Q. Provisions, contingent liabilities and contingent assets
A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an
outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. If the
effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage
of time is recognised as a finance cost.
Contingent liability is disclosed in the case of a present obligation arising from a past event when it is not probable that an
outflow of resources embodying economic benefits will be required to settle the obligation or a possible obligation, unless
the probability of outflow in settlement is remote.
R. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
Initial Recognition and measurement
On initial recognition, all the financial assets and liabilities are recognised at their fair value plus or minus, in the case of a
financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the
acquisition or issue of the financial asset or financial liability.
Subsequent measurement
(i) Financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is
to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
(ii) Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a
business model whose objective is achieved by both collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
(iii) Financial assets at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories is subsequently measured at fair value through
profit or loss.
(iv) Financial liabilities
The financial liabilities are subsequently carried at amortised cost using the effective interest method. For trade and
other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value
due to the short-term maturity of these instruments.
Fair value measurement of financial instruments
The fair value of financial instruments is determined using the valuation techniques that are appropriate in the circumstances
and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.
Based on the three level fair value hierarchy, the methods used to determine the fair value of financial assets and liabilities
include quoted market price, discounted cash flow analysis and valuation certified by the external valuer.
In case of financial instruments where the carrying amount approximates fair value due to the short maturity of those
instruments, carrying amount is considered as fair value.
Derecognition of financial instrument
A financial asset is derecognised when the contractual rights to the cash flows from the financial asset expire or it transfers
the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability is derecognised when
the obligation specified in the contract is discharged or cancelled or expired.
Equity instruments
Equity shares issued by the Company are classified as equity. Incremental costs directly attributable to the issuance of new
ordinary shares and share options are recognised as a deduction from equity, net of any tax effects.
KH NOTES ON ACCOUNTS
A. Estimated amount of contracts remaining to be executed on capital account and not provided for is ' 3.12 Crore (Previous
year ' 7.71 Crore).
B. Contingent Liability
i) Claims against the Company not acknowledged as debt ' 88.75 Crore ( Previous Year ' 71.95 Crore) and interest
thereon, if any. 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) Bank guarantees and Letter of Credits (LC) outstanding on account of stores / spares and medical equipment
amounting to ' 22.35 Crore (Previous year ' 0.31 Crore)
iii) In respect of :
C. On a Public Interest Litigation (PIL) regarding free treatment in the hospital the Hon'ble Delhi High Court vide its order dated
September 22, 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. The Hon'ble Supreme
Court of India has admitted the Special Leave Petition and passed an interim order on November 30, 2009. In pursuance
of the interim order, the Hospital has been providing free treatment to the patients referred by the Govt. of NCT of Delhi.
The hospital is charging for medicines and medical consumables from patients referred by the Govt. of NCT of Delhi for
free treatment in the Hospital in accordance with the directions of the Hon'ble Supreme Court of India. The matter is
currently under consideration by the Hon'ble Supreme Court. The Company has remained compliant with the applicable
requirements under the lease. As the matter remains sub judice, any potential financial implications, if any, will be assessed
upon final determination by the Hon'ble Supreme Court.
D. i) Under the terms of the agreement between the Government of NCT of Delhi and the Company, the Hospital building
has been constructed on the land leased out to the Company by the Government of NCT of Delhi. The Government
of NCT of Delhi has met the expenditure to the extent of ' 15.48 Crore out of IMCL Building fund account (funds
earmarked for the project) together with the interest thereon for construction of building while the balance amount of
the cost of the building was borne by the Company. The cost of the building and net carrying amount in the books
of account as on March 31,2025 is ' 199.80 Crore and ' 125.19 Crore respectively. The ownership of the building
between Government of NCT of Delhi and the Company will be decided at a future date keeping in view of the lease
agreement.
ii) Other expenses include ' 12/- (previous year ' 12/-) towards leasehold ground rent as per the terms of agreement
between Govt. of NCT of Delhi and the Company.
E. Employee benefits
Defined benefit plan
Gratuity (Funded)
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.
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 overdraft, cash credit facility,
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 in the form of overdraft and cash credit facility 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.
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:
in f^.rnrcA
Foreign currency risk
The fluctuation in foreign currency exchange rates may have potential impact on the Statement of Profit and Loss and
equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency
other than the functional currency.
Considering the economic environment in which the Company operates, its operations are subject to risks arising from
fluctuations in exchange rates. The risks primarily relate to fluctuations in USD against the functional currency (INR) of the
Company.
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 recognises 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.
$ Key Management Personnel are covered under the Company's gratuity and leave encashment scheme along with the
other employee benefits of the Company. The gratuity/ leave encashment liability is determined for all employees based
on an independent actuarial valuation. The specific amount of gratuity/ leave encashment for Key Management Personnel
cannot be ascertained separately and accordingly the same has not been included in respective employees.
M. 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 March 31, 2025 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 ' 160.99
Crore (Previous Year ' 123.96 Crore) and the weighted average number of equity share is 9,16,73,000 (Previous Year
9,16,73,000) for this purpose.
N. 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.
O. As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least
2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR)
activities. The areas for CSR activities are promoting education and healthcare. The Company has fully spent the required
amount towards Corporate Social Responsibility (CSR) and there are no unspent CSR amount for the year requiring a
transfer to a Fund specified in Schedule VII to the Companies Act or special account in compliance with the provision of
sub-section (6) of section 135 of the said Act.
As per our separate report of even date attached
For S.N. Dhawan & Co LLP Suneeta Reddy Shivakumar Pattabhiraman
Chartered Accountants Director Managing Director
Firm Reg. No. 000050N/N500045 (DIN 00001873) (DIN 08570283)
Place : Chennai Place : New Delhi
Date : May 16, 2025 Date : May 16, 2025
Bhaskar Sen C P Tyagi Priya Ranjan
Partner Chief Financial Officer Associate Vice President
M. No. 096985 Cum Company Secretary
Place : New Delhi Place : New Delhi Place : New Delhi
Date : May 16, 2025 Date : May 16, 2025 Date : May 16, 2025
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