!

A holistic approach to Staying Healthy physically and

chairm an’s m essage 2 m entally underscores Apollo’s approach to healthcare
and patient w [Link] the face of rising disposable
perform ance highlights 4 statutory section incom es in the country and changing dem ographics and
disease profile,Apollo has com m itted to Staying Healthy in
financial highlights board ofdirectors 36 all aspects of its operations in order to help keep people,
m ilestones corporate inform ation 37 [Link] group’s leadership in value based integrated
notice to the shareholders 38
healthcare delivery has earned Apollo a distinction
corporate review directors report to the
am ongst peers in India,and a m ark in the w orld as a
shareholders 49
as leaders 7 corporate governance report 59 preferred destination for affordable,quality m edical care.
clinical excellence
centres ofexcellence business review Founded on four pillars of excellence-C linical,
Technological,People and Value- Apollo’s m ission is
as innovators 17 m anagem ent discussion and to bring holistic healthcare of international standards
technology excellence analysis 85 w ithin reach of every individual in [Link] provides
process excellence clinical governance 109 outstanding care to a patient in all facets of healthcare
research excellence including preventive m [Link] effectively and efficiently
financial statem ents
aligns people and technology,ably supported by best
as care providers 20
practices,to facilitate superior patient experience and
people centric approach auditors’report on standalone
financial statem ents 111 outcom [Link] patient centric approach is led by effective
as strategists 21 standalone financial statem ents 117 and com pelling m edical m anagem ent,resulting in
cluster based approach auditors’report on consolidated enhanced physician perform ance and clinical outcom es.
backw ard & forw ard integration financial statem ents 162 At Apollo team s of interdisciplinary professionals dedicate
consolidated financial them selves round the clock to providing excellent care and
in the country 25 statem ents 164 service to patients and com m unities in a com passionate
clinics and health centres statem ent pursuant to and respectful environm ent.
footprint,expansion & achievem ents section 212 ofthe
com panies act,1956 226
in the w orld 29
m edical value travel

in recognition 30

in csr 31

The hand draw n illustrations used in this Annual R eport reflect a child’s vision of Apollo Hospitals
and our core business of keeping people [Link] draw ings echo the optim ism of the num erous








children Apollo has touched in one w ay or another through the Save A Child’s Heart Initiative
(SACHi) and the Society to Aid the Hearing Im paired (SAHI).These children are fighters. And they “O ur m ission is to bring healthcare of international standards w ithin the reach


of every individual.W e are com m itted to the achievem ent and m aintenance of
 


are w [Link] have sunny dispositions and are poised on the threshold of a w hole new lif ife
experience thanks to the nurturing care of Apollo Hospitals,SACHi and SAHI. Apollo standss behind nd excellence in education,research,and healthcare for the benefit of hum anity.”
that optim ism and strives to m ake their dream s real.

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performance highlights

Dear Shareholders, the Proteus Plus technology by IB A,B elgium , Financially speaking,staying healthy to deliver
provides best-in-class treatm ent for cancer. the prescribed results translates to prudent
This centre,w ill be the first of its kind in the selection of the right opportunities,strategic
Just like the absence of sadness is not joy,the region covering Asia,Africa and Australia. capital infusion,forethought in allocation,and
absence of disease is not [Link] W HO the capacity to balance grow th w ith profitability.
states this,and all of us instinctively know it. For a grow ing country like India,staying healthy W e have a long history of industry-leading
corporate review

Health is our greatest [Link] is god given,but has to becom e a m [Link] the m icro to perform ance and have again been able to
the duty to nurture it is ours alone. the m acro,every facet of our ecosystem needs deliver strong grow th and im proved profitability
to em brace the im portance of staying healthy. in 2012-13.W e recorded consolidated annual future-proofing our team ,rem ain our top
Apollo Hospitals has spent the last thirty years Individuals,neighbourhoods,and organizations revenues of ` 37.7 billion,reflecting 19.7% [Link] the pow er of inform ation
enriching and several m illion lives w ith its have to em brace [Link] to the stresses of grow th.C onsolidated N et Profit grew by 38.8% technology in reaching out to the patient w ill
healing touch. O ur com m itm ent to advanced m odern day living,India has today em erged as to ` 3,044 m illion and consolidated diluted EPS continue to be our talism an for enabling quality
patient care has helped us put in place the the diabetes capital of the w orld and a spate of for the year stood at ` 21.88 per [Link] health care to all.
w orld’s busiest solid organ transplant program . cardiac and other lifestyle diseases confronts pleased to announce a 110% dividend of ` 5.5
D uring FY13 w e com pleted 500 bone m arrow our society. per share for fiscal year 2013. And finally as a responsible corporate,w e
transplants w ith outstanding outcom es. continue to stay focused on running our
After successfully rolling out R obotic surgery At Apollo w e believe staying healthy requires C ontinuous value addition and innovation in business in an sustainable and socially
capabilities in C hennai and Hyderabad,w e a 360 degree approach;our fram ew ork each of our activities,the hallm ark of the Apollo responsible m anner.
introduced the sam e this year in our hospitals encom passes em ployees,the local com m unities, culture,underpins our corporate [Link] has
statutory section

in D elhi and K [Link] group has com pleted the under privileged,the corporate w orld, resulted in several accolades nationally and O ver the past three decades,you,our
over 130,000 heart surgeries,by far the largest underserved com m unities and even globally,testifying to our pioneering leadership shareholders,the B oard of directors,our
cardiac program m e across the globe,w ith a neighbouring [Link] to all ofthem ,our in healthcare [Link] responsibility of doctors,our em ployees,our bankers &
success rate of 99.6% .W e are also the first m essage is the sam e— follow an active lifestyle being at the helm inspires us to go the extra financial institutions and the C entral and
healthcare organization in the Asia Pacific m arked by system atic exercise,balanced m eals, m ile to surpass the highest expectations State G overnm ents have stood by us providing
region to offer the R enaissance TM R obotic and stress-free [Link],regular health patients and their relatives have of us. unw avering support through every step and
system for spine surgeries. checks are a m ust as early detection is closely initiative undertaken by [Link] each one of
aligned to staying healthy. W e live in a borderless w orld and healthcare you and look forw ard to your continued support,
The last year saw us crossing the m ilestone of is indeed truly so.W hen Apollo w as conceived belief and trust.
` 10 billion in standalone pharm acies sales. As a health services provider,w e are com m itted thirty years ago,very few believed us w hen w e
W e now have over 1500 stores and are focused to staying healthy in all aspects of our said that one day Apollo w ould reverse the trend W ith w arm personal regards to you and your
on continuing to grow this segm ent profitably. functioning and continuously endeavour to ofIndians going abroad for treatm ent,to one fam ilies.G od bless.
W e also have a scientific expansion strategy of sharpen our clinical [Link] Hospitals w here India w ould be treating the w [Link]
business review

com m issioning over 1,000 beds across seven G roup is today one of the largest provider from across the globe now look up to the Apollo
locations in the com ing [Link] expansion groups globally,having equalled or surpassed Hospitals G roup to provide solutions to their Dr. Prathap C. Reddy
plans as envisaged also includes 500 beds as notable institutions across the w orld in several health concerns,be it in cardiology,oncology, C hairm an
part of our “R each” Hospitals [Link] im portant criteria,including patient volum es, orthopaedics,neurology,gastroenterology,or Apollo Hospitals G roup.
“R each” Hospitals initiative w as recognized solid organ transplant volum es,and clinical transplants.O ur approach is early detection and
for “Inclusive B usiness Innovation” at the outcom [Link] though the Apollo G roup has tim ely treatm ent,w hich w e believe lead to better
prestigious G 20 sum m it in M [Link] continuously redefined itself over the past three outcom es for the patients.
Hospitals group w as the only Healthcare decades,the core of our prom ise,serving the
organization in the w orld to be declared w inner. patient,rem ains unchanged and is our raison W e are now em barking on a set of
d’ê[Link] defines and drives all our activities, transform ational initiatives keeping the
W e plan to establish a Proton Therapy centre be it clinical or operational,and ultim ately future in m ind.B uilding com petencies
in [Link] advanced radiation therapy under determ ines our financial health as w ell. and capabilities,infusing fresh talent,and

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performance highlights



 
 
 
 
consolidated financial perform ance
corporate review

R upees m illion,except for share data FY 2013 FY 2012 G row th

R evenue from operations 37687 31475 20%
O perating EB ITD A 6082 5131 19%
(Earnings before Interest,Tax & D epreciation)
O perating EB IT (Earnings before Interest & Tax) 4659 3892 20%
Profit B efore Tax 3991 3260 22%
Profit After Tax 3044 2194 39%
Earnings per Share (EPS)-B asic 22.08 16.83 31%
Earnings per Share (EPS)-D iluted 21.88 16.30 34%
statutory section

consolidated financial position

R upees m illion FY 2013 FY 2012

Application of Funds 41,050 32,807
Fixed Assets 25,987 20,855
G oodw ill 1,453 1,350
N on-C urrent Investm ents 1,480 4,422
N et C urrent Assets & Long term Advances * # 11,879 5,935
D eferred Tax Asset 251 245
business review

Sources of Funds 41,050 32,807 B ed G row th

Shareholders Funds 27,313 24,913

C apital R eserve on C onsolidation 155 155
M inority Interest 173 126
Loan funds and Long term provisions/liabilities 10,863 5,818
D eferred Tax Liability 2,546 1,795

* Includes cash and investm ent in liquid m utual funds of` 6,822 m illion in FY13 and ` 3,364 m illion in FY12.
# Previous year num bers have been regrouped and reclassified w herever necessary to conform w ith current year classification.

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performance highlights

C linical excellence is Apollo’s pioneering

JC I
concept and the hallm ark of its healthcare
accredited practice.A com bination of highly skilled and
hospitals experienced doctors and detailed protocols,
has effected superior patient outcom es and
8
corporate review

clinical practices.A standing proof to this

N AB H excellence is the num ber of JC I accredited
accredited hospitals under the Apollo flagship.
hospitals
The Joint C om m ission International (JC I) is
11 a U .S based accreditation body dedicated
to im proving healthcare quality and safety
around the w [Link] accreditation is an
international gold standard for [Link]
N ational Accreditation B oard for Hospitals &
Healthcare Providers (N AB H) is a constituent
board of the Q uality C ouncil of India,set
up to establish and operate accreditation
statutory section

program m es for healthcare organizations.

At Apollo,w e constantly assess our process
efficiency and m ake critical changes as
needed to im prove patient health.
business review

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Sustained clinical excellence is m ade

possible only by effective m edical
m anagem [Link] Apollo,quality is a
practice,a w ay oflife that w e have
performance highlights

im bibed in our [Link]

quality m etrics w hich can influence
m easurable changes in process,
protocols,and behaviours,help us
provide the best m edical treatm ent
[Link] 30 m illion patients from
over 120 countries that w e have treated
stand testim ony to this all im portant
pillar ofsuccess.
corporate review

patients from

120 apollo clinical excellence@25 (ACE@25)

countries
Apollo Clinical Excellence@25,the
statutory section

revolutionary clinical balanced scorecard

the apollo standardsofclinical care (TASCC) incorporates 25 clinical quality param eters
involving com plication rates,m ortality
The Apollo Standards of C linical C are (TASC C ) rates,average length of stay after a m ajor
com prises sets of process requirem ents and procedure,hospital acquired infection rates,
outcom e m easures w hich underpin the Apollo pain m anagem ent and m edication errors
Hospitals’approach to clinical [Link] C in a dashboard called R ocket ACE (R AC E).
focuses on delivering uniform high quality The num erators and denom inators,inclusions
clinical care to all patients alike,across all and exclusions are defined clearly and the
group hospitals irrespective of location and data collection m ethodology is standardized
size. across all participating hospitals in the
group— currently 31 in num [Link] data
collected is validated by a 20 m em ber C linical
business review

Apollo C linical Excellence@25 (AC E@25),

Apollo Q uality Program (AQ P),Apollo Incident Audit Team .W e analyze the trends on a
paediatric cardiac quarterly,half yearly and annual basis,and
R eporting System (AIR S),Apollo M ortality
R eview (AM R ),and Apollo C ritical Policies surgeries benchm ark our perform ance w ith som e of the
Plans and Procedures (AC PPP) together w orld’s best hospitals.
form TASC C .
AC E@25 em bodies our com m itm ent to
continuously challenge ourselves in the
!300%
face of a changing environm ent,and
stim ulates us to keep raising the bar in our
98% clinical perform ance.
success rate

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the apollo qualityprogram(AQP)

The Apollo Q uality Program focuses on successful
patient safety practices in all Apollo hospitals
performance highlights

bilateral knee
regardless of accreditation status and covers
four broad areas:Safety during clinical replacem ent for
handovers,Surgical safety,M edication safety
and the Six International Patient Safety 93
G oals of JC [Link] have show n a positive year old m an
trajectory over the last year and com pliance
rates have im proved steadily in all areas.
the centre forcardiology
130,000+ The heart institutes at Apollo is one of the
w orld’s largest groups of C ardiology and
heart surgeries C ardio-Thoracic [Link] institute is staffed
w ith som e of the w orld’s best cardiologists and
the apollo mortalityreview(AMR) cardiothoracic surgeons w hose com m itm ent
corporate review

99.6% to the prevention and treatm ent of heart

Another im portant review launched in disease has led to better patient outcom es
2012 is the Apollo M ortality R eview (AM R ). success rate and im proved quality of life,for the thousands
U sing im portant trigger criteria,all deaths w ho have w alked into the hospital for a cure.
in the hospital are identified,categorised, The expertise of the unit has been enhanced
system atically review ed and analyzed through continuous training,education and
to identify w ays of im proving outcom es successful clinical practice,leading to innovative solutions
and follow up actions and protocols are tow ards treating heart disease.W ith the
devised to m inim ize such [Link] R ! heart surgery
com pletion of over 130,000 heart surgeries,
is now standard operating procedure across on 2 day old baby including key hole and com plicated coronary
31 hospitals in the group. by-pass surgeries,surgeries for valvular
! pacem aker im plant
heart disease,and infant and neonatal heart
on 97 year old m an surgeries,the perform ance score card for the
statutory section

unit com pares w ith the best cardiology centres

apollo critical policies,plans&procedures(ACPPP) in the w orld.

Apollo has standardized various clinical and

non-clinical processes from clinical care to
nursing care,m anagerial processes,utility
system s,and infrastructural requirem ents
by im plem enting the Apollo C ritical Policies,
Plans and Procedures (AC PPP)— 25 policies
in all— across all hospitals in the [Link]
assures that patients receive optim al clinical
care under any circum stance.
business review

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FY13
the centre fororthopedics 99% the apollo neuro institutes
Equipped w ith the latest m edical and
success rate for
10,000+ W orld class neurologists,neuro surgeons,
im aging equipm ent,and incorporating the neurosurgical critical care specialists,nurses and researchers
performance highlights

latest trends and techniques,the centre hip resurfacing com prise the highly skilled neuro team at the
offers a full range of orthopedic services operations N euro Institute at Apollo [Link] at
to [Link] experienced surgeons
procedure delicate surgical m aneuvers,and w ith a track
each year
perform advanced surgical procedures record of enviable patient outcom es,the team
like joint replacem ents,hip resurfacing, treats diseases that affect the brain,the spinal
arthroscopies,advanced spine surgeries,and cord,m uscles,and nerves,like brain tum ors,
FY13
com plex traum a surgeries to help relieve head injuries,stroke,headaches,and seizures.
pain and restore an active life [Link] 4400+
is one of the earliest hospitals to use the The N europhysiological lab is equipped w ith
C hrondocyte replacem ent technique and the
m inim ally invasive state of the art m achinery capable of advanced
iPod N avigation technique. knee replacem ent diagnostics.
corporate review

surgeries O ver 10,000 neurosurgical operations are

carried out every year in our hospitals w here w e
also provide integrated rehabilitation services.
Stereotaxy and Fram eless Stereotaxy w hich help
pinpoint (accuracy w ithin 1m m ) the localization
FY13 ofstructures w ithin the brain,O perative
Electrophysiology,M icro N eurosurgery,and
1000+ M inim ally Invasive brain and spinal surgery,are
hip replacem ents all in a day’s w ork at the centres.

3100+ the apollo cancerinstitutes

statutory section

spine surgeries
The Apollo C ancer Institutes is one of the
nations leading centres for cancer cure.
The cancer institutes carried out the first
canceriscurable successful cord blood transplant in the country
for leukem [Link] institute offers services of
international standards for oncology care and
has com pleted m ore than 500 successful bone
m arrow transplants thus far (89 in 2012).The
centre is equipped w ith the latest equipm ents
and avant-garde technology for quick and
accurate screening,evaluation,diagnosis,
treatm ent,palliative care and rehabilitation— all
business review

under one roof.

Apollo’s team of experienced consultants

FY13 (m edical,surgical,and radiation oncologists,
radiologists,histopathologists,and physicians
5000 + from relevant specialties),is highly skilled
surgeries and adopts a m ulti-disciplinary approach to
providing oncology [Link] B reast C linic,the
B rain Tum our C linic,and the Thyroid C linic
89 are specialty clinics w ithin the Apollo C ancer
B M Ts [Link] dedicated Paediatric O ncology

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D ivision m anages childhood disorders like Apollo’s hem ato-oncology services include
blood and lym ph node cancers. diagnosis and m anagem ent of the entire
spectrum of acute and chronic leukem ia,
1200+ the transplantcentre
solid organ Apollo Transplant Institutes provide a fresh
Apollo offers the C yberknife R obotic R adio lym phom as,and m yelom as.
transplants lease of life for patients through liver,kidney
performance highlights

surgery,the w orld’s first and only radio

and m ulti organ [Link] Institutes
surgery system designed to treat tum ours To m ark W orld C ancer D ay in February this in a single
offer transplant services,paediatric and adult
anyw here in the body w ith sub-m illim eter year,Apollo launched a unique initiative to calendar year hepatology,gastroenterology,nephrology,
[Link] N ovalis Tx,the latest create aw areness about the advantages of
and urology services,supported by superior
technology in radiation therapy is know n to R obotic Surgery w hich is a better treatm ent
diagnostic facilities in radiology,interventional
m axim ize tum or destruction w hile m inim izing option for cancer,as it is m ore precise,
FY13 radiology,im m unology,transplant
dam age to norm al tissues,and is used in m inim ally invasive,heals faster,and has
histopathology,and m [Link] Apollo
radiation oncology. better clinical outcom es.
Transplant Institutes holds the record for best
360+ in class outcom es,and have earned a badge as
Apollo C ancer Institutes conducted over 5000
liver the busiest transplant centre in the w orld.
surgeries across 6 locations (Ahm edabad,
B angalore,C hennai,D elhi,Hyderabad and transplants
corporate review

FY13 U sing im m une adsorption colum ns to reduce

K olkata) in [Link] included the da Vinci
blood group antibodies,the first AB O -
R obotic Surgeries for treatm ent of U rology,
8000+ incom patible kidney transplant in the country
G ynaecology,Thoracic,Abdom inal and
w as done at C hennai in 2012.
Head & N eck [Link] FY13,over 42,000 patients treated
chem otherapies w ere done and over 8000 FY13
w ith radiotherapy There is a rising need for transplants across
patients w ere treated w ith radiotherapy.
the [Link] Transplant C entre com pleted
840+ 1200 transplants in 2012.W e have launched
42,000+ kidney an aw areness cam paign called ‘G ift a Life’to
chem otherapies transplants persuade organ donation from the com m unity.
20,000 pledges w ere garnered over a m onth
long drive in C hennai and 3000 pledges over
tw o days in N ew D elhi.
statutory section
business review

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apollo emergency The N ational N etw ork of

Apollo Hospitals is a pioneer ofm odern day
Em ergency Services
em ergency care in [Link] has set up the
performance highlights

‘N ational N etw ork ofEm ergency Services’ An easy to rem em ber

and strenghthened the five clinical pathw ays em ergency access num ber -
on stroke,acute coronary syndrom e,traum a, 1066
sepsis,and seizures,to provide em ergency care Am bulances that are w ell
ofuniform quality standards across the country. equipped and m anned by trained
personnel – a veritable ‘Hospital Increasing population and inadequate has enabled us to offer teleconsultations
Apollo Em ergency C are is a scientifically on W heels’ m edical infrastructure in rem ote rural even [Link] D ecem ber,w e launched this
developed protocol-driven em ergency system Air Am bulance Services geographies in India have galvanized service in Yangon,M yanm ar in colloboration
w ith several unique and innovative features. for rem ote areas and life- Apollo into am algam ating technological w ith KC Healthcare,facilitating quality
C om m unity aw areness program s and training threatening em ergencies superiority w ith clinical leadership to launch treatm ent through telem edicine for people
for ‘Life Savers’are conducted regularly. Effective com m unication system telem edicine services. in M yanm ar.
corporate review

Its 24-hour em ergency and traum a care betw een the central control
is geared to m eet all m edical and surgical room ,am bulances and the Our TeleHealth Services,TeleHealth N etw ork Apollo offers the m ost advanced platform
em ergencies,including polytraum a. em ergency facilities in the and Apollo TeleClinics,aim to transcend for m inim ally invasive surgery available
hospitals geographical barriers and touch a big populace in the w orld today— the da Vinci R obotics
National NetworkofEmergencyServices Standardised em ergency room s w hich has poor access to quality healthcare. program using cutting edge equipm ent
The N ational N etw ork ofEm ergency Services is in the hospitals that are a part of like the C yberK nife,at a fraction of the
operational across 9 cities in the [Link] the netw ork m Health is a platform that utilizes India’s cost overseas.
system com prises 22 em ergency room s and C om m on functional and m edical incredible cellular penetration to deliver
over 500 [Link] netw ork is expanding protocols across the system cutting edge rem ote health [Link] envisions W e plan to establish the first ever Proton
rapidly and is expected to progressively cover Training of doctors and other Healthcare Hubs for countryw ide delivery of Therapy C entre in the region,at C hennai
m ore tow ns and cities. personnel required for pre- healthcare solutions. to offer patients across Asia,Africa,and
hospital and in-hospital care Australia,the m ost advanced R adiation
AirAmbulance ‘D ost’- an accident insurance Such proactive investm ent in technology Therapy in cancer treatm [Link] is a
statutory section

Saving tim e is the first step in saving lives. card to increase affordability and the synergy of our clinical, pioneering effort in technology led m edical
Air Am bulance Services are generally used Life Savers’- a com m unity adm inistrative,and technical capabilities treatm ents in India.
w hen ground transportation could potentially involvem ent program m e for
endanger a patient’s [Link] services are rescuing em ergency victim s and
also indispensable w hen the patient is in a m obilising em ergency response
rem ote area and tim e is of essence.

Apollo is equipping each of its m ajor

hospitals w ith em ergency air am bulance
[Link] K olkata and C olom bo,our
hospitals have roof helipads;and our D elhi
and Hyderabad hospitals have landing
business review

facilities.W e operate both fixed w ing aircrafts

and helicopters.W hile the responsibility
for logistics is given to aviation com panies,
w e m anage all m edical aspects like trained
personnel,equipm ent and patient care
through our 1066 em ergency services.

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performance highlights

FY11 The Apollo Hospitals Educational and Translational R esearch in stem cells and
W e focus on continuous im provem ent in key
process m etrics to help drive service excellence ALO S R esearch Foundation (AHER F) undertakes m olecular diagnostics form the thrust areas
and patient [Link] initiative to reduce and prom otes scientific and m edical research of research at AHER F.C linical evaluation
the Average Length OfStay (ALO S) in m ature 4.79 program s that have a bearing on the health, protocols for stem cell therapies in the areas
hospitals has resulted in not only greater social,econom ic,and industrial needs of of ischem ic stroke,critical lim b ischem ia
patient satisfaction,but has also im proved days [Link] doing so it leverages the strength and non-union fractures,vascular necrosis
corporate review

our patient adm issions.M inim ally invasive of our clinicians and clinical researchers,a of bone,spinal cord injury and cerebral
procedures have translated into sim ilar large num ber of varied patients,state-of-the- palsy,are being [Link]
benefits for the patients and the hospital. art diagnostic and therapeutic technologies, collaborations for using point of care system s
Initiatives like the process im provem ent and an excellent m edical records system . for clinical protocols are also being explored.
exercise in surgical consum ables has helped
standardize consum ption across specialties FY13
and various types of surgeries,reducing ALO S
hospital costs for the patient and low ering
consum ables’cost for the hospital. research
4.65 80 coordinators
days
principal
statutory section

200 investigators

sites
15
business review

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performance highlights

At Apollo Hospitals,patient centric care lies The Em ergency Response Centre solution At Apollo Hospitals our strategy is centred excellence,Patient care excellence and
at the core of our healthcare practice.B est is a com plete solution w ith plug and play on the “patient first” principle.W hile w e Value excellence,all of w hich have been
practices shared across our hospital netw ork m odules including m odules for Call Takers, are seeking to constantly im prove the fundam ental to our success thus far,and
influence every patient touch point in the D ispatch Officers,Fleet M anagem ent and EVLT quality of our healthcare services,w e are continue to rem ain the bedrock of our
delivery chain,and the nearly 35,000 m em ber (Electronic Vehicle Location Tracking),w ith GIs focused on generating strong financial business.
Apollo fam ily— doctors,nurses,param edics, integration. perform ance and appropriate returns for
corporate review

and others,com m it to giving a patient the our shareholders through the execution of a Our cluster based grow th strategy understands
best experience possible through tender Apollo Prism is an on-line patient controlled strong business strategy. the requirem ents and cultural nuances of
loving care,a cornerstone of the Apollo Personal Health R ecord database and is the local population,m aking it an effective
healthcare philosophy. accessible to doctors and patients anytim e O ur approach has been founded on four key approach.
and anyw [Link] trouble-free on-line principles— C linical excellence,Technological
W e have a dedicated 4 digit access access m akes it sim ple for the patient to
num ber— 1066,w hich is a 24x7x365 helpline m anage their health requirem ents and seek
and this is the only private em ergency help if an em ergency arises.
netw ork for m edical help in India.O nce
dialled,a crew springs into action,cognizant O ur com m itm ent to patient w elfare goes
that every m inute after that,[Link] beyond patient discharge.U nique Hom e
am bulance is dispatched and in the quickest Healthcare Lim ited,the 100% subsidiary
tim e possible the patient is brought into our of Apollo Hospitals provides one of a kind
statutory section

hospital and im m ediately handled by a team hom e nursing care [Link] m anages over O ur strategy is centred on:
of com passionate and skilled em ergency 300 trained nurses w ho can provide care at Strengthening our presence in key strategic m arkets through the C luster strategy
doctors and specialists. hom e post hospitalization on a 24x7 basis for expansion
throughout the [Link] nurses not only
provide m edical help but can also educate Focusing on a portfolio of high value clinical specialties
fam ily m em bers about the best w ays to Focusing on life enhancing procedures and elective surgeries
prom ote speedy recovery.
G eographic expansion through setting up hospitals in select Tier IItow ns and cities
Apkos R ehab [Link] a joint venture in India under the Apollo R EAC H initiative
betw een Apollo Hospitals and K os,Italy,the Im proving operating efficiencies and profitability
objective of w hich is to operate state-of-the-
art rehabilitation centres allied to cardiology, Focusing on m edical value travellers from select m arkets including those in the
M iddle East,Africa and South East Asia
business review

oncology,neurology and orthopaedics across

[Link] pilot centered in Hyderabad offers Focusing on continued grow th in stand-alone pharm acies m arket
functional and psychiatric rehabilitation
Leveraging brand value and enhancing custom er reach through investm ent in
services.
prim ary clinics,sugar clinics,dialysis centres and dental care as separate focus
verticals

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Cluster Strategy Focus on Centres of Cost Efficiencies and Increase Presence

for expansion w ith Excellence Focus on Im proving in Indian H ealthcare
G reenfield Projects K ey Operating Retail Space
in attractive new er M etrics
performance highlights

M arkets

C hennai:Ensure Identified O ptim ise asset Standalone

continued cardiology, utilisations pharm acy business
dom inance by oncology, and m inim um - C alibrated
expanding into neurology, w astage of all expansion plans
W est and South.
N ew specialist
orthopedics,
critical care and
resources thorough
standardised
w ith focus on
sam e store
healthcare education
standalone transplants as the SO P’s and Lean grow th,increased Healthcare system s cannot operate in silos. program s,and on-going certifications for
hospitals to both key focus areas of M anagem ent private label Every touchpoint of the delivery chain has doctors and nurses,serve to adequately
support C O Es as our tertiary care sales and m argin to be integrated seam lessly to exponentially train and em ploy the best available talent
w ell as increase hospitals Higher patient im provem ent increase benefits to the people and also in the m [Link] proportion to its
dom inance Eg. turnover by
deliver com petitive [Link] G roup’s burgeoning population,India is w oefully
corporate review

Heart centre / Strengthen reducing average Im proving

each C entre of length of stay and operating
significant presence at every touchpoint of understaffed w ith doctors and nurses to
B irthing centre
Excellence through optim ised w ard efficiencies by the m edical value chain m akes us a leading m eet healthcare dem [Link] is projected
(C R AD LE) ,W om en
& C hild hospital the addition of processes for im plem enting healthcare provider in India and brings that a staggering 14.3 m illion healthcare
experienced and faster turnaround a centralized credibility to our brand. professionals w ill be needed in the country
B angalore: skilled doctors tim e of all database and by [Link] m eet these dem ands,Healthcare
W iden m arket diagnostic process inventory Q uality education infrastructure like Education has evolved into an im portant
reach by adding Provide m anagem ent N ursing C olleges,C ourses for Allied Health aspect of Apollo’s long term strategy.
tw o hospitals - com prehensive Im proving average system
sub-specialties and revenue per bed
professionals,Hospital M anagem ent
N orth and South.
Specialist hospitals treatm ent services day through richer Leverage brand
:O rtho,C radle case m ix value and enhance
C ontinually invest custom er reach
N ew hospitals in the latest M axim ize through investm ent
in m etros like m edical technology efficiencies in Prim ary clinics,
statutory section

M um bai and large through greater Sugar C linics,

W ell-defined integration,better Apollo U niversity Education—
cities like Patna, dialysis centres
clinical guidelines supply chain Allied M edical colleges,N ursing
Indore w ith no and dental care
and protocols w ith m anagem ent colleges,Pharm acy colleges,
existing presence as separate focus
a strong focus on Allied Health colleges,Hospital
– reaching to w ider verticals.
clinical outcom es Im prove equipm ent m anagem ent program s
urban population
utilization at our
K now ledge sharing als
hospitals
Tier IIcities – Apollo M edSkills— in partnership
and the adoption
Expansion through w ith the N ational Skill
of best practices
R EAC H hospitals,
across the netw ork D evelopm ent C orporation (N SD C )
first m over
advantage and to develop skills needed in the
leveraging Apollo’s healthcare vertical
strong brand.
business review

Apollo M edvarsity— on-line

m edical education
Year N o of B eds
Apollo M edical Finishing
FY2014 1,010 School— pioneering syllabus
FY2015 935
to close gap betw een m edical
FY2016 740
Total 2,685
school graduates and industry
requirem ents
FY2017 Proton B eam Therapy

G row th Strategy
To add 13 hospitals to current 38;

Expansion Plans and

2,685 beds to the current 6,382

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apollo pharmacy
Apollo Pharm acy is India’s largest organized consistent grow th and increased penetration
pharm acy retail chain w ith a netw ork of of generic and private label [Link] Apollo
performance highlights

over 1,500 stores w hich offer a w ide range pharm acies offer a retail experience certified
ofm edicines,surgical products,hospital by the group’s brand value.O ur plans focus
consum ables,and over-the-counter products on nourishing store grow th through product
on a 24x7 [Link] pharm acies are accredited diversification,m inim izing stock outs through
w ith International Quality Certification. inventory m anagem ent system s,central
stocking to ensure sam e day custom er order W ellness,im m unization,and disease Apollo’s R EAC H Hospitals in district
An asset light business m odel w ith a proven fulfillm ent,and enabling custom ers to order m anagem ent especially in lifestyle ailm ents headquarters,a hub and spoke m odel,
track record,the pharm acies have delivered prescription refills 24 hours a day. like diabetes and hyper-tension are com plem ent existing healthcare facilities
im portant aspects of staying [Link] in rural India and are the vanguards of a
concept of preventive healthcare focuses paradigm shift in healthcare delivery to
on eating right,exercising,and scheduling these [Link] initiative w as recognized at
corporate review

1,500+ apollo munichhealthinsurance regular health [Link] Apollo,preventive

health check packages are designed to suit
the prestigious G 20 Sum m it in M exico and
the group w as distinguished as the exclusive
pharm acies Apollo M unich Health Insurance is a joint the individual needs of a w ide cross section w inner of “Inclusive B usiness Innovation”
venture betw een Apollo and M unich Health. of people across age groups. aw ard.P lans are on the anvil to increase
This strategic partnership betw een M unich, beds in the R EAC H Hospitals by 500 in FY14.
an insurance com pany w ith insurance and Apollo’s belief in health care being a
`1000 crores reinsurance com petence in m ore than local play coupled w ith a huge gap in W ith a netw ork of 51 hospitals and 100
landm ark revenue 40 countries,and Apollo India’s largest quality healthcare facilities in sem i- clinics,Apollo has plans to increase the
integrated healthcare provider,has created urban locations in Tier II cities,m otivated total beds in the group by 1000 across
a virtual health insurance pow erhouse that the im plem entation of R EAC H (R eliable, seven locations in FY14,w hich includes
understands both healthcare and insurance. Efficient,Accessible,C om m unity Healthcare) 3 R EAC H hospitals in Trichy,N ellore and
Apollo M unich is a straightforw ard,user Hospitals,a low cost m odel w ith focus on N asik apart from a m ix of Tertiary care and
friendly,and hassle free health insurance secondary and high secondary care. com m unity hospitals.
statutory section

[Link] com pany offers products to both

corporates and individuals and has a fast
claim s paym ent turn-around.
business review

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Apollo W hite envisions a the [Link] centres offer

com plete m akeover of Indian a range of services from avant
performance highlights

dental healthcare and aim s to garde cosm etic dentistry to

neighbourhoodclinics take dentistry to a w orld class
level.A first of its kind D ental
sim ple and affordable dental
[Link] doctors,
Apollo Health and Lifestyle Lim ited delivers

dental clinics
care brand,Apollo W hite is all cutting edge technology,latest
fam ily focused one stop integrated prim ary set to create a success story equipm ents and a com fortable
health care services,tele-consultation, w ith a fleet of w orld class am bience m ake Apollo W hite
diagnostic,and pharm acy services through dental spas,studios,clinics & dental care one of the best in
branded Apollo C linics across India.A foray express centres spread across the country.
into retail health,these neighbourhood
clinics take health care to the doorstep
of the patient.W e presently have over 100
clinics in operation.
corporate review

The Apollo Hospitals netw ork A contem porary state of the art
sugarclinics cradle does 224,000 dialysis facility,the first D ay Surgery
procedures per [Link] Apollo centre in C hennai,covers a
D ialysis C linics is an Apollo com prehensive list of m edical
Hospitals’initiative to take specialties and is ideal for
daysurgery

dialysis outside the hospital elective short stay surgeries.

D iabetes is not a disease. ‘D elivering Joy’to the m other- fram ew ork for easy access and

dialysisclinics
The centre is spread on 5 floors
It is a w ay of life.D iabetes to-be,Apollo’s new initiative quicker delivery. and offers Super Specialist
m anagem ent requires a C radle,enhances the overall
consultations across m ultiple
balanced life style,one enriched birthing [Link] The group in collaboration [Link] ultra m odern
by healthy eating habits and and m otherhood are im portant w ith Alliance M edicorp (India) D ay Surgery has 3 operation
statutory section

regular exercise.W hile diabetes chapters in a w om an’s life and Lim ited through a Joint Venture theaters w ith lam inar Flow ,
w as traditionally thought to be having a baby is one of life’s w ith Apollo Health and Lifestyle 16 day beds,and a dedicated
a genetic condition,m odern day m ost exciting and im portant Ltd.,has launched the first recovery bay.O ther facilities in
life styles and accom panying occasions for a w om an.C radle standalone D ialysis C entre in the integrated centre include a
stress have rendered diabetes a seeks to deliver a personal, Public Private Partnership w ith Fam ily clinic w ith an endoscopy
leading lifestyle disease w hich unforgettable one of a kind C entral G overnm ent Health suite and an entire floor for
if not m anaged can increase the experience for the m other,her Schem e (C G HS).O f the 1.5 Apollo’s preventive health
risk of coronary heart disease, baby,and her fam [Link] in an lakh new patients w ho suffer check [Link] Em ergency
stroke,kidney disease and other atm osphere of elegant com fort from end-stage renal failure bay provides round the clock
[Link] concept of Sugar and relaxation,supported by annually,only 3,500 get kidney em ergency care and an in-house
C linics in the neighbourhood is caring obstetricians,nursing transplants and 6,000 undergo C hest pain clinic is alw ays ready
an effort by Apollo to increase staff,neonatologists and dialysis.A space of 2400 [Link]. and prepared to handle cardiac
aw areness about diabetes and [Link] C radle is a
business review

has been converted into a state em [Link] on-site

provide w orld class care w ithin high-end,prem ium boutique of the art dialysis facility w ith pharm acy w ith OTC m edicines
the reach of those w ho need it. birthing centre,w hich has been a capacity to dialyze up to 21 and surgical disposables,is
Sugar C linics provide a com plete conceived exclusively to satisfy cases of C hronic R enal Failure open 24x7.
range of D iabetes C are Services the service and quality needs of per day w ith seven functional
ranging from preventive care, a younger generation of Indians. D ialysis m achines.
specialized diagnostics,and
disease m anagem ent services
for m anagem ent of diabetes
related com plications.

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performance highlights

Apollo’s superior clinical standards and To m ake the visit as sm ooth as possible and
value-based service offerings,m akes it enable a safe healing experience,w e have
an attractive m edical travel destination provided detailed inform ation about our
for people [Link]’s m edical hospitals,our range of services,treatm ent
expertise,rated on par w ith international options,choice of doctors,travel guidelines,
standards,offers m ore affordable healthcare visa requirem ents,and paym ent m ethods,on
corporate review

w ith sim ilar patient outcom [Link] clinical our w ebsite.

C ontinued m om entum in excellence,w ell trained doctors,post
netw ork expansion in FY13: operative care,and safety and infection The international patients division of
control processes,com pares favourably w ith Apollo Hospitals can take charge of all
Launched 260-bed R EAC H leading hospitals in the W est. arrangem ents like airport pick-ups,travel,
Hospital in Ayanam bakkam transportation,accom m odation,and
during the year At Apollo w e understand that seeking coordination of appointm ents including
Launched the 140-bed O rtho m edical treatm ent outside one’s hom e post treatm ent care if [Link] w arm ,
& Spine specialty hospital in country can be an exhausting experience, hospitable attitude of our staff com bined w ith
B angalore during the year physically and em [Link] International the fact that there is no w aiting tim e in India
Entered into an agreem ent Patients D ivision goes the extra m ile to for surgeries,m akes m edical value travel
to increase stake in Im perial ensure that patients com ing to our hospital appealing to m ore than 70,000 international
Hospital,B angalore from feel right at hom e. patients each year at our hospitals.
statutory section

51% to 100% .R aised stake to

86% during the year.
Entered into long term lease
of Lifeline Hospital facility in
O M R ,South C hennai,w ith
capacity of 170 beds. Facility
w ill be refurbished and
launched under the Apollo > 55 m edical
Hospitals B rand in H2 FY14
specialties
business review

D ivested stake in B PO arm - Apollo Apollo Hospitals included in the

< 48 hours for
Health Street to Sutherland G lobal prestigious M SC IIndia Index w .e.f. response turnaround
[Link] of sale to be M ay 31,2013 com piled by M SC I,Inc.a
deployed for expansion of healthcare leading provider of investm ent decision
delivery services business support tools w orldw ide
> 70,000
Apollo Hospitals included in the CN X CR ISIL Equities continued to rate Apollo international patients
N ifty Junior Index and the CN X 100 Hospitals at CR ISIL IER Fundam ental
Index w ith effect from Sept 28,2012 G rade 5/5 throughout the year

annual report 2012–13

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performance highlights

The R EAC H Hospital Initiative recognized Indraprastha Apollo Hospitals w on the “Tim es
for “Inclusive B usiness Innovation”at the Research M edia H ealthcare Excellence
True to its founding principles,the Apollo and teachers— as w e believe that these
prestigious G 20 sum m it in M [Link] only Aw ards 2012”,in three categories - India’s group has gone about its m ission ofproviding people are the best vehicles to dissem inate
Healthcare organization in the w orld to be m ost innovative hospital;best diagnostic and quality healthcare accessible to the people this im portant inform ation rapidly in the
declared the w inner at the G 20 challenge im aging centre in N orth India;and best heart ofIndia through num erous w ell thought out com m unity; w e believe they are best placed
care centre in N orth India program s and [Link] strongly to help w om en understand facts about
Apollo Hospitals C hennai voted the N o. 1 private
espouses the concept ofPreventive Health. breast cancer. In the tw o cities,m ore than
corporate review

hospital in India in The W eek–H ansa B est B illion H earts B eating Foundation w on the
H ospital Survey, 2012. Apollo Hospitals C hennai praisew orthy H ealth Prom otion Aw ard Periodic screening ofthe body system to a thousand w om en w ere sensitized and
and Indraprastha Apollo Hospitals,D elhi voted determ ine one’s health status is an im portant provided w ith relevant inform ation aids.
Apollo H ealth City,H yderabad adjudged as
4th and 6th best respectively am ongst the Top aspect ofStaying [Link] the hum an body Around 1,000 w om en w ere also screened for
the B est M edical Tourism H ospital in India by
10 M ulti-specialty hospitals in India is constantly changing in response to internal cancer detection.
the G overnm ent of India! The aw ard has been
handed over by H is Excellency The President of and external stim uli,health screening allow s
Dr. Prathap C R eddy,Chairman,Apollo H ospitals,
w as conferred w ith the “N DTV Indian ofThe Year India on 18th M arch, 2013,in Delhi early diagnosis ofconditions and diseases Touching on other aspects of preventive
2012 – Lifetim e Achievem ent Aw ard” that m ay be previously unknow n— conditions health,nearly 500 aw areness program m es,
like heart disease,high blood pressure, by specialist doctors in O ncology,Paediatric
Apollo Hospitals declared the H ealthcare Service
diabetes,and cancer,w hich are the leading C ardiology,G ynaecology,and C ardiology,
Provider Com pany ofthe Year (revenues above `
1,000 crore) by Frost & Sullivan at the 4th Annual
causes ofdeath in the w orld today and often w ere conducted around the [Link]
India H ealthcare Excellence Aw ards 2012 show no sym ptom s until advanced stages. thousand people participated in these
Apollo believes that a com prehensive health program m es as w ell as in the free clinics
Apollo Hospitals declared w inner in four screening program that helps in early detection that w ere [Link] Hyderabad and
statutory section

categories at the Asian H ospital M anagem ent

ofa disease is m ore effective than treating the B angalore alone,nearly 20,000 patients w ere
Aw ards, 2012
disease [Link] bined w ith good diet and screened for hypertension and diabetes.
– Indraprastha Apollo Hospitals,D elhi exercise,health screenings provide people w ith
aw ards for – “Apollo Com m unity Outreach an understanding oftheir health,and prom ote
Program m e” and “Im proving Patient aw areness about m aking necessary lifestyle
Satisfaction Levels”
changes to prevent illnesses.
– Apollo G leneagles Hospitals,K olkata -
aw ards for “Increased Productivity through Advocacy and Aw areness Program m es
Reduction in Length of Stay” and Project
ESCALATE (Eleven Strategies to C om bat
Apollo has therefore arranged aw areness
Antim icrobial R esistance R ate)
talks and screening cam ps around the
Apollo Hospitals bagged the ‘Asia Responsible country on various aspects of one’s health
Entrepreneurship Aw ards’(AREA)South Asia
business review

to better educate India’s vast population on

2012 organized by Enterprise Asia,under tw o Preventive Health m easures.
categories
Chairm an, Dr Prathap C Reddy w on the Focusing on W om en’s Health,TeachPink,a
prestigious ‘Responsible B usiness Leader’ B reast C ancer aw areness program m e of the
aw ard given by Enterprise Asia B reast C are Foundation,w as put together
Apollo H ospitals,Chennai has been conferred by specialist doctors of Apollo C B C C ,and
the aw ard of “B EST M U LTI-SPECIALTY H OSPITAL launched in 2012 in cities like Hyderabad
- M ETRO” at the very prestigious ICICI Lom bard and B [Link] a first step tow ards breast
& CN B C TV18 India H ealthcare Aw ards 2012 cancer prevention,the program m e sought
to educate the educators— N G O s,m edia

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To better drive hom e im portant m essages The C ardiac O utreach Program ,initiative about Telem edicine and Health C am ps
about Staying Healthy,Apollo initiated creative cardiac diseases and preventive m easures,
w ays of spreading aw areness am ongst target w as rolled out in 2012.127 program s w ere Harnessing healthcare and technology in a
audiences. Fashion Show s choreographed conducted in association w ith C orporates, first-of-its-kind health cam p,the telem edicine
on im portant them es like ‘N o Sm oking or Lions C lubs & R otary C lubs w here 26,325 health cam p envisaged by Apollo enabled
performance highlights

C hew ing of Tobacco’,‘M oderation in Alcohol people participated.A total of 108 surgeries renow ned doctors to consult rem otely w ith
C onsum ption’,‘Enhancing the Vegetable w ere perform ed. thousands of patients in Ajm er,R ajasthan;
and Fruit C om ponent in the D iet’,‘Avoiding Surat; B odinayakanur,and Srirangam ,Tam il
Fried and N on-vegetarian Foods’and ‘M aking Apollo C ancer Institutes,an integral part N adu,using state of the art Inform ation and
Adequate Exercise a Lifetim e Affair’,effectively of the Apollo Hospitals G roup,joined hands C om m unications Technology (ICT) [Link]
drove hom e the im portance of adopting a w ith YO U W ECAN ,a ‘fight cancer’initiative Telem edicine division of Apollo Hospitals
balanced [Link] highlighted unhealthy of YuvrajSingh Foundation.M ass C ancer facilitated virtual consultations using a w ell-
practices one should avoid for cancer Screening program s across various locations equipped hospital on w heels (HoW ).Each of
prevention. Pledge cards w ere collected on in Eastern India w ere set [Link] areness about the five cubicles in the HoW w ere connected to
‘W orld N o Tobacco day’,and ‘W orld O rgan the benefits of cancer screening w as created Apollo Hospitals in C hennai,Hyderabad,D elhi,
D onation D ay’.Free clinics on Paediatric through talks and distribution of pam phlets. B hubanesw ar and Ahm edabad sim ultaneously.
corporate review

Pulm onology w ere held on ‘C hildren’s D ay’. The Apollo - YO U W ECAN cancer screening
O n ‘W orld Stroke D ay’,a free Stroke Screening initiative hopes to touch 100,000 lives in a Som e of the cubicles fitted w ith telem edicine,
C am p w as held in Hyderabad w here 1000 w alk- span of one year and aim s to spearhead a enabled peripheral m edical devices for
ins w ere screened for brain stroke risk. nationw ide change in the battle against cancer. transm itting EC G s,heart sounds,blood pressure
and pulse rate oxygen saturation,and allow ed
In a m ove to touch the country’s billion plus W ith m ounting traffic on city roads,a R oad doctors to treat patients on a real-tim e basis.
people,The B illion Hearts B eating (B HB ) Safety Aw areness Program m e w as organised In Ajm er and the surrounding areas alone,over
Foundation,envisaged by the Apollo group as for 437 Auto,Van & School bus drivers in 70,000 people w ere offered m edical consultancy
a not for profit organization,conducts ongoing C hennai,Tam il N [Link] w ere taught and treatm ent in just tw o days.5,000 reading
aw areness cam paigns about heart disease, First Aid & B asic Life Support techniques to glasses and spectacles,800 hearing aids,300
contributing risks,and prevention around the prepare them adequately to respond w ithin tricycles and w heel-chairs,and 200 crutches
country.B HB m arked 29th Septem ber 2012 the golden hour in case of an em ergency. w ere also distributed to those in need.N early
as W orld Heart D [Link] to a partnership In a unique gesture,a Personal Accident 30,000 varied m edical tests w ere conducted and
statutory section

betw een Apollo Hospitals,B HB Foundation and Policy for ` 100,000 each w as distributed to 20,000 m edical kits com prising of antiseptic
the N ational C adet C orps (N C C ),over 3,000 all [Link] Aid and C PR training w as cream ,oral rehydration solutions,de-w orm ing
cadets took pledges to espouse the cause also given to 1,825 TN Traffic Police (through tablets,vitam ins,and over-the-counter
of a heart healthy nation,in 5 Apollo cities— 60 Program m es); 800 TN Arm ed Police (6 m edicines w ere distributed at the cam p.
N ew D elhi,C hennai,Hyderabad,K olkata and Program m es); 1,000 Police boys & girls club
B angalore. m em bers (20 Program m es); 640 Em ployees In South India,Isha Foundation in collaboration
from different corporate (16 Program m es); w ith Apollo Hospitals inaugurated its first
1000 Students (5 Program m es); and 300 telem edicine centre in Isha R ural Health
diverse participants from various local C linic at Alandurai Village in C oim batore to
Associations. facilitate urgent m edical solutions through
im proved telem edicine reach.A 3 day m ulti
Apollo G leneagles Hospitals in K olkata specialty screening cam p w as jointly organized
launched a m obile m edical unit to conduct at Velliangiri,C oim batore,w here m ore than
business review

free cam ps in rural areas through w hich it has 10,000 people benefited from a w ide range
touched nearly 8 lakh people below the poverty of diagnostics in C ardiology,N eurology,
line.21 health cam ps w ere organized for Senior G ynaecology,O rthopedics,and other specialties.
Citizens across various [Link] a far M ore than 50 doctors and 70 param edics
reaching gesture,the Housekeeping departm ent participated in the program m e.
at G leneagles has taken the initiative to clean
public places like Tem ples,Churches,O ld Age Sim ilar m ulti specialty m ega cam ps w ere
Hom es and Cultural G rounds. also held in K alahasti,Stella M aris C ollege in
C hennai,the Tam il N adu Secretariat and the
Tam il N adu Arm ed Police quarters,w here a total
of 12,700 people participated.

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Education Interventions SAHI (Society to Aid the Hearing Im paired) is a SAHIidentifies children w ith hearing problem s,
pledge to nurture the gift of hearing am ongst and takes appropriate action by providing
Aragonda Apollo M edical and Educational SAC Hi [Save a C hild’s Heart initiative] is a the less fortunate and provides a w orld hearing aids free of cost or arranging m icro
R esearch Foundation,a philanthropic com m unity service initiative w hich aim s to class platform for the treatm ent of hearing ear surgeries and cochlear im plants to
organization established by D [Link] C provide quality paediatric cardiac care and im paired underprivileged children. Through alleviate the hearing [Link] the
performance highlights

R eddy,C hairm an Apollo Hospitals G roup financial support to underprivileged children periodic health cam ps and aw areness w orld record for having conducted the largest
and Isha Foundation,signed a M em orandum suffering from heart disease. U nder the aegis program s for the public,school teachers num ber of C ochlear Im plant surgeries in a
of U nderstanding to spearhead initiatives of SAC Hi,several distinguished cardiologists and students in the econom ically w eaker areas, single day.
in education and [Link] a result,a and cardiothoracic surgeons from Apollo
prim ary school w as started at Aragonda and Hospitals w ork tirelessly to transform the C U R E Foundation,a not for profit initiative of
C hittoor w ith the long term view of scaling lives of the affected [Link] undertake the Apollo group,aspires to spread aw areness
the facility up to the junior college level for even com plex surgeries w hen [Link] about cancer— prevention,early detection,
about 1,200 students.C urrently there are 120 Hospitals and a few philanthropic organizations cure and rehabilitation,am ongst high risk
children in various classes from kindergarten bear the treatm ent related expenses. groups,like tobacco chew ers,illiterate people,
to the 2nd standard. and those w ith fam ily history of the disease.
SAC Hi conducts periodic aw areness program s It educates them about lifestyle,diet and the
corporate review

for the general public,school children and harm ful effects of habits like sm [Link] then
[Link] organizes health checks for goes a step further to provide practitioners
children from low socio econom ic backgrounds and health professionals guidance about early
and helps raise funds if necessary for their detection.500 people have benefitted from free
treatm ent.4,975 children have benefited from detection and treatm ent.
SAC Hi’s efforts since N ovem ber 2006 w hen
the program w as inaugurated.422 surgeries B elieving that research is integral to long term
including several com plex ones have been m anagem ent of cancer,the C U R E Foundation
perform ed in 2012-13 giving those treated a undertakes research in clinical fields,and
fresh lease on life. prom otes know ledge sharing about trends and
techniques through conferences,sem inars and
periodicals for the m edical com m unity.
statutory section

Apollo’s prow ess in em ergency care has

initiated the set up of Free Em ergency C are
C entres in public places like the K oyam bedu
B us Term inus,(16,500 cases have been
recorded here annually),C hennai Airport,
Sabarim ala,w here a full IC U is functional and
Tirupathi,w here a free Em ergency C ardiac
C entre is operational for the pilgrim [Link] these
areas are crow ded and inform ed em ergency
health services are often needed.
business review

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corporate information
performance highlights

SENIOR MANAGEMENT TEAM BANKERS

Andhra B ank
Shri. K. Padm anabhan Axis B ank
Group President Canara B ank
Citi B ank
Shri. S. Prem kum ar H DFC B ank
Group Chief Executive Officer H SB C
corporate review

ICICI B ank
Shri. S.K. Venkataram an IDB I B ank
Chief Strategy Officer
Indian B ank
Dr. Prathap C Reddy Sm t. Preetha Reddy Sm t. Suneeta Reddy Sm t. Sangita Reddy Indian Overseas B ank
Founder and Executive M anaging D irector Joint M anaging D irector Executive D irector - Shri. Krishnan Akhilesw aran
Chairm an O perations Oriental B ank of Commerce
Chief Financial Officer
State B ank of Travancore
Standard Chartered B ank
Shri. S.M. Krishnan
Yes B ank
Company Secretary
REGISTERED OFFICE
AUDITORS
# 19,B ishop Gardens,Raja Annamalaipuram,
M /s. S. Visw anathan Chennai – 600 028
Chartered Accountants
Chennai - 600 004.
statutory section

CORPORATE OFFICE
Sm t. Shobana K am ineni Shri. T.K . B alaji Shri. Deepak Vaidya Shri. H abibullah B adsha
Prestige Palladium,12th Floor,
Executive D irector - D irector D irector D irector
Special Initiatives N o. 129-140 Greams Road,Chennai – 600 006

ADMINISTRATIVE OFFICE
Ali Tow ers,# 55,Greams Road,Chennai – 600 006.
E-mail:apolloshares@[Link]
krishnan_sm@[Link]
W ebsite:w w w .[Link]

Shri. K hairil Anuar Shri. Rafeeque Aham ed Shri. RajK um ar M enon Shri. Shashank Singh Audit Committee Investors Grievance Remuneration & Investment Committee Share Transfer Committee
Abdullah D irector D irector D irector Committee Nomination Committee
business review

D irector
Shri. Deepak Vaidya Shri. Rajkumar Shri. N .Vaghul Smt. Preetha Reddy Smt. Preetha Reddy
Chairman M enon Chairman M ember M ember M ember
[Link] Smt. Preetha Reddy Shri. Deepak Vaidya [Link] Reddy Shri. Rajkumar M enon
M ember M ember M ember M ember M ember
[Link] M enon Smt. Suneeta Reddy [Link] Shri. N . Vaghul Shri. Rafeeque Ahamed
M ember M ember M ember M ember M ember
Shri. Shashank Singh Shri. Deepak Vaidya
M ember M ember
Shri. N Vaghul Shri. G. Venkatram an Shri. Rafeeque Ahamed Shri. T.K. Balaji
D irector D irector M ember M ember

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“RESOLVED FURTHER THAT Smt. Sindoori Reddy w ill also be eligible for all other perquisites and benefits including
medical benefits,group medical insurance,gratuity,leave encashment and other benefits as per the policy of the
notice to the Company,applicable to other employees of the Company under similar cadre/grade.”
performance highlights

“RESOLVED FURTHER THAT subject to the approval by the B oard of Directors,Smt. Sindoori Reddy shall also be
shareholders entitled to merit based annual increment,promotion,incentive/performance linked bonus from time to time as per
the policy of the Company;provided that such enhanced remuneration in excess of the ceiling limit prescribed shall
be paid w ith the prior approval of the Central Government.”

Item No. 9
N otice is hereby given that the Thirty Second AnnualGeneralMeeting of the Company w ill be held on W ednesday,
the 7th day of August 2013 at 11.00 a.m. at The M usic Academy,N ew N o. 168 (Old N o.306),T.T.K. Road,Royapettah, To consider and, if thought fit, to pass w ith or w ithout modification(s), the follow ing resolution as a SPECIAL
Chennai - 600 014 to transact the follow ing business: RESOLUTION:

“RESOLVED THAT pursuant to the provisions of Section 31 of the Companies Act,1956,the Articles of Association of
ORDINARY BUSINESS
corporate review

the Company be and are hereby altered as given below :”

1. To receive,consider and adopt the Audited Profit and Loss Account for the year ended 31st M arch 2013 and the
B alance Sheet as at that date,the Directors’and Auditors’Report thereon. 1. The existing Article 2 be deleted and be substituted by the follow ing as Article 2 in the Articles of
Association.
2. To declare a dividend on equity shares for the financial year ended 31st M arch 2013.

3. To appoint a Director in place of Shri. H abibullah B adsha, w ho retires by rotation and being eligible, offers INTERPRETATION CLAUSE
himself for re-appointment. Interpretation 2 The marginal notes hereto shall not affect the construction hereof. In these
presents,the follow ing w ords and expressions shall have the follow ing meanings
4. To appoint a Director in place of Shri. Khairil Anuar Abdullah,w ho retires by rotation and being eligible,offers
unless excluded by the subject or context.
himself for re-appointment.
“Affiliate” a) “Affiliate” shall mean w ith respect to any person,any company,corporation,
5. To appoint a Director in place of Smt. Suneeta Reddy,w ho retires by rotation and being eligible,offers herself association or other entity,w hich,directly or indirectly,Controls,is Controlled by or
statutory section

for re-appointment. is under common Control w ith,such person.

“B usiness Day” b) “B usiness Day” shall mean a day on w hich scheduled commercial banks are open
6. To appoint a Director in place of Smt. Shobana Kamineni, w ho retires by rotation and being eligible, offers for business in Chennai
herself for re-appointment. “B usiness” c) “B usiness” shall mean the business of ow ning and operating hospitals,
pharmacies (in the format as currently conducted),diagnostic clinics,third party
7. To appoint Auditors for the current year and fix their remuneration,M /[Link] anathan,Chartered Accountants,
hospital administration,healthcare insurance,research & education,tele-medicine
Chennai retire and are eligible for re-appointment.
and healthcare IT enabled services,in India & Abroad.
“Company d) “Company Associates” shall mean any existing or future joint ventures that may be
SPECIAL BUSINESS
Associates” entered into by the Company and the investments made by the Company including
Item No. 8 the Subsidiaries and Affiliates of the Company.
To consider and, if thought fit, to pass w ith or w ithout modification(s), the follow ing resolution as a SPECIAL “Control” e) “Control” (including w ith correlative meaning,the terms “Controlled by” and
“under common Control” w ith) shall mean the pow er and ability to direct the
business review

RESOLUTION:
management and policies of the controlled enterprise through ow nership of voting
“RESOLVED THAT pursuant to the approval of the Remuneration & N omination Committee and the B oard of shares of the controlled enterprise or by contract or otherw ise.
Directors of the Company,provisions of Section 314 and other applicable provisions,if any,of the Companies Act, "Directors” f) "Directors" means the Directors for the time being of the Company.
1956 (including any statutory modification or re-enactment thereof) read w ith the Director’s Relatives (Office or “Enterprise Value” g) “Enterprise Value” shall mean the fully diluted post money equity value of a
Place of Profit) Rules, 2011, consent of the Company be and is hereby accorded to the re-appointment of Smt. Company plus any outstanding debt of such Company minus cash balances as on
Sindoori Reddy,relative of Executive Directors,to hold and continue to hold an Office or Place of Profit designated the date of acquisition of such Company.
as Vice President – Operations for a period of five years w ith effect from 21st October 2013 (or any other designation “Financial Investor” h) “Financial Investor” shall mean:
and roles w hich the ‘B oard’- the term w hich shall include any committee thereof, may decide from time to time) on
such remuneration as may be decided by the B oard not exceeding the ceiling prescribed by the Central Government
from time to time.

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(i) a banking company w ithin the meaning of the B anking Regulation Act,1949; “Stock Exchange” y) “Stock Exchange” shall mean all those Securities and Exchange B oard of India
foreign banks regulated by a banking supervisory authority in the country of their recognized stock exchanges on w hich the Shares of the Company are listed as also
incorporation; stock exchanges on w hich the Share Equivalents of the Company are listed;
(ii) financial institutions including non-banking financial companies,incorporated in "The Act" z) "The Act" or "The Companies Act" shall mean "The Companies Act,1956".
performance highlights

India,w hich are in the business of lending as their primary business; "The B oard" or "The aa) "The B oard" or "The B oard of Directors" means a meeting of the Directors duly
(iii) foreign institutional investors/their sub-accounts registered w ith the Securities and B oard of Directors" called and constituted or as the case may be the Directors assembled at a B oard,
Exchange B oard of India; or the requisite number of directors entitled to pass a circular resolution in
(iv) pension funds or corporate funds or any other funds (including equity,mutual fund, accordance w ith these Articles.
venture capital,bond,balanced,private equity,buy-out or any other investment "The Company" or bb) "The Company" or "this Company" means Apollo H ospitals Enterprise Limited.
style) set up to explicitly make financial investments or any entity w hose primary "This Company"
purpose is to invest capital;or "The Register" cc) "The Register" means the Register of members to be kept pursuant to section 150
(v) any subsidiary or any entity controlled,directly or indirectly,by such entities of the Companies Act 1956.
referred to in (i),(ii),(iii) and (iv) above. "These presents" or dd) "These presents" or "Regulations" shall mean these Articles of Association as now
"Gender" i) W ords importing the masculine gender shall include the feminine gender. "Regulations" framed or altered from time-to-time and shall include the M emorandum w here the
corporate review

“M arket Cap” j) “M arket Cap” shall mean the outstanding number of Shares multiplied by the then context so requires.
prevailing market price of the Share on a Stock Exchange; “Transfer” ee) “Transfer” (including w ith correlative meaning,the term “Transferred B y”) shall
"M embers" k) "M embers" means members of the Company holding a share or shares of any mean to transfer,sell,pledge,assign,hypothecate,create a security interest in or
class. Lien on,place in trust (voting or otherw ise),exchange,gift or transfer by operation
"M onth" l) "M onth" shall mean a calendar month of law or in any other w ay subject to any encumbrance or disposal thereof.
"N umber" m) Except w here the context otherw ise requires,w ords importing the singular,shall "W riting" ff) "W riting" includes printing,lithography,type-w riting and any other usual substitute
include the plural and the w ords importing the plural shall include the singular. for w riting.
"Office" n) "The Office" means the Registered Office for the time being of the company. gg) The w ords and expressions used and not defined in these Articles but defined in
"Paid up" o) "Paid up" shall include "credited as fully paid-up". the Companies Act,1956 shall have the same meaning respectively assigned to
“Person” p) “Person” shall mean any natural person,limited or unlimited liability company,
them in the said Act.
corporation,partnership (w hether limited or unlimited),proprietorship,H indu
undivided family,trust,union,association,government or any agency or political 2. The existing Article 6(a) be read as Article 6 and Article 6(b) be deleted
statutory section

subdivision thereof or any other entity that may be treated as a person under
3. To delete the Articles 9(4),9(5),9(6),10(3),47A,47B,47C,47D,47E,47F
applicable law
"Proxy" q) "Proxy" includes Attorney duly constituted under a Pow er of Attorney. 4. The existing Article 79 be deleted and be substituted by the follow ing as Article 79:
“Relative” r) “Relative” shall mean (a) a relative as defined under the provisions of the Act (b)
any other person defined as such as per the Accounting Standard 18 issued by the 79 Five members personally present shall be a quorum for a General M eeting and no business shall be
Institute of Chartered Accountants of India,or (c) ascendants or descendants by transacted at any General M eeting unless the requisite quorum is present w hen the meeting proceeds to
marriage or kindred. business.
"Section" s) "Section" or "Sec" means Section of the Act.
5. The existing Article 80 be deleted and be substituted by the follow ing as Article 80:
“Shares” t) “Shares” shall mean the equity shares of the Company,w ith one vote per equity
share and a par value of ` 5 per equity share. 80 If w ithin half an hour from the time appointed for the meeting a quorum is not present the meeting if called
“Share Capital” u) “Share Capital” shall mean the total issued and paid up shares of the Company, upon the requisition of members shall be dissolved in any other case it shall stand adjourned to the same
business review

determined on a fully diluted basis. day in the next w eek and at the same time and place or to such other day at such other time and place as
“Share Equivalent” v) “Share Equivalent” shall mean any instrument convertible into shares including
the B oard may determine and if at the adjourned meeting a quorum is not present w ithin half an hour from
w ithout limitation global depositary receipts,american depositary receipts,
the time appointed for the meeting,the members present shall be quorum.
convertible debentures,w arrants and convertible preference shares of the
Company. 6. To delete the Article 114(b)
“Shareholding” w) “Shareholding” shall mean,in respect of any Person,the sum of the number of
Shares held legally or beneficially by such Person on a fully diluted basis,such 7. The existing Article 118(a) and 118(b) be deleted and be substituted by the follow ing as Article 118
sum expressed as a percentage of the Share Capital;
118 A director may at any time summon a meeting of the B oard of Directors. All meetings of the B oard or any
"Special Resolution" x) "Special Resolution" means special resolution as defined by Section 189.
Committee of the B oard shall be called by giving atleast seven (7) days prior notice to the other directors,
w hich notice shall be in w riting and accompanied by the Agenda setting out in detail the business proposed

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to be transacted at such meeting and all relevant documents thereto. All notices shall be sent to each of 4. Dividend upon its declaration at the meeting w ill be paid on or before 17th August 2013 to those members
the directors at their usual address w hether in India or abroad by an effective means of communication w hose names appear:
and through email. N o meeting of the B oard shall be convened at a shorter notice period w ithout the prior
(i) As members on the Register of M embers of the Company as on 7th August 2013 after giving effect to all
w ritten consent of all the Directors. The meeting of the Directors shall be held at least once in every three
performance highlights

valid share transfers in physical form w hich w ould be received by the Company up to the closing hours of
months and at least four such meetings shall be held in every year.
business on 26th July 2013.
8. The existing Article 121(a) and 121(b) be deleted and be substituted by the follow ing as Article 121
(ii) As beneficial ow ners as per the list to be furnished by N SDL/CDSL as at the closing hours of business on
121 The quorum for a meeting of the B oard shall be one-third of its total strength (any fraction contained in that 26th July 2013.
one-third being rounded off as one) or tw o Directors w hichever is higher;provided that w here at any time
5. M embers desiring any information as regards the accounts are requested to w rite to the Company at least seven
the number of interested Directors is equal to or exceeds tw o-thirds of the total strength the number of the
days before the meeting so as to enable the management to keep the information available.
remaining Directors that is to say the number of Directors w ho are not interested present at the meeting
being not less than tw o shall be the quorum during such time. The total strength of the B oard shall mean 6. The Company has transferred all unclaimed dividend declared up to the financial year ended 31st M arch 1994
the number of Directors actually holding office as Directors on the date of the resolution or meeting that to the General Revenue Account of the Central Government as required by the Companies U npaid Dividend
corporate review

is to say,the total strength of the B oard after deducting therefrom the number of Directors,if any w hose (Transfer to the General Revenue Account of the Central Government) Rules, 1978. Those Shareholders w ho
places are vacant at the time. have so far not claimed or collected their dividend up to the aforesaid financial year may claim their dividend
from the Registrar of Companies,Tamil N adu,Shastri B havan,H addow s Road,Chennai - 600 006.
9 To delete Article 123 (5)
7. Pursuant to the provisions of Section 205A(5) of the Companies Act, 1956, as amended, the Company has
10. The existing Article 128 be deleted and be substituted by the follow ing as Article 128.
transferred all unclaimed dividend for the financial years ended 31st M arch 1995 to 31st M arch 2005 to the
128 A w ritten resolution circulated to all the Directors or members of committees of the B oard of Directors Investor Education and Protection Fund (IEP Fund) established by Central Government pursuant to Section 205 C
w hether in India or overseas and signed by a majority of them as approved,shall (subject to compliance of the Companies Act, 1956. It may also be noted that once the unclaimed dividend is transferred to the IEP
w ith the relevant requirements of the Act or the relevant applicable law ) be as valid and effective as a Fund,no claim shall lie in respect thereof.
resolution duly passed at a meeting of the B oard of Directors or committee of the B oard of Directors,as
8. Pursuant to the provisions of Section 205A(5) of the Companies Act,1956,as amended,dividend for the financial
the case may be,called and held in accordance w ith these Articles of Association (provided that it has been
year ended 31st M arch 2006 and thereafter,w hich remains unclaimed for a period of 7 years from the date of
circulated in draft form,together w ith the relevant papers,if any to all the Directors).
statutory section

transfer of the same to the unclaimed dividend account as referred to in sub-section (1) of section 205A of the
11. The existing Article 129(2) be deleted and the article 129(1) be read as Article 129 Act,w ill be transferred to the Investor Education and Protection Fund (IEP Fund) of the Central Government.
Shareholders w ho have not encashed the dividend w arrant(s) so far for the financial year ended 31st M arch
B y order of the B oard
2006 or subsequent financial years are requested to make their claim to the Secretarial Department,Ali Tow ers,
For APOLLO HOSPITALS ENTERPRISE LIMITED III Floor, N o.55 Greams Road, Chennai - 600 006. It may also be noted that once the unclaimed dividend is
S.M. Krishnan transferred to the IEP Fund as above,no claim shall lie in respect thereof.
Place :Chennai Sr. General M anager - Finance &
Information in respect of such unclaimed dividend w hen due for transfer to the IEP Fund is given below :-
Date :20th M ay 2013 Company Secretary
FinancialYear Ended D ate of D eclaration of D ividend Last date for claiming unpaid
Notes:
D ividend
1. A m em ber entitled to attend and vote atthis AnnualGeneralMeeting m ay appointa proxy to attend and vote
31 /03/2006 07/08/2006 02/09/2013
business review

on his / her behalf. A proxy need not be a m em ber ofthe Com pany. The instrument appointing the proxy and
31/03/2007 (Interim) 24/03/2007 30/04/2014
the pow er of attorney or other authority,if any,under w hich it is signed or a notarially certified copy of the pow er
31/03/2007 (Final) 24/08/2007 30/09/2014
or other authority shall be deposited either at the Registered Office of the Company at N o. 19 B ishop Gardens,
31/03/2008 28/08/2008 05/10/2015
Raja Annamalaipuram,Chennai - 600 028 or at the Secretarial Department,Ali Tow ers,III floor,N o. 55 Greams
31/03/2009 26/08/2009 03/10/2016
Road,Chennai - 600 006 not less than 48 hours before the commencement of the meeting. 31/03/2010 26/07/2010 03/09/2017
31/03/2011 22/07/2011 29/08/2018
2. The Explanatory Statement pursuant to Section 173 (2) of the Companies Act, 1956 in respect of the Special
31/03/2012 09/08/2012 04/09/2019
B usiness as set out above is annexed hereto.

3. The Register of M embers and Share Transfer B ooks w ill remain closed from Saturday, 27th July 2013 to
Wednesday,7th August2013 (both days inclusive).

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9. M embers holding shares in physical form are requested to intimate the follow ing directly to the Company's The remuneration w hich w ould be offered to Smt. Sindoori Reddy is commensurate w ith the terms and conditions
Registrar and Share Transfer Agents, Integrated Enterprises (I) Limited, Kences Tow ers, II Floor, N o, 1 of appointment of employees in similar categories.
Ramakrishna Street,N orth U sman Road,T. N agar,Chennai - 600 017.
Smt. Sindoori Reddy is a relative (w ithin the meaning of Section 6 of the Act) of Smt. Suneeta Reddy,Joint M anaging
performance highlights

(a) B ank M andate w ith full particulars for remittance of dividend directly into their bank accounts,if declared Director,and is also a relative of [Link] C Reddy,Executive Chairman,Smt. Preetha Reddy,M anaging Director,Smt.
at the meeting. Shobana Kamineni,Executive Director – Special Initiatives and Smt. Sangita Reddy,Executive Director – Operations. Since
Smt. Sindoori Reddy’s remuneration exceeds the ceiling prescribed under Section 314(1)(b),of the Companies Act,
(b) Changes,if any,in their address at an early date.
1956, approval of the shareholders is sought in this regard under the aforesaid Section. Accordingly, the B oard
(c) Application for consolidation of folios,if shareholdings are under multiple folios. recommends the resolution set out in Item N o.8 of the N otice for approval of the members.
(d) Despatch of share certificates for consolidation.
Mem orandum ofInterestofDirectors
(e) Request for nomination forms for making nominations as per amended provisions of the Companies Act,
N one of the Directors of the Company is in any w ay concerned or interested in the above appointment except
1956.
[Link] C Reddy,Smt. Preetha Reddy,Smt. Suneeta Reddy,Smt. Shobana Kamineni and Smt. Sangita Reddy w ho
10. M embers are requested to quote ledger folio numbers in all their correspondences. are relatives of Smt. Sindoori Reddy.
corporate review

11. M embers holding shares in dematerialized form (electronic form) are requested to intimate any change in their Item No. 9
address,bank mandate etc.,directly to their respective Depository Participants.
The M embers at the Extraordinary General M eeting held on 27th December 2007 approved the proposal for
12. The Securities and Exchange B oard of India (SEB I) has mandated the submission of Permanent Account N umber amendment of certain articles pursuant to the Shareholders Agreement (Agreement) dated 24th September 2007
(PAN ) by every participant in the securities market. M embers holding shares in electronic form are therefore, entered into betw een the Company and the Apax Group. As per the terms of the agreement,upon the Apax Group’s
requested to submit their PAN details to their Depositary Participants w ith w hom they are maintaining their equity holding falling below a minimum threshold limit of 5.65% of the total capital of the company,the special rights
demat accounts. M embers holding shares in physical form can submit their PAN details to the Company/ accorded to the Apax Group ceases. Since the Apax Group’s shareholding is below the minimum threshold limit of
Registrar and Share Transfer Agents,M /s. Integrated Enterprises (India) Limited. 5.65% ,the agreement ceases to be effective. Therefore it is proposed to amend the articles by w ay of substitution/
deletion of the existing articles according special rights to the Apax Group as detailed under Item N o. 9 of the N otice.
13. Electronic Clearing Service (ECS) Facility:
As amendments to the Articles of Association require the special consent of the members in a General M eeting,
W ith respect to payment of dividend,the Company provides the facility of ECS to shareholders residing at the the necessary special resolution is placed before the members under Item N o. 9 of the N otice for consideration and
statutory section

follow ing cities: approval.

Ahmedabad,B angalore,B hubaneshw ar,Chandigarh,Chennai,Guw ahati,H yderabad,Jaipur,Kanpur,Kolkata, A copy of the existing Articles of Association of the Company and the amended Articles of Association of the Company,
M umbai,N agpur,N ew Delhi,Patna and Thiruvananthapuram. if approved, are available for inspection at the Registered Office during business hours till the conclusion of the
meeting.
Shareholders holding shares in physical form w ho w ish to avail ECS facility,are requested to forw ard their ECS
mandate in the prescribed form to the Company's Registrar and Share Transfer Agent,Integrated Enterprises Mem orandum ofInterestofDirectors
(I) Limited. N one of the Directors of the Company are concerned or interested in this resolution.

EXPLANATORY STATEMENT PURSUANT TO SECTION 173(2)OF THE COMPANIES ACT,1956

Item No. 8 B y order of the B oard
For APOLLO HOSPITALS ENTERPRISE LIMITED
business review

Smt. Sindoori Reddy is currently serving as Vice President – Operations. She has a B .S degree in International
S.M. Krishnan
B usiness and Finance from Pepperdine U niversity,California. She played a key role in setting up and successfully
running the Apollo Children’s H ospital,Chennai . In her earlier assignment as Executive Director in Faber Sindoori Place :Chennai Sr. General M anager - Finance &
M anagement Services Pvt Limited,she developed sound expertise in various facets of operations including people Date :20th M ay 2013 Company Secretary
management skills.

It is considered that w ith her qualification,expertise,experience and know ledge,[Link] Reddy can continue
to effectively contribute to the Company’s grow th. Accordingly it w ould be prudent to re-appoint Smt. Sindoori
Reddy as Vice President – Operations on such remuneration as may be decided by the B oard not exceeding the
ceiling prescribed by the Central Government from time to time,(the present ceiling limit being ` 250,000/- p.m. or
` 3,000,000/- p.a.).

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DETAILS OF DIRECTORS SEEKING APPOINTMENT/RE-APPOINTMENT IN THE ANNUAL GENERAL MEETING Name of the Director Shri H abibullah Shri. Khairil Anuar [Link] Reddy [Link] Kamineni
(PURSUANT TO CLAUSE 49 OF THE LISTING AGREEMENT) Badsha Abdullah
Director 4) Apollo M umbai
Name of the Director Shri H abibullah [Link] [Link] Reddy [Link] Kamineni
H ospitals Limited
Badsha Abdullah
performance highlights

4) Apollo Sindoori
Date of B irth 8th M arch 1933 29th January 3rd April 1959 27th N ovember 1960 H otels Limited
1951 5) Apollo Gleneagles 5) Apollo H ealth
Date of Appointment 30th January 2009 25th N ovember 1st M ay 2000 28th January 2010 H ospitals Limited Resources Limited
on the B oard 2005 6) Apollo M unich H ealth 6) Lifetime W ellness Rx
Relationship w ith N one N one Daughter of [Link] Daughter of [Link] Insurance Company International Limited
other Directors C Reddy,Chairman, C Reddy,Chairman, Limited
Sister of [Link] Sister of [Link] 7) Imperial H ospital 7) Apollo Energy
Reddy,M anaging Reddy,M anaging & Research Centre Company Limited
Director,Smt. Shobana Director,Smt. Suneeta Limited
Kamineni,Executive Reddy,Joint M anaging
8) Indraprastha M edical 8) Indian H ospitals
Director - Special Director and Smt.
Corporation Limited Corporation Limited,
Initiatives and Smt. Sangita Reddy,
corporate review

Sangita Reddy, Executive Director - 9) Vasumathi Spinning 9) Indraprastha M edical

Executive Director - Operations M ills Limited Corporation Limited
Operations
Expertise in Specific Law Governance, Specialization in Leading Startups, 10) Aircel Smart M oney 10) Apollo Lavasa
Functional area Senior Counsel Strategic Finance Strategy, Limited H ealth Corporation
Former Advocate Planning, Know ledge Comprehensive Limited
General, Finance, of H ealthcare know ledge of the Private Lim ited Private Lim ited
Former Public Information Industry,Telecom & healthcare universe Com panies Com panies
Prosecutor, Technology Infrastructure Director Director
Former Central 11) W estern H ospitals 11) Kei Energy Pvt
Govt. Standing Corporation Pvt Limited
Counsel Former Limited
Central Govt. 12) Deccan Digital 12) Kamineni B uilders
Public Prosecutor N etw orks Private Pvt Limited
statutory section

Qualification M asters degree M asters degree B.A in Public Relations B .A Economics, Limited
in Islamic H istory in B usiness and Economics from Accelerated H ospital 13) Kalpatharu 13) Trac India Private
Graduated in Administration M adras U niversity w ith a M anagement,Columbia Infrastructure Limited
Law from M adras from H arvard university rank. U niversity Development Co Pvt
U niversity B usiness Diploma in Financial Limited
School,U SA M anagement 14) Sindya 14) Kei Vita Private
Ow ner/President Infrastructure Limited
M anagement Program Development
at H arvard B usiness Company Private
School,B oston,U SA Limited
B oard M embership Public Lim ited Public Lim ited Public Lim ited Public Lim ited 15) Sindya Pow er 15) Kei Rajamahendri
of other Indian Com panies Com panies Com panies Com panies Generating Resorts Pvt Limited,
companies as on Company Private
business review

M arch 31,2013 Limited

Chairm an Chairperson Executive Director 16) Sindya B uilders 16) KEI-RSOS
M aschmeijer N il 1) Aircel Limited 1) Apollo M unich H ealth Private Limited Petroleum and
Aromatics India Insurance Company Energy Private
Limited Limited Limited
2) Aircel Cellular Director 17) Tharani Energy India 17) KEI-RSOS Shipping
Limited 2) PCR Investments Private Limited Pvt Limited
Limited 18) Faber Sindoori 18) Peninsular Tankers
3) Dishnet W ireless 3) Apollo Sindoori M anagement Pvt Limited
Limited H otels Limited Services Pvt Limited
19) H ealth Superhiw ay 19) Keimed Private
Private Limited Limited

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46 47
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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

Name of the Director Shri H abibullah [Link] [Link] Reddy [Link] Kamineni
Badsha Abdullah
20) Quintiles Phase One 20) Trac Eco & Safari directors’report
Clinical Trials India Park Pvt Limited
performance highlights

Pvt Limited
21) H elios H oldings 21) Ashok B irla Apollo to the shareholders
Private Limited H ospitals Pvt
Limited
22) Garuda Energy 22) M atrix Agro Private
Private Limited Limited
Your Directors are pleased to present the THIRTY SECOND ANNUAL REPORT and the audited statements of accounts
23) Sirkazhi Port Private 23) LN G B harat Private
Limited Limited for the year ended 31st M arch 2013.
24) Apollo Cosmetic
Surgical Centre Pvt
Limited
FINANCIAL RESULTS (STANDALONE)
25) Apollo (` in m illion)
corporate review

Infrastructure March 31,2013 March 31,2012

Project Finance Co For the year ended
Pvt Limited Income from operations 33,178 28,001
26) Kalpatharu Profit before Extraordinary Items and Taxation 4,034 3,375
Enterprises Pvt. Ltd,
Provision for Taxation 988 1,066
Chairman/M ember of the Committee of the Board of D irectors of the Company as on M arch 31,2013
N et Profit before Extraordinary Items after Taxation 3,046 2,309
Mem ber
Extraordinary Item 45 -
N il N il 1. Investors Grievance N il
Committee N et Profit after Extraordinary Item 3,091 2,309
2. Investment B alance of Profit brought forw ard 1,763 1,649
Committee
Chairman/M ember of the Committee of D irectors of other Companies in w hich he/she is a director as on M arch 31,2013 Dividend paid on equity shares
22 -
(arising on conversion of FCCB loan & share w arrants)
statutory section

Audit Committee Chairperson Mem ber

1. Apollo M unich H ealth 1. Apollo M unich H ealth ProfitAvailable for appropriations 4,832 3,958
N il N il Insurance Co Limited Insurance Co Limited Appropriations
Mem ber
Dividend (inclusive of dividend tax) 895 625
2. Indraprastha
M edical Corporation Transfer to General Reserve 1,000 1,500
Limited
Transfer to Debenture Redemption Reserve 630 70
Shareholders'Grievance N il N il N il N il
Committee B alance carried forw ard to B alance sheet 2,307 1,763
Remuneration Mem ber Chairperson
Committee 1. Apollo M unich H ealth 1. Apollo M unich H ealth RESULTS OF OPERATIONS
N il N il Insurance Company Insurance Company
Limited Limited During the year under review ,the income from operations of the Company increased to ` 33,178 million compared
2. Indraprastha M edical to ` 28,001 million in the previous year,registering an impressive grow th of 18% . The profit after tax for the year
business review

Corporation Limited
increased by 34% to ` 3,091 million compared to ` 2,309 million in the previous year.
Shareholding in the 10,806 N il 3,001,590 2,189,952
Company (as on
During the year under review ,the consolidated gross revenue of the Company increased to ` 37,687 million compared
31/03/2013)
The remuneration of all Executive Directors including to ` 31,475 million in the previous year,registering an impressive grow th of 20% . N et profit after minority interest for

Smt. Suneeta Reddy and Smt. Shobana Kamineni has been the group increased to ` 3,045 million from ` 2,194 million representing a grow th of 39% .
O ther Information
re-aligned in the current fiscal as Fixed payplus performance
CONSOLIDATED FINANCIAL STATEMENTS
linked variable pay. For details of the remuneration of the
Executive Directors, please refer page no. 61 under the The M inistry of Corporate Affairs (M CA) vide its circular N o. 5/12/2007-CL-Ill dated 8th February 2011 has granted

heading “Remuneration Policy to Directors”. general exemption under Section 212(8) of the Companies Act, 1956 to companies from attaching the accounts
of their subsidiaries in their annual reports subject to fulfillment of certain conditions prescribed. The B oard of

annual report 2012–13

48 49
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

Directors of the Company at its meeting held on 20th M ay 2013,noted the provisions of the M CA circular cited and U nique H om e H ealth Care Lim ited (U H H CL)
passed the necessary resolution granting requisite approvals for not attaching the B alance Sheet, Profit & Loss U H H CL,a w holly ow ned subsidiary of the Company provides medical and paramedical services including doctor's
Account, Report of the B oard of Directors and Report of the Auditors of each of the subsidiary companies to the consultation, physiotherapy direct to patient homes and also offers paramedical service in hospitals to critically
accounts of the Company. A statement of summarized financials of all subsidiaries of your Company,pursuant to ill patients. For the year ended 31st M arch 2013 U H H CL, recorded a revenue of ` 40.05 million and net profit of
performance highlights

Section 212(8) of the Companies Act,1956 forms part of this report. Any further information in respect of the annual ` 17.88 million.
report and the financial statements of the subsidiary companies of your Company w ill be made available to the
members on request and w ill also be available for inspection for any member at its Registered Office. In accordance
AB M edical Centres Lim ited (ABM CL)
w ith the Accounting Standard, AS-21 issued by the Institute of Chartered Accountants of India, the Consolidated
AB M CL,a w holly ow ned subsidiary of the Company does not have any commercial operations as it has leased out
Financial Statement presented by your Company includes the financial information of all its subsidiaries.
its infrastructure viz.,land,building and medical equipment to the Company for running the hospital. For the year
ended 31st M arch 2013,AB M CL recorded an income of ` 6.40 million and a net profit of ` 4.11 million.
DIVIDEND
The B oard of Directors recommend a dividend of ` 5.50 per Equity Share (110% on face value of ` 5/ - per share) (as
Sam udra H ealthcare Enterprises Lim ited (SH EL)
against ` 4/- per Equity share on face value of ` 5/- each,80% in the previous year) on the paid up equity share capital
corporate review

SH EL,a w holly ow ned subsidiary of the company,runs a 120 bed multi speciality hospital at Kakinada. For the year
of the company for the financial year ended 31st M arch 2013,w hich if approved at the forthcoming Annual General
ended 31st M arch 2013,SH EL recorded revenue of ` 282.89 million and a net profit of ` 5.88 million.
M eeting on 7th August 2013 w ill be paid to those shareholders w hose names appear in the Register of M embers as
at the closing hours of business on 26th July 2013. In respect of shares held in electronic form,the dividend w ill be
paid on the basis of beneficial ow nership furnished by the depositories viz.,N SDL and CDSL for this purpose. Apollo H ospital (U K)Lim ited (AH U KL)
AH U KL is a w holly ow ned foreign subsidiary of the Company and has not yet commenced its operations.
The Register of M embers and Share Transfer B ooks w ill remain closed from Saturday,27th July 2013 to W ednesday,
7th August 2013 (both days inclusive).
Apollo H ealth and Lifestyle Lim ited (AH LL)
AH LL,a w holly ow ned subsidiary of the Company is engaged in the business of providing primary healthcare facilities
TRANSFER OF RESERVES
through a netw ork of ow ned/franchised clinics across India offering specialist consultation,diagnostics,preventive
Your Company proposes to transfer ` 1,000 million to the general reserve out of the amount available for
health checks,telemedicine facilities and a 24-hour pharmacy all under one roof. For the year ended 31st M arch
appropriations. An amount of ` 2,307 million is proposed to be retained in the Profit & Loss Account.
2013,AH LL recorded a consolidated revenue of ` 566.94 million and a net loss of ` 167.03 million.
statutory section

CREDIT RATING
W estern H ospitals Corporation Private Lim ited (W H CPL)
The Company continues to have the credit rating of AA from CRISIL for its debt instruments w hich indicates a high
For the year ended 31st M arch 2013, W H CPL, a w holly ow ned subsidiary of the company, recorded revenue of
degree of safety.
` 10.80 million and a net profit of ` 7.81 million.
CRISIL Equities has upgraded the Company's CRISIL IER fundamental grade to 5/5 from 4/5. The grade indicates
that the company's fundamentals are 'excellent'relative to other listed equity securities in India. Apollo N ellore H ospital Lim ited (AN H L)
As a part of its strategy to reach out to the tier II tow ns and cities,the Company intends to build a hospital in N ellore
SUBSIDIARIES through a subsidiary company, Apollo N ellore H ospital Limited (formerly know n as Pinakini H ospitals Limited).
Your Company has sixteen subsidiary companies (including fellow subsidiaries) as on M arch 31,2013. The statement AN H L recorded revenue of ` 7.42 million and a net profit of ` 5.60 million.
in respect of the details of the subsidiary companies viz.,U nique H ome H ealth Care Limited (U H H CL),AB M edical
business review

Centres Limited (AB M CL),Samudra H ealthcare Enterprises Limited (SH EL),Apollo H ospital (U K) Limited (AH U KL), Apollo Cosm etic Surgical Centre PvtLim ited (ACSPL)
Apollo H ealth and Lifestyle Limited (AH LL),W estern H ospitals Corporation Pvt Limited (W H CPL),Apollo Cosmetic ACSPL,a 69.40% subsidiary of the company is engaged in the business of running cosmetic surgical centres. For the
Surgical Centre Pvt Limited (ACSPL),Apollo N ellore H ospital Limited (AN H L) (formerly know n as Pinakini H ospitals year ended 31st M arch 2013,ACSPL recorded a revenue of ` 28.09 million and a net profit of ` 0.93 million.
Limited), Imperial H ospital and Research Centre Limited (IH RCL), Alliance M edicorp (India) Limited (Alliance),
Alliance Dental Care Limited (Alliance Dental),Sapien B io Sciences Pvt Limited (SB PL),ISIS H ealthcare India Private
Im perial H ospital and Research Centre Lim ited (IH RCL)
Limited (ISIS),M era H ealthcare India Private Limited (M ERA),Apollo Koramangala Cradle Limited (AKCL) and Apollo
IH RCL, a 85.76% subsidiary of the company ow ns a 240 bed multi speciality hospital at B engaluru. For the year
Clinics (Gujarat) Limited (ACGL) pursuant to section 212 of the Companies Act,1956,is attached to this report.
ended 31st M arch 2013,IH RCL recorded a revenue of ` 1,241.72 million and a net profit of ` 2.30 million.

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Alliance M edicorp India Lim ited (Alliance) ISSUE OF NON CONVERTIBLE DEBENTURES
Alliance,a 51% subsidiary of the Company is engaged in the business of running dialysis clinics. For the year ended During the year under review ,your Company privately placed 2,250 Secured Redeemable N on Convertible Debentures
31st M arch 2013,Alliance recorded consolidated revenue of ` 184.87 million and a net loss of ` 31.84 million. of ` 1 million each aggregating to ` 2,250 million to B anks and Financial Institutions.
performance highlights

Sapien Biosciences PvtLtd (SBPL) CORPORATE GOVERNANCE

SB PL,a 70% subsidiary of the company w hich is engaged in the business of bio-banking of tissues is currently in the Pursuant to Clause 49 (VII) of the Listing Agreement w ith the Stock Exchanges, a separate report on Corporate
startup stage . For the year ended 31st M arch 2013,SB PL recorded pre-operative expenses of ` 0.91 million. Governance forms part of the Directors'Report in the Annual Report. Your Company has been complying w ith the
requirements of the Listing Agreement and necessary disclosures have been made in this regard in the Corporate
ISIS H ealth Care India Private Lim ited (ISIS) Governance Report.

ISIS,a subsidiary of Apollo H ealth and Lifestyle Limited is engaged in the business of providing healthcare services. A certificate from the Auditors of the Company regarding compliance w ith the conditions of Corporate Governance
For the year ended 31st M arch 2013,ISIS recorded a revenue of ` 18 million and a net profit of ` 0.21 million. as stipulated under Clause 49 of the Listing Agreement is attached to this report.
corporate review

M era H ealth Care India Private Lim ited (M ERA) HUMAN RESOURCES DEVELOPMENT
M ERA,a subsidiary of Apollo H ealth and Lifestyle Limited is engaged in the business of healthcare services. For the M illions of patients from all across the w orld come to Apollo H ospitals w ith great hope in their hearts,looking for a
year ended 31st M arch 2013,M ERA recorded a revenue of ` 11 million. cure and it is the dedication and commitment of every member of the Apollo family that makes this possible.

Apollo Koram angala Cradle Lim ited (AKCL) For us at Apollo H ospitals,patient–centricity is not a mere goal,but the very core of our existence. Several employees
w ork closely w ith the patient and many more w ork indirectly to support the delivery of superior healthcare. Therefore,
AKCL,a subsidiary of Apollo H ealth and Lifestyle Limited is engaged in the business of healthcare services. For the
all employees,both individually and collectively are key to Apollo H ospitals being renow ned as a trusted healthcare
year ended 31st M arch 2013,AKCL recorded a revenue of ` 25 million and a net loss of ` 34 million.
provider. The mantra of ‘Tender Loving Care’ has a profound impact on everything w e do and is the bedrock of
the Apollo culture. W ith immense compassion and commitment, the doctors, nurses and every employee of the
Apollo Clinics (Gujarat)Lim ited (ACGL) organization come together and transform Apollo into a w arm,helpful and friendly environment for patients and
ACGL,a subsidiary of Apollo H ealth and Lifestyle Limited is engaged in the business of healthcare services. their families.
statutory section

Apollo H ospitals recognises that its greatest differentiator is its human resources capital. Therefore, the human
Alliance Dental Care Lim ited (Alliance Dental)
resources systems,procedures and the organizational environment are all designed to nurture creativity,innovation
Alliance Dental, a subsidiary of Alliance M edicorp (India) Limited is engaged in the business of running dental and greater efficiencies in its human capital. Training is an integral element of the H R system and empow ers
clinics. For the year ended 31st M arch 2013,Alliance Dental recorded a revenue of ` 156.59 million and a net loss employees to w ork tow ards shared goals and the common purpose of providing superior patient care.
of ` 24.33 million.
Apollo H ospitals firmly believes in maintaining and encouraging an organizational climate conducive to developing
satisfied and productive employees. In keeping w ith this, the Organizational Climate Survey (OCS) is conducted
INCREASE IN THE PAID-UP SHARE CAPITAL
on a regular basis to assess and ascertain employee feedback. The Organizational Climate Survey 2012 elicited
The paid-up share capital of the Company increased from ` 672.33 million (consisting of 134,466,618 equity shares of
responses from employees on diverse themes such as sense of belonging,role of H OD and superior communication,
` 5/- each) to ` 695.63 million (consisting of 139,125,159 equity shares of ` 5/- each) consequent to the allotment of:-
decision making processes, training, team building, compensation & patient satisfaction. B ased on the feedback
received from the OCS,robust action plans w ere mapped out for continuous improvements.
business review

(i) 1,381,619 equity shares to International Finance Corporation, W ashington upon conversion of 750 Foreign
Apollo values every individual’s performance and thus the Apollo Performance M anagement System encompassing
Currency Convertible B onds of U SD 10,000/- each aggregating to U SD 7.5 million at a price of ` 302.50 per share
the management cadre employees across the Group w as instituted focusing on alignment,measurement,rew ard
of ` 5/- each,including a premium of ` 297.50 per share on 7th June 2012.
and recognition including Personal Development Plan (PDP). As a part of Rew ards and Recognition scheme, the
(ii) 3,276,922 equity shares to Dr. Prathap C Reddy,one of the promoters of the Company on 25th July 2012 upon follow ing aw ards w ere introduced to promote greater employee performance and engagement:
conversion of w arrants issued to him on 5th February 2011 at a price of ` 472.46 per share including a premium
1. Aw ard for B est Ideas & Suggestion
of ` 467.46 per share.
2. Aw ard for B est Talent
These shares have been listed at B ombay Stock Exchange Limited (B SE) and N ational Stock Exchange India Limited,
(N SE),M umbai.

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

3. Aw ard for Service Excellence & W ellness. ǩ 7KH 'LUHFWRUV KDG WDNHQ SURSHU DQG VXIȌFLHQW FDUH IRU WKH PDLQWHQDQFH RI DGHTXDWH DFFRXQWLQJ UHFRUGV LQ
accordance w ith the provisions of the Companies Act,1956 for safeguarding the assets of the Company and for
Leadership development through programs such as FLDP & CCP w as also initiated this year. Future Leaders
preventing and detecting fraud and other irregularities;
Development program (FLDP) at Apollo H ospital w as organized primarily w ith the aim to prepare 2nd and 3rd level
performance highlights

Executives for Senior Leadership roles. Competency Coaching Program (CCP) for nursing leaders is a structured ǩ7KH 'LUHFWRUVKDGSUHSDUHGWKHDQQXDODFFRXQWVRQDJRLQJFRQFHUQEDVLV
approach to enhance skill and competencies required in different application areas in business to achieve desired
outcomes. FIXED DEPOSITS
The total number of employees increased from 32,991 as on M arch 31,2012 to 35,348 as on M arch 31,2013. The total deposits w ith the Company as on 31st M arch 2013 w as ` 364.94 million (` 490.47 million as on 31st M arch
2012) w hich include deposits for an aggregate of value of ` 23.09 million (` 16.67 million as on 31st M arch 2012)
not claimed by the depositors. Out of these deposits,an aggregate value of ` 15.78 million have since been repaid /
HR INITIATIVES AT APOLLO
renew ed.
Apollo Acculturation Program for imbibing excellence is a detailed 3-day Induction program w hich is follow ed by an
on-line test. DIRECTORS
corporate review

W ellness at Apollo is an imperative and to encourage focus on preventive healthcare, the Annual M aster H ealth As per the provisions of the Articles of Association of the Company,four directors of the company viz.,Shri. H abibullah
Check-up for consultants and their spouses w as initiated and made mandatory. An Incentive for employees on B adsha, Shri. Khairil Anuar Abdullah, Smt. Suneeta Reddy and Smt. Shobana Kamineni retire by rotation at the
referring their friends and family for H ealth check-ups w as also introduced this year. ensuing Annual General M eeting and are eligible for re-appointment.

In our continuous quest tow ards improving healthcare and in achieving superior standards of excellence,w e launched Shri. Sandeep N aik and Shri. M ichael Fernandes both resigned from the position of Director of the Company w .e.f
the Employee Suggestion Program ‘Apollo B ig M inds’. A new Intranet initiative christened ‘Apollo Space’ w as 9th N ovember 2012 due to their inability to continue in view of increased professional commitments.
launched. The online environment encourages open communication and Apolloites can now Connect,Communicate
Pursuant to the Shareholders Agreement (Agreement) entered into betw een the Company and the Apax Group,
& Collaborate w ith greater ease and make collective discoveries.
H STN Acquisition (FII) Limited (H STN ),an Apax group Company,had nominated [Link] Singh and he w as
An exciting corporate tie-up w as introduced as a w elfare measure for all employees and their family members appointed by the Company as an additional director on 9th N ovember 2012. As per the terms of the agreement,upon
enabling them to avail discounts and other benefits in amusement parks,apparel stores,restaurants,beauty salons, the Apax Group’s equity holding falling below a minimum threshold limit of 5.65% of the total capital of the company,
optical stores and travel agencies. their entitlement to nominate a director on the board of the Company ceases. Since the Apax Group’s equity holding
statutory section

is currently below 5.65% ,Shri. Shashank Singh w ill only hold the office till the date of the Annual General M eeting.
Apollo H ospitals w as a recipient of several aw ards at prestigious forums this year. Significant aw ards and accolades
received during the year are detailed below : The B oard w ishes to place on record its appreciation of the contributions made by [Link] N aik,Shri. M ichael
Fernandes and Shri. Shashank Singh during their tenure as Directors of the Company.
ǩ$VLDQ /HDUQLQJ 'HYHORSPHQW/HDGHUVKLS$ZDUGVIRUǤ%HVW,QGXFWLRQ3URJUDPǥ

ǩVW *OREDO+5([FHOOHQFH$ZDUGVIRUǥ,QVWLWXWLRQ%XLOGLQJǥ AUDITORS

The Auditors,M /s. S. Visw anathan,Chartered Accountants,retire at the ensuing Annual General M eeting and have
ǩWK (PSOR\HU%UDQGLQJ$ZDUGVIRUǤ7DOHQW0DQDJHPHQWǥDQGǤ%HVW+56WUDWHJ\LQOLQHZLWK%XVLQHVVǥ
confirmed their eligibility and w illingness to accept office,if reappointed.
ǩ$,0$ $ZDUGIRUǤ%HVW,QQRYDWLRQLQ6HUYLFH'HOLYHU\ǥ
PARTICULARS OF EMPLOYEES AS PER SECTION 217(2A)OF THE COMPANIES ACT,1956.
DIRECTORS' RESPONSIBILITY STATEMENT In terms of provisions of Section 217(2A) of the Companies Act, 1956, read w ith the Companies (Particulars of
business review

Pursuant to Section 217(2AA) of the Companies (Amendment) Act 2000,the Directors of the Company hereby state Employees) Rules,1975,the names and other particulars of employees are set out in the Annexure to the Directors'
and confirm that: Report. H ow ever, having regard to the provisions of Section 219(1)(b)(iv) of the Companies Act, 1956, the Annual
Report excluding the aforesaid information is being sent to all the members of the Company and others entitled
ǩ ,QWKHSUHSDUDWLRQRIWKHDQQXDODFFRXQWVIRUWKH\HDUWKHDSSOLFDEOHDFFRXQWLQJVWDQGDUGVKDGEHHQIROORZHG thereto. Any member interested in obtaining such particulars may w rite to the Company Secretary at the Registered
along w ith proper explanations and there w ere no material departures; Office of the Company.

ǩ 7KH'LUHFWRUVKDGVHOHFWHGVXFKDFFRXQWLQJSROLFLHVDQGDSSOLHGWKHPFRQVLVWHQWO\DQGPDGHMXGJPHQWVDQG
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company
at the end of the financial year and of the profit of the Company for that period;

annual report 2012–13

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

PARTICULARS REGARDING CONSERVATION OF ENERGY,TECHNOLOGY ABSORPTION AND Proton Therapy System

FOREIGN EXCHANGE EARNINGS AND OUTGO. In keeping w ith the trend of introducing the latest cutting edge technology into the country for the benefit of patients
Particulars as required to be disclosed as per the Companies (Disclosure of Particulars in the Report of B oard of in India and the neighbouring countries,your Company has entered into an Agreement w ith Ion B eam Applications,
B elgium to procure and operate a Proton Therapy System for treatment of various types of cancers at a cost of about
performance highlights

Directors) Rules,1988 are set out in the statement attached herew ith as Annexure - A.
` 4,000 million at Chennai. The 22,000 [Link]. facility w ill have a cyclotron w hich w eighs about 200 tons to produce
the beam. From the cyclotron,the beam passes along a beam line,w hich w ill be about 200 feet long. This beam line
ACKNOWLEDGEMENT
reaches all the gantries,w here patients are treated. The gantry itself is 3 storeyed tall,w ith the patient entering the
Your Directors w ish to place on record their appreciation of the contributions made by the employees at all levels,to
treatment room on the second floor. To date there are less than 25 operational proton therapy centers w orldw ide.
the continued grow th and prosperity of your Company.
Conventionally,radiation therapy given by a linear accelerator,including 3D conformal radiation and IM RT (Intensity
Your Directors also w ish to place on record their appreciation of business constituents,banks and other financial
M odulated Radiation Therapy),uses x-rays as the form of radiation. X-rays are a form of photon radiation and use
institutions and shareholders,of the Company for their continued support.
high-energy rays composed of photons (or "packets of energy") to disrupt the cancer cells. Particle radiation is
For and on behalf of the B oard of Directors another type of radiation,w hich uses subatomic particles,including electrons,neutrons and protons to generate a
"particle beam" that kills the cancer cells. Proton therapy is one type of particle therapy.
corporate review

The main difference betw een protons and X-rays is the physical properties of the proton beam itself. Protons are
Place :Chennai Dr. Prathap C Reddy large particles w ith a positive charge that penetrate matter (in this case,tissue) to a limited depth,based on the
Date :20th M ay 2013 Executive Chairman energy of the beam,and deposit most of their energy at the end of the beam. X-rays are electromagnetic w aves that
have no mass or charge and are able to penetrate completely through tissue w hile losing some energy along the
w ay. In turn,x-rays enter the patient on one side of the body and travel straight through,exiting out the other side,
w ith the radiation dose gradually decreasing as it travels through the tissues. In order to decrease the amount of
ANNEXURE - A TO THE DIRECTORS’REPORT radiation healthy tissues receive,the beam is given from several different angles,allow ing the dose to accumulate
in the intended target,w ithout damaging the surrounding healthy tissues.
ENERGY CONSERVATION,TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
The proton beam is able to enter the body at a
EARNINGS AND OUTGO
fairly low dose of radiation and increase in the
statutory section

CONSERVATION OF ENERGY
last 3mm of the beam to the dose required for
The operations of the Company are not energy-intensive. H ow ever,significant measures are being taken to reduce treatment. In addition, the beam then stops,
the energy consumption by using energy-efficient equipment. resulting in virtually no radiation to the tissue
beyond the target- or no "exit dose" as it is
Your Company constantly evaluates and invests in new technology to make its infrastructure more energy efficient.
called. The ability of the proton dose to increase
The follow ing energy saving measures w ere adopted during the year 2012-2013.
at a specified area is called the B ragg Peak. The
ǩ,QWURGXFWLRQ RIKRWZDWHUJHQHUDWLRQIRUSDWLHQWURRPVZLWKKHDWSXPSLQVWHDGRIKRWZDWHU GLHVHO ERLOHU depth of the B ragg Peak in tissue is dependent
on the energy of the beam;the higher the energy,
ǩ'LUHFW SXUFKDVHRI(OHFWULFLW\XQLWVIURPZLQGPLOOXQLWV
the deeper the B ragg Peak and therefore, the
ǩ3KDVLQJ RXWRIPHUFXU\ODPSVZLWK&)//DPSV deeper the dose. This allow s the radiation team
business review

to calculate the energy required to position the

ǩ,QWURGXFWLRQ RI0LFURSURFHVVLQJHQHUJ\VDYHUIRU$+80RWRUV dose at the depth of the cancer and spare the healthy tissues surrounding it.

As energy costs comprise a very small part of your Company's total expenses,the financial implications of these In summary,Proton therapy
measures are not material.
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TECHNOLOGY ABSORPTION
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Over the years,your Company has brought into the country the best that the w orld has to offer in terms of technology.
In its continuous endeavour to serve the patients better and to bring healthcare of international standards w ithin the ǩ5HGXFHV WKHSUREDELOLW\DQGRUVHYHULW\RIVLGHHIIHFWVRQKHDOWK\VXUURXQGLQJWLVVXHV
reach of every individual,your company has introduced the latest technology in its hospitals.
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PET- MRI SYSTEM

An integrated w hole-body molecular M R system w ith simultaneous acquisition of PET data has been launched
for the first time in South Asia at Indraprastha Apollo H ospital,N ew Delhi. This revolutionary system combines a
M agnetic Resonance Imaging (M RI) and a Positron Emission Tomography (PET) scanner in one single device w hich
corporate governance
performance highlights

allow s doctors,to simultaneously see the morphology report

of internal organs, how these are w orking, as w ell as
their metabolism, all in a single image. This helps
doctors to make more accurate diagnosis by not only
seeing w here a tumor is in the body, but also identify
THE COMPANY'S PHILOSOPHY ON CODE OF GOVERNANCE
its behaviour. M oreover, it can also display the body
reactions to medication administered to the patient. The basic objective of corporate governance policies adopted by the Company is to attain the highest levels of
transparency,accountability and integrity. This objective extends not merely to comply w ith statutory requirements
M RI and PET are already w ell-established imaging but also to go beyond them by putting into place procedures and systems,w hich are in accordance w ith the best
techniques in medicine and have been used for a long
corporate review

practices of governance. Your Company believes that good Corporate Governance enhances the trust and confidence
time to answ er important clinical questions. N ow , the of all the stakeholders. Good practice in corporate behaviour helps to enhance and maintain public trust in companies
combination of both technologies in one system has and the stock markets.
revolutionized the understanding of many diseases
including cancer, epilepsy, dementia and cardiac Your Company review s its corporate governance practices to ensure that they reflect the latest developments in the
conditions. W ith the simultaneous acquisition of M R corporate arena and in positioning itself to conform to the best corporate governance practices. Your Company is
and PET data, this system is designed to provide new committed to pursuing excellence in all its activities and in maximisation of its shareholders'w ealth.
opportunities for imaging. W hile M R provides exquisite morphological and functional details in human tissue,
The Company's corporate governance policies and practices focus on the follow ing principles:-
PET goes further to investigate the human body at the level of cellular activity and metabolism. This innovative
system also has the potential to be a particularly valuable tool for identifying neurological,oncological and cardiac 1. To recognize the respective roles and responsibilities of the B oard and management.
conditions of diseases and in supporting the planning of appropriate treatment.
2. To achieve the highest degree of transparency by maintaining a high degree of disclosure levels.
statutory section

In addition,the combination of the tw o systems w ill significantly reduce the time needed for an examination as w ell
3. To ensure and maintain high ethical standards in its functioning.
as occupy lesser space compared to w hen tw o separate systems are used.
4. To give the highest importance to investor relations.
FOREIGN EXCHANGE EARNINGS & OUTGO
Foreign Exchange Earnings: ` 312.05 million (This is exclusive of Rupee payment made by N on-Resident Indians 5. To ensure a sound system of risk management and internal controls.
and Foreign N ational(s))
6. To ensure that employees of the Company subscribe to the corporate values and apply them in their conduct.
Foreign Exchange Outgo :` 995.48 million tow ards purchase of medical equipment and capital expenditure.
7. To ensure that the decision making process is fair and transparent

8. To ensure that the Company follow s globally recognized corporate governance practices.
business review

I. BOARD OF DIRECTORS
The Company has an Executive Chairman. As per Clause 49 of the Listing Agreement, if the Chairman is an
Executive Chairman,at least half of the B oard should comprise of independent directors. The B oard comprises
64 per cent of N on Executive Directors and 57 per cent of independent directors. The B oard of Directors of the
Company has a healthy blend of executive and non-executive directors,and consequently ensures the desired
level of independence in functioning and decision-making. M oreover all the non-executive directors are eminent
professionals,and bring the w ealth of their professional expertise and experience to the management of the
Company.

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(A) Com position ofthe Board ofDirectors and details ofexternaldirectorships and (B) Rem uneration Policy to Directors
m em berships ofboards/com m ittees
a) Executive Directors
D irector Category D esignation Share Number of Number of W hether The Remuneration and N omination Committee of the B oard consists solely of non-executive directors. Its terms of
performance highlights

holding Directorships M emberships Chairman reference include making recommendations to the B oard in respect of the Group policy on executive remuneration,
in the (out of w hich in Board / M ember
Company as Chairman) Committees and the consideration and determination of the remuneration of the executive directors and senior management.
other than other than
AH EL # AH EL ## The main aim of the Group’s remuneration policy is to pay the Group’s executive directors and senior management
competitively, having regard to other comparable companies and the need to ensure that they are properly
Dr. Prathap C Reddy Promoter Executive Chairman 7,045,464 13(11) - - remunerated and motivated to perform in the best interests of shareholders. Performance related rew ards,based
Smt. Preetha Reddy Promoter M anaging Director 2,193,915 12 1 M ember on measured and stretch targets,are therefore an important component of remuneration packages.
Smt. Suneeta Reddy Promoter Joint M anaging 3,001,590 10(3) 1 Chairman
The Remuneration and N omination Committee obtains external advice from independent firms of compensation
Director 1 M ember
and benefit consultants w hen necessary.
Smt. Sangita Reddy Promoter Executive Director – 3,382,508 12 - -
corporate review

Operations During the year,the Remuneration and N omination Committee decided to re-align and restructure the Executive
Smt. Shobana Promoter Executive Director – 2,189,952 10 1 M ember Directors compensation. Accordingly, the main components of the remuneration package for executive directors
Kamineni Special Initiatives now comprises of base salary and performance related variable annual incentive linked to company performance.
Shri. Rajkumar M enon Independent Director - - - -
Shri. Rafeeque Ahamed Independent Director 55,900 - - - Base Com pensation (Fixed pay)
Shri. H abibullah Independent Director 10,806 1 - - The base salary or the fixed component has been finalized based on prevailing market standards. The salaries
B adsha for executive directors w ill be review ed annually having regard to the job size, responsibility levels, performance
Shri. Deepak Vaidya Independent Director - 4(1) 2 Chairman evaluation and competitive market practice. Also,the annual increments relating to the fixed pay components w ill
2 M ember be decided by the Remuneration Committee based on company performance and market conditions.
Shri. N . Vaghul Independent Director - 4(1) 2 Chairman
statutory section

Shri. T.K. B alaji Independent Director - 10(2) 1 Chairman Perform ance based incentive (Variable pay)
2 M ember
All Executive Directors w ould be eligible for performance based Variable Pay,linked to the achievement of operating
[Link] Anuar Independent Director - - - -
profit targets and job related goals. A percentage of the bonus is payable by reference to the profit targets and the
Abdullah
balance is payable by reference to individual performance criteria. The maximum annual bonus payable is 125% of
[Link] Independent Director - 5 5 Chairman base salary.
Shri. Shashank Singh N on N ominee – H STN - 1 - -
Executive Acquisition (FII) Ltd In addition to the variable pay,the Executive Chairman w ill be eligible for a commission of upto 1% of the net profits
before tax of the Company. This w ill be determined by the Remuneration Committee based on the review of the
#excluding Directorships in Foreign Companies,Private Companies and Section 25 companies.
Executive Chairman’s achievement linked to improvement in shareholders returns and brand enhancement.
## Represents M embership/Chairmanship of Audit Committees and Shareholders'/Investors' Grievance
The Executive Directors Compensation as detailed above is w ithin the overall framew ork of the approvals given by
Committee.
business review

shareholders and in line w ith the managerial remuneration limits as specified under the Companies Act,1956. The
N one of the Directors on the B oard hold the office of Director in more than 15 Companies, or M embership of job related goals for each w orking director w ill be set out by the Remuneration Committee every year.
Committees of the B oard in more than 10 Committees and Chairmanship of more than 5 Committees,across all
companies. b) Non Executive Directors
Compensation to the non-executive directors takes the form of:-
Pecuniary relationships or transactions ofNon executive directors vis-à-vis the Com pany
1. Sitting fees for the meetings of the B oard and Committees,if any attended by them and
The Company does not have any direct pecuniary relationship/transaction w ith any of its N on Executive Directors.
2. Commission on profits.

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The Shareholders and the M inistry of Corporate Affairs have approved the payment of commission to N on Executive Shri. Rajkumar - 0.28 - - 1.00 1.28
and Independent Directors w ithin the overall maximum ceiling limit of 1% of the net profits of the Company for M enon
a period of five years w ith effect from 1st April 2009 in addition to the sitting fee being paid by the Company for Shri. Rafeeque - 0.06 - - 1.00 1.06
attending the B oard/Committee M eetings. Ahamed
performance highlights

Shri. H abibullah - 0.12 - - 1.00 1.12

The compensation is review ed periodically taking into consideration various factors such as performance of the
B adsha
Company,time spent by the directors for attending to the affairs and business of the Company,and the extent of
Shri. Deepak Vaidya - 0.18 - - 1.00 1.18
responsibilities cast on the directors under various law s and other relevant factors.
Shri. N . Vaghul - 0.20 - - 1.00 1.20
The B oard approved the payment of ` 1.0 million as commission to each N on Executive and Independent Director for Shri. T.K. B alaji - 0.08 - - 1.00 1.08
the year ended 31st M arch 2013. [Link] Anuar - 0.10 - - 1.00 1.10
Abdullah
The aggregate commission payable to all non-executive directors is w ell w ithin the limits approved by the [Link] - 0.28 - - 1.00 1.28
shareholders and in line w ith the provisions of the Companies Act,1956.
Shri. Sandeep N aik - 0.10 - - - 0.10
corporate review

(resigned w .e.f 9th

(c) Details ofrem uneration paid to the Directors N ovember 2012)

The details of the remuneration paid/accrued to the Directors for the year ended 31st M arch 2013 along w ith their Shri. Shashank Singh - 0.02 - - 1.00 1.02
appointed w .e.f 9th
relationships and business interests is detailed below : (` in million)
N ovember 2012
Remuneration paid/payable for the
year ended 31st M arch 2013 Notes:
Relationship w ith
Name of the D irector Remuneration
other D irectors (i) The term of office of the executive directors is for a period of 5 years from the respective dates of appointment.
Sitting Fixed pay Variable Commission Total
Fee Pay (ii) The Company does not have any service contract w ith any of the directors.
Dr. Prathap C Reddy Father of [Link] - 55.00 60.50 40.80 156.30
Reddy,[Link] Reddy, (iii) N one of the above persons is eligible for any severance pay.
statutory section

Smt. Sangita Reddy & Smt.

(iv) Commission to the N on-Executive Directors for the year ended 31st M arch 2013 @ ` 1.0 million each per annum
Shobana Kamineni
w ill be paid,subject to deduction of tax after adoption of accounts by shareholders at the Annual General M eeting
Smt. Preetha Reddy Daughter of Dr. Prathap - 25.00 27.50 - 52.50
to be held on 7th August 2013. Sitting fee also includes payment of fees for attending B oard-level Committee
C Reddy,Sister of Smt.
Suneeta Reddy, Smt. M eetings.
Sangita Reddy & Smt.
(v) The Company has no stock option plans and hence,such an instrument does not form part of the remuneration
Shobana Kamineni
package payable to any Executive Director and/or N on-Executive Director.
Smt. Suneeta Reddy Daughter of - 25.00 27.50 - 52.50
Dr. Prathap C Reddy,Sister (vi) The Company did not advance any loan to any of its directors during the year.
of [Link] Reddy,
[Link] Reddy &
(C) Board Procedures
Smt. Shobana Kamineni
business review

Smt. Sangita Reddy Daughter of Dr. Prathap - 25.00 27.50 - 52.50

(a) Num ber ofBoard Meetings held,dates on w hich held
C Reddy,Sister of Smt.
Preetha Reddy, Smt. Five board meetings w ere held during the financial year from 1st April 2012 to 31st M arch 2013. The dates on
Suneeta Reddy & Smt. w hich the meetings w ere held are as follow s:-
Shobana Kamineni
20th April 2012, 29th M ay 2012,10th August 2012,9th N ovember 2012 and 7th February 2013.
Smt. Shobana Daughter of Dr. Prathap - 25.00 27.50 - 52.50
Kamineni C Reddy,Sister of Smt.
Preetha Reddy, Smt.
Suneeta Reddy & Smt.
Sangita Reddy

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(b) Attendance details ofeach director atthe Board Meetings and atthe lastAGM are setoutbelow :- d) The Board review s periodically the com pliance reports ofalllaw s applicable to the Com pany.

Number Number Last AGM (D) Code ofConductfor Board Mem bers and Senior Managem entPersonnel
of Board of Board attendance
D irector The B oard of Directors had adopted a Code of Conduct for the B oard M embers and Senior M anagement
M eetings held M eetings (Yes/No)
performance highlights

Attended Personnel. This Code helps the Company to maintain the Standard of B usiness Ethics and ensure compliance
Dr. Prathap C Reddy 5 5 Yes w ith the legal requirements, specifically under Clause 49 of the Stock Exchange Listing Agreements of the
Smt. Preetha Reddy 5 5 Yes Company. The Code is aimed at preventing any w rongdoing and promoting ethical conduct at the B oard and
Smt. Suneeta Reddy 5 5 Yes Senior M anagement level.
Smt. Sangita Reddy 5 5 Yes The Company Secretary has been appointed as the Compliance Officer and is responsible to ensure adherence
Smt. Shobana Kamineni 5 5 Yes to the Code by all concerned. A copy of the code of conduct has been posted at the Company's official w ebsite
Shri. Rajkumar M enon 5 4 Yes w w w . [Link]
Shri. Rafeeque Ahamed 5 1 No The declaration regarding compliance w ith the code of conduct as required under clause 49 of the Listing
Shri. H abibullah B adsha 5 3 Yes Agreement w ith the stock exchanges is appended to this report.
corporate review

Shri. Deepak Vaidya 5 3 Yes

Code ofConductfor prevention ofInsider Trading
Shri. N . Vaghul 5 5 Yes
The Company has adopted a code of conduct for prevention of insider trading in accordance w ith the Securities
Shri. T.K. B alaji 5 3 No
and Exchange B oard of India (Prohibition of Insider Trading) Regulations, 1992. Shri. S.M . Krishnan, Senior
Shri. Khairil Anuar Abdullah 5 5 Yes
General M anager - Finance and Company Secretary is the Compliance Officer. All the Directors and Senior
Shri. G. Venkatraman 5 5 Yes
M anagement Personnel and such other designated employees of the Company w ho are expected to have
Shri. Sandeep N aik (resigned w .e.f 9th N ovember 2012) 5 3 Yes
access to unpublished price sensitive information relating to the Company are covered under the said code.
Shri. Shashank Singh (appointed w .e.f 9th N ovember 2012) 5 1 -- The Directors, their relatives, senior management personnel, designated employees etc., are restricted
from purchasing, selling and dealing in the shares w hile being in possession of unpublished price sensitive
(c) The inform ation m ade available to the Board includes the follow ing
information about the Company during certain prohibited periods.
1. Annual Operating plans,budgets and any updates.
2. Capital budgets and any updates. II. COMPOSITION OF BOARD COMMITTEES
statutory section

3. Quarterly results for the Company and its operating divisions or business segments. Remuneration
4. M inutes of the meetings of the audit committee and other committees of the B oard. Investors Grievance Investment Share Transfer
Audit Committee & Nomination
Committee Committee Committee
5. The information or recruitment and remuneration of senior officers just below the board level,including Committee
appointment and removal of the Chief Financial Officer and the Company Secretary. Shri. Deepak Vaidya, Shri. Rajkumar Shri. N .Vaghul, Smt. Preetha Reddy, Smt. Preetha Reddy,
6. Show cause,demand,prosecution notices and penalty notices,w hich are materially important. Chairman M enon,Chairman M ember M ember M ember
7. Fatal or serious accidents,dangerous occurrences any material effluent or pollution problems. [Link], Smt. Preetha Reddy, Shri. Deepak Vaidya, [Link] Reddy, Shri. Rajkumar
8. Any material default in financial obligations to and by the Company or substantial non-payment for goods M ember M ember M ember M ember M enon,M ember
sold by the Company. [Link] Smt. Suneeta Reddy, [Link], Shri. N . Vaghul, Shri. Rafeeque
9. Any issue w hich involves possible public or product liability,claims of substantial nature including judgment M enon, M ember M ember M ember M ember Ahamed,M ember
or order w hich,may have passed strictures on the code of conduct of the Company or taken an adverse view
Shri. Sandeep N aik, Shri. Deepak Vaidya,
regarding another enterprise that can have negative implications on the Company.
business review

M ember1 M ember
10. Details of joint venture or collaboration agreements.
Shri. Shashank Shri. T.K. B alaji,
11. Transactions that involve substantial payment tow ards goodw ill,brand equity or intellectual property. Singh,M ember2 M ember
12. Significant labour problems and their resolutions. Any significant development on the H uman Resources /
Shri. Rafeeque
Industrial Relations front like signing of w age agreement,implementation of VRS scheme etc.
Ahamed,M ember
13. Sale of material nature such as investments, subsidiaries, assets w hich is not in the normal course of
1. Ceased to be a member w .e.f 9th N ovember 2012
business.
2. Appointed as a member w .e.f 9th N ovember 2012
14. Quarterly details of foreign exchange exposures and the steps taken by management to limit the risks of
adverse exchange rate movement,if material.
15. N on-compliance of any regulatory, statutory or listing requirements and shareholders service such as
non¬payment of dividend,delay in share transfers etc.

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1. AuditCom m ittee 4. Review ing, w ith the management, the annual financial statements before submission to the board for
approval,w ith particular reference to;
(a) Com position ofthe AuditCom m ittee
(a) M atters required to be included in the Director's Responsibility Statement to be included in the B oard's
The Company continued to derive immense benefit from the deliberations of the Audit Committee comprising of report in terms of clause 2AA of Section 217 of the Companies Act,1956.
performance highlights

the follow ing Independent Directors. (b) Changes,if any,in accounting policies and practices and reasons for the same.

1. Shri. Deepak Vaidya,Chairman (c) M ajor accounting entries involving estimates based on the exercise of judgement by management.
(d) Significant adjustments made in the financial statements arising out of audit findings.
2. Shri. G. Venkatraman
(e) Compliance w ith listing and other legal requirements relating to financial statements.
3. Shri. Rajkumar M enon (f) Disclosure of any related party transactions.
(g) Qualifications in the draft audit report.
The committee comprises of eminent professionals w ith expert know ledge in corporate finance. The M inutes of
5. Review ing, w ith the management, the quarterly financial statements before submission to the board for
each audit committee meeting are placed before and discussed by the B oard of Directors of the Company.
approval.
corporate review

(b) Meetings ofAuditCom m ittee 6. Review ing,w ith the management,performance of the statutory and internal auditors and adequacy of the
internal control systems.
The Audit Committee met five times during the year on 19" April 2012, 28th M ay 2012, 9th August 2012,
8th N ovember 2012 and 6th February 2013. 7. Review ing the adequacy of internal audit function, if any including the structure of the internal audit
department, staffing and seniority of the officials heading the department, reporting structure coverage
[Link] Name of the M ember D esignation Number of M eetings H eld Number of M eetings attended and frequency of internal audit.

1. Shri. Deepak Vaidya Chairman 5 3 8. Discussing w ith internal auditors any significant findings and follow up thereon.

2. Shri. G. Venkatraman M ember 5 5 9. Review ing the findings of any internal investigations by the internal auditors into matters w here there is
suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting
3. Shri. Rajkumar M enon M ember 5 5
the matter to the board.
statutory section

(c) Pow ers ofthe AuditCom m ittee 10. Discussion w ith statutory auditors before the audit commences about nature and scope of audit as w ell as
post-audit discussion to ascertain any area of concern.
The pow ers of the Audit Committee include the follow ing:
11. To look into the reasons for substantial defaults in payments to depositors,debenture holders,shareholders
1. To investigate any activity w ithin its terms of reference. (in case of non payment of declared dividends) and creditors.

12. To review the functioning of the W histle B low er M echanism,in case the same is existing.
2. To seek information from any employee.
13. Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.
3. To obtain outside legal or other professional advice.
14. The Audit Committee shall mandatorily review the follow ing information.
4. To secure attendance of outsiders w ith relevant expertise,if it considers necessary
(i) M anagement discussion and analysis of financial condition and results of operations.
business review

(d) Functions ofthe AuditCom m ittee (ii) Statement of significant related party transactions (as defined by the audit committee and submitted by
The role of the Audit Committee includes the follow ing: management)

(iii) M anagement letters / letters of internal control w eaknesses issued by the statutory auditors.
1. Oversight of the company's financial reporting process and the disclosure of its financial information to
ensure that the financial statements are correct,sufficient and credible. (iv) Internal audit reports relating to internal control w eaknesses;and

(v) The appointment/removal and terms of remuneration of the Internal Auditors shall be subject to review
2. Recommending to the B oard,the appointment,re-appointment and,if required,the replacement or removal
by the Audit Committee.
of the statutory auditor and the fixation of audit fees.
In addition to the areas noted above, the audit committee review s controls and security relating to the
3. Approval of payment to the statutory auditors for any other services rendered by the statutory auditors. Company's critical IT applications,the internal and control assurance audit reports of all major divisions
and profit centers and deviations from the code of business principle,if any.

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2. Rem uneration & Nom ination Com m ittee 3. Investm entCom m ittee
(a) Com position and Scope ofthe Rem uneration & Nom ination Com m ittee (a) Com position and Scope ofthe Investm entCom m ittee

The Remuneration & N omination Committee comprises of the follow ing Independent and N on Executive The Investment Committee comprises of a majority of Independent Directors and consists of the follow ing
performance highlights

Directors. members.

1. Shri. N . Vaghul 1. Smt. Preetha Reddy

2. Shri. Deepak Vaidya 2. Smt. Suneeta Reddy
3. Shri. G. Venkatraman 3. Shri.N . Vaghul
4. Shri. Shashank Singh and
4. Shri.T.K. B alaji and
5. Shri. Rafeeque Ahamed
5. Shri. Deepak Vaidya
The Scope of the Remuneration & N omination Committee includes the follow ing:
The scope of the Investment Committee is to review and recommend investments in new activities planned by
1. To submit recommendations to the B oard w ith regard to -
the Company.
corporate review

a) Filling up of vacancies in the B oard that might occur from time to time and appointment of additional
N on-Executive Directors. In making these recommendations, the Committee shall take into account (b) Meetings ofthe Investm entCom m ittee
the special professional skills required for efficient discharge of the B oard's functions; During the year, the Investment Committee met on 28th M ay 2012 and 7th February 2013. The attendance
details of the members are set out as follow s :
b) Retirement of Directors liable to retire by rotation;and

c) Appointment of Executive Directors. [Link] Name of the M ember D esignation Number of M eetings H eld Number of M eetings attended
1. Shri. N . Vaghul Chairman 2 2
2. To determine and recommend to the B oard from time to time -
2. Smt. Preetha Reddy M ember 2 2
a) the amount of commission and fees payable to the Directors w ithin the applicable provisions of the
3. Smt. Suneeta Reddy M ember 2 2
Companies Act,1956.
4. Shri. Deepak Vaidya M ember 2 2
b) the amount of remuneration,including performance or achievement bonus and perquisites payable to
statutory section

the Executive Directors 5. Shri. T.K. B alaji M ember 2 1

3. To frame guidelines for Rew ard M anagement and recommend suitable schemes for the Executive Directors
4. Investors' Grievance Com m ittee
and Senior M anagement and
(a) Com position and Scope ofthe Investors' Grievance Com m ittee
4. To determine the need for key man insurance for any of the company's personnel
The Shareholder/Investors' Grievance Committee specifically looks into issues such as redressing of
(b) Meetings ofthe Rem uneration & Nom ination Com m ittee shareholders' and investors' complaints such as transfer of shares, non-receipt of shares, non-receipt of
During the year, the Remuneration & N omination Committee met on 20th April 2012, 29th M ay 2012 and 9th declared dividends and ensuring expeditious share transfers.
N ovember 2012. This Committee comprises of the follow ing Directors:-

Number of Number of 1. Shri. Rajkumar M enon,Chairman

[Link] Name of the M ember D esignation
business review

M eetings H eld M eetings attended

1. Shri. N . Vaghul Chairman 3 3 2. Smt. Preetha Reddy and
3. Smt. Suneeta Reddy
2. Shri. Deepak Vaidya M ember 3 1
(b) Meetings ofthe Investors Grievance Com m ittee
3. Shri. G. Venkatraman M ember 3 3
The Committee met four times during the year on 5th April 2012, 7th July 2012, 5th October 2012 and 7th
4. Shri. Sandeep N aik M ember 2 2
January 2013.
(ceased to be a member w .e.f 9th N ovember 2012)
5. Shri. Shashank Singh M ember 1 -
(appointed as a member w .e.f 9th N ovember 2012)
6. Shri. Rafeeque Ahamed M ember 3 -

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All details relating to financial and commercial transactions, w here directors may have a potential interest are
[Link] Name of the M ember D esignation Number of M eetings H eld Number of M eetings attended
provided to the B oard and the interested Directors neither participate in the discussion,nor do they vote on such
1. Shri. Rajkumar M enon Chairman 4 4
matters. The Audit Committee of the Company also review s related party transactions periodically.
2. Smt. Preetha Reddy M ember 4 4
performance highlights

3. Smt. Suneeta Reddy M ember 4 4 (B) Accounting Treatm ent

The Company follow s Accounting Standards issued by the Institute of Chartered Accountants of India and in
N ame and designation of the Compliance Officer:- preparation of financial statements,the Company has not adopted a treatment different from that prescribed by any
Accounting Standard.
Shri. S.M . Krishnan,Sr. General M anager – Finance and Company Secretary.

(C) Risk Managem ent

(5) Share Transfer Com m ittee
B usiness Risk Evaluation and management of such risks is an ongoing process w ithin the organization. The B oard
Com position and Scope ofthe Share Transfer Com m ittee
has constituted a Risk M anagement Committee headed by the M anaging Director w hich review s the probability of
The Share transfer committee comprises of the follow ing directors: risk events that adversely affect the operations and profitability of the Company and suggest suitable measures to
corporate review

mitigate such risks.

1. Smt. Preetha Reddy
A Risk M anagement Framew ork is already in place and the Executive M anagement reports to the B oard periodically
2. Shri. Rajkumar M enon and on the assessment and minimization of risks.

3. Shri. Rafeeque Ahamed,

(D) Proceeds ofPublic,Rights and PreferentialIssues
The Share Transfer Committee,constituted by the B oard has been delegated pow ers to administer the follow ing:-
The Company has allotted:
ǩ7R HIIHFWWUDQVIHURIVKDUHV
ǩ  PLOOLRQ HTXLW\ VKDUHV WR ,QWHUQDWLRQDO )LQDQFH &RUSRUDWLRQ :DVKLQJWRQ RQ WK -XQH  XSRQ
ǩ7R HIIHFWWUDQVPLVVLRQRIVKDUHV conversion of 750 Foreign Currency Convertible B onds (FCCB s) of U SD 10,000 each aggregating to U SD 7.50
million at a price of ` 302.50 per share of ` 5/- each including premium of ` 297.50 per share w hich is an increase
ǩ7R LVVXHGXSOLFDWHVKDUHFHUWLȌFDWHVDVDQGZKHQUHTXLUHGDQG
statutory section

of 14% over the floor price determined as per the FEM A guidelines and Issue of Foreign Currency Convertible
ǩ7R FRQȌUPGHPDWUHPDWUHTXHVWV B onds and Ordinary Shares (Through Depository Receipt M echanism) Scheme,1993) and in accordance w ith the
The Committee,attends to share transfers and other formalities once in a fortnight terms of the FCCB loan agreement dated 18th June 2009. Post this conversion,there are no outstanding FCCB s
w ith the Company.

III. SUBSIDIARIES ǩ  HTXLW\ VKDUHV WR 'U 3UDWKDS & 5HGG\ RQH RI WKH SURPRWHUV RI WKH &RPSDQ\ XSRQ FRQYHUVLRQ RI
As per the revised Clause 49 of the Stock Exchange Listing Agreement,your Company does not have any material w arrants issued to him at a price of ` 472.46 per share of ` 5/- each including premium of ` 467.46 per share on
non-listed Subsidiary Company w hose turnover or netw orth exceeded 20% of the consolidated turnover or netw orth 25th July 2012.
respectively of the Company and its subsidiaries in the immediately preceding accounting year.
The Audit Committee review s the utilization of proceeds on a quarterly basis.

IV. DISCLOSURES (E) Managem ent

business review

The M anagement's Discussion and Analysis Report is appended to this report.

(A) Related Party Transactions
There w ere no materially significant related party transactions, pecuniary transactions or relationships betw een
(F) Shareholders
the Company and its directors,promoters or the management that may have potential conflict w ith the interests of
the Company at large except the details of transactions disclosed in N otes forming part of the Accounts as required
(1) Disclosures regarding appointm entor re-appointm entofDirectors
under Accounting Standard 18 of the Institute of Chartered Accountants of India,and all related party transactions
As per the Companies Act,1956,atleast tw o thirds of the B oard should consist of retiring Directors,of these
are negotiated on an arms length basis.
atleast one third are required to retire every year.
During the year,the Company has allotted 3,276,922 equity shares to Dr. Prathap C Reddy one of the promoters of
Except the Chairman and the M anaging Director,all other Directors are liable to retire by rotation as per the
the company as disclosed in Clause IV (D) of the report.
provisions of the Companies Act,1956.

annual report 2012–13

70 71
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

During the year, Shri. H abibullah B adsha, Shri. Khairil Anuar Abdullah, Smt. Suneeta Reddy and For matters regarding shares transferred in physical form,share certificates,dividends,change of address
Smt. Shobana Kamineni w ill retire and are eligible for re-appointment at the ensuing Annual General etc.,shareholders should send in their communications to Integrated Enterprises (India) Ltd,our registrar
M eeting. and share transfer agent. Their address is given in the section on Shareholder Information.
performance highlights

The detailed resumes of all these directors are provided as part of the N otice of the Annual General
(4) Details ofNon-Com pliances
M eeting.
There are no non-compliances by the Company and no penalties or strictures have imposed on the Company
by the Stock Exchanges or SEB I or any statutory authority,on any matter related to capital markets,during
(2) Means ofCom m unication
the last three years.
The unaudited quarterly/half yearly financial statements are announced w ithin forty five days from the
end of the quarter. The aforesaid financial statements are taken on record by the B oard of Directors and
(5) GeneralBody Meetings
are communicated to the Stock Exchanges w here the Company's securities are listed. Once the Stock
Exchanges have been intimated,these results are communicated by w ay of a Press Release to various new The location,date and time of the Annual General M eetings held during the preceding three years are given below :
agencies/analysts and published w ithin 48 hours in tw o leading daily new spapers - one in English and one
Year D ate Venue Time SpecialResolutions Passed
corporate review

in Vernacular language.
2009-2010 July 26, Kamaraj 10.00 A.M . ǩ6XEGLYLVLRQ RI HDFK H[LVWLQJ HTXLW\ VKDUH RI IDFH YDOXH
The audited annual results are announced w ithin tw o months from the end of the last quarter as stipulated 2010 Arangam, of ` 10/- each into 2 equity shares of face value of ` 5/-
under the Listing Agreement w ith the Stock Exchanges. For the financial year ended 31st M arch 2013, Chennai each
the audited annual results w ere announced on 20th M ay 2013. The audited annual results are taken on
ǩ$OWHUDWLRQRI0HPRUDQGXPDQG$UWLFOHVRI$VVRFLDWLRQWR
record by the B oard of Directors and are communicated to the Stock Exchanges w here these results are
give effect to the subdivision of equity shares
communicated by w ay of a Press Release to various new s agencies/analysts and are also published w ithin
2010-2011 J a n u a r y Chinmaya 11.00 A.M . ǩ,QFUHDVLQJWKH$XWKRUL]HG6KDUH&DSLWDORIWKH&RPSDQ\
48 hours in tw o leading daily new spapers - one in English and one in Tamil. The audited financial results
22, 2011 H eritage from ` 850 million to ` 1,100 million and consequential
form a part of the Annual Report w hich is sent to the Shareholders prior to the Annual General M eeting.
(EGM ) Centre, amendments to the M emorandum and Articles of
The Company also informs by w ay of intimation to the Stock Exchanges all price sensitive matters or such Tapovan H all, Association of the Company.
other matters w hich in its opinion are material and of relevance to the shareholders. Chennai
ǩ 5DLVLQJ RI IXQGV E\ ZD\ RI HTXLW\ WKURXJK 4XDOLȌHG
statutory section

The quarterly/half yearly and the annual results of the company are uploaded on the Company's w ebsite Institutional Placement (QIP) Scheme.
w w w .[Link].
ǩ,VVXHRIXSWRFRQYHUWLEOHZDUUDQWVWR'U3UDWKDS
Rem inder to Investors: Reminders for unclaimed dividend/interest are sent to the shareholders as per C Reddy, Promoter of the Company on a preferential
records every year. allotment basis
2010-2011 July 22, Kamaraj 10.15 A.M . N o Special resolutions w ere passed.
NSE Electronic Application Processing System (NEAPS) :The N EAPS is a w eb based application designed
2011 Arangam,
by N SE for corporates. All periodical compliance filings like shareholding pattern,corporate governance
Chennai
report are filed electronically on N EAPS.
2011-2012 9th August Kamaraj 11.00 A.M . Payment of remuneration equivalent to 5% of the net
SEBI Com plaints Redress System (SCORES) :The investor complaints are processed in a centralized w eb 2012 Arangam, profits of the company to Dr. Prathap C Reddy,Permanent
based complaints redress system. The salient features of this system are : Centralised database of all Chennai Chairman for a period of five years w ith effect from 25th
business review

complaints,online upload of Action Taken Reports (ATRs) by the concerned companies and online view ing June 2012
by investors of action taken on the complaints and the current status.
(6) PostalBallots

(3) Investors' Grievances and Share Transfer During the year there w ere no ordinary or special resolutions passed by the members through Postal
B allot.
As mentioned earlier, the Company has a B oard-level Investors Grievance Committee to examine and
redress shareholders and investors'complaints. The status on complaints and share transfers is reported V. CEO/CFO Certification
to the Committee. The details of shares transferred and nature of complaints is provided in the Additional
As required by Clause 49 of the Listing Agreement,the certificate from Smt. Preetha Reddy,M anaging Director
information to shareholders section of the Annual Report.
and Smt. Suneeta Reddy,Joint M anaging Director w as obtained and placed before the B oard of Directors at their
meeting held on 20th M ay 2013.

annual report 2012–13

72 73
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

VI. Com pliance w ith Corporate Governance Norm s (iii) Date of B ook Closure 27th July 2013 to 7th August 2013 (both days inclusive)

(i) Mandatory Requirem ents (iv) Dividend Payment On or before 17th August 2013

The Company has complied w ith all the mandatory requirements of Corporate Governance norms as enumerated (v) Listing of
performance highlights

in Clause 49 of the Listing Agreement w ith the Stock Exchanges.

(1) Equity Shares (i) B ombay Stock Exchange Ltd (B SE)
Phiroze Jheejheebhoy Tow ers,Dalal Street
(ii) Non-Mandatory Requirem ents
M umbai – 400 001
The status of compliance in respect of non-mandatory requirements of Clause 49 of Listing Agreement is as Tel :91-22-2272 1234,1233 Fax :91-22-2272 3353/3355
follow s:- W ebsite :w w w .[Link]

(ii) N ational Stock Exchange of India Limited (N SE)

1. The Board
Exchange Plaza,B andra-Kurla Complex,B andra (E),
(a) There is no N on-Executive Chairman for the Company.
M umbai – 400 051
corporate review

(b) N o specific tenure has been specified for any of the Independent Directors. Tel :91-22-2659 8100 - 8114 Fax :91-22-26598237/38
W ebsite :w w w .[Link]

2. Rem uneration Com m ittee: (2) GDRs EuroM TF of Luxembourg Stock Exchange,
Details are given under the heading 'Remuneration & N omination Committee'. B P 165 L-2011 Luxembourg
Traded at :N asdaq – Portal M arket
3. Shareholder Rights:
(3) N on Convertible Debentures W holesale Debt M arket Segment of
Details are given under the heading 'Communication to Shareholders' N ational Stock Exchange of India Limited
Exchange Plaza,B andra-Kurla
4. AuditQualifications : Complex,B andra (E),M umbai – 400 051
During the year under review ,there w as no audit qualification in the Company's financial statements. Tel :91-22-2659 8100 - 8114 Fax :91-22-26598237/38
statutory section

W ebsite :w w w .[Link]
The Company has not adopted non-mandatory requirements such as training of board members,mechanism
for evaluating the non-executive board members and w histle blow er policy. H ow ever the Company has fully (4) Listing Fees Paid for all the above stock exchanges for 2012-2013 and
complied w ith SEB I guidelines relating to Corporate Governance in respect of compliance of mandatory 2013-2014
requirements.
(vi) Address of Registered Office N o. 19 B ishop Gardens,Raja Annamalaipuram,
Chennai – 600 028.
VII. AUDITORS REPORT ON CORPORATE GOVERNANCE
(vii) a) Stock Exchange Security Code for
As required by Clause 49 of the Listing Agreement, the auditors' certificate is given as an annexure to the
Directors Report. (1) Equity Shares

(i) The B ombay Stock Exchange (i) 508869

business review

GeneralShareholders' inform ation

Limited,M umbai
(i) AGM date,time and venue 7th August 2013 at 11.00 a.m.
(ii) N ational Stock Exchange of (ii) APOLLOH OSP
The M usic Academy,N ew N o. 168,(Old N o.306),T.T.K. Road,
India Limited, M umbai
Royapettah,Chennai 600 014.
(2)GDRs
(ii) Financial Calendar
1st Quarter 1st April to 30th June (i) Luxembourg Stock Exchange U S0376082055
2nd Quarter 1st July to 30th September
(ii) N asdaq – Portal M arket AH ELYP05
3rd Quarter 1st October to 31st December
4th & last Quarter 1st January to 31st M arch

annual report 2012–13

74 75
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

(3)N on Convertible Debentures ix. Apollo Share Price Vs Nifty

a) N ational Stock Exchange of APOL 17,APOL20,APOL21 950 - - 6200
900 - - 6100
India Limited, M umbai 850 - Apollo
performance highlights

800 - - 6000
b) Demat ISIN N umbers in N SDL IN E437A01024 750 - - 5900
& CDSL for Equity Shares 700 -
- 5800
650 - Nifty
c) ISIN N umbers of GDRs Reg. S GDRs – U S0376082055 600 - - 5700
550 - - 5600
Rule 144a GDRs – U S0376081065
500 -
- 5500
450 -
d) ISIN N umbers of Debentures IN E437A07062,IN E437A07070 - 5400
400 -
IN E437A07088 & IN E437A07096 350 - - 5300
NSE Nifty

300 -

Apollo in Price
e) Overseas Depositary for GDRs The B ank of N ew York M ellon - 5200
250 -
200 - - 5100
corporate review

101 B arclay Street,22W ,N ew York,N Y 10286

150 - - 5000
f) Domestic Custodian for GDRs ICICI B ank Limited 100 -
50 - - 4900
Securities M arkets Services
0- - 4800
1st Floor,Empire Complex,414 Senapati B apat M arg,
Low er Parel,M umbai – 400 013
Tel. +91-22-6667 2026 Fax +91-22-6667 2779/2740
Jul - 2012
Oct - 2012

Apr - 2012
Jan - 2013
Feb - 2013

Jun - 2012
Sep - 2012
Dec - 2012

N ov - 2012

Aug - 2012
M ar - 2013

M ay - 2012
g) Trustee for Debenture H olders Axis Trustee Services Limited M onth Apollo Nifty
2nd floor,Axis B ank B uilding,B ombay Dyeing,
x. Registrar & Share Transfer Agent
Pandurang B hudkar M arg,W orli,M umbai - 400025
Integrated Enterprises (India)Lim ited
Tel. +91-22- 24255212 Fax +91-22-6667 2779/2740
“Kences Tow ers”,II Floor,N o.1 Ramakrishna Street,N orth U sman Road,T. N agar,Chennai – 600 017
statutory section

viii. Monthly High and Low quotations along w ith the volum e ofshares traded in NSE & Tel. N o.:044 – 2814 0801,2814 0803 Fax N o.:044 – 2814 2479 E-mail: sureshbabu@[Link]
BSE during the year 2012-2013
xi 1. Share Transfer System
M onth NationalStock Exchange (NSE) The Bombay Stock Exchange,(BSE) Share transfer requests for shares held in physical form received by the Company are processed and share
H igh Low Volume H igh Low Volume certificates are returned w ithin the stipulated time under the Companies Act,1956 and the listing agreement,

(`) N umbers (`) N umbers provided that the documents received are in order and complete in all respects. Delays beyond the stipulated
period w ere mainly due to disputes over the title to the shares.
Apr-2012 644.65 598.25 1,713,278 640.95 595.00 116,260
M ay-2012 687.00 603.20 3,367,548 687.65 603.00 284,952 The shares transferred (in physical form) during the year are as under.
Jun-2012 697.40 605.00 1,682,416 697.75 605.25 295,504
Jul-2012 661.95 607.70 3,474,089 659.40 606.00 217,023 2012-2013 2011-2012
business review

Aug-2012 661.95 607.05 2,132,925 645.00 609.00 803,764 (face value of ` 5/-) (face value of ` 5/-)

Sep-2012 751.00 618.00 3,811,893 750.00 618.15 367,840 Shares Transferred 20,874 42,537

Oct-2012 814.00 725.00 4,851,501 811.95 720.85 441,362 Total N o. of Shares as on 31st M arch 139,125,159 134,466,618
N ov-2012 902.05 758.10 16,478,237 902.85 759.00 6,310,588 % on Share Capital 0.02 0.03
Dec-2012 828.00 781.00 3,594,124 836.55 784.25 447,632 The Company obtains from a Company Secretary in Practice a half-yearly certificate of compliance w ith the
Jan-2013 827.95 766.60 4,317,224 819.90 767.10 325,791 share transfer formalities as required under Clause 47(c) of the Listing Agreement w ith Stock Exchanges and
Feb-2013 857.95 784.15 3,123,542 857.55 786.10 12,073,608 files a copy of the certificate w ith the Stock Exchanges.
M ar-2013 882.00 781.25 1,953,498 875.00 782.95 871,235

annual report 2012–13

76 77
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

2. Shareholders’Services xii1) Categories ofshareholders as on March 31,2013

The status on the total number of requests / complaints received during the year w as as follow s:
Category Category of Shareholder Totalnumber Percentage to

[Link]. Nature of Complaints/Requests Received Replied Pending code of shares [Link] shares
performance highlights

1. Change of Address 147 147 -- (A) Shareholding of Promoter and Promoter Group
1 Indian
2. Revalidation and issue of duplicate dividend 153 153 --
(a) Individuals/ H indu U ndivided Family 23,070,530 16.58
w arrants
(b) B odies Corporate 24,717,924 17.77
3. Share transfers 114 114 --
Sub Total(A) (1) 47,788,454 34.35
4. Split of Shares 4 4 --
TotalShareholding of Promoter and Promoter Group 47,788,454 34.35
5. Change of B ank M andate 111 111 --
(B) Public shareholding
6. Correction of N ame 5 5 --
1 Institutions
7. Dematerialisation Confirmation 428 428 -- (a) M utual Funds/ U TI 2,314,854 1.66
8. Rematerialisation of shares 9 9 -- (b) Financial Institutions / B anks 8,204 0.01
corporate review

9. Issue of duplicate share certificates 12 12 (c) Central Government/ State Government(s) 323,708 0.23
10. Transmission of shares 47 47 -- (d) Insurance Companies 1,369,440 0.98
11. General enquiry 201 201 -- (e) Foreign Institutional Investors 58,153,637 41.80
The Company usually attended to investor grievances/correspondence w ithin a period of 2 days from the date Sub-Total(B) (1) 62,169,843 44.68
of receipt of the same during the financial year, except in cases that w ere constrained by disputes and legal B2 Non-institutions
impediments. (a) B odies Corporate 1,512,728 1.09
(b) Individuals
3) LegalProceedings i. Individual shareholders holding nominal share capital 6,946,832 4.99
There are five pending cases relating to dispute over the title to shares,in w hich Company had been made a up to ` 1 lakh
party. H ow ever these cases are not material in nature. ii. Individual shareholders holding nominal share 292,918 0.21
capital in excess of ` 1 lakh.
statutory section

4) Change ofAddress,Bank Details,Nom ination etc. ( c) Any O ther

All the members are requested to notify immediately any change in their address,email id,bank mandate and Trusts 117,970 0.08
nomination details to the Company’s Registrar and Share Transfer Agents,Integrated Enterprises (I) Limited. Directors and their relatives 91,606 0.07
M embers holding shares in electronic segment are requested to notify the change of address,email id,bank N on Resident Indians 1,846,966 1.33
details,nomination etc to the depository participants (DP) w ith w hom they maintain client accounts for effecting Overseas Corporate B odies 16,199 0.01
necessary corrections. Any intimation made to the Registrar w ithout effecting the necessary correction w ith the Clearing M ember 68,613 0.06
DP cannot be updated. It is therefore necessary on the part of the shareholders to inform changes to their DPs H indu U ndivided Families 127,122 0.09
w ith w hom they have opened the accounts. Foreign Corporate B odies 17,377,359 12.49
Sub-Total(B)(2) 28,398,313 20.42
5) Transfer ofunclaim ed am ounts to the Investor Education and Protection Fund (B) TotalPublic Shareholding (B) = (B)(1)+(B)(2) 90,568,156 65.10
During the year, the Company has transferred a sum of ` 1.60 million in aggregate w hich comprises TO TAL (A)+(B) 138,356,610 99.45
business review

` 1.59 million as unclaimed dividend and ` 0.01 million as unclaimed deposit to the Investor Education and (C) GlobalD epository Receipts (GD Rs)
Protection Fund pursuant to Section 205C of the Companies Act,1956 and the Investor Education and Protection (1) Promoter and Promoter Group -
Fund (Aw areness and Protection of Investor) Rules,2001. (2) Public 768,549 0.55
(C) TotalPublic Shareholding (C)= (C)(1)+(C)(2) 768,549 0.55
GRAND TO TAL (A)+(B)+(C) 139,125,159 100.00

annual report 2012–13

78 79
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

2) Distribution ofShareholdings as on 31stMarch 2013 xiv Outstanding GDRs or Warrants or any convertible instrum ent,conversion dates and
Shares H olders
likely im pacton equity
[Link]
Physical Electronic Physical Electronic Pursuant to the resolution passed by the members in an Extraordinary General M eeting held on 24th M ay
Equity Shares
performance highlights

Nos. % Nos. % Nos. % Nos. % 2005,the Company had issued 9,000,000 Global Depositary Receipts (GDRs) and the details of GDRs issued and
1 500 1,205,124 0.87 1,827,392 1.31 8,036 24.06 21,868 65.48 converted and outstanding (after adjusting the split of face value of ` 5/- per share) as on 31st M arch 2013 are
501 1000 500,254 0.36 781,244 0.56 659 1.97 1,014 3.04 given below :
1001 2000 561,882 0.40 697,270 0.50 329 0.99 444 1.33
Particulars Nos.
2001 3000 362,150 0.26 354,134 0.25 136 0.41 139 0.42
3001 4000 377,634 0.27 336,741 0.24 106 0.32 93 0.28 Total GDRs issued 18,000,000
4001 5000 79,454 0.06 158,304 0.11 17 0.05 34 0.10 Add :Equity Shares converted into GDRs during the year 2011-2012 7,689,329
5001 10000 827,336 0.59 697,958 0.50 104 0.31 98 0.29 Equity Shares converted into GDRs during 2012-2013 10,949
10001 above 585,310 0.42 129,772,972 93.28 23 0.07 295 0.88 Less :GDRs converted into underlying equity shares
Total 4,499,144 3.23 134,626,015 96.77 9,410 28.18 23,985 71.82 2005-2006 4,415,068
corporate review

Grand Total 139,125,159 33,395 2006-2007 2,346,712

GDRs : 2007-2008 1,515,600
The details of high / low market prices of the GDRs at the Luxembourg Stock Exchange and Rule 144 A GDRs at the 2008-2009 347,020
Portal M arket of N ASDAQ during the financial year 2012-2013 are as under 2009-2010 49,600
2010-2011 6,263,200
M onth Reg.S Rule 144 - A
2011-2012 5,396,660
H igh ($) Low ($) Closing ($) H igh ($) Low ($) Closing ($)
Apr-2012 12.28 11.43 11.96 12.26 11.42 11.93 2012-2013 4,597,869 24,931,729
M ay-2012 12.06 11.19 11.93 12.17 11.22 11.89 Outstanding GDRs as on 31st M arch 2013 768,549
Jun-2012 12.34 10.71 11.06 12.26 10.71 11.11 There is no change in the issued equity on conversion of GDRs into equity shares
Jul-2012 11.79 10.97 11.33 11.81 10.93 11.32
Aug-2012 11.55 10.96 11.30 11.54 11.00 11.34 xv. Investors Correspondence
statutory section

Sep-2012 13.86 11.30 13.86 13.78 11.28 13.78

a. For queries relating to shares
Oct-2012 15.12 13.84 14.50 15.10 13.85 14.49
M r. Suresh B abu,Asst. Vice President
N ov-2012 16.24 14.22 15.06 16.25 14.23 15.05
Integrated Enterprises (India) Limited
Dec-2012 15.15 14.37 14.37 15.15 14.35 14.35
“Kences Tow ers”,II Floor,N o.1 Ramakrishna Street,
Jan-2013 15.20 14.35 15.20 15.11 14.38 15.11
N orth U sman Road,T. N agar,Chennai – 600 017
Feb-2013 15.93 14.70 15.20 15.90 14.71 15.20
M ar-2013 15.62 14.51 15.44 15.78 14.56 15.36 Tel. N o.:044 – 2814 0801,2814 0803,Fax N o.:044 – 2814 2479

N ote :1 GDR = 1 equity share. E-mail : sureshbabu@[Link]

b. For queries relating to dividend
xiii 1) Dem aterialization ofShares
Shri. L. Lakshmi N arayana Reddy
As on 31st M arch 2013,96.77% of the Company’s paid up equity capital w as held in dematerialized form. Trading
Sr. General M anager -Secretarial
business review

in equity shares of the Company is permitted only in dematerialized form as per a notification issued by the
Apollo H ospitals Enterprise Limited,Ali Tow ers,III Floor,N o. 55,Greams Road,Chennai -600 006.
Securities and Exchange B oard of India (SEB I).
Tel. N o.:044 -2829 0956,2829 3896,Fax N o.:044 -2829 0956,
2) Reconciliation ofShare CapitalAuditReport E-mail :apolloshares@[Link],lakshminarayana_r@[Link]
As stipulated by the Securities and Exchange B oard of India,a qualified Practicing Company Secretary carries
out the Audit to reconcile the total admitted capital w ith N ational Securities Depository Limited (N SDL) and Designated Exclusive em ail-id:
Central Depository Services (India) Limited (CDSL) and the total listed and paid up capital. This audit is carried The company has designated the follow ing email-id exclusively for investor grievances/services.
out every quarter and the report thereon is submitted to the Stock Exchanges and is also placed before the [Link]@[Link]
B oard of Directors. The audit,interalia,confirms that the total listed and paid up capital of the Company is in
agreement w ith the aggregate of the total number of shares in dematerialised form (held w ith N SDL and CDSL)
and total number of shares in physical form.

annual report 2012–13

80 81
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

xviHospitalCom plexes O ther H ealth Centres

Apollo H ospitals Group W oodhead Tow er,N o. 12 CP Ramasw amy Road,Alw arpet,Chennai – 600 018 . Tel :044 - 24672200 / 24988866

Chennai N o. 21 & 24 Greams Lane,Off. Greams Road,Chennai 600 006. Tel:044 2829 3333/ 28290200 Apollo H eart Centre,# 156,Greams Road,Chennai – 600 006. Tel :044 2829 6923
performance highlights

N o. 320 Anna Salai,N andanam,Chennai 600 035. Tel :044 2433 1741,2433 6119,4229 1111 Apollo M edical Centre,Plot N o. C-150,6th Cross,Thillai N agar,Trichy – 620 018. Tel.:0431-2740864

N o. 646 T.H . Road,Tondiarpet, Chennai – 600 081. Tel :044 2591 3333,2591 5858 Apollo Emergency Centre,Rajiv Gandhi International Airport,Samshabad H ospital. Tel.:040-2400 8346

N o.159 E.V.R. Periyar Salai,Chennai – 600 010. Tel :044 2821 1111,2821 2222 Apollo Gleneagles Clinic,48/1F,Leela Roy Sarani,Ghariahat,Kolkata – 700 019 Tel :033 2461 8028

Apollo Children H ospital,15-A Shafi M ohammed Road,Chennai – 600 006 City Center,1 Tulsibaug Society,Opp. Doctor H ouse,Ellisbridge,Ahmedabad – 380 006 Tel. N o. 079 6630 5800
Tel :044 2829 8282,2829 6262 Apollo Clinic,KR 28,VIP Road,Port B lair,Andaman 744 101 Tel :03192 233550
N ew N o. 6,Old N o. 24,Cenotaph Road,Chennai – 600 018. Tel :044 2433 4455
N o. 134,M int Street,Sow carpet,Chennai – 600 079. Tel :044 2529 6080/84
N o.64,Vanagaram to Ambattur M ain Road,Chennai 600 095. Tel :044-2653 7777 DECLARATION UNDER CLAUSE 49 OF THE LISTING AGREEMENT
M adurai Lake View Road,K.K.N agar,M adurai 625 020. Tel :0452 – 2580 199/2580 892/ 893 REGARDING ADHERENCE TO THE CODE OF CONDUCT
corporate review

Karur Apollo Loga H ospital,N o. 163,Allw yn N agar,Kovai Road,Karur – 639 002. Tel :04324-241900
Karaikudi M anagiri Sukkanenthal Village,Thalakkavur Panchayat,Kallal Panchayat U nion,
Karaikudi – 630 001. Tel :04565 - 237788 / 235588 I, Preetha Reddy, M anaging Director of the Company, hereby declare that the B oard of Directors has laid dow n a
Code of Conduct for its B oard M embers and Senior M anagement Personnel of the Company and the B oard M embers
Aragonda Thavanampallee M andal,Chittoor District,Andhra Pradesh – 517 129.
and Senior M anagement Personnel have affirmed compliance w ith the said code of conduct.
Tel :08573-283 220,221,222,231
H yderabad #8-2-293/82-J-III/DH /900,Phase III - Jubilee H ills,H yderabad 500 033. Tel :040-2360 7777 For APOLLO HOSPITALS ENTERPRISE LIMITED
H .N o. 3-5-836,837 & 838 Old M LA Quarters,H yderguda,H yderabad – 500 029
Tel.:040-2323 1380,2338 8338 Place :Chennai PREETHA REDDY
Apollo H ospitals – DRDO,# 18-14,DM RL ‘X’Roads,Kanchanbagh,H yderabad – 500 058 Date :20th M ay 2013 M anaging Director
Tel. N o. 040 – 2434 2222 / 2211 / 3333
# 22-1-26/1 & 22-1-25/1 B hagyanagar Colony,Kukatpally,H yderabad – 500 072
statutory section

Tel. N o. 040 – 2316 0039/41

PET-CT Scan Centre,Apollo H ospitals Complex,Jubilee H ills,H yderabad – 500 033
Tel.N o. :040-2360 7777
H -N o. 9-1-87/1,Polisetty Tow ers,St. Johns Road,Secunderabad – 500 003
Tel. N o. 040-2771 8888
Karim Nagar Apollo Reach H ospital,H .N o.G.P.N o.4-72,Theegalgutta Pally,G.P. Arepally Rev. Village,
Karim N agar. Tel. N o.0878 220 0000
Visakapatnam N o.10-50-80 W altair M ain Road,Visakapatnam – 530 002 Tel.N o.0891-272 7272,252 9619
Kakinada H -N o. 13-1-3 Surya Rao Peta,M ain Road,Kakinada – 533 001
Tel.N o. 0884 – 2345 700/800/900
business review

M ysore Apollo B GS H ospitals,Adichunchanagiri Road,Kuvempu N agar,M ysore – 570 023

Tel. N o. 0821 – 256 6666,256 8888
Bilaspur Lingiyadi Village,B ilaspur – 495 001,Chattisgarh. Tel :07752–240390 /243300-02
Bhubanesw ar #251,Sainik School,U nit 15,B hubanesw ar – 751 003 Tel :0674 - 2304400 / 6661066
Bangalore 154/11 B annerghatta Road,Opp. IIM ,B angalore – 560 076. Tel. N o. 080-4030 4050
Ahmedabad Plot N o.1A,GIDC Estate,B hat Village,Gandhi N agar,Gujarat – 382 428 Tel :079-6670 1800
Kolkata N o. 58,Canal Circular Road,Kolkata – 700 054. Tel :033-2320 3040
New D elhi Sarita Vihar,Delhi M athura Road,N ew Delhi 110 044. Tel. N o. 011-2692 5858

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auditors’report managementdiscussion
performance highlights

on corporate governance andanalysis

GENERAL OVERVIEW OF HEALTHCARE SERVICES IN INDIA
To
A combination of factors such as favourable fundamentals, population demographics and increasing consumer
The M embers,
demand have helped the healthcare industry experience robust grow th over the last decade. Apart from an expansion
Apollo H ospitals Enterprise Limited
in the number of facilities and increased geographical reach,the industry has also made good progress in adopting
W e have examined the compliance of conditions of Corporate Governance by Apollo H ospitals Enterprise Limited, new technologies,upgradation of skills,competence levels of Indian medical practitioners,setting up of w orld class
corporate review

for the year ended on 31st M arch 2013,as stipulated in Clause 49 of the Listing Agreement of the said Company w ith hospitals and ability to attract medical value travellers.
the Stock Exchanges in India.
This has also been aided by some important structural reforms introduced by the government in the last decade w ith
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination a goal of creating access to a minimum standard of healthcare services for all.
w as limited to procedures and implementation thereof,adopted by the Company for ensuring the compliance of the
Though there has been good progress in recent years, the healthcare sector in India continues to face several
conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements
challenges. In terms of hospital infrastructure and manpow er,India ranks below most other developing countries in
of the Company.
terms of key healthcare adequacy metrics.
In our opinion and to the best of our information and according to the explanations given to us,w e certify that the
W hile the public sector dominated the industry for a majority of the post-Independence era,over the last tw o decades
Company has complied w ith the conditions of Corporate Governance as stipulated in the above mentioned Listing
the private sector in India has been the key engine for capacity addition and improvements in quality. This has led to
Agreement.
a transformation in the profile of the sector.
statutory section

W e further state that such compliance is neither an assurance as to the future viability of the Company nor the
H ow ever,significant progress remains to be made in order for the country to match global benchmarks. Progress
efficiency or effectiveness w ith w hich the management has conducted the affairs of the Company.
on this front w ill depend on the nature of reforms introduced by the Government as also its implementation. The
H ealthcare Industry w ill need to demonstrate resoluteness as w ell as continuous focus on innovation. India’s health
sector,though unique and complex,offers a remarkable opportunity.
17,B ishop W allers Avenue (W est) For M/s. S. VISWANATHAN
CIT Colony,M ylapore Chartered Accountants
THE HEALTHCARE SERVICES DELIVERY LANDSCAPE IN INDIA
Chennai – 600 004
According to the W orld H ealth Organisation's (W H O) report on w orld health statistics 2012, India improved life
V.C. KRISHNAN expectancy for the average citizen from 58 years in 1990 to 65 years in 2009. The Infant M ortality Rate has reduced
Place :Chennai Partner from 81 per 1,000 in 1990 to 48 per 1,000 in 2010. W hile there has been an improvement on several parameters over
Date :20th M ay 2013 the last tw o decades,India continues to trail most of its regional peers.
business review

Of significant concern is the fact that H ealthcare spends are not grow ing at the same pace as the GDP. India’s
healthcare spending as a percentage of GDP reduced from 4.4% in 2000 to 4.0% in 2010. This implies that,in nominal
terms,India’s healthcare expenditure has been grow ing at a slow er rate than the country’s GDP.

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performance highlights
corporate review

Due to low public expenditure and underutilization of allotted resources,the private sector accounts for around 68%
H ow ever,Government efforts gained momentum w ith the adoption of millennium development goals.
of the total healthcare expenditure in India. This constitutes one of the highest proportions of private healthcare
spending in the w orld. In fact,betw een 2002 and 2010,the private sector w as responsible for over 70% of incremental The past decade also w itnessed implementation of several pilots relating to public-private partnerships,particularly
capacity thereby increasing its share of beds from 49% in 2002 to 63% in 2010. (Source:M cKinsey) in hospitals and diagnostic services. It is now an accepted model for State governments to collaborate w ith the private
sector through Public Private Partnerships (PPP) models to improve operational efficiencies. These partnership
initiatives range from primary care hospitals to super-speciality care hospitals.

H ow ever,Infrastructure gaps continue to persist as the increase in total bed density of 1.3 per 1,000 is still significantly
low er than the W H O guideline of 3.5 beds per 1,000. U nder utilisation of existing resources further compounds the
problem of meagre infrastructure. (Source:M cKinsey)
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The size of the Indian healthcare delivery industry,in 2011-12,w as estimated to be ` 2,600 billion in value terms.
The dominance of the private sector has meant that there has been a rapid development of inpatient-based facilities
w hich now constitute 72% of the healthcare delivery industry w ith outpatient-based facilities representing the
business review

balance. (Source:CRISIL)

Another feature of the healthcare landscape in India is that out-of-pocket spend as a proportion of total healthcare Further, the availability of trained doctors and related health human resource infrastructure is also w ell below
spending continues to remain high at about 60% of total healthcare expenditure. This is due to low public spends and globally mandated norms. As of 2010,India had approximately 300 medical colleges,290 colleges for B achelor of
moderate penetration of health insurance. This clearly indicates that government efforts have not kept pace w ith the Dental Surgery and 140 colleges for M aster of Dental Surgery. It is estimated that India needs to have 600 medical
rise in healthcare demand. colleges (100 seats per college) and 1,500 nursing colleges (60 seats per college) in order to meet the global average
of doctors and nurses.

The hospital sector is highly capital-intensive as setting up of new facilities entails investments into land and building
apart from outlays on medical equipments. In addition to capital intensity the sector is also labour intensive and
hence operating costs tend to be high.

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It is expected that grow th w ill accelerate w ith increasing private participation. The Government seems more
determined to correct imbalances now than in the past but history suggests that it w ill be more effective if it drives
much needed reform and acts as a facilitator to direct necessary resources into the sector. The rapidly evolving
customer mindset backed up by an increasing ability to pay is expected to inspire service providers to evolve a variety
performance highlights

of delivery models w hich w ill cater to all strata of society. Further,increasing global exposure of citizens and higher
volumes of medical value travellers are likely to lead to global best practices being deeply ingrained into the ethos
of healthcare service delivery providers in India.

KEY CHARACTERISTICS / TRENDS

The healthcare delivery industry has delivered good grow th in recent years and is poised for sustainable grow th
going forw ard. This is due to the confluence of several factors that have made it conducive for investments and
grow th. A few of these are:
corporate review

Inadequate Public Infrastructure

In most countries around the w orld the bulk of H ealth Infrastructure is provided by the Government. H ow ever,in MedicalValue Travel
India it is the private sector w hich plays a more significant role in augmenting health infrastructure. The public
M edical value travel is used to define travellers for w hom a medical procedure forms the primary reason for
health sector is faced w ith several challenges such as non-availability of doctors and medical staff, outdated
travel. These procedures are largely elective in nature as medical value travel requires careful consideration and
medical equipment, inadequate maintenance etc. W hile severable admirable initiatives have been undertaken by
planning w hile emergency or necessary procedures are required to be conducted urgently. H ow ever,emerging cost
both the Central and State Governments in India,the fact remains that the lack of overall quality in the public health
competitive markets are offering an attractive alternative to high cost developed markets w here healthcare is now
infrastructure in India and inability to cater to the appetite for healthcare services has been a key enabler for the
unaffordable for many. Further,given the high clinical standards in these new destinations even health insurance
emergence of private healthcare service providers in India.
companies are encouraging patients to opt for such treatments by reimbursing travel and residency expenses in
addition to medical costs.
Grow th in population and change in population m ix
The continued population grow th in India w ill lead to an increase in demand for additional beds. India’s population is
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Evolving Business Models

predicted to grow from approximately 1.2 billion in 2011-12 to over 1.5 billion by 2026. Apart from absolute population
Competition and cost of resources have spurred greater innovation and specialization in the industry. W hile state
grow th,the increased longevity of citizens is leading to a rapid increase in the total number of middle-aged and older
sponsored or standalone hospitals w ere the places of choice earlier,the last tw o decades have seen the emergence
adults,leading to a corresponding increase in demand for healthcare delivery systems and services.
of private hospital chains,single specialty chains and boutique healthcare centres. Today,there are institutes w hich
focus on a single specialization such as maternity, cardiac care or orthopaedics w hich helps them to drive dow n
Changing disease profile
costs. Touch points have also multiplied w ith all-encompassing hospitals at one single location being replaced by
An increasing proportion of deaths are now attributable to non-communicable diseases. Increasing per capita multiple interface points such as Stand-alone clinics,diagnostic centres and pharmacies. At the other end of the
income has led to a shift in dietary patterns and changing lifestyle habits of a significant percentage of the populace. spectrum,integrated healthcare delivery centres like M edicities are also emerging as viable models in the Indian
This is leading to a change in the disease profile w ithin the country w ith increasing frequency of lifestyle-related healthcare services industry.
diseases such as diabetes and hypertension. Accelerated occurrence of such lifestyle diseases over and above the
standard disease profile of the populace is intensifying the demand for healthcare delivery and associated medical
Increased traction in non-m etro cities for capacity addition
business review

facilities.
The last few years have w itnessed rapid capacity addition by private players. H ow ever, this incremental capacity
Im proving affordability has been skew ed tow ards urban clusters. This has led to a disparity in bed density in comparison to the rest of the
country. As a result,there has been a rise in domestic medical travel driven by quality and capability rather than
Although healthcare may be largely considered a non-discretionary expense,high-quality healthcare facilities are
value. H ow ever,increasing competition and resource scarcity in metro cities combined w ith economic grow th and
currently unaffordable for a large percentage of the population. H ow ever,a steady increase in disposable incomes
development in non-metro cities have led to a rebalancing. The w illingness of medical practitioners to relocate,
in households in India w ill mean that a greater number of people w ill grow their purchasing pow er and be able to
improved purchasing pow er and better resource availability in non-metros is leading to a heightened focus on non-
afford better quality healthcare. Increased penetration of health insurance combined w ith an enhanced variety of
metro cities for capacity expansion.
insurance products w ill mean that a larger number of people w ill be able to avail better quality healthcare. Patients
w ith health insurance are more likely to visit private hospitals thereby driving grow th in the private healthcare
delivery sector.

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Progress in state sponsored healthcare schem es in India India continues to lag most other developing nations on the parameters of key benchmarks for healthcare delivery.
The U nion M inistry of H ealth and Family W elfare is responsible for the implementation of various programmes such In order to meet the global median on parameters of healthcare delivery,it is estimated that India w ill be required
as family w elfare, prevention and control of major diseases. Apart from these, the Government has undertaken to make investments of over ` 7,000 billion over the next 5 years.
performance highlights

concerted efforts to address the decline in Public Expenditure on H ealthcare. Initiatives such as the N ational Rural
H ence intensified efforts over a sustained period of time w ill be required to catch up to global benchmarks.
H ealth M ission,N ational U rban H ealth M ission and the Clinical Establishments Act,2010 indicate the desire of the
Introduction of required reforms, increasing investor interest and strong fundamentals are expected to lead to
government to initiate a course correction. These w ill help to strengthen the regulatory framew ork of the healthcare
acceleration in capacity creation and grow th that w ould be materially different compared to historical levels.
sector and are aimed at improving national health indicators in a bid to achieve the Government’s ambitious target of
universal health coverage. Several states have also introduced w elfare and medical health insurance schemes for
the economically w eaker sections of society to enable them avail of better quality healthcare.
RETAIL PHARMACIES
The retail pharmacy segment in India is a w ell-developed industry and enjoys a comprehensive presence across the
country. W hile it is already a considerably large market it still has tremendous scope to grow further. It is w ell know n
Increased Investor Interestand Investm ent
that this industry is highly fragmented in nature and is dominated by stand-alone units or ‘mom-and-pop’stores. It
The non-discretionary nature of healthcare expenditure and the attractive grow th rates delivered by leading players
is only in recent years that organized participation has gained traction and today there are several corporates w hich
have resulted in increased focus on the healthcare industry as an investment opportunity. W hile the healthcare
corporate review

have set up pharmacy chains in different parts of the country.

industry is inherently capital intensive in nature w ith a long-gestation period; steps to moderate capital intensity
such as leasing of premises, franchising, operating and maintenance contracts, etc. have helped to somew hat In India,pharmacies are the dominant distribution channel for pharmaceuticals and generate a majority of overall
mitigate such concerns. Further,high-volume specialisation and value added services have led to increased capital pharmaceutical sales. Over 90% of drug sales are through the retail markets,w hile institutional sales account for
efficiency and improved asset utilizations. As a result, there has been a notable increase in venture capital and the balance. The traditional /local chemists dominate the retail pharmaceutical market. H ow ever,organized players
private equity investment into the industry. are now making their presence felt in the retail pharmacy sector and are responsible for the introduction of trends
like loyalty schemes, assuring genuineness of drugs, tele-consultation services, private labels and value added
GROWTH PROJECTIONS services such as basic diagnostics and offering of health insurance plans.

The healthcare services market is expected to grow at a compounded annual grow th rate (CAGR) of 12% and expand The market is highly competitive due to low entry barriers and is believed to be poised for attractive grow th driven by
from its current size of ` 2,600 billion in 2011-12 to ` 4,500 billion in 2016-17. (Source: CRISIL research) Grow th rapid urbanization,grow th of the healthcare industry,introduction of premium & high-end medicines,introduction
is expected to be driven by rising per capita income,varying demographic mix,altered disease profile,demand for of hospital chains w hich have a cascading effect on healthcare delivery,increase in healthcare spending,changing
better quality healthcare, improving health insurance coverage, increase in medical value travellers and greater
statutory section

disease profiles,grow th in pharmaceuticals sector and the OTC segment,changing consumer attitudes and attractive
availability of facilities in Tier 2 and 3 cities in India. returns. H ow ever,the industry needs to address challenges such as its fragmented nature,inefficient distribution
and supply chains,incidences of counterfeit drugs,shortage of trained manpow er,low retail management skills and
The recent dominance of private investment in healthcare delivery and the focus on inpatient (IP) led facilities by
the prohibitive cost of real estate .
private players has led to IP led facilities representing 72% of the healthcare services market by value in 2011-12.
This share is expected to expand to 75% in 2016-17 on the back of accelerated investments by private players w hich The recent government reforms permitting 51% foreign direct investment in multi-brand retail at the discretion of
are skew ed tow ards IP led treatment. State governments is expected to bring a new impetus to the retail sector in India.

HEALTH INSURANCE
According to the Insurance Regulatory and Development Authority (IRDA),gross premiums underw ritten by non-life
insurers in the health segment grew 19% to ` 13,345 crore in FY12 compared to ` 11,245 crore in FY11,w ith most
business review

non-life insurance companies recording double-digit grow th rates in the health segment.

H ealth insurance is w ell established in many countries,but in India it remains an untapped market. Less than 15%
of India’s population is covered through health insurance. Over 80% of health financing is through private financing,
much of w hich is out of pocket payments and employer funding. Given the demand scenario and need for health
financing,health insurance has a w ider scope in the present day situation in India. There are over 30 health insurance
products in the category offered by both life and non-life insurers. W hile health insurance is primarily offered as an
additional segment by life and general insurers,there are also a handful of standalone health insurance players.

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The penetration level of insurance is very low in India w hen compared w ith the global average. This has brought contribute to our success rates and enable us to attract renow ned doctors from India and abroad. This enhances the
about a plethora of distribution channels such as agents,brokers,bancassurance (bank insurance model) avenues, attractiveness of our hospitals for patients from all corners of the globe.
soliciting insurance through Internet or direct mailing.
First Mover Advantage / Brand Value:Our position as the first corporate hospital in the country,impeccable track
performance highlights

At the same time,the overall service levels and customer management standards are improving. The introduction record and diversified presence of the H ospital N etw ork has helped to establish the “Apollo” brand as a premier brand
of health insurance portability has offered more convenience to customers and has enhanced competition in the in the healthcare sector in India. The first mover advantage has enabled the company to establish hospitals at prime
industry. It is likely that consumers can now expect a slew of innovative health insurance plans as insurers compete locations in several cities in India at costs w hich cannot be replicated. Further,brand value provides several tangible
to attract and retain customers. and intangible benefits to the Company such as the ability to attract doctors and other healthcare professionals
ahead of competition, increased pricing pow er, sustained marketing benefits and a headstart in footfalls at new
SWOT ANALYSIS facilities.

Focus on Quality:Apollo has imbibed a strong focus on clinical excellence in its operations. N ot only do w e conduct
Strengths
a number of complex and high-end medical procedures everyday but w e do so w ith success rates and clinical
Scale:Through our presence in various initiatives across the healthcare services delivery chain,w e believe that w e
outcomes that are in line w ith the best institutions around the globe. W e have designed several internal systems to
have a competitive advantage and are able to benefit from the follow ing:
corporate review

monitor and ensure that all facilities match up to and,in some cases,surpass the best global healthcare standards.
ǩ&RVW HIȌFLHQFLHVWKURXJKVKDULQJRIPDQDJHULDODQGFOLQLFDOUHVRXUFHV W e have the largest number of JCI accredited facilities by any single healthcare group in India /Asia and also have 11
facilities w hich are accredited by N AB H . Apart from that,68% or 3,896 of our 5,749 operating beds are over 5 years
ǩ (FRQRPLHV RI VFDOH DQG FRPSHWLWLYH SULFHV IURP RXU VXSSOLHUV DQG VHUYLFH SURYLGHUV WKURXJK FHQWUDOL]HG
old w hich indicates the strength and maturity of the business.
purchasing;
Integrated Operations: W e have developed a distributed access model to comprehensively serve the healthcare
ǩ$ELOLW\ WRZLWKVWDQGJHVWDWLRQSHULRGVZLWKUHJDUGWRQHZO\FRPPLVVLRQHGKRVSLWDOV
needs of patients in their local communities through our netw ork of multi-specialty hospitals and primary clinics.
ǩ$FFHVV WRTXDOLȌHGDQGWUDLQHGPHGLFDOUHVRXUFHVWKURXJKRXUHGXFDWLRQDOLQLWLDWLYHVDQG In addition patients can access our pharmacies for basic services and our health insurance business now covers
ǩ $FFHVV WR D ODUJHU SDWLHQW EDVH WKURXJK RXU SDQ,QGLD SUHVHQFH LQ SULPDU\ FOLQLFV WHOHPHGLFLQH DQG RWKHU several individuals. This gives us several touch points across the healthcare delivery chain w hich translates into
healthcare programs. a greater number of patient referrals thereby driving higher volumes. Further, the multiple revenue streams are
synergistic in nature and complement each other in terms of seasonality and capital efficiency w hich results in a
ǩ &DSWLYH PDUNHW IRU DOOLHG EXVLQHVVHV RI SKDUPDFLHV KHDOWK LQVXUDQFH VHOI EUDQGHG SURGXFWV WUDLQLQJ DQG
combined business model w hich is better balanced.
statutory section

education

ǩ$ELOLW\ WRFURVVVHOODQGGHYHORSV\QHUJLVWLFUHYHQXHVWUHDPV Weaknesses

Arrangem ents w ith Doctors / Medicalpersonnel:Our ‘fee for service’model w ith our consultant doctors provides CapitalIntensive:The hospitals sector is highly capital-intensive due to the high per bed costs. This includes costs
them the professional comfort and freedom to deliver optimal performance. M any of the doctors associated w ith of licenses & approvals,construction costs,interiors and costs of machines and equipment. Apart from maintenance
us are prominent w ithin the medical field having received accolades and aw ards or are heading national medical costs for high end equipment,hospitals also need to bear replacement costs as these become obsolete. H ospitals
associations – w hich furthers the attractiveness of our netw ork. W e are also among the leading private healthcare are also highly labour-intensive. Skilled manpow er includes doctors,nurses and para-medical staff comprising lab-
services employers in India. The medical colleges and training establishments w ithin our group provide us w ith an technicians,radiographers and therapists. All of this ensures that the basic cost of setting up and running a hospital
abundant supply of medical personnel,the lack of w hich can be a serious constraint to grow th and efficiency. is high w hich escalates break even levels and stretches viability.

Professional m anagem ent team w ith rich industry experience: Our management team comprises senior Lim ited availability of doctors and m edical personnel: As the hospitals business is labour intensive there is
significant human intervention at multiple points w ithin healthcare delivery. As a result,w e are dependent on our
business review

professionals w ith abundant expertise and know how . They possess a proven track record in the healthcare services
industry and have been instrumental in driving strategy and grow th. A good mix of doctors w ith both clinical and doctors,nurses and other healthcare professionals for continued efficiency and stability in our business. Top quality
administrative experience and functional professionals has enabled the company to repeatedly balance the multiple doctors and medical personnel are a finite resource and these professionals enjoy abundant opportunities in the
objectives of delivering best-in-class patient care, technology adoption, adherence to high standards of clinical form of entrepreneurial ventures,independent practice as w ell as competing offers from other service providers in
excellence,value optimization and focus on key specialties w hile grow ing in a steady and calibrated manner. India and abroad. Our continued performance and grow th substantially depends on our ability to attract and retain
the best medical talent.
Rapid adoption ofTechnology:W e have been at the forefront of technology adoption in the Indian H ealthcare industry.
Starting from introducing the first M RI machine in the country to a focus on robotics and to our pioneering effort to Com plex business m odel: The hospital business is not a ‘plug and play’business by any standard. M erely having
introduce the Proton cancer therapy in India,Apollo has consistently believed in leveraging technology to raise the all of the necessary resources is not a guarantee of success. Due to the many moving parts, there is significant
bar on clinical standards and treatment quality. Apart from delivering meaningful efficiency gains,these initiatives

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management overview required in ensuring footfalls and volumes,balancing case mix,upgrading technology and increase from 36 mn p.a in 2008 to 55 mn p.a in 2030. This is due to changing dietary patterns and alterations in
meeting clinical standards. In addition,there is a high level of doctor interaction combined w ith multiple operating lifestyle caused by increasing incomes and improved affordability. These trends are leading to higher incidences of
metrics to monitor and analyse. The high level of complexity makes it imperative for grow th to be calibrated and w ell heart disease,diabetes and cancer. These developments are magnified in India due to its burgeoning middle class
planned in order to be sustainable. and economic grow th.
performance highlights

Long gestation period: There is significant capital outlay on land,building and medical equipment at the time of Increasing dem and for life enhancing procedures and elective surgeries:W ith increasing disposable incomes and
setting up a hospital. Subsequently,operating costs can also be significant. Although some facilities may develop health aw areness,there is a grow ing demand for elective or planned surgeries. Patients are now w illing to spend
rapidly,there is an average maturity time frame of approximately 4-5 years for a facility to turn net income positive. money to get ailments treated w hich are not life threatening but are constraints to optimal health. H ence, such
An inability to scale up occupancy in new facilities could adversely affect our operating efficiencies and our procedures are discretionary rather than necessary. W e intend to concentrate on this market and build a strong
profitability. This also explains w hy the Company has historically preferred equity funding. N ow that there are a presence in this segment.
number of facilities w hich are mature and generating positive cash flow s there is an increased appetite to service
Grow ing m edicalvalue travel:It is w ell know n that healthcare in developed countries is extremely expensive and
debt capital.
out of reach for many. This has led to the advent of medical value travel. W hile regional peers like Singapore and
Obsolescence of m edical equipm ent and techniques: W e use sophisticated and expensive medical equipment Thailand have been at the forefront of medical value travel,India is fast emerging as a preferred destination. This
corporate review

in our hospitals to provide our services. The healthcare services industry is characterized by frequent product is because these peers are preferred more for cosmetic treatment and surgeries of moderate complexity. H ow ever,
improvements and evolving technology,w hich could,at times,lead to sudden redundancy of medical equipment and Indian doctors are now globally highly regarded for their competency and expertise. As a result,India is now very
result in asset impairment charges. Further,the introduction of new treatment technologies may render existing seriously considered by global medical value travellers for w hom factors like quality, medical skills and clinical
medical equipments obsolete. Rapid obsolescence also has the effect of diluting capital efficiency. outcomes also matter apart from cost arbitrage. According to the Associated Chambers of Commerce and Industry
of India (ASSOCH AM ),India's medical travel industry is also expected to grow from approximately U S$ 333.0 million
Lack of Standardisation: H ealthcare is an extremely dynamic industry and there are different requirements even
in 2008 to U S$ 2.1 billion by 2015 at a CAGR of over 30.0% . (Source:Frost & Sullivan)
in markets w hich are reasonably proximate. Every market has a unique set of circumstances w ith variance in
demographics,disease profiles,customer attitudes,seasonal variations,price sensitivity and so on. Even hospitals Fragm entation in the dom estic pharm acy retail m arket: The Indian pharmacy distribution market is dominated
in tw o different cities in the same state w ill not be subject to identical operating circumstances. This requires us to by standalone / local players due to the absence of organized distribution. Further,there are several layers in the
customize our strategy for each center. chain w ith the presence of multiple distributors and sub-distributors leading to compressed margins. Technology
adoption and supply chain management techniques have been inadequate. There is abundant opportunity for a large
Opportunities player to extract economies of scale and redefine market trends. W e have leveraged on our scale,brand,negotiating
statutory section

pow er w ith suppliers and deep domain expertise to establish the largest organized chain of retail pharmacies in
Lack ofchoice in m arketplace:Due to the deficiency in healthcare infrastructure in India there are several regions
India. H ow ever,organized pharmacies represent less than 10% of the market in India and there remains abundant
w ithin the country w here patients have to make do w ith the facilities offered to them for lack of meaningful choices.
headroom for grow th.
Despite the ability and the w illingness to pay for good quality healthcare services these patients opt for moderate or
sub-standard facilities as these are w ithin reach. These catchment areas can present good opportunities for reputed
healthcare service providers w ho are able to establish their facilities in such regions. Threats
High com petition to im pact sustainability: As the healthcare industry has been performing w ell and delivering
Dom estic m edicaltravellers:W hile progress has been made in recent years in rolling out healthcare infrastructure
healthy grow th and returns there has been an increase in its attractiveness on a relative basis. There has been a rise
of global standards,the quality of healthcare infrastructure in several non-metros and smaller tow ns of the country
in the number of corporate groups foraying into healthcare through green field facilities,JVs and acquisitions. There
remains sub-standard. As a result,patients residing in such non-metro cities and smaller tow ns end up travelling
are pockets of over-capacity in some metros. H aving invested significant funds into these ventures,there is a chance
to urban centers for both moderate and complex treatments. Due to the extra effort and cost involved,not all w ho
that some of these players may resort to unsustainable pricing in order to capture market share.
desire better healthcare are able to do so resulting in unfulfilled demand. W e plan to serve the demand in these
business review

centres for quality healthcare services through our “REACH ” initiative. Increasing cost of resources: The emergence of several domestic hospital chains combined w ith the entry of
international players w ill lead to an increasing number of competitors chasing finite resources such as land,
Increase in population and changing dem ographics:India is the second largest populated country in the w orld and
quality medical professionals and potential acquisition targets. W hile supply of resources may improve gradually,
is expected to see its population expand from 1.2 billion people currently to 1.5 billion people in 2015. Further,w ith
demand grow th is likely to be rapid resulting in increased costs of these resources. In order to continue to grow our
increasing longevity the number of middle-aged and elderly people is expected to multiply. This w ill result in an
operations w e need to identify and acquire resources at reasonable rates. Any failure to do so may result in inability
increase in the absolute numbers of persons requiring medical care and is expected to grow demand for all kinds
to suitably grow and expand our operations. Further,increases in operating costs can result in a negative impact on
of healthcare services,manifold.
the Company’s results of operations and financial condition.
Changing disease patterns: The W H O W orld H ealth Statistics, 2012 notes that non-communicable or lifestyle
diseases accounted for 63% of deaths across the w orld in 2008. It is estimated that,globally,deaths from N CDs w ill

annual report 2012–13

94 95
financial statements

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Discontinuation of leases: Certain lands on w hich our hospital buildings and our stand-alone pharmacies are Furthermore,an increasing trend of horizontal integration is expected w herein existing players w ill expand by either
operating on are not ow ned by us. In case these leased properties are not renew ed in our favour or on terms that are acquiring competitors or by adding more hospital beds.
not favourable to us our business operations may suffer disruptions.
An overhaul of the regulatory framew ork governing the sector is expected w hich w ould enable the needs of service
performance highlights

Sluggish Regulatory fram ew ork:The Government has indicated its intent to correct the imbalance in the healthcare providers is to be accommodated through measures such as continued tax incentives,access to cheaper financing and
industry through initiatives such as the N ational Rural H ealth M ission,N ational U rban H ealth M ission,etc. H ow ever, implementation of law s w hich improve operational flexibility. There has been good Private Equity (PE) investments
these are few and far betw een and an overhaul of the regulatory framew ork is required rather than a few sporadic interest in the healthcare sector in India in recent years and the trend is expected to continue.
initiatives. Further, neighbouring countries are moving faster tow ards exploiting the medical tourism opportunity
The Indian healthcare sector can be view ed as a glass half empty or a glass half full. The challenges the sector faces
due to regulatory support such as ease in granting of medical visas,conducive infrastructure,low er cost of capital
are substantial, from the need to improve physical infrastructure to the necessity of providing health insurance
and ease in resource creation. The domestic regulatory framew ork needs to become more of an enabler and rapidly
and ensuring the availability of trained medical personnel. B ut the opportunities are equally compelling, from
respond to the needs of the sector for it to realize its true potential.
developing new infrastructure and providing medical equipment to delivering telemedicine solutions and conducting
High inflation:Inflation rates in India have been high in recent years and high inflation is expected to continue for cost-effective clinical trials. For companies that view the Indian healthcare sector as a glass half full,the potential
some time. Increasing inflation in India is depleting the purchasing pow er of patients and is intensifying the cost of is enormous.
corporate review

living for our employees. There is also upw ard pressure on other costs such as transportation,supplies,equipment
and other expenses,and an inability to manage costs or pass increased costs onto patients w ill lead to compressed COMPANY OVERVIEW
returns.
Apollo H ospitals w as founded by Dr. Prathap C. Reddy in 1979 and became a public listed company on the B SE in
Probable w ithdraw aloftax incentives:From fiscal 2011,w e have benefited from the tax deduction given in respect 1983 and w as listed on the N SE in 1996. W e are headquartered in Chennai and also manage operations through
of capital expenditure incurred on setting up new hospital projects. The resultant deferment of tax has helped to several subsidiaries,joint ventures and associates.
improve our immediate cash flow s allow ing us more resources to fund grow th. Any w ithdraw al of tax incentives or
W e are a leading private healthcare services provider in India offering comprehensive end-to-end healthcare
increase in corporate tax rates w ill result in increased liabilities and reduced returns on the business operations.
services. Our primary line of business is the provision of healthcare services,through hospitals,pharmacies,projects
and consultancy services,and primary clinics. In addition,w e provide health insurance services,telemedicine and
INDUSTRY OUTLOOK / PROSPECTS research services and conduct education and training programs.
During the period from 2007-08 to 2011-12,the total number of beds increased at a CAGR of 2% to reach 1.1 million.
W e have continuously invested in bed capacity creation and have increased the bed capacity under our management
statutory section

Over the next 5 years,CRISIL Research estimates the number of beds to increase at a CAGR of 3% to reach 1.3 million
from approximately 150 operational beds at the commencement of our hospital services business in 1983 to 8,420
by 2016-17. H ow ever,this is unlikely to meaningfully address the shortfall in meeting demand in the sector.
beds in 51 hospitals located in India and overseas as of M arch 31,2013.
Prospects are expected to remain attractive for almost all players in the sector. As long as various healthcare service
W e have large hospital clusters in Chennai and H yderabad and have established landmark hospitals in Delhi,
providers spread their focus across the various underserved regions and avoid the trap of excessive competition in
B angalore,Kolkata,Ahmedabad,Pune,B hubaneshw ar,M adurai and M ysore.
select upmarket areas there is likely to be sustainable grow th for all.
Our healthcare facilities comprise a mix of primary,secondary,and tertiary care facilities. Our tertiary care hospitals
M assive efforts w ill also be required from the Government to upgrade the Public H ealth capacity to desired levels.
provide advanced levels of care in over 50 specialties,including cardiac sciences,oncology,neurosciences,critical
The Government w ill also have to balance its role betw een attempting to provide facilities and acting as an enabler
care,orthopedics,radiology,gastroenterology,and transplants. In addition,w e have an increasing focus on technology
to direct the flow of resources into the sector.
based treatment areas such as minimally invasive surgery,robotics and high-end solutions for cancer.
The private sector is expected to continue to drive the majority of bed additions in the coming years. This w ill be led
W e constantly seek to be in the forefront of the healthcare services industry by providing new services and introducing
business review

by incremental healthcare infrastructure. Private hospitals are likely to upgrade their services for medical treatment
specialized healthcare models.
and diagnostic services in order to provide one stop healthcare services to domestic and international patients.

It is likely that private players w ill continue to upgrade their skills and the overall healthcare market w ill be divided HEALTHCARE SERVICES
more categorically into sub-markets based on geographic location, complexity of care and economic strata of
Our H ealthcare services segment consists of hospitals,hospital-based pharmacies and projects and consultancy
population being serviced.
services. W e have discussed about the projects and consultancy services in a separate section in this M anagement
There is expected to be an increase in the number of quaternary and tertiary care hospitals w hich focuses on Discussion and Analysis.
lifestyle diseases and speciality treatment like neurology,cardiology,orthopaedics and oncology as w ell as cater to
the grow ing number of medical travellers.

annual report 2012–13

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HOSPITALS Eight of our hospitals have received accreditations from the Joint Commission International,U SA (“JCI”) for meeting

As of M arch 31, 2013 w e had a capacity of 8,420 beds in 51 hospitals located in India and overseas. Of the 8,420 international healthcare quality standards for patient care and organization management. JCI is the w orld’s premier

beds,6,382 beds are in 38 hospitals ow ned by us and 2,038 beds are in 13 hospitals under our management through accreditation body for evaluation of healthcare facilities. Our H ospitals at B angalore, Chennai, Delhi, Dhaka,
H yderabad,Kolkata,Ludhiana and M auritius have already received the accreditation and w e are in the process for
performance highlights

operations and management contracts.

preparing other facilities for evaluation.
31.03.2013 31.03.2012
In developing countries like India, w here health services are delivered mainly through private health providers,
N umber of ow ned hospitals at end of the period 38 36 regulation is a vital instrument and function of government policy. To that end, the government has set up the
N umber of ow ned beds at end of the period 6,382 5,888 N ational Accreditation B oard for H ospitals & H ealthcare Providers (“N AB H ”) to establish and operate accreditation
programmes for healthcare organisations in India. It is a constituent board of the Quality Council of India.
N umber of operating beds at end of the period 5,549 5,153
Apollo Specialty H ospitals in M adurai and Chennai and our hospitals at Ahmedabad,N oida and Secunderabad have
In-patient discharges 313,348 281,020
received accreditations from N AB H .
Adjusted discharges 430,959 396,733
corporate review

Average length of stay (days) 4.65 4.78 Strategy

We rem ain focused on capacity creation w hile sim ultaneously im proving operating efficiencies. We aim to achieve
Average daily census 3,993 3,667
this through the follow ing initiatives:
B ed occupancy rate (% ) 72% 71%
Focus on Healthcare Delivery in India:Our primary focus w ill be delivery of healthcare services in India. W e have
Average revenue per occupied bed per day 21,702 20,455 exited the M edical B PO business during the year and the sale proceeds w ill be deployed tow ards expansion of our
hospitals netw ork. Further,w e believe the pharmacy business holds high strategic relevance to our business and
in the long term w e plan to induct a strategic partner w ith global expertise in pharmacy retail to elevate the scale
ClinicalExcellence
of this business. The pharmacy business is self-sufficient in terms of capital requirements. Our initiatives in areas
Apollo H ospitals has alw ays accorded high priority to clinical excellence. It has identified the highest standards of
such as health insurance,research,medical education,telemedicine,projects and consultancy are critical to our
clinical outcomes in various specialties across the globe and set itself targets to meet or surpass these standards.
integrated delivery model. As these initiatives are not resource intensive they complement our plans for the core
In the process it has developed an enviable track record of clinical excellence.
statutory section

segment of healthcare services delivery.

In order to ensure sustainable clinical outcomes the Company follow s an internal quality management process
Focus on a portfolio of high value clinical specialties: The healthcare services market is large and diverse w ith
know n as the “Apollo Clinical Excellence” program w hich is referred to as “ACE @ 25”. This has been implemented
multiple challenges w hich need to be addressed. H ow ever,since our resources are finite w e need to focus on specific
across the entire netw ork of hospitals. ACE @ 25 assesses performance based on 25 clinical parameters w hich are
areas w here w e can optimize efforts and value. W e have therefore identified cardiology,oncology,neurology,critical
critical to delivering the very best clinical outcomes. In order to enhance its standards even further,the Company
care,orthopedics and transplants as key focus areas for our tertiary care hospitals. W e internally designate these
has introduced the Rocket ACE program w hich covers an additional 25 parameters leading to an advanced clinical
focus areas as “Centers of Excellence”. W e believe that it is essential to focus on volumes of high end treatment at
performance assessment model for key focus areas.
our facilities to maximize our productivity in the healthcare services market.
During the year, on the occasion of W orld H eart Day, the Group announced that it has completed 130,000 H eart
Strengthen our presence in key m arkets: W e have a strong presence in major urban centres such as Chennai,
Surgeries,since inception,w hich is by far the largest cardiac program across the globe. Further,the Group reported
H yderabad and N ew Delhi. Further, w e have landmark hospitals in Kolkata, B angalore and Ahmedabad and are
a success rate of 99.6% for these surgeries w hich places it among the leading healthcare entities across the globe
in the process of setting up hospitals in M umbai. B y setting up multiple facilities in each of these cities w e plan to
business review

on the basis of clinical standards.

develop ‘clusters’of hospitals in all major urban centres in India w hich w ill help us to diversify and strengthen our
The focus on clinical excellences enables Apollo H ospitals to continuously assess the quality of care provided to netw ork in these key markets. In addition to a w ider presence w e w ill deepen our offerings by including primary care
patients and allow s it to objectively measure the consistency and success of its healthcare delivery services. clinics,pharmacies,secondary and tertiary care facilities in all of these centres.

Leverage on Technology to attain key objectives: The Apollo H ospitals Group has alw ays been at the forefront of
Accreditations
technology excellence and has been the first to leverage several innovative technologies for the benefit of patients.
As the w orld grow s smaller and progresses tow ards a vision of becoming one large global marketplace,patients w ill
B y employing the latest offerings,w e have been able to enhance our clinical outcomes,reduce ALOS and optimize
increasingly be able to pick and choose a hospital facility in any part of the globe. In order to ensure standardization
value w hile improving the patient care experience. W e plan to continue in the same vein w ith increased thrust on
of healthcare delivery services across the globe,facilities are opting to be accredited by a credible agency or third
M inimally Invasive Surgery and Robotics and the introduction of the Proton Therapy Centre in Chennai w hich w ill be
party organisation w hich can evaluate and grade healthcare services according to a set of standards w hich are
the first of its kind in the region covering Asia,Africa and Australia.
revised on a periodic basis.

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98 99
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Optim ize Contribution of each facility: The strong demand for services has led to rapid grow th at our facilities. PROJECTS & CONSULTANCY
Several facilities enjoy occupancy rates at the upper end of 75-80% . W e have also deployed several strategies to Our projects and consultancy services business is among the leading healthcare consulting organizations of its
optimize the contribution of each facility. For example w e shifted 60 beds from the paediatric w ing in the main kind in the w orld. W e provide comprehensive support and services to the healthcare delivery industry including
hospital in Chennai to a separate building. The space created in the main hospital w as used to add more high-
performance highlights

pre-commissioning consultancy services comprising feasibility studies,infrastructure planning as w ell as design &
end tertiary care beds resulting in improved contribution and increased ARPOB . Similarly,w e are executing plans advisory services (functional design and architecture review ),human resource planning,recruitment and training
to enhance Outpatient Departments, add day care facilities and improve bed occupancy and utilization of major and medical equipment planning,sourcing and installation services.
medical equipments across our netw ork.
W e also provide post-commissioning consultancy services,w hich include management contracts (providing day-to-
Introduction ofNew form ats:In keeping w ith changing customer attitudes and demands,w e are actively w orking on day operational support),franchising and technical consultation including human resource planning and training and
introducing new formats. These include an increase in primary care clinics,a variety of dental clinics,larger sized the establishment of medical and administrative protocols. W e provide these services to third party organizations
pharmacy stores and specialized facilities. globally for a fee.

Increase in Capital Efficiency: Several years of economic grow th and inflation have escalated costs of resources
in India. There has been a manifold increase in all costs,w hether capital or revenue in nature. In order to remain APOLLO REACH HOSPITALS
corporate review

competitive and to increase the capital efficiency the Company has now chalked out strategies to manage leaner As part of our expansion strategy w e have focused on grow ing our presence in metros and non-metros simultaneously.
operations. W e are now more amenable to using long-term leases instead of outright purchase of land & building. W hile w e have historically been focused in major urban cluster w e believe that our geographic reach should extend
A comprehensive strategy to enhance assets turnover is being considered. to non-metros and smaller tow ns w here there exists significant latent demand for high quality healthcare services.
Through the Apollo “REACH ” initiative w e intend to establish a netw ork of secondary care facilities w ith around 100
Expansion Plans to 200 beds each in Tier II and Tier III cities in India.

As part of our ambitious grow th plans,w e are w orking on several projects across various locations in India. W e have W e have already established Apollo REACH hospitals in Tier II cities including Kakinada, Karaikudi, Karimnagar,
a three-pronged expansion plan. This w ill consist of expansion of beds and facilities in existing clusters w ith a view B hubanesw ar and Karur and have recently commissioned one in Ayanambakkam,Chennai. W e have plans to set up
to become the dominant healthcare provider in key locations. W e plan to set up new hospitals in metros and large three more “REACH ” facilities in N ashik,N ellore and Trichy.
cities w ith no existing presence in order to reach out to a w ider urban population. Lastly, w e w ill simultaneously
expand in tier II and tier III cities in India through our “REACH ” hospitals initiative so as to garner first mover Such facilities provide patients in these locations enhanced access to high quality healthcare services and advanced
advantage and leverage on our strong brand medical technology w ithout the constraint of having to travel to the nearest Tier 1 location.
statutory section

The ongoing expansion projects include its entry into cities like M umbai, Patna, Vizag and Indore as w ell as W e believe the alternative provided by these facilities w ill be readily accepted by the population living in these
strengthening of clusters in Chennai and B angalore. Expanding the capacity of existing hospitals in Chennai, locations. At the same time, it w ill help extend the Apollo B rand to all corners of the country. W e have identified
B angalore and B ilaspur. Lastly,three “REACH ” hospitals are being set up in N asik,N ellore and Trichy. a number of Tier II and Tier III cities across the country that are currently under-served in terms of healthcare
services but have a sizable population and spending potential. B ased on our experience,capital costs per hospital
These projects are at various stages of implementation and are scheduled for completion over the next three years. bed in a Tier II or Tier III city are generally low er compared to a Tier I city,w hich further enhances the attractiveness
Additionally,w e w ill be setting up a Proton Therapy Centre in Chennai w hich w ill be the first of its kind centre for of this strategy.
cancer treatment in the Asia Pacific Region. This center w ould cater to the needs of patients in Asia, Africa and
Australia w hich is home to a combined population of over 3.5 billion people.
MEDICAL VALUE TRAVEL
W hile medical value travel has been taking place for several years its utility has been accentuated in recent times.
CapitalExpenditure
Apollo enjoys a special standing w ith its presence through multiple overseas touch points and an enviable track
business review

Apart from the expansion plans outlined above w e have made investments to increase bed capacity in existing record. In order to attract larger numbers of medical value travellers, w e have increased marketing efforts in
centres and have invested in new technologies,modernization of facilities and expansion of services. W e believe that markets such as Africa,the M iddle East and South East Asia.
these investments w ill help us to attract and retain doctors and make our hospitals a preferred choice for patients.
W e are creating separate blocks for International patients in several of our facilities w hich w ill have suites of
Our B oard has approved a capital expenditure of approximately ` 22,500 million,w hich is expected to be incurred international standards. Our efforts to gradually add global accreditations have positioned us as the H ealthcare
over the next three years. W e expect to finance this primarily from existing funds, incremental debt and internal Group w ith the maximum number of JCI accredited facilities in India.
accruals. Our capital expenditure w ill primarily relate to our expansion activities. The amount and purpose of these
expenditures may change in accordance w ith our business requirements. W e have also been in dialogue w ith the Government to examine the possibility of introducing a separate visa category
for medical purposes. The legal ramification of permitting Doctors w ith overseas qualifications to w ork on Indian

annual report 2012–13

100 101
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

shores is under active consideration. W hile w e enjoy healthy footfalls of medical value travellers to our facilities,w e MEDICAL INSURANCE – APOLLO MUNICH HEALTH INSURANCE
are confident that addressing some of these challenges w ill lead to exponential grow th in the segment. W e entered the health insurance market through a joint venture w ith M unich Re – one of the leading insurance
companies in the w orld. W e believe there are significant synergies betw een our core healthcare services business,
STAND ALONE PHARMACIES
performance highlights

retail pharmacies and the health insurance business.

W e had a netw ork of 1,503 retail pharmacies as of M arch 31,2013 across the length and breadth of the country. Our
stand-alone pharmacies offer a w ide range of medicines, consumables, health products and general “over-the- The health insurance industry continues to report healthy grow th rates and is expected to grow w ith gross premiums
counter” products and also offer services such as prescription refilling,distribution of free health new sletters and scaling up at a CAGR of around 30% during 2010-11 to 2013-14.
bundled health insurance plans.
Apollo M unich w as able to expand its gross w ritten premium income from ` 4,759 million in fiscal 2012 to ` 6,200
Revenues from our stand-alone pharmacies segment increased by 28% from ` 8,606 million in FY12 to ` 11,017 million in fiscal 2013. W e have been able to grow ahead of industry grow th rates and our insurance products are
million in FY13. rated very highly by market participants. Further,w e enjoy one of the best claims ratios in the industry and customer
loyalty and retention is high as the introduction of health insurance portability has not resulted in net migration of
W e have significantly improved the operating profile of our netw ork of retail pharmacies by: customers. W e had 50 branches across the country and assets under management stood at ` 5,466 million as on

ǩ,QFUHDVLQJ WKHPL[RIKLJKPDUJLQVHOIEUDQGHGSURGXFWVLQWRWDOUHYHQXHV M arch 31,2013.

corporate review

ǩ LQFUHDVLQJ VDOHV WKURXJK EXON GLVWULEXWLRQ RI PHGLFDO VXSSOLHV DQG FRQVXPDEOHV WR KRVSLWDOV DQG RWKHU DISCUSSION ON CONSOLIDATED FINANCIAL PERFORMANCE
healthcare providers.
DISCU SSION ON CON SOLIDATED FIN AN CIAL PERFORM AN CE AN D RESU LTS OF OPERATION S
ǩ ,PSURYLQJRSHUDWLQJHIȌFLHQFLHVE\LPSOHPHQWLQJDFHQWUDOL]HGGDWDEDVHDQGLQYHQWRU\PDQDJHPHQWV\VWHPWR
track inventory and revenue collections across our stand-alone pharmacy netw ork. The follow ing table present summaries of results of operations for the years ended M arch 31,2012 and 2013:

(` in million)
ǩ ,PSURYLQJ RXU VXSSO\ FKDLQ PDQDJHPHQW E\ VWDQGDUGL]LQJ SULFHV DFURVV RXU QHWZRUN DQG FRQVROLGDWLQJ RXU
31.03.2013 31.03.2012
suppliers.
Amount (`) % of Income Amount (`) % of Income
ǩ 0RQLWRULQJWKHSHUIRUPDQFHRIRXUVWDQGDORQHSKDUPDFLHVRQDQRQJRLQJEDVLVDQGFORVLQJORVVPDNLQJDQG Operating Revenues 37,687 31,475
low -grow th pharmacies. Add:Other Income 302 259
statutory section

Add:Profit on sale of equity 63 -

PRIMARY CARE CLINICS Total Income 38,052 100.00 31,734 100.00
W e generate revenues from the provision of clinical and diagnostics services through our w holly-ow ned subsidiary Operative expenses 18,558 48.77 15,623 49.23
Apollo H ealth and Lifestyle Limited. U pto FY 2010, w e provided such services through franchised clinics. From Salaries and benefits 6,231 16.37 5,029 15.85
FY2011 onw ards w e modified our business model and have focused on ow ned clinics. Administration & other expenses 6,815 17.91 5,692 17.94
Financial expenses 1,033 2.71 891 2.81
Through our netw ork of clinics, w e aim to make quality healthcare services accessible to a larger cross-section
Depreciation and amortization 1,424 3.74 1,239 3.90
of the Indian population. Our clinics are equipped to provide a w ide range of healthcare services, from basic to
Profit before Income Tax 3,991 10.49 3,260 10.27
advanced consultation and diagnostic tests. All of our clinics are equipped w ith a pharmacy and some of our clinics
also offer telemedicine facilities to provide access to specialist doctors in multiple locations. Provision for taxation 1,051 2.76 1,150 3.62
Profit after Tax 2,940 7.73 2,110 6.65
These clinics also serve as a means to expand our brand presence in new markets,and in the case of established
business review

Less:M inority interest (17) (0.04) (13) (0.04)

markets,these clinics serve three main purposes: Profit after minority interest 2,957 7.77 2,123 6.69

ǩ(DVH WKHSUHVVXUHRQWKH23'ZDUGRIWKHPDLQKRVSLWDO Add:Share in associates 87 0.23 71 0.22

Profit after share in associates 3,044 8.00 2,194 6.91
ǩ7UHDW DODUJHUQXPEHURISDWLHQWV

ǩ(QKDQFH WRXFKSRLQWVWKHUHE\VWUHQJWKHQLQJWKHEUDQG

annual report 2012–13

102 103
financial statements

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REVENUES The follow ing table summarizes our operating and administrative expenses for the periods presented

The 19.7% change in our operating revenues for 2013 compared to 2012 w as primarily the result of an increase in Year Ended M arch 31,2013
occupancy and revenue per bed day (RPB D) for hospitals as w ell as strong grow th in the SAP business. H ealth care (` in million)
performance highlights

services revenues grew by 15.3 % from ` 22,222 million to ` 25,617 million. Revenue per B ed Day increased from
31.03.2013 % of 31.03.2012 % of `Increase % Increase
` 20,455 to ` 21,702. The increase in RPB D is largely a result of changes in the acuity of patients as w ell as better
` Revenue ` Revenue (Decrease) (Decrease)
price realizations.
Repairs and maintenance 952 2.50 826 2.60 126 15.3
The number of stores under the SAP business segment w as 1,503 as at M arch 31,2013 as compared to 1,364 stores Rents and leases 1,139 2.99 988 3.11 151 15.3
as at M arch 31, 2012. The new store rollouts together w ith maturity of existing stores led to a 28% yoy revenue
Outsourcing expenses 633 1.66 545 1.72 78 14.3
grow th in the pharmacy segment.
M arketing and advertising 889 2.34 668 2.10 221 33.1
The follow ing table show s the key drivers of our revenues for the periods presented: Legal and professional 429 1.13 354 1.12 75 21.1
Year Ended M arch 31,2013 fees
31.03.2013 31.03.2012 Increase % Increase Rates & taxes 104 0.27 76 0.24 28 36.8
(Decrease) (Decrease)
corporate review

Provision for doubtful 174 0.46 192 0.61 (18) (9.4)

Discharges 313,348 281,020 32,328 12 debts & bad debts w ritten
Revenues per Inpatient (`) 81,669 77,884 3,785 5 off
Average length of stay (days) 4.65 4.78 (0.13) 3 Other operating expenses 2,495 6.56 2,043 6.44 452 22.1
Out-patients 2,763,589 2,501,973 261,616 10 Total 6,815 17.91 5,692 17.94 1,123 19.7
Revenue per bed day (`) 21,702 20,455 1,247 6
DEPRECIATION AND AMORTIZATION
EXPENSES Our depreciation and amortization expense increased to ` 1,423 million during 2013, as compared to ` 1,239
million during 2012. The increase is largely due to capital improvement projects completed during 2013 and normal
SALARIES AND BENEFITS
replacement costs of facilities and equipment.
Our salaries and benefits expense of ` 4,704 million during 2012 increased by ` 1,161 million to ` 5,865 million in
statutory section

2013. This w as as a result of the annual compensation increase for our employees,plus the impact of an increasing
FINANCIAL EXPENSES
number of employed physicians w ithin our hospitals and pharmacists for the SAPs.
Our financial expenses increased to ` 1,033 million during 2013,compared to ` 891 million during 2012. The increase
Year Ended M arch 31,2013 is largely due to higher interest charge arising on commissioning of new hospital projects at Aynambakkam and
B angalore.
31.03.2013 % of 31.03.2012 % of `Increase % Increase
Revenue Revenue (Decrease) (Decrease)
PROVISION FOR INCOME TAXES
Salaries,w ages and 5,865 15.4 4,704 14.9 1,161 24.7
The provision for taxes during the year ended M arch 31,2013 has reduced to ` 1,052 million compared to `1,150
benefits (excluding
million in the previous year ended M arch 31,2012 due to the availing of benefit under Section 35AD of the Income
managerial remuneration)
Tax Act,1961 that allow s for a w eighted deduction of 150% of the project cost of new hospitals commissioned during
(` in M illion)
the year.
business review

N o. of employees 35,348 32,991 2,357 7.1

LIQUIDITY
OPERATIVE EXPENSES
Our primary sources of liquidity during the year w ere cash flow s generated from our operations borrow ings and
During 2013,our material cost of ` 18,558 million increased 18.8% ,as compared to ` 15,623 million in 2012. The
equity raised through conversion of promoters w arrants. W e believe that our internally generated cash flow s,
increase in material cost w as in line w ith the grow th in operating revenues.
amounts available under our debt agreements and the further debt that is proposed to be raised w ill be adequate to
service existing debt,finance internal grow th and deploy funds for capital expenditure.

CAPITAL EXPENDITURE
As w e continue to increase bed capacity and roll-out new hospitals, capital expenditure continue to be high. W e

annual report 2012–13

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have made significant, targeted investments at our hospitals to add new technologies, modernize facilities and CASH FLOW FROM FINANCING ACTIVITIES
expand our services. These investments should assist in our efforts to attract and retain physicians and to make our (` in million)
hospitals more desirable to our employees and potential patients.
2012 - 2013 2011 - 2012
performance highlights

Issues from share capital 1,631.40 4,159.01

Sum m ary ofCash flow statem entis given below : Proceeds from B orrow ings 5,934.74 1,519.89
(` in million) Repayment of finance/lease liabilities (2,247.20) (2,965.80)
2012 - 2013 2011 - 2012 Interest and Dividend paid (1,589.00) (1,359.08)
Cash and cash equivalents at beginning of the year 2,368.38 1,823.47 N et cash from financing activities 3,729.93 1,354.02
N et cash from operating activities 4,427.52 3,870.54
Cash provided by financing activities totalled ` 3,729.93 million in FY13 as compared to ` 1,354.02 million in FY12.
N et cash used in Investing activities (7,325.19) (14,679.65)
Cash provided by financing activities in FY13 resulted primarily from conversion of w arrants by promoters of
N et cash from financing activities 3,729.93 1,354.02
` 1,631.40 million and debentures placed w ith B ankers and Institutions of ` 5,934.74 million. W e used part of the
N et increase in cash and cash equivalents 832.26 544.92
proceeds from financing activities to repay loans of ` 2,247.20 million in FY13. W e paid interest and dividend of
Cash and cash equivalents at the end of the year 3,200.64 2,368.38
corporate review

` 1,589.00 million in FY13.

CASH FLOW FROM OPERATING ACTIVITIES

RISK MANAGEMENT & INTERNAL CONTROLS
N et cash of ` 4,428 million w as generated from operating activities by the Company in FY13 compared to
` 3,870.54 million in FY12. Risk Managem ent
Your Companyrecognizes that it is exposed to an increasing degree of risks as it expands. It has set up a comprehensive
(` in million)
risk management system covering various aspects of the business,including operational,legal,treasury,regulatory
2012 - 2013 2011 - 2012
and financial reporting.
Operating profit before w orking capital changes 6,254.72 5,362.95
Effect of w orking capital changes (898.88) (872.89) The B oard of Directors has constituted a Risk M anagement Committee, headed by the M anaging Director, w hich
Foreign Exchange loss (0.90) 7.71 review s,identifies and advises suitable measures to manage such risks. The executive management team reports
to the B oard of Directors periodically on the assessment and minimization of such risks.
statutory section

Cash generation from operations 5,417.88 4,497.77

Taxes paid (927.42) (627.22)
These risks can adversely impact the functioning of the Company through their effect on operating performance,
N et cash provided by operating activities 4,427.52 3,870.54
cash flow s,financial performance,management performance and overall sustainability of the Company.

CASH FLOW FROM INVESTING ACTIVITIES The risks that may affect the functioning of the Company include,but are not limited to:

(` in million) ǩ,QȍDWLRQDU\ SUHVVXUHVDQGRWKHUIDFWRUVDIIHFWLQJGHPDQGIRURXUSURGXFWV

2012 - 2013 2011 - 2012
ǩ,QFUHDVLQJ FRVWVRIUDZPDWHULDOWUDQVSRUWDQGVWRUDJHSDUWLFXODUO\GXHWRDGYHUVHIRUH[ȍXFWXDWLRQ
Purchase of fixed assets (6,600.04) (3,866.59)
Sale / (Purchase) of investments (1,071.14) (1,071.39) ǩ&RPSHWLWLYH PDUNHWFRQGLWLRQV
Interest and Dividend received 283.08 271.91 ǩ/DERXU VKRUWDJHVDQGDWWULWLRQRINH\VWDII
business review

Others (0.04) (13.59)

ǩ&RPSOLDQFH DQGUHJXODWRU\SUHVVXUHVLQFOXGLQJFKDQJHVWRWD[ODZV
Sale of AH SL equity (Extraordinary Item) 62.95 -
N et cash used in investing activities (7,325.19) (4,679.66) Your Company has a defined risk management model to identify potential risks,mitigate and monitor the occurrence
of risk.
N et Cash used in investing activities includes capital expenditure incurred on new hospital projects to the extent
of ` 4,237 million and the balance represents capital expenditure incurred on upgradation of existing facilities. Our Risk Identification: M onitoring and identification of risks is carried out at regular intervals w ith a view to improve
investments comprised mainly of investments in short term financial instruments in FY13. existing processes and procedures. This assessment is based on risk perception survey, business environment
scanning and inputs from shareholders.

Risk measurement and treatment:After risks have been identified,risk mitigation and solutions are defined,so as
to bring the risk exposure levels in line w ith the risk appetite.

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Risk reporting:W e have an established Risk Council to deal w ith any reported risks. In addition,a quarterly report is
presented to our Risk M anagement Committee,w hich review s the Enterprise Risk M anagement program to assess
the status and trends available on the material risks highlighted. clinical
performance highlights

INTERNAL CONTROLS
Your Company has established a w ide-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 inappropriate
governance
storage. Further, it strives to ensure that all transactions are evaluated, authorized, recorded and reported
An effective system of clinical governance at all levels of the health care system is essential to ensure continuous
accurately.
improvement in the safety and quality of care. Good clinical governance ensures accountability for providing good
Your Company has also put in place an extensive budgetary control review mechanism w hereby the management safe patient care. Our priorities are aimed at ensuring that our patient focus permeates the entire organization,in
regularly review s actual performance in comparison to plans and estimates draw n by budgets and forecasts. every department at every location. Apollo H ospitals focuses on standardising its processes and systems across
multiple locations to ensure that patients get the same experience and quality of care .
The system is designed to adequately ensure that financial and other records maintained are accurate and are
corporate review

reliable for preparing financial information and other data. The internal control procedures are augmented by an ACE @ 25,our clinical excellence scorecard completed four years of reporting in December 2012. Performance in
extensive programme of internal,external audits and periodic review by the management. individual parameters for many hospitals improved over 2012. The fourth Apollo clinical audit w as conducted across
all hospitals and its scope w as w idened to cover all components of the Apollo Standards of Clinical Care (TASCC).

HUMAN RESOURCES Apollo H ospitals H yderabad maintained its position as the ACE @ 25 champion amongst Group A hospitals for
The Apollo family has a total employee strength of 35,348 (including employees of our subsidiaries,joint ventures the third consecutive year. Apollo H ospitals Secunderabad w on the trophy amongst Group B hospitals and Apollo
and associates) including 5,291 doctors 8,707 nurses and 3,981 paramedical personnel. H ospitals B hilai among Group C hospitals.

The H ealthcare Services business is a labour intensive business. There are multiple touch points for patients in the The third Apollo Innovation and Quality aw ards received a record 120 nominations in the six categories from 17
entire process from preventive to diagnostic to curative services. At all these touch points human interaction is a locations. Apollo H ospitals Delhi w on the aw ard in four categories: Excellence in clinical services for its project
critical ingredient. Thus,it goes w ithout saying that the quality,sincerity and dedication of our personnel w ould have “Conversion of bolus feeding to continuous feeding in patients on enteral nutrition”; Excellence in operations
the greatest bearing on the quality of our services. for “You talk they listen”; Excellence in financial practices for the project “Check W hat You U se: Reducing Costs
statutory section

through Rationalizing the Consumption of OT Consumables for CAB G-B H surgeries”;Excellence in environmental
Your Company proactively w orks to inculcate its vision and mission as w ell as a high standard of values in each of its
conservation for “M anaging M ore w ith Less: Resource Optimization & Environment M anagement”. The aw ard for
employees. There is a long-standing commitment to create a culture that embraces diversity and fosters inclusion.
Excellence in H R practices w ent to Apollo H ospitals,Chennai for their project “N ursing Induction Programme” and
Apart from stringent selection processes,there are several initiatives in the domain of H ealth Education and Skill
for Excellence in community services to Ludhiana for their “H ealthy Kids Campaign”. The aw ards w ere given aw ay
Development. The Group has been involved in reversing the brain drain of talented Indian doctors and has built
at the Founder’s day celebrations in Chennai.
quality education infrastructure w hich includes N ursing colleges,Courses for Allied H ealth professionals,H ospital
M anagement programs and ongoing CM E’s for doctors and nurses. The Apollo Quality Program (AQP) w as strengthened in 2012 w ith a template that guided the observation methodology
for each parameter. An analysis of the parameters show ed an increase in scores for various parameters. Reporting
A structured and transparent compensation programme is follow ed across the organization. Comprehensive
of AQP has now become online on the lighthouse platform. The results of AQP w ere published in the June 2012 issue
evaluations are conducted and employees are made aw are of their performance ratings on Key Result Areas and
of the official journal of the International H ospitals Federation.
Competencies. The company follow s a holistic approach to development of people w ith a focus on grooming the
next generation of leadership. These robust process ensures a continuous supply of manpow er to support the Apollo M ortalityReview ,a standardized process for review of mortalityacross all Group hospitals w as institutionalized.
business review

organization’s patient care delivery process and fuel its grow th objectives. Apollo Critical Policies,Plans and Procedures w ere implemented across group hospitals to standardize processes.
All hospitals strived to achieve the perfect hexagon for the TASCC scores.

CAUTIONARY STATEMENT The “Share your story” initiative w as started in October 2012 w ith a view to sharing best practices amongst Apollo
Some of the statements in this M anagement Discussion & Analysis,describing the Company’s objectives,projections, Group hospitals on one chosen topic every quarter. B est practices on prevention of CR - B SI w ere also shared.
estimates,expectations and predictions may be ‘forw ard looking statements’w ithin the meaning of applicable law s
Tw o hospitals of the Group w ere reaccredited by the JCI in 2012 – H yderabad and Kolkata. Apollo H ospitals M auritius
and regulations. Actual results may differ from those expressed or implied. Important developments that could
got JCI accredited in September 2012. Apollo H ospitals,M adurai w as reaccredited by the N AB H in 2012 w hile several
alter your Company’s performance include increase in material costs, technology developments and significant
others progressed on their journey. Apollo Accreditation Program (AAP), a w eb based tool to review compliance
changes in political and economic environment,tax law s and labour relations.
w ith JCI standards across all the JCI accredited H ospitals w ithin the Apollo group w as implemented w ith quarterly
reporting.

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The 2nd International Congress on Patient Safety w as held on 1st and 2nd September, 2012 at H yderabad. The
conference w as hosted by the Apollo H ospitals Group and supported by ISQua, Joint Commission International, independentauditors’
Quality Council of India, N ational Patient Safety Foundation, FICCI, Astron, M edvarsity, CAP and other reputed
organizations. It w as attended by an overw helming 850 delegates from across the globe. Eminent personalities
performance highlights

in the patient safety space from across the globe spoke at the conference. Over 25 best practices and 20 posters report
covering all the aspects of patient care w ere also presented at this platform. It w as follow ed by a Group Quality
to the Mem bers ofApollo Hospitals Enterprise Lim ited
W orkshop attended by quality representatives of all Apollo Group hospitals.

Apollo M edicine Journal, the official journal of the Apollo Group published in collaboration w ith Elsevier is now Reporton the FinancialStatem ents
indexed on Science Direct, the w orld’s largest and leading medical sciences portal for educational institutions,
W e have audited the accompanying financial statements of Apollo H ospitals Enterprise Limited,w hich comprise the
libraries and hospitals. Thirty four issues have been published so far. Each issue is dedicated to a specialty/theme.
B alance Sheet as at M arch 31,2013,and the Statement of Profit and Loss and Cash Flow Statement for the year then
Apollo H ospitals w on recognition for its pursuit of excellence and constant innovation in various fora. Apollo H ospitals ended,and a summary of significant accounting policies and other explanatory information
received four aw ards at the H ospital M anagement Asia Aw ards 2012. Tw o projects from Apollo H ospitals Kolkata -
W e have also considered the independent audit observations of the divisional auditors for the Pharmacy Division,
corporate review

“Project ESCALATE - eleven strategies to combat antimicrobial resistance rate” and “Increase productivity through
Project Division,H yderbad Division,B ilaspur Division,M ysore Division,Vizag Division,Pune Division,Karim N agar
reduction of Average Length of Stay” and tw o projects from Indraprastha Apollo H ospitals “Apollo Community
Division and M andya Division for forming an opinion on the accounts for the respective divisions.
Outreach Programme” and “Improving Patient Satisfaction Levels” w ere aw arded.

Apollo H ospitals emerged as the leading hospital in most cities and major specialities in the report published by Managem ent’s Responsibility for the FinancialStatem ents
the W EEK in December 2012 w ith Apollo H ospitals,Chennai being rated as the second best multi specialty hospital M anagement is responsible for the preparation of these financial statements that give a true and fair view of the
in the private sector and Indraprastha Apollo H ospitals,Delhi the 4th best multi-specialty hospital in the private financial position,financial performance and cash flow s of the Company in accordance w ith the Accounting Standards
sector. referred to in sub-section (3C) of section 211 of the Companies Act,1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the preparation and presentation of the financial
Apollo H ospitals has become the first largest solid organ transplant program in the w orld by performing 1,200 solid
statements that give a true and fair view and are free from material misstatement,w hether due to fraud or error.
organ transplants (360 liver and 840 kidney) in the year 2012.

Apollo Gleneagles H ospitals,Kolkata w on the Institute for Competiveness (IFC) - M int Strategy Aw ard during the
statutory section

Auditor’s Responsibility
inaugural Porter Prize edition in India on 29th September,2012.
Our responsibility is to express an opinion on these financial statements based on our audit. W e conducted our
Our consultants continued their pursuit of excellence treating rare cases and performing rare procedures, w hile audit in accordance w ith the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those
also w riting books and contributing book chapters,publishing their clinical research and cases in medical journals Standards require that w e comply w ith ethical requirements and plan and perform the audit to obtain reasonable
w orldw ide,lecturing nationally and internationally and receiving numerous aw ards from various governmental and assurance about w hether the financial statements are free from material misstatement.
non governmental organizations.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment,including the assessment of the risks of
material misstatement of the financial statements,w hether due to fraud or error. In making those risk assessments,
the auditor considers internal controls relevant to the Company’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes
business review

evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates
made by management,as w ell as evaluating the overall presentation of the financial statements.

W e believe that the audit evidence w e have obtained is sufficient and appropriate to provide a basis for our audit
opinion.

Opinion
In our opinion and to the best of our information and according to the explanations given to us,the financial statements
give the information required by the Act in the manner so required and give a true and fair view in conformity w ith
the accounting principles generally accepted in India:

annual report 2012–13

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a) in the case of the B alance Sheet,of the state of affairs of the Company as at M arch 31,2013;
b) in the case of the Profit and Loss Account,of the PROFIT for the year ended on that date;and
c) in the case of the Cash Flow Statement,of the cash flow s for the year ended on that date
annexure
performance highlights

Reporton other Legaland Regulatory Requirem ents to the auditors’report

1. As required by the Companies (Auditor’s Report) Order,2003 issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act,w e give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
The Annexure referred to in paragraph 1 ofOur Reportofeven date to the m em bers ofApollo Hospitals Enterprise
2. As required by section 227(3) of the Act,w e report that: Lim ited. On the accounts ofthe com pany for the year ended 31stMarch,2013.

a) w e have obtained all the information and explanations w hich to the best of our know ledge and belief w ere On the basis of such checks as w e considered appropriate and according to the information and explanation given to
necessary for the purpose of our audit; us during the course of our audit,w e report that:
corporate review

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears 1. (a) The company is maintaining proper records show ing full particulars including quantitative details and
from our examination of those books situation of its fixed assets.

c) The B alance Sheet,Statement of Profit and Loss,and Cash Flow Statement dealt w ith by this Report are in (b) The company has a program of physical verification of its fixed assets by w hich all fixed assets are verified
agreement w ith the books of account. in a phased manner over a period of three years. In our opinion, this periodicity of physical verification
is reasonable having regard to the size of the company and the nature of its assets. According to the
d) in our opinion,the B alance Sheet,Statement of Profit and Loss,and Cash Flow Statement comply w ith the information and explanations given to us,no material discrepancies w ere observed by the management on
Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act,1956; such verification.

e) on the basis of w ritten representations received from the Directors as on M arch 31, 2013, and taken on (c) In our opinion and according to the information and explanations given to us, the fixed assets that have
record by the B oard of Directors, none of the Directors is disqualified as on M arch 31, 2013, from being been sold/disposed off during the year do not constitute a substantial part of the total fixed assets of the
appointed as a Director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act,1956. company. H ence,the going concern assumption has not been affected.
statutory section

f) Since the Central Government has not issued any notification as to the rate at w hich the cess is to be 2. (a) Stock of medicines, stores, spares, consumable, chemicals lab materials and surgical instruments have
paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, been physically verified at reasonable intervals by the management.
prescribing the manner in w hich such cess is to be paid,no cess is due and payable by the Company.
(b) In our opinion and according to the information and explanations given to us,the procedures of physical
verification of stock of medicines, stores, spares, consumable, chemicals lab materials and surgical
instruments follow ed by the management are reasonable and adequate in relation to the size of the company
17,B ishop W allers Avenue (W est), For M/s S Visw anathan
and the nature of its business.
CIT Colony,M ylapore, Chartered Accountants
Chennai – 600 004 FRN :004770S (c) In our opinion and on the basis of our examination of the records,the Company is generally maintaining
proper records of its inventories. N o material discrepancy w as noticed on physical verification of stocks by
V C Krishnan the management as compared to book records.
business review

Place:Chennai Partner
Date :20th M ay 2013 M embership N o:022167 3. (a) According to the information and explanations given to us and on the basis of our examination of the books
of account,the Company has not granted any loans,secured or unsecured,to companies,firms or other
parties listed in the register maintained under Section 301 of the Companies Act,1956. Consequently,the
provisions of clauses 3 (b),3(c) and 3 (d) of the order are not applicable to the Company.

(b) According to the information and explanations given to us and on the basis of our examination of the books
of account,the Company has not taken loans from companies,firms or other parties listed in the register
maintained under Section 301 of the Companies Act,1956. Thus sub clauses (f) & (g) are not applicable to
the company.

annual report 2012–13

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4. In our opinion and according to the information and explanations given to us,and having regard to the explanation Nam e ofthe statute Nature ofthe Am ount Period to w hich the Forum w here dispute is
that some of the items purchased are of special nature and suitable alternatives sources do not exists for dues (` in m illion) am ountrelates pending
obtaining comparable quotations, there is generally an adequate internal control procedure commensurate 31.03.2013
w ith the size of the company and the nature of its business,for the purchase stores,medicines and fixed assets
performance highlights

Andhra Pradesh Sales tax 1.04 Assessment Years @ Appellate Tribunal

for sale of goods and services. During the course of our audit,w e have not observed any major w eaknesses in
General Sales Tax 2002-03,2003-04, H yderabad
the internal control system.
2004-05,2010-11
5. a) B ased on the audit procedures applied by us and according to the information and explanations provided by Customs Act, Customs duty 25.99 1996,1997 # Assistant Collector
the management,the particulars of contracts or arrangements referred to in section 301 of the Act have 1962 of Customs (Chennai &
been entered in the register required to be maintained under that section. H yderabad)
Value Added Value Added Tax 2.27 2008-09,2009-10, ## Deputy Commissioner
b) In our opinion and according to the information and explanations given to us the transactions made in Tax Act,2004 2010-11 of Commercial Tax
pursuance of such contracts or arrangements have been made at prices w hich are reasonable, having (Enforcement),M ysore
regard to the prevailing market prices. 40.86 Assessment Year Department has gone on
corporate review

2008-2009, appeal to ITAT

6. In our opinion and according to the information and explanations given to us,the Company has complied w ith
2001-02
the directives issued by the Reserve B ank of India and provisions of Section 58A,Section 58AA and other relevant
38.95 Assessment Year Department has filed
provisions of the Companies Act,1956 and Companies (Acceptance of Deposits) Rules,1975 w ith regard to the
1996-1997, appeal before M adras H igh
deposits accepted from the public including unclaimed deposits matured in earlier years that are outstanding
1997-1998 Court
during the year. To the best of our know ledge and according to the information and explanations given to us,no
1999-2000,
order has been passed by the Company Law B oard,N ational Company Law Tribunal or Reserve B ank of India or
Income Tax Act, Income 2000-2001
any Court or any other Tribunal on the Company in respect of the aforesaid deposits.
1961 Tax 77.24 Assessment Year CIT (Appeals)
7. The Company has appointed firms of Chartered Accountants,including a Private Limited Company as Internal 2009-2010 &
Auditors for its various Divisions and pharmacies. On the basis of the reports submitted by them to the 2010-2011
management,in our opinion,the internal audit system is reasonable having regard to the size and nature of its 136.76 Assessment Year @ @ H onourable
statutory section

business. 2000-2001 Supreme Court

0.11 Assessment Year CIT (Appeals)
8. According to the information and explanations given to us, the Central Government has not prescribed the
2010-2011 &
maintenance of cost records under Section 209(1) (d) of the Companies Act,1956 for any of the activities of the
2011-2012
Company.
TOTAL 323.22
9. (a) According to the information and explanations given to us, the Company is regular in depositing w ith @ Refer Clause (i) (c) N ote 29 - N otes forming part of Accounts
appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and @ @ Refer Clause (i) (c) N ote 29 - N otes forming part of Accounts
Protection Fund, Employees’ State Insurance, Income Tax, Sales Tax, Service tax, Customs Duty, Cess, # Refer Clause (i) (c) N ote 29 - N otes forming part of Accounts
W ealth Tax and other statutory dues applicable to it. To the best of our know ledge and according to the ## Refer Clause (i) (c) N ote 29 - N otes forming part of Accounts
information and explanations given to us, there are no arrears of outstanding statutory dues as at 31st
10. In our opinion and according to the information and explanations given to us,the Company has no accumulated
M arch 2013 for a period of more than six months from the date they became payable. To the best of our
business review

losses as at 31st M arch 2013. The Company has also not incurred cash losses in the financial year and in the
know ledge and belief and according to the information and explanations given to us, excise duty is not
immediately preceding financial year.
applicable to this Company.
11. In our opinion and according to the information and explanations given to us,the Company has not defaulted in
(b) According to the information and explanations given to us and the records of the company examined by us, repayment of any dues to financial institutions,banks and debenture holders.
there are no dues disputed w ith respect to Cess,W ealth Tax and Service tax. The particulars of Sales tax,
Customs duty and Income tax w hich have not been deposited on account of any dispute are as follow s: 12. In our opinion and according to the information and explanations given to us,the Company has not granted any
loans and advances on the basis of security by w ay of pledge of shares,debentures and other securities.

13. In our opinion and according to the information and explanations given to us,the Company is not a Chit Fund,
N idhi,M utual B enefit Fund or Society and hence Clause (xiii) of the Companies(Auditor’s Report) Order,2003,as
amended by the Companies ( Auditor’s Report) ( Amendment) Order,2004 is not applicable to the Company.

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14. B ased on our examination of the records and evaluation of the related internal controls,w e are of the opinion
that proper records have been maintained of the transactions and contracts relating to shares, securities,
debentures and other investments dealt in by the Company and timely entries have been made in the records.
W e also report that the Company has held and dealt w ith shares,securities,debentures and other investments
performance highlights

in its ow n name.

15. In our opinion and according to the information and explanations given to us,the Company has given guarantees
for loans taken by Joint Venture Companies,subsidiaries ,from banks and financial institutions,the terms and
conditions w hereof are not prejudicial to the interest of the Company.

16. In our opinion and according to the information and explanations given to us, the Company has availed term
loans and the said term loans have been used for the purpose for w hich the term loans have been obtained

17. In our opinion and according to the information and explanations given to us,the Company has not used any
funds raised on short term basis for long term investments.
corporate review

18. The Company has issued and allotted 3,276,922 equity w arrants convertible into equity shares of nominal value
of ` 5/- each at premium of ` 467.46 per share on 5th February 2011 to a promoter covered in the register
maintained under section 301 of the Companies Act 1956. The issue price is at a minimum price of ` 472.46
fixed in accordance w ith the guidelines for preferential issues of the Securities and Exchange B oard of India
(Issue of Capital and Disclosure Requirements) Regulations 2009. Accordingly the promoter has paid 25% of the standalone financial
consideration @ `472.46 per w arrant on the date of allotment. On receipt of the balance 75% of the consideration
from the promoter,the Company alloted 3,276,922 equity shares of nominal values of ` 5/- each at a premium
of ` 467.46 per share on 25th July 2012 w hich is w ithin 18 months from the date of allotment of w arrants.
statements
19. The Company had issued 10.30% Secured Redeemable N on-convertible debentures in the year 2010-11 and
also issued 10.15% Secured Redeemable N on-convertible debentures in the year 2011-12 for w hich a pari-
statutory section

passu first charge on all fixed assets of the Company has been created. During the year 2012-13 the Company
has issued 9.80% Secured Redeemable N on-Convertible debentures for w hich a pari-passu first charge on all
fixed assets of the Company has been created.

20. During the year the management has not raised money through public issue and hence w e offer no comments
on the same.

21. According to the information and explanations given to us,by the Company,no fraud on or by the Company has
been noticed or reported,during the year.
business review

17,B ishop W allers Avenue (W est), For M/s S Visw anathan

CIT Colony,M ylapore, Chartered Accountants
Chennai – 600 004 FRN :004770S

V C Krishnan
Place:Chennai Partner
Date :20th M ay 2013 M embership N o:022167

annual report 2012–13

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balance sheet
as at 31st M arch 2013 (` in million)
statementofprofit&loss
for the year ended 31st M arch 2013
performance highlights

(` in million)
Particulars Note 31.03.2013 31.03.2012
I. EQU ITY AN D LIAB ILITIES Particulars Note 31.03.2013 31.03.2012
I. REVEN U E FROM OPERATION S 23 33,177.91 28,000.72
1 Shareholders’funds
(a) Share Capital 2 695.63 672.33 II. OTH ER IN COM E 24 310.27 278.48
(b) Reserves and Surplus 3 26,580.34 22,463.28 TOTAL REVENUE 33,488.18 28,279.20
(c) M oney received against share w arrants 4 - 387.05 III. EXPEN SES
2 N on-currentliabilities (a) Cost ofm aterials consum ed during the year 25 8,642.58 7,846.63
(a) Long-term borrow ings 5 8,787.77 4,216.69 (b) Puchase ofStock-in-Trade 8,639.91 6,898.82
(b) Deferred tax liabilities (N et) 6 2,394.11 1,700.85 (c ) Changes in inventories ofstock-in-trade (84.26) (190.69)
(c) Other Long term liabilities 7 37.65 47.77 (d) Em ployee benefits expense 26 5,243.99 4,285.07
corporate review

3 Currentliabilities (e) Finance costs 27 726.25 636.03

(a) Short-term borrow ings 8 189.28 1,382.97 (f) D epreciation and am ortization expense 1,085.20 911.28
(b) Trade payables 1,763.42 1,709.36 (g) Other expenses 28 5,200.16 4,516.91
(c) Other current liabilities 10 2,037.58 1,572.68 TOTAL EXPENSES 29,453.84 24,904.05
(d) Short-term provisions 11 1,060.03 773.23 IV. PROFIT B EFORE EXCEPTION AL AN D 4,034.34 3,375.15
TOTAL 43,545.81 34,926.21 EXTRAORDIN ARY ITEM S AN D TAX
II. ASSETS V. EXTRAORDIN ARY ITEM S * 45.45 -
1 N on-CurrentAssets VI. PROFIT B EFORE TAX 4,079.79 3,375.15
(a) Fixed assets VII. TAX EXPEN SE
(i) Tangible assets 12 16,774.72 14,238.84 (a) Current tax (M AT ) 798.37 648.98
(ii) Intangible assets 13 140.41 121.21 (b) Less:M AT Credit Entitlem ent (502.92) (213.52)
(iii) Capital w ork-in-progress 14 3,579.23 1,893.15 (c ) N et Current Tax 295.45 435.46
statutory section

(iv) Intangible assets under development 148.07 116.23 (d) D eferred tax 6 693.26 629.79
(b) N on-current investments 15 5,254.50 6,470.10 VIII. PROFIT / (LOSS)FOR TH E PERIOD 3,091.08 2,309.90
(c) Long-term loans and advances 16 3,015.98 2,446.32 31
IX. EARN IN GS PER EQU ITY SH ARE OF FACE
2 CurrentAssets VALU E OF ` 5 EACH
(a) Current investments 17 3,705.85 1,171.08
B efore Extraordinary Item
(b) Inventories 18 2,053.88 1,827.09
B asic (in `) 22.10 17.72
(c) Trade receivables 19 4,266.09 3,537.70
D iluted (in `) 21.89 17.16
(d) Cash and cash equivalents 20 2,554.66 1,869.55
After Extraordinary Item
(e) Short-term loans and advances 21 1,899.33 976.65
B asic (in `) 22.43 17.72
(f) Other current assets 22 153.09 258.29
D iluted (in `) 22.22 17.16
TOTAL 43,545.81 34,926.21 X. NOTES FORMING PART OF ACCOUNTS 1-44
III. N OTES FORM IN G PART OF ACCOU N TS 1-44
business review

* Represents profit on sale ofthe Com pany’s equity investm ent in Apollo Health Street Lim ited

As per our Report annexed For and on behalfofthe B oard ofD irectors As per our Report annexed For and on behalfofthe B oard ofD irectors
For M/s. S. Visw anathan Krishnan Akhilesw aran Dr. Prathap C Reddy For M/s. S. Visw anathan Krishnan Akhilesw aran Dr. Prathap C Reddy
Chartered Accountants ChiefFinancial Officer Executive Chairm an Chartered Accountants ChiefFinancial Officer Executive Chairm an
Firm Registration N o.004770S Firm Registration N o.004770S
V C Krishnan S M Krishnan Preetha Reddy V C Krishnan S M Krishnan Preetha Reddy
Partner [Link] M anager - Finance & Com pany Secretary M anaging D irector Partner [Link] M anager - Finance & Com pany Secretary M anaging D irector
(M em bership N o.022167) (M em bership N o.022167)
17,B ishop W allers Avenue W est Suneeta Reddy 17,B ishop W allers Avenue W est Suneeta Reddy
M ylapore,Chennai - 600 004 Joint M anaging D irector M ylapore,Chennai - 600 004 Joint M anaging D irector

Place :Chennai Place :Chennai

D ate : 20th M ay 2013 D ate : 20th M ay 2013

annual report 2012–13

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b. On assets installed prior to 2nd April 1987 on straight-line method at the rates equivalent to the Income Tax
notesformingpart rates.

ii. Depreciation on new assets acquired during the year is provided at the rates applicable from the date of
performance highlights

ofaccounts acquisition to the end of the financial year.

iii. In respect of the assets sold during the year,depreciation is provided from the beginning of the year till the date
of its disposal.

1. SIGNIFICANT ACCOUNTING POLICIES iv. Individual assets acquired for ` 5,000/- and below are fully depreciated in the year of acquisition.

A. Basis ofPreparation ofFinancialStatem ents v. Amortization:

The financial statements are prepared under the historical cost convention under accrual method of accounting
a. The cost/premium of land and building taken on lease by the Company from Orient H ospital,M adurai w ill
and as a going concern,in accordance w ith the Generally Accepted Accounting Principles (GAAP) prevalent in
be amortised over a period of 30 years though the lease is for a period of 60 years.
India and the M andatory Accounting Standards as notified under the Companies (Accounting Standards) Rules,
corporate review

2006 and according to the provisions of the Companies Act,1956. The cost/premium of land and building taken additionally on lease by the Company at M adurai is for a period
of 9 years w ith an option to extend the lease by another 16 years. The depreciation on the leasehold building
B. Inventories is charged on a straight line basis w ith the lease period being considered as 25 years.
1. The inventories of all medicines,medicare items traded and dealt w ith by the Company are valued at cost. In
The Company has taken land in Karaikudi from Apollo H ospitals Educational Trust on lease for a period
the absence of any further estimated costs of completion and estimated costs necessary to make the sale,the
of 30 years. The building constructed on the lease land is amortised over a period of 30 years. This is
N et Realisable Value is not applicable. Cost of these inventories comprises of all costs of purchase and other
in conformity w ith the definition of lease term as per Clause 3 of AS 19 ‘Leases’ as notified under the
costs incurred in bringing the inventories to their present location after adjusting for VAT w herever applicable,
Companies (Accounting Standards) Rules,2006.
applying the FIFO method.
b. Lease rental on operating leases is recognised as an expense in the Statement of Profit and Loss on
2. Stock of provisions, stores (including lab materials and other consumables), stationeries and housekeeping
straight-line basis as per the terms of the agreement in accordance w ith Accounting Standard 19 ‘Leases’
items are stated at cost. The net realisable value is not applicable in the absence of any further modification/
as notified under the Companies (Accounting Standards) Rules,2006.
statutory section

alteration before being consumed in-house only. Cost of these inventories comprises of all costs of purchase
and other costs incurred in bringing the inventories to their present location,after adjusting for VAT w herever
applicable applying the FIFO method.
E. Revenue Recognition
a. Income from H ealthcare Services is recognised on completed service contract method. The hospital collections
3. Surgical instruments,linen,crockery and cutlery are valued at cost and are subject to 1/3rd w rite off w herever of the Company are net of discounts. Revenue also includes the value of services rendered pending final billing
applicable applying the FIFO method. The net realisable value is not applicable in the absence of any further in respect of in-patients undergoing treatment as on 31st M arch 2013.
modification/alteration before being consumed in-house. Cost of these inventories comprises of all costs of
purchase and other costs incurred in bringing the inventories to their present location. b. Pharmacy Sales are recognised w hen the risk and rew ard of ow nership is passed to the customer and are stated
net of returns,discounts and exclusive of VAT w herever applicable.
4. Imported inventories are accounted for at the applicable exchange rates prevailing on the date of the transaction.
(Also refer N ote 28 in the N otes forming part of Accounts). c. H ospital Project Consultancy income is recognised as and w hen it becomes due, on percentage completion
method,on achievement of milestones.
business review

C. Prior Period Item s and Extraordinary Item s d. Income from Treasury Operations is recognised on receipt or accrual basis w hichever is earlier.
Prior period items and extraordinary items are separately classified,identified and dealt w ith as required under
e. Interest income is recognised on a time proportion basis taking into account the principal amount outstanding
Accounting Standard 5 on ‘N et Profit or Loss for the Period, Prior Period Items and Changes in Accounting
and the rate applicable.
Policies’as notified under the Companies (Accounting Standards) Rules,2006
f. Royalty income is recognised on an accrual basis in accordance w ith the terms of the relevant agreement.
D. Depreciation and Am ortisation:
i. Depreciation has been provided g. Dividend income is recognised as and w hen the ow ner’s right to receive payment is established.

a. On assets installed after 1st April,1987 on straight line method at rates specified in Schedule XIV of the
Companies Act,1956 on single shift basis.

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F. Fixed Assets I. Em ployee Benefits

a. All Fixed Assets are stated at their original cost of acquisition less accumulated depreciation and impairment Short-term employee benefits (benefits w hich are payable w ithin tw elve months after the end of the period in w hich
losses are recognised w here necessary (Also refer N ote 1(O) in the N otes forming part of Accounts). Additional the employees render service) are measured at cost.
performance highlights

costs relating to the acquisition and installation of fixed assets are capitalised. W herever VAT is eligible for input
Long-term employee benefits (benefits w hich are payable after the end of tw elve months from the end of the period
availment,Fixed Assets are stated at cost of acquisition after deduction of input VAT.
in w hich employees render service),and post employment benefits (benefits w hich are payable after completion of
b. Capital w ork–in–progress comprises of amounts expended on development/acquisition of Fixed Assets that employment),are measured on a discounted basis by the Projected U nit Credit M ethod,on the basis of annual third
are not yet ready for their intended use at the B alance Sheet Date. Expenditure during construction period party actuarial valuations.
directly attributable to the projects under implementation is included under Capital w ork- in –progress,pending
allocation to the assets. Advances paid to acquire fixed assets is included under long term loans and advances
Defined Contribution Plan
as per revised Schedule VI.
The Company makes contributions tow ards Provident Fund and Employees State Insurance as a defined contribution
c. Assets acquired under H ire Purchase agreements are capitalised to the extent of principal value,w hile finance retirement benefit fund for qualifying employees.
charges are charged to revenue on accrual basis.
The Provident Fund Plan is operated by the Regional Provident Fund Commissioner. U nder the scheme,the Company
corporate review

d. Interest on borrow ings,for acquisition of Fixed Assets and exchange fluctuation arising out of foreign borrow ings
is required to contribute a specified percentage of payroll cost,as per the statute,to the retirement benefit schemes
and the related revenue expenditure incurred for the period prior to the commencement of operations for the
to fund the benefits. Employees State Insurance dues are remitted to the Employees State Insurance Corporation.
expansion activities of the Company are capitalised.

G. Transactions in Foreign Currencies Defined BenefitPlans

a. M onetary items relating to foreign currency transactions remaining unsettled at the end of the year are translated
For Defined B enefit Plan the cost of providing benefits is determined using the Projected U nit Credit M ethod w ith
at the exchange rates prevailing at the date of the B alance Sheet. The difference in translation of monetary
actuarial valuation being carried out at each B alance Sheet date. Actuarial Gains or Losses are recognised in full in
items and the realised gains and losses on foreign exchange transactions are recognised in the Statement of
the Statement of Profit and Loss for the period in w hich they occur.
Profit and Loss in accordance w ith Accounting Standard 11 – ‘The Effects of Changes in Foreign Exchange Rates
(Revised 2003)’,as notified under the Companies (Accounting Standards) Rules,2006 (Also refer N ote 28 (d) in a. Gratuity
the N otes forming part of Accounts).
The Company makes an annual contribution to the Employees’Group Gratuity-cum-Life Assurance Scheme of
statutory section

b. Exchange differences arising on settlement or restatement of foreign currency denominated liabilities borrow ed
the ICICI and Life Insurance Corporation of India,for funding defined benefit plan for qualifying employees w hich
for the acquisition of Fixed Assets are now capitalised based on Para 46A of Accounting Standard 11 – ‘The
is recognised as an expense. The Scheme provides for lump sum payment to vested employees at retirement,
Effects of Changes in Foreign Exchange Rates (Revised 2003)’.
death w hile in employment,or on termination of employment of an amount equivalent to 15 days salary payable
c. The use of foreign currency forw ard/sw ap contracts is governed by the Company’s policies approved by the for each completed year of service,or part thereof in excess of six months. Vesting occurs upon completion of
B oard of Directors. These hedging contracts are not meant for speculation. five years of service. The Company restricts the payment of gratuity to the employees below the rank of General
M anagers to the limits specified in the payment of Gratuity Act,1972. H ow ever the Company complies w ith the
H. Investm ents norms of Accounting Standard 15.
Investments are classified as current or long term in accordance w ith Accounting Standard 13 on ‘Accounting for
Investments'
b. Leave Encashm entBenefits
a. Long-term investments are stated at cost to the Company in accordance w ith Accounting Standard 13 on
The Company pays leave encashment B enefits to employees as and w hen claimed,subject to the policies of the
‘Accounting for Investments'. The Company provides for diminution in the value of Long-term investments other
business review

Company. The Companyprovides leave benefits through an annual contribution to the fund managed byH DFC Life.
than those temporary in nature.
b. Current investments are valued at low er of cost and fair value. Any reduction to carrying amount and any
J. Borrow ing Cost
reversals of such reductions are charged or credited to the Statement of Profit and Loss.
B orrow ing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part
c. On disposal of an investment,the difference betw een the carrying amount and net disposal proceeds is charged
of the cost of such asset. As per Accounting Standard 16 ‘B orrow ing costs’,a qualifying asset is one that takes a
or credited to the Statement of Profit and Loss.
necessarily substantial period of time to get ready for its intended use. All other borrow ing costs are expensed as
d. In case of foreign investments, and w hen incurred.
i. The cost is the rupee value of the foreign currency on the date of investment.
ii. The face value of the foreign investments is show n at the face value reflected in the foreign currency of that
country.

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K. Segm entReporting namely the differences that originate in one accounting period and get reversed in another,based on the tax effect
of the aggregate amount being considered. Deferred tax asset are not recognized unless there is virtual certainty
Identification ofSegm ents that sufficient future taxable income w ill be available against w hich such deferred tax asset can be realized. The
The Company has complied w ith Accounting Standard 17- ‘Segment Reporting’ w ith B usiness as the primary tax effect is calculated on the accumulated timing differences at the beginning of the accounting year based on the
performance highlights

segment. prevailing enacted or substantively enacted regulations.

The Company operates in a single geographical segment,w hich is India,and the products sold in the pharmacies,
O. Im pairm ent
are regulated under the Drug Control Act, w hich applies uniformly all over the Country. The risk and returns of
the enterprise are very similar in different geographical areas w ithin the Country and hence there is no reportable The carrying amounts of assets are review ed at each B alance Sheet date to ascertain if there is any indication

secondary segment as defined in Accounting Standard 17. of impairment based on internal/external factors. An asset is treated as impaired based on the cash generating
concept at the year end, w hen the carrying cost of an asset exceeds its recoverable value, in terms of Para 5 to
Para 13 of AS-28 ‘Impairment of Assets’as notified under the Companies (Accounting Standards) Rules,2006 for
Segm entPolicies
the purpose of arriving at impairment loss thereon,if any. An impairment loss is charged to the Statement of Profit
The accounting policies adopted for segment reporting are in line w ith the accounting policies adopted in consolidated and Loss in the year in w hich an asset is identified as impaired. The impairment loss recognized in prior accounting
corporate review

financial statements w ith the follow ing additional policies for Segment Reporting: periods is reversed if there has been a change in the estimate of the recoverable amount.

i. Revenue and expenses have been identified to segments on the basis of their relationship to the operating
activities of the segment. Revenue and expenses,w hich relate to the enterprise as a w hole and are not allocable P. Bad Debts Policy
to segments on a reasonable basis,have been included under “unallocable expenses”. The B oard of Directors approves the B ad Debt Policy, on the recommendation of the Audit Committee, after the
review of debtors every year. The standard policy for w rite off of bad debts is as given below subject to management
ii. Inter segment revenue and expenses are eliminated. inputs on the collectability of the same

The Company has disclosed this Segment Reporting in Consolidated Financial Statements as per para (4) of
Period % of w rite off
Accounting Standard – 17- ‘Segment Reporting’
0-1 years 0%
1-2 years 25%
L. Earnings per Share 2-3 years 50%
statutory section

In determining the earnings per share,the Company considers the net profit after tax before extraordinary items Over 3 years 100%
and after extraordinary items and includes the post - tax effect of any extraordinary items. The number of shares
used in computing the basic earnings per share is the w eighted average number of shares outstanding during the
Q. Miscellaneous Expenditure
period. For computing diluted earnings per share,potential equity shares are added to the above w eighted average
Preliminary,Public Issue,Rights Issue Expenses and Expenses on Private Placement of shares are amortised over
number of shares.
10 years.
M. Lease
Operating Lease R. Intangible Assets
Leases w here the lessor effectively retains substantially all the risks and the benefits of ow nership of the leased Intangible assets are initially recognised at cost and amortised over the best estimates of their useful lives. Cost of
assets are classified as operating leases. Operating lease payments are recognised as an expense in the Statement softw are including directly attributable cost,if any,acquired for internal use,is allocated / amortised over a period
of Profit and Loss on a straight – line basis over the lease term. of 36 months to 120 months.
business review

N. Taxation S. Provisions,ContingentLiabilities and ContingentAssets

i. Incom e Tax A provision is recognised w hen the Company has a present obligation as a result of a past event and it is probable
that an outflow of resources embodying economic benefits w ill be required to settle the obligation and a reliable
Income tax is computed using the tax effect accounting method,w here taxes are accrued in the same period as and
estimate can be made of the amount of the obligation.
w hen the related revenue and expense arise. A provision is made for Income Tax annually based on the tax liability
computed after considering tax allow ances and exemptions. Contingent liabilities are not provided for unless a reliable estimate of probable outflow to the Company exists as at
ii. Deferred Tax the B alance Sheet date. Contingent assets are neither recognised nor disclosed in the financial statements.

The differences that result betw een the profit calculated for income tax purposes and the profit as per the financial
statements are identified and thereafter deferred tax asset or deferred tax liability is recorded for timing differences,

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T Derivative FinancialInstrum ents a. The Company had issued 9,000,000 Global Depository Receipts of ` 10/- (now 18,000,000 Global Depository

The company is exposed to foreign currency fluctuations on foreign currency loans and payables. The company Receipts of ` 5/-) each w ith tw o w ay fungibility during the year 2005-06. Total GDR’s converted into underlying

limits the effect of foreign exchange rate fluctuations by follow ing established risk management policies including Equity Shares for the year ended on 31st M arch 2013 is 4,597,869(2011-12: 5,396,660) of ` 5/- each and total
equity shares converted back to GDR for the year ended 31st M arch 2013 is 10,949 (2011-12: 7,689,329) of
performance highlights

the use of derivatives. The company enters into derivative financial instruments w here the counterparty is a bank.
` 5/- each. Total GDR’s converted into equity shares upto 31st M arch 2013 is 24,931,729 (2011-12:20,333,860) of
All derivatives are effective hedges against an underlying liability and any cash flow s are recognised as and w hen ` 5/- each.
they occur. Attributable transaction costs are recognised in statement of income as cost.
3. RESERVES AND SURPLUS
Gain/losses on settlement of foreign currency derivative instruments relating to borrow ings w hich have not been
(` in million)
designated as hedges are recorded in finance expense.
Particulars 31.03.2013 31.03.2012
2. SHARE CAPITAL a. Capital Reserves
Opening B alance 18.26 18.26
(` in million)
Closing Balance 18.26 18.26
Particulars Am ount Amount
corporate review

Authorised b. Capital Redem ption Reserve

200,000,000(2011-12 :200,000,000) Equity Shares of ` 5/- each 1,000.00 1,000.00 Opening B alance 60.02 60.02
1,000,000(2011-12 :1,000,000) Preference Shares of ` 100/- each 100.00 100.00 Closing Balance 60.02 60.02
1,100.00 1,100.00 c. Securities Prem ium Account
Issued Opening B alance 15,195.66 10,830.18
139,658,177 ( 2011-12 :134,999,636) Equity Shares of ` 5/- each 698.29 675.00 Add :Securities premium credited on Share issue 1,942.86 4,365.48
Subscribed and Paid up Closing Balance 17,138.52 15,195.66
139,125,159 (2011-12 :134,466,618 )Equity Shares of ` 5/- each fully 695.63 672.33 d. Debenture Redem ption Reserve
paid up Opening B alance 170.00 100.00
(+) Current Year Transfer 630.00 70.00
31.03.2013 31.03.2012 Closing Balance 800.00 170.00
Equity Shares Equity Shares e. General Reserve
Particulars
statutory section

Num ber Am ount Num ber Am ount Opening B alance 5,249.03 3,749.03
` in m illion ` in m illion (+) Current Year Transfer 1,000.00 1,500.00
Shares outstanding at the beginning of the year 134,466,618 672.33 124,710,710 623.55 Closing Balance 6,249.03 5,249.03
Shares Issued to IFC on conversion of FCCB B onds * 1,381,619 6.91 - - f. Investm entAllow ance Reserve
Shares Issued on Qualified Institutional Placement - - 6,666,666 33.33
Opening B alance 7.63 7.63
Scheme Closing Balance 7.63 7.63
Shares Issued on Conversion of Share w arrants# 3,276,922 16.38 3,089,242 15.45
g. Foreign Exchange Fluctuation Reserve
Shares outstanding atthe end ofthe year 139,125,159 695.63 134,466,618 672.33
* Refer N ote 5(j) Opening B alance 0.19 0.19
# Refer N ote 4 Closing Balance 0.19 0.19
h. Surplus
SHAREHOLDERS HOLDING MORE THAN 5% OF TOTAL PAID UP CAPITAL Opening balance 1,762.50 1,647.72
business review

(-) Dividend paid on FCCB loan and Share W arrants* 21.66 -

31.03.2013 31.03.2012
(+) N et Profit/(N et Loss) for the current year 3,091.08 2,309.90
Equity Shares Equity Shares (-) Proposed Dividend on Equity Shares for the year 765.19 537.87
Nam e ofthe Shareholder
No. of % ofHolding No. of % ofHolding (-) Dividend Distribution Tax on proposed dividend on Equity 130.04 87.26
Shares held Shares held Shares
PCR Investments Ltd 21,313,124 15.32 21,313,124 15.85 (-) Transfer to Reserves 1,000.00 1,500.00
Integrated (M auritius) H ealthcare H oldings Ltd 11,000,000 7.90 11,000,000 8.18 (-) Transfer to Debenture Redemption Reserve 630.00 70.00
Oppenheimer Developing M arkets Fund 10,507,859 7.55 - - Closing Balance 2,306.69 1,762.50
H STN Acquisition (FII) Limited 4,417,069 3.17 13,446,657 10.00 Total 26,580.34 22,463.28

CLSA (M auritius) Ltd - - 8,550,000 6.36

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* Represents dividend paid on shares resulting from conversion of FCCB loan granted by IFC and preferential equity b. 10.15% Non Convertible Debentures
w arrants issued to Dr. Prathap C Reddy,subsequent to the board meeting date,but prior to the date of closure of the The Company issued 1,000 N os. 10.15% N on Convertible Redeemable Debentures of ` 1 million each on 22nd
share transfer register viz 28th July 2012. M arch 2012 w ith an option to re-purchase/re-issue some or all of its debentures in the secondary market or
otherw ise,at any time prior to the specified date of redemption of 22nd M arch 2017. During the year debentures
performance highlights

4. The Company issued and allotted 3,276,922 equity w arrants convertible into equity shares of nominal value amounting to ` 60/- million w ere redeemed as per the terms and conditions of the issue and the residual
of ` 5/- each at a premium of ` 467.46 per share on 5th February 2011 to Dr. Prathap C Reddy, one of the debenture of ` 940 million is outstanding as of 31st M arch 2013.
promoters of the Company on a preferential allotment basis. The issue price of ` 472.46 w as determined in
c. 9.80% Non Convertible Debentures
accordance w ith the guidelines for preferential issues of the Securities and Exchange B oard of India (Issue of
Capital and Disclosure Requirements) Regulations 2009. On receipt of the full consideration from the promoter, The Company issued 1250 N os. 9.80% N on Convertible Redeemable Debentures of ` 1 million each on 11th July
the Company alloted 3,276,922 equity shares of nominal value of ` 5/- each at a premium of ` 467.46 per share 2012 w ith an option to re-purchase/re-issue some or all of its debentures in the secondary market or otherw ise
on 25th July 2012 w hich is w ithin 18 months from the date of allotment of the w arrants. at any time prior to the specified date of redemption of 11th July 2017 to First Rand B ank Limited.
The Debentures stated (a),(b) & (c) are secured by w ay of Pari passu first charge on the Fixed Assets of the
5. LONG TERM BORROWINGS
Company,existing and future along w ith B ank and Institutions;such Pari passu first charge ensuring at least a
(` in million)
corporate review

cover of 1.25 times the value of outstanding principal amount of the loan.
Particulars 31.03.2013 31.03.2012
d. Canara Bank
Secured
The loan is secured by w ay of pari passu charge on the Fixed Assets of the Company existing and future along
(a)N on-convertible Debentures
w ith Debenture Trustees and Institutions.
1000 (2011-12:1000) 10.30% Debentures of ` 1,000,000/- each 1,000.00 1,000.00
940 (2011-12:1000) 10.15% Debentures of ` 1,000,000/- each 940.00 1,000.00 e. HDFC Bank Lim ited
1250 (2011-12:N il) 9.80% Debentures of ` 1,000,000/- each 1,250.00 - The Company has availed Rupee Term Loan of ` 1,300 million from H DFC B ank Limited,w hich is repayable in
(b)Term loans tw enty quarterly installments commencing from September 2013. The loan is secured by first pari passu charge
From Banks on all existing and future movable & immovable fixed assets of the Company w ith minimum cover of 1.25 times
(i) Canara B ank - 290.80 the value of outstanding principle amount of the loan.
(ii) H DFC B ank Limited 1,105.00 - f. InternationalFinance Corporation (ExternalCom m ercialBorrow ings)
statutory section

From Other parties

The Company w as sanctioned a sum of U S$ 35 million from International Finance Corporation,W ashington by
IFC Loan (External Commercial B orrow ings) 1,179.77 1,394.28
w ay of External Commercial B orrow ings (ECB ). The Company has w ithdraw n the full amount of U S$ 35 million
IFC Loan (External Commercial B orrow ings) 1,636.80 -
as of 31st M arch 2012 on the above loan. The ECB loan is secured by w ay of pari passu first ranking charge on
H SB C (External Commercial B orrow ings) 1,355.00 -
the fixed assets ow ned by the Company such pari passu charge ensuring atleast a cover of 1.25 times the value
H SB C ( B ills Payable ) 141.87 -
of the outstanding principal amount of the loan. The Loan is repayable in 15 equal semi-annual Installments
Total 8,608.44 3,685.08
starting from 15th September, 2012. During the year tw o installments of U S$ 2,333,333 each w ere repaid on
U nsecured
15th September 2012 and 15th M arch 2013.
(i)Deposits
The Company entered into a Currency Cum Interest Rate Sw ap (CCIRS) w ith H DFC B ank in Indian Rupee hedging
Fixed Deposits 179.33 147.94
the loan for interest rate and foreign currency fluctuation risk. The derivative contract is secured by a second
(ii)Other loans and advances
charge on the immovable assets of the Company to the extent of ` 1,100 million. The tenure of this derivative
Foreign Currency Convertible B onds - 383.67
business review

contract matches w ith the tenure of the loan outstanding as of 31st M arch 2013.
Total 179.33 531.61
g. International Finance Corporation granted a further loan of U S$ 30 million during the year 2012-13. The
Total 8,787.77 4,216.69
Company has draw n the full U S$ 30 million of the sanctioned amount and entered into a Currency Cum Interest
a. 10.30% Non Convertible Debentures Rate Sw ap (CCIRS) w ith H DFC B ank in Indian Rupee and hedged the loan for Interest and Foreign Currency
The Company issued 500 N os. 10.30% N on Convertible Redeemable Debentures of ` 1 million each on 28th Fluctuation risk. The ECB loan is secured by w ay of pari passu first ranking charge on the fixed assets of the
December 2010 w ith an option to re-purchase/re-issue some or all of its debentures in the secondary market Company.
or otherw ise,at any time prior to the specified date of redemption of 28th December 2020 and 500 N os. 10.30% h. H SB C granted a loan of U S$ 25 million during the year 2012-13. The Company has draw n the full U S$ 25 million
N on-Convertible Redeemable Debentures of ` 1 million each on 22nd M arch 2011 w hich w ill be redeemed on of the sanctioned amount and entered into a currency Cum Interest Rate Sw ap (CCIRS) w ith H SB C B ank in
22nd M arch 2021 to the Life Insurance Corporation of India. Indian Rupee and hedged the loan for Interest and Foreign Currency Fluctuation risk. The ECB loan is secured
by w ay of pari passu first ranking charge on the fixed assets of the Company.

annual report 2012–13

128 129
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

i. H SB C has also sanctioned a B uyer’s line of credit of ` 141.87 million for imported equipments. The loan is
U nsecured
secured by first pari passu charge on entire existing and future movable fixed assets of the Company w ith (i) Loans repayable on dem and from banks
minimum cover of 1.25 times the value of the outstanding principle amount of the loan. H DFC Ltd - 1,000.00
(ii) Deposits
performance highlights

j. Foreign Currency Convertible Bonds

Fixed Deposits 162.97 325.86
The Company had issued Foreign Currency Convertible B onds (FCCB s) to International Finance Corporation Total 189.28 1,382.97
(IFC),W ashington,to the value of U S$ 15 million on 28th January 2010. These bonds w ere convertible into Equity
Shares based on the rupee dollar parity exchange rate at any time before the end of the final repayment date. On 9. Details of Trade payables are based on the information available w ith the Company regarding the status of
9th December 2010,the Company converted FCCB s equivalent to U S$ 7.5 million into 1,140,992 equity shares of Suppliers as defined under the ‘M icro, Small and M edium Enterprises Development Act, 2006. The amount
` 5/- each. The company converted the balance FCCB s equivalent to U S$ 7.5 million into 1,381,619 shares of due to M icro,Small and M edium Enterprises for the financial year ended 31st M arch 2013 is ` 230.60 million
` 5/- each on 7th June 2012. W ith this the entire FCCB s equivalent to U S$ 15 million has been fully converted (` 113.31 million). N o interest in terms of Section 16 of M icro,Small and M edium Enterprises Development Act,
into equity shares. 2006 or otherw ise has either been paid or is payable or accrued or remaining unpaid as at 31st M arch 2013.

6. DEFERRED TAX LIABILITIES 10. OTHER CURRENT LIABILITIES

corporate review

Additional net deferred tax liability of ` 693.26 million (` 629.26 million) for the period has been recognized in the (` in million)
Statement of Profit and Loss. Particulars 31.03.2013 31.03.2012
(a) Current maturities of long-term debt 701.47 570.90
(` in million) (b) Interest accrued but not due on borrow ings 181.00 64.82
Particulars Deferred Tax Current year Deferred Tax (c) U npaid dividends 22.27 19.87
Liability as at charge /(credit) Liability as at (d) U npaid matured deposits and interest accrued thereon 25.31 17.99
31.03.2012 31.03.2013 (e) Other Payables
Deferred Tax Liability on account of Depreciation* 926.40 61.33 987.73 Sundry Creditors Others 256.86 220.85
Deferred Tax Liability on account of Deferred 52.27 (1.02) 51.25 Retention M oney on Capital Contracts 1.44 0.66
Inpatient Deposits 185.26 159.22
Revenue Expenditure (Also refer N ote 41 of notes
Rent Deposits 12.03 1.68
forming part of accounts)
Other Deposits 2.31 2.19
Deferred Tax Liability on account of 35 AD 722.18 632.95 1355.13
Tax Deducted at Source 106.01 158.38
statutory section

Total 1,700.85 693.26 2394.11

Outstanding Expenses 541.70 353.91
*N et of depreciation for the assets claimed as deduction u/s 35AD of The Income Tax Act 1961.
W ealth tax payable 1.92 2.21
Total 2,037.58 1,572.68
The effects on such Deferred Tax Liability, if any, arising out of assessments completed but under contest under
various stages w ill be made on the appeals being decided. During the year,the amount transferred to Investors Education and Protection Fund of the Central Government as
per the provisions of Section 205A and 205C of the Companies Act,1956 is ` 1.60 million (` 1.68 million) in aggregate
7. OTHER LONG TERM LIABILITIES w hich comprises of ` 1.59 million (` 1.54 million) as unpaid dividend and ` 0.01 million (` 0.13 million) as unpaid
(` in million) deposit.
Particulars 31.03.2013 31.03.2012
Rent Deposits 36.72 46.75
Other Deposits 0.93 1.02 11. SHORT TERM PROVISIONS
Total 37.65 47.77 (` in million)
business review

Particulars 31.03.2013 31.03.2012

8. SHORT TERM BORROWINGS
(a) Provision for em ployee benefits
(` in million)
Particulars 31.03.2013 31.03.2012 B onus 164.80 148.10

Secured Total 164.80 148.10

(i) Loans repayable on dem and from banks (b) Others
Indian Overseas bank - 42.79 For Dividend - Equity Shares 765.19 537.80
Andhra B ank - 0.67 For Dividend Distribution Tax - Equity Shares 130.04 87.20
State B ank of Travancore 26.31 6.65
Total 895.23 625.13
Karur Vysya B ank - 7.00
Total 1,060.03 773.23

annual report 2012–13

130 131
financial statements

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 annual report 2012–13
12. TANGIBLE ASSETS
132

(` in million)
Gross Block Accum ulated Depreciation N etBlock
Balance Additions Deletions Balance Balance Depreciation Deletions Balance Balance Balance
Fixed Assets as at as at as at charge as at as at as at
April 1, M arch 31, April 1, for the year M arch 31, M arch 31, M arch 31,
2012 2013 2012 2013 2013 2012
Land 1,593.19 0.02 - 1,593.21 - - - - 1,593.21 1,593.19
B uildings 4,440.30 630.17 1.71 5,068.76 397.19 85.27 0.78 481.68 4,587.08 4,043.11
Lasehold Improvements 606.92 1,304.34 112.05 1,799.21 138.13 71.87 9.39 200.61 1,598.60 468.79
Plantand Equipm ent
M edical Equipment & 7,280.35 1,069.36 116.46 8,233.25 2,578.33 404.28 66.78 2,915.83 5,317.42 4,702.02
Surgical Instruments
Air Conditioning Plant & 805.54 233.89 21.18 1,018.25 160.92 187.77 3.91 344.78 673.47 644.62
Air Conditioners
Furniture and Fixtures 1,808.64 274.96 14.23 2,069.37 550.16 119.96 18.53 651.59 1,417.78 1,258.48
Vehicles 337.40 39.16 12.80 363.76 116.58 29.71 5.82 140.47 223.29 220.82
Office equipment 819.22 121.72 10.62 930.32 445.25 88.62 9.73 524.14 406.18 373.97
|APOLLO H OSPITALS EN TERPRISE LIM ITED |

Others
Electrical Installations & 1,147.03 92.80 47.24 1,192.59 334.12 40.38 9.13 365.37 827.22 812.91
Generators
Fire fighting Equipment 69.46 7.12 – 76.58 7.47 0.82 – 8.29 68.29 61.99
B oilers 2.90 - – 2.90 1.05 – – 1.05 1.85 1.85
Kitchen Equipment 39.85 1.12 – 40.97 10.07 0.44 – 10.51 30.46 29.78
Refrigerators 35.58 3.57 – 39.15 8.27 1.20 0.19 9.28 29.87 27.31
W ind Electric Generator 26.85 – – 26.85 26.85 – – 26.85 - -
Total 19,013.23 3,778.23 336.29 22,455.17 4,774.39 1,030.32 124.26 5,680.45 16,774.72 14,238.84
Previous Year 14,331.97 4,861.00 179.74 19,013.23 3,968.34 874.11 68.06 4,774.39 14,238.84 -
a) During the year N il (2011-12:` 48.80 million) has been capitalised based on Para 46A of Accounting Standards 11’The Effects of Changes in Foreign Exchange
Rates (revised 2003)

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13. INTANGIBLE ASSETS
(` in million)
Gross Block Accum ulated Depreciation N etBlock
Balance Additions Deletions Balance Balance Am ortization Deletions Balance Balance Balance
Fixed Assets as at as at as at for the year as at as at as at
April 1, M arch 31, April 1, M arch 31, M arch 31, M arch 31,
2012 2013 2012 2013 2013 2012
Computer Softw are 174.34 70.93 . 245.27 53.13 51.73 . 104.86 140.41 121.21
Total 174.34 70.93 . 245.27 53.13 51.73 . 104.86 140.41 121.21
Previous Year 112.97 61.37 . 174.34 19.11 34.02 . 53.13 121.21

133
financial statements business review statutory section corporate review performance highlights
 annual report 2012–13
*

(c)
(a)
(a)

(d)

134
Total
Total
Total(A)

Total(B)
Grand Total(A + B)
Advance for Investments
(b) Investment in Preference Shares
Investment in Equity Instruments
Investment in Equity Instruments
(b) Investments in Preference Shares

Particulars
Particulars

Other Investm ents (Refer B below )

Trade Investm ents (Refer A below )
15. NON CURRENT INVESTMENTS

Investments in Debentures or B onds

Aggregate amount of quoted investments

Aggregate amount of unquoted investments

progress is ` 377.39 million (` 250.41million)*.

Investments in Government or Trust securities

(M arket Value ` 660.24 million (2011-12:` 713.74 million)

|APOLLO H OSPITALS EN TERPRISE LIM ITED |

31.03.2013

31.03.2013
392.37
-
1,119.16
3,605.37

5,254.50
4,862.13
1,141.36
3,720.77

0.20
22.00
115.40

4,860.78
393.72

5,254.50
230.46
0.25
589.23
2,126.02
3,391.74

6,470.10
6,239.64
2,737.50
3,502.14
31.03.2012

22.00
110.40

6,076.37
393.72
31.03.2012

6,470.10
Includes Interest on B orrow ings Capitalised for the year ended 31st M arch 2013 of ` 252 million (`183 million).
construction and directly related pre-operative expenses. The amount of interest included in capital w ork in

(` in million)
(` in million)
14. Capital W ork –in-Progress ` 3,727.29 million (` 1,893.15 million) comprises of amounts spent on assets under

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A) Details ofTrade Investm ents
Nam e ofthe Body Corporate Subsidiary / Face No. ofShares No. ofShares Quoted / Partly Am ount Am ount Whether stated
Associate / value / Units / Units Unquoted Paid / (` in m illion) (` in m illion) atCostYes/No
JV/Controlled `
Entity / Fully paid
Others 31.03.2013 31.03.2012 31.03.2013 31.03.2012
Investm entin Equity Instrum ents
Unique H ome H ealth Care Limited Subsidiary 10 29,823,012 29,823,012 Unquoted Fully Paid 297.40 297.40 Yes
AB M edical Centres Limited Subsidiary 1,000 16,800 16,800 Unquoted Fully Paid 21.80 21.80 Yes
Samudra H ealth Care Enterprises Limited Subsidiary 10 12,500,000 12,500,000 Unquoted Fully Paid 250.60 250.60 Yes
Imperial H ospitals & Research Centre Limited Subsidiary 10 25,681,000 25,681,000 Unquoted Fully Paid 1,155.38 1,155.38 Yes
Apollo H ospitals (UK) Limited Subsidiary 1£ 5,000 5,000 Unquoted Fully Paid 0.39 0.39 Yes
Apollo N ellore H ospital Limited Subsidiary 10 855,228 855,228 Unquoted Fully Paid 13.96 13.96 Yes
Apollo Cosmetic Surgical Centre Private Limited Subsidiary 10 2,844,262 2,844,262 Unquoted Fully Paid 28.44 28.44 Yes
Alliance M edicorp (India) Limited Subsidiary 10 6,252,600 5,661,000 Unquoted Fully Paid 62.52 56.61 Yes
Alliance Dental Care Limited Subsidiary 100 540,600 163,200 Unquoted Fully Paid 54.06 16.32 Yes
Sapien Biosciences Pvt Limited Subsidiary 10 10,000 - Unquoted Fully Paid 0.40 - Yes
Apollo H ospitals International Limited Joint Venture 10 17,590,266 3,752,050 Unquoted Fully Paid 352.92 214.54 Yes
Apollo Gleneagles H ospitals Limited Joint Venture 10 54,675,697 54,675,697 Unquoted Fully Paid 393.12 393.12 Yes
Apollo Gleneagles H ospitals PET CT Private Limited Joint Venture 10 8,500,000 8,500,000 Unquoted Fully Paid 85.00 85.00 Yes
W estern H ospital Corporation Pvt. Limited Subsidiary 10 18,000,000 18,000,000 Unquoted Fully Paid 153.66 153.66 Yes
Quintiles Phase One Clinical Trials India Private Limited Joint Venture 1,000 146,285 115,085 Unquoted Fully Paid 152.00 120.80 Yes
Apollo Lavasa H ealth Corporation Limited Joint Venture 10 402,941 402,941 Unquoted Fully Paid 110.00 110.00 Yes
Indraprastha M edical Corporation Limited Associate 10 20,190,740 20,190,740 Quoted Fully Paid 393.72 393.72 Yes
(M arket value as on 28.03.2013 ` 32.70 per share)
Stemcyte India Therapautics Private Limited Associate 1 240,196 240,196 Unquoted Fully Paid 80.00 80.00 Yes
Investm ents in Preference Shares
Zero % N on-cumulative Redeemable Preference Shares of
Apollo H ospitals International Limited Joint Venture 100 1,104,000 1,104,000 Unquoted Fully Paid 110.40 110.40 Yes
Sapien Biosciences Pvt Limited Subsidiary 100 500,000 - Unquoted Fully Paid 5.00 -
Total 3,720.77 3,502.14

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financial statements business review statutory section corporate review performance highlights
 annual report 2012–13
B) Details ofOther Investm ents
136

Nam e ofthe Body Corporate Subsidiary / Face No. of No. of Quoted / Partly Paid / Am ount Am ount Whether
Associate / value Shares / Shares / Unquoted Fully paid (` in m illion) (` in m illion) stated
JV/Controlled Entity `
/ Others Units Units atCostYes/
No
31.03.2013 31.03.2012 31.03.2013 31.03.2012
Investm entin Equity Instrum ents
Apollo H ealth & Lifestyle Limited Subsidiary 10 25,303,060 19,469,800 Unquoted Fully Paid 772.52 597.52 Yes
Apollo M unich H ealth Insurance Company Limited Joint Venture 10 31,600,000 26,600,000 Unquoted Fully Paid 316.00 266.00 Yes
Family H ealth Plan Limited Associate 10 490,000 490,000 Unquoted Fully Paid 4.90 4.90 Yes
Apollo H ealth Street Limited Associate 10 - 11,181,360 Unquoted Fully Paid - 1,231.85 Yes
Kurnool H ospitals Enterprises Limited Others 10 157,500 157,500 Unquoted Fully Paid 1.73 1.73 Yes
Furture Parking Private Limited Joint Venture 10 2,401,000 2,401,000 Unquoted Fully Paid 24.01 24.01 Yes
H ealth Super H iw ay Private Limited Others 10 200 200 Unquoted Fully Paid - - Yes
Investm ents in Preference Shares
|APOLLO H OSPITALS EN TERPRISE LIM ITED |

H ealth Super H iw ay Private Limited Others 54.10 406,514 406,514 Unquoted Fully Paid 22.00 22.00 Yes
Investm ents in Debentures or Bonds
Optionally Redeemable Convertible Debentures
Apollo H ealth Street Limited Associate 160 - 3,682,725 Unquoted Fully Paid - 589.24 Yes
Investm ents in Governm entor Trustsecurities
N ational Savings Certificate Others Unquoted Fully Paid 0.20 0.25 Yes
Total 1,141.36 2,737.50
a. The Company has pledged its 20,775,197 (20,775,197) shares in Apollo Gleneagles H ospitals Limited as a security for the loan advanced by IDFC and H DFC
to Apollo Gleneagles H ospitals Limited.
b. N ational Saving Certificates show n under investments are pledged w ith the Chief Ration Officer,Government of Andhra Pradesh.

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c.
a.

d.
b.

(c)
(a)
(b)

Total
Total

Total
Other Advances
Capital Advances

Security Deposits

Interest Receivable
Advance Income Tax
Other Loans and Advances

Investments in Debentures
Particulars

U nsecured,considered good
U nsecured,considered good
U nsecured,considered good

Investments in M utual funds

17. CURRENT INVESTMENTS

Particulars
Particulars
Investments in Equity Instruments

Aggregate amount of quoted investments

Loans and advances to related parties

Aggregate amount of unquoted investments

16. LONG TERM LOANS AND ADVANCES

(M arket Value ` 3,657.47 million (2011-12:` 1,001.79 million)

1,014.72
394.20
31.03.2013

45.05
1,408.92
16.15
891.39
654.47

3,015.98

31.03.2013

31.03.2013
3,559.97
135.88

3,705.85

135.88
3,569.97
10.00

3,705.85
390.22
755.36
31.03.2012

957.26
203.82
85.66
1,145.58
320.58

1,171.08
31.03.2012
2,446.32

203.82
967.26
10.00
234.00
660.50

1,171.08
31.03.2012
(` in million)

(` in million)
(` in million)

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financial statements business review statutory section corporate review performance highlights
 annual report 2012–13
B)DETAILS OF CURRENT INVESTMENTS
138

Nam e ofthe Body Corporate Subsidiary / Face No. of No. of Quoted / Partly Paid / Am ount Am ount Basis of
Associate / value Shares / Shares / Unquoted Fully paid (` in m illion) (` in m illion) Valuation
JV/Controlled Entity `
/ Others Units Units
31.03.2013 31.03.2012 31.03.2013 31.03.2012
Investm ents in Equity Instrum ents
British American H ospitals Enterprises Limited Others 100 M UR 928,720 1,393,079 Unquoted Fully Paid 135.88 203.82 Cost
Investm ents in Debentures
IFCI Venture Capital Funds limited Others 1,000,000 10 10 Quoted Fully paid 10.00 10.00 Cost
Investm ents in MutualFunds
Reliance H orizon Fund - XX - Series 24-Grow th Plan Others 10 - 50,027,068 Quoted Fully paid - 500.27 Cost
Reliance Quarterly Interval Fund - Series III- Others 10 - 25,166,512 Quoted Fully paid - 251.99 Cost
Institutional Dividend plan
Birla Sun life Cash plus -Institutional Premium Others 100 - 1,194,121 Quoted Fully paid - 200.00 Cost
Grow th
Canara Robeco Indigo Quarterly Dividend Fund Others 10 - 489,366 Quoted Fully paid - 5.00 Cost
ICICI Prudential Liquid Plan Daily Dividend Others 10 8,677,204 - Quoted Fully paid 200.00 - Cost
|APOLLO H OSPITALS EN TERPRISE LIM ITED |

Reliance Floating Rate Fund - Short Term Plan Others 10 14,397,190 - Quoted Fully paid 250.00 - Cost
Grow th Plan
Reliance Floating Rate Fund - Short Term Plan Others 10 11,450,688 - Quoted Fully paid 200.00 - Cost
Grow th Plan
Reliance Dynamic Bond Fund Grow th Plan Others 10 17,435,790 - Quoted Fully paid 253.54 - Cost
Kotak Bond (Short term) Grow th Others 10 11,950,115 - Quoted Fully paid 250.00 - Cost
IDFC SSIF Short term Plan C Grow th Others 10 7,848,123 - Quoted Fully paid 100.00 - Cost
Kotak Bond (Short term) Grow th Others 10 2,316,123 - Quoted Fully paid 50.00 - Cost
IDFC SSIF M edium term Plan a Grow th Others 10 10,203,665 - Quoted Fully paid 200.00 - Cost
ICICI Prudential Short Term Regular Plan Grow th Others 10 2,139,907 - Quoted Fully paid 50.00 - Cost
Option
Canara Robeco Short Term Fund - Regular Grow th Others 10 192,148 - Quoted Fully paid 2.50 - Cost

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Nam e ofthe Body Corporate Subsidiary / Face No. of No. of Quoted / Partly Paid / Am ount Am ount Basis of
Associate / value Shares / Shares / Unquoted Fully paid (` in m illion) (` in m illion) Valuation
JV/Controlled Entity `
/ Others Units Units
31.03.2013 31.03.2012 31.03.2013 31.03.2012
Reliance Short Term Fund - Grow th Plan ( St- Gp) Others 10 4,681,714 - Quoted Fully paid 100.00 - Cost
Canara Robeco Short Term Fund - Regular Grow th Others 10 188,206 - Quoted Fully paid 2.50 - Cost
Kotak Bond Scheme Plan A Grow th Others 10 5,903,031 - Quoted Fully paid 200.00 - Cost
DW S Premier Bond Fund - Regular Plan - Grow th Others 10 10,330,899 - Quoted Fully paid 200. - Cost
H DFC Income Fund - Grow th Others 10 7,413,063 - Quoted Fully paid 200.00 - Cost
Reliance Short Term Fund - Grow th Plan Others 10 6,903,598 - Quoted Fully paid 150.00 - Cost
Reliance Income Fund - Grow th Plan Others 10 5,171,166 Quoted Fully paid 200.00 - Cost
SBI Short Term Debt Fund - Regular Plan - Grow th Others 10 14,922,589 - Quoted Fully paid 200.00 - Cost
IDFC SSIF M edium Term Plan a Grow th Others 10 5,006,183 - Quoted Fully paid 100.00 - Cost
Kotak Bond Short Term Others 10 6,820,507 - Quoted Fully paid 150.00 - Cost
DW S Short M aturity Fund - Regular Plan - Grow th Others 10 4,785,788 - Quoted Fully paid 100.00 - Cost
IDFC SSIF Investment Plan Grow th - (Regular Plan) Others 10 7,068,212 - Quoted Fully paid 200.00 - Cost
ICICI Prudential Short Term -Regular Plan - Grow th Others 10 4,198,646 - Quoted Fully paid 100.00 - Cost
Plan
Pinebridge India Short Term Fund Standard M onthly Others 10 100,630 - Quoted Fully paid 101.43 - Cost
Dividend
Total 3,559.97 957.26

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

18. INVENTORIES 20. CASH AND CASH EQUIVALENTS

(` in million) (` in million)
Particulars 31.03.2013 31.03.2012 Particulars 31.03.2013 31.03.2012
performance highlights

a. M edicines (Valued at Cost) 1,627.78 1,492.11 a. B alances w ith banks

b. Stores and spares (Valued at Cost) 116.58 97.99 Current Accounts 1,680.47 775.49
c. Lab M aterials (Valued at Cost) 13.50 6.68 Deposit Accounts 529.67 954.73
d. Surgical Instruments (Valued at Cost) 232.06 167.51 U npaid Dividend Accounts 22.27 19.87
e. Other Consumables (Valued at Cost) 63.96 62.80 M argin money Deposits 53.75 19.00
Total 2,053.88 1,827.09 Guarantees 149.35 24.53
2,435.51 1,793.62
19. TRADE RECEIVABLES
b. Cash on hand 119.15 75.93
(` in million)
Total 2,554.66 1,869.55
Particulars 31.03.2013 31.03.2012
corporate review

a. The Company’s Fixed Deposit receipts amounting to ` 149.35 million (` 24.53 million) are under lien w ith the
Trade receivables outstanding for a period less than six m onths
bankers for obtaining B ank Guarantees and Letters of credit.
from the date they are due for paym ent
21. SHORT TERM LOANS AND ADVANCES
U nsecured,considered good 3,530.61 2,825.87
(` in million)
3,530.61 2,825.87
Particulars 31.03.2013 31.03.2012
Trade receivables outstanding for a period exceeding six m onths a. Loans and advances to related parties
from the date they are due for paym ent
U nsecured,considered good 278.68 163.38
U nsecured,considered good 735.48 711.83
b. Other Loans and Advances
U nsecured,considered doubtful 70.91 49.32
Advance to Suppliers 125.52 135.93
806.39 761.15
Other Advances 1,426.83 622.35
Less:Provision for doubtful debts 70.91 49.32
Loans and advances to employees 68.30 54.99
735.48 711.83
statutory section

1,620.65 813.27
Total 4,266.09 3,537.70
Total 1,899.33 976.65

Trade Receivables stated above include debts due by: (` in million) 22. OTHER CURRENT ASSETS
(` in million)
Particulars 31.03.2013 31.03.2012
Particulars 31.03.2013 31.03.2012
Directors* - -
a. Prepaid Expenses 98.87 99.40
Other officers of the Company* - -
b. Rent Receivables 3.92 3.85
Firm in w hich director is a partner* - -
c. Interest Receivables 41.71 147.12
Private company in w hich director is a member* 3.75 18.80
d. Franchise Fees Receivable 8.59 7.92
Total 3.75 18.80
Total 153.09 258.29
business review

* Either severally or jointly

i. Accrued patient collections constitute ` 325.03 million (` 273.97 million) of Trade receivables. 23. REVENUE FROM OPERATIONS
(` in million)
ii. Confirmations of balances from Debtors and Creditors are yet to be received in a few cases though the group
has sent letters of confirmation to them. The balances adopted are as appearing in the books of accounts of the Particulars 31.03.2013 31.03.2012

group. a. Revenue from H ealthcare services 22,160.96 19,394.92

b. Revenue from Pharmacy 11,016.95 8,605.80
iii. Sundry Debtors represent the debt outstanding on sale of pharmaceutical products,hospital services and project
Total 33,177.91 28,000.72
consultancy fees and is considered good. The group holds no other securities other than the personal security
of the debtors. a. The hospital collections of the Company are net of discounts of ` 10.42 million (` 27.61million)

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24. OTHER INCOME a. As per the requirements of Accounting Standard 15 ‘Employee B enefits’(Revised 2005) as notified under the
Companies (Accounting Standards) Rules,2006,the contribution to the gratuity fund is determined using the
(` in million)
projected unit credit method w ith actuarial valuation being carried out at each B alance Sheet date. Only the
Particulars 31.03.2013 31.03.2012
additional provision as required is charged to the Statement of Profit and Loss for the relevant year– ` 94.43
performance highlights

(a) Interest Income 174.50 143.59

million (` 69.15 million). (Also refer N ote 1(I) of N otes Forming part of Accounts.)
(b) Dividend Income
From Current Investment 57.00 100.40
(` in million)
From Long Term Investment 32.46 31.12
Particulars As at31stMarch 2013 As at31stMarch 2012
(c) N et gain/(loss) on sale of investments
Gratuity Earned Leave Gratuity Earned Leave
Current investment 1.38 (0.91)
Assumptions
Long term investment* 90.38 -
Discount Rate 8.00% 8.00% 8.00% 8.00%
(d) Other non-operating income
Rate of Increase in Salaries 6.00% 8.00% 6.00% 8.00%
N et gain on foreign currency transactions and translation - 4.28
M ortality pre- retirement LIC 1994-96 U ltimate
corporate review

Total 355.72 278.48

Disability N il N il N il N il
* For the year ended 31st M arch 2013,the profit on sale of investments in Apollo H ealth Street Limited amounting Attrition 23.00% 23.00% 23.00% 23.00%
to ` 45.45 million is included. Estimated rate of return on plan assets 8.00% 8.00% 8.00% 8.00%
Investment details on plan assets 100% of the plan Assets are invested on debt instruments
a. During the year the Foreign Exchange gain (the difference betw een the spot rates on the date of the transactions,
and the actual rates at w hich the transactions are settled) is nil (2011-12:Foreign Exchange Gain ` 4.29 million).

25. COST OF MATERIALS CONSUMED

(` in million)
Particulars 31.03.2013 31.03.2012
Value (`) % Value (`) %
statutory section

Total Consumption of M aterials* 8,642.58 100.00 7,846.63 100.00

Indigenous M aterials 8,579.38 99.27 7,824.95 99.72
Imported M aterials 63.20 0.73 21.68 0.28

*(Consumption relates to items used for healthcare services only.)

26. EMPLOYEE BENEFITS EXPENSE

(` in million)
Particulars 31.03.2013 31.03.2012
a. Salaries and w ages 4,454.78 3,642.27
business review

b. Contribution to provident and other funds 291.40 242.38

c. Employee State Insurance 57.22 29.54
d. Staff w elfare expenses 268.05 211.48
e. Staff Education & Training 7.78 11.30
f. B onus 164.76 148.10
Total 5,243.99 4,285.07

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(` in million) 27. FINANCE COSTS

As at31stMarch 2013 As at31stMarch 2012 (` in million)
Particulars Gratuity Earned Total Gratuity Earned Total Particulars 31.03.2013 31.03.2012
Leave Leave Interest expense 638.51 560.61
performance highlights

Present Value of Obligation beginning of 245.90 112.47 358.37 187.59 98.05 285.64 Other borrow ing costs
the Period B ank Charges 87.37 75.26
Interest Cost 19.49 8.68 28.18 14.85 7.50 22.35 B rokerage & Commission 0.37 0.16
Current Service Cost 26.24 11.92 38.16 26.24 11.92 38.16
Total 726.25 636.03
B enefit Paid (4.51) (7.84) (12.35) (3.93) (8.69) (12.62)
Actuarial (gain) / Loss on obligation (5.12) 13.82 8.19 21.15 3.69 24.84 28. OTHER EXPENSES
Present Value of Obligation end of the 282.00 138.55 420.55 245.90 112.47 358.37 (` in million)
period Particulars 31.03.2013 31.03.2012
Change in plan assets
Pow er and Fuel 556.25 437.87
Fair Value of Plan Assets beginning of 190.01 102.27 292.28 173.55 75.15 248.70
corporate review

H ouse Keeping Expenses 125.25 114.55

the Period
W ater Charges 52.06 49.77
Expected return on plan assets 17.46 7.28 24.74 14.54 7.10 21.64
Rent 980.37 992.38
Contributions 56.00 10.20 66.20 20.00 20.00 40.00
Repairs to B uildings 128.72 123.08
B enefits paid (4.51) (7.84) (12.35) (3.93) (8.69) (12.62)
Repairs to M achinery 300.32 277.16
Actuarial gain / (loss) (12.40) (32.24) (44.64) (14.15) 8.71 (5.44)
Repairs to Vehicles 43.74 32.75
Fair Value of Plan Assets end of the 246.56 79.67 326.63 190.01 102.27 292.28
Office M aintenance & Others 239.00 197.88
period
Insurance 40.91 33.75
Reconciliation of present value of the
Rates and Taxes,excluding taxes on income 76.67 62.19
obligation and the fair value of the plan assets
Printing & Stationery 182.83 174.67
Fair value of the defined benefit 282.00 138.55 420.55 245.90 112.47 358.37
Fair value of plan assets at the end of the year (246.56) (79.67) (326.23) (190.01) (102.27) (292.28) Postage & Telegram 18.54 10.64
statutory section

Liability / (assets) 35.44 58.88 94.32 55.89 10.20 66.09 Director Sitting Fees 1.42 1.68
U nrecognised past service cost - - - - - - Advertisement,Publicity & M arketing 811.91 529.37
Liability / (assets) recognised in the 35.44 58.88 94.32 55.89 10.20 66.09 Travelling & Conveyance 298.96 240.60
balance sheet Subscriptions 6.47 8.96
Gratuity & Leave Encashment cost for Security Charges 83.12 74.88
the period Legal & Professional Fees 268.99 249.46
Service Cost 26.24 11.92 38.16 26.24 11.92 38.16 Continuing M edical Education & H ospitality Expenses 29.71 10.29
Interest Cost 19.49 8.68 28.18 14.85 7.50 22.35 H iring Charges 51.17 44.54
Expected return on plan assets (17.46) (7.28) (24.74) (14.54) (7.10) (21.64) Seminar Expenses 8.41 6.19
Actuarial (gain) / loss 7.28 45.55 52.83 35.30 (5.02) 30.28 Telephone Expenses 92.19 93.95
Past Service Cost - - - - - - B ooks & Periodicals 8.84 8.71
business review

N et gratuity cost 35.55 58.88 94.43 61.85 7.30 69.15 Donations 23.32 24.98
Investment details of plan assets B ad Debts W ritten off 106.81 120.14
100% of the plan assets are invested in Provision for B ad Debts 28.72 24.38
debt instruments Royalty paid 1.30 1.42
Actual return on plan assets 5.06 (24.96) (19.90) 0.39 15.81 16.20 Outsourcing Expenses 541.42 472.66
i. Expected return on plan assets is based on expectation of the average long term rate of return expected on M iscellaneous expenses 53.27 60.75

investments of the fund during the estimated term of the obligations. The Gratuity scheme is invested in the Loss on Sale of Asset 38.06 37.26

Gratuity Pay plan offered by ICICI. N et (gain)/loss on foreign currency transactions and translation 1.41 -
Total 5,200.16 4,516.91
ii. The estimate of future salary increase,considered in actuarial valuation,take account of inflation,seniority,
promotion and other relevant factors such as demand and supply in the employment market.

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a. The Electricity charges incurred in respect of the M ain H ospital is net of ` 53.23 million (` 7.27 million) [units 30. UTILISATION OF AMOUNTS FROM SECURITIES ISSUED
qualified KW H – 10,040,020(1,454,755)], being the rebate received from TN EB for W ind Electric Generators (` in million)
ow ned & run by the Company. Particulars 31.03.2013
A Funds Received through PreferentialIssue
performance highlights

b. Payment to Auditors as Statutory Auditors

Amount received from the Promoter tow ards allotment of shares during the year 1,161.16
(` in million)
B Particulars ofUtilisation
Particulars 31.03.2013 31.03.2012
Capital Expenditure & W orking Capital 1,161.16
Audit Fees 3.37 3.31
Taxation M atters* 0.56 0.55
Company Law M atters* 0.51 0.50
31. EARNINGS PER EQUITY SHARE
Reimbursement of Expenses 0.26 0.13
Particulars 31.03.2013 31.03.2012
Total 4.70 4.49
Profit before extraordinary items attributable to equity shareholders 3,045.80 2,309.90
corporate review

(` in million) (A1)
c. Directors travel included in travelling and conveyance amounts to ` 40.54 million (` 18.53 million).
W eighted Average Equity Shares outstanding during the year 137,839,092 130,327,516
d. During the year Foreign Exchange loss (the difference betw een the spot rates on the dates of the transactions, (N os) - (B 1)
and the actual rates at w hich the transactions are settled) amounted to ` 1.41 million. (2011-12:N il) B asic Earnings Per Share before extra-ordinary item - ` (A1/B 1) 22.10 17.72
Diluted Earnings before extraordinary items attributable to equity 3,045,80 2,314,59
shareholders (` in million) (A2)
Foreign Currency Convertible B ond issued (C1) 1,381,619 1,268,343
29. CONTINGENT LIABILITIES
Promoters Share w arrants (D1) 3,276,922 -
(` in million)
W eighted Average Equity Shares outstanding for Diluted Earnings 139,125,159 134,872,781
Particulars 31.03.2013 31.03.2012
Per Share. (N os) - (E1)
Contingent liabilities and commitments Diluted Earnings Per Share before extra-ordinary item - (A2/E1) 21.89 17.16
(to the extent not provided for)
statutory section

Profit after extraordinary items attributable to equity shareholders 3,091,25 2,309,90

(i) ContingentLiabilities (` in million) (A)
(a) Claims against the company not acknow ledged as debt 77.40 275.03 W eighted Average Equity Shares outstanding during the year 137,839,092 130,327,516
(b) Guarantees (N os) - (B )
B ank Guarantees 268.36 55.39 B asic Earnings Per Share after extra-ordinary item - ` (A/B ) 22.43 17.72
Corporate Guarantees 35.00 242.50 Diluted Earnings after extraordinary items attributable to equity 3,091,25 2,314,59
(c) Other money for w hich the company is contingently liable shareholders (` in million) (A3)
Sales Tax 1.04 1.41 Foreign Currency Convertible B ond issued (C) 1,381,619 1,268,343
Customs Duty 99.70 99.70 Promoters Share w arrants (D) 3,276,922 -
Income Tax 293.92 396.79 W eighted Average Equity Shares outstanding for Diluted Earnings 139,125,159 134,872,781
Letter of Credits 36.56 150.42 Per Share. (N os) - (E)
business review

EPCG 708.00 1,010.20 Diluted Earnings Per Share after extra-ordinary item ` (A3/E) 22.22 17.16
Redemption premium on FCCB - 11.28
Value Addded Tax 2.27 2.27
1,522.25 2,244.99
(ii) Com m itm ents
(a) Estimated amount of contracts remaining to be executed 10,644.93 12,436.38
on capital account and not provided for
10,644.93 12,436.38
Total 12,167.18 14,681.37

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32. EXPENDITURE IN FOREIGN CURRENCY 34. RELATED PARTY DISCLOSURES

(` in million)
Particulars For the For the period A. ListofRelated Parties w here controlexists and otherrelated parties w ith w hom the Com pany had transactions
period ended ended 31.03.2012 and their relationships:
performance highlights

31.03.2013
SlNo Nam e ofrelated parties Nature ofrelationship
a. CIF Value ofIm ports
1 U nique H ome H ealth Care Limited
M achinery and Equipment 890.33 407.81
2 AB M edical Centres Limited
Stores and Spares 49.27 12.61
3 Samudra H ealthcare Enterprises Limited
Other Consumables 13.93 9.07
4 Apollo H ospital (U K) Limited
b. Expenditure
5 Apollo H ealth and Lifestyle Limited
Travelling Expenses 22.25 20.21
6 Imperial H ospital and Research Centre Limited
Professional Charges 15.43 9.76
7 Apollo N ellore H ospital Limited
Subscription - 1.62 Subsidiary Companies
(formerly know n as Pinakini H ospitals Limited)
corporate review

Accreditation - 1.34 (control exists)

8 Apollo Cosmetic Surgical Centre Private Limited
Advertisement - 1.02 9 Alliance M edicorp (India) Limited
B usiness Promotion 1.61 0.58 10 ISIS H ealthcare India Private Limited
c. Dividends 11 M era H ealthcare Private Limited
Amount remitted during the year in foreign currency on 3.66 3.64 12 Alliance Dental Care Limited
account of dividends excluding the payment of dividends
13 W estern H ospitals Corporation Private Limited
directly to the share-holder's N on-resident external bank
14 Sapien B io Sciences Private Limited
account.
15 Apollo H ospitals International Limited
N on-Residents shareholders to w hom remittance w as made 224 216
16 Apollo Gleneagles H ospitals Limited
(N os.)
17 Apollo Gleneagles PET-CT Private Limited
Shares held by non-resident share-holders on w hich dividend 0.92 0.97
statutory section

18 Apollo M unich H ealth Insurance Company Limited Joint Venture

w as paid.
19 Apollo Lavasa H ealth Corporation Limited
20 Quintiles Phase One Clinical Trials India Private Limited
33. EARNINGS IN FOREIGN CURRENCY 21 Future Parking Private Limited
(` in million)
22 Family H ealth Plan Limited
Particulars 31.03.2013 31.03.2012
23 Indraprastha M edical Corporation Limited Associates
H ospital Fees 293.31 150.37 24 Stemcyte India Therapautics Private Limited
Project Consultancy Services 18.22 65.05 25 Dr. Prathap C Reddy
Reimbursement Expenses 0.23 0.80 26 Smt. Preetha Reddy
Pharmacy Sales* 0.29 2.32 27 Smt. Suneeta Reddy Key M anagement Personnel
business review

* Pharmacy Sales are sales made w ithin India to inpatients w ho have paid in foreign currency 28 Smt. Sangita Reddy
29 Smt. Shobana Kamineni

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SlNo Nam e ofrelated parties Nature ofrelationship SlNo Nam e ofrelated parties Nature ofrelationship
30 PCR Investments Limited 70 KEI-RSOS Petroleum and Energy Private Limited
31 Indian H ospitals Corporation Limited 71 KEI-RSOS Shipping Private Limited
performance highlights

32 Apollo Sindoori H otels Limited 72 Peninsular Tankers Private Limited

33 PPN Pow er Generating Company Private Limited 73 Keimed Private Limited
34 H ealth Super H iw ay Private Limited 74 Spectra Clinical Laboratory
35 Faber Sindoori M anagement Services Private Limited 75 Kamineni B uilders
36 Apollo M umbai H ospital Limited 76 U niversal Quality Services LLC
37 Lifetime W ellness Rx International Limited 77 Apollo H ealth Resources Limited
38 Apollo Clinical Excellence Solutions Limited 78 AM G H ealthcare Destination Private Limited
39 PPN H olding Private Limited 79 Apex Agencies
40 Preetha Investments Private Limited 80 Apex Agencies(H yd)
corporate review

41 PPN Pow er Generation (U nit II) Private Limited 81 Apollo Educational Infrastructure Services Limited
Enterprises over w hich
42 TRAC India Private Limited 82 Apollo M ed Skills Limited
Key M anagement Personnel
43 PPN H oldings (Alfa) Private Limited 83 Apollo Reach H ospitals Enterprises Limited
are able to exercise significant
44 Aircel Limited 84 Apollo Telehealth Services Private Limited
influence
45 Aircel Cellular Limited 85 B ritish American H ospitals Enterprise Limited
46 Dishnet W ireless Limited 86 Elixir Communities Private Limited
47 Apollo Infrastructure Project Finance Company Limited 87 Indian H ospitex Private. Limited
48 Vasumathi Spinning M ills Limited Enterprises over w hich 88 Kumaranathu and Company
49 Kalpatharu Infrastructure Development Company Private Limited Key M anagement Personnel 89 Kurnool H ospital Enterprise Limited
50 Sindya Pow er Generating Company Private Limited are able to exercise significant 90 M atrix Agro Private Limited
51 Sindya H oldings Private Limited influence 91 TRAC Eco and Safari Park Private Limited
statutory section

52 Sindya resources pte,Limited Singapore 92 Vaishnavi Constructions

53 Garuda Energy Private Limited 93 M edversity Online Limited,H yderabad
54 Deccan Digital N etw orks Private Limited 94 Indo W ind Pow er Private Ltd
55 Kalpatharu Enterprises Private Limited 95 N ippo B atteries Company Ltd
56 Sirkazhi Port Private Limited 96 Panasonic H ome Appliances India Co Ltd
57 Sindya B uilders Private Limited
58 Tharani Energy India Private Limited
59 Apollo Energy Company Limited
60 H ealthnet Global Limited
61 Sindya Infrastructure Development Company Private Limited
business review

62 Associated Electrical Agencies

63 P. Obul Reddy & Sons
64 Apex builders
65 Apex Construction
66 Kei Energy Private Limited
67 Kamineni B uilders Private Limited
68 Kei Vita Private Limited
69 Kei Rajamahendri Resorts Private Limited

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(` in million) (` in million)
Sl Nam e ofrelated parties Nature ofTransaction 31.03.2013 31.03.2012 Sl Nam e ofrelated parties Nature ofTransaction 31.03.2013 31.03.2012
No No
1 U nique H ome H ealth a) Investment in Equity 297.40 297.40
performance highlights

12 Apollo Gleneagles a) Investment in Equity 393.12 393.12

Care Limited b) Cumulative Deposits Outstanding 11.67 11.59 b) Receivables as at year end 325.77 200.25
H ospitals Limited
c) Payables as at year end 0.29 0.29 c) Commission on Turnover 109.37 94.02
d) Interest payable 0.08 0.92 d) Reimbursement of Expenses 15.07 6.80
2 AB M edical Centers a) Investment in Equity 21.80 21.80 e) Fees 87.83 56.80
Limited b) Payables as at year end 13.51 8.79 f) Pharmacy income 747.50 641.06
c) Lease Rentals paid 7.20 7.20 13 Apollo Gleneagles a) Investment in Equity 85.00 85.00
3 Samudra H ealthcare a) Investment in Equity 250.60 250.60 b) Payables as at year end 3.76 1.67
PET-CT Private Limited
Enterprises Limited b) Reimbursement on account of salaries 1.16 1.61 c) Rent received 1.93 1.96
c) Commission on Turnover 1.58 1.37 d) Reimbursement on account of salaries 1.89 1.54
d) Pharmacy income 65.63 59.18 e) Deposits refundable 23.09 24.30
corporate review

e) Receivables as at year end 59.26 47.23 f) Pharmacy income 1.19 1.18

4 Apollo H ospital (U K) a) Investment in Equity 0.39 0.39 14 W estern H ospitals a) Investment in Equity 153.66 153.66
Limited b) Receivables as at year end 1.86 1.21 b) Reimbursement of Expenses 0.40 4.88
Corporation Private
5 Apollo H ealth and a) Investment in Equity 772.52 597.52 c) Receivables as at year end - 0.40
Limited
Lifestyle Limited b) Receivables as at year end 236.84 20.16
15 Apollo M unich H ealth a) Investment in Equity 316.00 266.00
c) Rent received 0.94 0.53
Insurance Company b) Payables as at year end - 0.68
d) Reimbursement of Expenses 2.30 5.75
Limited c) Pharmacy income 0.92 0.95
e) Fees 6.18 0.55
e) Receivables as at year end 0.50 -
6 Imperial H ospital and a) Investment in Equity 1,155.38 1,155.38
16 Apollo Lavasa H ealth a) Investment in Equity 110.00 110.00
Research Centre Limited b) Loan given 16.15 234.00
Corporation Limited b) Receivables as at year end 3.17 1.71
c) Interest income for the year 15.37 21.74
c) Pharmacy Income 0.07 0.54
d) Receivables as at year end 357.84 308.30
17 Quintiles Phase One a) Investment in Equity 152.00 120.80
e) Reimbursement of Expenses 15.12 10.82
statutory section

Clinical Trials India b) Rent received 15.23 14.45

f) Pharmacy income 312.21 287.86
Private Limited c) Receivables as at year end 56.07 38.21
h) Fees - 9.46
18 Family H ealth Plan a) Investment in Equity 4.90 4.90
7 Apollo N ellore H ospital a) Investment in Equity 13.96 13.96
Limited b) Receivables as at year end 17.52 11.77
Limited (formerly know n b) Advance for Investment 57.90 57.90
c) Transactions during the year 21.42 5.43
as Pinakini H ospitals
19 Indraprastha M edical a) Investment in Equity 393.72 393.72
Limited) b) Receivables as at year end 392.47 397.69
Corporation Limited
8 Apollo Cosmetic Surgical a) Investment in Equity 28.44 28.44 c) Dividend Received 32.46 30.89
Centre Private Limited b) Receivables as at year end 0.36 2.99 d) Commission on Turnover 59.41 46.43
9 Alliance M edicorp (India) a) Investment in Equity 62.53 56.61 e) License Fees 22.84 13.54
Limited b) Advance for Investment 6.32 - f) Pharmacy income 1,529.25 1,292.45
c) Payables as at year end 0.42 0.91 20 Stemcyte India Investment in Equity 80.00 80.00
business review

10 Alliance Dental Care a) Investment in Equity 54.06 16.32 Therapautics Private

Limited b) Receivables as at year end 8.75 8.07
Limited
c) Corporate Guarantees executed 35.00 35.00
21 Dr. Prathap C Reddy Remuneration paid 156.30 171.60
11 Apollo H ospitals a) Investment in Equity 352.92 214.54
22 Smt. Preetha Reddy Remuneration paid 52.50 68.64
International Limited b) Investment in Preference Shares 110.40 110.40
23 Smt. Suneeta Reddy Remuneration paid 52.50 50.20
c) Receivables as at year end 145.45 138.38
24 Smt. Sangita Reddy Remuneration paid 52.50 17.16
d) Corporate Guarantees executed - 207.50
25 Smt. Shobana Kamineni Remuneration paid 52.50 17.16
e) Receivables as at year end 35.98 19.44
26 Apollo Sindoori H otels a) Payables as at year end 13.92 11.16
f) Fees - 2.76
Limited b) Reimbursement of Expenses 2.37 1.46
g) Reimbursement of Expenses 7.99 2.97
h) Pharmacy income 0.34 0.24

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financial statements

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(` in million) 35. LEASES

Sl Nam e ofrelated parties Nature ofTransaction 31.03.2013 31.03.2012 In respect of N on- cancellable Operating Leases
No
Lease payments recognized in the Statement of Profit and Loss is ` 980.37 million (` 992.37 million)
performance highlights

27 H ealth Super H iw ay a) Investment in Preference Shares 22.00 22.00

Private Limited b) Receivables as at year end 2.66 1.76 (` in million)
28 Faber Sindoori a) Payables as at year end 28.60 13.66 Minim um Lease Paym ents 31.03.2013 31.03.2012
M anagement Services b) Transactions during the year 242.91 157.35
N ot later than one year 681.84 620.86
Private Limited c) Reimbursement of Expenses 1.18 0.90
Later than one year and not later than five years 1,819.05 1,755.80
29 Lifetime W ellness Rx a) Payables as at year end 0.87 2.27
b) Transactions during the year 14.96 10.33 Later than five years 4,507.58 3,127.30
International Limited
30 P. Obul Reddy & Sons a) Transactions during the year 29.89 11.62 Lease agreements are renew able for further period or periods on terms and conditions mutually agreed betw een
b) Receivables as at year end 0.75 0.01
the lessor and the Company.
31 Keimed Private Limited a) Payables as at year end 16.57 43.29
b) Purchases 3,197.84 3,201.27
corporate review

Variation/Escalation clauses in lease rentals are made as per mutually agreed terms and conditions by the lessor
c) Pharmacy Income 1.32 0.26 and the Company.
32 M edvarsity Online a) Rent received 0.94 0.90
Limited b) Receivables as at year end 2.98 - 36. (a) The jointly Controlled Entities considered in the Consolidated Financial Statements are:
c) Transactions during the year 0.03 0.05
33 Apollo H ealth Resources Receivables as at year end 9.88 11.75 Nam e ofthe Com pany Country of Proportion Proportion
Limited Incorporation ofow nership ofow nership
34 Apollo M umbai H ospital a) Receivables as at year end 6.87 6.35
Interest(%) Interest(%)
Limited b) Reimbursement of Expenses 15.39 12.03
31.03.2013 31.03.2012
c) Pharmacy income 3.37 2.37
35 Aircell Cellular Limited a) Payables as at year end 0.31 0.27 Apollo H ospitals International Limited India 50.00* 50.00*
b) Transactions during the year 4.12 3.24 Apollo Gleneagles H ospital Limited India 50.00 50.00
36 Dishnet W ireless Limited a) Payables as at year end 0.28 0.06 Apollo Gleneagles PET CT Private Limited India 50.00 50.00
statutory section

b) Transactions during the year 2.16 0.58 Apollo M unich H ealth Insurance Company Limited India 10.23 10.45
37 Kurnool H ospitals Investment in Equity 1.73 1.73
Future Parking Private Limited India 49.00 49.00
Enterprise Limited
Quintiles Phase One Clinical Trials India Private India 40.00 40.00
38 AM G H ealth Care Advance for Investment 12.33 12.33
Limited
Destination Private
Apollo Lavasa H ealth Corporation Limited India 34.66 34.66
Limited
39 Future Parking Private a) Investment in Equity 24.01 24.01 *Inclusive of 27% (42.09% ) shares held by U nique H ome H ealth Care Limited,a 100% subsidiary of Apollo H ospitals
Limited b) Advance Given 0.49 0.49 Enterprise Limited.
40 B ritish American Investment in Equity 135.88 203.82
H ospitals Enterprises
Limited
business review

41 Sapien B iosciences a) Investment in Equity 0.40 -

Private Limited b) Investment in Preference Shares 5.00 -
In case of other related parties,there are no transactions w ith the Company.

annual report 2012–13

154 155
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

(b) The groups interests in the joint venture accounted for using proportionate consolidation in the Consolidated 37. During the year 2002-03,on a review of fixed assets,certain selected medical equipments w ere identified and
Financial Statements are: impaired. For the current year,on a review as required by Accounting Standard 28 ‘Impairment of Assets’,the
(` in million) management is of the opinion that no impairment loss or reversal of impairment loss is required,as conditions
Particulars As at As at of impairment do not exist.
performance highlights

31stMarch,2013 31stMarch,2012
I ASSETS 38. The Company has been exempted from publishing the financial statements for sixteen of its subsidiaries
Non-currentassets including fellow subsidiaries w hich are required to be attached to the Company’s accounts,under Sec.212(1) of
(a) Fixed assets the Companies Act,1956 for the financial year ended 31st M arch 2013.
(i) Tangible assets 2,143.60 2,121.08
(ii) Intangible assets 13.02 10.06 39. In the process of acquiring Apollo Gleneagles H ospitals Limited (AGH L) in Kolkata,Apollo H ospitals Enterprise
(iii) Capital w ork-in-progress 137.69 43.30 Limited had initially invested ` 30 million [` 5 million tow ards equity and ` 25 million to discharge other
(iv) Intangible assets under development - - liabilities of AGH L,erstw hile Duncan Gleneagles H ospital Limited (DGH L)] to acquire 50.26% holding in DGH L
(b) N on-current investments 386.32 342.09 (subsequently reduced to 49% ,now increased to 50% ). AGH L assigned an unsecured debt of Rs.163.70 million
(c) Deferred tax assets (net) 108.73 93.40 existing in its books to Apollo H ospitals Enterprise Limited, out of w hich ` 150 million w as received till FY
(d) Long-term loans and advances 195.47 120.20
corporate review

2012-13 and taken to income,leaving a balance unsecured debt of ` 13.70 million. As a measure of prudence,
Currentassets
the balance amount is not recognized as an advance or investment in the books of Apollo H ospitals Enterprise
(a) Current investments 20.45 10.11
Limited currently and w ill be accounted for as and w hen the amount(s) are received.
(b) Inventories 41.89 26.02
(c) Trade receivables 287.96 234.45
40. On review of the operations of setting up the H ospital in N oida,the Company has re-assigned the lease agreement
(d) Cash and cash equivalents 362.55 257.34
betw een itself and the lessor to its associate, Indraprastha M edical Corporation Limited by extinguishing its
(e) Short-term loans and advances 48.42 82.30
rights and privileges in the original lease deed dated 27th October 2001.
(f) Other current assets 84.44 45.59
II LIABILITIES
41. U nrealised amounts on project development and pre-operative project expenses incurred at B ilaspur H ospital
Non-currentliabilities
amounting to ` 56.62 million are included in advances and deposits account. The above expenses incurred on
(a) Long-term borrow ings 681.59 743.18
the project w ill be amortised over the balance lease period of 7 years. The balance yet to be amortised as on
(b) Deferred tax liabilities (N et) 100.66 53.21
(c) Other Long term liabilities 18.87 15.34 31.03.2013 is ` 22.03 million (` 25.17 million).
statutory section

(d) Long-term provisions 6.26 6.52

42. Figures of the current year and previous year have been show n in millions.
Currentliabilities
(a) Short-term borrow ings 277.22 259.23 43. Figures in brackets relate to the figures for the previous year.
(b) Trade payables 469.48 586.57
(c) Other current liabilities 663.89 389.80 44. Previous year figures have been regrouped and reclassified w herever necessary to conform to the current years
(d) Short-term provisions 0.08 4.01 classification.
III INCOME
Revenue from operations 2,292.77 1,898.18
Other income 16.82 13.24 As per our Report annexed For and on behalfofthe B oard ofD irectors
IV EXPENSES For M/s. S. Visw anathan Krishnan Akhilesw aran Dr. Prathap C Reddy
(a) M aterial consumption,purchase of stock in trade and changes in 578.26 521.47 Chartered Accountants ChiefFinancial Officer Executive Chairm an
Firm Registration N o.004770S
inventories
business review

V C Krishnan S M Krishnan Preetha Reddy

(b) Employee benefits expense 432.55 345.33 Partner [Link] M anager - Finance & Com pany Secretary M anaging D irector
(c) Finance costs 126.28 130.44 (M em bership N o.022167)
(d) Depreciation and amortization expense 154.30 198.85 17,B ishop W allers Avenue W est Suneeta Reddy
M ylapore,Chennai - 600 004 Joint M anaging D irector
(e) Other expenses 962.49 793.42
Profit before tax 55.72 (78.08) Place :Chennai
D ate : 20th M ay 2013
(a) Provision for Taxation(Including Deferred Tax Liability) 33.85 67.16
(b) Add:Deferred tax asset - 0.05
N et Profit 21.87 (145.20)
V OTHER MATTERS
(a) Contingent Liabilities 200.65 225.94
(b) Capital Commitments 100.38 34.32

annual report 2012–13

156 157
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

(` in million)
Proceeds from long term borrow ings 5,488.70 1,165.56
cashflow statement Proceeds from short term borrow ings - 49.80
for the year ended 31stMarch 2013 Repayment of finance/lease liabilities (2,111.30) (2,375.20)
(` in million) Interest paid* (726.30) (636.00)
performance highlights

31.03.2013 31.03.2012 Dividend paid (556.50) (467.70)

A Cash Flow from operating activities N et cash from financing activities 3,673.71 1,852.71
Net profit before tax and extraordinary items 4,079.80 3,375.20 N et increase in cash and cash equivalents (A+B +C) 685.11 455.15
Adjustment for Cash and cash equivalents ( opening balance ) 1,869.55 1,414.40
Depreciation & Amortization 1,085.20 911.30 Cash and cash equivalents ( Closing balance ) 2,554.66 1,869.55
Loss on sale of Investment (91.80) 0.90 Component of Cash and cash equivalents
Loss on sale of asset 38.10 37.30 Cash on H and 119.15 75.93
Interest paid 726.30 636.00 B alance w ith B anks
Foreign Exchange gain / loss (1.40) (4.30) 1) Available w ith the company for day to day 2,413.24 1,773.75
Extraordinary Item (45.45) -
corporate review

operations
Interest received (174.50) (143.60) 2) Amount available in unclaimed dividend and 22.27 19.87
Dividend received (89.50) (131.50) unclaimed deposit payment accounts.
Provision for bad debts 28.70 24.40
* Includes ` 35.18 million tow ards cost of covering the currency fluctuations and LIB OR risk for ECB availed by the
B ad debts w ritten off 106.80 120.10
company
1,582.45 1,450.60
O perating profit before w orking capitalchanges 5,662.25 4,825.70 Notes:
Adjustment for 1. Previous year figures have been regrouped w herever neccessary.
Trade or other receivables (863.90) (985.80) 2. Figures in bracket represent outflow .
Inventories (226.80) (321.90)
Trade payables 54.10 (84.60) As per our Report annexed For and on behalfofthe B oard ofD irectors
For M/s. S. Visw anathan Krishnan Akhilesw aran Dr. Prathap C Reddy
Others (410.70) 248.24
Chartered Accountants ChiefFinancial Officer Executive Chairm an
statutory section

(1,447.30) (1,144.06) Firm Registration N o.004770S

Cash generated from operations 4,214.95 3,681.64 V C Krishnan S M Krishnan Preetha Reddy
Partner [Link] M anager - Finance & Com pany Secretary M anaging D irector
Foreign Exchange gain /loss 1.40 4.30
(M em bership N o.022167)
Taxes paid (890.70) (624.30) 17,B ishop W allers Avenue W est Suneeta Reddy
M ylapore,Chennai - 600 004 Joint M anaging D irector
Cash flow before extraordinary items 3,325.65 3,061.64
Net cash from operating activities 3,325.65 3,061.64 Place :Chennai
D ate : 20th M ay 2013
B Cash flow from Investing activities
Purchase of fixed assets (5,396.20) (3,407.80)
AU D ITO RS'CERTIFICATE
Sale of fixed assets - 74.40
W e have examined the attached Cash Flow Statement of Apollo H ospitals Enterprise Limited for the year ended 31st
Purchase of investments (3,560.00) (6,784.10)
M arch 2013. The statement has been prepared by the Company in accordance w ith the requirements of Clause 32 of
Investment In Subsidiaries & Joint Ventures & (380.60) (1,260.30)
business review

the listing agreement w ith the Stock Exchanges and is based on and in agreement w ith the corresponding Statement
Associates
of Profit and Loss and the B alance Sheet of the Company covered by our report of 20th M ay 2013 to the members of
Sale of investments 2,713.10 6,643.40
the Company.
Interest received 174.50 143.60
Dividend received 89.50 131.50 For M/s. S. Visw anathan
Chartered Accountants
Extraordinary Item 45.45 -
Firm Registration N o.004770S
N et cash used in Investing activities (6,314.25) (4,459.20)
Place :Chennai V C Krishnan
C Cash flow from financing activities D ate : 20th M ay 2013 Partner
Proceeds from issue of equity shares 23.30 48.78 M em bership N o.022167

Proceeds from issue of share premium 1,555.81 4,067.47

annual report 2012–13

158 159
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

FIVE YEARS STANDALONE FINANCIAL PERFORMANCE AT A GLANCE

-
(` in million)

%
0.25
0.17
7.97

3.24

1.51
2.97
0.27

0.04
11.63

16.38

13.95

54.69
14.93
Year Ended 31st M ar 13 31st M ar 12 31st M ar 11 31st M ar 10 31st M ar 09
Balance Sheet

(` in million)
performance highlights

Sources

-
Share Capital 695.63 672.33 623.55 617.85 602.35

5.81

31st M ar 09
36.86
25.04

40.19
401.60

479.79

223.16
439.20
Preferential issue of equity share - 387.05 685.07 - -
1,180.69

1,722.39

2,424.94

2,210.51
2,065.74

8,096.51
14,803.50
w arrants
-

-
Reserve and Surplus 26,580.34 22,463.28 16,413.02 14,799.93 13,106.20

%
8.18

0.67

3.10

2.03
2.92

0.02
11.95

16.92

14.17

53.50
15.41
N etw orth 27,275.97 23,522.66 17,721.64 15,417.66 13,708.11
Loans (including long term liabilities and 8,825.42 6,921.47 7,689.40 6,899.86 4,494.82
provisions)
-

Deferred Tax Liability 2,394.11 1,700.85 1,071.06 751.45 626.56

3.43

31st M ar 10
432.49

124.89

577.12

377.47
543.06

Applications
corporate review

1,519.63

2,221.65

3,145.63

2,633.37

9,944.64
2,863.81

18,587.45
Gross B lock 26,427.74 21,196.95 17,968.91 15,289.23 11,779.31
Accumulated Depreciation 5,785.32 4,827.51 3,987.44 3,314.74 2,779.92

%
7.73

1.36

2.37

2.35
3.00

N et B lock 20,642.43 16,369.44 13,981.47 11,974.49 8,999.39

11.46

16.81

15.74

52.25
15.20
Investments 5,254.50 6,470.10 5,155.42 4,897.88 6,292.80
Long Term Loans and Advances 3,015.98 5,103.33 4,521.44 - -
-

Current Assest,Loans & Advances

31st M ar 11
467.67

319.61

556.45

551.45
705.85

Inventory 2,053.88 1,827.09 1,505.21 1,343.43 1,088.42

1,817.18

2,693.24

3,950.54

3,572.00
3,697.38

23,495.65
12,275.73

Debtors 4,266.09 3,537.70 2,696.43 2,055.34 1,607.35

Cash and B ank 2,554.66 1,869.55 1,414.40 2,855.58 646.16
%
9.83

2.68

1.85

2.71
3.88

Loans and Advances 5,758.27 2,406.02 2,279.23 5,170.72 3,693.22

14.36

20.95

19.22

61.95
18.24
statutory section

(A) 14,632.90 9,640.36 7,895.27 11,425.07 7,035.16

Current Liabilities & Provisions
-

Creditors 1,763.42 1,709.36 1,794.01 1,781.07 750.05

31st M ar 12
537.87

629.79

435.46

636.03
911.28

Other Liabilities 2,226.86 2,955.67 2,593.45 839.95 776.96

2,309.90

3,375.15

4,922.46

4,285.07
4,516.91

28,279.20
14,554.76

Provisions 1,060.03 773.22 684.04 2,607.45 1,970.85

(B ) 5,228.46 5,438.25 5,071.50 5,228.46 3,497.86
Net Current Assets (A - B) 9,404.44 4,202.11 2,823.77 6,196.60 3,537.30
9.23%

2.07%

0.88%

2.17%
3.24%
12.18%

17.46%

15.53%

51.36%
15.66%

M iscellaneous Expenditure - - - 0.12 0.45

Key Indicators
-

O PM% 17.46 17.41 16.93 16.90 16.38

31st M ar 13
45.45
765.19

693.26

295.45

726.25

N PM% 9.23 8.17 7.72 8.18 7.98

business review

3,091.08

1,085.20
4,079.79

5,845.79

5,243.99
5,200.16

33,488.18
17,198.23

Collection Grow th % 18.42 20.36 26.61 25.56 28.72

OP Grow th (% ) 18.76 24.60 30.16 29.72 20.27
Earning Per Share (` ) (B asic) 22.43 17.72 14.66 12.31 9.9
Equity shares of face value of ` 5 each
Capital Employed 36,954.47 29,693.24 25,131.74 22,317.52 18,202.93
R O I (PB IT / [Link]) % 14.42 14.63 13.83 12.83 11.33
Year Ended

RON W % 12.17 11.20 10.97 10.43 9.09

Employee Cost to Collections % 15.66 15.15 15.18 15.40 14.93
Fringe B enefit Tax
PAT
Dividend

Previous
Deferred

Extraordinary items
PB T
Tax - Current

Financial Expenses
Depreciation

Administrative Expenses
Other Expenses
Operating Profit

PRO FIT AND LO SS ACCO U NT

Income
Operative Expenses
Salaries and W ages

Debt / Equity Ratio 0.35 0.29 0.43 0.44 0.33

FIVE YEARS STANDALONE FINANCIAL PERFORMANCE AT A
GLANCE

annual report 2012–13

160 161
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

OPINION
independentauditor’
sreport
to the Board ofDirectors of Apollo Hospitals Enterprise Lim ited
5. In our opinion and to the best of our information and according to the explanations given to us,and based on
consideration of the reports of the other auditors on the financial statements/consolidated financial statements
performance highlights

of the subsidiaries,associates and joint ventures as noted below ,the consolidated financial statements give a
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS true and fair view in conformity w ith the accounting principles generally accepted in India.
1. W e have audited the accompanying Consolidated financial statements of APOLLO H OSPITALS EN TERPRISE
(a) in the case of the Consolidated B alance Sheet,of the state of affairs of the Group as at 31st M arch,2013;
LIM ITED (the ‘Company’) and its subsidiaries, and jointly controlled entities (The Company, its Subsidiaries
and jointly controlled entities constitute ‘The Group’) w hich comprise the Consolidated B alance Sheet as at (b) in the case of the Consolidated Statement of Profit and Loss,of the profit of the Group for the year ended on
31st M arch,2013,the Consolidated Statement of Profit and Loss and the Consolidated Cash Flow Statement that date:and
for the year then ended. The consolidated financial statements include investment in Associates accounted
(c) in the case of the Consolidated Cash Flow Statement,of the cash flow s of the Group for the year ended on
on the equity method in accordance w ith Accounting Standard 23 (Accounting for investments in Associates in
that date.
consolidated financial statements) and the jointly controlled entities accounted in accordance w ith Accounting
Standard 27 (Financial Reporting of interests in joint ventures) as notified under the Companies (Accounting
corporate review

Standards) Rules,2006 and a summary of significant accounting policies and other explanatory information. OTHER MATTERS
6. The financial statements of Subsidiaries (AB M edical Centres Limited, Apollo H ealth and Lifestyle Limited,
MANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS Samudra H ealthcare Enterprises Limited,Imperial H ospitals and Research Centre Limited,Pinakini H ospitals
Limited, Apollo H ospital (U K) Limited, Apollo Cosmetic Surgical Centre Private Limited, Alliance M edicorp
2. M anagement is responsible for the preparation of these consolidated financial statements that give a true
(India) Limited, U nique H ome H ealth Care Ltd, Sapien B iosciences Pvt Ltd, W estern H ospitals Corporation
and fair view of the consolidated financial position,consolidated financial performance and consolidated cash
Private Limited),Joint Ventures (Apollo Gleneagles H ospitals Limited,Apollo Gleneagles PET CT Private Limited,
flow s of the Group in accordance w ith accounting principles generally accepted in India including Accounting
Apollo M unich H ealth Insurance Company Limited,Apollo Lavasa H ealth Corporation Limited,Apollo H ospitals
Standards referred in Section 211 (3C) of the Companies Act,1956 (‘the Act’). This responsibility includes the
International Limited and Future Parking Private Limited) w hich in the aggregate represents total assets (net)
design, implementation and maintenance of internal control relevant to the preparation and presentation of
as at 31st M arch 2013 of ` 6,669.91 million (31.03.2012: ` 5,405.69 M illion) and total revenues (net) for the
the consolidated financial statements that give a true and fair view and are free from material misstatement,
year ended on that date of ` 10,985.21 M illion (31.03.2012:` 8,270.94 M illion) and of Associates (Indraprastha
w hether due to fraud or error.
M edical Corporation Limited and Family H ealth Plan Limited) w hich reflect the Group’s share of profit of `
statutory section

86.50 million (31.03.2012: profit of ` 70.99 M illion) for the year,have been audited by other auditors (U nique
AUDITOR’S RESPONSIBILITY H ome H ealth Care Limited and Apollo M unich H ealth Insurance Company Limited audited by us) w hose reports
3. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. have been furnished to us by the management, and our opinion in so far as it relates to the amounts included
W e conducted our audit in accordance w ith the standards on Auditing issued by the Institute of Chartered in respect of this entity is based solely on the report of the other auditors.
Accountants of India. Those standards require that w e comply w ith ethical requirements and plan and perform
the audit to obtain reasonable assurance about w hether the consolidated financial statements are free from The consolidated financial statements include the group’s share of loss of ` 18.81 million (Previous year ` 11.87
material misstatement. million) of Stemcyte India Therapautics Private Limited,based on the unaudited management certified accounts.
The consolidated financial statements also include the group’s share of loss of ` 31.81 million (Previous year
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the ` 78.47 million) of Quintiles Phase One Clinical Trials India Private Limited,based on the unaudited management
consolidated financial statements. The procedures selected depend on the auditor’s judgement, including certified accounts.
the assessment of the risks of material misstatement of the consolidated financial statements,w hether due
business review

to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
Group’s preparation and presentation of the consolidated financial statements that give a true and fair view in
17,B ishop W allers Avenue (W est), For M/s S Visw anathan
order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating
CIT Colony,M ylapore, Chartered Accountants
the appropriateness of accounting policies used and the reasonableness of the accounting estimates made
Chennai – 600 004 FRN :004770S
by management,as w ell as evaluating the overall presentation of the consolidated financial statements. W e
believe that the audit evidence w e have obtained is sufficient and appropriate to provide a basis for our audit
V C Krishnan
opinion.
Place:Chennai Partner
Date :20th M ay 2013 M embership N o:022167

annual report 2012–13

162 163
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

consolidatedbalance sheet
as at 31st M arch 2013
consolidatedstatementofprofit&loss
for the year ended 31st M arch 2013 (` in million)
(` in million)
Particulars Note 31.03.2013 31.03.2012 Particulars N ote 31.03.2013 31.03.2012
I. REVEN U E FROM OPERATION S 25 35,394.29 29,577.07
performance highlights

I. EQU ITY AN D LIAB ILITIES

Add :Share of Joint Ventures 2,292.77 1,898.19
1 Shareholders’funds II. OTH ER IN COM E 26 301.74 259.07
(a) Share capital 4 695.63 672.33
(b) Reserves and surplus 5 26,772.10 24,008.81 TOTAL REVENUE 37,988.80 31,734.33
(c) M oney received against share w arrants - 387.05 III. EXPEN SES
2 M inority Interest 173.44 125.60 (a) Cost of materials consumed during the year 9,430.00 8,393.30
3 N on-current liabilities (b) Purchase of Stock -in-Trade 8,639.91 6,898.82
(a) Long-term borrow ings 7 10,789.00 5,743.76 (c) Changes in inventories of stock-in-trade (89.84) (190.32)
(b) D eferred tax liabilities (N et) 8 2,545.70 1,795.92 Add :Share of Joint Ventures 578.26 521.47
(c) Other Long term liabilities 9 46.55 51.44
(d) Long-term provisions 10 27.86 21.66 (d) Employee benefits expense 27 6,231.31 5,028.60
4 Current liabilities (e) Finance costs 28 1,032.50 891.41
(a) Short-term borrow ings 11 578.77 1,749.87 (f) Depreciation and amortization expense # 1,423.42 1,239.10
corporate review

(b) Trade payables 2,217.63 1,903.31 (g) Other expenses 29 6,815.41 5,692.22
Add :Share ofJoint Ventures 469.48 586.57 TOTAL EXPENSES 34,060.97 28,474.60
(c) Other current liabilities 12 3,008.01 2,242.72 IV PROFIT BEFORE EXTRAORDIN ARY ITEM S AN D TAX 3,927.83 3,259.73
(d) Short-term provisions 13 1,066.46 781.93 V EXTRAORDIN ARY ITEM S* 62.95 -
TOTAL 48,390.63 40,070.97
VI PROFIT B EFORE TAX 3,990.78 3,259.73
II. ASSETS
1 Goodw ill on Consolidation 1,453.00 1,350.45 VII TAX EXPEN SE
2 N on-current assets (1) Current tax (M AT) 841.49 672.11
less M AT Credit Entitlem ent (534.66) (229.27)
(a) Fixed assets
(i) Tangible assets 14 21,766.55 18,566.03 N et Current Tax 306.83 442.84
(ii) Intangible assets 15 186.33 196.05 (2) D eferred tax 8 743.54 713.62
(iii) Capital w ork-in-progress 16 3,885.86 1,976.46 (3) Add :D eferred tax Asset - 6.86
(iv) Intangible assets under development 148.07 116.23 VIII PROFIT (LOSS)FOR TH E PERIOD 2,940.41 2,110.13
statutory section

Less :M inority Interest (16.58) (12.34)

(b) N on-current investments 17 1,479.54 4,421.74
IX PROFIT AFTER M IN ORITY IN TEREST 2,956.99 2,122.47
(c) Deferred tax assets (N et) 8 251.45 245.01
Add :Share in Associates 86.51 70.99
(d) Long-term loans and advances 18 3,472.22 2,574.60 X PROFIT AFTER SH ARE IN ASSOCIATES 3,043.50 2,193.46
3 Current assets XI EARN IN GS PER EQU ITY SH ARE FACE VALU E OF
(a) Current investments 19 3,787.59 1,219.83 ` 5/- EACH 32
B efore Extraordinary Item
(b) Inventories 20 2,186.83 1,915.38
B asic (in `) 21.62 16.83
(c) Trade receivables 21 4,733.03 3,867.33 D iluted (in `) 21.42 16.30
(d) Cash and cash equivalents 22 3,200.64 2,368.38 After Extraordinary Item
(e) Short-term loans and advances 23 1,603.26 984.36 B asic (in `) 22.08 16.83
(f) Other current assets 24 236.26 269.12 D iluted (in `) 21.88 16.30
TOTAL 48,390.63 40,070.97
XII CON SOLIDATED N OTES FORM IN G PART OF
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ACCOU N TS 1-44
III. Consolidated N otes Form ing Part ofAccounts 1-44 # Includes ` 0.50 m illion being the group share ofim pairm ent offixed assets ofQuintiles Phase One Clinical Trials India Pvt Ltd.
* Represents profit on sale ofthe Group’s equity investm ent in Apollo Health Street Lim ited
As per our Report annexed For and on behalfofthe B oard ofD irectors As per our Report annexed For and on behalfofthe B oard ofD irectors
For M/s. S. Visw anathan Krishnan Akhilesw aran Dr. Prathap C Reddy
For M/s. S. Visw anathan Krishnan Akhilesw aran Dr. Prathap C Reddy
Chartered Accountants ChiefFinancial Officer Executive Chairm an Chartered Accountants ChiefFinancial Officer Executive Chairm an
Firm Registration N o.004770S Firm Registration N o.004770S
V C Krishnan S M Krishnan Preetha Reddy
V C Krishnan S M Krishnan Preetha Reddy Partner [Link] M anager - Finance & Com pany Secretary M anaging D irector
Partner [Link] M anager - Finance & Com pany Secretary M anaging D irector (M em bership N o.022167)
(M em bership N o.022167) 17,B ishop W allers Avenue W est Suneeta Reddy
17,B ishop W allers Avenue W est Suneeta Reddy M ylapore,Chennai - 600 004 Joint M anaging D irector
M ylapore,Chennai - 600 004 Joint M anaging D irector
Place :Chennai
Place :Chennai
D ate : 20th M ay 2013
D ate : 20th M ay 2013

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A. Investm entin Subsidiaries

NotesFormingPartofAccounts 1. The Subsidiary Com panies considered for the purpose ofconsolidation are:
Accounting Policies & N otes forming part of the Consolidated Accounts of Apollo H ospitals Enterprise Limited,its
performance highlights

Subsidiaries,Associates and Joint Ventures. % ofholding % ofholding

Country of
Nam e ofthe Subsidiary as on as on
Incorporation
1. BASIS OF ACCOUNTING 31stMarch 2013 31stMarch 2012
U nique H ome H ealth Care Limited India 100.00 100.00
The financial statements are prepared under the historical cost convention under accrual method of accounting
AB M edical Centres Limited India 100.00 100.00
and as a going concern,in accordance w ith the Generally Accepted Accounting Principles (GAAP) prevalent in
India and the M andatory Accounting Standards as notified under the Companies (Accounting Standards) Rules, Apollo H ealth and Lifestyle Limited India 100.00 100.00
2006 and as per the provisions of the Companies Act,1956. Samudra H ealthcare Enterprise Limited India 100.00 100.00
Imperial H ospital & Research Centre Limited # India 85.76 85.76

APOLLO HOSPITAL (UK)LIMITED Apollo H ospital (U K) Limited U nited Kingdom 100.00 100.00
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Apollo N ellore H ospital Limited** India 74.94 74.94

The financial statements have been prepared in accordance w ith U nited Kingdom Generally Accepted
Apollo Cosmetic Surgical Centre Private Limited India 69.40 69.40
Accounting Practice (U nited Kingdom Accounting Standards and applicable law ). Suitable accounting policies
are selected and applied consistently and judgments and estimates made are reasonable and prudent. The Alliance M edicorp (India) Limited India 51.00 51.00

financial statements have been prepared on a going concern basis unless it is inappropriate to presume that the W estern H ospitals Corporation Private Limited India 100.00 100.00
Company w ill continue in business. ISIS H ealthcare India Private Limited* India * *
M era H ealthcare Private Limited* India * *

QUINTILES PHASE ONE CLINICAL TRIALS INDIA PRIVATE LIMITED Apollo Koramangla Cradle Limited* India * *
Alliance Dental Care Limited @ India @ @
The Company is a Small and M edium Sized Company (SM C) as defined in the General Instructions in respect
Sapien B iosciences Private Limited## India 70.00 -
of the Accounting Standards notified under Section 211 (3C) [Companies (Accounting Standards) Rules 2006 as
amended]of the Companies Act,1956. Accordingly,the Company has complied w ith the Accounting Standards
as applicable to a Small and M edium Sized Company.
statutory section

# Formerly know n as Imperial Cancer H ospital & Research Centre Limited.

* 100% subsidiary of Apollo H ealth and Lifestyle Limited.
APOLLO MUNICH HEALTH INSURANCE COMPANY LIMITED ** Formerly know n as Pinakini H ospitals Limited.
The financial statements have been prepared in accordance w ith generally accepted accounting principles and
@ Subsidiary of Alliance M edicorp (India) Limited in w hich AH EL holds 21.07% (8.94% )
practices follow ed in India and conform to the statutory requirements of the Insurance Act,1938,The Insurance
## 70% subsidiary of Apollo H ospitals Enterprise Limited during the year.
Regulatory and Development Authority (Preparation of Financial Statements and Auditor's Report of Insurance
Companies) Regulations 2002,orders and directions issued by IRDA in this regard,The Companies Act,1956 2. Financial Statements of all the subsidiaries have been draw n upto 31st M arch 2013.
to the extent applicable and the accounting standards issued by the Institute of Chartered Accountants of India 3. M inority Interest consists of the share in the net assets of subsidiaries,as on the date of the B alance Sheet.
(ICAI) to the extent applicable. The financial statements have been prepared as per historical cost convention 4. The amount of Deferred Revenue Expenditure (attributable to the Parent Company) not w ritten off at the end of
and on accrual basis as a going concern. the financial year immediately preceding the date of acquisition of a Subsidiary Company has been duly adjusted
and the amount appearing as deferred revenue expenditure in the B alance Sheet pertain to the post acquisition
business review

2. BASIS OF CONSOLIDATION period.

The Consolidated Financial Statements have been prepared in accordance w ith Accounting Standard
21-‘Consolidated Financial Statements’, Accounting Standard 23-‘Accounting for Investment in Associates
in Consolidated Financial Statements’ and Accounting Standard 27-‘Financial Reporting of Interests in Joint
Ventures’,as notified under the Companies (Accounting Standards) Rules,2006.

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B. Investm entin Associates 4. The Group’s interests in the Joint Ventures accounted for using proportionate consolidation in the Consolidated

1. The Associate Companies considered in the Consolidated Financial Statements are: Financial Statements are: (` in million)
Particulars As at 31st M arch As at 31st M arch
N am e ofthe Associate Com pany Country of Proportion Proportion
Incorporation ofow nership ofow nership 2013 2012
performance highlights

interest(% )as on interest(% )as on I ASSETS

31stM arch 2013 31stM arch 2012 Non-currentassets
Indraprastha M edical Corporation Limited. India 22.03 22.03 (a) Fixed assets
Family H ealth Plan Limited. India 49.00 49.00 (i) Tangible assets 2,143.60 2,121.08
Apollo H ealth Street Limited* India - 39.38* (ii) Intangible assets 13.02 10.06
(iii) Capital w ork-in-progress 137.69 43.30
Stemcyte India Therapautics Private Limited India 24.50 24.50
(iv) Intangible assets under development - -
* During the year the Company sold its entire investments,including the investment held through U nique H ome (b) N on-current investments 386.32 342.09
H ealth Care Ltd,a w holly ow ned subsidiary of Apollo H ospitals Enterprise Limited. (c) Deferred tax assets (net) 108.73 93.40
(d) Long-term loans and advances 195.47 120.20
2. The financial statements of all associates are draw n upto 31st M arch 2013.
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Currentassets
3. In the case of Stemcyte India Therapautics Private Limited, an associate, unaudited M anagement Certified (a) Current investments 20.45 10.11
accounts has been taken for consolidation. (b) Inventories 41.89 26.02
(c) Trade receivables 287.96 234.45
C. Investm ents in JointVentures (d) Cash and cash equivalents 362.55 257.34
1. The follow ing are jointly controlled entities. (e) Short-term loans and advances 48.42 82.30
(f) Other current assets 84.44 45.59
II LIABILITIES
Non-currentliabilities
N am e ofthe Associate Com pany Country of Proportion Proportion (a) Long-term borrow ings 681.59 743.18
Incorporation ofow nership ofow nership (b) Deferred tax liabilities (N et) 100.66 53.21
interest(% )as on interest(% )as on (c) Other Long term liabilities 18.87 15.34
statutory section

31stM arch 2013 31stM arch 2012 (d) Long-term provisions 6.26 6.52
Apollo Gleneagles H ospitals Limited India 50.00 50.00 Currentliabilities
Apollo Gleneagles PET – CT Private Limited # India 50.00 50.00 (a) Short-term borrow ings 277.22 259.23
(b) Trade payables 469.48 586.57
Apollo H ospitals International Limited** India 50.00** 50.00**
(c) Other current liabilities 663.89 389.80
Future Parking Private Limited India 49.00 49.00
(d) Short-term provisions 0.08 4.01
Apollo M unich H ealth Insurance Company Limited* India 10.23 10.45 III INCOME
Apollo Lavasa H ealth Corporation Limited *** India 34.66 34.66 (a) Revenue from operations 2,292.77 1,898.18
India 40.00 40.00 (b) Other income 16.82 13.24
# Formerly know n as Apollo Gleneagles PET CT Limited. IV EXPENSES
(a) M aterial consumption,purchase of stock in trade and 578.26 521.47
** Apollo H ospitals Enterprise Limited directly holds 23% (8% ) in Apollo H ospitals International Limited and a changes in inventories
business review

further 27% (42% ) through its w holly ow ned subsidiary U nique H ome H ealth Care Limited. (b) Employee benefits expense 432.55 345.33
(c) Finance costs 126.28 130.44
* Formerly know n as Apollo DKV Insurance Company Limited. (d) Depreciation and amortization expense 154.30 198.85
(e) Other expenses 962.49 793.42
*** Apollo Lavasa H ealth Corporation Limited has been considered as a joint venture based on the substance of the Profit before tax 55.72 (78.08)
agreement betw een Apollo Lavasa H ealth Corporation Limited and Apollo H ospitals Enterprise Limited. (a) Provision for Taxation(Including Deferred Tax Liability) 33.85 67.16
(b) Add:Deferred tax asset - 0.05
2. The Financial statements of all the Joint Ventures are draw n upto 31st M arch 2013. N et Profit 21.87 (145.20)
V OTHER MATTERS
3. In the case of Quintiles Phase One Clinical Trials India Private Limited,a joint venture,unaudited M anagement (a) Contingent Liabilities 200.65 225.94
Certified accounts has been taken for consolidation. (b) Capital Commitments 100.38 34.32

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D. As far as possible the Consolidated Financial Statements are prepared using uniform accounting policies Alliance Medicorp (India) Lim ited
for like transactions and other events in similar circumstances,and are presented in the same manner as Inventories are stated at low er of Cost or net realizable value. Cost of Inventory comprises cost of purchase of
the Company’s separate financial statements. inventories. N et Realizable value represent the estimated selling price less all estimated costs necessary to
complete the sale.
performance highlights

E. The effects arising out of variant accounting policies among the group Companies have not been calculated
and dealt w ith in the Consolidated Financial Statements since it is impracticable to do so. Accordingly,the
Apollo Health and Lifestyle Lim ited
variant accounting policies adopted by the Subsidiaries,Associates and Joint Ventures have been disclosed
in the financial statements. Consumables are valued at low er of cost or net realisable value. Cost is determined on a First in First out
basis. N et Realizable value is the estimated selling price in the ordinary course of business,less estimated cost
F. For the fiscal year ending 31st M arch 2013,the Company (AH EL) has been exempted from publishing the necessary to complete the sale.
standalone accounts of all fifteen of its subsidiaries under section 212(1) of the Companies Act, 1956.
H ow ever,necessary disclosure under section 212(1) has been made. Apollo Gleneagles Hospitals Lim ited

G. The foreign operations of the Company are considered as non – integral foreign operations. H ence, the Inventories are valued at low er of Cost or net realizable value. Costs have been calculated on a first-in,first-out
assets and liabilities have been translated at the exchange rate prevailing on the date of B alance Sheet. basis. Items such as surgical instruments/tools [Link] charged out over a period of 36 months from the month
corporate review

Income and Expenditure has been translated at average exchange rates prevailing during the reporting of their purchase.
period. Resultant currency exchange gain or loss is transferred to Foreign Currency Translation Reserve.
Future Parking Private Lim ited

3. SIGNIFICANT ACCOUNTING POLICIES Raw M aterial:

Raw M aterial,Stores and Spares are valued at w eighted average cost. Cost comprises all costs of purchase.
A. Use ofEstim ates
The preparation of financial statements are in conformity w ith generally accepted accounting principles and W ork-in-progress:
requires the management to make estimates and assumptions that affect the reported values of assets and
W ork-in-progress is valued at cost or the contract rates w hichever is low er.
liabilities,disclosure of contingent assets and liabilities at the date of the financial statements and the reported
revenues and expenses during the reporting period. Although these estimates are based upon management’s Completed projects:
best know ledge of current events and actions,actual results could differ from the estimates.
statutory section

Completed Projects are valued at cost or net realizable value,w hichever is less.

B. Inventories
Indraprastha MedicalCorporation Lim ited
1. The inventories of all medicines,medicare items traded and dealt w ith by the Company are valued at cost. In
i) Inventories are valued at low er of cost and net realizable value.
the absence of any further estimated costs of completion and estimated costs necessary to make the sale,
the N et Realisable Value is not applicable. Cost of these inventories comprises of all costs of purchase and ii) The cost in respect of the items constituting the inventories has been computed on a FIFO basis.
other costs incurred in bringing the inventories to their present location after adjusting for VAT w herever
applicable,applying the FIFO method.
C. Prior Period Item s and Extraordinary Item s
2. Stock of provisions,stores (including lab materials and other consumables),stationeries and housekeeping Prior period items and extraordinary items are separately classified,identified and dealt w ith as required under
items are stated at cost. The net realisable value is not applicable in the absence of any further modification/ Accounting Standard 5 on ‘N et Profit or Loss for the Period, Prior Period Items and Changes in Accounting
business review

alteration before being consumed in-house only. Cost of these inventories comprises of all costs of Policies’as notified under the Companies (Accounting Standards) Rules,2006.
purchase and other costs incurred in bringing the inventories to their present location,after adjusting for
VAT w herever applicable applying FIFO method. D. Depreciation and Am ortisation
3. Surgical instruments, linen, crockery and cutlery are valued at cost and are subject to 1/3rd w rite off i. Depreciation has been provided
w herever applicable applying FIFO method. The net realisable value is not applicable in the absence of any a. On assets installed after 1st April,1987 on straight line method at rates specified in Schedule XIV of the
further modification/alteration before being consumed in-house. Cost of these inventories comprises of all Companies Act,1956 on single shift basis.
costs of purchase and other costs incurred in bringing the inventories to their present location.
b. On assets installed prior to 2nd April 1987 on straight-line method at the rates equivalent to the rates
4. Imported inventories are accounted for at the applicable exchange rates prevailing on the date of transaction. specified in the Income Tax Act.
(Also refer N ote 29 in the N otes forming part of Accounts).

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ii. Depreciation on new assets acquired during the year is provided at the rates applicable from the date of Apollo Health and Lifestyle Lim ited
acquisition to the end of the financial year. Depreciation is provided using the straight-line method, pro rata for the period of use of the assets, at annual
depreciation rates stipulated in Schedule XIV to the Indian Companies Act,1956,or based on the estimated useful
iii. In respect of the assets sold during the year,depreciation is provided from the beginning of the year till the
lives of the assets,w hichever is higher,as follow s:-
performance highlights

date of its disposal.

Asset Rates ofDepreciation
iv. Individual assets acquired for ` 5,000/- and below are fully depreciated in the year of acquisition.
Furniture and Fittings 6.33%

Apollo Hospitals Enterprise Lim ited Office Equipment 4.75%

Air Conditioners 4.75%
v. Am ortization
Electrical Fittings 4.75%
a. The cost/premium of land and building taken on lease by the Company from Orient H ospital,M adurai w ill
Computers 16.21%
be amortised over a period of 30 years though the lease is for a period of 60 years.
B roadband Connections 16.21%
The cost/premium of land and building taken additionally on lease by the Company at M adurai is for a period Vehicles 9.50%
corporate review

of 9 years w ith an option to extend the lease by another 16 years. Depreciation on the leasehold building is M edical Equipments 7.07%
charged on a straight line basis w ith the lease period being considered as 25 years. Vehicles -M otor vehicle 20.00%
Softw are & Packages 16.21%
The Company has taken land in Karaikudi from Apollo H ospitals Educational Trust on lease for a period
of 30 years. The building constructed on the lease land w ill be amortised over a period of 30 years. This
Sapien Biosciences Private Lim ited
is in conformity w ith the definition of lease term as per Clause 3 of AS 19 ‘Leases’as notified under the
Depreciation on additions / deletions from fixed Assets during the year is charged on pro-rata basis from/up to the
Companies (Accounting Standards) Rules,2006.
date on w hich the asset becomes available/now available for use. Lease hold land is amortised over the lease life
b. Lease rental on operating leases is recognised as an expense in the Statement of Profit and Loss on of the land.
straight-line basis as per the terms of the agreement in accordance w ith Accounting Standard 19 ‘Leases’
as notified under the Companies (Accounting Standards) Rules,2006. Apollo Gleneagles Hospitals Lim ited
Depreciation on fixed assets is provided for on straight line basis as follow s:
statutory section

[Link] Lim ited

(a) H ospital B uildings - at 3.33 % .
Depreciation on Fixed Assets purchased before December 1993 are provided on Straight Line M ethod (on pro-rata
basis) at the old rates prescribed in Schedule XIV of the Companies Act,1956 and assets purchased after January (b) Other Assets – As per Schedule XIV of the Companies Act,1956.
1994 are provided on Straight Line M ethod (on pro-rata basis) at the new rates prescribed in Schedule XIV of the
Companies Act,1956. Apollo Lavasa Health Corporation Lim ited
Depreciation on Fixed Assets other than Intangible Assets has been provided on w ritten dow n value method at the
Apollo Cosm etic SurgicalCenter Private Lim ited
rates specified in Schedule XIV of the Companies Act,1956 on pro-rata basis. Cost of lease hold land is amortized on
Depreciation has been provided on “W ritten Dow n Value” method at rates specified in Schedule XIV to the Companies a straight line basis over the period of lease.
Act,1956.
In respect of intangible assets being computer softw are relating to H ospital M anagement System the same is
amortized over the estimated useful life of ten years under straight line method on pro-rata basis.
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Apollo Munich Health Insurance Com pany Lim ited Fam ily Health Plan (TPA) Lim ited
Depreciation on fixed assets is provided on straight line method (SLM ) w ith reference to the management’s Depreciation has been provided on the w ritten Dow n Value method as per the rates prescribed in Schedule XIV to
assessment of the estimated useful life of the asset or rates mentioned in Schedule XIV to Companies Act,1956, the Companies Act,1956 except Intangible assets (computers softw are) w hich are amortized at the same rate as
w hichever is higher. The depreciation rates used are given below : computers.
performance highlights

AssetClass Rate ofDepreciation

Indraprasatha MedicalCorporation Lim ited
Information Technology Equipment 25%
a. Depreciation is charged on straight line method at the rates prescribed under schedule XIV to the Companies
Computer Softw are 20%
Act,1956 (considered the minimum rate) or at higher rates,if the estimated useful life based on technological
Office equipments 25%
evaluation of the assets is low er than as envisaged under Schedule XIV to the Companies Act. In case of
Furniture & Fixtures 25% or on the basis of lease term additions and deletions during the year, the computations are on the basis of number of days for w hich the
of premises,w hichever is higher assets have been in use. Assets costing not more than ` 5,000/- each individually are depreciated fully in the
Vehicles 20% year of purchase.
M edia Films 33%
corporate review

b. W hen impairment loss / reversal is recognized, the depreciation charge for the asset is adjusted in future
Assets individually costing up to ` 20,000 are fully depreciated in the year of purchase. Depreciation on assets periods to allocate the asset’s revised carrying amount,less its residual value (if any) on a systematic basis over
purchased / disposed off during the year is provided on a pro- rata basis w ith reference to the date of addition / its remaining useful life.
deletion.
Am ortisation ofIntangible Assets
Quintiles Phase One ClinicalTrials India Private Lim ited i. Intangible assets are amortised on straight line method over the estimated useful life of the asset.
Depreciation on tangible assets is provided at the rates prescribed in Schedule XIV to the Companies Act,1956,or at
ii. The useful life of the intangible assets for the purpose of amortisation is estimated to be three years.
the rates determined based on the useful life of the assets,as estimated by the management,w hichever is higher.
Depreciation is provided based on the Straight Line M ethod. The rates adopted for depreciation determined on the
basis of useful life of tangible assets are as follow s: E. Revenue Recognition
a. Income from H ealthcare Services is recognised on completed service contract method. The hospital collections
statutory section

of the Company are net of discounts. Revenue also includes the value of services rendered pending final billing
Asset Rate ofDepreciation
in respect of in-patients undergoing treatment as on 31st M arch 2013.
(p.a)
H ospital Equipment 15% b. Pharmacy Sales are recognised w hen the risk and rew ard of ow nership is passed to the customer and are stated
Computers 20% net of returns,discounts and exclusive of VAT w herever applicable.
Office Equipment 15%
c. H ospital Project Consultancy income is recognised as and w hen it becomes due, on percentage completion
Furniture 15%
method,on achievement of milestones.
Vehicles 20%
d. Income from Treasury Operations is recognised on receipt or accrual basis w hichever is earlier.

Fixed assets costing less than ` 5,000 and mobile phones are depreciated fully in the year of purchase. e. Interest income is recognised on a time proportion basis taking into account the principal amount outstanding
and the rate applicable.
business review

Leasehold Improvements are amortized over the primary period of lease i.e. 5 years.
f. Royalty income is recognised on an accrual basis in accordance w ith the terms of the relevant agreement.

g. Dividend income is recognised as and w hen the ow ner’s right to receive payment is established.

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Apollo Health and Lifestyle Lim ited Apollo Munich Health Insurance Com pany Lim ited
Revenue is recognized to the extent that it is probable that the economic benefits w ill flow to the company and
a. Prem ium
the revenue can be reliably measured. Revenue from services is recognized as per the standard terms w ith the
Premium (net of service tax) is recognized as income over the contract period or period of risk,w hichever is
customer w hen the related services are performed,w ith reference to Cradle the One Time License fee is recognized
performance highlights

appropriate. Any subsequent revision or cancellation of premium is accounted for in the year in w hich they it
based on percentage of Completion method.
occur.
The Company has recognized revenue as follow s.
b. Com m ission on Reinsurance Prem ium
One Tim e License Fees Commission on reinsurance ceded is recognized as income in the year of cession of reinsurance premium. Profit
ǩ :LWKUHIHUHQFHWR&OLQLFVRI2QH7LPH/LFHQVHIHHLVUHFRJQL]HGDVLQFRPHRQVLJQLQJWKH028RQ commission under reinsurance treaties,w herever applicable,is recognized in the year of final determination of
completion of 3 months from date of signing M OU and balance 15% on commencement of operations. the profits and as intimated by the reinsurer.

ǩ :LWK5HIHUHQFHWR&UDGOHWKH2QH7LPH/LFHQVHIHHLVUHFRJQL]HGEDVHGRQSHUFHQWDJHRIFRPSOHWLRQPHWKRG c. Prem ium Deficiency

corporate review

Premium deficiency is recognized w henever the ultimate amount of expected claims, related expenses and
Operating License Fee
maintenance costs exceeds related sum of premium carried forw ard to the subsequent accounting period as
ǩ2SHUDWLQJ /LFHQVH)HHLVUHFRJQL]HGDVDSHUFHQWDJHRIWKHJURVVVDOHV
reserve for unexpired risk.

Ow ned clinics operationalincom e

d. Reserve for Unexpired Risk
ǩ 2ZQHGFOLQLFVUHFRJQLVHUHYHQXHVRQWKHEDVLVRIVHUYLFHVUHQGHUHGRQFDVKRURQDFFUXDOEDVLVZKLFKHYHULV
Reserve for unexpired risk represents that part of the net premium (premium net of reinsurance ceded)
earlier.
attributable to the succeeding accounting period subject to a minimum amount of reserves as required by
Corporate services Fee Section 64V (1) (ii) (b) of Insurance Act,1938.

ǩ&RUSRUDWH VHUYLFHVIHHLVUHFRJQL]HGRQEDVLVRIWKHVHUYLFHVUHQGHUHGDQGDVSHUWKHWHUPVRIWKHDJUHHPHQW
e. Interest/ Dividend Incom e
Other Incom es Interest income is recognized on an accrual basis. Accretion of discounts and amortization of premium relating
statutory section

ǩ $OORWKHULQFRPHVDUHUHFRJQL]HGRQDSURUDWDEDVLVEDVHGRQWKHFRPSOHWLRQRIZRUNDQGDVSHUWKHWHUPVRI to debt securities is recognized over holding /maturity period. Dividend income is recognized w hen the right to
the agreement. receive the dividend is established.

f. Accretion / Am ortization ofDiscounts/ Prem ium

Interest
Accretion of discounts and amortization of premium relating to debt securities is recognized over holding /
ǩ ,QWHUHVWLQFRPHLVUHFRJQL]HGRQDWLPHSURSRUWLRQEDVLVWDNLQJLQWRDFFRXQWWKHDPRXQWRXWVWDQGLQJDQGWKH
maturity period.
applicable Interest rate. Interest income is included under the head "other income" in the statement of profit
and loss.
Quintiles Phase One ClinicalTrials India Private Lim ited
All the above incomes are recognized net of Service tax or VAT w herever applicable
Income from fixed deposits is recognized on a time proportion basis taking into account the amount invested and
the rate of interest.
Sapien Bioscience Private Lim ted
business review

Revenue from operations is recognized based on services provided and billed as per the terms of the specific
Fam ily Health Plan (TPA) Lim ited
contract.
All the TPA streams of revenue are recognized on an accrual basis. Income from TPA operations is recognized
exclusive of applicable service tax.
Unique Hom e Health Care Lim ited
Income from medical services is recognized net of payment to M edical Staff.

Income from H ostel Receipts is recognized net of payment made tow ards H ostel Rent and M ess Expenses and is
accounted on an accrual basis.

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Indraprastha MedicalCorporation Lim ited H. INVESTMENTS

a. Revenue is recognized on an accrual basis. H ospital Revenue comprises of income from services rendered to
Investments are classified as current or long term in accordance w ith Accounting Standard 13 on ‘Accounting
the out-patients and in-patients. Revenue also includes value of services rendered pending billing in respect of
for Investments'
in-patients undergoing treatment as at the end of the year.
performance highlights

a. Long-term investments are stated at cost to the Company in accordance w ith Accounting Standard 13 on
b. U nder the "Served from India Scheme" introduced by Government of India,an exporter of service is entitled to
‘Accounting for Investments'. The Company provides for diminution in the value of Long-term investments
certain export benefits on foreign currency earned. The revenue in respect of export benefits is recognized on
other than those temporary in nature.
the basis of the foreign exchange earned at the rate at w hich the said entitlement accrues to the extent there
is no significant uncertainty as to the amount of consideration that w ould be derived and as to its ultimate b. Current investments are valued at low er of cost and fair value. Any reduction to carrying amount and any
collection. reversals of such reductions are charged or credited to the Statement of Profit and Loss.

c. On disposal of an investment, the difference betw een the carrying amount and net disposal proceeds is
F. Fixed Assets
charged or credited to the Statement of Profit and Loss.
a. All Fixed Assets are stated at their original cost of acquisition less accumulated depreciation and impairment
corporate review

losses are recognised w here necessary (Also refer N ote 3(N ) in the N otes forming part of Accounts). d. In case of foreign investments,
Additional cost relating to the acquisition and installation of fixed assets are capitalised. W herever VAT is
i. The cost is the rupee value of the foreign currency on the date of investment.
eligible for input availment,Fixed Assets are stated at cost of acquisition after deduction of input VAT.
ii. The face value of the foreign investments is show n at the face value reflected in the foreign currency of
b. Capital w ork – in – progress comprises of and amounts expended on development/acquisition of Fixed
that country.
Assets that are not yet ready for their intended use at the B alance Sheet Date. Expenditure during
construction period directly attributable to the projects under implementation is included under Capital
Apollo Munich Health Insurance Com pany Lim ited
w ork - in – progress, pending allocation to the assets. Advances paid to acquire fixed assets is included
under long term loans and advances as per revised Schedule VI. Investments are made in accordance w ith the Insurance Act,1938 and Insurance Regulatory & Development
Authority (Investment) Regulations, 2000, as amended from time to time. Investments are recorded at cost
c. Assets acquired under H ire Purchase agreements are capitalised to the extent of the principal value,w hile including acquisition charges (such as brokerage,transfer stamps) if any,and exclude interest paid on purchase.
finance charges are charged to revenue on accrual basis. Debt securities,including Government securities are considered as held to maturity and are stated at historical
statutory section

cost adjusted for amortization of premium and/or accretion of discount over the maturity period of securities on
d. Interest on borrow ings, for acquisition of fixed assets and exchange fluctuation arising out of foreign
a straight line basis.
borrow ings, hitherto w ritten off in this Statement of Profit & Loss, and the related revenue expenditure
incurred for the period prior to the commencement of operations for the expansion activities of the Company Listed and actively traded securities are measured at fair value as at the B alance Sheet date. For the purpose of
are capitalised. calculation of fair value,the low est value of the last quoted closing price of the stock exchanges is considered
w herever the securities are listed. U nrealized gain/losses due to change in fair value of listed securities is
G. Transactions in Foreign Currencies credited / debited to 'Fair Value Change Account',Investments in U nits of M utual funds are stated at fair value
a. M onetary items relating to foreign currency transactions remaining unsettled at the end of the year are being the closing N et Asset Value (N AV) at B alance Sheet date. U nrealized gains/losses are credited /debited to
translated at the exchange rates prevailing at the date of the B alance Sheet. The difference in translation the 'Fair Value Change Account'
of monetary items and the realised gains and losses on foreign exchange transactions are recognised in
the Statement of Profit and Loss in accordance w ith Accounting Standard 11 – ‘The Effects of Changes in Future Parking Private Lim ited
business review

Foreign Exchange Rates (Revised 2003)’,as notified under the Companies (Accounting Standards) Rules, Investments are classified as long-term and current investments. Long-term investments are show n at cost or
2006 (Also refer N ote 29 (d) in the N otes forming part of Accounts). w ritten dow n value (in case of other than temporary diminution).

b. Exchange differences arising on settlement or restatement of foreign currency denominated liabilities

I. Em ployee Benefits
borrow ed for the acquisition of Fixed Assets are capitalised based on Para 46A of Accounting Standard
Short-term employee benefits (benefits w hich are payable w ithin tw elve months after the end of the period in
11 – ‘The Effects of Changes in Foreign Exchange Rates (Revised 2003)’.
w hich the employees render service) are measured at cost.
c. The use of foreign currency forw ard contract are governed by the Company’s policies as approved by the
B oard of Directors. These hedging contracts are not meant for speculation.

annual report 2012–13

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

Long-term employee benefits (benefits w hich are payable after the end of tw elve months from the end of the Im perialHospital& Research Centre Lim ited
period in w hich employees render service), and post employment benefits (benefits w hich are payable after
completion of employment),are measured on a discounted basis by the Projected U nit Credit M ethod,on the a. Gratuity
basis of annual third party actuarial valuations.
performance highlights

The Company makes contribution tow ards a recognized gratuity fund. The provisions made are on the basis of
actuarial valuation. The follow ing are recognized in the financial statement.
Defined Contribution Plan
in million `
The Company makes contribution tow ards Provident Fund and Employees State Insurance under a defined
PV of past services benefit 7.53
contribution retirement benefit fund for qualifying employees.
Current Service Cost 2.92
The Provident Fund Plan is operated by the Regional Provident Fund Commissioner. U nder the scheme, the Closing balance of the Planned Asset 0.14
Company is required to contribute a specified percentage of payroll cost,as per the statute,to the retirement Interest on Planned Asset 0.01
benefit schemes to fund the benefits. Employees State Insurance dues are remitted to the Employees State
Insurance Corporation. b. ProvidentFund
corporate review

The Company is registered w ith the jurisdictional Provident Fund Commissioner for provident fund benefits and
Defined BenefitPlans is contributing to the fund as per prescribed law . The contributions to the Provident fund are accounted on an
For Defined B enefit Plan the cost of providing benefits is determined using the Projected U nit Credit M ethod accrual basis.
w ith actuarial valuation being carried out at each B alance Sheet date. Actuarial Gains or Losses are recognised
in full in the Statement of Profit and Loss for the period in w hich they occur. c. Leave encashm entbenefits
As per company policy,every employee w ho has w orked for a period of not less than 240 days during a calendar year
a. Gratuity shall be eligible for not less than 15 days privilege leave computed at the rate of one day for every 20 days of actual
The Company makes an annual contribution to the Employees’Group Gratuity-cum-Life Assurance Scheme of service. The provisions made in the books of account are on the basis of actuarial valuation.
the ICICI and Life Insurance Corporation of India,for funding defined benefit plan for qualifying employees w hich
is recognised as an expense. The Scheme provides for lump sum payment to vested employees at retirement, J. BORROWING COST
death w hile in employment,or on termination of employment of an amount equivalent to 15 days salary payable
B orrow ing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as
statutory section

for each completed year of service,or part thereof in excess of six months. Vesting occurs upon completion of
part of the cost of such asset. As per Accounting Standard 16 ‘B orrow ing costs’,a qualifying asset is one that
five years of service. The Company restricts the payment of gratuity to the employees below the rank of General
takes necessarily a substantial period of time to get ready for its intended use. All other borrow ing costs are
M anagers to the limits specified in the payment of Gratuity Act,1972. H ow ever the Company complies w ith the
expensed as and w hen incurred.
norms of Accounting Standard 15.

K. SEGMENT REPORTING
b. Leave Encashm entBenefits
The Company pays leave encashment benefits to employees as and w hen claimed,subject to the policies of the Identification ofSegm ents
Company. The Company provides leave benefits through an annual contribution to the fund managed by H DFC
The Company has complied w ith Accounting Standard 17- ‘Segment Reporting’w ith B usiness as the primary
Life.
segment.

The Company operates in a single geographical segment, w hich is India, and the products sold in the
business review

pharmacies,are regulated under the Drug Control Act,w hich applies uniformly all over the Country. The risk
and returns of the enterprise are very similar in different geographical areas w ithin the Country and hence there
is no reportable secondary segment as defined in Accounting Standard 17.

Segm entPolicies
The accounting policies adopted for segment reporting are in line w ith the accounting policies adopted in the
consolidated financial statements w ith the follow ing additional policies for Segment Reporting:

annual report 2012–13

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

a. Revenue and expenses have been identified to segments on the basis of their relationship to the operating O. Bad Debts Policy
activities of the segment. Revenue and expenses, w hich relate to the enterprise as a w hole and are not The B oard of Directors approves the B ad Debt Policy, on the recommendation of the Audit Committee, after
allocable to segments on a reasonable basis,have been included under “unallocable expenses”. the review of debtors every year. The standard policy for w rite off of bad debts is as given below subject to
performance highlights

b. Inter segment revenues and expenses are eliminated. management inputs on the collectability of the same

The Company has disclosed this Segment Reporting in Consolidated Financial Statements as per para (4) Period % of w rite off
of Accounting Standard – 17- ‘Segment Reporting’. 0-1 years 0%
1-2 years 25%

L. EARNINGS PER SHARE 2-3 years 50%

Over 3 years 100%
In determining the earnings per share, the Company considers the net profit after tax before extraordinary
item and after extraordinary items and the includes post - tax effect of any extraordinary items. The number of
shares used in computing the basic earnings per share is the w eighted average number of shares outstanding P. Miscellaneous Expenditure
during the period. For computing diluted earnings per share, potential equity shares are added to the above Preliminary,Public Issue,Rights Issue Expenses and Expenses on Private Placement of shares are amortised
corporate review

w eighted average number of shares. over 10 years.

M. TAXATION Im perialHospital& Research Centre Lim ited

Preliminary and pre-operative expenses are amortized over a period of 5 years.
a. Incom e Tax
Income tax is computed using the tax effect accounting method,w here taxes are accrued in the same period Sapien Bioscience Private Lim ited
as and w hen the related revenue and expense arise. A provision is made for Income Tax annually based on
Preliminary expenses are w ritten off in the year in w hich the company commences its commercial operations.
the tax liability computed after considering tax allow ances and exemptions.
b. Deferred Tax
Q. INTANGIBLE ASSETS
The differences that result betw een the profit calculated for income tax purposes and the profit as per the
Intangible assets are initially recognised at cost and amortised over the best estimates of their useful lives. Cost
financial statements are identified and thereafter deferred tax asset or deferred tax liability is recorded
statutory section

of softw are including directly attributable cost,if any,acquired for internal use,is allocated / amortised over a
for timing differences, namely the differences that originate in one accounting period and get reversed
period of 36 months to 120 months.
in another,based on the tax effect of the aggregate amount being considered. Deferred tax asset are not
recognized unless there is virtual certainty that sufficient future taxable income w ill be available against
w hich such deferred tax assets can be realized. The tax effect is calculated on the accumulated timing Apollo Health and Lifestyle Lim ited

differences at the beginning of the accounting year based on the prevailing enacted or substantively enacted Intangible assets are amortized on a straight line basis over the estimated useful economic life. The company
regulations. uses a rebuttable presumption that the useful life of an intangible asset w ill not exceed five years from the date
w hen the asset is available for use. If the persuasive evidence exists to the affect that useful life of an intangible
Im perialHospital& Research Centre Lim ited asset exceeds ten years,the company amortizes the intangible asset over the best estimate of its useful life.

The differences that result betw een the losses calculated for Income Tax purposes and the losses as per
the financial statements are identified and thereafter deferred tax asset or deferred tax liability is recorded Im perialHospital& Research Centre Lim ited
Cost of softw are including directly attributable cost,if any,acquired for internal use,is allocated /amortized over
business review

for timing differences. N et Deferred Tax is recognized as per Accounting Standard (AS) -22.
a period of 5 years.

N. Im pairm ent
Fam ily Health Plan Lim ited
The carrying amounts of assets are review ed at each B alance Sheet date to ascertain if there is any indication
of impairment based on internal/external factors. An asset is treated as impaired based on the cash generating Intangible assets are amortized on a straight line basis over the estimated useful economic life. The company

concept at the year end,w hen the carrying cost of assets exceeds its recoverable value,in terms of Para 5 to uses a rebuttable presumption that the useful life of an intangible asset w ill not exceed five years from the date

Para 13 of AS-28 ‘Impairment of Assets’as notified under the Companies (Accounting Standards) Rules,2006 w hen the asset is available for use. If the persuasive evidence exists to the affect that useful life of an intangible

for the purpose of arriving at impairment loss thereon,if any. An impairment loss is charged to the Statement of asset exceeds ten years,the company amortizes the intangible asset over the best estimate of its useful life.

Profit and Loss in the year in w hich an asset is identified as impaired. The impairment loss recognized in prior
accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

annual report 2012–13

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

Indraprasatha MedicalCorporation Lim ited iv. Claim s Incurred

ǩ ,QWDQJLEOHDVVHWVDUHDPRUWLVHGRQVWUDLJKWOLQHPHWKRGRYHUWKHHVWLPDWHGXVHIXOOLIHRIWKHDVVHW Estimated liability in respect of claims is provided for the intimations received upto the year end based on,
assessment made by Third Party Administrators (TPA),information provided by the insured and judgment
ǩ 7KHXVHIXOOLIHRILQWDQJLEOHDVVHWVIRUWKHSXUSRVHRIDPRUWLVDWLRQLVHVWLPDWHGWREHWKUHH\HDUV
based on the past experience. Claims are recorded in the revenue account,net of claims recoverable from
performance highlights

reinsurers / coinsurers to the extent there is a reasonable certainty of realization. These estimates are
R. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS progressively re-valued on availability of further information.
A provision is recognised w hen the Company has a present obligation as a result of a past event and it is
probable that an outflow of resources embodying economic benefits w ill be required to settle the obligation and v. Claim s incurred butnotreported (IBNR) and claim s incurred butnotenough reported(IBNER)
a reliable estimate can be made of the amount of the obligation. IB N R represents that amount of claims that may have been incurred prior to the end of the current
accounting period but have not been reported or claimed. The IB N R provision also includes provisons,if
Contingent liabilities are not provided for unless a reliable estimate of probable outflow to the Company exists as
any,required for claims incurred but not enough reported. IB N R and IB N ER liabilities are provided based
at the B alance Sheet date. Contingent assets are neither recognised nor disclosed in the financial statements.
on actuarial principles and certified by the Appointed Actuary. The methodology and assumptions on the
basis of w hich the liability has been determined are also certified by the Actuary to be appropriate, in
corporate review

S. LEASE accordance w ith guidelines and norms issued by the Actuarial Society of India and in concurrence w ith IRDA
Operating Lease regulations.

Leases w here the lessor effectively retains substantially all the risks and the benefits of ow nership of the
vi. Allocation ofInvestm entIncom e
leased assets are classified as operating leases. Operating lease payments are recognised as an expense in the
Statement of Profit and Loss on a straight – line basis over the lease term. Investment income is apportioned to the Statement of Profit & Loss and Revenue Account in the ratio of
average of shareholder's funds and policy holders’funds at the end of each month.

T. INSURANCE – RELATED POLICIES

vii. Fair Value Change Account
Apollo Munich Health Insurance Com pany Lim ited 'Fair Value Change Account' represents unrealized gains or losses due to change in fair value of traded
securities and mutual fund units outstanding at the close of the year. The balance in the account is
i. Reinsurance Prem ium
considered as a component of shareholder's funds and not available for distribution as dividend.
statutory section

Reinsurance Premium on ceding of risk is accounted in the year in w hich risk commences and over the
period of risk in accordance w ith the treaty arrangements w ith the reinsurers. U nearned premium on
viii. Profit/ Loss on Sale / Redem ption ofInvestm ents
reinsurance ceded is carried forw ard to the period of risk and is set off against related unearned premium.
Profit or loss on sale / redemption of investments, being the difference betw een sale consideration /
Premium on excess of loss reinsurance cover is accounted as per the reinsurance arrangements.
redemption value and the carrying value of investments is credited or charged to the Statement of Profit
and Loss. The profit / loss on sale of investments include accumulated changes in the fair value previously
ii. Acquisition CostofInsurance Contracts
recognized in 'Fair Value Change Account’in respect of a particular security.
Costs relating to acquisition of new insurance contracts and renew al of insurance contracts viz commission,
etc.,are expensed in the year in w hich they are incurred.
ix. Long Term / ShortTerm Investm ents
Investments maturing w ithin tw elve months from the B alance Sheet date and investments made w ith
iii. Prem ium Received in Advance
specific intention to be disposed off w ithin tw elve months from the date of acquisition are classified as short
Premium received in advance represents premium received in respect of those policies issued during the
business review

term investments. Other investments are classified as long term Investments.

year w here the risk commences subsequent to the B alance Sheet date.

annual report 2012–13

184 185
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

4. SHARE CAPITAL 5. RESERVES AND SURPLUS (` in million)

Particulars 31.03.2013 31.03.2012
(` in million)
a. CapitalReserves
Particulars Am ount Amount
Opening B alance 18.44 18.44
performance highlights

Authorised Closing Balance 18.44 18.44

200,000,000(2011-12 :200,000,000) Equity Shares of ` 5/- each 1,000.00 1,000.00 b. CapitalReserve on Consolidation
1,000,000(2011-12 :1,000,000) Preference Shares of ` 100/- each 100.00 100.00 Opening B alance 155.25 159.26
1,100.00 1,100.00 (-) W ritten B ack in Current Year - 4.02
Closing Balance 155.25 155.25
Issued
c. CapitalFund
139,658,177 ( 2011-12 :134,999,636) Equity Shares of ` 5/- each 698.29 675.00 Opening B alance 2.62 2.62
Subscribed and Paid up Closing Balance 2.62 2.62
139,125,159 (2011-12 :134,466,618 )Equity Shares of ` 5/- each fully 695.63 672.33 d. CapitalRedem ption Reserve
paid up Opening B alance 60.02 60.02
Closing Balance 60.02 60.02
corporate review

e. Securities Prem ium Account

31.03.2013 31.03.2012 Opening B alance 15,633.19 10,830.18
Equity Shares Equity Shares Add :Securities premium credited on Share issue 1,942.86 4,365.48
Particulars
Num ber Am ount Num ber Am ount Add :Share premium from Group Companies 23.50 437.53
(` in m illion) (` in m illion) Closing Balance 17,599.55 15,633.19
Shares outstanding at the beginning of the year 134,466,618 672.33 124,710,710 623.55 f. Debenture Redem ption Reserve
Opening B alance 170.00 100.00
Shares Issued to IFC on conversion of FCCB B onds * 1,381,619 6.91 - -
(+) Current Year Transfer 630.00 70.00
Shares Issued on Qualified Institutional Placement - - 6,666,666 33.33 Closing Balance 800.00 170.00
Scheme g. GeneralReserve
Shares Issued on Conversion of Share w arrants# 3,276,922 16.38 3,089,242 15.45 Opening B alance 5,249.03 3,749.03
Shares outstanding at the end of the year 139,125,159 695.63 134,466,618 672.33 (+) Current Year Transfer 1,000.00 1,500.00
statutory section

(+) Share of Associates 9.82 1,009.05

* Refer N ote 7(j) (+) Share of Profits / ( Loss ) Subsidiaries 166.19 167.54
# Refer N ote 6 (+) Profit from Joint Ventures 500.39 821.07
Closing Balance 6,925.43 7,246.69
SHAREHOLDERS HOLDING MORE THAN 5% OF TOTAL PAID UP CAPITAL h. Investm entAllow ance Reserve
Opening B alance 7.63 7.63
31.03.2013 31.03.2012
Closing B alance 7.63 7.63
Equity Shares Equity Shares Foreign Currency Translation Reserve 0.02 0.02
Nam e ofthe Shareholder
No. of % ofHolding No. of % ofHolding Fair value change account 0.04 0.04
Shares held Shares held i. Foreign Exchange fluctuation Reserve
PCR Investments Ltd 21,313,124 15.32 21,313,124 15.85 Opening B alance 0.19 0.19
Integrated (M auritius) H ealthcare H oldings Ltd 11,000,000 7.90 11,000,000 8.18 Closing Balance 0.19 0.19
business review

j. Surplus
Oppenheimer Developing M arkets Fund 10,507,859 7.55 - -
Opening balance 714.72 716.39
H STN Acquisition (FII) Limited 4,417,069 3.17 13,446,657 10.00
(-) Dividend paid on FCCB loan and Share W arrants* 21.66 -
CLSA (M auritius) Ltd - - 8,550,000 6.36 (+) N et Profit/(N et Loss) For the current year 3,035.08 2,193.46
(-) Proposed Dividend on Equity Shares for the year 765.19 537.87
a. The Parent Company had issued 9,000,000 Global Depository Receipts of ` 10/- (now 18,000,000 Global Depository (-) Dividend Distribution Tax on Proposed dividend on Equity 130.04 87.26
Receipts of ` 5/-) each w ith tw o w ay fungibility during the year 2005-06. Total GDR’s converted into underlying Shares
Equity Shares for the year ended on 31st M arch 2013 is 4,597,869(2011-12: 5,396,660) of ` 5/- each and total (-) Transfer to Reserves 1,000.00 1,500.00
equity shares converted back to GDR for the year ended 31st M arch 2013 is 10,949 (2011-12: 7,689,329) of (-) Transfer to Debenture Redemption Reserve 630.00 70.00
` 5/- each. Total GDR’s converted into equity shares upto 31st M arch 2013 is 24,931,729 (2011-12:20,333,860) of Closing Balance 1,202.91 714.72
` 5/- each. Total 26,772.10 24,008.81

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186 187
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

* Represents dividend paid on shares resulting from conversion of FCCB s loan granted by IFC and preferential equity Apollo Hospitals Enterprise Lim ited
w arrants issued to Dr. Prathap C Reddy,subsequent to the board meeting date,but prior to the date of closure of the
share transfer register viz 28th July 2012. a. 10.30% Non Convertible Debentures
The Company issued 500 N os. 10.30% N on Convertible Redeemable Debentures of ` 1 million each on 28th
performance highlights

December 2010 w ith an option to re-purchase/re-issue some or all of its debentures in the secondary market
6. The Parent Company issued and allotted 3,276,922 equity w arrants convertible into equity shares of nominal
or otherw ise,at any time prior to the specified date of redemption of 28th December 2020 and 500 N os. 10.30%
value of ` 5/- each at a premium of ` 467.46 per share on 5th February 2011 to Dr. Prathap C Reddy,one of the
N on-Convertible Redeemable Debentures of ` 1 million each on 22nd M arch 2011 w hich w ill be redeemed on
promoters of the Company on a preferential allotment basis. The issue price of ` 472.46 w as determined in
22nd M arch 2021 to Life Insurance Corporation of India.
accordance w ith the guidelines for preferential issues of the Securities and Exchange B oard of India (Issue of
Capital and Disclosure Requirements) Regulations 2009. On receipt of the full consideration from the promoter,
b. 10.15% Non Convertible Debentures
the Company alloted 3,276,922 equity shares of nominal values of ` 5/- each at a premium of ` 467.46 per share
on 25th July 2012 w hich is w ithin 18 months from the date of allotment of the w arrants. The Company issued 1,000 N os. 10.15% N on Convertible Redeemable Debentures of ` 1 million each on 22nd
M arch 2012 w ith an option to re-purchase/re-issue some or all of its debentures in the secondary market or
otherw ise,at any time prior to the specified date of redemption of 22nd M arch 2017. During the year debentures
(` in million)
corporate review

7. LONG TERM BORROWINGS amounting to ` 60,million w ere redeemed as per the terms and conditions of the issue on October 2012 and the
Particulars 31.03.2013 31.03.2012 residual debenture of ` 940 million is outstanding as of 31st M arch 2013.
Secured
(a) Non-convertible Debentures c. 9.80% Non Convertible Debentures
1000 (2011-12:1000) 10.30% Debentures of ` 1,000,000/- each 1,000.00 1,000.00 The Company had issued 1,250 N os. 9.80% N on Convertible Redeemable Debentures of ` 1 million each on
940 (2011-12:1000) 10.15% Debentures of ` 1,000,000/- each 940.00 1,000.00
11th July 2012 w ith an option to re-purchase/re-issue some or all of its debentures in the secondary market or
1250 (2011-12:N il) 9.80% Debentures of ` 1,000,000/- each 1,250.00 -
otherw ise,at any time prior to the specified date of redemption of 11th July 2017 to First Rand B ank Limited.
(b) Term loans
From Banks The Debentures stated (a),(b) & (c) are secured by w ay of Pari passu first charge on the Fixed Assets of the
(i) Jammu & Kashmir B ank - 223.19 Company,existing and future along w ith B ank and Institutions;such pari passu first charge ensuring at least a
(ii) Canara B ank - 336.00 cover of 1.25 times the value of outstanding principal amount of the loan.
(iii) Indian Overseas B ank - 204.08
statutory section

(iv) H DFC B ank 1,164.25 18.92 d. Canara Bank

(vi) Canara B ank - 290.80
The loan is secured by w ay of pari passu charge on the Fixed Assets of the Company existing and future along
(vii) Yes B ank 1,058.90 -
w ith Debenture Trustees and Institutions.
(viii) ICICI 200.00 -
From Other parties
e. HDFC Bank Lim ited
IFC Loan (External Commercial B orrow ings) 1,179.77 1,394.28
The Parent Company has availed Rupee Term Loan of ` 1300 million from H DFC B ank Limited, w hich is
IFC Loan (External Commercial B orrow ings) 1,636.80 -
H SB C (External Commercial B orrow ings) 1,355.00 - repayable in tw enty quarterly instalments commencing from September 2013. The loan is secured by first pari
H SB C ( B ills Payable ) 141.86 - pasu charge on all existing and future movable and immovable fixed assets of the Company alongw ith minimum
H ire Purchase Loans - 1.69 cover of 1.25 times the value of the outstanding principle amount of the loan.
Total 9,926.59 4,468.96
business review

Add :Share of Joint Ventures 648.27 673.99 f. InternationalFinance Corporation (ExternalCom m ercialBorrow ings)
Total 10,574.85 5,142.95 The Company w as sanctioned a sum of U S$ 35 million from International Finance Corporation,W ashington by
Unsecured w ay of External Commercial B orrow ings (ECB ). The Company has w ithdraw n the full amount of U S$ 35 million
(i) Deposits as of 31st M arch 2012 on the above loan. The ECB loan is secured by w ay of pari passu first ranking charge on
Fixed Deposits 180.83 147.94 the fixed assets ow ned by the company such pari passu charge ensuring atleast a cover of 1.25 times the value
(ii) Other loans and advances of the outstanding principal amount of the loan. The Loan is repayable in 15 equal semi-annual Installments
Foreign Currency Convertible B onds - 383.67 starting from 15th September, 2012. During the year tw o installments of U S$ 2,333,333 each w ere repaid on
Total 10,755.68 5,674.56 15th September 2012 and 15th M arch 2013.
Add :Share of Joint Ventures 33.32 69.20
Total 10,789.00 5,743.76

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financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

The Company entered into a Currency Cum Interest Rate Sw ap (CCIRS) w ith H DFC B ank in Indian Rupee hedging Alliance Medicorp (India) Lim ited
the loan for interest rate and foreign currency fluctuation risk. The derivative contract is secured by a second The N et Deferred Tax Asset,on account of Carry forw ard losses and U nabsorbed Depreciation is not recognized
charge on the immovable assets of the Company to the extent of ` 1,100 million. The tenure of this derivative in the books of accounts,on prudence.
contract matches w ith the tenure of the loan outstanding as of 31st M arch 2013.
performance highlights

Apollo Munich Health Insurance Com pany Lim ited

g. International Finance Corporation granted a further loan of U S$ 30 million during the year 2012-13. The
The Company has carried out its deferred tax computation in accordance w ith the mandatory Accounting
Company has draw n the full U S$ 30 million of the sanctioned amount and entered into a Currency Cum Interest
Standard,AS 22 - ‘Taxes on Income’issued by the Institute of Chartered Accountants of India. There has been a
Rate Sw ap (CCIRS) w ith H DFC B ank in Indian Rupee and hedged the loan for Interest and Foreign Currency
net deferred tax asset amounting to ` 1,032.82 million (Previous Year ` 949.02 million) on account of accumulated
Fluctuation risk. The ECB loan is secured by w ay of pari pasu first ranking charge on the fixed assets of the
losses. H ow ever,as a principle of prudence,the Company has not recognized deferred tax assets in the financial
Company.
statements for the year ended 31st M arch 2013.
h. H SB C granted a loan of U S$ 25 million during the year 2012-13. The Company has draw n the full U S$ 25 million (` in million)
9. OTHER LONG TERM LIABILITIES
of the sanctioned amount and entered into a Currency Cum Interest Rate Sw ap (CCIRS) w ith H SB C B ank in
Particulars 31.03.2013 31.03.2012
Indian Rupee and hedged the loan for Interest and Foreign Currency Fluctuation risk. The ECB loan is secured
(a) Others
corporate review

by w ay of pari passu first ranking charge on the fixed assets of the Company.
Rent Deposits 25.75 34.09
i. H SB C has also sanctioned a buyers line of credit of ` 141.87 million for imported equipment. The loan is Other Deposits 1.92 2.01
secured by first pari passu charge on entire existing and future movable fixed assets of the Company w ith Total 27.67 36.10
Add :Share of Joint Ventures 18.88 15.34
minimum cover of 1.25 times the value of the outstanding principle amount of the loan.
Total 46.55 51.44
j. Foreign Currency Convertible Bonds
The Company had issued Foreign Currency Convertible B onds (FCCB s) to International Finance Corporation 10. LONG TERM PROVISIONS (` in million)
(IFC),W ashington,to the value of U S$ 15 million on 28th January 2010. These bonds w ere convertible into Equity Particulars 31.03.2013 31.03.2012
Shares based on the rupee dollar parity exchange rate at any time before the end of the final repayment date. On (a) Provision for em ployee benefits
Gratuity 14.58 10.37
9th December 2010,the Company converted FCCB s equivalent to U S$ 7.5 million into 1,140,992 equity shares of
Leave Encashment 7.02 4.77
` 5/- each. The company converted the balance FCCB s equivalent to U S $ 7.5 million into 1,381,619 shares of
Total 21.60 15.14
statutory section

` 5/- each on 7th June 2012. W ith this the entire FCCB s equivalent to U S$ 15 million has been fully converted Add :Share of Joint Ventures 6.26 6.52
into equity shares. Total 27.86 21.66

8. DEFERRED TAX LIABILITIES 11. SHORT TERM BORROWINGS (` in million)

The deferred tax for the year recognized in the Statement of Profit and Loss of the group comprises: Particulars 31.03.2013 31.03.2012
Secured
(i) Loans repayable on dem and from banks
(` in million)
Andhra B ank - 0.67
Particulars 31.03.2013 31.03.2012 State B ank of Travancore 26.31 6.65
Deferred Tax Liability for the year 743.34 713.63 Canara B ank - 54.01
Deferred Tax Assets for the year 6.44 6.86 Indian Overseas B ank - 94.67
Yes B ank Ltd 118.06 -
business review

(` in million) Karur Vysya B ank - 7.00

Particulars 31.03.2013 31.03.2012 H DFC B ank Limited - 12.55
On account of Depreciation 1,139.32 1,021.47 AXIS B ank Limited 5.81 -
Unsecured
On account of Deferred Revenue 51.25 52.27
(i) Deposits
On account of unabsorbed losses and depreciation (251.45) (245.01)
Fixed Deposits 151.37 315.09
(Deferred Tax Asset)
(ii) Loans repayable on demand from banks
On account of 35 AD 1,355.13 722.18 H DFC Ltd - 1,000.00
Total 301.55 1,490.64
Add :Share of Joint Ventures 277.22 259.23
Total 578.77 1,749.87

annual report 2012–13

190 191
financial statements

! Contents !
 annual report 2012–13
(f)
(c)
(a)

(e)

(g)
(d)
(b)

(a)

(b)

192
deposit

Total

Total
Total
Total
Total
Total

B onus

Others
W ealth Tax
Rent Deposits
Other Deposits
Other payables
U npaid dividends

Inpatient Deposits

Outstanding Expenses
Tax Deducted at Source
Sundry Creditors Others
Income received in advance

For Dividend - Equity Shares

Add :Share of Joint Ventures

Add :Share of Joint Ventures

13. SHORT TERM PROVISIONS

Provision for em ployee benefits

12. OTHER CURRENT LIABILITIES

Current maturities of long-term debt

Particulars
Particulars

Retention M oney on Capital Contracts

Interest accrued and due on borrow ings
Interest accrued but not due on borrow ings

For Dividend Distribution Tax - Equity Shares

U npaid matured deposits and interest accrued thereon
|APOLLO H OSPITALS EN TERPRISE LIM ITED |

31.03.2013
31.03.2013

0.09
130.04
765.19
171.14
663.89
1.92
673.67
123.89
2.31
12.78
205.61
296.86
25.31
22.27
29.58
-
180.92
764.4

1,066.46
1,066.37
895.23
171.14
3,008.01
2,344.12
4.60

31.03.2012
31.03.2012

4.01
87.26
537.87
152.79
152.79
2.21
439.14
2.43
173.09
2.14
254.63
17.98
19.87
27.15
0.93
63.99
672.96

781.93
777.92
625.12
2,242.72
1,852.92
389.80
173.90
2.50

(` in million)
(` in million)

per the provisions of Section 205A and 205C of the Companies Act,1956 is ` 1.60 million (` 1.68 million) in aggregate
During the year,the amount transferred to Investors Education and Protection Fund of the Central Government as

w hich comprises of ` 1.59 million (` 1.54 million) as unpaid dividend and ` 0.01 million (` 0.13 million) as unpaid

!
Contents
!
14. TANGIBLE ASSETS (` in million)
Gross Block Accum ulated Depreciation NetBlock
Fixed Assets Depreciation
Balance as at Balance as at Balance as at Balance as at Balance as at Balance as at
Additions Deletions charge for Deletions Im pairm ents
April1,2012 March 31,2013 April1,2012 March 31,2013 March 31,2013 April1,2012
the year
Tangible Assets
Land 1,819.16 0.02 - 1,819.18 - - - - - 1,819.18 1,819.16
B uildings 5,342.95 630.17 1.71 5,971.41 468.8 85.76 0.79 - 553.77 5,417.64 4,874.15
Lease hold
741.03 1,601.47 123.14 2,219.36 162.12 110.50 9.96 - 262.66 1,956.70 578.91
Improvements
Plantand Equipm ent
M edical Equipment &
8,284.07 1,320.23 118.89 9,485.41 2,863.14 485.51 67.29 - 3,281.36 6,204.05 5,420.93
Surgical Instruments
Air Conditioning Plant
904.23 323.15 21.90 1,205.48 189.27 201.66 4.20 - 386.73 818.75 714.96
& Air Conditioners
Furniture and Fixtures 1,904.21 328.69 14.50 2,218.40 571.04 129.70 18.54 - 682.20 1,536.20 1,333.17
Vehicles 358.42 44.18 13.84 388.76 124.85 32.57 6.41 - 151.01 237.75 233.57
Office equipment 967.97 184.36 10.85 1,141.48 497.97 103.05 9.84 - 591.18 550.30 470.00
Others
Electrical Installations
1,234.34 156.93 47.26 1,344.01 380.36 45.55 9.07 - 416.84 927.17 853.98
& Generators
Fire fighting Equipment 69.45 7.13 - 76.58 7.47 0.82 - - 8.29 68.29 61.98
B oilers 2.90 - - 2.90 1.16 - - - 1.16 1.74 1.74
Kitchen Equipment 52.36 1.24 - 53.60 12.80 1.03 - - 13.83 39.77 39.56
Refrigerators 35.58 3.57 - 39.15 8.27 1.20 0.19 - 9.28 29.87 27.31
W ind Electric
26.85 - - 26.85 11.60 - - - 11.60 15.25 15.25
Generator
Total 21,743.52 4,601.14 352.09 25,992.57 5,298.85 1,197.35 126.29 - 6,369.91 19,622.66 16,444.67
Less Depreciation
- - - - 0.28 - - - 0.28 0.28 0.28
W ritten B ack
Total 21,743.52 4,601.14 352.09 25,992.57 5,298.57 1,197.35 126.29 - 6,369.63 19,622.94 16,444.95
Share of Joint Ventures 3,022.06 187.11 31.56 3,177.61 900.98 148.60 15.98 0.40 1,034.00 2,143.61 2,121.08
Total 24,765.58 4,788.25 383.65 29,170.18 6,199.55 1,345.95 142.27 0.40 7,403.63 21,766.55 18,566.03
Previous Year 19,574.22 5,386.86 195.50 24,765.58 5,095.70 1,145.30 79.91 38.46 6,199.55 18,566.03

193
financial statements business review statutory section corporate review performance highlights
 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

16. Capital W ork –in-Progress ` 4,033.93 million (` 2,092.69 million) comprises of amounts spent on assets under

1.78
construction and directly related pre-operative expenses. The amount of interest included in capital w ork in

10.06

41.35

142.86
196.05

185.99
progress is ` 377.39 million (` 250.41million*).

April1,2012
Balance as at

(` in million)
performance highlights

* Includes Interest on B orrow ings Capitalised for the year ended 31st M arch 2013 of ` 252 million
(` 183 million).

1.78
13.02

17.53
196.05

154.00
186.33

173.31

as at
2013

Balance
March 31,
17. NON CURRENT INVESTMENTS

NetBlock
3.03
(` in million)

96.76

25.82

129.67
158.52

132.70

2013
Particulars 31.03.2013 31.03.2012

March 31,
Balance as at
Trade Investm ents (Refer A below )

-
-

-
-
-
-
(a) Investment in Equity instruments 608.50 580.63

0.21
Total(A) 608.50 580.63
corporate review

Other Investm ents (Refer B below )

Im pairm ents
(a) Investment in Equity instruments 77.17 2,726.96
(b) Investments in preference shares 22.00 22.00

On
(c) Investments in debentures or bonds - 589.24

3.35
8.80
12.15

12.15

disposals
(d) Investments in Government or Trust securities 0.20 0.25

-
Total(B) 99.37 3,338.45

4.08
5.28
Grand Total(A + B) 707.87 3,919.08

47.66

64.55
73.91

68.63
Advance for Investment 385.35 160.57

for the year

Accum ulated Depreciation

Am ortization
Total 1,093.22 4,079.65

-
Add :Share of Joint Ventures 386.32 342.09

7.75
48.89

20.54

68.47
96.76

76.22
Total 1,479.54 4,421.74

as at
2012
April1,

Balance
statutory section

(` in million)
Particulars 31.03.2013 31.03.2012

1.78

20.56
38.84
292.81

283.67
344.85

306.01

as at
2013
Aggregate amount of quoted investments 515.85 491.45

Balance
March 31,
(M arket Value ` 666.28 million 2011-12:` 718.70 million)

.
-

-
Aggregate amount of unquoted investments 963.70 3,930.29

0.17
Total 1,479.54 4,421.74

29.10
29.27

29.10

Deletions
-

0.56
8.41

Gross Block
72.34
81.31

72.90
111.29

Additions
business review

1.78

49.10
30.60
181.52

211.33
292.81

262.21

April1,2012
Balance as at
Fixed Assets
Previous Year

Share of Joint

Computer
Trademark and
Goodw ill
Total

Total
Ventures

Softw are
concepts rights

15. INTANGIBLE ASSETS

annual report 2012–13

194 195
financial statements

! Contents !
 annual report 2012–13
196

A) Details ofTrade Investm ents (` in million)

Subsidiary / Whether
Associate / Face Value No. ofShares No. ofShares Quoted / Partly Paid / stated
Nam e ofthe Body Corporate Am ount Am ount
JV/ Controlled ` / Units / Units Unquoted Fully paid atCost
Entity / Others Yes/No
31.03.2013 31.03.2012 31.03.2013 31.03.2012
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Investm entin Equity Instrum ents
Indraprastha M edical Corporation Limited Associate 10 20,190,740 20,190,740 Quoted Fully Paid 513.20 488.80 Yes
(Goodw ill on acquisition = ` 160.21 million:
31.03.2012=` 160.21 million)
Stemcyte India Therapautics Private Associate 1 240,196 240,196 U nquoted Fully Paid 95.30 91.83 Yes
Limited (Goodw ill on acquisition = ` 69.38
|APOLLO H OSPITALS EN TERPRISE LIM ITED |

million:31.03.2012=` 69.38 million)

Total 608.50 580.63
!
Contents
!
B) Details ofOther Investm ents
Subsidiary / Whether
Associate / Face Value No. ofShares No. ofShares Quoted / Partly Paid / Am ount Am ount stated
Nam e ofthe Body Corporate
JV/ Controlled ` / Units / Units Unquoted Fully paid ` in m illion ` in m illion atCost
Entity / Others Yes/No
31.03.2013 31.03.2012 31.03.2013 31.03.2012
Investm entin Equity Instrum ents
Family H ealth Plan Limited Associate 10 490,000 490,000 U nquoted Fully Paid 72.79 42.75 Yes
(Capital Reserve on consolidation =
` 4.24 million:31.03.2012 = ` 4.24 million)
Apollo H ealth Street Limited (Goodw ill on Associate 10 - 11,181,360 U nquoted Fully Paid - 2,679.83 Yes
acquisition:31.03.2012=` 1,071.12 million)
Kurnool H ospitals Enterprises Limited Others 10 157,500 157,500 U nquoted Fully Paid 1.73 1.73 Yes
H ealth Super H iw ay Private Limited Others 10 200 200 U nquoted Fully Paid - - Yes
The Karur Vysya B ank Others 10 12,811 12,811 Quoted Fully Paid 2.49 2.49 Yes
Cholamandalam DB S Finance Ltd Others 10 1,000 1,000 Quoted Fully Paid 0.16 0.16 Yes
Sunrise M edicare Private Ltd Others - 78 78 U nquoted Fully Paid - - Yes
Investm ents in Preference Shares
H ealth Super H iw ay Private Limited Others 54.10 406,514 406,514 U nquoted Fully Paid 22.00 22.00
Investm ents in Debentures or Bonds
Optionally Redeem able Convertible
Debentures
Apollo H ealth Street Limited Associate 160 - 3,682,725 U nquoted Fully Paid - 589.24 Yes
Investm ents in Governm entor Trust
securities
N ational Savings Certificate Others - - U nquoted Fully Paid 0.20 0.25 Yes
Total 99.37 3,338.45
a. The Company has pledged its 20,775,197 (20,775,197) shares in Apollo Gleneagles H ospitals Limited as a security for the loan advanced by IDFC and H DFC
to Apollo Gleneagles H ospitals Limited.
b. N ational Saving Certificates show n under investments are pledged w ith the Chief Ration Officer,Government of Andhra Pradesh.

197
financial statements business review statutory section corporate review performance highlights
 annual report 2012–13
c.
a.

b.

(c)
(a)
(b)

198
Total
Total
Total

Total
Total
Other Advances
Capital Advances

Security Deposits

Interest Receivable
Advance Income Tax
Advance to Suppliers
Other Loans and Advances

Investments in Debentures
Particulars

U nsecured,considered good
U nsecured,considered good

Add :Share of Joint Ventures

Add :Share of Joint Ventures

Investments in M utual Funds
19. CURRENT INVESTMENTS

Investments in Equity Instruments

Particulars
Particulars

Aggregate amount of quoted investments

Aggregate amount of unquoted investments

18. LONG TERM LOANS AND ADVANCES

(M arket Value ` 3,678.72 million 2011-12:` 1,340.34 million)

-
1,020.16
0.05
|APOLLO H OSPITALS EN TERPRISE LIM ITED |

545.00
31.03.2013

195.47
1,565.21
1,017.55
693.99

3,472.22
3,276.75

31.03.2013
31.03.2013

3,787.59
206.92
3,580.67
3,787.59
20.46
3,621.25
135.88

3,767.13
10.00
85.66
511.29
761.73
16.03
31.03.2012

31.03.2012
31.03.2012

261.87
957.96
10.11
203.82

1,219.83
1,219.83
1,209.72
995.90
10.00
1,374.71
695.74
383.95

2,574.60
2,454.40
120.20
(` in million)

(` in million)
(` in million)

!
Contents
!
DETAILS OF CURRENT INVESTMENTS
Subsidiary No. of No. of Am ount Am ount
/ Associate Shares / Shares /
Face Value Partly ( ` in m illion) ( ` in m illion)
/JV/ Units Units Quoted / Basis of
Nam e ofthe Body Corporate Paid /
Controlled ` Unquoted Valuation
Fully paid
Entity / 31.03.2013 31.03.2012 31.03.2013 31.03.2012
Others
Investm ents in Equity
Instrum ents
B ritish American H ospitals Others 100M U R 928,720 1,393,079 U nquoted Fully Paid 135.88 203.82 Cost
Enterprises Limited
Investm ents in Debentures
IFCI Venture Capital funds Others 1,000,000 10 10 U nquoted Fully Paid 10.00 10.00 Cost
limited
Investm ents in MutualFunds
Reliance H orizon Fund - XX - Others 10 - 50,027,068 Quoted Fully paid - 500.27 Cost
Series 24-Grow th Plan
Reliance Quarterly Interval Others 10 - 25,166,512 Quoted Fully paid - 251.99 Cost
Fund - Series III-Institutional
Dividend plan
B irla Sun life Cash plus Others 100 - 1,194,121 Quoted Fully paid - 200.00 Cost
-Institutional Premium Grow th
Canara Robeco Indigo Quarterly Others 10 - 489,366 Quoted Fully paid - 5.00 Cost
Dividend Fund
ICICI Prudential Liquid Plan Others 10 8,677,204 - Quoted Fully paid 200.00 - Cost
Daily Dividend
Reliance Floating Rate Fund - Others 10 14,397,190 - Quoted Fully paid 250.00 - Cost
Short Term Plan Grow th Plan
Reliance Floating Rate Fund - Others 10 11,450,688 - Quoted Fully paid 200.00 - Cost
Short Term Plan Grow th Plan
Reliance Dynamic B ond Fund Others 10 17,435,790 - Quoted Fully paid 253.53 - Cost
Grow th Plan
Kotak B ond (Short term) Grow th Others 10 11,950,115 - Quoted Fully paid 250.00 - Cost
IDFC SSIF Short term Plan C Others 10 7,848,123 - Quoted Fully paid 100.00 - Cost
Grow th
Kotak B ond (Short term) Grow th Others 10 2,316,123 - Quoted Fully paid 50.00 - Cost
IDFC SSIF M edium term Plan A Others 10 10,203,665 - Quoted Fully paid 200.00 - Cost
Grow th
ICICI Prudential short term Others 10 2,139,907 - Quoted Fully paid 50.00 - Cost
regular Plan Grow th Option

199
financial statements business review statutory section corporate review performance highlights
 annual report 2012–13
Subsidiary No. of No. of Am ount Am ount
200

/ Associate Shares / Shares /

Face Value Partly ( ` in m illion) ( ` in m illion)
/JV/ Units Units Quoted / Basis of
Nam e ofthe Body Corporate Paid /
Controlled ` Unquoted Valuation
Fully paid
Entity / 31.03.2013 31.03.2012 31.03.2013 31.03.2012
Others
Canara Robeco Short Term Others 10 192,148 - Quoted Fully paid 2.50 - Cost
Fund - Regular Grow th
Reliance Short Term Fund - Others 10 4,681,714 - Quoted Fully paid 100.00 - Cost
Grow th Plan ( ST- GP)
Canara Robeco Short Term Others 10 188,206 - Quoted Fully paid 2.50 - Cost
Fund - Regular Grow th
Kotak B ond Scheme Plan A Others 10 5,903,031 - Quoted Fully paid 200.00 - Cost
Grow th
DW S Premier B ond Fund - Others 10 10,330,899 - Quoted Fully paid 200.00 - Cost
Regular Plan - Grow th
H DFC Income Fund - Grow th Others 10 7,413,063 - Quoted Fully paid 200.00 - Cost
Reliance Short Term Fund - Others 10 6,903,598 - Quoted Fully paid 150.00 - Cost
Grow th Plan
SB I Short Term Debt Fund - Others 10 14,922,589 - Quoted Fully paid 200.00 - Cost
Regular Plan - Grow th
Reliance Income Fund- Grow th Others 10 5,171,166 - Quoted Fully paid 200.00 - Cost
Plan
IDFC SSIF M edium Term Plan A Others 10 5,006,183 - Quoted Fully paid 100.00 - Cost
Grow th
|APOLLO H OSPITALS EN TERPRISE LIM ITED |

Kotak B ond Short Term Others 10 6,820,507 - Quoted Fully paid 150.00 - Cost
DW S Short M aturity Fund - Others 10 4,785,788 - Quoted Fully paid 100.00 - Cost
Regular Plan - Grow th
IDFC SSIF Investment Plan Others 10 7,068,212 - Quoted Fully paid 200.00 - Cost
Grow th - ( Regular Plan )
ICICI Predential Short Term Others 10 4,198,646 - Quoted Fully paid 100.00 - Cost
-Regular Plan - Grow th Plan
Pinebridge India Short Tern Others 10 100,630 - Quoted Fully paid 101.43 - Cost
Fund Standard M onthly Dividend
Reliance Income Fund Retail Others 10 30,231 30,231 Quoted Fully paid 0.70 0.70 Cost
Plan - Grow th Plan - Grow th
Option
AIG Short Term Fund Others 1,000 40,548 37,899 U nquoted Fully paid 40.59 37.94 Cost
Institutional W eekly Dividend
Kotak Flexi Debt Scheme Plan Others 10 1,386,366 - Quoted Fully paid 20.00 - Cost
A - Grow th
Total 3,621.25 995.90

!
Contents
!
i.

ii.
c.
a.

e.
d.
b.

Total
Total

group.
Total
Total

of the debtors.
20. INVENTORIES

U nsecured,considered good
U nsecured,considered good

Add :Share of Joint Ventures

M edicines (Valued at cost)

21. TRADE RECEIVABLES

U nsecured,considered doubtful

Less:Provision for doubtful debts

Add :Share of Joint Ventures
Lab M aterials (Valued at cost)
Stores and spares (Valued at cost)

the personal security of the debtors.

from the date they are due for paym ent
from the date they are due for paym ent
Particulars
Other Consumables (Valued at cost)
Surgical Instruments (Valued at cost)
Particulars

Trade receivables outstanding for a period less than six m onths

Trade receivables outstanding for a period exceeding six m onths

31.03.2013

31.03.2013
41.89
110.79
250.66
16.75
132.91
1,633.83

2,186.83
2,144.94

287.96
879.45
70.91
950.36
70.91
879.45
3,565.62
3,565.62

4,733.03
4,445.07
31.03.2012

31.03.2012
26.02
97.34
186.11
8.98
97.99
1,498.94

1,915.38
1,889.36

717.01
49.32

234.45
766.33
49.32
717.01
2,915.87
2,915.87

3,867.33
3,632.88
(` in million)

(` in million)

Confirmations of balances from Debtors,Creditors are yet to be received in a few cases though the group has

amounts of these advances and deposits are considered good for w hich the group holds no security other than
iii. Advances and deposits represent the advances recoverable in cash or in kind or for value to be realised. The

201
Sundry Debtors represent debt outstanding on sale of pharmaceutical products,hospital services and project
sent letters of confirmation to them. The balances adopted are as appearing in the books of accounts of the

consultancy fees and are considered good. The group holds no other securities other than the personal security
financial statements business review statutory section corporate review performance highlights
 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

22. CASH AND CASH EQUIVALENTS (` in million) 25. REVENUE FROM OPERATIONS (` in million)
Particulars 31.03.2013 31.03.2012
Particulars 31.03.2013 31.03.2012
Revenue from healthcare services 23,974.35 20,691.62
a. B alances w ith banks
performance highlights

Revenue from Pharmacy 11,016.95 8,605.80

Current Accounts 1,812.67 937.00
Revenue from other services 402.98 279.65
Deposit Accounts 659.03 1,027.43
Total 35,394.29 29,577.07
U npaid Dividend Accounts 22.27 19.87
Add:Share of Joint venture 2,292.77 1,898.19
M argin money Deposits 68.57 22.24
Total 37,687.06 31,475.26
Guarantees 149.75 25.60
2,712.29 2,032.14 (i) The hospital collections of the Company are net of discounts of ` 10.42 million (` 27.61million)
b. Cash on hand 125.80 78.90
Total 2,838.09 2,111.04
26. OTHER INCOME (` in million)
Add :Share of Joint Ventures 362.55 257.34
Particulars 31.03.2013 31.03.2012
Total 3,200.64 2,368.38
corporate review

Interest Income 178.61 132.16

a. The Company’s Fixed Deposit receipts amounting to ` 149.35 million (` 24.53 million) are under lien w ith the Dividend Income 57.16 100.79
bankers for obtaining B ank Guarantees and Letters of credit. N et gain/(loss) on sale of investments
Current investment 4.22 6.85
Long term investment* 107.88 -
23. SHORT TERM LOANS AND ADVANCES (` in million)
N et gain on foreign currency transactions and translation - 6.03
Particulars 31.03.2013 31.03.2012 Total 347.87 245.83
a. Loans and advances to related parties Add :Share of Joint Ventures 16.82 13.24
U nsecured,considered good 129.27 66.05 Total 364.69 259.07
b. Other Loans and Advances Apollo Hospitals Enterprise Lim ited
Advance to Suppliers 127.09 136.90
* For the year ended 31st M arch 2013, the profit on sale of investments in Apollo H ealth Street Limited (AH SL)
Other Advances 1,229.43 642.17
statutory section

amounting to ` 45.45 million is included.

Loans and advacne to employees 69.05 56.94
1,425.57 836.01
Total 1,554.84 902.06 Unique Hom e Health Care Lim ited
Add :Share of Joint Ventures 48.42 82.30 * For the year ended 31st M arch,2013,the profit on sale of investments in AH SL amounting to ` 17.50 million is
Total 1,603.26 984.36 included.

a. During the year the Foreign Exchange gain (the difference betw een the spot rates on the date of the transactions,

24. OTHER CURRENT ASSETS (` in million) and the actual rates at w hich the transactions w ere settled) is N il (2011-12: Foreign Exchange Gain ` 4.29

Particulars 31.03.2013 31.03.2012 million).

Prepaid Expenses 108.57 111.09 (` in million)

27. EMPLOYEE BENEFITS EXPENSE
Rent Receivables 3.92 3.84
business review

Particulars 31.03.2013 31.03.2012

Interest Receivables 30.75 100.68
Salaries and w ages 4,933.86 3,981.19
Franchise Fees Receivable 8.59 7.92
Contribution to provident and other funds 314.41 263.87
Total 151.83 223.53
Employee State Insurance 65.47 36.46
Add :Share of Joint Ventures 84.43 45.59
Staff w elfare expenses 296.48 234.08
Total 236.26 269.12
Staff Education & Training 14.67 14.87
B onus 173.87 152.80
Total 5,798.76 4,683.27
Add :Share of Joint Ventures 432.55 345.33
Total 6,231.31 5,028.60

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

The follow ing companies in the group have complied w ith Accounting Standard 15 ‘Employee benefit’ as notified (` in million)
APOLLO HOSPITALS ENTERPRISE LIMITED
under the Companies (Accounting Standards) Rules,2006.
Particulars as at 31st M arch 2013 as at 31st M arch 2012
ǩ$OOLDQFH 0HGLFRUS ,QGLD /LPLWHG
Gratuity Earned Total Gratuity Earned Total
performance highlights

ǩ6DPXGUD +HDOWKFDUH(QWHUSULVHVOLPLWHG
Leave Leave
ǩ$SROOR +HDOWKDQG/LIHVW\OH/LPLWHG
ǩ$SROOR /DYDVD+HDOWK&RUSRUDWLRQ/LPLWHG PresentValue ofObligation 245.90 112.47 358.37 187.59 98.05 285.64
beginning ofthe period
ǩ$SROOR *OHQHDJOHV+RVSLWDO/LPLWHG
Interest Cost 19.49 8.68 28.18 14.85 7.50 22.35
ǩ$SROOR *OHQHDJOHVPET – CT Private Limited
Current Service Cost 26.24 11.92 38.16 26.24 11.92 38.16
ǩ4XLQWLOHV 3KDVH2QH&OLQLFDO7ULDOV,QGLD3ULYDWH/LPLWHG
B enefit Paid (4.51) (7.84) (12.35) (3.93) (8.69) (12.62)
ǩ$SROOR +RVSLWDOV,QWHUQDWLRQDOOLPLWHG
Actuarial (gain) / Loss on (5.12) 13.82 8.19 21.15 3.69 24.84
ǩ$SROOR 0XQLFK+HDOWK,QVXUDQFH&RPSDQ\/LPLWHG
obligation
corporate review

ǩ)DPLO\ +HDOWK3ODQ 73$ /LPLWHG Present Value of Obligation end of 282.00 138.55 420.55 245.90 112.47 358.37
ǩ,QGUDSUDVWKD 0HGLFDO&RUSRUDWLRQ/LPLWHG the period
In consideration of Accounting Standard Interpretation (ASI) 15 “N otes to the Consolidated Financial Statements” Change in plan assets
information relating to the above given in the separate financial statements of the Parent Company or other Fair Value ofPlan Assets 190.01 102.27 292.28 173.55 75.15 248.70
companies in the Group is not disclosed. beginning ofthe period
Expected return on plan assets 17.46 7.28 24.74 14.54 7.10 21.64
(` in million) Contributions 56.00 10.20 66.20 20.00 20.00 40.00
as at 31st M arch 2013 as at 31st M arch 2012 B enefits paid (4.51) (7.84) (12.35) (3.93) (8.69) (12.62)
Particulars
Gratuity Earned Leave Gratuity Earned Leave Actuarial gain / (loss) (12.40) (32.24) (44.64) (14.15) 8.71 (5.44)
Assumptions
Fair Value of Plan Assets end of 246.56 79.67 326.63 190.01 102.27 292.28
Discount Rate 8.00% 8.00% 8.00% 8.00%
statutory section

the period
Rate of Increase in Salaries 6.00% 8.00% 6.00% 8.00%
Reconciliation ofpresentvalue of
M ortality pre- retirement LIC 1994-96
the obligation and the fair value of
U ltimate
the plan assets
Disability N il N il N il N il
Fair value of the defined benefit 282.00 138.55 420.55 245.90 112.47 358.37
Attrition 23.00% 23.00% 23.00% 23.00%
Estimated rate of return on plan assets 8.00% 8.00% 8.00% 8.00% Fair value of plan assets at the end (246.56) (79.67) (326.23) (190.01) (102.27) (292.28)
Investment details on plan assets 100% of the of the year
plan Assets Liability / (assets) 35.44 58.88 94.32 55.89 10.20 66.09
are invested U nrecognised past service cost - - - - - -
on debt Liability / (assets) recognised in 35.44 58.88 94.32 55.89 10.20 66.09
instruments
business review

the balance sheet

Gratuity & Leave Encashm entcost
for the period
Service Cost 26.24 11.92 38.16 26.24 11.92 38.16

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financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

Interest Cost 19.49 8.68 28.18 14.85 7.50 22.35 29. OTHER EXPENSES (` in million)
Expected return on plan assets (17.46) (7.28) (24.74) (14.54) (7.10) (21.64) Particulars 31.03.2013 31.03.2012

Actuarial (gain) / loss 7.28 45.55 52.83 35.30 (5.02) 30.28 Pow er and Fuel 642.20 493.72
performance highlights

H ouse Keeping Expenses 227.91 192.69

Past Service Cost - - - - - -
W ater Charges 57.10 55.01
N et gratuity cost 35.55 58.88 94.43 61.85 7.30 69.15
Rent 1,119.00 965.25
Investm entdetails ofplan assets
Repairs to B uildings 136.62 125.03
100% of the plan assets are
Repairs to M achinery 322.61 289.19
invested in debt instruments
Actual return on plan assets 5.06 (24.96) (19.90) 0.39 15.81 16.20 Repairs to Vehicles 47.25 35.63
Office M aintenance & Others 251.61 211.87

(` in million) Insurance 47.92 40.38

28. FINANCE COSTS
Rates and Taxes,excluding taxes on income 81.11 67.46
corporate review

Particulars 31.03.2013 31.03.2012

Interestexpense 784.91 675.52 Printing & Stationery 198.01 190.01
Other borrow ing costs Postage & Telegram 19.05 14.75
B ank Charges 108.63 83.35 Director Sitting Fees 1.62 1.87
B rokerage & Commission 12.68 2.10
Advertisement,Publicity & M arketing 832.69 601.81
Total 906.22 760.97
Travelling & Conveyance 322.38 260.40
Add :Share of Joint Ventures 126.28 130.44
Total 1,032.50 891.41 Subscriptions 6.48 9.04
Security Charges 101.51 82.32
Legal & Professional Fees 323.43 279.92
Continuing M edical Education & H ospitality Expenses 33.73 10.47
statutory section

H iring Charges 53.78 47.89

Seminar Expenses 8.41 6.23
Telephone Expenses 109.84 100.09
B ooks & Periodicals 9.66 9.27
Donations 23.32 24.99
B ad Debts W ritten off 130.00 136.63
Provision for B ad Debts 28.18 24.38
Royalty paid 1.30 1.42
Outsourcing Expenses 591.00 510.99
M iscellaneous expenses 84.80 72.80
business review

Loss on Sale of Asset 38.99 37.28

Exchange loss 1.41 -
Total 5,852.92 4,898.79
Add :Share of Joint Ventures 962.49 793.43
Total 6,815.41 5,692.22

a. The Electricity charges incurred in respect of the M ain H ospital is net of ` 53.23 million (` 7.27/- million) [units
qualified KW H – 10,040,020 (1,454,755)) being the rebate received from TN EB for W ind Electric Generators
ow ned & run by the Company.

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

b. Payment to Auditors as Statutory Auditors Fam ily Health Plan (TPA) Lim ited
(` in million) The Commissioner of Customs, Central Excise and Service Tax-H yderabad-II Commisionerate vide Adjudication
Particulars 31.03.2013 31.03.2012 Order N o.08/2008-Adjn-ST dated 24-03-2008 levied a penalty u/s. 76 of the Finance Act tow ards delayed remittance
performance highlights

Audit Fees* 12.90 19.73 of Service Tax payable (Amount of penalty not quantified). The Company has preferred Appeal against the above
Taxation M atters* 1.62 1.21 Order w ith The H on’ble Customs,Excise and Service Tax Appellate Tribunal (South Zonal B ench) – B angalore and

Company Law M atters* 0.83 0.91 got the Appeal admitted and also got the Stay Order from the H on’ble Court for pre-deposit of penalty. The matter
is sub-judice,aw aiting final hearing.
Expenses 0.43 0.44
The Company received a show cause notice from the Income Tax Department during the financial year 2009-10
*Inclusive of Service Tax @12.36%
tow ards payment of TDS on payments made to the hospitals on behalf of Insurance companies along w ith Interest
for a period of six preceding financial years based on the CB DT Circular N o.08 of N ovember 2009 and amount not
c. Directors travel included in travelling and conveyance amounts to ` 40.54 million (` 18.53 million). quantified.

d. During the year Foreign Exchange loss (the difference betw een the spot rates on the date of the transactions, The company had gone on an appeal against the show cause notice from the Income Tax Department and also CB DT
corporate review

and the actual rates at w hich the transactions w ere settled) is ` 1.41 million. (2011-12:N il) Circular N o.08 of N ovember 2009 in Chennai H igh Court for applicability of TDS on payments made to H ospitals as
reimbursement of expenses. The same is admitted and granted Stay of Operations of show cause notice and also
that of CB DT Circular.

30. CONTINGENT LIABILITIES (` in million)

Apollo Munich Health Insurance Com pany Lim ited (` in million)
Particulars 31.03.2013 31.03.2012
Contingent liabilities and commitments Particulars 31.03.2013 31.03.2012
(to the extent not provided for) Partly paid up Investments N il N il
(i) ContingentLiabilities U nderw riting commitments outstanding N il N il
(a) Claims against the company not acknow ledged as debt 294.54 500.49 Claims other than against policies,not acknow ledged as debts by the N il N il
(b) Guarantees company
statutory section

B ank Guarantees 384.73 167.38 Guarantees given by or on behalf of the company 3.78 3.59

Corporate Guarantees 35.00 242.50 Statutory demands/ liabilities in dispute,not provided for 7.62 4.26

(c) Other money for w hich the company is contingently liable Reinsurance obligations to the extent not provided for in accounts N il N il

Sales Tax 1.04 1.41 Others* 109.80 75.75

Customs Duty 99.70 99.70 *Represents amounts payable on cancellation of a service contract.
Income Tax 354.86 398.30
Letter of Credits 42.26 234.46 Indraprastha MedicalCorporation Lim ited
EPCG 1,330.24 1,528.86 In respect of other matters ` 55.69 million (` 55.69 million).
Redemption premium on FCCB - 11.28
business review

Service Tax 23.34 -

31. UTILISATION OF AMOUNTS FROM SECURITIES ISSUED
Value Added Tax 2.27 2.27
(` in million)
2,567.98 3,196.98
A Funds Received through PreferentialIssue 31.03.2013
(ii) Com m itm ents
Amount received from the Promoter tow ards allotment of shares during the year 1,161.16
(a) Estimated amount of contracts remaining to be executed on 10,757.41 12,482.66
TotalFunds Received 1,161.16
capital account and not provided for
B Particulars ofUtilisation
10,757.41 12,482.66
Capital Expenditure & W orking Capital 1,161.16
Total 13,325.39 15,679.64

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financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

32. EARNINGS PER EQUITY SHARE 10 PCR Investments Limited

Particulars 31.03.2013 31.03.2012 11 Indian H ospitals Corporation Limited
Profit before extraordinary items attributable to equity shareholders 2,980.72 2,193.45 12 Apollo Sindoori H otels Limited
performance highlights

(` in million) (A1) 13 PPN Pow er Generating Company Private Limited

W eighted Average Equity Shares outstanding during the year (N os) - 137,839,092 130,327,516 14 H ealth Super H iw ay Private Limited
(B 1) 15 Faber Sindoori M anagement Services Private Limited
B asic Earnings Per Share before extra-ordinary item - (A1/B 1) (`) 21.62 16.83
16 Apollo M umbai H ospital Limited
Diluted Earning before extraordinary items attributable to equity 2,980.72 2,198.15
17 Lifetime W ellness Rx International Limited
shareholders (` in million) (A2)
18 Apollo Clinical Excellence Solutions Limited
Foreign Currency Convertible B ond issued (C1) 1,381,619 1,268,343
19 PPN H olding Private Limited
Promoter Share W arrants(D1) 3,276,922 -
20 Preetha Investments Private Limited
W eighted Average Equity Shares outstanding for Diluted Earnings Per 139,125,159 134,872,781
21 PPN Pow er Generation (U nit II) Private Limited
Share. (N os) - (E1)
corporate review

22 TRAC India Private Limited

Diluted Earnings Per Share before extra-ordinary item - (A2/E1) (`) 21.42 16.30
23 PPN H oldings (Alfa) Private Limited
Profit after extraordinary items attributable to equity shareholders 3,043.67 2,193.45
24 Aircel Limited
(` in million) (A)
W eighted Average Equity Shares outstanding during the year (N os) - 137,839,092 130,327,516 25 Aircel Cellular Limited
(B ) 26 Dishnet W ireless Limited
B asic Earnings Per Share after extra-ordinary item - (A/B ) (`) 22.08 16.83 27 Apollo Infrastructure Project Finance Company Limited
Diluted Earnings after extraordinary items attributable to equity 3,043.67 2,198.15 28 Vasumathi Spinning M ills Limited Enterprises over w hich
shareholders (` in million) (A3) 29 Kalpatharu Infrastructure Development Company Private Limited Key M anagement Personnel
Foreign Currency Convertible B ond issued (C) 1,381,619 1,268,343 30 Sindya Pow er Generating Company Private Limited are able to exercise significant
Promoter Share W arrants(D) 3,276,922 - 31 Sindya H oldings Private Limited influence
statutory section

W eighted Average Equity Shares outstanding for Diluted Earnings Per 139,125,159 134,872,781 32 Sindya resources [Link]. Singapore
Share. (N os) - (E) 33 Garuda Energy Private Limited
Diluted Earnings Per Share after extra-ordinary item - (A3/E) 21.88 16.30 34 Deccan Digital N etw orks Private Limited
35 Kalpatharu Enterprises Private Limited
36 Sirkazhi Port Private Limited
33. RELATED PARTY DISCLOSURES 37 Sindya B uilders Private Limited
A. List of Related Parties w here control exists and other related parties w ith w hom the Company had transactions 38 Tharani Energy India Private Limited
and their relationships: 39 Apollo Energy Company Limited
40 H ealthnet Global Limited
Name of related parties Nature of relationship
41 Sindya Infrastructure Development Company Private Limited
business review

1 Family H ealth Plan Limited

42 Associated Electrical Agencies
2 Apollo H ealth Street Limited
Associates 43 P. Obul Reddy & Sons
3 Indraprastha M edical Corporation Limited
44 Apex builders
4 Stemcyte India Therapautics Private Limited
45 Apex Construction
5 Dr. Prathap C Reddy
46 Kei Energy Private Limited
6 Smt. Preetha Reddy
47 Kamineni B uilders Private Limited
7 Smt. Suneeta Reddy Key M anagement Personnel
48 Kei Vita Private Limited
8 Smt. Sangita Reddy
49 Kei Rajamahendri Resorts Private Limited
9 Smt. Shobana Kamineni

annual report 2012–13

210 211
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

50 KEI-RSOS Petroleum and Energy Private Limited 86 Quintiles M auritius H olding Inc Parent Company of Quintiles
51 KEI-RSOS Shipping Private Limited Phase One Clinical Trials India
52 Peninsular Tankers Private Limited Private Limited
performance highlights

53 Keimed Private Limited 87 Quintiles Transnational,U SA U ltimate Parent Company of

54 Spectra Clinical Laboratory Quintiles Phase One Clinical

Trials India Private Limited
55 Kamineni B uilders
88 Green Channel Travel Services (Div of IRM Limited) Significant Influence (Apollo
56 U niversal Quality Services LLC
H ospital International Limited)
57 Apollo H ealth Resources Limited
89 Cadila Pharmaceuticals Limited Significant Control (Apollo
58 AM G H ealthcare Destination Private Limited
H ospital International Limited)
59 Apex Agencies
90 Shri. Antony Jacob Key M anagement Personnel
60 Apex Agencies(H yd)
Enterprises over w hich of Apollo M unich H ealth
61 Apollo Educational Infrastructure Services Limited Insurance Company Limited
corporate review

Key M anagement Personnel

62 Apollo M ed Skills Limited 91 Online H ospital Equipment Services Private Limited Associates of Apollo H ealth
are able to exercise significant
63 Apollo Reach H ospitals Enterprises Limited and Lifestyle Limited
influence
64 Apollo Telehealth Services Private Limited 92 Quintiles Pacific Inc.U SA Subsidiaries of Quintiles
65 B ritish American H ospitals Enterprise Limited 93 Quintiles Limited.U K Phase One Clinical Trials India
66 Elixir Communities Private Limited 94 Quintiles East Asia Private Limited Singapore Private Limited
67 Indian H ospitel Private. Limited
68 Kumaranathu and Company
69 Kurnool H ospital Enterprise Limited
70 M atrix Agro Private Limited
71 TRAC Eco and Safari Park Private Limited
statutory section

72 Vaishnavi Constructions
73 M edversity Online Limited,H yderabad
74 Apollo Reach H ospital Enterprise Limited
75 Trivitron H ealthcare Private Limited Significant Control (Alliance
M edicorp (India) Limted)
76 H DFC Ergo General Insurance Company Limited
Associates of Apollo M unich
77 Indo German Chamber of Commerce
H ealth Insurance Company
78 Emed Life Insurance B roking Services Limited
Limited
79 M unchener Ruckversicherung Gesellschaft
80 Sahayadri City M anagement
business review

81 M y City Technology Limited Fellow Subsidiaries of Apollo

82 Full Spectrum Adventure Limited Lavasa H ealth Corporation
83 Lavasa Corporation Limited Limited
84 Reasonable H ousing Limited
85 H industan Construction Company U ltimate Parent Compnay
of Apollo Lavasa H ealth
Corporation Limited

annual report 2012–13

212 213
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

(` in million) (` in million)

Sl Name of related parties Nature of Transaction 31.03.2013 31.03.2012 Sl Name of related parties Nature of Transaction 31.03.201 3 31.03.2012
No No
performance highlights

a) Investment in Equity 4.90 4.90 a) Transactions during the year 29.89 11.62
13 P. Obul Reddy & Sons
b) Receivables as at year end 17.52 11.77 b) Receivables as at year end 0.75 0.01

c) Transactions during the period 21.42 5.43 a) Payables as at year end 16.57 43.29
Family H ealth Plan
1 d) Premium Income 3.48 8.79 14 Keimed Private Limited b) Purchases 3,197.84 3,201.27
Limited
e) Claim Payments 40.99 38.17 c) Pharmacy Income 1.32 0.26

f) TPA Fees 139.59 87.79 a) Rent received 0.94 0.90

M edvarsity Online
g) Payables as at year end 16.58 22.12 15 b) Receivables as at year end 2.98 -
Limited
a) Investment in Equity 393.72 393.72 c) Transactions during the year 0.03 0.05
Apollo H ealth Resources Receivables as at year end 9.88 11.75
corporate review

b) Receivables as at year end 392.41 397.74

16
Limited
Indraprastha M edical c) Dividend Received 32.46 30.89
2 a) Receivables as at year end 6.87 6.35
Corporation Limited d) Commission on Turnover 59.41 46.43
Apollo M umbai H ospital
17 b) Reimbursement of Expenses 15.39 12.03
e) License Fees 22.84 13.54 Limited
c) Pharmacy income 3.37 2.37
f) Pharmacy income 1,529.25 1,292.45
a) Payables as at year end 0.31 0.27
Stemcyte India Investment in Equity 80.00 80.00 18 Aircell Cellular Limited
3 Therapautics Private b) Transactions during the year 4.12 3.24
Limited a) Payables as at year end 0.49 0.06
19 Dishnet W ireless Limited
4 Dr. Prathap C Reddy Remuneration paid 156.30 171.60 b) Transactions during the year 2.16 0.58
5 Smt. Preetha Reddy Remuneration paid 52.50 68.64 Kurnool H ospitals Investment in Equity 1.73 1.73
20
statutory section

6 Smt. Suneeta Reddy Remuneration paid 52.50 50.20 Enterprise Limited

7 Smt. Sangita Reddy Remuneration paid 52.50 17.16 AM G H ealth Care Advance for Investment 12.33 12.33
21 Destination Private
8 Smt. Shobana Kamineni Remuneration paid 52.50 17.16
Limited
Apollo Sindoori H otels a) Payables as at year end 13.92 11.16
9 Future Parking Private a) Investment in Equity 24.01 24.01
Limited b) Reimbursement of Expenses 2.37 1.46 22
Limited b) Advance Given 0.49 0.49
a) Investment in Equity 2.01 2.01
H ealth Super H iw ay B ritish American Investment in Equity 135.88 203.82
10 b) Investment in Preference Shares 22.00 22.00
Private Limited 23 H ospitals Enterprises
c) Receivables as at year end 4.56 3.26
Limited
a) Payables as at year end 28.74 13.77
a) Expenses tow ards for services rendered 5.14 5.14
business review

b) Transactions during the year 242.94 157.38 H ealth N et Global Private

Faber Sindoori 24 b) Premium Income 0.11 0.01
c) Reimbursement of Expenses 1.18 0.90 Limited
11 M anagement Services c) Advance Given 1.00 1.00
d) H ousekeeping services availed 17.67 57.78
Private Limited a) Transactions during the period 1.57 2.57
e) Claim Payments 0.16 0.39 Cadila Pharmaceuticals
25 b) U nsecured Loan - 138.38
f) Premium Income 2.56 0.29 Limited
c) Pharmacy Purchases 5.04 3.78
a) Payables as at year end 1.09 2.62
Lifetime W ellness Rx a) Payables as on 31.03.2013 18.60 5.29
12 b) Transactions during the year 15.61 10.81 Quintiles Transnational,
International Limited 26 b) Computer Supplies and M aintanance 10.54 8.62
c) Expenses tow ards service rendered 5.23 5.42 U SA
c) Legal & Professional Fees 2.49 2.20

annual report 2012–13

214 215
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

(` in million) 35. IMPAIRMENT

Sl Name of related parties Nature of Transaction 31.03.201 3 31.03.2012
Apollo Hospitals Enterprise Lim ited
No
During the year 2002-03,on a review of fixed assets,certain selected medical equipments w ere identified and
performance highlights

a) Operating Income 0.91 3.79

impaired. For the current year,on a review as required by Accounting Standard 28 ‘Impairment of Assets’,the
b) Inter Corporate Deposits Received 57.89 29.25
management is of the opinion that no impairment loss or reversal of impairment loss is required,as conditions
Lavasa Corporation c) Inter Corporate Deposits Paid 6.82 - of impairment do not exist.
27
Limited d) Interest paid on Inter Corporate Deposit 17.41 9.02
36. In the process of acquiring Apollo Gleneagles H ospitals Limited (AGH L) in Kolkata,Apollo H ospitals Enterprise
e) Inter Corporate Deposit outstanding 128.67 77.61
Limited had initially invested ` 30 million [` 5 million tow ards equity and ` 25 million to discharge other
f) Payables as at year end - 17.95 liabilities of AGH L, erstw hile Duncan Gleneagles H ospital Limited (DGH L)] to acquire 50.26% holding in the
a) Premium Income 0.04 0.03 DGH L (subsequently reduced to 49% , now increased to 50% ). AGH L assigned an unsecured debt of ` 163.70
28 Shri. Antony Jacob
b) Expenses tow ards services rendered 18.09 13.20 million existing in its books to Apollo H ospitals Enterprise Limited,out of w hich ` 150 million has been received
a) Payables as on 31.03.2011 0.08 3.35 till FY 2012-13 and taken to income, leaving a balance unsecured debt of ` 13.70 million. As a measure of
corporate review

Emed Life Insurance

29 prudence,the balance amount is not recognized as an advance or investment in the books of Apollo H ospitals
B roking Services Limited b) Expenses for services rendered 7.50 10.25
Enterprise Limited currently and w ill be accounted for as and w hen the amount(s) are received.
Online H ospital Loans and Advance 0.52 0.52
30 Equipment Services
37. GENERAL INFORMATION
Private Limited
In case of other related parties,there are no transactions w ith the Company. The B oard M eetings of Stemcyte India Therapautics Private Limited and Quintiles Phase One Clinical Trials
India Private Limited for adoption of accounts for the year ended 31st M arch,2013 could not be held before the
date of the B oard M eeting of the parent company,Apollo H ospitals Enterprise Limited due to non-availability of
34. LEASES directors.

In respect of N on- cancellable Operating Leases Consequently,the accounts of these companies are technically considered as unaudited.

Lease payments recognized in the Statement of Profit and Loss is ` 1,119 million (` 965.24 million)
statutory section

a. Apollo Hospitals Enterprise Lim ited

(` in million)
On review of the operations of setting up the H ospital in N oida,the Company re-assigned the lease agreement
Particulars 31.03.2013 31.03.2012
betw een itself and the lessor to its associate, Indraprastha M edical Corporation Limited by extinguishing its
N ot later than one year 728.99 769.47 rights and privileges in the original lease deed dated 27th October 2001.
Later than one year and not later than five years 1,862.50 2,024.57
U nrealised amounts on project development and pre-operative project expenses incurred at B ilaspur H ospital
Later than five years 4,510.32 3,291.74 amounting to ` 56.62 million are included in advances and deposits account. The above expenses incurred on
the project w ill be amortised over the balance lease period of 7 years. The balance yet to be amortised as on
31.03.2013 is ` 22.03 million (` 25.17 million).
Lease agreements are renew able for further period or periods on terms and conditions mutually agreed betw een
the lessor and the Company.
business review

b. A.B. MedicalCentres Lim ited

Variations/Escalation clauses in lease rentals are made as per mutually agreed terms and conditions by the lessor As the Company’s main business is running of hospital the provisions regarding disclosure of information on
and the Company. Licensed Capacity,Installed Capacity,Production and Sales particulars are not applicable.

Apollo Gleneagles Hospitals Lim ited c. Apollo Munich Health Insurance Com pany Lim ited
The Company has certain cancellable operating lease arrangements for residential accommodation and use
i. Encum brances
of certain medical equipments w ith tenures extending upto one year. Terms of certain lease arrangements
include option for renew al on specified terms and conditions,and payment of security deposit etc. Expenditure The company has all the assets w ithin India. All the assets of the company are free from any encumbrances except
incurred on account of Operating lease rentals during the year and recognized in the Statement of Profit and deposits in banks amounting to ` 3.59 million (` 2.34 million). The deposits have been placed w ith banks for the
Loss amounts to ` 10.82 million (` 9.14 million). purposes of executing bank guarantees in favour of hospitals tow ards cash-less arrangements.

annual report 2012–13

216 217
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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

ii. Com m itm ents m ade and outstanding for: ix. All the investments held by the Company are performing assets.

(` in million) x. The Company does not have any investment property as at M arch 31st,2013.
Particulars 31.03.2013 31.03.2012
xi. The investments as at year-end have not been allocated to Policy H olders & Shareholders accounts since the
performance highlights

Loans N il N il same are not earmarked separately

Investments N il N il
xii. The historical cost of investments in mutual funds w hich have been valued on a fair value basis is ` 215.22
Fixed Assets 32.08 12.85
million (` 199.77 million).

iii. Claim s,less reinsurance paid to claim ants: xiii. Investm ents m ade pursuantto section 7 ofInsurance Act,1938, (` in million)
are as follow s:
Class ofBusiness In India Outside India Particulars 31.03.2013 31.03.2012
31.03.2013 31.03.2012 31.03.2013 31.03.2012
6.25% GOI CDSS 02-01-2018 75.87 75.00
M iscellaneous 2,596.45 1,630.94 1.63 6.37
6.01% GOI CDSS 25-03-2028 5.45 5.38
corporate review

6.17% GOI CDSS 12-06-2023 14.86 -

iv. Age-w ise breakup ofclaim s outstanding
7.95% GOI CDSS 28-08-2032 19.50 19.47
Class ofBusiness Outstanding for m ore than six m onths Outstanding for six m onths or less 8.20% GOI CDSS 15-02-2022 2.01 2.01
31.03.2013 31.03.2012 31.03.2013 31.03.2012 8.33% GOI CDSS 07-06-2036 1.00 1.00
M iscellaneous 14.93 9.18 229.41 144.75 118.68 102.86

(` in million) These investments are in the constituent subsidiary general ledger account w ith Axis B ank Limited.

Particulars 31.03.2013 31.03.2012

xiv. Expenses relating to outsourcing,business developm entand (` in million)
M iscellaneous N il N il
m arketing supportare given below :
Particulars 31.03.2013 31.03.2012
statutory section

vi. Prem ium less reinsurance w ritten during the year: Outsourcing Expenses 480.77 509.28
M arketing Support 98.42 173.93
Class ofBusiness Outstanding for m ore than six m onths Outstanding for six m onths or less
B usiness Promotion 220.07 158.58
31.03.2013 31.03.2012 31.03.2013 31.03.2012

M iscellaneous 5,261.76 3,984.90 N il N il xv. Sector Wise Business

N o premium income recognised on “varying risk pattern” basis. Disclosure of sector-w ise business based on gross direct w ritten premium (GW P) is as under:

Business 31.03.2013 31.03.2012

vii. Extentofrisk retained and reinsured Sector GWP No. ofLives %ofGWP GWP No. ofLives %ofGWP
Class ofBusiness Risk Retained Risk Retained (` in Million) (` in Million)
business review

31.03.2013 31.03.2012 31.03.2013 31.03.2012 Rural 536.04 696,423 8.65% 536.78 724,304 11.29%
Social 355.91 1,116,553 5.74% 44.84 64,128 0.94%
M iscellaneous 85% 84% 15% 16%
U rban 5307.92 383,249 85.61% 4174.78 1,015,272 87.77%

xvi. Disclosure ofFire and Marine Revenue accounts

viii. Value ofContracts in relation to Investm ents: (` in million)
Particulars 31.03.2013 31.03.2012 As the company operates in single insurance business class viz. M iscellaneous Insurance B usiness, the
Purchase w here deliveries are pending N il N il reporting requirements as prescribed by the IRDA w ith respect to presentation of Fire and M arine Insurance
Sales w here payments are overdue N il N il revenue accounts are not applicable.

annual report 2012–13

218 219
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

There are no dues outstanding for more than 45 days during the year w hich are payable to M icro,Small and xviii. Accounting Ratios are provided as under:
M edium Enterprises. This information pursuant to the provisions of M icro, Small and M edium Enterprises Perform ance Ratios 31.03.2013 31.03.2012
Development Act,2006 is determined to the extent such parties have been identified on the basis of information (in times) (in times)
available w ith the Company. Gross Premium Grow th Rate (Gross premium for the current year 1.30 1.68
performance highlights

divided by the gross premium for the previous year)

Gross Premium to Shareholders Funds Ratio (Gross premium for the 2.69 3.31
[Link] m ary ofFinancialStatem ents is provided as under: (` in million) current year divided by paid up)
Grow th Rate of Shareholders Funds (Shareholders'funds as at the 1.60 1.37
Particulars 31.03.2013 31.03.2012
current balance sheet date divided by shareholders'funds as at the
Operating Results: previous balance sheet date)
1 Gross Premium W ritten 6,200.45 4,758.51 N et Retention Ratio (N et premium divided by gross premium) 0.85 0.84
2 N et Earned Premium Income 4,421.30 3,008.24 N et Commission Ratio (Commission net of reinsurance for a class of 0.08 0.07
3 Income from Investments (net) 229.00 148.04 business divided by net premium)
Expenses of M anagement to Gross Direct Premium (Expenses of 0.31 0.37
corporate review

4 Other Income - -
management divided by the total gross)
5 Total Income 4,650.30 3,156.28 Combined Ratio (Gross Claims paid plus Expenses plus Gross 0.90 0.88
6 Commission (N et of Reinsurance) 422.91 281.34 Commission divided by Gross premium)
Technical Reserves to N et Premium Ratio (Reserve for unexpired 0.67 0.67
7 B rokerage 95.81 79.29
risks plus premium deficiency reserve plus reserve for outstanding
8 Operating Expenses 1,891.72 1,741.10
claims divided by net premium)
9 Claims Incurred 2,619.75 1,750.89 U nderw riting B alance Ratios (U nderw riting profit divided by net (0.05) (0.15)
10 Operating Profit/Loss (284.09) (617.05) premium for the respective class of business)
Operating Profit Ratio (U nderw riting profit plus investment income (0.02) (0.12)
11 Total Income under Shareholders Account 185.60 142.92
divided by net premium)
12 Profit /(Loss) before tax (98.49) (474.13) Liquid Assets to Liability Ratio (Liquid assets of the insurer divided by 0.46 0.35
13 Provision for Tax 149.49* (0.14) the policy holders'liabilities)
statutory section

14 Profit/(Loss) after tax 51.00 (474.27) N et Earnings Ratio (Profit after tax divided by net premium) 0.01 (0.12)

Miscellaneous Return on N et W orth (Profit after tax divided by net w orth) 0.02 (0.33)

15 Policy holders’Account: Reinsurance Ratio (Risk reinsured divided by gross premium) 0.15 0.16

Total Fund N ot applicable being Indraprastha MedicalCorporation Lim ited

Total Investments N on – Life Insurance Co. a. U nder the terms of the agreement betw een the Government of N CT of Delhi and the Company, the H ospital
Yield on investments project of the company has been put up on the land belonging to Government of N CT of Delhi. The Government
16 Shareholders’Account: of N CT of Delhi is committed to meet the expenditure to the extent of ` 154.78 million out of IM CL B uilding fund
account (funds earmarked for the period) together w ith the interest thereon for construction of definite and
Total Fund N ot applicable being designated buildings w hile the balance amount of the cost of the building w ill be borne by the Company. As at
Total Investments N on – Life Insurance Co. 31st M arch,2013,the aforesaid fund,together w ith interest thereon amounting to ` 192.36 million have been
Yield on investments utilized tow ards progress payments to contractors,advances to contractors,payments for materials,etc. The
business review

17 Paid U p Equity Capital 3,089.80 2,546.50 ow nership of the building betw een Government of N CT of Delhi and the company w ill be decided at a future date
keeping in view the lease agreement.
18 N et W orth 2,303.83 1,436.32
b. On a Public Interest Litigation (PIL) regarding free treatment in the hospital the H on’ble Delhi H igh Court vide
19 Total Assets 6,692.88 5,036.03
its order dated 22nd September,2009 has held that free treatment provided by the hospital as per the terms
20 Yield on total investments 9.13% 8.76% of the lease deed w ith the Government of N ational Capital Territory of Delhi shall be inclusive of medicines and
21 Earnings Per Share (` ) 0.18 (2.29) consumables. In response to the said order the company filed a Special Leave Petition in the H on’ble Supreme
22 B ook value per Share(` ) 7.46 5.64 Court for appropriate directions w ith a prayer to stay the judgement of the H on’ble Delhi H igh Court. The H on’ble

23 Total Dividend N il N il 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 H ospital is charging for medicines & medical consumables from patients
24 Dividend Per share N il N il
referred by the Govt. of Delhi for free treatment in the H ospital.

annual report 2012–13

220 221
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

38. CONSOLIDATED SEGMENT REPORTING b) Retail Pharmacy 3,147 2,716

(` in million) c) Others 10,559 6,463
Particulars 31.03.2013 31.03.2012 Total 39,773 33,186
1. Segm entRevenue 6. Segm entcapitalexpenditure incurred
performance highlights

( N et sales / Income from each Segment ) a) H ospitals 3,994 5,026

a) H ospitals 25,617 22,222 b) Retail Pharmacy 210 230
b) Retail Pharmacy 11,017 8,606 c) Others 666 240
c) Others 1,387 937 Total 4,870 5,496
Sub - Total 38,021 31,765 7. Segm entDepreciation
Less :Intersegment Revenue 32 31 a) H ospitals 1,254 1,119
N et sales / Income from operations 37,989 31,734 b) Retail Pharmacy 93 86
2. Segm entResults c) Others 76 34
( Profit / ( Loss ) before Tax and interest Total 1,423 1,239
from each segment )
a) H ospitals 4,987 4,187 39. CHANGE IN AUTHORISED SHARE CAPITAL
b) Retail Pharmacy 169 57
Western HospitalCorporation Private Lim ited
corporate review

c) Others 241 240

Sub - Total 5,397 4,484 The Shareholders of the Company passed a resolution at the Extraordinary General M eeting held on 17
Less :
December, 2008, for increasing the Authorized Share Capital of the Company from 50,000,000 Equity Shares
(i) Interest ( N et ) 1,033 891
(ii)Other un-allocable expenditure net of of ` 10/- each aggregating to ` 500 million to 100,000,000 Equity Shares of ` 10/- each aggregating to ` 1,000
un-allocable income 374 333 million. H ow ever,the Company has not filed the required forms for increasing the Authorized Share Capital w ith
Profit B efore Tax and Extraordinary item 3,990 3,260 the Registrar of Companies (ROC) as at 31 M arch,2013 along w ith the amended M emorandum of Association
Less:Extra Ordinary Item -
for giving effect to the aforesaid change,for approval/confirmation from the ROC. H ence,the Authorized Share
Profit B efore Tax 3,990 3,260
Less : Capital of the Company as at 31 M arch,2013 continues to be reflected as ` 500 million.
(i) Current tax 307 443
(ii) Tax for earlier years (net) - - 40. Figures of the current year and previous year have been show n in million.
(iii) Deferred tax liability 743 714
Add: 41. Figures in brackets relate to the figures for the previous year.
statutory section

Deferred Tax Asset - 7

ProfitAfter Tax before Minority Interest 2,940 2,110 42. Previous year figures have been regrouped and reclassified w herever necessary to conform to w ith current
Less :M ionority Interest (17) (13) years classification.
Add :Share of Associates'Profits 87 71
NetProfitRelating to the Group 3,044 2,194 43. W here disclosures have not been made by subsidiaries,associates or joint ventures in their independent N otes,
3. Segm entassets the figures relate to those of the Parent Company alone.
a) H ospitals 30,815 27,607
b) Retail Pharmacy 3,465 3,012 44. The consolidated figures for 31.03.2013 are not perfectly comparable as the Company has sold its entire interest
c) Others 11,476 7,185
Total 45,756 37,804 in Apollo H ealth Street Limited, including its holdings through U nique H ome H ealth Care Limited, a 100%
U nallocated Corporate Assets 930 672 subsidiary.
Goodw ill on consolidation 1,453 1,350
Deferred Tax Asset 252 245
Total Assets as per B alance Sheet 48,391 40,071
business review

4. Segm entliabilities As per our Report annexed For and on behalfofthe B oard ofD irectors
a) H ospitals 16,815 12,156 For M/s. S. Visw anathan Krishnan Akhilesw aran Dr. Prathap C Reddy
b) Retail Pharmacy 318 296 Chartered Accountants ChiefFinancial Officer Executive Chairm an
c) Others 947 504 Firm Registration N o.004770S
Total 18,080 12,956 V C Krishnan S M Krishnan Preetha Reddy
U nallocated Corporate Liabilities 124 1,074 Partner [Link] M anager - Finance & Com pany Secretary M anaging D irector
(M em bership N o.022167)
Shareholders Funds 27,468 25,020
17,B ishop W allers Avenue W est Suneeta Reddy
M inority Interest 173 125 M ylapore,Chennai - 600 004 Joint M anaging D irector
Deferred Tax Liability 2,546 1,796
TotalLiabilities as per Balance Sheet 48,391 40,071 Place :Chennai
5. Segm entcapitalem ployed D ate : 20th M ay 2013
a) H ospitals 26,067 24,007

annual report 2012–13

222 223
financial statements

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 |APOLLO H OSPITALS EN TERPRISE LIM ITED |

(` in million)
consolidatedcashflow statement
for the year ended 31stMarch 2013
Proceeds from long term borrow ings
Proceeds from short term borrow ings
5,666.78
267.95
1,306.92
212.97
Repayment of finance/lease liabilities (2,247.20) (2,965.80)
performance highlights

(` in million)
Particulars 31.03.2013 31.03.2012 Interest paid (1,032.50) (891.41)
A Cash Flow from operating activities Dividend paid (556.50) (467.67)
Netprofitbefore tax and extraordinary item s 3,990.78 3,259.73 Netcash from financing activities 3,729.93 1,354.02
Adjustment for: Netincrease in cash and cash equivalents 832.26 544.91
Depreciation 1,419.86 1,235.82 ( A+B +C)
Profit on sale of investments (96.09) (11.44) Cash and cash equivalents 2,368.38 1,823.47
Loss on sale of investments - 1.10 ( opening balance )
Loss on sale of assets 43.02 39.94 Cash and cash equivalents 3,200.64 2,368.38
Interest paid 1,032.50 891.41 ( Closing balance )
Foreign Echange loss/ ( Gain) 0.90 (7.71) Component of Cash and cash equivalents
corporate review

Extraordinary Item (62.95) 1) Cash B alances 132.98 84.40

M iscellaneous Expenses w ritten off 3.56 3.27 B alance w ith B anks
Interest received (193.43) (140.23) 1) Available w ith the company for day to day 3,045.39 2,264.11
Dividend received (57.15) (100.79) operations
Provision for bad debts 42.64 39.99 2) Amount available in unclaimed dividend and 22.27 19.87
B ad debts w ritten off 131.08 151.86 unclaimed deposit
2,263.94 2,103.22 TOTAL 3,200.64 2,368.38
Operating profitbefore w orking capitalchanges 6,254.72 5,362.95
Adjustment for:
Trade or other receivables (1,120.41) (1,166.70) Notes:
Inventories (240.48) (325.19) 1. Previous year figures have been regrouped w herever neccessary.
Trade payables 850.19 391.96 2. Figures in bracket represent outflow .
statutory section

Others (388.18) 227.03

(898.88) (872.90)
As per our Report annexed For and on behalfofthe B oard ofD irectors
Cash generated from operations 5,355.84 4,490.05
For M/s. S. Visw anathan Krishnan Akhilesw aran Dr. Prathap C Reddy
Foreign Echange loss (0.90) 7.71 Chartered Accountants ChiefFinancial Officer Executive Chairm an
Taxes paid (927.42) (627.22) Firm Registration N o.004770S
Cash flow before extraordinary items 4,427.52 3,870.54
V C Krishnan S M Krishnan Preetha Reddy
Netcash from operating activities 4,427.52 3,870.54 Partner [Link] M anager - Finance M anaging D irector
B Cash flow from Investing activities (M em bership N o.022167) & Com pany Secretary
17,B ishop W allers Avenue W est
Purchase of fixed assets (6,602.07) (3,945.00) M ylapore,Chennai - 600 004 Suneeta Reddy
Pre-operative expenses (0.04) (13.59) Place :Chennai Joint M anaging D irector
Purchase of investments (3,793.25) (7,795.28) D ate : 20th M ay 2013

Sale of investments 2,722.11 6,723.89

business review

Sale of fixed assets 2.03 78.42

Interest received 193.43 140.23
Dividend received 89.65 131.68
Extraordinary Item 62.95 -
Netcash used in Investing activities (7,325.19) (4,679.65)
C Cash flow from financing activities
Proceeds from issue of share premium 1,555.81 4,067.46
Proceeds from issue of share capital 73.76 91.55
Proceeds from advance against share capital 1.83 -

annual report 2012–13

224 225
financial statements

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 annual report 2012–13
Statem entpursuantto Section 212 ofthe Com panies Act,1956,relating to the Subsidiary Com panies
226

N ame of the Subsidiary Unique AB Samudra Apollo Apollo Imperial Apollo Apollo Alliance W estern Saipen ISIS M era Apollo Apollo Alliance
Company H ome M edical H ealth H ospital H ealth H ospi- N ellore Cosemtic M edicorp H ospitals BioSci- H ealth- H ealth- Kora- Clinics Dental
H ealth- Centres care En- (UK) Ltd and tals & H ospital Surgical (India) Corpora- ences Pvt care India care mangala Gujarat Care
care Limited terprises Lifestyle Research Limited Centres Limited tion Pvt Limited Private Private Cradle Limited Limited
Limited Limited Limited Centre (formerly Pvt Limited Limited Limited Limited
Ltd Pinakini Limited
H ospitals
Limited)
Financial Year of the subsidiary 31-M ar-13 31-M ar-13 31-M ar-13 31-M ar-13 31-M ar-13 31-M ar-13 31-M ar-13 31-M ar-13 31-M ar-13 31-M ar-13 31-M ar-13 31-M ar-13 31-M ar-13 31-M ar-13 31-M ar-13 31-M ar-13
ended on
Date from w hich it become subsidiary 5-Sep-98 19-Jul-01 29-N ov-05 8-Aug-05 12-Dec-02 18-Jan-06 18-Jun-08 7-Oct-09 31-M ar-11 15-Dec-11 10-Aug-12 30-M ar-09 11-Jul-09 8-Dec-11 11-June-12 31-M ar-11
Shares of subsidiary company held
on the above date and extent of
holding
i) Equity Shares 29,823,012 16,800 12,500,000 5,000 25,303,130 25,681,000 855,228 2,844,262 62,526,000 18,000,000 10,000 50,000 865,000 809,940 49,940 540,600
ii) Extent of Holding (% ) 100.00 100.00 100.00 100.00 100.00 85.76 74.94 69.40 51.00 100.00 70.00 100.00 100.00 100.00 100.00 51.00
N et aggregate amount of profits/
(losses) of the subsidiary for the
above financial year so far as they
concern members of Apollo Hospitals
Enterprise Limited
i) Dealt w ith NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
ii) N ot Dealt w ith (` in million) 17.88 4.11 5.88 £(0.007) (167.03) 2.30 5.60 0.93 (31.84) 7.81 - - - (34.00) - (24.33)
IN R (0.58)
N et aggregate amount of profits/
(losses) of the subsidiary for previous
financial years as far as it concerns
|APOLLO H OSPITALS EN TERPRISE LIM ITED |

members of Apollo Hospitals

Enterprise Limited
i) Dealt W ith NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
ii) N ot Dealt W ith (` in million) 1.01 4.44 13.08 £(0.006) (11.16) (30.79) 0.86 (3.24) (14.14) 2.87 NA 0.39 0.06 (1.43) NA (13.51)
IN R (0.47)
For and on behalfofthe B oard ofD irectors
Krishnan Akhilesw aran Dr. Prathap C Reddy
ChiefFinancial Officer Executive Chairm an
Place :Chennai S M Krishnan Preetha Reddy
D ate : 20th M ay 2013 [Link] M anager - Finance M anaging D irector
& Com pany Secretary
Suneeta Reddy
Joint M anaging D irector

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Contents
!
STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT,1956 (` in million)
Nam e ofthe Subsidiary Com pany Country of Reporting Capital Reserves Total Total Invest- Turnover/ Profit Provision ProfitAfter Proposed
Incorpora- Currency Assets Liabilities m ents Total Before for Taxation Dividend
tion Incom e Taxation Taxation
U nique H ome H ealthcare India IN R 298.23 34.56 335.58 335.58 311.13 40.05 20.58 2.70 17.88 -
Limited
AB M edical Centres Limited India IN R 16.80 22.54 39.41 39.41 - 6.40 5.52 1.41 4.11 -
Samudra H ealthcare Enterprises India IN R 125.00 108.52 359.98 359.98 - 282.89 8.45 2.57 5.88 -
Limited
Apollo H ospital (U K) Limited UK IN R 0.41 (3.34) 0.43 0.43 - - (0.58) - (0.58)
GB P 0.005 (0.04) 0.03 0.03 - - (0.007) - (0.007)
Apollo H ealth and Lifestyle India IN R 253.03 302.25 1,356.83 1,356.83 2.01 566.94 (161.56) 5.47 (167.03) -
Limited
Imperial H ospital and Research India IN R 299.45 83.36 2,396.85 2396.85 - 1,241.72 11.20 8.90 2.30 -
Centre Limited
Apollo N ellore H ospital Limited India IN R 11.41 (49.21) 23.59 23.59 - 7.42 7.37 1.77 5.60 -
(formerly Pinakini H ospitals Ltd.)
Apollo Cosmetic Surgical India IN R 40.98 (10.53) 32.99 32.99 - 28.09 0.93 - 0.93 -
Centres Pvt Limited
Alliance M edicorp (India) Limited India IN R 122.60 (39.42) 310.97 310.97 - 184.87 (29.36) 2.48 (31.84) -
W estern H osptials Corporation India IN R 180.00 (33.60) 146.75 146.75 40.59 10.80 10.33 2.52 7.81 -
Pvt Limited
Saipen B io Sciences Pvt Limited India IN R 5.14 - 5.76 5.76 - - - - -
ISIS H ealth Care India Private India IN R 0.50 (5.00) 33.00 33.00 - 18.00 0.11 (0.10) 0.21 -
Limited1
M era H ealth Care India Private India IN R 9.00 4.00 20.00 20.00 - 11.00 0.02 0.02 - -
Limited1
Apollo Koramangala Cradle India IN R 10.00 50.00 265.00 265.00 - 25.00 (29.00) 4.00 (34.00) -
Limited 1
Apollo Gujarat (Clinics Limited) 1 India IN R 0.50 0.41 0.09 0.09 - - - - -
Alliance Dental Care Limited 2 India IN R 25.65 87.79 223.25 223.25 156.59 (21.85) 2.48 (24.33) -
1. Subsidiary of Apollo H ealth and Lifestyle Limited 2. Subsidiary of Alliance M edicorp (India) Limited
N ote :In respect of Apollo H ospitals (U K) Limited,the assets and liabilities are translated at closing rate of the reported period and Income and Expenses are

227
translated at the average rate of the above reported period.
financial statements business review statutory section corporate review performance highlights
 NO TES

That is w hy it is im portant to inculcate in them the determ ination to stay [Link] considers it
their responsibility to inculcate a healthy balanced lifestyle in India’s billion plus people,75% of w ho
are less than 25 years of age and w ill one day be responsible for foisting India into the echelons
of the super pow ers. Through several w ell thought out initiatives,Apollo has run aw areness
program s,and organized health checks;it has extended financial support to underprivileged
children tow ards education and healthcare;and it has advocated the benefits of Staying Healthy
through a lifestyle punctuated by good eating habits,active exercise,and regular health checks.

For the kind attention of Shareholders

a. Shareholders / Proxy holders attending the meeting should bring the

attendance slip to the meeting and hand over the same at the entrance duly
signed.

b. Shareholders / Proxy holders attending the meeting are requested to bring

the copy of the Annual Report for the reference at the meeting.

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 designed by STAMPA, the brand communications company, chennai (info@[Link])

Apollo Hospitals Enterprise Lim ited

N o.19,B ishop G arden
R aja Annam alaipuram
Chennai 600 028
w w w .[Link]