noida medicare centre ltd Management discussions

INDUSTRY STRUCTURE & DEVELOPMENT

The Indian Healthcare Sector is predicted to reach US 280 billion by 2020 with enormous scope for investing in new speciality/ multispeciality hospitals with installation of advanced equipments / technology up gradation. Increase in patient population, increasing lifestyle related health issues, affordable treatment costs, thrust in medical tourism, improving health insurance penetration, increasing disposable income, government initiatives.

India is amongst the nations that are experiencing the fastest economic growth and prosperity, globally. With higher disposable incomes and increasing awareness on health-related issues, patients are likely to increase their discretionary spend on healthcare, especially on preventive healthcare. Further, Indias growing population and increasing preference for private health services over public services is augmenting the growth of the healthcare delivery market.

KEY OPPORTUNITIES

• India is the second largest populated country in the world and is expected to see its population expand from 1.2 billion people currently to 1.5 billion people in 2026. Further with increasing longevity the number of middle-aged and elderly people is expected to multiply. This will result in an increase in the absolute numbers of persons requiring medical care and is expected to grow demand for all kinds of healthcare services manifold.

• With growing literacy rate in India and availability of information on the Internet, journals and other media avenues, there is a rapid increase in awareness on healthcare issues and diagnosis, which is expected to lead to a rise in patient volumes from primary to secondary or tertiary healthcare services.

• Medical tourism is also increasingly becoming a popular option for elective treatments by patients across the globe, constituting a key factor leading to the rapid growth in Indian healthcare sector. The availability of quality healthcare services at a fraction of the cost when compared to developed nations provides patients with a value proposition which blends leisure with medical care in an attractive manner. According to the Associated Chambers of Commerce and Industry of India (ASSOCHAM) estimates Indias medical tourism market to grow at an annual rate of more than 30%.

• The Government is pushing forward a number of initiatives to promote private healthcare in the country by providing various subsidies and incentives to motivate players to invest in the healthcare market.

THREATS & CHALLENGES

The major challenge today for Indian Healthcare Sector is that on one hand it is poised for growth and better standards of medical care and on the other hand there exist poor infrastructure, demand-supply gap in healthcare, geographical accessibility and availability of cheaper funds etc. There has been arising in the number of corporate groups with heavy pockets foraying into healthcare through green field activities, JVs and acquisitions. Increasing inflation in India is depleting the purchasing power of patients and is intensifying the cost of living. There is also upward pressure on other costs such as transportation, supplies, equipment and other expenses, and an inability to manage costs or pass increased costs onto patients will lead to compressed returns. The Government has indicated its intent to correct the imbalance in the healthcare industry through initiative such as the National Rural Health Mission, National Urban Health Mission etc. However, these are few and far between and an overhaul of the regulatory framework Is required rather than a few sporadic initiatives.

OUTLOOK

The healthcare sector in India is undergoing a phase of reformed propelled by rapid economic growth. The future looks bright and promising keeping in view the initiatives taken by both private players and government sector. NMC is committed to deliver quality healthcare services through the use of cutting-edge technology to the utmost satisfaction and wellbeing of the patients. SEGMENT-WISE PERFORMANCE

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.

RISKS & CONCERNS

NMC recognizes that risk is an intrinsic part of the business which covers various aspects viz operational, financial, legal & regulatory etc. These risks can adversely impact the functioning of the company through their effect on operating performance, cash flows, financial performance and over all sustainability of the company. The risks that may affect the functioning of the company viz. inflationary pressures, increasing cost of raw material transport and storage, competitive market conditions, compliance & regulatory pressures including change of tax laws, technological obsolescence in medical equipment. The hospital has been trying hard to mitigate these risks by taking adequate measures.

QUALITY ASSURANCE

NMC has always been in the forefront of providing quality healthcare, continual improvement and technological upgradation, ensuring maximum satisfaction and health of the patients. NMC is also fully committed to provide eco-friendly environment thereby complying with all applicable environmental legislations and regulations.

INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

Your Company has a well-established and efficient internal control system and procedures. The Company has a well-defined delegation of the financial powers to its various executives through a well-designed system of delegation. To ensure internal controls, the company has appointed independent firm of chartered accountants for reviewing the effectiveness of operations, systems and procedures. In addition, the audit committee of the Board of Directors reviews advises and suggests internal auditors to continuously improve upon on their reporting process to ensure inter-alia compliance of various rules and regulations. FINANCIAL OPERATIONS VERSUS OPERATIONAL PERFORMANCE

The company has managed to record a total turnover of Rs. 1757.91 lakh as compared to a turnover of Rs. 1992.40 lakh for the previous year ended 31st March, 2018. During the year under review, total comprehensive Income for the period is Rs. (285.94) lakh as compared to Rs. (1376.45) lakh in the previous year ended 31st March, 2018.

HUMAN RESOURCE

In keeping with the tradition of pioneering Human Resource practices across geographies, the Human Resource Management (HRM) function has driven myriad changes in the way Human Resources are managed and developed, striking a balance between business needs and individual aspirations. HRM has now become a business partner and is taking key decisions not just with respect to Human Resource but businesses as a whole. It focuses on improving the way of life, work culture, employee engagement, productivity, effectiveness and efficiency. Human Resource Management is an important and focused area for the company. The success of the organization depends on the satisfaction of human needs, aspirations consistent with companys objectives. The company also lays emphasis on identifying and developing talent in the organization with a view to retain them and imparting further training to those capable of handling additional responsibilities recruits and train talented manpower enabling it to achieve its goals in effective and efficient manner. It has been priority of the company to identify, develop and retain the real talent, however, the year under consideration was full of hurdles and so many key employees severed their connection with the company CAUTIONARY NOTE

The Management Discussion and Analysis Report contain forward looking statements based on data and information available with the company. These statements are subject to certain risks and uncertainties. Actual results may differ materially from those expressed in the statements as important factors could influence the companys operations such as government policies, global/local, political and economic development, risk inherent to the companys growth and such other factors.

	For and on behalf of the Board	For and on behalf of the Board
Date: 08-08-2019	Mrs. Amita Chaudhri	Dr. (Maj) Naveen Chaudhri
Place: Noida (U.P.)	Director	(Managing Director)
	DIN-01402346	DIN-00152598