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Indraprastha Medical Corporation Ltd.

BSE: 532150 Sector: Health care
BSE 00:00 | 16 Sep 37.10 0






NSE 11:42 | 17 Sep 37.35 0.15






OPEN 37.20
VOLUME 12779
52-Week high 46.00
52-Week low 35.00
P/E 11.17
Mkt Cap.(Rs cr) 340
Buy Price 37.10
Buy Qty 45.00
Sell Price 38.50
Sell Qty 10.00
OPEN 37.20
CLOSE 37.10
VOLUME 12779
52-Week high 46.00
52-Week low 35.00
P/E 11.17
Mkt Cap.(Rs cr) 340
Buy Price 37.10
Buy Qty 45.00
Sell Price 38.50
Sell Qty 10.00

Indraprastha Medical Corporation Ltd. (INDRAMEDCO) - Director Report

Company director report

Dear Members

Your Directors are pleased to present their report and financialstatements for the financial year ended 31st March 2018.


(Rs. In Lacs)


FY 2017-18

FY 2016-17

I. Revenue from Operations



II. Other Income



III. Total Income (I+II)



Stores & Spares consumed



Employee benefits expense



Finance costs



Depreciation and amortization expense



Other expenses



Total expenses (IV)



V. Profit before exceptional items and tax (III-IV)



VI. Exceptional Items



VII. Profit/(loss) before tax (V-VI)



VIII. Tax expense:
(1) Current tax



(2) Deferred tax



IX. Profit/(loss) for the year (VII-VIII)



X. Other Comprehensive Income
(i) Items that will not be reclassified subsequently to profit or loss
Re-measurement gains (losses) on defined benefit plans



Income Tax effect (Deferred Tax)





XI. Total Comprehensive Income for the year (Comprising Profit (Loss) and Other



Comprehensive Income for the year)


The Company does not propose to transfer any amount to the GeneralReserve out of the amount available for appropriation in the current year. No amount wastransferred to the General Reserve out of the amount available for appropriation duringthe previous year.


The Directors are pleased to recommend payment of dividend on equityshares @ Rs. 1.50 per share (15 percent) for the financial year ended 31st March 2018(previous year Rs. 1.80 per share).



The Hospital remained committed to providing world class qualityhealthcare and services. Focus continued on improving operational efficiencies acrossfunctions improving patient services and enhancing safety for patients and staff.However during the year under review the financial performance of the Company remainedsubdued mainly due to a few key doctors leaving the hospital significant drop ininternational patients due to global socioeconomic recession non-issuance of medicalvisas from Pakistan steep currency devaluation in Nigeria closure of Indian Embassy inIraq because of conflict Nepal Government's order to discontinue OPD's by any foreigndoctor in Nepal delay in renewal of kidney transplant licence for the hospital and thekidney transplant program of the hospital remaining suspended for about 2 months. Duringthe year under review the Company's total income decreased from Rs. 76617.33 lacs to Rs.74995.51 lacs in the previous year . The Profit Before Tax (PBT) decreased by 17.91% fromRs. 4187.91 lacs to Rs. 3437.79 lacs and the Profit After Tax (PAT) decreased by 20.76%from Rs. 2693.94 lacs to Rs. 2134.57 lacs in the previous year. Despite the factors whichimpacted the growth of revenue various initiatives have been taken to improve the overallbusiness financial and operational performance of the Company viz: -

1. Appointment of Consultants in key Specialities

A new bariatric surgery team led by Dr. Atul Peters has joined thehospital in August 2017. The team has done more than 100 bariatric surgeries sincejoining. There is a huge potential in this field and the number of surgeries is expectedto increase in future.

2. Fixed Price Packages

Fixed Price Packages were introduced for major procedures aimed atdelivering assurance guarantee transparency and peace of mind to our patients in regardto the cost of care rendered. Total knee replacement campaign was promoted and showedconsiderable response.

3. Promoting International Business

In order to promote our international business our Consultantsvisited several countries and CMEs OPDs KOLs meetings Annual conferences etc. wereorganized.

Focus on Iraq which has a large potential patient base Handover ofour information centre at Nepal to a leading medical tourism company to act as a patientreferral centre for the hospital Signed up an exclusivity contract with the leadinghealthcare facilitator at Uzbekistan for referral of patients to the hospital Shiftingfocus from self-payment to government and insurance supported patients from Nigeria.

Philippines has been identified as a new market for PaediatricLiver Transplantation program. Eight babies from this country had undergone LiverTransplant in the last financial year. A dedicated Apollo Information Centre was opened inNairobi Kenya An on ground resource in Myanmar was appointed to increase the focus onlocal doctors and hospitals coverage.

OPDs and camps in Bangladesh which were suspended due tonon-issuance of licences by Ministry of Health Bangladesh were resumed after a gap oftwo years.

4. Healthy Heart Program

With exponential increase in heart disease and increasing number ofyoung people being affected by cardiac ailments the hospital started the "HealthyHeart Program". This program aims to prevent and reverse heart disease. The HealthyHeart annual package includes regular check-ups consultations diet plans Yogameditation physiotherapy sessions etc.

5. Brand Enhancement

Brandawareness programs to make more people aware of the services andclinical acumen available at Indraprastha Apollo were initiated. With the concerted aimof expanding the reach of Apollo and enhancing connect with local communities - patientsdoctors and society alike - a major thrust in activities in neighborhood and Tier 2 andTier 3 cities in North India and emerging markets for the healthcare sector wereundertaken. This included society branding morning walkers general multispecialty campshealth talks sports events outreach OPDs and loyalty programmes.

Press and media engagements like press conferences one-on-one meetseditorial roundtables relationship building meetings and other outreach activities wereextensively undertaken in North India.

Special engagement programmes were conducted for brand positioning.These include the Privilege Card Launch programmes at Moradabad with Exporters & TeaTraders Associations partnership with Pinkathon for Breast Cancer Awareness World HeartDay celebrations at Lodhi Garden supporting Shri Sadhguru Jaggi Vasudev's ‘Rally forRivers' initiative Patient Support Group for Bariatrics Cochlear Implants and DownSyndrome an engagement event with Transplant recipients and donors on Valentine's Dayquarterly Bariatric Support Group Meet for patients and their families and quarterly"Breast Cancer Patients Support Meet" a guest speaker including BK SisterShivani

6. Marketing & Outreach Campaigns

With an intent to reach out to masses and maintain our position as theleaders in our key COEs special campaigns like United Against Cancer Heart MattersWorld Health Day World Heart Day World Blood Donor Day Winter Health Check World AidsDay Mother's Day Father's Day World Diabetes Day World Antibiotic Day Hand HygieneDay International Women's Day Emergency & Regrow Campaigns are few amongst the othermajor campaigns. These campaigns were promoted through Print Media Radio Digital andon-ground activities.

Digital marketing was used effectively to reach target customers in theoverseas and domestic markets through optimisation of Key words Adwords display bannersdedicated landing pages regional languages advertisements. Apollo Hospital Noidacontinued to perform well across all operational parameters and remained one of theleading destinations for Mother and Child Care Dialysis and Apollo Health Checks. Italso performed more than one hundred kidney transplants and has emerged as one of the bestkidney transplant units in the State of Uttar Pradesh among Private Hospitals. In a PublicInterest Litigation (PIL) the Hon'ble High Court of Delhi had held that free treatmentprovided by the Hospital as per the terms of the lease deed shall be inclusive ofmedicines and consumables. The Company had filed a Special Leave Petition (SLP) before theHon'ble Supreme Court of India against the impugned judgment and order of the Hon'ble HighCourt of Delhi. The Hon'ble Supreme Court of India had admitted the SLP and passed aninterim order on 30.11.2009. In pursuance of the interim order the Hospital is providingfree treatment to the patients referred by the Govt. of NCT of Delhi exclusive ofmedicines and medical consumables. The SLP is pending before the Supreme Court of India. ANodal Medical Officer deputed by the Directorate of Health Services is present in thehospital to support guide and monitor the treatment of patients referred by theGovernment. During the year a total of 25625 patients (22330 Out Patients and 3295 InPatients) were treated under the free category.


(A) Conservation of Energy

The Hospital has been continuously engaged in activities related toconservation of Electrical energy reduction in fresh water usage and reduction in cost ofelectricity. _ For Energy conservation focus was on the cooling towers as they areoperating 24/7/365. The cooling towers have been made fully automatic to save electricityand fresh water. Ultra-filtered treated STP water is used in the cooling towers and it isexpected to yield reduction in the consumption of fresh water to the tune of 11000 KL perannum.

In order to reduce purchased cost of Electricity partial powerpurchase was done from Energy exchange and green power purchase through bilateralagreement. Net cost benefit of over Rs. 80 lacs was achieved during 2017-18.

In continuity from previous years 372 conventional light fittings werereplaced with the LED-type energy saving light fixtures which has resulted in reduction of114 KWH/ Day. The net savings from electricity consumption during the year through variousinitiatives was approximately 250 000 KWH.

(B) Technology Absorption:

The Hospital continued its efforts to maintain standards at par withbest hospitals globally. Investment was made in the latest technology in medical careincluding new-age technology upgrades.

Extracorporeal membrane oxygenation (ECMO):

Extracorporeal membrane oxygenation (ECMO) also known asextracorporeal life support (ECLS) is an extracorporeal technique for providing prolongedcardiac and respiratory support to persons whose heart and lungs are unable to provide anadequate amount of gas exchange or perfusion to sustain life. The technology for ECMO islargely derived from cardiopulmonary bypass which provides shorter-term support.

This intervention has mostly been used on children but it is seeingmore use in adults with cardiac and respiratory failure. ECMO works by removing blood fromthe person's body and artificially removing the carbon dioxide and oxygenating red bloodcells. Generally it is used either post-cardiopulmonary bypass or in late stage treatmentof a person with profound heart and/or lung failure although it is now seeing use as atreatment for cardiac arrest in certain centers allowing treatment of the underlyingcause of arrest while circulation and oxygenation are supported.

Hyperthermic intraperitoneal chemotherapy (HIPEC)

Hyperthermic intraperitoneal chemotherapy (HIPEC) is part of amultimodal treatment plan for peritoneal mesothelioma and other abdominal cancers. Theprocedure is combined with surgery and a special approach to chemotherapy. Cytoreductionand HIPEC have signi_cantly improved survival for peritoneal mesothelioma patients butthe role of heated chemotherapy in pleural mesothelioma treatment is less clear.

Unlike standard chemotherapy doctors do not offer HIPEC in pill formor inject it into an IV or intravenous line. Instead they add the drugs to a heatedsolution and pump the mixture directly into the patient's abdomen. This phase of theprocedure similar to a hot water bath for cancer-laden tissues is performed immediatelyafter cytoreductive surgery.

Vacuum-assisted breast biopsy (VABB)

Vacuum-assisted breast biopsy is a tissue sampling technique that usesa special instrument and imaging guidance to remove samples of breast tissue through asingle small skin incision. This technique allows the surgeon to remove more tissuethrough a single incision than is possible with a traditional core biopsy and is a muchless invasive procedure than an open surgical biopsy. For these reasons vacuum-assistedbreast biopsy is becoming more common as a diagnostic tool in the management of breastlumps and abnormalities.


(a) Activities relating to exports; initiatives taken to increaseexports; development of new export markets for products and services; and export plans

The Company is engaged in the healthcare business and is not carryingon any export activities. The Hospital has been empanelled with eminent internationalinsurance companies and has appointed healthcare facilitators in various countries tocater to international patients.

(b) Total Foreign Exchange Earnings and Outgo

During the year under review foreign exchange earnings and outgo wereas under:-Earnings:______ Rs. 15575.13 _lacs

Outgo___ :_______Rs._ 2549.26 _lacs


Five (5) Board meetings were held during the financial year ended 31stMarch 2018. The dates of the meetings are as follows: 26th May 2017 28th July 201726th September 2017 14th November 2017 and 7th February 2018. The intervening gapbetween the meetings was with in the period prescribed under the Companies Act 2013.


Mr. Jaideep Gupta has resigned from the position of Managing Directorof the Company effective from the close of the business hours on 31st December 2017. Mr.Ashok Bajpai has been appointed as Additional Director and Managing Director of theCompany in place of Mr. Jaideep Gupta for a period of 5 years effective from 1stJanuary 2018 subject to the approval of the shareholders and such other approvals asmay be necessary. Dr. B. Venkataraman and Prof. V. N. Rajasekharan Pillai have completedtheir terms of appointment as Independent Directors of the Company on 31st March 2018and hence have retired as Independent Directors from the Board of Directors of theCompany effective from the close of the business hours on 31st March 2018.

In accordance with the provisions of the Companies Act 2013 andthe Articles of Association of the Company Ms. Suneeta Reddy and Ms. Shobana KamineniDirectors of the Company shall retire by rotation at the ensuing Annual General Meeting.Ms. Suneeta Reddy and Ms. Shobana Kamineni being eligible have offered themselves forre-election. In pursuance to the provisions of Section 203 of the Companies Act 2013 Mr.Ashok Bajpai – Managing Director Mr. Ajay Kumar Singhal – Vice President cumCompany Secretary and Mr. Chander Prakash Tyagi – Chief Financial Officer are theKey Managerial Personnel of the Company.

There has been change in the Key Managerial

Personnel during the year. Mr. Ashok Bajpai – Managing Directorhas joined in place of Mr. Jaideep Gupta and Mr. Chander Prakash Tyagi has been appointedChief Financial Officer in place of Mr. P. Shivakumar – Chief Financial and OperatingOfficer.


The Company has received declarations from all the IndependentDirectors of the Company confirming that they meet the criteria of independence as laiddown in Section 149(6) of the Companies Act 2013.


The composition of the Audit Committee is given in the CorporateGovernance Report.

All recommendations of the Audit Committee have been accepted by theBoard of Directors of the Company.


The Company has established a vigil mechanism for Directors andEmployees to report their concerns about unethical behavior actual or suspected fraud orviolation of the company's code of conduct or ethics policy or any other grievance thedetails of which are given in the Corporate Governance Report. The Whistle Blower Policymay be accessed on the Company's website on the link Whistle%20Blower%20Policy.pdf. During the yearunder review no matter has been received under Whistle Blower Policy of the Company.


The Company has zero tolerance towards sexual harassment at theworkplace and has framed rules on prevention prohibition and redressal of sexualharassment in line with the provisions of the Sexual Harassment of Women at Workplace(Prevention Prohibition and Redressal) Act 2013 and the rules framed thereunder. Duringthe calendar year 2017 the Company had received 5 complaints which were duly investigatedand redressed.


Your Directors state that:

in the preparation of the annual accounts the applicable accountingstandards have been followed and no material departures have been made from the same; theappropriate accounting policies have been selected and applied consistently and have madejudgments and estimates that are reasonable and prudent so as to give a true and fair viewof the state of affairs of the Company as at 31st March 2018 and of the profit of theCompany for the year ended 31st March 2018.

The proper and sufficient care has been taken for the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act 2013for safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities; the annual accounts have been prepared on an ongoing concern basis.

the internal financial controls to be followed by the Company had beenlaid down and such internal financial controls are adequate and operating effectively; theproper systems had been devised to ensure compliance with the provisions of all applicablelaws and such systems were adequate and operating effectively.


The Company has no subsidiaries or associate companies. The Companyalso does not have any joint venture.


Extract of Annual Return of the Company is annexed herewith as Annexure- 1 to this Report.


M/s S.N. Dhawan & Co. LLP Chartered Accountants were appointed asStatutory Auditors at the Twenty-ninth Annual General Meeting (AGM) of the Company held on26th September 2017 for a term of five consecutive years subject to ratification oftheir appointment by the Members at every AGM. The requirement to place the matterrelating to appointment of Auditors for ratification by members at every Annual GeneralMeeting is done away with vide notification dated May 7 2018 issued by the Ministry ofCorporate Affairs New Delhi. Accordingly no resolution is proposed for ratification ofappointment of Auditors. The Report given by M/s. S. N. Dhawan & Co. LLP StatutoryAuditors on the financial statement of the Company for the year 2017-18 is part of theAnnual Report. The Notes on financial statement referred to in the Auditors' Report areself-explanatory and do not call for any further comment. The Auditors' Report does notcontain any qualification reservation or adverse remark. No instances or matters of fraudhave been reported by the Auditors to the Audit Committee or the Board.


The Board has appointed M/s RSM & Co. Practicing CompanySecretaries to conduct Secretarial Audit for the financial year 2017-18. The SecretarialAudit Report for the financial year ended 31st March 2018 is annexed herewith marked as Annexure-2 to this

Report. The Secretarial Audit Report does not contain anyqualification reservation or adverse remark.


The Board has appointed M/s. Devarajan Swaminathan and Co. CostAccountants as the Cost Auditors to conduct the audit of the cost records of the Companyfor the _nancial year ended 31st March 2018. The Cost Auditor has given the Cost AuditReport for the _nancial year ended 31st March 2018 and the Cost Audit Report does notcontain any quali_cation reservation or adverse remark.

Pursuant to Section 148 of the Companies Act 2013 read with theCompanies (Cost Records and Audit) Amendment Rules 2014 the Directors on therecommendation of the Audit Committee appointed M/s Devarajan Swaminathan and Co. CostAccountants (ICWA Registration No.100669) to audit the cost accounts of the Company forthe financial year 2018-19 on a remuneration of Rs. 5.50 lacs.

As required under the Companies Act 2013 the remuneration payable tothe cost auditor is required to be placed before the Members in a general meeting fortheir ratification. Accordingly a resolution seeking Member's ratification for theremuneration payable to M/s Devarajan Swaminathan and Co. Cost Accountants (ICWARegistration No.100669) in the Notice convening the Annual General Meeting.


During the year under review the Company has not accepted any depositunder Chapter V of the Companies Act 2013.


No significant or material orders were passed by the Regulators orCourts or Tribunals which impact the going concern status and Company's operations in thefuture.


The Company has an internal financial control system commensurate withthe size scale and complexity of operations to ensure that the Company's financialstatements are accurate sufficient and credible all assets are safeguarded and protectedagainst losses that may arise from unauthorized use or disposition incorrect use anyincident of fraud and inappropriate storage. Such internal control procedures areaugmented by an extensive programme of internal and external audits and periodic reviewsby the management. Reasonable assurance is obtained based on evidence regarding processesfollowed and their appropriate testing of controls that such systems are adequatecomprehensive and are working effectively. The Audit Committee evaluates the internalfinancial control system periodically.



During the year under review the Company has not given any loan normade investment nor given guarantees under Section 186 of the Companies Act 2013.


The Company has established an Enterprise wide Risk Management (ERM)Framework and has constituted a Risk Management Committee comprising senior executivesheaded by the Managing Director. The Company also has a Risk Management Policy foridentification evaluation and mitigation of business risks and opportunities. Thisframework helps establish ownership throughout the organization and embeds risk managementas an integral part of the business its goals and objectives. It helps the decisionmakers of the organization effectively recognize and to take account of uncertainty thenature of that uncertainty and to work towards a solution to address the same. The RiskManagement Committee identify elements of risks in different area of operations anddevelops a policy for actions associated to mitigate the risks. The Risk ManagementCommittee reviews and approves the risk management report on a quarterly basis beforeplacing the same before the Board of Directors.


The Company is committed to conducting its business in a sociallyresponsible ethical and environmental friendly manner and to continuously work towardsimproving the quality of life of the communities where it operates. The Company has a dulyconstituted CSR Committee which is responsible for ful_lling the CSR objectives of theCompany. As on 31 March 2018 the Committee comprised three Directors viz. Ms. VineetaRai Mr. S. Regunathan and Ms. Suneeta Reddy. Ms. Vineeta Rai is the Chairperson of theCSR Committee.

As part of its initiatives under Corporate Social Responsibility (CSR)the Company has undertaken projects in the areas of Sanitation Promoting Education andHealth. These projects are in accordance with Schedule VII of the Companies Act 2013.


The Company has in place a CSR policy which lays down its philosophyand approach towards CSR commitment. The CSR Policy may be accessed on the Company'swebsite on the link

Under the CSR Policy the Company focuses primarily on the followingprogrammes: A. Community Development B. Healthcare C. Education and Skills Development

D. Research in Healthcare

The report on CSR activities for the financial year 2017-18 containingparticulars specified in Companies (CSR Policy) Rules 2014 including an update on the CSRinitiatives taken by the Company during the year is given in Annexure - 3 and formsan integral part of this Report.


All contracts / arrangements / transactions entered by the Companyduring the _nancial year with related parties were in the ordinary course of business andon an arm's length basis. During the year the Company had not entered into any contract /arrangement / transaction with related parties which could be considered material inaccordance with the policy of the Company on materiality of related party transactions.Accordingly the disclosure of related party transactions as required under Section134(3)(h) of the Companies Act 2013 in Form AOC 2 is not applicable to your Company. Thepolicy on materiality of related party transactions as approved by the Board may beaccessed on the Company's website at


The Evaluation Criteria for Appointment/Re-appointment of IndependentDirectors along with Evaluation Criteria for Performance Evaluation of IndependentDirectors/ Directors/Chairperson and Performance Evaluation of the Board of Directors byeach director as laid down by the Nomination and Remuneration Committee is annexedherewith marked as Annexure - 4 to this Report. During the year the evaluationcycle was completed by the Company internally which included the evaluation of theIndependent Directors by the Board of Directors and evaluation of Non-IndependentDirectors and the Board as a whole by Independent Directors of the Company.


The Board has on the recommendation of the Nomination and RemunerationCommittee approved a policy for selection and appointment of Directors Senior Managementand for determining their remuneration. The Remuneration Policy is annexed herewith markedas Annexure – 5 to this Report.


In terms of the provisions of Section 197(12) of the Companies Act2013 read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 as amended a_ statement showing the names and otherparticulars of the employees drawing remuneration in excess of the limits set out in thesaid rules are provided in the Annual Report which forms part of this Report.

Disclosures relating to remuneration and other details as requiredunder Section 197(12) of the Companies Act 2013 read with Rule 5(1) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 are also provided inthe Annual Report which forms part of this Report.

Having regard to the provisions of Section 136(1) read with therelevant provisions of the Companies Act 2013 the Annual Report excluding the aforesaidinformation is being sent to the members of the Company. The said information is availablefor inspection at the Registered Office of the Company during working hours. Any memberinterested in obtaining such information may write to the Vice President cum CompanySecretary and the same will be furnished free of cost.


Pursuant to Regulation 34 of the SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 (Listing Regulations) a Management Discussionand Analysis Report and a Report on Corporate Governance is attached with this Report. ACertificate from Practising Company Secretary regarding the Compliance by the Company ofthe conditions stipulated in Regulations Part C of Schedule V of the Listing Regulationsis also attached with this report.

A declaration by the Managing Director pursuant to Regulations Part Cof Schedule V of the Listing Regulations stating that all the Board Members and SeniorManagement Personnel of the Company have affirmed compliance with the Code of Conductduring the financial year ended 31st March 2018 is also attached with this report.


The Industrial Relations scenario continued to be cordial during theyear under review.


No material change and commitment affecting the financial position ofthe Company have occurred between the financial year ended on 31st March 2018 and thedate of the report.


The Directors wish to thank and deeply acknowledge the cooperationassistance and support extended by the financial institutions banks the Government ofDelhi and the Union Government.

The Directors also wish to place on record their appreciation for theoverall support and cooperation received from the consultant doctors and employees at alllevels.

For and on behalf of the Board

Dr. Prathap C Reddy

(DIN: 00003654)

Vice Chairman

Ashok Bajpai

Place: New Delhi

(DIN : 02463754)

Date: 28th July 2018

Managing Director