Home  »  Company  »  Indraprastha Med  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Indraprastha Medical Corporation Ltd.

Mar 31, 2016

1. NOTES ON ACCOUNTS

A. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 3,84,58,448/- ( Previous Year Rs. 2,94,25,075/-).

B. Contingent Liability

i) Claims against the company not acknowledged as debt Rs. 35,74,60,000/- ( Previous Year Rs. 37,54,60,000/-) and interest thereon. This represents suits filed against the company and the consultant doctor. Based on the facts and circumstances, possibility of any of the claims resulting in a major financial loss to the company is remote. Notwithstanding above, the company is adequately insured to mitigate the possibility of any loss.

ii) Letters of credit / Bank guarantees outstanding on account of stores / spares and medical equipment amounting to Rs. 1,10,52,525/- (Previous Year Rs. 4,77,32,588/-).

C. Under the terms of the agreement between the Government of NCT of Delhi and the company, the Hospital project of the company has been put up on the land belonging to Government of NCT of Delhi. The Government of NCT of Delhi is committed to meet the expenditure to the extent of Rs. 15,47,80,000/- out of IMCL Building fund account (funds earmarked for the period) together with the interest thereon for construction of definite and designated buildings while the balance amount of the cost of the building will be borne by the Company. As at 31st March, 2016, the aforesaid fund, together with interest thereon amounting to Rs. 19,23,57,946/- have been utilized towards progress payments to contractors, advances to contractors, payments for materials, etc. The ownership of the building between Government of NCT of Delhi and the company will be decided at a future date keeping in view the lease agreement.

D. On a Public Interest Litigation (PIL) regarding free treatment in the hospital the Hon''ble Delhi High Court vide its order dated 22nd September, 2009 has held that free treatment provided by the hospital as per the terms of lease deed with Government of National Capital Territory of Delhi shall be inclusive of medicines and consumables. In response to the said order the company filed a Special Leave Petition in the Hon''ble Supreme Court for appropriate directions with a prayer to stay the judgment of the Hon''ble Delhi high court. The Hon''ble Supreme Court of India has admitted the Special Leave Petition and passed an interim order on 30.11.2009. In pursuance of the interim order, the Hospital is charging for medicines & medical consumables from patients referred by the Govt. of Delhi for free treatment in the Hospital. As the matter is sub judice, the financial impact in the matter can be quantified only upon a decision by the Hon''ble Supreme Court of India.

E. Employee benefits

(i) The summarized position of Post - employment benefits and long term benefits recognized in the Statement of Profit and Loss and the Balance Sheet as required in accordance with Accounting Standard - 15 (Revised) are as under:

H. The Basic earnings per share (EPS) disclosed in the Statement of Profit and Loss has been calculated by dividing the net profit for the year ended 31st March, 2016 attributable to equity shareholders by the weighted average number of equity shares outstanding during the said financial year. The net profit attributable to equity share holders is Rs. 28,23,44,147/- (Previous Year Rs. 32,49,11,605/-) and the weighted average number of equity share is 9,16,73,000 (Previous Year 9,16,73,000) for this purpose.

I. The Company has no suppliers who fall into the category of Micro, Small and Medium Enterprises as defined in “The Micro, Small and Medium Enterprises Development Act, 2006”. Hence there is no amount due to Micro, Small and Medium Enterprises for the year ended 31st March, 2016 (Previous Year Rs. Nil).

J. Employee benefit expenses and Other expenses includes Rs. 3,72,15,858/- & Rs. 24,56,500/- respectively, on account of provision of bonus for the financial year 2014-15 in accordance with notification dated 1st January ''16 issued under the Payment of Bonus Act, 1965 by Government of India with retrospective effect from 1st April, 2014.

K. Fixed Assets includes expenditure amounting to Rs. 6,79,57,142/- (Previous Year Rs. 6,79,57,142/-) on building incurred by the company in connection with setting up 57 bedded hospital at Noida (U.P.). The hospital has been set up on land taken on lease by SABCO Medicare (P) Limited from Noida Authority. The rights of the lease deed has been acquired through an assignment deed in favour of the company from Apollo Hospital Enterprises Limited who are the Sub-lessee. Depreciation on such building has been charged over the period of lease.

L. In accordance with the Accounting Standard, AS-28 on Impairment of Assets, the company has assessed whether any indications with regard to impairment of any assets exists as on the Balance Sheet date. Based on such assessment, it has been ascertained that there are no such indications and thereby no formal estimate of the recoverable amount has been made.

M. Pursuant to sub section (5) of section 135 of the Companies Act, 2013, the Company was required to spend Rs. 99,53,284/- (Previous Year Rs. 93,10,407/-) in respect of its “Corporate Social Responsibility Policy (CSR Policy)” on eligible activities. During the financial year, the company has spent Rs. 49,69,579/- (Previous Year Rs. 11,69,000/-) on such eligible activities.

S. The company is engaged in the healthcare business, which in context of Accounting Standard 17 issued by the Institute of Chartered Accountants of India is considered the only business segment.

T. All figures have been rounded off to the nearest rupee.


Mar 31, 2015

A. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 29,425,075 ( Previous Year Rs. 31,017,729/-).

B. Contingent Liability

i) Claims against the company not acknowledged as debt Rs. 375,460,000 (Previous Year Rs. 357,510,000/-) and interest thereon. This represents suits filed against the company and the consultant doctor. Based on the facts and circumstances, possibility of any of the claims resulting in a major financial loss to the company is remote. Notwithstanding above, the company is adequately insured to mitigate the possibility of any loss.

i) Letters of credit / Bank guarantees outstanding on account of stores / spares and medical equipment amounting to Rs. 47,732,588/- (Previous Year Rs. 7,179,275/-).

C. Under the terms of the agreement between the Government of NCT of Delhi and the company, the Hospital project of the company has been put up on the land belonging to Government of NCT of Delhi. The Government of NCT of Delhi is committed to meet the expenditure to the extent of Rs. 154,780,000/- out of IMCL Building fund account (funds earmarked for the period) together with the interest thereon for construction of definite and designated buildings while the balance amount of the cost of the building will be borne by the Company. As at 31st March, 2015, the aforesaid fund, together with interest thereon amounting to Rs. 192,357,946/- have been utilized towards progress payments to contractors, advances to contractors, payments for materials, etc. The ownership of the building between Government of NCT of Delhi and the company will be decided at a future date keeping in view the lease agreement.

D. On a Public Interest Litigation (PIL) regarding free treatment in the hospital the Hon'ble Delhi High Court vide its order dated 22nd September, 2009 has held that free treatment provided by the hospital as per the terms of lease deed with Government of National Capital Territory of Delhi shall be inclusive of medicines and consumables. In response to the said order the company filed a Special Leave Petition in the Hon'ble Supreme Court for appropriate directions with a prayer to stay the judgment of the Hon'ble Delhi high court. The Hon'ble Supreme Court of India has admitted the Special Leave Petition and passed an interim order on 30.11.2009. In pursuance of the interim order, the Hospital is charging for medicines & medical consumables from patients referred by the Govt, of Delhi for free treatment in the Hospital. As the matter is sub judice, the financial impact in the matter can be quantified only upon a decision by the Hon'ble Supreme Court of India.

E. The Basic earning per share (EPS) disclosed in the Statement of Profit and Loss has been calculated by dividing the net profit for the year ended 31st March, 2015 attributable to equity shareholders by the weighted average number of equity shares outstanding during the said financial year. The net profit attributable to equity share holders is Rs. 324,911,605- (Previous Year Rs. 354,358,366/-) and the weighted average number of equity share is 91,673,000 (Previous Year 91,673,000) for this purpose.

F. The Company has no suppliers who fall into the category of Micro, Small and Medium Enterprises as defined in "The Micro, Small and Medium Enterprises Development Act, 2006". Hence there is no amount due to Micro, Small and Medium Enterprises for the year ended 31st March, 2015 (Previous Year Rs. Nil).

G. Fixed Assets includes expenditure amounting to Rs. 67,587,227/- (Previous Year Rs. 67,587,227/-) on building incurred by the company in connection with setting up 57 bedded hospital at Noida (U.P). The hospital has been set up on land taken on lease by SABCO Medicare (P) Limited from Noida Authority. The rights of the lease deed has been acquired through an assignment deed in favour of the company from Apollo Hospital Enterprises Limited who are the Sub-lessee. The Sub-let agreement between SABCO and Apollo Hospital Enterprises Limited is due for renewal. Depreciation on such building has been charged over the period of lease.

H. Depreciation for the year has been provided on Straight Line Method on the basis of useful lives specified in Schedule-ll of the Companies Act, 2013 as against the amount of depreciation calculated on the basis of rates of depreciation in respect of various assets contained in Schedule XIV to the Companies Act, 1956.

In view of this change, carrying amounts of various tangible fixed assets as at 1st April, 2014 after retaining the residual value, an amount of Rs. 76,452,325/- has been recognised in the opening balance of retained earning net of deferred tax of Rs. 25,986,145/- where the useful life of an asset is nil. In other cases, the carrying amounts as at 1st April, 2014 have been depreciated over the revised remaining useful life of asset as per Schedule II or the remaining useful life determined by the company. The depreciation for the year is lower to the extent of Rs. 16,059,059/- on account of this change and accordingly the profit for the year is higher by Rs. 16,059,059/-.

I. Stores and Spares consumed includes Rs. NIL (Previous Year Rs. 39,819,250/-) on account of write off in respect of unutilised export benefit due to significant uncertainty as to their ultimate collection as on 31st March, 2015.

J. In accordance with the Accounting Standard, AS-28 on Impairment of Assets, the company has assessed whether any indications with regard to impairment of any assets exists as on the Balance Sheet date. Based on such assessment, it has been ascertained that there are no such indications and thereby no formal estimate of the recoverable amount has been made.

K. A Sum of Rs. NIL (Previous year Rs. 4,693,544) is included under other expenses representing Net Prior Period Items.

L. Pursuant to sub section (5) of section 135 of the Companies Act, 2013, the Company was required to spend Rs. 93,10,407/- in respect of its "Corporate Social Responsibility Policy (CSR Policy)" on eligible activities. During the financial year, the company has spent Rs. 11,69,000/- on such eligible activities.

M. The company is engaged in the healthcare business, which in context of Accounting Standard 17 issued by the Institute of Chartered Accountants of India is considered the only business segment.

N. All figures have been rounded off to the nearest rupee.


Mar 31, 2014

A. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 31,017,729 (Previous Year Rs. 29,042,064/-).

B. Contingent Liability

i) Claims against the company not acknowledged as debt Rs. 357,510,000 (Previous Year Rs. 374,943,000/-) and interest thereon. This represents suits filed against the company and the consultant doctor. Based on the facts and circumstances, possibility of any of the claims resulting in a major financial loss to the company is remote. Notwithstanding above, the company is adequately insured to mitigate the possibility of any loss.

ii) Letters of credit / Bank guarantees outstanding on account of stores / spares and medical equipment amounting to Rs. 7,179,275/- (Previous Year Rs. 25,840,509/-).

C. Under the terms of the agreement between the Government of NCT of Delhi and the company, the Hospital project of the company has been put up on the land belonging to Government of NCT of Delhi. The Government of NCT of Delhi is committed to meet the expenditure to the extent of Rs. 154,780,000/- out of IMCL Building fund account (funds earmarked for the period) together with the interest thereon for construction of definite and designated buildings while the balance amount of the cost of the building will be borne by the Company. As at 31st March, 2014, the aforesaid fund, together with interest thereon amounting to Rs. 192,357,946/- have been utilized towards progress payments to contractors, advances to contractors, payments for materials, etc. The ownership of the building between Government of NCT of Delhi and the company will be decided at a future date keeping in view the lease agreement.

D. On a Public Interest Litigation (PIL) regarding free treatment in the hospital the Hon''ble Delhi High Court vide its order dated 22nd September, 2009 has held that free treatment provided by the hospital as per the terms of lease deed with Government of National Capital Territory of Delhi shall be inclusive of medicines and consumables. In response to the said order the company filed a Special Leave Petition in the Hon''ble Supreme Court for appropriate directions with a prayer to stay the judgment of the Hon''ble Delhi high court. The Hon''ble Supreme Court of India has admitted the Special Leave Petition and passed an interim order on 30.11.2009. In pursuance of the interim order, the Hospital is charging for medicines & medical consumables from patients referred by the Govt. of Delhi for free treatment in the Hospital.

H. The Basic earning per share (EPS) disclosed in the Statement of Profit and Loss has been calculated by dividing the net profit for the year ended 31st March, 2014 attributable to equity shareholders by the weighted average number of equity shares outstanding during the said financial year. The net profit attributable to equity share holders is Rs. 354,358,366/- (Previous Year Rs. 287,648,863/-) and the weighted average number of equity share is 91,673,000 (Previous Year 91,673,000) for this purpose.

I. The Company has no suppliers who fall into the category of Micro, Small and Medium Enterprises as defined in "The Micro, Small and Medium Enterprises Development Act, 2006". Hence there is no amount due to Micro, Small and Medium Enterprises for the year ended 31st March, 2014 (Previous Year Rs. Nil).

J. Fixed Assets includes expenditure amounting to Rs. 67,587,227/- (Previous Year Rs. 67,587,227/-) on building incurred by the company in connection with setting up 57 bedded hospital at Noida (U.P.). The hospital has been set up on land taken on lease by SABCO Medicare (P) Limited from Noida Authority. The rights of the lease deed has been acquired through an assignment deed in favour of the company from Apollo Hospital Enterprises Limited who are the Sub-lessee. The Sub-let agreement between SABCO Medicare (P) limited and Apollo Hospital Enterprises Limited is due for renewal .

K. Stores and Spares consumed includes Rs. 39,819,250/- on account of write off in respect of unutilised export benefit due to significant uncertainty as to their ultimate collection as on 31st March, 2014.

L. In accordance with the Accounting Standard , AS-28 on Impairment of Assets , the company has assessed whether any indications with regard to impairment of any assets exists as on the Balance Sheet date .Based on such assessment, it has been ascertained that there are no such indications and thereby no formal estimate of the recoverable amount has been made.

M. A Sum of Rs. 4,693,544/- (Previous year Rs. NIL) is included under other expenses representing Net Prior Period Items.

S. The company is engaged in the healthcare business, materials consumed are of varied nature and include items of food, beverages, medical consumables etc. Therefore it is not feasible to give the details as required under Part II of Schedule VI to the Companies Act, 1956.

T. The company is engaged in the healthcare business, which in context of Accounting Standard 17 issued by the Institute of Chartered Accountants of India is considered the only business segment.

U. All figures have been rounded off to the nearest rupee.


Mar 31, 2013

A. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 29,042,064/- ( Previous Year Rs. 28,401,276/- ).

B. Contingent Liability

i) Claims against the company not acknowledged as debt Rs. 374,943,000/- (Previous Year Rs. 365,226,000/-) and interest thereon. This represents suits filed against the company and the consultant doctors. Based on the facts and circumstances, possibility of any of the claims resulting in a major financial loss to the company is remote. Notwithstanding above, the company is adequately insured to mitigate the possibility of any loss.

ii) Letters of credit / Bank guarantees outstanding on account of stores / spares and medical equipment amounting to Rs. 25,840,509/- (Previous Year Rs. 15,051,523/-).

iii) In respect of other matters Rs. 55,685,726/- (Previous Year 55,685,726/-).

C. Under the terms of the agreement between the Government of NCT of Delhi and the company, the Hospital project of the company has been put up on the land belonging to Government of NCT of Delhi. The Government of NCT of Delhi is committed to meet the expenditure to the extent of Rs. 154,780,000 out of IMCL Building fund account (funds earmarked for the period) together with the interest thereon for construction of definite and designated buildings while the balance amount of the cost of the building will be borne by the Company.

As at 31st March, 2013, the aforesaid fund, together with interest thereon amounting to Rs. 192,357,946 have been utilized towards progress payments to contractors, advances to contractors, payments for materials, etc. The ownership of the building between Government of NCT of Delhi and the company will be decided at a future date keeping in view the lease agreement.

D. On a Public Interest Litigation (PIL) regarding free treatment in the hospital the Hon''ble Delhi High Court vide its order dated 22nd September, 2009 has held that free treatment provided by the hospital as per the terms of lease deed with Government of National Capital Territory of Delhi shall be inclusive of medicines and consumables. In response to the said order the company filed a Special Leave Petition in the Hon''ble Supreme Court for appropriate directions with a prayer to stay the judgment of the Hon''ble Delhi high court. The Hon''ble Supreme Court of India has admitted the Special Leave Petition and passed an interim order on 30.11.2009. In pursuance of the interim order, the Hospital is charging for medicines & medical consumables from patients referred by the Govt. of Delhi for free treatment in the Hospital.

E. The company had filed application for determination of question of law under section 84 of the Delhi Value Added Act,2004 (VAT) before the Commissioner, Trade and Taxes, Delhi (CTT) regarding the applicability of VAT to the hospitals, inter alia, in respect of medicines and consumables administered by the hospitals in the course of medical treatment to its patients.

The CTT has vide its order dated 17th March, 2006 in this regard held that VAT would be applicable to the hospitals in respect of the aforesaid. The company preferred an appeal against aforesaid order of the CTT before Delhi VAT Tribunal. The matter is now pending before Delhi VAT Tribunal.

F. Travelling and conveyance includes Rs. 1,336,562/- (Previous year Rs. 406,408/-) on account of Directors'' travelling.

G. The Basic earning per share (EPS) disclosed in the Statement of Profit and Loss has been calculated by dividing the net profit for the year ended 31st March, 2013 attributable to equity shareholders by the weighted average number of equity shares outstanding during the said financial year. The net profit attributable to equity share holders is Rs. 287,648,863/- (Previous Year Rs. 269,960,505/-) and the weighted average number of equity share is 91,673,000 (Previous Year Rs. 91,673,000) for this purpose.

H. The Company has no suppliers who fall into the category of Micro, Small and Medium Enterprises as defined in "The Micro, Small and Medium Enterprises Development Act, 2006". Hence there is no amount due to Micro, Small and Medium Enterprises for the year ended 31st March, 2013 (Previous Year Rs. Nil).

I. Fixed Assets includes expenditure amounting to Rs. 67,587,227/- (Previous Year 67,587,227/-) on building incurred by the company in connection with setting up 57 bedded hospital at Noida (U.P.). The hospital has been set up on land taken on lease from Noida Authority. The rights of the lease deed has been acquired through an assignment deed in favour of the company from Apollo Hospital Enterprise Limited, who are the sub-lessee.

J. In accordance with the Accounting Standard, AS-28 on Impairment of Assets , the company has assessed whether any indications with regard to impairment of any assets exists as on the Balance Sheet date. Based on such assessment, it has been ascertained that there are no such indications and thereby no formal estimate of the recoverable amount has been made.

K. The company is engaged in the healthcare business, materials consumed are of varied nature and include items of food, beverages, medical consumables etc. Therefore it is not feasible to give the details as required under Part II of Schedule VI to the Companies Act, 1956.

L. The company is engaged in the healthcare business, which in context of Accounting Standard 17 issued by the Institute of Chartered Accountants of India is considered the only business segment.

M. All figures have been rounded off to the nearest rupee.


Mar 31, 2012

1. Share Capital

a. Terms/Rights attached to Equity Shares.

The company has only one class on Equity Shares having par value of Rs. 10/- per share. Each holder of Equity Shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in ensuing General Meeting. During the year ended 31st March, 2012 the amount of per share dividend recognised as distribution to equity shareholders was Rs. 1.60 (Previous year Rs. 1.60)

In the event of liquidation of the company Equity shareholders will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts.

b. Shares held by holding/ultimate holding company and/or their subsidiaries/associates

There is no holding/ultimate holding company of the company

c. The company has not issued any shares for consideration other than cash, bonus shares and no shares have been bought back during the period of five years immediately preceding the reporting date.

2. Long-Term Borrowings

a. Term loan from Indusind Bank Limited was taken during the financial year 2010-11 and carries interest @ 11.50% p.a. The loan is repayable in 16 quarterly instalments of Rs. 18,750,000/- each, starting from the end of moratorium period (15 Months) from the date of first disbursement. The loan is secured by exclusive charge on the medical equipment and other movable fixed assets funded from the term loan and subservient charge on the movable fixed assets both present and future.

b. Term loan from Ge Capital Services India was taken during the financial year 2010-11 and carries interest @ 9.40% p.a. The loan is repayable in 15 quarterly instalments of Rs. 18,333,333/- each from the date of the loan. The loan is secured by exclusive charge on the medical equipment and other movable fixed assets funded from the term loan and subservient charge on the movable fixed assets both present and future.

A. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 28,401,276/- (Previous Year Rs. 127,188,801/-).

B. Contingent Liability

i) Claims against the company not acknowledged as debt Rs. 365,226,000/- (Previous Year Rs. 344,536,255/-) and interest thereon. This represents suits filed against the company and the consultant doctors. Based on the facts and circumstances, possibility of any of the claims resulting in a major financial loss to the company is remote. Notwithstanding above, the company is adequately insured to mitigate the possibility of any loss.

ii) Letters of credit/Bank guarantees outstanding on account of stores/spares and medical equipment amounting to Rs. 15,051,523/- (Previous Year Rs. 14,592,492/-).

iii) In respect of other matters Rs. 55,685,726/- (Previous Year 45,636,564/-).

C. Under the terms of the agreement between the Government of NCT of Delhi and the company, the Hospital project of the company has been put up on the land belonging to Government of NCT of Delhi. The Government of NCT of Delhi is committed to meet the expenditure to the extent of Rs. 154,780,000 out of IMCL Building fund account (funds earmarked for the period) together with the interest thereon for construction of definite and designated buildings while the balance amount of the cost of the building will be borne by the Company.

As at 31st March, 2012, the aforesaid fund, together with interest thereon amounting to Rs. 192,357,946 have been utilized towards progress payments to contractors, advances to contractors, payments for materials, etc. The ownership of the building between Government of NCT of Delhi and the company will be decided at a future date keeping in view the lease agreement.

D. On a Public Interest Litigation (PIL) regarding free treatment in the hospital the Hon'ble Delhi High Court vide its order dated 22nd September, 2009 has held that free treatment provided by the hospital as per the terms of lease deed with Government of National Capital Territory of Delhi shall be inclusive of medicines and consumables. In response to the said order the company filed a Special Leave Petition in the Hon'ble Supreme Court for appropriate directions with a prayer to stay the judgment of the Hon'ble Delhi high court. The Hon'ble Supreme Court of India has admitted the Special Leave Petition and passed an interim order on 30.11.2009. In pursuance of the interim order, the Hospital is charging for medicines & medical consumables from patients referred by the Govt. of Delhi for free treatment in the Hospital.

E. The company had filed application for determination of question of law under section 84 of the Delhi Value Added Act,2004 (VAT) before the Commissioner, Trade and Taxes, Delhi (CTT) regarding the applicability of VAT to the hospitals, inter alia, in respect of medicines and consumables administered by the hospitals in the course of medical treatment to its patients.

The CTT has vide its order dated 17th March, 2006 in this regard held that VAT would be applicable to the hospitals in respect of the aforesaid. The company preferred an appeal against aforesaid order of the CTT before Delhi VAT Tribunal. The matter is now pending before Delhi VAT Tribunal.

F. Travelling and conveyance includes Rs. 406,408/- ( Previous year Rs. 1,281,105/- ) on account of Directors' travelling.

I. The Basic earning per share (EPS) disclosed in the Statement of Profit and Loss has been calculated by dividing the net profit for the year ended 31st March, 2012 attributable to equity shareholders by the weighted average number of equity shares outstanding during the said financial year. The net profit attributable to equity share holders is Rs. 269,960,505/- (Previous Year Rs. 307,249,066/-) and the weighted average number of equity share is 91,673,000 for this purpose.

G. The Company has no suppliers who fall into the category of Micro, Small and Medium Enterprises as defined in "The Micro, Small and Medium Enterprises Development Act, 2006". Hence there is no amount due to Micro, Small and Medium Enterprises for the year ended 31st March, 2012 (Previous Year Rs. Nil).

H. Fixed Assets includes expenditure amounting to Rs. 67,587,227/- (Previous Year 66,547,919/-) on building incurred by the company in connection with setting up 57 bedded hospital at Noida (U.P.). The hospital has been set up on land taken on lease from Noida Authority. The rights of the lease deed has been acquired through an assignment deed in favour of the company by Apollo Hospital Enterprise Limited, who are the sub- lessee.

I. In accordance with the Accounting Standard, AS-28 on Impairment of Assets, the company has assessed whether any indications with regard to impairment of any assets are present as on the Balance Sheet date. Based on such assessment, it has been ascertained that there are no such indications and thereby no formal estimate of the recoverable amount has been made.

J. Materials consumed are of varied nature and include items of food, beverages, medical consumables etc. Therefore it is not feasible to give the details as required under part II of schedule VI to the Companies Act, 1956.

K. The company is engaged in the healthcare business, which in context of Accounting Standard 17 issued by the Institute of Chartered Accountants of India is considered the only business segment.

L. All figures have been rounded off to the nearest rupee.


Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 127,188,801/- (Previous Year Rs. 281,155,193/-).

2. Contingent Liability

i) Claims against the company not acknowledged as debt Rs. 344,536,255/- (Previous Year Rs. 335,330,000/-) and interest thereon. This represents suits filed against the company and the consultant doctors. Based on the facts and circumstances, possibility of any of the claims resulting in a major financial loss to the company is remote. Notwithstanding above, the company is adequately insured to mitigate the possibility of any loss.

ii) Letters of credit / Bank guarantees outstanding on account of stores / spares and medical equipment amounting to Rs. 14,592,492/- ( Previous Year Rs. 23,805,634/- ).

iii) In respect of other matters Rs. 45,636,564/- (Previous Year NIL).

3. The appeal filed by the company against assessment of property tax by MCD, was decided by the Additional District Judge, Delhi on 17th April, 2004 remanding the case to MCD for reassessment on the basis of directions set out in the said order.

During the year ended 31st March, 2011, assessment was carried out by MCD and as per assessment order, an amount of Rs. 61,560,927/- is assessed as property tax liability up to 31st March 2004. The provision made in the books upto 31st March, 2004 was Rs. 83,693,078/-. This has resulted in writing back of provision to Profit and Loss Account amounting to Rs. 22,132,151/-.

Further the company has provided Rs. 3,465,389/- ( Previous year Rs. 2,968,053/- ) against property tax liability for the year ended 31st March, 2011 as per unit area method of calculating the property tax.

4. Under the terms of the agreement between the Government of NCT of Delhi and the company, the Hospital project of the company has been put up on the land belonging to Government of NCT of Delhi. The Government of NCT of Delhi is committed to meet the expenditure to the extent of Rs. 154,780,000 out of IMCL Building fund account (funds earmarked for the period) together with the interest thereon for construction of definite and designated buildings while the balance amount of the cost of the building will be borne by the Company. As at 31st March, 2011, the aforesaid fund, together with interest thereon amounting to Rs. 192,357,946 have been utilized towards progress payments to contractors, advances to contractors, payments for materials, etc. The ownership of the building between Government of NCT of Delhi and the company will be decided at a future date keeping in view the lease agreement.

5. On a Public Interest Litigation (PIL) regarding free treatment in the hospital the Hon'ble Delhi High Court vide its order dated 22nd September, 2009 has held that free treatment provided by the hospital as per the terms of lease deed with Government of National Capital Territory of Delhi shall be inclusive of medicines and consumables. In response to the said order the company filed a Special Leave Petition in the Hon'ble Supreme Court for appropriate directions with a prayer to stay the judgment of the Hon'ble Delhi high court. The Hon'ble Supreme Court of India has admitted the Special Leave Petition and passed an interim order on 30.11.2009. In pursuance of the interim order, the Hospital is charging for medicines & medical consumables from patients referred by the Govt. of Delhi for free treatment in the Hospital.

6. The company had filed application for determination of question of law under section 84 of the Delhi Value Added Act,2004 (VAT) before the Commissioner, Trade and Taxes, Delhi (CTT) regarding the applicability of VAT to the hospitals, inter alia, in respect of medicines and consumables administered by the hospitals in the course of medical treatment to its patients.

The CTT has vide its order dated 17th March, 2006 in this regard held that VAT would be applicable to the hospitals in respect of the aforesaid. The company preferred an appeal against aforesaid order of the CTT before Delhi VAT Tribunal. The matter is now pending before Delhi VAT Tribunal.

7. Travelling and conveyance includes Rs. 1,281,105/- ( Previous year Rs. 754,914/- ) on account of Directors' travelling.

8. Other Income include Rs. 39,972,666/- (Previous Year NIL) on account of export benefits under Served From India, Scheme.

9. (a) For the current year ended 31st March, 2011 timing differences have resulted in a net deferred tax expense amounting to Rs. 24,888,359/-, which is adjusted to the provision for taxation for the year.

10. The Basic earning per share (EPS) disclosed in the profit and loss accounts has been calculated by dividing the net profit for the year ended 31st March, 2011 attributable to equity shareholders by the weighted average number of equity shares outstanding during the said financial year. The net profit attributable to equity share holders is Rs. 307,249,066/- (Previous Year Rs. 310,600,687/-) and the weighted average number of equity share is 91,673,000 for this purpose.

11. There was a fire in oncology department on 3rd May, 2010 and a medical equipment suffered extensive damage. The said equipment was insured at reinstatement value. The compensation of Rs. 98,514,210/- received in this regard in the current year from the insurance company has been utilised for the purchase of new medical equipment. The written down value of the medical equipment as at 31st March, 2010 was Rs. 55,558,506/- and written down value on the date of loss was Rs. 54,779,750/-. The excess of claim received from the insurance company over the written down value of the asset as appearing in Profit and Loss Account has been shown as compensation received (Net) in other income.

12. The Company has no suppilers who fall into the category of Micro, Small and Medium Enterprises as defined in "The Micro, Small and Medium Enterprises Development Act, 2006". Hence there is no amount due to Micro, Small and Medium Enterprises for the year ended 31st March, 2011 (Previous Year Rs. Nil).

13. Fixed Assets includes expenditure amounting to Rs. 66,547,919/- (Previous Year 66,125,840/-) on building incurred by the company in connection with setting up 57 bedded hospital at Noida (U.P.). The hospital has been set up on land taken on lease from Noida Authority. The rights of the lease deed has been acquired through an assignment deed in favour of the company by Apollo Hospital Enterprise Limited, who are the sub- lessee.

14. In accordance with the Accounting Standard , AS-28 on Impairment of Assets , the company has assessed whether any indications with regard to impairment of any assets are present as on the Balance Sheet date. Based on such assessment , it has been ascertained that there are no such indications and thereby no formal estimate of the recoverable amount has been made.

15. a) Computation of Net Profit under section 198 read with section 349 of the Companies Act, 1956, for the purpose of commission payable to the Non-Executive Directors.

16. Materials consumed are of varied nature and include items of food, beverages, medical consumables etc. Therefore it is not feasible to give the details as required under part II of schedule VI to the Companies Act, 1956.

17. The company is engaged in the healthcare business, which in context of Accounting Standard 17 issued by the Institute of Chartered Accountants of India is considered the only business segment.

18. Previous year figures have been regrouped/rearranged wherever necessary.

19. Schedule 1 to 10 form an integral part of the Balance Sheet and Profit & Loss Account and have been authenticated as such.

20. All figures have been rounded off to the nearest rupee.


Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 281,155,193/- ( Previous Year Rs. 45,009,299/- ).

2. Contingent Liability

i) Claims against the company not acknowledged as debt Rs. 335,330,000/- ( Previous Year Rs. 416,721,000/-) and interest thereon. This represents suits filed against the company and the consultant doctors. Based on the facts and circumstances, possibility of any of the claims resulting in a major financial loss to the company is remote. Notwithstanding above, the company is adequately insured to mitigate the possibility of any loss.

ii) Letters of credit / Bank guarantees outstanding on account of stores / spares and medical equipment amounting to Rs. 23,805,634/- ( Previous Year Rs. 44,619,072/- ).

3. The appeal filed by the company against assessment of property tax by MCD, has been decided by the Additional District Judge, Delhi on 17th April, 2004 remanding the case to MCD for reassessment on the basis of directions set out in the said order.

The Company had provided Rs. 83,693,078/- against property tax liability up to 31st March, 2004. The Company has been advised by their legal counsel that on the basis of facts and the directions given by the Honorable Judge, the Company’s liability is not likely to exceed the amount provided for the said liability in the books of account.

Further the company has provided Rs. 2,968,053/- ( Previous Year Rs. 2,968,053/- ) against property tax liability for the year ended 31st March, 2010 as per unit area method of calculating the property tax.

4. Under the terms of the agreement between the Government of NCT of Delhi and the company, the Hospital project of the company has been put up on the land belonging to Government of NCT of Delhi. The Government of NCT of Delhi is committed to meet the expenditure to the extent of Rs. 154,780,000 out of IMCL Building fund account (funds earmarked for the period) together with the interest thereon for construction of definite and designated buildings while the balance amount of the cost of the building will be borne by the Company. As at 31st March, 2010, the aforesaid fund, together with interest thereon amounting to Rs. 192,357,946 have been utilized towards progress payments to contractors, advances to contractors, payments for materials, etc. The ownership of the building between Government of NCT of Delhi and the company will be decided at a future date keeping in view the lease agreement.

5. On a Public Interest Litigation (PIL) regarding free treatment in the hospital the Hon’ble Delhi High Court vide its order dated 22nd September, 2009 has held that free treatment provided by the hospital as per the terms of lease deed with Government of National Capital Territory of Delhi shall be inclusive of medicines and consumables. In response to the said order the company filed a Special Leave Petition in the Hon’ble Supreme Court for appropriate directions with a prayer to stay the judgment of the Hon’ble Delhi High Court. The Hon’ble Supreme Court of India has admitted the Special Leave Petition and passed an interim order on 30.11.2009. In pursuance of the interim order, the Hospital is charging for medicines & medical consumables from patients referred by the Govt. of Delhi for free treatment in the Hospital.

6. The company had filed application for determination of question of law under section 84 of the Delhi Value Added Act,2004 (VAT) before the Commissioner, Trade and Taxes, Delhi (CTT) regarding the applicability of VAT to the hospitals, inter alia, in respect of medicines and consumables administered by the hospitals in the course of medical treatment to its patients.

The CTT has vide its order dated 17th March, 2006 in this regard held that VAT would be applicable to the hospitals in respect of the aforesaid. The company preferred an appeal against aforesaid order of the CTT before Delhi VAT Tribunal. The matter is now pending before Delhi VAT Tribunal.

7. Travelling and conveyance includes Rs. 754,914/- ( Previous Year Rs. 838,047/- ) on account of Directors’ travelling.

8. Other Income include Rs. Nil (Previous Year Rs.44,597,578/-) on account of export benefits under Served From India, Scheme.

9. The Basic earning per share (EPS) disclosed in the profit and loss accounts has been calculated by dividing the net profit for the year ended 31st March, 2010 attributable to equity shareholders by the weighted average number of equity shares outstanding during the said financial year. The net profit attributable to equity share holders is Rs. 31,06,00,687/- and the weighted average number of equity share is 91,673,000 for this purpose.

10. The Company has no suppilers who fall into the category of Micro, Small and Medium Enterprises as defined in “The Micro, Small and Medium Enterprises Development Act, 2006”. Hence there is no amount due to Micro, Small and Medium Enterprises for the financial year ended 31st March, 2010 (Previous Year Rs. Nil).

11. Materials consumed are of varied nature and include items of food, beverages, medical consumables etc. Therefore it is not feasible to give the details as required under part II of schedule VI to the Companies Act, 1956.

12. The company is engaged in the healthcare business, which in context of Accounting Standard 17 issued by the Institute of Chartered Accountants of India is considered the only business segment.

13. Previous year figures have been regrouped/rearranged wherever necessary.

14. Schedule 1 to 10 form an integral part of the Balance Sheet and Profit & Loss Account and have been authenticated as such.

15. All figures have been rounded off to the nearest rupee.