introduce next-generation diagnostics
customer experience with the introduction and patient care solutions to our portfolio, with the notable launch of the
of sophisticated technology, processes and Philips Azurion Image Guided Therapy System - the most advanced biplane
operations.
catheterisation laboratory in South Asia enabling cutting edge neuro,
The opening of a state-of-the-art 200-slot cardiac, vascular and oncological interventions.
multi-storied split-level car park to improve
accessibility and customer convenience. An advanced ENT Workstation was set up, ensuring comfort and precision
in ENT care. A range of cutting edge diagnostics were introduced during
Durdans Hospital received re-accreditation the year to uplift the level of patient care, including the Voluson E8
from the Joint Commission International gynaecological ultrasound, the Hologic Selenia 6000 digital mammogram
(JCI). (3D) with Tomosynthesis and the Olympus EVIS EXERA II endoscopy system.

“We’re keeping pace with our patients’ and
our industry’s changing needs by offering
the best facilities and services in diagnostics,
technology, expertise and care.”
OUR LEADERSHIP
Chairman’s Message 10
Message from the Director Medical Services 14
Board of Directors 16
Senior Management Team 20
Our Business
Our Leadership
Governance
Financial Reports
Chairman’s Message
... we aim to better ourselves year on

year by bringing together professional
expertise and experience in multiple
areas, ensuring standards maintained
are of high quality with due attention to
patient safety.
EXCELLENCE IN HEALTHCARE FOR

EVERYONE
Our success is based on our objective
to provide excellence in healthcare to
all those who seek medical assistance
and patronize our services. Combining
dedication and responsibility towards our
customers, we work towards delivering
efficient care and delivering long term value
to all our stakeholders. While maintaining
a strong balance sheet, we aim to better
ourselves year on year by bringing together
professional expertise and experience
in multiple areas, ensuring standards
maintained are of high quality with due
attention to patient safety. With Durdans
Hospital enjoying over 70 years of excellence
in healthcare, it is with pleasure that I present
Ajith Tudawe to you once again our performance for the
Executive Chairman financial year ended 31st March 2019.

FINANCIAL OVERVIEW rates contributed towards the growth in OPPORTUNITIES FOR GROWTH
Durdans Hospital reported a group deposit interest income although the flip Sri Lanka’s progress in the fields of
revenue of Rs. 5.8 Bn which represented a side involved a higher gearing to offset a maternal and child healthcare have been
marginal increase of 1.3% over its previous reduction in cash flows from lower patient remarkable. With a mortality rate of 33.8
financial year. As part of its 2022 vision, a volumes and borrowings for ‘Project 2022’. per 100,000 live births, an infant mortality
redevelopment program commenced in the Despite effective cost control measures rate of 10 per 1000 live births and a life
old wing of the hospital that involved the adopted by the Company, inflation and expectancy at birth of 75.3 years our health
closure of three wards and the relocation exchange rate elements coupled with a indicators continue to be satisfactory. The
of others. This had an impact on the bed significant increase in taxation incurred, downside is the ageing population which
strength and subsequent patient volumes. exerted a negative impact on the bottom- is the fastest in South Asia as well as the
Infrastructural improvements within the line. The new Inland Revenue Act saw an increase in Non-Communicable Diseases
Government sector also played a role in increase in corporate tax rates for the health (NCD) which includes diabetes, cancer,
the reduced patient numbers. However, the sector effective April 2018 to 28% from 12% cardiovascular disease, mental health
marginal increase in topline was attributable previously. In absolute terms, this translated issues and acute ailments as a result of
to the increase in overall service tariff into an increased tax expense of Rs. 173 increased urbanisation. On the other hand
rates, enhanced lab network coverage, Mn versus Rs. 115 Mn which reflected in a communicable diseases such as influenza,
channelling consultation fees which were post-tax bottom line of Rs. 376 Mn for the dengue and tuberculosis continue to pose
increased after a lapse of several years as financial year under review versus Rs. 488 a challenge.
well as income via collaboration with other Mn in the previous financial year.
health service providers. Higher interest

Our Business
Our Leadership
Governance
Financial Reports
Chairman’s Message
Lane Wing and Durdans Heart Centre.

Selected facilities will be relocated and
gender specific wards will be established.
The future is oriented towards minimally
invasive treatments which will in turn
reduce the period spent in hospital thereby
decreasing the demand for hospital rooms.
However, we intend enhancing capacity
with additional economy class rooms for
the middle income segment of society.
While anticipating a requirement for 40
rooms initially we hope to incorporate
an additional 40 rooms depending upon
the demand. In addition to this, capacity
building will also take place within the
General Operating Theatre area to
accommodate more day cases.
We intend creating a paradigm shift in the

way we do business so that our customers
experience a full-fledged service from start
While the situation above continues to drive online services that include channelling to finish. It is with this foundation that we
the demand for private healthcare, we have appointments, physician consultations, are in the process of redeveloping and
recognised that the field of geriatric care and diagnostic services among a myriad creating a new face for Durdans Hospital
which is more long term has become an of other facilities to grow its existing as a progressive way forward. While we
essential and fast growing area. We have customer base. The demand for such forge ahead in phases, we will continue to
looked at this as an opportunity considering convenience platforms continues to invest in innovative technology and in the
our ability to meet with the demands and increase especially with increased smart human resource function in terms of skill
requirements of this area in healthcare. phone penetration and the availability of and capacity building so as to enhance
Although Sri Lanka is in the early stages of convenient mobile applications around the economies of scale and improve efficiencies
medical tourism, the global medical tourism clock. As a pioneer in preventive health significantly. We intend creating centres of
market is expected to double to USD 50 Bn care, our comprehensive health screening excellence in specific areas initially so as
by 2021. Our low cost services, coupled with packages supported by experienced to provide optimal levels of medical care
a skilled base of medical professionals and medical specialists and professionals under one roof.
consultants serve as a strong foundation offer the general public an opportunity to
while our Joint Commission International identify risk factors and remedial solutions if A vacuum exists for trained technical skill
(JCI) accreditation is an endorsement of required sooner rather than later. within the health care industry which poses
the international standards we maintain in a serious constraint. As a means to address
patient safety and quality. INVESTMENT AND PARTNERSHIPS this, Durdans Hospital partnered with
The Durdans Vision 2022 is our medium Astron Institute of International Studies
We continue to invest in state-of-the-art term strategy to transform the way in in India to establish ‘Amrak Institute of
medical equipment and technology based which we offer healthcare services to Medical Sciences (Pvt) Ltd’ locally. Within
health platforms to maximise our medical our customers and to those who opt to Durdans classroom infrastructure, online
efficiencies and improve the customer utilise our services. We will unveil a brand and on-campus training programs are
convenience factor. Durdans offers new complex together with the Sixth offered to paramedical and healthcare

professionals which includes training dialysis APPRECIATION
technicians, laboratory technicians, cardiac Our growth and success lies in the
care technicians, radiology technicians, dedication and efforts of our people at
operation theatre technicians as well as every level and their perseverance in
medical records and health information striving to be better and do better in their
technicians. roles. I would like to extend my gratitude
and appreciation to the Board of Directors,
Students completing these programs are Senior Management as well as every
also provided with practical exposure to employee for their continued commitment
allow them to gain hands-on experience and drive to make the Durdans brand
and obtain employment sooner. The bigger, better and one to be remembered.
commercial operations of ‘Amrak’ are To all our visiting consultants, investors,
expected to commence from October 2019. shareholders and numerous stakeholders
who maintain their faith in our future, I look
Durdans Hospital also partnered with forward to working with you and taking the
Digital Holdings Lanka (Pvt) Ltd in order to Durdans brand to greater heights.
provide its customers with an integrated
e-commerce based digital medical Ajith Tudawe
appointment booking solution via the Executive Chairman
popular ‘Doc990’ booking application.
At present, this facility connects more 09th May 2019
than 1500 doctors across 80 hospitals and
provides services such as channelling of
doctors, tele-doctor services, delivery
of medicine to one’s doorstep as well as
access to lab reports at key laboratories.
In addition is the convenience of multi-
payment options for these facilities and the
fact that the application is integrated with
all local mobile operators. Digitisation of
the healthcare industry in this manner will
undoubtedly make patient conveniences
even simpler.
Approval was obtained from the

Presidential Secretariat to obtain funding
for patients undergoing cancer treatment
and brain surgeries at Durdans Hospital,
an option that was restricted to only heart
surgeries, kidney transplants and dialysis
procedures up until 2018.

Our Business
Our Leadership
Governance
Financial Reports
Message from the

Director Medical Services
Our differentiation lies in the diversity of
The healthcare landscape continues to
change rapidly in Sri Lanka. The increase
care offered, a service-oriented culture

in demand for healthcare services is
attributable to a corresponding rise in non-
and the fact that we continue to improve

communicable diseases such as diabetes,
heart disease and multiple forms of cancer.
our standards in patient care and the

As a result, healthcare service providers
have aligned themselves to offer a diverse
manner in which we offer it.

range of medical services. Durdans Hospital
is no exception and we continue to provide
our customers with a wide range of facilities
coupled with the delivery of high quality
standards in healthcare. State-of-the-art-
technology is in place together with a team
of dedicated consultant specialists, medical
and nursing staff as well as allied healthcare
professionals. Our differentiation lies in the
diversity of care offered, a service-oriented
culture and the fact that we continue to
improve our standards in patient care and
the manner in which we offer it.
One of our key areas of focus is to create

centres of excellence as we continue
to progress. With the growing need for
advanced care and treatment options,
we intend enhancing value in the areas
of Genitourinary surgical procedures,
Orthopaedics, ENT, Neurology and
Neurosurgery in addition to other key
units. Geriatric care is becoming a must to
support an ageing population. While longer
life could be a positive indicator from a
health services perspective, the challenge
lies in supporting age related illnesses such
as ‘Alzheimer’s disease’, ‘Dementia’ as well
as acute medical care for strokes and heart
related conditions. Advanced medical care
will enable faster recovery and help prevent
long term complications that will affect
ones’ quality of life. Modern technology
available at Durdans Hospital help clinicians
diagnose symptoms early with faster
turnaround times for treatment.
In the backdrop of growing sedentary

Dr. Harsha Baranage
lifestyles, significant emphasis is placed
Director Medical Services
on preventive healthcare. Many options

are available inclusive of health screening dedicated employees continues to
packages while Durdans continually creates provide immense support to those who
public awareness by promoting preventive require medical assistance as an inpatient
measures to achieve good health. The or visit for consultations, procedures
hospital has also partnered with multiple and investigations. Being the first JCI
corporates as a trusted healthcare provider accredited hospital in Sri Lanka, our services
to promote good health amongst its prioritise patient-centric care with a high
employees. consideration for patient safety.
Durdans Hospital continues to develop As the Director Medical Services, I

its day care facilities and aims to provide look forward to working with the team
the best in this regard among the health to benchmark Durdans Hospital as an
care providers within the private sector. establishment of medical excellence
Services are available around the clock for within the healthcare industry, ensuring
accident and emergency (A&E), outpatient the customer is given holistic care and an
facilities (OPD), pharmacy, diagnostics and unparalleled experience from beginning
imaging, laboratory and admissions. A fully to end while being the preferred medical
equipped, island-wide laboratory network services provider at all times.
has reinforced our presence as a primary
healthcare services provider within Sri Lanka Dr. Harsha Baranage
and has strengthened our brand presence. Director Medical Services
We value all our customers who patronise 09th May 2019

our services. Our team of trained and

Our Business
Our Leadership
Governance
Financial Reports
Board of Directors
PARENT COMPANY
CEYLON HOSPITALS PLC
AJITH ERANDAN TUDAWE South Asia Primary Care Research Network AHAMED SU-AYID MOHOMED ISMAIL
Executive Chairman and was elected as Chairman of the South Independent, Non-Executive Director
Ajith Tudawe is the Chairman of Ceylon Asia Board of RCGP International. The first With over 30 years of experience in the
Hospitals PLC (Durdans Healthcare Group) Sri Lankan to receive a WONCA Fellowship, fields of financial management, risk
and is a Senior Director of Tudawe Holdings he was also awarded an Honorary management, auditing, consulting and
Limited. His knowledge and extensive Fellowship from the Bangladesh Academy business advisory services, Su-ayid Ismail is
experience in Accounting and Finance of Family Physicians. the Founder/CEO of BAS Consultants (Pvt)
and his astute entrepreneurial skills have Ltd and provides consulting and advisory
combined to enable him to lead Durdans to SATHIS PRITHIVIRAJ TUDAWE services for SMEs and family businesses.
the forefront of the healthcare institutions in Director/ Senior Vice President – Su-ayid Ismail is a Fellow Member of
the country. He is a graduate in Accounting Administration the Institute of Chartered Accountants
and Finance from the United Kingdom. In the capacity of Senior Vice President of Sri Lanka, Fellow of the Chartered
He is a Fellow of the Institute of Chartered Administration and as Chairperson of the Management Accountants of UK, Member
Accountants in England and Wales, the Technical and Maintenance Committee, of the Institute of Internal Auditors and a
Institute of Chartered Accountants Australia Sathis Tudawe oversees the technical Former Partner of Messrs. Ernst & Young
and Institute of Chartered Accountants Sri and maintenance aspects of the business Chartered Accountants.
Lanka. He is also a Fellow of the Association operation while managing all security and
of Chartered Certified Accountants (ACCA), transport related operations in an advisory ASITE DRUPATH BANDARA TALWATTE
UK. capacity. He is also a Group Director of Independent, Non-Executive Director
Tudawe Holdings (Pvt) Ltd, its subsidiaries Asite Talwatte is the Chairman of
UPUL DULIP TUDAWE and associates and has over 40 years of Management Systems (Pvt) Ltd, the
Director/ Executive Vice President experience within the construction industry. Chairperson of the Integrated Reporting
Upul Tudawe serves as Group Director of Council of Sri Lanka and a Non-Executive
Tudawe Holdings (Pvt) Ltd and its subsidiary Y NIMAL RANJITH PIYASENA Director on the boards of several listed
companies. In addition, he also functions Non-Executive Director and private Companies. With over 37 years
as Chairman of Commercial Marketing As the Managing Partner of Y. N. R. of experience in the fields of Assurance,
Distributors (Pvt) Ltd. He holds a Bachelor of Piyasena & Company and Vice-Chairman of Business Risk and Advisory Services, he
Science degree in Microbiology from Texas Hotel Star Dust in Pottuvil, Nimal Piyasena served as Country Managing Partner of
Tech University and a degree in Medical contributes over 40 years of diversified Ernst & Young for over 10 years prior to
Technology from the University of Texas experience in the fields of Finance, his retirement in March 2016. He holds a
Health Science Centre in Houston, USA. Healthcare, and Trade Operations. Post-Graduate Diploma in Business and
Upul Tudawe is a Member of the American Financial Administration from the Institute
Society of Clinical Pathology (ASCP) and ASOKA SRIWICKREMA of Chartered Accountants of Sri Lanka and
the Australian Institute of Medical Scientists ABEYEWARDENE the University of Wageningen, Holland as
(AIMS). Independent, Non-Executive Director well as an MBA from the University of Sri
An Independent Director of Ceylon Jayewardenepura, Sri Lanka. He is a Fellow
DR A D PREETHIRAJ ASOKA Hospitals PLC, he serves as Chairman Member of the Institute of Chartered
WIJEGOONEWARDENE of the Audit Committee, Remuneration Accountants of Sri Lanka and the Chartered
Director/ Senior Vice President – Medical Committee and Related Party Transactions Institute of Management Accountants, UK.
Dr. Preethiraj Wijegoonewardene holds an Review Committee. He is an Executive
MBBS from India as well as a Postgraduate Director of Continental Insurance Lanka
Diploma in Family Medicine from the Ltd, Fellow of The Institute of Chartered
Postgraduate Institute of Medicine (PGIM) Accountants of Sri Lanka, Fellow of the
in Colombo. He is a Fellow of the College Certified Management Accountants of
of General Practitioners of Sri Lanka and Sri Lanka, Fellow of the Institute of Directors
was awarded the Honorary Fellowship of UK and a former partner of Messrs. KPMG
the Royal College of General Practitioners, Ford, Rhodes, Thornton & Co. Chartered
UK in November 2008. He is a Patron of the Accountants.

SUBSIDIARY COMPANY
DURDANS MEDICAL AND SURGICAL HOSPITAL (PVT) LTD
AJITH ERANDAN TUDAWE were created to directly assist humanitarian in Sri Lanka. He is currently the Director
Executive Chairman and environmental initiatives and is funded of the Postgraduate Institute of Medicine,
Refer Page 16 for the profile. by the diversion of 10% of pre-tax profits University of Colombo and Chairman of the
from the sale of Dilmah Tea. National Research Council of Sri Lanka.
UPUL DULIP TUDAWE
DILHAN CHRISHANTHA FERNANDO DR BANDULA WIJESIRIWARDENA
Director/ Executive Vice President
Refer Page 16 for the profile. Non-Executive Director Non-Executive Director
Dilhan Fernando serves as a Group A Consultant Physician, Dr. Bandula
DR A D PREETHIRAJ ASOKA Director of the MJF Group of Companies. Wijesiriwardena holds over 33 years of
WIJEGOONEWARDENE He is the Chairperson of the Business experience in the Government Healthcare
and Biodiversity Platform, pioneered sector. He was the President of the Ceylon
Director/ Senior Vice President – Medical
by ‘Dilmah Conservation’ together with College of Physicians in 2005. He presently
Refer Page 16 for the profile.
the Ceylon Chamber of Commerce and works for the private healthcare sector
International Union for Conservation of full-time. Dr. Wijesiriwardena pioneered
SATHIS PRITHIVIRAJ TUDAWE
Nature (IUCN). He initiated the concepts the introduction of Clinical Practice
Director/ Senior Vice President – of tea gastronomy, tea lounges and set up Guidelines through the Ceylon College of
Administration the world’s first consumer and hospitality Physicians which are presently being used
Refer Page 16 for the profile. tea school, ‘Dilmah School of tea’, to impart island-wide. With numerous national and
knowledge of and teach the finer aspects of international publications to his credit,
Y NIMAL RANJITH PIYASENA tea in an effort to introduce the beverage Dr. Wijesiriwardena won the Presidential
Non-Executive Director to the younger generation. He is also Award for his clinical research in 2000 and
Refer Page 16 for the profile. actively involved in work surrounding the was awarded Honorary Fellowships by The
‘MJF Charitable Foundation’ and ‘Dilmah Royal Australian College of Physicians and
ASOKA SRIWICKREMA Conservation’. Colleges of Medicine of South Africa. He
ABEYEWARDENE holds an MBBS (Colombo), MD (Colombo),
Independent, Non-Executive Director PROF JANAKA DE SILVA MRCP (UK) and is a Fellow of the American
Non-Executive Director College of Physicians and the Ceylon
Prof. Janaka de Silva is Senior Professor College of Physicians.
MERRILL JOSEPH FERNANDO and Chair of Medicine, University of
Kelaniya, and a Consultant Physician of AHAMED SU-AYID MOHOMED ISMAIL
Non-Executive Director
the Colombo North Teaching Hospital. Independent, Non-Executive Director
Merrill J. Fernando is the founder of
Professor de Silva was educated at Royal Refer Page 16 for the profile.
‘Dilmah’, the reputed tea Company with
College. He obtained his MBBS and MD
a vast global presence. A humanitarian
degrees from the University of Colombo
whose underlying philosophy is to make
and a D.Phil. from the University of Oxford.
business a matter of human service, he was
He was awarded Fellowships from the Royal
awarded the prestigious ‘Business for Peace
College of Physicians of London, Ceylon
Award’ in Oslo in 2015 by the Nobel Peace
College of Physicians, National Academy of
Laureates Committee and was honoured
Sciences of Sri Lanka, the Royal Australasian
with the FIRST Award for Responsible
College of Physicians and the Royal College
Capitalism in November 2016 for improving
of Physicians of Thailand. He is a recipient
the lives of underprivileged children
of the titular national honour ‘Vidyajyothi’,
and deprived communities. As a unique
the highest award for scientific achievement
sustainability initiative, the ‘MJF Charitable
Foundation’ and ‘Dilmah Conservation’

Our Business
Our Leadership
Governance
Financial Reports
Board of Directors
SUBSIDIARY COMPANY
DURDANS MEDICAL AND SURGICAL HOSPITAL (PVT) LTD CONTD.
ARJUN RISHYA FERNANDO AMINDA SANJEEVE TUDAWE

Independent, Non-Executive Director Executive Director
Arjun Fernando was appointed to the As a Director of Durdans Medical and
Board of Durdans Medical Surgical Surgical Hospital (Pvt) Ltd and Durdans
Hospital (Pvt) Limited in November 2017. Heart Centre (Pvt) Ltd, Aminda Tudawe
He currently serves as a Director on the functions as Head of Supply Chain and
Boards of Central Finance PLC, Nations Procurement in a strategic capacity while
Trust Bank PLC, Home Finance Company, coordinating corporate strategy. He is
Fiji, The Solutions Group (Pvt) Ltd and First presently involved in the Durdans Vision
Media Solutions (Pvt) Ltd. He also serves 2022 project and is working with the Project
on the Boards of NDB Capital Holdings, Consortium. He was actively instrumental
NDB Securities (Pvt) Ltd and NDB Zephyr in overseeing the implementation of JCI at
Partners Ltd for and on behalf of the NDB Durdans Hospital during the period 2012 to
Capital Group of Companies. He has 2014 and played a key role in the car park
functioned as the CEO/ Director of DFCC building project from November 2015 to
Bank and was on the director boards of March 2018. He holds a Bachelor of Science
several of DFCC Bank’s subsidiaries, joint (Hons) degree in Business Management
ventures and associates. Prior to joining from the University of Wales, UK as well
DFCC Bank, Mr. Fernando has had a long as a Master of Business Administration
and illustrious career at HSBC Sri Lanka and (MBA) degree from the School of Business,
overseas. He holds an M.Sc. (Management) University of Leicester, UK.
from Clemson University, USA and a
B.Sc. (Engineering) from Southern Illinois
University, USA. He is also an Associate of
the Chartered Institute of Bankers (ACIB),
UK.

SUBSIDIARY COMPANY
DURDANS HEART CENTRE (PVT) LTD
AJITH ERANDAN TUDAWE DR A NEVILLE DHARMAWANSA

Executive Chairman Independent, Non-Executive Director
Refer Page 16 for the profile. With decades of experience in the
healthcare sector, Dr. Dharmawansa holds
UPUL DULIP TUDAWE an MBBS from the University of Ceylon as
Director/ Executive Vice President well as Postgraduate qualifications from the
Refer Page 16 for the profile. UK. He is a Fellow of the Royal College of
Physicians in England and was a practicing
DR A D PREETHIRAJ ASOKA physician in the Sri Lankan private
WIJEGOONEWARDENE healthcare sector.
Director/ Senior Vice President - Medical

SUMITH ARANGALA
Independent, Non-Executive Director
SATHIS PRITHIVIRAJ TUDAWE Sumith Arangala is the Chief Executive
Officer of LVL Energy Fund PLC. He is on
Director/ Senior Vice President -
the Board of its investee companies and
Administration
is a Non-Executive Independent Director
of Renuka Agri Foods PLC. He is also the
Acting Chief Executive Officer of Lanka
Y NIMAL RANJITH PIYASENA
Ventures PLC. He has previously worked at
Non-Executive Director the Capital Development and Investment
Refer Page 16 for the profile. Company Limited, the pioneer venture
capital company in Sri Lanka and counts
DR R CHANDRAWANSE RAJAPAKSE nearly 35 years of experience in private
Independent, Non-Executive Director equity, venture capital and capital markets.
Dr. Rajapakse served as the Director He holds a Bachelor of Engineering
Medical Administration of Durdans degree and a Graduate Diploma in Quality
Hospital. With significant experience as a Technology from the Royal Melbourne
senior medical administrator, he served as Institute of Technology, Australia. He is
an officer of the Sri Lanka Army Medical also a Graduate Member of the Institute of
Corps and its Commanding Officer from Engineers, Australia.
1989 to 1991, Director of the Government
Hospital, Kurunegala, Director of the AMINDA SANJEEVE TUDAWE
Teaching Hospital, Kandy, the first Director Executive Director
of the new Sri Jayewardenepura Teaching Refer Page 18 for the profile.
Hospital and the Director General, Hospital
Services in the Republic of Seychelles.
He holds an MBBS from the University of
Ceylon, a Post Graduate Diploma in Health,
New Zealand and is a fellow of the SLCHA.
Dr. Chandrawanse Rajapakse retired from

the Board of Directors of the company with
effect from 27th November 2018

Our Business
Our Leadership
Governance
Financial Reports
Senior Management Team
DR HARSHA BARANAGE Support Services Council of the Tertiary & AMINDA SANJEEVE TUDAWE
Director Medical Services Vocational Education Commission, while Director Supply Chain
Dr. Harsha Baranage joined Durdans as being a member of the College of General Please refer Page 18 for the profile.
Director Medical Services in December Practitioners, Sri Lanka Medical Association,
2018. He holds a Degree in Medicine Independent Medical Practitioners DR JITHENDRI PERERA
(MD), a Post Graduate Degree in Association and the College of Community
Deputy Director Medical Services
Health Administration, M.Sc. in Health Physicians of Sri Lanka.
Dr. Jithendri Perera joined the Company
Administration from Asia-e University as well in 2006 and has acquired knowledge of
as a Diploma in General Practice (MCGP). MAJ GEN LAL PADMAKUMARA
the operations across the Group. She was
Dr. Baranage carries 12 years of experience Chief Operating Officer absorbed into the management team in
in the capacity of Medical Director at Asiri With over 35 years of experience November 2012 and functions as Deputy
Central Hospital and Asiri Surgical Hospital. encompassing military training in Director Medical Services since April 2018.
He was instrumental in setting up the first senior leadership positions, Maj. Gen. She was instrumental in coordinating clinical
Bone Marrow Transplant Unit and Stroke Padmakumara joined the Company in 2017 and non-clinical activities to achieve Joint
Unit in Sri Lanka creating a landmark within and currently serves as the Chief Operating Commission International (JCI) accreditation
the private healthcare sector. He also led Officer. He holds a Bachelor of Arts degree for Durdans Hospital in the capacity of the
the team at Asiri Central Hospital to achieve from the University of Colombo, a Master’s Senior Manager-in-Charge of the Quality
the JCI accreditation in 2016. He was a degrees in Defence Studies from the Assurance Department. She holds an
recipient of the Hospital Management University of Kelaniya and the National MBBS Degree from Rajiv Gandhi University,
Asia awards, has been honoured by the University of Dhaka, Bangladesh, as well as Bangalore, India with her post qualifying
Government of Maldives and has received a Master’s degree in Management Studies experience at hospitals in both India and
several awards and accolades in Sri Lanka. from Osmania University, Hyderabad, Sri Lanka. Besides her administrative role,
He coordinated multiple events relating India. His experience in the army involved her interest in clinical medicine, especially
to health, appeared on many programmes a diverse range of responsibilities in Primary Care Family Medicine led her to
and has published literature in view of including strategic planning, command successfully complete the MCGP diploma
promoting health in the country. decision making, administration, security course conducted by the College of
management, officer training at varied General Practitioners of Sri Lanka in 2017.
DR SUNIL RATHNAPPREYA levels, assisting Government authorities,
Deputy Director Medical Administration forecasting and budgeting of resources ANAGI KARUNASENA
Dr. Sunil Rathnappreya joined Ceylon and human resource management in a
Chief Financial Officer
Hospitals PLC in June 2018. He is a Medical 200,000-member organisation.
Anagi Karunasena joined the Company
Practitioner by profession and holds an in 2014 and presently oversees the
MBBS (University of Colombo), M.Sc. (Post MAHANIL PERERA
finance function of the Group. She
Graduate Institute of Medicine, University Head of Laboratories oversees multiple functions in this
of Colombo) and an MBA in Healthcare Mahanil Perera joined the organisation regard which encompasses establishing
(Sikkim Manipal University, India). He served in 2011 and presently holds the post of financial strategies, risk identification and
as the Director Medical Services of Lanka Head of Laboratories. Having over 25 years management, identifying opportunities
Hospitals PLC, Medical Director of the of experience in business development, for investment and growth, improving cost
National Council for Mental Health, Course marketing and management, Mahanil efficiencies and in-depth monitoring of
Coordinator of the Post Graduate Institute Perera is responsible for the island-wide financial performance as well as financial
of Medicine, Executive Director of the laboratory network which span over 75 and regulatory compliance. Her post
Institute for Occupational Health and Safety branches. The development, expansion and qualifying experience in the field of finance
and as the Medical Officer of the Ministry operations of the Durdans Medical Centres spans over 19 years and she has gained
of Health. Counting over 35 years of and Laboratories and Collection Centres experience in diverse business sectors such
experience including 15 years as a medical come under his purview. He holds a Post as manufacturing, financial, construction,
administrator, he is a council member of Graduate Diploma in Marketing from the Sri power and energy and advisory services
the Private Health Services Regulatory Lanka Institute of Marketing. prior to joining Durdans. She holds a
Council, member of the Health Care &

Bachelor of Science degree in Management from the British Computer Society UK, a
from the University of Sri Jayewardenepura, Diploma in Information Systems from the
Colombo as well as a Master’s degree Australian Computer Society and a Diploma
in Business Administration from the in Computer Systems Design from the
Postgraduate Institute of Management, National Institute of Business Management.
Colombo. She is a Fellow Member of the
Institute of Chartered Accountants of Sri GAYANTHIKA PATHIRANNEHE
Lanka, an Associate Member of the Sri Head of Human Resources
Lanka Institute of Bankers as well as a With over 23 years of experience
Member of CPA Australia. in the fields of human resources
and administration across multiple
RAKSHITHA TUDAWE organisations, Gayanthika Pathirannehe
Head of Strategy and Business presently oversees the Human Resource
Development function of the Group. Her experience
Rakshitha Tudawe oversees the in the capacity of General Manager and
development and execution of strategic Consultant previously encompassed the
initiatives for the Group, having joined the broad areas of policy formulation, coaching
Company in 2016. He holds a Bachelor and counselling, workforce planning and
of Science (Hons) degree in Business recruitment, industrial labour management,
Economics from the School of Economics, training and development, performance
University of East Anglia in Norwich, a and grievance management, social
Master’s degree in Management from compliance, compensations and benefits
Loughborough Business School and to name a few. She holds a Bachelor of Arts
attended executive programs at Insead degree from the University of Colombo,
Business School France. a Diploma in Psychology Counselling
from the Institute of Psychologists Sri
SANJEEWA KODIKARA Lanka, a Certificate Course in Industrial
Chief Information Officer Relations, Human Resource Management
With an experience of 19 years, Sanjeewa and Development from the Employers
Kodikara joined the Company in 2017 Federation of Ceylon and a Diploma in
and oversees the information technology Personnel Management from the National
arm of the business. He is responsible Institute of Business Management.
for enhancing the convenience factor in
the provision of medical services using
new initiatives and technologies, the
implementation of lean management
practices and the development of hardware
and cloud platforms, as well as providing
smarter reporting deployment methods.
His experience in the field of IT extends
to senior positions held previously at EAM
Maliban Textiles (Pvt) Ltd, Orit Trading
Lanka, Orit Apparels Lanka (Pvt) Ltd
and Quantum Clothing Lanka (Pvt) Ltd.
He holds a Master’s degree in Business
Administration from Buckinghamshire New
University UK, a Postgraduate Diploma

“Our warm, compassionate service is our
trademark - and this dedication, coupled
with our comprehensive offering of medical
services and skills ensures excellence in
outcome-oriented healthcare.”
PERFORMANCE AND
CAPITAL MANAGEMENT
Value Creation Model 24
Stakeholder Engagement 26
Social and Relationship Capital 31
Human Capital 54
Manufactured Capital 62
Intellectual Capital 67
Natural Capital 74

Our Business
Our Leadership
Governance
Financial Reports

VALUE CREATION MODEL
Inputs HOW WE CREATE VALUE

FINANCIAL CAPITAL
Shareholder funds and debt
Cash flow from operations
rs
ve
Le
HUMAN CAPITAL n nt
Employee diversity tio eme
a g
ea
an
Training and development
Cr
Experience M
Responsible practices e
lue
rc
Benefits and rewards
ou
Va
Skills and competencies
es
ans
R
Radiology and Imaging
an
Durd
Laboratory Services
Hu m
SOCIAL AND RELATIONSHIP CAPITAL
Critical Care
Investor relations
Accident and Emergency Care
Customer relations
Wellness and Preventive Care
Health and safety
|
Gynaecology and Obstetrics

Product responsibility
Nephrology
Framework
Community development
Ambulance Services
Business partnerships
Blood Bank
Neurology
Audiology and ENT Care
MANUFACTURED CAPITAL
Ophthalmology
Investment in property,
ity
Oncology
plant and equipment
abil
Cardiac Care
Capacity expansion
Orthopaedics
n
tai
Dental and Oromaxiofacial Services

s
Su
INTELLECTUAL CAPITAL
Brand stewardship
|
Research and development

Technological expertise
e
nc a
Systems and processes ern
ov
IT G
NATURAL CAPITAL
Energy
Water
Waste
Emissions
SDGs Impacted

Outputs
FINANCIAL CAPITAL
Revenue and profits
Shareholder returns and dividends
Payments to other stakeholders
Share price appreciation
Str
at
eg HUMAN CAPITAL
y
a Staff motivation
Talented, efficient workforce
nd
Job satisfaction
Re
Career progression
so
Safe and equitable environment

urc
Rheumatology
Genito-urinary Care
eA
Pharmacy
lloca
OPD Services
Community skills development
Diabetes and Endocrinology
Sound investment decisions
tion
Gastroenterology
Lasting supplier/ distributor and stakeholder
Plastic and Reconstructive Surgery
relations
Vaccination Services
Customer satisfaction and retention
|
Dermatology and Cosmetic Care

Psychiatry and Psychological
Corpor
Services
Dietetics and Nutrition
Ability to address demand
EEG, EMG Services
ate
Cutting-edge healthcare solutions

Paediatric Care
Enhancing standards
Physiotherapy and Rehabilitation
Go
Improved reach, organisational growth

ern v
an
ce
Intellectual property
|
Patents and copyrights
Ris
kM Improved efficiencies
ana Unique knowledge and expertise
gem
ent
NATURAL CAPITAL
Efficient and responsible disposal of effluents
and waste
Reduction of carbon footprint
Reduced utility consumption
SDGs Impacted

Our Business
Our Leadership
Governance
Financial Reports

STAKEHOLDER ENGAGEMENT
Our focus remains on creating value of health and wellness and providing diverse stakeholders, and describes the
through partnership and collaboration – opportunities for growth. The following initiatives taken to further strengthen our
enhancing quality of life, driving lifestyles table details our engagement with our relationships during the year.
Key Stakeholders Focus Areas Strategic Response Method and Frequency of Engagement
Improve patient Compassionate care Facebook - Weekly

experience Streamlined processes Surveys/customer feedback - Daily
Best practices in healthcare CRM - complaint management - Daily
Quality accreditations and standards Dedicated email for customer queries -
Quality Audits Daily
Improved Accessibility ATL/ BTL
CUSTOMERS Innovative Practices Bi-weekly articles
Patients Newsletters
Relatives/ Family Enhance patient Stringent safety and hygiene mechanisms
safety Minimally invasive procedures
Experienced, skilled staff
Emergency Preparedness initiatives
Address emerging Vision 2022 · Next generation healthcare

needs in healthcare solutions
Sustainable career HRIS Individual performance review - Annually

growth Performance Reviews Quality initiative awards - Quarterly
Training and Development Round table discussions - Monthly
Competitive Remuneration Get together - Annually
Group sale - Bi-annually
Christmas carols - Annually
EMPLOYEES Retention Engagement Events Vesak Bhakthi Gee - Annually
Executive Staff Benefits and Rewards Nurses’ Day Celebrations - Annually
Non-Executive Staff Newsletters
Product quality Periodic reviews Brand engagement - Quarterly

Clearly defined quality guidelines Supplier visits - Annually
Cultivating relationships with globally Supplier training - Annually
recognised brands
Relationship Supplier Engagement

BUSINESS PARTNERS building Training and Development
Brands (Pharmaceuticals, Regular Meetings
Medical Devices and
Medical Consumables)
Suppliers

Key Stakeholders Focus Areas Strategic Response Method and Frequency of Engagement
Transparency and Increased awareness Annual General Meeting

accountability Compliance with legal and regulatory Annual Report
requirements Interim Reports
Relevant, timely disclosures Feedback
Sustainable returns Profitable returns

INVESTORS Commendable performance
Expansion and development of resources
Remaining relevant and competitive
Optimising resources
Improving access to Free clinics and medical camps Medical camps - Annually
healthcare Free services Free clinics - Quarterly
CSR initiatives Sports meets - Annually
Parent craft - Quarterly
CMEs - Quarterly
Increasing Awareness building programmes Medicare National Exhibition - Annually
SOCIETY awareness on Participation in medical events
emerging issues
Underprivileged
Communities Job creation
Contribution to
Medical Fraternity, Local sourcing
economic growth
Consultants, GPs,
General Public
Environment Compliance Licenses from CEA, PHSRC, CMC -

Responsible waste disposal Annually
Certificate from CEA - Annually
Quality and Industry Obtain relevant industry certifications License from AEA - Once in two years
Standards Assessment Tax to CMC - Annually
Waste collection fee to CMC - Annually
Regulatory Bodies Governance and Compliance Compliance with CSE, CASL, SLASSMB
Private Health Services Accountability regulations - Quarterly, Bi-Annually and
Regulatory Council, Annually
Central Environment Compliance with Ordinances/ Acts,
Authority, Atomic Human Compliance with relevant authorities pricing and taxes - where applicable
Energy Authority,
Colombo Municipal
Council, Colombo
Stock Exchange, CASL,
SLAASMB

Our Business
Our Leadership
Governance
Financial Reports

FINANCIAL CAPITAL
SDGS IMPACTED: REVENUE - (Rs. Mn) OTHER OPERATING INCOME - (Rs. Mn)
7,000 60
56
5,289
4,728
6,000
4,083
5,806
5,733
5,000
50
4,000
3,000
At Durdans, our financial capital plays
38
40
35
2,000
a significant role in the hospital’s daily
34
35
operations, while ensuring its growth, 1,000
expansion and continuity. During the year, 0 30
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
we continued to utilise our financial capital
to create and distribute sustainable value
for our shareholders, employees, financiers
and the government. The country’s economic condition that
prevailed during the year also resulted in Year Operating Other
REVENUE the Group not being able to achieve its Income Operating
intended occupancy level. The exchange Income Growth
The Group reported marginal increase in
rate pressure on the cost of living index (Rs. Mn) %
revenue of Rs. 5.81 Bn compared to the
previous financial year’s revenue of Rs. resulted in lowering the spending power
2015 35 3%
5.73 Bn. With the purpose of remodeling of the average consumer, which resulted
the buildings under the ‘Project 2022’ in a declining number of patients seeking 2016 38 9%
plan, the Company shut down three of private hospital services in the year under
2017 34 -11%
its frequently patronised wards to pave review.
the way for construction contractors to 2018 35 3%
commence the required demolition and OTHER OPERATING INCOME
2019 56 60%
construction work. Additionally, some Operating income at Group level grew by
of the revenue generating units had to 60% to Rs. 56 Mn compared to Rs. 35 Mn
be closed temporarily due to shifting of in the previous year. This was mainly due to FINANCE COST
operations from the proposed development the car park income being accounted for a
Finance cost increased by 11% to reach
area to new locations, which prevented full financial year as opposed to the car park
Rs. 136 Mn in the financial year 2018/19,
full occupation of some of the revenue income accounted for only a few months in
compared to the previous financial year.
generating units of the Group. the year before. Further, a major contributor
Even though market interest rates for
to other operating income was the disposal
deposits increased to promote savings
proceeds of property, plant and equipment
Year Revenue Revenue among the population, the negative impact
during the year which increased by Rs. 8 Mn
(Rs. Mn) Growth % of the same was reflected on businesses in
compared to the year before. The shutdown
terms of increasing cost of borrowings. The
of wards as previously mentioned resulted
2015 4,083 3% increase in Company borrowings resulting
in a big quantity of furniture, fixtures and
from the ‘Project 2022’ financing and the
2016 4,728 16% fittings being disposed of in addition
routine investment in technologically
to routine disposal proceeds arising
2017 5,289 12% advanced medical equipment at Group
from periodic medical and other asset
level resulted in the term loan cost to
2018 5,733 8% condemnation processes.
increase by 4% compared to the previous
2019 5,806 1% year. The cost of overdrafts increased
at Company level due to the increased
intermittent use of short-term facilities to
bridge the temporary cash flow gaps arising
from low operating volumes.

FINANCE COST - (Rs. Mn) FINANCE COST AND FINANCE by the new Inland Revenue Act of 2017.
INCOME - (Rs. Mn) NPBT was also impacted by the increased
150
136
financed cost as explained previously.
136
150
125
122
120 120 NET PROFIT AFTER TAX (NPAT)
98
125
86
90 The Group’s Net Profit After Tax (NPAT)
122
64
declined to Rs. 376 Mn from the previous
86
61
90
98
60 year’s Rs. 488 Mn. This was partly
37
attributable to the decline at the level of
18
30
16
60 NPBT as explained previously. The tax

2015 2016 2017 2018 2019 0 expenses of the Group increase by 50% due
2015 2016 2017 2018 2019
to the new Income Tax rate applicable to
Finance Cost Finance Income
the healthcare sector increasing from 12% in
the previous year to 28% in the current year.
Year Finance Finance
Cost Cost FINANCE COST IN DETAIL
Growth Year NPAT NPAT
(Rs. Mn) % 2018 2019 % (Rs. Mn) Growth %
2015 125 -33% Loan and Lease 92 96 4% 2015 224 -13%

2016 86 -31% Interest
2016 500 123%
2017 98 14% Debenture Interest 6 0 -100%
2017 389 -22%
2018 122 24% Overdraft Interest 24 40 67%
2018 488 25%
2019 136 11% Total 122 136 11%
2019 376 -23%
NET PROFIT TAXATION

Year Finance Finance Net Profit Before Tax (NPBT)
Income Income Group Net Profit Before Tax (NPBT) Year 2018 2019 %
Growth declined by Rs. 54 Mn, displaying a
(Rs. Mn) % reduction of 9% in comparison to the Taxation 115 173 50%
previous year. Despite the Group’s efforts
2015 16 -16%
resulting in a savings of approximately
2016 18 13% Rs. 33 Mn during the year through its NET PROFIT AFTER TAX - (Rs. Mn)
continued efforts to deploy staff effectively
2017 37 106% 500
and right-size the organisation to bring
2018 64 73% in more cost efficiencies, other operating 400
expenses such as rent cost, new location
2019 61 -5% 300
setup costs and cost of renovations
resulted in increasing the annual operating 200
expenses far more than the aforementioned
savings. An increase in rent cost was 100
376
224
500
389
488
observed with the introduction of the new

0
10% Withholding Tax on rent payments 2015 2016 2017 2018 2019
(irrespective of the rent paid) introduced

Our Business
Our Leadership
Governance
Financial Reports

FINANCIAL CAPITAL
VALUE GENERATED AND DISTRIBUTED VALUE GENERATED AND DISTRIBUTED -

GROUP - (%)
Economic Value Generation (Rs. Mn)
80
62
60
Group Company 60
2019 2018 2019 2018

40
Rs. Rs. Rs. Rs.
26
22
20
Direct Economic Value Generated 2,810 2,682 1,723 1,575
6
5
4
4
0
To
Employees
To
Government
To
Financiers
To
Shareholders
To Expansion
and Growth
Economic Value Distributed 2,174 1,988 1,402 1,351
Economic Value Retained 636 694 321 224
2,810 2,682 1,723 1,575 2019 2018
Group Company
2019 2018 2019 2018
To Employees 62% 60% 64% 69%

To Government 5% 4% 3% 2%
To Financiers 5% 4% 7% 7%
To Shareholders 6% 6% 7% 8%
To Expansion and Growth 22% 26% 19% 14%

Durdans Hospital promises the highest

At Durdans, the strength of our
relationships defines our success. As part
standards of patient care, capable of

of our social and relationship capital, the
hospital has identified four major segments
providing a wide range of healthcare

with whom we engage on a daily basis,
namely our customers, business partners,
services to support national health and

investors and the surrounding community.
During the year, we focused on developing
wellness.
these relationships to foster growth and
partnership, and augment our delivery of
the Durdans promise.
cater to their needs, discussed further in the A COMPREHENSIVE HEALTHCARE

CUSTOMERS Manufactured Capital section in this report. SOLUTION
SDGS IMPACTED: Durdans Hospital promises the highest
We have also identified new customer standards of patient care, capable of
segments during the year, and introduced providing a wide range of healthcare
mechanisms and initiatives to target services to support national health and
emerging markets such as the UAE, wellness. The hospital is fully equipped to
Maldives and Seychelles in order to provide provide patients with healthcare solutions
them with the highest levels of medical spanning diagnostics, medical services and
We continued to monitor customer trends care. surgical care.
and needs in order to further enhance the
overall customer experience and curate
our offerings to address emerging needs
SERVICES WE OFFER
in healthcare, while delivering customised,
personalised services to the people. Accident and Emergency Care Nephrology
During the year, we identified a greater Ambulance Services Neurology
need for out-patient services amongst our
customers, and have taken measures to Audiology Oncology
Cardiology Ophthalmology
PATIENT CATEGORIES
Dental Services Orthopaedics
Dermatology and Cosmetic Care Plastic and Reconstructive Surgery
Out Patients
Diabetes and Endocrinology Psychiatry and Psychological Services
21% In-Patients
Dietetics and Nutrition Rheumatology
EEG, EMG and ENT Services Urology
Gastroenterology Vaccination Services
Gynaecology and Obstetrics Venereology
Haematology Laboratory Services
79% Immunology OPD Services
Microbiology Pharmacy
Physiotherapy and Rehabilitation Radiology

Our Business
Our Leadership
Governance
Financial Reports

With the rise of Non-Communicable In order to address these developments, ‘Comprehensive’, ‘Executive’, ‘Regular’ and
Diseases (NCDs) such as heart disease, Durdans Hospital offers Preventive Health Basic. The customer also has the choice
diabetes, cancer and asthma, the Packages comprising essential screenings of adding to the existing packages from a
consequent need for enhanced medical and tests to ensure early diagnosis host of Optional Tests following doctor’s
intervention is transforming the healthcare and promote preventive care, allowing recommendation. We are further taking
industry and remains integral to improving patients to monitor and maintain good steps to expand these health check-
our customers’ way of life. health. These diagnostic services are up programmes to locations outside of
offered under four key categories, namely Colombo in the near future.
Basic Health Check Regular Health Check Executive Health Check Platinum Health Check
FBC - Full Blood Count FBC - Full Blood Count FBC - Full Blood Count FBC - Full Blood Count
FBS - Fasting Blood Sugar FBS - Fasting Blood Sugar FBS - Fasting Blood Sugar FBS - Fasting Blood Sugar
Lipid Profile HBA1C (Glycosylated HBA1C (Glycosylated HBA1C (Glycosylated
Haemoglobin) Haemoglobin) Haemoglobin)
Serum Creatinine
Lipid Profile Lipid Profile Lipid Profile
Gamma GT
Serum Creatinine Renal Profile Renal Profile
SGPT - Serum Glutamic
Pyruvic Transaminase Gamma GT Liver Profile Liver Profile
ESR - Erythrocyte SGPT - Serum Glutamic Thyroid Profile 3 Thyroid Profile 3
Sedimentation Rate Pyruvic Transaminase
ESR - Erythrocyte ESR - Erythrocyte
UFR - Urine Full Report TSH (3rd Generation) Sedimentation Rate Sedimentation Rate
Stool for Occult Blood ESR - Erythrocyte UFR - Urine Full Report UFR - Urine Full Report
Sedimentation Rate
Chest X-Ray with Report Stool for Occult Blood Stool for Occult Blood
(Once in 3 years) UFR - Urine Full Report
Chest X-Ray with Report Chest x-Ray with Report
ECG - Electrocardiogram Stool for Occult Blood (Once in 3 years) (Once in 3 years)
Full Medical Examination and Chest X-Ray with Report ECG - Electrocardiogram ECG - Electrocardiogram
Report (Once in 3 years)
Echocardiogram Echocardiogram
ECG - Electrocardiogram
Ultrasound Scan of Abdomen TMT - Stress Test (Male &
Echocardiogram and Pelvis Female)
Ultrasound Scan of Abdomen Lung Function Test Ultrasound Scan of Abdomen
and Pelvis and Pelvis
Mammogram above 40
Mammogram above 40 years Eye Assessment
years
Breast Scan below 40 years Lung Function Test
Breast Scan below 40 years
Full Medical Examination and Mammogram above 40
Full Medical Examination and Report years
Report
Breast Scan below 40 years

Being in the area of medical diagnostic
All our laboratories and medical centres
are fully equipped with state-of-the-art
laboratory services for over two

automated analysers to ensure accuracy
and minimise errors by eliminating human
decades, Durdans possesses extensive

intervention. We comply with the standard
framework required to meet the ISO
experience and expertise, supported

15189:2012 standard (by the Sri Lankan
Accreditation Board) and Joint Commission
by an eminent panel of Consultant

International Accreditation, in addition to
adhering to the hospital’s own internal and
Pathologists
external quality programmes.
Our laboratories cater to a range of

diagnostics spanning the areas of Bio-
Chemistry, Haematology, Endocrinology,
Pathology, Microbiology, Immunology,
Serology, Histopathology and Molecular
Biology.
Our well-experienced and qualified staff

are involved from the point of collecting
the sample, transporting (maintaining the
cold chain) the samples and analysing them
under stringent quality control systems
under the guidance of a panel of specialist
consultant pathologists.
LABORATORIES
23
In our quest to deliver the best in healthcare experience and expertise, supported by an
and transform the customer experience eminent panel of Consultant Pathologists MEDICAL CENTRES
while we continued to improve upon covering an expansive laboratory network
existing systems and processes, the
following existing services, new products,
including over 75 locations and 2000
partner collection centres islandwide. We 7
initiatives and innovations were extended to also provide consultation and radiology
our customers during the year. services via our Medical Centres, while
the satellite laboratories support all our SAMPLE COLLECTION
CENTRES
LABORATORY OPERATIONS laboratory investigations and ECGs. As an
Durdans Laboratory Services is trusted by
clinicians and patients islandwide, owing
added convenience, we provide mobile
sample collection services across the island 46
to our accurate and reliable reports which to enable ease of access. As part of our
are promptly delivered via SMS, email, fax efforts to continuously improve quality and
or hard-copy. Being in the area of medical achieve excellence, we further enhanced
diagnostic laboratory services for over two our quality policy during the year.
decades, Durdans possesses extensive

Our Business
Our Leadership
Governance
Financial Reports

The Hospital also houses our own dedicated Molecular Biology Research and Development arm which develops new panels. The following
new investigations were added to our portfolio during the year:
Investigation Description
Adiponectin test Predictive test to identify potential candidates for diabetes type 1 and 2.
Allergy Panel Cost effective, affordable allergy test for inhaled, food, skin and other allergies.
Alpha 1 Antitrypsin Lower levels of Alpha 1 Antitrypsin are associated with emphysema and chronic lung and
liver disease.
Anti-Glomerular Basement Membrane Determination of circulating auto antibodies against the GBM of the kidney.
Antibody Test (GBM)
Anti Tissue Transglutaminase Test Used to diagnose celiac disease.
Bacterial Antigen Test (BAT) Used to detect rapid identification of bacterial meningitis from cerebrospinal fluid (CSF).
Anti Centromere Antibody Test Helps evaluate patients with clinical signs and symptoms compatible with limited systemic
sclerosis including skin involvement, Raynaud Phenomenon and arthralgia.
Anti Glutamic Acid Decarboxylase (GAD) a) Assessing susceptibility to auto immune (type 1) diabetes mellitus
Antibody Test b) Distinguishing between type 1 and type 2 diabetes mellitus
c) Diagnosing latent auto immune diabetes in adults
d) Confirming a diagnosis of stiff person Syndrome
Hereditary Hemochromatosis Identifies Hemochromatosis, a genetic disease of iron metabolism which causes increase
in iron absorption which can cause organ damage, therefore critical to diagnose at an early
stage using this test.
Mycology Tests Investigations of fungal culture, body fluids, skin and CSF samples.
Procalcitonin Test Used for early detection of Sepsis.
Serum Free Light Chain Assay Used in the follow-up of multiple myeloma and other monoclonal diseases including Light
Chain Disease.
Red Cell Folate Test Used to detect folic acid deficiency which causes Megaloblastic Anaemia.
T.B. Culture and T.B. Quantiferon Cost effective, highly specific and sensitive test used to diagnose Mycobacterium
Tuberculosis.
We also commenced immunofixation and pathology and radiology laboratories mini labs are equipped to perform X-rays,
the improved resolution of serum and comprise of clinical analysers and high- scans and ECG diagnostic services.
urine proteins electrophoresis with the end ultrasound equipment and scanners
introduction of the new ‘Sebia Hydracys 2 operated by a team of proficient, trained Our state-of-the-art Dexa scanner facilitates
Scan’ Electrophoresis Analyser. Serum and and competent personnel. advanced diagnostics for osteoporosis,
urine immunofixation assists in the accurate diabetes and cardiovascular disease,
diagnosis types of multiple myeloma. Radiology facilities include CT, MRI, digital while our all new Olympus Evis Exera III
X-ray, ultrasound, bone densitometry and endoscopy system, was introduced during
DIAGNOSTICS digital mammography. While the complete the year, enabling improved workflow and
Armed with advanced technology and range of diagnostic services are offered at patient outcomes (discussed further in the
the latest equipment, our fully-fledged the main hospital in Colombo, a number of Manufactured Capital section of this report).

cardiac investigations, cardiac surgery and
invasive and interventional procedures. The
centre is fully equipped with the necessary
expertise and technology to conduct high-
risk, minimally invasive cardiac procedures,
having enabled thousands of patients with
complex heart conditions to live longer,
healthier lives. To date, the hospital has
conducted over 10,000 cardiac surgeries
and 50,000 interventional procedures. There
have been over 7000 cardiac channelling
appointments recorded at the Heart Centre
during the year. Home to a rich panel of
resident consultant cardiac specialists and
surgeons skilled in performing minimally
invasive cardiac procedures and bypass
surgeries, the centre can successfully
perform complex procedures at minimal risk
as a result of these procedures; reducing
Currently Durdans Hospital has in place the We maintain seamless, streamlined blood loss, lowering risk of infection and
necessary resources to conduct a range of structures and processes in our surgical post-procedure discomfort and ensuring
diagnostics including Endoscopy, Video theatres and Intensive Care Units, faster recovery - opening opportunities for
Endoscopy, Sigmoidoscopy, Colonoscopy, strengthened and supported by our treatment to those originally considered
Bronchoscopy and Laryngoscopy. highly skilled, trained staff dedicated to at high risk for traditional heart surgical
serving each division with a spirit of care procedures as a result of age and medical
With the use of microwave ablation, our and compassion. During the year we history.
Radiology Department further facilitates introduced an online theatre booking
minimally invasive treatment for patients system, which drives internal efficiency and In the coming year, we hope to remodel
with liver, kidney, lung, breast and prostate enables surgeons to book surgical theatres the Cardiac Channelling Area to enhance
cancers or any kind of mass, in a state- during a preferred time slot and determine the customer experience by revamping
of-the-art facility under the guidance of availability of resources. the rooms housing the ECG and Treadmill
experienced specialists. equipment, and improving the general
The hospital continues be a preferred facilities.
MEDICAL SERVICES AND SURGICAL centre for surgical care, pursuing
CARE investments in the latest equipment STEM CELL THERAPY AND CARDIAC
and state-of-the-art technology in order INTERVENTION
Our medical services arm strives tirelessly
towards enhancing our level of surgical to elevate its service offering. Such Using sophisticated and modern non-
care, while providing a service that is both investments carried out in the financial year invasive diagnostic imaging systems,
affordable and accessible to the people. are further discussed in the Manufactured Durdans Hospital is able to effectively
With over 50 general surgical packages in Capital section of this report. perform revolutionary stem cell therapy in
place delivered by specialist consultants the treatment of heart failure. With a history
and an experienced nursing staff, Durdans CARDIOLOGY of successful procedures wherein which
offers the best of multiple worlds, offering Widely acknowledged as a centre of harvested stem cells from the patient’s bone
an outstanding healthcare experience excellence in cardiac care, the Durdans marrow are used to strengthen and repair
coupled with the sought after aspects of Heart Centre possesses the highest dying heart muscles in order to treat heart
convenience and cost-effectiveness. capabilities in the areas of non-invasive conditions, Durdans continues to transform
the landscape of healthcare through next

Our Business
Our Leadership
Governance
Financial Reports

Our expert neonatologists and

any critical situation with the support of
our cutting-edge NICU equipment and
paediatricians are prepared to face any

modern facilities. We also conduct a
Parentcraft programme in the hospital
critical situation with the support of premises, directed by specialist consultants

and medical officers to guide parents
our cutting-edge NICU equipment and along the road to delivery and subsequent
child care, helping them prepare for the
modern facilities. birth of their child, and educating them

on healthy lifestyles, varied labour-related
arrangements and responding to any other
queries a future parent would raise.
NEPHROLOGY
Supported by a team of dedicated,
experienced specialists and transplant
surgeons, the Nephrology Unit of
Durdans Hospital provides comprehensive
nephrology care including dialysis and
kidney transplant procedures. With cutting-
edge laboratory services driving diagnostic
support for renal patients, and continues
to raise awareness among the public
regarding prevention of kidney failure, while
our aftercare services provide constant
observation and treatment until kidney
function returns to a normal level and a
patient is deemed in stable condition.
OPHTHALMOLOGY
generation solutions. These procedures are Our maternity unit is trusted among The hospital has in place a fully-fledged
performed at a fully-fledged catheterisation expectant mothers, designed to fulfill the eye care centre, supported by the expertise
laboratory located within the heart centre. highest levels of comfort and convenience of specialist consultants and state-of-
through dedicated care and superior the-art equipment to support the latest
OBSTETRICS AND GYNAECOLOGY facilities. The unit has its own dedicated ophthalmological procedures including
The Obstetrics and Gynaecology unit of operating theatre and modern labour Focal Laser Treatment, Pan Retinal
Durdans Hospital comes fully equipped with rooms, providing mothers with safe and Photocoagulation (PRP), Fundus Fluorescein
advanced laparoscopic surgical equipment comfortable surroundings, assisted by Angiography (FFA) and Indocyanin Green
with state-of-the-art in-built applications experienced professional consultants, Angiography (ICGA). The unit’s powerful
to drive the efficient performance of attendants and nurses available round the HD OCT-5000 scanner supports a complete
the hospital’s primary theatre complex. clock to provide the necessary guidance range of retinal investigations, and allows for
Supported by such equipment, the hospital and support throughout their delivery. advanced screening in glaucoma patients.
is able to perform womb removal and other Furthermore, the hospital provides lactation
gynaecological and obstetric surgeries support in order to assist new mothers. OPTOMETRIST CENTRE
that are minimally invasive, the adoption An optometrist centre was opened on the
of which techniques cements the hospital’s Infants in need of intensive care are 7th floor, adjacent to the Eye Clinic, enabling
reputation as a leader of change, through treated at the Neonatal Intensive Care the purchase of high quality lenses, spectacle
the introduction of cutting edge, innovative Unit (NICU). Our expert neonatologists frames, contact lenses and sunglasses.
medical solutions to Sri Lanka. and paediatricians are prepared to face

and ultrasound. Image guidance enables
our interventional radiologists to guide the
catheter precisely to the affected area for
surgical intervention without performing
open surgery. Interventional radiologists
can restore blood flow to blocked arteries
(angioplasty), place stents, remove
blood clots (thrombosis), stop bleeding
(embolisation), remove tumours and
conduct biopsies. Interventional radiology
can be used to treat many conditions
including: Peripheral Arterial Disease,
Cancer, Venous Diseases, Fibroids and
Liver Disease. Interventional Radiology
Procedures are an alternative to open
surgery and key-hole surgeries, minimise
risk of infection and require a shorter
duration of hospital stay while recording a
faster recovery.
Available services:
Spectacle frames, Sunglass and Lenses Total hearing care if required DERMATOLOGY AND COSMETIC CARE
Contact lenses and lens care (soft and Fitting center facilities Durdans Hospital provides the latest
hard)
solutions in dermatological and cosmetic
procedures, enabling customers to
The process: enhance aesthetic appearance through the
assistance of specialised professionals in
The Optical After sales
Outlet will take the field. Our minimally invasive procedures
services -
Patient visits care of the ensure comfort and dependability,
Adjustments
consultant eye patient’s needs
surgeon
and repairs including laser acne scar removal, open
to his/her provided at
Approaches satisfaction
pore treatment, treatment for scars, keloid
Most of the free cost
the Optical
products and stretch marks, dry skin therapy, skin
Outlet with the
are covered rejuvenation, botox treatments, injectable
recommendation
with one year dermal fillers and laser treatments.
of Consultant
warranty
Eye Surgeon
PHYSIOTHERAPY AND SPORTS
MEDICINE
Our experienced and knowledgeable
NEUROLOGY physiotherapists are able to provide
removal of malignancies with minimal harm
The Neurology Unit provides the highest advanced, reliable treatment for injuries
to surrounding tissue in the body.
level of service to those afflicted with a sustained from physical activity such
as sport, exercise, or recreation, in
range of neurological issues. Currently INTERVENTIONAL RADIOLOGY
possessing the most advanced biplane addition to performing therapy for those
Interventional radiology is increasingly recovering from chronic illness, injury or
catheterisation laboratory in South Asia,
being used at Durdans Hospital to perform surgery. Furthermore, the unit conducts
Durdans Hospital is fully equipped to
catheter-based (small thin tubes) minimally comprehensive medical examinations for
diagnose and perform the most complex
invasive procedures guided by diagnostic the purpose of issuing medical certificates
procedures. Durdans also uses a CUSA
imaging modalities such as X-Ray, MRI, CT required prior to participating in sporting
machine in tumour surgery, aiding the
activities.

Our Business
Our Leadership
Governance
Financial Reports

... our focus continues to be on

and assist them on their path to health and
wellness.
upholding world-class standards CUSTOMER RELATIONSHIP
by improving every aspect of our

MANAGEMENT SYSTEM
During the year we introduced a Customer
operations, spanning our service, Relationship Management System (CRM),

to drive a more proactive approach
competencies, people, quality standards, towards improving engagement, receiving

feedback and enabling us to build lasting
infrastructure and overall efficiency. relationships with our customers. Powered

by Microsoft Dynamics, the project consists
of four stages, of which two have been
AUDIOLOGY, SPEECH AND LEARNING DIABETES CLINIC launched to date: ‘Patient Complaints
Management’ and ‘Sales’. The remaining
As the first private facility of its kind to be Our dedicated Diabetes Clinic was
stages, namely ‘Customer Loyalty’ and
established in Sri Lanka, the Audiology, revamped during the year, and continues
‘Customer 360o Care’ will be launched in
Speech and Learning Therapy Unit offers to offer specialised consultation services to
the coming year, thereby achieving our
customers an extensive range of auditory ensure management of diabetes and treat
objective of providing a more holistic
therapy and speech screening services, diabetes related complications.
approach towards customer care and
and includes aspects such as audiological
engagement.
testing, balance/vestibular testing, cochlear FOOD AND BEVERAGE
implants, hearing aid evaluation and infant Hospital meals can now be requested via a
hearing screening programmes. The centre INFORMATION COMMUNICATIONS
computer system, in addition to placing an CENTRE
also possesses the distinction to be one of order to the F&B Department over the ward
the few locations recognised as an auditory Our new Information Communications
phone system. Plans are also in place to
and speech screener for the national airline Centre was launched during the financial
introduce a buffet for consultants. All food
as authorised by the Civil Aviation Authority. year. This dedicated hotline provides
items are checked and accepted as per the
patients, families and the public with
quality standards specified by the hospital
PHARMACY which are distributed to the suppliers,
current and accurate information related
to all their hospital related queries. Rather
Located conveniently on the ground floor in thereby ensuring the highest quality, health
than redirect customer queries to a call
close proximity to the hospital entrance, our and hygiene for our patients.
centre, our new communications centre is
fully equipped pharmacy is easily accessible
located on the ground floor, and provides
at any time, 365 days of the year, and CUSTOMER CONVENIENCE AND
information through dedicated personnel
provides an extensive range of all possible SATISFACTION
and medical officers who are able to
medical and surgical supplies required by In order to elevate our customer address complex queries with accurate,
its customers. We also possess the ability to experience, our ability to maintain a relevant and timely information.
address the requirement of those who seek high degree of patient satisfaction and
outpatient care and submit prescriptions customer convenience is the key to our
from doctors external to the hospital. SURGICAL INFORMATION CENTRE
success. Therefore our focus continues to
Focusing primarily on customer
be on upholding world-class standards by
During the year we engaged in optimising convenience, the Surgical Information
improving every aspect of our operations,
our processes, to ensure less time Centre serves to improve customer care
spanning our service, competencies,
consumption and improve levels of through a dedicated hotline which provides
people, quality standards, infrastructure
customer satisfaction (Refer Page 31 in this information related to surgeries and surgical
and overall efficiency. In order to maintain
report). Stringent precautionary measures packages.
our position as a trusted healthcare services
are undertaken, and the prescription is provider, we continuously care for and
checked multiple times by qualified medical engage with our customers in order to
officers to ensure accuracy and safety in evaluate their needs and requirements
dispensing medication.

ONLINE PURCHASE OF HEALTH
SCREENING PACKAGES
Prior to the introduction of this initiative,
customers who wished to purchase a health
screening package were required to visit the
Executive Wellness Centre. Now, through
the convenience afforded by Online Health
Checks, customers can simply choose
their preferred package from the comfort
of their homes, or while on the go. This
initiative offers appointment scheduling
with a customer care representative, while
clear instructions are made available on
the website to enable patients to make
the necessary arrangements prior to
taking the tests. All necessary information
pertaining to the available health check
packages is provided on the site to enable
customers to make an informed choice,
while payment can be made online through ONLINE LAB REPORTS portal for optimum convenience, where
a secure payment gateway, thereby creating
In the past, reports issued by the laboratory patients can access all lab reports issued by
a platform for preventive healthcare,
involved a longer turnaround time for Durdans over the duration of the last three
accessible anytime, from anywhere in the
printing and delivery. Patients were required months. Patients also have the option of
world.
to physically visit the hospital in order to requesting the lab reports to be emailed,
collect the report, and therefore Durdans while a self-service kiosk has also been
In order to further motivate customers and
Hospital designed its online lab reports introduced at the lab report collection area
support them on their wellness journey,
system with patient information security and in order to print lab reports on demand.
online health checks are offered at a
convenience in mind.
discounted value, resulting in significant
expenditure savings, and increasing
Upon the issuance of the lab report, an
customer engagement. IMPACT:
encrypted message is sent to the customer
via an SMS alert, enabling them to
download the report to their mobile device As a result of this initiative, a positive
IMPACT: or digital device while maintaining privacy correlation between customer
and confidentiality. This initiative further satisfaction and issued online lab
Revenue has increased due to the prevents incidents such as the risk of loss or reports has been identified. An
purchase of online health checks, in damage to the report. improved customer satisfaction has
addition to recording an increase in been noticed towards this initiative
customer base. Many happy customer Customers can also access the lab report by through regular surveys. It has
comments were cited in our social visiting the Durdans Online Reports portal resulted a 40% reduction on paper
media engagement network with and entering the specimen number and usage, a positive move towards
respect to this initiative. UHID mentioned on the lab investigation less carbon footprint and energy
invoice. All reports pertaining to each conservation.
customer are available on a dedicated

Our Business
Our Leadership
Governance
Financial Reports

Customers now have the option of

CUSTOMER ENGAGEMENT
Throughout the patient’s stay or treatment,
we engage with our customers and their
party to ensure their needs are met, and placing a pencil booking for available
all services are delivered according to
their satisfaction. In terms of in-patients, consultants, with a simple phone call to
the hospital has introduced a system of
room visits, checking on the patient’s status our appointments desk, or by simply
during their stay and addressing their
needs, and visiting them prior to discharge making a direct appointment via our
in order to receive feedback regarding their
overall experience at Durdans Hospital. website.
Concerns are circulated via an intra-mail
system, and we strive to address them
during their stay. In terms of complaints,
subsequent to a visit, the customer is
notified of the rectified issue and the
corrective action taken.
Furthermore, we have customer care

personnel stationed in the lobby to
assist patients and visitors and direct
them towards the service they require.
Inquiries can also be made via our
Chatbox, operated by our customer care
representatives to ensure timely, accurate
information is provided.
We also have in place an information

hub for all patients, and issue quarterly
communications with the latest
developments offered at the hospital.
Durdans also introduced periodic
Customers now have the option of customers can also channel us online using
interactive engagement models including
placing a pencil booking for available ‘Doc990’ or ‘eChannelling’ services.
forums in order to foster relationships with
consultants, with a simple phone call
our customers throughout the year.
to our appointments desk, or by simply CUSTOMER CARE
making a direct appointment via our At Durdans Hospital, our dedication
CHANNELLING
website. The Durdans Hospital Direct towards our customers is exemplified
Our healthcare services entail a wide range Appointments Service requires only the through our focus on personalised care
of consultants and medical specialists to doctor’s appointment fee and the hospital and service. As a hospital renowned for
choose from, in order to address specific fee to be paid with no additional charge our outstanding levels of patient care, we
patient requirements. Our customers can incurred, resulting in a savings of up to continue to maintain our longstanding
now easily access their preferred specialist Rs. 300. The system is updated in real reputation as a reliable, trusted healthcare
through a wide range of options created to time, and appointments can be made services provider among the many customer
cater to their varying requirements. speedily, upholding patient security and segments we serve.
confidentiality through a user-friendly
interface, facilitating customer convenience
and satisfaction. Furthermore, our

PATIENT
TESTIMONIALS
Banuka Ramanayaka, Rathnapura - Hair Loss Patient

I was balding at the top and saw that I was losing hair. I started my treatment in March 2018 and had three sessions within three months and
one more treatment after three months. There’s a visible difference and when I run my hand through my hair I feel more hair. My family and
friends also comment on the difference. They are happy.
Anushka Obadage - Patient Party
My mother was admitted with Cellulitis and she was in a critical condition. She was in hospital for 14 days. The doctors who were treating
her did a great job. All the nurses and other staff members in Ward 08 took care of her very well.
Mats Schlünder
Got treated for electrocution here. The rooms are simple but clean and the staff was professional. Greetings to the lady from admissions.
No complaints!
Omesh Devendra - Patron
Called the hotline to acquire knowledge about doctors and this agent who assisted with me was polite, knowledgeable and even contacted
the doctor for me to check his availability.
Family of Hawwa Umma - Dialysis Patient
I would like to express my sincerest thanks to all of the nurses and their assistants for the wonderful care they gave. Everyone was
professional, efficient, kind and caring to my mom. The care we received exceeded our expectations. Thank you and God bless you for the
work you do
Renuka Abeysinghe, Nugegoda - Acne Patient
I started my treatment in October 2017 and I have kept coming back because I find the treatment to be quite good for my pimples and I
see a visible improvement. Its more than just a treatment, I rely on the doctor’s sound counsel and expertise.
Ayeesha Parveen Nayeem – Patient Party of Cataract Patient
I was having many doubts whether I was going to the correct hospital when it came to my father’s surgery because my father is 76 years old
and he has had many health complications. He was having a very bad eye condition which turned out to be glaucoma. He had eye pressure;
several complications. I went to see other doctors about this but they only casually looked into it and said yes he needs surgery but never
gave me a clear explanation. So I had doubts because my father is an elderly and very feeble person. He couldn’t walk well. I didn’t want
this eye surgery to be an added burden on him. Finally I decided to go see Dr. Charith Fonseka. I came in on the day of the surgery with my
father. The Durdans Eye Clinic called me on the day of the surgery to see if I was able to make it to the hospital on time. No one needs to
tell me I saw with my own eyes how the nurses even though they were so busy didn’t omit even one responsibility and attended to each and
every patient.
Shiroman Priyantha – Shoulder Patient
I’ve been having this condition for three years. I channelled doctors previously but none of them could give me a good solution. I work in
Italy. So after I took my reports to Italy the doctors there said I have to go for a joint replacement. Several people told me not to go for a
replacement surgery as the joints have to been replaced every 10 years or so. A friend of mine who works as a physiotherapist for Sri Lanka
cricket Team recommended Dr. Ashan Abeywardena. When I met him he said the damage is critical but he can give a try with stem cell
grafting but the result will be 50/50. It’s been almost two years since the procedure. My shoulder injury has healed to a great extent and I
can move my arm and shoulders well. Those days I couldn’t even put on a t-shirt by myself. I’m grateful for the recovery.

Our Business
Our Leadership
Governance
Financial Reports

Manel Wijeratne - ENT Surgery Patient

In 2011 I consulted an ENT surgeon elsewhere who gave me an inaccurate diagnosis. When I consulted him again in 2015 he did not admit
that diagnosis and told me that it is best to get it removed by surgery and that it carries a high risk of facial paralysis as it is on the nerve. I
didn’t have confidence in him after giving me a wrong diagnosis. I waited. Later on I channelled Dr. Sakkaff who said it is better to remove
it before it gets bigger and if it goes to the nerve it will be a bit difficult to remove. He said since he looks at the nerve first and the polyp
later there would be no risk. This gave me the confidence I needed. The operation was a success. No stitches can even be seen. I was able
to do normal work after two days. It was a large polyp. When sent for biopsy there were cancer cells in that. An oncologist said I have to do
radiotherapy but I decided against it. Dr. Sakkaff was confident that he had cleared the polyp completely. I went for a second opinion to
Singapore. They also gave the decision that I don’t have to do radiotherapy. The doctor is considerate about patients and I respect him for
that. I give total credit to Dr. Sakkaff for saving my life.
Mr. and Mrs. Gunawardene, Parentcraft Antenatal Programme Participants
This was a very effective programme for both of us. We learnt a lot about this season. Thank you for organising such a programme for us
especially since we are expecting our first baby. And plus thank you for your cheerful presentation, God bless you all.
QUALITY STANDARDS ISO STANDARDS During the year we conducted a

During the year, Durdans Hospital was Refer to intellectual capital on Pages comprehensive safety audit encompassing
reaccredited with JCI Gold Standard 67 to 73. aspects of security, transport, fire safety,
and the ISO 15189: 2012 Standard. The staff occupational health and safety,
reaccreditation by these standards reflects HEALTH AND SAFETY electrical hazards, hazardous materials,
our pledge to uphold service excellence by waste management and other general
Our dedication towards our customers
enhancing our quality and safety practices safety aspects. Stringent safety and
ensures that we prioritise their safety
through a reliable process that includes precautionary measures are in place,
and well-being in all we do. Therefore,
setting benchmarks. Once addressed, the with duly assigned Standard Operational
we continued to enhance the hospital’s
improvements made in our healthcare Procedures (SOPs) followed by each
health and safety mechanisms via training,
practices translate into tangible benefits department in order to maintain high levels
maintenance and safety audits.
of care, safety and enhanced facilities of safety and quality.
for patients and patrons (refer to the
Intellectual Capital section in this report).
Our Quality Assurance Team continuously

monitors the hospital’s activities, and
conducts an internal process and outcome
audit quarterly in order to address key
issues that may arise in our operations, and
upgrades systems and procedures where
required.
The audit conducted during the busiest

time of the year was a rigorous inspection
covering areas of international patient
safety goals, standards of clinical practice,
credentialing and privileging of clinical
staff, medication management, disaster
preparedness, facility management and
patient and family education.

We conduct maintenance activities
according to a maintenance calendar, guided
by the Manager Engineering. The hospital
also performs random checks throughout
the day to ensure consistent patient safety
and care is upheld. Emergency maintenance
requirements are forwarded to a centralised
location, recorded and assigned to the
relevant department to address issues
speedily and efficiently.
As a hospital, we handle hazardous materials

on a daily basis. As such, a process is also
in place to address hazardous waste and
spills and our staff members are periodically
educated on the management thereof to
ensure no harm comes to anyone present
in the premises. All hazardous material is
labelled and documented and disposed of
safely in order to prevent any adverse effects
covering the entirety of the hospital area, potential or identified risks in order to
and thereby guarantee the people’s safety.
in order to support our 24/7 surveillance of strengthen our existing levels of safety.
the premises. Any suspicious movement is
In the event of an emergency, the hospital
reported to our security division, and the Clinical effectiveness relates to the
has adopted a code system which is
threat is addressed immediately by one of effectiveness of the services Durdans
announced repeatedly over the PA system
our trained security personnel. provides, identified through range of
in order to draw the attention of the trained
pre-defined quality and safety indicators.
staff to face the emergency situations.
Actions plans are in place to address each MINIMISING RISK These benchmarked indicators are used
We work with expert physicians and to measure performance, while serious
specific emergency the moment we are
specialists in order to deliver on our incidents are reported to the Senior
made aware of the presence of such threats.
promise of excellence in healthcare Management, thoroughly investigated
to all our customers. In order to and addressed. Areas prone to high-
During the year we increased our CCTV
maintain outstanding levels of patient risks are audited on a regular basis, while
coverage, with a total of 400 IP cameras
care, we combine this expertise with the Governance Committee and the
a comprehensive clinical governance clinical advisory panels possess adequate
framework, which addresses and measures representation by clinicians who ensure
clinical risk, clinical effectiveness, workforce every possible potential risk is addressed.
effectiveness and level of consumer
participation. The Clinical Governance CUSTOMER CONFIDENTIALITY
Unit works in collaboration with the Risk Customer privacy is an integral aspect
Management Committee to monitor these of our operations, and all our systems
999 CARDIAC ARREST aspects, and the Board of Directors is and operations have been designed with
888 FIRE informed of any developments. confidentiality and security of information in
mind. We continue to upgrade our security
777 EXTERNAL DISASTER
Policies are formulated in order to minimise mechanisms to ensure patient records.
777 INTERNAL DISASTER risk related to clinical processes, and Hospital records are maintained safely, and
777 BOMB THREAT ensure their safe execution. These policies have not encountered any complaints with
444 CHILD ABDUCTION are further reviewed and updated based respect to a breach of privacy or data loss
on regular risk assessments, while our during the year.
444 VIOLENT PATIENT OR STAFF
employees are also encouraged to report

Our Business
Our Leadership
Governance
Financial Reports

BUSINESS PARTNERS fruit suppliers to large listed companies on

the Colombo Stock Exchange, comprising
ETHICAL PRACTICES, EXCELLENCE
AND STANDARDS
of pharmaceutical manufacturers and their We ensure that the hospital does not rely
local agents. on a sole supplier, with a fair distribution
of the organisation’s requirements across
Furthermore, our continued collaboration a pool of resources in order to mitigate
with expert consultants in the medical risk. Periodic reviews are conducted and
At Durdans Hospital, our partnerships field ensures that we maintain the highest the results thereof are communicated with
assist us to elevate our service offering standards of healthcare. As an experienced, respect to the quality and standards of
and safeguard our promise of world-class established and reputed name in goods and services rendered, in order to
healthcare, providing us with reliable, high healthcare, we are able to attract respected ensure the organisation’s expectations are
quality goods and services essential to professionals in the sector who facilitate met. Furthermore, the number of brands
our operations, including pharmaceutical advanced care and treatment. sourced are limited to ensure that world-
and medical devices, stationery, food and
class products and services are procured
beverages, IT equipment and hardware. OUR BUSINESS PARTNERS to serve our patients with the best the
As a tertiary hospital, we collaborate with a
Our business partners can be categorised healthcare industry has to offer.
range of suppliers to meet the demands of
into four key aspects, as shown below;
our stakeholders, from small vegetable and
At Durdans, we follow stringent guidelines
with respect to our procurement and supply
chain. We have taken steps to ensure all
our business partnerships comply with the
relevant regulatory and legal requirements.
SERVICES CRITICAL FOR DAY-TO-DAY All pharmaceuticals and medical
OPERATIONS OPERATIONS consumables are screened to verify their
Pharmaceutical and medical Software suppliers registration with the National Medicines
consumables suppliers Infrastructure Regulatory Authority (NMRA), which ensures
Food and beverage suppliers maintenance providers compliance with local medical regulations
Medical equipment suppliers Transport providers
and standards. Pharmaceuticals are
Utility service providers Human Resource
compiled into the hospital formulary which
Waste disposal service providers
providers
is revised annually.
LOCAL AND INTERNATIONAL

SOURCING
We believe in supporting and contributing
towards the local economy by sourcing
INFREQUENT FOR EXPANDING OUR medical products that are manufactured
SERVICES SERVICE NETWORK locally. Our locally sourced examination
Construction contractors Collecting Centre Agents gloves and surgical gloves meet globally
Suppliers of medical and Business reference partners accepted standards, while reaching the
other fixed assets Landlords providing expectations of clinicians for the purpose
Professional service premises of use on patients. All externally sourced
providers products are reviewed prior to procurement
against a range of requirements, as we do
not compromise on our patient’s health and
safety.

As a tertiary hospital, we collaborate
Furthermore, a specialised type of
Computerised Tomography (CT) scanner
with a range of suppliers to meet the

(CT Simulator) supports the production
of 3-D images of each patient’s internal
demands of our stakeholders, from small

anatomy, assisting doctors to accurately and
precisely determine the region of interest
vegetable and fruit suppliers to large

together with the surrounding critical
structures, clearly defining the area that
listed companies on the Colombo Stock

requires treatment.
Exchange...
The partnership also enables brachytherapy,
which is a form of radiation therapy
(radiotherapy), which involves the
placement of radioactive sources directly in
a tumour or body cavity.
In addressing the specific needs of This MoU created the opportunity for
each medical field, we invest in the best Durdans Hospital to explore advanced
equipment the healthcare industry has to radiation therapy equipment offering the Vision Express
offer, ensuring that we extend the best opportunity to move beyond external beam With the purpose of offering our eye
possible care to our patients by purchasing radiation therapy to targeted radiation, patients a comprehensive service, during
globally recognised brands including thus minimising the adverse effects the year we partnered with Vision Express,
Johnson & Johnson, Roche, Medtronic, resulting from more conventional treatment a renowned local opticians service. We
Stryker, Philips, Siemens, GE and Hologic. methodologies. set up a fully-fledged optometrist centre
on the 7th floor to provide our patients
with the opportunity to purchase a wide
ASSOCIATIONS AND PARTNERSHIPS TomoTherapy® is one such technology,
variety of spectacle frames, sunglasses
Ceylinco Healthcare Services Ltd which delivers radiation slice-by-slice,
and lenses to suit any budget. This facility
During the year, Durdans Hospital signed a combining an advanced form of Intensity
offers short turnaround time for those who
Memorandum of Understanding (“MoU”) Modulated Radiation Therapy (IMRT),
wish to purchase prescription spectacles,
with Ceylinco Healthcare Services Ltd, in with reliable and accurate Computed
while providing additional features of fitting
a bid to expand services offered by the Tomography (CT) scanning technology.
facilities and hearing care (Refer Customer
hospital in the field of cancer treatment. This produces powerful and precise
Capital on Page 31 for more details).
As a result of this partnership with Ceylinco radiation beams which support the
Healthcare Services Ltd, Durdans is now treatment of hard-to-reach tumours,
equipped to offer comprehensive cancer reducing radiation exposure to healthy
care services at the Durdans Cancer Care tissues and organs.
Unit. This partnership enables the hospital
to treat patients with advanced radiation In addition, the partnership powers
therapies, in addition to performing other the use of Clincac ix, a state-of-the-art
essential functions including laboratory linear accelerator which delivers a wide
investigations, radiological diagnostic range of imaging and patient treatment
imaging and oncological surgery for options, facilitating the treatment of areas
treatment of cancer. appropriate for radiation therapy.

Our Business
Our Leadership
Governance
Financial Reports

INVESTORS
SDGS IMPACTED:
... we strive to distribute increased
returns to our valued investors and
maintain the highest levels of transparency
through regular communications ...
Year on year, we strive to distribute
increased returns to our valued
investors and maintain the highest management mechanisms and the future VOTING - (Rs.)
levels of transparency through regular direction of the organisation. Furthermore,
150
we engage with our shareholders through
124.00
communications in order to ensure their
119.00
satisfaction. Any significant changes various mechanisms (see Shareholder
90.00 110.00
103.00
in terms of governance is updated on Information tables on Pages 162 to 165), 120
including our Annual General Meeting, at
113.90
Colombo Stock Exchange, and further
90.00
87.00
disclosed in detail in the annual report which we encourage their participation and
79.20
90
together with operational information, feedback.
72.30
90.30
85.00
strategy, financial performance, risk
75.10
75.00
68.50
60
2015 2016 2017 2018 2019
ORDINARY SHARE INFORMATION Highest Lowest Last Traded
Share price trend over the past five years
Voting
NON-VOTING - (Rs.)
Description 2015 2016 2017 2018 2019
Rs. Rs. Rs. Rs. Rs. 100
75.10 89.90
73.60 87.50
71.90 86.50
72.50 85.00
76.00
Highest 119.00 124.90 110.00 103.00 87.00
80
Lowest 90.30 85.00 75.00 75.10 68.50
67.60
70.20
Last Traded 113.90 90.00 90.00 79.20 72.30

65.30
60
60.20
52.00
54.20
Non-Voting 40
2015 2016 2017 2018 2019
Highest Lowest Last Traded
Description 2015 2016 2017 2018 2019
Rs. Rs. Rs. Rs. Rs.
Highest 89.90 87.50 86.50 85.00 76.00

Lowest 70.20 52.00 60.20 65.30 54.20
Last Traded 75.10 73.60 71.90 72.50 67.60

DIVIDENDS PER MARKET ACTIVITY
SHARE Share Trading Information
Rs. 3.60 Description 2015 2016 2017 2018 2019
EARNINGS PER Number of Shares Traded

SHARE
Ordinary Shares - Voting 700,511 156,267 1,527,288 1,363,951 594,280
Rs. 9.50 Ordinary Shares - Non-

Voting 435,831 252,616 342,946 1,848,488 778,920
DIVIDEND PAYOUT
RATIO Share Trading Turnover (Rs.)
58% Ordinary Shares - Voting

Ordinary Shares - Non-
77,406,284 16,956,458 153,051,838 133,369,757 45,240,924
Voting 33,890,329 20,182,423 26,936,817 129,216,269 52,995,054

RETURN ON ASSETS
4% Sustainable Value for Investors
Description 2018 2019

RETURN ON EQUITY Rs. Rs.
7% Ordinary Shares - Voting

Highest Price 103.00 87.00
RETURN ON CAPITAL 28th June 2017 23rd May 2018

EMPLOYED Lowest Price 75.00 68.50
9% Last Traded Price

09th February 2018
79.00
31st December 2018
72.30
29th March 2018 29th March 2019
Ordinary Shares - Non-Voting

Highest Price 85.00 76.00
19th May 2017 26th April 2018
Lowest Price 65.00 54.20
26th December 2017 21st September 2018
Last Traded Price 73.00 67.60
29th March 2018 29th March 2019

Our Business
Our Leadership
Governance
Financial Reports

Financial Activity
Description 2015 2016 2017 2018 2019
Earnings per Share (Rs.) 5.91 12.67 9.67 11.87 9.50

Net Assets Value per Share (Rs.) 82.01 91.14 153.46 147.88 151.83
Return on Assets (%) 5 9 5 6 4
Return on Capital Employed (%) 10 15 10 11 9
Return on Equity (%) 8 16 7 10 7
Dividend Distribution
Description 2015 2016 2017 2018 2019
Dividend per Share (Rs.) 2.70 3.60 3.60 3.60 3.60*

Total Dividend Paid (Rs.) 91,456,360 121,941,814 121,941,814 121,941,814 121,941,814
Dividend Payout Ratio (%) 60 56 58 76 58
* This includes the final dividend of Rs. 2.74 per share paid for the FY 2017/18 and the 1st interim
dividend of Rs. 0.86 per share paid for the year 2018/19.

COMMUNITY
During the year we continued to pursue
activities to educate the public on
preventive care, and on actions to be
taken to address emerging medical
concerns.
As a responsible corporate entity founded about heart disease and encouraging “This programme is very interesting
on a philosophy of compassion and care, lifestyle modifications to promote heart- and important. Very good, and keep us
Durdans Hospital is dedicated towards healthy living. informed if there is another”
uplifting the nation’s standards in health Mr. Fernando
and wellness, by enabling improved access The programme included brief
to healthcare and raising awareness among presentations and demonstrations headed “It was excellent. We gathered a lot of
communities and medical officers regarding by subject experts, offering practical and information from all the five sessions”.
the latest health developments, while crucial information regarding surgical Mrs. Athukorala
promoting practices for healthier living interventions, cardiac rehabilitation, diet
among the people. During the year we and nutrition and recommended physical A cardiac rehabilitation package was
continued to pursue activities to educate activities to promote healthier lifestyles and launched during the forum, providing to the
the public on preventive care, and on reduced risk of heart disease. public a medically supervised programme
actions to be taken to address emerging
with components consisting of family
medical concerns.
The response to the programme was highly doctor consultation, yoga, physiotherapy,
positive, with a great degree of positive cardiologist consultation, in addition to
THE DURDANS HEART HEALTH FORUM feedback received from participants, as a dietitian and nutritionist consultation.
As a pioneer and leader for dedicated shown below; Organised rehabilitation programmes such
cardiac care, Durdans Hospital houses
some of the finest cardiac specialists in the
country further reinforced by a facility fully
designed and equipped for the purpose
of performing a range of procedures,
including both routine and complex
surgeries. Therefore, we continued in our
quest to share our collective knowledge
in order to create public awareness and
educate the community regarding cardiac
care and the proposed methods to combat
this non-communicable disease.
During the year we held the second

instalment of the Heart Health Forum,
themed ‘Health that Makes the Heart Go
On’, which took place on the 25th August
2018 at the Durdans Auditorium. The
forum serves as a means of education and
awareness for both heart patients and the
general public, disseminating knowledge

Our Business
Our Leadership
Governance
Financial Reports

on the first day of the camp, with Durdans

doctors and staff performing health
assessments on each participant, free-of-
charge. Blood pressure checks, blood tests
and BMI calculations were some of the
assessments conducted. The second day
of the programme was reserved for doctor
consultations enabling patients to approach
eminent Consultant Cardiologists Dr. W.
S. Shantharaj and Dr. Shanike Karunaratne
who provided the people with their expert
assessment and recommendation.
This marked the first time that a CSR event

of this magnitude had been conducted
in Eravur and the response from the
community was overwhelming.
“Everyone was here from the beginning,

as these have the potential to improve HEART HEALTH CAMP IN BATTICALOA working with commitment”
cardiovascular health for individuals who The Durdans Heart Centre is regionally Mr. Mahath, Principal,
have suffered from cardiac arrest, heart renowned for performing complex heart Al Muneera Balika Maha
attack, or are recovering following heart surgeries with superior outcomes. Each Vidyalaya
surgery. year the centre performs an overwhelming
number of routine heart procedures and “Lots of people find it difficult to go to
The forum opened with a session on surgeries in addition to ground-breaking Colombo, this is a golden opportunity
Wellness, Exercise and Fitness by Dr. Shreen procedures in healthcare. In a bid to for our people. There are many
Willatgamuwa, the hospital’s Resident improve access to healthcare among socio- underprivileged people here in Batticaloa
Family Physician and Executive Wellness economically disadvantaged communities, and they have come here to check their
Centre In-Charge. This was followed by Durdans Hospital organised a two-day health condition. We are thankful to
a culinary demonstration of a Quick Fix health camp in Eravur, a remote town 15 km Durdans Hospital”
Salad and Healthy Burger conducted by North-West of Batticaloa. Mr. Ahamed, Chairman,
the resident chefs. Next, Dr. Chamara Eravur Urban Council
Rathnayake, Consultant Cardiologist The Durdans Heart Centre specialises in
conducted a session on Living with Heart comprehensive heart screenings that are “All Durdans staff were very friendly and
Disease FAQs while the benefits of yoga for conducted by a leading pool of visiting and doing the job well”
the heart and body were expounded on by resident consultant cardiac specialists. This Mr. Devarajah
yoga instructor, Ms. Nirojini Nagenthiram. aids in the early detection of risk factors that
The advantages of physiotherapy were can prevent the development of chronic “…poor heart patients are here so we
highlighted by physiotherapist Mr. Prabath heart diseases, which served as the primary appreciate this kind service free of
Jayawardena, with a session on minimally objective of this programme. charge.”
invasive cardiac surgeries being presented Mr. Wahabdeen
by Dr. Kesava Dev, Resident Cardiothoracic The cardiac-related health camp took place
Surgeon of Durdans Hospital. Following at Al Muneera Balika Maha Vidyalaya, As a result of the programme, it was
the programme’s conclusion, the audience Eravur from the 14th to 15th July 2018, identified that a significant number of
was provided the opportunity of meeting covering two full days of serving the individuals who attended were over the age
and discussing their queries with our panel people via comprehensive check-ups, of 40, with a considerable portion of them
of distinguished speakers while enjoying consultancies and expert recommendations. displaying high risk symptoms including
healthy refreshments. Approximately 250 patients participated high cholesterol and sugar levels – enabling

BLOOD DONATION CAMP
Durdans Hospital conducted a blood

donation campaign in May 2018,
enabling the donation of over 100
pints of blood to the Apeksha Hospital
Maharagama, with the participation
of neighbouring offices, homes and
Durdans staff, who all gave their time
to save a life, despite facing busy
schedules and challenging weather.
HIP SURVEILLANCE INITIATIVE
In recognition of World Cerebral Palsy

Day, Durdans Hospital partnered with
the hospital to educate the people of NCCCPDD and the MJF Foundation to
DURDANS SPONSORS EMERGENCY
Eravur on methods of preventing the rising launch the ‘Hip Surveillance Initiative’
AMBULANCE FOR SCHOOL SPORTS-
threat of cardiac disease. for children for the first time in Sri
MEETS
Lanka. Through this programme, the
PARENTCRAFT PROGRAMMES at-risk children for cerebral palsy and
During sports-meet season, Durdans other childhood-onset disabilities from
Parentcraft is a free programme held Hospital facilitated a free ambulance
periodically, enabling couples to the MJF Centres across Sri Lanka are
service supported by medical provided with X-ray imaging to support
prepare for their baby’s arrival. At this personnel placed on standby to
event gynaecologists, obstetricians, medical and therapeutic facilities.
ensure safety in the face of a possible
paediatricians, nutritionists, audiologists emergency. The following schools
and other specialists take to the stage to received this service during the year:
deliver expert knowledge on topics that are premises on 17th November 2018, featuring
of importance to the healthy growth of the knowledge and advice beneficial for
Ananda College – 8th February diabetes prevention, treatment and lifestyle
baby and the mother and speak on ways in 2019
which certain complications can be avoided management. Attendance was free, with
or mitigated in a pregnancy or after birth. sessions conducted by subject specialists
St. Bridget’s College – 14th who disseminated knowledge on new
February 2019 findings, diet and nutrition, complications
DIABETES IN FOCUS
and a healthy lifestyle related to diabetes
Identifying the rise of such non- St. Peter’s College Primary – which was received with great enthusiasm
communicable diseases, during the 22nd February 2019 from the general public.
year Durdans Hospital held a Diabetes
Awareness Program at the hospital
Durdans Hospital further conducted the
following events during the year, inspired
by its dedication towards improving
the nation’s access to healthcare and
transforming lives.

Our Business
Our Leadership
Governance
Financial Reports

... participated in a number of exhibitions

CONTINUING MEDICAL EDUCATION
PROGRAMMES
and programmes designed to create In addition to educating the hospital’s staff

through ‘Continuing Medical Education
public awareness regarding new Programmes’ (CMEs), Durdans Hospital

conducts and supports similar events
developments in the healthcare industry throughout the year to enhance the

knowledge of medical practitioners across
and communicate to the people the different parts of the island.
range of services offered by the hospital. 04th July 2018 - Durdans Hospital
sponsored a Continuous Medical Education
Programme at the Anuradhapura Teaching
Hospital, attended by consultants and
medical officers in the region. Initiated by
the Anuradhapura Medical Association, the
programme was consisted of awareness
sessions on topics related to surgical
procedures.
28th January 2019 - In a continuous effort to

support the Sri Lankan Medical Fraternity,
Durdans Hospital hosted the IMPA
Continuous Medical Education Programme,
with a distinguished panel including Dr.
Nilesh Fernandopulle communicating on
Colon Cancers, Dr. Ashan Abeywardene
discussing Knee Replacement while Dr.
Pandula Athaudaarachchi enhancing
the knowledge regarding Interventional
Cardiology respectively.
22nd February 2019 - A Continuing

PUBLIC AWARENESS AND Exhibition organised by the Medical Faculty Medical Education (CME) program was
COMMUNICATION of the University of Jayewardenepura. conducted for medical professionals,
Durdans Hospital participated in a number with ‘Medical management of Advanced
of exhibitions and programmes designed Medicare - 01st to 03rd March 2019- Cirrhosis in Adults’ and ‘An Update in
to create public awareness regarding new Durdans Hospital participated in the Image Guided Interventions’ being the
developments in the healthcare industry 10th edition of the Medicare National key topics under discussion. The former
and communicate to the people the range Healthcare Exhibition, recording over 3,000 session was delivered by Professor
of services offered by the hospital. attendees. Our representatives were there Janaka De Silva, Consultant Physician and
to provide information about the services Gastroenterologist, while the latter was
Vedesa 2018 Exhibition - 04th to 08th and packages offered by Durdans Hospital, conducted by Consultant Interventional
December 2018 - Durdans Hospital had a while a game and complimentary giveaway Radiologists Dr. Eranga Ganewatte and Dr.
stall in place to disseminate information further made it an interactive experience for Chinthaka Appuhami. Many consultants and
regarding hospital services at the Vedesa people. nursing staff attended this programme.

FREE CLINICS
During the year we conducted the following
free clinics, enabling better access to
healthcare, while encouraging a move
towards early diagnosis and preventive care.
UROLOGY
A Free Stone Clinic for Urology speciality
was conducted on the 30th of March
2019, at which the initial consultation
was conducted free of charge. The
clinic assisted in the health assessment
and diagnosis of many of the patients
that attended the clinic, of several were
diagnosed to undergo procedures and
surgery.
ENT
A free ENT Clinic for the purpose of
diagnosing disorders of the ears, nose
and throat was conducted on the 23rd
of March. The Clinic generated a high
level of interest, evidenced by the rapid
registration of patients filling up all available
appointments, with several of them being
translated into referrals to ENT Specialists.

Our Business
Our Leadership
Governance
Financial Reports

HUMAN CAPITAL
Our human resources policy continues to

SDGS IMPACTED:
evolve according to employee needs and

industry dynamics, enabling us to further
nurture our people, creating a culture
that promotes employee satisfaction and
Our employees are motivated, driven and
highly skilled and serve as a key contributor
welfare.
towards the Durdans experience, dedicated
towards delivering service excellence, care the basis of race, religion, gender, marital primary categories, namely executive and
and the highest standards in healthcare. status or sexual orientation. Composed non-executive levels, of which the latter
Year on year, we enhance their skills, of a predominantly female workforce, serves as the majority.
assisting them on their path to growth, and our employees are distributed across two
enable them to reach their full potential.
Our human resources policy continues to
evolve according to employee needs and EMPLOYEE AGE ANALYSIS - (%) GENDER-BASED EMPLOYEE
industry dynamics, enabling us to further DISTRIBUTION - (%)
100
nurture our people, creating a culture
45
44
43
42
47
100
that promotes employee satisfaction and 80
72
71
70
69
68
welfare. 80
60
60
EMPLOYEE DIVERSITY AND INCLUSION 40
40
As an equal opportunity employer, Durdans 20
Hospital values diversity, providing fair
55
56
57
58
53
20
28
29
30
31
32
and equal opportunities in recruitment 0
2015 2016 2017 2018 2019 0
and selection. Our workforce is skilled and
Above 30 Below 30 2015 2016 2017 2018 2019
diverse, and we do not discriminate on
Male Female
STAFF CATEGORY ANALYSIS - (%) RECRUITMENT AND SELECTION

The skills and expertise of our human
11
11
5
100
FEMALE WORKFORCE capital ensure the seamless function of
80 the hospital’s daily activities. As such, our
68% 60
objective is to recruit and select the finest
talent in a timely and cost-effective manner,
40 in order to facilitate the achievement of
the Hospital’s strategic aims. Therefore,
EMPLOYEES 20
our well-defined recruitment and selection
95
93
92
89
89
2,175
0 policies are aligned towards identifying
2015 2016 2017 2018 2019 and selecting the right person for the
Non-Executive Executive right position, based on pre-defined job

specifications and qualifications, while
specific education and skill requirements
must be met for a potential candidate to be
considered for a specialised discipline.
We continued to invest in partnerships

with higher education institutes, technical
training institutes, job banks and recruiters
in order to source top graduates and
candidates for new vacancies. Furthermore,
we developed a comprehensive interview
process map in order to clearly identify and
indicate the different stages in the interview
process faced by every employee level
across the organisation.
SCREENING PROCESS
All medical professionals, resident doctors
and consultants are screened by our
‘Credentialing and Privileging Committee’ DISTRIBUTION OF VALUE ADDITION through the Human Resource Information
prior to them beginning their practice TO EMPLOYEES - (Rs. Mn) System (“HRIS”) implemented in the
at Durdans Hospital. The credentials financial year under review.
2,000
of potential candidates are reviewed
and verified with utmost care to ensure The following benefits were extended to
1,500
we recruit only skilled personnel to our full-time permanent employees during the
workforce, thereby guaranteeing that our 1,000 year:
customers’ health is in capable, safe hands.
500 Performance-based bonus provided in
1,071
1,286
1,506
1,595
1,736
AMRAK INSTITUTE OF MEDICAL addition to the regular bonus scheme

SCIENCES 0 decided by the management.
2015 2016 2017 2018 2019
Durdans Hospital has established Amrak
Institute of Medical Sciences to generate Payment for extra work carried out
skilled labour for the healthcare industry. by non-executive employees such as
Our staff remuneration consists of
A Durdans Hospital and Astron, India overtime, night allowances and holiday
guaranteed ‘fixed’ salary and fixed and
affiliated educational institution, commercial pay.
variable allowances determined by means
operations of Amrak are expected to begin
of periodic market surveys for various
in the foreseeable future. Performance incentives for clinical and
employee categories. We are in the process
non-clinical staff for work beyond their
of revamping our rewards and recognition
RECOGNITION, BENEFITS AND expected capacity.
structure to better reflect our KPIs and
REWARDS
Brand Promise. Incentives are calculated
Our employee remuneration packages Hostel accommodation for nursing staff,
based on an employee metric analysis
reflect the level of responsibility associated pupil nurses and nurse aids.
linked to overall company performance and
with the relevant post, regulatory policy cascading objectives, while recognising the
and market standards. During the year Staff meals at subsidised rates.
employee’s individual performance which
we enhanced salaries as per the accepted is identified through the hospital’s annual
market rate, in order to contribute towards Monetary benefits for OPD services.
performance appraisal. We anticipate this
greater job satisfaction and motivation appraisal system and process to be further
among our workforce. streamlined and reach peak efficiency

Our Business
Our Leadership
Governance
Financial Reports

HUMAN CAPITAL
As the second phase of this practice, a

series of continuous quality improvement
audits were carried out throughout the
hospital in both medical and non-medical
wards/units and departments. This audit for
compliance was conducted by the Astron,
India auditor, Dr. Jitender Sharma together
with the Quality Assurance Department and
the Chief Nursing Officer.
The recognition and rewards ceremony for

the best performing units with the least
number of non- compliances was held on
the 28th February 2019 in the Durdans
Hospital auditorium organised by the
Human Resource Department.
The Endoscopy unit emerged the best-

performing unit, Food & Beverages as the
second best-performing unit and ward 7B as
Medical and hospitalisation insurance TOTAL TRAINING HOURS
the third best performing unit. Furthermore,
cover to staff and their family members.
14,548
all wards, units and departments scoring
above the determined average cut off mark
Insurance schemes which provide
were once again awarded certificates of
monetary benefits to the next of kin in
commendation.
the event of death of an employee after
TRAINING HOURS
a critical illness. PER PERSON TRAINING AND DEVELOPMENT
8
Free staff transport service provided for Our training needs are identified through
those working late hours. the analysis of data collected from a range
of aspects across the hospital’s various
Workman insurance policy covering the functions, including Customer Feedback,
risk of permanent/ temporary disabilities Incident Reports, HAI Risk Analysis Forms,
due to work related accidents. CPR Record Sheets, Morbidity and Mortality
respective units in order to inculcate this Incidents, Observing and Detecting Bad
practice. Practices and Open and Closed BHT Audits.
Recognising the best Customer
Relationship Officer/ Customer Through our training and development,
With the support of the Chief Nursing we anticipate to achieve the following key
Relationship Executive every quarter. Officer and matrons, the Quality Assurance components:
Department conducted the audits, followed
QUALITY INITIATIVE AWARDS by the recognition and rewarding ceremony
As an initiative of the Quality Week 2018, which served as its finale. The Cardiac
the habit of self-auditing for compliance Surgical Intensive Care Unit emerged
within all wards and units in Durdans winners while the Neonatal Intensive Care
Hospital was implemented by the Quality Unit and Dialysis Unit held the second and
Assurance Department. Self-auditing third places. Furthermore, wards/units and
checklists unique to each ward and unit departments scoring above the average
were formulated in accordance with the cut off mark were awarded certificates of
hospital policies and handed over to the commendation.

In fulfilling our mission to deliver on our
promise of compassion and dedication
towards the people we serve, Durdans
Hospital has identified the need for our
employees to provide a service that extends
far beyond mere technical knowledge
and skills. Therefore, the hospital invested
in establishing the ‘Future Leaders’
development programme for nurses, sisters
and matrons, targeting the development
of soft skills, and emphasising aspects
such as customer relations, ethics and
confidentiality.
Furthermore, we conducted a training

needs analysis for back office staff and
developed a lab grading, taking into
consideration the number of years of
experience, in addition to pursuing
mandatory JCI training and the routine
technical skills training required by various
employee levels.
Knowledge
Skills
Attitudes
Our main
aim is to
improve
Our ultimate
objective is to
improve
Communication
Skills
Professionalism
Maintain Ethics
Good Conduct
Honesty and Integrity
Respect towards patient’s
rights
Teamwork

Our Business
Our Leadership
Governance
Financial Reports

HUMAN CAPITAL
NIOSH
Infection
Infection Training for Customer
Controlling
Controlling fire safety Care Front
ICU / OT
officers
Nurse Aides
Pain Development
International Motivation
Management Programme
Patient Safety Program
Goals
JCI
OTHER
TRAINING
Nurses TRAINING
Development Grooming
Safe Use of Programme Program
BFS
Medication
Radiation Future
Brainstorming
ICD Safety Leaders
for customer
Train the care
Trainer
THE DURDANS NURSING SCHOOL CONTINUOUS DEVELOPMENT the year. The graduation ceremony was
The Durdans Nurses Training School COURSES held at the Learning Centre, with gifts and
continues to nurture dependable, capable A total of 157 staff members participated certificates handed out in recognition of
graduates, while developing high standards in continuous development courses during outstanding performance in these fields.
of nursing capability among its students
via a three-year residential programme
structured according to Government-
approved curriculums and examinations. 21
students successfully completed their first
year of study during the year and concluded
their capping ceremony on 28th March
2018.
Our student nurses proudly sported their

nurse’s cap for the first time, as they carried
a lamp to symbolise their commitment
to the legacy of Florence Nightingale,
while reciting the Nightingale Oath. Prizes
were awarded for outstanding academic
achievements during the course of their
study, with students, parents, training school
staff and senior management in attendance.

CAREER PROGRESSION Avurudhu celebrations were held
25 nurses At Durdans, we recognise our employees’ with the involvement of Durdans
9 housekeeping service and skills, and thus our recruitment management and staff, preceded by the
officers policies encourage internal promotion over traditional lighting of the oil lamp.
6 Food and Cross external hires. Unless circumstances require
Beverage staff functional the hospital to do so, currently all vacancies A Mathematics and Science workshop
Training are posted on the intranet for employee was held for the children of the
Courses consideration. Furthermore, as part of our staff preparing to face the Grade 5
long-term plan to introduce a standardised scholarship examination. Good Luck
system for succession planning across every cards were sent out to those facing GCE
CONTINUOUS department, during the year we proposed O/L and A/L examinations.
DEVELOPMENT a clear career progression path for theatre
COURSES attendants to become theatre technicians. In commemoration of Vesak, the
Durdans staff organised a Bhakthi
EMPLOYEE ENGAGEMENT AND Gee programme, held at the hospital
RETENTION premises.
We recognise that effective employee
Internal The nursing staff and management
communication and engagement ensures
Training of Durdans hospital celebrated
4 drug motivation and commitment, contributing
Courses International Nurses’ day, in recognition
dispensing towards employee welfare, satisfaction and
personnel of the contribution made by nurses
adding value to the customer experience.
3 theatre around the world. Dance performances
All hospital communications and new
technicians and poetry recitals were key highlights
developments in relation to processes,
2 ECG recordists of the event, with tokens of appreciation
policies and systems are channelled via
108 attendants handed out to all nurses.
periodic emails in all three languages, in
addition to the intranet, circulars and the
The Durdans Get-Together held at
hospital newsletter. Additionally, frequent
the SLECC was a resounding success,
meetings are encouraged between the
with the participation of over 1000
senior management levels and their
employees.
These Continuing Medical Education subordinates, creating a space for them to
(“CME”) courses comprise of programmes discuss areas for improvement and voice
Durdans Hospital celebrated Christmas
held in-hospital and out-of hospital, their concerns.
by spreading joy and cheer with the
attended by members of our staff. Lecture
singing of Christmas Carols by staff
Discussions, Workshops, Symposiums and The following engagement mechanisms
members.
Seminars are held at the Learning Centre took place during the year under review;
and Auditorium, with more focused sessions
HEALTH AND SAFETY
including on-the-job training and skills Provided staff with the opportunity
enhancement being held at unit and ward to obtain household appliances and Durdans Hospital focuses every effort
level. jewellery at a discounted rate using towards fostering a safe, protected
monthly instalments, in partnership with environment for patients and employees
CME files are maintained to document Singer PLC and Mallika Hemachandra alike. Our safety policies and emergency
performance and update skills, with Jewellers. response systems are constantly reviewed
a rewards system implemented for and updated in collaboration with our
participation to ensure employee morale A staff cookery competition was held, dedicated Quality Assurance Department in
and motivation for learning. followed by a culinary demonstration on order to minimise risk and ensure all people
microwave cooking. within the hospital premises remain safe at

Our Business
Our Leadership
Governance
Financial Reports

HUMAN CAPITAL
all times. While adhering to JCI standards, The hospital’s health and safety aspects are firefighting and clinically critical patient
we strive to go beyond mere compliance, governed by multiple committees, shown evacuation.
by dedicating time, energy, effort and funds below;
towards enhancing safety mechanisms In our journey towards continuous
across the board. improvement, we performed our second
full fire evacuation simulation during the
year, with the support of the Fire Brigade,
Disaster Management Centre, Sri Lanka
Air Force and the Sri Lanka Police. Three
Quality
Assurance rehearsals were conducted in total,
Committee encompassing the hospital and the car park
building, carrying out both a day and night
rehearsal for the former, with one rehearsal
for the latter.
Furthermore, we conducted mock drills

for the hospital’s various designated
Infection emergency codes, performed as per GSA
Credentialing HEALTH & Control & standards.
& Privileging
SAFETY Prevention
Committee
Committee OCCUPATIONAL HEALTH AND SAFETY
As a hospital, our employees are exposed
to occupational hazards every day;
therefore, each department follows rigorous
Standard Operating Procedures (SOPs) and
Hospital Safety safety measures customised to address the
& Emergency daily activities and potential risks emerging
Preparedness from the relevant function.
Committee
All hazardous materials are labelled
clearly, quantified and documented, and
periodic training is provided for those who
handle such materials on a daily basis.
In the event of a spillage, staff members
EMERGENCY RESPONSE a comprehensive plan for emergency are trained in the acceptable procedure
PREPAREDNESS preparedness and response. of spill management and must be attired
Upon identifying fire safety as a primary in a HAZMAT suit prior to its execution.
area of focus, we created a benchmark fire Following a gap analysis and an ensuing Similarly, as part of the hospital’s health and
emergency response readiness programme drive towards risk mitigation, the Durdans safety requirement, all bio-waste handlers
at Durdans Hospital, which saw its management tiers were educated on are required to be geared in Personal
completion during the year under review. strategic fire risk management. Over 2,000 Protective Equipment (PPE).
Partnering with external management members of staff were subsequently trained
consultants and working in collaboration on fire risk education, while dedicated
with a cross-functional team from various fire teams received practical training on
departments, the hospital formulated fire emergency response including live

We maintain an open-door policy with
zero tolerance for harassment in the
workplace and are compliant with all
employee related legal and legislative
requirements.
GRIEVANCE MECHANISMS
We greatly value our employees’
happiness and satisfaction, and therefore
apply ourselves towards addressing any
concern raised by our staff. We maintain
an open-door policy with zero tolerance
for harassment in the workplace and are
compliant with all employee related legal
and legislative requirements.
Furthermore, our employees are offered

counselling services free of charge,
facilitated by an experienced in-house
doctor.
HUMAN RIGHTS AND CHILD LABOUR

At Durdans Hospital we dedicate ourselves
to following best practices with respect
to working hours, working age limits,
health and safety measures, elimination of
child labour and sexual harassment, also
respecting the right to collective bargaining
and freedom of association. Our strict
policies ensure that individuals under the
age of 18 are not employed by the hospital,
and our screening process requires us to
validate all documents of identification and
follow up on character references in order
to ensure compliance.

Our Business
Our Leadership
Governance
Financial Reports

... we expanded our operations and

SDGS IMPACTED:
continued to invest in cutting-edge

medical equipment to better reach our
Our manufactured capital consists of our customers, and augment our delivery of
a range of breakthrough, revolutionary
tangible assets, namely the property, plant
and equipment that support our daily
healthcare solutions under one roof.

operations. During the financial year under
review, we expanded our operations and
continued to invest in cutting-edge medical
equipment to better reach our customers,
and augment our delivery of a range of We are also exploring new specialties for the ease of access Katugastota and
breakthrough, revolutionary healthcare which there is an increasing demand among Akurana we have moved to new locations.
solutions under one roof. people, such as geriatric care and facilities Balangoda was converted to a laboratory to
for bone marrow transplants. Furthermore, expand our reach and provide high quality
THE VISION 2022 PROJECT we have plans in place to install a new laboratory services.
Blood Bank and Central Sterilisation
As part of our vision to transform the
Services Department to strengthen and We continued to pursue the establishment
landscape of healthcare in Sri Lanka,
promote operational efficiency. of medical centres to expand our product
we have initiated Durdans Vision 2022
portfolio with consultation and radiology
which will see us realign emerging local
The Vision 2022 Project is conducted services. We further promote customer
and global socio-economic trends with
considering the best practices in healthcare convenience through our island wide
a major infrastructure development and
and designed with healthcare evidence- presence which is supported by our mobile
re-modelling programme. This ambitious
based design a practice proven to achieve services which brings our services to the
project commenced in the first quarter of
the best possible clinical outcomes to our doorstep.
2018 and was further pursued during the
patients by addressing patient safety and
year under review and will see an expansion
efficiencies in delivery of patient care.
of our premises to 350, 000 square feet LAB IN
upon completion. PILIYANDALA
ISLAND-WIDE EXPANSION
75th
Durdans has identified a clear trend towards An established island-wide network of
day surgeries and procedures, low-cost laboratories consisting of over 75 locations
wards and minimally invasive procedures and partner collection centres beyond
and has invested in improving facilities 2000, Durdans Laboratories provide
NEW
to cater to their rising demand. With the convenient access to reliable and accurate LOCATIONS
aim of uplifting the hospital’s present diagnostic laboratory reports. During the
service delivery, the Vision 2022 project will
offer greater convenience to patients by
year, Durdans Laboratory continued in its
journey of growth, expanding to 22 new 22
increasing capacity through the construction locations islandwide. The recent additions
of newer outpatient facilities, waiting areas, to the network include Vavuniya, Kottawa, TOTAL
consultation chambers, wards and greater Piliyandala, Galagedara, Kaduwela, LOCATIONS
76
service automation and innovation. Malambe, Maligawatte, Akurassa, Tangalle,
Mawanella, Gampola, Udawalawe, Neluwa
and Giriulla and Kahawatte. Considering,

Opening
Hours
ISLAND-WIDE REACH Anagarika Dharmapala Road-

Kandy
Medical Centre
Gampola New
Satellite Lab
Mawanella New
Mini Lab
Katugastota New
Durdans Own Collecting Centre
Open 24 hours Kalubowila 6x8

Homagama 6x7
Open 7 a.m. - 7 p.m
Nagoda 6x7
Panadura 7x8
Wadduwa 7x9
Mount Lavinia
Rathmalana
Moratuwa New
Darga Town
Kottawa New
Piliyandala New
Kurunegala
Dambulla
Polgahawela
South Circular Road-Kurunegala
Galagedara
Paragahadeniya
Giriulla New
Negombo
Chillaw
Wennappuwa
Divulapitiya
Negombo - Galkanda Junction
Kochchikade
Marawila New
Colombo 10
Castle Street-Colombo 8
Jayewardenepura
Malambe New
Kaduwela New
Maligawaththa New
Rathnapura
Balangoda
Kahawaththa New
Opening Opening Udawalawa New
Hours Hours
Ragama
Gampaha
Anuradhapura Tangalle New Kiribathgoda
Anuradhapura- Bank Town Neluwa New
Wathupitiwela
Kahatagasdigiliya Karapitiya - New Hospital Road New
Wattala
Kebathigollewa
Jaffna Mahabage New
Kekirawa
Kandana New
Thambuttegama
Kandy Kirindiwela New
Vavuniya
Akurana
Katugastota Road - Kandy Trincomalee
Galle
Duke Street-Trincomalee
Kegalle
Karapitiya Kanthale New
Nawalapitiya
Matara
Mahiyanganaya
Udugama
Wadugodapitiya
Ambalangoda New
Keppetipola Mawatha-Kandy
Akuressa New

Our Business
Our Leadership
Governance
Financial Reports

STATE-OF-THE-ART EQUIPMENT mammogram, etc. to serve its patients Durdans Hospital is proud to possess the
In the year under review, Durdans Hospital with the latest advancements in healthcare most advanced biplane catheterisation
invested approximately Rs. 500 million in and diagnostics. The following notable laboratory in South Asia - the Philips
procuring cutting-edge medical equipment additions to our range of services were Azurion biplane system, which offers next
including the new biplane system, digital made during the year: generation solutions through a ground-
breaking image guided platform to ensure
faster, more efficient diagnosis. The system
Image Guided Therapy System facilitates head-to-toe interventions without
compromising patient safety and comfort,
enabling the transformation of the hospital’s
level of neurology care.
Interventions are performed faster with

less preparation and lab time, without
jeopardizing patient safety due to
the standardised protocols in place.
Interventionists can also operate controls
table-side without having to enter the
control room or re-enter the exam room
thus removing the need for sterility breaks.
NEURO AND PERIPHERAL VASCULAR

PROCEDURES
The biplane introduces new interventional
tools such as VasoCT and AneurysmFlow,
which are a first in South Asia. VasoCT
enables interventionists to view detailed
images of soft tissues and blood vessels,
while AneurysmFlow can enhance decision-
r Accuracy
Highe making through superior visualisation and
quantification of information.
CARDIAC PROCEDURES
In cardiac procedures, live imaging and
Low
rt
navigation platforms can facilitate accurate

Patient Discomfo
navigation inside vessels and enable precise

er Rad
BIPLANE device placement procedures. These

CATHETERISATION platforms further benefit sophisticated
iation Dos
LABORATORY catheter and ablation techniques for cardiac

procedures that require advanced imaging
and allow accurate placement of stents.
c ed
e
u
DIAGNOSTIC PROCEDURES
ed R
The laboratory comes equipped with

an advanced x-ray tube, driving a
powerful performance which facilitates
Pow ce
e rfu l P e rfo r m an enhanced detection. Relying on real-time
information sourced from imaging systems,

... the Philips Azurion Biplane system,
interventional devices and navigational
tools, clinicians are able to make efficient,
which offers next generation solutions

faster decisions for a range of head-to-toe
interventional procedures, thus preserving
through a ground-breaking image

quality of life.
guided platform to ensure faster, more

SAFETY AND HYGIENE
Multiple procedures are made possible
through the Phillips Azurion Image
Guidance System. As a result, heart efficient diagnosis.
catheterisation procedure and vascular
interventions can be performed in the same
operating theatre without moving patients ENDOSCOPY SYSTEM DIGITAL MAMMOGRAPHY
elsewhere, thereby upholding greater levels The Durdans Endoscopy Unit situated A significant development at Durdans
of safety and hygiene. on the ninth floor was revamped with the during the year was the introduction
introduction of the Olympus Evis Exera of Hologic Mammogram, driving early
RADIATION CONTROL AND III endoscopy system, enabling improved detection of breast cancer through sharper
MANAGEMENT patient outcomes and easing the process imaging and improved technology.
A key aspect of patient care pertains to for both patient and clinicians in procedures This digital mammogram is capable of
radiation control and management, which such as bronchoscopy, gastroenterology performing tomo-guided biopsy or 3D
can be achieved with the high definition and other surgical procedures. A highly biopsy in Sri Lanka, the device enables
images generated at a relatively low advanced system, the new unit offers high better visibility for lesions at optimum dose,
X-ray dose through ClarityIQ technology. definition imaging and advanced control, while the advanced speed and redefined
By revealing minute details, this level of enabling the superior performance of ergonomics enhances patient comfort and
visibility assists interventionists in locating routine examinations, early detection of convenience, further reducing the need
the primary site and make accurate, life- various conditions, biopsies, minimally for unnecessary biopsies. The 3D Digital
saving decisions. invasive procedures and increased accuracy mammogram further ensures minimal pain
in diagnosis. due to less compression, while maintaining
higher levels of accuracy.
ADVANCING CONTROL ADVANCING VISUALISATION
Responsive Insertion Technology Dual focus- two-stage optical lens

High Force Transmission technology
Technology Twice viewable distance with
Variable Stiffness Narrow Band Imaging
Scope Guide Save time and effort to capture
One touch connector sharpest image
Maximum compatibility Wider angles

Our Business
Our Leadership
Governance
Financial Reports

GYNAECOLOGY ULTRASOUND related complications. The scanner uses ENT WORKSTATION

SCANNER advanced technology to capture fine details During the year, the ENT clinic transformed
The Voluson E8 Ultrasound System provides and discover the smallest anomalies, thus into a state-of-the-art facility with the
maximum clarity to support the early improving diagnostics and enabling early introduction of the ENT workstation.
detection and diagnosis of issues related to treatment for identified conditions. Supported by modern equipment, the
women’s reproductive health and pregnancy clinic allows for thorough examination and
sound diagnosis of ENT, head and neck
related conditions, and enables therapeutic
procedures and a wide range of minimal
BOTH 2D AND 3D IMAGES CAN BE ACQUIRED WITHIN ONE COMPRESSION access surgery as outpatient procedures.
Safe and Such procedures include examination

Increased detection of very early cancers
comfortable of the ears under the microscope, ear
even in dense breasts
suction under the microscope, endoscopic
nasal examination, endoscopic throat
High resolution 3.7 sec 3D exam Reduces unnecessary examination, minor ear procedures such as
display time recalls providing injection to ears, and evaluation
of the voice. As such, the ENT workstation
offers a sense of comfort for patients and
ease of precision for the ENT surgeon, thus
enhancing the hospital’s level of care.
ADVANCED GYNAECOLOGICAL CARE ADVANCED MATERNITY CARE
Clarity and detail with 2D/ 3D Improved diagnostic confidence in

imaging complex examinations
Visualisation of anatomy in any Better visualisation through 3D/4D
image plane US technologies help detect
Fast and easy visualisation of even congenital birth defects
the tiniest vessels Live video streaming showing
Display more anatomical motion of foetal heart wall or valve
information in a single image than or blood flow in various vessels
with standard FOV through 4D imaging technology
Tomographic Ultrasound imaging 4-chamber view of foetal heart
(TUI) allows better detection of foetal
Faster, Easier and More defect for early treatment with
Comfortable improved outcomes
Diagnose facial profile anomalies
- often a key sign for syndrome
recognition and diagnosis
Automated calculation of number
and volume of ovarian follicles with
sonoVAC

SDGS IMPACTED: EMPOWERING PRIDE A PHILOSOPHY OF CARE
We attract, inspire and motivate Our service philosophy is based on our

passionate individuals brand culture, and during the year we
continued to align our actions, attitudes
DEDICATED COMPASSION and behaviour across all functions and all
We create heartfelt, customer-centric leadership levels. We focused on creating an
Our collective knowledge, systems, experiences experience rather than mere interaction, by
technology and expertise set us apart cultivating employee attitudes and skills, and
ADVANCING MEDICAL EXCELLENCE investing in state-of-the-art technology to
from our competition - ensuring a
distinctive service, while driving efficiency We drive the medical industry towards exemplify a spirit of medical advancement,
and enhanced performance across the greater heights knowledge and heartfelt care.
organisation. During the year under review PRESTIGE BEYOND BORDERS
we invested considerably into upgrading
Enhancing our reputation beyond Sri
and advancing our organisational
Lanka
capabilities in order to better fulfill our
stakeholders’ needs.
THE DURDANS BRAND

Following its repositioning in the previous
fiscal year, we have now successfully CONFIDENCE EMPATHY
completed the physical image and public The feeling or belief that one Every Durdans team
perception of the Durdans brand. All can rely on receiving the best member is aware of the
signage, communications and uniforms now possible care, expertise and feelings, emotions, needs
communicate a paradigm shift in our brand quality at every step. and concerns of others,
constantly looking for
offering, moving towards a service that’s
ways to improve their
wholly ‘Dedicated to You’. During the year, satisfaction.
we focused on further aligning ourselves
with our brand strategy, achieving our vision
to shape the future of Sri Lankan healthcare.
Our brand purpose is to define the

customer experience by positively engaging
with customers during their Durdans
ASSURANCE PROGRESSIVE
journey, which begins before entering
To ensure all A forward-thinking
the hospital, and extends beyond their
communications and approach to all things
departure. This encompasses four aspects: interactions with customers healthcare - constantly
dispel any doubts or applying the best
uncertainties they may practices for the total
have. benefit of our customers.

Our Business
Our Leadership
Governance
Financial Reports

During the year the Company launched

remove all manual forms, thus reducing the
cost and Turnaround Time (TAT). Through
the first phase of its very own HRIS.

the introduction of electronic lab reports,
our printing cost reduced significantly, by as
Created using a cloud-based platform,

much as 40%.
and accessible to employees via a mobile

Due to the deployment of the new LIS,
all our centers can now access customer
app, the system enables the automation

reports online, minimising delivery costs
and resulting in considerable time savings.
of key HR related activities...

Investigation reports are also available on
the Durdans website presently for tests
conducted at the hospital. The islandwide
roll out plan is scheduled for the next
financial year.
HUMAN RESOURCES
During the year the Company launched the
first phase of its very own Human Resource
Information System (HRIS). Created using
a cloud-based platform, and accessible to
employees via a mobile app, the system
enables the automation of key HR related
activities including attendance records,
overtime, leave requests, approval and
payroll - thereby streamlining the HR
process, enhancing security and protecting
employee confidentiality.
As an entity entrusted with the public’s

health and well-being, we owe an immense
responsibility towards the people we
serve. Therefore we are working towards
TECHNOLOGY We currently utilise a hybrid cloud-based automating the hospital’s recruitment and
Today’s healthcare sector is transforming architecture, leveraging each aspect to validation process, and are taking steps
exponentially with the rise of new achieve greater flexibility, speedy and to digitise and further strengthen our
developments including IoT (Internet of higher levels of security and excellence in onboarding process, thus ensuring we hire
Things), and the advancement of healthcare customer service solutions. qualified candidates with the right skills,
wearables being areas of key impact. As train new recruits to achieve thorough
such, the need for greater accuracy and PROCESS AUTOMATION knowledge in their respective fields, and
robust transactions is vital to address the Laboratories drive service excellence in all aspects of our
inevitable future of a strong digital health A key highlight of the year was the operations.
network and a system of proactive care. implementation of our Laboratory
Information System (LIS), an initiative which During the year we also implemented the
In order to accommodate these rapid saw us achieve the complete automation following systems and processes to further
developments in technology, we enhanced of our Laboratory system. From the point improve operational excellence and foster
the hospital’s architecture through of collection of a sample to the report better management practices:
virtualisation and the installation of new being released, the entire spectrum of our
infrastructure during the year under review. laboratory operations was redesigned to

KNOWLEDGE AND EXPERTISE
We pride ourselves on our expertise and
specialised industry knowledge gathered
through nearly 75 years in the healthcare
industry. Furthermore, we collaborate
with highly skilled personnel, a rich panel
of consultants and the best industry care
professionals to ensure that the highest
standards in healthcare and wellness are
extended to the multitude of lives by whom
we impact.
Activity Outcome
Automation of the JCI Accreditation Process Reduced paper consumption

Streamlined process
Computerising inventory for laboratories Improved operational efficiency
situated out-station
Combined all system platforms on a central Convenience
console on the portal for internal users
Ease of access
Outpatient pharmacy optimisation through Reduced customer waiting time
the improvement of queuing system
Streamlined process
Introduction of online lab reports Reduced turnaround times/timelines
Increased customer satisfaction
Reduced carbon footprint through less
paper usage, less printing and reduced
travel
Introduction of online health packages Convenience
Increase of customer base
Revenue increase
High levels of customer satisfaction
Theatre Booking System enabling surgeons to Operational efficiency
book time slots for surgeries
Resource optimisation

Our Business
Our Leadership
Governance
Financial Reports

The following are a few examples of complex procedures performed at Durdans Hospital during the year under review.
OPEN HEART SURGERY AND VALVE REPLACEMENT
Open heart surgery and valve replacement was performed on a patient who had three 98% blocks and further required an aortic valve
replacement. The patient, a Sri Lankan national who resides in Canada decided to get the procedure done at Durdans Heart Centre.
After the surgery the patient felt no pain at all and by the time he left the hospital was even able to engage in daily activities like
climbing stairs.
PATIENT PARTY TESTIMONIAL:

“I saw Dr. Dev, and he didn’t think that these stents could be put but I pursued the matter. Then I went back to
pursue the matter further in Canada and they said that the valve can be replaced but that the blocks cannot be
treated with stents because of the position of the blocks. So they said I have to undergo open heart surgery. So I
decided to come here and saw Dr. Dev again. The surgery was performed on the 01st of October 2018. Now as I
talk to you I experience no pain at all. I left hospital on the 16th of December. I was climbing stairs. So I came home.
Everything was normal. I felt good, and I feel really fit now.”
Mr. Lakshman Marasingha
Scan QR to watch the video
OFF PUMP MINIMALLY INVASIVE BYPASS SURGERY (MIDCABG)
A patient with severe artery blocks underwent a heart surgery following a second Myocardial Infarction (heart attack) but experienced
a quick recovery due to a minimally invasive bypass surgery. The leading Resident Cardiothoracic Surgeon at Durdans Heart Centre
performed an Off Pump Minimally Invasive Bypass Surgery (MIDCABG) on Mr. Ramaiah, who was diagnosed with unstable Angina and
Single Vessel Coronary Disease where his left artery revealed a 100% block. On the day of discharge, Mr. Ramaiah was fit enough to
drive back home due to the lessened trauma on the body from the minimal invasive surgery.

“…One significant thing that touched me was the empathy shown by the Dr. Dev and the unity of all the doctors
and others including ICU staff…”
Mr. L. K. Ramaiah

MULTI ARTERIAL REVASCULARISATION SURGERY
Having shown signs of six blocks in his heart, Mr. Silva underwent Multi Arterial Revascularisation Surgery to remove these blocks.
Cautioned not to engage in sprinting again, he decided to train in race walking. Six months after the operation, Mr. Silva resumed his
training at a slow pace, based on the doctor’s advice. By March 2018 he reached peak condition, and in June 2018, he participated in
his first meet since the surgery, winning a gold medal for 5km speed walking at the Sri Lanka Masters Athletics Games. Furthermore, he
was selected for the World Games as well. In 2019 Mr. Silva hopes to participate in the 21st Asian Masters Athletics Championships, to
be held in Malaysia.

“…The first time we met Dr. Dev, my family and I became confident that I would make a good recovery… I got the
opportunity to be selected for world games thanks to Dr. Dev and the staff at Durdans Hospital” (Translated from
Sinhala)
Mr. A. T. Wijya Silva

AORTIC ARCH ANEURYSM AND BYPASS SURGERY
Mr. A L Gamini had a throat problem but only when he began losing his voice did his family become alerted to his condition. A scan
showed that he had an aneurysm in his aorta which is the largest blood vessel in the body. Because of the position of the aneurysm
at the aortic arch, the previous cardiothoracic surgeons they had visited were hesitant to operate on it. Finally, on approaching the
Resident Cardiothoracic surgeon at Durdans Heart Centre, he confidently agreed to do the surgery. It was a complicated surgery that
took 14 hours to complete with 2 bypass surgeries required along with the aneurysm. The patient had a speedy recovery.

“…He (the Cardiothoracic surgeon) was very supportive and he said he had done a similar surgery. He was one of
the first who went right ahead and said it can be done...”
Mr. A. L. Gamini

Our Business
Our Leadership
Governance
Financial Reports

BALLOON EXPANDABLE TRANSCATHETER AORTIC VALVE IMPLANTATION (TAVI)
A complex procedure involving balloon expandable transcatheter aortic valve implantation (TAVI) – (without open heart surgery)
was performed on 82 year old patient Mr. Indrasena with ischemic heart disease and poor lung function by the Resident Consultant
Interventional Cardiologist of Durdans Hospital. The patient was deemed at high risk level by cardiothoracic surgeons for an aortic valve
replacement and bypass operation.
Following thorough TOE and CT assessments, the procedure, a minimalistic approach without any surgical input, was performed by
inserting a catheter through the groin arteries under local anaesthetic only, with the patient kept conscious throughout the entire
procedure. Pre-dilation balloon expansion was administered, the aortic valve assembled through the aortic annulus and the valve
implanted under rapid pacing, resulting in a perfect aortic valve without any complications or bleeding during or after the procedure.

“…After the procedure my father was quite OK. His recovery was fast. In the morning we walked and he told me
that he doesn’t feel breathless like he used to feel earlier.”
Mr. D. A. Indrasena
AORTIC REPAIR AND VALVE REPLACEMENT
Mallik S Mohamed (39) arrived in critical condition at the Durdans A & E suffering from what was later discovered to be an Acute Aortic
Dissection Aneurysm, a life threatening condition. This dissection involved the aorta from beginning to end. Furthermore the blood
flow to his leg was compromised, and the aortic valve was leaking. He also had high blood pressure that could not be controlled even
with medication (malignant hypertension) which further complicated matters especially from an anaesthetic point of view. Overall, this
was a 14 hour long high risk surgery. An Ascending Aortic Repair along with valve replacement was performed where techniques such
as circulatory arrest with bilateral ante-grade cerebral perfusion with the aid of axillary cannulation were used. Following surgery, the
patient made a positive recovery. The pulse in his legs reappeared and his blood pressure is now controlled.

“I was rushed to Durdans Hospital and was immediately attended to by ETU staff. I woke up in the cardiac ICU. I
found out that my stars were good. I found out that I was brought to the best cardiac unit in the country”
Mr. Mallik S. Mohamed

During the year Durdans Hospital
AWARDS AND CERTIFICATIONS
Durdans is synonymous with excellence
in patient care, and as testament to our
achievements in this regard, Durdans received an award for the initiation of
Hospital received the following awards and
accolades during the year under review. a digital platform towards healthcare,
JCI Reaccreditation awarded by Dynamic CEO.
Durdans Hospital was re-accredited by
Joint Commission International during the
period under review. Durdans possesses the
distinction of being the first ever hospital
in Sri Lanka to receive JCI accreditation,
exemplifying its commitment to quality and
service excellence. The Joint Commission
is a United States-based organisation that
accredits more than 21,000 US healthcare
organisations and programmes. JCI
accreditation is considered the gold
standard in global healthcare.
ISO Re-assessment
A re-assessment was conducted within the
period of review, by Sri Lanka Accreditation
Board (SLAB) under the ISO 15189: 2012
accreditation scheme. Upon a successful
audit the SLAB has recommended to re-
certify the accreditation for Biochemistry,
Endocrinology, Clinical Pathology,
Haematology, Immunology, Histopathology, Digital Maestros Award 2018 Automation of Recruitment & Validation
Microbiology and Serology. During the year Durdans Hospital received Processes
an award for the initiation of a digital
A surveillance audit was conducted in 2018 platform towards healthcare, awarded by Strengthening the employee
for ISO 15189: 2012, awarded by Sri Lanka Dynamic CEO. onboarding process
Accreditation Board. The audit received a
favourable report. Following the audit SLAB FUTURE FOCUS AREAS Lean Management Practices to reduce
has also recommended Durdans Laboratory Launching a mobile app to enable stockholding, improve forecasting and
for recertification in 2019. customer convenience processes
Implementing EMR for OPD, Accident

& Emergency, Radiology and Operating
Theatres

Our Business
Our Leadership
Governance
Financial Reports

NATURAL CAPITAL
... year-on-year we strive to reduce our

SDGS IMPACTED:
environmental impact through initiatives

related to four primary aspects; energy,
water, emissions and waste.
At Durdans Hospital, we are committed to

the welfare of the environment in which we
operate, and thus year-on-year we strive to
reduce our environmental impact through
initiatives related to four primary aspects;
energy, water, emissions and waste.
In the year under review, Durdans Hospital

implemented a new heat recovery system,
through which wastage is recovered and
supplied towards heating cool water for
distribution throughout the hospital. This
initiative resulted in the shutting down
of both boilers previously used for water
heating, causing a considerable reduction
in fuel consumption. Furthermore,
the hospital’s conversion to the heat
recovery system equates to zero cost of
fuel, translating to an overall saving of MONTHLY transformation in the coming year, in order
approximately Rs. 900,000 per month. CONSUMPTION to continue our journey of reducing our
environmental impact.
ENERGY
At present, we are taking measures towards 617,888 kWh Furthermore, the hospital has introduced
implementing a cost saving initiative for a lighting schedule in order to optimise
the hospital’s air conditioning system by ELECTRICITY COST our energy consumption levels and reduce
decommissioning two air condition chillers PER MONTH wastage and we have planned an awareness
Rs. 13.5 Mn
located on the premises. This project is programme among the staff to ensure
anticipated to result in energy savings the schedule is followed accordingly. We
between Rs. 1 - 1.5 Mn. plan to implement an Automatic Lighting
Control System in the coming years, in
ENERGY SAVINGS PER
We are in the process of converting order to automate and streamline the
MONTH
fluorescent light fittings to LED lighting in process and ensure the schedule is
Rs. 1.2 Mn
phases resulting in energy savings during adhered to.
the year. The project has reached 50%
completion, and we hope to further the

WATER receive complete approval. Following this
Cleanliness and hygiene is of paramount process, we have obtained the required
importance at Durdans and we adhere license to operate our incinerator and have
to strict guidelines and standards in met the necessary compliance for the year.
terms of water consumption. Our water is
obtained from the main city’s water line and WASTE
undergoes filtration at a water treatment All waste we produce is segregated
plant prior to being used for drinking according to the following classification,
purposes. In terms of washing and other colour-coded for ease of identification:
purposes, the water is used directly from
the main line.
CONSUMPTION WASTE
PER DAY MANAGEMENT
281,000 ℓ General Waste - Black
CONSUMPTION PER Infected Waste - Yellow

MONTH Food Waste - Green
8,711,000 ℓ Plastic/ Polythene - Orange

Glass - Red
COST PER Paper - Blue
MONTH
Rs. 774,177 Our staff receive waste management

training and are made aware of safe and
accepted methods of disposal. Bio waste
from the operation theatres and sharp box
We aim to control and reduce our
waste is disposed by incineration, while
consumption of water in the following year,
waste such as paper and cardboard are sold
by means of further increasing hospital-wide
to third parties for recycling. Food waste is
initiatives to create awareness on water
provided as food for livestock, while glass
usage.
bottles are handed over to a third party
for responsible and safe disposal. Infected
EMISSIONS
linen is disinfected with chemicals and sent
At Durdans, we remain mindful of the to the laundry for cleaning. All hazardous
emissions we distribute to the environment, materials are disposed of responsibly,
and therefore we strive to meet the ensuring minimum harm to the environment
acceptable standards established by the and the surrounding communities.
relevant authorities. Following a thorough
inspection by a third party, i.e., the Industrial
Technology Institute (ITI), our emission
levels were measured and submitted to the
Central Environmental Authority in order to

“ We are defining the future of Sri Lankan
healthcare through our promise of a truly
healing experience for the many people, families
and communities we serve every day. ”
GOVERNANCE
Corporate Governance 78

Our Business
Our Leadership
Governance
Financial Reports
Corporate Governance
1. EXECUTIVE SUMMARY best practices in corporate governance. and legislations relevant to the business of
The Company has in place a structured Detailed below are the compliances the Company. Further, where relevant and
corporate governance framework adhered to by the Company in terms of appropriate, the Company has ensured
which serves to maintain and enhance mandatory provisions of the Companies that it practices the Revised Code of Best
sustainable shareholder value. In addition to Act, Listing Rules of the Colombo Stock Practices on Corporate Governance issued
compliance with mandatory requirements, Exchange (“CSE”) and the Securities and in 2017, jointly advocated by the SEC and
the Company has its own internal Exchange Commission of Sri Lanka (“SEC”), the Institute of Chartered Accountants of
benchmarks and processes in order to meet in addition to all other rules and regulations Sri Lanka (CA Sri Lanka).
2. ENTERPRISE GOVERNANCE FRAMEWORK AT DURDANS
Shareholders
Board of Directors
Audit Committee Remuneration Related Party Executive

Committee Transactions Chairman Group Advisory Committee
Review Committee
Executive Director
Executive Management
Committee
Group Medical Services
Committee
Chief Operating Officer Director Medical Services

External Auditor Internal Auditor
Senior Management Medical and Critical Care

Team Services Committee
Legal Compliance Procurement Business Technical Risk Management Credentialling Medical Ethics Medical Audit
Committee Committee Development Committee Committee and Privileging Committee Committee
Committee Committee
Pharmacotherapy Quality
Condemnation Committee Assurance
Committee Committee
Infection Control
and Prevention
Committee
Hospital Safety
and Emergency
Preparedness
Committee

2.1 The Board of Directors Overseeing systems of internal control BOARD COMPOSITION
2.1.1 Board Responsibilities and risk management functions
The key responsibilities of the Board include A
the following: Reviewing and approving long-term
strategic investments and capital
D
Reviewing annual plans and long-term expenditure
business plans
Ensuring all related party transactions
Providing direction and guidance to are in compliance with statutory
formulate medium and long-term obligations
strategies aimed at promoting the long-
term success of the Company Monitoring systems of governance and
compliance
C
SOME KEY DECISIONS MADE BY THE BOARD DURING THE YEAR WERE AS FOLLOWS. B
Entered into a joint venture agreement with Digital Holdings Lanka (Pvt) Ltd
(“DHL”); a subsidiary of Dialog Axiata PLC to invest in a 9% stake of the ordinary A: Designation
shares of DHL with the intention of expanding the healthcare services of the Executive Non-Executive Non-Executive
Non-Independent Independent
Company via an integrated e-commerce based digital medical appointment
booking solution (Doc990). B: Gender
Male
Declared a first and final dividend of Rs. 2.74 per share for the year 2017/18 and an
interim dividend of Rs. 0.86 per share for the year 2018/19 during the year under review. C: Age Group
< 60 60 - 65 > 65
Approved to grant the ‘Project 2022’ building re-construction and remodeling
project construction work to Tudawe Brothers (Pvt) Ltd for a contract price of Rs. C: Board Tenure
1,145 Mn. < 3 Years 3 - 5 Years > 5 Years
Approved to enter into a shareholder’s agreement to invest in the capital of Amrak

Institute of Medical Sciences (Pvt) Ltd, a company established to provide medical
science courses for prospective students in collaboration with Astron Institute of New Directors when appointed are
International Studies (Pvt) Ltd, India. made known to shareholders via public
announcements and are also declared in
the quarterly interim releases as well as in
the Annual Report.
2.1.2 Board Composition Non-Executive Independent Directors bring
As at the date of reporting the Board in the required experience, objectivity and Directors are required to report their
comprised of eight Directors of which independent oversight to the business. business affiliations and changes to their
three served in the capacity of Non- professional responsibilities and business
Executive, Independent Directors. In During the year under review there were no associations to the Nominations Committee
keeping with the applicable rules and codes changes to the Board composition. which will examine such facts and make
the Company continues to maintain the recommendations to the Board accordingly.
right balance between Executive, Non- 2.1.3 Board Appointments
Executive and Independent Directors. The Board appointments follow a formal and a 2.1.4 Board Skills
composition of Executive, Non-Executive, structured process under the purview of the The Board brings in diverse exposure
Independent Directors brings in the right Nominations Committee. from the fields of management, business
mix of knowledge required to operate administration, medical administration,
the business sustainably. The Executive Refer Page 100 to this Annual Report for the banking, finance, economics, marketing
Directors bring in extensive knowledge of detailed Nominations Committee Report. and human resources. All Directors
the business through experience while the

Our Business
Our Leadership
Governance
Financial Reports
possess skills, expertise and knowledge Individual Directors are also encouraged to independence due to extended Board
supplemented with integrity and seek expert opinion and professional advice tenures and collectively evaluates the
independent judgement. on subject matters of which they do not re-election of such Board members. The
possess full knowledge or expertise, which Executive Directors other than the Chairman-
Full details of qualifications and experience also enables better decision making. CEO are re-elected in a manner that is similar
are provided under the Board Profile to the re-election of Non-Executive Directors.
section of this Annual Report. 2.1.5 Re-Election
All directors are subject to election by 2.1.6 Board Meetings
The Board, through a regular review of shareholders at the first Annual General 2.1.6.1 Regularity of Meetings
its competition ensures that the skills Meeting (“AGM”). One third of the Non- During the year four Board meetings were
representation is in alignment with current Executive Directors come up for a re-election held. All Board meetings are pre-scheduled.
and future needs of the Company. at every AGM. The Board discusses the Details of the Board meeting dates and the
possibility of any impairment of Directors’ Director participation at each meeting is
provided below.
Board Meeting Date
Eligible to
December
17th May
February
Attend
August
2018
2018
2018
2019
30th
06th
28th
Executive
Mr. A. E. Tudawe     4
Mr. U. D. Tudawe     4
Non-Executive, Non-Independent
Mr. S. P. Tudawe     4
Dr. A. D. P. A. Wijegoonewardene     4
Mr. Y. N. R. Piyasena     4
Non-Executive, Independent
Mr. A. S. Abeyewardene     4
Mr. Su-ayid M. Ismail     4
Mr. A. D. B. Talwatte     4
2.1.6.2 Timely Information to the Board Members of the Senior Management 2.1.6.3 Board Agenda
Directors were provided with necessary team made presentations to the Board on The Chairman-CEO ensures that all Board
information well in advance by way of Board important issues relating to strategy, risk proceedings are conducted smoothly and
papers and proposals for all four Board management, investment proposals, re- effectively, approving the agenda for each
meetings held during the year to help structuring and system procedures where meeting prepared by the Board Secretary.
extensive discussion, informed deliberations necessary. The typical Board Agenda in 2018/19 took
and effective decision making. the following form:

Confirmation of previous meeting Secretary to the Board. In addition to During the Board Meetings, Directors
minutes maintaining Board Minutes and Board who have an interest in a matter under
Records, the Board Secretary also provides discussion excuse themselves and abstain
Ratification of Circular Resolutions
advice relating to Corporate Governance from voting on the subject matter.
Matters arising from previous meeting matters, Board procedures and applicable
minutes rules and regulations. All Directors once appointed to the Board
will obtain Board clearance prior to;
Board sub-committee reports and other
2.1.6.5 Non-Executive Directors’
matters exclusive to the Board
Contribution Engaging in any transaction that could
Status updates on major projects In addition to attending to Board Meetings create or potentially create a conflict
the Directors have attended respective sub-
Review of performance – in summary Accepting a new position
committee meetings and have contributed
and in detail
to decision making via circular resolutions Any changes to their current Board
Approval of quarterly and annual and one-on-one meetings with key representation or interest.
financial statements management personnel where necessary.
The criteria on which independence of
Tabling of Compliance report
2.1.6.6 Ensuring Independence and Non-Executive Directors was reviewed is as
New resolutions Managing Conflicts of Interest given below
Directors make a general disclosure of
Any other business
interest every financial year as required.
Potential conflicts if any are reviewed by
2.1.6.4 Board Secretary
the Board from time to time to ensure the
A representative from the Company
integrity of the Board’s independence.
Secretaries Messrs. Nexia Corporate
Consultants (Pvt) Ltd functions as the
Criteria Status of Non-Executive Independent Directors
1. Employed by the Company during the period of two years None of the Independent, Non-Executive Directors are
immediately preceding appointment as Director employed or have been employed by the Company previously
2. Currently has/ had during the two years preceding appointment None of the Independent, Non-Executive Directors has/ had a
as a Director been directly or indirectly engaged in a material material business relationship with the Company
business relationship/s with the Company
3. Has a close family member who is a Director, CEO (and/or No family member of the Independent Non-Executive Directors
equivalent) position in the Company is a Director, CEO of the Company
4. Has a significant shareholding (carrying not less than 10% of the None of the Independent, Non-Executive Directors’ shareholding
voting rights) in the Company exceeds 1% of voting rights
5. Has served on the Board continuously for a period exceeding No Independent Non-Executive Director has served on the
nine years from the date of first appointment Board for more than nine years
6. Has a relationship resulting in income/ non-cash benefits The Independent Non-Executive Directors’ income/ non-cash
equivalent to 20% of the Director’s annual income benefits are less than 20% of individual Director’s income
7. Is a director or an employee of another Company in which a None of the Independent, Non-Executive Directors are Directors
majority of other directors of the Company are employed or are of another company as defined
directors or have a significant shareholding or have a material
business relationship

Our Business
Our Leadership
Governance
Financial Reports
2.1.6.7 Director Remuneration 1. Audit Committee (AC) The Board sub-committee comprises of
2.1.6.7.1 Executive Director Remuneration principally Independent Non-Executive
2. Remunerations Committee (RC)
The Remuneration Committee is Directors. The membership of the four
responsible for determining the 3. Nominations Committee (NC) Board sub-committees for the year under
compensation of the Chairman-CEO and review was as follows.
4. Related Party Transactions Review
the Executive Directors of the Company.
Committee (RPT)
Refer Page 99 to this Annual Report for the
detailed Remunerations Committee Report.
Committee Membership Board sub-committees
Executive Director Remuneration is AC RC NC RPT
a combination of fixed and variable
components. The variable component Executive
is linked to the business value growth
Mr. A. E. Tudawe – Chairman-CEO - -
based Group’s bottom line and expected
returns on shareholder funds. Further, the Mr. U. D. Tudawe – Executive Vice President - - -
Remuneration Committee consults the
Chairman-CEO regarding any proposal
relating to the Executive Director Non-Executive, Non-Independent
remuneration, other than that of the
Dr. A. D. P. A. Wijegoonewardene - - - -
Chairman-CEO.
Mr. S. P. Tudawe - - - -
2.1.6.7.2 Non-Executive Director Mr. Y. N. R. Piyasena - -
Remuneration
The compensation of Non-Executive
Directors is determined in reference to Non-Executive, Independent
the fees paid to Non-Executive Directors
of comparable companies. Non-Executive Mr. A. S. Abeyewardene
Directors were paid additional fees for Mr. Su-ayid M. Ismail
either chairing or being a member of a sub-
committee. Non-Executive Directors are not Mr. A. D. B. Talwatte
paid any performance/ incentive payments.
Committee Chairman
2.2 Board Sub-committees Committee Member
The Board has delegated some of its
functions to Board sub-committees while
In light of the above, the Company confirms The following table provides reference to
retaining final decision rights.
that it has complied with the mandatory the relevant sections of this Annual Report
disclosure requirements of Section 7.6 with specified information being disclosed
The four Board sub-committees set up in
of the Listing Rules of CSE in relation to together with page references for the
view of delegating Board functions are
the contents of the Annual Report and convenience of the reader.
listed below.
Accounts of a listed entity.

Rule No. Disclosure Requirements Section/ Reference Page(s)
7.6 (i) Names of persons who held the position of Director during the financial year “Our Leadership” section of 16
this Annual Report
7.6 (ii) Principle activities of the Company and its subsidiaries during the financial Note 1.3 of the Accounting 111
year and any changes thereon Policies
Group Structure 111

7.6 (iii) The names and the number of shares held by the 20 largest shareholders of Share Information 164
voting and non-voting shares and the percentage of such shares held as at
financial year end
7.6 (iv) The public holding percentage Share Information 163
7.6 (v) Directors’ and Chief Executive Officer’s holding in shares at the beginning and Annual Report of the Board of 94
end of the financial year Directors
7.6 (vi) Information pertaining to material and foreseeable risk factors Enterprise Risk 86
7.6 (vii) Details of material issues pertaining to employees and industrial relations Note 29 149
7.6 (viii) Extents, locations, valuations and the number of buildings on the Company’s Note 10.4 128
land holdings and investment properties as at the end of the financial year
7.6 (ix) Number of shares representing the stated capital as at the financial year-end Note 16 130
7.6 (x) A distribution schedule stipulating the number of shareholders in each class Share Information 162
of equity and the percentage of their total holdings as at the financial year-end
7.6 (xi) Ratios and market price information Share Information 163
Equity, dividend per share, dividend payout ratio, net assets value per share,
market value per share
7.6 (xii) Significant changes in the entity or its subsidiaries’ fixed assets and the market Note 10 to the Financial 126
value of land, if the value differs substantially from the book value Statements on ‘Property, Plant
and Equipment’
7.6 (xiii) Details of funds raised through public issues, rights issues and private Not applicable -
placements during the financial year
7.6 (xiv) Information in respect of Employee Share Option Schemes Not applicable -
7.6 (xv) Disclosures pertaining to Corporate Governance Practices in terms of Rules Corporate Governance 78 - 82
7.10.3, 7.10.5 (c) and 7.10.6 (c) of Section 7 of the Listing Rules
7.6 (xvi) Disclosures on Related Party Transactions exceeding 10% of the Equity or 5% Related Party Transaction 98
of the total assets of the entity as per audited financial statements, whichever Review Committee Report
is lower 149 - 153
Note 31 to the Financial
Statements

Our Business
Our Leadership
Governance
Financial Reports
The Company also confirms that it is in compliance with the Corporate Governance requirements of Section 7.10 of the Listing Rules of the
CSE and disclosure of compliance with the said rules as detailed below;
Rule No. Area Covered Requirement Compliance Details

Status
7.10.1 Non-Executive Directors Two or one third of the total number Compliant 6 out of 8 Directors are Non-
of Directors whichever is higher should Executive Directors
be Non-Executive
7.10.2(a) Independent Directors Two or one third of Non-Executive Compliant 3 out of 6 Non-Executive
Directors, whichever is higher should Directors are Independent
be Independent
7.10.2(b) Non-Executive Directors Each Non-Executive Director should Compliant All Non-Executive Directors have
submit a declaration of independence/ submitted the declaration in the
non-independence prescribed format
7.10.3(a) Disclosures relating to The names of the Directors Compliant Corporate Governance section in
Directors determined to be Independent will be this Annual Report
set out in the Annual Report
7.10.3(b) Disclosures relating to A determination has to be made by Compliant Corporate Governance section
Directors the Board as to the independence of 2.1.6.6 in this Annual Report
Non-Executive Directors
7.10.3(c) Disclosures relating to Brief resume of each independent Compliant Our Leadership section in this
Directors Director should be disclosed in the Annual Report
Annual Report
7.10.5 Remuneration Committee A listed company shall have a Compliant Board sub-committees under
Remuneration Committee Corporate Governance report in
this Annual Report
7.10.5(a) Remuneration Committee i) Remuneration committee shall Compliant The Remuneration Committee
Composition comprise of a minimum of two report under Board sub-
Independent Non-Executive committees
Directors or a majority of
independent Non-Executive
Directors whichever is higher
ii) A Non-Executive Director shall Compliant

be appointed as Chairman of the
Committee by the Board.
7.10.5(b) Remuneration Committee The Remuneration Committee shall Compliant Corporate Governance report
recommend the remuneration of section 2.1.6.7 in this Annual
the Chief Executive Officer and the Report
Executive Directors

Rule No. Area Covered Requirement Compliance Details
Status
7.10.5(c) Remuneration Committee The Annual Report shall set out:
i) Names of Directors comprising the Compliant The Remuneration Committee

Remuneration Committee report under Board sub-
committees
ii) Statement of the Remuneration Compliant
Policy
iii) Aggregate remuneration paid Compliant Page 150 to the Annual Report
to Executive and Non-Executive
Directors
7.10.6 Audit Committee A listed company shall have an Audit Compliant Audit Committee Report under
Committee Board sub-committees
7.10.6(a) Audit Committee The Audit Committee shall comprise Compliant Audit Committee Report under
of two independent Non-Executive Board sub-committees
Directors or a majority of independent
Non-Executive Directors whichever is
higher
The Chief Executive Officer and Chief Compliant

Financial Officer shall attend Audit
Committee meetings
One Non-Executive Director who is a Compliant

member of a professional accounting
body shall be appointed as Chairman
of the Audit Committee by the Board
7.10.6(b) Audit Committee Audit Committee shall have functions Compliant Audit Committee Report under
as set out in section 7.10.6 of the Board sub-committees
listing rules
7.10.6(c) Audit Committee The Annual Report shall: Audit Committee Report under
Board sub-committees
i) set out the names of Directors that Compliant
comprises the Audit Committee
ii) determine the independence of

the Auditors and disclose the basis Compliant
for such determination
iii) contain a report of the Audit

Committee setting out the manner Compliant
of its functional compliance

Our Business
Our Leadership
Governance
Financial Reports
Enterprise Risk Management
Enterprise Risk Management (“ERM”) 6. Employee related risks (“QAD”) and the independent internal audit
in healthcare comprises the clinical and team. For the purpose of managing risks on
administrative systems, processes and 7. Technological risks a routine basis a ‘Department Risk Register’
reports employed to detect, monitor, is maintained by each unit/department
assess, mitigate, and prevent risks. By 8. Hazards in conjunction with the QAD. The QAD
employing ERM, healthcare organisations in turn verifies this register on a quarterly
proactively and systematically safeguard Based on the risk areas given above, the basis to assess the implementation of the
patient safety as well as the organisation’s Company has identified the top twenty mitigation plans/control measures in place
assets, market share, accreditation, brand risks that requires focus and attention at and determine staff knowledge on the same
value and community standing. corporate level. With the identification to avoid such risks becoming an eventuality.
of the top twenty corporate risks, the In addition to the above, specific mitigation
Deployment of healthcare risk management Company has been able to formulate a mechanisms such as business continuity
has traditionally focused on the important comprehensive framework to enable risk plans, disaster recovery plans and insurance
role of patient safety and minimising management decisions that maximise to cover residual non-systematic risks are
medical errors, the loss of which could creation and protection of value, while also employed.
threaten an organisation’s ability to achieve stressing the use of technology to
its mission and decrease protection synchronise risk mitigation efforts across The impact of an event is estimated by
against financial liability. However, with the the Company. This framework has ascertaining the possible loss that would
expanding role of healthcare technologies, further assisted in the elimination of risks be incurred by the Company in the event
increased cybersecurity concerns, the fast associated with siloed departments or the risk occurs. A five-point ranking is used
pace of medical science and the industry’s business units. Additionally, data analytics to assess the gravity of risk; Catastrophic,
ever-changing regulatory, legal and political are embedded to support decision- Major, Moderate, Minor and Insignificant.
climate, healthcare risk management has making, departmental cohesiveness, risk
evolved, becoming more complex over prioritisation and resource allocation. The likelihood of occurrence is also
time. Analytics are also used as an important tool categorised in a similar manner; Rare,
for monitoring benchmarks as a means of Unlikely, Possible, Likely and Almost
To expand the role of risk management demonstrating value achieved through ERM Certain. The probability of occurrence
across the organisation, Durdans has initiatives. is assigned based on the extensive
adopted a more holistic approach which, experience the team has in the field.
while including traditional aspects of risk RISK MANAGEMENT PROCESS AT The risks are further classified on dual
management including patient safety and DURDANS parameters of the likelihood of occurrence
medical liability, has expanded to a “big The management undertakes complete and the overall impact on the business
picture” approach covering all potential responsibility in applying an effective risk using the assessment of Low, Moderate,
risks across the organisation. Therefore, management strategy within the Company. High and Extreme.
Durdans ERM encompasses eight risk The Audit Committee plays an integral
domains as follows: role in risk management and oversees the
adequacy and efficiency of internal controls
1. Patient safety/ Clinical risks across the Group through internal audit
reports and compliance statements.
2. Strategic risks
As part of its risk management, the
3. Financial risks Company adopts a risk treatment process
of mitigating, minimising, accepting
4. Regulatory/ legal compliance and and/or transferring risk. Accordingly, the
economic related risks Company has implemented operational and
management controls while establishing
5. Operational risks mitigation plans which are regularly verified
by the in-house Quality Assurance Division

Consequence
Likelihood Insignificant Minor Moderate Major Catastrophic
1 2 3 4 5
Rare 1 Low Low Low Moderate Moderate

Unlikely 2 Low Moderate Moderate High High
Possible 3 Low Moderate High High Extreme
Likely 4 Moderate High High Extreme Extreme
Almost Certain 5 Moderate High Extreme Extreme Extreme
Listed below are the key risks identified Additionally, exposure to environmental its patients. Further to the above, the CRM
within the corporate risk profile along with risk poses a challenge in the present- processes adopted by Durdans include;
their respective status and mitigating action day context. In this regard, vaccinations
plans. against infections such as Hepatitis B are Credentialing and privileging medical
administered to staff who face exposure to staff
PATIENT SAFETY AND CLINICAL RISK such diseases. Further, regular screening
The risk arising from the lack of safety tests are conducted for staff of critical care Incident monitoring and tracking
measures for patients and staff is considered units to minimise hospital-borne infections.
to be of high importance to the Company. Awareness programs are also initiated for Complaints monitoring and tracking
As such, an in-depth evaluation of such risks medical and clinical staff and healthcare
is carried out on a routine basis to map out professionals to mitigate some of the more Infection control
all potential areas of risk by clearly defining challenging issues.
the actions that should be in place. Medical record documentation/ Medical
Clinical Risk Management (“CRM”) plays a secrecy
With the international accreditation crucial role in enabling Durdans to identify,
bestowed on the ‘Durdans’ Brand, the contain, and manage risks relating to Preparedness for pandemics
connected measurable elements ensuring patient care. Managing the unexpected is
patient care is continuously monitored at an essential everyday concern in high-risk STRATEGIC RISKS
all times. With respect to this risk aspect, organisations such as hospitals. Modern
In order to achieve short and long-term
the following internal elements of risks that medicine has led to increasingly complex
strategic objectives, the Company has
could potentially hinder patient safety have forms of treatment and processes of
created an organisational structure with
been identified; care. While this has resulted in a range of
clearly defined roles and responsibilities
opportunities for improved care it has also
for every member of the Durdans team.
Procedures performed in disagreement increased the risk of adverse events and
This structure has served to leverage the
with the medical protocols patient harm. Risks associated with patient
existing functions and teams rather than
care can never be completely eliminated
create bureaucracy or overburden the
Occurrences of cross-contamination and therefore, clinical risk management
leadership with decisions and tasks that
plays a crucial role in enabling hospitals to
can be handled by the rest of the team.
Incorrect and/ or improper surgeries enhance patient safety.
Furthermore, transparent, repeatable
processes have been implemented, and
Incorrect dispensing and/ or Durdans fundamental business philosophy
where possible, existing processes are
administration of medicine revolves around the excellent medical,
used to ensure minimal disruption and
clinical and aftercare services extended to
provide clear direction and well-defined
Food poisoning

Our Business
Our Leadership
Governance
Financial Reports
Enterprise Risk Management
deliverables. Where new approaches Company. As a control measure, an internal OPERATIONAL RISK
are needed, Durdans has deployed operating procedure has been developed In any organisation, people and processes
strong change management disciplines to avoid any unauthorised credit limit inherently incur errors and contribute
to optimise workforce involvement and being entered into the operating system towards ineffective operations. In evaluating
acceptance. Further appropriate risk without the knowledge and approval of the operational risks, practical remedial steps
metrics are determined for meaningful management of the Company. are required to eliminate the exposure and
reporting formats, establishing a process to ensure successful responses. In light of
for monitoring risk metrics to make sure REGULATORY AND LEGAL the above, an annual review of operational
information is relevant, reliable and COMPLIANCE RELATED RISKS risks is carried out by an external risk
provided on a regular basis. The Company The regulatory environment continues to management organisation and the outcome
has also developed and implemented pose a degree of uncertainty resulting in thereof is reported to the Board of Directors
the tools and templates needed to the hospital being challenged in its efforts for their information and for appropriate
efficiently standardise and sustain the to define medium and long-term strategies. action where necessary. A number of
risk management process, emphasising As a migratory measure Durdans has operational risk mitigation measures carried
practicality and cost/ benefit optimisation. resorted to implementing structures which out by Durdans is listed below;
are robust and effective while being flexible
FINANCIAL RISKS and acceptable to changes within the legal Backup arrangements for utility services
The Company’s continuous drive to invest framework and business requirements. and critical medical equipment
in advanced technology requires seeking Durdans also participates in various industry
and obtaining the necessary finance for forums for greater awareness, while Periodic review and calibrations of
investments. Being mindful of the gearing enlisting the support of decision makers to medical equipment by the Bio-Medical
level of the entity, the Company ensures obtain greater clarity and ensure increased engineering team to ensure expected
it manages its borrowings with due care. consistency with respect to government performance
It ensures that financial obligations are policies and initiatives.
settled in a timely manner. Further, the Backup arrangements for data and IT
management exhibits the utmost diligence ECONOMIC RISKS system security
in monitoring market fluctuations in relation The Company operates in a dynamic
to interest rates with the objective of environment where various economic Effective supply chain management
obtaining the best returns for the Company. factors can potentially impact the business coupled with rigorous stock
and its operations. management procedures to avoid stock
The liquidity position of the company is outs, eliminate wastage and pilferage
monitored very closely, and cash flows are With healthcare being an essential service, as well as minimise the value of expired
managed on a daily basis with extreme care. Durdans is insulated against economic stocks
Any investment opportunity is supported shocks to a certain extent in comparison
by a feasibility study to guarantee an to other industries. However, the Company An HRM framework with clear
acceptable Return on Investment (ROI). has been adept in identifying potential policies and procedures for selection,
risks that could impact its business plan recruitment, training and development
With corporate customers and insurance and generate proactive steps to mitigate
companies comprising a significant portion the same. The Company follows a detailed Damage to reputation causes irreparable
of the business debt portfolio, receivables management review process enabling loss to a brand and brand image. Hence
are closely monitored to reduce the risk the team to take prompt action to reverse safeguarding the organisation’s reputation
arising from grant of credit. In order to any negative impact urgently. With the by following guidelines to handle consumer
strengthen the process of granting credit collective experience of the team, changes grievances has always been a key area of
to corporates the Company adopts a credit are anticipated effectively, and the adverse focus for the Company. The Durdans team
evaluation process where credit limits impact minimised. places a great degree of emphasis on
and credit periods are granted by the ensuring every experience is a memorable
Executive Management Committee of the one for each patron at every service

touchpoint. Constant improvements INFORMATION TECHNOLOGY AND
to an already well-established system INFORMATION MANAGEMENT
of operations is undertaken by the RELATED RISK
management on a daily basis, taking into Daily operations at Durdans are managed
account the feedback received from all using a fully-fledged ERP system which
stakeholders to ensure an improved service. was developed in-house. The security of
information and the uninterrupted service
EMPLOYEE RELATED RISKS of its systems are of utmost importance for
The Company continues to value its the continued operations of the Company.
people as the most important asset of the The loss of data due to technical failure,
organisation considering it is they who system downtimes, threat of viruses and
translate corporate vision into reality by data security are some of the key concerns
delivering high levels of care to its patrons. the Company has identified, and steps have
Every employee epitomises the values been taken to minimise all possible risks
of the Company while at work, as well as arising from the aforementioned threats.
outside of working hours.
The system currently runs on a high
Unlike a few years ago, the private availability solution powered by a VMware
healthcare sector today is a dynamic one, platform to maintain zero downtime.
which makes it necessary to constantly Security has been improved on the servers
enhance the people agenda in a manner through VLAN and firewalls, combined with
beneficial to employees and the Company. real time monitoring and alerting systems
Hence Durdans is constantly addressing against intrusions and suspicious activity.
the needs of its staff members and taking During the financial year the Company
steps to motivate employee engagement completed the installation of a ‘cloud
through a performance-driven culture. In backup solution’ to further minimise the loss
doing so, every team member is made to of valuable data.
understand how his/her role delivers value
and contributes towards the organisation’s Patient data is managed confidentially with
performance, thereby enhancing their the creation of high security zones within
commitment to uphold the best standards the network, only accessible to designated
of service delivery. personnel. The Company has also taken
measures to install firewalls to protect data
In the past, Durdans took steps to against unauthorised access, in addition
transform its organisational culture and to implementing measures for DLP (Data
create a cohesive team environment. Leakage Prevention) and real-time threat
Continuous efforts were taken to improve monitoring alerts. Durdans has migrated to
communication among management, staff, a Microsoft cloud platform with improved
team leaders and units to disseminate security to enhance productivity and
information across the organisation in a provide mobility. All external laboratories
more effective and efficient manner. Results are connected to the main hospital using
of the annual employee satisfaction survey a state-of-the-art IP-VPN with enhanced
carried out by the Human Resources security and reduced redundancy.
Department were collated carefully and
corrective action taken to improve and to
address employee concerns.

“During the year, we continued to utilise
our financial capital to create and distribute
sustainable value for our shareholders, employees,
financiers and the government.”
FINANCIAL REPORTS
Annual Report of the Board of Directors on the Affairs of the Company 92
Report of the Related Party Transactions Review Committee (RPTRC) 98
Report of the Nominations Committee 100
Audit Committee Report 101
Independent Auditor’s Report 103
Consolidated Statement of Profit or Loss and Other Comprehensive Income 106
Consolidated Statement of Financial Position 107
Statement of Changes in Equity 108
Statement of Cash Flows 110
Notes to the Financial Statements 111
Our Business
Our Leadership
Governance
Financial Reports
Annual Report of the Board of Directors

on the Affairs of the Company
GENERAL the future demand for healthcare will be 6. RESULTS AND DIVIDENDS
The Directors have pleasure in presenting focused towards shorter hospital stays 6.1 Gross Revenue
their report and the audited financial resulting from advanced technological The total revenue of the Group for the year
statements of the Company and the Group factors. On completion of the proposed ended 31st March 2019 was Rs. 5.8 Bn (2018
for the year ended 31st March 2019 and project the hospital will have a purpose- - Rs. 5.7 Bn). An analysis of the income is
the auditor’s report on the Consolidated built state-of-the-art facility having given in Note 3 to the Financial Statements
Financial Statements. economical ward beds dedicated for males on Page 123 to this Annual Report.
and females in addition to the standard
This report provides the information as rooms. 6.2 Profit and Appropriations
required by the Companies Act No. 07 of The profit before income tax of the Group
2007, the Listing Rules of the Colombo Further information on future developments for the year ended 31st March 2019 was Rs.
Stock Exchange and recommended best is provided in the Chairman’s Review of this 549 Mn (2017/18 - Rs. 603 Mn) and the profit
practices on Corporate Governance. This report. after tax for the year ended 31st March 2019
report was approved by the Board of was Rs. 376 Mn (2017/18 – Rs. 488 Mn). The
Directors on 09th May 2019. 3. FINANCIAL STATEMENTS OF THE details of the Group profits are given on
COMPANY AND THE GROUP Page 106 to this report.
1. PRINCIPAL ACTIVITIES AND The Financial Statements of both the
BUSINESS REVIEW Company and the Group duly certified by 6.3 Dividend on Ordinary Shares
Ceylon Hospitals PLC is the holding the Chief Financial Officer and approved by A first interim dividend of Rs. 0.86 per
company of Durdans Heart Centre (Pvt) Ltd two directors in compliance with Sections ordinary share for the year ended 31st
and Durdans Medical and Surgical Hospital 152, 153 and 168 of the Companies Act No. March 2019 was paid in the month of
(Pvt) Ltd constituting the Durdans Hospitals 07 of 2007 are given from Pages 106 to 159 June 2018. The Board has recommended
Group. of the Annual Report. a second interim dividend of Rs. 3.60 per
share for the year ended 31st March 2019 to
The Chairman’s Review and Performance 4. AUDITORS REPORT be paid in May 2019. No further dividends
and Capital Management sections are The Company’s external auditors, Messrs. have been recommended.
incorporated into this report by reference. B. R. De Silva & Co. Chartered Accountants
They contain details of development and performed the audit on the financial Prior to recommending the dividend, in
performance of the Group’s businesses statements for the year ended 31st March accordance with Section 56 (2) and (3) of
during the year, an indication of the key 2019. The Auditor’s report on the Financial the Companies Act No. 07 of 2007, the
performance indicators and information Statements is given on Pages 103 to 105 of Board of Directors signed a certificate
regarding principal risks and uncertainties the Annual Report as required by Section stating that, in their opinion, based on the
together with information equivalent to that 168 (I) (c) of the Statutes. available information, the Company will
required for a business review. satisfy the solvency test immediately after
5. ACCOUNTING POLICIES the distribution is made. The Company has
The measures taken by the Company to obtained a certificate from the Auditors
A summary of the significant accounting
manage its risks are detailed in the report for the said solvency statement in terms of
policies adopted in the preparation of the
titled Enterprise Risk Management on Page Section 57 of the Companies Act.
Financial Statements is given from Pages
86 of this report. 111 to 122 of the Annual Report as required
6.4 Provision for Taxation
by Section 168 (I) (d) of the Companies
2. FUTURE DEVELOPMENTS Income tax for 2018/19 has been provided
Act No. 07 of 2007. The policies adopted
on taxable income arising from the
The Group will embark on a five-year are consistent with those adopted in the
operations of the Group and has been
construction project to remodel and rebuild previous financial year.
disclosed in accordance with Sri Lanka
its existing older buildings to suit the
Accounting Standards. The Group has
requirements of the customers who will
also provided deferred tax on all known
patronise the hospital in years to come.
temporary differences using the liability
It is the belief of the management that
method as permitted by the Sri Lanka
Accounting Standard (LKAS 12) on
Income Tax.

Information on income tax expenses and the directors are given in the ‘Board of March 2019 and the names of the persons
deferred taxes is given in the notes to the Directors’ section from Pages 16 to 19 of who ceased to hold office as Directors of
Financial Statements on Page 125 to this this Annual Report. the Company at any time during the year
Annual Report. 2018/19, as required by Section 168 (1) (h) of
Names of the persons who held office the Companies Act No. 07 of 2007 are given
6.5 Reserves as Directors of the Company as at 31st below.
The Group’s total reserves as at 31st March
2019 amounted to Rs. 4.23 Bn (2017/18 – Rs.
4.09 Bn). The movement of the reserves Mr. A. E. Tudawe Chairman - Executive Director
are given on Page 108 under ‘Statement of
Changes in Equity’ and in the notes to the Mr. U. D. Tudawe Executive Director
Financial Statements of this Annual Report. Mr. S. P. Tudawe Non-Executive Director
6.6 Property Plant and Equipment, Dr. A. D. P. A. Wijegoonewardene Non-Executive Director

Investments Properties, Leasehold Mr. Y. N. R. Piyasena Non-Executive Director
Properties and Intangible Assets
Details of capital expenditure incurred on Mr. A. S. Abeyewardene Independent, Non-Executive Director
property, plant and equipment are given in Mr. Su-ayid M. Ismail Independent, Non-Executive Director
the Notes to the Financial Statements from
Pages 126 to 128. Mr. A. D. B. Talwatte Independent, Non-Executive Director
7. CREDITORS 8.2 Independence of Directors 8.4 Recommendation for re-election

For all trade creditors, it is the Group policy The Board has made a determination as to Dr. A. D. P. A. Wijegoonewardene,
to: the independence of each non-executive Mr. Y. N. R. Piyasena and Mr. A. S.
director and confirms that three of the Abeyewardene shall vacate their office as
Agree and confirm the terms of non-executive directors meet the criteria per the requirements of Section 210 of the
payment at the commencement of of independence in terms of Rule 7.10.4 of Companies Act No. 07 of 2007 and three
business with that supplier Listing Rules. separate resolutions will be tabled at the
forthcoming Annual General Meeting to
Pay in accordance with any contract Each of the independent directors has obtain the sanction of the shareholders to
agreed with the supplier or as submitted a signed and dated declaration re-appoint them as Directors to the Board
required by law, and of his independence against the specified as per Section 211 of the Companies Act.
criteria.
Continually review payment 8.5 Disclosure of Directors Dealings in
procedures and liaise with suppliers Mr. S. P. Tudawe and Dr. A. D. P. A. Shares
as a means of eliminating difficulties Wijegoonewardene play a consultative role Directors’ Interest in Ordinary Shares of the
and maintaining good working in the Group Management Committee. Company were as follows:
relationships
8.3 Re-election of Directors
8. DIRECTORS In Accordance with the Articles of
8.1 List of Directors Association of the Company and the
The Board of Directors of the Company Corporate Governance Code Mr. A. D. B.
as at the date of this report comprise of Talwatte will retire by rotation at the Annual
eight, having extensive medical, financial General Meeting in June 2019 and being
and commercial knowledge and expertise. eligible, will offer himself for re-election with
The qualifications and experience of the unanimous consent of the Directors.

Our Business
Our Leadership
Governance
Financial Reports
Annual Report of the Board of Directors on the Affairs of the Company
31st March 2019 31st March 2018

Number of Shares Number of Shares
Voting Non-Voting Voting Non-Voting
Mr. A. E. Tudawe 205,052 - 205,052 -

Dr. A. D. P. A. Wijegoonewardene 199,462 - 199,462 -
Mr. S. P. Tudawe 307,936 - 307,936 -
Mr. U. D. Tudawe 170,616 - 170,616 -
Mr. Y. N. R. Piyasena 553,134 - 553,134 -
Mr. A. S. Abeyewardene 1,440 1,200 1,440 1,200
Mr. Su-ayid. M. Ismail 100 - 100 -
Mr. A. D. B. Talwatte 1,000 - 1,000 -
8.6 Remuneration and Other Benefits party transactions carried out by the 11. SHARE INFORMATION
Directors’ remuneration and other benefits, Company and its subsidiaries adopting Details of share-related information are
in respect of the Company for the financial the Code of Best Practice on Related Party given on Page 162 to this Annual Report
year ended 31st March 2019 is given in Transactions as issued by the Securities and and information relating to earnings,
Note 31.5.1 to the Financial Statements on Exchange Commission of Sri Lanka (SEC). dividends and net assets per share is
Page 150 of this Annual Report as required given in the Performance and Capital
by Section 168 (1) (f) of the Companies Act 9. ARTICLES OF ASSOCIATION Management section on Pages 46 to 48 of
No. 07 of 2007. The Articles of Association of the Company this Annual Report.
may be amended by passing of a special
8.7 Directors’ interests in Contracts or resolution. 12. PUBLIC HOLDING OF SHARES IN
Proposed Contracts THE COMPANY
Directors have no direct or indirect interest 10. STATED CAPITAL The public shareholding as at 31st March
in any contract or proposed contract with
The stated capital of the Company as at 2019 for voting and non-voting shares was
the Company for the year ended 31st March
31st March 2019 was Rs. 916 Mn comprising 23.30% and 78.6% respectively.
2019 other than those disclosed on Page
25,527,272 voting and 8,345,454 non-voting
152 of this Annual Report.
ordinary shares. (2017/18 – Rs. 916 Mn 13. SUBSTANTIAL SHAREHOLDING
comprising 25,527,272 voting shares and Substantial shareholders are required to
The Directors have declared all material
8,345,454 non-voting shares). Details of the notify their interests in accordance with
interests in contracts involving the Company
stated capital are given in Note 16 to the Section 200 of the Companies Act No. 07 of
and refrained from voting on matters in
Financial Statements on Page 130 to the 2007. They are also obliged to comply with
which they were materially interested. They
Annual Report. The rights and obligations the notification obligations to the Company
have also disclosed their interest in other
attached to the ordinary shares are set as contained in the rules of the Colombo
companies so as to ensure that they refrain
out in the Articles of Association of the Stock Exchange.
from voting on a matter in which they have
Company a copy of which can be obtained
an interest.
from the Secretaries upon request. The Twenty Largest Shareholders of
8.8 Related Party Transaction the Company as at 31st March 2019 are
The Board formed a Related Party indicated on Pages 164 to 165 of this
Transactions Review Committee in 2016 Annual Report.
to assist the Board in reviewing all related

14. EQUITABLE TREATMENT TO Governance Code, the Directors have a and successful adherence therewith for
SHAREHOLDERS reasonable expectation that the Company the period up to the date of signing the
The Company has at all times ensured that possesses adequate resources to continue Financial Statements.
all Shareholders are treated equitably. in operation for the foreseeable future.
For this reason, the Group of Companies 20.3 Audit Committee
15. CORPORATE DONATIONS continues to adopt the going concern basis The composition of the Audit Committee
in preparing the financial statements. and their Report is given on Page 101 of this
During the year, the Company made
Annual Report.
donations to charity amounting to Rs.
Details of the adoption by the Group
738,865 (2017/18 - Rs. 737,524). The
and the Company of the going concern 21. CORPORATE GOVERNANCE
information given above on donations form
basis in preparing the financial statements The Corporate Governance practices of
an integral part of the Report of the Board
are set out in the financial review within the Company are set out from Pages 78
of Directors as required by the Section 168
the business review section and are to 85 of this Annual Report. The Directors
(1) (g) of the Companies Act No. 07 of 2007.
incorporated into this report by reference. acknowledge their responsibility for the
16. ENVIRONMENTAL PROTECTION Group’s corporate governance and the
20. RISK MANAGEMENT AND system of internal control.
The Group and the Company have not, to SYSTEM OF INTERNAL CONTROL
the best of their knowledge engaged in
20.1 Risk Management 22. OPERATIONAL EXCELLENCE
any activity, which was detrimental to the
Specific steps that have been taken by the To increase efficiency and reduce operating
environment.
Company are detailed on Pages 86 to 89 to cost the Company has ongoing initiatives
this Annual Report. to drive policy and process standardisation
17. STATUTORY PAYMENTS
and to optimise the use of existing
The Directors, to the best of their 20.2 System of Internal Control technological platforms.
knowledge and belief are satisfied that all The Board of Directors has established
statutory payments due to the Government an effective and comprehensive system 23. APPOINTMENT OF AUDITORS
and in relation to employees have been of Internal Controls to ensure that proper
made to date. The Financial Statements for the year
controls are in place to safeguard the
have been audited by Messrs. B. R. De
assets of the Company, to detect and
18. EVENTS AFTER THE REPORTING Silva & Co. Chartered Accountants, who
prevent fraud and irregularities, to ensure
PERIOD offer themselves for re-appointment. A
that proper records are maintained, and
resolution to re-appoint them as Auditors
There have been no material events Financial Statements presented are reliable.
and authorise the Directors to fix their
occurring after the Balance Sheet date that Management Accounts are prepared
remuneration will be proposed at the
would require adjustments to or disclosure monthly to provide the management with
Annual General Meeting.
in the Financial Statements other than relevant, reliable and up-to-date Financial
as disclosed in Note 28 to the Financial Statements and key performance indicators.
24. AUDITOR’S REMUNERATION
Statements on Page 149 to this Annual
AND INTEREST IN CONTRACTS
Report. The Audit Committee reviews on a regular
WITH THE COMPANY
basis, the reports, policies and procedures
19. GOING CONCERN to ensure that a comprehensive internal The Group audit fees paid for the year
control framework is in place. More details 2018/19 amounted to Rs. 1.9 Mn. Apart
The Board of Directors has reviewed the
in this regard can be seen on Page 101 of from that, the Company has engaged
Company’s business plans and is satisfied
this Annual Report. Messrs. B. R. De Silva & Co. Chartered
that the Company has adequate resources
Accountants, the external auditors to advice
to continue its operation in the foreseeable
The Board has conducted a review of on accounting matters for the year under
future. After considering the financial
the internal controls covering financial, consideration. As far as the Directors are
position, operating conditions, regulatory
operational and compliance controls aware, the Auditors do not have any other
and other factors and such other matters
and risk management and have obtained relationship or interest in contracts with the
required to be addressed in the Corporate
reasonable assurance of their effectiveness Company.

Our Business
Our Leadership
Governance
Financial Reports
Annual Report of the Board of Directors on the Affairs of the Company
25. ANNUAL GENERAL MEETING

The 73rd Annual General Meeting of the
Company will be held at the ‘Auditorium’
on 11th Floor, Durdans Hospital, No. 03,
Alfred Place, Colombo 03 at 9.00 a.m. on
Thursday 27th June 2019.
26. NOTICE OF MEETING

Details of the Annual General Meeting are
given in the Notice of Meeting.
27. ACKNOWLEDGEMENT OF THE

CONTENTS OF THE REPORT
As required by Section 168 (1) (k) of the
Companies Act No. 07 of 2007 the Board of
Directors hereby acknowledge the contents
of this Report.
For and on behalf of the Board,
A. E. Tudawe
Chairman
U. D. Tudawe
Director
09th May 2019

Statement of Directors’ Responsibility
The following statement which should towards the establishment of appropriate

be read in conjunction with the Auditor’s internal control systems with a view to
statement of responsibilities has been made detecting and preventing frauds and other
with a view to distinguish between the irregularities.
respective responsibilities of the Directors
and the Auditors in relation to the financial COMPLIANCE REPORT
statements. The Directors confirm to the best of their
knowledge that all taxes, duties and
Section 150, 152 (1) and 153 (1) of the levies payable by the Company and its
Companies Act No. 07 of 2007 require subsidiaries, all contributions, levies and
that the Directors prepare the financial taxes payable on behalf of and in respect
statements and circulate it among the of the employees of the Company and
shareholders. These financial statements its subsidiaries, all other known statutory
comprise a Statement of Comprehensive dues which were due and payable by the
Income, which presents a true and fair view Company and its subsidiaries as at the
of the profit or loss of the Company for reporting date have been paid or where
its financial year as well as a Statement of relevant provided for in arriving at the
Financial Position, which presents a true financial results for the year under review.
and fair view of the state of affairs of the
Company as at the end of its financial year. By Order of the Board
As the Directors are satisfied that the

Company has adequate resources to
continue in business for the foreseeable
future, the financial statements continue to
be prepared on a ‘going concern’ basis. Nexia Corporate Consultants (Pvt) Ltd
Secretaries
In preparing the Financial Statements
as disclosed on Pages 106 to 159, the 09th May 2019
Directors consider that the Company and
its subsidiaries have used appropriate
accounting policies that have been applied
consistently and supported by reasonable
and prudent judgment and estimates, while
all accounting standards considered to be
applicable and relevant have been followed.
The Directors are responsible for ensuring

that the Company and its subsidiaries
maintain accounting records which
disclose with reasonable accuracy, the
financial position of the Company and
its subsidiaries while complying with the
provisions of the Companies Act No. 07 of
2007.
The Directors have a general responsibility

to take reasonable steps in safeguarding
the assets of the Company and its
subsidiaries, provide proper consideration

Our Business
Our Leadership
Governance
Financial Reports
Report of the Related Party Transactions Review

Committee (RPTRC)
OBJECTIVE Mr. A. D. B. Talwatte approved by the Board on the identification
The objective of the Committee is to Non-Executive Independent Director and recommendation of such transactions
exercise oversight on behalf of the Board by the RPTRC.
of Ceylon Hospitals PLC and its subsidiaries CONDUCT OF MEETINGS
that all Related Party Transactions (“RPT”) The Committee meets at least once every The RPTRC was satisfied that there were
are in compliance with Section 9 of the quarter. no other transactions to be reported in
listing rules of the Colombo Stock Exchange the Annual Report for the year ended 31st
(“CSE”), the Code of Best Practices on During the financial year ended 31st March March 2019 other than those disclosed in
Related Party Transactions issued by the 2019 the Committee held five meetings. the report under the Financial Statements
Securities Exchange Commission of Sri The meeting attendance was as follows Note 31. RPT disclosures are made in the
Lanka. Financial Statements as required by the
Sri Lanka Accounting Standard (LKAS 24)
RESPONSIBILITY Name of the Director Attendance on Related Party Disclosures.
The responsibility of the Committee is to Mr. A. S. Abeyewardene 5/5
ensure that the interests of the shareholders
are collectively considered by the Company Mr. Su-ayid M. Ismail 4/5
when entering into an RPT and fairness and Mr. Y. N. R. Piyasena 5/5
transparency is maintained at all times.
Mr. A. D. B. Talwatte 5/5 A. S. Abeyewardene
Chairman - Related Party Transactions
Considering the foregoing the Committee
At the quarterly RPTRC meeting, all Review Committee
conducts its meetings in compliance with
the policy guidelines developed for the recurrent transactions carried out with
subsidiaries, associates and affiliates 07th May 2019
Company in this respect which is in line with
Section 9 of the listing rules of the CSE. are reported. As per the set Terms of
The RPTRC policy guideline is in consistent Reference, the Committee also reviewed
to the operating model and the delegated and pre-approved all proposed non-
decision-making rights of the Ceylon recurrent RPTs of the Company where such
Hospitals Group. transactions were to be executed or was
already executed and required evaluation
As per the policy the RPTRC has identified by the Committee. Mechanisms are in place
the RPTs’ in terms of institutions as well as for the KMP to declare RPTs if any that they
individuals. Under individuals, in addition to are connected with as per the Company
Directors, all Senior Management personnel RPT policy guidelines.
of the Company have been identified as
Key Management Personnel (“KMP”) to DURING THE YEAR ACTIVITIES
increase transparency and enhance good The activities and the views of the
governance. committee has been communicated to the
Board on a quarterly basis through verbal
MEMBERSHIP briefings and by tabling minutes of the
The Committee comprise of four Non- Committee’s meetings along with the detail
Executive Directors as given below reports of RPTs carried out with subsidiaries,
associates and affiliates of the Company.
Mr. A. S. Abeyewardene
Chairman, Non-Executive Independent There were no RPTs where KMPs were
Director involved requiring declaration to the RPTRC
during the year under concern.
Mr. Su-ayid M. Ismail
Non-Executive Independent Director
During the year, RPTRC disclosed such
Mr. Y. N. R. Piyasena matters requiring immediate disclosure
Non-Executive Director to CSE no sooner such transaction was

Report of the Remuneration Committee
SCOPE OF THE COMMITTEE to review and approve the The quorum of the committee shall be at
Scope of the Committee is to review and compensation payable to executive least two members.
recommend overall remuneration policy directors and senior management in
and performance-based pay plans for connection with any loss or termination The Committee held two meetings during
the Company and agree with the Board a of their office or appointment to ensure the financial year ended 31st March 2019.
framework to remunerate the Chairman- that such compensation is determined The Chairman of the Committee reports on
CEO and Executive Director/s based on in accordance with relevant contractual the developments which have taken place
performance targets, benchmark principles, terms and that such compensation is since the last Board meeting, if any, and
performance-related pay schemes, otherwise fair and not excessive for the updates the Board on various matters, as
industry trends and past remuneration and Company. relevant and requested.
succession planning of Key Management
Personnel. to review and approve compensation The Aggregate remuneration paid to
arrangements relating to dismissal or Executive and Non-Executive Directors
Determining compensation of Non- removal of directors for misconduct as required by the Section 7.10.5 (c) to
Executive Directors is not under the scope to ensure that they are consistent with the Listing Rules of the Colombo Stock
of this Committee. contractual terms and are otherwise Exchange is given in Note 31.5.1 to the
reasonable and appropriate. Financial Statements.
REMUNERATION POLICY
to ensure that no director or any of his The Committee wishes to report that the
The remuneration policy is designed to
associates is involved in deciding his Company has complied with the provisions
reward, motivate and retain the Company’s
own remuneration. of the Companies Act No. 07 of 2007 in
executive team with market competitive
relation to remuneration of Directors. The
remuneration and benefits to support the
to consult the Chairman-CEO about annual management performance appraisal
creation of shareholder value. Accordingly,
remuneration proposals for other scheme, the calculation of short-term
salaries and other benefits are reviewed
executive directors. incentives was executed in accordance with
periodically taking into account the
the approvals given by the Board, based on
performance of the individuals and industry
The Remuneration Committee will access discussions conducted by the Committee.
standards.
independent professionals for advice if
necessary, to consider salaries paid by
The responsibilities of the Remuneration
comparable companies, time commitment,
Committee are;
responsibilities and employment conditions
in the Group (which comprises the
to make recommendations to the
Company and its subsidiaries). A. S. Abeyewardene
Board on the Company’s policy and
Chairman - Remuneration Committee
structure for all directors’ and senior
COMPOSITION OF THE COMMITTEE
management’s remuneration and on
AND MEETINGS 07th May 2019
the establishment of a formal and
transparent procedure for developing The Remuneration Committee comprise of
remuneration policy. the following Directors:
to review and approve the Mr. A. S. Abeyewardene

management’s remuneration proposals Chairman (Non-Executive/ Independent
with reference to the Board’s corporate Director)
goals and objectives. Mr. Su-ayid M. Ismail
Member (Non-Executive/ Independent
to make recommendations to the Director)
Board on the remuneration packages Mr. A. D. B. Talwatte
of all executive directors and senior Member (Non-Executive/ Independent
management, including benefits in Director)
kind and compensation payments,
Mr. A. E. Tudawe
including any compensation payable
Member (Chairman-CEO)
for loss or termination of their office or
appointment.

Our Business
Our Leadership
Governance
Financial Reports
Report of the Nominations Committee
TERMS OF REFERENCE To make recommendations on any other MEETINGS AND ATTENDANCE

The Terms of Reference clearly states the matters referred to the Committee by During the year the Committee met once
purpose of establishing the Committee, its the Board of Directors. and all members were present for same. All
composition, authority and conduct and proceedings of the Committee meetings
scheduling of meetings. The Committee has acted within the are reported to the Board of Directors.
parameters set by its terms of reference.
The Board Nomination Committee was The Committee continued to work closely
established by the Board to ensure Board’s with the Board of Directors on matters
oversight and control over “Selection of assigned to the Committee and reported
Directors and Key Management Personnel”. back to the Board of Directors with its A. S. Abeyewardene
recommendations. Chairman - Nominations Committee
AUTHORITY OF THE COMMITTEE
COMPOSITION OF THE COMMITTEE 07th May 2019
The Committee has the authority to discuss
issues under its purview and report back The Nomination Committee consists of
to the Board with recommendations, following members whose profiles are given
enabling the Board to take a final decision on Page 16 to this Annual Report.
on the matter. The Members of the
Committee have the authority to express Mr. A. S. Abeyewardene
their independent views when making Chairman (Non-Executive, Independent
decisions. The Committee regularly Director)
reviews the structure, size, composition Mr. A. D. B. Talwatte
and competencies of the Board and makes Member (Non-Executive, Independent
recommendations to the Board with Director)
regard to any changes. If a need arises, Mr. Su-ayid M. Ismail
professionals from outside may be invited Member (Non-Executive, Independent
for advice on specific issues. Director)
Mr. A. E. Tudawe
DUTIES OF THE COMMITTEE
Member (Chairman-CEO)
The duties of the Committee include inter-
Mr. U. D. Tudawe
alia the following:
Member (Executive Vice President,
Director)
To implement a procedure to select/
appoint new Directors including
The Committee is chaired by an
Chairman-Chief Executive Officer.
Independent Director who has experience
in the relevant subject and constitutes
Evaluate the independence of the Non-
Executive and Non-Executive, Independent
Executive Directors and effectiveness of
Directors from the Board to ensure that
the Board of Directors.
the responsibilities of the Committee are
discharged effectively.
Review the process for succession
planning to ensure that the Board has
To hold a meeting there shall be a quorum
the correct balance of individuals to
of three members of the Committee who
discharge its duties effectively.
are Non-Executive Directors of whom at
least one should be independent.
To consider and recommend from time
to time, the requirements of additional/
new expertise and the succession
arrangements for retiring Directors.

Audit Committee Report
ROLE OF THE COMMITTEE Attendance of the Committee members is work was being undertaken to enable the
The Audit Committee assists the Board in given below; Company and the Group to adopt them.
fulfilling its responsibilities in relation to
the integrity of the financial statements of Internal Audit, Risks and Controls
Name of the Director Attendance
the Company and the Group, the internal The Committee reviewed the adequacy of
control and risk management systems of Mr. A. S. Abeyewardene 5/5 the Internal Audit coverage for the Group
the Group and its compliance with legal and the Internal Audit Plans for the Group
Mr. Y. N. R. Piyasena 5/5 with the Chairman-CEO and the Senior
and regulatory requirements, the External
Auditors’ performance, qualifications and Mr. Su-ayid M. Ismail 5/5 Management team. The Internal Auditors
independence, and the adequacy and regularly reported to the Committee on
Mr. A. D. B. Talwatte 5/5 the adequacy and effectiveness of internal
performance of the Internal Audit function.
controls in the Group, and compliance with
The Chairman-CEO, the Chief Financial laws and regulations and established policies
The scope and responsibilities of the
Officer and the External Auditors and and procedures of the Group. Reports from
Committee are adequately set out in the
Internal Auditors attended a majority the Internal Auditors on the operations of
terms of reference of the Committee, which
of these meetings by invitation. Other the Company and its subsidiaries were also
is approved by the Board and reviewed
Senior Management team members of the reviewed by the Committee. Follow-up
annually. The Committee’s responsibilities
Company also attended these meetings on action taken on the recommendations of the
relate to the Group as a whole, and
a need-only basis. Internal Auditors and any other significant
in discharging its responsibilities the
Committee places reliance on the work follow-up matters are documented and
The activities and views of the Committee presented to the Committee as an update
carried out by internal and external auditors
was communicated to the Board of to the matters arising from previous meeting
to the Company and its subsidiaries. An
Directors quarterly through verbal briefings. minutes every quarter.
interactive forum with the participation of
members of the Audit Committee and the
Senior Management team is also held to FINANCIAL REPORTING External Audit
discuss ways and means of improvement, The Audit Committee has reviewed and The External Auditors’ Letter of
and exchange information on best practices discussed the Group’s quarterly and annual Engagement, including the scope of
in effective internal controls. financial statements prior to publication, the audit, was reviewed and discussed
with the support of the management and by the Committee with the External
COMPOSITION OF THE COMMITTEE External Auditors. The review included Auditors and the management prior to the
AND MEETINGS ascertaining compliance of same with commencement of the audit. The External
the Sri Lanka Accounting Standards, the Auditors kept the Committee advised
The Committee comprises the following
appropriateness and changes in accounting regarding matters of significance that were
Non-Executive Directors;
policies and material judgemental matters. pending resolution. Before the conclusion
of the Audit, the Committee met with the
Mr. A. S. Abeyewardene
The Committee also discussed with the External Auditors and management to
Chairman (Non-Executive/ Independent)
External Auditors and management any discuss all audit issues and to agree on their
Mr. Y. N. R. Piyasena matters communicated to the Committee treatment. This included the discussion of
Member (Non-Executive) by the External Auditors in their reports to formal reports from the External Auditors to
Mr. Su-ayid M. Ismail the Committee on the audit for the year. the Committee. The Committee also met the
Member (Non-Executive/ Independent) The External Auditors were also engaged External Auditors prior to the finalisation of
Mr. A. D. B. Talwatte to conduct a limited review of the Group’s the financial statements in order to obtain
Member (Non-Executive/ Independent) interim financial statements for the nine their input on specific issues and to ascertain
months ended 31st December 2018. The whether they had any areas of concern
Committee obtained independent input relating to their work. The External Auditors’
Profiles of the Committee Chairman and
from the External Auditors on the impact of final management reports on the audit of the
the Members are given on Page 16 to this
several new Sri Lanka Accounting Standards Company and Group financial statements
Annual Report.
that would come into effect in the current for the year 2018/19 were discussed with the
financial year and in the future and satisfied management and the auditors.
The Committee held five meetings during
themselves that the necessary preparatory
the financial year ended 31st March 2019.

Our Business
Our Leadership
Governance
Financial Reports
Audit Committee Report
The Committee was satisfied that the

independence of the External Auditors has
not been impaired by any event or service
that gives rise to a conflict of interest. Due
consideration was given to the nature of the
services provided by the Auditors and the
level of audit and non-audit fees received
by the Auditors from the Group. The
Committee also reviewed the arrangements
made by the Auditors to maintain their
independence and confirmation was
obtained from the Auditors on their
compliance with the independence
guidance given in the Code of Ethics of the
Institute of Chartered Accountants of Sri
Lanka.
The performance of the External Auditors

has been evaluated and discussed with
the Senior Management of the Company
and the Committee has recommended to
the Board that Messrs. B. R. De Silva & Co.
Chartered Accountants be re-appointed
as the Auditors of the Company for the
financial year ending 31st March 2020,
subject to approval by the shareholders at
the Annual General Meeting.
A. S. Abeyewardene
Chairman - Audit Committee
07th May 2019

Independent Auditor’s Report
INDEPENDENT AUDITOR’S REPORT Basis of Opinion and Separate Financial Statements as a

TO THE SHAREHOLDERS OF CEYLON We conducted our audit in accordance whole, and in forming our opinion thereon,
HOSPITALS PLC with Sri Lanka Auditing Standards. Our and we do not provide a separate opinion
Opinion responsibilities under those standards on these matters.
We have audited the consolidated Financial are further described in the Auditor’s
Statements of Ceylon Hospitals PLC and its Responsibilities for the Audit of the We have fulfilled the responsibilities
subsidiaries (the Group), which comprise Consolidated Financial Statements section described in the Auditor’s responsibilities
the Consolidated Statement of Financial of our report. We are Independent of the for the Audit of Financial Statements
Position as at 31st March 2019, and the Group in accordance with the Code of section of our report, including in relation
Consolidated Statement of Comprehensive Ethics issued by the Institute of Chartered to those matters. Accordingly, our audit
Income, Consolidated Statement of Accountants of Sri Lanka, and we have included the performance of procedures
Changes in Equity and Consolidated fulfilled our other ethical responsibilities in designed to respond to our assessment
Statement of Cash Flows for the year then accordance with the Code of Ethics issued of the risks of material misstatement of
ended, and notes to the Consolidated by the Institute of Chartered Accountants the financial statements. The results of our
Financial Statements, including a summary of Sri Lanka. We believe that the audit audit procedures, including the procedures
of significant accounting policies and other evidence we have obtained is sufficient performed to address the matters below,
explanatory notes. and appropriate to provide a basis for our provide the basis for our opinion on the
opinion. accompanying financial statements.
In our opinion, the accompanying Financial
Statements of the Company and the Group Key Audit Matters
give a True and Fair view of, the Financial Key audit matters are those matters that,
Position of the Company and the Group in our professional judgment, were of most
as at 31st March 2019, and of its Financial significance in our audit of the Consolidated
Performance and its Cash Flows for the year Financial Statements of the current year.
then ended in accordance with Sri Lanka These matters were addressed in the
Accounting Standards. context of our audit of the Consolidated

Our Business
Our Leadership
Governance
Financial Reports
Independent Auditor’s Report
Key Audit Matter How the matter was Addressed
1. RECOGNITION OF REVENUE
Revenue of the group for the year ended 31st March Our audit procedures in relation to revenue recognition included both tests of
2019 was Rs. 5,806,352,697. controls as well as substantive procedures.
Revenue of the group is disclosed in note no. (3) and Our testing of the company’s manual and automated controls focused on
related accounting policies are disclosed in note no. controls around the timely & accurate recording of sales transactions.
(2.5.1) to the financial statements.
We reviewed the group’s accounting policies in respect of revenue recognition
Revenue of the Group is sourced through provision of and found them to be in compliance with Sri Lanka Accounting Standards.
medical services. It is important to ensure that all the
services provided have been captured for invoicing & We performed analytical review procedures to assess whether the recognized
taken to revenue. revenue was in line with the expected level.
Checked a sample of invoices raised to patients, to ensure revenue is recognized
and measured in accordance with the contractual terms of the contracts and the
Group’s accounting policies.
Discussed with management regarding the contractual arrangements where
consultant medical personnel are involved, and tested the appropriateness of
the recognition of revenue on a gross or net basis.
Carried out substantive test in respect of cut off at the end of the year.
Assessed the adequacy of the disclosures in the financial statements.
Evaluated the process established by the management in identifying and
reporting related party transactions.
Reviewed the reports of the related party transactions review committee.
2. TRANSACTIONS WITH RELATED PARTIES
Related party balances and disclosure of the group Reviewed a sample of transactions and ensured that transactions are taken place
are disclosed in Notes (14) and (31) to the financial on arm’s length basis.
statements.
Critically examined the accuracy of intercompany reconciliations carried out by
The group is engaged in related party transactions the management on a quarterly basis.
during the ordinary course of business. A considerable
part of revenue, recurring expenditure and capital Checked the adequacy of disclosures made in the financial statements in
expenditure of the company are channeled through accordance with Sri Lanka Accounting Standards.
related companies.
Other information If, based on the work we have performed, we Consolidated Financial Statements,
Management is responsible for the conclude that there is a material misstatement management is responsible for assessing
other information. The other information of this other information, we are required to the Group’s ability to continue as a going
comprises the information included in the report that fact. concern, disclosing, as applicable, matters
Annual Report, but does not include the related to Going Concern and using the
financial statements and our auditor’s report We have nothing to report in this regard. going concern basis of accounting unless
thereon. management either intends to liquidate the
Responsibilities of Management and those Group or to cease operations, or have no
Our opinion on the Financial Statements Charged with Governance for the Financial realistic alternative but to do so.
does not cover the other information and Statements
we do not express any form of assurance Management is responsible for the Those charged with governance are
conclusion thereon. preparation and fair presentation of the responsible for overseeing the Group’s
consolidated financial statements in financial reporting process.
In connection with our audit of the Financial accordance with Sri Lanka Accounting
Statements, our responsibility is to read the Standards, and for such internal control as Auditor’s Responsibilities for the Audit of
other information and, in doing so, consider management determines is necessary to the Financial Statements
whether the other information is materially enable the preparation of Consolidated Our Objectives are to obtain reasonable
inconsistent with the Financial Statements Financial Statements that are free assurance about whether the Consolidated
or our knowledge obtained in the audit or form material misstatement, whether Financial Statements as a whole are free
otherwise appears to be materially misstated. due to fraud or error. In preparing the from material misstatement, whether

due to fraud or error, and to issue an statements or, if such disclosures are of doing so would reasonably be expected
auditor’s report that includes our opinion. inadequate, to modify our opinion. to outweigh the public interest benefits of
Reasonable assurance is a high level of Our conclusions are based on the audit such communication.
assurance, but is not a guarantee that an evidence obtained up to the date of our
audit conducted in accordance with Sri auditor’s report. However, future events Report on Other Legal and Regulatory
Lanka Auditing Standards will always detect or conditions may cause the Group to Requirements
a material misstatement when it exists. cease to continue as a going concern. As required by section 163 (2) of the
Misstatements can arise from fraud or error Companies Act No. 07 of 2007, we state the
and are considered material if, individually Evaluate the overall presentation, following:
or in the aggregate, they could reasonably structure and content of the
be expected to influence the economic consolidated financial statements, a) The basis of opinion and scope and
decisions of users taken on the basis of including the disclosures, and whether limitations of the audit are as stated
these consolidated financial statements. the consolidated financial statements above.
represent the underlying transactions
We also: and events in a manner that achieves b) In our opinion:
Identify and assess the risks of material fair presentation.
misstatement of the consolidated We have obtained all the information
financial statements, whether due to Obtain sufficient appropriate audit and explanations that were required for
fraud or error, design and perform evidence regarding the financial the audit and as far as appears from our
audit procedures responsive to those information of the entities or business examination, proper accounting records
risks, and obtain audit evidence that is activities within the Group to express an have been kept by the Company.
sufficient and appropriate to provide opinion on the consolidated financial
a basis for our opinion. The risk of not statements. We are responsible for the The Financial Statements of the
detecting a material misstatement direction, supervision and performance Company give a true and fair view of
resulting from fraud is higher than for of the group audit. We remain solely its Financial Position as at 31st March,
one resulting from error, as fraud may responsible for our audit opinion. 2019, and its Financial Performance and
involve collusion, forgery, intentional Cash Flows for the year then ended in
omissions, misrepresentations, or the We communicate with those charged accordance with Sri Lanka Accounting
override of internal control. with governance regarding, among other Standards.
matters, the planned scope and timing of
Obtain an understanding of internal the audit and significant audit findings, The Financial Statements of the
control relevant to the audit in order including any significant deficiencies in Company, and the Group comply with
to design audit procedures that are internal control that we identify during our the requirements of section 151 and 153
appropriate in the circumstances, but audit. of the Companies Act.
not for the purpose of expressing an
opinion on the effectiveness of the We also provide those Charged With CA Sri Lanka membership number of the
Group’s internal control. Governance with a statement that we engagement partner responsible for signing
have complied with relevant ethical the independent auditor’s report is FCA
Evaluate the appropriateness of requirements regarding independence, and 2972.
accounting policies used and the to communicate with them all relationships
reasonableness of accounting estimates and other matters that may reasonably be
and related disclosures made by the thought to bear on our independence, and
management. where applicable, related safeguards.
Conclude on the appropriateness of From the matters communicated with those

management’s use of the going concern charged with governance, we determine
basis of accounting and, based on those matters that were of most significance B. R. DE SILVA & CO.
the audit evidence obtained, whether in the audit of the Financial Statements CHARTERED ACCOUNTANTS
a material uncertainty exists related of the current year and are therefore the Colombo 05.
to events or conditions that may cast Key Audit Matters. We describe these
significant doubt on the Group’s ability matters in our auditor’s report unless law 09th May 2019
to continue as a going concern. If we or regulation precludes public disclosure SB/RT/sg
conclude that a material uncertainty about the matter or when, in extremely
exists, we are required to draw attention rare circumstances, we determine that a
in our auditor’s report to the related matter should not be communicated in our
disclosures in the consolidated financial report because the adverse consequences

Our Business
Our Leadership
Governance
Financial Reports
Consolidated Statement of Profit or Loss and Other

Comprehensive Income
Group Company
For the Year Ended 31st March, Note 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Revenue 3 5,806,352,697 5,733,404,060 3,449,632,770 3,408,056,199

Cost of Sales (2,181,038,705) (2,316,047,566) (1,319,388,028) (1,390,716,914)
Gross Profit 3,625,313,992 3,417,356,494 2,130,244,742 2,017,339,285
Other Operating Income 4 56,051,511 35,482,582 32,544,275 18,463,209
Overheads
Administration Expenses (2,514,002,329) (2,360,967,154) (1,579,467,015) (1,584,836,025)
Other Operating Expenses (544,450,263) (432,415,030) (358,914,472) (292,318,968)
Finance Cost 5 (135,809,798) (121,724,428) (120,630,554) (113,510,850)
Finance Income 5.1 61,461,043 64,451,359 209,977,733 208,833,346
(3,132,801,347) (2,850,655,253) (1,849,034,308) (1,781,832,497)
Share of Profit of an Equity Accounted Investee 6 697,090 817,639 - -

Profit Before Taxation 7 549,261,246 603,001,462 313,754,708 253,969,997
Taxation 8 (172,942,515) (115,128,176) (102,114,756) (92,599,030)

Net Profit after Taxation 376,318,731 487,873,286 211,639,953 161,370,967
Other Comprehensive Income

Items that are or may be reclassified subsequently to profit or loss
Net Gain/ (Loss) on Available-for-Sale Financial Assets - 255,687 - 44,000
- 255,687 - 44,000
Items that will not be reclassified to Profit or Loss
Net Gain/ (Loss) on Gratuity valuation (21,494,084) 120,487 (17,285,774) 1,846,914
Deferred Tax Charge on Revaluation Gain - (459,488,102) - (397,192,127)
Net Gain/ (Loss) on Equity Investments at Fair Value through Other
Comprehensive Income (2,061,613) - (508,000) -
(23,555,697) (459,367,614) (17,793,774) (395,345,212)
Other Comprehensive Income for the Year (23,555,697) (459,111,928) (17,793,774) (395,301,212)
Total Comprehensive Income for the Year 352,763,034 28,761,359 193,846,179 (233,930,245)
Profit Attributable to:

Equity Holders of the Parent 321,768,112 401,949,561 211,639,953 161,370,967
Non-Controlling Interest 54,550,619 85,923,724 - -
376,318,731 487,873,285 211,639,953 161,370,967
Total Comprehensive Income Attributable to:

Equity Holders of the Parent 299,247,164 (47,034,794) 193,846,179 (233,930,245)
Non-Controlling Interest 53,515,870 75,796,152 - -
352,763,034 28,761,357 193,846,179 (233,930,245)
Earnings Per Share - Basic 9 9.50 11.87 6.25 4.76
The Significant Accounting Policies and the Notes from Pages 111 to 159 form an integral part of these Financial Statements.

Consolidated Statement of Financial Position
Group Company
As at 31st March, Note 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
ASSETS
Non-Current Assets
Property, Plant and Equipment 10 6,958,737,731 6,538,857,919 4,324,720,466 3,947,784,527
Investments in Subsidiaries 11 - - 1,457,591,424 1,457,591,424
Investment in an Equity Accounted Investee 6 5,497,425 4,800,335 229,960 229,960
Other Financial Assets 20.2.5 75,424,577 47,730,448 57,837,505 33,700,971
Prepaid Rent 1,189,952 1,365,000 - -
7,040,849,685 6,592,753,702 5,840,379,355 5,439,306,881
Current Assets
Inventories 12 309,297,748 304,509,727 228,713,011 226,240,442
Trade and Other Receivables 13 215,382,981 217,175,109 132,129,362 144,557,750
Prepayments 13.1 122,513,617 135,896,520 94,235,915 98,169,160
Amounts due from Related Parties 14.1 25,906,346 3,866,151 165,382,821 241,610,879
Other Financial Assets 20.2.5 659,001,992 617,899,735 77,428,088 70,826,354
Tax Refund Due 25 20,772,401 17,417,650 - 13,794,764
Cash and Cash Equivalents 15 403,497,054 203,386,744 62,263,772 58,573,161
1,756,372,139 1,500,151,636 760,152,969 853,772,509
Total Assets 8,797,221,824 8,092,905,337 6,600,532,324 6,293,079,389
EQUITY AND LIABILITIES
Equity Atributable to Equity Holders of the Parent
Stated Capital 16 916,366,104 916,366,104 916,366,104 916,366,104
Revaluation Reserve 17 1,986,852,512 1,986,852,512 1,564,589,060 1,564,589,060
Available-for-Sale Reserve 2,088,876 3,854,701 56,000 564,000
Revenue Reserves 18 2,237,754,267 2,102,179,475 1,502,005,103 1,429,592,738
5,143,061,759 5,009,252,792 3,983,016,267 3,911,111,901
Non-Controlling Interests 19 564,743,689 561,186,237 - -
5,707,805,448 5,570,439,029 3,983,016,267 3,911,111,901
Non-Current Liabilities
Interest Bearing Loans and Borrowings 20.3 592,577,563 284,060,128 521,002,563 279,893,472
Deferred Revenue 21 - - 36,841,314 38,631,600
Retirement Benefit Obligations 22 228,444,975 182,422,394 202,506,305 160,235,950
Deferred Tax Liabilities 23 735,932,264 701,191,908 550,280,213 513,601,220
1,556,954,802 1,167,674,431 1,310,630,395 992,362,243
Current Liabilities
Bank Overdraft 755,244,128 439,745,762 693,019,494 397,360,201
Trade and Other Payables 24 550,641,293 489,117,061 301,282,135 274,443,882
Taxation Payable 25 - - 3,105,671 -
Amounts Due to Related Parties 14.2 4,208,202 1,764,696 107,702,062 329,747,910
1,532,461,574 1,354,791,879 1,306,885,662 1,389,605,244
Total Equity and Liabilities 8,797,221,824 8,092,905,337 6,600,532,324 6,293,079,389
These Financial Statements are prepared in compliance with the requirements of the Companies Act No. 07 of 2007.
Anagi Karunasena
Chief Financial Officer
The Board of Directors are responsible for the preparation and presentation of these Financial Statements.
Signed for and on behalf of the Board by,
A. E. Tudawe U. D. Tudawe
Chairman Director
09th May 2019
Our Business
Our Leadership
Governance
Financial Reports
Statement of Changes in Equity
Group Stated Revaluation General Available- Accumulated Total Non- Total

Capital Reserve Reserve for- Profits Controlling
Sale Reserve Interest
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Balance as at 01st April 2017 916,366,104 2,436,472,139 4,822,163 3,637,773 1,836,790,476 5,198,088,655 529,100,567 5,727,189,222
Net Profit for the Year - - - - 401,949,561 401,949,561 85,923,724 487,873,285

Deferred Tax Effect on
Revaluation Gain - (449,619,627) - - - (449,619,627) (9,868,474) (459,488,102)
Net Gain/ (Loss) on Gratuity
Valuation - - - - 418,345 418,345 (297,858) 120,487
Net Gain/ (Loss) on Available-
for-Sale Financial Assets - - - 216,928 - 216,928 38,759 255,687
Total Comprehensive Income
for the Year - (449,619,627) - 216,928 402,367,906 (47,034,794) 75,796,152 28,761,357
Transactions with Owners in

their capacity as Owners
Share Buy-back - - - - (19,859,256) (19,859,256) (3,738,125) (23,597,381)
Dividend Paid - Ordinary Shares - - - - (121,941,814) (121,941,814) (39,972,357) (161,914,170)
- - - - (141,801,069) (141,801,069) (43,710,482) (185,511,551)
Balance as at 31st March 2018 916,366,104 1,986,852,512 4,822,163 3,854,701 2,097,357,312 5,009,252,792 561,186,237 5,570,439,029
Net Profit for the Year - - - - 321,768,112 321,768,112 54,550,619 376,318,731

Net Gain/ (Loss) on Gratuity
Valuation - - - - (20,755,123) (20,755,123) (738,961) (21,494,084)
Net Gain/ (Loss) on Available-
for-Sale Financial Assets - - - (1,765,825) - (1,765,825) (295,788) (2,061,613)
Total Comprehensive Income
for the Year - - - (1,765,825) 301,102,989 299,247,164 53,515,870 352,763,034
Transactions with Owners in

their Capacity as Owners
Share Buy-back - - - - (43,496,384) (43,496,384) (7,442,392) (50,938,776)
Non-Controlling Interest on
Acquisition of Subsidiary - - - - - - 1,086,000 1,086,000
Dividend Paid - Ordinary Shares - - - - (121,941,814) (121,941,814) (43,602,025) (165,543,839)
- - - - (165,438,198) (165,438,198) (49,958,417) (215,396,615)
Balance as at 31st March 2019 916,366,104 1,986,852,512 4,822,163 2,088,876 2,232,932,104 5,143,061,758 564,743,689 5,707,805,448

Company Stated Revaluation General Available-for- Accumulated Total
Capital Reserve Reserve Sale Reserve Profits
Rs. Rs. Rs. Rs. Rs. Rs.
Balance as at 01st April 2017 916,366,104 1,961,781,186 4,822,163 520,000 1,383,494,507 4,266,983,960
Net Profit for the Year - - - - 161,370,967 161,370,967

Deferred Tax Effect on Revaluation Gain - (397,192,127) - - - (397,192,127)
Net Gain/ (Loss) on Gratuity valuation - - - - 1,846,914 1,846,914
Net Gain/ (Loss) on Available-for-Sale Financial Assets - - - 44,000 - 44,000
Total Comprehensive Income for the Year - (397,192,127) - 44,000 163,217,881 (233,930,245)
Transactions with Owners in their capacity as Owners

Dividend Paid - Ordinary Shares - - - - (121,941,814) (121,941,814)
- - - - (121,941,814) (121,941,814)
Balance as at 31st March 2018 916,366,104 1,564,589,060 4,822,163 564,000 1,424,770,575 3,911,111,901
Net Profit for the Year - - - - 211,639,953 211,639,953

Deferred Tax Effect on Revaluation Gain - - - - - -
Net Gain/ (Loss) on Gratuity valuation - - - - (17,285,774) (17,285,774)
Net Gain/ (Loss) on Available-for-Sale Financial Assets - - - (508,000) - (508,000)
Total Comprehensive Income for the Year - - - (508,000) 194,354,179 193,846,179
Transactions with Owners in their capacity as Owners

Dividend Paid - Ordinary Shares - - - - (121,941,814) (121,941,814)
- - - - (121,941,814) (121,941,814)
Balance as at 31st March 2019 916,366,104 1,564,589,060 4,822,163 56,000 1,497,182,940 3,983,016,266

Our Business
Our Leadership
Governance
Financial Reports
Statement of Cash Flows
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Cash Flows from/ (used in) Operating Activities

Net Profit before Income Tax Expenses 549,261,247 603,001,462 313,754,708 253,969,997
Adjustments for
Inventory Write-off/ (Write-in) (211,584) (3,226,915) (213,159) 329,306
Bad Debts Write-off 4,970,833 1,098,375 2,391,022 802,703
Depreciation Charge for the Year 425,281,296 368,002,488 231,412,384 184,660,036
Finance Income (61,461,043) (64,451,359) (209,977,733) (208,833,346)
Finance Costs 135,809,798 121,724,428 120,630,554 113,510,850
Amortisation of Deferred Rent 175,048 435,000 (1,790,286) (1,455,286)
Profit/ (Loss) on Disposal of Property, Plant and Equipment (9,804,509) (1,866,398) (6,023,138) (2,115,300)
(Increase)/ Decrease in Financial Instruments (337,914) (834,328) (237,241) (849,236)
Share of Profit of an Equity Accounted Investee (697,090) (817,639) - -
Provision for Defined Benefit Plans 41,804,280 39,664,088 35,763,580 33,919,200
Operating Profit before Working Capital Changes 1,084,790,362 1,062,729,203 485,710,692 373,938,924
(Increase)/ Decrease in Inventories (4,788,021) 14,582,367 (4,272,569) 22,993,511

(Increase)/ Decrease in Trade and Other Receivables 10,302,963 105,974,031 15,720,101 41,847,541
(Increase)/ Decrease in Trade and Other Payables 61,524,232 (89,125,304) 26,838,252 (41,596,208)
Increase/ (Decrease) in Related Party Dues (19,596,689) 994,688 (145,817,790) 61,421,470
Cash Generated from Operations 1,132,232,820 1,095,154,985 378,178,687 458,605,238
Finance Costs Paid (135,809,798) (121,724,428) (120,630,554) (113,510,850)

Defined Benefit Plan Costs Paid (25,363,585) (22,317,314) (17,501,245) (18,714,167)
Tax Paid (117,441,130) (40,243,316) (16,674,052) (19,196,771)
Net Cash from/ (used in) Operating Activities 853,618,306 910,869,927 223,372,836 307,183,450
Cash Flows from/ (used in) Investing Activities

Acquisition of Property, Plant and Equipment (863,480,007) (479,531,065) (610,049,851) (399,471,336)
Proceeds from sale of Property Plant and Equipment 11,606,561 2,447,826 7,721,561 692,500
(Acquisition)/ Disposal of other Investments (119,735,161) (190,135,353) (30,706,269) 6,380,701
Income from Investments 61,461,043 44,326,897 184,838,703 188,708,884
Net Cash Flows from/ (used in) Investing Activities (910,147,563) (622,891,696) (448,195,855) (203,689,250)
Cash Flows from/ (used in) Financing Activities

Receipts from Interest bearing Loans and Borrowigs 642,571,439 322,358,226 546,571,439 322,358,226
Re-payments to Interest bearing Loans and Borrowing (535,886,399) (452,939,959) (491,775,284) (416,828,844)
Dividends Paid (165,543,839) (161,914,170) (121,941,814) (121,941,814)
Net Cash Flows from/ (used in) Financing Activities (58,858,799) (292,495,904) (67,145,659) (216,412,431)
Net Increase/ (Decrease) in Cash and Cash Equivalents (115,388,056) (4,517,673) (291,968,678) (112,918,231)
Cash and Cash Equivalents at the beginning of the Year (236,359,018) (231,841,345) (338,787,041) (225,868,808)
Cash and Cash Equivalents at the end of the Year (351,747,074) (236,359,018) (630,755,719) (338,787,041)
Analysis of Cash and Cash Equivalents

Bank Overdraft (755,244,128) (439,745,762) (693,019,494) (397,360,201)
Cash in Hand and at Bank 403,497,054 203,386,744 62,263,772 58,573,161
(351,747,074) (236,359,018) (630,755,719) (338,787,041)

Notes to the Financial Statements
1. CORPORATE INFORMATION 2.1 Basis of Preparation of Financial

1.1 General Statements
Ceylon Hospitals PLC (“Company”) is a Public Limited Liability Company, incorporated and 2.1.1 Basis of Preparation
domiciled in Sri Lanka and listed in the Colombo Stock Exchange. The registered office and The consolidated financial statements of the
the principal place of business are situated at No. 03, Alfred Place, Colombo 03. Group and separate financial statements
of the Company have been prepared in
1.2 Parent Enterprise and Ultimate Parent Enterprise accordance with Sri Lanka Accounting
The consolidated financial statements of the Company for the year ended 31st March 2019 Standards (“SLFRS/LKAS”) as issued by the
comprise the Company and its subsidiaries. (together referred to as the ‘Group’). The Company’s Institute of Chartered Accountants of
parent undertaking is Durdans Management Services Ltd which is incorporated and domiciled in Sri Lanka (“CASL”).
Sri Lanka.
These financial statements presented in
1.3 Principal Activities and Nature of Operations Sri Lanka Rupees have been prepared
During the year the principal business activities of the group were as follows: on a historical cost basis except for the
revaluation of certain property, plant and
equipment, financial instruments at fair
Name of the Company Nature of the Business
value and derivative financial instruments
that have been measured at fair value. The
Ceylon Hospitals PLC Providing Healthcare Services
retirement benefit obligations are measured
Durdans Heart Centre (Pvt) Ltd Providing preventive Cardiac Care Services at the present value of the defined benefit
and Cardiac Surgical Care obligation. All these mesures are explained
Durdans Medical and Surgical Hospital (Pvt) Ltd Providing Healthcare Services in the respective notes to the financial
statements.
Amrak Institute of Medical Sciences (Pvt) Ltd Providing allied medical science courses
Ceygen Biotech (Pvt) Ltd Supplying of Molecular Biological, 2.1.2 Statement of Compliance
Biochemical, Biotechnological Reagents, The Consolidated Financial Statements of
Kits, Equipment & Accessories for Ceylon Hospitals PLC and its subsidiary
Molecular diagnostics and research companies have been prepared in
accordance with the Sri Lanka Accounting
1.4 Date of Authorisation for Issue Standards as laid down by the Institute of
The financial statements for the year ended 31st March 2019 were authorised for issue in Chartered Accountants of Sri Lanka and the
accordance with a resolution of the Board of Directors on 09th May 2019. requirements of the Companies Act No. 07
of 2007.
1.5 Companies in the Group
Subsidiaries and Equity Accounted Investee 2.1.3 Going Concern
The Group Financial Statements include the results of the Durdans Heart Centre (Pvt) Ltd, The Directors have made an assessment
Durdans Medical and Surgical Hospital (Pvt) Ltd and Amrak Institute of Medical Sciences (Pvt) on the Company’s ability to continue as
Ltd which are subsidiaries of the Company and the share of profit from the Equity Accounted a going concern and they certified that
Investee, Ceygen Biotech (Pvt) Ltd. The details of subsidiaries and Equity Accounted the Company has adequate resources to
Investee are as follows: continue its operations in the foreseeable
future. The Group had positive net asset
Company Name Year of Ownership and cash flow positions as at the reporting
Incorporation date. Furthermore, management is not
aware of any material uncertainties that may
Subsidiary Companies cast significant doubt upon the Company’s
Durdans Heart Centre (Pvt) Ltd 1999/00 81.16% ability to continue as a going concern.
Therefore, these financial statements are
Durdans Medical and Surgical Hospital (Pvt) Ltd 2007/08 85.31%
prepared on going concern basis.
Amrak Institute of Medical Sciences (Pvt) Ltd 2017/18 45.70%
Equity Accounted Investee
Ceygen Biotech (Pvt) Ltd 2009/10 46.00%

Our Business
Our Leadership
Governance
Financial Reports
2.1.4 Functional Currency and 2.1.7 Measurement of Fair Value Acquisition-related costs are expensed as
Presentation Currency A number of the Group’s accounting incurred and included in administrative
The Financial Statements are presented policies and disclosures require the expenses.
in Sri Lankan Rupees, which is the Group’s measurement of fair values for both financial
functional currency. and non-financial assets and liabilities. (b) Subsidiaries
The Group regularly reviews significant Subsidiaries are those enterprises
2.1.5 Use of Estimates and Judgments unobservable inputs and valuation controlled by the Group. The Group
The preparation of the financial statements adjustments. If third party information is controls an entity when it is exposed to,
in conformity with LKAS/ SLFRS requires used to measure fair values, the Group or has right to, variable returns from its
management to make judgments, estimates assesses the evidence obtained from the involvement with the entity and has the
and assumptions that affect the application third parties to support the conclusion that ability to affect those returns through
of accounting policies and the reported such valuations meet the requirements of its power over the entity. The financial
amounts of assets, liabilities, income and SLFRS, including the level in the fair value statements of subsidiaries are included in
expenses, judgments and estimates based hierarchy in which such valuations should the consolidated financial statements from
on historical experience and other factors, be classified. When measuring the fair value the date on which the control commences
including expectations that are believed of an asset or a liability, the Group uses until the date that on which control ceases.
to be reasonable under the circumstances. observable market data as far as possible.
Hence, actual results may differ from those Fair values are categorised into different A listing of the Group’s significant
estimates and judgemental decisions. levels in a fair value hierarchy based on the subsidiaries is set out in Note 1.5 to the
inputs used in the valuation techniques as financial statements.
Estimates and underlying assumptions are follows:
reviewed on an ongoing basis. Revisions to (c) Non-Controlling Interests
Level 1:
accounting estimates are recognised in the The interest of the outside shareholders
Quoted prices (unadjusted) in active
period in which the estimates are revised of the Group is disclosed separately under
markets for identical assets or liabilities.
and in any future period affected. the heading of Non-Controlling Interest
(”NCI”). NCI are measured initially at their
Level 2:
Information about significant areas proportionate share of the acquiree’s
Inputs other than quoted prices included
of estimation uncertainty and critical identifiable net assets at the date of
in Level 1 that are observable for the asset
judgments in applying accounting policies acquisition.
or liability, either directly (i.e. as prices) or
that have the most significant effect on
indirectly (i.e. derived from prices).
the amounts recognised in the financial Changes in the Group’s interest in a
statements is included in the following subsidiary that do not result in a loss
Level 3:
notes: of control are accounted for as equity
Inputs for the asset or liability that is
transactions.
Note 10 - Revaluation of Land and Building not based on observable market data
(unobservable inputs).
Losses within a subsidiary are attributed
Note 22 - Retirement Benefit Obligations
to the non-controlling interest even if that
2.2 Significant Accounting Policies
results in a deficit balance.
Note 23 - Deferred Tax Asset/ Liability 2.2.1 Basis of Consolidation
(a) Business Combination
(d) Investment in Equity Accounted
Note 27 - Contingent Liabilities The Group accounts for business
Investee
combinations using the acquisition method
The Group’s investment in its equity
2.1.6 Comparative Information when control is transferred to the Group.
accounted investee is accounted for using
Comparative Information has been The cost of an acquisition is measured
the equity method. Equity accounted
reclassified, wherever necessary, to conform as the aggregate of the consideration
investee is an entity in which the Group has
to the current year’s presentation and transferred measured at acquisition date
a significant influence.
classification. fair value and the amount of any non-
controlling interests in the acquiree. For
Under the equity method, the investment
each business combination, the Group
in the equity accounted investee is carried
elects whether to measure the non-
in the statement of financial position at
controlling interests in the acquiree at
cost plus post acquisition changes in the
fair value or at the proportionate share
Group’s share of net assets of the equity
of the acquiree’s identifiable net assets.

accounted investee. Goodwill relating to Upon loss of significant influence over operation when determining the gain or
the equity accounted investee is included in the equity accounted investee, the Group loss on disposal of the operation.
the carrying amount of the investment and measures and recognises any retaining
is neither amortised nor individually tested investment at its fair value. Any difference (g) Financial Year
for impairment. between the carrying amount of the equity All Companies in the Group have a
accounted investee upon loss of significant common financial year, which ends on 31st
The Statement of Comprehensive influence and the fair value of the retaining March.
Income reflects the share of the results investment and proceeds from disposal is
of operations of the equity accounted recognised in profit or loss. 2.2.2 Foreign Currency Transactions
investee. Where there has been a change The Group’s consolidated financial
recognised directly in the equity of the (e) Transactions Eliminated on statements are presented in Sri Lanka
equity accounted investee, the Group Consolidation Rupees (“Rs.”), which is also the parent
recognises its share of any changes and Intra-group balances and transactions, company’s functional currency. Transactions
discloses this, when applicable, in the and any unrealised income and expenses in foreign currencies are translated into Sri
Statement of Changes in Equity. Unrealised arising from intra-group transactions, Lanka Rupees at the foreign exchange rate
gains and losses resulting from transactions are eliminated. Unrealised gains arising prevailing at the date of the transaction.
between the Group and the associate are from transactions with equity accounted
eliminated to the extent of the interest in investees are eliminated against the Monetary assets and liabilities denominated
the equity accounted investee. investment to the extent of the Group’s in foreign currencies at the reporting date
interest in the investee. Unrealised are translated in to rupees at the foreign
The share of profit of an equity accounted losses are eliminated in the same way as exchange rate ruling at that date. Foreign
investee is shown on the face of the income unrealised gains, but only to the extent that exchange differences arising on translations
statement. This is the profit attributable there is no evidence of impairment. are recognised in the Statement of
to equity holders of the associate and Comprehensive Income.
therefore is profit after tax and non- (f) Goodwill
controlling interests in the subsidiaries of Goodwill is initially measured at cost, Non-monetary items that are measured in
the associate. being the excess of the aggregate of the terms of historical cost in a foreign currency
consideration transferred and the amount are translated using the exchange rates
The financial statements of the associate are recognised for non-controlling interest as at the dates of the initial transactions.
prepared for the same reporting period as over the net identifiable assets acquired Non-monetary items measured at fair value
the Group. Where necessary, adjustments and liabilities assumed. Following the in a foreign currency are translated using
are made to bring the accounting policies in initial recognition, goodwill is measured the exchange rates at the date when the
line with those of the Group. at cost less any accumulated impairment fair value is determined. The gain or loss
losses. Goodwill is reviewed for impairment, arising on translation of non-monetary items
After application of the equity method, the annually or more frequently if events or is recognised in line with the gain or loss
Group determines whether it is necessary changes in circumstances indicate that the of the item that gave rise to the translation
to recognise an additional impairment loss carrying value may be impaired. difference.
on the Group’s investment in its equity
accounted investee. The Group determines For the purpose of impairment testing, 2.3 Valuation of Assets and their
at each reporting date whether there is any goodwill acquired in a business Measurement Bases
objective evidence that the investment in combination is, from the acquisition date, 2.3.1 Inventories
the equity accounted investee is impaired. allocated to groups of cash-generating Inventories are valued at the lower of cost
If this is the case, the Group calculates the units that are expected to benefit from the and net realisable value, after making due
amount of impairment as the difference synergies of the combination. allowances for obsolete and slow moving
between the recoverable amount of the items. The cost of inventories is based
equity accounted investee and its carrying Where goodwill forms part of a cash- on Weighted Average Cost. The cost
value and recognises the amount in the generating unit and part of the operation includes expenditure incurred in acquiring
‘share of profit from equity accounted within that unit is disposed of, the goodwill the inventories and bringing them to their
investee’ in the income statement. associated with the operation disposed of existing location and condition.
is included in the carrying amount of the

Our Business
Our Leadership
Governance
Financial Reports
Net realisable value is the estimated the recognition criteria are satisfied. The Ceylon Hospitals PLC
price at which inventories can be sold in cost of replacing part of an item of property,
the ordinary course of business less the plant and equipment is recognised in Buildings @ 2.5%
estimated costs of completion and the the carrying amount of the item, if it is
estimated costs necessary to make the sale. probable that the future economic benefits Plant and Machinery @ 10%
embodied within the part will flow to Electrical Equipment @ 10%
2.3.2 Property, Plant and Equipment the Group and its cost can be measured
Property, plant and equipment are tangible reliably. The carrying amount of the Furniture and Fittings @ 10%
items that are held for servicing, or for replaced part is derecognised. Sundry Equipment @ 10%
administrative purposes and are expected
to be used more than one period. (d) Revaluation of Land and Buildings Telephones @ 20%
Land and buildings are measured at fair Electrical Power Plant and @ 10%
(a) Recognition value less accumulated depreciation on Transformer
Property, plant and equipment are buildings and impairment losses recognised
recognised if it is probable that future after the date of the revaluation. Valuations Air Conditioners @ 10%
economic benefits associated with the are performed with sufficient frequency to Motor Vehicles @ 10%
assets will flow to the Group and cost of the ensure that the fair value of a revalued asset
asset can be reliably measured. does not differ materially from its carrying Linen @ 50%
amount. Computer Equipment @ 10%
(b) Measurement
Property, plant and equipment are stated at Any revaluation surplus is recognised Durdans Heart Centre (Pvt) Ltd
cost, net of accumulated depreciation and/ in other comprehensive income and
or accumulated impairment losses, if any. accumulated in equity in the asset Cardiac Catheterisation @ 10%
Cost includes expenditures that are directly revaluation reserve, except to the extent Laboratory
attributable to the acquisition of the asset. that it reverses a revaluation decrease
The cost of self-constructed assets includes of the same asset previously recognised Theatre and SICU Equipment @ 10%
the cost of materials and direct labour, any in the income statement, in which case Furniture and Fittings @ 20%
other cost directly attributable to bringing the increase is recognised in the income
the asset to a working condition for its statement. A revaluation deficit is Computer Equipment @ 25%
intended use and the cost of dismantling recognised in the income statement, except Electrical and Other Equipment @ 20%
and removing the items and restoring the to the extent that it offsets an existing
site on which they are located. surplus on the same asset recognised in Motor Vehicles @ 20%
the asset revaluation reserve. Any balance
All other repair and maintenance costs are remaining in the revaluation surplus in Durdans Medical and
recognised in the income statement as respect of an asset is transferred directly Surgical Hospital (Pvt) Ltd
incurred. The present value of the expected to Accumulated Profits on retirement or
cost for the decommissioning of the asset disposal of the assets. Buildings @ 2.5%
after its use is included in the cost of the Computer Equipment @ 10%
respective asset if the recognition criteria The Company policy is to revalue the
for a provision are met. Company land and building between 3-5 Medical Equipment @ 10%
years. Furniture and Fittings @ 5%
(c) Subsequent Expenditure
When significant parts of property, plant (e) Depreciation Curtaining & Linen @ 50%
and equipment are required to be replaced The provision for depreciation is calculated Other Equipment @ 10%
at intervals, the Group derecognises by using straight line basis on the cost
the replaced part and recognises the or valuation of all property, plant and Depreciation of an asset begins when it is
new part with its own associated useful equipment other than freehold land, available for use and ceases at the earlier
life and depreciation. Likewise, when a in order to write off such amounts over of the date that the asset is classified as
major inspection is performed, its cost is the following estimated useful lives. The held for sale and the date that the asset is
recognised in the carrying amount of the principal annual rates used are: derecognised.
plant and equipment as a replacement if

(f) Borrowing Cost proceeds and the carrying amount. Gains or A leased asset is depreciated over the
Borrowing cost directly attributable to the losses on de-recognition are recognised in useful life of the asset. However, if there is
acquisition, construction or production of profit or loss and gains are not classified as no reasonable certainty that the Group will
an qualifying asset that necessarily takes a revenue. obtain ownership by the end of the lease
substantial period of time to get ready for term, the asset is depreciated over the
its intended use or sale are capitalised as 2.3.3 Intangible Assets shorter of the estimated useful life of the
part of the cost of the respective assets, An intangible asset is initially recognised at asset and the lease term.
until such time the assets are substantially cost, if it is probable that future economic
ready for their intended use. benefit will flow to the enterprise and The corresponding principal amount
the cost of the asset can be measured payable to the lessor is shown as a liability,
(g) Restoration Cost reliably. Following the initial recognition, lease payments are apportioned between
Expenditure incurred on repairs and intangible assets are carried at cost less the finance charges and reduction of the
maintenance of property, plant and any accumulated amortisation and any lease liability so as to achieve a constant
equipment in order to restore or maintain accumulated impairment losses. rate of interest on the remaining balance
the future economic benefits expected of the liability. The interest payable over
from originally assessed standard of Intangible assets with finite lives are the period of the lease is transferred to an
performance, is recognised as an expense amortised over the useful economic life and interest in suspense account. The interest
when incurred. assessed for impairment whenever there is element of the rental obligations applicable
an indication that the intangible asset may to each financial year is charged to the
(h) Capital Work-in-Progress be impaired. The amortisation period and Statement of Comprehensive Income over
The cost of self-constructed assets includes the amortisation method for an intangible the period of the lease.
the cost of materials, direct labour, and asset with a finite useful life are reviewed at
direct overheads including any other costs least at each financial year end. (b) Operating Leases
directly attributable to bring the assets to Leases where the lessor effectively retains
a workable condition of their intended use The estimated useful life for intangible substantially all the risks and rewards of
and capitalised borrowing cost. Capital assets with finite useful life is as follows; ownership over the assets are classified as
Work-In-Progress is transferred to the operating leases. Operating lease payments
Software Licenses - Over four years
respective asset accounts when the asset is are recognised as an operating expense
available for use and all work connected to in the Income Statement on a straight line
Intangible assets with indefinite useful lives
construction is completed. basis over the lease term.
are tested for impairment annually either
individually or at the Cash Generating Unit
(i) Impairment of Property, Plant and 2.3.5 Financial Instruments - Recognition
level (“CGU”).
Equipment and Measurement
The carrying value of property, plant and Recognition and Initial Measurement
An intangible asset is de-recognised on
equipment is reviewed for impairment when Trade receivables are initially recognised
disposal or when no future economic
events or changes in circumstances indicate when they are originated. All other financial
benefits are expected from it. The gain or
the carrying value may not be recoverable. assets and financial liabilities are initially
loss arising from de-recognition of such
If any such indication exists and where recognised when the Group becomes a
intangible assets is included in the Profit or
the carrying value exceed the estimated party to the contractual provisions of the
Loss when the item is de-recognised.
recoverable amount the assets are written instrument.
down to their recoverable amount.
2.3.4 Leases
Impairment losses are recognised in the A financial asset (unless it is a trade
(a) Finance Leases
profit or loss unless it reverses a previous receivable without a significant financing
Finance leases which transfer to the Group
revaluation surplus for the same asset. component) or financial liability is initially
substantially all the risks and benefits
measured at fair value plus, for an
incidental to ownership of the leased item,
(j) De-recognition item not at fair value through profit or
are capitalised at the commencement of the
An item of property, plant and equipment loss, transaction costs that are directly
lease at the fair value of the leased property
is de-recognised upon disposal or when no attributable to its acquisition or issue.
or, if lower, at the present value of the
future economic benefits are expected from A trade receivable without a significant
minimum lease payments.
its use or disposal. Any gain or loss arising financing component is initially measured at
on de-recognition of the asset calculated the transaction price.
as the difference between the net disposal

Our Business
Our Leadership
Governance
Financial Reports
Transaction cost in relation to financial Its contractual terms give rise on The risks that affect the performance of
assets and financial liabilities at fair value specified dates to cash flows that are the business model (and the financial
through profit or loss are dealt with through solely payments of principal and interest assets held within that business model)
the Income Statement. on the principal amount outstanding and how those risks are managed;
How managers of the business
2.3.5.1 Classification and Subsequent On initial recognition of an equity
are compensated : e.g. whether
Measurement of Financial Assets investment that is not held for trading, the
compensation is based on the fair
From 01st April 2018 as per Sri Lanka Group may irrevocably elect to present
value of the assets managed or the
Accounting Standard (SLFRS 9) on Financial subsequent changes in the investment’s
contractual cash flows collected; and
Instruments, the Group classifies all of fair value in Other Comprehensive Income
its financial assets based on the business (“OCI”). This election is made on an The frequency, volume and timing
model for managing the assets and the investment by investment basis. of sales of financial assets in prior
assets’ contractual terms measured at periods, the reasons for such sales and
either; All financial assets not classified as expectations about future sales activity.
measured at amortised cost or FVOCI as
Amortised cost
described above are measured at FVTPL. Transfers of financial assets to third parties
Fair value through other comprehensive This includes all derivative financial assets. in transactions that do not qualify for de-
income (“FVOCI”) On initial recognition, the Group may recognition are not considered as sales for
irrevocably designate a financial asset this purpose, consistent with the Group’s
Fair value through profit or loss
that otherwise meets the requirements continuing recognition of the assets.
(“FVTPL”)
to be measured at amortised cost or at
Financial assets are not re-classified FVOCI or at FVTPL if doing so eliminates Assessment of whether Contractual Cash
subsequent to their initial recognition or significantly reduces an accounting Flows are Solely Payments of Principal and
unless the Group changes its business mismatch that would otherwise arise. Interest (SPPI test)
model for managing financial assets, in For the purposes of this assessment,
which case all affected financial assets Financial assets – Business Model ‘principal’ is defined as the fair value of
are re-classified on the first day of the Assessment the financial asset on initial recognition.
first reporting period following the The Group makes an assessment of the ‘Interest’ is defined as consideration for
change in the business model. objective of the business model in which the time value of money and for the credit
a financial asset is held at a portfolio level risk associated with the principal amount
A financial asset is measured at because this best reflects the way the outstanding during a particular period of
amortised cost if it meets both of business is managed and information is time and for other basic lending risks and
the following conditions and is not provided to management. The information costs (e.g. liquidity risk and administrative
designated as FVTPL: considered includes: costs), as well as a profit margin. In
assessing whether the contractual cash
The stated policies and objectives
It is held within a business model whose flows are solely payments of principal
for the portfolio and the operation of
objective is to hold assets to collect and interest, the Group considers the
those policies in practice. These include
contractual cash flows; and contractual terms of the instrument. This
whether management’s strategy focuses
includes assessing whether the financial
Its contractual terms give rise on on earning contractual interest income,
asset contains a contractual term that could
specified dates to cash flows that are maintaining a particular interest rate
change the timing or amount of contractual
solely payments of principal and interest profile, matching the duration of the
cash flows such that it would not meet this
on the principal amount outstanding. financial assets to the duration of any
condition. In making this assessment, the
related liabilities or expected cash
A debt investment is measured at Group considers:
outflows or realising cash flows through
FVOCI if it meets both of the following Contingent events that would change
the sale of the assets;
conditions and is not designated as
the amount or timing of cash flows;
FVTPL: How the performance of the portfolio is
evaluated and reported to the Group’s Terms that may adjust the contractual
It is held within a business model whose management; coupon rate, including variable rate
objective is achieved by both collecting features;
contractual cash flows and selling Prepayment and extension features; and
financial assets; and

Terms that limits the Group’s claim to recognition, gains and losses accumulated instruments. Financial assets at fair value
cash flows from specified assets (e.g. in OCI are reclassified to profit or loss. through profit and loss are carried in the
non-recourse features). statement of financial position at fair value
Equity Investments at Fair Value tthrough with changes in fair value recognised in
A prepayment feature is consistent
Other Comprehensive Income finance income or finance costs in the
with the solely payments of principal
These assets are subsequently measured Statement of Comprehensive Income.
and interest criterion if the prepayment
at fair value. Dividends are recognised as
amount substantially represents unpaid
income in profit or loss unless the dividend The Group evaluates its financial assets
amounts of principal and interest on the
clearly represents a recovery of part of the held for trading, other than derivatives, to
principal amount outstanding, which
cost of the investment. Other net gains and determine whether the intention to sell
may include reasonable additional
losses are recognised in OCI and are never them in the near term is still appropriate.
compensation for early termination of
reclassified to profit or loss. When the Group is unable to trade these
the contract. Additionally, for a financial
financial assets due to inactive markets and
asset acquired at a discount or premium
Classification and Subsequent management’s intention to sell them in the
to its contractual paramount, a feature
Measurement foreseeable future significantly changes,
that permits or requires prepayment at
Financial Assets – Policy Applicable before the Group may elect to reclassify these
an amount that substantially represents
1st April 2018 financial assets in rare circumstances. The
the contractual par amount plus accrued
The Group classified its financial assets into reclassification to loans and receivables,
(but unpaid) contractual interest (which
one of the following categories: available-for-sale or held to maturity
may also include reasonable additional
depends on the nature of the asset. This
compensation for early termination) is Loans and receivables;
evaluation does not affect any financial
treated as consistent with this criterion if
Held to maturity; assets designated at fair value through
the fair value of the prepayment feature
profit or loss using the fair value option at
is insignificant at initial recognition. Available-for-sale; and
designation.
at FVTPL, and within this category as:
Financial Assets - Subsequent Measurement
Derivatives embedded in host contracts
and Gains and Losses - Held for trading;
are accounted for as separate derivatives
Financial Assets at Fair Value through Profit
- Derivative hedging instruments; or and recorded at fair value if their economic
or Loss
designated as at FVTPL. characteristics and risks are not closely
These assets are subsequently measured at
related to those of the host contracts and
fair value. Net gains and losses, including Financial Assets – Subsequent
the host contracts are not held for trading
any interest or dividend income, are Measurement and Gains and Losses: Policy
or designated at fair value though profit
recognised in profit or loss. Applicable before 1st April 2018
or loss. These embedded derivatives are
Financial Assets at Fair Value through Profit
measured at fair value with changes in fair
Financial Assets at Amortised Cost or Loss
value recognised in the reassessment only
These assets are subsequently measured at Financial assets at fair value through profit
occurs if there is a change in the terms
amortised cost using the effective interest or loss include financial assets held for
of the contract that significantly modifies
method. The amortised cost is reduced by trading and financial assets designated
the cash flows that would otherwise be
impairment losses. Interest income, foreign upon initial recognition at fair value through
required.
exchange gains and losses and impairment profit or loss. Financial assets are classified
are recognised in profit or loss. Any gain or as held for trading if they are acquired for
Loans and Receivables
loss on derecognition is recognised in profit the purpose of selling or repurchasing in the
Loans and receivables are non-derivative
or loss. near term. This category includes derivative
financial assets with fixed or determinable
financial instruments entered into by the
payments that are not quoted in an
Debt Investments at Fair Value through Group that are not designated as hedging
active market. After initial measurement,
Other Comprehensive Income instruments in hedge relationships as
such financial assets are subsequently
These assets are subsequently measured defined by Sri Lanka Accounting Standard
measured at amortised cost using the
at fair value. Interest income calculated (LKAS 39) on Financial Instruments:
Effective Interest Rate (“EIR”) method, less
using the effective interest method, foreign Recognition and Measurement. Derivatives,
impairment. Amortised cost is calculated
exchange gains and losses and impairment including separated embedded derivatives
by taking into account any discount or
are recognised in profit or loss. Other net are also classified as held for trading unless
premium on acquisition and fees or costs
gains and losses are recognised in Other they are designated as effective hedging
that are an integral part of the EIR. The EIR
Comprehensive Income (“OCI”). On de-

Our Business
Our Leadership
Governance
Financial Reports
amortisation is included in finance income sale debt securities is calculated using the 2.3.5.2 Classification and Subsequent
in the Statement of Comprehensive Income. effective interest method and is recognised Measurement of Financial Liabilities
The losses arising from impairment are in profit or loss. As per SLFRS 9, the Group classifies
recognised in the income statement in financial liabilities, other than financial
finance costs. De-recognition of Financial Assets guarantees and loan commitments into one
A financial asset (or, where applicable a of the following categories:
Held-to-Maturity Investments part of a financial asset or part of a group
Financial liabilities at fair value through
Non-derivative financial assets with fixed of similar financial assets) is derecognised
profit or loss, and within this category as –
or determinable payments and fixed when:
maturities are classified as held-to-maturity - Held-for-trading; or
a) The rights to receive cash flows from the
when the Group has the positive intention - Designated at fair value through profit
asset have expired
and ability to hold them to maturity. After or loss;
initial measurement, held-to-maturity The Group has transferred its rights to
investments are measured at amortised cost receive cash flows from the asset or has Financial liabilities measured at amortised
using the effective interest method, less assumed an obligation to pay the received cost
impairment. Amortised cost is calculated cash flows in full without material delay
by taking into account any discount or to a third party under a ‘pass-through’ Financial liabilities at Fair Value through
premium on acquisition and fees or costs arrangement; and either Profit or Loss
that are an integral part of the EIR. The Financial liabilities at fair value through
(1) the Group has transferred profit or loss include financial liabilities
EIR amortisation is included in finance
substantially all the risks and rewards held for trading and financial liabilities
income in the Statement of Comprehensive
of the asset, or designated upon initial recognition as at
Income. The losses arising from impairment
are recognised in the Statement of (2) the Group has neither transferred fair value through profit or loss. Financial
Comprehensive Income in finance costs. nor retained substantially all the liabilities at FVTPL are measured at fair
risks and rewards of the asset, but value and net gains and losses, including
Available-for-Sale Financial Investments has transferred control of the asset. any interest expense, are recognised in
Available-for-sale financial investments profit or loss.
b) When the Group has transferred its
include equity and debt securities. Equity
rights to receive cash flows from an Financial Liabilities Designated at Fair Value
investments classified as available-for-sale
asset or has entered into a pass- through Profit or Loss
are those, which are neither classified as
through arrangement, and has neither Financial liabilities designated at fair value
held for trading nor designated at fair value
transferred nor retained substantially through profit or loss are recorded in the
through profit or loss. Debt securities in this
all of the risks and rewards of the asset SOFP at fair value when
category are those which are intended to
nor transferred control of it, the asset is
be held for an indefinite period of time and The designation eliminates, or
recognised to the extent of the Group’s
which may be sold in response to needs for significantly reduces, the inconsistent
continuing involvement in it.
liquidity or in response to changes in the treatment that would otherwise arise
market conditions. In that case, the Group also recognises an from measuring the assets or liabilities
associated liability. The transferred asset or recognising gains or losses on them
After initial measurement, available-for- and the associated liability are measured on a different basis, or
sale financial investments are subsequently on a basis that reflects the rights and
measured at fair value with unrealised obligations that the Group has retained. A group of financial liabilities is
gains or losses recognised as other managed and its performance is
comprehensive income in the available- Continuing involvement that takes the form evaluated on a fair value basis, in
for-sale reserve until the investment is of a guarantee over the transferred asset accordance with a documented risk
derecognised, at which time the cumulative is measured at the lower of the original management or investment strategy
gain or loss is recognised in other operating carrying amount of the asset and the and information about the group is
income or determined to be impaired, at maximum amount of consideration that the provided on that basis to entity’s key
which time the cumulative loss is reclassified Group could be required to repay. management personnel, or
to the income statement in finance costs
and removed from the available-for-sale
reserve. Interest income on available-for-

The liabilities containing one or more An analysis of fair values of financial 12 month ECLs are the portion of ECLs that
embedded derivatives, unless they do instruments and further details as to how result from default events that are possible
not significantly modify the cash flows they are measured are provided in Note within the 12 months after the reporting
that would otherwise be required by 20.2.4. date (or a shorter period if the expected life
the contract, or it is clear with little or of the instrument is less than 12 months).
no analysis when a similar instrument is Impairment of Non-derivative Financial The maximum period considered when
first considered that separation of the Assets estimating ECLs is the maximum contractual
embedded derivative(s) is prohibited. The Group recognises loss allowances for period over which the Group is exposed to
Expected Credit Losses (“ECL”) on: credit risk.
Financial Liabilities Measured at
Financial assets measured at amortised
Amortised Cost Measurement of ECLs
cost;
After initial recognition, such financial ECLs are a probability weighted estimate of
liabilities are subsequently measured at Debt investments measured at FVOCI; credit losses. Credit losses are measured as
amortised cost using the EIR method. and the present value of all cash shortfalls (i.e.
Amortised cost is calculated by taking the difference between the cash flows due
Contract assets.
into account any discount or premium on to the entity in accordance with the contract
acquisition and fees or costs that are an and the cash flows that the Group expects
The Group measures loss allowances at an
integral part of the EIR. to receive). ECLs are discounted at the
amount equal to lifetime ECLs, except for
effective interest rate of the financial asset.
the following, which are measured at 12
De-recognition - Financial Liabilities
month ECLs:
The Group derecognises a financial liability Credit-Impaired Financial Assets
when its contractual obligations are At each reporting date, the Group assesses
Debt securities that are determined to have
discharged, cancelled or expired. whether financial assets carried at amortised
low credit risk at the reporting date; and
cost and debt securities at FVOCI are
other debt securities and bank balances
2.3.5.3 Offsetting credit impaired. A financial asset is ‘credit
for which credit risk (i.e. the risk of default
Financial assets and financial liabilities are impaired’ when one or more events that
occurring over the expected life of the
offset and the net amount presented in the have a detrimental impact on the estimated
financial instrument) has not increased
statement of financial position when, and future cash flows of the financial asset have
significantly since initial recognition.
only when, the Group currently has a legally occurred. Evidence that a financial asset
enforceable right to set off the amounts is credit impaired includes the following
Loss allowances for trade receivables and
and it intends either to settle them on a net observable data:
contract assets are always measured at an
basis or to realise the asset and settle the
amount equal to lifetime ECLs. Significant financial difficulty of the
liability simultaneously.
borrower or issuer;
When determining whether the credit
2.3.5.4 Fair Value of Financial Instruments A breach of contract such as a default or
risk of a financial asset has increased
The fair value of financial instruments being more than 90 days past due;
significantly since initial recognition and
that are traded in active markets at each
when estimating ECLs, the Group considers The restructuring of a loan or advance by
reporting date is determined by reference
reasonable and supportable information the Group on terms that the Group would
to quoted market prices or dealer price
that is relevant and available without not consider otherwise;
quotations (bid price for long positions and
undue cost or effort. This includes both
ask price for short positions), without any It is probable that the borrower will
quantitative and qualitative information and
deduction for transaction costs. enter bankruptcy or other financial
analysis, based on the Group’s historical
reorganisation; or
experience and informed credit assessment
For financial instruments not traded in an
and including forward looking information. The disappearance of an active market for
active market, the fair value is determined
a security because of financial difficulties.
using appropriate valuation techniques.
The Group assumes that the credit risk on a
Such techniques may include using
financial asset has increased significantly if it Presentation of Allowance for ECL in the
recent arm’s length market transactions;
is more than 30 days past due. Statement of Financial Position
reference to the current fair value of another
Loss allowances for financial assets
instrument that is substantially the same;
Lifetime ECLs are the ECLs that result measured at amortised cost are deducted
a discounted cash flow analysis or other
from all possible default events over the from the gross carrying amount of the
valuation models.
expected life of a financial instrument.

Our Business
Our Leadership
Governance
Financial Reports
assets. For debt securities at FVOCI, the An impairment loss is recognised if the defined benefit obligation is calculated
loss allowance is charged to profit or loss carrying amount of an asset or CGU annually by independent actuaries using
and is recognised in OCI. exceeds its recoverable amount. Projected Unit Credit Method (“PUC”) as
recommended by Sri Lanka Accounting
Write-off Impairment losses are recognised in profit Standard (LKAS 19) on Employees Benefits.
The gross carrying amount of a financial or loss. They are allocated first to reduce The defined benefit liability is recognised in
asset is written off when the Group has no the carrying amount of any goodwill the reporting date.
reasonable expectations of recovering a allocated to the CGU, and then to reduce
financial asset in its entirety or a portion the carrying amounts of the other assets in The actuarial gains and losses are charged
thereof. For corporate customers, the the CGU on a pro rata basis. or credited to Other Comprehensive
Group individually makes an assessment Income in the period in which they arise.
with respect to the timing and amount 2.4 Liabilities and Provisions The assumptions based on which the results
of write-off based on whether there is a Liabilities classified as current liabilities of the actuarial valuation was determined
reasonable expectation of recovery. The on the reporting date are those, which fall as at 31st March 2019 are given below.
Group expects no significant recovery from due for payment on demand or within one However, according to the Payment of
the amount written off. However, financial year from the reporting date. Non-current Gratuities Act No.12 of 1983, the liability
assets that are written off could still be liabilities are those balances that fall due for for the gratuity payment to an employee
subject to enforcement activities in order payment after one year from the reporting arises only on the completion of 5 years of
to comply with the Group’s procedures for date. continued service with the Company.
recovery of amounts due.
a. Average Rate of Interest – 11% (Per
Provisions are recognised when the
annum)
Impairment of Non-Financial Assets Group has a present obligation (legal or
At each reporting date, the Group reviews constructive) as a result of a past event, it b. Average Rate of Salary Increase - 8%
the carrying amounts of its non-financial is probable that an outflow of resources
c. Average Retirement Age - 55 years
assets (other than biological assets, embodying economic benefits will be
investment property, inventories and required to settle the obligation and a d. The company will continue in business
deferred tax assets) to determine whether reliable estimate can be made of the as a going concern
there is any indication of impairment. If amount of the obligation. The expense
any such indication exists, then the asset’s relating to any provision is presented in the The liability is not externally funded.
recoverable amount is estimated. Goodwill Statement of Comprehensive Income net of
is tested annually for impairment. any reimbursement. (b) Defined Contribution Plans
- Employees’ Provident Fund &
For impairment testing, assets are grouped If the effect of the time value of money is Employees’ Trust Fund
together into the smallest group of assets material, provisions are discounted using Employees are eligible for Employees’
that generates cash inflows from continuing a current pre-tax rate that reflects, where Provident Fund Contributions and
use that are largely independent of the cash appropriate, the risks specific to the liability. Employees’ Trust Fund Contributions in
inflows of other assets or CGUs. Goodwill Where discounting is used, the increase in accordance with the respective Statutes and
arising from a business combination is the provision due to the passage of time is Regulations.
allocated to CGUs or groups of CGUs that recognised as a finance cost.
are expected to benefit from the synergies 2.4.2 Capital Commitments and
of the combination. All known liabilities have been accounted Contingencies
for in preparing the financial statement. Contingent liabilities are possible
The recoverable amount of an asset or obligations whose existence will be
CGU is the greater of its value in use and 2.4.1 Retirement Benefit Obligations confirmed only by uncertain future events
its fair value less costs to sell. Value in use is (a) Defined Benefit Plan - Gratuity or present obligations where the transfer
based on the estimated future cash flows, Employees are eligible to receive a gratuity of economic benefits is not probable
discounted to their present value using a payment of half month’s salary per year of or cannot be reliably measured. Capital
pre-tax discount rate that reflects current service at the end of service, provided the commitment and contingent liabilities of
market assessments of the time value of employee has provided 5 years of service. the Group are disclosed in the respective
money and the risks specific to the asset or Defined benefit plan is a post-employment notes to the Financial Statements.
CGU. benefit plan other than a defined
contribution plan. The present value of the

2.4.3 Events Subsequent to the (f) Rental Income liability method on temporary differences
Reporting Period Rental income is recognised on an accrual arising between the tax base of assets
The materiality of the events after the basis. and liabilities and their carrying amounts
reporting period has been considered and in the financial statements. Deferred tax is
appropriate adjustments and provisions (g) Other Income determined using tax rates that have been
have been made in the financial statements Other Income is recognised on an accrual enacted or substantially enacted by the
wherever necessary. basis. reporting date and are expected to apply
when the related deferred income tax
2.5 Statement of Profit or Loss and (h) Gains or Losses on the Disposal of asset is realised or the deferred income tax
other Comprehensive Income Property, Plant and Equipment liability is settled.
2.5.1 Revenue from Contracts with Net gains and losses on the disposal of
Customer Property, Plant and Equipment and other The carrying amount of deferred tax assets
Revenue is recognised when the non-current assets including investments is reviewed at each reporting date and
obligation to provide goods and services have been accounted for in the Statement reduced to the extent that it is no longer
is satisfied in accordance with Sri Lanka of Comprehensive Income, having probable that sufficient taxable profit will be
Accounting Standards (SLFRS 15) on deducted from proceeds on disposal, the available to allow all or part of the deferred
Revenue from Contracts with Customers. carrying amount of the assets and related tax asset to be utilised. Unrecognised
The consideration is determined with selling expenses. deferred tax assets are reassessed at each
reference to the amount the group expects reporting date and are recognised to the
to be entitled in exchange for transferring 2.5.2 Expenditure Recognition extent that it has become probable that
the promised goods or services to the Expenses are recognised in the Statement future taxable profits will allow the deferred
customer. of Comprehensive Income on the basis tax assets to be recovered.
of a direct association between the cost
(a) Rendering of Services incurred and the earning of specific items 2.5.4 Earnings per Share
Revenue from rendering of healthcare of income. All expenditure incurred in the The Financial Statements present basic
services is recognised over a period of time. running of the business and in maintaining Earnings per Share (“EPS”) data for its
the property, plant and equipment in a state ordinary shareholders. The EPS is calculated
Group has recognised only the share of of efficiency has been charged to income in by dividing the profit or loss attributable to
hospital charge related to consultancy fee. arriving at the profit for the year. ordinary shareholders of the Company by
The fee collected on behalf of in-house and the number of ordinary shares in issue.
visiting consultants do not form a part of For the purpose of presentation of the
revenue of Group. Statement of Comprehensive Income, 2.5.5 Dividend on Ordinary Shares
the Directors are of the opinion that the Dividend on ordinary shares are recognised
(b) Sale of Medicine and Related function of expenses method, presents as a liability and deducted from equity
products fairly the elements of the Company’s when they are approved by the Company’s
Revenue from the sales of medicine and performance and hence, such presentation shareholders. Interim dividends are
related products is recognised at the point method is adopted. deducted from equity when they are
of sale. declared and are no longer the discretion of
2.5.3 Taxation the Company.
(c) Interest a) Current Taxes
Interest Income is recognised on an accrual The provision for income tax is based on 2.6 The Cash Flow Statements
basis. Interest on financial instruments the elements of income and expenditure 2.6.1 Cash and Cash Equivalents
measured at amortised cost is recognised as reported in the financial statements and Cash and cash equivalents are defined as
using effective interest rate. computed in accordance with the provisions cash in hand, demand deposits and short
of the Inland Revenue Act. term highly liquid investments readily
(d) Dividends convertible to known amounts of cash and
Dividend income is recognised when the b) Deferred Taxation subject to insignificant risk of changes in
Group’s right to receive the payment is Deferred Tax is provided in full, using the value.
established.
For the purpose of cash flow statement,
cash and cash equivalent consists of
cash in hand and deposits in banks net

Our Business
Our Leadership
Governance
Financial Reports
of outstanding bank overdrafts that are management looked at implicitly or accounting policies currently adopted by
repayable on demand and form an integral explicitly promised services including the Group and may have an impact on the
part of the Group’s cash management. customary business practices or policies future financial statements.
of each industry. Having considered the
Investment with short term maturities same, each business then determined SLFRS 16 – Leases
i.e. three months or less from the date the distinct performance obligation SLFRS 16 sets out the principles for the
of acquisitions is also treated as cash associated with the contracts they recognition, measurement, presentation
equivalents. entered into. and disclosure of leases and requires
lessees to account for all leases under a
The cash flow statements are prepared The group evaluated its contract with single on-balance sheet model similar to
using the ‘‘Indirect Method’’ in accordance patients, corporate arrangements and the accounting for finance leases under
with the Sri Lanka Accounting Standard the payment made to the doctors for LKAS 17. The standard includes two
(LKAS 7) on Statement of Cash Flows, the provisioning of medical services. recognition exemptions for lessees – leases
whereby gross cash receipts and gross Under this evaluation, the Group of ’low-value’ assets and short term. At
cash payments on operating activities, revisited its accounting treatment on the commencement date of a lease, a
investing activities and financial activities discounts, offers given to the customers, lessee will recognise a liability to make
are recognised. consultations, and services provided lease payments (i.e., the lease liability) and
under packages. After a detailed an asset representing the right to use the
2.7 New and Amended Standards and impact analysis, the Group concluded underlying asset during the lease term (i.e.,
Interpretations that the adoption of SLFRS 15 did not the right-of use asset).
The Group has adopted SLFRS 15 – have a significant financial impact on its
Revenue from Contracts with Customers existing accounting policy on revenue Lessees will be required to separately
and SLFRS 9 – Financial Instruments from recognition. recognise the interest expense on the
1st April 2018. lease liability and the depreciation expense
SLFRS 9 – Financial Instruments on the right-of-use asset. Lessees will be
SLFRS 15 – Revenue from Contracts with Assessment of Group’s business model also required to re-measure the lease
Customers was performed for classification of financial liability upon the occurrence of certain
SLFRS 15 replaced Sri Lanka Accounting assets from 1st April 2018 and retrospective events (e.g., a change in the lease term, a
Standards (LKAS 18) on Revenue and application made for financial assets that change in future lease payments resulting
related interpretations. SLFRS 15 were not derecognized at the beginning of from a change in an index or rate used to
established a five-step model to account the financial year. Assessment of whether determine those payments). The lessee
for revenue arising from contracts with contractual cash flows on debt instruments will generally recognise the amount of the
customers and requires that revenue be are solely comprise of principal plus interest re-measurement of the lease liability as an
recognised at an amount that reflects the was made based on facts and circumstances adjustment to the right-of-use asset.
consideration to which an entity expects as at the initial recognition of the assets.
to be entitled in exchange for transferring SLFRS 16 is effective for annual periods
goods or services to a customer. SLFRS 15 The classification and measurement beginning on or after 1st January 2019.
required the Group to exercise judgment, requirements of SLFRS 9 did not have a Early application is permitted, but not
taking into consideration all of the relevant material impact on the Group’s results and before an entity applies SLFRS 15. A lessee
facts and circumstances when applying each financial position, therefore the Group has can choose to apply the standard using
step of the model to contracts with their not restated comparative information for either a full retrospective or a modified
customers. prior periods. retrospective approach. The standard’s
transition provisions permit certain reliefs.
The Group carried out an impact analysis of 2.8 Effect of Sri Lanka Accounting
the possible impact from adoption of the Standards Issued but not yet This accounting standard is not expected
SLFRS 15 as follows. Effective to have a material effect on the Financial
The following SLFRS have been issued Statements of the Group. Pending the
Identified all the goods or services, by the Institute of Chartered Accountants detailed review of such standards and
or contract deliverables, which have of Sri Lanka that have an effective date interpretations, the extent of the impact has
been promised within usual course in the future and have not been applied not been determined by the management.
of carrying out the business in each in preparing these Financial Statements.
sector. In determining this, the Those SLFRS will have an effect on the

Group Company
For the Year ended 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
3 REVENUE
Healthcare Services 5,806,352,697 5,733,404,060 3,449,632,770 3,408,056,199
4 OTHER OPERATING INCOME

Deferred Income of Residential Fees - - 1,790,286 1,455,286
Sundry Income 46,247,002 33,616,184 24,730,851 14,892,623
Profit/ (Loss) on Disposal of Property, Plant and Equipment 9,804,509 1,866,398 6,023,138 2,115,300
56,051,511 35,482,582 32,544,275 18,463,209
5 FINANCE COST
Loan Interest 93,083,942 90,483,791 78,724,904 82,804,105
Debenture Interest - 5,599,950 - 5,599,950
Interest Expenses on Overdrafts 39,917,112 23,971,737 39,673,536 23,850,166
Other Interest 76,791 129,511 76,792 129,512
Bank Charges 2,103,703 1,282,270 1,587,072 869,949
Loan Processing Expenses 628,250 257,167 568,250 257,167
135,809,798 121,724,428 120,630,554 113,510,850
5.1 FINANCE INCOME

Interest Income 61,031,907 63,877,920 9,600,073 12,158,220
Dividend Income 429,136 573,439 200,377,660 196,675,126
61,461,043 64,451,359 209,977,733 208,833,346

Our Business
Our Leadership
Governance
Financial Reports
6 INVESTMENT IN EQUITY ACCOUNTED INVESTEE

The Company has a 46% interest in Ceygen Biotech (Pvt) Ltd, which is engaged in the production and supply of Molecular Biology,
Biochemical and Biotechnology reagents for molecular diagnostic and research purposes.
Ceygen Biotech (Pvt) Ltd is a private limited liability company. The following table illustrates summarised financial information of the
Ceygen Biotech (Pvt) Ltd:
Group Company
For the Year ended 31st March, Note 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Current Assets 8,530,862 7,240,099 - -

Non-Current Assets 4,786,445 4,974,541 - -
Current Liabilities 1,768,768 2,181,474 - -
Equity 11,548,538 10,033,165 - -
Profit for the Year 1,515,374 2,002,423 - -

Share of the Profit from Equity Accounted Investee 697,090 817,639 - -
Carrying Amount of the Investment 5,497,425 4,800,335 - -
6.1 Carrying amount of Equity Accounted Investee as at the

end of Year is made up as follows;
Balance at the beginning of the Year 4,800,335 3,982,696 - -
Share of Profit from Equity Accounted Investee 697,090 921,139 - -
Dividend Income - (103,500)
Balance at the end of the Year 5,497,425 4,800,335 - -
7 PROFIT/ (LOSS) FROM ORDINARY ACTIVITIES BEFORE TAXATION

Profit / (loss) from ordinary activities before taxation is stated after charging all expenses including the following.
Group Company
Rs. Rs. Rs. Rs.
Directors' Fees and Remuneration 46,921,792 39,520,948 43,881,792 36,281,104

Auditors Remuneration - Internal 2,744,133 1,866,853 1,645,022 801,640
- External 1,891,759 1,660,058 1,102,475 900,000
Depreciation 425,281,296 368,322,864 231,412,384 184,980,411
Defined Benefit Plan Costs - Gratuity 41,804,280 39,664,088 35,763,580 33,919,200
Legal Fees 8,181,527 2,986,106 4,691,639 2,340,106
Salaries 1,160,982,649 1,040,880,838 700,276,056 669,130,279
Employee's Provident Fund 90,017,239 84,182,142 72,447,688 68,036,753
Employee's Trust Fund 23,521,792 22,021,710 18,091,076 16,985,801

8 INCOME TAX EXPENSES
Group Company
Rs. Rs. Rs. Rs.
Income Tax (Note 8.1) 139,225,406 109,375,176 58,713,517 33,873,034
Deferred Income Tax

Decrease/ (Increase) in Deferred Tax Assets (12,333,459) (27,154,537) (11,835,699) (27,154,537)
(Decrease)/ Increase in Deferred Tax Liabilities 46,050,568 35,226,137 55,236,938 85,880,533
Deferred Taxation Charge/ (Reversal) 33,717,109 5,753,000 43,401,239 58,725,996
Income Tax Expense 172,942,515 115,128,176 102,114,756 92,599,030
8.1 Reconcilation between Current Tax expense and

the Accounting profit
Accounting Profit before Taxation 549,261,247 603,001,462 313,754,708 253,969,997
Consolidation Adjustments 205,590,971 199,736,945 - -
Income not Subject to Taxation (258,321,964) (243,608,188) (200,377,660) (196,675,126)
Aggregated Disallowed Expenses 538,209,269 478,723,153 304,441,263 272,624,494
Aggregated Allowed Expenses (516,259,352) (487,646,322) (297,909,430) (258,203,151)
Taxable Profit 518,480,171 550,207,050 119,908,881 71,716,214
Statutory Tax - Business Income 100,217,217 69,978,102 30,886,466 8,605,946

Statutory Tax - Other Income 13,869,158 19,272,613 2,688,020 5,142,627
Dividend Tax 25,139,031 20,124,461 25,139,031 20,124,461
Income Tax Provision 139,225,406 109,375,176 58,713,517 33,873,034
Parent Company - Ceylon Hospitals PLC

The Company is liable for Income Tax for the year of assessment 2018/19 at the rate of 28%.
Durdans Heart Centre (Pvt) Ltd.

Durdans Medical and Surgical Hospitals (Pvt) Ltd


Our Business
Our Leadership
Governance
Financial Reports
9 EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit for the year attributable to ordinary shareholders over the weighted
average number of ordinary shares outstanding during the year.
Group Company
Rs. Rs. Rs. Rs.
Profit Attributable to Equity Holders of the Parent (Rs.) 321,768,112 401,949,561 211,639,953 161,370,967
Weighted Average Number of Shares Outstanding during the Year 33,872,726 33,872,726 33,872,726 33,872,726
Earnings Per Share (Rs.) 9.50 11.87 6.25 4.76
10 PROPERTY, PLANT AND EQUIPMENT

10.1 Group
Freehold Medical & Furniture Computer Motor Motor Vehicles Capital Total
Land Other & Fittings Equipment Vehicles on Finance WIP
& Buildings Equipment Lease
Cost/ Valuation
Balance as at 01st April 2017 4,804,518,145 2,606,805,826 222,410,267 170,967,142 104,712,819 7,050,000 377,846,384 8,294,310,583
Additions 9,002,112 177,502,336 8,014,388 21,010,664 24,427,425 - 230,094,449 470,051,374
Transfer from Capital Work in 547,884,874 20,991,939 42,930 - - - (568,919,743) -
Progress
Disposals/ Transfers - (111,993,837) - - (19,162,466) - - (131,156,303)
Balance as at 31st March 2018 5,361,405,132 2,693,306,264 230,467,584 191,977,806 109,977,778 7,050,000 39,021,090 8,633,205,654
Additions 3,843,035 484,769,190 14,818,242 26,155,932 18,050,000 - 315,843,608 863,480,007
Transfer from Capital Work in 78,345,697 28,500 - - - - (78,374,197) -
Progress
Disposals/ Transfers - (19,299,024) (4,388,133) (1,889,396) (5,459,283) (7,050,000) - (38,085,836)
Balance as at 31st March 2019 5,443,593,864 3,158,804,930 240,897,692 216,244,342 122,568,495 - 276,490,501 9,458,599,825
Accumulated Depreciation
Balance as at 01st April 2017 13,107,520 1,583,088,977 117,365,678 97,508,195 30,953,095 6,809,027 - 1,848,832,491
Depreciation Charge for the Year 60,153,560 257,023,459 18,585,070 18,644,173 13,675,628 240,973 - 368,322,864
Balance as at 31st March 2018 73,261,080 1,730,056,088 135,950,748 116,152,367 31,877,451 7,050,000 - 2,094,347,735
Disposals/ Transfers - (7,021,404) - - (5,459,283) (7,286,250) - (19,766,937)
Balance as at 31st March 2019 154,401,529 2,005,065,007 155,336,185 137,107,617 47,951,756 - - 2,499,862,094
Net Book Value

At 31st March 2019 5,289,192,334 1,153,739,923 85,561,507 79,136,726 74,616,739 - 276,490,501 6,958,737,731
At 31st March 2018 5,288,144,051 963,250,176 94,516,836 75,825,439 78,100,327 - 39,021,090 6,538,857,919

10.2 Company
Freehold Medical & Furniture Computer Motor Motor Vehicles Capital Total
Land Other & Fittings Equipment Vehicles on Finance WIP
& Buildings Equipment Lease
Cost/ Valuation
Balance as at 01st April 2017 2,753,077,974 1,297,570,684 139,632,006 159,786,825 48,149,451 3,150,000 377,846,384 4,779,213,324
Additions 8,713,232 110,766,657 6,837,585 18,631,988 24,427,425 - 230,094,449 399,471,336
Transfer from Capital Work in 547,884,874 20,991,939 42,930 (568,919,743) -
Progress
Balance as at 31st March 2018 3,309,676,081 1,321,738,277 146,512,520 178,418,812 53,579,400 3,150,000 39,021,090 5,052,096,181
Additions 3,843,035 249,716,931 13,601,949 24,532,997 3,150,000 - 315,204,938 610,049,850
Transfer from Capital Work in 78,345,697 28,500 - (78,374,197) -
Progress
Disposals/ Transfers - (7,021,404) - - - (3,150,000) - (10,171,404)
Balance as at 31st March 2019 3,391,864,812 1,564,462,304 160,114,469 202,951,810 56,729,400 - 275,851,831 5,651,974,627
Accumulated Depreciation
Balance as at 01st April 2017 10,983,311 841,391,989 87,481,667 85,145,537 13,633,769 971,250 - 1,039,607,522
Balance as at 31st March 2018 33,008,007 860,126,314 101,828,780 102,051,461 6,084,868 1,212,223 - 1,104,311,654
Disposals/ Transfers - (7,021,404) - - - (1,448,473) - (8,469,877)
Balance as at 31st March 2019 76,016,540 997,973,253 118,544,455 121,749,881 12,970,031 - - 1,327,254,161
Net Book Value

At 31st March 2019 3,315,848,273 566,489,051 41,570,014 81,201,929 43,759,369 - 275,851,831 4,324,720,466
At 31st March 2018 3,276,668,074 461,611,963 44,683,740 76,367,351 47,494,532 1,937,777 39,021,090 3,947,784,527
10.3 Revaluation of Land and Buildings

The Company uses the revaluation model of measurement to account for land and buidlings. In this regard the Company engaged Mr.
P. B. Kalugalgedera an independent, Chartered Valuer and Surveyor to determine the fair value of its land and buildings.
Valuation is as defined in the Sri Lanka Accounting Standards (SLFRS 13) on Fair Value Measurement. The valuation is based on the
price that would be recieved to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date in the principal market or in the most advantages market under the current market conditions.
The Carrying Value of the Assets if revaluation has not been carried out would be as follows.
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Description
Land 1,029,843,737 1,029,843,737 613,150,237 613,150,237
Building 1,873,082,675 2,174,063,344 931,816,681 1,079,335,842
Total 2,902,926,412 3,203,907,081 1,544,966,918 1,692,486,079

Our Business
Our Leadership
Governance
Financial Reports
10 PROPERTY, PLANT AND EQUIPMENT CONTD.

10.4 The following properties are fair valued and recorded under freehold land and buildings. Fair Value measurement disclosure for
revalued land and buildings based on unobservable inputs are as follows
Company Property Location Number of Extent Independent Valuation Input Significant Effective Range Fair Value
Buildings Valuer unobservable date of
per Land Input Revaluation
Rs. Rs.
Ceylon Land No 03, 01 0A-3R-30.24P Mr. P. B. Open market Land value per 31st March 12,000,000 1,888,120,000
Hospitals PLC Alfred Place, Kalugalgedera based evidence perch 2017 -15,000,000
Colombo 03
No 05, 01 0A-0R-32.68P Mr. P. B. Open market Land value per 31st March 12,000,000 424,840,000
Alfred Place, Kalugalgedera based evidence perch 2017 -15,000,000
Colombo 03
Building No 03, 93,954 sq. ft. Mr. P. B. Direct Capital Rate per sq. ft. 31st March 2,500 389,285,000
Alfred Place, Kalugalgedera Comparison 2017 - 6,000
Colombo 03 method adopting
the depreciated
value of building
Durdans Land No 03, 01 0A-1R-26.54 - Mr. P. B. Open market Land value per 31st March 12,000,000 831,750,000
Medical and Alfred Place, No 04, 6th Lane Kalugalgedera based evidence perch 2017 -15,000,000
Surgical Hospital Colombo 03
(Pvt) Ltd
Building No 03, 211,552 sq. ft. Mr. P. B. Direct Capital Rate per sq. ft. 31st March 2,500 1,269,312,000
Alfred Place, Kalugalgedera Comparison 2017 - 6,000
Colombo 03 method adopting
the depreciated
value of building
The surplus arising from the revaluation net of deferred tax is recognised in the Other Comprehensive Income and transferred to
Revaluation Reserve in Equity.
11 INVESTMENTS IN SUBSIDIARIES
11.1 Company
As at 31st March, 2019 2018

Number Holding Carrying Directors Number of Holding Carrying Directors
of Shares Value Valuation Shares Value Valuation
% Rs. Rs. % Rs. Rs.
Durdans Heart Centre (Pvt) Ltd 11,362,035 81.16 130,091,410 130,091,410 11,362,035 81.16 130,091,410 130,091,410
Durdans Medical and Surgical 120,896,033 83.30 1,327,500,014 1,327,500,014 120,896,033 82.10 1,327,500,014 1,327,500,014
Hospital (Pvt) Ltd
132,258,068 1,457,591,424 1,457,591,424 132,258,068 1,457,591,424 1,457,591,424
Directors’ valuation of investment in un-quoted shares have been determined based on the cost of the investments.

Group Company
Rs. Rs. Rs. Rs.
12 INVENTORIES
Drugs and Dressings 119,677,707 116,212,773 40,762,624 41,755,582
Lab Reagents and Consumables 169,106,857 170,302,411 169,106,857 166,508,981
Pantry Stocks 3,145,853 1,557,710 1,476,198 1,539,045
General Stocks 19,167,331 16,436,833 19,167,332 16,436,833
Less: Provision for slow moving and obsolete stock (1,800,000) - (1,800,000) -
309,297,748 304,509,727 228,713,011 226,240,442
13 TRADE AND OTHER RECEIVABLES

Trade Debtors 196,034,886 203,942,887 110,281,868 130,270,409
Other Receivables 26,717,244 21,368,709 25,547,555 19,975,574
Less : Impairment Allowance for Bad Debts (7,369,149) (8,136,487) (3,700,061) (5,688,234)
215,382,981 217,175,109 132,129,362 144,557,750
13.1 ADVANCES AND PREPAYMENTS

Advances 74,520,355 76,680,483 63,260,822 58,938,978
Prepayments 47,993,262 59,216,037 30,975,093 39,230,182
122,513,617 135,896,520 94,235,915 98,169,160
Classification of Trade and Other Receivables

Trade receivables are amounts due from customers for services rendered in the ordinary course of business. They are generally due
for settlement within 30 days and therefore are all classified as current. Trade receivables are recognised initially at the amount of
consideration that is unconditional unless they contain significant financing components, when they are recognised at fair value. The
group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently
at amortised cost using the effective interest method. Details about the group’s impairment policies and the calculation of the loss
allowance are provided in Note 33.3.
Fair Value of Trade and Other Receivables

Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.
Impairment and Risk Exposure

Information about the impairment of trade receivables and the group’s exposure to credit risk can be found in Note 33.3


Our Business
Our Leadership
Governance
Financial Reports
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
14 RELATED PARTY TRANSACTIONS

14.1 AMOUNTS DUE FROM RELATED PARTIES
Durdans Management Services Ltd 24,530,446 2,315,388 2,255,726 2,315,388

Durdans Heart Centre (Pvt) Ltd - - 69,812,035 46,542,314
Durdans Medical and Surgical Hospital (Pvt) Ltd - - 91,774,160 191,202,415
Amrak Institute of Medical Sciences (Pvt) Ltd - - 165,000 -
Ceygen Biotech (Pvt) Ltd 1,375,900 1,550,762 1,375,900 1,550,762
25,906,346 3,866,151 165,382,821 241,610,879
14.2 AMOUNTS DUE TO RELATED PARTIES

Durdans Management Services Ltd 4,208,202 1,764,696 594,288 -
Durdans Heart Centre (Pvt) Ltd - - 7,512,227 27,442,228
Durdans Medical and Surgical Hospital (Pvt) Ltd - - 99,595,547 302,305,682
4,208,202 1,764,696 107,702,062 329,747,910
15 CASH AND CASH EQUIVALENTS

Favorable Cash and Cash Equivalent Balances 403,497,054 203,386,744 62,263,772 58,573,161
16 STATED CAPITAL
33,872,726 Shares (2017/18 - 33,872,726) 916,366,104 916,366,104 916,366,104 916,366,104
17 REVALUATION RESERVE
Revaluation Reserve 1,986,852,512 1,986,852,512 1,564,589,060 1,564,589,060
1,986,852,512 1,986,852,512 1,564,589,060 1,564,589,060

Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
18 REVENUE RESERVES
18.1 General Reserve 4,822,163 4,822,163 4,822,163 4,822,163
4,822,163 4,822,163 4,822,163 4,822,163
18.2 Accumulated Profits

Balance at the beginning of the Year 2,097,357,312 1,836,790,476 1,424,770,575 1,383,494,507
Profit for the Year 321,768,112 401,949,561 211,639,953 161,370,967
Share Buy-back (43,496,384) (19,859,256) - -
Dividend Paid
- Ordinary Shares (121,941,814) (121,941,814) (121,941,814) (121,941,814)
- Net Gain/ (Loss) from Gratuity Valuation (20,755,123) 418,345 (17,285,774) 1,846,914
Balance at the end of the Year 2,232,932,104 2,097,357,312 1,497,182,940 1,424,770,575
Total Revenue Reserves 2,237,754,267 2,102,179,475 1,502,005,103 1,429,592,738
19 NON-CONTROLLING INTEREST
19.1 Proportion of Equity Interest held by Non-Controlling Interest

Rs. Rs.
Company Name
Durdans Heart Centre (Pvt) Ltd 18.84% 18.84%
Durdans Medical and Surgical Hospital (Pvt) Ltd 16.70% 17.90%
Amrak Institute of Medical Sciences (Pvt) Ltd 54.30% -
19.2 Accumulated Balances of Material Non-Controlling Interest

Rs. Rs.
Balance at the beginning of the Year 561,186,237 529,100,567

Profit for the year 54,550,619 85,923,724
Increase/ (Decrease) in the Share of Minority Interest (6,356,392) (3,738,125)
- Deferred Tax Effect on Revaluation Gain - (9,868,474)
- Net Gain/ (Loss) from Gratuity valuation (738,961) (297,858)
- Net Gain/ (Loss) on Available for Sale Financial Assets (295,788) 38,759
Dividend Paid (43,602,025) (39,972,357)
Balance at the end of the Year 564,743,689 561,186,237

Our Business
Our Leadership
Governance
Financial Reports
19 NON-CONTROLLING INTEREST CONTD.

19.3 Financial Information of Subsidiaries that have Material Non-Controlling Interests
As at 31st March, Durdans Medical Durdans Heart

and Surgical Center (Pvt) Ltd
Hospitals (Pvt) Ltd
Summarised Statement of Total Comprehensive Income for year ended 31st March 2019
Total Comprehensive Income Attributable to Non-Controlling Interest 60,521,825 6,262,357
Summarised Statement of Financial Position as at 31st March 2019

Non-Current Assets 2,491,038,696 367,955,083
Current Assets 994,608,339 302,059,421
Non-Current Liabilities 211,719,640 63,226,682
Current Liabilities 275,138,388 255,953,467
Equity 2,998,789,007 350,834,356
Net Assets attributable to Non-Controlling Interest 500,681,409 66,106,339
20 FINANCIAL ASSETS AND FINANCIAL LIABILITIES

20.1 Summary of Financial Assets and Liabilities
Group Company
As at 31st March, Notes 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Financial Assets
Financial Assets at Amortised Cost
Trade and Other Receivables 13 215,382,981 217,175,109 132,129,362 144,557,750
Other Financial Assets at Amortised Cost 20.2.1 709,802,945 - 121,033,618 -
Loans and Receivables 20.2.2 - 657,805,380 - 103,323,325
Cash and Cash Equivalents 15 403,497,054 203,386,744 62,263,772 58,573,161
Financial Assets at Fair Value through Other
Comprehensive Income (FVOCI) 20.2.3 24,623,624 - 14,231,976 -
Available-for-Sale Investments 20.2.4 - 7,824,804 - 1,204,000
1,353,306,604 1,086,192,037 329,658,727 307,658,235
Financial Liabilities
Financial Liabilities at Amortised Cost
Trade Payables 24 282,832,723 234,377,850 145,843,450 122,635,600
Other Payables 24 267,808,570 254,739,211 155,438,685 151,808,283
550,641,293 489,117,061 301,282,135 274,443,882
The Group’s exposure to various risks associated with the financial instruments is discussed in Note 33. The maximum exposure to
credit risk at the end of the reporting period is the carrying amount of each class of financial assets mentioned above.

20.2 Financial Assets
20.2.1 Financial Assets at Amortised Cost
Classification of Financial Assets at Amortised Cost
The Group classifies its Financial Assets at amortised cost only if both of the following criteria are met:
1 The asset is held within a business model whose objective is to collect the contractual cash flows, and
2. The contractual terms give rise to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
After initial measurement, these are subsequently measured at amortised cost (gross carrying amount using the Effective Interest Rate,
less provision for impairment). Amortised cost is calculated by taking into account any discount or premium on acquisition and fees
and costs that are an integral part of the Effective Interest Rate (“EIR”). The amortisation is included in “Interest Income” while the
losses arising from impairment are recognised in “impairment charges for loans and other losses” in the Income Statement.
This comprises Financial Investments – Loans and receivables and held to maturity investments that were previously classified under
Sri Lanka Accounting Standards (LKAS 39) on Financial Instruments: Recognition and Measurement.
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.

Refundable Deposits 50,800,953 - 43,605,529 -
Deposits in Financial Institutions 659,001,992 - 77,428,088 -
Total Financial Assets at Amortised Cost 709,802,945 - 121,033,617 -
20.2.2 Loans and Receivables

Classification of Loans and Receivables Financial Assests
Financial Assets classified as loans and receivables included refundable deposits and deposits in Financial Institutions. After initial
measurement, these are subsequently measured at gross carrying amount using the EIR, less provision for impairment. EIR was
calculated by taking into account any discount or premium on acquisition and fees and costs. The amortisation is included in “Interest
Income” while the losses arising from impairment are recognised in “Impairment charges and other losses” in the Income Statement.
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Loans and Receivables Financial Assests

Refundable Deposits - 39,905,645 - 32,496,971
Deposits in Financial Institutions - 617,899,735 - 70,826,354
Total Loans and Receivable Financial Assets - 657,805,380 - 103,323,325

Our Business
Our Leadership
Governance
Financial Reports
20 FINANCIAL ASSETS AND FINANCIAL LIABILITIES CONTD.

20.2.3 Financial Assets at Fair Value through Other Comprehensive Income
Classification of Financial Assets at Fair Value through Other Comprehensive Income
Upon initial recognition, the Group elects to classify irrevocably some of its equity investments held for strategic purpose, as
equity instruments at FVOCI when they meet the definition of Equity under Sril Lanka Accounting Standard (LKAS 32) on Financial
Instruments: Presentation and are not held for trading. These are strategic investments and the group considers this classification to
be more relevant.
Gains and losses on these equity instruments are never recycled to profit or loss instead directly transferred to retained earnings
at the time of derecognition. Dividends are recognised in profit or loss as Finance income when the right of the payment has been
established. Equity instruments at FVOCI are not subject to an impairment assessment.
These instruments comprise quoted and unquoted shares that had been previously classified as available-for-sale under LKAS 39.
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Financial Assets at FVOCI

Equity Shares in Listed Companies 10,404,864 - 696,000 -
Equity Shares in Non-Listed Companies 13,500,000 - 13,500,000 -
Investment in Unit Trust 718,760 - 35,976 -
Total Financial Assets at FVOCI 24,623,624 - 14,231,976 -
20.2.4
Available-for-Sale Investments
As per LKAS 39, Available-for-sale financial investments included equity share investments. Equity investments classified as available
for sale were those which were neither classified as held for trading nor designated at fair value through profit or loss.
The Group had not designated any loans or receivables as available-for-sale. After initial measurement, available-for-sale financial
investments are subsequently measured at fair value.
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Equity Shares in Listed Companies - 7,824,804 - 1,204,000

Total Available-for-Sale Investments - 7,824,804 - 1,204,000

20.2.5 Financial Asssets Age Analysis
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Current Financial Assets

Deposits in Financial Institutions 659,001,992 617,899,735 77,428,088 70,826,354
Total Current Financial Assets 659,001,992 617,899,735 77,428,088 70,826,354
Non-Current Financial Assets

Refundable Deposits 50,800,953 39,905,645 43,605,529 32,496,971
Equity Shares in Listed Companies 10,404,864 7,824,804 696,000 1,204,000
Equity Shares in Non-Listed Companies 13,500,000 - 13,500,000 -
Investment in Unit Trust 718,760 - 35,976 -
Total Non-Current Financial Assets 75,424,577 47,730,448 57,837,505 33,700,971
Total Other Financial Assets 734,426,568 665,630,183 135,265,593 104,527,325
Risk exposure and fair value measurements

Information about the Group’s exposure to price risk is provided in Note 33.5.3.
20.3 (a) Interest Bearing Loans and Borrowings

Group
2019 2018
Note Repayable Repayable Total Repayable Repayable Total
within One Year after One Year within One Year after One Year
Bank Loans 20.3.1 222,367,951 592,577,563 814,945,514 423,572,303 284,060,128 707,632,433

Finance Lease 20.3.2 - - - 592,057 - 592,057
222,367,951 592,577,563 814,945,514 424,164,360 284,060,128 708,224,490

Our Business
Our Leadership
Governance
Financial Reports

20.3.1 Bank Loans - Group
Balance at the Loans Obtained Repayment Balance at the

beginning of the Year end of the Year
Rs. Rs. Rs. Rs.
DFCC Bank 252,627,754 336,786,394 (140,181,349) 449,232,800

Nations Trust Bank 3,650,009 - (3,650,009) -
National Development Bank - Revolving Loan 30,000,000 120,000,000 (120,000,000) 30,000,000
Union Bank - Revolving Loan 15,000,000 15,000,000 (15,000,000) 15,000,000
Hatton National Bank - 26,611,631 - 26,611,631
Seylan Bank 387,054,669 53,265,150 (248,456,699) 191,863,120
People's Bank 19,300,000 90,908,264 (7,970,299) 102,237,964
707,632,433 642,571,439 (535,258,356) 814,345,515
20.3.2 Finance Lease - Group

Rs. Rs. Rs. Rs.
National Development Bank 628,043 - (628,043) -

Gross Liability 628,043 - (628,043) -
Finance Charges Allocated to Future Years

National Development Bank (35,985) - 35,985 -
(35,985) - 35,985 -
Present Value of Lease Creditors 592,058 - (592,058) -

Bank Loans - Group
Lender Total Interest Date Repayment Security

Outstanding Rate Obtained Terms
Rs. %
DFCC Bank
- 36 Mn 33,000,000 AWDR 09th April 2018 In 60 equal monthly capital installments of Rs. Mortgage over
+ 5.5% 600,000 commencing after a grace period of 6 Equipment financed
months by the Loan
- 50 Mn 4,166,652 AWDR 16th January In 48 equal monthly installments of Rs. 1,041,667 Mortgage over
+ 5.5% 2015 commencing after a grace period of 12 months Equipment financed
by the Loan
- 60 Mn 55,000,000 AWPLR 09th April 2018 In 60 equal monthly capital installments of Rs. Loan Agreement for
+ 1.5% 1,000,000 commencing after a grace period of 6 Rs. 60 Mn
months
- 75 Mn 8,495,664 AWPLR 19th July 2018 In 48 equal monthly installments of Rs. 1,563,000 Loan Agreement for
+ 1.4% from the date of first disbursement Rs. 75 Mn
- 125 Mn 61,495,172 AWPLR 01st In 36 equal monthly installments of Rs. 3,472,222 Loan Agreement for
+ 1.6% September commencing after a grace period of 12 months from Rs. 125 Mn
2016 the date of first disbursement
- 150 Mn 2,500,000 4-week 24th October In 60 equal monthly installments of Rs. 2,500,000 Primary mortgage
AWPLR + 2013 with a grace period of 10 months over movable
2% machnery financed by
the loan belonging to
Ceylon Hospitals PLC
- 150 Mn 102,976,090 AWPLR 01st In 48 equal monthly installments of Rs. 3,125,000 Corporate Guarantee
+ 1.6% September commencing after a grace period of 12 months from from Durdans Medical
2016 the date of first disbursement and Surgical Hospital
(Pvt) Ltd for Rs. 150 Mn
- 750 Mn 181,599,222 AWPLR 10th April 2018 In 72 equal monthly installments of Rs. 5,555,556 Corporate Guarantee
+ 1.4% commencing after a grace period of 24 months from from Durdans Medical
the date of first disbursement and Surgical Hospital
(Pvt) Ltd for Rs. 750 Mn
National Development Bank

- 30 Mn 30,000,000 Money 05th April 2013 Repayable on demand Revolving Loan Facility
Market
Loan Rate
Hatton National Bank

- 92 Mn 26,611,631 AWPLR + 15th May 2019 In 59 equal monthly installments of Rs. 1,533,350 and Loan Agreement for
1.25% final installments of Rs. 1,532,350 with a grace period Rs. 92 Mn
of 6 months

Our Business
Our Leadership
Governance
Financial Reports

Bank Loans - Group Contd.

Rs. %
Union Bank
- 15 Mn 15,000,000 Money 05th In 1-30 days with the option to rollover up to a Primary floating
Market December maximum of 90 days Mortgage Bond over
Interest 2014 stock comprising of
Rate medicine drugs and
assignment over book
debts
Seylan Bank
- 475 Mn 191,863,120 AWDR + 05th October Rs. 125 Mn Bullet payment within 24 months (i) Corporate
3% 2015 Guarantee from
In 24 equal monthly installments of Rs. 2,500,000 and Durdans Heart
24 equal monthly installments of Rs. 3,750,000 after a Centre (Pvt) Ltd for
grace period of 12 months Rs. 125 Mn
(ii) Loan Agreement
In 24 equal monthly installments of Rs. 3,500,000, form for Rs. 125
12 equal monthly installments of Rs. 4,750,000, 12 Mn
equal monthly installments of Rs. 4,800,000 and one (iii) Corporate
installment of Rs. 6,200,000 after a grace period of Guarantee from
12 months Durdans Medical
and Surgical
Hospital (Pvt) Ltd
for Rs. 350 Mn
(iv) Loan Agreement
for Rs. 150 Mn
(v) Loan Agreement
for Rs. 200 Mn
People’s Bank
- 50 Mn 42,029,701 AWPLR + 20th In 53 equal monthly installments of Rs. 925,000 and Loan Agreement for
1.5% December final installments of Rs. 975,000 with a grace period Rs. 50 Mn
2017 of 6 months
- 100 Mn 60,208,263 AWPLR + 22nd May 2018 In 53 equal monthly installments of Rs. 1,850,000 and Loan Agreement for
1.25% final installment of Rs. 1,950,000 with a grace period Rs. 100 Mn
of 6 months
Total 814,945,514

20.3 (b) Interest Bearing Loans and Borrowings
Company
2019 2018
Note Repayable Repayable Total Repayable Repayable Total
within One Year after One Year within One Year after One Year
Bank Loans 20.3.3 201,776,300 521,002,563 722,778,863 387,461,193 279,893,472 667,354,665

Finance Lease 20.3.4 - - - 592,057 - 592,057
201,776,300 521,002,563 722,778,863 388,053,250 279,893,472 667,946,723
20.3.3 Bank Loans - Company

Rs. Rs. Rs. Rs.
DFCC Bank 235,961,098 240,786,394 (119,681,345) 357,066,148

Nations Trust Bank 3,650,009 - (3,650,009) -
National Development Bank - Revolving Loan 30,000,000 120,000,000 (120,000,000) 30,000,000
Union Bank - Revolving Loan 15,000,000 15,000,000 (15,000,000) 15,000,000
Hatton National Bank - 26,611,631 - 26,611,631
Seylan Bank 363,443,558 53,265,150 (224,845,588) 191,863,120
People's Bank 19,300,000 90,908,264 (7,970,299) 102,237,964
667,354,665 546,571,439 (491,147,241) 722,778,863

Our Business
Our Leadership
Governance
Financial Reports

20.3.4 Finance Lease - Company

Rs. Rs. Rs. Rs.
National Development Bank 628,043 - (628,043) -

Gross Liability 628,043 - (628,043) -
Finance Charges Allocated to Future

Years
National Development Bank (35,985) - 35,985 -
(35,985) - 35,985 -
Present Value of Lease Creditors 592,058 - (592,058) -
Bank Loans - Company

Rs. %
DFCC
Bank
- 75 Mn 8,495,664 AWPLR + 19th July 2018 In 48 equal monthly installments of Loan Agreement for
1.4% Rs. 1,563,000 from the date of first Rs. 75 Mn
disbursement
- 125 Mn 61,495,172 AWPLR + 01st In 36 equal monthly installments of Loan Agreement for
1.6% September Rs. 3,472,222 commencing after a grace Rs. 125 Mn
2016 period of 12 months from the date of first
disbursement
- 150 Mn 2,500,000 4-week 24th October In 60 equal monthly installments of Primary mortgage over
AWPLR + 2013 Rs. 2,500,000 with a grace period of 10 movable machnery financed by
2% months the loan belonging to Ceylon
Hospitals PLC
- 150 Mn 102,976,090 AWPLR + 01st In 48 equal monthly installments of Corporate Guarantee from
1.6% September Rs. 3,125,000 commencing after a grace Durdans Medical and Surgical
2016 period of 12 months from the date of first Hospital (Pvt) Ltd for Rs. 150 Mn
disbursement
- 750 Mn 181,599,222 AWPLR + 10th April 2018 In 72 equal monthly installments of Corporate Guarantee from
1.4% Rs. 5,555,556 commencing after a grace Durdans Medical and Surgical
period of 24 months from the date of first Hospital (Pvt) Ltd for Rs. 750 Mn
disbursement

Rs. %
National Development Bank

- 30 Mn 30,000,000 Money 05th April 2013 In 1-30 days with the option to rollover up Revolving Loan Facility
Market to a maximum of 90 days
Loan Rate
Hatton National Bank

- 92 Mn 26,611,631 AWPLR + 15th May In 59 equal monthly installments of Loan Agreement for Rs. 92
1.25% 2019 Rs. 1,533,350 and final installments of Mn
Rs. 1,532,350 with a grace period of 6
months
Union Bank
- 15 Mn 15,000,000 Money 05th In 1-30 days with the option to rollover Primary floating Mortgage
Market December up to a maximum of 90 days Bond over stock comprising of
Interest 2014 medicine drugs and assignment
Rate over book debts
Seylan Bank
- 475 Mn 191,863,120 AWDR + 05th October Rs. 125 Mn Bullet payment within 24 months (i) Corporate Guarantee from
3% 2015 Durdans Heart Centre
In 24 equal monthly installments of (Pvt) Ltd for Rs. 125 Mn
Rs. 2,500,000 and 24 equal monthly (ii) Loan Agreement form for
installments of Rs. 3,750,000 after a grace Rs. 125 Mn
period of 12 months (iii) Corporate Guarantee
from Durdans Medical and
In 24 equal monthly installments of Surgical Hospital (Pvt) Ltd
Rs. 3,500,000, 12 equal monthly installments for Rs. 350 Mn
of Rs. 4,750,000, 12 equal monthly (iv) Loan Agreement for
installments of Rs. 4,800,000 and one Rs. 150 Mn
installment of Rs. 6,200,000 after a grace (v) Loan Agreement for
period of 12 months Rs. 200 Mn
People’s Bank
- 50 Mn 42,029,701 AWPLR + 20th In 53 equal monthly installments of Rs. Loan Agreement for
1.5% December 925,000 and final installments of Rs. 975,000 Rs. 50 Mn
2017 with a grace period of 6 months
- 100 Mn 60,208,263 AWPLR + 22nd May 2018 In 53 equal monthly installments of Rs. Loan Agreement for
1.25% 1,850,000 and final installment of Rs. Rs. 100 Mn
1,950,000 with a grace period of 6 months
Total 722,778,863

Our Business
Our Leadership
Governance
Financial Reports

20.4 Fair Value - Group
Set out below is a comparison by class of the carrying amounts and fair values of the Group’s financial instruments that are carried in
the financial statements.
Carrying Amount
Amortised Fair Value Fair Value Total
Cost through Other through Profit Fair Value
Notes
Comprehensive or Loss
Income
Rs. Rs. Rs. Rs. Rs.
As at 31st March 2019

Financial Assets
Trade and Other Receivables 13 215,382,981 - - 215,382,982 215,382,982
Prepayments 13.1 122,513,617 - - 122,513,617 122,513,617
Other Financial Assets 20.2 709,802,945 24,623,624 - 734,426,568 734,426,568
Cash and Cash Equivalents 15 403,497,054 - - 403,497,054 403,497,054
1,451,196,597 24,623,624 - 1,475,820,221 1,475,820,221
Interest Bearing Loans and Borrowings 20.3.1 814,945,515 - - 814,945,515 814,945,515
Trade and Other Payables 24 550,641,293 - - 550,641,293 550,641,293
Bank Overdraft 755,244,128 - - 755,244,128 755,244,128
2,120,830,936 - - 2,120,830,936 2,120,830,936
Carrying Amount
Notes Loans and Available Other Financial Total Fair Value
Receivables for sale Liabilities
Rs. Rs. Rs. Rs. Rs.

Financial Assets
Prepayments 13.1 135,896,520 - - 135,896,520 135,896,520
1,214,263,753 7,824,804 - 1,222,088,557 1,222,088,557
Interest Bearing Loans and Borrowings 20.3.1 - - 707,632,433 707,632,433 707,632,433
Finance Lease Liabilities 20.3.2 - - 592,058 592,058 592,058
Trade and Other Payables 24 - - 489,117,061 489,117,061 489,117,061
Bank Overdraft - - 439,745,762 439,745,762 439,745,762
- - 1,637,087,313 1,637,087,313 1,637,087,313

20.4 Fair Value - Company
Set out below is a comparison by class of the carrying amounts and fair values of the Group’s financial instruments that are carried in
the financial statements.
Carrying Amount
Notes Amortised Fair Value Fair Value Total
Cost through Other through Profit Fair Value
Comprehensive or Loss
Income
Rs. Rs. Rs. Rs. Rs.

Financial Assets
Prepayments 13.1 94,235,915 - - 94,235,915 94,235,915
409,662,666 14,231,976 - 423,894,642 423,894,642
Interest Bearing Loans and Borrowings 20.3.3 722,778,863 - - 722,778,863 722,778,863
Trade and Other Payables 24 301,282,135 - - 301,282,135 301,282,135
Bank Overdraft 693,019,494 - - 693,019,494 693,019,494
1,717,080,492 - - 1,717,080,492 1,717,080,492
Carrying Amount
Notes Loans and Available Other Financial Total Fair Value
Receivables for sale Liabilities
Rs. Rs. Rs. Rs. Rs.

Financial Assets
Prepayments 13.1 98,169,160 - - 98,169,160 98,169,160
404,623,395 1,204,000 - 405,827,395 405,827,395
Interest Bearing Loans and Borrowings 20.3.3 - - 667,354,665 667,354,665 667,354,665
Finance Lease Liabilities 20.3.4 - - 592,057 592,057 592,057
Trade and Other Payables 24 - - 274,443,882 274,443,882 274,443,882
Bank Overdraft - - 397,360,201 397,360,201 397,360,201
- - 1,339,750,806 1,339,750,806 1,339,750,806

Our Business
Our Leadership
Governance
Financial Reports
20 FINANCIAL ASSETS AND FINANCIAL LIABILITIES CONTD

Fair Value of Financial Assets and Liabilities
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidated sale. The following methods and assumptions were
used to estimate the fair values:
a. Due to short-term nature carrying amount of cash and cash equivalents, trade receivables and payables and other current liabilities
approximate as their fair value amount.
b. The fair value of loans from banks and other financial liabilities, obligations under finance leases, as well as other non-current
financial liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk
and remaining maturities.
c. Fair value of available-for-sale financial assets is derived from quoted market prices in active markets, if available.
20.5 Fair Value Hierarchy

The judgments and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair
value in the financial statements are explained below. To provide an indication about the reliability of the inputs used in determining
fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standards. An
explanation of each level follows underneath the table.
Recurring Fair Value Measurement Group Company

As at 31st March 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Fair Value through Other

Equity Shares in Listed Companies 10,404,864 - - 10,404,864 696,000 - - 696,000
Equity Shares in Non-Listed Companies - - 13,500,000 13,500,000 - - 13,500,000 13,500,000
10,404,864 - 13,500,000 23,904,864 696,000 - 13,500,000 14,196,000
Recurring Fair Value Measurement Group Company

As at 31st March 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Fair Value through Other

Equity Shares in Listed Companies 7,824,804 - - 7,824,804 1,204,000 - - 1,204,000
7,824,804 - - 7,824,804 1,204,000 - - 1,204,000

20.6 Recognised Fair Value Measurement
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques:
Level 1 : The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting
period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are
included in level 1.
Level 2 : The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which
maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in level 2.
Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is
the case for unlisted equity securities.
*The Group has not disclosed the fair values for financial instruments such as cash and short-term deposits, trade receivables, trade
payables because their carrying amounts are a reasonable approximation of fair value.
20.7 Transfers between Levels of Fair Value Hierarchy

There were no transfers between Level 1, Level 2 and Level 3 during the Year.
20.8 Valuation Techniques used to Determine Fair Values

Specific valuation techniques used to value financial instruments include:
The use of quoted market prices or dealer quotes for similar instruments
For other financial instruments - Discounted cash flow analysis
All of the resulting fair value estimates are included in Level 1 except for unlisted equity securities, where the fair values have been
determined based on present values and the discount rates used were adjusted for counterparty or own credit risk.
20.9 Fair Value Measurement using Significant Unobservable Input
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Balance at the Beginning of the Year - - - -

Acqusitions 13,500,000 - 13,500,000 -
Gains/ (Losses) recognised in Other Comprehensive Income - - - -

Balance at the End of the Year 13,500,000 - 13,500,000 -
20.10 Valuation Inputs and Relationships to Fair Value

The following table summarises the quantitative information about the Significant Unobservable Inputs used in Level 3 Fair Value
measurements
Description Fair Value Un-Observable Input Relationship of

2019 2018 Un-observable Input to
Rs. Rs. Fair Value
Unlisted Equity Security 13,500,000 - Earing Growth Rate Estimated Fair value would increase/
Risk adjusted Discount Factor (decrease) if net cash inflow and
discount rate increase/ (decrease)

Our Business
Our Leadership
Governance
Financial Reports
21 DEFERRED REVENUE
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Balance at the beginning of the Year - - 38,631,600 40,086,886

Less: Amortised during the Year - - (1,790,286) (1,455,286)
Balance at the end of the Year - - 36,841,314 38,631,600
22 RETIREMENT BENEFIT OBLIGATIONS

22.1 Retirement Benefit Obligations - Provision for the Year
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Balance at the beginning of the Year 182,422,394 166,564,931 160,235,950 147,596,076

Provision for the Year 71,386,166 39,302,495 59,771,600 31,354,042
253,808,560 205,867,426 220,007,550 178,950,117
Payments made during the Year (25,363,585) (23,445,032) (17,501,245) (18,714,167)
Balance at the end of the Year 228,444,975 182,422,394 202,506,305 160,235,950
22.2 Movement in Net Defined Benefit Obligation

The following table shows a reconciliation from the balance at the beginning of the Year to at the end of the Year for Net Defined
Benefit Obligation and its components.
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Expenses Recognised in Profit or Loss

Current Service Cost 22,649,930 18,709,049 18,938,806 16,207,671
Interest Cost 19,154,351 20,955,039 16,824,775 17,711,529
41,804,281 39,664,088 35,763,581 33,919,200
Expenses Recognised in Other Comprehensive Income
Actuarial (Gain)/ Loss 29,581,885 (361,594) 24,008,019 (2,565,159)
Other
Benefits paid during the Year (25,363,585) (23,445,032) (17,501,245) (18,714,167)
Messers Actuarial and Management Consultant (Pvt) Ltd, Actuary, carried out an actuarial valuation of defined benefit obligation for
Ceylon Hospitals PLC, Durdans Medical and Surgical Hospital (Pvt) Ltd and Durdans Heart Center (Pvt) Ltd as at 31st March 2019. The
Liability is not externally funded. The Actuarial valuation is performed annually.

22.3 Actuarial Assumptions
The following were the principal actuarial assumptions at the reporting date.
Group Company
2019 2018 2019 2018
Discount Rate 11% 10.5% 11% 10.5%

Salary Increase Rate 8% 8% 8% 8%
Staff Turnover Rate - Upto 49 Years 20%-27% 20%-24% 27% 24%
Disability Rate 10% 10% 10% 10%
Retirement Age 55years 55years 55years 55years
22.4 Sensitivity Analysis

The following table demonstrates the sensitivity to reasonably possible changes at the reporting date in the key assumptions
employed with all other variables held constant in the employment benefit liability measurement.
The sensitivity of the statement of financial position is the effect of the assumed changes in discount rate and salary increment rate on
the employment benefit obligation for the year.
Group Company
Increase Decrease Increase Decrease
Discount Rate (1% movement) (5,295,404) 5,683,861 (4,556,110) 4,893,595

Salary Increments (1% movement) 6,828,074 (6,539,752) 5,914,416 (5,671,397)
23 DEFERRED TAXATION
23.1 Deferred Tax Provision
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.

Deferred Tax Provision as at the end of Year is made up as follows;

Deferred Tax Provision from:
Temporary Difference of Property, Plant and Equipment 345,354,694 290,410,327 215,865,513 160,556,916
Temporary Difference of Retirement Benefit Obligation (68,910,532) (48,706,522) (62,777,427) (44,147,822)
Temporary Difference of Revaluation of Property, Plant and Equipment 459,488,102 459,488,103 397,192,127 397,192,127
735,932,264 701,191,908 550,280,213 513,601,221

Our Business
Our Leadership
Governance
Financial Reports
23 DEFERRED TAX PROVISION CONTD.

23.2 Movement in Tax Effect of Temporary Differences - Group
Balance at the Recognised in Recognised in Other Balance at the

Beginning of the Year Profit or Loss Comprehensive Income End of the Year
Deferred Tax Assets

Defined Benefit Obligations (48,867,898) (12,333,459) (8,087,802) (69,289,160)
(48,867,898) (12,333,459) (8,087,802) (69,289,160)
Deferred Tax Liability
Property, Plant and Equipment 299,682,755 46,050,568 - 345,733,323
Revaluation Gain on Land and Building 459,488,102 - - 459,488,102
759,170,857 46,050,568 - 805,221,425
Net Deferred Tax Liability 710,302,959 33,717,109 (8,087,802) 735,932,264
23.3 Movement in Tax Effect of Temporary Differences - Company
Balance at the Recognised in Recognised in Other Balance at the

Beginning of the Year Profit or Loss Comprehensive Income End of the Year
Deferred Tax Assets

Defined Benefit Obligations (44,147,822) (11,835,699) (6,722,245) (62,705,766)
(44,147,822) (11,835,699) (6,722,245) (62,705,766)
Deferred Tax Liability
Property, Plant and Equipment 160,556,915 55,236,938 - 215,793,853
Revaluation Gain on Land and Building 397,192,126 - - 397,192,126
557,749,042 55,236,938 - 612,985,979
Net Deferred Tax Liability 513,601,221 43,401,238 (6,722,245) 550,280,213
24 TRADE AND OTHER PAYABLES
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Trade Creditors 282,832,723 234,377,850 145,843,450 122,635,600

Accrued Expenses and Sundry Payables 267,808,570 254,739,211 155,438,685 151,808,282
550,641,293 489,117,061 301,282,135 274,443,882

25 TAXATION PAYABLE
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Balance at the beginning of the Year (17,417,650) 32,446,428 (13,794,764) (8,346,565)

Payments during the Year (93,217,230) (113,465,359) - (1,493,809)
Tax credits for
- ESC Paid (22,248,514) (19,317,228) (16,145,428) (16,486,890)
- WHT Deducted (1,975,386) (6,332,204) (528,622) (1,216,072)
Balance at the end of the Year (20,772,401) (17,417,650) 3,105,671 (13,794,764)
26 CAPITAL COMMITMENTS
The Company entered into a construction contract with Tudawe Brothers (Pvt) Ltd for a total value of Rs. 1,144,950,469 (excluding VAT)
in respect of the Durdans 2022 remodelling and reconstruction project.
Payments are done to the contractor on a progressive basis based on a certificate of work done collectively issued by the designated
Chartered Architect and Chief Quantity Surveyor to the project.
27 CONTINGENT LIABILITIES
There were no contingent liabilities as at 31st March 2019 that requires adjustment to or disclosure in the Financial Statements.
28 EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

There were no material events occurring after the balance sheet date that require adjustments or disclosure in the Financial
Statements.
29 EMPLOYEE AND INDUSTRIAL RELATIONS

There were no material issues pertaining to employee and industrial relations that require disclosure in Financial Statements.
30 DIVIDENDS
This represents an interim dividend paid at the rate of Rs. 2.74 per share for the Year 2017/18 and first interim dividend of Rs. 0.86 per
share paid for the Year 2018/19.

Our Business
Our Leadership
Governance
Financial Reports
31 RELATED PARTY DISCLOSURE

A Related Party Transaction is transfer of resources, services or obligations between Related Parties, regardless of whether a price is charged.
The Company carries out transactions in the ordinary course of its business on an arm's length basis with parties who are defined as
Related Parties in Sri Lanka Accounting Standard (LKAS 24) on Related Party Transaction.
31.1 Substantial Shareholding, Immediate and Ultimate Parent Company

The Company’s immediate parent company is Durdans Management Services Ltd, which holds 67.06% of the issued Ordinary Shares
(Voting) of the Company as at reporting date.
31.2 Recurrent Related Party Transactions

There were no recurrent related party transactions which in aggregate value exceed 10% of gross revenue of the Company as per
31st March 2019 audited Financial Statements, which required additional disclosures in 2018/19 Annual Report under Colombo Stock
Exchange ("CSE") rule 9.3.2 and Code of Best Practices on Related Party Transactions under the Securities and Exchange Commission
directive issued Section 13 (C) of Securities and Exchange Commission Act.
31.3 Non-Recurrent Related Party Transactions

During the Year the Company entered into a construction contract with Tudawe Brothers (Pvt) Ltd for a total value of Rs. 1,144,950,469
(excluding VAT) in respect of the Durdans 2022 remodeling and reconstruction project. Based on the advice obtained from
independent project consultants and available market information, the Related Party Transaction Review Committee established that
the contract value was in line with competitive market prices and on arms length basis. This transaction has been disclosed to the CSE
on 7th December 2018.
The Company and its subsidiaries collectively entered into a shareholders’ agreement in August 2018 to invest 66.5% of the capital
of Messers Amrak Institute of Medical Sciences (Pvt) Ltd a company established to provide medical science courses for prospective
students in collaboration with Astron Institute of International Studies Private Limited, India.
31.4 Key Management Personnel Information

According to Sri Lanka Accounting Standard (LKAS 24) on Related Party Disclosures, Key Management Personnel are those having
authority and responsibility for planning, directing and controlling activities of the entity. Accordingly, the Board of Directors (including
Executive and Non executive Directors) have been classified as Key Management Personnel of the Company.
31.5 Transactions held with Key Management Personnel (KMP)

31.5.1 Compensation for Key Management Personal
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Short-term Employee Benefits 46,921,792 39,520,948 43,881,792 36,281,104

Post Employment Benefits - - - -
Other Long-term Benefits - - - -
Terminal Benefits - - - -
Share Based Payments - - - -
46,921,792 39,520,948 43,881,792 36,281,104
The short term employee benefits include emoluments paid to the Executive Directors and director fee paid for Board attendance to
all Directors.
Emoluments to the Directors’ of the Company and Group are disclosed in Note 7 to the Financial Statements.

31.5.2 Loans to Directors
No loans have been given to Directors of the Company and its parent company.
Other than those disclosed above, there are no material transactions held with the Key Management Personnel of the Company and
its parent company.
31.6 Transactions with Related Entities

The Directors/ Key Management Personnel of the Company as at 31st March 2019 were Directors of following Companies as set out
below and transactions included in Note 31.7 carried out with such companies during the Year.
Name of the Director Durdans Commercial Tudawe Tudawe Durdans Durdans Amrak Ceygen
Management Marketing Brothers Engineering Medical and Heart Institute of Biotech
Services Ltd and (Pvt) Ltd Services Surgical Centre Medical (Pvt) Ltd
Distributors (Pvt) Ltd Hospital (Pvt) Ltd Sciences (Pvt)
(Pvt) Ltd (Pvt) Ltd Ltd
Mr. A. E. Tudawe     
Mr. S. P. Tudawe     
Mr. U. D. Tudawe       
Dr. A. D. P. A. Wijegoonewardene   
Mr. Y. N. R. Piyasena   
Dr. A. N. Dharmawansa 
Mr. A. S. Abeyewardene 
Mr. Su-ayid M. Ismail 
Mr. A. D. B. Talwatte
Mr. A. R. Fernando 
Mr. A. S. Tudawe    
Mr. R. N. Tudawe 
Name of the Company Relationship
Ceylon Hospitals PLC Company

Durdans Management Services Ltd Immediate/ Ultimate Parent Company
Durdans Medical and Surgical Hospital (Pvt) Ltd Subsidiary
Durdans Heart Centre (Pvt) Ltd Subsidiary
Amrak Institute of Medical Sciences (Pvt) Ltd Subsidiary
Ceygen Biotech (Pvt) Ltd Equity Accounted Investee
Tudawe Brothers (Pvt) Ltd Affiliate
Tudawe Engineering Services (Pvt) Ltd Affiliate
Commercial Marketing and Distributors (Pvt) Ltd Affiliate

Our Business
Our Leadership
Governance
Financial Reports
31 RELATED PARTY DISCLOSURE CONTD.

31.7 Transactions held with Companies in which Directors of the Company hold Other Directorships
The Company has carried out transactions with entities where the Chairman or a Director of the Company is the Chairman or a
Director of such entities as detailed below.
31.7.1 Transactions held between Ceylon Hospitals PLC and Related Companies

Name of the Company Nature of Transaction 2019 2018

Rs. Rs.
Transactions held with Immediate Parent Company

Durdans Management Services Ltd Management fee (35,316,902) (38,327,000)
Transactions held with Subsidiary Companies

Durdans Heart Centre (Pvt) Ltd Sale of drugs and consumables 2,704,789 7,533,983
Rendering of medical services 205,842,392 190,919,864
Sharing utilities and other cost 84,511,662 59,070,294
Cathlab hiring charges 219,000 670,000
Durdans Medical and Surgical Hospital (Pvt) Ltd Sale of drugs and consumables 14,905,579 36,079,828
Amrak Institute of Medical Sciences (Pvt) Ltd Sharing utilities and other cost 299,425 -
Transactions with Equity Accounted Investee

Ceygen Biotech (Pvt) Ltd General services 51,446 59,080
Transactions with Other related Companies

Commercial Marketing and Distributors (Pvt) Ltd Supply of drugs (64,873,769) (86,623,480)
Tudawe Brothers (Pvt) Ltd Diagnostic service 1,178,645 1,001,740

Car Park construction cost (49,865,458) (437,788,134)
Project 2022 construction cost (188,986,756) -


31.7.2 Group
Transactions held between Durdans Medical and Surgical Hospital (Pvt) Ltd with other Related Parties

Rs. Rs.
Ceylon Hospitals PLC Sale of drugs and consumables 8,363,945 6,181,780

Durdans Heart Centre (Pvt) Ltd Sale of drugs and consumables 2,248,746 1,090,819
Durdans Management Services (Pvt) Ltd Management fee (20,881,953) -
Transactions held between Durdans Heart Centre (Pvt) Ltd with other Related Parties

Rs. Rs.
Ceylon Hospitals PLC Sale of drugs and consumables 677,971 585,935

Durdans Medical and Surgical Hospital (Pvt) Ltd Sale of drugs and consumables 3,182,254 1,642,284
* Figures shown in brackets indicate paid or payable for goods/ services received from related companies.
31.8 Amounts receivable from and payable to related parties are set out in Note 14 to the Financial Statements. These receivables and
payables are unsecured and have no fixed repayment terms.

Our Business
Our Leadership
Governance
Financial Reports
32 ASSETS PLEDGED AS COLLATERALS

Following assets of the Group have been pledged as collaterals for overdraft facilities and loans obtained by the Group to the
respective financial institutions concerned.
Name of Financial Institution Nature of Facility Facility Granted Securities Pledged

Rs.
Ceylon Hospitals PLC

Union Bank Revolving Loan 15 Mn Over the company inventories and trade debtors balance
Commercial Bank Bank Overdrafts 76 Mn Mortgage of fixed deposits amount of Rs. 76 Mn in the
name of the Company together with duly executed letter
of authority and letter of set off.
Durdans Heart Centre (Pvt) Ltd

DFCC Bank Term Loan 50 Mn Mortgage over equipment financed
Term Loan 36 Mn Mortgage over equipment financed
Commercial Bank Bank Overdrafts 10 Mn Over the Company inventories and trade debtors balance
33 FINANCIAL RISK MANAGEMENT

33.1 Overview
This note explains the group’s exposure to financial risks and how these risks could affect the group’s future financial performance.
Current year profit and loss information has been included where relevant to add further context.
The Group has exposure mainly to following risks from its use of Financial Instruments
Credit Risk
Liquidity Risk
Market Risk
33.2 Risk Management framework

The Board of Directors have the overall resposibility for establishment and oversight of the Group Risk management framework.
The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits.
The Group’s senior management oversees the management of these risks. The Group’s senior management is supported by a financial
acumen team that advises on financial risks and the appropriate financial risk governance framework for the Group. The finance team
provides assurance to the Group’s senior management that the Group’s financial risk-taking activities are governed by appropriate
policies and procedures and that financial risks are identified, measured and managed in accordance with group policies and group
risk appetite.
Risk management policies and systems are reviewed regularly to reflect changes in market conditions and group activities. The Group
through its training and management standards and procedures, aim to develop a disclipline and constructive environment in which
all employee understand their roles and obligations.

33.3 Credit Risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Group is being exposed to the credit risk from its operating activities (primarily for trade receivables) and from its
financing activities, including deposits with banks and financial institutions and other financial instruments.
33.3.1 Credit Risk Exposure

The Group’s maximum exposure to credit risk as at the end of the year based on the the carrying value of financial assts in the
statement of financial position is given below. There were no off balance sheet exposure as the the year end.
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.

Trade and Other Receivables 215,382,982 217,175,109 132,129,362 144,557,750
Other Financial Assets at Amortised Cost 709,802,945 - 121,033,618 -
Loans and Receivables - 657,805,380 - 103,323,325
Cash and Cash Equivalents 403,497,054 203,386,744 62,263,772 58,573,161
Financial Assets at Fair Value through Other 24,623,624 - 14,231,976 -

Comprehensive Income (FVOCI)
Available-for-Sale Investments - 7,824,804 - 1,204,000

1,353,306,604 1,086,192,037 329,658,727 307,658,235
33.3.2 Credit Risk Exposure on Trade Receivables

The Group’s maximum exposure to credit risk on trade receivables as at the end of year based on the carrying value in the Statement
of Financial Position.
Group Company
As at 31st March, Note 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Trade Receivables 13 196,034,886 203,942,887 110,281,868 130,270,409
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management
also considers various statistics of the Group’s customer base including default risk, business relationship giving due attention to past
performances, stability of industry and credit worthiness.
Customer credit risk is managed by each business unit subject to the Group’s established policies, procedures and control relating
to customer credit risk management. Credit quality of the customer is assessed based on an extensive credit evaluation format and
individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and
obtaining the Letter of Guarantees from patients who are admitted to the hospital through corporate customers.

Our Business
Our Leadership
Governance
Financial Reports
33 FINANCIAL RISK MANAGEMENT CONTD.

Impairment Losses
The requirement for an impairment is analysed at each reporting date on an individual basis for major clients. The group applies
the SLFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade
receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped
based on shared credit risk characteristics and the days past due.
The expected loss rates are based on the payment profiles of sales over a period of 36 months before 31st March 2019 and the
corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and
forward looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The group has
identified the inflation rate of healthcare sector to be the most relevant factors and accordingly adjusts the historical loss rates based
on expected changes in this factor.
On that basis, the loss allowance as at 31st March 2019 (on adoption of SLFRS 9) was determined as follows for trade receivables.
Company 31 - 60 61 - 90 91 - 120 121 - 180 Over 180
Expected Loss Rate 3% 5% 11% 18% 30%

Loss Allowance 572,062 339,128 386,842 1,238,341 1,163,688
Group 31 - 60 61 - 90 91 - 120 121 - 180 Over 180
Expected Loss Rate 1% - 2% 2% - 5% 6% - 11% 12% - 18% 19% - 35%

Loss Allowance 816,185 674,543 1,594,481 2,115,890 1,247,054
Trade receivables are written-off when there is no reasonable expectation of recovery. Indicators that there is no reasonable
expectation of recovery include, amongst others, the failure of a debtor to make repayment after long due period.
Impairment losses on trade receivables is presented as net impairment losses within operating profit. Subsequent recoveries of
amounts previously written off are credited against the same line item.

33.4 Liquidity Risk
Liquidity risk is the risk that the group will encounter difficulty in meeting its obligations with its liabilities that are settled by delivering
cash or another financial asset. The group’s approach to managing liquidity is to ensure that, it will have sufficient liquid assets to
settle liabilities when it is due, without breaching any loan covenant and incurring undesirable losses.
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank
loans, debentures, finance leases and hire purchase contracts. The Group assesses the concentration of risk with respect to refinancing
its debt and concluded it to be low. Access to sources of funding is sufficiently available and debt maturing within 12 months can be
rolled over with existing lenders.
The following table summarises the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments.
On Less than 03 to 12 01 to 05 More than Total

Demand 03 Months Months Years 05 Years
Year ended 31st March 2019

Interest Bearing Loans and Borrowings - 105,333,792 172,813,546 515,025,025 21,773,152 814,945,515
Trade and Other Payables - 282,832,723 267,808,570 - - 550,641,293
Amounts Due to Related Parties - 4,208,202 - - - 4,208,202
Bank Overdrafts 755,244,128 - - - - 755,244,128
755,244,128 392,374,718 440,622,116 515,025,025 21,773,152 2,125,039,138
Year ended 31st March 2018

Interest Bearing Loans and Borrowings - 241,443,243 173,804,053 292,384,562 - 707,631,858
Trade and Other Payables - 403,526,425 85,590,636 - - 489,117,061
Amounts Due to Related Parties - 1,764,696 - - - 1,764,696
Bank Overdrafts 439,745,762 - - - - 439,745,762
439,745,762 646,734,364 259,394,689 292,384,562 - 1,638,259,377

Our Business
Our Leadership
Governance
Financial Reports
33 FINANCIAL RISK MANAGEMENT CONTD.

33.5 Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument which will fluctuate because of changes in market
prices. Market prices comprise two types of risk: interest rate risk and other price risk, such as equity price risk. Financial instruments
affected by market risk include loans and borrowings, deposits, Other Financial Assets measure at fair value in Profit or Loss or Other
Comprehensive Income and derivative financial instruments.
33.5.1 Foreign Exchange Risk

The Group being provider of healthcare services to international patients exposed to foreign exchange risk, which primarily to United
State Dollar. However, having a lower value of outstanding debtor balances impacts the financials minimally.
33.5.2 Interest Rate Risk

Interest rate risk is the risk that the fluctuation of fair value or future cash flows of a financial instrument which will fluctuate because of
changes in market interest rates.
The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term debt obligations with
floating interest rates such as AWDR, AWPLR.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and
borrowings, after the impact of interest rate changes. With all other variables held constant, the Group’s profit before tax is affected
through the impact on floating rate borrowings as follows.
Increase/ Decrease Effect on Profit

in Basis Points before Tax
Rs.
2019
Interest Bearing Loans and Borrowings + 100 bp (13,590,799)
- 100 bp 13,590,799
2018
Interest Bearing Loans and Borrowings + 100 bp (11,933,024)
- 100 bp 11,933,024
33.5.3 Price Risk

The group’s exposure to equity securities price risk arises from investments held by the group and classified in the balance sheet
either as at Fair Value through Other Comprehensive Income (FVOCI) or at fair value through profit or loss.
The Group manages the equity price risk through diversification and placing limits on individual and total equity instruments. Reports
on the equity portfolio are submitted to the Group’s senior management on a regular basis. The Group’s Board of Directors reviews
and approves all equity investment decisions.
The table below summarises the impact of increases/decreases of these two indexes on the group’s equity and post tax profit for the
period. The analysis is based on the assumption that the equity indexes had changed by 1% with all other variables held constant, and
that all the group’s equity instruments moved in line with the indexes.
Increase/ Decrease Effect on Equity

in Basis Points
Equity Investment at Fair Value through Other Comprehensive Income + 100 bp 104,049
- 100 bp (104,049)

34 CAPITAL MANAGEMENT
Capital includes ordinary shares and other equities attributable to the equity holders of the parent.
The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios
in order to support its business and maximise shareholder value.
The Group manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or adjust
the capital structure, the Group may adjust the dividend payments to shareholders, return capital to shareholders or issue new shares.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31st March 2019 and 31st
March 2018.
The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group’s policy is to
keep the gearing ratio between 25% and 40%. The Group includes within net debt, interest bearing loans and borrowings, bank
overdrafts, trade and other payables less cash and cash equivalents.
Group Company
As at 31st March, 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Interest Bearing Loans and Borrowings 814,945,514 708,224,489 722,778,863 667,946,723

Trade and Other Payables 550,641,293 489,117,061 301,282,135 274,443,882
Bank Overdrafts 755,244,128 439,745,762 693,019,494 397,360,201
Less: Cash and Cash Equivalents (403,497,054) (203,386,744) (62,263,772) (58,573,161)
1,717,333,882 1,433,700,567 1,654,816,719 1,281,177,646
Equity 5,143,061,759 5,009,252,792 3,983,016,266 3,911,111,901
Capital and Net Debt 6,860,395,641 6,442,953,359 5,637,832,986 5,192,289,547
Gearing Ratio 25% 22% 29% 25%

Our Business
Our Leadership
Governance
Financial Reports
Value Added Statement
Group Company
Value Added 2019 2018 2019 2018
Rs. Rs. Rs. Rs.
Turnover 5,806,352,697 5,733,404,060 3,449,632,770 3,408,056,199

Cost of Material and Services (3,052,463,084) (3,087,346,975) (1,758,992,832) (1,850,994,998)
Other Income 56,051,511 35,482,582 32,544,275 18,463,209
2,809,941,124 2,681,539,667 1,723,184,213 1,575,524,411
Distribution of Value Added

To Employees
Salaries and Others 1,736,114,637 1,595,783,351 1,103,019,919 1,082,916,267
To Government
Income Tax 139,225,506 109,375,176 58,713,517 33,873,034
To Capital Providers
Interest on Loans 133,001,054 120,184,991 118,398,441 112,383,733
To Shareholders
Dividend 165,543,839 161,914,170 121,941,814 121,941,814
To Expansion and Growth
Depreciation 425,281,296 368,322,864 231,412,384 184,980,411
Retained Profit 210,774,792 325,959,115 89,698,139 39,429,153
2,809,941,124 2,681,539,667 1,723,184,212 1,575,524,411
To Employees 62% 60% 64% 69%

To Government 5% 4% 3% 2%
To Capital Providers 5% 4% 7% 7%
To Shareholders 6% 6% 7% 8%
To Expansion and Growth 22% 26% 19% 14%
GROUP COMPANY
% %
80 80
69
64
62
60
60 60
40 40
26
22
19
14
20 20
7
8
7
7
6
6
5
4
5
4
3
2
0 0
To
Employees
To
Government
To Capital
Providers
To
Shareholders
To Expansion
and Growth
To
Employees
To
Government
To Capital
Providers
To
Shareholders
To Expansion
and Growth
2019 2018 2019 2018

Ten Year Summary
Group
2018/19 2017/18 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11 2009/10
Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000
Operating Results
Total Income 5,806,353 5,733,404 5,289,462 4,728,335 4,083,367 3,961,268 3,830,369 3,546,523 3,054,399 2,451,031
Other Income 56,052 35,483 33,787 38,060 51,247 53,492 34,335 22,155 23,728 21,354
Finance Cost 135,810 121,724 98,420 86,492 125,005 186,728 182,428 164,558 151,094 121,781
Profit Before Tax 549,261 603,001 525,223 556,741 266,100 261,167 308,040 347,462 240,042 164,894
Income Tax 172,943 115,128 136,251 56,695 42,312 32,093 30,334 61,210 81,659 54,893
Profit After Tax 376,319 487,873 388,972 500,046 223,788 229,074 277,706 288,231 158,383 110,001
Dividend (Company) 121,942 121,942 121,942 91,456 67,745 - 135,491 50,809 42,341 38,812
Balance Sheet
Assets
Property Plant and Equipment 6,682,247 6,499,837 6,077,397 4,127,603 4,107,470 4,158,468 4,239,622 4,310,489 4,000,023 2,331,038
WIP - Building in Construction 276,491 39,021 368,081 158,282 - - - 6,543 8,498 1,170,783
Other Financial Assets 734,427 665,630 572,356 379,505 266,353 241,568 169,884 193,682 95,102 102,541
Investment in an Equity 5,497 4,800 3,753 3,030 2,679 2,038 877 - - -
Accounted Investee
Inventories 309,298 304,510 319,092 256,094 229,775 254,095 214,699 215,965 166,722 146,229
Receivables 363,803 356,938 458,273 275,154 244,212 193,696 185,481 185,481 178,959 169,632
Tax refund Due 20,772 17,418 - - - - - - - -
Deffered Revenue 1,190 1,365 1,800 460 600 660 760 860 2,400 2,500
Goodwill - - - - - - - - - 1,341
Cash and Cash Equivalents 403,497 203,387 138,134 165,675 80,807 48,456 96,959 21,279 71,062 66,370
8,797,222 8,092,905 7,938,886 5,365,804 4,931,896 4,898,979 4,908,282 4,934,299 4,522,766 3,990,434
Equity and Liabilities

Stated Capital 916,366 916,366 916,366 916,366 916,366 916,366 916,366 916,366 916,366 513,821
Reserves 4,226,696 4,092,887 4,281,723 2,171,026 1,861,307 1,737,356 1,617,374 1,512,620 1,125,265 1,447,696
Non Controlling Interest 564,744 561,186 529,101 408,109 361,829 348,633 494,335 488,029 400,145 393,603
Interest-Bearing Borrowings 814,946 708,224 855,369 877,561 907,846 1,072,360 1,086,439 1,352,120 1,359,039 1,051,634
Provisions and Other Liabilities 1,519,226 1,374,496 986,352 706,982 569,110 489,453 544,009 518,301 504,601 361,051
Overdrafts 755,244 439,746 369,976 285,760 315,438 334,811 249,759 146,862 217,350 222,629
8,797,222 8,092,905 7,938,886 5,365,804 4,931,896 4,898,979 4,908,282 4,934,298 4,522,766 3,990,434
Shareholder Information Company

2018/19 2017/18 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11 2009/10
Earnings Per Share (Rs.) 6.25 4.76 6.25 6.41 4.52 5.49 6.23 6.20 3.12 3.87
Dividend Per Share (Rs.) 3.60 3.60 3.60 3.60 2.70 2.00 - 2.00 1.50 1.50
Dividend Payout Ratio (%) 57.62 75.57 57.60 56.16 59.73 36.43 - 32.26 48.08 38.76
Net Asset Per Share (Rs.) 117.59 115.46 125.97 81.16 78.24 75.92 71.49 69.26 59.01 72.75
Retrun On Equity (%) 7.32 9.74 7.48 16.20 8.06 8.63 10.96 11.87 7.76 5.61
Return On Assets (%) 4.30 6.03 4.90 9.32 4.54 4.68 5.66 5.84 3.50 2.76

Our Business
Our Leadership
Governance
Financial Reports
Share Information
VOTING SHARES
Distribution of Shareholders
Resident Non Resident

No. of No. of No. of No. of
Shareholding Shareholders Shares % Shareholders Shares %
1 - 1,000 1,900 451,456 1.77 15 3,985 0.02

1,001 - 10,000 292 817,091 3.20 12 45,230 0.18
10,001 - 100,000 49 1,458,009 5.70 3 104,043 0.41
100,001 - 1,000,000 15 4,163,087 16.31 1 289,288 1.13
Over 1,000,000 2 18,195,083 71.28 - - -
Total 2,258 25,084,726 98.26 31 442,546 1.74
CATEGORIES OF SHAREHOLDERS
No. of No. of
Shareholders Shares
Individual 2,190 5,351,030

Institutional 99 20,176,242
2,289 25,527,272
NON-VOTING SHARES
Distribution of Shareholders
Resident Non Resident

No. of No. of No. of No. of
Shareholding Shareholders Shares % Shareholders Shares %
1 - 1,000 879 227,653 2.73 4 640 0.01

1,001 - 10,000 366 1,084,161 12.99 10 56,160 0.67
10,001 - 100,000 70 2,013,812 24.12 3 162,723 1.95
100,001 - 1,000,000 5 1,345,885 16.13 1 755,000 9.05
Over 1,000,000 2 2,699,420 32.35 - - -
Total 1,322 7,370,931 88.32 18 974,523 11.68

CATEGORIES OF SHAREHOLDERS
No. of No. of
Shareholders Shares
Individual 1,266 3,139,466

Institutional 74 5,205,988
1,340 8,345,454
PUBLIC SHAREHOLDING
2018/19 2017/18
Voting Non-Voting Voting Non-Voting
Number of Shareholders 2,263 1,326 2,286 1,392

Holding Percentage (%) 23.29 78.60 22.39 86.06
Market Capitalisation (Rs. Mn) 1,846 564 2,022 605
Float Adjusted Market Capitalisation (Rs. Mn) 430 443 453 521
Float Adjusted Market Capitalisation Option Less than Rs. 2.5 Bn (Option 5) Less than Rs. 2.5 Bn (Option 5)
INVESTOR RATIOS
2018/19 2017/18
Earnings per Share (Rs.) 6.25 4.76

Dividend per Share (Rs.) 3.60 3.60
Net Asset Value per Share (Rs.) 117.59 115.46
Dividend Payout Ratio (%) 58.00 76.00
MARKET ACTIVITES
Market Value per Share
2018/19 2017/18
Highest Traded Lowest Traded Last Traded Highest Traded Lowest Traded Last Traded
Price Price Price Price Price Price
Voting 87.00 68.50 72.30 103.00 75.10 79.20

12th June 31st December 29th March 28th June 09th February 29th March
2018 2018 2019 2017 2018 2018
Non-Voting 76.00 54.20 67.60 85.00 65.30 72.50
26th April 21st September 29th March 19th May 26th December 29th March
2018 2018 2019 2017 2017 2018

Our Business
Our Leadership
Governance
Financial Reports
Share Information
SHARE TRADING INFORMATION
2018/19 2017/18
Shares Traded Turnover Shares Traded Turnover
Number Rs. Number Rs.
Voting 594,280 45,240,924 1,363,951 133,369,757
Non-Voting 778,920 52,995,054 1,848,488 129,216,269
TOP 20 SHAREHOLDERS LISTED AS AT 31ST MARCH 2019 - VOTING SHAREHOLDERS
As at 31st March 2019 As at 31st March 2018

Name of the Shareholder Country of Number of Holding Number of Holding
Residence Shares % Shares %
Durdans Management Services Ltd Sri Lanka 17,118,098 67.06 17,047,632 66.78
Employee Provident Fund - Citi Bank do 1,076,985 4.22 1,076,985 4.22
Lawrance Tudawe Management Services (Pvt) Ltd do 598,982 2.35 598,982 2.35
Mr. Y. N. R. Piyasena do 553,134 2.17 553,134 2.17
Renuka Capital PLC do 402,823 1.58 402,823 1.58
Mr. W. N. Tudawe do - - 350,000 1.37
Mr. S. P. Tudawe do 307,936 1.21 307,936 1.21
Cargo Boat Development Company PLC do 305,485 1.20 305,485 1.20
Bnysanv Re-steyn Capital Frontier Fund Cayman Islands 289,288 1.13 - -
MJF Holdings Ltd Sri Lanka 270,981 1.06 270,981 1.06
Mr. Merill J. Fernando do 261,787 1.03 260,000 1.02
Mr. A. E. Tudawe do 205,052 0.80 205,052 0.80
Mrs. L. I. Weerasinghe do 200,000 0.78 200,000 0.78
Mrs. T. T. Weerasinghe do 200,000 0.78 200,000 0.78
Mrs. H. K. Weerasinghe do 200,000 0.78 200,000 0.78
Mr. A. D. P. A. Wijegoonewardene do 199,462 0.78 199,462 0.78
Mr. U. D. Tudawe do 170,616 0.67 170,616 0.67
Mr. A. D. Tudawe do 161,984 0.63 161,984 0.63
Mr. P. K. C. P. Samarasinghe do 124,845 0.49 - -
DFCC Bank PLC - A/C 01 do - - 100,000 0.39
Mr. R. R. Tudawe do 100,000 0.39 100,000 0.39
Commercial Bank of Ceylon PLC - A/C 04 do 83,000 0.33 83,000 0.33
Total 22,830,458 89.44 22,794,072 89.29

TOP 20 SHAREHOLDERS LISTED AS AT 31ST MARCH 2019 - NON-VOTING SHAREHOLDERS
As at 31st March 2019 As at 31st March 2018

Name of the Shareholder Country of Number of Holding Number of Holding
Residence Shares % Shares %
Durdans Management Services Ltd Sri Lanka 1,545,049 18.51 922,327 11.05
Employee Provident Fund do 1,154,371 13.83 1,154,371 13.83
Bnysanv Re-Steyn Capital Frontier Fund Cayman Islands 755,000 9.05 755,000 9.05
MJF Holdings Ltd Sri Lanka 598,646 7.17 598,646 7.17
E. W. Balasuriya & Co. (Pvt) Ltd do 330,619 3.96 330,619 3.96
DFCC Bank - A/C 01 do - - 240,000 2.88
Mr. D. Ratnayake do 146,866 1.76 146,866 1.76
Mr. A. H. Munasinghe do 142,314 1.71 142,314 1.71
Mr. A. N. Esufally do 127,440 1.53 127,440 1.53
Tudawe Engineering Services (Pvt) Ltd do 91,986 1.10 91,986 1.10
Mr. D. A. Cabraal do 82,500 0.99 82,500 0.99
Mr. S. S. Sithambaranathan do 74,963 0.90 73,906 0.89
Mr. P. S. De Mel do 70,822 0.85 70,822 0.85
Mr. A. D. Tudawe do 70,151 0.84 70,151 0.84
Mr. U. D. Wickremesooriya Jt. Mrs. S. F. Wickremesooriya do 69,272 0.83 69,272 0.83
Citizens Development Business Finance PLC do - - 68,670 0.82
Ms. T. T. Weerasinghe do 68,485 0.82 - -
Peoples Leasing & Finance PLC/ Mr. P. A. I. S. Perera do 65,454 0.78 65,454 0.78
Motor Service Station (Pvt) Ltd do 65,427 0.78 70,428 0.84
Mr. M. A. Ismail do 63,600 0.76 63,600 0.76
Commercial Bank of Ceylon PLC - A/C 04 do 61,100 0.73 61,100 0.73
Mr. D.P. R. De Mel do 58,908 0.71 - -
Total 5,642,973 67.61 5,205,472 62.37

Notice of Meeting
Notice is hereby given that the 73rd Annual 4. To re-appoint Dr. A. D. P. A. 7. To re-appoint Messrs. B. R. De Silva
General Meeting of the Shareholders of Wijegoonewardene, Director who & Co. Chartered Accountants, the
Ceylon Hospitals PLC will be held on 27th vacates office in terms of Section 210 of retiring Auditors who have expressed
June 2019 at the Durdans Auditorium (11th the Companies Act No. 07 of 2007 and their willingness to continue in office as
floor) at 9.00 a.m. for this purpose to pass the following Company’s Auditors for the Financial
resolution as an Ordinary Resolution. Year ending 31st March 2020 and
The business to be brought forward before to authorise the Board of Directors
the meeting will be: “Resolved that the age limit stipulated to determine their remuneration.
in Section 210 of the Companies Act (Resolution 6)
1. To receive and consider the Annual No. 07 of 2007 shall not apply to Dr. A.
Report of the Directors and the D. P. A. Wijegoonewardene who is more 8. To authorise the Directors to determine
Statement of Accounts for the year than 70 years, and that he be appointed donations for the year 2019/20.
ended 31st March 2019 with the Report a Director of the Board in terms of (Resolution 7)
of the Auditors thereon. (Resolution 1) Section 211 of the Companies Act No.
07 of 2007.” (Resolution 4) By Order of the Board
2. To re-elect Mr. A. D. B. Talwatte who
retires by rotation in terms of Article 5. To re-appoint Mr. Y. N. R. Piyasena,
No. 58 of the Articles of Association Director who vacates office in terms of
and being eligible offers himself for re- Section 210 of the Companies Act No.
election. (Resolution 2) 07 of 2007 and for this purpose to pass
the following resolution as an Ordinary Nexia Corporate Consultants (Pvt) Ltd
3. To re-appoint Mr. A. S. Abeyewardene, Resolution. Secretaries
Director who vacates office in terms of
Section 210 of the Companies Act No. “Resolved that the age limit stipulated 10th May 2019
07 of 2007 and for this purpose to pass in Section 210 of the Companies Act
the following resolution as an Ordinary No. 07 of 2007 shall not apply to Mr.
Resolution. Y. N. R. Piyasena who is more than 1. A shareholder entitled to attend and
70 years, and that he be appointed a vote is entitled to appoint a proxy or
“Resolved that the age limit stipulated Director of the Board in terms of Section proxies to attend and vote instead of
in Section 210 of the Companies Act 211 of the Companies Act No. 07 of him/ her.
No. 07 of 2007 shall not apply to Mr. 2007.” (Resolution 5)
A. S. Abeyewardene who is more than 2. A Proxy need not be a shareholder of
70 years, and that he be appointed a 6. Declaration of dividends the Company.
Director of the Board in terms of Section
The Company paid two interim
211 of the Companies Act No. 07 of 3. A Form of Proxy accompanies this
dividends amounting to Rs. 4.46
2007.” (Resolution 3) notice.
(Rs. 0.86 + Rs. 3.60) per share to all
its shareholders for the year under
review. No further dividends have been
recommended by the Board.

Form of Attendance
I hereby record my presence at the 73rd Annual General Meeting of Ceylon Hospitals PLC, held on 27th June 2019 at the Durdans Auditorium
(11th Floor) of Ceylon Hospitals PLC No. 03, Alfred Place, Colombo 03 at 9.00 a.m.
Full name of shareholder : ............................................................................................................................................................................................
National Identity Card

number of shareholder : ............................................................................................................................................................................................
Address of shareholder : ............................................................................................................................................................................................
Name of Proxy holder

(If applicable) : ............................................................................................................................................................................................
National Identity Card

number of Proxy holder : ............................................................................................................................................................................................
Address of Proxy holder : ............................................................................................................................................................................................
No of shares held : ............................................................................................................................................................................................
Share certificate number : ............................................................................................................................................................................................
Signature of shareholder : ............................................................................................................................................................................................
Date : ............................................................................................................................................................................................
NOTE
Shareholders are requested to:
1. Bring the Form of Attendance when attending the Meeting and hand it over at the entrance of the meeting hall. Bring the National
Identity Card or Passport.
2. Shareholders appointing persons (other than Directors of the Company) to attend the Meeting are requested to indicate the number of
the National Identity Card of the Proxy holder on the Form of Proxy and request the proxy holder to bring their National Identity Card or
Passport with them.

Form of Proxy
Voting Shareholders
I/ We, Mr./ Mrs./ Miss ........................................................................................................................................................................................................of
..................................................................................................................................................................................................................................(address)
being a member of Ceylon Hospitals PLC, hereby appoint
Mr. A. E. Tudawe or failing him

Mr. S. P. Tudawe or failing him
Dr. A. D. P. A. Wijegoonewardene or failing him
Mr. U. D. Tudawe or failing him
Mr. Y. N. R. Piyasena or failing him
Mr. A. S. Abeyewardene or failing him
Mr. Su-ayid M. Ismail or failing him
Mr. A. D. B. Talwatte or failing him
Mr./ Mrs./ Miss .................................................................................................................................................................................................................. of
................................................................................................................................................................................................................................. (address)
as my/ our proxy to attend (and vote for me/ us) on my/ our behalf at the 73rd Annual General Meeting of the Company to be held on 27th
June 2019 and at any adjournment thereof.
NOTE
If the Proxy Form is signed by an Attorney, the relative Power of Attorney should also accompany the completed Form of Proxy, if it has not
already been registered with the Company.
RESOLUTIONS FOR AGAINST

1. To adopt the Statement of Accounts for the year ended 31st March 2019
2. To re-elect Mr. A. D. B. Talwatte
3. To re-appoint Mr. A. S. Abeyewardene
4. To re-appoint Dr. A. D. P. A. Wijegoonewardene
5. To re-appoint Mr. Y. N. R. Piyasena
6. To re-appoint Auditors
7. To authorise the Board of Directors to determine donations
Mark your preference with “”
Signed on this ......................... day of .............................................................................. 2019
..............................................................................
Signature

INSTRUCTIONS TO COMPLETE THE FORM OF PROXY
1. Kindly perfect the Form of Proxy after filling legibly your
full name and address, by signing in the space provided
and dating same.
2. If the Proxy Form is signed by an Attorney, the

relative Power of Attorney should also accompany the
completed form of proxy, if it has not already been
registered with the Company.
3. The completed Form of Proxy should be deposited at

the Registered Office of the Company at No. 03, Alfred
Place, Colombo 03. (not less than 48 hours before the
time appointed for the holding of the meeting).
4. A member is entitled to appoint a proxy to attend

instead of himself and a proxy need not be a member
of the Company.
Form of Proxy
Non-Voting Shareholders
I/ We, Mr./ Mrs./ Miss ........................................................................................................................................................................................................of
.................................................................................................................................................................................................................................(address)
being a member of Ceylon Hospitals PLC, hereby appoint
Mr. A. E. Tudawe or failing him

Mr. S. P. Tudawe or failing him
Dr. A. D. P. A. Wijegoonewardene or failing him
Mr. U. D. Tudawe or failing him
Mr. Y. N. R. Piyasena or failing him
Mr. A. S. Abeyewardene or failing him
Mr. Su-ayid M. Ismail or failing him
Mr. A. D. B. Talwatte or failing him
Mr./ Mrs./ Miss .................................................................................................................................................................................................................. of
................................................................................................................................................................................................................................. (address)
as my/ our proxy to attend on my/ our behalf at the 73rd Annual General Meeting of the Company to be held on 27th June 2019 and at any
adjournment thereof.
NOTE
If the Proxy Form is signed by an Attorney, the relative Power of Attorney should also accompany the completed Form of Proxy, if it has not
already been registered with the Company.
Signed on this ........................................ day of ................................................................. 2019
..............................................................................
Signature

INSTRUCTIONS TO COMPLETE THE FORM OF PROXY
1. Kindly perfect the Form of Proxy after filling legibly your
full name and address, by signing in the space provided
and dating same.
2. If the Proxy Form is signed by an Attorney, the

relative Power of Attorney should also accompany the
completed form of proxy, if it has not already been
registered with the Company.
3. The completed Form of Proxy should be deposited at

the Registered Office of the Company at No. 03, Alfred
Place, Colombo 03. (not less than 48 hours before the
time appointed for the holding of the meeting).
4. A member is entitled to appoint a proxy to attend

instead of himself and a proxy need not be a member
of the Company.
Corporate Information
NAME OF COMPANY LAWYERS

Ceylon Hospitals PLC Mr. D. F. R. Jayamaha
Hector Jayamaha Law Office
BRAND NAME
Contents
No. 228, Thimbirigasyaya Road
DURDANS Colombo 05
LEGAL FORM SECRETARIES

A quoted public company with limited Nexia Corporate Consultants (Pvt) Ltd
liability incorporated in Sri Lanka under the No. 181, Nawala Road
Companies Ordinance No. 51 of 1938 and Narahenpita
registered under the Companies Act No. 07
of 2007 REGISTRARS
Our Business Financial Reports SSP Corporate Services (Pvt) Ltd
Vision, Mission and Values 3 Annual Report of the Board of Directors on the COMPANY REGISTRATION NUMBER No. 546, Galle Road
Affairs of the Company 92
Financial Highlights 4 PQ 113 Colombo 03
Historical Time Line 6
Our Leadership 8
Report of the Related Party Transactions STOCK EXCHANGE LISTING
Review Committee (RPTRC) 98
The Ordinary Shares of the Company are
Our Leadership Report of the Nominations Committee 100
listed on the Colombo Stock Exchange of
Sri Lanka
Chairman’s Message 10 Audit Committee Report 101
Message from the Director Medical Services 14 Independent Auditor’s Report 103 REGISTERED OFFICE
Board of Directors 16 Consolidated Statement of Profit or Loss and No. 03, Alfred Place, Colombo 03
Senior Management Team 20 Other Comprehensive Income 106
Consolidated Statement of Financial Position 107 BANKERS
Performance and Capital Management Statement of Changes in Equity 108 Commercial Bank of Ceylon PLC
Value Creation Model 24 Statement of Cash Flows 110 Bank of Ceylon
Stakeholder Engagement 26 Notes to the Financial Statements 111 DFCC Bank PLC
Union Bank PLC
National Development Bank PLC
Social and Relationship Capital 31 Value Added Statement 160
Nations Trust Bank PLC
Human Capital 54 Ten Year Summary 161 Seylan Bank PLC
Manufactured Capital 62 Share Information 162 Sampath Bank PLC
Intellectual Capital 67 Notice of Meeting 166 Hatton National Bank PLC
Natural Capital 74 Form of Attendance 167 People’s Bank
Form of Proxy 169
Governance AUDITORS
Corporate Governance 78 Corporate Information IBC B. R. De Silva & Co. Chartered Accountants
No. 22/4, Vijaya Kumaranatunga Mawatha
Colombo 05
This report can be accessed online at

https://www.durdans.com
EXCELLENCE IN HEALTHCARE...FOR EVERYONE.
DURDANS HOSPITAL | ANNUAL REPORT 2018/19
EXCELLENCE IN
HEALTHCARE...
Durdans Hospital
No. 03, Alfred Place
Colombo 03
Sri Lanka
Tel : +94 (0) 11 214 0000
Fax : +94 (0) 11 257 5302
+94 (0) 11 237 2632
Email : [email protected]
ANNUAL REPORT 2018/19

Annual Report of Durdans Hospital

Uploaded by

Copyright:

Available Formats

Annual Report of Durdans Hospital

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Annual Report of Durdans Hospital

Uploaded by

Copyright:

Available Formats

EXCELLENCE IN HEALTHCARE...FOR EVERYONE.

DURDANS HOSPITAL | ANNUAL REPORT 2018/19

NAME OF COMPANY LAWYERS

LEGAL FORM SECRETARIES

This report can be accessed online at

The year under review has seen us rise to greater heights.

This report speaks of our year of expansion, strategic

2 Durdans Hospital | Annual Report 2018/19

Advancing Medical Excellence

Prestige Beyond Our Borders

Group 2015 2016 2017 2018 2019

Statement of Financial Position

REVENUE PROFIT AFTER TAX NET ASSETS PER SHARE

Rs. 5.8 Bn Rs. 376 Mn Rs. 151.83

4 Durdans Hospital | Annual Report 2018/19

6,000 700 600

5,000 600 500

Excellence in Healthcare...for everyone. 5

Historical Time Line

1939 1968 1993

1997 2001 2005

6 Durdans Hospital | Annual Report 2018/19

Excellence in Healthcare...for everyone. 7

... we aim to better ourselves year on

EXCELLENCE IN HEALTHCARE FOR

10 Durdans Hospital | Annual Report 2018/19

Excellence in Healthcare...for everyone. 11

Lane Wing and Durdans Heart Centre.

We intend creating a paradigm shift in the

12 Durdans Hospital | Annual Report 2018/19

Approval was obtained from the

Excellence in Healthcare...for everyone. 13

Message from the

care offered, a service-oriented culture

and the fact that we continue to improve

our standards in patient care and the

manner in which we offer it.

One of our key areas of focus is to create

In the backdrop of growing sedentary

14 Durdans Hospital | Annual Report 2018/19

Durdans Hospital continues to develop As the Director Medical Services, I

We value all our customers who patronise 09th May 2019

Excellence in Healthcare...for everyone. 15

CEYLON HOSPITALS PLC

16 Durdans Hospital | Annual Report 2018/19

DURDANS MEDICAL AND SURGICAL HOSPITAL (PVT) LTD

Excellence in Healthcare...for everyone. 17

DURDANS MEDICAL AND SURGICAL HOSPITAL (PVT) LTD CONTD.

ARJUN RISHYA FERNANDO AMINDA SANJEEVE TUDAWE

18 Durdans Hospital | Annual Report 2018/19

DURDANS HEART CENTRE (PVT) LTD

AJITH ERANDAN TUDAWE DR A NEVILLE DHARMAWANSA

Director/ Senior Vice President - Medical

Dr. Chandrawanse Rajapakse retired from

Excellence in Healthcare...for everyone. 19

Senior Management Team

20 Durdans Hospital | Annual Report 2018/19

Excellence in Healthcare...for everyone. 21

22 Durdans Hospital | Annual Report 2018/19