Mar 31, 2018
Dear Members,
The Directors are pleased to present their report and financial statements for the financial year ended 31st March 2018.
FINANCIAL RESULTS
(Rs. In Lacs)
1 |
Particulars |
FY 2017-18 |
FY 2016-17 |
I. |
Revenue from Operations |
74,835.58 |
76,571.62 |
II. |
Other Income |
159.93 |
45.71 |
III. |
Total Income (I II) |
74,995.51 |
76,617.33 |
IV. |
EXPENSES |
||
Stores & Spares consumed |
13,984.14 |
15,239.53 |
|
Employee benefits expense |
19,401.37 |
19,025.71 |
|
Finance costs |
889.94 |
790.54 |
|
Depreciation and amortization expense |
3,068.18 |
3,053.21 |
|
Other expenses |
34,251.36 |
34,426.59 |
|
Total expenses (IV) |
71,594.99 |
72,535.58 |
|
V. |
Profit before exceptional items and tax (III-IV) |
3,400.52 |
4,081.75 |
VI. |
Exceptional Items |
- |
- |
VII. |
Profit/(loss) before tax (V-VI) |
3,400.52 |
4,081.75 |
VIII. |
Tax expense: |
||
(1) Current tax |
1,393.07 |
1,854.10 |
|
(2) Deferred tax |
(102.88) |
(396.88) |
|
IX. |
Profit/(loss) for the year (VII-VIII) |
2,110.33 |
2,624.53 |
X. |
Other Comprehensive Income |
||
(i) Items that will not be reclassified subsequently to profit or loss |
|||
Re-measurement gains (losses) on defined benefit plans |
37.27 |
106.14 |
|
Income Tax effect (Deferred Tax) |
(13.02) 24.25 |
(36.73) 69.41 |
|
XI. |
Total Comprehensive Income for the year (Comprising Profit (Loss) and Other Comprehensive Income for the year) |
2,134.58 |
2,693.94 |
TRANSFER TO RESERVES
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.
DIVIDEND
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).
RESULTS OF OPERATIONS AND THE STATE OF COMPANY AFFAIRS Operations
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 Governmentâs order to discontinue OPDâs 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 Companyâs 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 âHealthy Heart Programâ. 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 Vasudevâs âRally for Riversâ initiative, Patient Support Group for Bariatrics, Cochlear Implants and Down Syndrome, an engagement event with Transplant recipients and donors on Valentineâs Day, quarterly Bariatric Support Group Meet for patients and their families, and quarterly âBreast Cancer Patients Support Meetâ 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, Motherâs Day, Fatherâs Day, World Diabetes Day, World Antibiotic Day, Hand Hygiene Day, International Womenâs 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 Honâble 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 Honâble Supreme Court of India against the impugned judgment and order of the Honâble High Court of Delhi. The Honâble 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.
CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION
(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 personâs 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 patientâs 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.
FOREIGN EXCHANGE EARNINGS & OUTGO
(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
BOARD MEETINGS
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.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
- 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.
DECLARATION FROM INDEPENDENT DIRECTORS
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.
COMPOSITION OF AUDIT COMMITTEE
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.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
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 companyâs 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 Companyâs 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.
SEXUAL HARASSMENT
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.
DIRECTORSâ RESPONSIBILITY STATEMENT
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.
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES
The Company has no subsidiaries or associate companies. The Company also does not have any joint venture.
EXTRACT OF ANNUAL RETURN
Extract of Annual Return of the Company is annexed herewith as Annexure - 1 to this Report.
AUDITORS AND AUDITORSâ 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 Auditorsâ Report are self-explanatory and do not call for any further comment. The Auditorsâ 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.
SECRETARIAL AUDITOR
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.
COST AUDITOR
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 Memberâs 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.
DEPOSITS
During the year under review, the Company has not accepted any deposit under Chapter V of the Companies Act, 2013.
SIGNIFICANT & MATERIAL ORDERS PASSED BY THE REGULATORS
No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Companyâs operations in the future.
INTERNAL FINANCIAL CONTROL SYSTEMS
The Company has an internal financial control system, commensurate with the size, scale and complexity of operations to ensure that the Companyâs 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.
PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE, GUARANTEES GIVEN AND SECURITIES PROVIDED
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.
RISK MANAGEMENT
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.
CORPORATE SOCIAL RESPONSIBILITY
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.
CSR POLICY
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 Companyâs 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.
CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES
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 armâs 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 Companyâs website at http:// www.apollohospdelhi.com/downloads/materiality-of-related-party-transactions.pdf
FORMAL ANNUAL EVALUATION
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.
REMUNERATION POLICY
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.
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
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.
CORPORATE GOVERNANCE
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.
INDUSTRIAL RELATIONS
The Industrial Relations scenario continued to be cordial during the year under review.
MATERIAL CHANGES AFFECTING THE FINANCIAL POSITION OF THE COMPANY
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.
ACKNOWLEDGEMENT
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
(DIN:00003654)
Vice Chairman
Ashok Bajpai
Place: New Delhi (DIN : 02463754)
Date: 28th July, 2018 Managing Director
Mar 31, 2015
Dear Shareholders,
The Directors take pleasure in presenting the 27th Annual Report of the
Company along with the audited accounts for the year ended 31st March
2015.
FINANCIAL RESULTS
(Rs. In Lakhs)
Particulars Year Ended Year Ended
31/03/2015 31/03/2014
Total Income 71,436.50 67,858.98
Profit before tax 4,954.73 5,415.40
Provision for taxation 1,705.61 1,871.81
Net Profit (PAT) 3,249.12 3,543.58
Balance brought forward from 5,669.54 4,356.51
previous year
Amount available for appropriation 8,918.66 7,900.09
Appropriations
Depreciation charge 764.52 -
Net Deferred tax liability reversed 259.86 -
on Depreciation charge
Transferred to General Reserve 300.00 300.00
Dividend (Proposed) 1,650.11 1,650.11
Corporate Dividend Tax 329.93 280.44
Balance carried to Balance Sheet 6,133.96 5,669.54
TRANSFER TO RESERVES
The Company proposes to transfer Rs. 300.00 lakhs to the General
Reserve out of the amount available for appropriation.
DIVIDEND
The Directors are pleased to recommend payment of dividend on equity
shares @ Rs. 1.80 per share (18 percent) for the financial year ended
31st March, 2015 (previous year Rs. 1.80 per share).
RESULTS OF OPERATIONS AND THE STATE OF COMPANY 'S AFFAIRS
Operations
During the financial year under review, the Company registered growth
in its working and achieved higher income. The total income of the
Company increased 5% from Rs. 67,858.98 lakhs last year to Rs.
71,436.50 lakhs.
The Company's EBIDTA was Rs. 8583.03 lakhs compared to Rs. 9184.83
lakhs in the previous year. The profit after tax (PAT) decreased from
Rs. 3,543.58 lakhs to Rs. 3249.12.
The number of admissions of patients increased from 43284 last year to
44376 - a steady growth of 3%. Repeat Outpatients (OP) increased from
264351 to 283964 - a growth of 7%. The Average Length of Stay (ALOS)
remained stable at 4.8 days.
The overall bed occupancy of the hospital has been consistent at an
average of 82% for the year. The current total bed strength is 716.
The Hospital remained the busiest Transplant Centre in the World and
carried out 1077 solid organ transplant surgeries including 761 Kidney
and 316 Liver Transplants. The Solid Organ Transplant Program
registered a growth of 13%.
Therapeutic and diagnostic modalities in the Digital Subtraction
Angiography lab increased from 372 to 435 Â a growth of 17%. The
Endoscopic Bronchial Ultra Sonography (EBUS) system acquired last year
has been found to be very beneficial to the patients, registering a
growth of more than 75% compared to last year. A growth of 32% was
registered in Bone Marrow Transplantation.
The number of Apollo Health Check increased from 25661 to 28345 Â a
growth of 10%. Growth in outpatients was registered in many specialties
and super-specialties such as 20% growth in Nephrology, 7% in
Ophthalmology, ENT including Head and Neck Surgery, Orthopaedics, and
Urology (excluding transplant surgery), 24% in Oncology, 21% in
Thoracic and Vascular surgery, 18% in Plastic and Cosmetic surgery, 11
% in General Surgery and Internal Medicine, 10% in Gastroenterology and
8% in Obstetrics and Gynaecology.
There was steady growth of Robotic Surgeries during the year. A Robotic
Spine Surgery for Collapsed Vertebra on an 11 year old boy was
performed in the Hospital, probably one of the first in the world. The
Hospital won the BMJ Award 2014 for the Surgical Team of the Year.
A successful shoulder rotator cuff reconstruction on a 93 year old lady
was done. A 45 year old American man, who required a second liver
transplant, but surgery for which was found to be too complex at
renowned hospitals in USA and Singapore, underwent a successful liver
transplant at the hospital. All such extraordinary cases highlight the
highest level of quality and expertise in the Hospital, putting it on
par with the best in the world.
The hospital registered itself with the National Organ and Tissue
Transplant Organization (NOTTO), the apex body for nation-wide
activities of coordination and networking for procurement and
distribution of Organs and Tissues including maintenance of a registry
of Organs and Tissues, Donation and Transplantation in the country.
The number of consultants in the hospital increased to 395 as 43 new
consultants joined the hospital this year. On an average more than 76
man hours of training was undertaken per employee over the year to
maintain the high standard of services and to adopt new clinical
modalities.
Project Priceless, an Apollo wide initiative supported by inputs from
Bain & Company, to improve overall patient experience and improve
patient and physician advocacy for the Hospital, commenced in June,
2014. After in- depth market surveys of patients, community and
referring doctors, a number of initiatives have been undertaken.
Results have been very encouraging, and implementation will be
continued for maximum positive impact.
Apollo Hospitals Noida continued its strong performance across all
operational parameters and remained one of the leading destinations for
Mother and Child Care, Dialysis and Preventive Master Health Checks.
Growth was evident with increase in the number of deliveries by 10%,
Dialysis by 4%, Master health Check by 32%, Non Invasive Cardiology by
35%, and Radiological investigations by 25%. The hospital has
established an in-house authorization committee for approval of organ
transplant in the Hospital. More than 40 cases of renal transplant have
been done successfully in the hospital. Fetal medicine department and
Eye Care centre have been setup and they have received overwhelming
response from the patients, enhancing patients satisfaction. All lab
tests including microbiology, histopathology, cytology are now being
done at Apollo Hospitals Noida. The Hospital got re-accreditated by
NABH.
The Hospital has been providing free treatment (excluding medicines and
consumables) to the patients referred by the Government of NCT of Delhi
since June, 1998. 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 10,121 patients (8,217 Out Patients and 1,904 In
Patients) were treated under the free category. On an average 75 to 80
in-patients per day are treated in the Hospital under the free
category.
Excellence in Operations
The hospital remained committed to providing world- class quality care
and services and there was renewed focus on improving operational
efficiencies across functions, improving patient services and enhancing
safety for patients and staff. The hospital introduced electronic Voice
of Customer feedback system, which focuses on improving services by
acting on suggestions and concerns on a real-time basis. The new system
enables better monitoring of feedback, detailed ward and service wise
reporting and mechanics to ensure vertical and horizontal reporting of
concerns across services. It has yielded encouraging results and
department heads and service staff are now more attuned to patients'
needs and concerns.
The hospital introduced anti-microbial blinds and new cleaning
techniques to ensure a more hygienic environment for our patients.
Renovation activities, which include the Orange Lounge, an exclusive
all-services lounge for patients waiting to seek admission at the
hospital, more comfortable and contemporary rooms for patients, and
improved green cover by means of a terrace garden, were well received
by patients and visitors alike.
The hospital has also improved efficiencies through the introduction of
new technologies across services. The F&B department installed new
equipment like the Combi- Oven, which has helped enhance manpower
utilization, reduced consumption of oil and preparation time for a
variety of dishes. The kitchen was also renovated to improve process
flows and help in improving services.
Safety and security of the facility formed a key part of the overall
strategy for the hospital. The hospital invested in a new X-Ray Baggage
Scanner for screening of in-bound material, new Hand-Held Metal
Detectors and new-age wireless communication systems. The hospital
enhanced the CCTV coverage in the hospital and migrated to a digital
monitoring system to improve security. The fire safety cell installed
an air-pressurization system to ensure safety of evacuations and
introduced the evac-chair for mobilization of patients in case of a
fire.
Clinical Excellence
Based on observation and process analysis, an Automated Online Incident
Reporting module was designed and implemented to follow consistent
procedures for incident capture, tracking, task-management and status
reporting. Built on a centralized platform, the incident management
solution helped in consolidating all incidents into a single point of
reference. This module enables savings with respect to time consumption
and manpower, thereby increasing efficiency and accuracy in comparison
to the manual recording and reporting used earlier.
Infection Control and Environment
The Hospital Infection Control Program consistently maintained
leadership across the region; and maintained benchmark standards for
Hospital Acquired Infection indices at levels comparable to world's best
healthcare institutions.
hdraprastha Apollo Hospitals, Delhi was the Secretariat for the 15th
Congress of the International Federation of Infection Control (IFIC) in
conjunction with the XIII HISICON, the National Conference of Hospital
Infection Society India, and continues to be the Secretariat for the
Hospital Infection Society, India. The theme of the Conference was
'Expanding Horizons in Infection Prevention and Control- A tertiary to
primary healthcare approach'.
The Hospital hosted the Workshop on Ebola Preparedness under the aegis
of lAMM-Delhi and NCR Chapter. A pilot study undertaken on disposable
bed- pans with macerators showed encouraging results. Campaigns such
as Keep it dry, Hand Hygiene, Rigour and Vigour, and Clean Greens were
carried out for enhancing awareness and further enhancement of
Infection Prevention and Control.
Major Events & Developments
A commemorative stamp marking the momentous 15th anniversary of India's
first successful liver transplant performed in the hospital in 1999,
was released by Shri Ravi Shankar Prasad, Honourable Minister of
Communications and Information Technology, and Minister of Law and
Justice, Government of India. The stamp recognizes Apollo Hospitals'
leadership in the area of organ transplantation and its contribution to
the solid organ transplant program in the country.
New Services
Physiotherapy Home Services have been designed and are being provided
to patients on a daily basis or as 10 / 15 day packages.
Plastic and Cosmetic Surgery: New Anti-aging procedures have been
introduced such as Mid-face volumization; Skin lifting and tightening
"Ulthera procedure" for face, upper neck, lower neck and arms; and Cool
Sculpting for non-invasive localized fat reduction for body contouring.
In addition, a multitude of new investigation services have been
started including Chromosomal Genetic Study Contrast Enhanced
Ultrasonography, etc. Various new Diagnostic or Surgical processes have
also been added in different specialties such as Clot Evacuation in
Urology Tracheal or Bronchial Stent placement in Respiratory medicine,
FET PET MRI for better imaging of brain tumours, Molecular Imaging,
Nuclear Medicine, etc.
A large number of equipment was either replaced or upgraded over the
past year in most of the specialties at the main hospital and in
Noida.
Awards and Accolades
The Hospital received awards at both the international and national
levels. It received the highly commended Award for Best Quality
Initiative at the IMTJ Medical Travel Awards 2015. A few noteworthy
ones included: the HMA Awards in the category of Bio Medical
Equipment/Facilities Improvement; the Human Resource Development
Category, the CI MS Award for the Best Multispecialty Hospital, the
FICCI Award for Excellence in Adoption of Quality and Information
Standards, and the 5th MT India Healthcare Award for the Best
Technology Initiative Hospital of the Year.
CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION
(A) Conservation of Energy
Energy and Natural resource Conservation
The organization maintained its focus on conservation of natural
resources and added new initiatives to the existing ones. Water After
successful commissioning of ultrafiltration plant in the previous year,
utilization of recycled water has been extended to cooling towers and
horticulture. This has yielded significant reduction in fresh water
requirement.
The Company has also taken initiatives to reduce water consumption at
dispensing points by installing water saving aerators in water
dispensing taps. Cumulative efforts put together have resulted in
reduction of fresh water requirement by over 20 percent.
Electricity
On the Electricity front, continuous upgrade to LED from conventional
lighting fixtures, installation of energy efficient (screw technology)
air compressors and vacuum pumps have yielded a reduction of over 3
percent in annual electricity consumption over the previous year.
Natural Gas
Efficient adjustment in firing pattern of natural gas burners and flame
optimization has resulted in more than 3 percent reduction in natural
gas requirement over the previous year.
Installation of automatic chemical dozing system
The quality of water feeding into chiller machines not only affects
chiller efficiency but also the life of the machines. There was a
severe problem in the past with water quality (High total dissolved
solids, high conductivity and high carbonates) leading to scaling in
the cooling tubes which resulted in reduced cooling efficiency and
frequent breakdown of equipment.
The Company has added state-of-the-art automated chemical dozing and
monitoring system for the cooling tower and chilled water system. This
initiative has resulted in improved cooling efficiency and increased
the reliability of HVAC equipment.
(B) Technology Absorption
The Hospital continued with its efforts to maintain standards at par
with the best hospitals globally by investing in cutting-edge technology
to offer the latest in medical care. Some of these are here:
Neuro Navigation system
Using this technology during procedures like tumour resections,
surgeons can navigate more precisely perform less-invasive procedures,
and help improve clinical outcomes.
Rotabalator
This is a procedure which attempts to "bore out" a narrowing in a
coronary artery which might not otherwise respond to stenting.
FFR (Fractional Flow Reserver)
Fractional Flow Reserve (FFR) is a technique used in coronary
catheterization to measure pressure differences across a coronary
artery stenosis (narrowing, usually due to atherosclerosis) to
determine the likelihood that the stenosis impedes oxygen delivery to
the heart muscle.
FOREIGN EXCHANGE EARNINGS & OUTGO
(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 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. 9,700.77 lakhs Outgo : Rs. 1,203.15 lakhs
BOARD MEETINGS
Four (4) Board meetings were held during the financial year ended 31st
March, 2015. The dates of the meetings are as follows: 23rd May, 2014,
25th July, 2014, 7th November, 2014 and 29th January, 2015.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Mr. S. K. Srivastava, Dr. M. M. Kutty and Mr. S. C. L. Das resigned as
Directors of the Company consequent on their transfer from office, they
being ex-officio Directors nominated by the Govt. of NCT of Delhi.
Lt. Gen. (R) Vijay Lall resigned from the post of Director of the
Company w.e.f. 21st August, 2014.
Mr. D. M. Spolia (Chief Secretary, Govt. of NCT of Delhi) was appointed
by the Board as Additional Director and Chairman of the Board of
Directors of the Company. Mr. D. M. Spolia resigned as Additional
Director and Chairman of the Board of Directors of the Company,
consequent upon his superannuation from the services of Govt. of NCT of
Delhi.
Prof. Ranjit Roy Chaudhury resigned from the post of Director of the
Company w.e.f. 11th September, 2014, consequent upon his appointment as
Adviser to the Minister of Health and Family Welfare, Govt. of India.
Subsequently, the portfolio of the Minister was changed and Prof.
Ranjit Roy Chaudhury was again available for appointment as a director
on the Board of Directors of the Company and has been appointed by the
Board as an Additional Director and Independent Director on the Board
of Directors of the Company with effect from 29th January, 2015.
Ms. Vineeta Rai has been appointed by the Board as Additional Director.
Mr. S. N. Sahai (Principal Secretary - Finance, Govt. of Delhi) has
been appointed by the Board as Additional Director in place of Dr. M.
M. Kutty.
Dr. Arun Rai has been appointed by the Board as
Additional Director and Independent Director on the Board of Directors
of the Company.
Ms. Vineeta Rai, Prof. Ranjit Roy Chaudhury, Mr. S. N. Sahai and Dr.
Arun Rai hold the office of Directors only up to the date of the Annual
General Meeting of the Company. Notice has been received from members
pursuant to Section 160 of the Companies Act, 2013 signifying their
intention to propose the appointment of Ms. Vineeta Rai and Mr. S. N.
Sahai as Directors of the Company, liable to retire by rotation.
Notices have also been received from members pursuant to Section 160 of
the Companies Act, 2013 signifying their intention to propose the
appointment of Prof. Ranjit Roy Chaudhury as an Independent Director of
the Company to hold office for two consecutive years from 29th Januray,
2015 to 28th January, 2017, and the appointment of Dr. Arun Rai as an
Independent Director of the Company to hold office for five consecutive
years from 26th May, 2015 to 25th May, 2020, not liable to retire by
rotation.
In accordance with the provisions of the Companies Act, 2013 and the
Articles of Association of the Company, Ms. Renu S. Karnad and Ms.
Suneeta Reddy, Directors of the Company shall retire by rotation at the
ensuing Annual General Meeting. Ms. Renu S. Karnad and Ms. Suneeta
Reddy, being eligible, have offered themselves for re-election.
In pursuance to the requirement of Section 203 of the Companies Act,
2013, the Board of Directors of the Company have appointed Mr. Jaideep
Gupta - Managing Director, Mr. Ajay Kumar Singhal - Vice President cum
Company Secretary and Mr. P. Shivakumar  Chief Financial and Operating
Officer, as Key Managerial Personnel of the Company.
DECLARATION FROM INDEPENDENT DIRECTORS
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.
COMPOSITION OF AUDIT COMMITTEE
The composition of the Audit Committee is given in the Corporate
Governance Report.
All the recommendations of the Audit Committee have been accepted by
the Board of Directors of the Company.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
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 grievances, the details of which are given
in the Corporate Governance Report. The Whistle Blower Policy may be
accessed on the Company's website at the link
http://www.apollohospdelhi.com/downloads/
Whistle%20Blower%20Policy.pdf.
DIRECTORS' RESPONSIBILITY STATEMENT
Your Directors state:
- that in the preparation of the annual accounts, the applicable
accounting standards have been followed;
- that 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, 2015 and of the profit of the Company
for the year ended 31st March, 2015;
- that 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;
- that the annual accounts have been prepared on an on-going concern
basis;
- that the internal financial controls to be followed by the Company
had been laid down and such internal financial controls are adequate
and were operating effectively; and
- that proper systems had been devised to ensure compliance with the
provisions of all applicable laws and such systems were adequate and
operating effectively.
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES
The Company has no subsidiaries or associate companies. The Company
also does not have any joint venture.
EXTRACT OF ANNUAL RETURN
Extract of Annual Return of the Company is annexed herewith as
Annexure-1 to this Report.
AUDITORS AND AUDITORS' REPORT
M/s. S. C. Vasudeva & Co., Chartered Accountants, Auditors of the
Company shall hold office until the conclusion of the ensuing Annual
General Meeting and are eligible for re-appointment.
The Company has received a letter from M/s. S.C. Vasudeva & Co.,
Chartered Accountants, that their re-appointment, if made, would be
with in the prescribed limits under Section 141(3)(g) of the Companies
Act, 2013, and that they are not disqualified for re-appointment.
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.
SECRETARIAL AUDITOR
The Board has appointed M/s RSM & CO., practicing Company Secretaries,
to conduct Secretarial Audit
for the financial year 2014-15. The Secretarial Audit Report for the
financial year ended 31st March, 2015, is annexed herewith marked as
Annexure-2, to this Report. The Secretarial Audit Report does not
contain any qualification, reservation or adverse remark except that
half of the Board should comprise of Independent Directors. The Company
is in search of suitable candidate for the appointment as Independent
Director on the Board.
COST AUDITOR
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, 2015.
The Cost Auditor has given the Cost Audit Report for the financial year
ended 31st March 2015, and the Cost Audit Report does not contain any
qualification, reservation or adverse remark.
DEPOSITS
During the year under review, the Company has not accepted any deposit
under Chapter V of the Companies Act, 2013.
SIGNIFICANT & MATERIAL ORDERS PASSED BY THE REGULATORS
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 future.
INTERNAL CONTROL SYSTEMS
The Company has established a wide-ranging system of Internal Controls
to ensure that all assets are safeguarded and protected against losses
that may arise from unauthorized use or disposition, incorrect use and
nappropriate storage.
Further, it strives to ensure that all transactions are evaluated,
authorized, recorded and reported accurately. Your Company also has a
review mechanism whereby the management regularly reviews actual
performance in comparison to plans and estimates drawn by budgets and
forecasts.
The system is designed to adequately ensure that financial and other
records maintained are accurate and are reliable for preparing
financial information and other data. The internal control procedures
are augmented by an extensive programme of internal, external audits
and periodic review by the management.
PARTICULARS OF LOANS GIVEN, INVESTMENT MADE, GUARANTEES GRVEN AND
SECURITIES PROVIDED
During the year under review, the Company has not given any loan or has
made investment or has given guarantees under Section 186 of the
Companies Act, 2013.
RISK MANAGEMENT
The Company has constituted a Risk Management Committee comprising of
executives headed by the Managing Director.
The Company has a Risk Management Policy to identify, evaluate business
risks and opportunities. This framework seeks to create transparency,
minimize adverse impact on the business objectives and enhance the
Company's competitive advantage.
CORPORATE SOCIAL RESPONSIBILITY Â A HEALTHY START
MCL's Corporate Social Responsibility project 2014-15 Â A Healthy Start
 aims to reach out to school children from socio-economically
under-privileged families, addressing their drinking water, sanitation
and hygiene needs. The project has set out to address this critical
need in the Municipal Corporation of Delhi (MCD) schools in Badarpur,
an area proximate to the hospital.
MCD schools have poor drinking water and sanitation facilities. Water
borne diseases are common - leading to malnutrition and poor physical
and mental development. The Healthy Start project will improve
sanitation and access to clean drinking water and promote awareness
about hygiene amongst children and their mothers. This will help ensure
healthy growth and development for the little children.
To this end, we are working with two MCD schools located in Badarpur
area, an urban village, proximate to Indraprastha Apollo Hospitals. The
total number of students in both schools is 3362, of which 1940 are
girls. The project activities are as follows: Installation of 2 water
RO systems to enable clean and chilled water supply for drinking,
up-gradation of 20 separate toilets for girls and boys, additional
monetary bonus to the MCD cleaning staff for the upkeep and cleanliness
of the toilets, Health Talks and check-up camps, Regular nteractions
between the students, teachers and doctors on general hygiene,
healthcare and preventive medicine, and the provision of hand washing
facility for maintaining proper hand hygiene.
A total of 149 Specialty Health screening camps were organized across
the city and NCR where more than 20,000 patients were examined by
specialist doctors and various investigations tests were conducted
under the Community Outreach initiative, ACOP (Apollo Community
Outreach Program). Similarly 23 health camps were conducted in Noida
where 3000 patients were screened.
Medical support and /or Sponsorship was provided in 12 sports events
organized in different parts of Delhi including Talkatora Stadium.
Disaster Relief
In response to the devastating floods in Jammu & Kashmir, the Hospital
sent a 12 member relief team of doctors, nurses and support staff to
Srinagar on 18th September.
Medical care was provided for two weeks and essential drugs were made
available to more than 5000 flood victims within and outside the state
capital. The relief activities were organized in collaboration with the
State Health Department and CRPF.
Barely a fortnight after our first directly operated Information Center
in Kathmandu was inaugurated, a devastating earthquake hit Nepal
leading to huge loss of life and property. Within a few days a team of
doctors along with medical and paramedical staff flew to Kathmandu
taking with them a consignment of about 800 kilograms of relief
material including implants, medicines, etc.. The team rendered medical
aid and performed a large number of surgeries including spinal
fixations, in coordination with Om Hospital, our long standing local
partner for a patient base ranging from 6 to 96 years of age. Our
support was much appreciated by the local authorities and public.
The Board has approved the Corporate Social Responsibility (CSR)
Policy, which the CSR Committee had formulated and submitted to them
together with a list of proposed activities that the Company will
undertake. The CSR Policy may be accessed on the Company's website at
the link http://www.apollohospdelhi.com/
downloads/corporate-social-responsibilitv-policv.pdf
Under the CSR Policy, the Company will focus primarily on the following
programmes:
A. Community Development
B. Healthcare
C. Education and Skills Development
D. Promote Research in Healthcare
In pursuance of the provisions of Section 135 of the Companies Act,
2013, the Company was required to spend 2% of the average net profits
of the company during the three immediately preceding financial years,
amounting to Rs. 93.10 lacs. The total spending during the year 2014-15
on CSR projects was Rs. 11.69 lacs. This being the first year after
the new CSR provisions were notified, certain preparatory work had to
be done before starting the CSR projects, hence the CSR obligation
amount could not be spent.
CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES
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. 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/materialitv-
of-related-partv-transactions.pdf
FORMAL ANNUAL EVALUATION
The Nomination and Remuneration Committee of the Company approved 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, which was adopted by the
Board of Directors.
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-3 to this Report.
During the year, the first 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.
FAMILIARIZATION PROGRAMMES FOR BOARD MEMBERS
The Board Members of the Company are eminent personalities having wide
experience in the field of business, finance, education, industry,
commerce and administration. Their presence on the Board has been
advantageous and fruitful in taking business decisions.
The Board Members are provided with necessary documents/brochures,
reports and internal policies to enable them to familiarize themselves
with the Company's procedures and practices.
During the year under review, a familiarization programme for
Independent Directors was conducted. The Independent Directors were
apprised on relevant changes in the Company Law and Listing Agreement
and were updated regarding their roles, rights, responsibilities in the
Company nature of the industry in which the Company operates, business
model of the Company, etc. The familiarization programme for
Independent Directors may be accessed on the Company's website at
http://www.apollohospdelhi.
com/downloads/Familiarization%20Programme.pdf
REMUNERATION POLICY
The Board has, on the recommendation of the Nomination and Remuneration
Committee, approved a policy for selection and appointment of Directors
and Senior Management and for determining their remuneration. The
Remuneration Policy is annexed herewith marked as Annexure-4, to this
Report.
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
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, a statement showing
the names and other particulars of the employees drawing remuneration
in excess of the limits set out in the said rules is provided in the
Annual Report.
Disclosures pertaining 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 provided in the Annual Report.
Having regard to the provisions of Section 136(1) read with its
relevant proviso 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 and any member
interested in obtaining such information may write to the Company
Secretary and the same will be furnished free of cost.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement, a Management Discussion
and Analysis Report and a Report on Corporate Governance is attached
with this Report.
A Certificate from the Statutory Auditors of the Company regarding the
Compliance by the Company of the conditions stipulated under Clause 49
of the Listing Agreement is also attached with this report.
A declaration by the Managing Director pursuant to clause 49(II)(E)(2)
of the Listing Agreement 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, 2015, is
also attached with this report.
INDUSTRIAL RELATIONS
The Industrial Relations scenario continued to be cordial during the
year under review.
ACKNOWLEDGEMENT
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
(DIN: 00003654)
Vice Chairman
Jaideep Gupta
Place: New Delhi (DIN : 02647974)
Date : 7th August, 2015 Managing Director
Mar 31, 2014
Dear Shareholders,
The Directors take pleasure in presenting the 26th Annual Report of the
Company along with the audited accounts of the year, ended on the 31st
March 2014.
FINANCIAL RESULTS
(Rs. In Lakhs)
Particulars Year Ended Year Ended
31/03/2014 31/03/2013
Total Income 67,858.98 60,815.18
Profit before tax 5,415.40 4,548.11
Provision for taxation 1,871.82 1,671.62
Net Profit (PAT) 3,543.58 2,876.49
Balance brought forward
from previous year 4,356.51 5,684.73
Amount available for
appropriation 7,900.09 8,561.22
Appropriations
Transferred to General
Reserve 300.00 2,500.00
Dividend (Proposed) 1,650.11 1,466.77
Corporate Dividend Tax 280.44 237.95
Balance carried to
Balance Sheet 5,669.54 4,356.50
TRANSFER TO RESERVES
The Company proposes to transfer Rs. 300.00 lakhs to the General
Reserve out of the amount available for appropriation.
DIVIDEND
The Directors are pleased to recommend payment of dividend on equity
shares @ Rs. 1.80 per share (18 percent) for the financial year ended
31st March, 2014 (previous year Rs. 1.60 per share - 16 percent).
OPERATIONS
During the financial year under review, the Company has registered all
round growth in its working and achieved higher income and profit. The
total income of the Company increased to Rs. 67,858.98 lakhs from Rs.
60,815.18 lakhs last year - an increase of 12%.
The Company''s EBIDTA increased by 15% from Rs. 7,999.06 lakhs to Rs.
9184.83 lakhs, whereas the profit after tax (PAT) increased to Rs.
3,543.58 lakhs from Rs. 2,876.49 lakhs.
The Hospital continued to attract large number of domestic as well as
international patients.
The average bed occupancy in the hospitals increased from 575 to 576.
As reported in the previous Director''s Report, the hospital
commissioned 127 beds in 2012-2013 taking the total bed strength to
710. This capacity was created keeping in mind the projected increase
in demand for the hospital''s tertiary care services. The occupancy of
these new beds and overall of the hospital has been healthy at an
average of 87% for the year.
There was a steady increase in admissions of patients from 42099 to
43284 patient - a growth of 3 percent, repeat Outpatients(OP) increased
from 242788 to 264351 - a growth of 9 per cent. The critical Average
Length of Stay (ALDS) performance index reduced to 4.8 days from 4.9
days, Therapeutic and diagnostic modalities increased from 320 to 372 -
a growth of 16 per cent, dialysis increased from 34626 to 37094 (a
growth of 7 per cent) and the number of laboratories tests increased
from 2.30 million to 2.59 million tests - a growth of 13 percent over
the previous year.
The Solid Organ Transplant program of the Hospital continued to
register outstanding growth with over 954 solid organ transplants (285
Liver Transplants and 669 Kidney Transplants) in a single year with
success rates of over 90%, Indraprastha Apollo Hospitals remained the
busiest Transplant Centre in the world. Apart from this, the hospital''s
Liver Transplant Team successfully performed 350 liver transplants on
Pakistani patients, which was covered extensively by the media across
borders. Further, the team completed 300 Living Donor Liver
Transplants in the calendar year 2013, a first for the country.
A 90 year old woman suffering from stroke was successfully treated with
thrombolysis in the hospital, hence proving that there is no age
barrier to thrombolysis in stroke patient. The patient recuperated with
minimal neurological loss post the treatment.
The Apollo Institute of Robotic Surgery, which was instituted last
year, performed 173 surgeries during the year. Further, the Institute
now uses the modality for varied clinical divisions like Urology,
Gynaecology, General Surgery, Bariatric surgery and Thoracic surgery.
More than 29 senior consultants joined the hospital this year taking
the total number of full- time consultants associated with the hospital
to more than 350. Further to maintain the high level of services and
adopting new clinical modalities, on an average of more than 66 man
hours of training was undertaken per employee over the whole year.
Apollo Hospitals, Noida performed well across all the operational
parameters and continued to be one of the leading destinations for
Mother and Child Care and dialysis. During the year, the number of
deliveries of babies in the hospitals increased from 653 to 766 and
number of dialysis increased from 7108 to 7814.
After significant preparations and enhancement of key services, Apollo
Hospitals, Noida received the approval from the Government of Uttar
Pradesh to conduct Renal Transplants and commenced Renal Transplant
services in September, 2013. A total of 18 transplants were conducted
in the Noida hospital during the year.
However, Apollo Hospitals, Noida incurred a loss of Rs. 166 lakhs
against profit of Rs. 78 lakhs in the previous year.
Since June1998, the hospital has been providing free treatment
(excluding medicines and medical consumables) to patients referred by
the Government of NCT of Delhi. A full time medical officer, deputed by
the Directorate of Health Services (DHS), Government of Delhi, is
available in the hospital premises on all working days to meet patients
referred by the Government of NCT of Delhi, scrutinize the necessary
documents as per criteria laid down for the purpose, and guide them
appropriately to various specialties for out- patient consultation or
in-patient treatment as required. The medical officer also daily
liaises with the Hospital Nodal Officer and provides details of all
free admissions to the DHS. During this financial year, 12,892 patients
(2,092 IP and 10,800 OP) referred by the Delhi Government were provided
super-specialty care under this arrangement.
Major Events & Developments
The Hospital was the medical partner of Jaypee Sports International
(JPSI), organizers of the 2013 F1 Indian Grand Prix, which was held at
Budh International Circuit in Greater Noida. The selection of the
hospital was in keeping with our established capabilities in Critical
Care & Emergency Medicine. The three day event was supported by a team
consisting of 73 members from the hospital headed by the Head of
Department of Emergency who was also the Chief Medical Officer for the
event, the first Indian to do so.
The hospital was blessed with the visit of His Holiness the Dalai Lama
who spoke on a wide
range of subjects from humanity, selflessness, happiness, ethical and
moral standards for oneself to the need to find peace. He asked
patients to have courage and hope as they charter a new life post their
transplants. His Holiness'' visit was marked by overwhelming presence of
the hospital staff, doctors, industry leaders and patients alike.
The hospital participated in the first of its kind global conference
christened the "Future of Healthcare: A Collective Vision"
organised by the Healthcare Alliance in Delhi. The conference was a
huge success and brought together a consortium of healthcare players,
industry associations (ASSOCHAM, FICCI, CII, NATHEALTH), consultants
who served as Knowledge Partners (McKinsey, Bain, PwC, KPMG), and also
Government participation through representation of the Ministry of
Health and Family Welfare. The conference concluded with a presentation
of 4 white papers to the Hon''ble President of India at Rashtrapati
Bhawan in presence of then Health Minister, Shri Ghulam Nabi Azad.
A high level delegation headed by the Vietnamese Health Minister,
Nguyen Kim Tien visited the Hospital. Discussions on healthcare
financing, doctor and nurse exchange programmes, investment opportunity
in hospital construction in Vietnam and various means of collaboration
were held with the hospital leadership.
Dr. Prathap C. Reddy''s biography "The Healer" was launched on 30th
January, 2014, with a glittering function at the Oberoi Hotel. The
event was hugely covered by all portals of media - print, electronic
and online.
New Services
The Apollo Obesity and Metabolic Surgery (Bariatric surgery) Centre was
commissioned. The centre is aimed at holistic healthcare solutions for
patients dealing with obesity & metabolic syndromes. Senior consultant,
Dr. Kamal Mahawar, who was previously working at prestigious
Sunderland Royal Hospital, United Kingdom has joined the centre. Dr.
Mahawar brings with him an experience of performing over 1200 bariatric
surgeries. Typical surgeries that would be performed at the centre
include Sleeve Gastrectomy, Gastric Bypass, and Gastric ballooning.
The Medical escort service for air evacuation was re-started by the
hospital. The service had been discontinued after the tragic air
accident in 2011. The restarted service picked up pace over the year
with an average of 10 air calls a month.
The Pain Clinic was started in January 2014 offering integrated and
comprehensive Pain Management for all kinds of pain. The clinic also
offers advance Pain Management techniques and procedures like Spinal
Cord Stimulator Implantation, Sacral & Peripheral Nerve Stimulation,
Intrathecal Drug Pump Implantation, Radiofrequency Denervation and
Neurotomy.
Given the rising burden of Non-Communicable Diseases and Diabetes, the
Sugar Clinic was also started this year to help patients in better
management of Diabetes and prevention of associated complications. The
Clinic consists of a multi-disciplinary team comprising of doctors and
allied specialists like podiatrists, dieticians, nurses etc. which
provides comprehensive care to the patients.
The hospital also expanded its Emergency department with 10 additional
beds being added along with a complete renovation. The total strength
of the unit stands at 20 beds. Also, the Urology, Nephrology and
Dermatology OP areas underwent renovation over the last year.
A large number of equipments were replaced or upgraded over the past
year in various specialities including Oncology, Fetal Medicine,
Cosmetics, Cardiology and Microbiology along with OT and other
equipment at the main hospital and in Noida.
Clinical Excellence
The hospital achieved yet another milestone by becoming the first
hospital in the country to be accredited by the Joint Commission
International (JCI) for a record 4th time. The hospital was the first
in India to be accredited by JCI in 2005 and received subsequent
reaccreditations in 2008 and 2011. This year''s survey witnessed the
hospital being evaluated on the 5th edition of JCI standards which had
new stringent standards pertaining to Transplants, Governance,
Leadership and Direction (GLD), amongst others. The five-day survey
culminated in the Surveyor''s Report that noted that the hospital
achieved a compliance score of greater than 9.9 on a scale of 10. Out
of the total 1160 measurable elements of the latest standards surveyed,
there was not even a single measurable element which was considered as
''Not Met''.
There were no findings in chapters on Governance Leadership, Access to
Care, Quality Improvement and few others. The four surveyors applauded
the patient-centric approach of the hospital and the results that the
hospital is producing.
Apollo Hospitals, Noida was re-awarded Accreditation from National
Accreditation Board for Hospitals and Healthcare Providers (NABH) valid
for a period of three years.
COMMUNITY OUTREACH PROGRAMS and CORPORATE SOCIAL RESPONSIBILITY (CSR)
The novel concept of National level CME programs was initiated, in
order to showcase the organization''s clinical acuity and expertise
through its faculty across all key specialities. A total of 7 National
CME programs were conducted throughout the year in Neurosciences,
Oncology, Emergency Medicine, Orthopaedics, Cardiac Sciences,
Nephrology with Renal Transplantation and Gastroenterology including
Hepatology with Liver Transplantation. A total of 1655 physicians and
specialists from across the country attended these programs and
benefitted from them.
A national seminar to promote voluntary blood donation was organized to
commemorate World Blood Donor Day 2013. The theme of the seminar was
''Every blood donation is a gift of life''. The seminar was organised
in association with State Blood Transfusion Council of NCT Delhi and an
NGO, Blood for All (B4A).
Gift a Life continued its campaign for creating awareness on Organ
Donation through a nation- wide media campaign in partnership with The
Times of India and the Times Foundation. Awareness talks were also
organised in partnership with the Delhi Metro Rail Corporation,
Barclay''s Bank, Snapdeal.com, Petrotech 2014, Tata Consultancy Services
and the Central Reserve Police Force based in New Delhi.
The hospital in association with Cankids, a national society for
children with Cancer and their families convened the 6th National
Childhood Cancer Scholarship Programme in New Delhi. The event was
organized to honour the little brave cancer survivors for their
academic feats in an effort to further motivate them and their families
thereby showing hope to all other children afflicted by this dreaded
disease.
On the occasion of World Health Day, Health Awareness, talks were held
at MCD schools in the Meethapur area of south Delhi. The theme by the
World Health Organisation for this year was on communicable and vector
borne diseases, which was our theme as well. More than 300 students
were educated about ways of preventing Vector and Water borne diseases
and the importance of proper nutrition.
A day-long outing for Diabetic children and their families was
organized at Red Fort to observe World Diabetes Day.
The World Neighbourhood Day was celebrated. On the occasion a cultural
program, ''Cultura - Celebrating Commitments'' was organised with the
Resident Welfare Associations and housing societies as well as
neighbourhood residents of Sarita Vihar, Jasola Vihar, New Friends
Colony, Sukhdev Vihar and Kalkaji. More than 300 residents enjoyed the
evening. Aged 8 yrs to 80 yrs, residents actively participated and the
audience thoroughly enjoyed this memorable evening.
The free clinic at Jasola village continued this year. Apart from free
consultations, patients also received free medicines and medical
consumables. Clinics were held thrice a week, in addition to which
monthly medical camps were also organized. More than 3300 patients
benefited from the clinic this year.
Under the Chacha Nehru Sehat Yojana which was launched by the Govt. of
NCT of Delhi in 2011, health screening along with immunization of
students between 10 to 16 years of age was conducted and medicines like
iron, calcium and vitamin supplements, antibiotics and anti-
histaminics etc. were dispensed. More than 14500 needy students were
examined and treated under this scheme by clinical teams of the
hospital.
More than 135 Speciality Health screening camps were organized across
the city and NCR where nearly 15000 patients were examined by
specialist doctors and various investigations like ECG, Echo, Blood
Sugar, Serum PSA and other relevant lab tests were conducted under our
Community Outreach initiative, ACOP (Apollo Community Outreach
Program). Similar 23 health camps were conducted in Noida where more
than 3500 patients were screened.
The Company organized a special event for children and teachers from
The Lepra India Trust. The Programme commenced with snacks and drinks
for the children followed by a film screening, magic show and musical
programme. A total of 65 children and 8 teachers attended the event and
were given presents to celebrate the New Year.
The hospital distributed blankets to the homeless and under privileged
at Nizamuddin, Jama Masjid and Yamuna Pushta areas in collaboration
with the Aman Biradari Trust.
The Hospital organized a Seminar on "Improving Pre-Hospital Care'''' in
the Golden Hour along with the Indian Head Injury Foundation.
Uttarakhand Relief Effort
On 16th June 2013 the flash floods and landslides in Uttarakhand
devastated towns and villages, destroying roads, bridges and
communications links, and severely damaging the Kedarnath shrine. For
the Uttarakhand Disaster Relief, the Company contributed an amount of
Rs. 5 lakhs to the Chief Minister Relief Fund. Further, relief material
in the form of blankets, clothes, umbrellas and other essential items
were collected from the staff of the hospital and sent across of use of
the people in need. A relief team comprising of doctors and nurses was
also sent to Rishikesh to help those requiring medical attention.
INFECTION CONTROL AND ENVIRONMENT
The Hospital Infection Control Program has persisted in maintaining the
leadership across the region and maintained benchmark standards for
Hospital Acquired Infection indicesat comparable levels to the best
healthcare institutions in the world. Employee safety and infection
prevention was also a focus area and continuous efforts were laid on
prevention of exposure inoculation injuries and availing timely pre-
and post-exposure prophylaxis. Specific employees especially those
handling food and working in high-risk areas were examined and
vaccinated against preventable infections including Hepatitis B and
Chicken Pox. Training as well as facility rounds were reinforced for
ensuring Hand Hygiene was a ''Top of Mind'' issue for all concerned in
the hospital.
The Hospital successfully celebrated the annual event of World Hand
Hygiene Day highlighting its importance for minimising infections.
Awards and Accolades
The Hospital received a number of accolades in the coveted Week-Neilsen
Survey this year - including for the sixth consecutive year for being
the Best Private Super-Speciality Hospital in Delhi. The Hospital also
secured the 7th position on the top 15 Super-speciality hospitals of
the country. Other mentions include - 6th Best Paediatrics Hospital of
the Country; 9th Best Cardiology Hospital of the Country; 10th Best
Neurology Hospital of the Country; 12th Best Diabetes Care Hospital of
the Country and 15th Best Oncology Hospital of the Country.
Dr. Prathap C. Reddy - Founder Apollo Hospitals Group, was honoured
with a Lifetime Achievement Award at the Asian Business Leadership
Forum (ABLF 2013) Awards in Dubai. Dr. Reddy was also honoured with
Lifetime Achievement Award by NDTV. The event was held at the Taj
Palace, New Delhi and covered extensively on the NDTV network.
The Hospital Management Asia (HMA) recognizes and honours hospitals in
Asia that carry out best practices in hospital management and in its
tenth year, which is a coveted award in the Asia Pacific region for the
industry. This year, in a unique achievement, your hospital won the
Excellence Award for ''Pressure Ulcers-Zero Tolerance'' in the Clinical
Category.
The hospital won the Award for Operational Excellence in the
Private-Multispecialty Hospital category of FICCI Healthcare Excellence
Awards, 2013.
The hospital also won the Best Poster Presentation Award for
"Minimizing Medication Errors - Patient Safety Our Responsibility"
in the FICCI HEAL 2013 Awards.
TECHNOLOGY ABSORPTION
During the year, the Hospital continued with its efforts to maintain
standards at par with the best hospitals globally by investing in
cutting-edge technology to offer the latest in medical care. Some of
these are:
EBUS or Endo-bronchial Ultrasound service was introduced which uses
ultrasound along with a bronchoscope to visualize airway walls and
structures adjacent to it. EBUS guided diagnostics are gaining
popularity and it may replace more invasive methods for staging lung
cancer or for evaluating mediastinal lymphadenopathy and lesions in the
future.
Ultherapy, a non-surgical treatment that uses ultrasound to actually
lift loose or sagging skin on the neck, under the chin and above the
eyebrow without any downtime was introduced at the Apollo Cosmetic
Clinic. The procedure is the only non-invasive therapy to have been
cleared by the FDA after demonstrating safety in clinical studies.
The G-Scan Standing MR was introduced in the hospital. The open and
tilting design offers greater patient comfort and features the latest
sequences and imaging performance developed by Esaote.
ENERGY CONSERVATION
The Company on a continuous basis undertakes programmes for conserving
energy. Some of them are as under :-
Ultrafiltration Plant in STP
During this phase of rapid industrialization and ever depleting water
resource, there is a need to seriously reduce/ rationalize our water
consumption and recycle as much as possible. The shortage and
availability of water becomes big problem during peak summer time.
Our annual water consumption is close to 900 cubic meter per day and
this made available by supply from Delhi Jal Board, Bore wells and
tankers. In our internal meetings and reviews it was decided to start
saving water at dispensing, start recycling of water and bring down
fresh water requirement by 15 % of current demand.
The company has installed a 500 M3 per day capacity ultra-filtration
plant with an investment of around Rupees 50 lac. This plant further
treats sewage treated water and quality of water is good enough for
cooling tower, flushing and horticulture purposes. It has helped in
recycling the water and reduction in fresh water demand by 15-20 per
cent.
Ultra filtration is simple pressure cleaning technology and primarily
depends on efficient operation and life of membrane used for cleaning
purpose. The average life of these membranes is close to three to four
years hence it is sustainable process over period of time. This plant
is operated with latest programmable logic controller with least of
human interference and expected to provide consistent results over long
period of time.
Electricity Conservation
As time goes on new electrical power requirement keep coming and energy
demand continue to grow every passing day. Many times electricity
consumption touched the peak sanctioned load. Initiatives were taken
to cut down the peak load requirement. Further to create awareness
amongst staff for energy conservation, ''Caution'' stickers were placed
on all electrical equipment to switch off fixtures when not in use.
Conventional light fittings has been replaced with LED energy saving
light fixtures in areas across the hospital.
All these initiatives has helped in reducing the energy consumption.
FOREIGN EXCHANGE EARNINGS & OUTGO
(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 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. 11,157.48 lakhs
Outgo : Rs. 1,025.79 lakhs
PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 217 (2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules, 1975,
and amendments thereto, the names and other particulars of the
employees are required to be set out in the Annexure to the Directors''
Report. However, as per the provisions of Section 219(1)(b)(iv) of the
Act, the Annual Report is being sent to all the Members excluding the
aforesaid particulars. Any member interested in obtaining a copy of the
particulars of the employees may write to the Company Secretary of the
Company.
DIRECTORS'' RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, your
Directors state:
(i) that in the preparation of the annual accounts, the applicable
accounting standards have been followed;
(ii) that 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 on 31st March, 2014 and of the profit of
the Company for the year ended 31st March, 2014.
(iii) that proper and sufficient care has been taken for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
(iv) that the annual accounts have been prepared on a going concern
basis.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement, a Management Discussion
and Analysis Report and a Report on Corporate Governance is attached
with this Report.
A Certificate from the Statutory Auditors of the Company regarding the
Compliance by the Company of the conditions stipulated under Clause 49
of the Listing Agreement is also attached with this report.
A declaration by the Managing Director pursuant to clause 49(I)(D)(ii)
of the Listing Agreement 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, 2014, is
also attached with this report.
AUDITORS
M/s. S. C. Vasudeva & Co., Chartered Accountants, Auditors of the
Company shall hold office until the conclusion of the ensuing Annual
General Meeting and are eligible for re-appointment.
The Company has received a letter from M/s. S. C. Vasudeva & Co.,
Chartered Accountants, that their re-appointment, if made, would be
within the prescribed limits under Section 141(3)(g) of the Companies
Act, 2013, and that they are not disqualified for re-appointment.
COST AUDITORS
The Company has appointed M/s Devarajan Swaminathan and Co., Cost
Accountants, as the Cost Auditors for conducting the audit of cost
records of the Company for the year ending 31st March, 2015.
SECRETARIAL AUDITORS
The Company has appointed M/s RSM & Co., Company Secretaries, as the
Secretarial Auditors for conducting the secretarial audit of the
Company, for the year ending 31st March, 2015.
DIRECTORS
Mr. D. M. Spolia and Mr. Shakti Sinha resigned as Directors of the
Company consequent upon their retirement / transfer from their office
being ex-officio Directors nominated by the Govt. of Delhi.
Ms. Archana Arora (Principal Secretary - Finance, Govt. of Delhi) was
appointed by the Board as an Additional Director of the Company in
place of Mr. Shakti Sinha. Ms. Archana Arora has resigned consequent up
on her transfer from the office of Principal Secretary - Finance, Govt.
of Delhi.
Mr. S. K. Srivastava (Chief Secretary, Govt. of Delhi) and Dr. M. M.
Kutty (Principal Secretary - Finance, Govt. of Delhi) were appointed by
the Board as Additional Directors of the Company. Mr. S. K. Srivastava
and Dr. M. M. Kutty hold the office of Directors only up to the date of
the Annual General Meeting of the Company. Notice has been received
from members pursuant to Section 160 of the Companies Act, 2013
signifying their intention to propose the appointment of Mr. S. K.
Srivastava and Dr. M. M. Kutty as Directors of the Company, liable to
retire by rotation.
In accordance with the provisions of the Companies Act, 2013 and the
Articles of Association of the Company, Ms. Suneeta Reddy, Ms. Shobana
Kamineni and Prof. V. N. Rajasekharan Pillai, 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.
Prof. V. N. Rajasekharan Pillai being eligible, offer himself for
appointment as Independent Director in terms of Section 149 and other
applicable provisions of the Companies Act, 2013.
Prof. V. N. Rajasekharan Pillai, Dr. B. Venkataraman, Prof. Ranjit Roy
Chaudhury, Mr. Deepak Vaidya, Mr. T. S. Narayanasami, Mr. S. Regunathan
and Mr. Satnam Arora, Independent Directors have given declarations to
the Board of Directors to the effect that they meet the criteria of
independence as provided in Section 149(6) of the Companies Act, 2013,
and have offered themselves for appointment as Independent directors.
The Nomination and Remuneration Committee has recommended to the Board,
the appointment of all the Independent Directors.
The Board recommends the appointment of Independent Directors in terms
of section 149 and other applicable provisions of the Companies Act,
2013 as set out in the Notice for the Annual General Meeting for
approval of the shareholders.
The notice has been received from members pursuant to section 160 of
the Companies Act, 2013 signifying their intention to propose the
appointment of above named independent Directors.
The information on the particulars of the Directors seeking appointment
/ re-appointment, as required under clause 49 of the Listing Agreement,
has been furnished in the notice to the shareholders for the Annual
General Meeting.
Your Directors wish to place on record their appreciation of the
valuable services rendered by Mr. D. M. Spolia, Mr. Shakti Sinha and
Ms. Archana Arora, during their tenure as a Director of the Company.
FIXED DEPOSITS
During the year under review, the Company has not accepted any deposit
under Section 58A of the Companies Act, 1956 read with Companies
(Acceptance of Deposits) Rules, 1975.
INSURANCE
All properties and insurable assets of the Company, including Building,
Plant & Machinery and Stocks have been adequately insured, wherever
necessary.
The Company also has a professional indemnity insurance policy to cover
the risk on account of claims filed against the company in consumer
courts.
RESEARCH & DEVELOPMENT
The Company is running a multi super-specialty Hospital and is not
engaged in any major research & development activity. However, the
Hospital continues to be a major centre of international clinical
trials.
INDUSTRIAL RELATIONS
The Industrial Relations scenario continued to be cordial during the
year under review.
ACKNOWLEDGEMENT
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 employees at all
levels and the consultant doctors.
For and on behalf of the Board
Place : New Delhi S. K. Srivastava
Date : 25th July, 2014 Chairman
Mar 31, 2013
Dear Shareholders,
The Directors take pleasure in presenting the 25th Annual Report of the
Company along with the audited accounts for the year ended 31st March
2013.
FINANCIAL RESULTS
(Rs. in Lakhs)
Particulars Year ended Year ended
31-03-2013 31-03-2012
Total Income 60,815.18 52,262.03
Profit before tax 4,548.11 4,001.02
Provision for taxation 1671.62 1,302.50
Net Profit (PAT) 2,876.49 2,699.60
Balance brought forward
from previous year 5,684.72 4,939.84
Amount available for
appropriation 8,561.21 7,639.44
Appropriations
Transferred to
General Reserve 2,500.00 250.00
Dividend (Proposed) 1,466.77 1,466.77
Corporate Dividend Tax 237.95 237.95
Balance carried to
Balance Sheet 4,356.49 5,684.72
TRANSFER TO RESERVES
The Company proposes to transfer Rs. 2,500.00 lakhs to the General
Reserve out of the amount available for appropriation.
DIVIDEND
The Directors are pleased to recommend payment of dividend on equity
shares @ Rs. 1.60 per share (16 percent) for the financial year ended
31st March, 2013 (previous year Rs. 1.60 per share).
OPERATIONS
During the year under review, the Company has registered all round
growth in its working and achieved higher income and profit. The total
income of the Company increased to Rs. 60,815.18 lakhs from Rs.
52,262.03 lakhs - an increase of 16%.
The Company''s EBIDTA increased by 18% from Rs 6,769.46 to Rs 7,999.06,
whereas the profit after tax increased to Rs 2,876.49 lakhs from Rs
2,699.60 lakhs.
The Solid Organ Transplantation Program of the Hospital continues to
register outstanding growth. Kidney Transplants increased by 72% (from
340 to 584) and Liver Transplants increased by 28% (from 219 to 281)
over the previous year. With this momentum and success, the Hospital
became the Busiest Solid Organ Transplantation Center in the world,
surpassing other renowned transplant centers across the globe.
Performance across numerous other specialties also showed a positive
trend. To name a few, In-vitro Fertilization (IVF) procedures increased
by 53% (from 83 to 127),Caesarian Sections increased by 20% (from 663
to 796), Dialysis increased by 21% (from 34602 to 41734) and Knee
Replacements increased by 6% (from 588 to 688) over the previous year.
The Hospital continued to attract large number of domestic as well as
international patients. The total registration of patients increased by
17% (from 119882 to 140208), Emergency admissions increased by 11%
(from 9474 to10500) and International patients increased by 32% (from
4768 to 6288) over the previous year.
Apollo Hospitals, Noida performed well across all operational
parameters registering a profit of Rs. 97 lakhs against loss of Rs.
64.27 lakhs in the previous year.The ICU admissions increased by 54%
(from 166 to 256), Knee Replacement surgeries increased by 59% (from 17
to 27), Apollo Health Checks increased by 46% (from 602 to 876) and
repeat patients availing the out-patient services increased by 14%
(from 12556 to 14357) over the previous year. The Apollo Hospitals,
Noida continued to be one of the leading destinations for dialysis with
more than 700 dialysis being done in a month.
The Expansion Project undertaken by the main Hospital to add 127
additional Beds comprising of
74 single rooms, 33 general ward beds and 20 ICU beds, has been
completed. With the completion of the expansion project, the total bed
strength of the Hospital has increased to 710 beds. The increased bed
capacity has helped in tiding off the demand for additional beds and
maintaining the satisfaction levels of the patients serviced.
The Apollo Institute of Robotic Surgery was launched in June, 2012 and
has been successfully performing a good number of robotic surgeries
with the Da-Vinci Robotic Surgical System. The latest offering from M/s
Intuitive Surgical has a 3 dimensional field of vision for the surgeon
with ten times magnification and robotic precision provided in an
ergonomic manner. The technology enables smaller incisions, lesser
blood loss and faster recovery apart from other advantages to the
patient.
The Hon''ble Chief Minister of Delhi, Ms.Shiela Dikshit unveiled South
Asia''s first PET SUITE in the Hospital. The facility houses one of the
world''s first installations of integrated simultaneous 3 Tesla PET- MR
and a 128 slice PET-CT. This facility will provide early and functional
diagnosis of patients in Oncology as well as Neurosciences and an
opportunity for novel research possibilities in Molecular Imaging and
Nuclear Medicine putting the hospital on the global medical research
map.
The Hospital successfully commissioned the Cosmetic Clinic. The clinic
offers both non-invasive and surgical options in Aesthetic Medicine as
well as Aesthetic Surgery in a dedicated facility. There is a fully
functional out-patient wing providing a wide bouquet of non-surgical
options including the latest offerings like Ultherapy and Therapeutic
Lasers. The facility also houses a dedicated operation theatre complex
with a Hair Restoration suite, a HEPA-filtered operating room and a
three bedded recovery.
For the second consecutive year, more than 80 personnel including
Doctors, Nurses, Paramedic, and allied support staff after undergoing
one month rigorous training, provided medical cover for three day
Indian Grand Prix Formula Race (F1) 2012 held in October, 2012 at the
Buddh International Circuit (BIC).Medical cover was also provided for a
smaller "closed car" event called SIDVIN Festival of Speed at the Buddh
International Circuit in November-December, 2012.
As part of the ongoing upgradation and renovation programme, a number
of departments and units were refurbished to increase patient comfort
and enhance operational efficiency.
Indraprastha Apollo Hospitals, the first Joint Commission International
(JCI) accredited hospital in India, has well established its
credentials as one of the leading referral tertiary care hospitals in
this part of the world. The hospital provides care in virtually every
specialty and subspecialty, including some of the most complex
procedures. Many of the key outcomes are comparable to the best
hospitals globally. This level of advanced technology and specialist
skills was not contemplated 25 years ago, when the joint venture
agreement was signed.
Since June 1998, the Hospital has been providing free treatment
(excluding medicines and medical consumables) to patients referred by
the Government of NCT of Delhi. A full time medical officer, deputed by
the Directorate of Health Services (DHS), Government of Delhi, is
available in the hospital premises on all working days to meet patients
referred by the Government of NCT of Delhi, scrutinize the necessary
documents as per criteria laid down for the purpose, and guide them
appropriately to various specialties for out-patient consultation or
in-patient treatment as required. The medical officer also daily
liaises with the Hospital Nodal Officer and provides details of all
free admissions to the DHS. During this financial year, 11754 patients
(1910 IP and 9844 OP) referred by the Delhi Government were provided
super- specialty care under this arrangement.
AWARDS AND ACCOLADES
The hospital has consistently strived to serve the patients with the
most up-to-date clinical protocols aided by latest technology while
keeping a constant focus on the quality of care that is delivered. With
such practises and culture in place, the organization has been
frequently acknowledged across various platforms.
The coveted The Week-Hansa'' Survey on Best Hospitals in India published
in December, 2012, has rated the hospital as:
- Best private multi-specialty hospital in Delhi, for the fifth
consecutive year.
- Third best private sector hospital in India.
- Best Hospitals in Cardiac Care
Time Research Media Health care Excellence Awards-2012 felicitated
organizations for their industry contributions. The innovations for
increased efficiency and improved performance of healthcare delivery at
large were awarded. The Hospital was rated as:
- India''s Most Innovative Hospital
- Best Diagnostic and Imaging Centre in North India
- The Best Heart Care Centre in North India
The Hospital Management Asia (HMA) Awards recognizes and honours
hospitals in Asia that carry out best practices in hospital management.
HMA, 2012 garnered 363 entries representing 89 hospitals from 12
countries and Indraprastha Apollo Hospitals received Excellence Award
for Corporate Social Responsibility and Excellence Award for Customer
Service.
Apollo Hospitals received ''Asia Responsible Entrepreneurship Awards''
(AREA) South Asia 2012 awards in two categories. Dr. Prathap C Reddy,
Chairman, Apollo Hospitals Group won the prestigious award for
Responsible Business Leader.
The Apollo Innovation and Quality Awards felicitate hospitals within
the Group for their assiduous efforts and innovations to continuously
enhance patient care. This year the hospital won four of the six awards
and were in the top three positions in the other categories. The Apollo
Innovation and Quality Awards, 2012 were as follows:
- First in Excellence in Financial Practices
- First in Excellence in Clinical Practices
- First in Excellence in Environmental Conservation
- First in Excellence in Operations
- Third in Excellence in HR Practices
The awards are a testimony to the level of services that the hospital
persistently delivers and the excellence it strives for in tertiary and
quaternary level healthcare.
FOCUS ON QUALITY
Being the first Internationally Accredited Hospital in India, Quality
is deeply ingrained in the hospital''s culture and it constantly strives
to keep up to it.
The organization reviews and closely monitors the feedback level of its
patients and deliberates on ways to improve our services according to
the customer inputs. The average annual Voice of Customer (VOC) score
was above satisfactory and remains a key focus area. Apart from this
various Six Sigma projects for optimizing process performance and
improving profitability had been undertaken last year.
The practices under various accreditations were constantly audited and
compliance was ensured through JCI (Joint Commission International)
mock audits that were conducted in December 2012 and April 2013. Also,
the Laboratory services of the main hospital successfully underwent a
Re-accreditation NABL (National Accreditation Board for Testing and
Calibration Laboratories) audit in March, 2013.
Subsequent to the NABH accreditation of Apollo Hospital, Noida, the
surveillance audit was conducted successfully. Apollo Hospital, Noida
has been re-accreditated by NABL.
ACE@25 (Apollo Clinical Excellence@25): The current average score for
the ACE@25 data set is 81.3. The ALOS post THR and TKR is 5.0 days as
well as 4.81 days respectively. Patient Satisfaction with Pain
Management is 4.73 as against our target of 4.5. The Surgical Site
Infection rate is 0.125% as against benchmark of 2%. The current rate
of Break in Planned Radiotherapy is 2.5 as against benchmark of 5%.
RACE (ROCKET Apollo Clinical Excellence):The medical dashboard for the
Centres of Excellence is a new initiative towards excellence and the
average score for the RACE initiatives for last year has been 83.58.
Door to antibiotic timing for sepsis is within our benchmark of 180
minutes. Elective
PTCA Mortality Rate is nil. Mortality rate for TKR and THR is 0% for
our hospital. The Door to antibiotic time in sepsis patients is 154
minutes as compared to our benchmark of 180 minutes. The percentage of
Major Complications for Radiotherapy patients has been nil. The One
Year Survival Rate for Kidney Transplant Patients is 98.58%.
AQP (Apollo Quality Program): Apollo Quality Program is a group-wide
program to bring quality, excellence and service delivery at a common
platform making our offerings and services standardized. There has been
100% compliance to the completion of nursing handovers. 100% of the
patients receive antimicrobial prophylaxis within one hour of surgery.
There has been more than 99% compliance to minimum content of medical
records on closed audits. The accuracy of ICD-10 coding is 100%. There
has never been any incident of retained foreign body during surgery.
The incidence of Hospital Acquired Pressure Ulcers is nil in the last
year.
COMMUNITY OUTREACH PROGRAMS and CORPORATE SOCIAL RESPONSIBILITY (CSR)
- Chacha Nehru Sehat Yojana: Chacha Nehru Sehat Yojana was launched by
the Govt. of NCT of Delhi on 14th November 2011 for providing Health
Checks to all the students enrolled in the city''s government schools.
Indraprastha Apollo Hospitals provided medical screenings in schools
and conducted immunization of students against Tetanus (Booster dose)
and provided curative treatment, health education and counseling to the
students. Medicines like iron, calcium, Vitamin A, antibiotics,
antifungal, anti-histaminic, cough syrups etc. were given to the needy
students.
During the implementation of the school health programme, the hospital
teams have examined approximately 17,000 children in five schools in
the given period from January 2012 to Feb 2013.
- Jasola Clinic: Apollo Hospitals, Delhi has adopted the Jasola village
adjacent to the hospital. At the clinic, consultations in internal
medicine, gynecology and pediatrics are provided to the local residents
thrice a week. During the year 2012-13, more than 4000 patients were
screened at the clinic.
- Mobile Health Scheme Service: This scheme is in collaboration with
the Delhi Government and undertakes physician visits to various
neighboring areas like JJ Cluster area, Jasola, Madanpur Khadar, etc.
from Monday to Saturday providing adequate primary health cover. Under
this scheme more than 1900 patients were screened during the year
2012-13.
- BLS Training: Apollo Hospitals, New Delhi, organized various Basic
Life Support (BLS) training sessions and Cardiac camps for the Delhi
Police from April to September 2012. More than 550 people benefitted
with this initiative. In a two day program, a team from Emergency
services imparted basic life support training to over 800 prisoners and
150 staff members of Tihar Jail as a part of its community outreach
program.
- Health initiatives in Schools and Colleges:
BLS training and health talks were organized in various schools and
colleges of Delhi to name a few, Satyawati College, St. Stephen''s
college, Asia Pacific Institute of Management, DAV Public School,
British School, Khaitan Public School and Sanskriti School. Information
booklets and related literature on good health were also distributed to
the children.
- Health Programme for Senior Citizens and NGO''s: 20 health camps and
health talks were organized during the year for various Senior Citizens
Association and NGO''s. The camps covered various specialties like
Gynecology, Orthopedics, Urology, Cardiology, Neurology and
Respiratory. Some of the NGOs where the events were conducted were
Tarawati Charitable trust, Aprajita Mahila Smiti and Care & Cure
Foundation.
- Apollo Dil Ki Daud: As a part of our Neighborhood engagement
Campaign, the third "Apollo Dil Ki Daud" mini marathon was organized on
Sunday, 7th October 2012. More than 2000 participants ran for a healthy
heart.
Our senior consultants also took part in this mini marathon.
Mr. Satpal Singh (Former Wrestler and Gold Medalist in 1982 Asian
Games), Mr. Gurusharan Singh (Former Indian Cricketer) & Major D P
Singh (Kargil veteran and Indian representative in Para Olympics) were
the Guests for this event.
- World Neighborhood Day: World Neighborhood Day on 31st March, 2013
was celebrated by inviting all RWA members and community to participate
in an evening function. This program was attended by approximately 400
neighborhood residents. Dr. Prathap C. Reddy graced this occasion and
also launched the Apollo Protect'' initiative. With Apollo Protect a
concerted effort with structured adult vaccination against a host of
acute and chronic Vaccine Preventable Diseases (VPD) like Cervical
Cancer, Pneumococcal Meningitis, Swine Flu and Cholera to name a few is
undertaken. This service will be the largest adult vaccination program
in the country and would be available on all days of the week.
INFECTION CONTROL AND ENVIRONMENT
The infection control program is one of the most effective in the
country. The multi-disciplinary hospital infection control committee
actively reviewed the monthly infection control indices and the
policies as well as practices for effective control over nosocomial
infections.
Employee safety and protection against occupational hazards was a
constant theme throughout the year which was addressed with educational
drives, poster competition and on-site reviews of the prevalent
knowledge and practices amongst the staff.
The incidence of nosocomial infections namely Catheter related Urinary
Tract Infection (CRUTI) with an annual mean of 1.02 per 1000 Urinary
Catheter Days, Central Line related Blood Stream Infection (CRBSI) with
an annual mean of 0.71 per 1000 Central Line Days and Ventilator
associated Pneumonia (VAP) with an annual mean of 1.85 per 1000
Ventilator Days is comparable with the best benchmarks across the
world.
TECHNOLOGY ABSORPTION
During the year, the Hospital continued its efforts to maintain
standards at par with the best hospitals globally by investing in
cutting-edge technology to offer the latest in medical care. Some of
these are:
1. PET MRI: Designed to diagnostically address the complexities of
human body, Apollo Hospitals has installed a PET MRI, which is first of
its kind across South Asia along with a PET CT, in the PET SUITE,
signifying a tremendous leap forward in imaging capabilities.
PET MR system has resulted from the amalgamation of a state of art
whole body 3T MRI scanner and a high end PET system, which has been
fully integrated and precisely aligned within the same gantry. This
enables to simultaneously acquire accurate information on morphology,
function and metabolism and delivering highly defined, 3-D images,
enabling them to make the best choices about treatments across
specialties. The scanning thus takes less time, is more efficient and
accurate and reduces patient discomfort. As MR has no radiation, the
PET MR significantly reduces overall radiation dose, making it safer
for children and also for patients undergoing repeated studies for
therapy monitoring. The significance of this facility gets manifold
augmented by the deft handling and interpretive reporting of leading
dedicated experts in the field who have been engaged by the hospital.
The PET-CT facility being equipped with state of the art 427 slice /sec
CT scanner, Ultra HDPET with highly specialized 4D respiratory Gating
software is a boon for cancer patients as the radiotherapists would be
able to deliver highly precise radiation dose, synchronized with
patients'' breathing pattern.
2. MALDITOF-VITEK® MS system for rapid automated identification of
micro organisms causing infections: Country''s first MALDITOF- VITEK® MS
system for healthcare setup was installed at Indraprastha Apollo
Hospitals. The device by BioMerieux Inc. is based on advanced
technology for quick automated microbial identification of
disease-inducing micro organisms such as fungi and bacteria to
accelerate and increase the accuracy of diagnosis and treatment.
The advantage is a significant reduction in time taken to provide
doctors with actionable results in managing infection. The speed of
diagnostic laboratory results has a critical impact on curbing the
increasing antimicrobial resistance. The rapid identification of
microorganisms has been shown to help guide patient treatment and
improve clinical outcomes. The speed allows doctors to specifically
target their therapies with the right antimicrobial at the right
dosage. This plays an important role in preventing and slowing the
emergence of resistant bacteria and fungi which is much required in
today''s world especially in countries like India.
3. Matrix-Assisted Laser Desorption Ionization- Time of Flight mass
spectrometry (MALDI- TOF MS): Mass Spectrometry (MS) is a technique
used to screen a multitude of molecules simultaneously and determine
the identity of microbes by exciting them with laser and analyzing
their protein pattern by analyzing their individual mass-to-charge
ratio. These molecular "signatures" can be used for rapid bacterial and
fungal identification (ID) from isolated colonies. MALDITOF-VITEK MS is
based on Matrix-assisted laser desorption/ ionization-time-of-flight
mass spectrometry (MALDI-TOF MS) - one of the latest addition in most
promising technologies, producing results in a matter of few minutes
rather than days as it happens currently. The biggest payoff comes to
the patients and clinicians with huge reduction in the time it takes to
identify organisms. This technology assists clinicians dealing with
infectious diseases in facing the ever-increasing number of potentially
pathogenic species of bacteria and fungi influxed into clinical
significance.
4. Fibroscan: This machine was procured to enhance the capabilities of
our Gastroenterology department, providing a non invasive diagnostic
tool to evaluate the stage of Liver fibrosis, which helps diagnosing,
monitoring treatment and projecting the prognosis.
5. Brachytherapy: With the procurement of latest Brachytherapy unit
Apollo Cancer Institutes at Indraprastha Apollo Hospitals, became the
most advanced comprehensive cancer care unit in the region with
renowned experts in the field of Oncology. This unit comes with the
advantages of precise targeting of the radiation, which spares healthy
tissue; the fact that the procedure can usually be completed in 1-3
hours on an outpatient basis; a substantially lower incidence than
surgery or external beam irradiation of both impotence and
incontinence; and generally little impact on the patient''s quality of
life. Brachy" is a Greek word meaning short. Brachytherapy involves
treating disease by exposure to a radioactive substance (radiotherapy).
Doctors place a small radioactive source (pellet or seed) in or a short
distance from a cancerous tumour. This unit of Brachytherapy allows use
of a high dose of radiation while reducing the risk of damage to nearby
healthy tissue and increasing the likelihood the cancer is destroyed.
Doctors may place Brachytherapy seeds inside a body cavity, such as the
vagina, or insert seeds into body tissue using hollow needles.
Brachytherapy may be used alone or with radiation given externally.
Radioactive seeds may be left permanently in place or removed after
some time. Now Brachytherapy is being used in the treatment of many
malignancies, including: Bile duct, Breast, Cervical, Endometrial
(uterine), Oesophageal, Lung, Ocular melanoma, Prostate, Soft tissue
sarcomas and other tumors.
ENERGY CONSERVATION
The Company on a continuous basis undertakes programmes for conserving
energy. In all nearly 800 light fixtures have been replaced with LED
type energy saving light fixtures in areas across the hospital which
has resulted in reduction of around 38 KW load on our existing
electricity consumption. All other conventional light fittings are in
the process of being replaced with LED type energy saving light
fixtures.
A 330 KW capacity Variable Frequency Drives comprising of 47 VFD''s has
been installed in the AHU motor and secondary chiller pumps and it will
enable the hospital to save around 66 KW of electricity load.
A BMS system in OT''s & ICU''s has been installed for better HVAC
controls. The existing main LT panels have been upgraded with new ACB''s
with latest standards and protections.
A Novac Gas based total room flooding system in Clinac & Novalis TX has
been installed.
All these initiatives will also help in reducing the energy
consumption.
FOREIGN EXCHANGE EARNINGS & OUTGO
(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 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. 7,033.44 lakhs Outgo : Rs. 804.76 lakhs
PARTICULARS OF EMPLOYEES
The Particulars of employees as per Section 217 (2A) of the Companies
Act, 1956 read with the Companies (Particulars of Employees) Rules,
1975 are annexed and form part of this report.
DIRECTORS'' RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, your
Directors state:
(i) that in the preparation of the annual accounts, the applicable
accounting standards have been followed;
(ii) that 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 on 31st March, 2013 and of the profit of
the Company for the year ended 31st March, 2013.
(iii) that proper and sufficient care has been taken for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
(iv) that the annual accounts have been prepared on a going concern
basis.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement, a Management Discussion
and Analysis Report and a Report on Corporate Governance is attached
with this Report.
A Certificate from the Statutory Auditors of the Company regarding the
Compliance by the Company of the conditions stipulated under Clause 49
of the Listing Agreement is also attached with this report.
A declaration by the Managing Director pursuant to clause 49(I)(D)(ii)
of the Listing Agreement 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, 2013, is
also attached with this report.
AUDITORS / AUDITORS'' REPORT
M/s. S. C. Vasudeva & Co., Chartered Accountants, Auditors of the
Company shall hold office until the conclusion of the ensuing Annual
General Meeting and are eligible for re-appointment.
The Company has received a letter from M/s. S. C. Vasudeva & Co.,
Chartered Accountants, to the effect that their appointment, if made,
would be within the prescribed limits under Sction 224(1-B) of the
Companies Act, 1956. The Board of Directors recommends the appointment
of M/s. S. C. Vasudeva & Co., Chartered Accountants as Auditors of the
Company.
DIRECTORS
Mr. P. K. Tripathi and Mr.Anshu Prakash resigned as Directors of the
Company consequent upon their retirement / transfer from their office
being ex-officio Directors nominated by the Govt. of Delhi.
Mr. D. M. Spolia, Director of the Company was appointed as Chairman of
the Board of Directors of the Company in place of Mr. P. K. Tripathi.
Mr. S. C. L. Das (Secretary, Health & Family Welfare, Govt. of Delhi)
and Mr. Shakti Sinha (Principal Secretary - Finance & Power, Govt. of
Delhi) were appointed by the Board as Additional Directors of the
Company. Pursuant to Section 260 of the Companies Act, 1956,Mr. S. C.
L. Das and Mr. Shakti Sinha hold the office of Directors only up to the
date of the Annual General Meeting of the Company. Notice has been
received from members pursuant to Section 257 of the Companies Act,
1956, proposing the appointment of Mr. S. C. L. Das and Mr. Shakti
Sinha as Directors of the Company, liable to retire by rotation.
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Ms.Renu S Karnad, Mr. T S
Narayanasami, Lt Gen. (R) Vijay Lall and Dr B Venkatraman, Directors of
the Company shall retire by rotation at the ensuing Annual General
Meeting and being eligible, offer themselves for re-election.
Resolutions seeking approval of the shareholders for the appointment
/re-appointment of Directors have been incorporated in the notice of
the Annual General Meeting.
The information on the particulars of the Directors seeking appointment
/ re-appointment, as required under clause 49 of the Listing Agreement,
has been furnished in the notice to the shareholders for the Annual
General Meeting.
FIXED DEPOSITS
During the year under review, the Company has not accepted any deposit
under Section 58A of the Companies Act, 1956 read with Companies
(Acceptance of Deposits) Rules, 1975.
INSURANCE
All properties and insurable assets of the Company, including Building,
Plant & Machinery and Stocks have been adequately insured, wherever
necessary.
The Company also has a professional indemnity insurance policy to cover
the risk on account of claims filed against the company in consumer
courts.
RESEARCH & DEVELOPMENT
The Company is running a multi super-specialty Hospital and is not
engaged in any major research & development activity. However, the
Hospital continues to be a major centre for international clinical
trials.
INDUSTRIAL RELATIONS
The Industrial Relations scenario continued to be cordial during the
year under review.
ACKNOWLEDGEMENT
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 employees at all
levels and the consultant doctors.
For and on behalf of the Board
Place : New Delhi D. M. Spolia
Date : 26th July, 2013 Chairman
Mar 31, 2012
The Directors take pleasure in presenting the twenty fourth Annual
Report of the Company along with the audited accounts for the year
ended 31st March, 2012.
FINANCIAL RESULTS
(Rs. in Lakhs)
Particulars Year ended Year ended
31-03-2012 31-03-2011
Total Income 52,262.03 46,241.50
Profit before tax 4,002.10 4,526.83
Provision for taxation 1,302.50 1,454.34
Net Profit (PAT) 2,699.60 3,072.49
Balance brought forward
from previous year 4,939.84 3,827.73
Amount available for
appropriation 7,639.44 6,900.22
Appropriations
Transferred to
General Reserve 250.00 250.00
Dividend (Proposed) 1,466.77 1,466.77
Corporate Dividend Tax 237.95 243.61
Balance carried to
Balance Sheet 5,684.72 4,939.84
TRANSFER TO RESERVES
The Company proposes to transfer Rs. 250.00 lakhs to the General
Reserve out of the amount available for appropriation and an amount of
Rs. 744.88 lakhs is proposed to be retained in the Profit and Loss
Account.
DIVIDEND
The Directors are pleased to recommend payment of dividend on equity
shares @ Rs. 1.60 per share (16 percent) for the financial year ended
31st March, 2012 (previous year Rs. 1.60 per share).
OPERATIONS
During the year under review, the total income of the Company increased
to Rs. 52,262.03 lakhs from Rs. 46,241.50 lakhs in the previous year. The
profit after tax stood at Rs. 2,699.60 lakhs against Rs. 3,072.49
lakhs in the previous year.
The Indraprastha Apollo Hospital recorded all round growth. It was a
year of outstanding growth for the Organ Transplant Centre. Kidney
transplants increased by 93 per cent (from 176 to 340), Liver
transplant increased by 31 per cent (from 167 to 219) over the previous
year. The Renal transplant team achieved a special milestone when it
performed Delhi's first successful Kidney transplant between patients
of different blood groups. This cutting edge procedure involving
targeted immunotherapy gives new hope for renal transplantation in
cases of donor and recipient blood group mismatch.
New registration of in-patients increased by 8.5 per cent, out patient
volume increased by 7 per cent, average daily bed occupancy increased
from 477 to 516, the number of surgeries increased by 10 per cent, Cath
procedures increased by 11 per cent, Dialysis increased by 8 per cent,
Radiation Oncology increased by 17 per cent, MRI procedures rose by 13
per cent, CT Scan procedures increased by 11 per cent, and the Total
Hip & Knee Replacements increased by 21 per cent over the previous
year.
The Hospital continued to attract a large number of international
patients globally, with almost 22,000 international patients (around
5000 in patients and 17,000 out patients) having been treated at
Indraprastha Apollo Hospitals.
Apollo Hospitals, Noida, too, registered a steady growth in patient
numbers, with 6 per cent growth in new registrations and 10 per cent
growth in total OPD volumes. Number of dialysis increased by 20 per
cent (from 5516 to 6224). However, despite a rise in volumes, Apollo
Hospitals, Noida incurred a loss of Rs. 64.27 lakhs mainly due to
increase in staff costs and costs of other inputs.
The Government of India, vide its Gazette Notification No. 501 dated
23/03/2011, has extended the scope of Employee State Insurance Act 1948
to include certain class of establishments including corporate
hospitals w.e.f. April 1, 2011. The Company has implemented ESIC
scheme. All employees who are drawing salary up to Rs. 15000/- per
month are being covered under the ESIC scheme.
In pursuance of the interim order passed by the Hon'ble Supreme Court
of India on 30.11.2009, the Company continues to provide free treatment
exclusive of medicines and medical consumables to the patients referred
by the Government of Delhi for free treatment in the Hospital. During
this year, 8,330 patients, including outpatient new registrations and
repeat visits, were provided free treatment in the Hospital. On an
average, 60 to 70 inpatients, including 20 to 25 ICU patients, are
being treated free of cost (excluding medicines and consumable) at
Indraprastha Apollo Hospitals.
TRAGIC AIR ACCIDENT
On May 25, 2011, three staff members of the hospital died in a tragic
air accident while providing medical escort to a critically ill patient
who was air lifted from Patna. The team consisting of Dr. Rajesh Jain,
Dr. Syed Arshad Abbas and Staff Nurse Mr. Cyril P. Joy were among the
ten people killed when the aircraft crashed at Faridabad. The Board of
Directors express their heartfelt condolences for the loss of ten lives
including three staff members of the Hospital in the tragic accident
and pay rich tributes to the brave staff members who lost their lives
in the call of duty.
FACILITY EXPANSION & UPGRADATION
The expansion project undertaken by the Hospital has now been
completed. With the completion of the expansion project, 127 beds
comprising 74 Single Rooms, 33 General ward and 20 ICU beds will be
added to the capacity of the Hospital.
In addition, a 'State-of-the-art' Cosmetic Centre has been set up to
provide aesthetic medicine on an out-patient basis. The facility has
consult rooms, laser treatment rooms dedicated daycare operating room,
and a hair-transplant room in a soothing, non-clinical ambience. Out
of the additional beds, 50 beds have already been commissioned. The
remaining beds and the Cosmetic Centre shall be made operational
shortly.
As part of the ongoing upgradation and renovation programme, a number
of departments and units were refurbished to increase patient comfort
and enhance operational efficiency:
1. In order to meet the pressing demand of Dialysis and increased
number of renal transplants, seven additional beds were commissioned in
the Dialysis unit taking the capacity to 28.
2. The following departments were refurbished:
a. Gynecology & Pediatric OPD
b. Sample collection
c. Chemotherapeutics Admixture Room
d. Telemedicine Room
e. Nucleic Acid Testing (NAT) Laboratory
f. Fetal Medicine
g. Staff Cafeteria
3. A new Out Patient Wing (OPD 2C)-with 14 Consultation rooms has
been commissioned in place of 28 general ward beds, to accommodate the
new Consultants, some of whom have already joined the Hospital and some
who will be joining shortly.
4. In order to improve the Out Patient experience, the International
section has been completely de-linked from the Platinum Lounge. After
renovations, the Platinum Lounge is now available for patients who want
quick, personalised out-patient consultation in an exclusive ambience.
5. The Company has tied-up with M/s East Delhi Focus Imaging, LLP to
install a PET mMR, PET-CT mCT 128, equipped with RTP and Respiratory
4D Gating and a Standing MRI. The facility shall offer improved
performance parameters with faster whole body studies, potential for
reduced dose requirements and improved lesion detectability.
Indraprastha Apollo Hospitals will be the first hospital in the country
to have a PET MRI system.
6. With an aim to further enhance the experience of patients and
attendants as they wait, well known food brand "Haldirams" has been
invited to operate a food outlet in the Atrium of the Hospital and it
has been widely appreciated by the patients and attendants.
AWARDS AND ACCOLADES
The hospital continued to garner awards and accolades, ranging from
recognition for its clinical excellence to CSR and environment best
practices. The Week-Hansa survey on Best Hospitals in India, published
in November, 2011, has rated the Hospital as:
- Best Private Hospital in Delhi
- Sixth best hospital across India
- Third best hospital for Cardiology in India
- Best private hospital for Diabetic Management in Delhi
- Third best multi specialty hospital in India in the private sector
- Second best hospital for Emergency care in Delhi in the private
sector.
Dr Prathap C Reddy, Founder and Chairman, Apollo Hospitals Group was
honoured with the prestigious Lifetime Achievement Award' at the FICCI
Healthcare Excellence Awards 2011.
For its environmental practices, Indraprastha Apollo Hospital was
awarded a Special Commendation for the Golden Peacock Environment
Management Award by a jury chaired by Justice P. N. Bhagwati, Former
Chief Justice of India.
At the CII Healthcare Excellence Awards, Apollo Delhi received
Commendation for Strong Commitment to Excel on Journey towards Business
Excellence.
The hospital received the 'CNBC TV18 and ICICI Lombard India Healthcare
Awards 2011' for Best Hospital in Obstetrics and Gynecology.
The hospital continued to be the preferred medical partner at sporting
events. It was selected as the referral hospital for the Formula One
race held in Greater Noida in October, 2011.
Over the years, the medical fraternity at Indraprastha Apollo Hospitals
has received many awards and accolades in recognition of its pioneering
achievements in Indian healthcare. Excellence is reflected in the
calibre and brilliance of our medical fraternity.
FOCUS ON QUALITY
The first hospital in the country to receive accreditation from the
prestigious Joint Commission International, USA (in year 2005) for
delivery of quality healthcare services and meeting patient safety
needs, Indraprastha Apollo Hospitals has once again successfully met
these ever exacting standards. It was surveyed again for re-
reaccreditation in July, 2011, and again successfully sailed through
the intensive and rigorous checks. The Hospital has now been re-
accredited by JCI for a further period of three years.
Apollo Hospital, Noida was awarded Accreditation from NABH (National
Accreditation Board for Hospitals and Healthcare providers) in June,
2011, valid for a period of three years.
Rigorous training has helped hardwire 5 S (Sort, Set in Order, Shine,
Standardize and Sustain), which makes a workplace more orderly and
efficient, into the system. There is an obvious visible impact with the
workplaces looking neat, environment hygienic and organized, besides
improving retreivability of items. Periodic 5 S audits were conducted.
With the constant focus on training, the average medication error rate
has come down to 1.9 per 100 discharges which is better than the ISMP
(Institute of Safe Medication Practices, US) benchmark of 2 per 100
discharges. The patient fall rate is 0.08 per 1000 Adjusted Patient
Days which is much better than the acceptable rate of 2 per 1000
Adjusted Patient Days (JCAHO, US).
The Hospital has implemented the WHO sponsored "Safe Surgery Saves
Lives" programme, which involves following of a Surgical Safety
Checklist designed on the lines of the checklists followed by aircraft
pilots, to reduce errors in surgical procedures. Bestselling author of
the book 'The Checklist Manifesto', Dr. Atul Gawande, who had initiated
the Safe Surgery programme, and is the WHO director on the project,
visited the hospital and addressed the doctors and staff on this major
initiative, expressing his satisfaction in the manner it was being
implemented.
The Voice of Customer in-patient scores have exceeded the target of 4.6
set for the year, against a maximum of 5.
FIRE SAFETY IN THE HOSPITAL
Indraprastha Apollo Hospitals has taken proactive steps for fire safety
in the Hospital, including constitution of a Fire Safety sub-committee
and Daily Fire Safety Rounds. In order to ensure maximum preparedness
fire drills are being conducted at odd hours such as middle of the
night, Sundays or on Public holidays. The Frequency of checking
important Fire equipment such as Fire Doors, Smoke Detectors, and Smoke
Extractor machines has been increased to ensure optimum preparedness. A
variety of additional equipment and signage have been acquired and
installed. Fire Training sessions by Delhi Fire Service Officers have
been conducted to impart training to the Hospital staff. To ensure that
the staff is abreast with the latest trends and methods in Fire safety,
the staff members are regularly being sent for specialised training to
International Institute of Security and Safety Management and other
fire safety institutes.
COMMUNITY OUTREACH PROGRAMS AND CORPORATE SOCIAL RESPONSIBILITY (CSR)
As always, the hospital continues to play a very proactive role in the
community outreach programs. Some of the events organized during the
year included:
- International Women's Day: A screening Camp was conducted at Delhi
Secretariat for women employees, which was inaugurated by Hon'ble Chief
Minister Smt. Sheila Dikshit. A special issue of Apollo Life, a
publication highlighting all aspects of Cancer care including the
preventive steps and treatment options available, was also released.
- World Blood Donor Day: A blood donation and awareness drive was
conducted at a function presided over by Dr. A.K. Walia, Hon'ble
Ministry of Health & Family Welfare, Govt. of NCT of Delhi, and
attended by a large number of blood bank officers from Delhi and NCR,
officials from the Ministry of Health, NGOs and donors.
- World Stroke Day: "Stroke Clubs" were launched across the city,
providing a forum for stroke patients to interact and support each
other in their recovery.
- Oral Cancer & Breast Cancer Awareness Campaigns: Oral Cancer & Breast
Cancer Awareness campaigns were conducted for the benefit of the
neighboring community, attendants of patients and all employees.
- Basic Life Support (BLS) training: The Emergency Department conducted
21 Basic Life Support (BLS) training sessions covering 1970 people from
all walks of life on responding to medical emergency situations.
- Life Support training programmes: Several Life Support training
programmes were also organised for Police personnel. BBC World News
covered the programme as part of a documentary on road accidents and
lauded the efforts to train police as first responders to road
accidents.
- Hope is Real: Hope is Real chronicles real stories of people who had
the courage to fight cancer. Our online services received a momentum,
following the launch of a "facebook page" and a web portal
(www.hopeisreal.in), which function as a one-point communication and
information platform for people seeking information about cancer,
treatment modalities, life support services and latest global standards
of treatment options.
- Organ Transplant Annual Conference:
Indraprastha Apollo Hospitals, along with the Indian Society for Organ
Transplant, jointly hosted its annual conference. Faculty included a
number of specialists in Organ Transplantation from the US, the UK, and
India.
- Gift a Life Initiative: In view of the need for organ donation in the
country, the Apollo Transplant Institutes started a 'Gift a Life
initiative which was launched, by ace cricketer Gautam Gambhir. The
mission of Gift a Life' is to ensure that no person in India dies for
want of an organ. The aim is to disseminate information and create
awareness on the issue of organ donation and simultaneously connect
doctors, citizens, hospitals, healthcare organisations, civil society
organisations, Governments, NGOs and public sector institutions on a
common platform to create awareness on this pressing issue of our
times.
- First Living Donor Liver Transplant in Pakistan: On special
invitation from the Sheikh Zayed Hospital in Lahore, a medical team
from Indraprastha Apollo Hospitals led by Dr. Subhash Gupta, Senior
Consultant-Liver Transplant performed the first Living Donor Liver
Transplant in Pakistan. This unique collaboration between the medical
fraternities of the two neighboring countries was widely covered by
media of both the countries.
- Pledge to Donate Organs: To express support and solidarity with the
Hospital's Organ Donation campaign, more than 2200 staff members led by
the senior management pledged to donate their organs on 5th February to
mark the Founder's Day of the Apollo Hospitals Group. A voluntary blood
donation camp was also organized at the hospital on the same day.
- Celebrating Life: A Cancer Survivors' day was organized at the
hospital. A magic show and hasyakavisammelan were organized, and
mementos distributed to the participants. About 150 adult and pediatric
cancer patients attended the event.
- Marathon/Run for Healthy Heart: As part of our efforts to engage with
our neighbourhood Apollo Dil ki Daud was held at Indraprastha Apollo
Hospitals. More than 1850 people participated in the mini marathon
organised by the hospital in association with Billion Hearts Beating
Foundation. More than half of these represented our Neighbourhood
Residential Associations such as SaritaVihar, Jasola Vihar, New Friends
Colony, SukhdevVihar and Kalkaji. There was a tremendous response from
Apollo Staff members including Senior Consultants.
- World Neighbourhood Day: A cultural evening captioned Communion was
organised with the Resident Welfare Associations and housing societies
as well as neighbours at large. A positive response with active
participation of more than 200 residents including RWA office bearers
from our valuable neighbourhood residents of Sarita Vihar, Jasola Vihar,
New Friends Colony, Sukhdev Vihar and Kalkaji made this evening
memorable. The fun-filled musical evening where well known singer
Shibani Kashyap and Kathak dancers Rahul Pawar and Shailaja kept the
audience enthralled, was the first time any Hospital was celebrating
such an event in the country.
- Chacha Nehru Sehat Yojana: The Hospital has been participating in the
Chacha Nehru Sehat Yojana, a scheme started by Government of NCT of
Delhi under which medical checkups for about 2500 children of
Government schools have been done every month.
- Health Awareness Talks and Cancer Screening Camps: Almost 140 camps
across the National Capital Region have been conducted over the year
providing free ECG, Echo, BP, Blood Sugar and various consultations,
where 20,618 people are benefited. Indraprastha Apollo Hospitals has,
since its inception, stressed the importance of early diagnosis of
cancer among the general public. Over the year, several health
awareness talks and cancer screening camps were conducted.
- Jasola Village Clinic: As an extension of our commitment to the
community, the Hospital continued to provide free out patient
consultations with provision of free medicines and medical consumables
to the residents of Jasola Village, near Sarita Vihar, New Delhi. The
Apollo Jasola Village clinic is held thrice a week. In addition to
this, monthly camps are organized at Jasola Village with over 2500
residents being examined and treated.
- Mobile Health Scheme Service: Indraprastha Apollo Hospitals, in
collaboration with the Government of Delhi, has treated nearly 10,000
patients under the Mobile Health Scheme service to serve the following
areas of Delhi:
- JJ Cluster area
- Madanpur Khadar
- BIW Camp, Matura Road
- Subhash Camp, Near NTPC
- New Sanjay Camp-near Okhla
- Badarpur, Jasola Village
- Programme for Underprivileged Children: A programme for 475
underprivileged children was organised in Bal Bharti Public School,
Sector 21, Noida jointly with Army Officer's Wives Welfare Association.
Apart from distribution of gifts, a magic and puppet show was organised
and refreshments were served.
INFECTION CONTROL AND ENVIRONMENT
The Hospital Infection Control Program has succeeded in further
reducing all infection indices, thus aiming to set a new benchmark in
Indian healthcare. Employee safety and infection prevention were
addressed by educational drives and measures were taken to augment
personal protective equipment to prevent exposure inoculation injuries
and provision of pre and post exposure prophylaxis. Employees were
vaccinated for various preventable infections including Meningococcal
infections and for other infections such as Hepatitis B and Chicken Pox
as part of an ongoing practice. Care was also taken to maintain
environment and hygiene within acceptable standards to contain
infective exposures.
Infection rates at the Hospital are amongst the best in the world for
urinary catheter related Urinary Tract Infection. (UTI), Central Line
Related Blood Stream Infections (CRBSI) and Ventilator Associated
Pneumonia (VAP). The success of the infection control programmes can be
gauged by the decreasing trends in CRBSI with values as low as 0.97 per
1000 Central Lines Days and for VAP 2.06 per 1000 Ventilator Days and
for CRUTI at 1.01 per 1000 Urinary Catheter Days.
The Hospital conducted a big campaign highlighting the role of Hand
Hygiene in minimising infections. Antibiotic (Antimicrobial)
consumption has also been reduced as a result of consistent monitoring.
TECHNOLOGY ABSORPTION
During the year, the Hospital continued its efforts to maintain
standards at par with the best hospitals globally by investing in
cutting-edge technology to offer the latest in medical care. Some of
these are:
1. MRI guided HIFU (High Intensity Focused Ultrasound): Uterine
fibroids are noncancerous growths of the uterus that often appear
during child bearing years. Existing treatment options for women
include medication or surgical removal. In contrast to the existing
treatment options of surgery to remove fibroids, MR-HIFU offers women a
quicker, non-invasive and precise treatment option. The procedure can
be performed on an outpatient basis, with the patient leaving the
hospital the same day and getting almost fully recovered within a few
days. It combines resonance (MR) imaging, with high-intensity focused
ultrasound (HIFU).
2. Intuitive Surgical-da Vinci Robotic Surgical System: With a view to
provide the best available surgical experience to patients, the
Hospital has introduced a state-of-the-art da Vinci Robotic Surgical
system. This system combines computer and robotic technologies to
create a new category of surgical treatment, robotic assisted
laparoscopic, thoracscopic and endoscopic surgery. By providing
surgeons with enhanced capabilities, the system makes it possible to
treat a broader range of conditions using a minimally invasive approach
for major surgery with only a few tiny incisions. In addition, the
surgeons can operate with better visualization, precision, dexterity
and control than possible using traditional surgical approaches.
3. Versa Pulse Power Suite: A 100 watt Holmium Laser was introduced
for use in treating patients with enlarged prostate gland. The
treatment offered is more effective, less invasive and reduces hospital
stay as compared to conventional treatment.
4. Gene Xpert and Hain Molecular Diagnosis System: Keeping abreast
with latest diagnostic techniques to deal with the scourge of
tuberculosis, for rapid and simultaneous detection of tuberculosis and
antimicrobial resistance to commonly used drug Rifampicin, the hospital
heeded to the call of WHO policy statement on tuberculosis and procured
the Molecular test facility for Gene-Xpert MTB/RIF and Hain Molecular
System, considerably reducing the time to detect tuberculosis and drug
resistance to within 2 days, besides being more sensitive and specific
than current molecular methods .
ENERGY CONSERVATION
As part of our Energy Conservation Plan, all conventional light
fittings are in the process of being replaced with LED-type energy
saving light fixtures which has resulted in reduction of 30 KW load on
our existing electricity consumption. In all, nearly 800 light fixtures
were replaced with LEDs in areas across the hospital.
Additionally, we have also replaced all Mercury vapour and Sodium
vapour external lights, numbering over 100 across the hospital, with
energy efficient LED lights. This measure will reduce the electrical
consumption of our external yard area substantially.
We have also installed 26 Variable Frequency Drives (VFDs) in our AHU
motors and secondary Chiller Pumps. This measure will ensure that the
hospital is able to save around 300 KW of electricity load.
Further, to create awareness amongst staff on energy conservation,
'Caution' stickers have been stuck on all electrical equipment
encouraging staff to switch off fixtures when not in use.
Going forward, we are in the midst of incorporating an improved
'Building Automation System' for our Electrical and HVAC management.
This will ensure a centralised control mechanism for the management of
electricity and HVAC services and will vastly help in reducing manpower
costs, energy consumption and overall operating expenditures.
FOREIGN EXCHANGE EARNINGS & OUTGO
(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 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. 7,358.10 lakhs
Outgo : Rs. 1,965.05 lakhs
PARTICULARS OF EMPLOYEES
The Particulars of employees as per Section 217 (2A) of the Companies
Act, 1956 read with the Companies (Particulars of Employees) Rules,
1975 are annexed and form part of this report.
DIRECTORS' RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, your
Directors state:
(i) That in the preparation of the annual accounts, the applicable
accounting standards have been followed;
(ii) That 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 on 31st March, 2012 and of the profit of
the Company for the year ended 31st March, 2012.
(iii) That proper and sufficient care has been taken for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
(iv) That the annual accounts have been prepared on a going concern
basis.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement, a Management Discussion
and Analysis Report and a Report on Corporate Governance is attached
with this Report.
A Certificate from the Statutory Auditors of the Company regarding the
Compliance by the Company of the conditions stipulated under Clause 49
of the Listing Agreement is also attached with this report.
A declaration by the Managing Director pursuant to clause 49(I)(D)(ii)
of the Listing Agreement 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, 2012, is
also attached with this report.
AUDITORS/AUDITORS' REPORT
M/s. S. C. Vasudeva & Co., Chartered Accountants, Auditors of the
Company shall hold office until the conclusion of the ensuing Annual
General Meeting and are eligible for re-appointment.
The Company has received a letter from M/s. S. C. Vasudeva & Co.,
Chartered Accountants, to the effect that their appointment, if made,
would be within the prescribed limits under Section 224(1-B) of the
Companies Act, 1956. The Board of Directors recommends the appointment
of M/s. S. C. Vasudeva & Co., Chartered Accountants as Auditors of the
Company.
DIRECTORS
Mr. Anil Kamineni has resigned as Director of the Company. Ms. Shobana
Kamineni and Mr. Deepak Vaidya have been appointed by the Board as
Additional Directors of the Company. Pursuant to Section 260 of the
Companies Act, 1956, Ms. Shobana Kamineni and Mr. Deepak Vaidya hold
the office of Directors only up to the date of the Annual General
Meeting of the Company. Notices have been received from members
pursuant to Section 257 of the Companies Act, 1956, proposing the
appointment of Ms. Shobana Kamineni and Mr. Deepak Vaidya as Directors
of the Company, liable to retire by rotation.
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Ms. Suneeta Reddy, Mr. S.
Regunathan, Prof. Ranjit Roy Chaudhury and Mr. Satnam Arora, Directors
of the Company shall retire by rotation at the ensuing Annual General
Meeting and being eligible, offer themselves for re-election.
Resolutions seeking approval of the shareholders for the appointment
/re-appointment of Directors have been incorporated in the notice of
the Annual General Meeting.
The information on the particulars of the Directors seeking appointment
/re-appointment, as required under clause 49 of the Listing Agreement,
has been furnished in the notice to the shareholders for the Annual
General Meeting.
FIXED DEPOSITS
During the year under review, the Company has not accepted any deposit
under Section 58A of the Companies Act, 1956 read with Companies
(Acceptance of Deposits) Rules, 1975.
INSURANCE
All properties and insurable assets of the Company, including Building,
Plant & Machinery and Stocks have been adequately insured, wherever
necessary.
The Company also has a professional indemnity insurance policy to cover
the risk on account of claims filed against the company in consumer
courts.
RESEARCH & DEVELOPMENT
The Company is running a multi super- specialtyHospital and is not
engaged in any major research & development activity. However, the
Hospital continues to be a major centre for international clinical
trials.
INDUSTRIAL RELATIONS
The Industrial Relations scenario continued to be cordial during the
year under review.
ACKNOWLEDGEMENT
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 employees at all
levels and the consultant doctors.
For and on behalf of the Board
P.K. Tripathi
Chairman
Place : New Delhi
Date : 1st August, 2012