slide 1: Annual Report 2015–2016
slide 2: 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
slide 3: 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
slide 4: 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
slide 5: 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
slide 6: 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
slide 7: 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
slide 8: 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
slide 9: 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
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slide 10: 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
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slide 11: 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
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18 19
slide 12: 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
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slide 13: 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
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slide 14: 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
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slide 15: 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
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26 27
slide 16: 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.
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slide 17: 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
slide 18: 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
slide 19: 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
slide 20: 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
slide 21: 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
slide 22: 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
slide 23: 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
slide 24: 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
slide 25: 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
slide 26: 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 |
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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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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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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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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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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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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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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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| APOLLO HOSPITALS ENTERPRISE LIMITED |
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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.
slide 35: 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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| 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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| 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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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 -
slide 39: 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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2015–16
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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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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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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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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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| 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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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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| APOLLO HOSPITALS ENTERPRISE LIMITED |
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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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• 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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`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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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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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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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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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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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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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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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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• 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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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| 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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| 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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| APOLLO HOSPITALS ENTERPRISE LIMITED |
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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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| 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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| 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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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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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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| APOLLO HOSPITALS ENTERPRISE LIMITED |
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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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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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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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` 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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Annual Report
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| APOLLO HOSPITALS ENTERPRISE LIMITED |
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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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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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| APOLLO HOSPITALS ENTERPRISE LIMITED |
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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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Annual Report
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| 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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| 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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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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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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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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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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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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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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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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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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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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Annual Report
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| 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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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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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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Annual Report
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| APOLLO HOSPITALS ENTERPRISE LIMITED |
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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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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
slide 124: 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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| APOLLO HOSPITALS ENTERPRISE LIMITED |
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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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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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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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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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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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| APOLLO HOSPITALS ENTERPRISE LIMITED |
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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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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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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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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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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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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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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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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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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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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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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
slide 141: 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
slide 142: 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.
slide 143: 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
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