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Indraprastha Medical Corporation Ltd.


Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE681B01017 | SECTOR: Hospitals & Medical Services

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Annual Report

For Year :
2018 2016 2015 2014 2013 2012 2011 2010 2009

Director’s Report

Dear Members,

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


(Rs. In Lacs)



FY 2017-18

FY 2016-17


Revenue from Operations




Other Income




Total Income (I II)





Stores & Spares consumed



Employee benefits expense



Finance costs



Depreciation and amortization expense



Other expenses



Total expenses (IV)




Profit before exceptional items and tax (III-IV)




Exceptional Items




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




Tax expense:

(1) Current tax



(2) Deferred tax




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




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)






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 General Reserve out of the amount available for appropriation in the current year. No amount was transferred to the General Reserve out of the amount available for appropriation during the previous year.


The Directors are pleased to recommend payment of dividend on equity shares @ 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 quality healthcare and services. Focus continued on improving operational efficiencies across functions, improving patient services and enhancing safety for patients and staff.

However, during the year under review, the financial performance of the Company remained subdued mainly due to a few key doctors leaving the hospital, significant drop in international patients due to global socio economic recession, non-issuance of medical visas from Pakistan, steep currency devaluation in Nigeria, closure of Indian Embassy in Iraq because of conflict, Nepal Government’s order to discontinue OPD’s by any foreign doctor in Nepal, delay in renewal of kidney transplant licence for the hospital and the kidney transplant program of the hospital remaining suspended for about 2 months.

During the 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%, from Rs. 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 which impacted the growth of revenue, various initiatives have been taken to improve the overall business, 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 the hospital in August 2017. The team has done more than 100 bariatric surgeries since joining. There is a huge potential in this field and the number of surgeries is expected to increase in future.

2. Fixed Price Packages

Fixed Price Packages were introduced for major procedures, aimed at delivering assurance, guarantee, transparency and peace of mind to our patients in regard to the cost of care rendered. Total knee replacement campaign was promoted and showed considerable response.

3. Promoting International Business

- In order to promote our international business, our Consultants visited several countries and CMEs, OPDs, KOLs meetings, Annual conferences etc. were organized.

- Focus on Iraq which has a large potential patient base

- Handover of our information centre at Nepal to a leading medical tourism company to act as a patient referral centre for the hospital

- Signed up an exclusivity contract with the leading healthcare facilitator at Uzbekistan for referral of patients to the hospital

- Shifting focus from self-payment to government and insurance supported patients from Nigeria.

- Philippines has been identified as a new market for Paediatric Liver Transplantation program. Eight babies from this country had undergone Liver Transplant in the last financial year.

- A dedicated Apollo Information Centre was opened in Nairobi, Kenya

- An on ground resource in Myanmar was appointed to increase the focus on local doctors and hospitals coverage.

- OPDs and camps in Bangladesh which were suspended due to non-issuance of licences by Ministry of Health, Bangladesh, were resumed after a gap of two years.

4. Healthy Heart Program

With exponential increase in heart disease and increasing number of young people being affected by cardiac ailments, the hospital started the “Healthy Heart Program”. This program aims to prevent and reverse heart disease. The Healthy Heart annual package includes regular check-ups, consultations, diet plans, Yoga, meditation, physiotherapy sessions, etc.

5. Brand Enhancement

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

Press and media engagements like press conferences, one-on-one meets, editorial roundtables, relationship building meetings and other outreach activities were extensively undertaken in North India.

Special engagement programmes were conducted for brand positioning. These include the Privilege Card Launch programmes at Moradabad with Exporters & Tea Traders Associations, partnership with Pinkathon for Breast Cancer Awareness, World Heart Day celebrations at Lodhi Garden, supporting Shri Sadhguru Jaggi Vasudev’s ‘Rally for Rivers’ initiative, Patient Support Group for Bariatrics, Cochlear Implants and Down Syndrome, an engagement event with Transplant recipients and donors on Valentine’s Day, quarterly Bariatric Support Group Meet for patients and their families, and quarterly “Breast Cancer Patients Support Meet” a guest speaker including BK Sister Shivani

6. Marketing & Outreach Campaigns

With an intent to reach out to masses and maintain our position as the leaders in our key COEs, special campaigns like United Against Cancer, Heart Matters, World Health Day, World Heart Day, World Blood Donor Day, Winter Health Check, World Aids Day, Mother’s Day, Father’s Day, World Diabetes Day, World Antibiotic Day, Hand Hygiene Day, International Women’s Day, Emergency & Regrow Campaigns are few amongst the other major campaigns. These campaigns were promoted through Print Media, Radio, Digital and on-ground activities.

Digital marketing was used effectively to reach target customers in the overseas and domestic markets through optimisation of Key words, Adwords, display banners, dedicated landing pages, regional languages advertisements.

Apollo Hospital, Noida continued to perform well across all operational parameters and remained one of the leading destinations for Mother and Child Care , Dialysis and Apollo Health Checks. It also performed more than one hundred kidney transplants and has emerged as one of the best kidney transplant units in the State of Uttar Pradesh among Private Hospitals.

In a Public Interest Litigation (PIL), the Hon’ble High Court of Delhi had held that free treatment provided by the Hospital as per the terms of the lease deed shall be inclusive of medicines and consumables. The Company had filed a Special Leave Petition (SLP) before the Hon’ble Supreme Court of India against the impugned judgment and order of the Hon’ble High Court of Delhi. The Hon’ble Supreme Court of India had admitted the SLP and passed an interim order on 30.11.2009. In pursuance of the interim order, the Hospital is providing free treatment to the patients referred by the Govt. of NCT of Delhi exclusive of medicines and medical consumables. The SLP is pending before the Supreme Court of India.

A Nodal Medical Officer deputed by the Directorate of Health Services is present in the hospital to support, guide and monitor the treatment of patients referred by the Government. During the year, a total of 25625 patients (22330 Out Patients and 3295 In Patients) were treated under the free category.


(A) Conservation of Energy

The Hospital has been continuously engaged in activities related to conservation of Electrical energy, reduction in fresh water usage and reduction in cost of electricity.

For Energy conservation, focus was on the cooling towers as they are operating 24/7/365. The cooling towers have been made fully automatic to save electricity and fresh water. Ultra-filtered treated STP water is used in the cooling towers and it is expected to yield reduction in the consumption of fresh water to the tune of 11000 KL per annum.

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

In continuity from previous years, 372 conventional light fittings were replaced with the LED-type energy saving light fixtures which has resulted in reduction of 114 KWH/ Day.

The net savings from electricity consumption during the year through various initiatives was approximately 2,50,000 KWH.

(B) Technology Absorption:

The Hospital continued its efforts to maintain standards at par with best hospitals globally. Investment was made in the latest technology in medical care, including new-age technology upgrades.

Extracorporeal membrane oxygenation (ECMO):

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

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

Hyperthermic intraperitoneal chemotherapy (HIPEC)

Hyperthermic intraperitoneal chemotherapy (HIPEC) is part of a multimodal treatment plan for peritoneal mesothelioma and other abdominal cancers. The procedure is combined with surgery and a special approach to chemotherapy. Cytoreduction and HIPEC have significantly improved survival for peritoneal mesothelioma patients, but the role of heated chemotherapy in pleural mesothelioma treatment is less clear.

Unlike standard chemotherapy, doctors do not offer HIPEC in pill form or inject it into an IV or intravenous line. Instead, they add the drugs to a heated solution and pump the mixture directly into the patient’s abdomen. This phase of the procedure, similar to a hot water bath for cancer-laden tissues, is performed immediately after cytoreductive surgery.

Vacuum-assisted breast biopsy (VABB)

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


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

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

(b) Total Foreign Exchange Earnings and Outgo

During the year under review, foreign exchange earnings and outgo were as under:-

Earnings: Rs. 15,575.13 lacs

Outgo : Rs. 2,549.26 lacs


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


- Mr. Jaideep Gupta has resigned from the position of Managing Director of 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 the Company, in place of Mr. Jaideep Gupta, for a period of 5 years effective from 1st January, 2018, subject to the approval of the shareholders and such other approvals, as may be necessary.

- Dr. B. Venkataraman and Prof. V. N. Rajasekharan Pillai have completed their terms of appointment as Independent Directors of the Company, on 31st March, 2018, and hence, have retired as Independent Directors from the Board of Directors of the Company effective from the close of the business hours on 31st March, 2018.

- In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Ms. Suneeta Reddy and Ms. Shobana Kamineni, Directors 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 for re-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 cum Company Secretary and Mr. Chander Prakash Tyagi - Chief Financial Officer, are the Key Managerial Personnel of the Company.

- There has been change in the Key Managerial Personnel during the year. Mr. Ashok Bajpai -Managing Director has joined in place of Mr. Jaideep Gupta and Mr. Chander Prakash Tyagi has been appointed Chief Financial Officer in place of Mr. P. Shivakumar - Chief Financial and Operating Officer.


The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as laid down in Section 149(6) of the Companies Act, 2013.


The composition of the Audit Committee is given in the Corporate Governance Report.

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


The Company has established a vigil mechanism for Directors and Employees to report their concerns about unethical behavior, actual or suspected, fraud or violation of the company’s code of conduct or ethics policy, or any other grievance, the details of which are given in the Corporate Governance Report. The Whistle Blower Policy may be accessed on the Company’s website on the link http://www.apollohospdelhi.com/downloads/ Whistle%20Blower%20Policy.pdf. During the year under review, no matter has been received under Whistle Blower Policy of the Company.


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


Your Directors state that:

- in the preparation of the annual accounts, the applicable accounting standards have been followed and no material departures have been made from the same;

- the appropriate accounting policies have been selected and applied consistently and have made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2018 and of the profit of the Company for the year ended 31st March, 2018.

- The proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

- the annual accounts have been prepared on an ongoing concern basis.

- the internal financial controls to be followed by the Company had been laid down and such internal financial controls are adequate and operating effectively;

- the proper systems had been devised to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively.


The Company has no subsidiaries or associate companies. The Company also 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 as Statutory Auditors at the Twenty-ninth Annual General Meeting (AGM) of the Company held on 26th September, 2017, for a term of five consecutive years, subject to ratification of their appointment by the Members at every AGM.

The requirement to place the matter relating to appointment of Auditors for ratification by members at every Annual General Meeting is done away with vide notification dated May 7, 2018, issued by the Ministry of Corporate Affairs, New Delhi. Accordingly, no resolution is proposed for ratification of appointment of Auditors.

The Report given by M/s. S. N. Dhawan & Co. LLP, Statutory Auditors on the financial statement of the Company for the year 2017-18 is part of the Annual Report. The Notes on financial statement referred to in the Auditors’ Report are self-explanatory and do not call for any further comment. The Auditors’ Report does not contain any qualification, reservation or adverse remark.

No instances or matters of fraud have been reported by the Auditors to the Audit Committee or the Board.


The Board has appointed M/s RSM & Co., Practicing Company Secretaries, to conduct Secretarial Audit for the financial year 2017-18. The Secretarial Audit 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 any qualification, reservation or adverse remark.


The Board has appointed M/s. Devarajan Swaminathan and Co., Cost Accountants, as the Cost Auditors to conduct the audit of the cost records of the Company for the financial year ended 31st March, 2018. The Cost Auditor has given the Cost Audit Report for the financial year ended 31st March 2018, and the Cost Audit Report does not contain any qualification, reservation or adverse remark.

Pursuant to Section 1 48 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Amendment Rules, 2014, the Directors on the recommendation of the Audit Committee, appointed M/s Devarajan Swaminathan and Co., Cost Accountants (ICWA Registration No.100669) to audit the cost accounts of the Company for the financial year 2018-19 on a remuneration of Rs. 5.50 lacs.

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


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


No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company’s operations in the future.


The Company has an internal financial control system, commensurate with the size, scale and complexity of operations to ensure that the Company’s financial statements are accurate, sufficient and credible, all assets are safeguarded and protected against losses that may arise from unauthorized use or disposition, incorrect use, any incident of fraud and inappropriate storage. Such internal control procedures are augmented by an extensive programme of internal and external audits, and periodic reviews by the management. Reasonable assurance is obtained based on evidence regarding processes followed and their appropriate testing of controls that such systems are adequate, comprehensive and are working effectively.

The Audit Committee evaluates the internal financial control system periodically.


During the year under review, the Company has not given any loan nor made 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 executives headed by the Managing Director.

The Company also has a Risk Management Policy for identification, evaluation and mitigation of business risks and opportunities. This framework helps establish ownership throughout the organization and embeds risk management as an integral part of the business, its goals and objectives. It helps the decision makers of the organization effectively recognize and to take account of uncertainty, the nature of that uncertainty, and to work towards a solution to address the same.

The Risk Management Committee identify elements of risks in different area of operations and develops a policy for actions associated to mitigate the risks. The Risk Management Committee reviews and approves the risk management report on a quarterly basis before placing the same before the Board of Directors.


The Company is committed to conducting its business in a socially responsible, ethical and environmental friendly manner, and to continuously work towards improving the quality of life of the communities where it operates.

The Company has a duly constituted CSR Committee, which is responsible for fulfilling the CSR objectives of the Company. As on 31 March, 2018, the Committee comprised three Directors viz. Ms. Vineeta Rai, Mr. S. Regunathan and Ms. Suneeta Reddy. Ms. Vineeta Rai is the Chairperson of the CSR Committee.

As part of its initiatives under Corporate Social Responsibility (CSR), the Company has undertaken projects in the areas of Sanitation, Promoting Education and Health. 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 philosophy and approach towards CSR commitment. The CSR Policy may be accessed on the Company’s website on the link http://www. apollohospdelhi.com/downloads/corporate-social-responsibility-policy.pdf

Under the CSR Policy, the Company focuses primarily on the following programmes:

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, containing particulars specified in Companies (CSR Policy) Rules, 2014 including an update on the CSR initiatives taken by the Company during the year is given in Annexure - 3 and forms an integral part of this Report.


All contracts / arrangements / transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on 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 in accordance with the policy of the Company on materiality of related party transactions. Accordingly, the disclosure of related party transactions as required under Section 134(3)(h) of the Companies Act, 2013 in Form AOC 2 is not applicable to your Company. The policy on materiality of related party transactions as approved by the Board may be accessed on the Company’s website at http:// www.apollohospdelhi.com/downloads/materiality-of-related-party-transactions.pdf


The Evaluation Criteria for Appointment/Re-appointment of Independent Directors along with Evaluation Criteria for Performance Evaluation of Independent Directors/ Directors/Chairperson and Performance Evaluation of the Board of Directors by each director, as laid down by the Nomination and Remuneration Committee, is annexed herewith marked as Annexure - 4 to this Report.

During the year, the evaluation cycle was completed by the Company internally which included the evaluation of the Independent Directors by the Board of Directors and evaluation of Non-Independent Directors and the Board as a whole, by Independent Directors of the Company.


The Board has, on the recommendation of the Nomination and Remuneration Committee, approved a policy for selection and appointment of Directors, Senior Management and for determining their remuneration. The Remuneration Policy is annexed herewith marked as Annexure - 5, to this Report.


In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules are provided in the Annual Report, which forms part of this Report.

Disclosures relating to remuneration and other details as required under 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 in the Annual Report, which forms part of this Report.

Having regard to the provisions of Section 136(1) read with the relevant provisions of the Companies Act, 2013, the Annual Report excluding the aforesaid information is being sent to the members of the Company. The said information is available for inspection at the Registered Office of the Company during working hours. Any member interested in obtaining such information may write to the Vice President cum Company Secretary and the same will be furnished free of cost.


Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), a Management Discussion and Analysis Report and a Report on Corporate Governance is attached with this Report.

A Certificate from Practising Company Secretary regarding the Compliance by the Company of the conditions stipulated in Regulations Part C of Schedule V of the Listing Regulations is also attached with this report.

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


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


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


The Directors wish to thank and deeply acknowledge the cooperation, assistance and support extended by the financial institutions, banks, the Government of Delhi and the Union Government.

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

For and on behalf of the Board

Dr. Prathap C Reddy


Vice Chairman

Ashok Bajpai

Place: New Delhi (DIN : 02463754)

Date: 28th July, 2018 Managing Director

Director’s Report