Appollo Hospital -annual-report-year-2016

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Annual Report 2015–2016

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Valuing Life has a very special meaning for us at Apollo. The Value we place on the lives of our patients and their well being underscores the core of our strategy and actions our attitude and behavior. We believe that the human body is Priceless. And human life invaluable. This belief makes us extra sensitive and responsive to any patient that walks through our doors. We believe that every such patient has a non-negotiable right to a healthy life. And we believe we have a responsibility towards ensuring that. We strongly believe that prevention is better than cure but when something cannot be prevented we will do what it takes to cure it and we will not give up without a fight. This is our promise. We therefore strive every day to provide our patients the highest quality comprehensive healthcare—the most advanced treatments possible. We would not want to give them any less because we know they deserve the best. Our dedicated Centres of Excellence are unique. They offer several key specialties and super specialties which cater to all health needs. These state-of-the-art facilities are spread across our hospital locations. Putting patient wellness at the core of our operations we use expert unsurpassed diagnostics and robust treatment plans to give them the most appropriate care. Our quality standards are stringent with enhanced infection and safety protocols comparable to leading hospitals worldwide. We commit to providing this kind of care simply because we Value Life and because we want to put a smile on our patient’s face. To us life is Priceless. And we will do all that we can to protect and sustain it. No short-cuts. No compromises. But the best differentiated care a hospital can possibly give its valued patient. We are Apollo and we are proud that we Value Life. Content s Apollo Hospitals’ Mission is “to bring healthcare of international standards within the reach of every individual. We are committed to the achievement and maintenance of excellence in education research and healthcare for the benefit of humanity.” Business Responsibility Report is a separate enclosure and forms a part of this Annual Report. Note: Patient names have been withheld from all case studies and patient testimonials in this report in order to protect patient privacy. Chairman’s Message 2 Corporate Review 4 Valuing Trust 4 Valuing Clinical Superiority 6 Valuing Patient Experience 34 Valuing Patient Needs 38 Financial Operational Highlights 44 Statutory Section 48 Board Members 48 Corporate Information 49 Directors’ Report to the Shareholders 50 Corporate Governance Report 87 Business Responsibility Report Business Review 121 Management Discussion and Analysis 121 Clinical Governance 150 Financial Statements 155 Auditors’ Report on Standalone Financial Statements 155 Standalone Financial Statements 162 Statement pursuant to Section 129 of the Companies Act 2013 206 Auditors’ Report on Consolidated Financial Statements 208 Consolidated Financial Statements 214 The Attendance Slip/Proxy Form and AGM Notice are being sent by registered post/email separately. Contents

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Dear Shareholders The mission to nurture health and protect priceless lives was at the core of our genesis in 1983 it is the reason we exist today. I told you earlier that the human body is Priceless it is exactly for this reason that we at Apollo Hospitals Value Life. Patients from over 120 countries visit our Hospitals every year and our Group has touched over 45 million lives in the last 33 years. This incredible journey has taught us we should stop at nothing to do what we can to protect our patient’s health and well being. We believe that we have a responsibility to help them fight the pain of disease and to give them the most appropriate treatment to put them on the road to recovery. For over three decades we have been inspired by the dream of a healthy India. We have taken several transformative steps towards this goal. Our drive is powered by our deep respect for the power of good health and the miracle of the human body. Without good health we know that life stands on a brittle foundation. We therefore seek to educate people on the importance of Preventive Health to protect them from a potentially uncontrollable disease burden. Our commitment to health and our philosophy of valuing life—our defining legacy—is epitomized by our every day practices and performance. Our Hospitals have led landmark changes in the Indian Healthcare ecosystem through differentiated offerings be it initiatives which benchmark our clinical excellence our Preventive Health programme our clinical protocols and pathways with best in class outcomes or patient centric care giving. In the early eighties world-class medical treatment meant access to exorbitantly high priced healthcare in the western world. The wheel has turned a full circle today we offer healthcare in India that is as good as any in the world at a fraction of the price. Patients from western countries regularly come to our hospitals for complex medical procedures. At Apollo we have always believed the pursuit of excellence to be a relentless series of short races. To excel continuously means we have to win consistently. Today Apollo Hospitals is one of the largest and most trusted integrated healthcare providers in Asia. At the core of this achievement is our patient-centric approach and our strong commitment to the highest standards of ethics. Every initiative of the Apollo Group is measured by the value we are adding to patient experience. This focus inspired us to launch The Apollo Standards of Clinical Care TASCC which embodies the highest standards of clinical care and patient safety. Apollo Hospitals is a pioneer of Tender Loving Care—a revolution in caregiving to make our hospitals warm and friendly for the patients and their families. Globally the healthcare sector is getting disrupted through emerging digital trends and India is no exception to this. We are rolling out a well thought out strategy to leverage technology towards enhancing customer experience and loyalty analytics patient outreach and access tele-medicine and e-consults. Technology also affords us a new way of thinking— it brings with it the power of collaboration and enhances our efforts to fight the scourge of Non Communicable Diseases NCDs in India. One important initiative in this regard is the concept of Preventive Healthcare. Apollo pioneered the concept of a Preventive Health Check more than 3 decades ago. That experience helped us to launch the Apollo Personalised Health Check—a comprehensive personalized diagnostic solution based on the fact that each person’s health is as distinctive as his DNA. Our focus on integrated healthcare aims at providing patients a common easily accessible platform for all their healthcare needs. Our incisive thrust on super- specialization is to enable cutting-edge treatment for our patients. The Apollo Institutes of Robotic Surgery have successfully performed complex robotic surgeries on over 3000 adults and 80 children so far using the da Vinci Robotic system-the world’s most cutting edge solution in clinical robotics. Apollo Hospitals is now poised to be the first provider of the revolutionary Proton Beam Therapy in India. This milestone is one of the many ‘firsts’ that Apollo Hospitals has brought to the Indian healthcare ecosystem. I am happy to inform you that Apollo Hospitals Chennai performed an extraordinary medical feat when the team harvested 23 valuable organs from five brain dead donors in 2015. Thereafter five liver transplants one heart transplant and four kidney transplants were conducted at our hospitals and the rest of the organs were transported to needy recipients in other hospitals. The entire event was managed smoothly and efficiently. Building a healthy India is a long journey full of challenges at every step. At Apollo Hospitals our approach to healthcare is shaped by one powerful truth- Life is precious life is Priceless. The value we have for the miracle of human life inspires us to stretch our boundaries to the maximum possible. It provides us the moral compass to do things as best as we can in the best way possible for the patient. The mission to touch lives deserves nothing less. In line with our stated objective of enhancing healthcare access we have added eleven hospitals and created additional capacity of over 1700 beds in the last 36 months. We also acquired a running profitable 210 bed hospital in Guwahati during the year to consolidate our presence in the North Eastern region where we already have strong brand equity. Further in the coming three years we will be adding another 1000 beds across three new hospitals. During the recent unprecedented flooding in Chennai our doctors and support staff worked round the clock at all our hospitals to ensure that quality care was provided without interruption to all our patients. We have had another good financial year with consolidated annual revenues growing 18 to ` 60.86 billion and consolidated net profits of ` 3.3 billion. Consolidated EPS for the year stood at ` 23.79. We declared a 120 interim dividend of ` 6.00 per share for the fiscal year 2016. The Standalone Pharmacy business witnessed a 31 growth in revenues while the EBITDA margins have expanded to 3.6 in FY 16. We now have a total of 2326 stores and the Hetero acquisition is fully integrated. Our success on this front has been as a result of a combination of various factors including the maturity of the store network rationalization of loss making stores and a gradual increase in the proportion of private labels in the product mix. Before concluding I would like to welcome opportunities to collaborate with the Government on initiatives which would further the objectives of ensuring universal health access for India’s citizens. I wish you and your families all the very best of health and thank each and every stakeholder for their continued support belief and trust. With warm personal regards Dr. Prathap C Reddy Executive Chairman Apollo Hospitals Group Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 2 3

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Every time a patient voluntarily walks into a hospital or seeks medical counsel it demonstrates an extraordinary act of trust. We value the trust. It is for this reason that we take pride in bringing the best of caregiving to our patients be it in diagnostics clinical protocols pathways quality standards nursing care or infrastructure. We will go the extra mile to do what it takes to ensure their well being. At Apollo Hospitals the call for conscientious medicine is one that we respond to with unparalleled zeal. For every doctor and consultant associated with our organisation the responsibility and ownership they take for another person’s well-being is the difference between seeing medicine as a profession and a calling. Every day our eight thousand-strong battalion of clinicians doctors surgeons and medical staff are kept on their toes providing every patient with the luxury of medical experience and expertise and the confidence of a long history of service. For many a generation Apollo Hospitals represents a one-stop shop for all medical needs. We are the community’s family doctors with access to international resources and technology. To provide each patient with the best and treat them as one of our own Apollo Hospitals has also gone beyond the call of clinical expertise to provide the complete gamut of healthcare services including specialised nursing physiotherapy rehabilitation and dietics. For every patient walking through the doors of an Apollo Hospital we endeavour to provide the perfect balance between historic success and present expertise going the extra mile to ensure them that they are in safe hands. It is this balance that resonates loud and clear in the stories that have emerged from across the board at Apollo Hospitals in FY16. While one team of doctors worked for ninety-six hours through the torrential December floods in Chennai to successfully deliver seventeen babies another performed for the first time in Asia a complex en- bloc combined heart and liver transplant considered technically demanding and physically strenuous. A boy from Delhi received a bone marrow transplant and a man from Jharkhand had his shattered pelvic bone restructured in just a day. As a nod of acceptance of medical expertise Indian Institute of Technology Bangalore announced a collaboration with Apollo Hospitals in the city to conduct a year-long certificate program in healthcare management. Not the least of recent successes Apollo Hospitals was nominated along with AIIMS to connect with doctors in Bishkek Kyrgyzstan to explore teleconsultation opportunities as a part of the Central Asian E-network which looks to channel India’s IT expertise towards greater global healthcare provision. It is undoubtedly evident therefore that every consultation procedure and interaction with a patient at Apollo Hospitals is the cumulative result of years of experience a rich history of excellence a dynamic set of specialists and the value the organisation places on a person’s life. Apollo Hospitals is firmly rooted with one step in the past taking strength from a deep heritage and position of trust and the other in the innovations of the present learning to grow and adapt to the changing face of patient needs today. For the patient there is no better place to be than in the shadows of such giant strides. 69 Hospitals Over 9500 Beds Over 7000 Clinicians Over 55 Specialties Trust of 45 million patients built over 33 years of caregiving JCI 6 NABH 14 15+ million Preventive Health Checks Patients from 120+ Countries 60000 Dedicated Caregivers Accre ditations Accreditations is a validation of the quality standards of clinical protocols and practices. Its a seal of approval given by private independent groups. In our commitment to meet the best international and national standards we seek accreditation wherever we can. The Week-Nielsen Best Hospitals Survey 2015 ranks Apollo Hospitals Chennai as the Best Multi-Specialty Private Hospital in India ê Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 4 5

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Any organisation’s commitment to excellence is best judged by a close look at its internal policies procedures and protocols and at Apollo Hospitals what happens behind the scenes forms the backbone of the complex machinery that makes up the organisation. Committed to providing the best care to all patients through every step of the healthcare experience the company has drawn up a plethora of checks and balances to ensure clinical excellence and utmost accountability. It comes as no surprise that Apollo Hospitals was the first corporate hospital group to start benchmarking and monitoring clinical outcomes as early as 2005. All branches of Apollo Hospitals fall strictly under the aegis of The Apollo Standards of Clinical Care TASCC comprising of six independent checking mechanisms that dictate and monitor a profusion of safety procedures and standardisation needs. The Apollo Clinical Excellence I and II incorporate various quality parameters to monitor clinical outcomes including complication rates mortality rates and one-year survival rates. The Apollo Mortality Review aims to prevent recurrence of triggers and is reviewed through a peer-review checklist. The Safe Surgery and ICU checklists ensure patient safety and deter omissions and errors of memory in high pressure situations. The Apollo Quality Plan spans parameters including clinical handovers international patient safety goals and surgical care improvement. The Apollo Incident Reporting System helps track and follow-up factors that affect health of patients families as well as staff. Finally the Apollo Critical Policies Plans and Procedures is a set of twenty-five protocols to improve quality care and ensure patient safety. While patients often never come face-to- face with the specifics of most of these policies and procedures their impact is unquestionable. Having such a rigid means of ensuring checks and balances leads to a culture of safety that permeates the entire corporate structure promoting an ecosystem conducive to innovation Exc E ll E n c E . Emp at hy . Exp ert is e. The Apollo Standards of Clinical Care TASCC embodies the highest standards which Apollo aims to establish for all its hospitals. The average scores of TASCC which include Apollo Clinical Excellence dashboards ACE 1 and ACE 2 Apollo Quality Program Apollo Mortality Review Apollo In- cident Reporting System and Apollo Critical Policies Plans and Procedures are on an upward trajectory indicating increasing standardisation of processes and relentless pursuit of excellence across the Apollo Group Hospitals. ACE25 was renamed and upgraded to ACE 1 during the course of the continuous improvement journey. T A S C C Fifty-five specialties cross-pollination of ideas state-of-the-art technology and an organisational structure conducive to collaboration —Apollo Hospitals provides the perfect setting to the harmony of experience with innovation. Coupled with the unparalleled commitment to patient safety and safe outcomes the healthcare experience at Apollo Hospitals consistently echoes our fundamental belief that our body is priceless and life invaluable. Here patients have access to the best minds enviable confidence and superlative resources forever positioning them at the cutting-edge of medicine with experience providing the safety net and innovation pushing the boundaries. At Apollo Hospitals we strive to equip ourselves our knowledge bases our labs and our clinics to provide only the very best to every patient walking through our doors. ClINICAl ExCEllENCE Our Proudest legacy 3300000+ Outpatients FY 16 370000+ Admissions FY 16 Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 6 7

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possible treatment. The group publishes ‘New in Medicine’ a periodical dedicated to the latest in the areas of drugs clinical research medical devices and treatment guidelines and the Clinical Innovation Report. An annual awards function felicitates innovation and quality internally across the Apollo Hospitals family. Over the year 2015 alone the organisation has showcased its clinical excellence in multiple cases from around the country the most interesting of which was the one-year- old Kenyan child who underwent a successful liver transplant in Delhi. The Apollo Hospitals Group was the first corporate hospital group in India to start benchmarking and monitoring clinical outcomes in 2005. The Apollo Hospitals Group was also the first corporate hospital group to start publishing data pertaining to clinical performance in 2009 in the annual Apollo Excellence Report. ACE25 comprising of 25 indicators benchmarked against the best-published outcomes in various specialties is a clinical balanced scorecard focusing on clinical outcomes incorporating parameters which are mission critical for the clinical milieu of our organisation. This balanced scorecard focuses on providing evidence-based quality care and a safe environment to our patients. It has in addition strengthened the functional efficiency of our hospitals stimulating quality improvement while reducing variations. ACE25 incorporates outcome measures involving complication rates mortality rates one year survival rates and average length of stay after major procedures like liver and renal transplant CABG TKR THR endoscopy large bowel resection and MRM covering all major specialties. Important outcome measures Indicator Benchmark Benchmarked against CABG mortality rate 0.60 A Leading US Hospital Complication rate post coronary intervention 2 A Leading US Hospital ALOS post angioplasty 2.5 US National Average ALOS post total hip replacement surgery 5.2 days Agency for Healthcare Research Quality US ALOS post total knee replacement surgery 4 days Agency for Healthcare Research Quality US Complication rate total knee replacement surgery 0.83 A Leading US Hospital Door to CT or MRI time in stroke in ER 60 minutes Internal Apollo Catheter related blood stream infection CR – BSI 1 National Healthcare Safety Network Ventilator Associated Pneumonia VAP 0.9 National Healthcare Safety Network Catheter related urinary tract infection CR – UTI 2 National Healthcare Safety Network collaborative learning and the augmentation of knowledge. This was perhaps best showcased in a historical event in Chennai where twenty-three different organs were harvested from five different patients on a single evening soon followed by ten different transplantation procedures the same day. Such complex simultaneous procedures speak volumes of the coordination and control that extends between and amongst teams at the hospital. At Apollo Hospitals strict safety requirements have enabled an atmosphere of co-sharing expertise allowing people to grow and support each other. It is this growth support and excellence that has led to the immense confidence that is often associated with the Apollo name. For patients the group promises not merely rigorous safety checks and evidence-based quality care but an environment that is favourable to collaboration and has resulted in many medical watershed moments. Just in the area of transplantation Apollo Hospitals can boast of multiple firsts including the first paediatric liver transplant adult cadaveric transplant liver kidney transplant and simultaneous liver-kidney-pancreas transplant. Such clinical expertise is best portrayed in the numerous Centres of Excellence hosted across the hospitals in specialties including orthopaedics nephrology and urology cardiology bariatric surgery cancer/ oncology transplants emergency care and preventive health care. The testimonials for the Oncology Centre for Excellence span far and wide ranging from Australia Bangladesh and Oman to Uganda Tanzania and Kenya. At the Cardiology Centre over 99.6 of all cardiac bypass surgeries are beating-heart procedures ensuring quicker and easier post-operative recovery. The Bariatric Surgery Centre is no different with accolades pouring in from far and wide. Internally as well there is a significant drive towards pushing boundaries calling upon doctors and consultants to innovate with a view to rendering the patient the best “I am a 65-year-old Scottish gentleman with morbid obesity and life threating co-morbidities like hypertension diabetes and high cholesterol and was on medication for the same for six years. I also used C-PAP machines for ten years to combat my sleep apnoea. When I wanted to travel to Chennai I went on Google search and found that Apollo Hospitals was the best tertiary care hospital in the region. I found out about Dr. Rajkumar Palaniappan and learnt that the Apollo Bariatric Institute had introduced Robotic surgery in India. My surgery happened to be the first Robotic Gastric bypass in India and am so happy that I could get it done under one of the most well equipped tertiary care set-ups. One year since my surgery I can’t believe I lost 66 kgs and am now not on any support for my C-PAP no medication for diabetes hypertension and high cholesterol” Patient Testimonial Name protected to ensure privacy Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 8 9

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Benefits of QRT In an effort to ensure patient safety and privacy in the diagnostic lab we have developed barcode labelling for patient samples. This closes the loop on our commitment to ensure utmost safety for our patients data samples and test results. The paperless barcode system enables efficient handling of lab samples with near zero manual intervention and decreases turn around time. Ensuring patient safety in the lab through the use of barcodes 120 mins 90 mins Codes Management TAT 30 mins 10 mins Staff Response TAT 100 VOC 40 Emergency ICU admissions from Ward by 25 Non-ICU arrests Sedation and anaesthesia are commonly viewed as a continuum from minimal sedation to full anaesthesia. Procedural sedation is often performed in many areas of the hospital outside of the operating theatre. During sedation a patient’s protective airway reflexes are at risk. Sedation and anaesthesia use are complex processes and must be integrated into patient care planning they require comprehensive patient assessment continued patient monitoring and objective recovery criteria. The process has to be standardised across the hospital. Committed to continuous improvement an initiative was rolled in Kolkata to ensure zero adverse events in anaesthesia and sedation. Post implementation the overall Hazard Score improved dramatically by nearly 90 over four quarters. Risk Reduction in Anaesthesia and Sedation Apollo leverages technology purposefully for best in class patient safety practice HIMSS-ELSEVIER DIGITAL HEALTHCARE AWARD 2015 OUTSTANDING ICT INNOVATION AWARD CliniCAl AnAlyTiCS for infe CTion ConTrol This in-house developed solution has been recognised as the most innovative creative and "out-of-the-box" ICT solution that can be used to improve patient care and safety. Infection control and timely information on Infection control patterns is key to ensuring higher levels of clinical outcomes. Collection timely feedback of process and outcome surveillance are some of the challenges faced by the Infection Prevention and Control team. This innovation ensures timely communication of surveillance information to both clinical and non-clinical teams using analytics and related tools to mine Big Data. Earlier infection control surveillance was carried out manually with data extracted from lab reports. The award winning project automates the extraction and analysis processes enabling easy processing of huge laboratory data quickly and efficiently. The tool analyses the antibiotic susceptibility of different organisms to different antibiotics—an extremely important aspect of infection control practices as it indicates which antibiotics can be used in the hospital which ones to avoid and which ones to preserve for future use. Microbiologists are alerted when there is a multidrug resistance superbug isolated in the hospital and the infection control team springs into action to take necessary steps to prevents its spread to other patients. The tool can pinpoint where the organism is located—the ward doctor patient—helping direct infection control action where needed. It can also analyse the emergence of new organisms. As new pathogens emerge often especially in immuno-compromised patients it can help in the early detection of a resistant bug. This automated analytical process helps enormously in better patient care management. CLINICAL AND OPERATIONAL BENEFITS ê Patient safety is a top priority at all our hospitals. Many of our hospitals have an increasing number of people with complex and acute problems and multiple comorbidities. Early identification and intervention for such in-patients who are at risk of significant physical deterioration is extremely important. Attending nurses should have the ability to recognise early signs and symptoms of deterioration in a patient’s condition and respond quickly to prevent a cardiac arrest. Quick Response Teams QRT have therefore been created. Groups of five nurses have been given intensive training to deliver critical care in response to grave clinical deterioration of a patient located outside a critical care unit. These teams can be assembled quickly and are available 24/7. Our Commitment to Patient Safety Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 10 11

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Our Apollo Heart Institutes perform a multitude of treatments and procedures in cardiology and cardiothoracic surgery. Our team of cardiologists and cardiothoracic surgeons are trained at the top institutes in India and abroad and are dedicated to the prevention and treatment of cardiac disease. Our pioneering work in these areas have produced better outcomes and improved quality of life for thousands of cardiac patients who visit us each year with complex heart problems. Our infrastructure is best in class and supports the complex nature of the cardiac care provided. Third generation Cath Labs Cardiac Critical Care Units and Intensive Care Units support our experienced cardiologists and post-operative care teams making us one of the best heart hospitals in the world. Pion EE rin g . Progressi ve. Preci s e. Interventional Cardiology Electrophysiology Cardiothoracic Surgery Advanced Heart Failure Clinic Blood Clotting Disorders Vascular Surgery Minimally Invasive Bypass Surgery Robotic Cardiac bypass Surgeries Marfan Syndrome: Bentall Procedures Valve Clinics TAVR Cardiac Rehabilitation Success rates comparable to international benchmarks 10000+ Cardiac Surgeries FY 16 We offer a range of cardiac diagnostics treatments and surgeries for children adults and geriatrics. Our subspecialty disciplines differentiate themselves through the calibre and experience of our doctors who are trained in cutting edge trends and technologies and can cater to the unique needs of any patient demographic be it the most complicated coronary artery bypass surgery heart surgery for children or surgery for all types of valvular heart diseases. Over 99.6 of cardiac bypass surgeries are Beating Heart surgeries ensuring quicker and easier post-operative recovery. We are pioneers in Coronary Artery Stenting and Laser Angioplasty and experts in advanced techniques such as Percutaneous Transluminal Septal Myocardial Ablation. Sub-Specialties Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 12 13

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Case Study 1 A first of its kind in India. 11 day old baby suffering from Ebstein’s Anomaly successfully treated The Paediatric Cardiology team in Hyderabad successfully performed a complex and rare cardiac surgery on a prematurely born tiny baby suffering from Ebstein’s Anomaly - a critical congenital heart ailment. The baby’s right side heart valve was abnormal and leaking profusely. Blood was not flowing to his lung for oxygenation. This life threatening abnormality was detected by the doctors through a fetal echocardiography when the baby was still in the womb. The baby was born prematurely at 34 weeks with growth retardation. The natural connection between his aorta and the artery to the lungs was closing and it was imperative that surgery be performed on a war footing. This was a challenging task because of his deteriorating condition tiny size small size of the heart no bigger than an adult thumb and organs. The 11 day old baby weighing a mere 1.2 kg at birth was placed on Cardiopulmonary bypass with specially designed circuitry in preparation to working inside the heart. The baby tolerated the procedure well and the surgery was a success. A multidisciplinary team was required right from diagnosing his condition inside the womb to his recovery. This high-risk surgery was a first in India. The surgical team stopped at nothing to ensure the baby’s wellness. We value life and will do what it takes to save one. Revolutionary awake cardiac surgery under thoracic epidural anaesthesia A male 66 years and a heavy smoker was admitted with acute cardiogenic shock with pulmonary edema severe LV dysfunction renal dysfunction and respiratory failure. He was put on a ventilator and given antibiotics ionotropes diuretics and antianginal drugs. The support was continued for 20 days after which he was put on BiPAP for 10 days. After a week CAG was done which suggested severe diffuse critical TVD. With a combined Heart Team the patient was scheduled for an elective CABG which was very high risk in view of COPD recent chest infection requiring BiPAP support and HRCT. Because of the high risk of general anaesthesia the doctors decided to perform awake off pump CABG under high thoracic epidural anaesthesia TEA. Routine standard monitoring was put in place. The patient was given unrestricted airway access and only mild sedation. The standard midline sternotomy was performed. Routine OFF PUMP coronary grafting was performed. The sternum was closed with wires and two meditational drains and the patient was shifted to ICU in stable hemodynamic condition. This was a tremendous effort in a very high risk case by a multi-functional team of doctors surgeons and nurses. The awake surgery was the only option they had to treat the patient. Focused on his complex condition they ventured to do what was best for him. The patient recovery was remarkable. Case Study 2 Patient Testimonial Dear Team Apollo I am a 63 year male living in Chennai. I run my own business for the last 35 years serving the Construction Industry. I recently went thro CABG in your Main hospital and wanted to share my experience with the doctors and Management. It has been my mission in the last 35 years to bring the latest in construction methods technologies equipment and systems into India thro my company ACT. I had been successful many times but there have also been failures. I can imagine that your tireless Chairman Dr. P.C. Reddy would have had very similar experiences the only difference is that you all deal with humans whereas I deal with inanimates. The care and attention to detail at Apollo is simply amazing. Thousands of people walk in everyday and no two persons speak the same language. Truly a multi racial multi language patient fraternity. You seem to have a seamless way to greet the patients at the entrance and then walk them to wherever they want. Help is always there in some form. No one is shouting for anything. There is a system even in this crowd. Truly you have allocated jobs as per skills. Bengali patients are maximum. Nurses are mostly from Kerala. Cleaning and house keeping from Bihar and Orissa. Doctors have a good hierarchy of reporting and see the patient everyday. You have an army of doctors as “consultants” and the facilities you give them are on par with the best in the world. I have been to some of the best hospitals in the world and I can vouch for my statement. Though it looks like a chaos the system works well. They have good clean rooms and OTs. The sheer volume of cases handled by this hospital is phenomenol. In terms of foot falls this may be highest in the world based on patients treated per sq ft. I cannot imagine the load on laundry house keeping hygiene catering clinical waste disposal irradiated wastes and each specialist’s doctor’s special requirements. The excellent idea of having all treatments under a single roof is a feather in your cap. I wonder when does the hospital sleeps We hear many nasty things about the running of Apollo outside in media and gossip. I have now completely changed my opinion about what you all do inside this citadel. Patient management is amazing. No one is rushing or running or shouting in the corridors. I am saying all this because I have experienced it. Now coming to my experience it was a heart condition called SVT. I was sweating profusely and had very high heart beat when I left a construction site on that fateful morning on 29th March. Initially I wanted to go home and lie down but when the car reached the gate I decided to go to the Apollo Specialty nearby. Then I asked driver to wait in the car park and I walked into the emergency and asked for a ECG myself. When they took the first ECG there was commotion around me. They wheeled me into another room and took another ECG. That’s when they asked me if anyone is with me. I gave them my cellphone and asked them to dial my brother’s no and then once he was here they just put me in an ambulance and rushed me to the main hospital. my brother sitting with me in the ambulance. On hind sight if I had not decided to go the hospital but home then probably I will not be alive to send this mail today. The whole event was managed beautifully from the time the doctors took charge of me till I was discharged on 8th April. In the CCU and ICU life is tough for the nurses but they are always smiling. Even though it looks like a factory with steady inflow and outflow of patients the nurses never made a mistake in medication or for that matter in any process. Once shifted to the room the care continued. Nurses are real angels. They make you smile and their mild flirting peps up the patient too. I was so pleased with the attention that I made it a point to call each nurse by her name. When I was discharged they accepted a large cake as my token of the care they gave me. They are like my own daughters and I did what I would do to my daughters. Thats all. It is nice to see an Institution of this size where there is no corruption. Everyone has to follow rules and no skipping turns. After discharge I had a small complication and again this was handled beautifully. There was excellent communication between the surgeon. general physician and cardiologist. It was amazing to see one surgeon attending on another surgeon’s patient as he was busy in a case in OT and did not want me to go back home without seeing a doctor. I dont think this sort of cooperation between doctors can be seen elsewhere. I can go on and on but will stop here. On the whole my experience at Apollo was fantastic. Hats off to you Sir Dr P.C. Reddy for building a truly world class institution in India. I wish you do the same in every city and build micro Apollos in our villages. In the building industry we are now talking about “Affordable Housing” pioneered by our PM. Similarly you can do “Affordable medicare” in our smaller towns and villages. The doctors involved in my surgery were Dr. L.F. Sridhar. Dr. Vijayachandra. Reddy and Dr JRS. For them I may be just a statistic but for me they will remain very special. I will propagate my views on Apollo wherever I can as a small token of return gesture. JAI HIND. Warm Regards Apollo Cardiologists perform a pioneering cardiac procedure ‘Transcatheter Aortic Valve Implantation’ on an 80 year old man A pioneering cardiac procedure Percutaneous Transcatheter Aortic Valve Implantation TAVI was performed on an eighty year old man with critical calcific Aortic Stenosis by Dr. P. C. Rath and team of Dr. Manoj Agarwal Dr. B. Dikshit and Dr. Sundar Apollo Hospitals Hyderabad. This procedure is being performed for the first time in this part of the country. Narrowing of the aortic valve of the heart is called Aortic stenosis. This leads to gradual petering of blood flow and consequently the heart has to make an increased effort to pump blood. This condition can lead to heart failure. In normal circumstances an open heart surgery is performed on such patients to replace the valve. However in the case of this patient due to his advanced age and renal failure an open Heart Surgery was considered to be a high risk and therefore the minimally invasive TAVI was preferred. TAVI was performed in the cathlab from the groin region like in angioplasty. After the patient was administered short general anesthesia the valve was put to the heart through the femoral artery and was implanted accurately under the guidance of fluoroscopy and Trans Esophaegeal ECHO. The duration of the procedure was approximately one and half hours. The patient was conscious immediately after the procedure and was discharged after 5 days. Case Study 3 Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 14 15

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The story of cancer in India is very real. There is an alarming rate of increase in cancer incidence and predictions for the future sound dire. But at Apollo we firmly believe Cancer is Conquerable. Our precision diagnostics and technology led cancer treatment is cutting edge and a key differentiator in cancer cure. The Oncology Team at Apollo Hospitals specifically focuses on cancers most common in India. Grounded in the expertise of over 125 Internationally and nationally trained surgical medical and radiation specialists our 9 dedicated centres offer comprehensive 360 degree cancer care across gender and age. We provide the full range of services to our patients from prevention to education early diagnosis pretreatment evaluation staging best treatment and surveillance for recurrent disease support services and end-of-life care. Our specialists collaborate at these centres and with the help of state-of-the-art diagnostic and therapeutic technology provide patients with optimal evidence-based customised treatments for removal of cancer cells from the body through surgery radiation and medication. We are the only dedicated organ specific cancer centre among corporate hospitals in the country today. comPrEhEnsivE. collaborative. compassionate. This is our commitment to offering the best to our patients. We launched India’s ‡ first CYBERKNIFE Robotic Radio Surgery System ‡ first Novalis Tx System ‡ first PET-MRI suite ‡ first TrueBeam Stx and will soon inaugurate the ‡ Proton Therapy Centre the first in South Asia Africa and Australia ‡ Surgical Oncology ‡ Radiation Oncology ‡ Hematology Medical Oncology ‡ Interventional Oncology ‡ Neuro Oncology ‡ Paediatric Oncology Sub-Specialties CANCEr IS CONquErABlE 160000+ radiotherapy Sessions FY 16 57000+ Chemotherapy Sittings FY 16 3000+ robotic Surgeries till date Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 16 17

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Moving a step ahead of regular procedures like chemotherapy and general drug treatment the high end therapeutic method treats cancer with personalised drugs. This approach includes various diagnostic tests and profiling which can indicate whether a particular drug will be effective in the treatment and how the patient’s body will respond when the drug is administered. This kind of treatment is more focused personalised and immensely more valuable in combating cancer and helping the patient conquer the disease effectively. Under Molecular Profiling the cancer tissue sample collected for biopsy or the patient’s blood sample undergoes molecular biology tests which predict the patient’s chance of responding to cancer drugs. In Genetic Profiling the gene mutation of the cancerous cell is checked to predict whether the patient can respond to a particular drug or not. The genes of the patient will help in judging the effectiveness of the treatment method. The high end therapeutic method is used to treat the following types of cancers ‡ Lung Cancer ‡ Colon Cancer ‡ Breast Cancer ‡ Lymphomas ‡ Leukaemia ‡ Head and Neck Cancer The diagnostic imaging and therapy systems at Apollo are sophisticated and cutting-edge. Our radiology groups and imaging facilities offer the most ef- fective ways to diagnose and treat cancer. Prevention Diagnostics - Revolutionary and differentiating ``We are well equipped for Prevention Diagnostics which identifies the inherited predisposition to develop cancer. Emphasis is placed on molecular diagnos- tics to study the genetic mutations copy the number variations of individual genes chromosomal aberrations changes in the expression patterns of genes tumour initiation and progression which help in accurate diagnosis and prog- nosis in addition to guiding treatment decisions that are personalised. Clinicians provide information for the design of new cancer treatments monitor the treatment’s effectiveness as observed in a clinical trial and even predict the patient’s response to a new treatment. Molecular diagnostics and its newly developed techniques for examining the molecular signatures of cancer cells - protein as well as gene patterns – is revolutionary and offers tremendous possibilities for customising our approaches to screening diag- nosis and classification for many different kinds of cancer. high End Diagnostics nEW AgE ThErAPEUTics The comprehensive Organ Specific Cancer Care services of Apollo rest on six kinds of approaches for the treatment of Cancer. Every treatment approach is backed by years of experience cross-Onco specialty collaboration Tumor Board assessment cutting edge technology and state-of-the-art infrastructure to make sure the treatment culminates in giving the best possible treatment and quality of life to the patient. ‡ Head and neck ‡ Colorectal–GI ‡ Breast and Gynaecology ‡ Uro Oncology ‡ Neuro Oncology Brain Tumor ‡ Lung Cancer organ specific cancer care Primary Immune deficiency disorders are under-recognised and under- treated in children in India. Lack of an immune system makes these children prone to repeated infections and results in early death. Bone Marrow Transplantation is the only form of cure. Apollo Cancer Institutes Chennai has the largest number of such children treated in India. Infants with no family matched donors have also been successfully treated with stem cells from their half matched sibling using the Johns Hopkins Protocol. Master Royan Ronaldo was cured of a rare condition called Wiskott Aldrich Syndrome after receiving half matched stem cell from his sister. These are extremely complex procedures made feasible only by an extraordinarily talented and skilled team of physicians and nurses supported by advanced cutting edge lab facilities. Our success rates are over 75. Bone marrow Transplantation 170+ Bone Marrow Transplants FY 16 Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 18 19

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cUTTing EDgE. c urA t i ve. c ust om i s ed . One of the cornerstones of good health and mobility is strong bones and joints. As a leading bone and joint centre the Apollo Institutes of Orthopaedics is home to medical professionals trained in some of the world’s best institutions alongside cutting-edge technology. The Institutes are committed to leveraging the best of technology technical knowhow and innovation to offer every patient best in class services and rehabilitation. Our hospitals have dedicated units for trauma physiotherapy and sports medicine. We also offer specialised care in paediatric orthopaedics. Thus each need each injury each ailment has access to a dedicated expert pool of specialists. Procedures like True Personalised Knee or the Ideal Knee are performed successfully at the Institutes giving patients renewed mobility in the shortest time possible. From hip and knee replacements to hand micro surgeries a wide variety of surgeries simple and complex are regularly conducted with excellent outcomes. This is the best reassurance to any patient walking through our doors. At the Apollo Institutes of Orthopaedics surgeons have the right balance of education practice and expertise to ensure that every patient is presented with a treatment plan tailored to his or her needs. General Orthopaedics Paediatric Orthopaedics Knee Replacement Hip Replacement Arthritis Clinic Hand Surgery Shoulder Elbow Surgery Repair of Fractures Total Joint Reconstruction Arthroplasty Spine Surgery Orthopaedic Trauma Sports Medicine Surgical Sports Medicine Robotic Orthopaedics Foot Ankle Specialised Surgery Limb Lengthening Surgery Rheumasurgery ‡ Apollo Hospitals Chennai introduces “the Ideal Knee” - the future of Total Knee Replacement through a new technique - Attune Rotating Platform Knee Replacement a first of its kind in South India ‡ Apollo’s Orthopaedics experts are front runners in the management of spinal surgeries in India. We are one of the very few centres in Asia which provide robotic spinal intervention Sub-Specialties 1000 Total Hip replacements FY 16 4900+ Total Knee replacements FY 16 Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 20 21

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Tracking Outcomes Average Length Of Stay ALOS in the hospital post Total Hip Replacement surgery Average length of stay means the average number of inpatient days of stay. In other words it measures the duration of patient stay at the hospital for a procedure. Low ALOS is ideal and it would be achievable only when all clinical care processes and outcomes are optimal and no complications arise while the patient is at the hospital. A low ALOS implies that the hospital’s clinical care and administrative processes are efficient to enable faster discharge and recovery for the patient. Our ALOS score at 4.76 days is best in class amongst global peers . Values audited and validated by the Apollo Clinical Audit Team Reference: Agency for Healthcare Research Quality US Apollo Hospitals Chennai excels in Hip Arthroscopy helps a 15 year old return to normal life Hip Arthroscopy is a cutting edge procedure that involves viewing the interior of the hip joint through an arthroscope and then using minimally invasive techniques to treat the disorder. A 15 year old student came to our Hospitals in Chennai with a persistent severe pain in his hip for almost 15 days making it difficult for him to even walk. On diagnosis doctors identified that he was suffering from synovitis of the hip for which Hip Arthroscopic synovial biopsy was done. The Hip Arthroscopy procedure enabled mobilization in a day. Speaking about the advantages of Hip Arthroscopy Dr Madan Mohan Reddy Senior Consultant Orthopaedic Surgeon Apollo HospitalsChennai said “Hip arthroscopy provides the advantage of reducing the need for hip replacement procedure which is quite complex. In addition to this it is a day care procedure where the patients experience very little pain minimal blood loss and can also be mobilised quite quickly. People are aware of this procedure and we expect more people to opt for Hip Arthroscopy in the future as opposed to open surgery because of its advantages” he added. Hip Arthroscopy is an intricate and technically demanding domain that has been perfected by few healthcare providers and Apollo Hospitals has been in the forefront in leveraging this new technique for the benefit of patients. The institute is equipped with technologies for advanced spinal treatment procedures like Robotic Spinal Surgery Disc Replacement and Scoliosis Surgery. Case Study Neurological diseases comprise the third largest world health concerns after heart disease and cancer. There are few things in this world more terrifying than injuries to the brain or spine. The Apollo Institutes of Neurology and Neurosurgery understand this and commit to providing the best possible treatments to ensure quality of life. Our knowledge base is deep and experienced. We take a departmental approach to finding solutions. Interaction and collaboration are both paramount to our outcomes. Our doctors surgeons and medical staff battle diseases ranging from Parkinson’s to Myasthenia Gravis and conditions from headaches to brain haemorrhages. Ensuring a very firm foothold on the ever-evolving fields of neuroanaesthesia neurosurgical intensive care and neuro-imaging technology the team is committed to achieving a harmonious amalgam between technical expertise and technological advancement to provide every patient superior care. It is this partnership that has led to the popular practice of minimally invasive surgery resulting in significantly reduced mortality rates and faster recovery periods in neurosurgery. At Apollo Hospitals the focus is not only on saving lives but in doing so in the most comfortable way possible ensuring every patient’s stay in the hospital is as short and as painless as it can possibly be. We believe that quality of life is as important as being alive. rE s T or E . r ehab ili tat e. r Evi tali s e. INTEgrATED PATIENT-CENTrIC TECHNOlOgY DrIvEN 14000 Neuro Surgical Operations FY 16 Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 22 23

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Tracking Outcomes Door to CT or MRI time in Stroke in the Emergency Room This is the average lag time between the arrival of the patient in Emergency Room and the time when a MRI is done in cases of acute stroke. The lesser the time the better the outcome as the “golden hour” is critical for patient survival in stroke. Clinical protocols for clinical emergencies are more standardised and streamlined the lesser the lag time. This implies better resuscitation and recovery from time- critical medical emergencies. The lowest score we have achieved in our group is 36.82 minutes door to MRI time benchmarked against our internal group average of 60 minutes. Values audited and validated by the Apollo Clinical Audit Team Bloodless Key Hole procedure to restore blood supply to a starving brain A middle aged man was enjoying a casual Sunday at home when he suddenly lost function in his left hand and leg. His face became droopy his speech became slurred and in minutes he lost total function of the left half of his body. His family rushed him to Apollo Hospitals at Greams Road Chennai where within minutes of arrival much like a military style precision operation the doctors recognized his stroke and performed brain imaging. Stroke specialists on site administered clot busting drugs in no time but knew the long clot from his carotid artery all the way to his major brain vessels needed the next line of immediate clot removal—the Endovascular clot retrieval procedure. As the clot buster was infused he was rushed to the cath lab where a multidisciplinary team—Interventional Radiologist Neurovascular Consultant Anesthetist and support staff performed a bloodless Key Hole procedure and pulled the clot out to restore blood supply to his starving brain. The whole interventional procedure was completed well within the golden hour for standard intravenous clot busting therapy. State of the art stroke services at Apollo Hospitals combined with the Robotic Rehabilitation therapy unit can prevent death and disabilities to those suffering from stroke. Case Study Neurology Neuro Oncology Neurosurgery Epilepsy Clinic Multiple Sclerosis Centre Stroke Clinic Multidisciplinary Pain Medicine Neuro-Ophthalmology Vascular Neurology Alzheimer’s Disease and Dementia Sleep Disorders Spine Health Endovascular Surgical Neuroradiology Movement Disorders Paediatric Neurology Stroke is over taking Cardiac and Cancer diseases as the leading cause of death and disability. With rapid improvements in Neuro Imaging and newer treatments for Ischaemic stroke produced by a clot in a blood vessel to the brain it is possible to prevent your loved ones from losing speech limb function functional and executive abilities. Unfortunately the perception in the public at large and even amongst some healthcare professionals is that stroke is incurable leading to unnecessary loss of precious lives. Clot busting drugs can dissolve brain clots and arrest brain damage if given within the first few hours of onset of the symptoms. With each passing minute one loses millions of neurons in the brain if not treated immediately. At Apollo we understand the urgency and respond to the patient in the most appropriate way needed. Sub-Specialties Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 24 25

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The outcomes from the Apollo Institutes of Transplant show a 90 success rate spanning various organs including the liver kidney pancreas heart lung intestines and cornea. These programs make Apollo an undoubted industry leader in the field of transplantation bringing together skilled practitioners from the fields of Nephrology Gastroenterology Paediatrics and Intensive Care as well as Anaesthetists and Physicians. The first adult and paediatric liver transplants in India were performed by Apollo Hospitals eighteen years ago way back in 1998. Apollo Hospitals conducted over 746 transplants in a single calendar year 2010 across its fourteen centres making it the busiest centre outside the United States of America. The Institutes have an impressive list of firsts to their name—paediatric liver transplant adult cadaveric transplant simultaneous liver-kidneys-pancreas transplant donor incompatible kidney transplant—the list goes on. The Institutes created a record in 2015 by harvesting 23 organs in a single day providing multiple individuals a second chance at life. The Apollo Institutes of Transplant have a very simple goal—to help anyone who needs specialised care and expert consultation in the field of transplantation. The record numbers of successful transplantations bear testimony to the experience and expertise of the Institutes. mUlTiDimEnsionAl. modernised. met i culous. Kidney transplant Liver transplant Heart transplant Bone marrow transplant Lung transplant Pancreas transplant Cornea transplant First 1995 Private hospital to conduct a Heart Transplant in India 1998 Successful liver transplant in India 1998 Simultaneous Kidney-Pancreas transplant in South India 1998 Successful adult cadaveric transplant 1999 Successful paediatric living related liver transplant 1999 Successful liver- kidney transplant 2008 Youngest paediatric liver transplant in India 2009 Successful liver transplant for Hepatitis B without immunoglobulins 2009 Case of Hermansky-Pudlak Syndrome in India treated with double lung transplant Sub-Specialties 1100 Kidney Transplants FY 16 400 liver Transplants FY 16 Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 26 27

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Organ transplantation is termed as quaternary care and is the most advanced form of medical care that can be provided to a patient giving them a second chance at life. The ‘Centre for Liver Disease and Transplantation’ CLDT based out of Apollo Hospitals Chennai comprises of a team of leading doctors who carry out liver pancreas intestinal and complex multi-visceral transplantations out of Apollo Hospitals at Chennai Hyderabad Bangalore Kolkata and Madurai. The CLDT is the largest group of transplant surgeons spread across the widest geography in the country and have several firsts and accolades to their credit. Their most creditable achievement is the fact that they have developed cadaver organ donation programs at all centers operated by them and are consequently the largest cadaver liver and multi-organ transplant program in India today. They are also the largest and the only successful pancreas transplant program in the country and South- East Asia. Cirrhosis of liver or Chronic Liver Disease is among the most prevalent diseases in our society today. It is well known that the common diseases leading to cirrhosis are Hepatitis B Hepatitis C alcohol abuse autoimmunity etc. But the list has now been topped by a condition led by obesity diabetes called Fatty liver which progresses to ‘Non-alcoholic Steato- hepatitis’ NASH and cirrhosis. These conditions affect approximately 10-12 of our entire population and is therefore assuming epidemic proportions. organ Transplantation. A second chance at life. Living donor liver transplantation is a very effective treatment for patients with ‘end stage liver disease’. The unique ability of the liver to ‘regenerate’ itself within a short span of time makes it absolutely safe for the donors as well. The CLDT is among few programs with an absolutely immaculate record of donor safety having more than 90 success rate in their living donor liver transplant patients. Prevention of liver disease is the only way to escape the catastrophic consequences of advanced cirrhosis which has no effective medical cure and requires liver transplantation to save the patient’s life. A healthy life style including regular exercise prevention of obesity vaccination against Hepatitis B staying away from alcohol abuse and regular preventive health checks are some easy methods to ensure a healthy liver. Liver cancer is the other dreaded complication of liver cirrhosis. This again can be cured with surgery if the cirrhosis is at an early stage but needs a liver transplant if the cirrhosis is advanced. Newer medicines for Hepatitis C introduced recently are nearly 100 effective in eradicating the dreaded Hepatitis C virus and with Fibroscan a non-invasive test available to measure the degree of liver damage and stiffness there is now more medical care to offer patients with advanced liver diseases. Intestinal and multi-visceral transplantation are offered to adult and paediatric patients who are suffering from inadequate intestinal length and function thereby requiring nutrition intravenously. These patients are often miserable and in dire need of multi-visceral transplants to survive. The CLDT is the most comprehensive transplant program providing living donor and cadaver donor liver transplantation for patients of all ages and ailments. The team is ably supported by transplant coordinators specialist transplant nurses dieticians various therapists that give 360 degree care and satisfaction to the transplant patients. Pancreas transplantation is the only CURE for diabetes as compared to other treatments. The results of pancreas transplant and combined kidney pancreas transplantation have been 95 for patients and the transplanted organs. Paediatric liver transplantation is a subspecialty at CLDT where the treatment and outcomes of paediatric liver transplantation is the highest and best. CLDT has to its credit the smallest child by size to be transplanted in India—a 5 months old baby weighing a mere 5.5 kgs performed in 2008 when liver transplantation was in its infancy. That child is today healthy and attending school. Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 28 29

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Apollo Hospitals Chennai successfully performs “Only Pancreas” transplant for the first time in India For the first time in the country an attempt was made at a pancreas transplant for which an advanced cardiac life support vehicle covered a distance of 18 km within 12 minutes through a green corridor created from Chennai airport to Apollo Hospitals on Greams Road. Generally the pancreas is transplanted along with the kidneys for patients undergoing kidney transplantation for diabetes. However in this case the patient’s kidneys were functioning normally. The organs were brought to Chennai on a Jet Airways flight from Coimbatore. The ambulance drove through the green corridor in 12 minutes—a distance which have normally taken at least 45 minutes. The recipient was a 33-year- old man who had been suffering with insulin dependent diabetes mellitus with “Hypoglycemia unawareness” for the past 14 years. The organ was transplanted by a team of transplant surgeons at the Centre for Liver Disease and Transplantation Apollo Hospitals Chennai. “The pancreas is a very sensitive organ and has to be transplanted quickly and within five hours. Immediate ground clearance and support from the airlines helped speeden the process.” One-year-old child from Kenya undergoes unusual liver transplant in Indraprastha Apollo Hospital Delhi A one-year-old child from Kenya underwent an unusual liver transplant at our Hospitals in Delhi. A segment of the liver was donated by the child’s father. The child was suffering from biliary atresia since birth a condition in which the bile ducts required to drain the bile from the liver to the intestine were not developed. This is among the most common reasons for liver failure in infants. The condition can be treated if detected within two months of birth. However in this case the condition went undetected. The only option for him was a liver transplant. The procedure was conducted at the Centre for Liver and Biliary Surgery. Professor Anupam Sibal Group Medical Director said: “This case was high-risk because he was severely malnourished was born with a complex anatomy and his liver failure was rapidly worsening. He needed an urgent transplant. We took on the challenge with such a small baby weighing only 6 kgs and with several risk factors as that was his only hope.” The child had made a remarkable recovery and was discharged two weeks after the surgery. The operation took 12 hours and involved a medical team of 50 people. Asia’s first en-bloc combined heart liver transplant—a remarkable achievement in global healthcare Reiterating its position as the leading transplant centre in the world Apollo Hospitals Chennai performed a complex en-bloc combined heart and liver transplant giving new life to a 30 year old. The patient was advised a liver transplant because of liver failure. He was also diagnosed with a congenital condition called Ebsteins Anomaly—mal development of the right side of the heart which was the cause of the liver failure. There was no other option but a combined heart and liver transplant. It required a highly successful heart liver transplant team both working together as ONE team to accomplish an en- bloc combined heart and liver transplant. “The transplant teams had to take into consideration the risk of excessive bleeding in the case of simultaneous transplant and the risk of accumulated toxins if the two organs were transplanted separately” recalls Dr. Paul Ramesh Consultant Cardiothoracic Surgeon Apollo Hospitals Chennai. “I am extremely proud of the patient and his family who ignored all naysayers and whose trust in the clinical team at Apollo gave us the inspiration to carry out this procedure and mark a milestone in our medical history” added Dr. Ramesh. From seemingly ordinary stomach aches to complicated transplants the Institutes of Gastroenterology at Apollo Hospitals cater to the needs of both children and adults with specific focus on digestive and hepatobiliary systems. With proficiency both in the medical as well as the surgical elements of the field. The medical practitioners of the Institute guarantee quality care and unparalleled expertise for every patient walking in with a gastroenterological complaint. In fact the Institutes ensure the holistic health of their patients providing solutions to not only the physical ailments pertaining to the digestive system but also extending their ambit to the physiological processes of digestion absorption and elimination. The Institute of Colorectal Surgery and the Apollo Fatty Liver Clinic both offer specialised care for specific ailments. Such localised centres allow patients to get expert opinions and advice without getting lost in the humdrum of large hospital environments. By extending individual focus and pledging dedicated resources to specific areas of work Apollo Hospitals ensures that every patient every condition and every treatment plan benefits from the best counsel that its medical fraternity has to offer. i nnov A T i v E . integrated. interdisciplinary. At the cutting edge for patient care Holistic solutions for the family GASTROENTEROLOGY Case Study 1 Case Study 1 Case Study 3 Case Study 2 Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 30 31

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Colon Rectal Surgery Medical Gastroenterology Surgical Gastroenterology Bariatric Surgery Pancreas Liver Intestinal Transplants Advanced Laproscopic Surgery Upper GI Surgery Obesity Clinic Hernia Clinic ‡ Endosonography ‡ Capsule Endoscopy ‡ Hepatobiliary Procedures The Institute of Colorectal Surgery at Apollo Hospitals is one of India’s first dedicated centres for management of diseases of the colon rectum and anus. The Institute offers cutting edge treatments in Proctology Pelvic Floor Diseases and Laparoscopic Robotic Colorectal Surgery for Colorectal Cancer. Internationally trained and qualified Colorectal Surgeons offer world class end- to-end colorectal care and our experts in both surgical and non-surgical treatment of diseases of the colon rectum and anus. They are well versed in the treatment of both benign and malignant conditions and can offer treatment as needed for the patient. Sub-Specialties Highlights Apollo Gleneagles Hospitals Kolkata has a tradition of leveraging technology for delivering the best medical solutions to its patients. In keeping with this philosophy the hospital has acquired the SpyGlass™ DS Direct Visualisation System at its state-of-the-art Institutes of Gastroenterology. SpyGlass™ is a breakthrough innovation in Cholangioscopy which overcomes the shortcomings of the traditional cholangioscopes. It ensures unmatched direct visualisation of all bile-duct quadrants enabling lifesaving treatment of patients afflicted by hepatobiliary disorders. The system comes equipped with enhanced features which improve visualisation and simplifies procedures. It includes a fully integrated SpyScope™ DS Access and Delivery Catheter and a single-use scope that eliminates probe reprocessing and image degradation over multiple uses. Dr Mahesh Kumar Goenka Gastroenterologist and Director of the Institute of Gastrosciences says “The SpyGlass™ DS’s integrated digital sensor offers a 60 enhancement in the field of view and far greater resolution delivering superior imaging. The wider field of vision allows us to pinpoint the site of the complaint with increased accuracy leading to faster recovery and cure. It has added to our already advanced capabilities enabling us to provide curative solutions that are well ahead of all other alternates currently available. We can now ensure a completely transformed care regimen which guarantees the best outcomes.” spyglass™—a breakthrough innovation in cholangioscopy “I was shocked to know that I weighed 348 kgs when I measured myself on arrival at Apollo Hospitals. I was suffering from severe sleep apnoea arthritis and compulsive eating habits. I was rejected as a candidate fit for surgery all across the nation due to the high risk involved and non-availability of facilities. Dr. Rajkumar Palaniappan explained about the new Robotic obesity technique introduced for the first time in India and its availability in Apollo. He also explained the possibility of a safer surgery on me by this technique. Internet search showed it to be the safest minimally invasive option and I agreed for the same. He successfully performed the surgery. I happened to be heaviest patient operated in the whole of Asia. I recovered well and yesterday for the first time in few years walked to the toilet myself. I am happy for having decided to come to Apollo Chennai and being treated under the great surgical hands of Dr. Rajkumar Palaniappan. I will always be grateful to him.” Patient Testimonial Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 32 33

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A lady aged 28 years was admitted for management of atrial fibrillation. The doctor prescribed a betablocker and asprin. While entering the prescription into the computer system he received an alert from Healthcare India Pharmaceutical Registry HIPaR that the patient was pregnant and betablockers were associated with ‘small’ for gestational age babies. Also she was allergic to asprin. He immediately cancelled these two medicines and proceeded with an alternate treatment. HIPaR had prevented a medical mishap. HIPaR has caught and prevented more than 5 severe drug reactions and more than 10 therapeutic duplications every week over the past 2 years from a total of over 33 million medicine prescription transactions. HIPaR is a tool to reduce medication errors in real time. Using its extensive database overlaid with an intelligent engine HIPaR can analyse medication prescriptions and send lifesaving alerts. It can provide drug monograms for doctors who want to find out more details before deciding which drug to prescribe. For nurses it can provide information on how to store drugs how to administer them how to dilute the drug and parameters to be monitored after administering drugs. Patients can be given information to make them proactive in their treatment. For generating alerts HIPaR is able to factor in variables like age of patient other concurrent medication allergies pregnancy status renal and liver function status and other medical conditions and interactions with food. It can even warn care providers if the drug has been marked as potentially confusable with other drugs either because of similar spelling or looks. HIPaR is dynamic and always kept up-to-date. It designed for India and has details of all the Indian drugs in it including drugs that are commonly imported. ‡ Allergy interaction ‡ Incorrect adult dosing ‡ Paediatric dosing ‡ Geriatric dosing ‡ Incorrect dosing for a specific disease ‡ Incorrect drug form ‡ Therapeutic duplication ‡ Contraindications in a particular disease ‡ Drug-drug interaction ‡ Incorrect substitution ‡ Drug safety during pregnancy ‡ Drug safety during lactation ‡ Sound alike look alike or spell alike ‡ Drug-diet interaction ‡ Special precautions ‡ Specific patient instructions ‡ Administration information ‡ Drug storage information ‡ Monograms ‡ Patient information printouts healthcare india Pharmaceutical registry At our hospitals we continuously focus on leveraging technology to enhance digital outreach and digital access. From establishing a core HIS to setting up telemedicine we have assiduously explored ways we can use technology to enhance patient experience. Our patients come from far and wide across geographies and countries across the length and breadth of India from urban semi-urban and rural demographics. This diversity of patient base brings with it challenges of accessibility connectivity and the need for localised care. We believe we can use technology effectively as a force multiplier to improve efficiency while increasing patient satisfaction. At our hospitals we have a single-minded vision of ensuring our patients get access to quality healthcare no matter where they may be. Our e-consultations are one example of that commitment. Another is our effort to enhance patient safety controls—we have garnered the strength of technology to create applications that prevent drug-related prescription errors. Technology-driven service provision allows Apollo Hospitals to achieve many independent goals through the same set of tools. We are able to reach out to our patients using thus far unknown channels simultaneously improving our productivity while providing them a personalised experience of our value based caregiving. D EP E n D A B l E . Differentiated. Discerning. For us being patient centric is not a goal. It is the core of our existence. Tender Loving Care TLC is our way of life because we want to ensure the best patient experience possible every single time. A deck of best practices encompasses our universe of patient touch points. This is dynamic. As patient needs change we do what it takes to make them feel secure and cared for and we alleviate their feelings of stress and fear. The TLC movement comes alive at our Hospitals with our 60000 caregivers focused on a patient first approach to caregiving. A brainchild of Apollo Hospitals Tender Loving Care Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 34 35

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Apollo Hospitals has been a pioneer in adopting cutting edge technology to generate value for its patients. Apollo Hospitals is one of the first hospital groups to start Tele-consultations in remote geographies. The Group’s latest offering Ask Apollo is a robust clinical delivery engine that can convert any PC into an Online Hospital. It is a patient-centric service that gives patients the freedom to login and book online consultations with Apollo Doctors across all specialties and super specialties through an interactive Website askapollo.com. The consultations can be scheduled as a video conference voice call or over e-mail. The users have the option to share their medical reports with the doctor for a review before consultation and can manage all their records online. Ask Apollo comes with Zero setup cost and can be accessed through any PC around the globe. The Ask Apollo website has a simple user interface making it easy to navigate. Ask Apollo promotes reduced health costs for an individual without compromising on the quality of healthcare. The major components of Ask Apollo’s Digital Strategy ‡ A responsive platform agnostic mobile phone optimised offering which lists all services on the home page without a cluttered appearance. ‡ Minimal touch points with basic user information to facilitate superior service delivery. ‡ Deep linking of relevant WebPages to ensure users find what they want on the page they land on and can easily navigate through the various sections. ‡ Updated clinically robust actionable healthcare content relevant and helpful to the consumer. ‡ Periodic check-up reminders condition specific healthcare content for condition management geography specific health alerts free condition trackers and information relating to camps and discounts. ‡ Within a few months of launch Ask Apollo has gained traction in terms of user acceptance in both urban and semi urban markets- a testimony to how the Indian masses are accepting the concept of Tele-consultations. Overseas markets like China Singapore United Kingdom and the Middle East have shown great interest in this concept. Ask Apollo Ask Apollo is a single address for running the following services ‡ 24x7 Family Physician Online consultations ‡ Apollo Specialty and super specialty consultations ‡ Multispecialty Board consultations ‡ Online Physical appointment booking ‡ Health check booking ‡ Patient health records ‡ Locating a hospital or clinic PRISM is an important initiative under Apollo’s patient engagement platform and Disease Management strategy. Traditionally patients had to visit the doctor not only for a consultation but to pick up lab results health check summaries prescription drug refills and so on. The Patient Engagement Platform collates the Patient Health Diary. It collects all patient centric information that exists within the hospital EMR—lab results discharge summaries demographic information contact details and hospital administrative data such as billing and insurance. Patients can also add to their health data by uploading information from unconnected providers. They can extract their medical record within minutes by using a simple button feature on the portal. This feature also helps multiple caregivers as the complete records can be viewed in real time on a single platform. Patient Engagement Platform Managing critical care patients in the ICUs requires round the clock monitoring and interventions by clinical specialists which is difficult to accomplish given the shortage of intensivits. The longer a patient stays in the ICU the greater the risk of cross infections complications and even death. eACCESS is an innovative idea to enable best of critical care for patients even where specialists are hard to find. It leverages the capabilities of various technologies-two-way audio-visual communication equipment data interface and representation of clinical data in various formats along with the added functionality of trends and alarms to facilitate quality care to the patient by a remotely located intensivist. The technology infrastructure also has an automated means to measure outcomes track performance and monitor resource utilisation. eACCESS enables the critical care team sitting at a command center to complement the physical activities within an ICU ensuring patients are monitored 24X7. The care team at the command centre can effectively monitor multiple patients across many ICUs. Deviations in patient condition are relayed immediately to the on-site team for initiating urgent action. eACCESS provides instant access to over 1000 multi-specialty medical specialists in the Apollo group. e access Major Benefits ‡ 24x7 availability of trained critical care doctors to monitor patients ‡ Reduced patient mortality in the connected ICUs ‡ Reduced average length of stay for ICU patients ‡ Access to good quality critical care for people in remote locations Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 36 37

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Incorporated in 2011 as a Joint Venture between Apollo Hospitals Trivitron Healthcare the brand delivers oral care services in two formats: 7 star dental SPA’s “Apollo WHITE Dental SPA” and Dental Clinics “Apollo WHITE Dental Clinic” with a vision to light up billions of smiles across India making it glow on the world map as a nation free of dental problems and pain. DENTAL 71 clinics The Apollo Clinic is a trusted neighbourhood healthcare partner for family medicine and primary care. It creates the bridge between patients and Apollo Hospitals. The Apollo Clinics will become a platform to address future healthcare challenges in India particularly the growth of non-communicable diseases. CLINICS 69 clinics As a patient often times the need for medical attention is specific—one consultation one check-up or one appointment. At times like these the structure of a multi-pronged organisation may be overwhelming. Yet it is important to choose a trusted brand whose expertise is unquestionable and whose quality of care is above par. It is to provide solutions in these situations and to be accessible to the patient whatever their need may be that Apollo Hospitals has spread its wings outside the compound of its hospitals through specialised clinics. Their aim is to provide an answer to the specific need of the patient easily and comfortably. In over two hundred locations in India these clinics provide an independent and specific service to the local community. Seen on a map the locations span the length and breadth of the country dotting it from Delhi to Tamil Nadu from Gujarat to Assam with clinics present in seventeen different states. Whether it is dental care or diabetes surgery or dialysis the group provides people the opportunity to seek out specialised care without needing to visit a large-scale hospital. The group functions almost on a hub-and-spoke model diverting patients on a need basis within the clinics and promoting cross-department collaboration within its internal structure. The Apollo Clinics promise you the same level of care comfort expertise and experience that the community has come to expect of the brand only closer to home. A DAP TAB l E . Accessible. Advanced. Family’s Healthcare Partner One stop solution for day-to-day healthcare needs A pioneer in creating replicable business models of healthcare clinics this model has the potential to transform the way tertiary healthcare is understood in the country. Every clinic is open not only to collaboration but also to franchising. This coupled with Apollo’s strict safety and quality checks and procedures the specialised clinics are one persuasive step towards the group’s vision to “bring healthcare of international standards within the reach of every individual.” With the expertise of the large hospitals and the accessibility of local care providers these clinics position Apollo Hospitals as the family’s healthcare partner available to support the individual needs of every member of the family with a comprehensive set of clinical capabilities. Thanks to this wide breadth of services the Apollo group is the only multi-brand national platform with direct contact with patients across the spectrum of medical care. The Apollo Clinics The only multi-brand national platform with direct contact with patients across the spectrum of medical care Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 38 39

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Apollo Sugar Clinics is an innovative single specialty diabetes and endocrine healthcare service provider under the aegis of Apollo Hospitals Group formed as a collaboration between Apollo Health and Lifestyle and Sanofi. Apollo Sugar Clinics addresses the lacuna of accessible care for diabetes. It is currently present in 15 cities across India with 42 centres and is actively expanding its footprint. The Clinic’s goal is to make India diabetes free. It aims at deriving the best outcome via a proven patient- centric care model that combines comprehensive clinical care with sustained lifestyle management. Preliminary analyses reflect favourable outcomes with mean HbA1c reduction across all centers. The Diabetes Care Program is a long term model which manages the disease through a diet and fitness regimen. SUGAR 42 clinics “Apollo Dialysis Clinic” is a brand operated under the corporate entity “Apollo Dialysis Private Limited” a Joint Venture Company promoted by two healthcare giants of Asia Apollo Hospitals and Trivitron Healthcare. The vision is to facilitate dialysis treatment in a place that is convenient to the patient. This is in keeping with Apollo’s philosophy of putting the patient at the core of its operations. With a strong focus on treatment outcomes the company aims to setup standalone centres as well as centres in association with existing hospitals. DIALYSIS 5 clinics Apollo firmly believes that the efficacy of its treatments is dependent on accurate diagnostics. With a view to providing our patients the best healthcare possible we leverage technology on an ongoing basis to give them personalised and appropriate treatment options. Nearly 70 of clinical decisions are therefore based on pathology inputs. Apollo Diagnostics serves a great need in providing support to a mighty network of highly skilled doctors who give care to patients of all ages. DIAGNOSTICS 103 clinics In India the concept of specialty care is new and gaining gradual acceptance with 43 surgeries being conducted as day care / short stay surgeries currently. These ambulatory surgeries do not require overnight hospital stay whereas short stay surgeries require lower length of stay LOS. It is estimated that increasing number of surgeries would be conducted in India as day care / short stay surgeries over the coming years. Short stay surgeries are conducted across multiple healthcare delivery formats -tertiary care multi-specialty hospitals nursing homes single-specialty hospitals and multiple specialty surgical centers. Improved patient convenience due to faster treatment and early discharge lower costs due to LOS reduced susceptibility to hospital-acquired infections and improved insurance coverage are the various factors driving this demand. Apollo has established 12 such surgical Spectra centers across 8 cities in India thrusting itself as a market leader in this healthcare segment. SPECTRA 12 clinics Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 40 41

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Delivering preemie twins with tender loving care A young woman was having her mandatory pregnancy check-ups regularly at Cradle as she was carrying twin babies. Her obstetrician had warned her that she was at high risk of having premature babies because of her hypertension and blood sugar issues in her pregnancy. Her obstetrician tried to prolong her pregnancy as long as possible keeping the safety of both the mother and babies in mind and covered her with steroids electively. However in her 8 th month of pregnancy the patient’s blood pressure rose to very high levels and she had to be taken up for an emergency c-section. She delivered two tiny preemies weighing 1.3kg and 2.0kg respectively. The older twin weighing 2.0kg developed a severe breathing problem soon after birth and had to be put on respiratory support and given a medication to open up the lungs. He improved remarkably in a day and was removed from respiratory support. He was gradually started on feeds however he had problems of feed intolerance initially. The younger twin did not require any respiratory support but needed a central line for providing his mandatory nutrition intravenously. He was in the NICU for around 2 weeks following which he too was discharged. All follow-up evaluations were normal. Apollo Cradle was born out of our belief that childbirth is a celebration. One of the path breaking initiatives at Apollo Cradle is “Natural is Priceless”—an initiative to promote natural child birth. Our expert team renders impeccable maternity gynaecology neonatal paediatric and fertility services from a state of the art facility. Clinical excellence patient experience safety and trust are the keystones of our centre and we deliver joy through tender loving care in an environment that replicates the warmth and comfort of home. With advanced antenatal birthing post-partum neonatal and gynaecological services Apollo Cradle is a healthcare facility of international standards. CRADLE 8 clinics ‡ Robust patient transfer procedures International protocols of safety and efficiency ‡ State-of-the-art infrastructure ‡ Level 3 Neonatal Intensive Care Unit NICU ‡ Maternal Intensive Care Units MICU ‡ State-of-the-art Operation Theaters ‡ 3:1 nursing ratio Case Study A patient focused application the revolutionary NICU feed management system improves patient safety and recovery times. The mother’s milk is barcoded and stored eliminating mistakes in the baby feeds. The tool tracks the expiration of milk and identifies all feeding containers and storage locations. The system also improves nurse productivity as manual data entry is replaced with dynamic input. The application is integrated with the electronic patient records system. Barcoding breastmilk to ensure patient safety Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 42 43

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Consolidated Financial Performance Rupees million except for share data FY 2016 FY 2015 Growth Revenue from operations 60856 51785 18 Operating EBITDA Earnings before Interest Tax Depreciation 7823 7347 6 Operating EBIT Earnings before Interest Tax 5290 5230 1 Profit Before Tax 4164 4554 -9 Profit After Tax 3310 3399 -3 Earnings per share EPS-Basic ` 23.79 24.43 -3 Earnings per share EPS-Diluted ` 23.79 24.43 -3 Consolidated Financial Position Rupees million FY 2016 FY 2015 Application of funds 63817 54031 Fixed Assets 42082 36115 Goodwill 2120 1652 Non-current Investments 1980 1651 Net Current Assets Long term Advances 17501 14410 Deferred Tax Asset 134 203 Sources of Funds 63817 54031 Shareholders Funds 34536 31714 Minority Interest 1303 730 Loan funds and Long term Provisions/Liabilities 23001 17365 Deferred Tax Liability 4977 4222 includes cash and investment in liquid mutual funds of ` 4615 million in FY16 and ` 5151 million in FY 15 CAGR–18 Revenue 3243 3892 4659 5046 5230 5290 FY 16 FY 15 FY 14 FY 13 FY 12 FY 11 CAGR–10 EBIT 14.80 16.83 22.08 22.77 24.43 23.79 FY 16 FY 15 FY 14 FY 13 FY 12 FY 11 EPS Basic ` CAGR–10 CAGR–13 EBITDA 1839 2194 3044 3168 3399 3310 FY 16 FY 15 FY 14 FY 13 FY 12 FY 11 CAGR–12 PAT 14.37 16.30 21.88 22.77 24.43 23.79 FY 16 FY 15 FY 14 FY 13 FY 12 FY 11 EPS Diluted ` CAGR–11 SIX y ears at a glance All data in Rupees million except for share data FY 16 FY 15 FY 14 FY 13 FY 12 FY 11 26054 31475 37687 43842 51785 60856 FY 16 FY 15 FY 14 FY 13 FY 12 FY 11 4190 5131 6082 6724 7347 7823 Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 44 45

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FY 16 FY 15 FY 10 FY 05 FY 00 FY 95 457 2684 6621 20265 51785 60856 CAGR–26 Revenue FY 16 FY 15 FY 10 FY 05 FY 00 FY 95 63 278 384 1376 3399 3310 CAGR–21 PAT FY 16 FY 15 FY 10 FY 05 FY 00 FY 95 0.69 0.45 0.42 0.44 0.52 0.67 Debt / equity ratio CAGR–7 Discharges in ‘000s 265 281 313 332 354 374 ALOS 4.79 4.78 4.65 4.54 4.43 4.17 SAP EBITDA Margins 0.5 2.0 2.7 3.3 3.3 3.6 Occupancy 68 71 72 71 63 73 CAGR–9 ARPOB 18474 20455 21724 23684 25381 28036 Mature Stores Pre FY08 EBITDA Margins 3.6 4.6 5.3 5.6 5.9 6.8 Sust ained Growth Strong Operational Performance Bed Pharmacy Count FY 16 FY 15 FY 10 FY 05 FY 00 FY 95 127 715 1167 3006 7347 7823 CAGR–22 EBITDA FY 16 FY 15 FY 10 FY 05 FY 00 FY 95 538 4977 14643 45072 190490 184939 Market cap CAGR–32 Bed includes both owned managed hospitals Number of standalone pharmacies FY 16 FY 15 FY 14 FY 13 FY 12 FY 11 FY 16 FY 15 FY 14 FY 13 FY 12 FY 11 FY 16 FY 15 FY 14 FY 13 FY 12 FY 11 FY 16 FY 15 FY 14 FY 13 FY 12 FY 11 FY 16 FY 15 FY 14 FY 13 FY 12 FY 11 FY 16 FY 15 FY 14 FY 13 FY 12 FY 11 ` million ` million ` million ` million Operating beds Occupancy Rate in-patient discharges ` per day Days ALOS – Average Length of Stay ARPOB – Average Revenue per Occupied Bed FY 16 FY 15 FY 10 FY 05 FY 00 FY 95 750 1500 4000 7984 9215 9554 NA 25 170 1049 1822 2326 Plan to add another 1045 beds in the next 3 years Operating beds 4767 5153 5549 5811 6321 6724 Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 46 47

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Dr. Prathap C Reddy Founder and Executive Chairman Smt. Preetha Reddy Executive Vice Chairperson Smt. Suneeta Reddy Managing Director Smt. Shobana Kamineni Executive Vice Chairperson Smt. Sangita Reddy Joint Managing Director Shri. Rafeeque Ahamed Director Shri. N Vaghul Director Shri. Deepak Vaidya Director Shri. Raj Kumar Menon Director Shri. G Venkatraman Director Shri. Habibullah Badsha Director Shri. Sanjay Nayar Director Shri. Vinayak Chatterjee Director 49 Statutory Section Board Committees Audit Committee Nomination Remuneration Committee Stakeholders Relationship Committee Corporate Social Responsibility Committee Shri. Deepak Vaidya Chairman Shri. N.Vaghul Chairman Shri. Rajkumar Menon Chairman Dr. Prathap C Reddy Chairman Shri. G. Venkatraman Member Shri. Deepak Vaidya Member Smt. Preetha Reddy Member Smt. Preetha Reddy Member Shri. Rajkumar Menon Member Shri. G. Venkatraman Member Smt. Suneeta Reddy Member Shri N. Vaghul Member Shri. Rafeeque Ahamed Member Shri. G. Venkatraman Member Risk Management Committee Investment Committee Share Transfer Committee Smt. Suneeta Reddy Chairperson Shri. N. Vaghul Chairman Smt. Preetha Reddy Member Smt. Preetha Reddy Member Smt. Preetha Reddy Member Shri. Rajkumar Menon Member Shri. Vinayak Chatterjee Member Smt. Suneeta Reddy Member Shri. Rafeeque Ahamed Member Dr. Sathyabhama Member Shri. Deepak Vaidya Member Dr. K. Hariprasad Member Shri. Vinayak Chatterjee Member Corporate Information Senior Management Team Dr. K. Hariprasad President - Hospitals Division Shri. S.K. Venkataraman Chief Strategy Officer Shri. Krishnan Akhileswaran Chief Financial Officer Shri. S.M. Krishnan Vice President – Finance Company Secretary Auditors S. Viswanathan LLP Chartered Accountants Chennai - 600 004. Bankers Andhra Bank Axis Bank Bank of India Bank of Tokyo Canara Bank HDFC Bank HSBC ICICI Bank IDBI Bank IDFC Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce State Bank of Travancore Yes Bank Registered Office 19 Bishop Gardens Raja Annamalaipuram Chennai – 600 028 Corporate Office Sunny Side Building East Block 3rd Floor 8/17 Shafee Mohammed Road Chennai – 600 006 Administrative Office Ali Towers 55 Greams Road Chennai – 600 006. E investor.relationsapollohospitals.com W www.apollohospitals.com Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 48

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 50 51 Statutory Section Directors Report to the Shareholders Your Directors are pleased to present the THIRTY FIFTH ANNUAL REPORT and the audited financial statements for the year ended 31st March 2016. Financial Results Standalone ` in million For the year ended March 31 2016 March 31 2015 Income from operations 54091 45928 Profit before Extraordinary Items and Taxation 4778 4820 Provision for Taxation 827 1207 Net Profit before Extraordinary Item after Taxation 3951 3613 Exceptional Items 257 147 Net Profit after Exceptional Items 3694 3466 Balance of Profit brought forward 3144 3165 Profit Available for appropriations 6838 6631 Appropriations Dividend inclusive of dividend tax 1004 964 Transfer to General Reserve 2000 1500 Transfer to Debenture Redemption Reserve - 485 Amount charged off in accordance with the transitional provisions of the Companies Act 2013 - 539 Balance carried forward to the Balance Sheet 3834 3143 Results of Operations During the year under review the income from operations of the Company increased to `54091 million compared to `45928 million in the previous year registering an impressive growth of 18. The profit after tax for the year increased by 7 to `3694 million compared to `3466 million in the previous year. During the year under review the consolidated gross revenue of the Company increased to `60856 million compared to `51785 million in the previous year registering an impressive growth of 18. Net profit after minority interest for the group stood at `3310 million. Consolidated Financial Statements In accordance with the Companies Act 2013 “the Act” and Accounting Standard AS-21 on Consolidated Financial Statements read with AS-23 on Accounting for Investments in Associates and AS-27 on Financial Reporting of Interests in Joint Ventures the audited consolidated financial statements form part of the Annual Report. In terms of provision to sub section 3 of Section 129 of the Act the salient features of the financial statements of the Subsidiaries Associates and Joint Venture Companies are set out in the prescribed Form AOC-1 which forms a part of the Annual Report. In accordance with Section 136 of the Act the audited financial statements including the consolidated financial statements of the Company and audited accounts of the subsidiaries are available at company’s website www.apollohospitals.com. The documents will also be available for inspection during business hours at the registered office of the Company. Dividend During the year your Company declared an interim dividend of `6.00 per equity share. Your Directors have considered it financially prudent in the long-term interests of the Company to reinvest the profits into the business of the Company to build a strong reserve base and grow the business of the Company. No final dividend has therefore been recommended for the year ended March 31 2016. Transfer of Reserves Your Company proposes to transfer `2000 million to the general reserves out of the amount available for appropriations. An amount of `3834 million is proposed to be retained in the profit and loss account. Credit Rating CRISIL has rated the company’s debt instruments as AA indicating a high degree of safety. India Ratings and Research Ind-RA a Fitch Group Company has assigned the Company’s long term debt and Non-Convertible Debentures NCDs an IND AA+ Rating with a stable outlook. Subsidiaries Associate Companies and Joint Ventures. At the beginning of the year your Company had twelve direct subsidiaries and five step down subsidiaries seven joint ventures and three associate companies. As on 31st March 2016 your Company has sixteen direct subsidiaries and five step down subsidiaries six joint ventures and three associate companies. The statement containing the summarized financial position of the subsidiary companies viz. Apollo Home Healthcare I Ltd formerly known as Unique Home Healthcare Limited AHHCL AB Medical Centres Limited ABMCL Samudra Healthcare Enterprises Limited SHEL Apollo Hospital UK Limited AHUKL Apollo Hospitals Singapore Pte Limited AHSPL Apollo Health and Lifestyle Limited AHLL Western Hospitals Corporation Pvt Limited WHCPL Total Health TH Apollo Healthcare Technology Solutions Limited AHTSL Imperial Hospital and Research Centre Limited IHRCL Apollo Home Healthcare Limited AHHL Apollo Nellore Hospital Limited ANHL Sapien Bio Sciences Pvt Limited SBPL Apollo Rajshree Hospitals Pvt Limited ARHL Apollo Lavasa Health Corporation Limited ALHCL Assam Hospitals Limited AHL Apollo Cosmetic Surgical Centre Pvt Limited ACSPL Apollo Sugar Clinics Limited ASCL Akeso Healthcare Private Limited AKESO Alliance Dental Care Limited ADCL and Apollo Dialysis Private Limited ADPL pursuant to Section 129 and Rules 5 of the Companies Accounts Rules 2014 is contained in Form AOC-1 which forms part of the Annual Report. Apollo Home Healthcare India Limited AHHCL Formerly known as Unique Home Healthcare Limited AHHCL a wholly owned subsidiary of the Company provides medical and paramedical services including doctor’s consultation physiotherapy direct to patient homes and also offers paramedical services in hospitals to critically ill patients. During the year AHHCL recorded a revenue of `12.53 million and net profit of `0.11 million.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 52 53 Statutory Section AB Medical Centres Limited ABMCL ABMCL a wholly owned subsidiary of the Company does not have any commercial operations as it has leased out its infrastructure viz. land and building to the company for running a hospital. For the year ended 31st March 2016 ABMCL recorded an income of `6.79 million and a net profit of `4.66 million. Samudra Healthcare Enterprises Limited SHEL SHEL a wholly owned subsidiary of the company runs a 120 bed multi speciality hospital at Kakinada. For the year ended 31st March 2016 SHEL recorded an income of `266.40 million and a net profit of `4.49 million. Apollo Health and Lifestyle Limited AHLL AHLL is a 99.29 subsidiary of the Company is engaged in the business of providing primary healthcare facilities through a network of owned/franchised clinics across India offering specialist consultations diagnostics preventive health checks telemedicine facilities and a 24-hour pharmacy all under one roof. For the year ended 31st March 2016 AHLL recorded an income of `2000.13 million and a net loss of `56.86 million. Western Hospitals Corporation Private Limited WHCPL WHCPL a wholly owned subsidiary of the Company for the year ended 31st March 2016 recorded an income of `14.44 million and a net profit of `9.60 million. Total Health TH TH a wholly owned subsidiary of the Company registered under Section 8 of the Companies Act 2013 is engaged in carrying on CSR activities in the field of community/rural development. Apollo Healthcare Technology Solutions Limited AHTSL AHTSL a wholly owned subsidiary of the Company is in the process of setting up the Proton Therapy Centre in Chennai which will be the first of its kind in the Southern Hemisphere and offering advanced oncology care. AHTSL is yet to commence operations. Apollo Hospital UK Limited AHUKL AHUKL is a wholly owned foreign subsidiary of the Company and has not yet commenced its operations. Apollo Hospitals Singapore Pte Limited AHSPL AHSPL is a wholly owned subsidiary of the Company and has not yet commenced its operations. Imperial Hospital and Research Centre Limited IHRCL IHRCL a 90 subsidiary of the company owns a 240 bed multi-specialty hospital at Bengaluru. For the year ended 31st March 2016 IHRCL recorded an income of `1839.90 million and a net profit of `61.70 million. Apollo Home Healthcare Limited AHHL AHHL a 80.87 subsidiary of the Company is engaged in the business of providing high quality personalized and professional healthcare services at the doorsteps of the patients. AHHL recorded revenues of `59.88 million and a net loss of `113.64 million. Apollo Nellore Hospital Limited ANHL ANHL has leased out its land at Nellore to the Company. ANHL recorded revenues of `8.01 million and a net profit of `6.18 million. Sapien Biosciences Pvt Ltd SBPL SBPL is a 70 subsidiary of the company which is engaged in the business of bio-banking of tissues. For the year ended 31st March 2016 SBPL recorded revenues of `5.95 million and a net loss of `10.37 million. Apollo Rajshree Hospitals Pvt Ltd ARHL ARHL a 57.27 subsidiary of the company runs a multi speciality hospital at Indore. For the year ended 31st March 2016 ARHL recorded an income of `201.70 million and a net loss of `83.87 million. Apollo Lavasa Health Corporation Limited ALHCL ALHCL a 51 subsidiary of the company runs a hospital at Lavasa. For the year ended 31st March 2016 ALHCL recorded an income of `7.20 million and a net loss of `39.45 million. Assam Hospitals Limited AHL AHL a 51 subsidiary of the company runs a multi speciality hospital at Guwahati. For the year ended 31st March 2016 AHL recorded an income of `869.55 million and a net profit of `18.00 million. Apollo Sugar Clinics Limited ASCL ASCL a subsidiary company of Apollo Health and Lifestyle Limited is engaged in the business of running diabetes management centres. For the year ended 31st March 2016 ASCL recorded an income of `190.46 million and a net loss of `171.01 million. Apollo Cosmetic Surgical Centre Pvt Ltd ACSPL ACSPL a subsidiary company of Apollo Health and Lifestyle Limited is engaged in the business of running cosmetic surgical centres. For the year ended 31st March 2016 ACSPL recorded an income of `12.24 million and a net loss of `10.11 million. Akeso Healthcare Private Limited AKESO AKESO a wholly owned subsidiary company of Apollo Health and Lifestyle Limited is engaged in the business of healthcare services. For the year ended 31st March 2016 it recorded an income of `45.86 million and a net loss of `0.62 million. Alliance Dental Care Limited ADCL ADCL a subsidiary of Apollo Health and Lifestyle Limited is engaged in the business of running dental clinics. For the year ended 31st March 2016 ADCL recorded a revenue of `382.34 million and a net loss of `62.68 million.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 54 55 Statutory Section Apollo Dialysis Pvt Ltd ADPL ADPL a subsidiary of Apollo Health and Lifestyle Limited is engaged in the business of running dialysis centres. For the year ended 31st March 2016 ADPL recorded a revenue of `49.13 million and a net loss of `6.30 million. Corporate Governance The Company is committed to maintain the highest standards of corporate governance and adhere to the corporate governance requirements set out by SEBI. The report on corporate governance as required under the Securities Exchange Board of India Listing Obligations and Disclosure Requirements Regulations 2015 hereinafter Listing Regulations forms an integral part of this report. The requisite certificate from the Auditors of the Company confirming compliance with the conditions of corporate governance is attached to the report on Corporate Governance. Management’s Discussion and Analysis Report Management’s Discussion and Analysis Report for the year under review as stipulated under Regulation 34 of the Listing Regulations is presented in a separate section forming part of the Annual Report. Business Responsibility Report The SEBI’s Listing Regulations mandates inclusion of the Business Responsibility Report BRR as part of the Annual Report for top 500 listed entities based on market capitalisation. In compliance with the regulation BRR is presented in a separate section forming part of the Annual Report. Sexual Harassment The Company has adopted a policy on prevention prohibition and redressal of sexual harassment at the workplace in line with the provisions of the Sexual Harassment of Women at Workplace Prevention Prohibition and Redressal Act 2013 and the rules framed thereunder. The Company received 3 complaints under the policy all of which were disposed off. Vigil Mechanism/Whistle Blower Policy The Company has established a vigil mechanism for Directors and Employees to report their genuine concerns the details of which are given in the Corporate Governance Report. The policy on Vigil Mechanism and Whistle Blower Policy has been posted on the website of the Company www.apollohospitals.com. Particulars of Loans Guarantees and Investments The details of Loans Guarantees and Investments covered under the provisions of Section 186 of the Companies Act 2013 are given in the notes to the Financial Statements. Fixed Deposits During the financial year your company had not accepted deposits from the public. The total outstanding deposits with the Company as on 31st March 2016 were `273.41 million `339.27 million as on 31st March 2015 which include deposits for an aggregate value of `18.87 million `1.49 million as on 31st March 2015 not claimed by the depositors. Directors and other Key Managerial Personnel KMPs Board Composition and Independent Directors The Board consists of the Executive Chairman four Executive directors and eight Independent directors. Independent directors are appointed for a term of five years and are not liable to retire by rotation. All Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 1496 of the Companies Act 2013 and Regulation 16 b of the SEBI Listing Regulations. Retirement by Rotation Pursuant to Section 152 of the Companies Act 2013 Smt.Shobana Kamineni Director retires by rotation at the ensuing Annual General Meeting and being eligible offers herself for re-appointment. Key Managerial Personnel Pursuant to the provisions of Section 203 of the Companies Act 2013 the Key Managerial Personnel of the Company are Smt. Suneeta Reddy Managing Director Shri. Krishnan Akhileswaran Chief Financial Officer and Shri. S.M. Krishnan Company Secretary. There has been no change in the Key Managerial Personnel during the year. Board Evaluation Pursuant to the provisions of the Companies Act 2013 and in terms of Regulation 1710 of the SEBI Listing Regulations the Board has carried out an annual performance evaluation of its own performance the directors individually as well as the evaluation of the working of the Audit and the Nomination Remuneration Committees. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report. Remuneration Policy The Board has on the recommendation of the Nomination Remuneration Committee approved a policy for selection and appointment of Directors Senior Management and their remuneration. The Remuneration Policy is stated in the Corporate Governance Report. Meetings of the Board The Board met five times during the financial year the details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act 2013. Risk Management The Board of Directors had constituted a Risk Management Committee to identify elements of risk in different areas of operations and to develop a policy for actions associated to mitigate the risks. The Committee on a timely basis informed the members of the Board of Directors about risk assessment and minimization procedures and in the opinion of the Committee there was no risk that may threaten the existence of the Company. The details of the Risk Management Committee are included in the Corporate Governance Report. Internal Financial Controls and their Adequacy The Company has an Internal Control System commensurate with the size scale and complexity of its operations. The scope and authority of the Internal Audit IA function is defined in the Internal Audit Charter. To maintain

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 56 57 Statutory Section its objectivity and independence the Internal Audit function reports to the Chairman of the Audit Committee of the Board. The details of the internal control system and its terms of reference are set out in the Management Discussion and Analysis Report forming part of the Board’s Report. The Directors had laid down internal financial controls to be followed by the Company and the policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business including adherence to the Company’s policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information. The Audit Committee evaluates the internal financial control systems periodically. Significant and Material Orders passed by the Regulators or Courts. There are no significant material orders passed by the Regulators / Courts which would impact the going concern status of the Company and its future operations. Directors’ Responsibility Statement Pursuant to Section 1345 of the Companies Act 2013 the Board of Directors to the best of their knowledge hereby state and confirm: a. that in the preparation of the annual financial statements for the year ended March 31 2016 the applicable accounting standards have been followed along with proper explanations relating to material departures if any b. that such accounting policies have been selected and applied consistently and judgement and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31 2016 and of the profit of the Company for the year ended on that date c. that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities d. that the annual financial statements have been prepared on a going concern basis e. that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively. f. that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively. Share Capital The paid up Equity Share Capital as on March 31 2016 was `695.63 Million. During the year under review the Company has not issued shares with differential voting rights nor granted stock options nor sweat equity. As on March 31 2016 the details of the shareholding by the Directors of the Company are set out in the Corporate Governance Report forming part of the Board’s Report and none of the directors hold convertible instruments of the Company. Rights Issue The Board at its meeting held on 28th May 2015 approved the proposal to undertake an issue of equity shares to the existing shareholders on a Rights basis of a sum of upto `7500 million. The purpose of the Rights Issue was to raise long term equity capital for the Company. The Company is awaiting necessary approvals for going ahead with the Rights Issue. Contracts and Arrangements with Related Parties All contracts/arrangements/transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on an arm’s length basis. During the year the Company had not entered into any contract/arrangement/transaction with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions. The Policy on materiality of related party transactions and dealing with related party transactions as approved by the Board may be accessed on the Company’s website www.apollohospitals.com. Your Directors draw the attention of the members to the Notes to the financial statements which sets out related party disclosures. None of the Directors have any pecuniary relationships or transactions vis-à-vis the Company. Particulars of Employees and related disclosures In terms of the provisions of Section 19712 of the Companies Act 2013 read with Rules 52 and 53 of the Companies Appointment and Remuneration of Managerial Personnel Rules 2014 a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said Rules is provided in the Annual Report. Disclosures pertaining to remuneration and other details as required under Section 19712 of the Companies Act 2013 read with Rule 51 of the Companies Appointment and Remuneration of Managerial Personnel Rules 2014 are provided in the Annual Report. Having regard to the provisions of Section 1361 read with the relevant provisions of the Companies Act 2013 the Annual Report excluding the aforesaid information is being sent to the members of the Company. The said information is available for inspection at the Registered Office of the Company during working hours and any member interested in obtaining such information may write to the Company Secretary and the same will be furnished free of cost. Employee Stock Options No Employee Stock Options have been given to the employees of the Company and thus no disclosure is required. Corporate Social Responsibility Initiatives As part of its initiatives under Corporate Social Responsibility CSR the Company has undertaken projects in the areas of Rural Development Education and Health. These projects are in accordance with Schedule VII of the Companies Act 2013. The Report on CSR activities for the financial year 2015-16 is annexed herewith as “Annexure A”. Statutory Auditors The Auditors S. Viswanathan LLP Chartered Accountants retire at the ensuing Annual General Meeting and have confirmed their eligibility and willingness to accept office if reappointed. The Audit Committee and the Board recommend the re-appointment of S. Viswanathan LLP Chartered Accountants as Auditors of the Company to hold office till the conclusion of the next Annual General Meeting. It may please be noted that this would be the last year of appointment of the existing Statutory Auditor under the transitional provisions contained in the Companies Act 2013. The Company engages the services of the Big Four consulting firms on compliance regulatory and tax matters including enterprise risk management review of internal financial controls which also covers Information Technology related controls etc and provides periodic updates to the Board on an ongoing basis .

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 58 59 Statutory Section Cost Auditors Pursuant to Section 148 of the Companies Act 2013 read with The Companies Cost Records and Audit Amendment Rules 2014 your Directors had on the recommendation of the Audit Committee appointed M/s. Raman Associates Cost Accountants Chennai ICWA Registration No.000050 to audit the cost accounts of the Company for the financial year 2016-17 on a remuneration of `1.50 million. As required under the Companies Act 2013 the remuneration payable to the cost auditor is required to be placed before the Members in a general meeting for their ratification. Accordingly a resolution seeking Member’s ratification for the remuneration payable to M/s. Raman Associates Cost Accountants Chennai ICWA Registration No.000050 is included at Item No. 8 of the Notice convening the Annual General Meeting. Secretarial Auditors The Board has appointed Smt. Lakshmmi Subramanian Senior Partner M/s. Lakshmmi Subramanian Associates a firm of Company Secretaries in Practice to conduct Secretarial Audit for the financial year 2015-2016. The Secretarial Audit Report for the financial year ended March 31 2016 is annexed herewith as “Annexure B”. The Secretarial Audit Report does not contain any qualification reservation or adverse remark. Statutory Auditors and Secretarial Auditors Report The Directors hereby confirm that there is no qualification reservation or adverse remark made by the statutory auditors of the company or in the secretarial audit report by the practicing company secretary for the year ended 31st March 2016. Particulars regarding Conservation of Energy Technology Absorption and Foreign Exchange Earnings and Outgo. Information as required to be disclosed on conservation of energy technology absorption and foreign exchange earnings and outgo stipulated under Section 1343m of the Companies Act 2013 read with Rule 8 of The Companies Accounts Rules 2014 is annexed herewith as “Annexure C”. Extract of Annual Return The details forming part of the extract of the Annual Return in Form MGT-9 is annexed herewith as “Annexure D”. Acknowledgement Your Directors wish to place on record their appreciation of the contribution made by the employees at all levels towards the continued growth and prosperity of your Company. Your Directors also wish to place on record their appreciation of business constituents banks and other financial institutions and shareholders of the Company for their continued support. For and on behalf of the Board of Directors Place : Chennai Dr. Prathap C Reddy Date : 25th May 2016 Executive Chairman Annexure - A to the Directors’ Report Report on Corporate Social Responsibility CSR activities for the financial year 2015 - 2016. 1 A brief outline of the Company’s CSR policy including overview of projects or programmes proposed to be undertaken and a reference to the web-link to the CSR policy and projects or programmes. Your Company has undertaken CSR activities during the year to create a meaningful and lasting impact on the communities in remote areas by helping them transcend barriers of socio-economic development. Your company wishes to extend comprehensive integrated healthcare services to the community. Your company is also committed to developing the skills of the youth through high quality education and research in healthcare services. Your company continues to focus on the CSR activities under the following broad segments : 1. Rural Development 2. Healthcare 3. Education and Skills Development 4. Research in Healthcare 5. Disaster Management The CSR Policy can be assessed on the company’s website. Weblink: https://www.apollohospitals.com/apollo_pdf/csr-policy.pdf 2 Composition of the CSR Committee: • Dr. Pr athap C Reddy Chairman • Smt. Preetha Reddy • Shr i. N. V aghul and • Shr i.G.Venkatr aman 3 Average net profit of the Company for the last three financial years: `4321.98 million 4 Prescribed CSR Expenditure two percent of the amount as in item 3 above: `86.44 million 5 Details of CSR spent for the financial year 2015 -2016 Total Amount to be spent for the financial year `86.44 million Amount unspent if any Nil 6 Manner in which the amount was spent during the financial year is detailed below : The Company undertook CSR activities in line with the CSR policy approved by the Board of Directors focussing on the following themes. 1. Rural Development. 2. Healthcare encompassing free health screening camps. 3. Education and Skill Development.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 60 61 Statutory Section Manner in which the amount was spent during the financial year is detailed below: Sl No. CSR Project or activity identified Sector in which the project is covered Projects or Programs 1 Local area or other 2 Specify the State and district where Projects or Programs were undertaken Amount of Outlay Budget project or program wise ` in million Amount spent on the project or programs ` in million Cumulative Expenditure upto the reporting period ` in million Amount spent directly or through implementing agency 1 Providing safe drinking water Extension of Sanitation facilities Setting up of Nutrition Centres Vocational Training Centres facilitating skill development training Mobile Medical Units – primary and preventive health care including diagnostics Promotion and revival of rural sports Rural Development Andhra Pradesh Chittoor District Aragonda 80.00 8.34 27.89 Implementing Agency: Total Health 2 Education and other related Initiatives Promoting education Andhra Pradesh Chittoor District Aragonda 30.00 5.50 16.02 Implementing Agency : Aragonda Apollo Medical and Educational Research Foundation 3 Health Check-ups - Free Medicines and Medical Check- ups for poor people Health Care activities Health awareness camps for primary and preventive healthcare including diagnostics. Promoting healthcare including preventive care Free medical Clinics at: 1. Tirumala Tirupathi Devasthanam TTD Tirupathi Andhra Pradesh. 2. Koyambedu Bus Stand Chennai. 3. Research Centre at Tambaram Chennai. 4. Rural Community Centre Ayanambakkam Chennai. 5. Medical Camp at Sabarimala Pamba Pathanamthitta District Kerala. 73.35 34.60 73.35 Direct Sl No. CSR Project or activity identified Sector in which the project is covered Projects or Programs 1 Local area or other 2 Specify the State and district where Projects or Programs were undertaken Amount of Outlay Budget project or program wise ` in million Amount spent on the project or programs ` in million Cumulative Expenditure upto the reporting period ` in million Amount spent directly or through implementing agency 4 Free Medical Treatment for children ailing from heart diseases. Promoting healthcare including preventive care Tamil Nadu Chennai 7.83 2.50 7.83 Implementing Agency: Save a Child’s Heart Initiative registered under the Trust Act. 5 Free Medical Treatment for children with hearing impairment Promoting healthcare including preventive care Andhra Pradesh Hyderabad 2.50 2.50 2.50 Implementing Agency: Society to Aid the Hearing Impaired registered under the Trust Act. 6 Free Medicines to Geriatric Centers Promoting healthcare including preventive care Tamil Nadu Chennai 2.70 2.70 2.70 Implementing Agency: Direct 7 Donation to Tamil Nadu Chief Minister Fund for Flood Relief Disaster Management Tamil Nadu 30.00 30.00 30.00 Implementing Agency: Government of Tamil Nadu 8 Swach Bharat Initiatives Community Development - 3.56 - 3.56 Implementing Agency : Society to Heal Aid Restore Educate 9 Eradication of Child Poverty Community development Andhra Pradesh 0.30 0.30 0.30 Implementing Agency: Magic Bus Foundation Total 230.24 86.44 164.15 Responsibility Statement by the Corporate Social Responsibility Committee: The implementation and monitoring of the CSR Policy is in compliance with the CSR objectives and policy of the Company. Sd/- sd/- Dr. Prathap C Reddy Suneeta Reddy Chairman CSR Committee Managing Director Place : Chennai Date : 25th May 2016

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 62 63 Statutory Section Annexure - B to the Directors’ Report Secretarial Audit Report To the Members Apollo Hospitals Enterprise Limited No. 19 Bishop Gardens Raja Annamalaipuram Chennai - 600 028 We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Apollo Hospitals Enterprise Limited hereinafter called the Company. Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon. Based on our verification of the Company’s books papers minute books forms and returns filed and other records maintained by the Company and also the information provided by the Company its officers agents and authorized representatives during the conduct of secretarial audit We hereby report that in our opinion the Company has during the audit period covering the financial year ended on 31st March 2016 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance mechanisms in place to the extent in the manner and subject to the reporting made hereinafter: We have examined the books papers minute books forms and returns filed and other records maintained by Apollo Hospitals Enterprise Limited “the Company” for the financial year ended on 31st March 2016 according to the provisions as applicable to the Company during the period of audit: i The Companies Act 2013 “the Act” and the rules made thereunder and the Companies Act 1956 to the extent applicable ii The Securities Contracts Regulation Act 1956 ‘SCRA’ and the rules made thereunder iii The Depositories Act 1996 and the Regulations and Bye-laws framed thereunder iv Foreign Exchange Management Act 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment Overseas Direct Investment and External Commercial Borrowings v The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act 1992 ‘SEBI Act’: a The Securities and Exchange Board of India Substantial Acquisition of Shares and Takeovers Regulations 2011 Secretarial Audit Report for the financial year ended 31st March 2016 Pursuant to section 2041 of the Companies Act 2013 and Rule No.9 of the Companies Appointment and Remuneration Personnel Rules 2014 b The Securities and Exchange Board of India Prohibition of Insider Trading Regulations 1992 and Securities and Exchange Board of India Prohibition of Insider Trading Regulations 2015 applicable with effect from 15th May 2015 c The Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations 2009 and amendments from time to time d The Securities and Exchange Board of India Issue and Listing of Debt Securities Regulations 2008 e The Securities and Exchange Board of India Registrars to an Issue and Share Transfer Agents Regulations 1993 regarding the Companies Act and dealing with clients to the extent of securities issued f The Listing Agreements entered into by the Company with the Stock Exchanges where the securities of the Company are listed and the uniform listing agreement with the said stock exchanges pursuant to the provisions of the SEBI Listing Obligations and Disclosure Requirements Regulations 2015 applicable with effect from 1 December 2015. g Secretarial Standards with respect to Meetings of the Board of Directors SS-1 and General Meetings SS-2 issued by the Institute of Company Secretaries of India applicable with effect from 1 July 2015. It is reported that during the period under review the Company has been regular in complying with the provisions of the Act Rules Regulations Guidelines and Standards etc. as mentioned above. We further report that there were no actions/events in the pursuance of a The Securities and Exchange Board of India Share Based employee Benefits Regulations 2014 and the Employees Stock Option Scheme 2007 approved under the provisions of the Securities and Exchange Board of India Employee Stock Option Scheme and Employee Stock Purchase Scheme Guidelines 1999 b The Securities and Exchange Board of India Delisting of Equity Shares Regulations 2009 c The Securities and Exchange Board of India Buyback of Securities Regulations 1998 requiring compliance thereof by the Company during the financial year under review. We further report that on examination of the relevant documents and recordsthe Company has been regular in complying with the provisions of the Act Rules Regulations etc. as mentioned below and has adequate systems to monitor and ensure the compliance including the process of renewal/fresh/pending applications with Government Authorities of the following laws specifically applicable to the Company 1 Atomic Energy Act 1962 2 Birth and Death and Marriage Registrations Act 1886 3 Blood Bank Regulations under Drugs and Cosmetics Act 1940 4 Clinical Thermometers Quality Control Order 2001 5 Dentists Act 1948 6 Drugs and Cosmetics Act 1940 7 Drugs and Cosmetics Rules 1945 8 Drugs and Magic Remedies Objectionable Advertisements Act 1954 9 Drugs and Magical Remedies Rules 1955

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 64 65 Statutory Section 10 Epidemic Diseases Act 1897 11 Ethical guidelines for Biomedical Research on Human Subjects 12 Excise Permit For Storage of Spirit under Central Excise Act 1956 13 Infant Milk Substitute Feeding Bottles and Infant Foods Regulation of Production Supply and Distribution Act 1992 14 Infant Milk Substitute Feeding Bottles and Infant Foods Regulation of Production Supply and Distribution Rules 1993 15 Legal Metrology Act 2009 16 Legal Metrology Rules 2011 17 Medical Termination of Pregnancy Act 1971 18 Medical Termination of Pregnancy Regulations 1976 19 Medical Termination of Pregnancy Rules 1975 20 NACO Guidelines. 21 Mental Health Act 1987 22 Narcotic Drugs and Psychotropic Substances Rules 1985 23 Narcotic Drugs and Psychotropic Substances Act 1985 24 Pharmacy Act 1948 25 Poisons Act 1919 26 Poisons Rules state specific 27 Pre Conception and Prenatal Diagnostic Techniques Act 1994 28 Pre Conception and Prenatal Diagnostic Techniques Rules 1996 29 Prevention of Illicit Traffic in Narcotics Drugs Act 1988 30 Prohibition of Smoking Act 2008 31 Static and Mobile Pressure vessels unfired Rules 1981 32 The Bio Medical Waste Management and Handling Rules 1998 33 Transplantation of Human Organs Act and Rules 1994 34 Clinical Establishments and Registration Act 2010/ State Private Clinical Establishment Registration Act We further report that based on the information provided by the Company its officers and authorized representatives during the conduct of the audit and also on the review of quarterly compliance reports by respective department heads / company secretary taken on record by the Board of Directors of the Company in our opinion adequate systems and processes and control mechanism exist in the Company to monitor and ensure compliance with applicable other general laws including Industrial Laws Environmental Laws Human Resources and labour laws. We further report that the compliance by the Company of applicable financial laws like direct and indirect tax laws has not been reviewed in this Audit since the same have been subject to review by the statutory financial auditor and other designated professionals. We further report that The Board of Directors of the Company is well constituted with a proper balance of Executive Directors Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act. Adequate notice is given to all directors to schedule the Board Meetings agenda and detailed notes on agenda were delivered and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting. All decisions at Board Meetings and Committee Meetings are carried out unanimously as recorded in the minutes of the meetings of the Board of Directors or Committees of the Board as the case may be. We further report that during the audit period no events other than the following have occurred during the year which have a major bearing on the Company’s affairs • The company dur ing the f inanc ial year under rev iew has passed a Boar d resol ut ion for Rights Issue and the same is under process. • The NCDs which was pr i vatel y placed earlier amount ing to `1250 million was repaid in full and satisfaction of charge was filed with ROC on 30th December 2015. • T wo mult i-spec iali ty hospi tals at Mal leswar am Bangalore and Vishakapatnam were inaugur ated dur ing the year under review. • The fol low ing companies have become subsid iar ies to AHEL dur ing the year 2015-2016 1. Apollo Lavasa Health Corporation Ltd 2. Apollo Healthcare Technology Solutions Ltd 3. Assam Hospitals Ltd 4. Apollo Home Healthcare Ltd 5. Apollo Hospitals Singapore Pte Ltd • Names o f the Subsid iar ies which have been liqu idated/ sol d or ceased to become subsid iar ies dur ing the year 1. As per the Scheme of Arrangement approved by Hon’ble High Court of Madras the Dialysis Division of Alliance Medicorp I Ltd was demerged into Apollo Dialysis Private Limited and the remaining undertaking was amalgamated with Alliance Dental Care Limited. Alliance Medicorp I Limited shall stand dissolved without being wound up. 2. The Company has transferred its entire equity stake in Alliance Dental Care Limited and Apollo Dialysis Private Limited to its subsidiary Apollo Health and Lifestyle Limited. For LAKSHMMI SUBRAMANIAN ASSOCIATES Sd/- Lakshmmi Subramanian Senior Partner Place : Chennai FCS No. 3534 Date : 25th May 2016 C.P.No. 1087 Note: This report should be read with the letter of even date by the Secretarial Auditors attached herewith.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 66 67 Statutory Section ANNEXURE The Members Apollo Hospitals Enterprise Limited No. 19 Bishop Gardens Raja Annamalaipuram Chennai - 600 028 1. Maintenance of secretarial records is the responsibility of the management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit. 2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the secretarial records. The verification was done on a random test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices we followed provide a reasonable basis for our opinion. 3. We have not verified the correctness and appropriateness of financial records and books of accounts of the Company. 4. Where ever required we have obtained the Management representation about the compliance of laws rules and regulations and occurrence of events . 5. The compliance of the provisions of Corporate and other applicable laws rules regulations standards is the responsibility of the management. Our examination was limited to the verification of procedures on a random test basis. 6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company. For LAKSHMMI SUBRAMANIAN ASSOCIATES Sd/- Lakshmmi Subramanian Senior Partner Place : Chennai FCS No. 3534 Date : 25th May 2016 C.P.No. 1087 Conservation of Energy The operations of the Company are not energy-intensive. However significant measures are being taken to reduce the energy consumption by using energy-efficient equipment. Your Company constantly evaluates and invests in new technology to make its infrastructure more energy efficient. The following energy saving measures were adopted during the year 2015-2016. • Phasing out o f CFL lamps to LED lights. • Procurement o f electr ic i ty f rom alternat i ve source - WEG. • Opt imizat ion o f fuel consumpt ion in boiler oper at ions. • Introduct ion o f t imer based oper at ion o f Air handling Uni ts to reduce power consumpt ion. • Introduc ing o f micro processing energy saver for AHU Motors. • Energy opt imizat ion pr act ices implemented in T r ansformer oper at ion. • VFD instal lat ion for AHU motor in a phased manner. • A l l Li fts and OT AHUs are oper ated w i th VFD panels. • Introduced t imer control for AHU motor’ s to reduce running hours. As energy costs comprise a very small portion of your Company’s total expenses the financial implications of these measures are not material. Technology Absorption Over the years your Company has brought into the country the best that the world has to offer in terms of technology. In its continuous endeavour to serve the patients better and to bring healthcare of international standards within the reach of every individual your Company has introduced the latest technology in its hospitals. 1 Indigenous technology absorption- In an effort to promote indigenous technology absorption the following equipments have been installed at various Apollo Hospital locations. a Blood bank equipment including Deep freezer Blood bank refrigerator Platelet agitator/incubator Blood collection monitor and Tube sealer. b Digital radiography system. Annexure - C to the Directors’ Report Energy Conservation Technology Absorption and Foreign Exchange Earnings and Outgo

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 68 69 Statutory Section c Neonatal infant care equipment including Infant care warmer/ incubator Transport Incubator CPAP unit and LED Phototherapy unit. d Fluoroscopy unit. e Reverse osmosis plant for haemodialysis. 2. The benefit accrued due to this is primarily cost reduction from import substitution considering the impact of exchange rate fluctuation and revision of customs duty tariffs. The performance and quality of these equipments have been found to be quite satisfactory. a MRI system Philips model Ingenia 3Tesla – The Philips system utilizes dStream architecture for high signal to noise ratio for better image quality. Other features include better magnet homogeneity and linearity power saving technology and multi transmit technology for reduction of dielectric shading and local specific absorption rate. Personalised and automated exams and better workflow add to patient comfort. In-bore experience comfort tone and auto voice enable patients to overcome claustrophobia during scanning. b Cathlab Philips model Allura Clarity FD20 - This latest model cathlab is suitable for both cardiac and neuro vascular applications . With powerful image processing technology it offers enhanced image quality at a fraction of the dose in earlier models. With the ceiling suspended gantry this model provides free floor space for better workflow. 3D Rotational Angiography and Roadmap offer useful interventional tools. Instant stent boost subtract and large screen display enable better visualization of stent placements. c CT scanner Philips model Ingenuity 128 slice – This model utilizes the latest generation nano panel detector for low noise low dose and low energy imaging ensuring high image quality . Other unique features include ECG dose modulation for dose reduction adaptive pitch selection for optimal temporal resolution and breath hold step and shoot for low dose and high quality cardiac imaging and beat to beat variable delay algorithm for consistent tracking of the physiologic cardiac phase. d CT scanner Siemens model Somatom Definition AS+ 128 slice – This model has a large 78cm gantry bore for ensuring maximum comfort to patients during scanning. The high power Straton tube and generator and UFC detector enable very good image quality. With SAFIRE dose algorithm substantial dose reduction is possible in addition to low pediatric dose levels. In addition to multispecialty software the system offers dual energy applications as well. e Neurosurgical operating microscope Leica model OH6 - This has unique fusion optics technology for ideal combination of high resolution and depth of focus. This model has a high working distance dual xenon lamps and power supplies for fail safe operation. The fluorescence module can be inbuilt and with special filters the system can be used for visualization of tumor and vasculature. f Digital mammography system – Siemens model Mammomat Inspiration has a flexible modular platform for screening 3D stereo biopsy diagnosis and is upgradable to 3D tomosynthesis. The unique OPCOMP feature ensures optimal compression without causing discomfort to patients and OPDOSE feature ensures optimal dose with best image quality. g Mobile digital radiography system Philips model Diagnost Opta - This Philips model offers quality digital images that can be acquired quickly and transferred to PACS. It is easy to manoeuvre and has a wide range of anatomical programs. Reduced patient wait times better results and bedside point of care are enabled. h Getinge CSSD equipment- The latest generation sterilizers from Getinge Sweden are being launched for the first time in India at Apollo. The sterilizers are built on modular technology with touch panels on both loading and unloading side for ease of operation. They are incorporated with Corian panel which is non-porous anti-microbial and hygienic. The sterilizers operate with reduced power and water and faster cycle times. They have an auto-start up system which ensures that the sterilizers are ready for operation before the CSSD staff arrive in the Department. Similarly the Turbo range of washer disinfectors feature a multi-tasking system to save process time energy water space and operating costs. i Extracorporeal photo chemotherapy - This technology has been introduced at Apollo Hospitals from the leaders in the field- Macopharma France. This cellular therapy process is useful for treatment of various disorders such as cutaneous T-cell lymphoma Graft versus host disease acute and chronic after allogenic bone marrow transplantation organ transplant rejection and autoimmune disorders. The principle of ECP is based on exposure of peripheral blood to a photosensitizing agent and Ultra violet illumination. Mononuclear cells are harvested by cytapheresis and reinfused to the patient after UVA illumination. This off-line technique is cost effective and improves the treatment efficacy for pediatric and low weight patients. j Tomo ther apy system - In order to augment the multiple radiotherapy technologies available in the Apollo Hospitals Group Tomotherapy system has been ordered and is under installation at Apollo Hyderabad. Tomotherapy uses daily CT imaging to guide treatments based on patient anatomy customizes radiation delivery for each patient with highly precise radiation from all angles minimizes radiation exposure to healthy tissue and varies the treatment plan if necessary at any time. The unique feature of Tomotherapy is that it offers seamless integration of image-guided and intensity modulated radiation therapy and side effects are often minimized since lesser radiation reaches healthy tissues and organs. Foreign Exchange Earnings Outgo Foreign Exchange Earnings : `973.90 million This is exclusive of rupee payments made by Non-Resident Indian and Foreign Nationals Foreign Exchange Outgo : `1155.23 million towards purchase of medical equipments and capital expenditure.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 70 71 Statutory Section Pursuant to Section 92 3 of the Companies Act 2013 and Rule 121 of the Companies Management Administration Rules 2014. I Registration other details: i CIN L85110TN1979PLC008035 ii Registration Date 5th December 1979 iii Name of the Company APOLLO HOSPITALS ENTERPRISE LIMITED iv Category/Sub-category of the Company Public/Company Limited by Shares v Address of the Registered office contact details 19 Bishop Gardens Raja Annamalaipuram Chennai - 600 028 Tamil Nadu India Tel : 91-44-28290956 Fax: 91-44-29290956 email: investor.relationsapollohospitals.com vi Whether listed company Yes Name of the Stock Exchanges where equity shares are listed National Stock Exchange of India Limited Mumbai Stock Code : APOLLOHOSP Bombay Stock Exchange Limited Mumbai Stock Code : 508869 vii Name Address contact details of the Registrar Transfer Agent if any. Integrated Enterprises India Ltd Kences Towers II Floor No. 1 Ramakrishna Street North Usman Road Chennai - 600 017 Ph: 91-44 2814 0801 Fax: 91-44 2814 2479 II Principal Business Activities of the Company All the business activities contributing 10 or more of the total turnover of the company shall be stated SL No Name Description of main products/ services NIC Code of the Product /service to total turnover of the company 1 Healthcare Services Standalone Pharmacies 86100 100 Annexure - D to the Directors’ Report Extract of Annual Return Form No. MGT 9 Extract of Annual Return as on the financial year ended 31st March 2016 III Particulars of Holding Subsidiary Associate Companies Sl No Name Address of the Company CIN/GLN Holding/ Subsidiary/ Associate of Shares Held Applicable Section 1 Apollo Home Healthcare India Limited formerly known as Unique Home Healthcare Limited Ali Towers I Floor No. 55 Greams Road Chennai - 600 006 U85110TN1995PLC031663 Subsidiary 100.00 287 2 A.B. Medical Centers Limited No. 159 EVR Periyar Salai Chennai - 600 010 U85320TN1974PLC006623 Subsidiary 100.00 287 3 Samudra Healthcare Enterprises Limited No. 13-1-3 Suryaraopeta Main Road Kakinada - 533 001 U85110TG2003PLC040647 Subsidiary 100.00 287 4 Apollo Health and Lifestyle Limited AHLL 1-10-60/62 Ashoka Raghupathi Chambers 5th Floor Begumpet Hyderabad – 500 016. U85110TN2000PLC046089 Subsidiary 99.29 287 5 Western Hospitals Corporation Private Limited Ali Towers Ground Floor No.55 Greams Road Chennai - 600 006 U85110TN2006PTC061323 Subsidiary 100.00 287 6 Total Health Aragonda Village Thavanampalle Mandal Chittoor District Andhra Pradesh U85100TN2013NPL093963 Subsidiary 100.00 287 7 Apollo Healthcare Technology Solutions Limited No. 19 Bishop Gardens Raja Annamalaipuram Chennai - 600 028 Tamil Nadu U85100TN2012PLC086247 Subsidiary 100.00 287 8 Apollo Hospital UK Limited First Floor Kirkland House 11-15 Peterborough Road Harrow Middlesex HA1 2AX United Kingdom NA Subsidiary 100.00 287 9 Apollo Hospitals Singapore Pte Limited 50 Raffles Place Singapore Land Tower 30 Singapore-048623 NA Subsidiary 100.00 287 10 Imperial Hospital and Research Centre Limited No. 154/11 Bannerghatta Road Opp. IIM Bengaluru- 560 076 U85110KA1991PLC011781 Subsidiary 90.00 287 11 Apollo Home Healthcare Limited No. 19 Bishop Gardens Raja Annamalaipuram Chennai - 600 028 Tamil Nadu U85100TN2014PLC095340 Subsidiary 80.87 287 12 Apollo Nellore Hospital Limited No. 16/111/1133 Muthukur Road Pinakini Nagar Nellore - 524004 U85110TN1986PLC072193 Subsidiary 79.44 287

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 72 73 Statutory Section Sl No Name Address of the Company CIN/GLN Holding/ Subsidiary/ Associate of Shares Held Applicable Section 13 Sapien Biosciences Private Limited 8-2-293/82/J-III/DH/900 1st Floor AIMSR Building Apollo Health City Jubilee Hills Hyderabad - 500 033 U73100TG2012PTC080254 Subsidiary 70.00 287 14 Apollo Rajshree Hospitals Private Limited Dispensary Plot Scheme No. 74C Sector D Vijay Nagar Indore Madhya Pradesh - 452 010 U85110MP2008PTC020559 Subsidiary 57.27 287 15 Apollo Lavasa Health Corporation Limited Plot No.13 Parsik Hill Road Off Uran Road Sector 23 CBD Belapur Navi Mumbai - 400 614 Maharashtra U85100MH2007PLC176736 Subsidiary 51.00 287 16 Assam Hospitals Limited Lotus Tower GS Road Ganeshguri Guwahati - 781 005 Assam U85110AS1997PLC004987 Subsidiary 51.00 287 17 Apollo Sugar Clinics Limited 1-10-60/62 Ashoka Raghupathi Chambers 5th Floor Begumpet Hyderabad – 500 016. U85110TG2012PLC081384 Step down Subsidiary Subsidiary of AHLL 80.00 287 18 Apollo Cosmetic Surgical Centre Private Limited 1-10-60/62 Ashoka Raghupathi Chambers 5th Floor Begumpet Hyderabad – 500 016. U85110TG2007PTC098959 Step down Subsidiary Subsidiary of AHLL 100.00 287 19 Akeso Healthcare Private Limited 1-10-60/62 Ashoka Raghupathi Chambers 5th Floor Begumpet Hyderabad – 500 016. U85190TG2010PTC099156 Step down Subsidiary Subsidiary of AHLL 100.00 287 20 Alliance Dental Care Limited No.68/1 Loyal Towers 4th Floor East Wing MNO Complex Greams Road Chennai - 600 006 U85120TN2002PLC049414 Step down Subsidiary Subsidiary of AHLL 70.00 287 21 Apollo Dialysis Pvt Limited No.68/1 Loyal Towers 4th Floor East Wing MNO Complex Greams Road Chennai - 600 006 U85100TN2014PTC095571 Step down Subsidiary Subsidiary of AHLL 70.00 287 22 Apollo Hospitals International Limited Plot No. 1A GIDC Estate Bhat Village Gandhi Nagar Gujarat - 382 428 U85110TN1997PLC039016 Joint Venture 50.00 2 6 23 Apollo Gleneagles Hospitals Limited No. 58 Canal Circular Road Kolkata - 700 054 U33112WB1988PLC045223 Joint Venture 50.00 2 6 24 Apollo Gleneagles PET-CT Private Limited Apollo Hospitals Complex Jubilee Hills Hyderabad - 500 033 U85110TN2004PTC052796 Joint Venture 50.00 2 6 Sl No Name Address of the Company CIN/GLN Holding/ Subsidiary/ Associate of Shares Held Applicable Section 25 ApoKos Rehab Private Limited 4th Floor Apollo Hospitals Building Jubilee Hills Hyderabad - 500 033 U85191TG2012PTC084641 Joint Venture 50.00 2 6 26 Future Parking Private Limited 3rd Floor G Block No. 55 Greams Road Chennai - 600 006 U45206TN2009PTC072304 Joint Venture 49.00 2 6 27 Apollo Munich Health Insurance Company Limited iLABS Centre 2nd 3rd Floor Plot No 404 - 405 Udyog Vihar Phase – III Gurgaon -122016 Haryana U66030AP2006PLC051760 Joint Venture 10.00 2 6 28 Stemcyte India Therapautics Private Limited Apollo Hospitals Complex Plot No. 1A GIDC Estate Bhat Village Gandhi Nagar Gujarat - 382 428 U85100GJ2008FTC052859 Associate 24.50 2 6 29 Family Health Plan TPA Limited Srinilaya Cyber Spazio Ground Floor Road No.2 Banjara Hills Hyderabad - 500034 U85110TN1995PLC031121 Associate 49.00 2 6 30 Indraprastha Medical Corporation Limited Sarita Vihar Delhi Mathura Road New Delhi - 110 044 L24232DL1988PLC030958 Associate 22.03 2 6 IV Shareholding Pattern Equity Share capital Break up as to total equity i Category-wise shareholding Category of Shareholders No. of Shares held at the beginning of the year As on 1st April 2015 No. of Shares held at the end of the year As on 31st March 2016 Change during the year Demat Physical Total of Total Shares Demat Physical Total of Total Shares A. Promoters 1 Indian a Individual/HUF 20550530 - 20550530 14.77 20555635 - 20555635 14.77 - b Central Govt.or State Govt. - - - - - - - - - c Bodies Corporates 27237924 - 27237924 19.58 27237924 - 27237924 19.58 - d Bank/FI - - - - - - - - - e Any other - - - - - - - - - SUB TOTAL A 1 47788454 - 47788454 34.35 47793559 - 47793559 34.35 -

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 74 75 Statutory Section Category of Shareholders No. of Shares held at the beginning of the year As on 1st April 2015 No. of Shares held at the end of the year As on 31st March 2016 Change during the year Demat Physical Total of Total Shares Demat Physical Total of Total Shares 2 Foreign a NRI- Individuals - - - - - - - - - b Other Individuals - - - - - - - - - c Bodies Corp. - - - - - - - - - d Banks/FI - - - - - - - - - e Any other - - - - - - - - - SUB TOTAL A 2 - - - - - - - - - Total Shareholding of Promoter A A1+A2 47788454 - 47788454 34.35 47793559 - 47793559 34.35 - B. Public Shareholding 1 Institutions a Mutual Funds 358089 - 358089 0.26 143343 - 143343 0.11 0.15 b Banks/FI 62309 3846 66155 0.05 12272 3846 16118 0.01 0.04 c Central govt / State Govt. 323708 - 323708 0.23 323708 - 323708 0.23 - d Venture Capital Fund - - - - - - - - - e Insurance Companies 2371187 - 2371187 1.70 871548 - 871548 0.63 1.07 f FIIs 60909116 - 60909116 43.78 62960810 - 62960810 45.25 1.47 g Foreign Venture Capital Funds - - - - - - - - - h Others - - - - 4117 - 4117 - - SUB TOTAL B1 64024409 3846 64028255 46.02 64315798 3846 64319644 46.23 0.21 2 Non Inst i tut ions a Bod ies corpor a tes 698558 59500 758058 0.54 729170 59500 788670 0.57 0.03 b Ind i v iduals i Individual shareholders holding nominal share capital upto `1 lakh 3975788 2175391 6151179 4.42 4069396 2062266 6131662 4.41 0.01 ii Individuals shareholders holding nominal share capital in excess of ` 1 lakh 985168 96650 1081818 0.78 955668 96650 1052318 0.76 0.02 c Others i Trusts 2110 117710 119820 0.09 21581 117710 139291 0.11 0.02 ii Directors their Relatives 91606 - 91606 0.07 91606 - 91606 0.07 - Category of Shareholders No. of Shares held at the beginning of the year As on 1st April 2015 No. of Shares held at the end of the year As on 31st March 2016 Change during the year Demat Physical Total of Total Shares Demat Physical Total of Total Shares iiiForeign Nationals 750 - 750 - 750 - 750 - - iv Non Resident Indians 407957 1014852 1422809 1.02 405959 969040 1374999 0.99 0.03 v Overseas Corporate Bodies 16199 - 16199 0.01 16199 - 16199 0.01 - viClearing Member 118773 - 118773 0.09 113605 - 113605 0.08 0.01 viiHindu Undivided Families 119369 - 119369 0.09 117249 - 117249 0.08 0.01 viiiForeign Corporate Bodies 16388979 - 16388979 11.78 16384259 - 16384259 11.78 - SUB TOTAL B2 22805257 3464103 26269360 18.88 22905442 3305166 26210608 18.84 0.04 Total Public Shareholding B B 1 + B 2 86829666 3467949 90297615 64.90 87221240 3309012 90530252 65.07 0.17 Total A + B 134618120 3467949 138086069 99.25 135014799 3309012 138323811 99.42 0.17 C. Shares held by Custodian for GDRs ADRs i P romo ter and Promoter Group - - - - - - - - - ii P ublic 1039090 - 1039090 0.75 801348 - 801348 0.58 0.17 Total Public Shareholding C 1039090 - 1039090 0.75 801348 - 801348 0.58 0.17 Grand Total A+B+C 135657210 3467949 139125159 100.00 135816147 3309 012 139125159 100.00 - ii Shareholding of Promoters Sl No. Shareholders Name Shareholding at the beginning of the year As on 01st April 2015 Shareholding at the end of the year As on 31st March 2016 change in share holding during the year No. of Shares of total shares of the Company of shares pledged/ encumbered to total shares No. of Shares of total shares of the Company of shares pledged/ encumbered to total shares 1 Dr. Prathap C Reddy 5445464 3.91 - 5445464 3.91 - - 2 Smt. Sucharitha P Reddy 569800 0.41 - 569800 0.41 - - 3 Smt. Preetha Reddy 2193915 1.58 1.39 2193915 1.58 1.39 - 4 Smt. Suneeta Reddy 3381590 2.43 0.98 3381695 2.43 1.20 - 5 Smt. Shobana Kamineni 2239952 1.61 1.61 2239952 1.61 1.61 - 6 Smt. Sangita Reddy 2432508 1.75 1.75 2432508 1.75 1.75 - 7 Shri. Karthik Anand 330600 0.24 - 330600 0.24 - - 8 Shri. Harshad Reddy 320200 0.23 - 320200 0.23 - -

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 76 77 Statutory Section Sl No. Shareholders Name Shareholding at the beginning of the year As on 01st April 2015 Shareholding at the end of the year As on 31st March 2016 change in share holding during the year No. of Shares of total shares of the Company of shares pledged/ encumbered to total shares No. of Shares of total shares of the Company of shares pledged/ encumbered to total shares 9 Smt. Sindoori Reddy 517600 0.37 - 517600 0.37 - - 10 Shri. Aditya Reddy 210200 0.15 - 210200 0.15 - - 11 Smt. Upasana Kamineni 217276 0.16 - 217276 0.16 - - 12 Shri. Puansh Kamineni 212200 0.15 - 212200 0.15 - - 13 Smt. Anuspala Kamineni 259174 0.19 - 259174 0.19 - - 14 Shri. Konda Anindith Reddy 230200 0.17 - 230200 0.17 - - 15 Shri. Konda Vishwajit Reddy 222300 0.16 - 222300 0.16 - - 16 Shri. Konda Viraj Madhav Reddy 168224 0.12 - 168224 0.12 - - 17 Shri. P. Vijay Kumar Reddy 3957 - - 8957 0.01 - - 18 Shri. P. Dwaraknath Reddy 18000 0.01 - 18000 0.01 - - 19 Shri. Anil Kamineni 20 - - 20 - - - 20 Shri. K Vishweshwar Reddy 1577350 1.13 - 1577350 1.13 0.54 - 21 PCR Investments Ltd 27223124 19.57 16.18 27223124 19.57 16.18 - 22 Obul Reddy Investments Ltd 11200 0.01 - 11200 0.01 - - 23 Indian Hospitals Corporation Ltd 3600 - - 3600 - - - Total 47788454 34.35 21.91 47793559 34.35 22.67 iii Change in Promoters’ Shareholding Sl No. Shareholders Name Shareholding at the beginning of the year As on 01st April 2015 Cumulative shareholding during the year No. of Shares of total shares of the Company No. of Shares of total shares of the Company 1 Dr. Prathap C Reddy At the beginning of the year 5445464 3.91 5445464 3.91 At the end of the year 5445464 3.91 2 Smt. Sucharitha P Reddy At the beginning of the year 569800 0.41 569800 0.41 At the end of the year 569800 0.41 3 Smt. Preetha Reddy At the beginning of the year 2193915 1.58 2193915 1.58 At the end of the year 2193915 1.58 Sl No. Shareholders Name Shareholding at the beginning of the year As on 01st April 2015 Cumulative shareholding during the year No. of Shares of total shares of the Company No. of Shares of total shares of the Company 4 Smt. Suneeta Reddy At the beginning of the year 3381590 2.43 3381590 2.43 24.04.2015 Market Purchase 57 - 3381647 2.43 01.05.2015 Market Purchase 48 - 3381695 2.43 At the end of the year 3381695 2.43 5 Smt. Shobana Kamineni At the beginning of the year 2239952 1.61 2239952 1.61 At the end of the year 2239952 1.61 6 Smt. Sangita Reddy At the beginning of the year 2432508 1.75 2432508 1.75 At the end of the year 2432508 1.75 7 Shri. Karthik Anand At the beginning of the year 330600 0.24 330600 0.24 At the end of the year 330600 0.24 8 Shri. Harshad Reddy At the beginning of the year 320200 0.23 320200 0.23 At the end of the year 320200 0.23 9 Smt. Sindoori Reddy At the beginning of the year 517600 0.37 517600 0.37 At the end of the year 517600 0.37 10 Shri. Aditya Reddy At the beginning of the year 210200 0.15 210200 0.15 At the end of the year 210200 0.15 11 Smt. Upasana Kamineni At the beginning of the year 217276 0.16 217276 0.16 At the end of the year 217276 0.16 12 Shri. Puansh Kamineni At the beginning of the year 212200 0.15 212200 0.15 At the end of the year 212200 0.15 13 Smt. Anuspala Kamineni At the beginning of the year 259174 0.19 259174 0.19 At the end of the year 259174 0.19 14 Shri. Konda Anindith Reddy At the beginning of the year 230200 0.17 230200 0.17 At the end of the year 230200 0.17 15 Shri. Konda Vishwajit Reddy At the beginning of the year 222300 0.16 222300 0.16 At the end of the year 222300 0.16

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 78 79 Statutory Section Sl No. Shareholders Name Shareholding at the beginning of the year As on 01st April 2015 Cumulative shareholding during the year No. of Shares of total shares of the Company No. of Shares of total shares of the Company 16 Shri. Konda Viraj Madhav Reddy At the beginning of the year 168224 0.12 168224 0.12 At the end of the year 168224 0.12 17 Shri. P. Vijay Kumar Reddy At the beginning of the year 3957 - 3957 - 11.03.2016 Market Purchase 5000 - 8957 0.01 At the end of the year 8957 0.01 18 Shri. P. Dwaraknath Reddy At the beginning of the year 18000 0.01 18000 0.01 At the end of the year 18000 0.01 19 Shri. Anil Kamineni At the beginning of the year 20 - 20 - At the end of the year 20 - 20 Shri. K Vishweshwar Reddy At the beginning of the year 1577350 1.13 1577350 1.13 At the end of the year 1577350 1.13 21 PCR Investments Limited At the beginning of the year 27223124 19.57 27223124 19.57 At the end of the year 27223124 19.57 22 Obul Reddy Investments Ltd At the beginning of the year 11200 0.01 11200 0.01 At the end of the year 11200 0.01 23 Indian Hospitals Corporation Ltd At the beginning of the year 3600 - 3600 - At the end of the year 3600 - Note: The cumulative shareholding column reflects the balance as on day end. iv Shareholding Pattern of top ten Shareholders Other than Directors Promoters Holders of GDRs Sl No. Shareholders Name Shareholding at the beginning of the year As on 01st April 2015 Cumulative shareholding during the year No. of Shares of total shares of the Company No. of Shares of total shares of the Company 1 Integrated Mauritius Healthcare Holdings Limited At the beginning of the year 15093860 10.85 15093860 10.85 At the end of the year 15093860 10.85 Sl No. Shareholders Name Shareholding at the beginning of the year As on 01st April 2015 Cumulative shareholding during the year No. of Shares of total shares of the Company No. of Shares of total shares of the Company 2 Oppenheimer Developing Markets Fund At the beginning of the year 12086295 8.69 12086295 8.69 31/03/2016 71510 0.05 12014785 8.64 At the end of the year 12014785 8.64 3 Schroder International Selection Fund Asian Total Return At the beginning of the year 2763242 1.99 2763242 1.99 26/02/2016 33983 0.03 2729259 1.96 At the end of the year 2729259 1.96 4 Munchener Ruckversicherungsgesellschaft Aktiengesellschaft In Munchen At the beginning of the year 2397380 1.72 2397380 1.72 At the end of the year 2397380 1.72 5 Fidelity Investment Trust - Fidelity Diversified International Fund At the beginning of the year 2227126 1.60 2227126 1.60 28/08/2015 132734 0.10 2094392 1.50 18/09/2015 100817 0.07 1993575 1.43 25/09/2015 25000 0.02 1968575 1.41 30/10/2015 121678 0.09 1846897 1.32 06/11/2015 49063 0.04 1797834 1.28 13/11/2015 33054 0.02 1764780 1.26 20/11/2015 39934 0.03 1724846 1.23 At the end of the year 1724846 1.23 6 Mirae Asset Asia Great Consumer Equity Fund At the beginning of the year 915092 0.66 915092 0.66 10/04/2015 12935 0.01 928027 0.67 17/04/2015 69655 0.05 997682 0.72 24/04/2015 49670 0.04 1047352 0.76 01/05/2015 261530 0.19 1308882 0.94 08/05/2015 118450 0.09 1427332 1.03 05/06/2015 43082 0.03 1470414 1.06 12/06/2015 35606 0.02 1506020 1.08

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 80 81 Statutory Section Sl No. Shareholders Name Shareholding at the beginning of the year As on 01st April 2015 Cumulative shareholding during the year No. of Shares of total shares of the Company No. of Shares of total shares of the Company 19/06/2015 16865 0.02 1522885 1.10 26/06/2015 44589 0.03 1567474 1.13 31/07/2015 19717 0.01 1587191 1.14 14/08/2015 6796 0.01 1580395 1.14 04/09/2015 3037 - 1577358 1.13 09/10/2015 35773 0.03 1541585 1.10 16/10/2015 17 - 1541568 1.10 05/02/2016 16548 0.01 1525020 1.09 19/02/2016 9547 - 1515473 1.09 26/02/2016 41427 0.03 1474046 1.06 04/03/2016 59837 0.04 1414209 1.02 At the end of the year 1414209 1.02 7 International Finance Corporation At the beginning of the year 1290149 0.93 1290149 0.93 At the end of the year 1290149 0.93 8 Copthall Mauritius Investment Limited At the beginning of the year 918082 0.66 918082 0.66 10/04/2015 391 - 917691 0.66 17/04/2015 5017 - 912674 0.66 24/04/2015 1400 - 914074 0.66 01/05/2015 19934 0.01 894140 0.65 08/05/2015 1739 - 892401 0.65 15/05/2015 800 - 893201 0.65 22/05/2015 40215 0.03 933416 0.68 05/06/2015 14842 0.01 918574 0.67 12/06/2015 915 - 919489 0.67 19/06/2015 1250 - 918239 0.67 26/06/2015 38292 0.03 956531 0.70 30/06/2015 50000 0.04 1006531 0.74 03/07/2015 48000 0.03 1054531 0.77 10/07/2015 24445 0.01 1078976 0.78 17/07/2015 56507 0.04 1135483 0.82 31/07/2015 4609 - 1140092 0.82 07/08/2015 26880 0.02 1113212 0.80 Sl No. Shareholders Name Shareholding at the beginning of the year As on 01st April 2015 Cumulative shareholding during the year No. of Shares of total shares of the Company No. of Shares of total shares of the Company 14/08/2015 524 - 1112688 0.80 21/08/2015 31600 0.02 1144288 0.82 28/08/2015 25892 0.02 1170180 0.84 04/09/2015 5168 - 1175348 0.84 11/09/2015 25900 0.02 1149448 0.82 25/09/2015 10300 0.01 1139148 0.81 02/10/2015 29600 0.02 1109548 0.79 09/10/2015 7200 - 1102348 0.79 16/10/2015 13225 0.01 1115573 0.80 23/10/2015 18814 0.01 1134387 0.81 30/10/2015 50647 0.04 1185034 0.85 06/11/2015 11043 0.01 1196077 0.86 13/11/2015 8800 0.01 1204877 0.87 20/11/2015 600 - 1205477 0.87 27/11/2015 800 - 1206277 0.87 04/12/2015 10 - 1206267 0.87 11/12/2015 62610 0.05 1143657 0.82 18/12/2015 67200 0.05 1076457 0.77 25/12/2015 61702 0.04 1014755 0.73 31/12/2015 8500 0.01 1023255 0.74 08/01/2016 83300 0.06 1106555 0.80 15/01/2016 2800 - 1109355 0.80 22/01/2016 1200 - 1108155 0.80 05/02/2016 39612 0.03 1147767 0.83 12/02/2016 2278 - 1150045 0.83 19/02/2016 2200 - 1152245 0.83 26/02/2016 3875 - 1148370 0.83 04/03/2016 34413 0.03 1113957 0.80 11/03/2016 18000 0.01 1131957 0.81 18/03/2016 23689 0.02 1155646 0.83 25/03/2016 22422 0.02 1178068 0.85 31/03/2016 11927 0.01 1166141 0.84 At the end of the year 1166141 0.84

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 82 83 Statutory Section Sl No. Shareholders Name Shareholding at the beginning of the year As on 01st April 2015 Cumulative shareholding during the year No. of Shares of total shares of the Company No. of Shares of total shares of the Company 9 Vanguard International Explorer Fund At the beginning of the year 895498 0.64 895498 0.64 15/05/2015 116486 0.08 011984 0.72 05/02/2016 50785 0.03 961199 0.69 12/02/2016 21044 0.01 940155 0.68 At the end of the year 940155 0.68 10 Fidelity Securities Fund Fidelity Blue Chip Growth Fund At the beginning of the year 936371 0.67 936371 0.67 At the end of the year 936371 0.67 Note: The cumulative shareholding column reflects the balance as on day end. v Shareholding of Directors and Key Managerial Personnel Sl No. Name Shareholding at the beginning of the year As on 01st April 2015 Cumulative shareholding during the year No. of Shares of total shares of the Company No. of Shares of total shares of the Company DIRECTORS 1 Dr. Prathap C Reddy At the beginning of the year 5445464 3.91 5445464 3.91 At the end of the year 5445464 3.91 2 Smt. Preetha Reddy At the beginning of the year 2193915 1.58 2193915 1.58 At the end of the year 2193915 1.58 3 Smt. Suneeta Reddy At the beginning of the year 3381590 2.43 3381590 2.43 24th April 2015 Market Purchase 57 - 3381647 2.43 01st May 2015 Market Purchase 48 - 3381695 2.43 At the end of the year 3381695 2.43 4 Smt. Shobana Kamineni At the beginning of the year 2239952 1.61 2239952 1.61 At the end of the year 2239952 1.61 Sl No. Name Shareholding at the beginning of the year As on 01st April 2015 Cumulative shareholding during the year No. of Shares of total shares of the Company No. of Shares of total shares of the Company 5 Smt. Sangita Reddy At the beginning of the year 2432508 1.75 2432508 1.75 At the end of the year 2432508 1.75 6 Shri. Habibullah Badsha At the beginning of the year 10806 0.01 10806 0.01 At the end of the year 10806 0.01 7 Shri. Rafeeque Ahamed At the beginning of the year 55900 0.04 55900 0.04 At the end of the year 55900 0.04 8 Shri. N. Vaghul At the beginning of the year - - - - At the end of the year - - - - 9 Shri. Deepak Vaidya At the beginning of the year - - - - At the end of the year - - - - 10 Shri. Rajkumar Menon At the beginning of the year - - - - At the end of the year - - - - 11 Shri. G. Venkatraman At the beginning of the year - - - - At the end of the year - - - - 12 Shri. Sanjay Nayar At the beginning of the year - - - - At the end of the year - - - - 13 Shri. Vinayak Chatterjee At the beginning of the year - - - - At the end of the year - - - - KEY MANAGERIAL PERSONNEL 14 Shri. Krishnan Akhileswaran At the beginning of the year 4 - 4 - At the end of the year - - 4 - 15 Shri. S.M. Krishnan At the beginning of the year - - - - At the end of the year - - - - Note : The cumulative shareholding column reflects the balance as on day end.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 84 85 Statutory Section V INDEBTEDNESS Indebtedness of the Company including interest outstanding/accrued but not due for payment ` in million Secured Loans excluding deposits Unsecured Loans Deposits Total Indebtedness Indebtness at the beginning of the financial year i Principal Amount 14785.08 1700.97 339.27 16825.32 ii Interest due but not paid - - - - iii Interest accrued but not due 160.05 - 1.64 161.69 Total i+ii+iii 14945.13 1700.97 340.91 16987.01 Change in Indebtedness during the financial year Additions 7881.25 1410.00 87.64 9378.89 Reduction 2747.58 372.77 153.49 3273.84 Net Change 5133.67 1037.23 65.85 6105.05 Indebtedness at the end of the financial year i Principal Amount 19918.75 2738.20 273.42 22930.37 ii Interest due but not paid - - - - iii Interest accrued but not due 260.76 - 2.09 262.85 Total i+ii+iii 20179.51 2738.20 275.51 23193.22 VI Remuneration of Directors and Key Managerial Personnel A. Remuneration to Managing Director Whole time director and/or Manager ` in million Sl. No Particulars of Remuneration Name of the MD/WTD/Manager Total Amount Dr. Prathap C Reddy Smt. Preetha Reddy Smt. Suneeta Reddy Smt. Shobana Kamineni Smt. Sangita Reddy 1 Gross salary a Salary as per provisions contained in section 171 of the Income Tax. 1961. 102.29 48.20 48.20 49.66 46.99 295.34 b Value of perquisites u/s 172 of the Income tax Act 1961 - - - - - - c Profits in lieu of salary under section 173 of the Income Tax Act 1961 - - - - - - 2 Stock option NA NA NA NA NA NA 3 Sweat Equity NA NA NA NA NA NA 4 Commission as of profit 33.90 - - - - 33.90 others specify - - - - - - 5 Others please specify - - - - - - Total A 136.19 48.20 48.20 49.66 46.99 329.24 Ceiling as per the Act `452 million being 10 of the net profits of the Company calculated as per Section 198 of the Companies Act 2013 B. Remuneration to other directors: ` in million Sl. No Particulars of Remuneration Name of the Directors Total Amount Shri. Rajkumar Menon Shri. Rafeeque Ahamed Shri. Habibullah Badsha Shri. Deepak Vaidya Shri. N. Vaghul Shri. G. Venkatraman Shri. Sanjay Nayar Shri. Vinayak Chatterjee 1 a Fee for attending board committee meetings 0.70 0.20 0.25 0.55 0.30 0.55 0.15 0.25 2.95 b Commission 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 10.00 c Others please specify - - - - - - - - - Total 1 1.95 1.45 1.50 1.80 1.55 1.80 1.40 1.50 12.95 Other Non Executive Directors Not Applicable 2 a Fee for attending board committee meetings - - - - - - - - - b Commission - - - - - - - - - c Others please specify. - - - - - - - - - Total 2 - - - - - - - - - Total B 1+2 1.95 1.45 1.50 1.80 1.55 1.80 1.40 1.50 12.95 Total Managerial Remuneration 342.19 Overall Ceiling as per the Act. `497 million being 11 of the net profits of the Company calculated as per Section 198 of the Companies Act 2013

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 86 87 Statutory Section C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD ` in million Sl. No. Particulars of Remuneration Key Managerial Personnel Total 1 Gross Salary CFO Company Secretary a Salary as per provisions contained in section 171 of the Income Tax Act 1961. 16.50 5.10 21.60 b Value of perquisites u/s 172 of the Income Tax Act 1961 - - - c Profits in lieu of salary under section 173 of the Income Tax Act 1961 - - - Stock Option - - - 2 Sweat Equity NA NA NA 3 Commission 4 as of profit NA NA NA others specify NA NA NA 5 Others please specify - - - Total 16.50 5.10 21.60 VII Penalties / Punishment / Compounding of Offences Type Section of the Companies Act Brief Description Details of Penalty/ Punishment/ Compounding fees imposed Authority RD/ NCLT/Court Appeall made if any give details A. COMPANY Penalty Punishment Compounding B. DIRECTORS Penalty Punishment Compounding C. OTHER OFFICERS IN DEFAULT Penalty Punishment Compounding ___________________________________ NIL ___________________________________ Corporate Governance Report 1. The Company’s philosophy on code of governance 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 with statutory requirements but also to go beyond them by putting into place procedures and systems which are in accordance with the best practices of governance. Your Company believes that good Corporate Governance enhances the trust and confidence of all the stakeholders. Good practice in corporate behaviour helps to enhance and maintain public trust in companies and the stock markets. Your Company reviews its corporate governance practices to ensure that they reflect the latest developments in the corporate arena and in positioning itself to conform to the best corporate governance practices. Your Company is committed to pursuing excellence in all its activities and in maximisation of shareholders’ wealth. The Company’s corporate governance policies and practices focus on the following principles: 1. To recognize the respective roles and responsibilities of the Board and management. 2. To achieve the highest degree of transparency by maintaining a high degree of disclosure levels. 3. To ensure and maintain high ethical standards in its functioning. 4. To accord the highest importance to investor relations. 5. To ensure a sound system of risk management and internal controls. 6. To ensure that employees of the Company subscribe to the corporate values and apply them in their conduct. 7. To ensure that the decision making process is fair and transparent. 8. To ensure that the Company follows globally recognized corporate governance practices. Governance Structure Apollo’s Governance structure broadly comprises of the Board of Directors and the Committees of the Board at the apex level and the Management structure at the operational level. This layered structure brings about a harmonious blend in governance as the Board sets the overall corporate objectives and gives direction and freedom to the Management to achieve these corporate objectives within a given framework thereby bringing about an enabling environment for value creation through sustainable profitable growth. The Board of Directors plays a pivotal role in ensuring that the Company runs on sound and ethical business practices and that its resources are utilized for creating sustainable growth and societal wealth. The Board operates within the framework of a well defined responsibility matrix which enables it to discharge its fiduciary duties of safeguarding the interests of the Company ensuring fairness in the decision making process and integrity and transparency in the Company’s dealing with its Members and other stakeholders. With a view to have a more focused attention on various facets of business and for better accountability the Board has constituted the following committees viz. Audit Committee Stakeholders’ Relationship Committee Nomination

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 88 89 Statutory Section and Remuneration Committee Risk Management Committee Corporate Social Responsibility Committee and Investment Committee. Each of these Committees have been mandated to operate within a given framework. A management structure for running the business of the Company as a whole is in place with appropriate delegation of powers and responsibilities. 2. Board of Directors The Company has an Executive Chairman. As per Regulation 17 of the SEBI Listing Obligations and Disclosure Requirements Regulations 2015 Listing Regulations in case of an Executive Chairman at least half of the Board should comprise of independent directors. Independent Directors constitute 61 per cent of the overall Board. The Board has a healthy blend of executive and non-executive directors and consequently ensures the desired level of independence in functioning and decision-making. Moreover all the non-executive directors are eminent professionals and bring the wealth of their professional expertise and experience to the management of the Company. a Composition and category of the Board of Directors relationship between directors inter se and shareholding of Directors in the Company Director DIN Category Designation Relationship with other Directors Share holding in the Company Dr. Prathap C Reddy 00003654 Promoter Executive Chairman Father of Smt. Preetha Reddy Smt. Suneeta Reddy Smt. Sangita Reddy Smt. Shobana Kamineni 5445464 Smt. Preetha Reddy 00001871 Promoter Executive Vice Chairperson Daughter of Dr. Prathap C Reddy Sister of Smt. Suneeta Reddy Smt. Sangita Reddy Smt. Shobana Kamineni 2193915 Smt. Suneeta Reddy 00001873 Promoter Managing Director Daughter of Dr. Prathap C Reddy Sister of Smt. Preetha Reddy Smt. Sangita Reddy Smt. Shobana Kamineni 3381695 Smt. Shobana Kamineni 00003836 Promoter Executive Vice Chairperson Daughter of Dr. Prathap C Reddy Sister of Smt. Preetha Reddy Smt. Suneeta Reddy Smt. Sangita Reddy 2239952 Smt. Sangita Reddy 00006285 Promoter Joint Managing Director Daughter of Dr. Prathap C Reddy Sister of Smt. Preetha Reddy Smt. Suneeta Reddy Smt. Shobana Kamineni 2432508 Shri. Rajkumar Menon 00002897 Independent Director - Shri. Rafeeque Ahamed 00013749 Independent Director 55900 Shri. Habibullah Badsha 00003678 Independent Director 10806 Shri. Deepak Vaidya 00337276 Independent Director - Shri. N. Vaghul 00002014 Independent Director - Shri.G.Venkatraman 00010063 Independent Director - Shri. Sanjay Nayar 00002615 Independent Director - Shri Vinayak Chatterjee 00008933 Independent Director - b Board Meetings and Attendance of Directors. Five board meetings were held during the financial year from 1st April 2015 to 31st March 2016. The dates on which the meetings were held are as follows:- 28th May 2015 11th August 2015 14th November 2015 12th February 2016 and 15th March 2016. Attendance details of each Director at the Board Meetings at the last AGM and details of external directorships and memberships of Board/Committees. Name of the Director Number of Board Meetings held Number of Board Meetings Attended Last AGM attendance Yes/No Number of Directorships out of which as Chairman other than AHEL Number of Memberships in Board Committees other than AHEL Whether Chairman / Member Dr. Prathap C Reddy 5 5 Yes 65 - - Smt. Preetha Reddy 5 5 Yes 9 1 Member Smt. Suneeta Reddy 5 5 Yes 9 1 Member Smt. Shobana Kamineni 5 5 Yes 9 - - Smt. Sangita Reddy 5 5 Yes 9 2 Member Shri. Rajkumar Menon 5 5 Yes 5 2 Member Shri. Rafeeque Ahamed 5 3 No - - - Shri. Habibullah Badsha 5 5 Yes 2 2 Member Shri. Deepak Vaidya 5 5 Yes 31 2 2 Chairman Member Shri. N. Vaghul 5 5 Yes 31 2 2 Chairman Member Shri. G. Venkatraman 5 5 Yes 7 4 Chairman Shri. Sanjay Nayar 5 3 Yes 6 1 Member Shri. Vinayak Chatterjee 5 5 Yes 41 1 2 Chairman Member excluding Directorships in Foreign Companies Private Companies and Section 8 companies. Represents Membership/Chairmanship of Audit Committees and Shareholders’ /Investors’ Grievance Committee. As on 31st March 2016 none of the Directors on the Board hold the office of Director in more than 10 Public Limited Companies or Membership of Committees of the Board in more than 10 Committees and Chairmanship of more than 5 Committees across all companies. None of the Independent Directors of the Company serve as an Independent Director in more than seven listed companies and where any Independent Director is serving as whole-time director in any listed company such director does not serve as an Independent Director in more than three listed companies. The Companies Act 2013 read with the relevant rules made thereunder now facilitates the participation of a Director in Board / Committee Meetings through video conferencing or other audio visual mode. Accordingly the option to participate in the Meeting through video conferencing was made available for the Directors except in respect of such Meetings / Items which are not permitted to be transacted through video conferencing.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 90 91 Statutory Section c Availability of Information to Board Members The Board periodically reviews the items required to be placed before it and in particular reviews and approves quarterly/half yearly unaudited financial statements and the audited annual financial statements corporate strategies business plans annual budgets projects and capital expenditure. It monitors overall operating performance progress of major projects and reviews such other items which require the Board’s attention. It directs and guides the activities of the Management towards the set goals and seeks accountability. It also sets standards of corporate behaviour ensures transparency in corporate dealings and compliance with laws and regulations. The Agenda for the Board Meeting covers items as prescribed under Part A of Schedule II of Sub- Regulation 7 of Regulation 17 of the Listing Regulations to the extent these are relevant and applicable. All agenda items are supported by relevant information documents and presentations to enable the Board to take informed decisions. The information made available to the Board includes the following: 1. Annual Operating plans budgets and any updates. 2. Capital budgets and any updates. 3. Quarterly results for the Company and its operating divisions or business segments. 4. Minutes of meetings of the audit committee and other committees of the Board. 5. The information or recruitment and remuneration of senior officers just below the board level including appointment and removal of the Chief Financial Officer and the Company Secretary. 6. Show cause demand prosecution notices and penalty notices which are materially important. 7. Fatal or serious accidents dangerous occurrences any material effluent or pollution problems. 8. Any material default in financial obligations to and by the Company or substantial non-payment for goods sold by the Company. 9. Any issue which involves possible public or product liability claims of substantial nature including judgments or orders which may have passed strictures on the code of conduct of the Company or taken an adverse view regarding another enterprise that can have negative implications on the Company. 10. Details of joint venture or collaboration agreements. 11. Transactions that involve substantial payments towards goodwill brand equity or intellectual property. 12. Significant labour problems and their resolutions. Any significant development on the Human Resources / Industrial Relations front like signing of wage agreement implementation of VRS scheme etc. 13. Sale of material nature such as investments subsidiaries assets which is not in the normal course of business. 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. Non-compliance of any regulatory statutory or listing requirements and shareholder services such as non¬- payment of dividend delay in share transfers etc. d The Board reviews periodically the compliance reports of all laws applicable to the Company. e Code of Conduct for Board Members and Senior Management Personnel The Board of Directors had adopted a Code of Conduct for the Board Members and Senior Management Personnel of the Company. This Code helps the Company to maintain the Standard of Business Ethics and ensure compliance with the legal requirements specifically under Regulation 173 of the Listing Regulations. The Code is aimed at preventing any wrongdoing and promoting ethical conduct of the Board and employees. The Company Secretary has been appointed as the Compliance Officer and is responsible to ensure adherence to the Code by all concerned. A copy of the code of conduct has been posted at the Company’s official website www. apollohospitals.com The Code lays down the standard of conduct which is expected to be followed by the Directors and the designated employees in their business dealings and in particular on matters relating to integrity in the work place in business practices and in dealing with stakeholders. All the Board Members and the Senior Management personnel have confirmed compliance with the Code. The declaration regarding compliance with the code of conduct is appended to this report. Code of Conduct for prevention of Insider Trading The Company has adopted a code of conduct for prevention of insider trading in accordance with the Securities and Exchange Board of India Prohibition of Insider Trading Regulations 2015. Shri. S.M. Krishnan Vice President Finance and Company Secretary is the Compliance Officer. All the Directors and Senior Management Personnel and such other designated employees of the Company who are expected to have access to unpublished price sensitive information relating to the Company are covered under the said code. The Directors their relatives senior management personnel designated employees etc. are restricted from purchasing selling and dealing in the shares while being in possession of unpublished price sensitive information about the Company during certain prohibited periods. All Board Directors and the designated employees have confirmed compliance with the Code. f Familiarization Programmes for Board Members The Board Members of the Company are eminent personalities having wide experience in the field of business finance education industry commerce and administration. Their presence on the Board has been advantageous and fruitful in taking business decisions. The Board Members are provided with necessary documents/brochures reports and internal policies to enable them to familiarize with the Company’s procedures and practices. Periodic presentations are made at the Board and Board Committee Meetings on business apart from performance updates of the Company global business environment business strategy and risks involved. Updates on relevant statutory changes encompassing important laws are regularly circulated to the Independent directors.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 92 93 Statutory Section Strategy Conclave A strategy conclave a one day event was conducted on 14th March 2016. All Board Members Senior Business Executives and support functions were invited to this event. A detailed view of strategy was presented by all business unit heads at the conclave. This session helped Board Members familiarise themselves with strategy and future plans of the Company. The familiarisation policy including details of familiarisation programmes attended by independent directors during the year ended March 31 2016 is posted on the website of the Company at https://www.apollohospitals.com/ apollo_pdf/board-familiariation-policy.pdf. g Independent Directors’ Meeting During the year under review the Independent Directors met on November 14 2015 inter alia to discuss: • Eval uat ion o f the per formance o f Independent Directors and the Boar d o f Directors as a whole • Eval uat ion o f the per formance o f Chairman o f the Company tak ing into ac count the v iews o f the Execut i ve and Non Executive Directors. • Eval uat ion o f the quali ty content and t imelines o f flow o f informat ion between the Management and the Boar d that is necessary for the Board to effectively and reasonably perform its duties. All the Independent Directors were present at the Meeting. 3.Composition of Board Committees Audit Committee Nomination Remuneration Committee Stakeholders Relationship Committee Corporate Social Responsibility Committee Shri. Deepak Vaidya Chairman Shri. N.Vaghul Chairman Shri. Rajkumar Menon Chairman Dr. Prathap C Reddy Chairman Shri. G. Venkatraman Member Shri. Deepak Vaidya Member Smt. Preetha Reddy Member Smt. Preetha Reddy Member Shri. Rajkumar Menon Member Shri. G. Venkatraman Member Smt. Suneeta Reddy Member Shri N. Vaghul Member Shri. Rafeeque Ahamed Member Shri. G. Venkatraman Member Risk Management Committee Investment Committee Share Transfer Committee Smt. Suneeta Reddy Chairperson Shri. N. Vaghul Chairman Smt. Preetha Reddy Member Smt. Preetha Reddy Member Smt. Preetha Reddy Member Shri. Rajkumar Menon Member Shri. Vinayak Chatterjee Member Smt. Suneeta Reddy Member Shri. Rafeeque Ahamed Member Dr. Sathyabhama Member Shri. Deepak Vaidya Member Dr. K. Hariprasad Member Shri. Vinayak Chatterjee Member 1. Audit Committee a Composition of the Audit Committee The Company continued to derive immense benefit from the deliberations of the Audit Committee comprising of the following Independent Directors. 1. Shri. Deepak Vaidya Chairman 2. Shri. G. Venkatraman 3. Shri. Rajkumar Menon The committee comprises of eminent professionals with expert knowledge in corporate finance. The Minutes of each audit committee meeting are placed before and discussed by the Board of Directors of the Company. b Meetings of the Audit Committee The Audit Committee met five times during the financial year from 1st April 2015 to 31st March 2016. The dates on which the meetings were held are as follows:- 27th May 2015 10th August 2015 14th November 2015 11th February 2016 and 15th March 2016. Sl.No Name of the Member Designation Number of Meetings Held Number of Meetings attended 1. Shri. Deepak Vaidya Chairman 5 5 2. Shri. G. Venkatraman Member 5 5 3. Shri. Rajkumar Menon Member 5 5 c Powers of the Audit Committee The powers of the Audit Committee include the following: 1. To investigate any activity within its terms of reference. 2. To seek information from any employee. 3. To obtain outside legal or other professional advice. 4. To secure attendance of outsiders with relevant expertise if it considers necessary d Functions of the Audit Committee The role of the Audit Committee includes the following: 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 2. Recommendation for appointment remuneration and terms of appointment of the auditors of the company 3. Approval of payments to the statutory auditors for any other services rendered by the statutory auditors 4. Reviewing with the management the annual financial statements and auditor’s report thereon before submission to the board for approval with particular reference to: a. Matters required to be included in the Director’s Responsibility Statement to be included in the Board’s report in terms of clause c of sub-section 3 of section 134 of the Companies Act 2013.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 94 95 Statutory Section b. Changes if any in accounting policies and practices and reasons for the same. c. Major accounting entries involving estimates based on the exercise of judgment by management. d. Significant adjustments made in the financial statements arising out of audit findings. e. Compliance with listing and other legal requirements relating to financial statements. f. Disclosure of any related party transactions. g. Modified opinions in the draft Audit Report. 5. Reviewing with the management the quarterly financial statements before submission to the board for approval 6. Reviewing with the management the statement of uses / application of funds raised through an issue public issue rights issue preferential issue etc. the statement of funds utilized for purposes other than those stated in the offer document / prospectus / notice and the report submitted by the monitoring agency monitoring the utilisation of proceeds of a public or rights issue and making appropriate recommendations to the Board to take up steps in this matter 7. Reviewing and monitoring the auditor’s independence and performance and effectiveness of the audit process 8. Approval or any subsequent modification of transactions of the company with related parties 9. Scrutiny of inter-corporate loans and investments 10. Valuation of undertakings or assets of the company wherever it is necessary 11. Evaluation of internal financial controls and risk management systems 12. Reviewing with the management performance of statutory and internal auditors adequacy of the internal control systems 13. Reviewing the adequacy of internal audit function if any including the structure of the internal audit department staffing and seniority of the official heading the department reporting structure coverage and frequency of internal audit 14. Discussion with internal auditors on any significant findings and follow up there on 15. Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the board 16. Discussion with statutory auditors before the audit commences about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern 17. To look into the reasons for substantial defaults in the payment to the depositors debenture holders shareholders in case of non-payment of declared dividends and creditors 18. To review the functioning of the Whistle Blower mechanism 19. Approval of appointment of the CFO after assessing the qualifications experience and background etc. of the candidate 20. Carrying out any other function as is mentioned in the terms of reference of the Audit Committee. The Audit Committee shall mandatorily review the following information. i Management discussion and analysis of financial condition and results of operations. ii Statement of significant related party transactions as defined by the audit committee and submitted by management iii Management letters / letters of internal control weaknesses issued by the statutory auditors. iv Internal audit reports relating to internal control weaknesses and v The appointment/removal and terms of remuneration of the Internal Auditors shall be subject to review by the Audit Committee and such other matters as prescribed. In addition to the areas noted above the audit committee reviews controls and security relating to the 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. 2. Nomination Remuneration Committee a Composition and Scope of the Nomination Remuneration Committee The Nomination Remuneration Committee comprises of the following Independent and Non Executive Directors. 1. Shri. N. Vaghul 2. Shri. Deepak Vaidya 3. Shri. G. Venkatraman and 4. Shri. Rafeeque Ahamed b Meetings of the Nomination Remuneration Committee One meeting was held on 28th May 2015 during the financial year from 1st April 2015 to 31st March 2016. Attendance details of the Members of the Committee Sl. No Name of the Member Designation Number of Meetings Held Number of Meetings attended 1. Shri. N. Vaghul Chairman 1 1 2. Shri. Deepak Vaidya Member 1 1 3. Shri. G. Venkatraman Member 1 1 4. Shri. Rafeeque Ahamed Member 1 1

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 96 97 Statutory Section c The Scope of the Nomination Remuneration Committee includes the following: 1. The Committee shall formulate the criteria for determining the qualification positive attributes and independence of a director and recommend to the Board a policy relating to the remuneration for the directors key managerial personnel and other employees. 2. The Committee shall identify persons who are qualified to become directors and who may be appointed in senior management positions in accordance with the criteria laid down recommend to the Board their appointment and removal and shall carry out evaluation of every director’s performance. 3. The Committee shall ensure that the level and composition of remuneration is reasonable and sufficient relationship of remuneration to performance is clear and meets performance benchmarks and involves a balance between fixed and incentive pay. 4. Review the policy from time to time for selection and appointment of Directors Key Managerial Personnel and senior management employees and their remuneration 5. Review the performance of the Board of Directors and Senior Management Employees based on certain criteria as approved by the Board. In reviewing the overall remuneration of the Board of Directors and Senior Management the Committee ensures that the remuneration is reasonable and sufficient to attract retain and motivate the best managerial talent the relationship of remuneration to performance is clear and meets appropriate performance benchmarks and that the remuneration involves a balance between fixed and incentive pay reflecting short term and long term objectives of the Company. 6. Filling up of vacancies in the Board that might occur from time to time and appointment of additional Non- Executive Directors. In making these recommendations the Committee shall take into account the special professional skills required for efficient discharge of the Board’s functions. 7. Recommendation to the Board with regard to retirement of directors liable to retire by rotation and appointment of Executive Directors. 8. To determine and recommend to the Board from time to time - a the amount of commission and fees payable to the Directors within the applicable provisions of the Companies Act 2013. b the amount of remuneration including performance or achievement bonus and perquisites payable to the Executive Directors c To frame guidelines for Reward Management and recommend suitable schemes for the Executive Directors and Senior Management and 9. To determine the need for key man insurance for any of the company’s personnel 10. To carry out the evaluation of performance of Individual Directors and the Board. 11. To carry out any function as is mandated by the Board from time to time and /or enforced by any statutory notification amendment or modifications as may be applicable. d Policy for selection of Directors and their remuneration The NR Committee has adopted a Charter which inter alia deals with the manner of selection of Non-Executive Directors Independent Directors and Executive Directors and their remuneration. This Policy is accordingly derived from the said Charter. 1. Criteria for selection of Non-Executive Directors and Independent Directors. a. The Non-Executive Directors shall be persons of high integrity with relevant expertise and experience so as to have a diverse Board with Directors having expertise in the fields of manufacturing marketing finance taxation law governance and general management. b. In case of appointment of Non-Executive Independent Directors the NR Committee shall satisfy itself with regard to the independent nature of the Directors vis-à-vis the Company so as to enable the Board to discharge its function and duties effectively. c. The NR Committee shall ensure that the candidate identified for appointment as a Director is not disqualified for appointment under Section 164 of the Companies Act 2013. d. The NR Committee shall consider the following attributes / criteria whilst recommending to the Board the candidature for appointment as Director. i. Qualifications expertise and experience of the Directors in their respective fields ii. Personal Professional or business standing iii. Diversity of the Board. e. In case of re-appointment of Non-Executive Independent Directors the Board shall take into consideration the performance evaluation of the Director and his engagement level. 2. Criteria for selection of Executive Directors. For the purpose of selection of the Executive Directors the NR Committee shall identify persons of integrity who possess relevant expertise experience and leadership qualities required for the position and shall take into consideration recommendations if any received from any member of the Board. The Committee will also ensure that the incumbent fulfils such other criteria with regard to age and other qualifications as laid down under the Companies Act 2013 or other applicable laws. 3. Remuneration Policy a Executive Directors The main aim of the remuneration policy is to pay the Executive Directors and senior management competitively having regard to other comparable companies and the need to ensure that they are properly remunerated and motivated to perform in the best interests of shareholders. Performance related rewards based on measured and stretch targets are therefore an important component of remuneration packages. The Nomination Remuneration Committee obtains external advice from independent firms of compensation and benefit consultants when necessary.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 98 99 Statutory Section The main components of the remuneration package for executive directors comprises of base salary and performance related variable annual incentive linked to company performance. Base Compensation Fixed pay The base salary or the fixed component has been finalized based on prevailing market standards. The salaries for executive directors will be reviewed annually having regard to the job size responsibility levels performance evaluation and competitive market practice. Also the annual increments relating to the fixed pay components will be decided by the Nomination Remuneration Committee based on company performance and market conditions. Performance based incentive Variable pay All Executive Directors would be eligible for performance based Variable Pay linked to the achievement of operating profit targets and job related goals. A percentage of the bonus is payable with reference to the profit targets and the balance is payable with reference to the individual performance criteria. The maximum annual bonus payable is 125 of base salary. In addition to the variable pay the Executive Chairman will be eligible for a commission of upto 1 of the net profits before tax of the Company. This will be determined by the Nomination Remuneration Committee based on the review of the Executive Chairman’s achievement linked to improvement in shareholders returns and brand enhancement. The Executive Directors Compensation as detailed above is within the overall framework of the approvals given by shareholders and in line with the managerial remuneration limits as specified under the Companies Act 2013. The job related goals for each working director will be set out by the Nomination Remuneration Committee every year. b Non Executive Directors Compensation to the non-executive directors takes the form of 1. Sitting fees for the meetings of the Board and Committees if any attended by them and 2. Commission on profits. The Shareholders have approved the payment of commission to Non Executive and Independent Directors within the overall maximum ceiling limit of 1 of the net profits of the Company for a period of five years with effect from 1st April 2014 in addition to the sitting fee being paid by the Company for attending the Board/ Committee Meetings. The compensation is reviewed periodically taking into consideration various factors such as performance of the Company time spent by the directors for attending to the affairs and business of the Company and the extent of responsibilities cast on the directors under various laws and other relevant factors. The Board approved the payment of commission of `1.25 million to each Non Executive Independent Director of the Company for the year ended 31st March 2016. The aggregate commission payable to all non-executive directors is well within the limits approved by the shareholders and in line with the provisions of the Companies Act 2013. c Senior Management Employees In determining the remuneration of Senior Management Employees ie KMPs and Executive Committee Members the NR Committee shall ensure/consider the following : i The relationship of remuneration and performance benchmark is clear ii The balance between fixed and incentive pay reflecting short and long term performance objectives is appropriate to the working of the Company and its goals iii The remuneration is divided into two components viz fixed component comprising salaries perquisites and retirement benefits and a variable component comprising performance bonus. iv The remuneration including annual increment and performance bonus is decided based on the criticality of the roles and responsibilities the Company’s performance vis-à-vis the annual budget achievement individuals performance vis-à-vis KRAs/KPIs industry benchmarks and current compensation trends in the market. v The Managing Director will carry out the individual performance review based on the standard appraisal matrix and shall take into account the appraisal score card and other factors mentioned hereinabove whilst recommending the annual increments and performance incentives to the NR Committee for its review and approval. e Performance Evaluation of the Board and the Directors Pursuant to the provisions of the Companies Act 2013 and Regulation 17 of the Listing Regulations the Board has carried out the annual performance evaluation of its own performance and the Directors individually. A structured questionnaire was prepared after taking into consideration inputs received from the Directors covering various aspects of the Board’s functioning such as adequacy of the composition of the Board and its Committees Board culture execution and performance of specific duties obligations and governance. A separate exercise was carried out to evaluate the performance of individual directors including the Chairman of the Board who were evaluated on parameters such as level of engagement and contribution independence of judgement safeguarding the interests of the Company and its minority shareholders etc. The performance evaluation of the Chairman and the Executive Directors was carried out by the Independent Directors. The performance evaluation of the Independent Directors was carried out by the entire Board. The Directors expressed their satisfaction with the overall evaluation process.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 100 101 Statutory Section f. Remuneration of Directors The details of the remuneration paid/accrued to the Directors for the year ended 31st March 2016 is given below: `in million Name of the Director Remuneration paid/payable for the year ended 31st March 2016 Sitting Fee Remuneration Commission Total Fixed pay Variable Pay Dr. Prathap C Reddy - 64.15 38.14 33.90 136.19 Smt. Preetha Reddy - 29.16 19.04 - 48.20 Smt. Suneeta Reddy - 29.16 19.04 - 48.20 Smt. Shobana Kamineni - 29.16 20.50 - 49.66 Smt. Sangita Reddy - 29.16 17.83 - 46.99 Shri. Rajkumar Menon 0.70 - 1.25 1.95 Shri. Rafeeque Ahamed 0.20 - 1.25 1.45 Shri. Habibullah Badsha 0.25 - 1.25 1.50 Shri. Deepak Vaidya 0.55 - 1.25 1.80 Shri. N. Vaghul 0.30 - 1.25 1.55 Shri.G.Venkatraman 0.55 - 1.25 1.80 Shri. Sanjay Nayar 0.15 - 1.25 1.40 Shri Vinayak Chatterjee 0.25 1.25 1.50 Notes: i The term of the executive directors independent directors is for a period of 5 years from the respective dates of appointment. ii The Company does not have any service contract with any of the directors. iii None of the above persons is eligible for any severance pay. iv Commission to the Non-Executive Directors for the year ended 31st March 2016 `1.25 million each per annum will be paid subject to deduction of tax after adoption of accounts by shareholders at the Annual General Meeting to be held on 12th August 2016. Sitting fee also includes payment of fees for attending Board-level Committee Meetings. v The Company has no stock option plans and hence such an instrument does not form part of the remuneration package payable to any Executive Director. vi The Company did not advance any loan to any of its directors during the year. Pecuniary relationships or transactions of Non executive directors vis-à-vis the Company The Company does not have any direct pecuniary relationship/transaction with any of its Non Executive Directors. 3. Stakeholders Relationship Committee a Composition and Scope of the Stakeholders Relationship Committee The Stakeholders Relationship Committee specifically looks into issues such as redressing of shareholders’ and investors’ complaints such as transfer of shares non-receipt of shares non-receipt of declared dividends and ensuring expeditious share transfers and also redresses the grievances of deposit holders debenture holders and other security holders. This Committee comprises of the following Directors:- 1. Shri. Rajkumar Menon Chairman 2. Smt. Preetha Reddy and 3. Smt. Suneeta Reddy b Meetings of the Stakeholders Relationship Committee The Committee met four times during the year on 11th April 2015 8th July 2015 10th October 2015 and 12th January 2016. Sl. No Name of the Member Designation No. of Meetings Held No.of Meetings attended 1. Shri. Rajkumar Menon Chairman 4 4 2. Smt. Preetha Reddy Member 4 4 3. Smt. Suneeta Reddy Member 4 4 Name and designation of the Compliance Officer: Shri. S.M. Krishnan Vice President – Finance and Company Secretary. c Shareholders’ Services The status on the total number of requests / complaints received during the year was as follows: Sl. No. Nature of Complaints/Requests Received Replied Pending 1. Change of Address 126 126 - 2. Revalidation and issue of duplicate dividend warrants 167 167 - 3. Share transfers 113 113 - 4. Split of Shares 13 13 - 5. Stop Transfers - - - 6. Change of Bank Mandate 106 106 - 7. Correction of Name 1 1 - 8. Dematerialisation Confirmation 395 395 - 9. Rematerialisation of shares 27 27 - 10. Issue of duplicate share certificates 25 25 - 11. Transmission of shares 73 73 - 12. General enquiry 245 245 - The Company usually attended to the investor grievances/correspondences within a period of 2 days from the date of receipt of the same during the financial year except in cases that were constrained by disputes and legal impediments.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 102 103 Statutory Section d Legal Proceedings There are four pending cases relating to dispute over the title to shares in which Company had been made a party. However these cases are not material in nature. 4. Corporate Social Responsibility Committee The composition of the Corporate Social Responsbility Committee as at March 31 2016 and the details of Members’ participation at the Meetings of the Committee are as under Sl. No Name of the Member Designation No. of Meetings Held No.of Meetings attended 1. Dr. Prathap C Reddy Chairman 2 2 2. Smt. Preetha Reddy Member 2 2 3. Shri. N. Vaghul Member 2 2 4. Shri. G. Venkatraman Member 2 2 The terms of reference of the Committee include the following:- • To formulate and recommend to the boar d a C SR policy which w il l ind icate the act i v i t ies to be undertaken by the company as well as the amount of expenditure to be incurred on the activities referred to in the CSR policy. • To moni tor the C SR act i v i t ies f rom t ime to t ime. • To prepare a tr ansparent moni tor ing mechanism for ensur ing implementat ion o f the projects / programmes / activities proposed to be undertaken by the Company. • To repor t in the prescr ibed format the details o f the C SR ini t iat i ves in the Directors’ Repor t and in the Company’s website. • The Company under took the fol low ing projects as spec i f ied in Schedule VII o f the Companies A ct 2013. a. Preventive Healthcare encompassing free health and medical screening camps. b. Education/Vocational skilling initiatives c. Rural Development. During the financial year the company contributed a total of `86.44 million to CSR activities and constituted a team to monitor its progress. The report on CSR activities is annexed herewith as Annesure A to the Directors Report. 5. Risk Management Committee Business Risk Evaluation and Management is an ongoing process within the Organization. The Company has a robust risk management framework to identify monitor and minimize risks. The objectives and scope of the Risk Management Committee broadly comprises: • Oversight o f r isk management per formed by the execut i ve management • Rev iew ing the BRM policy and f r amework in line w i th local legal requ irements and SEBI gu idelines • Rev iew ing r isks and ini t iat ing mi t igat ion act ions and r isk ownership as per a pre-def ined cy cle • Def ining f r amework for ident i f icat ion assessment moni tor ing mi t igat ion and repor t ing o f r isks. Wi thin its overall scope as aforesaid the Committee shall review risks trends exposure potential impact analysis and mitigation plans. The composition of the Risk Management Committee as at March 31 2016 and the details of Members’ participation at the Meetings of the Committee are as under: Sl. No Name of the Member Designation No. of Meetings Held No.of Meetings attended 1. Smt. Suneeta Reddy Chairperson 1 1 2. Smt. Preetha Reddy Member 1 1 3. Shri. Vinayak Chatterjee Member 1 1 4. Dr. K. Hariprasad Member 1 1 5. Dr. Sathyabhama Member 1 1 6. Investment Committee a Composition and Scope of the Investment Committee The Investment Committee comprises of a majority of Independent Directors and consists of the following members. 1. Shri.N. Vaghul 2. Shri. Deepak Vaidya 3. Shri. Vinayak Chatterjee 4. Smt. Preetha Reddy 5. Smt. Suneeta Reddy The scope of the Investment Committee is to review and recommend investments in new activities planned by the Company. 7. Share Transfer Committee Composition and Scope of the Share Transfer Committee The Share Transfer committee comprises of the following directors: 1. Smt. Preetha Reddy 2. Shri. Rajkumar Menon 3. Shri. Rafeeque Ahamed The Share Transfer Committee constituted by the Board has been delegated powers to administer the following:- • To effect tr ansfer o f shares • To effect tr ansmission o f shares • To issue duplicate share cer t i f icates as and when requ ired and • To conf irm demat/ remat requests The Committee attends to share transfers and other formalities once in a fortnight

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 104 105 Statutory Section 4. General Body Meetings The location date and time of the Annual General Meetings held during the preceding three years are given below: Year Date Venue Time Special Resolutions Passed 2012-2013 7th August 2013 The Music Academy Chennai 10.15 A.M. a. Appointment of Smt. Sindoori Reddy as Vice President – Operations under the provisions of Section 314 of the Companies Act 1956 b. Alteration of Articles of Association of the Company 2013-2014 25th August 2014 The Music Academy Chennai 10.30 A.M. a. Payment of commission to Non-Executive Directors within the overall ceiling limit of 1 of net profit of the company for a period of five years with effect from 1st April 2014 b. Maintenance of Register of Members and other statutory registers at a place other than the Registered Office of the Company c. Revision in the borrowing limits of the company upto a sum of `25000 million. d. Mortgaging the assets of the company in favour of Financial Institutions Banks and other lenders for securing their loans up to sum of `25000 million. e. Acceptance of Unsecured/ secured deposits from the public and members. f. Offer / Invitation to subscribe to NCDs on a private placement basis. 2014-2015 11th August 2015 The Music Academy Chennai 10.30 A.M. No special resolution was passed. Postal Ballots During the year no ordinary or special resolutions were passed by the members through Postal Ballot. 5. Means of Communication The unaudited quarterly/half yearly financial statements are announced within forty five days from the end of the quarter. The aforesaid financial statements are taken on record by the Board of Directors and are communicated to the Stock Exchanges where the Company’s securities are listed. Once the Stock Exchanges have been intimated these results are communicated by way of a Press Release to various new agencies/analysts and published within 48 hours in two leading daily newspapers - one in English and one in Tamil. The audited annual results are announced within sixty days from the end of the last quarter as stipulated under the Listing Agreement with the Stock Exchanges. For the financial year ended 31st March 2016 the audited annual results were announced on 25th May 2016. The audited annual results are taken on record by the Board of Directors and are communicated to the Stock Exchanges where these results are communicated by way of a Press Release to various news agencies/analysts and are also published within 48 hours in two leading daily newspapers - one in English and one in Tamil. The audited financial results form a part of the Annual Report which is sent to the Shareholders prior to the Annual General Meeting. The quarterly half-yearly and annual results of the Company are published in leading newspapers in India which include Economic Times Business Standard The Hindu Business Line and Makkal Kural. The results are also posted on the Company’s website “www.apollohospitals.com”. Press Release made by the Company from time to time are also posted on the Company’s website. Presentations made to the institutional investors and analysts after the declaration of the quarterly half-yearly and annual results are also posted on the Company’s website. The Company also informs by way of intimation to the Stock Exchanges all price sensitive information or such other matters which in its opinion are material and of relevance to the shareholders. Reminder to Investors : Reminders for unclaimed dividend/interest are sent to the shareholders as per records every year. NSE Electronic Application Processing System NEAPS : BSE Corporate Compliance Listing Centre : The NEAPS/ BSE’s listing centre is a web-based application designed for coporates. All periodic compliance related filings and other material information is filed electronically on the designated portals. SEBI Complaints Redress System SCORES: Investor Complaints are processed in a centralised web based complaints redress system. The salient feature of this system are centralised database of all complaints online upload of Action Taken Reports ATRS by the concerned companies and online viewing by investors of action taken on the complaint and its current status. 6. Other Disclosures a Related Party Transactions There were no materially significant related party transactions or pecuniary transactions or relationships between the Company and its directors promoters or the management that may have a potential conflict with the interests of the Company at large except the details of transactions disclosed in Notes forming part of the Accounts as required under Accounting Standard 18 of the Institute of Chartered Accountants of India. All related party transactions are negotiated on an arms length basis. All details relating to financial and commercial transactions where directors may have a potential interest are provided to the Board and the interested Directors neither participate in the discussions nor do they vote on such matters. The Audit Committee of the Company also reviews related party transactions periodically. The Board has approved a policy for related party transactions which has been uploaded on the Company’s website. b Vigil Mechanism/Whistle Blower Policy The Apollo Hospitals Group believes in the conduct of affairs in a fair and transparent manner by adopting the highest standards of professionalism honesty integrity and ethical behaviour and is committed to developing a culture where it is safe for all employees to raise concerns about any unacceptable practice or any event of misconduct. The organization provides a platform for directors and employees to disclose information internally which he/she believes shows serious malpractice impropriety abuse or wrong doing within the company without fear of reprisal or victimization. Further assurance is also provided to the directors and employees that prompt action will be taken to investigate complaints made in good faith.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 106 107 Statutory Section The Ethics helpline can be contacted to report any suspected or confirmed incident of fraud/misconduct on: The Chairman Group Compliance Committee Apollo Hospitals Enterprise Limited Mezzanine Floor Ali Towers 55 Greams Road Chennai – 600 006 Tel : 91-44-2829 6716 Email:gccapollohospitals.com c Subsidiaries Your Company does not have any Material non-listed Subsidiary Company whose turnover or networth exceeded 20 of the consolidated turnover or networth respectively of the Company and its subsidiaries in the immediately preceding accounting year. The Company has formulated a policy for determining Material Subsidiaries and the same has been posted on the website www.apollohospitals.com d Accounting Treatment The Company follows Accounting Standards issued by the Institute of Chartered Accountants of India and in preparation of financial statements the Company has not adopted a treatment different from that prescribed by any Accounting Standard. The significant accounting policies which are consistently applied have been set out in the Notes to the Financial Statements. e Internal Controls The Company has a formal system of internal control testing which examines both the design effectiveness and operational effectiveness to ensure reliability of financial and operational information and all statutory / regulatory compliances. The Company has a strong monitoring and reporting process resulting in financial discipline and accountability. f Risk Management Business Risk Evaluation and management of such risks is an ongoing process within the organization. The Board has constituted a Risk Management Committee headed by the Managing Director which reviews the probability of risk events that adversely affect the operations and profitability of the Company and suggests suitable measures to mitigate such risks. A Risk Management Framework is already in place and the Executive Management reports to the Board periodically on the assessment and minimization of risks. g Proceeds of Public Rights and Preferential Issues During the year the Company had not issued or allotted any securities. h Management The Management’s Discussion and Analysis Report is appended to this report. i Shareholders 1 Disclosures regarding appointment or re-appointment of Directors As per the Companies Act 2013 atleast two thirds of the Board should consist of retiring Directors of these atleast one third are required to retire every year. Except the Chairman Managing Director and Non Executive Independent Directors other Directors are liable to retire by rotation as per the provisions of the Companies Act 2013. During the year Smt. Shobana Kamineni will retire and is eligible for re-appointment at the ensuing Annual General Meeting. The detailed resume of the director is provided as part of the Notice of the Annual General Meeting. 2 Investors’ Grievances and Share Transfer As mentioned earlier the Company has a Board-level Stakeholders Relationship Committee to examine and redress shareholders and investors’ complaints. The status on complaints and share transfers is reported to the Committee. The details of shares transferred and nature of complaints is provided in this Report. For matters regarding shares transferred in physical form share certificates dividends change of address etc. shareholders should send in their communications to Integrated Enterprises India Ltd our Registrar and Share Transfer Agent. Their address is given in the section on Shareholder Information. j Details of Non-Compliances There are no non-compliances by the Company and no penalties or strictures have been imposed on the Company by the Stock Exchanges or SEBI or any statutory authority on any matter related to capital markets during the last three years. k Compliance with Corporate Governance Norms a Mandatory Requirements The Company has complied with all the mandatory requirements of Corporate Governance norms as enumerated in the Listing Regulations. The requirements of Regulation 17 to 27 and clauses b to i of sub-regulation 2 of Regulation 46 of the Listing Regulations to the extent applicable to the Company have been complied with as disclosed in this report. b Discret ionar y Requ irements The Company has duly fulfilled the following discretionary requirements as prescribed in Schedule II Part E of the SEBI Listing Regulations. 1. The Board : a There is no Non-Executive Chairman for the Company. 2. Shareholder Rights : Details are given under the heading ‘Communication to Shareholders’

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 108 109 Statutory Section 3. Modified opinions in Audit Report. During the year under review there was no audit qualification in the Company’s financial statements. 4. Separate post of Chairman and CEO. The Company has appointed separate persons for the office of Chairman and Managing Director 5. Reporting of the Internal Auditor The Company has Internal Auditors who report directly to the Audit Committee. 7. CEO/CFO Certification The Managing Director and Chief Financial Officer have issued a certificate pursuant to Regulation 17 of Listing Regulations certifying that the financial statements do not contain any untrue statement and these statements represent a true and fair view of the Company’s affairs. The said certificate from Smt. Suneeta Reddy Managing Director and Shri. Krishnan Akhileswaran Chief Financial Officer was placed before the Board of Directors at their meeting held on 25th May 2016. 8. Auditors Report on Corporate Governance The auditors’ certificate on compliance of Corporate Governance norms is annexed to this Report. 9. General Shareholders’ information i AGM date time and venue 12th August 2016 at 10.15 a.m. Kamaraj Arangam NO. 492 Anna Salai Chennai 600 006 ii Financial Year 1st April to 31st March AGM in August iii Dividend Payment The Interim dividend for the financial year ended 31st March 2016 at the rate of `6/- per share was paid to the shareholders on 29th March 2016 iv Listing of 1 Equity Shares i Bombay Stock Exchange Ltd BSE Phiroze Jheejheebhoy Towers Dalal Street Mumbai – 400 001 Tel :91-22-2272 1234 1233 Fax : 91-22-2272 3353/3355 Website : www.bseindia.com ii National Stock Exchange of India NSE Exchange Plaza Bandra-Kurla Complex Bandra E Mumbai – 400 051 Tel : 91-22-2659 8100 - 8114 Fax : 91-22-26598237/38 Website : www.nseindia.com 2 GDRs EuroMTF of Luxembourg Stock Exchange BP 165 L-2011 Luxembourg Traded at :Nasdaq – Portal Market 3 Non Convertible Debentures Wholesale Debt Market Segment of National Stock Exchange of India Exchange Plaza Bandra-Kurla Complex Bandra E Mumbai – 400 051 Tel : 91-22-2659 8100 - 8114 Fax : 91-22-26598237/38 Website : www.nseindia.com 4 Listing Fees Paid for all the above stock exchanges for 2015- 2016 and 2016-2017. v Address of Registered Office No. 19 Bishop Gardens Raja Annamalaipuram Chennai – 600 028. vi a Stock Exchange Security Code for 1 Equity Shares i The Bombay Stock Exchange Limited Mumbai ii National Stock Exchange of India Limited Mumbai 508869 APOLLOHOSP 2 GDRs i Luxembourg Stock Exchange US0376082055 ii Nasdaq – Portal Market AHELYP05 3 Non Convertible Debentures a National Stock Exchange of India Limited Mumbai APOL 17 APOL20 APOL21 APOL28 b Corporate Identity Number CIN of the Company L85110TN1979PLC008035 c Demat ISIN Numbers in NSDL CDSL for Equity Shares INE437A01024 d ISIN Numbers of GDRs Reg.S GDRs - US0376082055 Rule 144a GDRs – US0376081065

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 110 111 Statutory Section e ISIN Numbers of Debentures INE437A07062 INE437A07070 INE437A07088 INE437A07093 f Overseas Depositary for GDRs The Bank of New York Mellon New York NY 10286 101 Barclay Street 22W g Domestic Custodian for GDRs ICICI Bank Limited Securities Markets Services 1st Floor Empire Complex 414 Senapati Bapat Marg Lower Parel Mumbai – 400 013 Tel. +91-22-6667 2026 Fax +91-22-6667 2779/2740 h Trustee for Debenture Holders Axis Trustee Services Limited 2nd floor Axis Bank Building Bombay Dyeing Pandurang Bhudkar Marg Worli Mumbai - 400025 Tel. +91-22- 24255212 Fax +91-22-6667 2779/2740 vii Monthly High and Low quotations along with the volume of shares traded in NSE BSE during the year 2015-16 Month National Stock Exchange NSE The Bombay Stock Exchange BSE High Low Volume High Low Volume ` Numbers ` Numbers Apr-2015 1429.80 1130.00 5601735 1428.15 1131.80 190085 May-2015 1333.00 1143.00 4615940 1335.00 1136.15 283294 Jun-2015 1326.00 1150.00 4668332 1327.00 1150.00 285763 Jul-2015 1404.40 1280.60 5006824 1403.55 1285.00 197803 Aug-2015 1476.20 1195.00 5114001 1475.00 1196.50 322432 Sep-2015 1455.00 1242.05 3532403 1455.65 1245.00 437819 Oct-2015 1515.90 1301.55 3767655 1515.70 1302.00 207274 Nov-2015 1374.00 1213.00 4008131 1370.00 1213.35 227771 Dec-2015 1471.15 1311.00 4117695 1461.00 1315.95 213010 Jan-2016 1497.70 1330.80 4187765 1497.00 1330.00 315284 Feb-2016 1525.00 1340.00 3767498 1524.65 1340.50 325658 Mar-2016 1544.90 1292.00 5612507 1544.00 1294.55 297792 ix Registrar Share Transfer Agent: Integrated Enterprises India Limited “Kences Towers” II Floor No.1 Ramakrishna Street North Usman Road T. Nagar Chennai – 600 017 Tel. No.: 044 – 2814 0801 2814 0803 Fax No.: 044 – 2814 2479 E-mail : sureshbabuintegratedindia.in x 1. Share Transfer System Share transfer requests for shares held in physical form received by the Company are processed and the share certificates are returned within the stipulated time under the Companies Act and the listing agreement provided that the documents received are in order and complete in all respects. Delays beyond the stipulated period were mainly due to disputes over the title to the shares. The shares transferred in physical form during the year are as under. 2015-2016 2014-2015 face value of `5/- face value of `5/- Shares Transferred 26079 469688 Total No. of Shares as on 31st March 139125159 139125159 on Share Capital 0.02 0.34 The Company obtains from a Company Secretary in Practice a half-yearly certificate of compliance with the share transfer formalities as required under Regulation 409 of the SEBI LODR Regulations 2015 and files a copy of the certificate with the Stock Exchanges. viii Apollo Price Vs Nifty 1700 1600 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 0 8000 7500 7000 6500 6000 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Nifty Apollo

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 112 113 Statutory Section 2 Change of Address Bank Details Nomination etc. All the members are requested to notify immediately any changes in their address email id bank mandate and nomination details to the Company’s Registrar and Share Transfer Agent Integrated Enterprises I Limited. Members holding shares in electronic segment are requested to notify the change of address email id bank details nomination etc to the depository participants DP with whom they maintain client accounts for effecting necessary corrections. Any intimation made to the Registrar without effecting the necessary correction with the DP cannot be updated. It is therefore necessary on the part of the shareholders to inform changes to their DPs with whom they have opened accounts. 3 Transfer of unclaimed amounts to the Investor Education and Protection Fund During the year the Company has transferred a sum of `2.40 million as unclaimed dividend to the Investor Education and Protection Fund pursuant to Section 205C of the Companies Act 1956 and the Investor Education and Protection Fund Awareness and Protection of Investor Rules 2001. 4 Distribution of Shareholdings as on 31st March 2016 No. of Equity Shares Shares Holders Physical Electronic Physical Electronic Nos. Nos. Nos. Nos. 1 500 845192 0.60 1817686 1.31 5552 15.48 27095 75.58 501 1000 369186 0.27 721827 0.52 490 1.37 942 2.63 1001 2000 395538 0.28 663119 0.48 232 0.65 428 1.19 2001 3000 283956 0.20 393861 0.28 106 0.30 156 0.44 3001 4000 300820 0.22 316872 0.23 84 0.23 89 0.25 4001 5000 69454 0.05 278053 0.20 15 0.04 60 0.17 5001 10000 606437 0.44 1049870 0.75 76 0.21 143 0.40 10001 above 438429 0.32 130574859 93.85 17 0.05 362 1.01 Total 3309012 2.38 135816147 97.62 6572 18.33 29275 81.67 Grand Total 139125159 35847 5 Categories of shareholders as on March 31 2016 Category code Category of Shareholder No. of Shaerholders Total number of shares Percentage to total no. of shares A Shareholding of Promoter and Promoter Group 1 Indian a Individuals/ Hindu Undivided Family 20 20555635 14.77 b Bodies Corporate 3 27237924 19.58 Sub Total A 1 23 47793559 34.35 Category code Category of Shareholder No. of Shaerholders Total number of shares Percentage to total no. of shares Total Shareholding of Promoter and Promoter Group 23 47793559 34.35 B Public shareholding 1 Institutions a Mutual Funds/ UTI 20 143343 0.10 b Financial Institutions / Banks 12 16118 0.01 c Central Government/ State Governments 1 323708 0.23 d Insurance Companies 4 871548 0.63 e Foreign Institutional Investors 449 62960810 45.25 f Others Foreign Bank 1 4117 - Sub-Total B1 487 64319644 46.23 B 2 Non-institutions a Bodies Corporate 590 788670 0.57 b Individuals i. Individual shareholders holding nominal share capital up to `1 lakh 32940 6131662 4.41 ii. Individual shareholders holding nominal share capital in excess of `1 lakh. 8 1052318 0.76 c Any Other Specify Trusts 24 139291 0.10 Directors and their relatives 6 91606 0.07 Foreign Nationals 2 750 - Non Resident Indians 1135 1374999 0.99 Overseas Corporate Bodies 1 16199 0.01 Clearing Member 90 113605 0.08 Hindu Undivided Families 531 117249 0.08 Foreign Corporate Bodies 4 16384259 11.78 Sub-Total B2 35331 26210608 18.84 B Total Public Shareholding B B1+B2 35818 90530252 65.07 TOTAL A+B 35846 138323811 99.42 C Global Depository Receipts GDRs 1 Promoter and Promoter Group Nil Nil Nil 2 Public 1 801348 0.58 C Total Public Shareholding C C1+C2 1 801348 0.58 Grand Total A+B+C 35847 139125159 100.00

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 114 115 Statutory Section 6 Top Ten Shareholdersother than Promoters as on 31st March 2016. S. No. Name No. of Shares 1 Integrated Mauritius Healthcare Holdings Limited 15093860 10.85 2 Oppenheimer Developing Markets Fund 12014785 8.64 3 Schroder International Selection Fund Asian Total Return 2729259 1.96 4 Munchener Ruckversicherungsgesellschaft Akliengesellschaft in Munchen 2397380 1.72 5 Fidelity Investment Trust - Fidelity Diversified International Fund 1724846 1.23 6 Mirae Asset Asia Great Consumer Equity Fund 1414209 1.02 7 International Finance Corporation 1290149 0.93 8 Copthall Mauritius Investment Limited 1166141 0.84 9 Vanguard International Explorer Fund 940155 0.68 10 Fidelity Securities Fund - Fidelity Bluechip Growth Fund 936371 0.67 Total 39707155 28.54 GDRs : The details of high / low market prices of the GDRs at The Luxembourg Stock Exchange and Rule 144 A GDRs at Portal Market of NASDAQ during the financial year 2015-2016 are as under Month Reg. S Rule 144 - A High Low Closing High Low Closing Apr-2015 22.68 17.90 17.90 22.47 17.92 17.92 May-2015 20.61 18.19 18.99 20.64 18.25 19.06 Jun-2015 20.67 18.33 20.67 20.59 18.34 20.07 Jul-2015 21.63 20.47 21.21 21.71 20.55 21.37 Aug-2015 22.64 18.80 20.16 22.51 18.74 20.20 Sep-2015 21.96 19.74 21.96 22.04 19.06 22.04 Oct-2015 22.92 20.09 20.09 22.90 20.08 20.08 Nov-2015 20.86 18.88 19.73 20.97 18.89 19.87 Dec-2015 22.17 20.14 22.17 22.11 20.21 22.11 Jan-2016 22.04 19.99 21.70 22.05 19.83 21.69 Feb-2016 22.09 20.59 21.39 22.08 20.52 21.50 Mar-2016 22.16 19.90 20.07 22.31 19.97 20.23 Note : 1 GDR 1 equity share. xi 1 Dematerialization of Shares As on 31st March 2016 97.62 of the Company’s paid up equity capital was held in dematerialized form. Trading in equity shares of the Company is permitted only in dematerialized form as per a notification issued by the Securities and Exchange Board of India SEBI. 2 Reconciliation of Share Capital Audit Report As stipulated by the Securities and Exchange Board of India a qualified Practising Company Secretary carries out the Audit to reconcile the total admitted capital with National Securities Depository Limited NSDL and Central Depository Services India Limited CDSL and the total listed and paid up capital. This audit is carried out every quarter and the report thereon is submitted to the Stock Exchanges and is also placed before the Board of Directors. The audit interalia confirms that the total listed and paid up capital of the Company is in agreement with the aggregate of the total number of shares in dematerialised form held with NSDL and CDSL and total number of shares in physical form. xii Outstanding GDRs or Warrants or any convertible instrument conversion dates and likely impact on equity i Pursuant to the resolution passed by the members in an Extraordinary General Meeting held on 24th May 2005 the Company had issued 9000000 Global Depositary Receipts GDRs and the details of GDRs issued and converted and outstanding after adjusting the split of face value of 5/- per share as on 31st March 2016 are given below : Particulars Nos. Nos. Total GDRs issued 18000000 Add : Equity Shares converted into GDRs during 2011-2012 7689329 2012-2013 10949 2013-2014 439944 2014-2015 400 2015-2016 22114 8162736 Less : GDRs converted into underlying equity shares 2005-2006 4415068 2006-2007 2346712 2007-2008 1515600 2008-2009 347020 2009-2010 49600 2010-2011 6263200 2011-2012 5396660 2012-2013 4597869 2013-2014 147449 2014-2015 22354 2015-2016 259856 25361388 Outstanding GDRs as on 31st March 2016 801348 There is no change in the issued equity on conversion of GDRs into equity shares

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 116 117 Statutory Section xiiiEquity Shares in the unclaimed suspense account: In accordance with the requirement of Regulation 343 of and Schedule V Part F of SEBI Listing Regulations the Company reports the following details in respect of equity shares lying in the suspense account. The list of unclaimed shares is being posted in the company’s website under the column “Investor Relations”. The voting rights on the shares outstanding in the suspense account as on 31st March 2016 shall remain frozen till the rightful owner of such shares claims the shares. Aggregate Number of Shareholders relating to the shares lying in the unclaimed suspense account 1626 Aggregate Number of the outstanding equity shares lying in the unclaimed suspense account 416748 Number of shareholder who approached the Company for transfer of shares from the unclaimed suspense account during the financial year 2015-2016 37 Number of shares transferred from the unclaimed suspense account during the financial year 2015-2016 7950 Aggregate Number of Shareholders relating to the shares lying in the unclaimed suspense account at the end of the financial year 2015-2016 1557 Aggregate Number of the outstanding equity shares lying in the unclaimed suspense account at the end of the financial year 2015-2016 408798 xiv Investors Correspondence a. For queries relating to shares Shri. Suresh Babu Sr. Vice President Integrated Enterprises India Limited “Kences Towers” II FloorNo.1 Ramakrishna Street North Usman Road T. Nagar Chennai – 600 017 Tel. No.: 044 – 2814 0801 2814 0803 Fax No.: 044 – 2814 2479 E-mail : sureshbabuintegratedindia.in b. For queries relating to dividend Shri. L. Lakshmi Narayana Reddy Sr. General Manager -Secretarial Apollo Hospitals Enterprise Limited Ali Towers III Floor No. 55 Greams Road Chennai -600 006. Tel. No.: 044 -2829 0956 2829 3896 Fax No.: 044 -2829 0956 E-mail : apollosharesvsnl.net lakshminarayana_rapollohospitals.com Designated Exclusive email-id: The company has designated the following email-id exclusively for investor grievances/services. investor.relationsapollohospitals.com xv Hospital Complexes Apollo Hospitals Group Chennai No. 21 24 Greams Lane Off. Greams Road Chennai – 600 006 Tel : 044 2829 3333/ 28290200 320 Anna Salai Nandanam Chennai – 600 035 Tel : 044 2433 1741 2433 6119 4229 1111 No. 646 T.H. Road Tondiarpet Chennai – 600 081. Tel : 044 2591 3333 2591 5858 Apollo First Med Hospital No.159 E.V.R. Periyar Salai Chennai – 600 010. Tel : 044 2821 1111 2821 2222 Apollo Children Hospital 15-A Shafi Mohammed Road Chennai – 600 006 Tel : 044 2829 8282 2829 6262 Apollo Royal Women Hospital Shafi Mohammed Road Chennai – 600 006 Tel :044 2829 6262 New No. 6 Old No. 24 Cenotaph RoadChennai – 600 018 Tel : 044 2433 4455 No. 134 Mint Street Sowcarpet Chennai – 600 079 Tel : 044 2529 6080/84 No.64 Vanagaram to Ambattur Main Road Chennai-600 095 Tel :044-2653 7777 2/319 Rajiv Gandhi Salai OMR Karapakkam Chennai – 600 097 Tel : 044-24505700 No.5/639 Old Mahabalipuram Road Kandanchavadi Chennai – 600 096 Tel : 044-2496 3697 Madurai Lake View Road K.K.Nagar Madurai–625 020 Tel : 0452 – 2580 199/2580 892/ 893 Apollo First Med Hospital No.484 B-West First Street Near District Court KK Nagar Madurai – 625 020. Tel : 0452-2526810 Karur Apollo Hospital No. 163 Allwyn Nagar Kovai Road Karur – 639 002. Tel. : 04324 - 241900 Karaikudi Managiri Sukkanenthal Village Thalakkavur Panchayat Kallal Panchayat Union Karaikudi – 630 001 Tel.045 65223700 Tiruchirappalli Varaganeri Village Chennai Madurai Bypass Road Tiruchirappalli Tel: 0431 3307777 Aragonda Thavanampallee Mandal Chittoor District Andhra Pradesh – 517 129 Tel : 08573-283 220 221 222 231 Hyderabad 8-2-293/82-J-III/DH/900 Phase III - Jubilee Hills Hyderabad – 500 033 Tel : 040-2360 7777

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 118 119 Statutory Section H.No. 3-5-836837 838 Old MLA Quarters Hyderguda Hyderabad – 500 029 Tel.: 040-2323 1380 2338 8338 Apollo Hospitals – DRDO 18-14 DMRL ‘X’ Roads Kanchanbagh Hyderabad – 500 058 Tel. No. 040 – 2434 2222 / 2211 / 3333 22-1-26/1 22-1-25/1 Bhagyanagar Colony Kukatpally Hyderabad – 500 072 Tel. No. 040 – 2316 0039/41 PET-CT Scan Centre Apollo Hospitals Complex Jubilee Hills Hyderabad – 500 033 Tel.No. : 040-2360 7777 H-No. 9-1-87/1 Polisetty Towers St. Johns Road Secunderabad – 500 003 Tel. No. 040-2771 8888 Nellore H.No. 16-111-1133 Muthkur Road Pinakini Nagar Nellore – 524 004. Tel.0861 2301066/2321077 Karim Nagar Apollo Reach Hospital H.No.G.P.No.4-72 Subhash Nagar Theegalgutta Pally G.P.Arepally Rev. Village Karim Nagar – 505 001. Tel. No.0878 220 0000 Visakapatnam No.10-50-80 Waltair Main Road Visakapatnam – 530 002 Tel.No.0891-272 7272 252 9619 APIIC Health City Near Hanumanthvaka Junction Visakhapatnam - 530 040 Tel. No. 0891 - 2867777 Kakinada H-No. 13-1-3 Surya Rao Peta Main Road Kakinada – 533 001 Tel.No. 0884 – 2345 700/800/900 Mysore Apollo BGS Hospitals Adichunchanagiri Road Kuvempu Nagar Mysore – 570 023 Tel. No. 0821 – 256 6666 256 8888 Bilaspur Lingiyadi Village Bilaspur – 495 001 Chattisgarh Tel : 07752–240390 /243300-02 Bhubaneswar 251 Sainik School Unit 15 Bhubaneswar – 751 003 Tel.0674 6661016/1066/0413 Nashik Swamy Narayan Nagar Off Mumbai Agra Highway Near Lunge Mangal Karyalaya Panchavati Nashik – 422 003 Tel : 0253-2510350/0510450 Navi Mumbai Plot 13 Sector 23 Parsik Hill Road Off Uran Road CBD Belapur Navi Mumbai 400 614 Tel : 022-3350 3350 Indore Scheme No. 74C Sector D Vijay Nagar Indore - 452 010 Madhya Pradhesh Tel. No. 0731 - 2445566 Bangalore 154/11 Bannerghatta Road Opp. IIM Bangalore – 560 076 Tel. No. 080-4030 4050 1533 9th Main Road 3rd Block Jayanagar Bangalore – 560 011 Tel. No. 080-4020 2222 New No. 1 old No. 28 Platform Road Seshadripuram Bangalore – 560 020 Tel. No.080-4668 9999/8888 Lavasa 7th Dasve Circle Darve Village Post Mulshi Lalukka Pune - 412 112 Tel. No. 020 - 6677 1111 6611 1000 Assam Lotus Towers 175 GS Road Guwahati – 781 005 Tel. No. 0361-2347700-03/7135005 Ahmedabad Plot No.1A GIDC Estate Bhat Village Gandhi Nagar Gujarat – 382 428 Tel : 079-6670 1800 Kolkata No.58 Canal Circular Road Kolkata – 700 054 Tel : 033-2320 3040 New Delhi Sarita Vihar Delhi Mathura Road New Delhi – 110 044 Tel. No. 011-2692 5858 Other Health Centres Woodhead Tower No. 12 CP Ramaswamy Road Alwarpet Chennai – 600 018 Tel. No. 044-04672200/24988866 Apol lo Hear t Centre 156 Greams Road Chennai – 600 006 Tel : 044 2829 6923 Apollo Medical Centre Plot No. C-150 6th Cross Thillai Nagar Trichy – 620 018 Tel. No.0431-2740864 Apollo Emergency Centre Rajiv Gandhi International Airport Samshabad Hospital. Tel.:040-2400 8346 Apollo Gleneagles Clinic 48/1F Leela Roy Sarani Ghariahat Kolkata – 700 019 Tel : 033 2461 8028 City Center 1 Tulsibaug Society Opp. Doctor House Ellisbridge Ahmedabad – 380 006 Tel. No. 079 6630 5800 Apollo Clinic KR 28 VIP Road Port Blair Andaman 744 101 Tel : 03192 233550 Declaration under the SEBI Listing Obligations and Disclosure Requirements Regulations 2015 regarding adherence to the Code of Conduct I Suneeta Reddy Managing Director of the Company hereby declare that the Board of Directors has laid down a Code of Conduct for its Board Members and Senior Management Personnel of the Company and they have affirmed compliance with the said code of conduct. For APOLLO HOSPITALS ENTERPRISE LIMITED Suneeta Reddy Managing Director Place : Chennai Date : 25th May 2016

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 120 Business Review 121 Auditors’ Report on Corporate Governance To The Members Apollo Hospitals Enterprise Limited We have examined the compliance of regulations of Corporate Governance by Apollo Hospitals Enterprise Limited for the year ended 31st March 2016 as stipulated in regulations Part C of Schedule V of the SEBI Listing Obligations and Disclosure Requirements Regulations 2015 “Listing Regulations”. The compliance of regulations of Corporate Governance is the responsibility of the management. Our examination was limited to procedures and implementation thereof adopted by the Company for ensuring the compliance of the regulations of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. In our opinion and to the best of our information and according to the explanations given to us we certify that the Company has complied with the regulations of Corporate Governance as stipulated in the above-mentioned Listing Regulations. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company. 17 Bishop Wallers Avenue West For S. VISWANATHAN LLP CIT Colony Mylapore Chartered Accountants Chennai – 600 004 V.C. KRISHNAN Dated: 25th May 2016 Partner Management Discussion and Analysis Source: WHO 2015 Bed availability in India stood at 7 per 10000 in 2015 which was significantly lower than the global average of 27 beds for a population of 10000. In terms of availability of medical staff the number of doctors and nurses available for every 10000 population was at 7 and 17.1 in India compared to the global average of 13.9 doctors and 28.6 nurses per 10000 population. The relatively lower penetration of Medical Insurance has resulted in high out-of- pocket health expenditure at 86 as compared to 52 which is the norm globally. Industry Structure Developments General Overview – The Healthcare Ecosystem in India India has progressed on several parameters since economic liberalisation started in 1991. However even as the country has made giant strides in manufacturing services research development and in developing a vibrant economic landscape it continues to progress slowly on several social indicators. In India the under-development of healthcare infrastructure is largely attributed to under investment by the public sector. India lags far behind as far as healthcare spending is concerned in comparison to the global average. In India healthcare spend as a percent of total GDP stands at 3.8 as compared to the global average of 8.6.The per capital healthcare expenditure in India stands at 58 as compared to 1025 which is the global average. 60 50 40 30 20 10 0 Healthcare spend as a of GDP Public Spending on Health as a of total Govt spending Public Spending on Health as a of total Healthcare spending India US China Brazil Global 3 4 30 18 20 48 5 12 56 9 8 48 8 13 56

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 122 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 122 123 Major Infrastructure Indicators India US China Brazil Global Beds per 10000 population 7 38 23 29 27 Doctors per 10000 population 7 14.9 18.9 24.5 13.9 Nurses per 10000 population 17.1 16.6 76 NA 28.6 Dentists per 10000 population 1 NA 12.2 - 2.8 Source: WHO 2015 Due to the large deficit in investment in healthcare in India and the lack of emphasis by the public healthcare sector on elevating socio economic indicators there has been a significant gap in the supply of healthcare services of an acceptable standard leading to a significant emergence of private healthcare service providers in the country. Today the private healthcare sector in India has evolved into a vibrant industry accounting for around 70 of the country’s total healthcare expenditure. Large investments by the private sector players are likely to contribute significantly to the development of the sector which is poised to reach 280 billion by 2020 witnessing a compounded annual growth rate CAGR of 22.9 per cent during 2015-20. This is mainly due to the prevalence of favourable dynamics which are expected to sustain the demand for healthcare. Having seen the private sector deliver outstanding results with limited resources the bar has been raised for standards of healthcare for citizens of the country. The public sector has recalibrated its focus and accelerated its effort and outlay towards the sector. The Government of India in the 12th five year plan 2012-17 has focused on providing universal healthcare strengthening healthcare infrastructure promoting RD and enacting strong regulations for the healthcare sector. The NITI National Institution for Transforming India Aayog has allocated 55 billion under the 12th Five-Year Plan to the Ministry of Health and Family Welfare which is about three times the actual expenditure under the 11th Five-Year Plan. Additionally the Government of India has also been actively integrating other landmark legislation to support the evolution of the healthcare ecosystem in the country. The initiative to leverage the Aadhar Card to provide Healthcare under the Primary Health Centre PHC plan is an encouraging move. Under the PHC Plan the Government plans to have 1 PHC for a population of 5000 people in the rural centres and 1 PHC for every 10000 people in the urban areas. An increased healthcare spend as a percentage of GDP enhancing legislation to encourage growth of the sector rapid adoption of technology easing the flow of capital into the sector and incentivizing the development of required skills to address the shortage of medical personnel while simultaneously enhancing workforce utilization are key areas of focus which will fuel the next stage of growth in the sector. The Government and the private sector will need to collaborate in order to address the large and dynamic challenges that the country is facing today in the healthcare sector. The Healthcare Services delivery landscape in India The Healthcare sector in India is categorized under Hospitals Pharmaceutical companies Standalone Pharmacies Medical InsuranceRetail Healthcare Medical Tourism and Telemedicine. While the retail healthcare formats like of primary healthcare centers day care and short stay surgery centers and home healthcare are gaining significance in recent years Hospitals stills remain the predominant outpost for the delivery of healthcare services in India. Within hospitals the private sector accounts for a majority of the total healthcare expenditure in India. In India the public health expenditure as a percent of total health expenditure has been increasing over the last few years. This expenditure increased from 27 percent in 2011 to 30 percent by 2014. Source:‘Indian Hospital Services Market Outlook’ by consultancy RNCOS Grant Thornton LSI Financial Services OECD There have been some important initiatives undertaken by the Government of India to improve the availability and accessibility to Healthcare while ensuring improvement in Human Development Measures. The eradication of polio notable reduction in HIV / AIDs incidence encouragement of traditional healthcare systems and practices and initiatives to reduce pre-natal mortality rates have been significant initiatives showing up as green shoots across the healthcare landscape. There have been endeavours to leverage private sector efficiencies and capacities through the Public Private Partnerships PPPs model. The inconsistency in the distribution of healthcare services across the country is a major concern which needs to be addressed. Existing infrastructure in the rural areas does not make it conducive for quality healthcare to sustain causing inadequacies in meeting the ever growing needs of a major portion of the Indian population. The urban areas on the other hand which account for a smaller proportion of the population has been enjoying better availability of healthcare infrastructure. None-the-less the private healthcare sector in India is gearing up to match global healthcare delivery models. The growth of the private sector is expected to continue going forward. They possess technical and managerial skills and are innovative and flexible in the deployment of resources. They are perceived to provide personalised quality services with greater efficiency than public hospitals. The private healthcare sector is expected to grow consistently Nursing Homes 30 Mid tier 11 Government Hospitals 19 Healthcare Spending in India 2015 Top tier 40

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 124 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 124 125 with support of macro-economic policies that recognize the healthcare sector as an industry and provides for stimulus to private sector investment through tax concessions. Additionally the willingness of the people to pay for health services along with support from the government aimed at de-bottlenecking the sector will add impetus to the growth of the private sector. The hospital and diagnostic centers space attracted foreign direct investment FDI worth 3074.01 million or ` 163.14 billion between April 2000 and March 2015 according to data released by the Department of Industrial Policy and Promotion DIPP. This industry is growing at a tremendous pace owing to its extended coverage range of services and increasing expenditure by public as well private players. Large investments by private sector players are likely to contribute significantly to the development of India’s hospital industry as they already represent around three-fourths of the healthcare services market. Some of the key characteristics of the healthcare sector in India are as follows – Population growth demographics rising per capita income Nearly 8 per cent of the Indian population was above the age of 60 years in 2011. This proportion is expected to climb to 12.5 per cent by 2026. Given this India is faced with the dual challenge of making good the current deficiency in healthcare infrastructure as well as in planning for future requirements. While it is considered as a country with a large proportion of population below the age of 30 the country will have a significant population of middle-aged persons leading to a corresponding increase in demand for healthcare delivery systems and services.The per capita income in India has grown by 60 from 797 in 2006 to 1262 in 2014 and with a growing younger population this growth in per capita is expected to rise further leading to a rise in the demand for healthcare delivery and better infrastructure in the future. Gap in Health Infrastructure between urban and rural areas The per capita income is higher in the urban cities as compared to the rural areas and supported with a better infrastructure the concentration of private healthcare service providers has been largely towards urban areas. These areas are now home to a wide variety of healhcare facilities offering single specialty multi-specialtyprimary care quaternary care alongwith personalised value added services. On the other hand a historically low public spend lack of infrastructure and the focus of private players on urban areas has left rural India far behind in the healthcare space. Thus there is a vast disparity in offerings between the metros and urban centers vis-a-vis the semi-urban and rural areas in the country. Business Models Innovated for better outcomes The last two decades have seen the emergence and growth of private hospital chains single specialty chains and boutique healthcare centers in India. Unlike the traditional standalone hospital offerings today private players are adapting their health care service delivery models to cater to the growing needs of young India. The idea is to create an awareness of the importance of healthcare and make it more conducive to the needs of the people. These business models have proven effective in increasing efficiencies through higher volumes resulting in reduced costs and at the same time delivering comparable quality standards and success rates. The services of most hospitals at a single location are being replaced by multiple touch points such as Standalone clinics diagnostic centers and pharmacies. Rapid emergence of Medical Tourism India is highly cost competitive compared to the developed countries and certain Asian countries and hence constitutes a very attractive destination for foreign patients which has given rise to the medical tourism industry. According to an MTA Medical Tourism Arrivals patient survey report nearly 80 of the demand for medical tourism is driven by cost savings and the table below gives a very good representation of the same. Sample Treatments India Thailand Singapore Malaysia Mexico Costa Rica South Korea Hip Replacement 84 73 73 78 69 74 77 Knee Replacement 79 76 69 80 64 74 71 Spiral Fusion 77 61 32 56 45 58 56 Heart Valve Replacement 94 93 91 94 80 80 72 Gastric Bypass 62 33 25 56 39 39 31 Face-lift 72 57 30 57 58 64 52 Rhinoplasty 53 31 23 44 55 44 23 Heart Bypass 95 92 86 93 80 82 77 savings in other countries vs United States Source: Grant Thornton Superior quality healthcare coupled with low treatment costs in comparison to other countries is benefiting Indian medical tourism which has in turn enhanced the prospects of the Indian healthcare market. Treatment costs for major surgeries in India are approximately 20 per cent of that in developed countries. As per a recent KPMG Report the size of the medical tourism market was estimated to be around 3.6 billion in 2015 which is expected to reach 10.6 billion by 2019 representing a CAGR of 30. India has developed a strong presence in providing advanced healthcare services for example organ transplants and cardiovascular procedures with success rates comparable to that developed countries. Moreover reduced waiting time in hospitals for admissions and treatment makes the country an attractive destination for medical tourism. The role of the government towards supporting the medical tourism industry has also been increasing. The government has introduced a separate category of medical visa: M-visa which can be extended for an additional 12 months beyond the one year issue period. A faster clearance process has been initiated for medical tourists at the airports. Moreover ease of connectivity combined with well-developed infrastructure medical and non- medical in several regions has enabled growth in medical tourism. Good connectivity to several GCC countries and a possible extension to other countries in Africa and South East Asia regions would help in tapping a large volume of medical patients in these regions who seek better medical facilities. Increasing influence of Technology in healthcare delivery The market for medical technology in India is small at present but rapidly expanding. It is important for healthcare players to understand the importance of the medical technology landscape and keep upgrading their technological know how to keep pace with their global peers. The Government of India in its endeavour to contribute towards this space has rightly taken certain initiatives to bring about improvement in the healthcare sector. One such initiative is the launch of ‘Sehat” in 2015 – a telemedicine initiative. Telemedicine can provide access for basic specialty

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 126 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 126 127 and super-specialty requirements to the rural population. Telemedicine has enormous potential in meeting the challenges of healthcare delivery to rural areas. Technology is advancing rapidly and the ability of the physician to take decisions regarding their patients condition is much greater now. The government also offers income tax incentives for domestically manufactured medical technology products. Increasingly robotic technologies are being utilized in functions such as medication distribution surgery and even diagnosing patients. Robotic Surgery has been developed to overcome both the limitations of Minimally Invasive Surgery MIS and enhance the capabilities of surgeons performing open surgeries. Greater adoption of Robotic surgeries would provide an impetus to the growth of medical tourism in India. A shortage in the number of doctors and medical practitioners poses constraints on the quality of treatment provided by hospitals and nursing homes. This situation is compounded manifold in rural regions which don’t have access to tertiary healthcare facilities .The initiative that has been introduced to combat the shortage of doctors in distant areas is to link up these centres with a central command center of a well-equipped hospital -usually in urban areas through a facility called as an eICU. Simply put an eICU facilitates the real time monitoring of a patient’s vital parameters and condition - from a remote location through doctors located in a different place known as the command center. Such initiatives have proven to be a blessing for patients who need immediate assistance and do not have access to specialists surgeons etc. Digital Health Knowledge Resources Electronic Medical Record Mobile Healthcare Electronic Health Record Hospital Information System are some of the technologies gaining wide acceptance in the sector. Standalone Pharmacies Although largely fragmented standalone pharmacy stores comprise a major chunk of the overall market. This sector has delivered a CAGR growth of 19.4 during 2010-15 and is projected to exhibit a CAGR of over 14.22 during 2015 – 2020. This is attributed to the robust expansion plans of the Standalone Pharmacy players coupled with increasing health awareness amidst consumers. There has been competition amongst stores and consolidation among private players. Moreover introduction of private label brands is further anticipated to boost the overall Standalone Pharmacy market in the coming years. The Industry continues to be fragmented in nature due to the overwhelming presence of the unorganized segment or stand-alone units. However organized players are gaining increased acceptability amongst the Indian consumers and have been gradually expanding their market share. With a specialized focus on the quality of retail services they have brought customer centricity to the fore. The market for Standalone Pharmacies is likely to be enhanced with the increase in government spending on the health care sector along with initiatives taken to increase health related awareness in rural regions of the country. Additionally the increasing disposable income of the Indian population has contributed significantly to the growth of the market due to the rising need for personal healthcare. Emerging health trends are also the main causes observed as the key growth drivers of the Standalone Pharmacy market in India as they drive the sale of medicines. This trend has developed due to a huge increase in the scale of urbanization and working population in the country. The growth of the Indian OTC market has been one of the fastest in the world. The concept of the online pharmacies which has changed the global pharmaceutical distribution chain quite significantly is yet to meaningfully emerge in India. According to market sources it is expected that the online pharmacy model could account for 5 to 15 per cent of the total pharma sales in India largely by attracting discerning customers and enhancing access to a part of the under-served population. With the Indian population getting more tech savvy private players will soon have to cater to this growing need of their customers. The online pharmacy stores market in India is primarily developing in metro cities and large urban areas across the country. Health Insurance The past few decades have seen insurance come a full circle. Together with banking services insurance services add about 7 to the country’s GDP. A-well developed and evolved insurance sector is a boon for economic development as it provides long-term funds for infrastructure development and at the same time strengthens the risk taking ability of the country. The general insurance business in India is currently at `780 billion in terms of Gross Written Premiums and it is growing at a health rate of 17. Health insurance is one of the fastest growing segments of general insurance. There is no doubt that health insurance is an indispensable healthcare financing tool. Over the last few years awareness and acceptance of health insurance has increased manifolds especially amongst the urban Indian population. Also health insurance premiums have been registering a significant CAGR of 24.6 in the preceding 10 years. Having said that health insurance penetration remains well below global standards. Today almost 80 of the Indian population is still not covered under any public or private health insurance scheme to support health expenditure. This provides a significant opportunity for development of the health insurance market in India. It can be noted that premium collection in health segment continued to surge ahead registering a growth of 22.4 from `202.56 billion in FY 2014-15 to `247.84 billion in FY 2015-16. Also the market share of health segment in the non-life segment in FY 2015-16 is 27.8 registering a marginal increase form the preceding year’s share of 26.73. During FY 2015-16 stand-alone health insurers contributed 16.01 of total health insurance premiums which increased by 2.07 over the previous year’s market share. Future scope of health insurance With about 28 market share in the non-life industry at present the health insurance segment in India has a significant role to pay in covering various sections of the population who are not covered under any health insurance scheme. According to an IRDA report with a projected insurable population of about 1 billion for health insurance by 2025 the average life expectancy is expected to reach 74 years by 2020 from the existing 66 years. Healthcare needs are also expected to witness a significant reduction from out-of-pocket spends which currently represent around 86 of payments to healthcare service providers. The healthcare sector is growing at a 15 CAGR and from a market size of `5100 billion achieved in 2012 it is expected to touch a size of `10300 billion by 2017. Hence there is an immense potential for health insurance to grow.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 128 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 128 129 Retail Healthcare The Retail Healthcare business is emerging as a significant opportunity in the healthcare landscape and is providing sizable untapped avenues which will further drive the penetration of Indian healthcare service providers across the landscape going forward. They include Primary Care Clinics specialised birthing centers single specialty clinics primary health centers and diagnostic chains apart from Dental Daycare and Home Healthcare formats. The delivery format being fairly new the market remains fragmented given the uneven distribution of income poor infrastructure facilities lack of awareness among under privileged patients etc. However with increasing government involvement in promoting healthcare and newer players entering this space the trend is changing opening up a universe of opportunities for operators in this space. The retail healthcare industry in India is likely to increasingly contribute to enhancing the penetration of the healthcare sector. The popularity of single specialty healthcare centers over the past few years is offering significant opportunities for not only emerging healthcare businesses across a gamut of sub specialties but also tertiary multi-specialty hospitals to foray into the sector. Under this format a patient can access services for all healthcare requirements focusing on a specific speciality under one roof. Having met with significant initial success this model is being followed across various treatment categories with areas such as fertility maternity ophthalmology dental health dialysis and diabetic care. SWOT Analysis Strengths Brand Salience: AHEL a leading private sector healthcare player in India was set up an era when there was a huge gap between the need for quality healthcare and healthcare services. Since its inception the Company has setup several pioneering developments in healthcare in the country and has carved several milestones in its journey. Today brand ‘Apollo’ is associated with excellence in patient care rapid technological adoption and best-in-class health care services. The benefits of this recognition and position clearly translate into making us the most preferred choice for both local and international patients as well as medical professionals. Large and growing Network: With 69 hospitals 2326 pharmacies and 172 clinics / retail healthcare centers across the country ‘Apollo’ is truly a pan-India player. Despite its size it remains amongst the fastest growing in the healthcare space in India. The large network offers advantages through multiple touch points and enhanced reach benefits of scale ability to incubate new businesses elevation of capabilities due to the sheer volumes of medical procedures and a rich resource bank of medical professionals. Integrated offering: The sub-brands under Apollo Clinic include Apollo Sugar Apollo Diagnostics Apollo White and Apollo Dialysis. AHLL also runs specialty hospitals Apollo Cradle and Apollo Spectra Hospitals as part of its portfolio. Over the years the group has managed to garner its presence in GCC West Asia and African countries as well. This allows it to participate in multiple stages of the patient care processes resulting in better outcomes and an enhanced value proposition both for the patient as well as the service provider. Deep expertise: One of the most respected healthcare providers in the world Apollo specializes in cutting-edge medical procedures. Apart from being the preferred service provider in India there are an increasing number of international patients who select Apollo on the basis of quality of care and healthcare outcomes thereby validating the standard of operations not just in India but even globally. Weaknesses Regulatory intensity: With the number of licenses and approvals required to set up a hospital it causes a huge barrier for private players in India to think of expansion.There are multiple rules and regulations for importing medical equipment to setting up parking facilities at hospitals or adding or reducing staff. The lack of co-ordination between various regulatory departments and absence of proactive and forward looking regulation has resulted in loss of some potential opportunity for the healthcare sector. At the same time lack of agility in unearthing unscrupulous practices as well as failure to halt unfair trade practices by certain participants in the sector has also harmed the perception about service providers in the sector. Shortage of Healthcare Human capital poses a challenge: India is a country with manpower in abundance given the sheer size of its population. However what the country lacks is good education for majority of this population or better training institutes for skilled manpower .The healthcare services industry is highly manpower intensive. Skilled manpower includes doctors nurses and para-medicalstaff comprising lab-technicians radiographers and therapists all of whom are in short supply in India. The overall requirement for resources makes it challenging to set up and profitably run a hospital in India. Technology obsolescence: Today ‘Technology’ is at the helm of any growing industry and it has to keep getting upgraded due to the high risk of obsolescence. One of the biggest problems faced by Indian players is availability of good technology and at reasonable costs. We however use the latest treatment technologies in our hospitals to provide top quality healthcare services. Heterogenous Markets: With the growing population the need for healthcare has been on the rise in India. There are different requirements even in markets which are reasonably proximate. Every market has a unique set of circumstances with variance in demographics disease profiles customer attitudes seasonal variationsprice sensitivity and so on. Even hospitals in two different cities in the same state will not be subject to identical operating circumstances. This requires a higher degree of customization and increases the level of monitoring required. Merely having all of the necessary resources is not a guarantee to success. Due to the complexities involved significant management overview is required in sustaining clinical standards balancing case mix ensuring adequate volumes and regularly upgrading technology. Opportunities Deeper Value of offerings: There is significant scope to enhance the value offering for patients by leveraging on technology. This need not necessarily be cost led but can also include faster recovery lower trauma more comprehensive offerings from service providers and higher quality of care with better outcomes. Those providers who are able to elevate their offerings on multiple parameters will have an advantage compared to other service providers. NCDs on the rise: The rising number of Non-communicable diseases NCD patients suffering from diabetes cardiovascular diseases and cancer in India is directly proportionate to the changing lifestyle patterns of the working population . This is a huge challenge for the Indian healthcare service providers who will need to address the rising incidence of NCDs. At the same time it presents an opportunity for service providers.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 130 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 130 131 Under served and poorly served markets: There is a world of difference between the quality of healthcare services available in metro cities and large urban areas compared to some of the semi-urban areas in the country. Patients in such semi-urban areas have the ability and the willingness to pay for good quality healthcare services however due to lack of options end up travelling to the cities in search of appropriate treatment. Healthcare service providers who are able to offer services of the desired quality in these areas will benefit from a ready demand for their services. Changing Lifestyles: Given the steady increase in disposable incomes and growing health awareness there has been a manifold expansion in demand for elective or planned surgeries as well as cosmetic surgeries. Patients are now willing to undergo discretionary and electric treatments to elevate their standard of living and pursue a lifestyle of their choice. This is steadily developing into a deep and lucrative segment of the healthcare services market. Population on the rise: As India crosses the 100 million mark of its ageing population and is expected to be the home for around 143 million elderly by 2020 this fact will also contribute to the increasing demand for healthcare services. India is an ideal Medical Value Travel destination: The Indian Healthcare Industry is well poised to address the billion dollar medical tourism opportunity with several accredited facilities is witnessing a large development boom of private medical healthcare facilities. Additionally the inherent cost advantage with prevalence of quality healthcare services makes India a preferred destination among emerging markets. The opportunity is large and the country will have to take appropriate steps to improve procedural efficiency and enhance marketing of services to garner a sizeable share. Threats Heightened competitive intensity : The increasing trend of entrepreneurs and business hourses to enter into the healthcare business has resulted in a spike in setting up of greenfield facilities JVs and acquisitions. There are even pockets of over capacity in certain metros. In order to make these ventures viable after investing significantly there is a possibility that some of these players could resort to irrational pricing in order to gain market share. Increasing cost of resources : The emergence of several domestic hospital chains combined with the entry of international players is leading to an increased number of competitors chasing finite resources such as land quality medical professionals and potential acquisition targets. Demand growth is expected to outpace improved supply of these resources. A failure to acquire resources at fair and reasonable rates will impact the ability to suitably grow and expand our operations . Further increases in operating costs can impact the Company’s operations and financials. Discontinuation of leases: Lands on which some of our hospital buildings and stand-alone pharmacies are operating on are not owned by us. In the event of these leased properties not being renewed in our favour or on terms that are not favourable to us our business operations may suffer disruptions. Potential loss on the Medical Tourism Opportunity : Several countries in the Asia-Pacific region have realized the opportunity of attracting medical value travelers . These countries provide a number of incentives to domestic service providers in the form of subsidized capital ease in permissions and tax benefits given this fact coupled with their enhanced infrastructure and simplified visa norms makes them well positioned to gain a larger share of the opportunity. Withdrawal of tax incentives : Since fiscal 2011 we have benefited from the tax deduction of 150 given in respect of capital expenditure incurred on setting up new hospital projects. The resultant deferment of tax helped us to improve our immediate cash flows allowing us more resources to fund growth. This has now been reduced to 100 with effect from the financial year ending March 31 2017. Any further reduction of tax incentives would result in reduced returns to the business. Industry outlook The healthcare market in India has witnessed a substantial transformation in the last few years. The industry is now growing at a tremendous pace owing to its strengthening coverage services and increasing expenditure by public as well private players. The country today is faced with two kinds of disease burden communicable and non-communicable diseases giving rise to a new pool of patients who demand different types of medical services. As India crosses the 100 million mark of its ageing population and is expected to be the home for around 143 million elderly people by 2020 giving rise to the increasing demand for healthcare facilities there is a huge potential for healthcare players to service these rising numbers. Moreover increasing government focus rising awareness and insurance penetration among the populace are expected to drive this growth in future. Additionally factors such as attractive investment opportunities growing innovation and entrepreneurship are expected to increase the market size thereby increasing the contribution of healthcare to the country’s GDP. Large investments by private sector players are likely to contribute significantly to the development of the sector. In India private healthcare accounts for almost 70 per cent of the country’s total healthcare expenditure. Private sector’s share in hospitals and hospital beds is estimated at 74 per cent and 40 percent respectively. The main factor contributing to rising medical tourism in India is presence of a well-educated English-speaking medical staff in state-of-the art private hospitals and diagnostic facilities. Going forward apart from MA deals Private Equity and Venture Capital funding will be a strong investment driver for the Indian healthcare sector. The sector is expected to be one of the most attractive investment targets with attractive valuations. The sector has attracted close to 1billion into hospital assets from both domestic and foreign financing companies. PE investments have nearly quadrupled from 2011 to 2013 for investments into hospitals and diagnostic chains. Further the sector has seen close to 100 domestic and inbound MA deals with an average deal size of 30 million totaling to 3 billion since 2010. At present there still exists an increasing gap between the expectations of patients and the offerings of traditional models of healthcare delivery. In the wake of these growing concerns and with an urgent need to accommodate the rising healthcare requirements and expectations an emerging and organized healthcare sector is in play. Moreover with increasing demand for affordable and quality healthcare penetration of health insurance is poised to grow exponentially in the coming years

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 132 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 132 133 Company Overview Apollo Hospitals Enterprise Limited AHEL a leading private sector healthcare provider is the pioneer of corporate healthcare services delivery in India. Promoted by Dr. Prathap C Reddy as a public limited company in 1979 AHEL started as a comprehensive 150-bed hospital with an emphasis on tertiary healthcare at Chennai. From that humble beginning it has emerged as the pre-eminent healthcare services provider in Asia. The Group’s healthcare framework operates within a three level architecture-primary secondary and tertiary health care facilities. The tertiary care hospitals provide advanced levels of care in over 55 specialties including cardiac sciences oncology neurosciences critical care orthopedics radiology gastroenterology and transplants. Its presence includes 9554 beds across 69 locations 2326 pharmacies 172 primary care diagnostics clinics and 148 telemedicine units across 13 countries. To enhance our service to our customers and complement our business we also provide various other services such as project consultancy services health insurance services education and training programs and research services. We are setting up the first Proton Therapy Unit in the Asia-Pacific Region which will be located at a specialized facility in Chennai India. We are also strengthening our retail healthcare footprint including primary care clinics birthing centers day surgery centers and dental clinics. These are housed under Apollo Health Lifestyle Ltd which is the retail healthcare arm of Apollo Hospitals. Healthcare Services Our Healthcare services segment consists of hospitals hospital-based pharmacies and projects and consultancy services. Hospitals As of March 31 2016 we had a capacity of 9554 beds in 69 hospitals located in India and overseas. Of the 9554 beds 7620 beds own in 42 hospitals 160 beds in 7 cradles 340 beds in 12 day care / short surgical stay centers and 1434 beds are in 8 hospitals under our management through operations and management contracts 31.03.2016 31.03.2015 Number of owned hospitals at end of period 61 44 Number of owned beds at end of period 8120 7207 Number of operating beds at end of period 6724 6321 In-patient discharges 373851 353547 Adjusted discharges 533598 498134 Average length of stay days 4.17 4.43 Average daily census 4262 4294 Bed occupancy rate 63 68 Average revenue per occupied bed per day 28036 25381 Clinical Excellence Clinical Excellence is the edifice around which our healthcare operations are structured. The Apollo Hospitals group diligently adheres to meet the highest standards of clinical outcomes which it has set for itself in various specialties. These standards are constructed with a view to benchmark internal excellence against the best in the world. In order to ensure sustainable clinical outcomes the Company follows an internal quality management process known as the “Apollo Clinical Excellence” program which is referred to as “ACE 25”. This has been implemented across the entire network of hospitals. ACE 25 assesses performance based on 25 clinical parameters which are critical to delivering the very best clinical outcomes. This is supplemented by the Rocket ACE program which is a balanced scorecard for Centres of Excellense “CoEs” evaluating outcomes based on complication rates mortality rates infection rates and related parameters . These are supplemented by the Mortality Review and Incident Reporting systems. We also implement the AQP or Apollo Quality programme which is a 20 parameter reporting dashboard for standardization of processes. Due to this steadfast focus on Clinical Excellence the Group has an impeccable track record and high success rates even in surgeries of high complexity such as transplants cardiac care and oncology. This unwavering focus on clinical excellence enables Apollo Hospitals to continuously assess the quality of care provided to patients and allows it to objectively measure the consistency and success of healthcare delivery services. Training Continuing Medical Education In addition to the focus on clinical excellence Apollo ensures that its medical professionals and other staff are periodically trained on the newest techniques and procedures in the medical field on a periodic basis. The Group also partners with some of the most renowned institutes in the world for knowledge sharing and to build its repository of medical knowhow and literature. We have signed a MoU with Health Education England to promote interaction in healthcare education between India and England establishing a platform to train the healthcare workforce . Additionally we have also signed a MoU with U.S based Varian Medical Systems an educational partnership to introduce a program that will help train radiation technologists in the country. This is going to be the first radiotherapy partnership of its kind in India. Accreditations Six of our hospitals have received accreditations from the Joint Commission International USA “JCI” for meeting international healthcare quality standards for patient care and management. JCI is the world’s premier accreditation body for evaluation of healthcare facilities. Our Hospitals at Chennai Bengaluru Delhi Dhaka Hyderabad and Kolkata have the accreditation which reiterates that the operational protocols are in line with global best practices. In developing countries like India where health services are delivered mainly through private health providers regulation is a vital instrument and function of government policy. The government has set up the National Accreditation Board for Hospitals Healthcare Providers “NABH” to establish and operate accreditation programmes for healthcare organisations in India. It is a constituent board of the Quality Council of India.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 134 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 134 135 Fourteen of our hospitals including Apollo Specialty Hospitals in Madurai Chennai Ahmedabad Noida and Secunderabad have received accreditations from NABH. Strategy The Company remains focused on growth with the objective of simultaneously improving operating efficiencies and clinical outcomes. We aim to achieve this through : Strengthening our presence in key strategic markets We believe we have a dominant share of the hospital beds available in Chennai New Delhi Kolkata Hyderabad Bengaluru Ahmedabad Pune Bhubaneshwar Madurai and Mysore. We intend to continue to strengthen our presence and increase our market share in these key strategic markets by establishing new healthcare facilities including retail healthcare centres and increasing bed capacity at our existing hospitals. Currently we have hospitals located in three Chennai New Delhi and Kolkata out of India’s four key metropolitan cities and are of establishing a new hospital in Mumbai in the 2nd Quater of FY 17. We believe that these key metropolitan cities will continue to have a strong demand for high quality tertiary care services such as cardiac surgeries oncology services and orthopedic surgeries. By strengthening our presence in these markets we intend to increase our market share for such tertiary care services. The plans to establish new healthcare facilities are at various stages of implementation and are expected to be completed over the next three years. We expect to increase the bed capacity by around 1045 beds upon the completion of these projects. We are constantly evaluating new opportunities in our existing and new markets. Our evaluation criteria include location demographics revenue potential and the cost of setting up new facilities. Geographic expansion through setting up hospitals in Tier II and Tier III cities We have developed and are in the process of establishing a network of hospitals under the “Apollo REACH” with the objective of making high quality healthcare services and advanced medical technology available in semi-urban and rural areas. Hospitals established under this initiative will have a capacity of around 100 to 200 beds and will be located in Tier II and Tier III cities in India. These hospitals will be a combination of new or acquired facilities as well as expansion of some existing facilities. These hospitals will allow us to expand our network and penetrate different markets in the Tier II and Tier III cities. We have identified a number of Tier II and Tier III cities across the country which are currently under-served in terms of healthcare services but have a sizable population accross the large catchment area with spending potential. Based on our experience capital costs per hospital bed in a Tier II or Tier III city are generally lower compared to a Tier I city. As income levels in these markets rise purchasing power will accordingly increase therefore we expect our revenues generated from providing healthcare services in these markets to increase further. We have already established Apollo REACH hospitals in Tier II cities including Kakinada Karaikudi Karimnagar Bhubaneswar Karur Madurai Trichy Vanagaram Nellore and Nashik. . Focus on continued growth in stand-alone pharmacies We have grown the number of stand-alone pharmacies in our network to 2326 as of March 31 2016 with the revenues from our stand-alone pharmacy segment contributing 38 of our consolidated revenues in the Financial Year ended 31st March 2016. We intend to increase the revenues generated by our existing stand-alone pharmacies through: • Impro v ing the pro f i tabili ty o f our exist ing stand-alone pharmac ies by introduc ing in-house br and pr i vate label products which have superior profit margins and increasing sales through the bulk distribution of medical supplies and consumables to hospitals and other healthcare providers. • Impro v ing oper at ing eff ic ienc ies by implement ing a centr alised database and inventor y management system to track inventory and revenue collections across our stand-alone pharmacy network. • Impro v ing our suppl y chain management by standar d ising pr ices across our network and consolidat ing our vendors. • Moni tor ing the per formance o f our stand-alone pharmac ies on an on-going basis and closing loss-mak ing and low-growth pharmacies. Increasing patient touch points by way of multiple formats: We aim to increase our presence and reach across all markets through our retail healthcare subsidiary – Apollo Health and Lifestyle Limited. We recognise the necessity of and have made concerted efforts to build additional formats for healthcare services delivery through this subsidiary which includes primary clinics lifestyle birthing centers sugar clinics short stay surgery centers. We additionally have a strong presence in standalone pharmacies health insurance medical education telemedicine and projects consultancy services. We have covered the entire spectrum of the healthcare services business enabling higher points of interactions with patients better brand equity and referrals into our main hospital. Focus on a portfolio of high value clinical specialties We believe that a combination of factors including changing demographics increasing affluence of the Indian population greater health awareness an increase in lifestyle-related diseases such as heart disease and diabetes increasing health insurance coverage and a growing medical tourism market will lead to an increase in demand for quality healthcare services particularly tertiary healthcare services. We have therefore identified cardiology oncology neurology orthopedics critical care and transplants as our key focus areas of our tertiary care hospitals. We internally designate these focus areas as “Centers of Excellence”. To maximise our market share of the tertiary care procedures performed in each Center of Excellence we plan to undertake a number of initiatives to ensure that we provide high quality healthcare services and improve our clinical outcomes including: • Strengthening each Center o f Excel lence through the a dd i t ion o f exper ienced and sk il led surgeons and physicians.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 136 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 136 137 • Expand ing each Center o f Excel lence pr act ice area to pro v ide comprehensi ve sub-spec ialt ies and treatment services. • Cont inual l y invest ing in the latest med ical technology and equ ipment so as to o ffer high quali ty healthcare services to our patients such as construction of the Comprehensive Oncology Center in Chennai which would be equipped with the Proton Beam Therapy which would be the first of its kind covering South Asia and Africa. • Establishing wel l -def ined clinical gu idelines and protocols w i th a strong focus on clinical out comes. • Integr at ion o f our network o f hospi tals to enable knowledge shar ing and the a dopt ion o f best pr act ices for each Center of Excellence across the network through dedicated service line managers. Focus on life enhancing procedures and elective surgeries We believe that with increasing disposable incomes and health awareness there is a growing demand for elective or planned surgeries. Apart from our focus on Centers of Excellence we also plan to focus on elective procedures to capture this growing market and build a strong presence in the elective and life enhancing procedures market. Our hospitals are well-equipped to offer various elective procedures like knee replacements hip replacements cosmetic surgeries dental services and other similar procedures. We intend to increase the volume of such procedures performed in our hospitals by creating specialised centers for such procedures recruiting more surgeons specialising in such procedures and investing in the latest medical technology to improve our clinical outcomes in these areas. Improve operating efficiencies and profitability We believe that maximising operating efficiencies and profitability across our network is a key component of our growth strategy. We intend to focus on the following key areas to improve our operating efficiencies and profitability: • Impro ve aver age revenue per oc cupied bed per day We seek to improve the average revenue per occupied bed per day through a combination of initiatives including: Increase focus on high growth tertiary care areas. We continually focus on investing in the latest medical technology attracting skilled physicians and surgeons and developing our expertise in high growth tertiary care areas to serve the increasing demand for sophisticated clinical care and procedures. By implementing our strategy to focus on high growth Centers of Excellence and other technology and specialist skill-driven clinical areas we intend to improve our case mix and increase revenues per occupied bed per day. - Reduction in Average Length of Stay “ALOS”. As a significant portion of in-patient revenues are derived from medical services provided in the initial two to three days of a patient’s stay in the hospital we plan to reduce the ALOS at our hospitals thereby increasing patient turnover rate and the revenue per occupied bed per day by capitalising on improvements in medical technology and focusing on minimally invasive surgeries which reduces surgical trauma to patients and patient recovery time. • Maximise eff ic ienc ies through greater integr at ion better suppl y chain management and human resource development We plan to maximise efficiencies at our hospitals and pharmacies through greater integration across our network. Our hospitals and pharmacies are large consumers of drugs and medical consumables like stents implants sutures and other surgical materials. To minimise costs and leverage on economies of scale we intend to focus on standardising the type of medical and other consumables used across our network optimising procurement costs consolidating our suppliers and optimising the use of medical consumables by establishing guidelines for medical procedures across our network. To improve the productivity of our employees we plan to place greater emphasis on training our employees in best practices and implement programs to provide incentives for performance. We have also introduced an initiative to encourage our doctors to be more involved in administrative matters such as scheduling surgeries and in the management of the hospitals as we believe that this will help to improve clinical outcomes and service standards. Optimisation of asset utilisation in mature facilities and compressing time-to-maturity of new facilities We have specific plans in our mature facilities to further deepen our presence in Cardiology Neurosciences and Oncology. We have created value differentiators and set service standards for enhancing patient satisfaction in terms of time-to- serve. We will also leverage on our personalised health checks and tertiary care OP services to target superior topline contribution from out patients. This will ensure higher market share in select acute care services. Our focus will be to stabilise and compress time-to-maturity at the new facilities. We plan to recruit specialist consultants for the Centers of Excellence at our new hospitals to ensure a superior specialisation mix from the very beginning and driving higher revenues. The phased commissioning of the additional beds linked to occupancy levels at new facilities will keep the fixed costs lower to achieve our objective. Focus on medical value travelers According to CRISIL India is fast emerging as a major medical tourist destination. We believe that India is highly competitive in terms of healthcare costs compared to other developed and developing countries such as the United States the United Kingdom and Singapore. A number of our facilities have been accredited by various Indian and international accreditation agencies such as the JCI the NABH and the NABL which we believe helps us to attract medical value travelers. We intend to focus on attracting more medical value travelers from select markets including those in the Middle East Africa and Southeast Asia by increasing our marketing efforts in these regions. We believe that medical value travelers will help to contribute to higher revenues per bed day and increase our profitability. Expansion Plans Concurrent to our stated strategy of initiating capacity creation we are executing a multi-pronged expansion plan. In addition to a strong base of 9554 beds across 69 hospitals as on March 31 2016 we plan to add another 1045 beds in the coming 3 years across 3 hospitals which will expand the overall network of hospitals to 72. During the year we completed the acquisition of a 51 majority equity stake in Guwahati based Assam Hospitals Ltd. Assam Hospitals runs a 220 bedded tertiary care hospital which recorded a turnover of `869 million and a profit of

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 138 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 138 139 `18 million for the year ended March 31 2016 . Our focus now is to concentrate on operationalising the new capacities added and growing and consolidating our leadership position in these markets. Capital Expenditure Apart from the expansion plans outlined above we have made investments to increase bed capacity in existing centres and incurred maintenance and refurbishment costs. We have invested in new technologies modernization of facilities and expansion of services We believe that these investments will help us to attract and retain doctors and the make our hospitals a preferred choice for patients. Our Board has approved a capital expenditure of around `15204 million for our expansion plans stated above. Of this `5841 million has already been invested and the balance will be invested in a calibrated manner over the next three years. This will be financed from existing funds internal accruals as well as through debt funds. Capital expenditure primarily relates to expansion activities. The amount and purpose of these expenditures may change in accordance with business requirements. Apollo Reach Hospitals The Apollo “REACH” Hospitals initiative is aimed at setting up a network of secondary care facilities with around 100 to 200 beds each in Tier II and Tier III cities in India. This will serve patients from these areas at their home locations and eliminate the need for travel in search of healthcare. This model aims to improve access to the healthcare for larger segments of the population while simultaneously extending the Apollo Brand to more corners of the country. The REACH model also allows for moderation of capital intensity when setting up a hospital as it only undertakes primary and secondary care in the initial stages. A reduction in the capital deployment and the break even point allows operational flexibility. Further several of these hospitals are eligible for tax benefits which enhance the economic viability and schedule for cash deployment. We have REACH hospitals in Tier II cities including Kakinada Karaikudi Karimnagar Bhubaneswar Karur Madurai Trichy Nellore Nashik and Vanagaram a suburb of Chennai. Medical Tourism Realizing the importance and growing need for medical tourism in the country the group has taken certain initiatives towards boosting medical tourism while putting India on the world map as far as healthcare services is concerned. The Group undertakes several camps in overseas markets to build the doctor connect for patients. Apollo Hospitals has served patients from over 120 countries and offers a wide range of services including preventive health checks Organ transplantation kidney liver and cornea transplantation Robotic Surgery Cancer Treatment Joint Replacement Surgery cosmetic procedures eye procedures Brain spine surgeries etc of a high standard at its accredited facilities. Apollo Health City Hyderabad for the third time has been adjudged as the ‘Best Medical Tourism Facility’ in India by the Government of India during 2013-14.Earlier the Hospital was conferred the award in the years 2009-2010 and 2011-2012. The Indian Railway Catering and Tourism Corporation IRCTC has partnered with AHEL to offer hassle-free travel for people who travel for medical care. IRCTC is also looking to expand the service to neighboring countries such as Sri Lanka and Bangladesh in collaboration with certain airline services. Under the memorandum of understanding MoU with Apollo IRCTC will operate a chartered coach from Kolkata to Chennai every 14 days and integrate its offerings with the preventive health check-up packages of Apollo Hospitals to offer a comprehensive package to travelers. Standalone Pharmacies Apollo has been strategically present in the Standalone pharmacy business for over 2 decades. Upon attaining critical mass it has driven growth at an accelerated pace which resulted in a phenomenal performance in the last few years. The pharmacy business has grown at a CAGR of around28 over the last four years on the back of consistent addition of new pharmacies and timely closure of non-performing pharmacies. As of March 31 2016 the pan-India network of stores stands at 2326 stores. Our product mix has also seen a favourable trend with the introduction of wellness and self-branded products. When we started our operations we were primarily selling pharmaceutical products which has now evolved to include wellness products. We also tailor our product mix for each pharmacy. The product mix and display in pharmacies will differ from region to region. Apart from this 40-45 of our business is from repeat customers. We have a cluster analysis mechanism and each cluster is managed by an independent manager. We have standardised our systems for tracking the viability of each store in terms of its real estate costs supply chain cost-benefit ratios and various other operating metrics. The acquisition of the Hetero Pharmacy chain has helped us consolidate our market position especially in and around the states of Andhra Pradesh Telengana and Tamilnadu. This move has helped us in ramping up our revenues and operational synergies. The profitability profile of this business has improved steadily due to maturity of stores increasing proportion of private label products and rationalization of the store network through the discontinuation of unviable stores. We believe there is a high potential for growth in this sector for large organised players like us with superior scale of operations. The business holds tremendous potential given the fragmented nature of the industry and the window to gain market share through differentiated and value added offerings. As the largest and most profitable chain of stores Apollo has created a unique and distinctive position that will be hard to replicate.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 140 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 140 141 Accolades Achievements Partnerships In a rare honour the Government of India issued a commemorative stamp in recognition of our contribution the first for a healthcare organisation. During the year the Group was awarded The CIO 100 awards from IDG which recognizes organizations that exemplify the highest level of operational and strategic excellence in information technology. The award was conferred on Apollo Hospitals Enterprise Ltd AHEL recognizing it as the Versatile 100 CIO100 Innovation Architect Special Awardee 2015. Apollo has recently entered into a tie-up with Google for providing health information as part of the search engine’s launch of the Health Card in India. This feature will provide credible information to help people understand facts about common illnesses. The aim is to empower people with accurate appropriate and easy to understand information so as to support them and provide a framework based on which they can have a better conversation with their doctor Projects Consultancy Our projects and consultancy services business is among the leading healthcare consulting organizations of its kind in the country. We provide comprehensive support and services to the healthcare delivery industry including pre-commissioning consultancy services comprising feasibility studies infrastructure planning as well as design advisory services functional design and architecture review human resource planning recruitment and training and medical equipment planning sourcing and installation services. We also provide post-commissioning consultancy services which include management contracts providing day-to-day operational support franchising and technical consultation including human resource planning and training and the establishment of medical and administrative protocols. We provide these services to third party organizations globally for a fee. Medical Insurance – Apollo Munich Health Insurance Apollo Munich Health Insurance came into existence through an alliance between the Apollo Hospitals Group and Munich Health which is one of the leading insurance companies globally. Apollo Munich has been able to grow ahead of industry growth rates and its insurance products are rated very highly by market participants. Further it enjoys one of the best claims ratios in the industry as well as strong customer loyalty. It has also been awarded for innovative product offerings. Apollo Munich was able to grow its gross written premium GWP from ` 8611 million in FY 2014-15 to `11078 million in FY 2015-16. Apollo Munich now has over 101 branches pan India and enjoys a 10 share of the retail health insurance market. Apollo Munich has crossed the 10 billion mark in GWP reflecting a growth of around 29 year-on-year and is committed to deliver high-quality services to its customers through innovative and expert products integrity in processes and uncomplicated services. Apollo Munich is the fastest insurance company to reach a break-even point and made marginal profits in the last two years. The company achieved an impressive growth rate over last five years a CAGR of 46. The Government of India had in March 2015 increased the foreign direct investment limit in the insurance sector to 49 from 26. Munich Health the joint venture partner in Apollo Munich Health is increasing its stake to 49. The increased shareholding will strengthen the companies’ position and ensure sustainable and profitable growth in the years ahead. Apollo Munich Health Insurance is committed to making quality healthcare easy and accessible and redefining the approach to health insurance in the country. Retail Healthcare - AHLL Apollo Clinics The Apollo Clinic is a trusted neighborhood healthcare partner for family medicine and primary care. It creates the bridge between patients and Apollo Hospitals. The Apollo Clinics will become a platform to address future healthcare challenges in India particularly the growth of non-communicable diseases. Finally we believe that the low penetration of preventive healthcare is a key area to address driving adoption of preventive health checks and vaccination. Apollo Clinics is building a 2 pronged growth plan with owned clinics being established in hospital centric clusters eg Chennai Hyderabad Bangalore Delhi Pune. Franchise clinics will be established in Tier 2 / 3 towns where only 1-2 clinics per town are feasible. These will act as feeder markets for the tertiary care hospitals. These franchisees will be created using a ‘smart’ franchisee model – centralised IT system tele-medicine unit quality audit system centralised service tracking. Apollo Diagnostics The Diagnostics market represents a significant opportunity though it is a fragmented market with 85 still in the unorganized sector with the overall market growing over 30 per annum and at an estimated size of `140 billion. Apart from being a large market there is a strong synergy with the Apollo Clinics – 70 of clinical decisions are based on pathology inputs. Currently the focus is on building a pathology lab business with a B2C model. The model would be to create owned labs with a front end franchisee collection centre model and building networks in the Top 4-5 towns per state. The aim would be to build a network of around 2000 collection points in 5 years. Apollo Cradle Apollo Cradle a hospital for women and children offers services of international standards in a premium environment while creating an unforgettable experience for the mother and her family. Apollo group was the pioneer in establishing boutique birthing hospitals in India with the first Apollo Cradle opening in New Delhi in 2002. This concept is well accepted in urban markets and is indeed another stride towards the emergence of specialized hospitals. The maternal care industry is expected to have a CAGR growth of 15 per annum and is estimated to touch a size of `480 billion in the next five years. One of the path breaking Initiatives taken up by Apollo Cradles was to promote Natural Child Birth. Further the clinical services have been enhanced by focusing on minimal access Key Hole Gynecology Surgery. The coming year will see lot of activities to promote Fetal medicine and Uro Gynecology.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 142 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 142 143 Apollo Sugar Clinics India has the distinction of being the Diabetes Capital of the World. With an aim to offer care for diabetes by touching more patient lives we have steadily grown our network and ended FY 2015-16 at 42 Clinics. Apollo Sugar as a brand has made rapid in roads and is now a prominent name in the field of diabetes care. This year we have been able to integrate clinical pathways to our health care delivery system and publish clinical data on the positive impact we have had on the health of patients through our focused delivery model. Diabetes being a life style disorder needing long term monitoring we have structured our care delivery program with a view to treating patients holistically by enrolling them on to long term packages. The package model has shown better clinical outcomes and has generated a great deal of interest amongst patients. Our call centers supplement our primary disease management program and ensure that patients follow the diet and fitness regimen as prescribed by doctors ensuring adherence to the care protocols. Apollo Spectra Hospitals In India the concept of specialty care is new and gaining gradual acceptance with 43 surgeries being conducted as day care / short stay surgeries currently. These ambulatory surgeries do not require overnight hospital stay whereas short stay surgeries require a lower length of stay LOS. It is anticipated that an increasing number of surgeries would be conducted in India as day care / short stay surgeries over the coming years and in line with global figures of 60. The Indian market is expected to grow at 10-year CAGR of 15 to reach US 12 billion by 2022. Short stay surgeries are conducted across multiple healthcare delivery formats –tertiary care multi-specialty hospitals nursing homes single-specialty hospitals and multiple specialty surgical centers. Improved patient convenience due to faster treatment and early discharge less costly surgeries due to lower LOS reduced susceptibility to hospital-acquired infections and improved insurance coverage are the various factors driving this demand. Given the immense potential and the need for quality healthcare delivery closer to the patient’s home AHLL expanded its reach to 12 such surgical Spectra centers across 8 cities in India. We believe the format has strong potential to witness growth over the next few years. Apollo Dialysis “Apollo Dialysis Clinic”is a brand operated under the corporate entity “Apollo Dialysis Private Limited” which has the vision of extending dialysis treatment in places convenient to the patients and providing quality care with a strong focus on patient services and treatment outcomes. Apollo Dental Operating under the brand name of “Apollo White Dental” oral dental care services are provided in two formats: 7 star Dental Spas “Apollo WHITE Dental SPA” and Dental Clinics “Apollo WHITE Dental Clinic” with a vision to light up billions of smiles across India making it glow on the world map as a nation free of dental problems and pain. It currently operates at 71 locations at present in India. Discussion on Consolidated Financial Performance and Results of Operations The following table present summaries of results of operations for the years ended March 31 2015 and 2016: ` in million 31.03.2016 31.03.2015 Operating Revenues 60856 51785 Add: Other Income 267 368 Add: Profit on sale of equity - - Total Income 61123 100.00 52152 100.00 Operative expenses 30558 49.99 25812 49.49 Salaries and benefits 10242 16.76 8600 16.49 Administration other expenses 12233 20.01 10026 19.22 Financial expenses 1685 2.76 1179 2.26 Depreciation and amortization 2533 4.14 2117 4.06 Profit before Income Tax – Exceptional Extraordinary items 3872 6.33 4419 8.47 Exceptional items 292 0.48 147 0.28 Extraordinary item - - 282 0.54 Profit before tax 4164 6.81 4554 8.73 Provision for taxation 1002 1.64 1300 2.49 Profit after Tax 3162 5.17 3254 6.24 Less: Minority interest 73 0.12 51 0.10 Profit after minority interest 3235 5.29 3305 6.34 Add: Share in associates 75 0.12 94 0.18 Profit after share in associates 3310 5.42 3399 6.52 For the years ended March 31 2016 and 2015 Revenues The total operating revenue grew 18 from `51785 million in FY15 to `60856 million in FY16 with healthcare revenues growing by 10 from `33331 million to `36736 million as a result of 7 growth in volumes and 3 growth in case mix and inflation at existing facilities as well as contribution of new facilities. Revenues at existing hospitals were also supported by case mix improvements and pricing. The standalone pharmacy business witnessed 31 revenue growth from `17726 million to `23237 million in FY16. The number of stores within the network of Standalone Pharmacies was 2326 as at March 31 2016 as compared to 1822 stores as at March 31 2015. In the others segment the proportionate share of revenues from Apollo Munich Health Insurance where we hold a 10 stake grew by 15.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 144 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 144 145 The following table shows the key drivers of our revenues for the periods presented: Year Ended March 31 2016 ` in million 31.03.2016 31.03.2015 `increase Decrease Increase Decrease Discharges 373851 353547 20304 6 Revenues per inpatient ` 95173 92273 2900 3 Average length of stay days 4.17 4.43 0.26 6 Out-patients 3372053 3203279 168774 5 Revenue per bed day ` 28036 25381 2655 10 Expenses Salaries and Benefits Our salaries and benefits expense of `8246 million during 2015 increased by 20 to `9890 million in 2016. This increase was a result of annual compensation increases for our employees plus the impact of an increasing number of employed physicians within our hospitals and pharmacists for the SAPs and also the compensation increases for our employees during the year. 31.03.2016 ` in million of Revenue 31.03.2015 ` in million of Revenue `increase Decrease Increase Decrease Salaries wages and benefits 9890 16.2 8246 15.8 1644 19.94 excluding managerial remuneration No. of employees 43557 - 40065 - - - Operative Expenses During 2016 our material cost of `30558 million increased 18 as compared to `25812 million in 2015. The increase in material cost was in line with the growth in operating revenues. Administrative Expenses The following table summarizes our operating and administrative expenses for the periods presented Year Ended March 31 2016 31.03.2016 ` in million of Revenue 31.03.2015 ` in million of Revenue ` Increase Decrease Increase Decrease Repairs and maintenance 1735 2.84 1427 2.76 308 21.60 Rents and leases 2141 3.50 1744 3.37 397 22.80 Outsourcing expenses 1392 2.28 975 1.88 417 42.70 Marketing and advertising 1964 3.21 1555 3 409 26.30 Legal and professional fees 690 1.13 465 0.9 225 48.40 31.03.2016 ` in million of Revenue 31.03.2015 ` in million of Revenue ` Increase Decrease Increase Decrease Rates taxes 127 0.21 122 0.24 5 4.40 Provision for doubtful debts Bad debts written off 260 0.43 268 0.52 8 2.90 Other administrative expenses 3924 6.42 3470 6.70 454 13.10 Total 12233 20.01 10026 19.36 2207 22.00 Depreciation and Amortization Our depreciation and amortization expense increased to `2533 million during 2016 as compared to `2117 million during 2015. The increase is largely due to capital improvement projects completed during the year and normal replacement costs of facilities and equipment. Financial Expenses Our financial expenses increased to `1685 million during 2016 compared to `1179 million during 2015. The increase is largely due to interest on funds deployed in commissioning of new hospital projects . Provision for Income Taxes The provision for taxes during the year ended March 31 2016 is `1002 million compared to `1300 million in the previous year ended March 31 2015. Liquidity Our primary sources of liquidity are cash flows generated from our operations as well as long-term borrowings. We believe that our internally generated cash flows amounts invested in liquid funds and our approved and proposed debt will be adequate to service existing debt finance internal growth and deploy funds for capital expenditure. Capital Expenditure In addition to the continued investments in new facilities we also undertook the acquisition of a majority stake in a hospital at Guwahati. There have also been investments made in new clinics cradles and dental care centres. This has been supplemented by refurbishing of older facilities and periodic upgradation of medical equipment. These investments should assist in our efforts to attract and retain physicians and to make our hospitals more appealing to potential patients. Summary of Cash flow statement is given below: 2015 – 2016 2014 – 2015 Cash and cash equivalents at beginning of the year 3859.23 2741.47 Net cash from operating activities 4231.53 4699.46 Net cash used in Investing activities 6840.00 7590.70 Net cash from financing activities 2724.92 3923.10 Net increase in cash and cash equivalents 116.45 1031.86 Cash and cash equivalents at the end of the year 3975.68 3773.33

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 146 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 146 147 Cash Flow from Operating Activities Net cash of `4231 million was generated from operating activities by the Company in FY16 compared to `4699 million in FY15. ` in million 2015– 2016 2014– 2015 Operating profit before working capital changes 7975.52 7302.45 Effect of working capital changes 2316.93 1608.28 Foreign Exchange loss 22.68 8.10 Taxes paid 1404.38 1002.81 Net cash provided by operating activities 4231.53 4699.46 Cash Flow from Investing Activities ` in million 2015– 2016 2014– 2015 Purchase of fixed assets 8305.93 8654.73 Sale / Purchase of investments 1171.12 669.54 Interest and Dividend received 294.81 112.66 Extraordinary Item - 281.83 Net cash used in investing activities 6840.00 7590.70 The group commissioned 2 hospitals in FY16 at Vizag and Malleshwaram Bangaluru. Besides funds were invested in ongoing projects at Navi Mumbai Chennai due for commencement in the coming years. Cash Flow from Financing Activities ` in million 2015– 2016 2014– 2015 Issues from share capital 206.08 417.49 Proceeds from Borrowings 10572.34 6653.48 Repayment of finance/lease liabilities 4752.29 1172.19 Interest and Dividend paid 3301.21 1975.69 Net cash from financing activities 2724.92 3923.10 Cash provided by financing activities totaled `2725 million in FY16 as compared to `3923 million in FY15. Cash provided by financing activities in FY16 resulted primarily from loans borrowed from Bankers and Institutions. We used part of the proceeds from financing activities to repay loans of `4752 million in FY16. We paid interest and dividend of `3301 million in FY16. Risks and Concerns The increase in scale and reach of operations increases the overall complexity and results in an intensified risk profile. Business Risk Evaluation and management of such risks is an ongoing process within the organization. To mitigate such risks your Company has devised and implemented a comprehensive risk management system that has been implemented to ensure that risks are contained within manageable levels. Since it is the primary responsibility of the Board of Directors to ensure that Internal Financial Controls are in place it has constituted a Risk Management Committee headed by the Managing Director which will identify assess prioritize manage monitor and communicate suitable measures to manage such risks. The principal risks and uncertainties that might affect the Company’s business are identified below- • New entr ants to the market lea d ing to higher compet i t ion to impact sustainabili ty coul d cause a drop in market share • Obsolescence o f technology and treatment methods • Inflat ionar y pressures and other factors affect ing demand • Increasing cost o f resources such as mater ial cost along w i th tr anspor tat ion and stor age • Lack o f a dequate human capi tal is another key factor which is o f great concern incl ud ing the need for retent ion of key staff including medical professionals and • Increased compliance chal lenges in the regulator y f r amework Strategic risks are overseen by the Senior Management team which reports to the Board of Directors periodically on the assessment and minimization of such risks. Operational risks are managed through close monitoring of various units on the basis of specific metrics such as patient volumes patient occupancy levels ARPOB or average Revenue per Occupied Bed ALOS or Average Length of Stay key consultant attrition levels and asset utilization levels. While the scope of work in the business is large the strategy is centered on strengthening our presence in key strategic markets with the right balance of risk-reward. However there may be other risks and uncertainties that may affect the Company’s performance and ability to achieve its objectives which may be deemed immaterial. Internal Control Your company has over the last few years been growing organically and inorganically. Hence it is very important that the internal systems are robust and reviewed periodically to ensure that all assets are safeguarded and protected. Your company places considerable emphasis on organization and environment management control and management of operational performance and information technology system. An extensive budgetary control review mechanism is also put in place for timely review of comparison of actual performance with the forecasted performance. These systems enable the company to comply with internal policies procedures standard guidelines and local laws to help protect the company’s assets and also guard against divulging of any confidential information. In addition it provides for adequate checks and balances meant to ensure that all transactions are authorized recorded and reported correctly.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 148 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 148 149 Also due to the enhanced reporting responsibilities laid down by the Companies Act your company has made it a point to evaluate the financial and operational components by an internal and it external audit and periodic review by the management from time to time and ensure that they are aligned with the desired structure. The implementation of the above helps in setting up a robust governance framework including consideration of outsourced processes assessment of key risks detailed documentation of risks and mitigating controls strong information technology systems periodic reviews etc. Finally the system of internal control is designed to manage rather than eliminate the risk of failure to achieve policies aims and objectives and to provide reasonable assurance of effectiveness. Human Resources The Human Resource strategy of Apollo is based on the firm belief that our people are our Core strength and is focused on shaping our talent for tomorrow. As on March 31 2016 the Apollo Group comprises a total employee strength of 43557 including our subsidiaries joint ventures and associates. A holistic approach to People Strategy which includes an Overarching talent management plan and is supported by well-defined Engagement Rewards Regonition and Leadership development frameworks is in place to ensure that we continue to excel and provide our Customers an experience that is unmatched. Apollo firmly believes that motivation engagement and development of our people are the key factors behind our growth. A multi pronged engagement strategy has been developed for all employees. We provide them multiple forums and channels for providing their feedback and sharing their views. Apart from this through our Employee Satisfaction Surveys and Consultant Satisfaction Surveys we identify challenges faced by our associates and improvise our HR practices for ensuring better engagement. Effective communication channels have been developed so that the employees’ feedback reaches the relevant teams and Leadership so that actionables are driven directly from the top. The future is going to be driven by Technology and data and Apollo has made rapid strides in using technology to manage Human Resources. With the implementation of You-r-HR our Human Capital Management system across Hospitals our entire HR Management Systems are now digitized. This is the largest cloud based HCM implementation in Asia and exemplifies our commitment to the digital revolution. The competition for attracting talent is severe than ever in the Healthcare space. In order to attract the best talent in the country and across the globe we have created the Apollo Career Website and integrated the same with our online recruitment platform. This has yielded rich dividends in terms of getting the right people for the Organization and has also helped in seamless talent mobility within the Organisation. As always we continue to believe that rewarding and recognizing performance is essential to build a stronger Apollo. A newly defined Performance Management system which is robust and has higher linkage to measurable outcomes has been put in place. We have now moved into an Online Goal Performance Management through You-r-HR which is efficient effective transparent and makes the process employee friendly. Our organizational success depends on the high level of skills commitment and professionalism of our people. Continuous education is imbibed in our DNA and this has been the central theme of our growth story. This year we launched the Apollo Medical Development Programme AMDP a structured soft skill and clinical competencies development programme covering more than 1500 Junior Medical Staff Doctors across the Group. The Nursing Continuous Education Programmes in each unit have been modified to become more valuable and impactful. The Nursing Leadership Development Programme has been executed for 2nd level nursing leaders to hone their skills and competencies and prepare them to take up higher responsibilities. We have continued to work on the Chairman’s Club our unique integrated Leadership Development and Succession Planning Programme which has been expanded to include AHLL as well. Being the pioneer in health care service delivery Apollo Hospitals Human Resource function aim is to go beyond everyday rigour and create an environment where our associates collectively feel a sense of belonging purpose and are aligned with the Organization’s values and mission. We also consistently endeavor to create a culture of innovation and collaboration to sustain our leadership position in the Healthcare space. Thanks to our consistent efforts we have been recognized for the Best Use of Technology for Recruiting You-R-HR-Recruit Best Talent Management practice for the Apollo Medical Development Programme and Best Workplace Practices for Apollo Wellness by the Employer Branding Institute and Global Talent Acquisition RASBIC Recruiting and Staffing Best in Class and the Best Career Website by a Corporate HR team at the HR Asia Recruitment Awards 2016 at Singapore. We also won the prestigious International Service Excellence Award in the 2015 Australian Service Excellence Awards for our high standards of management training and commitment to excellence. We have an exciting road map ahead of us and we look forward to improving our capabilities strengths and empowering ourselves to touch more lives as we look forward to this journey of Excellence in Human Care Cautionary Statement Some of the statements in this Management Discussion Analysis describing the Company’s objectives projections estimates expectations and predictions may be ‘forward looking statements’ within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied. Important developments that could alter your Company’s performance include increase in material costs technology developments and significant changes in political and economic environment tax laws and labour relations.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 150 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 150 151 The Apollo Standards of Clinical Care Apollo Hospitals Group has established standards of clinical care that ensure that all its hospitals deliver safe and quality clinical care to all its patients irrespective of the location and size of the hospital. The Apollo Standards of Clinical Care TASCC consist of a set of process requirements and outcome measures that underlie the Apollo Hospitals approach to clinical care. ACE 1earlier known as ACE25 was institutionalized in the year 2008. ACE 2 was initiated in 2011. Apollo Quality Program AQP Apollo Incident Reporting System AIRS Apollo Mortality Review AMR and Apollo Critical Policies Plans and Procedures ACPPP were implemented in January 2012. ACE 1 and ACE 2 are clinical balanced scorecards incorporating 25 clinical quality parameters each involving complication rates mortality rates hospital acquired infection rates one year survival rates and average length of stay after major procedures with international benchmarks. AQP is a program for the standardization of processes for clinical handovers medication safety surgical safety patient identification verbal orders hand washing compliance and falls prevention across Apollo Hospitals. Compliance is measured through a monitoring dashboard of 20 parameters. AIRS provides a mechanism of tracking of all incidents that pose a safety risk to patients. ACPPP are 25 policies covering clinical care nursing care managerial processes and infrastructural requirements like restraints consents critical test results disaster rcovery policy that are implemented by all hospitals. ACE 1 ACE 1 is a clinical balanced scorecard incorporating 25 clinical quality parameters involving complication rates mortality rates one year survival rates and average length of stay after major procedures like liver and renal transplant CABG TKRTHR TURP PTCA endoscopy large bowel resection and MRM covering all major specialities. Also included are hospital acquired infection rates pain management and medication errors. Parameters have been benchmarked against the published bench marks of the world’s best hospitals including Cleveland Clinic Mayo Clinic National Healthcare Safety Network Massachusetts General Hospital AHRQ US Columbia University Medical Center and US Census Bureau. There are weighted scores for outcomes colour coded green orange and red. The cumulative score achievable is capped at 100.The numerators denominators and inclusions and exclusions are defined lucidly and methodology of data collection is standardized. Data is uploaded online every month through a unique login ID and password. Action taken reports for parameters falling in red are submitted quarterly by all hospitals and reviewed by the board. A quarterly half yearly and annual analysis of the trends is done. The collective data for all locations can be viewed by the Group leadership at any point in time. There is an ACE 1 Champion Award for the hospital with the highest score. Clinical Governance ACE 2 ACE 2 earlier known as RACE for centers of excellence Cardiac Sciences Oncology Transplantation Neuro sciences and Orthopedics. denotes a set of 25 clinical parameters other than those covered under ACE25 to assess the outcomes relating to all the parameters are bench marked against the published outcomes of the world’s best institutions. Mortality Review The mortality review in all Apollo Hospitals is standardized with trigger criteria checklists peer review processes and mortality meeting formats. Formal structured review of deaths not just unexpected deaths help detect quality issues that would otherwise remain hidden particularly around every day processes of care. TASCC scores have shown a steady increase from 233 in FY 2012-2013 to 301 in FY 2015-2016 validating increasing standardisation of processes and improving outcomes. Apollo Clinical Audit Team ACAT In assessing the clinical excellence of a hospital the sanctity of the data methodology and the definitions followed by each location cannot be overemphasized. A team of auditors from various Apollo Hospitals carry out an audit across the Group hospitals to validate the data methodology and definitions used by each of the participating hospitals. ACAT audits are conducted at each Apollo Unit every six months using a detailed audit guide. Checklists The WHO Safe Surgery checklist is a proven tool that promotes surgical safety. Having piloted this at some of the Apollo Hospitals inputs were obtained from these locations to standardize the Apollo Safe Surgery Checklist. The checklist comprises of 3 components sign-in time-out and sign-out. This forms a part of the patient file and fulfils all accreditation requirements. It has now been implemented across the Group. The ICU checklist is used in all the ICUs for every patient. The checklist augments the daily multidisciplinary rounds and alerts the doctor so that important issues are not missed. This is an evidence-based tool to achieve care goals. Both the Safe Surgery Checklist and the ICU Checklist implementation across the Apollo Group are closely monitored using defined indicators. Apollo Innovation and Quality Awards Apollo Innovation and Quality Awards provides a platform to highlight the distinctive initiatives and unrelenting efforts undertaken at each of our hospitals for improving quality and safety for our patients. Nominations for Apollo Innovation and Quality Awards each year are invited from all locations in six categories.156 nominations were received for the awards in 2015. The nominations are judged by an esteemed panel of independent jury members. The top three winners in each category are felicitated on the Founders’ Day every year. The 5th International Congress on Patient Safety To bring a transformational change in patient safety Apollo Group continuous to endeavour to build a safe healthcare ecosystem. The focus has expanded from delivering advanced treatment to safe treatment and reducing medical errors. The 5th International Patient Safety Congress 2015 was held in association with highly reputed professional organizations including WISH JCI ICHOM NABH Royal College as knowledge partners. After the phenomenal success of the congress in earlier years in 2015 the venue for the event was the IT capital of India - Bengaluru.

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 152 Business Review Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 152 153 The theme was Cultural Transformation on Patient Safety through Education Engagement and Empowerment of Staff and Patients. This international event served as a platform where global healthcare leaders shared their experiences and exchanged knowledge expertise and innovations in patient safety. More than 1800 delegates from across 20 countries participated in the event of which 706 were practicing doctors 633 were hospital administrators and healthcare executives and 350 were nurses making it one of the biggest conferences of its kind in the field of Patient Safety and Healthcare Quality in Asia. There were 150 speakers more than 100 nominations for the Patient Safety Awards were received from 20 countries. Awards The Apollo Hospital Group has been recognised and awarded for exemplary work at various fora. In September 2015 Apollo Hospitals captured the Asian Hospital Management Healthcare Excellence Awards held at Yangon Myanmar winning 7 awards in 6 categories. There were 361 entries from 101 hospitals in 12 countries vying for these HMA Awards in 2015. The Week - Nielsen Best Hospital Survey 2015 recognized Apollo Hospitals Chennai as the best corporate multispecialty hospital in India and Indraprastha Apollo Hospitals Delhi the third best. Apollo Speciality Hospitals Teynampet Chennai won the FICCI Healthcare Excellence Award in the Patient Safety category. Apollo Hospitals Group won the Australian Service Excellence Award 2015 for the category Division of a Large Business – International. The award showcases the highest achievement in customer excellence. Porter Prize for Value Based Healthcare was awarded to the Apollo Hospitals Group. Apollo Hospitals won three prestigious awards from Employer Branding Institute on 16th February 2015 cementing the Apollo Hospitals Group position as one of the most reputed employers in the industry and in the country. These accolades were - Best Employer of the Year Award for Talent Management and Award for Excellence in HR through Technology. The Hon’ble President of India Shri Pranab Mukherjee presented the Best Medical Tourism Facility Award to Apollo Health City Hyderabad in September 2015 at Vigyan Bhawan New Delhi. This was the third consecutive time that the hospital got this prestigious award. Apollo Hospitals Chennai won the prestigious award at the 23rd National CII Quality Summit held in Bangalore on Nov 5th 2015 in three categories – Excellence in Operations Excellence in Customer Management and Excellence in People Management. Apollo Hospitals Group also won the ASSOCHAM India-Africa Champion at the Biz Awards 2015 for its outstanding contribution in the African Healthcare sector. CIMS Healthcare Excellence Awards 2015 were won by Apollo Hospitals Chennai for the category ‘Best Tourism Facility’Indraprastha Apollo Hospitals Delhi for the category ‘Best Hospital of the Year’ Apollo Speciality Hospital Chennai– Teynampet for ‘Highest Standard in Patient Care’. Apollo White Dental bagged the award for ‘Best Dental Clinic Network Award’. National Award for Health Care Excellence - CMO Asia was presented to Apollo Gleneagles Kolkata for the category ‘Innovation in Quality of Service Delivery’. Dr Rupali Basu CEO Apollo Gleneagles Kolkata won the ‘Women Leadership Award in Healthcare’- CMO Asia. Apollo Gleneagles Kolkata also won the Asia Healthcare Excellence Awards. Medical Healthcare Innovation Awards was conferred to Apollo Hospitals Hyderabad which won the Medical Award for the project Superman Killer – Reduction of Infected bedsores under the category of Clinical and Surgical practices. Indraprastha Apollo Hospitals Delhi won the KoAwatea International Excellence in Healthcare Improvement Awar ds 2015 for their nominat ion ‘R aising the Bar… Creat ing a C ulture o f Safety’ for the categor y ‘Impro v ing Pat ient Safety’. Apollo Hospitals Chennai won the first prize in the CII Southern Region KAIZEN Competition in the Large Scale / Service category. The CII ITC Sustainability Awards for Corporate Excellence was presented to Apollo Gleneagles Hospitals Kolkata. Apollo Hospitals Chennai was awarded the prestigious Frost and Sullivan India Healthcare Excellence Awards 2015 for being the ‘Comprehensive Neurosciences Service Provider Company of the Year’. Apollo Speciality Hospitals Vanagaram Chennai was conferred the ‘Golden Peacock Business Excellence Award’ for the year 2015 at Dubai. The World Hypertension League WHO Partner selected Apollo Hospitals Jubilee Hills Hyderabad to set up its South Asia Office. This is yet another milestone achieved by the Apollo Hospitals Group as a national and international leader in healthcare with global recognition. Apollo Speciality Hospital Vanagaram Chennai won four awards from the Association of Overseas Technical Scholarship Awards for Best Kaizen Projects 2015 for the mistake proofing efforts implemented in delivering healthcare. Accreditation Accreditation has helped us to embark on a highly structured approach to clinical excellence and quality. Today six of our hospitals are accredited by the Joint Commission International JCI and 14 hospitals have been accredited by the National Accreditation Board for Hospitals Healthcare Providers NABH. JCI Accredited Hospitals • Indr apr astha Apol lo Hospi tals New Delhi • Apol lo Hospi tals Hy der aba d • Apol lo Hospi tals Chennai • Apol lo Hospi tals Bangalore • Apol lo Gleneagles Hospi tals Kolkata • Apol lo Hospi tals Dhaka NABH Accredited Hospitals • Apol lo Hospi tals Ahmedaba d • Apol lo Hospi tals Bilaspur • Apol lo Spec iali ty Hospi tals Ma dur ai • Apol lo BGS Hospi tals Mysore • Apol lo Jehang ir Hospi tal Pune

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 154 155 • Apol lo Hospi tals Bhubaneswar • Apol lo Hospi tals Secunder aba d • Apol lo Hospi tal Hy derguda Hy der aba d • Apol lo Spec ialty Hospi tals V anagar am Chennai • Apol lo Hospi tals Kak ina da • Apol lo Hospi tals Noida • Apol lo Spec ialty Hospi tals Nandanam Chennai • Apol lo Hospi tals Bhilai • Apol lo Hospi tals T r ichy DNB/ FNB Program at Apollo Hospitals DNB/FNB programs for 38 specialities are being conducted. There are 348 DNB/FNB seats and 662 trainees are pursuing the DNB/FNB programs in 15 Apollo Hospitals. Adjunct titles of Professorships and Associate Professorships of Apollo Hospitals Educational Research Foundation Senior faculty members from Apollo Hospitals who have an active interest in research and academics are nominated for the grant of Adjunct Titles. Seventy Consultants have been conferred with Adjunct Title of Professor and Associate Professor of AHERF in various specialities covering Anaesthesiology Biochemistry Cardiology Critical Care Medicine Dermatology Endocrinology and Diabetology ENT and Head and Neck Surgery Gastroenterology and Hepatology Minimal Access surgery Gynecology Head and neck oncology Hematology Infectious Disease Internal and Hyperbaric Medicine Interventional Cardiology Liver Transplant Internal Medicine Nephrology Neuro-anesthesia Neurology Oncology Orthopedics Orthopedic and Joint Replacement Surgery Pediatric Neurosurgery Pediatric Cardiology Pediatric Cardiac Surgery Pediatric Surgery Paediatric Intensive Care Radiology Respiratory Medicine Emergency Medicine Rheumatology Surgical Gastroenterology Transfusion Medicine Urology and Transplant surgery. Recognition of Published Papers Apollo Hospitals encourages staff to undertake research activities and recognizes their achievements in publishing research papers. Conferences symposia and continuing medical education programs are organized regularly to help keep the staff abreast with the latest developments. In 2015 163 papers were received for recognition from Apollo Hospitals Group consultants and 140 papers were recognized with cash awards along with a citation from the Chairman. Independent Auditors’ Report To the Members of Apollo Hospitals Enterprise Limited Report on the Financial Statements We have audited the accompanying financial statements of Apollo Hospitals Enterprise Limited the Company which comprise the Balance Sheet as at March 31 2016 and the Statement of Profit and Loss the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information which we have signed under reference to this report. Management’s Responsibility for the Financial Statements The Company’s Board of Directors is responsible for the matters stated in Section 1345 of the Companies Act 2013 “the Act” with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies Accounts Rules 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities selection and application of appropriate accounting policies making judgments and estimates that are reasonable and prudent and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under section 14310 of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 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 whether due to fraud or error. In making those risk assessments the auditor considers internal financial controls relevant to the Company’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company’s directors as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 156 157 Opinion In our opinion and to the best of our information and according to the explanations given to us the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a in the case of the Balance Sheet of the state of affairs of the Company as at March 31 2016 b in the case of the Statement of Profit and Loss of the profit for the year ended on that date and c in the case of the Cash Flow Statement of the cash flows for the year ended on that date. Report 0n 0ther Legal and Regulatory Requirements: 1. As required by the Companies Auditor’s Report Order 2016 “The Order” issued by the Central Government of India in terms of Section 14311 of the Act we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order. 2. As required by section 1433 of the Companies Act 2013 we report that: a We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit b In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books c The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account. d In our opinion the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies Accounts Rules 2014. e On the basis of written representations received from the directors as on March 31 2016 taken on record by the Board of Directors none of the directors is disqualified as on March 31 2016 from being appointed as a director in terms of section 1642 of the Companies Act 2013. f With respect the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in Annexure ‘B”. g With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies Audit and Auditors Rules 2014 in our opinion and to the best of our information and according to the explanations given to us: i The Company has disclosed the impact of pending litigations on its financial position in its financial statements – Refer note 28 to the financial statements ii The Company is fully hedged for all long term derivative contracts and there are no material foreseeable losses on long term contracts for which any provision is required iii There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company New No. 17 Bishop Wallers Avenue West For S Viswanathan LLP Mylapore Chennai – 600 004 Chartered Accountants FRN: 004770S/S200025 V C Krishnan Place: Chennai Partner Date :25th May 2016 Membership No: 022167 On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit we report that: i. a The Company is maintaining proper records showing full particulars including quantitative details and situation of its fixed assets. b The fixed assets have been physically verified by the management at reasonable intervals according to the information and explanation given to us no material discrepancies were found on such verification. c The title deeds of immovable properties owned by the Company are held in the name of the Company. The title deeds of immovable property in the form of building constructed on leasehold land are held in the name of the Company. Also refer to note no: 11 in notes to accounts. ii. Stock of medicines stores spares consumables chemicals lab materials and surgical instruments have been physically verified at reasonable intervals by the management. According to the information and explanation given to us no material discrepancies were noticed. iii. According to the information and explanation given to us and on the basis of our examination of the books of accounts the Company has not granted any loans secured or unsecured to companies firms Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act 2013. Consequently the provisions of clauses 3a and 3b are not applicable. iv. The Company has not provided any loan or investments or Guarantees or Securities which falls under the purview of Sec 185 and Sec 186 of the Companies Act 2013. v. In our opinion and according to the information and explanations given to us the Company has complied with the directives issued by the Reserve Bank of India and provisions of Section 73 to 76 or any other relevant provisions of the Companies Act 2013 and Companies Acceptance of Deposits amended Rules 2015 with regard to deposits accepted from the public including unclaimed deposits matured in earlier years that are outstanding during the year. To the best of our knowledge and according to the information and explanations given to us no order has been passed by the Company Law Board National Company Law Tribunal or Reserve Bank of India or any other Court or any other Tribunal on the Company in respect of the aforesaid deposits. vi. We have broadly reviewed the records maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records under sub-section 1 of Section 148 of the Act and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However we have not made a detailed examination of the records. Annexure A to Independent Auditors’ Report The Annexure referred to in paragraph 1 of our Report of even date to the members of Apollo Hospitals Enterprise Limited on the accounts of the Company for the year ended March 31 2016.

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 158 159 vii. a According to the information and explanations given to us the Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund Employees’ State Insurance Income Tax Sales Tax Service tax Customs Duty Cess and other statutory dues applicable to it. To the best of our knowledge and according to the information and explanations given to us there are no arrears of outstanding statutory dues as at March 31 2016 for a period of more than six months from the date they became payable. To the best of our knowledge and belief and according to the information and explanations given to us excise duty is not applicable to this Company. b According to the information and explanations given to us and the records of the Company examined by us there are no dues disputed with respect to Cess. The particulars of Sales tax Service Tax Customs duty and Income tax which have not been deposited on account of any dispute are as follows: Name of the statute Nature of the dues Amount `in million 31.03.2016 Period to which the amount relates Forum where dispute is pending Customs Act 1962 Customs duty 99.70 1996 1997 Assistant Collector of Customs Chennai Hyderabad Customs duty Service Tax Service tax 29.63 2007-12 2012-13 2013-14 CESTAT Delhi Value Added Tax Act 2004 Value Added Tax 24.88 2008-09 2009-10 2010-11 Deputy Commissioner of Commercial Tax Enforcement Chennai Income Tax Act 1961 Income Tax 49.12 Assessment Year 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 Department has filed appeal before Madras High Court 142.66 Assessment Year 2010-2011 2011-2012 2012-2013 CIT Appeals 136.76 Assessment Year 2000-2001 Honourable Supreme Court Total 482.75 Refer Clause i c Note 28- Notes forming part of Accounts viii. In our opinion and according to the information and explanations given to us the Company has not defaulted in repayment of any dues to financial institutions banks and debenture holders. ix. In our opinion and according to the information and explanations given to us the Company has not raised any money by way of initial public offer including debt instruments and hence this clause is not applicable. x. 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. xi. The managerial remuneration paid by the Company is as per Sec 197 of the Companies Act 2013 and Schedule V of the Companies Act 2013. xii. The Company is not a Nidhi Company and hence this clause is not applicable. xiii. All the transactions mentioned are in compliance with Sec 177 and Sec 188 of the Companies Act 2013 and are disclosed as required under the applicable Accounting Standards. xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence this clause is not applicable. xv. According to the information and explanation given to us the Company has not entered into non cash transactions with directors or persons connected with them which will come under the purview of Sec 192 of the Companies Act 2013. xvi. As the Company is not in non banking financial services this clause is not applicable. New No. 17 Bishop Wallers Avenue West For S Viswanathan LLP Mylapore Chennai – 600 004 Chartered Accountants FRN: 004770S/S200025 V C Krishnan Place: Chennai Partner Date :25th May 2016 Membership No: 022167

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 160 161 Annexure – B to the Auditors’ Report Report on the Internal Financial Controls under Clause i of Sub-section 3 of Section 143 of the Companies Act 2013 “the Act” We have audited the internal financial controls over financial reporting of Apollo Hospitals Enterprise Limited “the Company” as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date. Management’s Responsibility for Internal Financial Controls The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ‘ICAI’. These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company’s policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013. Auditors’ Responsibility Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting the “Guidance Note” and the Standards on Auditing issued by ICAI and deemed to be prescribed under section 14310 of the Companies Act 2013 to the extent applicable to an audit of internal financial controls both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting. Meaning of Internal Financial Controls over Financial Reporting A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that 1 pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company 2 provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company and 3 provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use or disposition of the company’s assets that could have a material effect on the financial statements. Inherent Limitations of Internal Financial Controls over Financial Reporting Because of the inherent limitations of internal financial controls over financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. Opinion In our opinion the Company has in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. For S Viswanathan LLP Chartered Accountants FRN: 004770S/S200025 V C Krishnan Place: Chennai Partner Date : 25th May 2016 Membership No: 022167

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 162 163 Balance Sheet As at 31st March 2016 As per our Report annexed For and on behalf of the Board of Directors For S. Viswanathan LLP Krishnan Akhileswaran Dr. Prathap C Reddy Chartered Accountants Chief Financial Officer Executive Chairman Firm Registration No. 004770S/S200025 V C Krishnan S M Krishnan Preetha Reddy Partner Vice President - Finance Executive Vice Chairperson Membership No. 022167 Company Secretary 17 Bishop Wallers Avenue West Suneeta Reddy Mylapore Chennai - 600 004 Managing Director Place : Chennai Date : 25th May 2016 Particulars Note 31.03.2016 31.03.2015 I. EQUITY AND LIABILITIES 1 Shareholders’ Funds a Share Capital 2 695.63 695.63 b Reserves and Surplus 3 33605.68 30915.08 2 Non-Current Liabilities a Long-term borrowings 4 19489.50 14608.02 b Deferred Tax Liabilities Net 5 4769.13 4019.46 c Other Long term Liabilities 6 2.56 1.47 3 Current Liabilities a Short-term Borrowings 7 1530.12 557.81 b Trade Payables 8 4012.78 3201.00 c Other Current Liabilities 9 3747.12 2896.75 d Short-term Provisions 10 531.73 1304.37 TOTAL 68384.25 58199.59 II. ASSETS 1 Non-Current Assets a Fixed Assets i Tangible Assets 11 28241.08 24138.60 ii Intangible Assets 12 1075.17 136.85 iii Capital Work-in-Progress 13 5790.99 5121.59 b Non-Current Investments 14 8424.49 5988.59 c Long-term Loans and Advances 15 7024.10 5850.63 2 Current Assets a Current Investments 16 673.21 1141.62 b Inventories 17 4221.53 3325.04 c Trade Receivables 18 6151.09 5495.45 d Cash and Cash Equivalents 19 2557.56 2492.28 e Short-term Loans and Advances 20 3724.50 4199.15 f Other Current Assets 21 500.53 309.79 TOTAL 68384.25 58199.59 III. NOTES FORMING PART OF ACCOUNTS 1-42 ` in million includes a portion of Long term borrowings of ` 1895.81 ` 1644.56 million payable within the next 12 months. Statement of Profit and Loss for the year ended 31st March 2016 As per our Report annexed For and on behalf of the Board of Directors For S. Viswanathan LLP Krishnan Akhileswaran Dr. Prathap C Reddy Chartered Accountants Chief Financial Officer Executive Chairman Firm Registration No. 004770S/S200025 V C Krishnan S M Krishnan Preetha Reddy Partner Vice President - Finance Executive Vice Chairperson Membership No. 022167 Company Secretary 17 Bishop Wallers Avenue West Suneeta Reddy Mylapore Chennai - 600 004 Managing Director Place : Chennai Date : 25th May 2016 Particulars Note 31.03.2016 31.03.2015 I. REVENUE FROM OPERATIONS 22 54090.71 45927.94 II. OTHER INCOME 23 688.93 452.68 TOTAL 54779.64 46380.62 III. EXPENSES a Cost of materials consumed during the year 24 11110.34 10690.78 b Purchase of Stock-in-Trade 18442.17 14041.45 c Changes in Inventories of stock-in-trade 776.06 492.68 d Employee Benefits Expense 25 8455.15 7209.58 e Finance Costs 26 1335.79 832.88 f Depreciation and Amortization Expense 1981.29 1580.41 g Other Expenses 27 9452.93 7698.03 TOTAL 50001.61 41560.45 IV. PROFIT BEFORE EXCEPTIONAL AND EXTRAORDINARY ITEMS AND TAX 4778.03 4820.17 V. EXCEPTIONAL ITEMS 256.78 146.88 VI. PROFIT BEFORE TAX 4521.25 4673.29 VII. TAX EXPENSE a Current Tax MAT 979.21 922.20 b Less MAT Credit Entitlement 902.01 445.74 c Net Current Tax a-b 77.20 476.46 d Deferred Tax 749.66 730.88 VIII PROFIT / LOSS FOR THE PERIOD 3694.39 3465.95 IX EARNINGS PER EQUITY SHARE OF FACE VALUE OF `5/- EACH 1 Basic ` 26.55 24.91 2 Diluted ` 26.55 24.91 X NOTES FORMING PART OF ACCOUNTS 1-42 ` in million Other Income includes profit on sale of investments amounting to `467.72 million. Include diminution in the value of investments amounting to `112.30 million and arrears of bonus amounting to ` 144.48 million.

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 164 165 1. SIGNIFICANT ACCOUNTING POLICIES A. Basis of Preparation of Financial Statements The financial statements are prepared under the historical cost convention under accrual method of accounting and as a going concern in accordance with the Generally Accepted Accounting Principles GAAP prevalent in India and the Mandatory Accounting Standards as notified under the Companies Accounting Standards Rules 2006 and according to the provisions of the Companies Act 2013. B. Inventories 1. The inventories of all medicines medicare items traded and dealt with by the Company are valued at cost. In the absence of any further estimated costs of completion and estimated costs necessary to make the sale the Net Realisable Value is not applicable. 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 wherever applicable applying the FIFO method. 2. Stock of provisions stores including lab materials and other consumables stationeries and housekeeping items are stated at cost. The net realisable value is not applicable in the absence of any further modification/ 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 wherever applicable applying FIFO method. 3. Surgical instruments linen crockery and cutlery are valued at cost and are subject to 1/3 write off wherever applicable applying FIFO method. The net realisable value is not applicable in the absence of any further 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. 4. Imported inventories are accounted for at the applicable exchange rates prevailing on the date of transaction. C. Prior Period Items and Extraordinary Items Prior period items and extraordinary items are separately classified identified and dealt with as required under Accounting Standard 5 on ‘Net Profit or Loss for the Period Prior Period Items and Changes in Accounting Policies’ as notified under the Companies Accounting Standards Rules 2006. D. Depreciation and Amortisation i. Depreciation has been provided on straight line method at rates specified in Schedule II of the Companies Act 2013 on single shift basis. ii. Depreciation on new assets acquired during the year is provided at the rates applicable from the date of 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 their disposal. Notes Forming Part of Accounts iv. Amortization a. The cost/premium of land and building taken on lease by the Company from Orient Hospital Madurai will be amortised over a period of 30 years though the lease is for a period of 60 years. The cost/premium of land and building taken additionally on lease by the Company at Madurai is for a period of 9 years with an option to extend the lease by another 16 years. The depreciation on the leasehold building is charged on a straight line basis with the lease period being considered as 25 years. The Company has taken land in Karaikudi from Apollo Hospitals Educational Trust on lease for a period of 30 years. The building constructed on the lease land is amortised over a period of 30 years. The cost of land and building taken on lease by the Company from Rigid Hospitals Pvt Limited Chennai will be amortized over a period of 30 years. The cost of land and building taken on lease by the Company situated at Old Mahabalipuram Road Karapakkam Chennai will be amortised over a period of 30 years. This is in conformity with the definition of lease term as per Clause 3 of AS 19 ‘Leases’ as notified under the Companies Accounting Standards Rules 2006. b. Lease rental on operating leases is recognised as an expense in the Statement of Profit and Loss on straight-line basis as per the terms of the agreement in accordance with Accounting Standard 19 ‘Leases’ as notified under the Companies Accounting Standards Rules 2006. E. Revenue Recognition a. Income from Healthcare Services is recognised on completed service contract method. The hospital collections of the Company are net of discounts payments to doctors. Revenue also includes the value of services rendered pending final billing in respect of in-patients undergoing treatment as on 31st March 2016. b. Pharmacy Sales are recognised when the risk and reward of ownership is passed to the customer and are stated net of returns discounts and exclusive of VAT wherever applicable. c. Hospital Project Consultancy income is recognised as and when it becomes due on percentage completion method on achievement of milestones. d. Income from Treasury Operations is recognised on receipt or accrual basis whichever is earlier. e. Interest income is recognised on a time proportion basis taking into account the principal amount outstanding and the rate applicable. f. Royalty income is recognised on an accrual basis in accordance with the terms of the relevant agreement. g. Dividend income is recognised as and when the owner’s right to receive payment is established. F. Fixed Assets a. All Fixed Assets are stated at their original cost of acquisition less accumulated depreciation and impairment losses are recognised where necessary Also refer Note 1O in the Notes forming part of Accounts.

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 166 167 Additional cost relating to the acquisition and installation of fixed assets are capitalised. Wherever VAT is eligible for input availment Fixed Assets are stated at cost of acquisition after deduction of input VAT. b. Capital work – in – progress comprises of amounts expended on development/acquisition of Fixed Assets that are not yet ready for their intended use at the Balance Sheet Date. Expenditure during construction period directly attributable to the projects under implementation is included under Capital work- in –progress pending allocation to the assets. c. Assets acquired under Hire Purchase agreements are capitalised to the extent of principal value while finance charges are charged to revenue on accrual basis. d. Interest on borrowings for acquisition of Fixed Assets and exchange fluctuation arising out of foreign borrowings and the related revenue expenditure incurred for the period prior to the commencement of operations for the expansion activities of the Company are capitalised. G. Transactions in Foreign Currencies a. Monetary items relating to foreign currency transactions remaining unsettled at the end of the year are translated at the exchange rates prevailing at the date of the Balance Sheet. The difference in translation of monetary items and the realised gains and losses on foreign exchange transactions are recognised in the Statement of Profit and Loss in accordance with Accounting Standard 11 – ‘The Effects of Changes in Foreign Exchange Rates Revised 2003’ as notified under the Companies Accounting Standards Rules 2006 Also refer Note 23 a in the Notes forming part of Accounts. b. Exchange differences arising on settlement or restatement of foreign currency denominated liabilities borrowed for the acquisition of Fixed Assets are now capitalised based on Para 46A of Accounting Standard 11 – ‘The Effects of Changes in Foreign Exchange Rates Revised 2003’. c. The use of foreign currency forward/swap contract is governed by the Company’s policies approved by the Board of Directors. These hedging contracts are not meant for speculation. H. Investments Investments are classified as current or long term in accordance with Accounting Standard 13 on ‘Accounting for Investments’ a. Long-term investments are stated at cost to the Company in accordance with Accounting Standard 13 on ‘Accounting for Investments’. The Company provides for diminution in the value of Long-term investments other than those temporary in nature. b. Current investments are valued at lower of cost and fair value. Any reduction to carrying amount and any reversals of such reductions are charged or credited to the Statement of Profit and Loss. c. On disposal of an investment the difference between the carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss. d. In case of foreign investments 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 shown at the face value reflected in the foreign currency of that country. I. Employee Benefits Short-term employee benefits benefits which are payable within twelve months after the end of the period in which the employees render service are measured at cost. Long-term employee benefits benefits which are payable after the end of twelve months from the end of the period in which employees render service and post-employment benefits benefits which are payable after completion of employment are measured on a discounted basis by the Projected Unit Credit Method on the basis of annual third party actuarial valuations. Defined Contribution Plan The Company makes contribution towards Provident Fund and Employees State Insurance as a defined contribution retirement benefit fund for qualifying employees. The Provident Fund Plan is operated by the Regional Provident Fund Commissioner. Under the scheme the Company is required to contribute a specified percentage of payroll cost as per the statute to the retirement benefit schemes to fund the benefits. Employees State Insurance dues are remitted to the Employees State Insurance Corporation. Defined Benefit Plans For Defined Benefit Plan the cost of providing benefits is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial Gains or Losses are recognised in full in the Statement of Profit and Loss for the period in which they occur. a. Gratuity The Company makes annual contribution to the Employees’ Group Gratuity-cum-Life Assurance Scheme of the ICICI and Life Insurance Corporation of India for funding defined benefit plan for qualifying employees which are recognised as an expense. The Scheme provides for lump sum payment to vested employees at retirement death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service. The Company restricts the payment of gratuity to the employees below the rank of General Managers to the limits specified in the payment of Gratuity Act 1972. However the Company complies with the norms of Accounting Standard 15. b. Leave Encashment Benefits The Company pays leave encashment benefits to employees as and when claimed subject to the policies of the Company. The Company provides leave benefits through annual contributions to the fund managed by HDFC Life. J. Borrowing Cost Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such asset. As per Accounting Standard 16 ‘Borrowing costs’ a qualifying asset is one that takes necessarily a substantial period of time to get ready for its intended use. All other borrowing costs are expensed as and when incurred. K. Segment Reporting Identification of Segments The Company has complied with Accounting Standard 17- ‘Segment Reporting’ with Business as the primary segment.

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 168 169 The Company operates in a single geographical segment which is India and the drugs sold in the pharmacies are regulated under the Drug Control Act which applies uniformly all over the Country. The risk and returns of the enterprise are very similar in different geographical areas within the Country and hence there is no reportable secondary segment as defined in Accounting Standard 17. Segment Policies The accounting policies adopted for segment reporting are in line with the accounting policies adopted in consolidated financial statements with the following additional policies for Segment Reporting: 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 which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under “unallocable expenses”. ii. Inter segment revenue and expenses are eliminated. The Company has disclosed this Segment Reporting in Consolidated Financial Statements as per para 4 of Accounting Standard – 17- ‘Segment Reporting’. L. Lease Operating Lease Leases where the lessor effectively retains substantially all the risks and the benefits of ownership of the 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. M. Earnings per Share In determining the earnings per share the Company considers the net profit after tax before extraordinary item and after extraordinary items and includes post - tax effect of any extraordinary items. The number of shares used in computing the basic earnings per share is the weighted average number of shares outstanding during the period. For computing diluted earnings per share potential equity shares are added to the above weighted average number of shares. N. Taxation i. Income Tax Income tax is computed using the tax effect accounting method where taxes are accrued in the same period as and when the related revenue and expense arise. A provision is made for Income Tax annually based on the tax liability computed after considering tax allowances and exemptions. ii. Deferred Tax The differences that result between 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 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 that sufficient future taxable income will be available against which such deferred tax asset can be realized. The tax effect is calculated on the accumulated timing differences at the beginning of this accounting year based on the prevailing enacted or substantively enacted regulations. O. Impairment The carrying amounts of assets are reviewed at each Balance 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 concept at the year end when the carrying cost of assets exceeds the 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 the purpose of arriving at impairment loss thereon if any. An impairment loss is charged to the Statement of Profit and Loss in the year in which 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. P. Bad Debts Policy The Board of Directors approves the Bad Debt Policy on the recommendation of the Audit Committee after the review of debtors every year. The standard policy for write off of bad debts is as given below subject to management inputs on the collectability of the same Period 0-1 years 0 1-2 years 25 2-3 years 50 Over 3 years 100 Q. Intangible Assets Intangible assets are initially recognised at cost and amortised over the best estimates of their useful life. Cost of software including directly attributable cost if any acquired for internal use is allocated / amortised over a period of 36 months to 120 months. R. Provisions Contingent Liabilities and Contingent Assets A provision is recognised when 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 will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are not provided for unless a reliable estimate of probable outflow to the Company exists as at the Balance Sheet date. Contingent assets are neither recognised nor disclosed in the financial statements. S. Derivative Financial Instruments The Company is exposed to foreign currency fluctuations on foreign currency loans and payables. The Company limits the effect of foreign exchange rate fluctuations by following established risk management policies including the use of derivatives. The Company enters into derivative financial instruments where the counterparty is a bank. All derivatives are effective hedges against an underlying liability and any cash flows are recognised as and when they occur. Attributable transaction costs are recognised in statement of income as a cost. Gain / losses on settlement of foreign currency derivative instruments relating to borrowings which have not been designated as hedges are recorded as finance expense.

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 170 171 2. Share Capital ` in million Particulars 31.03.2016 31.03.2015 Authorised 2000000002014-15 : 200000000 Equity Shares of `5/- each 1000.00 1000.00 10000002014-15 : 1000000 Preference Shares of `100/- each 100.00 100.00 1100.00 1100.00 Issued 139658177 2014-15 : 139658177 Equity Shares of `5/- each 698.29 698.29 Subscribed and Paid up 139125159 2014-15 :139125159Equity Shares of `5/- each fully paid up 695.63 695.63 Reconciliation of the number of shares Particulars 31.03.2016 31.03.2015 Equity Shares Equity Shares Number Amount ` in million Number Amount ` in million Shares outstanding at the beginning of the year 139125159 695.63 139125159 695.63 Shares outstanding at the end of the year 139125159 695.63 139125159 695.63 Rights preferences and restrictions attached to shares Equity shares: The Company has one class of equity shares having a par value of `5 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding. Shareholders holding more than 5 of total paid up capital Name of the Shareholder 31.03.2016 31.03.2015 Equity Shares Equity Shares No. of Shares held of Holding No. of Shares held of Holding PCR Investments Limited 27223124 19.57 27223124 19.57 Integrated Mauritius Healthcare Holdings Limited 15093860 10.85 15093860 10.85 Oppenheimer Developing Markets Fund 12014785 8.64 12086295 8.69 The Company had issued 9000000 Global Depository Receipts of `10 now 18000000 Global Depository Receipts of `5 each with two way fungibilty during the year 2005-06. Total GDR’s converted into underlying Equity Shares for the year ended on 31st March 2016 is 259856 2014-15 : 22354 of `5 each and total equity shares converted back to GDR for the year ended 31st March 2016 is 22114 2014-15 : 400 of `5 each. Total GDR’s converted into equity shares up to 31st March 2016 is 25361388 2014-15: 25101532 of `5 each. 3. Reserves and Surplus ` in million Particulars 31.03.2016 31.03.2015 a. Capital Reserves Opening Balance 18.26 18.26 Closing Balance 18.26 18.26 b. Capital Redemption Reserve Opening Balance 60.02 60.02 Closing Balance 60.02 60.02 c. Securities Premium Account Opening Balance 17138.52 17138.52 Closing Balance 17138.52 17138.52 d. Debenture Redemption Reserve Opening Balance 1297.50 812.50 + Current Year Transfer - 485.00 Closing Balance 1297.50 1297.50 e. General Reserve Opening Balance 9256.85 7756.85 + Current Year Transfer 2000.00 1500.00 Closing Balance 11256.85 9256.85 f. Surplus Opening balance 3143.93 3165.47 + Net Profit/Net Loss for the current year 3694.39 3465.95 - Proposed Dividend on Equity Shares for the year - 799.97 - Dividend Distribution Tax on proposed dividend on Equity Shares - 163.79 - Interim Dividend 834.77 - - Dividend Distribution Tax on Interim Dividend 169.02 - - Transfer to Reserves 2000.00 1500.00 - Transfer to Debenture Redemption Reserve - 485.00 - Amount charged off in accordance with transitional provisions of Schedule II to the Companies Act 2013 - 538.73 Closing Balance 3834.53 3143.93 Total 33605.68 30915.08

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 172 173 4. Long Term Borrowings ` in million Particulars 31.03.2016 31.03.2015 Secured a Non-convertible Debentures 1000 2014-15: 1000 10.30 Debentures of ` 1000000/- each 1000.00 1000.00 940 2014-15: 940 10.15 Debentures of ` 1000000/- each 940.00 940.00 Nil 2014-15: 1250 9.80 Debentures of ` 1000000/- each - 1250.00 2000 2014-15: 2000 10.20 Debentures of ` 1000000/- each 2000.00 2000.00 b Term loans From Banks HDFC Bank Limited 325.00 585.00 HDFC Bank Limited 2000.00 - Axis Bank 2700.00 1000.00 Bank of India 3000.00 1160.00 IDFC Bank Limited 500.00 250.00 ICICI Bank Limited 1100.00 - From Other Parties IFC Loan External Commercial Borrowings - 750.75 IFC Loan External Commercial Borrowings 1169.34 1403.08 HSBC Limited 1000.00 1000.00 HSBC External Commercial Borrowings 867.20 1084.00 HSBC Bills Payable 421.39 636.81 IDFC Infra Debt Fund Limited 1000.00 - Total 18022.93 13059.64 Unsecured i Deposits Fixed Deposits 138.37 220.18 ii Other Loans Bank of Tokyo Mitsubishi UFJ External Commercial Borrowings 1328.20 1328.20 Total 1466.57 1548.38 Total 19489.50 14608.02 a. 10.30 Non Convertible Debentures The Company issued to Life insurance Corporation of India 500 Nos. 10.30 Non Convertible Redeemable Debentures of `1 million each on 28th December 2010 with an option to re-purchase/re-issue some or all of its debentures in the secondary market or otherwise at any time prior to the specified date of redemption of 28th December 2020 and 500 Nos. 10.30 Non-Convertible Redeemable Debentures of `1 million each on 22nd March 2011 with an option to re-purchase/re-issue some or all of its debentures in the secondary market/ otherwise at any time prior to the specified date of redemption of 22nd March 2021. b. 10.15 Non Convertible Debentures The Company issued 1000 Nos. 10.15 Non Convertible Redeemable Debentures of `1 million each on 22nd March 2012 to multiple parties with an option to re-purchase/re-issue some or all of its debentures in the secondary market or otherwise at any time prior to the specified date of redemption of 22nd March 2017. The Company had redeemed debentures amounting to `60 million during the FY 2012-13 as per the terms and conditions of the issue and the residual debentures for a value of `940 million are outstanding as of 31st March 2016. c. 9.80 Non Convertible Debentures The Company issued to First Rand Bank Limited 1250 Nos. 9.80 Non Convertible Redeemable Debentures of `1 million each on 11th July 2012 with an option to re-purchase/re-issue some or all of its debentures in the secondary market or otherwise after expiry of a term of 3 years from the date of issue with the specified date of redemption being 11th July 2017. During the year the Company has redeemed the entire debentures on 10th July 2015. d. 10.20 Non Convertible Debentures The Company issued to Kotak Mahindra Bank Limited 1150 Nos. and to NPS Trust A/c LIC 850 Nos.10.20 Non Convertible Redeemable Debentures of `1 million each on 22nd August 2014 with an option to re-purchase/re- issue some or all of its debentures in the secondary market or otherwise at any time prior to the specified date of redemption of 22nd Aug 2028. The Debentures stated above in points ab d are secured by way of pari passu first charge on the Fixed Assets of the Company existing and future along with Banks and Financial Institutions such pari passu first charge ensuring at least a cover of 1.25 times the value of the outstanding principal amount of the loan. e. HDFC Bank Limited i The Company availed a Rupee Term Loan of `1300 million from HDFC Bank Limited which is repayable in twenty quarterly instalments commencing from September 2012 with interest payable being linked to HDFC Bank’s Base rate. During the year four installments of `65 million each were repaid. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the Company ensuring atleast a cover of 1.25 times the value of the outstanding principal amount of the loan. ii During the year the Company was sanctioned an additional Rupee Term Loan of `3500 million from HDFC out of which `2000 million has been availed on 9th March 2016. This loan is repayable in 22 half yearly installments with a moratorium period of 4 years from the date of the first disbursement commencing from 9th September 2020 with interest payable being linked to HDFC Bank’s Base rate. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the Company ensuring atleast a cover of 1.25 times the value of the outstanding principal amount of the loan. f. Axis Bank Limited During the year the Company availed an additional loan amount of `1700 million from the Bank with the total quantum availed aggregating to `2700 million against the sanctioned amount of `3000 million which is repayable in 40 quarterly installments with a moratorium of 4 years from the date of 1st disbursement

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 174 175 commencing from 15th December 2018 with interest payable being linked to Axis Bank’s Base rate. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the Company ensuring atleast a cover of 1.25 times the value of the outstanding principal amount of the loan. g. Bank of India During the year the Company availed an additional loan amount of `1840 million from the Bank with the total quantum availed aggregating to `3000 million against the sanctioned amount of `3000 million. This loan is repayable in 40 quarterly installments with a moratorium of 4 years from the date of 1st disbursement commencing from 30th September 2018 with interest payable being linked to Bank’s of India’s Base rate. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the company ensuring atleast a cover of 1.25 times the value of the outstanding principal amount of the loan. h. HSBC The Company has availed a Rupee Term Loan of `1000 million from HSBC Limited which is repayable in 16 semi annual installments commencing from 2nd March 2017 with interest payable being linked to HSBC’s Base rate. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the company ensuring atleast a cover of 1.25 times the value of the outstanding principal amount of the loan. i. International Finance Corporation External Commercial Borrowings The Company was sanctioned a sum of US 35 million by the International Finance Corporation Washington by way of External Commercial Borrowings ECB. The Company had availed the full loan amount of US 35 million as of 31st March 2012. The ECB loan is secured by way of pari passu first ranking charge on the fixed assets owned by the Company such pari passu charge ensuring atleast a cover of 1.25 times the value of the outstanding principal amount of the loan. During the year the Company prepaid the entire principal amount outstanding on the loan on 11th September 2015. The Company was granted an additional ECB of US 30 million in the year 2012-13. This ECB is also secured by way of pari passu first ranking charge on the fixed assets of the company ensuring at least a cover of 1.25 times the value of the outstanding principal amount of the loan. The loan is repayable in 14 semi-annual installments starting from 15th September 2015. During the year two installments of US 2142000 each were paid on 14th September 2015 and 15th March 2016. The Company entered into a Currency cum Interest Rate SwapCCIRS with HDFC Bank Limited covering LIBOR and foreign currency fluctuation risk. The tenure of this derivative contract matches with the tenure of the loan outstanding as of 31st March 2016. j. HSBC External Commercial Borrowings The company has drawn a loan of US 25 million from HSBC in the year 2012-13. The Company entered into a Currency Cum Interest Rate Swap CCIRS with HSBC Bank Limited in Indian Rupee for interest rate and foreign currency fluctuation risk. The ECB loan is secured by way of pari passu first ranking charge on the fixed assets of the company. The loan is repayable in 22 quarterly installments starting from July 2014. During the year four installments of US0.5 million each were repaid on 4th April 2015 4th July 2015 4th October 2015 and 4th January 2016. k. HSBC Buyer’s Line of credit The Company has availed a buyer’s line of credit of US 10.78 million US 10.68 million from HSBC for the import of medical equipments. The loan is secured by first pari passu ranking charge on entire existing and future movable fixed asset of the company ensuring atleast a cover of 1.25 times the value of the outstanding principal amount of the loan. l. IDFC Bank Limited During the year the Company availed an additional loan amount of `250 million from the Bank with the total quantum availed aggregating to `500 million against the sanctioned amount of `1500 million. This amount is repayable in 44 quarterly installments commencing from 15th October 2016 and interest payable being linked to IDFC Bank’s Base rate. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the company ensuring atleast a cover of 1.25 times the value of the outstanding principal amount of the loan. m. IDFC Infra Debt Fund Limited During the year the Company availed a loan amount of `1000 million from IDFC Infra Debt Fund which is repayable in 3 annual installments of 20 at the end of the 14th year December 2029 40 at the end of the 15th year December 2030 and balance 40 at the end of the 16th year December 2031 from the date of first disbursement with Interest payable being 9.60 on outstanding amount of loan. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the company ensuring atleast a cover of 1.25 times the value of the outstanding principal amount of the loan. n. ICICI Bank Limited During the year the Company has availed a Rupee Term Loan of `1100 million from ICICI Bank Limited against the sanctioned amount of `3500 million which is repayable in 60 quarterly installments with a moratorium of 3years from the date of 1st disbursement commencing from 30th June 2019 with interest rate being linked to ICICI Bank’s Base rate. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the Company. o. Bank of Tokyo – Mitsubishi UFJ External Commercial Borrowings Bank of Tokyo has granted an unsecured loan of US 20 million on 11th September 2013. The Company entered into a Currency Cum Interest Rate Swap CCIRS with HSBC covering LIBOR and foreign currency fluctuation risk. The loan is repayable in 3 annual instalments starting from the end of the 5th year from the date of advance.

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 176 177 5 Deferred Tax Liabilities Additional net deferred tax liability of `749.66 million `730.88 million for the period has been recognized in the Statement of Profit and Loss. ` in million Particulars Deferred Tax Liability as at 31.03.2016 Current year charge /credit Deferred Tax Liability as at 31.03.2015 Deferred Tax Liability on account of Depreciation 699.06 285.14 984.19 Deferred Tax Liability on account of Deferred Revenue Expenditure Also refer note 39 of Notes forming part of accounts 48.07 1.09 49.16 Deferred Tax Liability on account of 35 AD 4022.00 1035.89 2986.11 Total 4769.13 749.66 4019.46 6. Other Long Term Liabilities ` in million Particulars 31.03.2016 31.03.2015 Other Deposits 2.56 1.47 Total 2.56 1.47 7. Short Term Borrowings ` in million Particulars 31.03.2016 31.03.2015 Secured i Loans repayable on demand from banks Canara Bank - 73.72 State Bank of Travancore - 7.15 Unsecured i Loans repayable on demand from banks HDFC Bank Limited 1250.00 - HSBC - 372.77 ii Deposits Fixed Deposits 120.12 104.17 iii Loans from Subsidiaries 160.00 - 1530.12 557.81 Note: The Cash Credit availed from Banks is secured by way of Stock-in-Trade less unpaid Creditors and Receivables. 9. Other Current Liabilities ` in million Particulars 31.03.2016 31.03.2015 a Current maturities of long-term debt 1895.81 1644.56 b Interest accrued but not due on borrowings 260.76 160.05 c Unpaid dividends 49.33 28.41 d Unpaid matured deposits and interest accrued thereon 17.03 16.57 e Other payables Sundry Creditors Others 417.04 153.72 Retention Money on Capital Contracts 0.18 0.27 Inpatient Deposits 105.45 238.54 Rent Deposits 26.33 25.80 Other Deposits 8.17 14.91 Tax Deducted at Source 119.36 146.72 Outstanding Expenses 847.66 467.20 Total 3747.12 2896.75 During the year the amount transferred to the Investors Education and Protection Fund of the Central Government as per the provisions of Section 205 A and 205 C of the Companies Act 1956 is `2.40 million `2.34 million as unpaid dividend. 10. Short Term Provisions ` in million Particulars 31.03.2016 31.03.2015 a Provision for employee benefits Bonus 425.18 198.89 Gratuity Earned Leave 106.55 141.72 Total 531.73 340.61 b Others For Dividend - Equity Shares - 799.97 For Dividend Distribution Tax - Equity Shares - 163.79 Total - 963.76 Total 531.73 1304.37 8. Details of Trade payables are based on the information available with the Company regarding the status of Suppliers as defined under the Micro Small and Medium Enterprises Development Act 2006. The amount due to Micro Small and Medium Enterprises for the financial year ended 31st March 2016 is `254.70 million `210.92 million. No interest in terms of Section 16 of the Micro Small and Medium Enterprises Development Act 2006 or otherwise has either been paid or payable or accrued and remaining unpaid as at 31st March 2016.

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 178 179 11. Tangible Assets 12. Intangible Assets ` in million Fixed Assets Gross Block Accumulated Depreciation Net Block Balance as at April 1 2015 Additions Deletions Balance as at March 31 2016 Balance as at April 1 2015 Depreciation charge for the year On disposals Balance as at March 31 2016 Balance as at March 31 2016 Balance as at April 1 2015 Tangible Assets Land 2557.53 436.57 - 2994.10 - - - - 2994.10 2557.53 Buildings 7466.14 2565.01 0.15 10031.00 730.73 204.27 - 935.00 9096.00 6735.41 Leasehold Improvements 3048.63 670.29 976.15 2742.77 297.35 40.99 - 338.34 2404.43 2751.28 Plant and Equipment Medical Equipment Surgical Instruments 10578.12 1173.53 19.55 11732.10 3263.19 529.33 6.75 3785.77 7946.33 7314.93 Air Conditioning Plant Air Conditioners 1899.74 845.91 15.41 2730.24 851.63 379.24 7.69 1233.18 1507.06 1048.11 Furniture and Fixtures 2662.64 770.90 47.04 3386.50 986.91 299.73 19.95 1266.69 2119.81 1675.73 Vehicles 499.62 69.02 14.60 554.04 193.18 61.54 9.37 245.35 308.69 306.44 Office equipment 1036.08 210.90 3.88 1243.10 685.95 175.11 3.02 858.04 385.06 350.13 Others Electrical Installations Generators 1640.97 217.83 6.10 1852.70 443.24 160.48 3.50 600.22 1252.48 1197.73 Fire fighting Equipment 131.06 8.20 - 139.26 11.08 1.63 - 12.71 126.55 119.98 Boilers 3.50 - - 3.50 1.19 - - 1.19 2.31 2.31 Kitchen Equipment 56.82 13.88 - 70.70 11.78 1.01 - 12.79 57.91 45.04 Refrigerators 46.57 9.60 0.70 55.47 12.59 2.83 0.30 15.12 40.35 33.98 Wind Electric Generator 26.85 - - 26.85 26.85 - - 26.85 . . Total 31654.27 6991.64 1083.58 37562.33 7515.67 1856.16 50.58 9321.25 28241.08 24138.60 Previous Year 26334.07 6492.36 1172.16 31654.27 6574.95 1517.71 576.99 7515.67 24138.60 19759.12 ` in million Fixed Assets Gross Block Accumulated Depreciation Net Block Balance as at April 1 2015 Additions Deletions Balance as at March 31 2016 Balance as at April 1 2015 Amortization for the year Deletions Balance as at March 31 2016 Balance as at March 31 2016 Balance as at April 1 2015 Computer Software 357.28 36.96 - 394.24 223.18 77.83 - 301.01 93.24 134.10 Goodwill 6.30 1023.35 - 1029.65 3.55 44.16 - 47.71 981.93 2.75 Total 363.58 1060.31 - 1423.89 226.73 121.99 - 348.72 1075.17 136.85 Previous Year 295.05 122.55 54.02 363.58 167.17 59.56 . 226.73 136.85 127.88 13 Capital Work–in-Progress of `5790.99 million `5121.59 million comprises amount spent on assets under construction and directly related pre-operative expenses. The amount of interest included in capital work in progress is `857.38 million `667.24 million. Includes interest on borrowings capitalised for the year ended 31st March 2016 of `694.93 million `620.00 million. 14. Non Current Investments ` in million Particulars 31.03.2016 31.03.2015 Trade Investments Refer Table A below a Investment in Equity instruments 6707.77 5357.77 b Investments in Preference Shares 1087.90 130.40 Total A 7795.67 5488.17 Other Investments Refer B below a Investment in Equity instruments 464.71 462.20 b Investment in Preference Shares 232.00 22.00 c Investments in Debentures or Bonds 35.00 10.00 d Investments in Government or Trust securities 0.17 0.17 Total B 731.88 494.37 Grand Total A + B 8527.55 5982.54 Less : Provision for diminution in the value of Investments 112.30 - Advance for Investment 9.24 6.05 Total 8424.49 5988.59 ` in million Particulars 31.03.2016 31.03.2015 Aggregate amount of quoted investments 428.72 403.72 Market Value `1056.89 million 2014-15: `1134.06 million Aggregate amount of unquoted investments 7986.53 5578.82 Advance for Investments 9.24 6.05 Total 8424.49 5988.59

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 180 181 A Details of Trade Investments Name of the Body Corporate Subsidiary / Associate / JV / Controlled Entity / Others Face Value No. of Shares / Units as at 31.03.2016 No. of Shares / Units as at 31.03.2015 Quoted / Unquoted Partly Paid / Fully paid Amount as at 31.3.2016 ` inmillion Amount as at 31.3.2015 ` inmillion Whether stated at Cost Yes/No 1 2 3 4 5 6 7 8 9 10 Investment in Equity Instruments Apollo Home Healthcare I Limited Formerly known as Unique Home Healthcare Limited Subsidiary 10 29823012 29823012 Unquoted Fully Paid 297.40 297.40 Yes Apollo Home Healthcare Limited Subsidiary 10 7187500 - Unquoted Fully Paid 100.00 - Yes AB Medical Centres Limited Subsidiary 1000 16800 16800 Unquoted Fully Paid 21.80 21.80 Yes Samudra Health Care Enterprises Limited Subsidiary 10 12500000 12500000 Unquoted Fully Paid 250.60 250.60 Yes Imperial Hospitals Research Centre Limited Subsidiary 10 26950496 26950496 Unquoted Fully Paid 1272.62 1272.62 Yes Apollo Hospitals UK Limited Subsidiary 1£ 5000 5000 Unquoted Fully Paid 0.39 0.39 Yes Apollo Health Lifestyle Limited Subsidiary 10 63278029 41969726 Unquoted Fully Paid 1911.76 1272.52 Yes Apollo Nellore Hospital Limited Subsidiary 10 1109842 1109842 Unquoted Fully Paid 53.96 53.96 Yes Alliance Medicorp India Limited Subsidiary 10 - 6783000 Unquoted Fully Paid - 67.83 Yes Alliance Dental Care Limited Subsidiary 100 - 10364763 Unquoted Fully Paid - 103.65 Yes Sapien Biosciences Pvt Limited Subsidiary 10 10000 10000 Unquoted Fully Paid 0.10 0.40 Yes Apollo Hospitals International Limited Joint Venture 10 22840266 17840629 Unquoted Fully Paid 405.42 355.42 Yes Apollo Gleneagles Hospitals Limited Joint Venture 10 54675697 54675697 Unquoted Fully Paid 393.12 393.12 Yes Apollo Gleneagles PET CT Private Limited Joint Venture 10 8500000 8500000 Unquoted Fully Paid 85.00 85.00 Yes Western Hospital Corporation Pvt Limited Subsidiary 10 18000000 18000000 Unquoted Fully Paid 153.66 153.66 Yes Apollo Lavasa Health Corporation Limited Subsidiary 10 652393 479701 Unquoted Fully Paid 312.20 150.00 Yes Indraprastha Medical Corporation Limited Associate 10 20190740 20190740 Quoted Fully Paid 393.72 393.72 Yes Stemcyte India Therapautics Private Limited Associate 1 240196 240196 Unquoted Fully Paid 80.00 80.00 Yes Apollo Rajshree Hospitals Private Limited Subsidiary 10 11274901 11351574 Unquoted Fully Paid 343.85 346.45 Yes Kurnool Hospitals Enterprise Limited Others 10 157500 157500 Unquoted Fully Paid 1.73 1.73 Yes ApoKos Rehab Private Limited Joint Venture 10 5750000 5750000 Unquoted Fully Paid 57.50 57.50 Yes Assam Hospitals Limited Subsidiary 10 4299233 - Unquoted Fully Paid 572.44 - Yes Apollo Health Care Technology Solutions Ltd Subsidiary 10 50000 - Unquoted Fully Paid 0.50 - Yes Investments in Preference Shares Apollo Hospitals International Limited Joint Venture 100 1104000 1104000 Unquoted Fully Paid 110.40 110.40 Yes Sapien Biosciences Pvt Limited Subsidiary 10 2000000 2000000 Unquoted Fully Paid 20.00 20.00 Yes Apollo Health Care Technology Solutions Limited Subsidiary 100 9575000 - Unquoted Fully Paid 957.50 - Yes Total 7795.67 5488.17 B Details of Other Investments Name of the Body Corporate Subsidiary / Associate / JV / Controlled Entity / Others Face Value No. of Shares / Units as at 31.03.2016 No. of Shares / Units as at 31.03.2015 Quoted / Unquoted Partly Paid / Fully paid Amount as at 31.3.2016 ` in million Amount as at 31.3.2015 ` in million Whether stated at Cost Yes/No 1 2 3 4 5 6 7 8 9 10 Investment in Equity Instruments Apollo Munich Health Insurance Company Limited Joint Venture 10 35709000 35709000 Unquoted Fully Paid 357.09 357.09 Yes Family Health Plan TPA Limited Associate 10 490000 490000 Unquoted Fully Paid 4.90 4.90 Yes Future Parking Private Limited Joint Venture 10 2401000 2401000 Unquoted Fully Paid 24.01 24.01 Yes Health Super Hiway Private Limited Others 10 200 200 Unquoted Fully Paid 0.002 0.002 Yes AMG Healthcare Destination Pvt Ltd Others 10 1232500 1232500 Unquoted Fully Paid 12.33 12.33 Yes Clover Energy Pvt Ltd Others 10 1929250 1659250 Unquoted Fully Paid 16.59 16.59 Yes Leap Green Energy Limited Others 10 - - Unquoted Fully Paid 1.43 - Yes Indo Wind Power Pvt Ltd Others 10 10650 35500 Unquoted Fully Paid 0.15 0.51 Yes Tirunelveli Vayu Energy Generation Pvt Ltd Others 1000 36 36 Unquoted Fully Paid 13.61 13.61 Yes Cureus .Inc Stanford - US Others 935000 935000 Unquoted Fully Paid 27.43 27.43 Yes Total Health Subsidiary 10 500000 500000 Unquoted Fully Paid 5.00 5.00 Yes Iris Ecopower Venture Pvt Ltd Others 10 70000 70000 Unquoted Fully Paid 0.70 0.70 Yes Apollo Dialysis Pvt Ltd Others 10 - 5100 Unquoted Fully Paid - 0.05 Yes Apollo Hospitals Singapore Pte Ltd Subsidiary 1 30001 - Unquoted Fully Paid 1.47 - Yes Investments in Preference Shares Health Super Hiway Private Limited Others 54.10 406514 406514 Unquoted Fully Paid 22.00 22.00 Yes Future Parking Pvt Ltd Redeemable Preference shares Joint Venture 100 2100000 - Unquoted Fully Paid 210.00 - Yes Investments in Debentures or Bonds Optionally Redeemable Convertible Debentures ECL Finance Others 1000.00 10000 10000 Quoted Fully Paid 10.00 10.00 Yes Apollo Home Healthcare Limited Subsidiary 10 2500000 - Quoted Fully Paid 25.00 - Yes Investments in Government or Trust securities National Savings Certificate Others - - Unquoted Fully Paid 0.17 0.17 Yes Total 731.88 494.37 Note: National Savings Certificates shown under investments are pledged with the Chief Rationing Officer Government of Andhra Pradesh.

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 182 183 15. Long Term Loans and Advances ` in million Particulars 31.03.2016 31.03.2015 a. Capital Advances Unsecured considered good 926.23 644.03 b. Security Deposits Unsecured considered good 1795.59 1482.68 c. Loans and advances to Related Parties Unsecured considered good 645.80 870.15 d. Other Loans and Advances MAT Credit Entitlement 2897.46 1995.45 Other Advances 379.16 432.63 Advance Income Tax 379.86 3656.48 365.42 2793.50 Interest Receivable - 60.27 Total 7024.10 5850.63 16. Current Investments ` in million Particulars 31.03.2016 31.03.2015 a Investments in Equity Instruments 67.94 67.94 b Investments in Debentures 10.00 10.00 c Investments in Mutual funds 595.27 1063.68 Total 673.21 1141.62 ` in million Particulars 31.03.2016 31.03.2015 Aggregate amount of quoted investments 505.27 1063.68 Market Value `635.75 million 2014-15: `1158.43 million Aggregate amount of unquoted investments 167.94 77.94 Total 673.21 1141.62 Details of Current Investment Name of the Body Corporate Subsidiary / Associate / JV/ Controlled Entity / Others Face value No. of Shares/ Units as at 31.03.2016 No. of Shares/ Units as at 31.03.2015 Quoted / Unquoted Partly Paid / Fully paid Amount as at 31.03.2016 ` in million Amount as at 31.03.2015 ` in million Basis of Valuation 1 2 3 4 5 6 9 Investments in Equity Instruments British American Hospitals Enterprises Limited Others 100MUR 464333 464333 Unquoted Fully Paid 67.94 67.94 Cost Investments in Debentures IFCI Venture Capital Funds Limited Others 1000000 10 10 Quoted Fully paid 10 .00 10.00 Cost Investments in Mutual Funds ICICI Prudential Short Term Regular Plan Growth Option Others 10.00 2139907 2139907 Quoted Fully paid 50.00 50.00 Cost Canara Robeco Short Term Fund - Regular Growth Others 10.00 192148 192148 Quoted Fully paid 2.50 2.50 Cost Reliance Short Term Fund - Growth Plan ST- GP Others 10.00 4681714 4681714 Quoted Fully paid 100.00 100.00 Cost Canara Robeco Short Term Fund - Regular Growth Others 10.00 188206 188206 Quoted Fully paid 2.50 2.50 Cost Reliance Short Term Fund - Growth Plan Others 10.00 6903598 6903598 Quoted Fully paid 150.00 150.00 Cost DWS Short Maturity Fund - Regular Plan - Growth Others 10.00 4785788 4785788 Quoted Fully paid 100.00 100.00 Cost ICICI Prudential Short Term -Regular Plan - Growth Plan Others 10.00 1375946 1375946 Quoted Fully paid 32.77 32.77 Cost Canara Robeco short Term Fund - Regular Growth Others 10.00 182151 182151 Quoted Fully paid 2.50 2.50 Cost Canara Robeco Short term Fund - Regular Growth Others 10.00 183284 183284 Quoted Fully paid 2.50 2.50 Cost HDFC Debt Fund Others 10.00 2000000 2000000 Quoted Fully paid 20.00 20.00 Cost SBI Magnum Insta Cash Fund Others 10.00 - 17546 Quoted Fully paid - 29.39 Cost Reliance Liquid Fund Others 1000.00 - 338742 Quoted Fully Paid - 517.85 Cost HDFC Liquid Fund Others 10.00 - 2321138 Quoted Fully Paid - 23.67 Cost Canara Robeco Mutual Fund Others 10.00 1400477 1400477 Quoted Fully Paid 30.00 30.00 Cost Canara Robeco Mutual Fund Others 10.00 217974 - Quoted Fully Paid 2.50 - Cost DHFL Pramerica Ultra Short Term Fund Others 10.00 5000000 - Unquoted Fully Paid 50.00 - Cost DHFL Pramerica Banking PSU Debt Fund Daily dividend reinvestments Others 10.00 3000000 - Unquoted Fully Paid 30.00 - Cost SBI Ultra Short Term Debt Fund - Regular Plan Weekly Dividend Others 10.00 2000000 - Unquoted Fully Paid 20.00 - Cost Total 673.21 1141.62

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 184 185 17. Inventories ` in million Particulars 31.03.2016 31.03.2015 Inventories a. Medicines Valued at Cost 3485.74 2725.25 b. Stores and spares Valued at Cost 155.65 175.34 c. Lab Materials Valued at Cost 6.38 7.32 d. Surgical Instruments Valued at Cost 407.32 286.84 e. Other Consumables Valued at Cost 166.44 130.29 Total 4221.53 3325.04 18. Trade Receivables ` in million Particulars 31.03.2016 31.03.2015 Trade receivables outstanding for a period less than six months from the date they are due for payment Unsecured considered good 5023.48 4641.84 5023.48 4641.84 Trade receivables outstanding for a period exceeding six months from the date they are due for payment Unsecured considered good 1127.61 853.61 1127.61 853.61 Total 6151.09 5495.45 19. Cash and Cash Equivalents ` in million Particulars 31.03.2016 31.03.2015 a. Balances with banks Current Accounts 2091.89 1856.14 Fixed Deposit Accounts 113.70 316.70 Unpaid Dividend Accounts 49.33 28.41 Margin Money Deposits Account 0.10 24.28 Guarantees 158.52 154.36 2413.54 2379.89 b. Cash on hand 144.02 112.39 Total 2557.56 2492.28 i. Accrued patient collections constitute `542.51 million `590.24 million of trade receivables. ii. Confirmations of balances from Debtors 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 group. iii. Sundry Debtors represent the debt outstanding on sale of pharmaceutical products hospital services and project consultancy fees and is considered good. The group holds no other securities other than the personal security of the debtors. The Company’s Fixed Deposit receipts amounting to `158.52 million `154.36 million are under lien with the bankers for obtaining Bank Guarantees and Letters of credit. 20. Short Term Loans and Advances ` in million Particulars 31.03.2016 31.03.2015 a. Advance to Suppliers 1130.40 431.06 b. Other Advances 2483.37 3669.55 c. Loans and advances to employees 110.73 98.54 Total 3724.50 4199.15 21. Other Current Assets ` in million Particulars 31.03.2016 31.03.2015 a. Prepaid Expenses 158.86 153.45 b. Rent Receivables 8.55 2.76 c. Interest Receivables 316.77 139.76 d. Franchise Fees Receivable 16.35 13.82 Total 500.53 309.79 22. Revenue from Operations ` in million Particulars 31.03.2016 31.03.2015 a. Revenue from Healthcare services 30853.76 28202.45 b. Revenue from Pharmacy 23236.95 17725.49 Total 54090.71 45927.94 23. Other Income ` in million Particulars 31.03.2016 31.03.2015 a Interest Income 175.93 100.82 b Dividend Income From Current Investment 8.94 26.96 From Long Term Investment 36.34 37.10 c Net gain/loss on sale of investments Long term investment 467.72 103.72 d Profit on divestiture of out patient diabetics clinic business to Apollo Sugar Clinics Limited a stepdown subsidiary of the Company - 184.08 Total 688.93 452.68

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 186 187 Particulars As at 31st March 2016 As at 31st March 2015 Gratuity Earned Leave Gratuity Earned Leave Assumptions Discount Rate 8.00 8.00 8.00 8.00 Rate of Increase in Salaries 6.00 8.00 6.00 8.00 Mortality pre- retirement Indian Assured Lives Mortality 2006-08 Ultimate Disability Nil Nil Nil Nil Attrition 23.00 23.00 23.00 23.00 Estimated rate of return on plan assets 8.00 8.00 8.00 8.00 Retirement 58yrs 58yrs 58yrs 58yrs Investment details on plan assets 100 of the plan Assets are invested on debt instruments 24. Cost of Materials Consumed ` in million Particulars 31.03.2016 31.03.2015 Value ` Value ` Indigenous Materials 11036.72 99.34 10636.05 99.49 Imported Materials 73.62 0.66 54.73 0.51 Total Consumption of Materials 11110 .34 100.00 10690.78 100.00 Consumption relates to items used for healthcare services only 25. Employee Benefits Expense ` in million Particulars 31.03.2016 31.03.2015 a. Salaries and wages 6987.50 6104.39 b. Contribution to provident and other funds 507.43 432.21 c. Employee State Insurance 126.52 104.04 d. Staff welfare expenses 425.73 357.79 e. Staff Education Training 7.40 12.26 f. Bonus 400.57 198.89 Total 8455.15 7209.58 a. As per the requirements of Accounting Standard 15 ‘Employee Benefits’ Revised 2005 as notified under the Companies Accounting Standards Rules 2006 contribution to gratuity is determined using the projected unit credit method with actuarial valuation being carried out at each Balance Sheet date. Only the additional provision as required is charged to the Statement of Profit and Loss for the relevant year– `166.54 million `167.07million. Also refer Note 1I of Notes Forming part of Accounts. Particulars As at 31st March 2016 As at 31st March 2015 Gratuity Earned Leave Total Gratuity Earned Leave Total Present Value of Obligation as at the beginning of the year 410.02 178.47 588.49 336.08 163.57 499.65 Interest Cost 31.24 11.35 42.59 25.55 11.16 36.71 Current Service Cost 47.07 23.26 70.33 36.46 16.35 52.81 Benefit Paid 39.13 73.09 112.22 33.39 48.06 81.45 Actuarial gain / Loss on obligation 76.42 99.77 176.19 45.32 35.45 80.77 Present V alue of Obligation end of the year 525.62 239.76 765.38 410.02 178.47 588.49 Defined benefit obligation liability as at the balance sheet date is wholly funded by the company Change in plan assets Fair Value of Plan Assets beginning of the period 336.93 110.17 447.10 256.68 58.49 315.17 Expected return on plan assets 31.16 13.08 44.24 23.74 6.75 30.49 Contributions 103.09 98.30 201.39 105.08 105.08 210.16 Benefits paid 39.13 73.09 112.22 33.39 48.06 81.45 Actuarial gain / loss 10.05 68.28 78.33 15.18 12.09 27.27 Fair Value of Plan Assets as on 31st March 2016 442.10 216.74 658.84 336.93 110.17 447.10 Reconciliation of present value of the obligation and the fair value of the plan assets Fair value of the defined benefit 525.62 239.76 765.38 410.02 178.47 588.49 Fair value of plan assets at the end of the year 442.10 216.74 658.84 336.93 110.17 226.76 Liability / assets 83.52 23.02 106.54 73.09 68.30 141.39 Unrecognised past service cost - - - - - - Liability / assets recognised in the balance sheet 83.52 23.02 106.54 73.09 68.30 141.39 Gratuity Leave Encashment cost for the period Service Cost 47.07 23.26 70.33 36.46 16.35 52.81 Interest Cost 31.24 11.35 42.59 25.55 11.16 36.71 Expected return on plan assets 31.16 13.08 44.24 23.74 6.75 30.49 Actuarial gain / loss 66.37 31.49 97.86 60.50 47.53 108.04

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 188 189 26. Finance Costs ` in million Particulars 31.03.2016 31.03.2015 Interest expense 1187.56 705.85 Other borrowing costs Bank Charges 147.97 126.70 Brokerage Commission 0.26 0.33 Total 1335.79 832.88 Particulars As at 31st March 2016 As at 31st March 2015 Gratuity Earned Leave Total Gratuity Earned Leave Total Past Service Cost - - - - - - Net gratuity and Leave Encashment cost 113.52 53.02 166.54 98.77 68.30 167.07 Investment details of plan assets 100 of the plan assets are invested in debt instruments Actual return on plan assets 41.21 81.36 122.57 8.56 5.34 3.22 i. Expected return on plan assets is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligations. The Gratuity scheme is invested in the Gratuity Pay plan offered by ICICI. 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. 27. Other Expenses ` in million Particulars 31.03.2016 31.03.2015 Power and fuel 850.41 725.10 House Keeping Expenses 383.82 163.38 Water Charges 108.64 89.34 Rent 1927.20 1487.16 Repairs to Buildings 147.37 173.79 Repairs to Machinery 504.37 430.05 Repairs to Vehicles 37.43 47.81 Particulars 31.03.2016 31.03.2015 Office Maintenance Others 482.81 389.31 Insurance 85.66 53.04 Rates and Taxes excluding taxes on income 92.77 88.37 Printing Stationery 269.31 255.35 Postage Telegram 27.21 20.92 Director Sitting Fees 2.95 3.64 Advertisement Publicity Marketing 1095.88 892.17 Pharmacy Loyalty Discount 651.50 494.73 Travelling Conveyance 408.35 363.24 Subscriptions 13.14 6.32 Security Charges 160.15 118.98 Legal Professional Fees 430.86 319.53 Continuing Medical Education Hospitality Expenses 55.84 32.94 Hiring Charges 73.32 66.28 Seminar Expenses 3.52 1.76 Telephone Expenses 159.21 127.05 Books Periodicals 9.37 10.99 Corporate Social Responsibility Expenses 86.44 77.71 Donations 11.43 25.36 Bad Debts Written off 200.18 215.42 Royalty paid 1.05 1.30 Outsourcing Expenses 1017.78 897.71 Miscellaneous expenses 94.01 81.29 Loss on Sale of Asset 33.86 27.68 Loss on sale of investment 0.01 - Net loss on foreign currency transactions and translation 27.08 10.31 Total 9452.93 7698.03 During the year the Foreign Exchange loss the difference between the spot rates on the date of the transactions and the actual rates at which the transactions are settled is `27.08 million 2014-15: Foreign Exchange Loss is `10.31 million.

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 190 191 28. Contingent Liabilities ` in million Particulars 31.03.2016 31.03.2015 Contingent liabilities and commitments to the extent not provided for i Contingent Liabilities a Claims against the company not acknowledged as debt 1154.00 592.27 b Guarantees Bank Guarantees 128.59 262.27 Corporate Guarantees / Letters of comfort 2871.00 1505.00 c Other money for which the company is contingently liable Customs Duty 99.70 99.70 Income Tax 328.54 395.26 Service Tax 29.63 18.99 EPCG 3792.60 2412.60 Value Addded Tax 24.88 2.27 Total 8428.94 5288.36 ii Commitments a Estimated amount of contracts remaining to be executed on capital account and not provided for 13460.00 10450.00 Total 13460.00 10450.00 Total 21888.94 15738.36 a. Payment to auditors as statutory auditors ` in million Particulars 31.03.2016 31.03.2015 Audit Fees 4.53 4.05 Tax Audit Fees 0.97 0.84 Certification Fees 0.58 0.84 Reimbursement of Expenses 0.40 0.37 Total 6.08 6.10 Inclusive of Service Tax b. Travelling and Conveyance includes directors travelling amounts to `36.79 million `50.39 million 29. Utilisation of Amounts from Securities Issued During the year Nil `2000 million 30. Earnings Per Equity Share Particulars 31.03.2016 31.03.2015 Profit before extraordinary items attributable to equity shareholders ` in million A1 3694.39 3465.95 Weighted Averaged Equity Shares outstanding during the year Nos - B1 139125159 139125159 Basic Earnings Per Share before extra-ordinary item - A1/B1 ` 26.55 24.91 Diluted Earnings before extraordinary items attributable to equity shareholders ` in million A2 3694.39 3465.95 Weighted Averaged Equity Shares outstanding for Diluted Earnings Per Share. Nos - E1 139125159 139125159 Diluted Earnings Per Share before extra-ordinary item - A2/E1 ` 26.55 24.91 Profit after extraordinary items attributable to equity shareholders ` in million A 3694.39 3465.95 Weighted Averaged Equity Shares outstanding during the year Nos - B 139125159 139125159 Basic Earnings Per Share after extra-ordinary item - A/B ` 26.55 24.91 Diluted Earnings after extraordinary items attributable to equity shareholders ` in million A3 3694.39 3465.95 Weighted Averaged Equity Shares outstanding for Diluted Earnings Per Share. Nos - E 139125159 139125159 Diluted Earnings Per Share after extra-ordinary item - A3/E ` 26.55 24.91 31. Expenditure in Foreign Currency ` in million Particulars 31.03.2016 31.03.2015 a. CIF Value of Imports Machinery and Equipment 984.89 1099.68 Stores and Spares 63.78 50.66 Other Consumables 9.84 4.08 b. Expenditure Travelling Expenses 82.20 72.32 Professional Charges 8.94 10.12 Business Promotion 1.14 - c. Dividends Amount remitted during the year in foreign currency on account of dividends excluding the payment of dividends directly to the share-holders Non-resident external bank account. 4.44 4.92 Non-Residents shareholders to whom remittance was made Nos. 174 193 Shares held by non-resident share-holders on which div idend was paid. 0.74 0.86

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 192 193 32. Earnings in Foreign Currency ` in million Particulars 31.03.2016 31.03.2015 Hospital Fees 955.25 900.70 Project Consultancy Services 17.34 26.32 Pharmacy Sales 1.31 0.60 Pharmacy Sales are sales made within India to inpatients who have paid in foreign currency 33. Related Party Disclosures A. List of Related Parties where control exists and other related parties with whom the Company had transactions and their relationships: ` in million SL.No Name of related Parties Nature of relationship 1 Apollo Home Healthcare India Limited Subsidiary Companies 2 AB Medical Centres Limited 3 Apollo Health and Life Style Limited 4 Apollo Nellore Hospitals Limited 5 Imperial Hospitals and Research Centre Limited 6 Samudra Health Care Enteprises Limited 7 Western Hospitals Corporation P Limited 8 Apollo Hospitals UK Limited 9 Sapien Biosciences Private Limited 10 Assam Hospitals Limited 11 Apollo Lavasa Health Corporation Limited 12 Apollo Rajshree Hospitals Private Limited 13 Total Health 14 Apollo Home Healthcare Limited 15 Apollo Healthcare Technology Solutions Limited 16 Apollo Hospitals Singapore Pte Limited 17 Alliance Dental Care Limited Stepdown Subsidiaries 18 Akeso Healthcare private limted 19 Apollo Dialysis Private Limited 20 Apollo Sugar Clinics Limited 21 Apollo Cosmetic Surgical Center Private Limited SL.No Name of related Parties Nature of relationship 22 Apollo Gleneagles Hospital Limited Joint Ventures 23 Apollo Hospitals International Limited 24 Apollo Munich Health Insurance Company Limited 25 Apollo Gleneagles PET-CT Private Limited 26 Future Parking Private Limited 27 Apokos Rehab Private Limited 28 Family Health Plan TPA Limited Associates 29 Indraprastha Medical Corporation Limited 30 Stemcyte India Therapautics Private Limited 31 Smt. Suneeta Reddy Key Management Personnel 32 Shri Krishnan Akhileswaran 33 Shri S M Krishnan 34 Dr.Prathap C Reddy Relatives of Key Management Personnel Relative of Smt Suneeta Reddy 35 Smt. Preetha Reddy 36 Smt. Sangita Reddy 37 Smt. Shobana Kamineni 38 Apollo Mumbai Hospital Limited Enterprises over which Key Management Personnel and their relatives are able to exercise significant influence 39 Apollo Sindoori Hotels Limited 40 Kurnool Hospital Enterprises Limited 41 Lifetime Wellness Rx International Limited 42 Apollo Hospitals Educational Trust 43 Medihauxe International Private Limited 44 Palepu Pharma Private Limited 45 Vardhman Pharma Distributors Private Limited 46 Focus Medisales Private Limited 47 Srinivasa Medisales Private Limited 48 Meher Distributors Private Limited 49 Lucky Pharmaceuticals Private Limited 50 Neelkanth Drugs Private Limited 51 Dhruvi Pharma Private Limited 52 Medvarsity Online Limited 53 AMG Healthcare Destination Private Limited 54 Faber Sindoori Management Services Private Limited 55 Apollo Hospitals Educational and Research Foundation 56 Keimed Private Limited 57 P. Obul Reddy Sons

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 194 195 Related Party Transaction ` in million S.No Name of Related Parties Nature of Transaction 31.03.2016 31.03.2015 1 Apollo Home Healthcare I Limited Investment in Equity 297.40 297.40 Transaction during the year 5.80 13.55 Receivable as at year end 7.45 - Payable as at year end - 2.56 Cumulative Deposits Outstanding 11.75 11.67 Interest payable - 0.91 2 AB Medical Centers Limited Investment in Equity 21.80 21.80 Payables as at year end 28.45 23.25 Transactions during the year 6.79 7.20 3 Samudra Healthcare Enterprises Limited Investment in Equity 250.60 250.60 Receivables as at year end 67.37 74.06 Transaction during the year 69.25 70.84 Commission on turnover 1.88 1.87 4 Apollo Hospital UK Limited Investment in Equity 0.39 0.39 Transactions during the year 0.64 - Receivables as at year end 3.63 2.99 5 Apollo Health and Lifestyle Limited Investment in Equity 1911.76 1272.52 Transaction during the year 510.16 185.45 Payables as at year end - 75.52 Receivable as at year end 253.21 156.84 Loan given 645.80 829.00 Interest Income for the year 146.42 83.31 6 Apollo Home Healthcare Limited Investment in Equity 100.00 - Investment in Debenture 25.00 - Transaction during the year 51.57 - Receivable as at year end 6.21 - 7 Apollo Healthcare Technology Solutions Limited Investment in Equity 0.50 - Investment in Preference 957.50 - 8 Assam Hospitals Limited Investment in Equity 572.44 - 9 Imperial Hospital Research Centre Limited Investment in Equity 1272.62 1272.62 Transaction during the year 124.27 70.60 Interest Income for the year 0.97 2.85 Pharmacy Income 14.70 18.53 Receivable as at year end 374.03 407.41 10 Apollo Nellore Hospitals Limited Investment in Equity 53.96 53.96 Transaction during the year 8.01 7.42 Payable as at year end 10.94 4.83 S.No Name of Related Parties Nature of Transaction 31.03.2016 31.03.2015 11 Alliance MedicorpIndia Limited Investment in Equity - 67.83 Transations during the year 5.16 7.87 Payable as at year end - 0.37 12 Alliance Dental Care Limited Investment in Equity - 103.65 Receivables as at year end 0.60 2.56 Corporates Guarantees Executed - 475.00 Transations during the year 28.15 47.85 13 Apollo Rajshree Hospitals Private Limited Investment in Equity 343.85 346.45 Receivables as at year end 33.40 21.17 Transaction during the year 0.63 16.50 Interest Income for the year - 0.72 14 Apollo Sugar Clinics Limited Transations during the year 62.28 15.59 Payable as at year end 1.54 1.23 15 Apollo Hospitals International Limited Investment in Equity 405.42 355.42 Investment in Preference Shares 110.40 110.40 Receivable as at year end 45.35 52.95 Transactions during the year 0.88 11.65 16 Total Health Investment in Equity 5.00 5.00 Transactions during the year 8.34 - 17 Apollo Gleneagles Hospitals Limited Investment in Equity 393.12 393.12 Other Transaction during the year 152.18 61.42 Pharmacy Income 1046.87 61.62 Fees 135.05 115.78 Receivable as at year end 443.43 419.27 18 Apollo Gleneagles PET-CT Private Limited Investment in Equity 85.00 85.00 Payables as at year end 0.22 6.53 Rent Received 2.12 1.88 Deposits Refundable 20.54 20.84 Transaction during the year 6.65 4.07 19 Western Hospitals Corporation Private Limited Investment in Equity 153.66 153.66 Interest paid during the year 6.49 - Loan Received 160.00 0.91 Payable as at the year end 3.78 - 20 Apollo Munich Health Insurance Company Limited Investment in Equity 357.09 357.09 Transaction during the year 18.65 77.21 Claim Payment 95.56 157.72 Receivables as at year end 0.89 -

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 196 197 S.No Name of Related Parties Nature of Transaction 31.03.2016 31.03.2015 21 Apollo Lavasa Health Corporation Limited Investment in Equity 312.20 150.00 Transactions during the year 0.02 - Receivable as at year end 4.35 4.56 22 Family Health Plan TPA Limited Investment in Equity 4.90 4.90 Transaction during the year 255.26 67.85 Receivables as at year end 38.77 29.98 23 Indraprastha Medical Corporation Limited Investment in Equity 393.72 393.72 Receivables as at year end 401.65 400.39 Dividend Received 36.34 36.43 Pharmacy Income 240.02 150.46 24 Stemcyte India Therapautics Private Limited Investment in Equity 80.00 80.00 25 Dr.Prathap C Reddy Remuneration Paid 136.19 152.82 26 Smt.Preetha Reddy Remuneration Paid 48.20 49.25 27 Smt.Suneeta Reddy Remuneration Paid 48.20 50.70 28 Smt.Sangita Reddy Remuneration Paid 46.99 49.25 29 Smt.Shobana Kamineni Remuneration Paid 49.66 49.97 30 Apollo Sindoori Hotels Limited Transaction during the year 494.82 392.31 Receivables as at year end 46.33 - Payables as at year end 11.11 23.50 31 Faber Sindoori Management Services Private Limited Transaction during the year 567.98 474.83 Payables as at year end 28.82 98.60 32 Lifetime Wellness Rx International Limited Transaction during the year 14.87 2.19 Receivable as at year end 13.68 6.58 33 P Obul Reddy Sons Receivable as at year end 12.62 15.83 Transactions during the year 52.06 54.20 34 Keimed Private Limited Payables as at year end 92.53 61.57 Transactions during the year 5146.98 4822.80 Advance Given - 3.12 35 Medvarsity Online Limited Transactions during the year 2.51 0.65 Rent received 2.10 2.10 Receivable as at year end 3.30 2.60 36 Apollo Mumbai Hospital Limited Receivables as at year end - 2.69 Transactions during the year - 2.80 37 Kurnool Hospitals Enterprise Limited Investment in Equity 1.73 1.73 Transactions during the year 3.84 - Receivables as at year end 5.90 - 38 AMG Healthcare Destination Private Limited Investment in Equity 12.33 12.33 S.No Name of Related Parties Nature of Transaction 31.03.2016 31.03.2015 39 Future Parking Private Limited Investment in Equity 24.01 24.01 Investment in Preference Shares 210.00 - Receivables as at year end 162.23 - Lease Deposit 79.47 - Transaction during the year 163.86 0.02 40 Apollo Hospitals Educational Trust Transactions during the year 30.13 0.63 Receivables as at year end 288.25 337.85 41 Apollo Hospitals Educational and Research Foundation Transactions during the year 12.30 11.90 Receivables as at year end 155.17 149.93 42 Sapien Biosciences Private Limited Investment in Equity 0.10 0.40 Investment in Preferance 20.00 20.00 Loan Given 9.00 - Interest Received 0.74 - Receivable as at year end 0.58 - 43 Palepu Pharma Private Limited Payables as at year end 90.29 48.78 Purchases 3329.95 423.94 44 Medihauxe International Private Limited Payables as at year end 20.26 - Purchases 430.91 - 45 Vardhman Pharma Distributors Private Limited Payables as at year end 36.81 27.74 Purchases 731.03 121.13 46 Focus Medisales Private Limited Payables as at year end 21.90 15.41 Purchases 460.49 59.68 47 Srinivasa Medisales Private limited Payables as at year end 27.76 21.26 Purchases 588.15 86.84 48 Meher Distributors Private Limited Payables as at year end 15.44 11.77 Purchases 402.22 32.10 49 Lucky Pharmaceuticals Private Limited Payables as at year end 44.17 41.35 Purchases 931.61 27.19 50 Neelkanth Drugs Private Limited Payables as at year end 74.32 47.18 Purchases 1110.79 163.49 51 Dhruvi Pharma Private Limited Payables as at year end 16.48 18.90 Purchases 330.47 8.40 52 Apokos Rehab Private Limited Investment in Equity 57.50 57.50 Pharmacy Income 0.12 - Receivable as at year end 0.64 - Transactions during the year 0.02 -

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 198 199 34. Leases In respect of Non- cancellable Operating Leases Lease payments recognized in the Statement of Profit and Loss is `1927.20 million `1487.16 million ` in million Minimum Lease Payments 31.03.2016 31.03.2015 Not later than one year 1256.82 542.63 Later than one year and not more than five years 8114.32 3634.78 Later than Five years 13862.69 15882.25 Lease agreements are renewable for further period or periods on terms and conditions mutually agreed between the lessor and AHEL. Variation / Escalation clauses in lease rentals are made as per mutually agreed terms and conditions by the lessor and AHEL. 35. a The jointly Controlled Entities considered in the Consolidated Financial Statements are: Name of the Company Country of Incorporation Proportion of ownership Interest Proportion of ownership Interest 31.03.2016 31.03.2015 Apollo Hospitals International Limited India 50.00 50.00 Apollo Gleneagles Hospital Limited India 50.00 50.00 Apollo Gleneagles PET CT Private Limited India 50.00 50.00 Apollo Munich Health Insurance Company Limited India 10.00 10.23 Future Parking Private Limited India 49.00 49.00 Apollo Lavasa Health Corporation Limited India 37.50 Apokos Rehab Private Limited India 50.00 50.00 Inclusive of 2327 shares held by Apollo Home Healthcare India Limited a 100 subsidiary of Apollo Hospitals Enterprise Limited. During the year Apollo Lavasa Health Corporation Limited has become the Subsidiary of Apollo Hospitals Enterprise Limited. b The groups interests in the joint ventures accounted for using proportionate consolidation in the Consolidated Financial Statements are: ` in million Particulars As at 31st March 2016 As at 31st March 2015 I ASSETS Non-current assets a Fixed assets i Tangible assets 2139.92 2202.73 ii Intangible assets 16.70 19.22 iii Capital work-in-progress 116.11 187.51 b Non-current investments 705.06 516.79 c Deferred tax assets net 88.37 108.73 d Long-term loans and advances 253.11 319.49 Current Assets a Current investments 20.00 4.11 b Inventories 61.71 49.24 c Trade receivables 475.01 347.07 d Cash and cash equivalents 454.61 525.24 e Short-term loans and advances 98.80 28.32 f Other current assets 74.53 102.86 II LIABILITIES Non-current liabilities a Long-term borrowings 523.39 601.23 b Deferred tax liabilities Net 155.08 146.47 c Other Long term liabilities - 49.28 d Long-term provisions 6.82 6.50 Current liabilities a Short-term borrowings 91.68 156.99 b Trade payables 400.79 548.17 c Other current liabilities 1147.69 852.38 d Short-term provisions 28.39 2.31 III INCOME a Revenue from operations 3507.21 2991.49 b Other income 17.56 13.96 IV EXPENSES a Material consumption purchase of stock in trade and changes in inventories 767.03 682.32 b Employee benefit expenses 619.18 540.25 c Finance costs 74.71 108.27 d Depreciation and amortization expense 222.66 201.96 e Other expenses 1531.83 1267.12 Profit before tax 309.36 205.53 a Provision for Taxation Including Deferred Tax Liability 111.89 81.67 b Add: Deferred tax asset 1.93 6.15 Net Profit 199.40 130.01 V OTHER MATTERS a Contingent Liabilities 243.50 321.27 b Capital Commitments 62.83 71.83

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 200 201 As per our Report annexed For and on behalf of the Board of Directors For S. Viswanathan LLP Krishnan Akhileswaran Dr. Prathap C Reddy Chartered Accountants Chief Financial Officer Executive Chairman Firm Registration No. 004770S/S200025 V C Krishnan S M Krishnan Preetha Reddy Partner Vice President - Finance Executive Vice Chairperson Membership No. 022167 Company Secretary 17 Bishop Wallers Avenue West Suneeta Reddy Mylapore Chennai - 600 004 Managing Director Place : Chennai Date : 25th May 2016 36 During the year 2002-03 on a review of fixed assets certain selected medical equipments were identified and impaired. For the current year on a review as required by Accounting Standard 28 ‘ Impairment of Assets’ the management is of the opinion that no impairment loss or reversal of impairment loss is required as conditions of impairment do not exist. 37 Pursuant to section 129 of the Act and Rule 5 of companies Accounts Rules 2014 the financial statements for twenty one of the company subsidiaries including fellow subsidiaries six joint ventures and three associates are furnished Form AOC 1. 38 On review of the operations of setting up the Hospital in Noida the Company has re-assigned the lease agreement between itself and the lessor to its associate Indraprastha Medical Corporation Limited by extinguishing its rights and privileges in the original lease deed dated 27th October 2001. 39 Unrealised amounts on project development and pre-operative project expenses incurred at Bilaspur Hospital amounting to `56.62 million are included in advances and deposits account. The above expenses incurred on project will be amortised over the balance lease period of 4 years. The balance yet to be amortised as on 31.03.2016 is `12.58 million `15.73 million. 40 Figures of the current year and previous year have been shown in millions. 41 Figures in brackets relate to the figures for the previous year. 42 Previous year figures have been regrouped and reclassified wherever necessary to confirm with current year classification. 31.03.2016 31.03.2015 A CASH FLOW FROM OPERATING ACTIVITIES Net profit before tax and extraordinary items 4521.27 4673.29 Adjustment for: Depreciation Amortization 1981.29 1580.41 Profit on sale of Investment 467.72 103.72 Loss on sale of asset 33.86 27.68 Interest paid 1335.79 832.88 Foreign Exchange gain / loss 27.08 10.31 Interest received 175.93 100.82 Dividend received 45.28 64.06 Bad debts written off 200.17 3001.56 215.42 2398.10 Provision for diminution in value of Investments 112.30 - Operating profit before working capital changes 7552.83 7071.39 Adjustment for: Trade or other receivables 855.83 1026.36 Inventories 896.49 675.31 Trade payables 811.79 713.77 Others 1050.08 109.55 1246.07 2233.97 Cash generated from operations 7632.38 4837.42 Foreign Exchange gain / loss 27.08 10.31 Taxes paid 1326.44 936.48 Cash flow before extraordinary items 6278.36 3890.63 Net cash from operating activities 6278.36 3890.63 B CASH FLOW FROM INVESTING ACTIVITIES Purchase of fixed assets 7725.37 6847.28 Purchase of investments 2819.39 960.87 Investment in Subsidiaries Joint Ventures Associates - 211.28 Sale of investments 1207.33 1045.93 Interest received 175.93 100.82 Dividend received 45.28 64.06 Cash flow before extraordinary item 9116.22 6808.62 Net cash used in Investing activities 9116.22 6808.62 for the year ended 31st March 2016 ` in million Cash Flow Statement

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 202 203 31.03.2016 31.03.2015 C CASH FLOW FROM FINANCING ACTIVITIES Proceeds from long term borrowings 7630.00 5410.00 Proceeds from short term borrowings 1410.00 379.92 Repayment of finance/lease liabilities 3186.21 835.78 Interest paid 1335.79 832.88 Dividend paid 1615.35 799.97 Net cash from financing activities 2902.65 3321.29 Net increase in cash and cash equivalents A+B+C 65.29 403.30 Cash and cash equivalents Opening balance 2492.28 2088.98 Cash and cash equivalents Closing balance 2557.56 2492.28 Component of Cash and Cash equivalents Cash on Hand 144.02 112.39 Balance with Banks 1 Available with the company for day to day operations 2364.21 2351.48 2 Amount available in unclaimed dividend and unclaimed deposit payment accounts 49.33 28.41 Notes: 1. Previous year figures have been regrouped wherever necessary. ` in million As per our Report annexed For and on behalf of the Board of Directors For S. Viswanathan LLP Krishnan Akhileswaran Dr. Prathap C Reddy Chartered Accountants Chief Financial Officer Executive Chairman Firm Registration No. 004770S/S200025 V C Krishnan S M Krishnan Preetha Reddy Partner Vice President - Finance Executive Vice Chairperson Membership No. 022167 Company Secretary 17 Bishop Wallers Avenue West Suneeta Reddy Mylapore Chennai - 600 004 Managing Director Place : Chennai Date : 25th May 2016 TEN years Standalone Financial Performance at a Glance Financial Highlights for the year ended 31st Mar 2016 31st Mar 15 31st Mar 14 31st Mar 13 31st Mar 12 31st Mar 11 31st Mar 10 31st Mar 09 31st Mar 08 31st Mar 07 Balance Sheet Sources Share Capital 695.63 695.63 695.63 695.63 672.33 623.55 617.85 602.35 586.85 516.38 Preferential issue of equity share warrants - - - - 387.05 685.07 - - - - Reserves and Surplus 33605.68 30915.08 28951.61 26580.34 22463.28 16413.02 14799.93 13106.20 11793.51 7016.90 Networth 34301.31 31610.71 29647.24 27275.97 23522.66 17721.64 15417.78 13708.55 12380.36 7533.28 Loans including long term liabilities and provisions 19489.50 14609.49 10079.98 8825.42 6921.47 7689.40 6899.86 4494.82 3056.35 1441.80 Deferred Tax Liability 4769.13 4019.46 3288.58 2394.11 1700.85 1071.06 751.45 626.56 589.70 570.64 Applications Gross Block 44777.21 37139.45 31438.71 26427.74 21196.95 17968.91 15289.23 11779.31 8300.10 6435.85 Accumulated Depreciation 9669.97 7742.41 6742.13 5785.31 4827.51 3987.44 3314.74 2779.92 2348.32 1982.88 Net Block 35107.24 29397.04 24696.58 20642.43 16369.44 13984.47 11974.49 8999.39 5951.78 4452.97 Investments 9097.70 7130.21 6900.27 8960.35 7641.18 6241.12 4897.88 6292.80 7060.10 3229.60 Long Term Loans and Advances 7024.10 5850.63 4876.08 3227.58 5103.33 4521.44 1859.70 1426.06 1077.59 591.40 Current Assets Loans Advances Inventory 4221.53 3325.04 2649.74 2053.88 1827.09 1505.21 1343.43 1088.42 790.89 551.95 Debtors 6151.09 5495.45 4684.51 4266.09 3537.70 2696.43 2055.34 1607.35 1261.59 978.92 Cash Bank Balances 2557.56 2492.28 2088.98 2554.66 1869.55 1414.40 2855.58 646.16 1045.57 644.03 Loans Advances 4225.03 4508.94 2669.73 1838.90 1234.94 1193.53 1260.19 797.36 664.53 483.65 ` in million

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 204 205 ` in million TEN years Standalone Financial Performance at a Glance Financial Highlights for the year ended 31st Mar 2016 31st Mar 15 31st Mar 14 31st Mar 13 31st Mar 12 31st Mar 11 31st Mar 10 31st Mar 09 31st Mar 08 31st Mar 07 A 17155.21 15821.71 12092.96 10713.53 8469.28 6809.37 7514.54 4139.29 3762.58 2658.55 Current Liabilities Provisions Creditors 4012.78 3201.00 2487.23 1763.42 1709.36 1794.01 1781.07 750.05 725.74 557.64 Other Liabilities 3747.12 3454.56 1746.51 2130.62 2955.67 2593.45 839.95 776.96 677.20 696.94 Provisions 531.73 1304.37 1316.35 1154.35 773.22 684.04 556.50 500.60 422.70 132.22 B 8291.63 7959.93 5550.09 5048.39 5438.25 5071.50 3177.52 2027.61 1825.64 1386.80 Net Current Assets A - B 8863.58 7861.78 6542.87 5665.14 3031.03 1738.07 4337.021 2111.68 1936.94 1271.75 Miscellaneous Expenditure - - - - - 0.12 0.45 3.07 7.80 Key Indicators O P M 14.78 15.60 16.38 17.46 17.41 16.93 16.90 16.38 17.54 16.71 N P M 6.74 7.47 8.51 9.23 8.17 7.72 8.18 7.98 8.85 11.12 Collection Growth 18.11 19.41 15.98 18.42 20.36 26.61 25.56 28.72 27.85 25.10 OP Growth 11.91 13.67 8.85 18.76 24.60 30.16 29.72 20.27 14.15 21.82 Earnings Per Share ` Basic 26.55 24.91 23.77 22.43 17.72 14.66 12.31 19.80 18.61 19.63 Capital Employed 57216.70 48421.10 40442.90 36954.47 29693.24 25131.74 22317.52 18202.93 15433.65 8967.28 Book value per Share 246.55 227.24 220.00 196.00 172.05 136.61 249.54 226.30 208.48 144.56 ROI PBIT/AV.CE 11.09 12.39 13.10 14.42 14.63 13.83 12.83 11.33 13.52 14.95 RONW 11.21 11.32 11.62 12.17 11.20 10.97 10.43 9.09 10.22 9.84 Employee Cost to Collections 15.43 15.54 15.80 15.66 15.15 15.18 15.40 14.93 14.65 14.21 Debt/Equity Ratio 0.67 0.52 0.35 0.35 0.29 0.43 0.44 0.33 0.25 0.19 Profit Loss Account 31st March 2016 31st March 2015 31st March 2014 31st March 2013 31st March 2012 31st March 2011 31st March 2010 31st March 2009 31st March 2008 31st March 2007 Income 54779.64 46380.62 38840.00 33488.18 28279.20 23495.65 18587.45 14803.50 11500.66 8995.15 Operative Expenses 28776.45 52.53 24239.55 52.26 20018.93 51.54 17198.23 51.36 14554.76 61.95 12275.73 52.25 9944.64 53.50 8096.51 54.69 6207.33 53.97 4901.83 54.49 Salaries and Wages 8455.15 15.43 7209.58 15.54 6102.23 15.71 5243.99 15.66 4285.07 18.24 3572.00 15.20 2863.80 15.41 2210.51 14.93 1684.82 14.65 1278.70 14.21 Administrative Expenses 9452.93 17.26 7698.03 16.60 6356.58 16.37 5200.16 15.53 4516.91 19.22 3697.38 15.74 2633.37 14.17 2065.74 13.95 1582.37 13.76 1297.76 14.43 Operating Profit 8095.11 14.78 7233.46 15.60 6363.14 16.38 5845.80 17.46 4922.46 20.95 3950.54 16.81 3145.63 16.92 2424.94 16.38 2017.41 17.54 1503.48 16.71 Financial Expenses 1335.79 2.44 832.88 1.80 870.68 2.24 726.25 2.17 636.03 2.71 551.45 2.35 377.47 2.03 223.16 1.51 198.98 1.73 164.24 1.83 Depreciation 1981.29 3.62 1580.41 3.41 1290.78 3.32 1085.20 3.24 911.28 3.88 705.85 3.00 543.06 2.92 439.20 2.97 367.46 3.19 308.01 3.42 Exceptional / Extraordinary Items 256.78 0.47 146.88 0.32 - - 45.45 - - - - - - - 40.19 0.27 - - 325.07 3.61 PBT 4521.25 8.25 4673.29 10.08 4201.68 10.82 4079.80 12.18 3375.15 14.36 2693.24 11.46 2221.65 11.95 1722.39 11.63 1450.98 12.62 1356.30 15.08 Tax - Current 77.20 0.14 476.46 1.03 0.00 295.45 0.88 435.46 1.85 556.45 2.37 577.12 3.10 479.79 3.24 381.12 3.31 288.16 3.20 Previous - - - - - - - - - - - - - 13.27 0.12 33.48 0.37 Deferred 749.66 1.37 730.88 1.58 894.48 2.30 693.26 2.07 629.79 2.68 319.61 1.36 124.89 0.67 36.86 0.25 19.06 0.17 20.44 0.23 Fringe Benefit Tax - - - 25.04 0.17 20.07 0.17 13.52 0.15 PAT 3694.39 6.74 3465.95 7.47 3307.20 8.51 3091.09 9.23 2309.90 9.83 1817.18 7.73 1519.63 8.18 1180.69 7.97 1017.45 8.85 1000.70 11.12 Dividend 1003.79 799.97 799.97 765.19 537.87 467.67 432.49 401.60 352.11 258.18 TEN years Standalone Financial Performance at a Glance ` in million

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Standalone Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 206 207 Subsidiaries of Apollo Health and Lifestyle Limited Reporting period for the subsidiary concerned if different from the holding company’s reporting period Reporting currency and Exchange rate as on the last date of the relevant Financial year in the case of foreign subsidiaries - Exchange rate of GBP `95.44 Exchange rate of Singapore SGD `48.89. Notes The following information shall be furnished at the end of the statement: 1 Names of subsidiaries which are yet to commence operations - Apollo Hospital UK Limited Apollo Healthcare Technology Solutions Limited Apollo Hospitals Singapore Pte Limited 2 Names of subsidiaries which have been liquidated or sold during the year a As per the scheme of arrangement approved by Hon’ble High Court of Madras the dialysis division of Alliance Medicorp I Ltd was demerged into Apollo Dialysis Pvt Ltd and the remaining undertaking was amalgamated with Alliance Dental Care Limited. Alliance Medicorp I Limited shall stand dissolved without being wound up. b The Company has transferred its entire equity stake in Alliance Dental Care Limited and Apollo Dialysis Pvt Ltd to its subsidiary Apollo Health Life Style Limited c Apollo Lavasa Health Corporation Limited an erstwhile Joint Venture has now became a subsidiary of the Company due to its equity holding increasing to 51 Sl. No Name of the subsidiary Reporting Currency Share Capital Reserves Surplus Total Assets Total Liabilities Excluding Capital and Reserves Investments Turnover Profit before taxation Provision for Taxation Profit after Taxation Proposed Dividend of share holding 1 2 3 4 5 6 7 8 9 10 11 12 13 1 Apollo Home Healthcare I Limited INR 298.23 40.85 348.20 9.12 291.21 12.53 0.11 - 0.11 - 100.00 2 AB Medical Centers Limited INR 16.80 36.42 54.46 1.24 - 6.79 6.34 1.68 4.66 - 100.00 3 Apollo Health and Lifestyle Limited INR 637.31 633.62 5286.47 4015.54 275.90 2000.13 68.78 11.92 56.86 - 99.29 4 Samudra Healthcare Enterprise Limited INR 125.00 107.12 368.07 135.95 - 266.40 1.08 5.57 4.49 - 100.00 5 Western Hospitals Corporation Pvt Limited INR 180.00 7.07 176.63 3.70 - 14.44 13.97 4.37 9.60 - 100.00 6 Total Health INR 5.00 23.61 29.09 0.48 - 8.84 2.30 - 2.30 - 100.00 7 Apollo Healthcare Technology Solutions Limited INR 958.00 7.82 950.36 0.18 - - 7.67 - 7.67 - 100.00 8 Apollo Hospital UK Limited INR 0.48 5.68 0.48 5.68 - - 0.66 - 0.66 - 100.00 GBP 0.005 0.06 0.01 0.06 - - 0.01 - 0.01 - 100.00 9 Apollo Hospitals Singapore Pte Limited INR 1.47 1.06 0.70 0.29 - - 1.06 - 1.06 - 100.00 SGD 0.03 0.02 0.01 - - - 0.02 - 0.02 - - 10 Imperial Hospital Research Centre Limited INR 299.50 231.10 2455.69 1925.09 0.50 1839.90 130.90 69.20 61.70 - 90.00 11 Apollo Nellore Hospital Limited INR 13.97 8.33 14.23 8.59 - 8.01 7.93 1.75 6.18 - 79.44 12 Apollo Rajshree Hospitals Pvt Limited INR 196.87 62.89 480.78 346.80 - 201.70 78.42 5.45 83.87 - 57.27 13 Sapien Bio-Sciences Pvt Limited INR 20.14 29.98 5.19 15.02 - 5.95 10.38 0.01 10.37 - 70.00 14 Apollo Lavasa Health Corporation Limited INR 12.79 584.48 782.54 185.27 - 7.20 39.45 - 39.45 - 51.00 15 Apollo Home Health Care Limited INR 88.88 95.53 39.10 45.75 - 59.88 114.31 0.67 113.64 - 80.87 16 Assam Hospitals Limited INR 84.30 749.14 1042.78 209.34 3.31 869.55 37.16 19.16 18.00 - 51.00 17 Akeso Healthcare Private Limited INR 13.70 10.54 40.59 16.35 - 45.86 0.32 0.30 0.62 - 100.00 18 Apollo Cosmetic Surgical Center Private Limited INR 40.98 20.81 21.70 1.53 5.28 12.24 10.11 - 10.11 - 100.00 19 Alliance Dental Care Limited INR 37.82 82.29 449.21 329.10 - 382.34 60.59 2.09 62.68 - 70.00 20 Apollo Dialysis Private Limited INR 37.04 12.62 46.60 22.18 - 49.13 6.30 - 6.30 - 70.00 21 Apollo Sugar Clinics Limited INR 36.68 483.16 565.89 46.05 268.61 190.46 171.01 - 171.01 - 80.00 Statement containing salient features of the financial statements of Subsidiaries/ Associate Companies/Joint Ventures Pursuant to first proviso to sub-section 3 of section 129 read with rule 5 of the Companies Accounts Rules 2014 Part “A” Subsidiaries Form AOC-1 ` in million Part “B”: Associates and Joint Ventures Sl. No. Name of Associates/Joint Ventures Latest Audited Balance Sheet Date Number of shares Amount of Investment in Associates / Joint Venture ` in million Extent of Holding Description of how there is significant influence Reason why the associate/joint venture is not consolidated Networth attributable to Shareholding as per latest audited Balance Sheet ` in million Profit / Loss for the year ` in million i. Considered in Consolidation `in million ii. Not Considered ` in million Associates 1 Family Health Plan TPA Limited 31st Mar 2016 490000 4.90 49.00 Ref Note.1 - 160.62 68.87 33.75 2 Indraprastha Medical Corporation Limited 31st Mar 2016 20190740 393.72 22.03 Ref Note.1 - 447.51 282.34 62.20 - 3 Stemcyte India Therapautics Pvt Limited 31st Mar 2016 240196 80.00 24.50 Ref Note.1 - 8.94 12.72 3.12 - Joint Ventures 4 Apollo Gleneagles Hospitals Limited 31st Mar 2016 54675697 393.12 50.00 Ref Note.1 - 1006.53 324.20 162.10 - 5 Apollo Gleneagles PET-CT Pvt Limited 31st Mar 2016 8500000 85.00 50.00 Ref Note.1 - 57.27 14.18 7.09 - 6 Apollo Hospitals International Limited 31st Mar 2016 23944266 515.82 50.00 Ref Note.1 - 176.46 9.60 4.80 - 7 Future Parking Pvt Limited 31st Mar 2016 2401000 24.01 49.00 Ref Note.1 - 117.51 22.01 10.78 - 8 Apollo Munich Health Insurance Company Limited 31st Mar 2016 35709000 357.09 10.00 Ref Note.1 - 629.86 74.60 7.46 - 9 Apkos Rehab Pvt. Limited 31st Mar 2016 5750000 57.50 50.00 Ref Note.1 - 49.15 7.67 3.83 - Note: 1 There is a significant influence due to control over the board and of shareholding. 2 The above statement also indicates performance and financial position of each JV/Associate. 3 Names of Associates or Joint Ventures which are yet to commence operations - Nil. 4 Names of Associates or Joint Ventures which have been liquidated or sold during the year. Apollo Lavasa Health Corporation Limited an erstwhile Joint Venture has now became a subsidiary of the Company due to its equity holding increasing to 51 As per our Report annexed For and on behalf of the Board of Directors For S. Viswanathan LLP Krishnan Akhileswaran Dr. Prathap C Reddy Chartered Accountants Chief Financial Officer Executive Chairman Firm Registration No. 004770S/S200025 V C Krishnan S M Krishnan Preetha Reddy Partner Vice President - Finance Executive Vice Chairperson Membership No. 022167 Company Secretary 17 Bishop Wallers Avenue West Suneeta Reddy Mylapore Chennai - 600 004 Managing Director Place : Chennai Date : 25th May 2016 Statement Pursuant to Section129 3 of the Companies Act 2013 related to Associate Companies and Joint Ventures

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Consolidated Financials 209 Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 208 Independent Auditor’s Report to the Members of Apollo Hospitals Enterprise Limited Report on the Consolidated Financial Statements 1. We have audited the accompanying Consolidated financial statements of APOLLO HOSPITALS ENTERPRISE LIMITED ‘’the Company’’ and its subsidiaries The Holding Company and its subsidiaries together referred to as the “Group” its jointly controlled entities and associate companies which comprise the Consolidated Balance Sheet as at March 31 2016 the Consolidated Statement of Profit and Loss the Consolidated Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information. hereinafter referred to as “the consolidated financial statements” Management’s Responsibility for the Consolidated Financial Statements 2. The Holding Company’s Board of Directors is responsible for the preparation of these consolidated financial statements in terms of the requirements of the Companies Act 2013 hereinafter referred to as “The Act” that give a true and fair view of the consolidated financial position consolidated financial performance and consolidated cash flows of the Group including its Associates and Jointly Controlled entities in accordance with accounting principles generally accepted in India including the Accounting standards specified under Section 133 of the Act read with Rule 7 of the Companies Accounts Rules2014. The respective Board of Directors of the companies included in the Group and of its associates and jointly controlled entities are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities the selection and application of appropriate accounting policies making judgements and estimates that are reasonable and prudent and the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the consolidated financial and statements that give a true and fair view and are free from material misstatement whether due to fraud or error which have been used for the purpose of preparation of the consolidated financial statements by the Directors of the Holding Company as aforesaid. Auditors’ Responsibility 3. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. While conducting the audit we have taken into account the provisions of the Act the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. 4. We conducted our audit in accordance with the Standards on Auditing specified under Section 14310 of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. 5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgement including the assessment of the risks of material misstatement of the consolidated financial statements whether due to fraud or error. In making those risk assessments the auditor considers internal financial control relevant to the Holding Company’s preparation of the consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances . An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Holding Company’s Board of Directors as well as evaluating the overall presentation of the consolidated financial statements. 6. We believe that the audit evidence obtained by us and the audit evidence obtained by other auditors in terms of their reports referred to in the Other Matters paragraph 9 is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements. Opinion 7. In our opinion and to the best of our information and according to the explanations given to us the aforesaid consolidated financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the consolidated state of affairs of the Group its associates and jointly controlled entities as at 31st March 2016 and their consolidated profit and their consolidated cash flows for the year ended on that date. Emphasis of Matters 8. We draw attention to note 35 to the consolidated financial statements. Our opinion is not modified in respect of these matters. Other Matters 9. Financial statements of three subsidiaries Note 2A and one jointly controlled entity Note 2C which reflect total assets of ` 12277.79 million as at 31st March 2016 total revenue of `9271.9 million as 31st March 2016 and net cash flows amounting to `479.55 million for the year ended on that date have been audited by us. 10. We did not audit the financial statements of Thirteen subsidiaries Note 2A and five jointly controlled entities Note 2C whose financial statements reflect total assets of `13066 million as at 31st March 2016 total revenues of `6147 million and net cash flows amounting to `386 million for the year ended on that date as considered in the consolidated financial statements. The consolidated financial statements also include the Group’s share of net profit of `78 million for the year ended 31st March 2016 as considered in the consolidated financial statements in respect of three associates Note 2B whose financial statements have not been audited by us. These financial statements have been audited by other auditors whose reports have been furnished to us by the Management and our opinion on the consolidated financial statements in so far as it relates to the amounts and disclosures included in respect of these subsidiaries jointly controlled entities and associates aforesaid is based on the reports of the other auditors.

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 210 211 We did not audit the financial statements of one jointly controlled entity whose financial statements reflect total assets of `104.89 million as at 31st March 2016 total revenues of `2.36 millions and net cash flows amounting to `41.57 million for the year ended on that date as considered in the consolidated financial statements. The consolidated financial statements also include the Group’s share of loss of `3.12 million for the year ended 31st March 2016 as considered in the consolidated financial statements in respect of one associate whose financial statements have not been audited by us. These financial statements are unaudited and have been furnished to us by the Management In our opinion our report in terms of sub-sections 3 3i and 11 of Section 143 of the Act in so far as it relates to the aforesaid associate and joint venture cannot be given since the said financial statements are unaudited. In our opinion and according to the information and explanations given to us by the Management these financial statements are not material to the Group. Our report in terms of sub-sections 3 and 11 of Section 143 of the Act in so far as it relates to the aforesaid subsidiaries jointly controlled entities and associates incorporated inside India is based solely on the reports of the other auditors. In respect of subsidiaries incorporated outside India in our view the report in terms of sub section 3 of Sec 143 of the Act is not applicable. Report on Other Legal and Regulatory Requirements 11. As required by Section 1433 of the Act we report to the extent applicable that: a We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements. b In our opinion proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors. c The Consolidated Balance Sheet the Consolidated Statement of Profit and Loss and the Consolidated Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements. d In our opinion the aforesaid consolidated financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies Accounts Rules 2014. e On the basis of the written representations received from the directors of the Holding Company as on 31st March 2016 taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors of its subsidiary companies associate companies and jointly controlled companies incorporated in India none of the directors of the Group’s companies its associate companies and jointly controlled companies incorporated in India is disqualified as on 31st March 2016 from being appointed as a director in terms of Section 164 2 of the Act. f With respect the adequacy of internal financial controls over financial reporting of the company and the operating effectiveness of such controls refer to our separate report in Annexure ‘A”. 12. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies Audit and Auditor’s Rules 2014 in our opinion based on the corresponding report of the auditors of such company incorporated in India among which one associate and one joint venture is based on the management certified accounts and to the best of our information and according to the explanations given to us: i The consolidated financial statements disclose the impact of pending litigations on the consolidated financial position of the Group its associates and jointly controlled entities in accordance with the generally accepted accounting practice– Refer Note 29 to the consolidated financial statements. ii The Group its associates and jointly controlled entities did not have any material foreseeable losses on long-term contracts including derivative contracts it is based on the corresponding report of the auditors of such company incorporated in India. iii There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Holding Company and its subsidiary companies associate companies and jointly controlled companies incorporated in India. For S Viswanathan LLP 17 Bishop Wallers Avenue West Chartered Accountants Mylapore Chennai – 600 004 FRN: 004770S/S200025 V C Krishnan Place: Chennai Partner Date : 25th May 2016 Membership No: 022167

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 212 213 Annexure - A to the Auditors’ Report Report on the Internal Financial Controls under Clause i of Sub-section 3 of Section 143 of the Companies Act 2013 “the Act” We have audited the internal financial controls over financial reporting of Apollo Hospitals Enterprises Limited “the Holding Company” its Subsidiaries associate and Jointly Controlled entities collectively referred to as “the group” as of 31 March 2016 in conjunction with our audit of the consolidated financial statements of the Company for the year ended on that date. Management’s Responsibility for Internal Financial Controls The respective Board of Directors of the Holding Company and its Subsidiaries and jointly controlled entity and its Associate which are companies incorporated in India are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ‘ICAI’. These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company’s policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013. Auditors’ Responsibility Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting the “Guidance Note” and the Standards on Auditing issued by ICAI and deemed to be prescribed under section 14310 of the Companies Act 2013 to the extent applicable to an audit of internal financial controls both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error. We believe that the audit evidence we have obtainedand the audit evidence obtained by other auditors in terms of the report referred to in the other matter paragraph below is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting. Meaning of Internal Financial Controls over Financial Reporting A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that : 1 pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company 2 provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company 3 provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use or disposition of the company’s assets that could have a material effect on the financial statements. Inherent Limitations of Internal Financial Controls over Financial Reporting Because of the inherent limitations of internal financial controls over financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. Opinion In our opinion the Company has in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. Other matter Our aforesaid reports under section 1433i of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting insofar as it relates to the subsidiaries and joint ventures and associates which are incorporated in India is based on the corresponding report of the auditors of such company incorporated in India among which one associate and one joint venture is based on the management certified accounts. For S Viswanathan LLP Chartered Accountants FRN: 004770S/S200025 V C Krishnan Place: Chennai Partner Date : 25th May 2016 Membership No: 022167

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 214 215 Consolidated Balance Sheet As at 31st March 2016 As per our Report annexed For and on behalf of the Board of Directors For S. Viswanathan LLP Krishnan Akhileswaran Dr. Prathap C Reddy Chartered Accountants Chief Financial Officer Executive Chairman Firm Registration No. 004770S/S200025 V C Krishnan S M Krishnan Preetha Reddy Partner Vice President - Finance Executive Vice Chairperson Membership No. 022167 Company Secretary 17 Bishop Wallers Avenue West Suneeta Reddy Mylapore Chennai - 600 004 Managing Director Place : Chennai Date : 25th May 2016 Particulars Note 31.03.2016 31.03.2015 I. EQUITY AND LIABILITIES 1 Shareholders’ Funds a Share capital 4 695.63 695.63 b Reserves and surplus 5 33840.90 31006.31 2 Minority Interest 1303.21 730.14 Share application money pending allotment - 11.38 3 Non-current liabilities a Long-term borrowings 6 22956.37 17280.58 b Deferred tax liabilities Net 7 4977.22 4222.32 c Other Long term liabilities 8 12.83 50.33 d Long-term provisions 9 31.89 34.48 4 Current liabilities a Short-term borrowings 10 1820.02 857.37 b Trade payables 4636.38 3643.24 Add : Share of Joint Ventures 400.79 548.17 c Other current liabilities 11 5583.02 4399.09 d Short-term provisions 12 613.38 1315.38 TOTAL 76871.64 64794.42 II. ASSETS Non Current Assets 1 Goodwill on Consolidation 2120.22 1652.45 a Fixed assets i Tangible assets 13 34443.42 30328.15 ii Intangible assets 14 1683.17 460.58 iii Capital work-in-progress 15 5955.75 5326.40 b Non-current investments 16 1980.25 1650.79 c Deferred tax assets net 7 134.18 202.77 d Long-term loans and advances 17 7953.40 5784.51 2 Current assets a Current investments 18 717.21 1455.70 b Inventories 19 4432.79 3502.63 c Trade receivables 20 7019.95 6092.74 d Cash and cash equivalents 21 3975.68 3773.33 e Short-term loans and advances 22 5969.15 4199.94 f Other current assets 23 486.47 364.43 TOTAL 76871.64 64794.42 III CONSOLIDATED NOTES FORMING PART OF ACCOUNTS 1-41 `in million includes a portion of Long term borrowings of `2090.47 `1784.63 million payable within the next 12 months. Consolidated Statement of Profit and Loss for the year ended 31st March 2016 As per our Report annexed For and on behalf of the Board of Directors For S. Viswanathan LLP Krishnan Akhileswaran Dr. Prathap C Reddy Chartered Accountants Chief Financial Officer Executive Chairman Firm Registration No. 004770S/S200025 V C Krishnan S M Krishnan Preetha Reddy Partner Vice President - Finance Executive Vice Chairperson Membership No. 022167 Company Secretary 17 Bishop Wallers Avenue West Suneeta Reddy Mylapore Chennai - 600 004 Managing Director Place : Chennai Date : 25th May 2016 Particulars Note 31.03.2016 31.03.2015 I. REVENUE FROM OPERATIONS 24 60855.88 51784.53 II. OTHER INCOME 25 266.91 367.52 Total Revenue 61122.79 52152.05 III. EXPENSES a Cost of materials consumed during the year 12115.66 11580.89 b Purchase of Stock-in-Trade 18452.30 14041.45 c Changes in inventories of stock-in-trade 777.18 492.68 Add : Share of Joint Ventures 766.94 682.32 d Employee benefits expense 26 10242.25 8600.25 e Finance costs 27 1684.90 1178.54 f Depreciation and amortization expense 2532.79 2116.51 g Other expenses 28 12233.02 10025.59 Total Expenses 57250.69 47732.87 IV. PROFIT BEFORE EXCEPTIONAL AND EXTRAORDINARY ITEMS AND TAX 3872.10 4419.18 V. EXCEPTIONAL ITEMS 291.57 146.88 VI. PROFIT BEFORE EXTRAORDINARY ITEMS AND TAX 4163.68 4272.30 VII. EXTRAORDINARY ITEMS - 281.83 VIII PROFIT BEFORE TAX 4163.68 4554.13 IX TAX EXPENSE a Current Tax / MAT 1088.13 1005.67 b MAT Credit Entitlement 902.01 445.74 c Net Current Tax 186.12 559.92 d Deferred tax 824.45 772.05 e Add : Deferred tax Asset 7 8.39 31.96 X PROFIT LOSS FOR THE PERIOD XI + XIV 3161.50 3254.12 Less : Minority Interest 73.37 51.39 XI PROFIT AFTER MINORITY INTEREST 3234.87 3305.51 Add : Share in Associates 75.25 93.52 XII PROFIT AFTER SHARE IN ASSOCIATES 3310.12 3399.03 XIII EARNINGS PER EQUITY SHARE OF FACE VALUE OF `5 EACH Before Extraordinary Item 1 Basic in ` 23.79 22.41 2 Diluted in ` 23.79 22.41 After extraordinary item 1 Basic in ` 23.79 24.43 2 Diluted in ` 23.79 24.43 XIV CONSOLIDATED NOTES FORMING PART OF ACCOUNTS 1-41 `in million

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 216 217 Notes Forming Part of Accounts Accounting Policies Notes forming part of Consolidated Accounts of Apollo Hospitals Enterprise Limited its Subsidiaries Associates and Joint Ventures. 1. Basis of Accounting The financial statements are prepared under the historical cost convention under accrual method of accounting and as a going concern in accordance with the Generally Accepted Accounting Principles GAAP prevalent in India and the Mandatory Accounting Standards as notified under the Companies Accounting Standards Rules 2006 and according to the provisions of the Companies Act 2013. Apollo Hospital UK Limited The financial statements have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice United Kingdom Accounting Standards and applicable law. Suitable accounting policies are selected and applied consistently and judgments and estimates made are reasonable and prudent. The financial statements have been prepared on a going concern basis unless it is inappropriate to presume that the Company will continue in business. Apollo Munich Health Insurance Company Limited The financial statements have been prepared in accordance with generally accepted accounting principles and practices followed in India and conform to the statutory requirements of the Insurance Act 1938. The Insurance Regulatory and Development Authority Preparation of Financial Statements and Auditors Report of Insurance Companies Regulations 2002 orders and directions issued by IRDA in this regard. The Companies Act 2013 to the extent applicable and the accounting standards issued by the Institute of Chartered Accountants of India ICAI to the extent applicable. The financial statements have been prepared on historical cost convention and on accrual basis as a going concern. 2. Basis of Consolidation The Consolidated Financial Statements have been prepared in accordance with 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. A Investment in Subsidiaries 1. The Subsidiary Companies considered for the purpose of consolidation are: Name of the Subsidiary Country of Incorporation of holding as on 31st March 2016 of holding as on 31st March 2015 Apollo Home Healthcare India Limited India 100.00 100.00 Apollo Home Healthcare Limited India 80.87 Nil AB Medical Centres Limited India 100.00 100.00 Apollo Health and Lifestyle Limited India 99.29 100.00 Name of the Subsidiary Country of Incorporation of holding as on 31st March 2016 of holding as on 31st March 2015 Samudra Healthcare Enterprise Limited India 100.00 100.00 Imperial Hospital Research Centre Limited India 90.00 90.00 Apollo Hospital UK Limited United Kingdom 100.00 100.00 Apollo Hospitals Singapore Pte Ltd Singapore 100.00 Nil Apollo Nellore Hospitals Limited India 79.44 79.44 Apollo Rajshree Hospitals Private Limited India 57.27 57.66 Apollo Lavasa Health Corporation Limited India 51.00 Nil Alliance Medicorp India Limited India Nil 51.00 Western Hospitals Corporation Private Limited India 100.00 100.00 Sapien Biosciences Private Limited India 70.00 70.00 Total Health India 100.00 100.00 Apollo Health Care Technology Solutions Ltd India 100.00 Nil Assam Hospitals Limited India 51.00 Nil Apollo Cosmetic Surgical Centre Private Limited India Apollo Dialysis Private Limited India Nil Alliance Dental Care Limited India Nil Apollo Bangalore Cradle Limited India Nil Akeso Healthcare Private Limited India Apollo Sugar Clinics Limited India Nova Speciality Hospitals Private Limited India Nil Nil subsidiary of Apollo Health and Lifestyle Limited 2014-15 : 81.37 100 subsidiary of Apollo Health and Lifestyle Limited 2014-15 : 69.40. 70 subsidiary of Apollo Health and Lifestyle Limited 2014-15 : Nil. 100 subsidiary of Apollo Health and Lifestyle Limited 2014-15: 100 80 subsidiary of Apollo Health and Lifestyle Limited formerly known as Apollo Clinics Gujarat Limited 2014-15: 80. Nil subsidiary of Apollo Health and Lifestyle Limited 2014-15: 100. 2. Financial Statements of all the subsidiaries have been drawn upto 31st March 2016. 3. Minority Interest consists of the share in the net assets of the subsidiaries as on the date of the Balance Sheet.

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 218 219 B. Investment in Associates: 1. The Associate Companies considered in the Consolidated Financial Statements are: Name of the Associate Company Country of Incorporation Proportion of ownership interest as on 31st March 2016 Proportion of ownership interest as on 31st March 2015 Indraprastha Medical Corporation Limited India 22.03 22.03 Family Health Plan TPA Limited India 49.00 49.00 Stemcyte India Therapautics Private Limited India 24.50 24.50 2. The financial statements of all associates are drawn upto 31st March 2016. C. Investments in Joint Ventures: 1. The following are jointly controlled entities. Name of the Company Country of Incorporation Proportion of ownership interest as on 31st March 2016 Proportion of ownership interest as on 31st March 2015 Apollo Gleneagles Hospitals Limited India 50.00 50.00 Apollo Gleneagles PET – CT Private Limited India 50.00 50.00 Apollo Hospitals International Limited India 50.00 50.00 Future Parking Private Limited India 49.00 49.00 Apollo Munich Health Insurance Company Limited India 10.23 10.23 Apollo Lavasa Health Corporation Limited India - 37.50 Apokos Rehab Private Limited India 50.00 50.00 Apollo Hospitals Enterprise Limited directly holds 27 23 in Apollo Hospitals International Limited and a further 23 27 through its wholly owned subsidiary Apollo Home Healthcare India Limited. Apollo Lavasa Health Corporation Limited has been considered as a Subsidiary in 2015-16 as the investment in the Company is 51. The Company was a joint venture until 2014-15 based on the substance of the agreement between Apollo Lavasa Health Corporation Limited and Apollo Hospitals Enterprise Limited. 2. The Financial statements of all the Joint Ventures are drawn upto 31st March 2016. 3. The Group’s interests in the Joint Ventures accounted for using proportionate consolidation in the Consolidated Financial Statements are: `in million Particulars 31.03.2016 31.03.2015 I ASSETS Non-current assets a Fixed assets i Tangible assets 2139.92 2202.73 ii Intangible assets 16.70 19.22 iii Capital work-in-progress 116.11 187.51 b Non-current investments 705.06 516.79 c Deferred tax assets net 88.37 108.73 d Long-term loans and advances 253.11 319.49 Current Assets a Current investments 20.00 4.11 b Inventories 61.71 49.24 c Trade receivables 475.01 347.07 d Cash and cash equivalents 454.61 525.24 e Short-term loans and advances 98.80 28.32 f Other current assets 74.53 102.86 II LIABILITIES Non-current liabilities a Long-term borrowings 523.39 601.23 b Deferred tax liabilities Net 155.08 146.47 c Other Long term liabilities - 49.28 d Long-term provisions 6.82 6.50 Current liabilities a Short-term borrowings 91.68 156.99 b Trade payables 400.79 548.17 c Other current liabilities 1147.69 852.38 d Short-term provisions 28.39 2.31 III INCOME a Revenue from operations 3507.21 2991.49 b Other income 17.56 13.96 IV EXPENSES a Material consumption purchase of stock in trade and changes in inventories 767.03 682.32 b Employee benefits expense 619.18 540.25 c Finance costs 74.71 108.27 d Depreciation and amortization expense 222.66 201.96 e Other expenses 1531.83 1267.12 Profit before tax 309.36 205.53 a Provision for Taxation Including Deferred Tax Liability 111.89 81.67 b Add: Deferred tax asset 1.93 6.15 Net Profit 199.40 130.01 V OTHER MATTERS a Contingent Liabilities 243.50 321.27 b Capital Commitments 62.83 71.83

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 220 221 D. As far as possible the Consolidated Financial Statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented in the same manner as the Company’s separate financial statements. E. The effects arising out of variant accounting policies among the group Companies have not been calculated and dealt with in the Consolidated Financial Statements since it is impracticable to do so. Accordingly the variant accounting policies adopted by the Subsidiaries Associates and Joint Ventures have been disclosed in the financial statements. F. Pursuant to section 129 and Rule 5 of the Companies Accounts Rules 2014 the Company’s financial statements for twenty one of its subsidiaries including fellow subsidiaries six Joint Ventures and three Associates are furnished in Form AOC – 1. G. The foreign operations of the Company are considered as non – integral foreign operations. Hence the assets and liabilities have been translated at the exchange rate prevailing on the date of Balance Sheet Income and Expenditure has been translated at average exchange rates prevailing during the reporting period. Resultant currency exchange gain or loss is transferred to Foreign Currency Translation Reser ve. 3. Significant Accounting Policies A. Use of Estimates The preparation of financial statements are in conformity with generally accepted accounting principles and requires the management to make estimates and assumptions that affect the reported values of assets and 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 best knowledge of current events and actions actual results could differ from the estimates. B. Inventories 1. The inventories of all medicines medicare items traded and dealt with by the Company are valued at cost. In the absence of any further estimated costs of completion and estimated costs necessary to make the sale the Net Realisable Value is not applicable. 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 wherever applicable applying the FIFO method. 2. Stock of provisions stores including lab materials and other consumables stationeries and housekeeping items are stated at cost. The net realisable value is not applicable in the absence of any further modification/ 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 wherever applicable applying FIFO method. 3. Surgical instruments linen crockery and cutlery are valued at cost and are subject to 1/3 write off wherever applicable applying FIFO method. The net realisable value is not applicable in the absence of any further 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. 4. Imported inventories are accounted for at the applicable exchange rates prevailing on the date of the transaction. Apollo Health and Lifestyle Limited Consumables are valued at lower of cost or net realisable value. Cost is determined on First in First out basis. Net Realizable value is the estimated selling price in the ordinary course of business less estimated cost necessary to make sale. Apollo Gleneagles Hospital Limited The Inventory of laboratory and other medical consumables are stated at cost on FIFO method. Future Parking Private Limited Inventories are valued at cost On FIFO Basis after providing for obsolescence and other losses where considered necessary. Cost includes all charges in bringing the goods to the point of sale including octroi and other levies transit insurance and receiving charges. Indraprastha Medical Corporation Limited i Inventories are valued at lower of cost and net realizable value. ii The cost in respect of the items constituting the inventories has been computed on FIFO basis. Stemcyte India Therapeutics Private Limited: Consumables are valued at lower of cost and net realizable value. Cost is determined on First- in First Out FIFO basis. Net realizable value is the estimated current procurement price in the ordinary course of the business. The Companys inventories consist of UCB stem cells stored in the public bank which are recorded at attributable direct costs to those public stem cells available for transplant. Net realisable value of public stem cells is measured by evaluat ing var ious factors impact ing the likelihood of being sold w ithin a reasonable storage per iod. C. Prior Period Items and Extraordinary Items Prior period items and extraordinary items are separately classified identified and dealt with as required under Accounting Standard 5 on ‘Net Profit or Loss for the Period Prior Period Items and Changes in Accounting Policies’ as notified under the Companies Accounting Standards Rules 2006. D. Depreciation and Amortisation: a. Deprereciation: i. Depreciation has been provided on straight line method at rates specified in Schedule II of the Companies Act 2013 on single shift basis. ii. Depreciation on new assets acquired during the year is provided at the rates specified in Schedule II to the Companies Act 2013 from the date of acquisition to the end of the financial year. iii. In respect of assets value not exceeding `5000/- these are fully charged off in the year of purchase. iv. In respect of the assets sold during the year depreciation is provided from the beginning of the year till the date of their disposal.

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 222 223 Apollo Hospitals Enterprise Limited a. The cost/premium of land and building taken on lease by the Company from Orient Hospital Madurai will be amortised over a period of 30 years though the lease is for a period of 60 years. The cost/premium of land and building taken additionally on lease by the Company at Madurai is for a period of 9 years with an option to extend the lease by another 16 years. The depreciation on the leasehold building is charged on a straight line basis with the lease period being considered as 25 years. The Company has taken land in Karaikudi from Apollo Hospitals Educational Trust on lease for a period of 30 years. The cost of the building constructed on the lease land is amortised over a period of 30 years. The cost of land and building taken on lease by the Company from Rigid Hospitals Private Limited Chennai will be amortised over a period of 30 years. The cost of land and building taken on lease by the Company situated at Old Mahabalipuram Road Karapakkam Chennai will be amortised over a period of 30 years. This is in conformity with the definition of lease term as per Clause 3 of AS 19 ‘Leases as notified under the Companies Accounting Standards Rules 2006. b. Lease rental on operating leases is recognised as an expense in the Statement of Profit and Loss on straight-line basis as per the terms of the agreement in accordance with Accounting Standard 19 ‘Leases’ as notified under the Companies Accounting Standards Rules 2006. A.B. Medical Centres Limited Depreciation on Fixed Assets are at the new rates prescribed in Schedule II of the Companies Act2013. Assets which are fully depreciated are recognized at residual value. Apollo Health and Lifestyle Limited i 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 II to the Companies Act 2013 or based on the estimated useful lives of the assets whichever is higher. ii Lease hold improvements are depreciated over the primary period of lease or useful lives of the assets whichever is shorter. Sapien Bioscience Private Limited Depreciation on Fixed assets is charged at the rates and in the manner specified in Schedule II of the Companies Act 2013. The Useful life of the Assets are as under: Sl No. Nature of the Asset Useful Life 1. Computers a. Servers Networks 6 years b. End user Devices such as Desktops Laptopsetc. 3 years 2. Lab Equipments 10 years 3. Furniture Fixtures 10 years Apollo Munich Health Insurance Company Limited Depreciation/Amortization on Fixed Assets/Intangible Assets is provided on straight line method SLM basis the useful life estimate of assets as mentioned in Part C of Schedule II of Companies Act 2013. The depreciation rates used are given below: Asset Class Rate of Depreciation Computer Server 16.67 Other Information Technology Equipment 33.33 Computer Software 20 Office equipments 20 Furniture Fixtures 25 or on the basis of lease term of premises whichever is higher Vehicles 20 Depreciation on assets purchased / disposed off during the year is provided on pro- rata basis with reference to the date of addition / deletion. Family Health Plan TPA Limited The Company has provided for depreciation using useful life method as specified in Schedule II to the Companies Act 2013 Intangible assets computer software are amortized on the basis of estimated useful life as applied to the Computers. Indraprastha Medical Corporation Limited a Depreciation is charged on straight line method based on the useful life prescribed under Schedule II to the Companies Act 2013. Where the life of the assets is different from the useful life specified in the schedule the depreciation is charged as per useful life of the assets determined by the Company. b. When impairment loss / reversal is recognized the depreciation charge for the asset is adjusted in future periods to allocate the asset’s revised carrying amount less its residual value if any on a systematic basis over its remaining useful life. Apollo Home Healthcare Limited During the current year depreciation on fixed assets is changed from Written Down Value to Straight Line Basis. As a result an amount of `171839/- had been reduced from cumulative loss as an adjustment for the earlier year. The change in the method of charging Depreciation is to be in line with the method followed by the Holding Company for calculating Depreciation. Imperial Hospital and Research Centre Limited Depreciation on Assets acquired under Financial Lease is provided over the primary period of lease of 7 years or over the useful lives of the respective fixed assets whichever is shorter. This is in conformity with the definition of lease term as per Clause 3 of AS 19 ‘Leases’ as notified under the Companies Accounting Standards Rules 2006.

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 224 225 Amortisation of Intangible Assets i. Intangible assets are amortised on straight line method over the estimated useful life of the asset. ii. The useful life of the intangible assets for the purpose of amortisation is estimated to be three years. Assam Hospitals Limited i. The Registration and other fees for the Land and Buildings taken on lease by the Company from M/s. The Frontier Engineering No.8 Padma Path R.G. Barua Road Guwahati - 781024 will be amortised over a period of 10 years. The Cost of Land and Building taken on lease by the Company is for a period of 10 years with an option to extend the lease to another 50 years. The depreciation on leasehold building is charged on Written Down Value basis with the lease period being considered as 60 years. ii. Depreciation has been provided on Written down Value method at rates specified in Schedule II of the Companies Act 2013 on single shift basis. E. Revenue Recognition. a. Income from Healthcare Services is recognised on completed service contract method. The hospital collections of the Company are net of discounts and payments to Consultants. Revenue also includes the value of services rendered pending final billing in respect of in-patients undergoing treatment as on 31st March 2016. b. Pharmacy Sales are recognised when the risk and reward of ownership is passed to the customer and are stated net of returns discounts and exclusive of VAT wherever applicable. c. Hospital Project Consultancy income is recognised as and when it becomes due on percentage completion method on achievement of milestones. d. Income from Treasury Operations is recognised on receipt or accrual basis whichever is earlier. e. Interest income is recognised on a time proportion basis taking into account the principal amount outstanding and the rate applicable. f. Royalty income is recognised on an accrual basis in accordance with the terms of the relevant agreement. g. Dividend income is recognised as and when the owner’s right to receive payment is established. Apollo Health and Lifestyle Limited Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from services is recognized as per the standard terms with the customer when the related services are performed. With reference to Cradle the One Time License fee is recognized based on percentage of Completion method. The Company has recognized revenue as follows. One Time License Fees • Wi th reference to Clinics One Time License fee is recognized on signing the MOU. • Wi th Reference to Cr a dle the One Time License fee is recognized based on percentage o f Complet ion method. Operating License Fee • Oper at ing License Fee is recognized as a percentage o f the gross sales. Owned clinics operational income • Revenues are recognised on the basis o f the ser v ices rendered on cash or on ac crual basis whichever is earlier. Corporate services Fee • Corpor ate ser v ices fee is recognized on basis o f the ser v ices rendered and as per the terms o f the agreement. Other Incomes • A l l other incomes are recognized on a pro-r ata basis based on the complet ion o f work and as per the terms of the agreement. Interest • Interest income is recognized on a t ime propor t ion basis tak ing into ac count the amount outstand ing and the applicable Interest rate. Interest income is included under the head "other income" in the statement of profit and loss. All the above incomes are recognized net of Service tax or VAT wherever applicable Sapien Bioscience Private Limted Revenue from operations is recognized based on services provided and billed as per the terms of specific contract. Apollo Home Health Care India Limited Income from medical services is recognized net of payment to Medical Staff. Income from Hostel Receipts is recognized net of payment made towards Hostel Rent and Mess Expenses and is accounted on accrual basis. Apollo Munich Health Insurance Company Limited a. Premium: Premium net of service tax is recognized as income over the contract period or period of risk whichever is appropriate. Any subsequent revision or cancellation of premium is accounted for in the year in which they occur.

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 226 227 b. Commission on Reinsurance Premium: Commission on reinsurance ceded is recognized as income in the year of cession of reinsurance premium. Profit commission under reinsurance treaties wherever applicable is recognized in the year of determination of the profits and as intimated by the reinsurer. c. Premium Deficiency: Premium deficiency is recognized whenever the ultimate amount of expected claims related expenses and maintenance costs exceeds related sum of premium carried forward to the subsequent accounting period as reserve for unexpired risk. d. Reserve for Unexpired Risk: Reserve for unexpired risk represents that part of the net premium premium net of reinsurance ceded attributable to the succeeding accounting period subject to a minimum amount of reserves as required by Section 64V 1 ii b of Insurance Act 1938. e. Interest / Dividend Income: Interest income is recognized on accrual basis. Dividend is recognized when the right to receive the dividend is established. f. Accretion / Amortization of Discounts/ Premium Accretion of discounts and amortization of premium relating to debt securities is recognized over the holding / maturity period. Indraprastha Medical Corporation Limited a. Revenue is recognized on accrual basis. Hospital Revenue comprises of income from services rendered to the out-patients and in-patients. Revenue also includes value of services rendered pending billing in respect of in- patients undergoing treatment as at the end of the year. b. Under the "Served from India Scheme" introduced by the Government of India an exporter of service is entitled to certain export benefits on foreign currency earned. The revenue in respect of export benefits is recognized on the basis of the foreign exchange earned at the rate at which the said entitlement accrues to the extent there is no significant uncertainty as to the amount of consideration that would be derived and as to its ultimate collection. Apollo Hospitals International Limited a. Under the "Served from India Scheme" introduced by the Government of India an exporter of service is entitled to certain export benefits on foreign currency earned. The revenue in respect of export benefits is recognized on the basis of the foreign exchange earned at the rate at which the said entitlement accrues to the extent there is no significant uncertainty as to the amount of consideration that would be derived and as to its ultimate collection. b. Management fees/ other fixed income is recognised on an accrual basis net of service tax or VAT in accordance with the terms of the relevant agreement. Assam Hospitals Limited Government Grant The Company adopts the income approach with respect to the Government grants received by it. This means that the Government grants are recognised on a systematic and rational basis over the periods necessary to match them with the related costs. Grants related to depreciable assets are treated as deferred income which is recognised in the profit and loss statement on a systematic and rational basis over the useful life of the asset. Such allocation to income is usually made over the periods and in the proportions in which depreciation on related assets is charged. Stemcyte India Therapeutics Private Limited: The Company receives fees for collecting testing processing freezing and storing of cord blood units. Once the umbilical cord blood units are collected tested screened and successfully meet all of the required attributes the Company freezes the units and stores them in a cryogenic freezer. Private Banking: Under the cord blood processing and storage agreement “Agreement” signed with the customer the Company charges enrollment fee processing fee and storage fees to the customer and such agreement typically provides for a storage period of twenty one or twenty six years. The enrollment fees is recognised at the time of enrollment. The Company has determined that the cord blood processing services and storage services are to be accounted for as separate units as per the management estimate. The processing fees is recognised upon successful completion of processing services. Revenue from storage fees is deferred over the storage period. Based on the agreements signed between the Company and the customer the Company charges storage fees over the contract period. The Company classifies deferred revenue as current if the Company expects to recognize the related revenue over the next 12 months. When the collectability of the revenue from the customers is not reasonably assured due to delinquency of payment by the customer the deferred storage revenue is reversed. Revenue from UCB units are stated net of discounts. Public Banking: Revenue is measured at the fair value of the consideration received or receivable taking into account the sale of public banking units to external customers. Revenue arising from the sales of units is recognised when the entity has delivered the unit to the customer the amount of sales revenue can be measured reliably and it is probable that the future economic benefits associated with the transaction will flow to the entity. F. Fixed Assets a. All Fixed Assets are stated at their original cost of acquisition less accumulated depreciation and impairment losses are recognised where necessary Also refer Note 3O in the Notes forming part of Accounts. Additional cost relating to the acquisition and installation of fixed assets are capitalised. Wherever VAT is eligible for input availment fixed assets are stated at cost of acquisition after deduction of input VAT. b. Capital work-in-progress comprises of and amounts expended on development/acquisition of Fixed Assets that are not yet ready for their intended use at the Balance Sheet Date. Expenditure during construction period directly attributable to the projects under implementation is included under Capital work-in- progress pending allocation to the assets. c. Assets acquired under Hire Purchase agreements are capitalised to the extent of principal value while finance charges are charged to revenue on accrual basis.

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 228 229 d. Interest on borrowings for acquisition of Fixed Assets and exchange fluctuation arising out of foreign borrowings and the related revenue expenditure incurred for the period prior to the commencement of operations for the expansion activities of the Company are capitalised. G. Transactions in Foreign Currencies a. Monetary items relating to foreign currency transactions remaining unsettled at the end of the year are translated at the exchange rates prevailing at the date of the Balance Sheet. The difference in translation of monetary items and the realised gains and losses on foreign exchange transactions are recognised in the Statement of Profit and Loss in accordance with Accounting Standard 11 - ‘The Effects of Changes in Foreign Exchange Rates Revised 2003’ as notified under the Companies Accounting Standards Rules 2006 Also refer Note 25 other income and 28 other expenses in the Notes forming part of Accounts. b. Exchange differences arising on settlement or restatement of foreign currency denominated liabilities borrowed for the acquisition of Fixed Assets hither to recognized in the Statement of Profit and Loss are now capitalised based on Para 46A of Accounting Standard 11 - ‘The Effects of Changes in Foreign Exchange Rates Revised 2003’. c. The use of foreign currency forward/swap contract is governed by the Company’s policies approved by the Board of Directors. These hedging contracts are not for speculation. H. In v estments Investments are classified as current or long term in accordance with Accounting Standard 13 on ‘Accounting for Investments a. Long-term investments are stated at cost to the Company in accordance with Accounting Standard 13 on ‘Accounting for Investments. The Company provides for diminution in the value of Long-term investments other than those temporary in nature. b. Current investments are valued at lower of cost and fair value. Any reduction to carrying amount and any reversals of such reductions are charged or credited to the Statement of Profit and Loss. c. On disposal of an investment the difference between the carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss. d. In case of foreign investments 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 shown at the face value reflected in the foreign currency of that country. Apollo Munich Health Insurance Company Limited Investments are made in accordance with the Insurance Act 1938 and Insurance Regulatory Development Authority Investment Regulations 2000 as amended from time to time. Investments are recorded at cost including acquisition charges such as brokerage transfer stamps if any and exclude interest paid on purchase. Debt securities including Government securities are considered as held to maturity and are stated at historical cost adjusted for amortization of premium and/or accretion of discount over the maturity period of securities on straight line basis. Listed and actively traded securities are measured at fair value as at the Balance Sheet date. For the purpose of calculation of fair value the lowest value of the last quoted closing price of the stock exchanges is considered wherever the securities are listed. Unrealized gains/losses due to change in fair value of listed securities is credited / debited to Fair Value Change Account Investments in Units of Mutual funds are stated at fair value being the closing Net Asset Value NAV at Balance Sheet date. Unrealized gains/losses are credited /debited to the Fair Value Change Account Future Parking Private Limited Long-term investments are carried at cost. Diminution in the value of investments other than temporary is provided for. Unquoted current investments comprising of units of mutual funds are stated at cost or Net Asset Value NAV whichever is lower. I. Employee Benefits Short-term employee benefits benefits which are payable within twelve months after the end of the period in which the employees render service are measured at cost. Long-term employee benefits benefits which are payable after the end of twelve months from the end of the period in which employees render service and post employment benefits benefits which are payable after completion of employment are measured on a discounted basis by the Projected Unit Credit Method on the basis of annual third party actuarial valuations. Defined Contribution Plan The Company makes contribution towards Provident Fund and Employees State Insurance as a defined contribution retirement benefit fund for qualifying employees. The Provident Fund Plan is operated by the Regional Provident Fund Commissioner. Under the scheme the Company is required to contribute a specified percentage of payroll cost as per the statute to the retirement benefit schemes to fund the benefits. Employees State Insurance dues are remitted to the Employees State Insurance Corporation. Defined Benefit Plans For Defined Benefit Plan the cost of providing benefits is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial Gains or Losses are recognised in full in the Statement of Profit and Loss for the period in which they occur. a. Gratuity The Company makes annual contributions to the Employees’ Group Gratuity-cum-Life Assurance Scheme of the ICICI and Life Insurance Corporation of India for funding defined benefit plan for qualifying employees which is recognised as an expense. The Scheme provides for lump sum payment to vested employees at retirement death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service. The Company restricts the payment of gratuity to the employees below the rank of General Managers to the limits specified in the payment of Gratuity Act 1972. However the Company complies with the norms of Accounting Standard 15.

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 230 231 b. Leave Encashment Benefits The Company pays leave encashment Benefits to employees as and when claimed subject to the policies of the Company. The Company provides leave benefits through Annual Contributions to the fund managed by HDFC Life. Imperial Hospital Research Centre Limited a. Leave encashment benefits: As per the Company policy every employee who has worked for a period of not less than 240 days during a calendar year shall be eligible for not less than 15 days privilege leave computed at the rate of one day for every 20 days of actual service. The provisions made in the books of account are on the basis of actuarial valuation. Actuarial gains/losses are recognised in the statement of profit and loss as they occur. Apollo Home Health Care India Limited a. The Company is not covered by The Payment of Gratuity Act 1972 since the number of employees is below the statutory minimum as prescribed by the Act. b. The provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act 1952 are also not applicable to the Company as the number of employees is below the statutory minimum. c. The Employees State Insurance Act 1948 is also not applicable to the Company as the number of employees is below the statutory minimum. d. The Company does not have any leave encashment scheme or sick leave policy. Apollo Hospitals International Limited As per the Company policy every regular employee shall be eligible for privilege leave in each calendar year and privilege leave is computed at the rate of 1.75 days of every completed month services. The entitlement of leave for the year would be not more than 21 days and the permissible accumulation privilege leave not more than 63 days. The provisions made in the books of account are on the basis of actuarial valuation. Acturial gains/losses are recognised in the statement of profit and loss as they occur. J. Borrowing Cost Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such asset. As per Accounting Standard 16 ‘Borrowing costs’ a qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are expensed as and when incurred. K. Segment Reporting Identification of Segments The Company has complied with Accounting Standard 17- ‘Segment Reporting’ with Business as the primary segment. The Company operates in a single geographical segment which is India and the drugs sold in the pharmacies are regulated under the Drug Control Act which applies uniformly all over the Country. The risk and returns of the enterprise are very similar in different geographical areas within the Country and hence there is no reportable secondary segment as defined in Accounting Standard 17. Segment Policies The accounting policies adopted for segment reporting are in line with the accounting policies adopted to be consolidated financial statements with the following additional policies for Segment Reporting: a. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under “unallocable expenses”. b. Inter segment revenue and expenses are eliminated. The Company has disclosed this Segment Reporting in Consolidated Financial Statements as per para 4 of Accounting Standard – 17- ‘Segment Reporting’. L. Lease Operating Lease Leases where the lessor effectively retains substantially all the risks and the benefits of ownership of the 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. M. Earnings per Share In determining the earnings per share the Company considers the net profit after tax before extraordinary item and after extraordinary items and includes post - tax effect of any extraordinary items. The number of shares used in computing the basic earnings per share is the weighted average number of shares outstanding during the period. For computing diluted earnings per share potential equity shares are added to the above weighted average number of shares. N. Taxation a. Income Tax Income tax is computed using the tax effect accounting method where taxes are accrued in the same period as and when the related revenue and expense arise. A provision is made for Income Tax annually based on the tax liability computed after considering tax allowances and exemptions. b. Deferred Tax The differences that result between the profit / loss calculated for income tax purposes and the profit / loss as per the financial statements are identified and thereafter deferred tax assets or deferred tax liability is recorded for timing differences 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 assets are not recognized unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized. The tax effect is calculated on the accumulated timing differences at the beginning of this accounting year based on the prevailing enacted or substantively enacted regulations. Total Health The Company has received a license dated 13th November 2013 under section 25 of the Companies Act 1956 Section 8 of the Companies Act 2013 and is registered under the Act on 29th November 2013. As the Company

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 232 233 has been registered under sec 12AA of the Income Tax Act1961 for claiming income as exempted under Section 11 12 of the Income Tax Act 1961 no provision for income tax has been made and deferred tax liability/ asset has not been calculated. O. Impairment The carrying amounts of assets are reviewed at each Balance 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 concept at the year end when the carrying cost of assets exceed their 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 the purpose of arriving at impairment loss thereon if any. An impairment loss is charged to the Statement of Profit and Loss in the year in which 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. P. Bad Debts Policy The Board of Directors approves the Bad Debts Policy on the recommendation of the Audit Committee after the review of debtors every year. The standard policy for write off of bad debts is as given below subject to management inputs on the collectability of the same Period 0-1 years 0 1-2 years 25 2-3 years 50 Over 3 years 100 Q. Intangible Assets Intangible assets are initially recognised at cost and amortised over the best estimate of their useful life. Cost of software including directly attributable cost if any acquired for internal use is allocated / amortised over a period of 36 months to 120 months. Apollo Health and Lifestyle Limited Intangible assets are amortized on a straight line basis over the estimated useful economic life. The Company uses a rebuttable presumption that the useful life of an intangible asset will not exceed five years from the date when the asset is available for use. If the persuasive evidence exists to the affect that useful life of an intangible asset exceeds ten years the Company amortizes the intangible asset over the best estimate of its useful life. Stemcyte India Therapeutics Private Limited Intangible Assets are stated at acquisition cost net of accumulated amortisation and accumulated impairment losses if any. Intangible assets are amortised on a straight line basis over their estimated useful lives.The amortisation rates used are: Asset Period Computer Software 3 years R. Provisions Contingent Liabilities and Contingent Assets A provision is recognised when 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 will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are not provided for unless a reliable estimate of probable outflow to the Company exists as at the Balance Sheet date. Contingent assets are neither recognised nor disclosed in the financial statements. S. Derivative Financial Instruments The Company is exposed to foreign currency fluctuations on foreign currency loans and payables. The Company limits the effect of foreign exchange rate fluctuations by following established risk management policies including the use of derivatives. The Company enters into derivative financial instruments where the counterparty is a bank. All derivatives are effective hedges against an underlying liability and any cash flows are recognised as and when they occur. Attributable transaction costs are recognised in the statement of income as cost. Gain/losses on settlement of foreign currency derivative instruments relating to borrowings which have not been designated as hedges are recorded as finance expense. T. Insurance – related Policies Apollo Munich Health Insurance Company Limited i. Reinsur ance P remium Reinsurance Premium on ceding of risk is accounted in the year in which risk commences and over the period of risk in accordance with the treaty arrangements with the reinsurers. Unearned premium on reinsurance ceded is carried forward to the period of risk and is set off against related unearned premium. Premium on excess of loss reinsurance cover is accounted as per the reinsurance arrangements. ii. Acquisition Cost of Insurance Contracts Costs relating to acquisition of new and renewal of insurance contracts viz commission etc. are expensed in the year in which they are incurred. iii. Premium Received in Advance Premium received in advance represents premium received in respect of those policies issued during the year where the risk commences subsequent to the Balance Sheet date. iv. Claims Incurred Estimated liability in respect of claims is provided for the intimations received upto the year end based on assessments made by Third Party Administrators TPAs. Information provided by the insured and judgment based on the past experience. Claims are recorded in the revenue account net of claims recoverable from reinsurers / coinsurers to the extent there is a reasonable certainty of realization. These estimates are progressively re- valued on availability of further information.

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 234 235 v. Claims incurred but not reported IBNR and claims incurred but not enough reportedIBNER IBNR 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 IBNR provision also includes provisions if any required for claims incurred but not enough reported. IBNR and IBNER liabilities are provided based on actuarial principles and certified by the Appointed Actuary. The methodology and assumptions on the basis of which the liability has been determined has also been certified by the Actuary to be appropriate in accordance with guidelines and norms issued by the Institute of Actuaries of India and in concurrence with the IRDA. vi. Allocation of Investment Income Investment income is apportioned to Statement of Profit Loss and Revenue Account in the ratio of average of shareholders funds and policy holders’ funds at the end of each month. vii. Fair Value Change Account 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 considered as a component of shareholders funds and not available for distribution as dividend. viii. Profit / Loss on Sale / Redemption of Investments Profit or loss on sale / redemption of investments being the difference between sale consideration / redemption value and carrying value of investments is credited or charged to Statement of Profit and Loss. The profit / loss on sale of investments include accumulated changes in the fair value previously recognized in Fair Value Change Account’ in respect of a particular security. ix. Long Term / Short Term Investments Investments maturing within twelve months from the Balance Sheet date and investments made with specific intention to dispose off within twelve months from the date of acquisition are classified as short term investments. Other investments are classified as long term Investments. 4. Share Capital `in million Particulars 31.03.2016 31.03.2015 Authorised 200000000 2014-15 : 200000000 Equity Shares of `5/- each 1000 1000 1000000 2014-15 : 1000000 Preference Shares of `100/- each 100 100 1100 1100 Issued 139658177 2014-15 : 139658177 Equity Shares of `5/- each 698.29 698.29 Subscribed and Paid up 139125159 2014-15 :139125159 Equity Shares of `5/- each fully paid up 695.63 695.63 Reconciliation of the number of shares `in million Particulars 31.03.2016 31.03.2015 Equity Shares Equity Shares Number Amount `in million Number Amount `in million Shares outstanding at the beginning of the year 139125159 695.63 139125159 695.63 Shares outstanding at the end of the year 139125159 695.63 139125159 695.63 Rights Preferences and Restrictions attached to Shares Equity shares: The Company has one class of equity shares having a par value of `5 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding Shareholders holding more than 5 of total paid up capital Name of the Shareholder 31.03.2016 31.03.2015 Equity Shares Equity Shares No. of Shares held of Holding No. of Shares held of Holding PCR Investments Limited 27223124 19.57 27223124 19.57 Integrated Mauritius Healthcare Holdings Limited 15093860 10.85 15093860 10.85 Oppenheimer Developing Markets Fund 12014785 8.64 12086295 8.69 a. The Parent Company had issued 9000000 Global Depository Receipts of `10 now 18000000 Global Depository Receipts of `5 each with two way fungibilty during the year 2005-06. Total GDR’s converted into underlying Equity Shares for the year ended on 31st March 2016 is 259856 2014-15 : 22354 of `5 each and total equity shares converted back to GDRs for the year ended 31st March 2016 is 22114 2014-15 : 400 of `5 each. Total GDR’s converted into equity shares upto 31st March 2016 is 25361388 2014-15 : 25101532 of `5 each.

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 236 237 5. Reserves and surplus `in million Particulars 31.03.2016 31.03.2015 a. Capital Reserves Opening Balance 18.44 18.44 Closing Balance 18.44 18.44 b. Capital Reserve on consolidation Opening Balance 155.25 155.25 Written back during the year 91.83 - Closing Balance 63.42 155.25 c. Capital Fund Opening Balance 3.03 3.03 Closing Balance 3.03 3.03 d. Capital Redemption Reserve Opening Balance 60.02 60.02 Closing Balance 60.02 60.02 e. Securities premium Account Opening Balance 17621.01 17610.80 Add: Share Premium for group companies - 10.21 Closing Balance 17621.01 17621.01 f. Debenture redemption reserve Opening Balance 1297.50 812.50 + Current Year Transfer - 485.00 Closing Balance 1297.50 1297.50 g. General Reserve Opening Balance 10126.92 7756.84 + Current Year Transfer 2000.00 1500.00 + Share of Associates 10.16 20.46 + Share of Profits / Loss Subsidiaries 170.41 511.78 + Profit from Joint Ventures 73.22 378.76 Closing Balance 12380.72 10126.92 h. Fair value change account - 0.08 j. Surplus Opening Balance 2094.38 1846.80 + Provision for tax no longer required 0.02 - + Net Profit/Net Loss For the current year 3310.12 3399.03 - Transfer to Reserves 2000.00 1500.00 - Proposed Dividend on Equity Shares for the year - 799.97 - Dividend Distribution Tax on Proposed dividend on Equity Shares - 163.79 - Interim Dividends 834.77 - - Dividend Distribution Tax on Interim Dividend 169.02 - - Transfer to Debenture Redemption Reserve - 485.00 - Differential Depreciation consequent to reworking as per Schedule II to the Companies Act 2013 3.97 573.01 Closing Balance 2396.76 1724.06 Total 33840.90 31006.31 6. Long Term Borrowings `in million Sl.No Particulars 31.03.2016 31.03.2015 Secured a Non convertible Debentures 1000 2014-15: 1000 10.30 Debentures of 1000000/- each 1000.00 1000.00 940 2014-15: 940 10.15 Debentures of 1000000/- each 940.00 940.00 Nil 2014-15: 1250 9.80 Debentures of 1000000/- each - 1250.00 2000 2014-15: 2000 10.20 Debentures of 1000000/- each 2000.00 2000.00 b Term Loans From Banks Cash Credit - 1.83 HDFC Bank Limited 944.52 1059.00 HDFC Bank Limited 2000.00 - Axis Bank Limited 2855.57 1136.01 Bank of India 3000.00 1160.00 HSBC 1000.00 1000.00 Yes Bank 2075.34 145.29 ICICI Bank 1109.55 1036.00 Indus Ind Bank Ltd 162.97 278.19 From Other parties IFC Loan External Commercial Borrowings - 750.75 IFC Loan External Commercial Borrowings 1169.34 1403.08 HSBC External Commercial Borrowings 867.20 1084.00 HSBC bills payable 421.39 636.82 IDFC 500.00 250.00 IDFC Infra Debt Fund 1000.00 - Total 21045.88 15130.97 Add: Share in joint ventures 443.92 501.27 Total 21489.80 15632.24 Unsecured i Deposits Fixed Deposits 138.37 220.18 ii Other loans and advances Bank of Tokyo Mitsubishi UFJ External Commercial Borrowings 1328.20 1328.20 Total 22956.37 17180.62 Add: Share in Joint Venture - 99.96 Total 22956.37 17280.58

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 238 239 Apollo Hospitals Enterprise Limited a. 10.30 Non Convertible Debentures The Company issued to Life Insurance Corporation of India 500 Nos. 10.30 Non-Convertible Redeemable Debentures of `1 million each on 28th December 2010 with an option to re-purchase/re-issue some or all of its debentures in the secondary market or otherwise at any time prior to the specified date of redemption of 28th December 2020 and 500 Nos. 10.30 Non-Convertible Redeemable Debentures of `1 million each on 22nd March 2011 with an option to re-purchase/re-issue some or all of its debentures in the secondary market or otherwise at any time prior to the specified date of redemption of 22nd March 2021. b. 10.15 Non Convertible Debentures The Company issued 1000 Nos. 10.15 Non-Convertible Redeemable Debentures of `1 million each on 22nd March 2012 to multiple parties with an option to re-purchase/re-issue some or all of its debentures in the secondary market or otherwise at any time prior to the specified date of redemption of 22nd March 2017. The Company had redeemed debentures amounting to `60 million during the FY 2012-13 as per the terms and conditions of the issue and the residual debentures for a value of `940 million is outstanding as of 31st March 2016. c. 9.80 Debentures Non Convertible Debentures The Company issued to First Rand Bank Limited 1250 Nos. 9.80 Non-Convertible Redeemable Debentures of `1 million each on 11th July 2012 with an option to re-purchase/re-issue some or all of its debentures in the secondary market or otherwise after expiry of a term of 3 years from the date of issue with the specified date of redemption being 11th July 2017. During the year the Company has redeemed the entire debentures of 1250 Nos on 10th July 2015. d. 10.20 Non Convertible Debentures The Company issued to Kotak Mahindra Bank Limited 1150 Nos. and to NPS Trust A/C LIC 850 Nos. 10.20 Non Convertible Redeemable Debentures of `1 million each on 22nd Aug 2014 with an option to re-purchase re-issue some or all of its debentures in the secondary market or otherwise at any time prior to the specified date of redemption of 22nd August 2028. The Debentures stated above in points ab d are secured by way of Pari passu first charge on the Fixed Assets of the Company existing and future along with Bank and Institutions such Pari passu first charge ensuring at least a cover of 1.25 times the value of the outstanding principle amount of the cost. e. HDFC Bank Limited i The Company has availed Rupee Term Loan of `1300 million from HDFC Bank Limited which is repayable in twenty quarterly instalments commencing from September 2012 with interest payable being linked to HDFC Bank’s Base rate. During the year four instalments of `65 million each were repaid. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the Company along with minimum cover of 1.25 times the value of the outstanding principal amount of the loan. ii During the year the Company was sanctioned an additional Rupee Term Loan of `3500 million from HDFC out of which `2000 million has been availed on 9th March 2016. This loan is repayable in 22 half yearly instalments with a moratorium period of 4 years from the date of the first disbursement commencing from 9th Sep 2020 with interest payable being linked to HDFC Bank’s Base rate. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the Company along with minimum cover of 1.25 times the value of the outstanding principal amount of the loan. f. HSBC The Company has availed Rupee Term Loan of `1000 million from HSBC Bank Limited which is repayable in 16 semi-annual instalments commencing from 2nd March 2017 with interest payable being linked to HSBC’s Base rate. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the Company ensuring atleast a cover of 1.25 times the value of the outstanding principal amount of the loan. g. Axis Bank Limited During the year the Company received additional `1700 million from the Bank totalling to `2700 million against the sanctioned amount of `3000 million which is repayable in 40 Quarterly instalments with a moratorium of 4 years from the date of 1st disbursement commencing from 15.12.2018 with interest payable being linked to Axis Bank’s Base rate. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the Company along with minimum cover of 1.25 times the value of the outstanding principal amount of the loan. h. Bank of India During the year the Company received additional `1840 million from the Bank totalling to `3000 million. This loan is repayable in 40 Quarterly instalments with a moratorium of 4years from the date of 1st disbursement commencing from 30th September 2018 with interest payable being linked to Bank of India’s Base rate. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the Company along with minimum cover of 1.25 times the value of the outstanding principal amount of the loan. i. International Finance Corporation External Commercial Borrowings The Company was sanctioned a sum of US 35 million by the International Finance Corporation Washington by way of External Commercial Borrowings ECB. The Company had availed the full loan amount of US 35 million as of 31st March 2012. The ECB loan is secured by way of pari passu first ranking charge on the fixed assets owned by the Company such pari passu charge ensuring atleast a cover of 1.25 times the value of the outstanding principal amount of the loan. During the year the Company prepaid the entire principal amount outstanding on the loan on 11th September 2015. The Company was granted loan of US 30 million in the year 2012-13.The ECB loan is secured by way of pari passu first ranking charge on the fixed assets of the Company ensuring at least a cover of 1.25 times the value of the outstanding principal amount of the loan. The Loan is repayable in 14 semi-annual instalments starting from 15th September 2015. During the year two instalments of US 2142000 each were repaid on 14th September 2015 and 15th March 2016. The Company entered into a currency Cum Interest Rate SwapCCIRS with HDFC Bank Limited Covering LIBOR and foreign currency fluctuation risk. The tenure of this derivative contract matches with the tenure of the loan outstanding as of 31st March 2016.

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 240 241 j. HSBC External Commercial Borrowings The Company has drawn a loan of US 25 million from HSBC Bank Limiteds in the year 2012-13. The Company entered into a Currency Cum Interest Rate Swap CCIRS with HSBC Bank Limited in Indian Rupee for interest rate and foreign currency fluctuation risk. The ECB loan is secured by way of pari passu first ranking charge on the fixed assets of the Company. The loan is repayable in 22 quarterly instalments starting from July 2014. During the year four instalments of US 0.5 million each were repaid on 4th Apr 2015 4th Jul 2015 4th Oct 2015 and 4th Jan 2016. k. HSBC Buyer’s Line of credit The Company has availed a buyer’s line of credit of US 10.78 million US 10.68 million from HSBC for the equipment imported. The loan is secured by first pari passu ranking charge on entire existing and future movable fixed asset of the Company with minimum cover of 1.25 times the value of the outstanding principal amount of the loan. l. IDFC During the year the Company received additional `250 million from the Bank agreegating to `500 million against the sanctioned amount of `1500 million. This amount is repayable in 44 quarterly instalments commencing from 15th October 2016 and with the interest payable being linked to IDFC’s Base rate. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the Company ensuring atleast a cover of 1.25 times the value of the outstanding principal amount of the loan. m. IDFC Infra Structure Debt Fund During the year the Company has availed an Infra Structure Debt Fund IDF of `1000 million from IDFC Bank which is repayable in 3 annual instalments of 20 at the end of December 2029 14th year 40 at the end of December 2030 15th year and balance 40 at the end of December 2031 16th year from the date of first disbursement with Interest payable at 9.6 on outstanding amount of loan. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the Company ensuring atleast a cover of 1.25 times the value of the outstanding principal amount of the loan. n. ICICI Bank Ltd - Term Loan During the year the Company has availed Rupee Term Loan of `1100 million from ICICI Bank against the sanctioned amount of `3500 million which is repayable in 60 quarterly instalments including moratorium period of 3 years from the date of 1st disbursement commencing from 30th June 2019 with interest rate being linked to ICICI’s Base rate. The loan is secured by first pari passu charge on all present and future movable and immovable fixed assets of the Company. o. Bank of Tokyo – Mitsubishi UFJ External Commercial Borrowings Bank of Tokyo has granted an unsecured loan of US 20 million on 11th September 2013. The Company entered into a Currency Cum Interest Rate Swap CCIRS with HSBC covering LIBOR and foreign currency fluctuation risk. The loan is repayable in 3 annual instalments starting from the end of the 5th year from the date of advance. 7. Deferred Tax Liabilities The deferred tax for the year recognized in the Statement of Profit and Loss of the group comprises: `in million Particulars 31.03.2016 31.03.2015 Deferred Tax Liability recognized in the statement of Profit or loss 824.45 772.05 Deferred Tax Asset recognized in the statement of Profit or loss 8.39 31.60 The accumulated deferred tax liability/ asset of the group as on 31st March 2016 comprises: `in million Particulars 31.03.2016 31.03.2015 I Deferred Tax Liability On account of Depreciation 907.15 1187.04 On account of Deferred Revenue Expenditure deferred Tax Assets 48.07 49.17 On account of 35AD 4022.00 2986.11 Total 4977.22 4222.32 II Deferred Tax Assets On account of Depreciation 0.68 - On account of Unabsorbed Losses and Depreciation 133.50 202.77 Total 134.18 202.77 Apollo Munich Health Insurance Company Limited The Company has carried out its deferred tax computation in accordance with the mandatory Accounting Standard AS 22 - ‘Taxes on Income’ issued by the Institute of Chartered Accountants of India. The Company has performed re-assessment of the deferred tax assets after considering the current year’s taxable income as well as Company’s ability to generate sufficient taxable income in the future. The deferred tax asset has been created on the Company’s eligible tax losses to the extent that there is a virtual certainty supported by convincing evidence from the management about the availability of sufficient future taxable income against which such deferred tax can be realized. The amount of deferred tax asset recognized in books of account is NIL Previous Year `NIL. 8. Other Long Term Liabilities `in million Particulars 31.03.2016 31.03.2015 Rent Deposits 10.27 - Other Deposits 2.56 1.05 Total 12.83 1.05 ADD: Share in Joint ventures - 49.28 Total 12.83 50.33

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 242 243 9. Long Term Provisions `in million Particulars 31.03.2016 31.03.2015 a Provision for employee benefits Gratuity 15.19 18.23 Leave Encashment 9.87 9.75 Total 25.07 27.98 ADD:Share of Joint ventures 6.82 6.50 Total 31.89 34.48 10. Short Term borrowings `in million Particulars 31.03.2016 31.03.2015 Secured i Loans repayable on demand from banks State Bank of Travancore - 7.15 Canara Bank - 73.72 Yes Bank Ltd 115.12 143.04 HDFC 1250.00 - Lavasa Corporation Ltd 99.00 - Others 22.32 - Industrial Co-Operative Bank 37.60 - Axis Bank Ltd 94.94 10.30 Unsecured i Deposits Fixed Deposits 109.37 93.40 ii Loans repayable on demand from banks HSBC - 372.77 Total 1728.35 700.38 Add: share in joint ventures 91.67 156.99 Total 1820.02 857.37 Note: The Cash Credit availed from Banks is secured by way of Stock-in-Trade less unpaid Creditors and Receivables. Details of Trade payables are based on the information available with the Company regarding the status of Suppliers as defined under the ‘Micro Small and Medium Enterprises Development Act 2006. The amount due to Micro Small and Medium Enterprises for the financial year ended 31st March 2016 is `254.70 million `210.92 million. No interest in terms of Section 16 of Micro Small and Medium Enterprises Development Act 2006 or otherwise has either been paid or payable or accrued and remaining unpaid as at 31st Mar 2016. 11. Other Current Liabilities `in million Particulars 31.03.2016 31.03.2015 a Current maturities of long-term debt 2090.47 1784.63 b Interest accrued but not due on borrowings 253.89 159.14 c Interest accrued and due on borrowings 70.19 - d Unpaid dividends 49.79 28.41 e Unpaid matured deposits and interest accrued thereon 17.03 16.57 i Other payables Sundry Creditors Others 511.49 314.06 Retention Money on Capital Contracts 0.77 0.48 Inpatient Deposits 149.28 311.77 Rent Deposits 14.05 35.59 Other Deposits 54.31 18.25 Tax Deducted at Source 156.34 184.19 Outstanding Expenses 1090.85 693.62 Total 4458.47 3546.71 Add:Share of joint ventures 1124.55 852.38 Total 5583.02 4399.09 Apollo Hospitals Enterprise Limited During the year the amount transferred to the Investors Education and Protection Fund of the Central Government as per the provisions of Section 205 A and 205 C of the Companies Act 1956 is `2.40 million `2.34 million as unpaid dividend. 12.Short Term Provisions `in million Particulars 31.03.2016 31.03.2015 a Provision for employee benefits Bonus 457.82 206.57 Gratuity Earned Leave 127.18 142.74 Sub total 584.99 349.31 b Others For Dividend - Equity Shares - 799.97 For Dividend Distribution Tax - Equity Shares - 163.79 Sub Total - 963.76 Add : Share of Joint Ventures 28.39 2.31 Total 613.38 1315.38

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 244 245 Fixed Assets Gross Block Accumulated Depreciation Net Block Balance as at April 1 2015 Additions Deletions Balance as at March 31 2016 Balance as at April 1 2015 Deprecia- tion charge for the year Deletions Balance as at March 31 2016 Balance as at March 31 2016 Balance as at April 1 2015 Land 2856.07 470.47 - 3326.54 - - - - 3326.54 2856.07 Buildings 8468.39 2694.99 11.82 11175.20 821.85 225.41 13.48 1060.74 10114.46 7646.54 Lease hold Improvements 3939.15 1442.98 1545.48 3836.65 474.82 71.91 1.35 545.38 3291.27 3464.33 Plant and Equipment Medical Equipment Surgical Instruments 12743.02 1302.85 407.50 13638.37 3873.33 662.51 13.47 4522.37 9116.00 8869.69 Air Conditioning Plant Air Conditioners 2112.79 1262.70 122.83 3252.66 950.22 412.94 222.08 1585.24 1667.42 1162.57 Furniture and Fixtures 2810.65 813.29 20.52 3644.46 1031.96 325.01 12.24 1344.73 2299.73 1778.69 Vehicles 528.07 81.62 19.38 590.31 210.87 64.44 8.12 267.19 323.12 317.20 Office equipment 1321.41 292.87 42.00 1572.28 812.45 218.03 8.38 1038.86 533.42 508.96 Electrical Installations Generators 1831.11 228.19 20.54 2079.84 535.73 169.77 5.42 700.08 1379.76 1295.38 Fire fighting Equipment 131.06 8.20 - 139.26 11.08 1.63 - 12.71 126.55 119.98 Boilers 3.50 - - 3.50 1.16 - - 1.16 2.34 2.34 Kitchen Equipment 70.95 13.88 - 84.83 16.77 1.01 - 17.78 67.05 54.18 Refrigerators 46.57 9.59 0.71 55.45 12.60 2.83 0.30 15.13 40.32 33.97 Wind Electric Generator 26.85 - - 26.85 11.60 - - 11.60 15.25 15.25 Total 36889.59 8621.63 2085.02 43426.20 8764.44 2155.49 203.04 11122.97 32303.23 28125.15 Less: Depreciation write back - - - - 0.28 - - - 0.28 0.28 Total 36889.59 8621.63 2085.02 43426.20 8764.16 2155.49 203.04 11122.97 32303.51 28125.43 Share of Joint Ventures 3545.22 455.58 351.59 3649.21 1342.50 216.91 50.11 1509.30 2139.91 2202.72 Total 40434.81 9077.21 2436.61 47075.41 10106.66 2372.40 152.93 12632.27 34443.42 30328.15 Previous year 33795.17 8304.15 1664.51 40434.81 8659.65 2037.66 590.65 10106.66 30328.15 25135.52 13.Tangible Assets `in million Fixed Assets Gross Block Accumulated Depreciation Net Block Balance as at April 1 2015 Additions Deletions Balance as at March 312016 Balance as at April2015 Amortiza- tion for the year Adjustment due to revalua- tions On disposals Balance as at March 312016 Balance as at March 312016 Balance as at April2015 Computer Software 406.92 61.18 7.20 460.90 254.99 83.17 5.48 - 343.64 117.26 151.93 Trademark and concepts rights 20.56 - - 20.56 11.25 4.11 - - 15.36 5.20 9.31 Goodwill 284.82 1324.31 - 1609.13 4.69 64.21 - - 68.90 1540.23 280.13 Total 712.30 1385.49 7.20 2090.59 270.93 151.49 5.48 - 427.90 1662.69 441.37 Share of Joint Ventures 54.58 6.46 - 61.04 35.37 5.75 0.57 - 40.55 20.48 19.21 Total 766.88 1391.95 7.20 2151.63 306.30 157.24 4.91 - 468.45 1683.17 460.58 Previous year 411.15 412.55 56.82 766.88 233.20 75.69 - 2.59 306.30 460.58 177.95 14.Intangible Assets `in million

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 246 247 16. Non Current Investments `in million Particulars 31.03.2016 31.03.2015 Trade Investments Refer A below a Investment in Equity instruments 670.42 655.09 b Investments in preference shares - - Total A 670.42 655.09 Other Investments Refer B below a Investment in Equity instruments 235.99 383.48 b Investments in preference shares 22.00 22.00 c Investments in debentures or bonds 10.00 10.00 d Investments in Government or Trust securities 0.17 0.17 Total B 268.16 415.65 Grand Total A + B 938.58 1070.74 Less : Provision for dimunition in the value of Investments 112.30 - Advance for Investment 448.91 63.26 Add : Share of Joint Ventures 705.06 516.79 Total 1980.25 1650.79 `in million Particulars 31.03.2016 31.03.2015 Aggregate amount of quoted investments 592.64 574.19 Market Value `1063.19 2014-15- `1134.05 million Aggregate amount of unquoted investments 1387.61 1076.60 Total 1980.25 1650.79 15. C api tal Work-in-P rogress `5955.75 million `5326.40 million comprises of amounts spent on assets under construction and directly related pre-operative expenses. The amount of interest included in capital-work-in- progress is `857.38 million `667.24 million. Includes Interest on borrowings capitalised for the year ended 31st March 2016 of `694.93 million `620.00 million. A Details of Trade Investments Name of the Body Corporate Subsidiary / Associate / JV / Controlled Entity / Others Face Value No. of Shares / Units No. of Shares / Units Quoted / Unquoted Partly Paid / Fully paid Amount `in million Amount `in million Whether stated at Cost Yes/No 31.03.2016 31.03.2015 As at 31 March 2016 As at 31 March 2015 Investment in Equity Instruments Indraprastha Medical Corporation Limited Associate 10 20190740 20190740 Quoted Fully Paid 579.99 561.54 Yes Stemcyte India Therapautics Private Limited Associate 1 240196 240196 Unquoted Fully Paid 88.70 91.82 Yes Kurnool Hospitals Enterprises Limited Others 10 157500 157500 Unquoted Fully Paid 1.73 1.73 Yes Total 670.42 655.09

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 248 249 B Details of Other Investments Name of the Body Corporate Subsidiary / Associate / JV / Controlled Entity / Others Face Value No. of Shares / Units No. of Shares / Units Quoted / Unquoted Partly Paid / Fully paid Amount `in million Amount `in million Whether stated at Cost Yes/No 31.03.2016 31.03.2015 As at 31 March 2016 As at 31 March 2015 Investment in Equity Instruments Family Health Plan TPA Limited Associate 10 490000 490000 Unquoted Fully Paid 160.62 126.87 Yes Health Super Hiway Private Limited Others 10 200 200 Unquoted Fully Paid 0.002 0.002 Yes The Karur Vysya Bank Others 10 12811 12811 Quoted Fully Paid 2.49 2.49 Yes Cholamandalam DBS Finance Ltd Others 10 1000 1000 Quoted Fully Paid 0.16 0.16 Yes Alliance Dental Care Limited Others 10 - 2541771 Unquoted Fully Paid - 177.75 Yes Sunrise Medicare Private Ltd Others 78 78 Unquoted Fully Paid - - Yes AMG Healthcare Destination Pvt Ltd Others 10 1232500 1232500 Unquoted Fully Paid 12.32 12.32 Yes Clover Energy Pvt Ltd Others 10 1929250 1659250 Unquoted Fully Paid 16.59 16.59 Yes Indo Wind Power Pvt Ltd Others 10 10650 35500 Unquoted Fully Paid 0.15 0.50 Yes Tirunelveli Vayu Energy Generation Pvt ltd. Others 1000 36 36 Unquoted Fully Paid 13.61 13.61 Yes Total Health Subsidiary 10 500000 500000 Unquoted Fully Paid 5.00 5.00 Yes Cureus Inc Stanford - US Others 10 935000 935000 unquoted Fullypaid 27.42 27.43 Yes Apollo Dialysis Pvt Ltd Others 10 - 5100 unquoted Fullypaid - 0.05 Yes Iris Ecopower Venture Pvt Ltd Others 10 70000 70000 unquoted Fullypaid 0.70 0.70 Yes Leap Green Energy Pvt Ltd Others 10 - - unquoted Fullypaid 1.43 - Yes Matrix Agro Pvt. Ltd Others - - - unquoted Fullypaid 0.50 - Yes Name of the Body Corporate Subsidiary / Associate / JV / Controlled Entity / Others Face Value No. of Shares / Units No. of Shares / Units Quoted / Unquoted Partly Paid / Fully paid Amount `in million Amount `in million Whether stated at Cost Yes/No 31.03.2016 31.03.2015 As at 31 March 2016 As at 31 March 2015 Investments in Preference Shares Health Super Hiway Private Limited Others 54.10 406514 406514 Unquoted Fully Paid 22.00 22.00 Yes Investments in Debentures or Bonds ECL Finance Others 1000 10000 10000 Quoted Fully Paid 10.00 10.00 Yes Investments in Government or Trust securities National Savings Certificate Others - - - Unquoted Fully Paid 0.17 0.17 Yes Total 268.16 415.65 Total Health is taken for Consolidation in FY 15-16. a National Saving Certificates shown under investments are pledged with the Chief Rationing Officer Government of Andhra Pradesh.

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 250 251 17.Long Term Loans and Advances `in million Particulars 31.03.2016 31.03.2015 a. Capital Advances Unsecured considered good 1869.20 670.08 b. Security Deposits Unsecured considered good 1931.25 1707.46 c. Other Loans and Advances MAT Credit Entitlement 2897.46 1995.45 Other Advances 301.65 434.58 Advance Income Tax 711.00 657.45 3910.11 3087.48 Total 7710.56 5465.02 Add: Share in Joint ventures 242.84 319.49 Total 7953.40 5784.51 18.Current investments `in million Particulars 31.03.2016 31.03.2015 a Investments in Equity Instruments 67.94 67.93 b Investments in Debentures 10.00 10.00 c Investments in Mutual funds 619.27 1373.66 Total 697.21 1451.60 Add: Share in joint ventures 20.00 4.11 Total 717.21 1455.70 `in million Particulars 31.03.2016 31.03.2015 Aggregate amount of quoted investments 539.27 1335.48 Market Value `688.09 2014-15: `1435.06 million Aggregate amount of unquoted investments 177.94 120.22 Total 717.21 1455.70 Name of the Body Corporate Subsidiary / Associate / JV / Controlled Entity / Others Face value No. of Shares / Units as at 31.03.2016 No. of Shares / Units as at 31.03.2015 Quoted / Unquoted Partly Paid / Fully paid Amount as at 31.03.2016 Amount as at 31.03.2015 Basis of Valuation Investments In Equity Instruments British American Hospitals Enterprises Limited Others 100MUR 464333 464333 Unquoted Fully Paid 67.94 67.94 Cost Investments In Debentures IFCI Venture Capital Funds Limited Others 1000000 10 10 Quoted Fully paid 10.00 10.00 Cost Investments In Mutual Funds ICICI Prudential Short Term Regular Plan Growth Option Others 10 2139907 2139907 Quoted Fully paid 50.00 50.00 Cost Canara Robeco Short Term Fund - Regular Growth -ISIN Others 10 192148 192148 Quoted Fully paid 2.50 2.50 Cost Reliance Short Term Fund - Growth Plan ST- GP - ISIN Others 10 4681714 4681714 Quoted Fully paid 100.00 100.00 Cost Canara Robeco Short Term Fund - Regular Growth - ISIN Others 10 188206 188206 Quoted Fully paid 2.50 2.50 Cost Reliance Short Term Fund - Growth Plan Others 10 6903598 6903598 Quoted Fully paid 150.00 150.00 Cost DWS Short Maturity Fund - Regular Plan - Growth Others 10 4785788 4785788 Quoted Fully paid 100.00 100.00 Cost ICICI Prudential Short Term Regular Plan - Growth Plan Others 10 1375946 1375946 Quoted Fully paid 32.77 32.77 Cost Canara Robeco Short Term Fund - Regular Growth Others 10 182151 182151 Quoted Fully paid 2.50 2.50 Cost Canara Robeco Short Term Fund - Regular Growth Others 10 183284 183284 Quoted Fully paid 2.50 2.50 Cost HDFC Debt Fund Others 10 2000000 2000000 Quoted Fully paid 20.00 20.00 Cost SBI Magnum Insta Cash Fund Others 10 - 17546 Quoted Fully paid - 29.39 Cost Reliance Liquid Fund Others 1000 - 338742 Quoted Fully Paid - 517.85 Cost Details of Current Investments `in million

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 252 253 Name of the Body Corporate Subsidiary / Associate / JV / Controlled Entity / Others Face value No. of Shares / Units as at 31.03.2016 No. of Shares / Units as at 31.03.2015 Quoted / Unquoted Partly Paid / Fully paid Amount as at 31.03.2016 Amount as at 31.03.2015 Basis of Valuation ICICI Prudential Short Term Regular Plan Growth Plan Others 10 - 1756142 Quoted Fully Paid - 50.28 Cost Reliance Short Term Fund - Growth Plan Others 1000 - 1919032 Quoted Fully Paid - 50.29 Cost HDFC Debt Fund Others 10 - 1040446 Quoted Fully Paid - 50.17 Cost Reliance Mutual Fund Others 1000 - 1100332 Quoted Fully Paid - 50.12 Cost Birla Sunlife Others 10 - 2055540 Quoted Fully Paid - 50.24 Cost Hdfc Liquid Fund Others 10 2321138 Quoted Fully Paid 23.67 Cost Canara Robeco Mutual Fund Others 10 1400477 1400477 Quoted Fully Paid 30.00 30.00 Cost Canara Robeco Mutual Fund Others 10 217974 - Quoted Fully Paid 2.50 - Cost UTI Floating Rate Fund Others 10 2083 - Quoted Fully Paid 3.30 Cost Reliance Income Fund Retail Plan Growth Plan - Growth Option Others 10 30231 30231 Quoted Fully paid 0.70 0.70 Cost AIG Short Term Fund Institutional Weekly Dividend Others 1001 - 38137 Unquoted Fully paid - 38.18 Cost Birla Sun Life Floating Rate Fund Short Term Plan Others 10 52983 - Quoted Fully Paid 10.00 - Cost UTI Treasuring Advantage Fund- Institutional Plan- Growth Fund Others 10 5052 - Quoted Fully Paid 10.00 - Cost Kotak Flexi Debt Scheme Plan A - Growth Others 10 1386366 1386366 Quoted Fully paid 20.00 20.00 Cost DHFL Pramerica Ultra Sher Term Fund Daily Dividend Re-Investment Others 10.00 5000000 - Unquoted Fully Paid 50.00 - Cost DHFL Pramerica Banking PSU Debt Fund Weekly Dividend Re-investments Others 10.00 3000000 - Unquoted Fully Paid 30.00 - Cost SBI Ultra Short Term Debt Fund Regular Plan Weekly Dividend Others 10.00 2000000 - Unquoted Fully Paid 20.00 - Cost Total 717.21 1451.60 20.Trade Receivables `in million Particulars 31.03.2016 31.03.2015 Trade receivables outstanding for a period less than six months from the date they are due for payment Unsecured considered good 5101.85 4696.90 5101.85 4696.90 Trade receivables outstanding for a period exceeding six months from the date they are due for payment Unsecured considered good 1444.06 1048.77 1444.06 1048.77 Total 6545.91 5745.67 Add: Share in Joint venture 474.04 347.07 Total 7019.95 6092.74 i. Confirmation of balances from Debtors 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 group. ii. Sundry Debtors represent the debt outstanding on sale of pharmaceutical products hospital services and project consultancy fees and is considered good. The group holds no other securities other than the personal security of the debtors. iii. Advances and deposits represent the advances recoverable in cash or in kind or for value to be realised. The amounts of these advances and deposits are considered good for which the group holds no security other than the personal security of the debtors. 19.Inventories `in million Particulars 31.03.2016 31.03.2015 a. Medicines Valued at cost 3501.22 2730.94 b. Stores and spares Valued at cost 166.19 175.34 c. Lab Materials Valued at cost 11.51 12.05 d. Surgical Instruments Valued at cost 438.37 328.89 e. Other Consumables Valued at cost 253.79 206.17 Total 4371.08 3453.39 Add: Share in Joint venture 61.71 49.24 Total 4432.79 3502.63

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 254 255 22. Short-term Loans and Advances `in million Particulars 31.03.2016 31.03.2015 a. Loans and advances to related parties Unsecured considered good 17.07 - Other Loans and Advances Advance to Suppliers 1246.72 540.67 Other Advances 4488.13 3529.40 Loans and advances to employees 118.75 5853.60 101.55 4171.62 Total 5870.67 4171.62 Add: Share in Joint venture 98.48 28.32 Total 5969.15 4199.94 23. Other Current Assets `in million Particulars 31.03.2016 31.03.2015 Prepaid Expenses 184.70 186.26 Rent Receivables 8.55 2.75 Interest Receivables 202.33 58.73 Franchise Fees Receivable 16.36 13.82 Total 411.94 261.56 Add: Share in Joint venture 74.53 102.87 Total 486.47 364.43 21. Cash and Cash Equivalents `in million Particulars 31.03.2016 31.03.2015 a. Balance with banks Current Accounts 2909.10 2489.58 Fixed Deposit Accounts 204.96 422.41 Unpaid Dividend Accounts 30.42 28.41 Margin money Deposits 61.58 28.25 Guarantees 162.67 159.98 3368.73 3128.63 b. Cash on hand 151.79 119.46 Total 3520.52 3248.09 Add: Share in Joint venture 455.16 525.24 Total 3975.68 3773.33 a. The Company’s Fixed Deposit receipts amounting to 162.67 million 159.98 million are under lien with the bankers for obtaining Bank Guarantees and Letters of credit. 24.Revenue from operations `in million Particulars 31.03.2016 31.03.2015 Revenue from Healthcare services 34206.87 31067.54 Revenue from Pharmacy 23236.95 17725.50 Total 57443.82 48793.04 Add: Share in Joint venture 3412.06 2991.49 Total 60855.88 51784.53 25.Other Income `in million Particulars 31.03.2016 31.03.2015 Interest Income 237.09 34.00 Dividend Income 0.75 30.29 Net gain/loss on sale of investments Current investment 8.95 0.28 Long term investment 2.00 103.72 Other non-operating income Income from Sugar Cliniq - 184.08 Profit/Loss on Sale of Asset 0.56 - Net gain on foreign currency transactions and translation 0.01 1.19 Total 249.36 353.56 Add : Share of Joint Ventures 17.55 13.96 Total 266.91 367.52 26.Employee Benefits Expense `in million Particulars 31.03.2016 31.03.2015 Salaries and wages 7983.28 6847.54 Contribution to provident and other funds 573.49 476.35 Employee State Insurance 132.74 108.94 Staff welfare expenses 500.14 407.68 Staff Education Training 9.36 12.56 Bonus 424.06 206.93 Total 9623.07 8060.00 Add: Share in joint venture 619.18 540.25 Total 10242.25 8600.25

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 256 257 The Following Companies in the group have complied with Accounting Standard 15 ‘Employee benefit’ as notified under the Companies Accounting Standards Rules 2006. • Samudr a Healthcare Enterpr ises limi ted • Apol lo Health and Li festyle Limi ted • Apol lo Lavasa Health Corpor at ion Limi ted • Apol lo Gleneagles Hospi tal Limi ted • Apol lo Gleneagles PET – CT Private Limited • Apol lo Hospi tals Internat ional limi ted • Apol lo Munich Health Insur ance Company Limi ted • Famil y Health Plan TP A Limi ted • Indr apr astha Med ical Corpor at ion Limi ted • Apol lo R ajshree Hospi tals Pr i vate Ltd • Assam Hospi tals Ltd • Imper ial Hospi tals Research Centre Limi ted • Stemcyte Ind ia Ther apeut ics Pr i vate Limi ted In consideration of Accounting Standard Interpretation ASI 15 “Notes to the Consolidated Financial Statements” the information relating to the above is given in the separate financial statements of the Parent Company or other companies in the Group is not disclosed. Apollo Hospitals Enterprise Limited Particulars As at 31st March 2016 As at 31st March 2015 Gratuity Earned Leave Gratuity Earned Leave Assumptions Discount Rate 8.00 8.00 8.00 8.00 Rate of Increase in Salaries 6.00 8.00 6.00 8.00 Mortality pre- retirement Indian Assured Lives Mortality 2006-08 Ultimate Disability Nil Nil Nil Nil Attrition 23.00 23.00 23.00 23.00 Estimated rate of return on plan assets 8.00 8.00 8.00 8.00 Retirement 58yrs 58yrs 58yrs 58yrs Investment details on plan assets 100 of the plan Assets are invested on debt instruments `in million Particulars As at 31st March 2016 As at 31st March 2015 Gratuity Earned Leave Total Gratuity Earned Leave Total Present Value of Obligation as at the beginning of the year 410.02 178.47 588.49 336.08 163.57 499.65 Interest Cost 31.24 11.35 42.59 25.55 11.16 36.71 Current Service Cost 47.07 23.26 70.33 36.46 16.35 52.81 Benefit Paid 39.13 73.09 112.22 33.39 48.06 81.45 Actuarial gain / Loss on obligation 76.42 99.77 176.19 45.32 35.45 80.77 Present Value of Obligation end of the year 525.62 239.76 765.38 410.02 178.47 588.49 Defined benefit obligation liability as at the balance sheet is wholly funded by the Company Change in plan assets Fair Value of Plan Assets beginning of the period 336.93 110.17 447.10 256.68 58.49 315.17 Expected return on plan assets 31.16 13.08 44.24 23.74 6.75 30.49 Contributions 103.09 98.30 201.39 105.08 105.08 210.16 Benefits paid 39.13 73.09 112.22 33.39 48.06 81.45 Actuarial gain / loss 10.05 68.28 78.33 15.18 12.09 27.27 Fair Value of Plan Assets as on 31st March 2016 442.10 216.74 658.84 336.93 110.17 447.10 Reconciliation of present value of the obligation and the fair value of the plan assets Fair value of the defined benefit 525.62 239.76 765.38 410.02 178.47 588.49 Fair value of plan assets at the end of the year 442.10 216.74 658.84 336.93 110.17 226.76 Liability / assets 83.52 23.02 106.54 73.09 68.30 141.39 Unrecognised past service cost - - - - - - Liability / assets recognised in the balance sheet 83.52 23.02 106.54 73.09 68.30 141.39 Gratuity Leave Encashment cost for the period

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 258 259 Particulars As at 31st March 2016 As at 31st March 2015 Gratuity Earned Leave Total Gratuity Earned Leave Total Service Cost 47.07 23.26 70.33 36.46 16.35 52.81 Interest Cost 31.24 11.35 42.59 25.55 11.16 36.71 Expected return on plan assets 31.16 13.08 44.24 23.74 6.75 30.49 Actuarial gain / loss 66.37 31.49 97.86 60.50 47.53 108.04 Past Service Cost - - - - - - Net gratuity and Leave Encashment cost 113.52 53.02 166.54 98.77 68.30 167.07 Investment details of plan assets 100 of the plan assets are invested in debt instruments Actual return on plan assets 41.21 81.36 122.57 8.56 5.34 3.22 • Expected return on plan assets is based on expectat ion o f the aver age long term r ate o f return expected on investments of the fund during the estimated term of the obligations. The Gratuity scheme is invested in the Gratuity plan offered by ICICI Bank Life Insurance Corporation of India. The Company provides Leave benefits through annual contribution to the fund managed by HDFC Life. \• The est imate o f future salar y increase considered in actuar ial val uat ion takes ac count o f inflat ion senior i ty promotion and other relevant factors such as demand and supply in the employment market. 27.Finance Cost `in million Particulars 31.03.2016 31.03.2015 Interest expense 1441.23 925.37 Other borrowing costs Bank Charges 168.70 144.58 Brokerage Commission 0.26 0.33 Total 1610.19 1070.28 Add: Share in Joint venture 74.71 108.26 Total 1684.90 1178.54 28.Other Expenses `in million Particulars 31.03.2016 31.03.2015 Power and fuel 973.56 844.03 House Keeping Expenses 277.01 273.25 Water Charges 112.83 95.78 Rent 2112.08 1722.92 Repairs to Buildings 202.62 208.86 Repairs to Machinery 604.95 516.26 Repairs to Vehicles 42.68 53.58 Office Maintenance Others 600.04 444.45 Insurance 94.83 63.27 Rates and Taxes excluding taxes on income 105.25 98.21 Printing Stationery 292.63 277.15 Postage 27.94 21.57 Director Sitting Fees 3.15 3.84 Advertisement Publicity Marketing 1167.10 932.10 Pharmacy Loyalty Discount 651.50 494.73 Travelling Conveyance 484.56 418.32 Subscriptions 13.14 6.48 Security Charges 182.27 144.29 Legal Professional Fees 620.13 406.02 Continuing Medical Education Hospitality Expenses 56.28 33.20 Hiring Charges 75.00 69.58 Seminar Expenses 6.62 6.39 Telephone Expenses 196.62 153.02 Books Periodicals 10.49 11.60 Corporate Social Responsibility Expenses 86.44 77.71 Donations 3.31 25.36 Bad Debts Written off 252.51 258.68 Royalty paid 1.05 1.30 Outsourcing Expenses 1336.07 968.42 Miscellaneous expenses 114.27 89.88 Loss on Sale of Assets 36.14 27.72 Loss on sale Investment 0.01 - Foreign Exchange loss 27.08 10.50 Total 10770.16 8758.47 Add: Share in joint venture 1462.86 1267.12 Total 12233.02 10025.59

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 260 261 a. Payment to auditors as statutory auditors `in million Particulars 31.03.2016 31.03.2015 Audit Fees 9.97 9.21 Tax Audit Fees 1.57 1.57 Certification Fees 1.28 1.82 Reimbursement of Expenses 0.58 0.63 Total 13.40 13.23 Inclusive of Service Tax b. Directors travelling included in travelling and conveyance amounts to `36.79 million `50.39 million. 28A Exceptional Item Exceptional Item represents impairment in the value of certain investments amounting to `112.30 million and arrears of bonus for FY 2014-15 of `144.48 million being the Bonus payable to employees due to the amendment to the Payment of Bonus Amendment Act 2015 and profit on sale of investments by Apollo Health and Lifestyle Limited amounting to `548.36 million. 29. Contingent Liabilities `in million Particulars 31.03.2016 31.03.2015 Contingent liabilities and commitments to the extent not provided for i Contingent Liabilities a Claims against the Company not acknowledged as debt 1345.90 803.48 b Guarantees Bank Guarantees 172.84 312.11 Corporate Guarantees 2871.00 1505.00 c Other money for which the Company is contingently liable - Customs Duty 99.70 99.70 Income Tax 329.97 396.69 Service Tax 74.47 62.53 EPCG 3792.60 2412.60 Value Addded Tax 24.88 2.27 8711.36 5594.38 ii Commitments a Estimated amount of contracts remaining to be executed on capital account and not provided for 13524.18 10521.83 13524.18 10521.83 Total I + II 22235.54 16116.21 Family Health Plan TPA Limited 1. The Commissioner of Customs Central Excise and Service Tax-Hyderabad-II Commissionerate vide Adjudication Order No.08/2008-Adjn-ST dated 24-03-2008 levied a Penalty u/s. 76 of the Finance Act towards delayed remittance of Service Tax payable Amount of penalty not quantified. The Company has preferred an appeal against the above Order with The Hon’ble Customs Excise and Service Tax Appellate Tribunal South Zonal Bench – Bangalore and got the appeal admitted and also got the stay order from the Hon’ble Court for pre-deposit of penalty. The Hon’ble Customs Excise and Service Tax Appellate Tribunal South Zonal Bench – Bangalore subsequently has held that no penalty is liable to be imposed and therefore the question of enhancing the penalty or revising the penalty would not arise. Therefore the appeal filed by the Revenue cannot be sustained and has to be rejected. However the Commissioner of Central Excise Customs and Service Tax Hyderabad-II Commissionerate has filed a petition in the High Court of Judicature at Hyderabad to grant stay against the order dated 25-05-2015 passed by CESTAT Bangalore. Accordingly the Court has given interim stay as prayed for. 2. The Company received a Show Cause Notice from the Income Tax Department during the Financial Year 2009-10 towards payment of TDS on payments made to the Hospitals on behalf of Insurance Companies along with the Interest for a period of six preceding financial years based on the CBDT Circular No.08 of November 2009 and amount not quantified. The Company had gone on an appeal against the Show Cause Notice from the Income Tax Department and also CBDT Circular No.08 of November 2009 in Chennai High Court for applicability of TDS on payments made to Hospitals as reimbursement of Expenses. The same is admitted and granted Stay of Operations of Show Cause Notice and also that of CBDT Circular. In continuation of the above Based on the Circular 8/2009 dated 24 November 2009 issued by the Central Board of Direct Taxes during the current year the Income Tax Department has raised a demand of `81.30 million for the years 2004-05 to 2009-10 on account of Interest on non-deduction of tax and liability towards tax ought to have been deducted at source on payments effected to Hospitals on behalf of the Insurance companies. The Company has contested against the demand and has preferred an appeal before the Commissioner of Income Tax Appeals on various Grounds including non-applicability of the provisions of Deduction of tax at source in the hands of the company on payment effected to hospitals. Pending the disposal of the appeal by the appellate authorities a reliable estimate of the existing obligation if any cannot be reasonably ascertained and hence not provided for. Pending the disposal of the appeal against the order for TDS liability the company has requested the Income Tax Department to adjust the refunds amounting to `57.0 million against the demand of `81.30 million and stay the collection of the balance demand.

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 262 263 Apollo Munich Health Insurance Company Limited ` In million Particulars 31.03.2016 31.03.2015 Claims other than against policies not acknowledged as debts by the Company 18.90 13.90 Guarantees given by or on behalf of the Company 2.18 2.38 Others 0.50 0.70 Represents amounts payable on cancellation of a service contract. Indraprastha Medical Corporation Limited In respect of other matters `11.89 million `11.89 million. 30. Utilisation of amounts from securities issued During the current year - Nil ` 2000 million 31. Earnings Per Equity Share Particulars 31.03.2016 31.03.2015 Profit before extraordinary items attributable to equity shareholders Amount ` in million A1 3310.12 3117.2 Weighted Averaged Equity Shares outstanding during the year Nos - B1 139125159 139125159 Basic Earnings Per Share before extra-ordinary item - A1/B1 23.79 22.41 Diluted Earningsbefore extraordinary items attributable to equity shareholders Amount ` in million A2 3310.12 3117.2 Weighted Averaged Equity Shares outstanding for Diluted Earnings Per Share. Nos - C1 139125159 139125159 Diluted Earnings Per Share before extra-ordinary item - A2/C1 23.79 22.41 Profit after extraordinary items attributable to equity shareholders Amount ` in million A 3310.12 3399.03 Weighted Averaged Equity Shares outstanding during the year Nos - B 139125159 139125159 Basic Earnings Per Share after extra-ordinary item - A/B 23.79 24.43 Diluted Earnings after extraordinary items attributable to equity shareholders Amount ` in million A3 3310.12 3399.03 Weighted Averaged Equity Shares outstanding for Diluted Earnings Per Share. Nos - C 139125159 139125159 Diluted Earnings Per Share after extra-ordinary item - A3/C 23.79 24.43 32. Related Party Disclosures: A. List of Related Parties where control exists and other related parties with whom the Company had transactions and their relationships: In case of other related parties there are no transactions with the Company. ` in million SL.No Name of related Parties Nature of relationship 1 Apollo Home Healthcare India Ltd Subsidaries 2 AB Medical Centres Limited 3 Apollo Health and Life Style Limited 4 Samudra Health Care Enteprises Limited 5 Imperial Hospitals and Research Centre Limited 6 Apollo Hospitals UK Limited 7 Apollo Nellore Hospitals Limited 8 Apollo Rajshree Hospitals Private Limited 9 Western Hospitals Corporation P Limited 10 Sapien Bio Sciences Private Limited 11 Total Health 12 Apollo Healthcare Technology Solutions Limited 13 Apollo Home Healthcare Limited 14 Assam Hospitals Limited 15 Apollo Hospitals Singapore Pte Limited 16 Apollo Lavasa Health Corporation Limited 17 Apollo Sugar Clinics Limited Step down subsidaries 18 Akeso Healthcare Private Limited 19 Alliance Dental Care limited 20 Apollo Cosmetic Surgical Centre Private Limited 21 Apollo Dialysis Private Limited 22 Apollo Gleneagles Hospital Limited Joint Ventures 23 Apollo Hospitals International Limited 24 Apollo Munich Health Insurance Company Limited 25 Apollo Gleneagles PET-CT P Limited 26 Future Parking Private Limited 27 Apokos Rehab Pvt Ltd 28 Family Health Plan TPA Limited Associate Companies 29 Indraprastha Medical Corporation Limited 30 Stemcyte India Therapautics Private Limited 31 Smt. Suneeta Reddy Key Management Personnel 32 Shri. Krishnan Akhileswaran 33 Shri. S M Krishnan 34 Dr. Prathap C Reddy Relatives of Key Management Personnel Relative of Smt. Suneeta Reddy 35 Smt. Preetha Reddy 36 Smt. Shobana Kamineni 37 Smt. Sangita Reddy

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 264 265 SL.No Name of related Parties Nature of relationship 38 Apollo Sindoori Hotels Limited Enterprises over which Key Management Personnel and/or their relatives are able to exercise significant influence 39 Faber Sindoori Management Services P Limited 40 Lifetime Wellness Rx International Limited 41 P Obul Reddy Sons 42 Keimed Private Limited 43 Medvarsity Online Limited 44 Apollo Hospitals Educational Trust 45 Apollo Mumbai Hospital Limited 46 Kurnool Hospitals Enterprise Limited 47 AMG Healthcare Destination Private Limited 48 Apollo Hospitals Educational and Research Foundation 49 Palepu Pharma Private Limited 50 Medihauxe International Private Limited 51 Vardhman Pharma Distributors Private Limited 52 Focus Medisales Private Limited 53 Srinivasa Medisales Private Limited 54 Meher Distributors Pvt Ltd 55 Lucky Pharmaceuticals Pvt Ltd 56 Neelkanth Drugs Pvt Ltd 57 Dhruvi Pharma Pvt Ltd 58 Apollo Educational Infrastructure Services Limited 59 Apollo Health Resources Limited 60 Dishnet Wireless Limited 61 Healthnet Global Limited 62 Associated Electrical Agencies 63 APEX Agencies 64 Trivitron Healthcare Private Limited Significant Control Alliance Medicorp India Limted 65 Munchener Ruckversicherung Gesellschaft Associates of Apollo Munich Health Insurance Company Limited 66 Sahayadri City Management Fellow Subsidiaries of Apollo Lavasa Health Corporation Limited 67 My City Technology Limited 68 Full Spectrum Adventure Limited 69 Lavasa Hotel Ltd 70 Whistling Trust Facilities Services Limited 71 Spotless Laundry Services Limited 72 Dasve Convention Center Limited 73 Reasonable Housing Limited 74 Lavasa Corporation Limited Significant Influence Apollo Lavasa Health Corporation Limited SL.No Name of related Parties Nature of relationship 75 Green Channel Travel Services Div of IRM Limited Significant Influence Apollo Hospital International Limited 76 IRM Enterprises Pvt Ltd 77 Marg Limited Holding Company of Future Parking Private Limited 78 Cadila Pharmaceuticals Limited Significant Control Apollo Hospital International Limited 79 Shri. Antony Jacob Key Management Personnel of Apollo Munich Health Insurance Company Limited 80 Apollo-Amrish Oncology Services Pvt Ltd Joint Venture of Apollo Hospital International Ltd 81 Shri. Ashok Bajpai Key Management Personnel of Apollo Rajshree Hospitals Private limited 82 Shri. Devendra Bhargava 83 Warasgon Power Supply Limited Significant Influence Apollo Lavasa Health Corporation Ltd 84 Matrix Agro Private Limited Significant Influence Imperial Hospital and Research Center Ltd 85 IRM Trust Significant Influence Apollo Hospital International Ltd 86 Apollo CVHF Limited Subsidiary of Apollo Hospital International Ltd 87 Rajshree Engineering Private Limited Significant Influence Apollo Rajshree Hospital Private Ltd 88 Dr. Tonmoy Das Key Management Personnel of Assam Hospitals ltd 89 Shri. Kaushik Barua 90 Shri. Kamal Chandra Das 91 Shri. Sauvik Barua 92 Shri. Neeraj Garg Key Managerial Personnel of Apollo Health and Lifestyle Limited 93 Gleneagles Management Services Pte Ltd Significant Influence Apollo Gleneagles Hospital Limited Related Party Transaction ` in million S.No Name of Related Parties Nature of Transaction 31.03.2016 31.03.2015 1 Family Health Plan TPA Limited a Investment in Equity 4.90 4.90 b Receivables as at year end 8.69 29.98 c Transactions during the year 593.06 76.50 2 Indraprastha Medical Corporation Limited a Investment in Equity 393.72 393.72 b Receivables as at year end 399.73 402.04 c Dividend received 36.34 36.43 d Transactions during the year 281.85 1668.56 e Claim Payments 106.75 80.63 3 Stemcyte India Therapautics Private Limited a Investment in Equity 80.00 80.00 4 Dr. Prathap C Reddy a Remuneration paid 136.19 152.82 5 Smt. Preetha Reddy a Remuneration paid 48.20 49.25 6 Smt. Suneeta Reddy a Remuneration paid 48.20 50.70 7 Smt. Sangita Reddy a Remuneration paid 46.99 49.25 8 Smt. Shobana Kamineni a Remuneration paid 49.66 49.97

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 266 267 S.No Name of Related Parties Nature of Transaction 31.03.2016 31.03.2015 9 Apollo Sindoori Hotels Limited a Receivables as at year end 10.84 30.07 b Transaction During the Year 620.11 539.46 10 Faber Sindoori Management Services Private Limited a Payables as at year end 46.13 109.70 b Transactions during the year 671.15 539.46 c Receivables at year end - 0.10 11 Lifetime Wellness Rx International Limited a Transactions during the year 17.97 5.57 b Receivables as at year end 13.21 6.82 12 P. Obul Reddy Sons a Transactions during the year 52.06 54.20 b Receivables as at year end 12.62 15.83 13 Keimed Private Limited a Payables as at year end 92.53 61.57 b Transactions during the period 5147.70 4828.14 14 Medvarsity Online Limited a Receivables as at year end 3.30 2.60 b Transactions during the year 5.99 2.75 15 Apollo Mumbai Hospital Limited a Receivables as at year end - 2.69 b Transactions during the period - 6.80 16 Dishnet Wireless Limited a Transactions during the year 6.06 8.55 17 Kurnool Hospitals Enterprise Limited a Investment in Equity 1.73 1.73 b Transactions during the year 3.84 - cReceivables as at year end 5.90 - 18 AMG Health Care Destination Private Limited a Investment in Equity 12.33 12.33 19 Cadila Pharmaceuticals Limited aReceivables as at year end 0.79 - b Transactions during the year 3.31 9.58 20 Green Channel Travel Services Div of IRM Limited a Transactions during the year 4.51 6.35 b payable as at year end 0.19 - 21 IRM Enterprises Pvt Ltd a Transactions during the year 0.11 0.10 22 Full Spectrum Adventure Limited a Project and Other services Received - 0.02 23 Apollo Hospital Educational Trust aTransactions during the year 30.13 0.63 bReceivables as at year end 288.25 337.85 24 Apollo Hospitals Educational and Research Foundation aTransactions during the year 12.30 11.90 bReceivables as at year end 155.17 149.93 25 Sahayadri City Management a Project and Other services Received 1.42 1.86 b Included in Trade Payables - 3.99 26 Apollo Amrish Oncology services pvt ltd a Investment in Equity 333.50 9.05 bTransactions during the year 192.78 38.08 cReceivables as at year end 57.65 - d Reimbursement of expenses - 45.66 27 Shri.Antony Jacob a Expenses towards services rendered 27.38 28.43 S.No Name of Related Parties Nature of Transaction 31.03.2016 31.03.2015 28 Reasonable Housing Limited a Project and Other services Received 0.42 0.61 29 Meher Distributors Private Limited a Payable at year end 15.44 11.77 b Transactions during the year 402.22 32.10 30 Lucky Pharmaceuticals Private Limited a Payable at year end 44.17 41.35 b Transactions during the year 931.61 27.19 31 Neelkanth Drugs Private Limited a Payable at year end 74.32 47.18 b Transactions during the year 1110.79 163.49 32 Dhruvi Pharma Private Limited a Payable at year end 16.48 18.96 b Transactions during the year 330.47 8.40 33 Palepu pharma Private Limited a Payable at year end 90.29 48.78 b Transactions during the year 3329.95 423.94 34 Medihauxe International Private lImited a Payable at year end 20.26 42.60 b Transactions during the year 430.91 69.56 35 Vardhman Pharma Distributors Private Limited a Payable at year end 36.81 27.74 b Transactions during the year 731.03 121.13 36 Focus Medisales Private Limited a Payable at year end 21.90 15.41 b Transactions during the year 460.49 59.68 37 Srinivasa Medisales Private Limited a Payable at year end 27.76 21.26 b Transactions during the year 588.15 86.84 38 Shri. Ashok Bajpai a Professional fee 5.04 4.69 39 Devendra Bhargava a Professional fee 0.90 1.38 40 Warasgon Power Supply Limited aProject and other services 0.02 - 41 My City Technology Limited aProject and other services 0.06 0.23 42 Whistling Trust Facility Service aProject and other services 1.29 1.99 43 Lavasa Hotel ltd aOperating Income 0.04 0.07 44 Dasve Convention Center Limited aOperating Income 0.02 0.03 45 Matrix Agro Private Limited a Purchases 7.69 - b Payables 2.68 - 46 IRM Trust a Investment by trust in Equity 428.02 378.02 b Transactions during the year 50.00 2.50 47 Apollo CVHF Limited a Investment in Equity 101.00 - b Transactions during the year 102.82 - c Receivables as at year end 1.82 - 48 Dr Tonmoy Das a Transactions during the year 15.30 - b Payable as at year end 0.46 0.35 49 Shri. Kaushik Barua a Transactions during the year 2.13 - 50 Shri. Kamal Chandra Das a Transactions during the year 6.53 - 51 Shri. Sauvik Barua a Transactions during the year 3.39 -

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 268 269 S.No Name of Related Parties Nature of Transaction 31.03.2016 31.03.2015 52 Rajshree Engineering Pvt. Limited aInvestment by related party 49.08 49.08 53 Lavasa Corporation Limited aOperating income 3.68 3.61 bInterest on Inter corporate Deposits 0.02 15.56 cInterest Accured and Due 62.24 - dproject and other service rendered 0.21 0.28 eInter corporate deposits outstanding 97.24 97.24 fEquity Share capital 6.27 8.00 gTrade receivables 2.88 - 54 Trivitron Healthcare Pvt. Ltd aConsumable and salary Reimbursement 4.24 - bPayable as at year end 4.24 - 55 Neeraj Garg aRemuneration Paid 17.65 - 56 Apex Agencies aTransactions during the year 0.11 0.10 57 Associated Electrical Agencies aTransactions during the year 0.16 0.15 58 Muchener Ruckversicherung gesellschaft aReceivables as at year end 0.02 - 59 Gleneagles Management Services Pvt Ltd. aTrade mark management and Technical service 118.46 103.04 bTrade payable 118.21 104.33 33. Leases In respect of Non- cancellable Operating Leases Lease payments recognized in the Statement of Profit and Loss is `2112.08 million `1722.92 million ` in million Particulars 31.03.2016 31.03.2015 Not later than one year 1271.28 555.12 Later than one year and not more than five years 8172.63 3648.08 Later than Five years 13948.43 15885.84 Lease agreements are renewable for further period or periods on terms and conditions mutually agreed between the lessor and AHEL. Variations/Escalation clauses in lease rentals are made as per mutually agreed terms and conditions by the lessor and AHEL. Apollo Gleneagles Hospitals Limited i In respect of Non-cancellable finance leases ` in million Particulars 31.03.2016 Minimum lease Payments Present value of Minimum lease Payments Not later than one year 2.67 1.85 Later than one year and not later than five years 6.41 5.45 Total 9.08 7.30 ii Imperial Hospital and Research Centre Limited: ` in million Particulars 31.03.2016 Present value of Minimum lease Payments Not later than one year 11.28 Later than one year and not later than five years 55.88 Total 67.16 34. Impairment Apollo Hospitals Enterprise Limited During the year 2002-03 on a review of fixed assets certain selected medical equipments were identified and impaired. For the current year on a review as required by Accounting Standard 28 ‘ Impairment of Assets’ the management is of the opinion that no impairment loss or reversal of impairment loss is required as conditions of impairment do not exist. 35. Fixed Assets Imperial Hospital and Research Center Limited Land and Buildings – WDV as on 31.03.2016 – `992.10 million During the financial year 2014-15 the Company has received an order from the Special Deputy Commissioner of Bangalore alleging non-compliance of allotment conditions by the Company of the land on which the hospital building is constructed. Further the said order of the authority also demands surrendering the land and the building to the state government.

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 270 271 The Company has approached some reputed and senior advocates who have expertise and experience in handling such land related matters and they have all unanimously opined that a there is no violation on the part of the Company of any terms and condition of the allotment b the order passed by the said authority is beyond jurisdiction and is opposed to the basic principles of natural justice as the Company has not been provided with an opportunity to make a representation and c irrespective of the said order there is no threat to the valid marketable title to the property held by the Company. The company has made a written representation to the concerned authorities highlighting these facts and requesting withdrawal of the order. The State government has taken cognizance of the company representation and is in the process of reviewing the said order of the Deputy Commissioner. The company is confident that there will be no threat to the present status of the land and building considering the progress of the matter and the response received from the authorities. Given the above-mentioned facts the management is of the unequivocal opinion that no assets have been impaired during the year and there is no threat to the continuity of the operations of the company or its revenue earning capabilities. 36. General Information a. Apollo Hospitals Enterprise Limited On review of the operations of setting up the Hospital in Noida the Company has re-assigned the lease agreement between itself and the lessor to its associate Indraprastha Medical Corporation Limited by extinguishing its rights and privileges in the original lease deed dated 27th October 2001. Unrealised amounts on project development and pre-operative project expenses incurred at the Bilaspur Hospital amounting to `56.62 million are included in advances and deposits account. The above expenses incurred on project will be amortised over the balance lease period of 4 years. The balance yet to be amortised as on 31.03.2016 is `12.58 million `15.73 million. b. Apollo Munich Health Insurance Company Limited i. Encumbrances The Company has all the assets within India. All the assets of the Company are free from any encumbrances except deposits in banks amounting to `2.28 million `2.38 million. The deposits have been placed with banks for the purposes of executing bank guarantees in favour of hospitals towards cash-less arrangements deposits given to sales tax office. ii. Commitments made and outstanding for `in million Particulars 31.03.2016 31.03.2015 Fixed Assets 17.52 9.76 iii. Claims less reinsurance paid to claimants: `in million Class of Business In India Outside India 31.03.2016 31.03.2015 31.03.2016 31.03.2015 Miscellaneous 4831.51 3921.62 17.19 8.85 iv. Age-wise breakup of claims outstanding `in million Class of Business Outstanding for more than six months Outstanding for six months or less 31.03.2016 31.03.2015 31.03.2016 31.03.2015 Miscellaneous 91.61 43.06 496.59 438.44 v. Premium less reinsurance written during the year: `in million Class of Business Outstanding for more than six months Outstanding for six months or less 31.03.2016 31.03.2015 31.03.2016 31.03.2015 Miscellaneous 8639.18 6814.62 Nil Nil No premium income is recognized on "varying risk pattern" basis. vi. Extent of risk retained and reinsured: `in million Class of Business Outstanding for more than six months Outstanding for six months or less 31.03.2016 31.03.2015 31.03.2016 31.03.2015 Miscellaneous 78 79 22 21

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 272 273 vii. Value of Contracts in relation to Investments: `in million Paticulars 31.03.2016 31.03.2015 Purchase where deliveries are pending Nil Nil Sales where payments are overdue Nil Nil viii. All the investments held by the Company are performing assets. ix. The Company does not have any investment property as at March 31st 2016. x. The investments as at year-end have not been allocated to Policy Holders Shareholders accounts since the same are not earmarked separately. xi. The historical cost of investments in mutual funds which have been valued on fair value basis is `1010.98 million `496.88 million. xii. Expenses relating to outsourcing business development and marketing support are given below: `in million Operating expenses 31.03.2016 31.03.2015 Outsourcing Expenses 427.05 374.60 Marketing Support 334.30 218.56 Business Promotion 219.76 342.32 xiii. Sector Wise Business Disclosure of sector-wise business based on gross direct written premium GWP is as under: `in million Particulars as at 31st March 2016 as at 31st March 2015 GWP `in million No. of Lives of GWP GWP `in million No. of Lives of GWP Rural 643.70 180846 6.30 496.65 177549 6.19 Social 3.74 37392 0.04 5.95 79702 0.07 Urban 9574.32 4703563 93.66 7528.70 3622917 93.74 xiv. Disclosure of Fire and Marine Revenue accounts: As the Company operates in single insurance business class viz. Miscellaneous Insurance Business the reporting requirements as prescribed by IRDA with respect to presentation of Fire and Marine Insurance revenue accounts are not applicable. There are no dues outstanding for more than 45 days during the year which are payable to Micro Small and Medium Enterprises. This information pursuant to the provisions of Micro Small and Medium Enterprises Development Act 2006 is determined to the extent such parties have been identified on the basis of information available with the Company. xv. Summary of Financial Statements is provided as under: `in million Sl. No. Paticulars 31.03.2016 31.03.2015 Operating Results: 1 Gross Premium Written 10221.80 8610.55 2 Net Earned Premium Income 8639.20 6558.85 3 Income from Investments net 426.20 350.44 4 Other Income 18.30 - 5 Total Income 9083.70 6909.28 6 Commission Net of Reinsurance 501.80 453.34 7 Brokerage 181.31 8 Operating Expenses 2858.00 2557.79 9 Claims Incurred 5006.40 4134.27 10 Operating Profit/Loss 172.70 236.11 11 Total Income under Shareholders Account 247.30 243.10 12 Profit /Loss before tax 74.60 6.10 13 Provision for Tax - 0.32 14 Profit/Loss after tax 74.60 6.65 Miscellaneous: 15 Policy holders’ Account: Not applicable being Non – Life Insurance Co. Total Fund Total Investments Yield on investments 16 Shareholders’ Account: Not applicable being Non – Life Insurance Co. Total Fund Total Investments Yield on investments 17 Paid Up Equity Capital 3569.20 3492.30 18 Net Worth 2746.20 2543.30 19 Total Assets 10406.10 8937.20 20 Yield on total investments 8.92 9.27 21 Earnings Per Share ` 0.21 0.02 22 Book value per Share` 7.69 7.28 23 Total Dividend Nil Nil 24 Dividend Per share Nil Nil

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 274 275 xvi. Accounting Ratios are provided as under: Performance Ratios 31.03.2016 in / times 31.03.2015 in / times Gross Direct Premium to Net Worth Ratio Gross premium for the current year divided by paid up capital plus free reserves 3.72 3.16 Growth Rate of Networth Shareholders funds as at the current balance sheet date divided by shareholders funds as at the previous balance sheet date 8 12 Net Retention Ratio Net premium divided by gross premium including RI acceptance 78 79 Net Commission Ratio Commission net of reinsurance for a class of business divided by net premium 6 7 Expenses of Management to Gross Direct Premium Expenses of management plus commission paid divided by the total gross direct premium 39 43 Expenses of Management to Net Written Premium Ratio Expenses of management plus Direct commission paid divided by the NWP 46 50 Net Incurred Claims to Net Earned Premium 65 63 Combined Ratio Net Incurred claims divided by NEP plus Expense of management including Net Commission divided by NWP 104 107 Technical Reserves to Net Premium Ratio Reserve for unexpired risks plus premium deficiency reserve plus reserve for outstanding claims divided by net premium 0.72 0.76 Underwriting Balance Ratios Underwriting profit divided by net premium for the respective class of business 0.08 0.09 Operating Profit Ratio Underwriting profit plus investment income divided by net premium 2.00 3.00 Liquid Assets to Liability Ratio Liquid assets of the insurer divided by the policy holders liabilities 0.56 0.72 Net Earnings Ratio Profit after tax divided by net premium 0.86 0.10 Return on Net Worth Profit after tax divided by net worth 2.72 0.26 Available Solvency Margin to Required Solvency Margin Ratio 1.51 1.72 NPA Ratio - - Indraprastha Medical Corporation Limited a. Under the terms of the agreement between the Government of the Delhi and the Company the Hospital project of the Company had been put up on the land belonging to the Government of NCT of Delhi. The Government of NCT of Delhi is committed to meet the expenditure to the extent of `154.78 million out of IMCL Building fund account funds earmarked for the period together with the interest thereon for construction of definite and designated buildings while the balance amount of the cost of the building will be borne by the Company. As at 31st March 2016 the aforesaid fund together with interest thereon amounting to `192.36 million have been utilized towards progress payments to contractors advances to contractors payments for materials etc. The ownership of the building between Government of NCT of Delhi and the Company will be decided at a future date keeping in view the lease agreement. b. On a Public Interest Litigation PIL regarding free treatment in the hospital the Hon’ble Delhi High Court vide its order dated 22nd September 2009 has held that free treatment provided by the hospital as per the terms of lease deed with Government of National Capital Territory of Delhi shall be inclusive of medicines and consumables. In response to the said order the Company filed a Special Leave Petition in the Hon’ble Supreme Court for appropriate directions with a prayer to stay the judgement of the Hon’ble Delhi high court. The Hon’ble Supreme Court of India has admitted the Special Leave Petition and passed an interim order on 30.11.2009. In pursuance of the interim order the Hospital is charging for medicines medical consumables from patients referred by the Govt. of Delhi for free treatment in the Hospital. As the matter of sub judice the financial impact in the matter can be quantified only upon a decision by the Hon’ble Supreme Court of India. 37. Consolidated Segment Reporting ` in million Particulars 31.03.2016 31.03.2015 1. Segment Revenue Net sales / Income from each Segment a Healthcare 36735.63 33330.74 b Pharmacy 23236.95 17725.50 c Others 1186.55 1132.15 Sub - Total 61159.13 52188.39 Less : - Intersegment Revenue 36.34 36.34 Net sales / Income from operations 61122.79 52152.05 2. Segment Results Profit / Loss before Tax and interest from each segment a Healthcare 5008.74 5067.74 b Pharmacy 560.45 389.77 c Others 349.81 502.21 Sub - Total 5919.00 5959.72 Less : i Interest Net 1684.90 1178.54 ii Other un-allocable expenditure net of - - un-allocable income 362.00 362.00 Profit Before Tax and Extraordinary item 4340.89 4419.18 Add: Extra Ordinary Item - 281.83 Less:Exceptional Items 291.58 146.88 Profit Before Tax 4632.47 4554.13 Less : i Current tax 186.12 559.93 ii Tax for earlier years net - -

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 276 277 Particulars 31.03.2016 31.03.2015 iii Deferred tax liability 824.46 772.05 Add: Deferred Tax Asset 8.39 31.97 Profit After Tax before Minority Interest 3161.50 3254.12 Less : Mionority Interest 73.37 51.39 Add : Share of Associates Profits 75.26 93.52 Net Profit Relating to the Group 3310.12 3399.03 3. Segment assets a Healthcare 60922.57 50513.16 b Pharmacy 7005.00 5967.00 c Others 2935.37 3609.45 Total 70862.94 60089.61 Unallocated Corporate Assets 3754.30 2849.59 Goodwill on consolidation 2120.22 1652.45 Deferred Tax Asset 134.18 202.77 Total Assets as per Balance Sheet 76871.64 64794.42 4. Segment liabilities a Healthcare 6404.19 6278.40 b Pharmacy 814.00 561.00 c Others 786.82 664.15 Total 8005.01 7503.55 Unallocated Corporate Liabilities 28049.68 20625.10 Shareholders Funds 34536.53 31713.31 Minority Interest 1303.21 730.14 Deferred Tax Liability 4977.22 4222.32 Total Liabilities as per Balance Sheet 76871.64 64794.42 5. Segment capital employed a Healthcare 54518.37 44234.39 b Pharmacy 6191.00 5406.00 c Others 2148.56 2945.15 Total 62857.93 52585.54 6. Segment capital expenditure incurred a Healthcare 7219.00 7995.95 b Pharmacy 1501.00 310.00 c Others 9.50 10.27 Total 8729.50 8316.22 7. Segment Depreciation a Healthcare 2248.62 1917.12 b Pharmacy 272.00 191.00 c Others 12.17 8.39 Total 2532.79 2116.51 38. Figures of the current year and previous year have been shown in million. 39. Figures in brackets relate to the figures for the previous year. 40. Previous year figures have been regrouped and reclassified wherever necessary to confirm with current years classification. 41. Where disclosures have not been made by subsidiaries associates or joint ventures in their independent Notes the figures relate to those of the Parent Company alone. As per our Report annexed For and on behalf of the Board of Directors For S. Viswanathan LLP Krishnan Akhileswaran Dr. Prathap C Reddy Chartered Accountants Chief Financial Officer Executive Chairman Firm Registration No. 004770S/S200025 V C Krishnan S M Krishnan Preetha Reddy Partner Vice President - Finance Executive Vice Chairperson Membership No. 022167 Company Secretary 17 Bishop Wallers Avenue West Suneeta Reddy Mylapore Chennai - 600 004 Managing Director Place : Chennai Date : 25th May 2016

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Consolidated Financials Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 278 279 Particulars 31.03.2016 31.03.2015 A Cash Flow from operating Activities Net profit before tax and extraordinary items 4163.70 4554.13 Adjustment for: Depreciation Amortization 2532.79 2116.51 Profit on sale of investment 467.72 104.23 Loss on sale of asset 39.44 31.73 interest paid 1684.90 1178.54 Misc.Exp.written off - - Foreign Exchange gain / loss 22.68 8.10 Interest received 248.87 45.02 Dividend received 456.65 31.73 Provision for diminution of investments 112.30 - Short term capital gain 569.71 378.30 Extraordinary item - 281.83 Provision for wealth tax 10.76 2.51 Provision for bad debts 3.62 - Bad debts written off 256.50 3811.82 268.24 2748.32 Operating profit before working capital changes 7975.52 7302.45 Adjustment for: Trade or other receivables 1058.83 1341.35 Inventories 920.97 721.78 Trade payables 827.52 1308.30 Others 1164.65 2316.93 853.45 1608.28 Cash generated from operations 5658.59 5694.17 Foreign Exchange gain / loss 22.68 8.10 Taxes paid 1404.38 1002.81 Cash flow before extraordinary items 4231.53 4699.46 Net Cash from operating activities 4231.53 4699.46 B Cash Flow from Investing activities Purchase of fixed assets 8311.07 8680.61 Sale of fixed assets 5.14 25.88 Purchase of investments 655.76 824.77 Investment In Subsidiaries Joint Ventures Associates Sale of investments 1826.88 1494.31 Interest received 248.87 45.75 Dividend received 45.94 66.91 `in million Consolidated Cash flow Statement For the year ended 31st March 2016 Particulars 31.03.2016 31.03.2015 Cash flow before extraordinary item 6840.00 7872.53 Extraordinary Item - 281.83 Net cash used in Investing activities 6840.00 7590.70 C Cash flow from financing activities Proceeds from issue of equity shares 200.94 406.79 Proceeds from issue of share premium 5.14 10.69 Proceeds from long term borrowings 9121.83 6263.26 Proceeds from short term borrowings 1450.51 390.23 Repayment of finance/lease liabilities 4752.29 1172.18 Interest paid 1684.90 1175.72 Dividend paid 1616.31 799.97 Net cash from financing activities 2724.92 3923.10 Net increase in cash and cash equivalents A+B+C 116.45 1031.86 Cash and cash equivalents opening balance 3859.23 2741.47 Cash and cash equivalents Closing balance 3975.68 3773.33 Component of Cash and cash equivqlents Cash on Hand 162.25 129.87 Balance with Banks 1 Available with the Company for day to day operations 3783.48 3615.05 2 Amount available in unclaimed dividend and unclaimed deposit payment accounts. 29.95 28.41 Total 3975.68 3773.33 As per our Report annexed For and on behalf of the Board of Directors For S. Viswanathan LLP Krishnan Akhileswaran Dr. Prathap C Reddy Chartered Accountants Chief Financial Officer Executive Chairman Firm Registration No. 004770S/S200025 V C Krishnan S M Krishnan Preetha Reddy Partner Vice President - Finance Executive Vice Chairperson Membership No. 022167 Company Secretary 17 Bishop Wallers Avenue West Suneeta Reddy Mylapore Chennai - 600 004 Managing Director Place : Chennai Date : 25th May 2016

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Annual Report 2015–16 | APOLLO HOSPITALS ENTERPRISE LIMITED | 280 NOTES 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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Apollo Hospitals Enterprise Limited CIN : L85110TN1979PLC008035 Regd. Office: No.19 Bishop Garden Raja Annamalai Puram Chennai – 600 028 Secretarial Dept: Ali Towers III Floor No.55 Greams Road Chennai – 600 006 E-mail: apollosharesvsnl.net : Website: www.apollohospitals.com Phone: +91 044 28290956 044 28293896 Board: 28293333 Ext. 6681 designed by STAMPA—the brand communications company chennai www.stampa.co.in

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