The company has availed cash credit limit of Rs. 1,500 lacs from State Bank of India to meet the working capital requirements at an interest rate of 8.35% p.a. The limit is secured by first pari-passu charge on the entire current assets of the company. Company also have an overdraft limit of Rs. 2,500 lacs from ICICI bank at an interest rate of 8.65%, which is secured by first pari passu charge on the current assets of the company. Total utilization of the cash credit /overdraft limits from all the banks at any point cannot exceed Rs. 2,500 lacs.
The details of commercial paper outstanding as on 31st March, 2018 are as follows:
1. Commercial paper of Rs. 1,000 lacs has been subscribed by ICICI Bank Limited at interest rate of 7.80% and with maturity date of 13th June, 2018.
2. Commercial paper of Rs. 1,000 lacs subscribed by Invesco Trustee Pvt Ltd. at interest rate of 7.90% and with maturity date of 15th June, 2018.
1. GENERAL INFORMATION
Indraprastha Medical Corporation Limited (‘the Company’) is a public Company incorporated in India. The address of its registered office and principal place of business is at Sarita Vihar, Mathura Road, New Delhi, India. The main business of the company is to enhance the quality of life of patients by providing comprehensive, high -quality hospital services on a cost-effective basis. The company has its primary listings on BSE Limited and National Stock Exchange of India Limited.
2. notes on accounts
A. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 88.89 lacs (Previous year Rs. 345.46 lacs).
B. Contingent Liability
i) Claims against the company not acknowledged as debt Rs. 4,670.33 lacs (Previous Year Rs. 3,924.70 lacs) 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. 228.30 lacs (Previous year Rs. 1,132.74 lacs)
C. i) 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. 1,547.80 lacs 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, 2018, the aforesaid fund, together with interest thereon amounting to Rs. 1,923.58 lacs 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.
ii) Other expenses include Rs. 12/- (previous year Rs. 12/-) towards leasehold ground rent as per the terms of agreement between Govt. of NCT of Delhi and the company.
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 defined benefit plan Gratuity
The Company provides to the eligible employees, defined benefit plans in the form of gratuity. The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days’ salary payable for each completed year of service. Vesting occurs upon completion of five continuous years of service.
The following table sets out the details of the defined benefit retirement plans and the amounts recognised in the financial statements:
F. Financial Risk Management
The principal financial assets of the Company include loans, trade and other receivables, and cash and bank balances that derive directly from its operations. The principal financial liabilities of the company include loans and borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day to day operations of the company.
The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks and advises on financial risks and the appropriate financial risk governance framework for the Company. The risks which the company is exposed to and policies and framework adopted by the company to manage these risks are explained as under:
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Company is exposed to interest rate risk as its Market risk.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates.
As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates, which are included in interest bearing loans and borrowings in these financial statements. The Company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
At the reporting date the interest rate profile of the Company’s interest bearing financial instrument is at its fair value:
Liquidity Risk
The financial liabilities of the company include loans and borrowings, trade and other payables. The company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The below is the detail of contractual maturities of the financial liabilities of the company at the end of each reporting period:
Credit Risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The exposure to the credit risk at the reporting date is primarily from trade receivables which are typically unsecured. Majority of the company’s transactions are earned in cash or cash equivalents. The trade receivables comprise mainly of receivables from Insurance Companies, Corporate customers and Government Undertakings. The Insurance Companies are required to maintain minimum reserve levels and the Corporate Customers are enterprises with high credit ratings. Accordingly, the company’s exposure to credit risk in relation to trade receivables is low.
The company assesses the creditworthiness of the customers internally to whom services are rendered on credit terms in the normal course of business. The credit limit of each customer is defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.
The company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.
* FVTPL - Fair value through profit and loss, FVTOCI - Fair value through other comprehensive income.
G. Travelling and conveyance expenses include Rs. 32.66 lacs ( Previous year Rs. 24.42 lacs ) on account of Directors’ travelling.
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, 2018 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. 2,110.33 lacs (Previous Year Rs. 2,624.53 lacs) and the weighted average number of equity share is 9,16,73,000 (Previous Year 9,16,73,000) for this purpose.
I. There is no amount due to Micro, Small and Medium Enterprises for the year ended 31st March, 2018 (Previous year Rs. Nil). The information as required to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. Further no interest has been paid during the year and payable as on 31st March 2018 as well as 31st March 2017 to such parties.
J. Property, Plant & Equipment includes expenditure amounting to Rs. 774.90 lacs (Previous year Rs. 774.90 lacs) on building 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.
K. In accordance with Ind AS - 36 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.
L. Pursuant to sub section (5) of section 135 of the Companies Act, 2013, the Company was required to spend Rs. 90.61 lacs (Previous Year Rs. 98.79 lacs) in respect of its “Corporate Social Responsibility Policy (CSR Policy)” on eligible activities. During the financial year, the company has spent Rs. 91.93 lacs (Previous Year Rs. 100.06 lacs) on such eligible activities. The said amount stands debited under the head “other expenses”.
M. The company is engaged in the healthcare business, which in context of Ind AS 108 issued by the Institute of Chartered Accountants of India is considered the only business segment.
N. Previous year figures have been regrouped / rearranged wherever necessary.
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