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Notes to Accounts of Apollo Hospitals Enterprise Ltd.

Mar 31, 2016

1. 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.

2. 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.

3. 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.

4. Unrealised amounts on project development and pre-operative project expenses incurred at Bilaspur Hospital amounting to Rs.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 Rs.12.58 million (Rs.15.73 million).

5. Figures of the current year and previous year have been shown in millions.

6. Figures in brackets relate to the figures for the previous year.

7. Previous year figures have been regrouped and reclassified wherever necessary to confirm with current year classification.


Mar 31, 2014

1. Contingent Liabilities

(Rs. in million)

Particulars 31.03.2014 31.03.2013

Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent Liabilities

(a) Claims against the company not acknowledged as debt 65.85 77.40

(b) Guarantees Bank Guarantees 262.97 268.36

Corporate Guarantees / Letter of comfort 475.00 35.00

(c) Other money for which the company is contingently liable Sales Tax 0.52 1.04

Customs Duty 99.70 99.70

Income Tax 336.73 293.92

Service Tax 27.76

Letter of Credits - 36.56

EPCG 1,524.68 708.00

Value Addded Tax 2.27 2.27

2,795.49 1,522.25

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed 9,871.76 10,644.93 on capital account and not provided for

9,871.76 10,644.93

Total 12,667.24 12,167.18

2. Utilisation of Amounts From Securities Issued

The company has not raised any sum by way of issue of securities during the year 2013-14. Hence disclosure regarding utilisation of amounts from securities issued is not applicable.

3. Leases

In respect of Non-cancellable Operating Leases

Lease payments recognized in the Statement of Profit and Loss is Rs. 1,252.87 million ( Rs. 980.37 million)

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.

4. 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.

5. The Company has been exempted from publishing the financial statements for fifteen of its subsidiaries including fellow subsidiaries which are required to be attached to the Company''s accounts, under Sec.212(1) of the Companies Act, 1956 for the financial year ended 31st March 2014.

6. In the process of acquiring Apollo Gleneagles Hospitals Limited (AGHL) in Kolkata, Apollo Hospitals Enterprise Limited had initially invested Rs. 30 million [ Rs. 5 million towards equity and Rs. 25 million to discharge other liabilities of AGHL, erstwhile Duncan Gleneagles Hospital Limited (DGHL)] to acquire 50.26% holding in DGHL (subsequently reduced to 49%, now increased to 50%). AGHL assigned an unsecured debt of Rs. 163.70 million existing in its books to Apollo Hospitals Enterprise Limited, out of which Rs. 150 million was received till FY 2012-13 and taken to income, leaving a balance unsecured debt of Rs. 13.70 million. As a measure of prudence the balance amount was not recognized as an advance or investment in the books of Apollo Hospitals Enterprise Limited and will be accounted for as and when the amount(s) are received. During the year 2013-14, the balance amount of Rs. 13.70 million has been received and the same has been duly accounted for in the books of accounts.

7. 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.

8. Unrealised amounts on project development and pre-operative project expenses incurred at Bilaspur Hospital amounting to Rs. 56.62 million are included in advances and deposits account. The above expenses incurred on the project will be amortised over the balance lease period of 6 years. The balance yet to be amortised as on 31.03.2014 is Rs. 18.88 million ( Rs. 22.03 million).

9. Figures of the current year and previous year have been shown in million.

10. Figures in brackets relate to the figures for the previous year.

11. Previous year figures have been regrouped and reclassified wherever necessary to confirm with current years classification.


Mar 31, 2013

1. 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 2013 is Rs. 230.60 million 113.31 million). No interest in terms of Section 16 of Micro, Small and Medium Enterprises Development Act, 2006 or otherwise has either been paid or is payable or accrued or remaining unpaid as at 31st March 2013.

2. Capital Work -in-Progress Rs. 3, 727.29 million (Rs. 1,893.15 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 Rs. 377.39 million (Rs. 250.41 million)*.

* Includes Interest on Borrowings Capitalised for the year ended 31st March 2013 of Rs. 252 million (Rs.183 million).

3. LEASES

In respect of Non- cancellable Operating Leases

Lease payments recognized in the Statement of Profit and Loss is Rs. 980.37 million (Rs. 992.37 million)

Lease agreements are renewable for further period or periods on terms and conditions mutually agreed between the lessor and the Company.

Variation/Escalation clauses in lease rentals are made as per mutually agreed terms and conditions by the lessor and the Company.

4. (a) The jointly Controlled Entities considered in the Consolidated Financial Statements are:

"Inclusive of 27% (42.09%) shares held by Unique Home Health Care Limited, a 100% subsidiary of Apollo Hospitals Enterprise Limited.

5. 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.

6. The Company has been exempted from publishing the financial statements for sixteen of its subsidiaries including fellow subsidiaries which are required to be attached to the Company''s accounts, under Sec.212(1) of the Companies Act, 1956 for the financial year ended 31st March 2013.

7. In the process of acquiring Apollo Gleneagles Hospitals Limited (AGHL) in Kolkata, Apollo Hospitals Enterprise Limited had initially invested Rs. 30 million [Rs. 5 million towards equity and Rs. 25 million to discharge other liabilities of AGHL, erstwhile Duncan Gleneagles Hospital Limited (DGHL)] to acquire 50.26% holding in DGHL (subsequently reduced to 49%, now increased to 50%). AGHL assigned an unsecured debt of Rs. 163.70 million existing in its books to Apollo Hospitals Enterprise Limited, out of which Rs. 150 million was received till FY 2012-13 and taken to income, leaving a balance unsecured debt of Rs. 13.70 million. As a measure of prudence, the balance amount is not recognized as an advance or investment in the books of Apollo Hospitals Enterprise Limited currently and will be accounted for as and when the amount(s) are received.

8. 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.

9. Unrealised amounts on project development and pre-operative project expenses incurred at Bilaspur Hospital amounting to Rs. 56.62 million are included in advances and deposits account. The above expenses incurred on the project will be amortised over the balance lease period of 7 years. The balance yet to be amortised as on 31.03.2013 isRs. 22.03 million (Rs. 25.17 million).

10. Figures of the current year and previous year have been shown in millions.

11. Figures in brackets relate to the figures for the previous year.

12. Previous year figures have been regrouped and reclassified wherever necessary to conform to the current years classification.


Mar 31, 2012

A. The Company has issued Foreign Currency Convertible Bonds (FCCBs) to International Finance Corporation (IFC), Washington, to the value of US$ 15 million on 28th January 2010. These bonds are convertible into equity shares based on the rupee dollar parity exchange rate at any time before the end of Final Repayment date. On 9th December 2010, the Company converted FCCBs equivalent to $ 7.5 million into 1,140,992 equity shares of Rs 5 each. The underlying number of Equity shares as on 31st March 2012 is 1,268,343 Equity shares is based on the exchange rate ($1 = Rs 51.1565) and if the option is not exercised, the Loan shall be repayable in full in two approximately equal semi-annual instalments commencing from the Final Repayment Date by way of redemption of such number of FCCBs in respect of which IFC has not exercised its Conversion option.

b. The Company had issued 9,000,000 Global Depository Receipts of Rs 10 (now 18,000,000 Global Depository Receipts of Rs 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 2012 is 5,396,660 (2010-11: 6,263,200) of Rs 5 each and total equity shares converted back to GDR for the year ended 31st March 2012 is 7,689,329 (2010-11: Nil) of Rs 5 each. Total GDR's converted into equity shares upto 31st March 2012 is 12,644,531 (2010-11: 14,937,200) of Rs 5 each.

1. The Company has issued and allotted 3,276,922 equity warrants convertible into equity shares of nominal value of Rs 5/- each at premium of Rs 467.46 per share on 5th February 2011 to Dr. Prathap C Reddy, one of the promoters of the Company on a preferential allotment basis. The issue price is at minimum price of Rs 472.46 fixed in accordance with the guidelines for preferential issues of the Securities Exchange Board Of India (Issue of Capital and Disclosure Requirements)Regulations 2009. Accordingly the promoter has paid 25% of the consideration @ Rs 472.46 per warrant on the date of allotment. The Balance 75% is payable on the exercise of option for conversion within 18 months of date of allotment.

a. 10.30% Non Convertible Debentures

The Company has issued 500 Nos. 10.30% Non Convertible Redeemable Debentures of Rs 1 million each on 28th December 2010 which will be redeemed on 28th December 2020 and 500 Nos. 10.30% Non Convertible Redeemable Debentures of Rs 1 million each on 22nd March 2011 which will be redeemed on 22nd March 2021 to Life Insurance Corporation of India.

The Debentures are secured by way of pari passu first charge on the Fixed Assets of the Company existing and future along with Canara Bank and International Finance Corporation, Washington; such pari passu first charge ensuring atleast a cover of 1.25 times the value of outstanding principal amount of the loan.

c. Canara Bank

The loan is secured by way of pari passu first charge on the fixed assets of the Company existing and future along with Debenture Trustee and International Finance Corporation, Washington.

d. International Finance Corporation (External Commercial Borrowings)

The Company has been sanctioned a sum of US$ 35 million from International Finance Corporation, Washington by way of External Commercial Borrowings (ECB). The Company has withdrawn the full amount of US$ 35 million as of 31st March 2012 on the above loan. The ECB loan is secured by way of pari passu first ranking charge on the entire movable plant and machinery and equipment including all the spare parts and all other fixed assets such as furniture, fixtures, fittings, installations, vehicles, office equipments, computers and all other fixed assets owned by the Company (excluding immovable property), both present and future belonging or hereafter belonging to or at the disposal of the Company. The Loan is repayable in 15 equal semi-annual Instalments starting from 15th September, 2012.

Pari passu charge in favour of IFC over the immovable assets of the Company; such pari passu charge ensuring atleast a cover of 1.25 times the value of outstanding principal amount of the loan.

e. International Finance Corporation has granted a loan of US$ 35 million during the year 2009-10. The Company has drawn full US$ 35 million of the sanctioned amount of US$ 35 million and the Company has entered into Currency Cum Interest Rate Swap (CCIRS) with HDFC Bank in Indian rupee and hedged the loan for interest rate and foreign currency fluctuation risk. The derivative contract is secured by a second charge on the immovable assets of the Company to the extent of Rs 1.100 million. The tenure of this derivative contract matches with the tenure of the loan outstanding as of 31st March 2012.

2. 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 2012 is Rs 113.31 million (Rs 48.76 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 March 2012.

During the year, the amount transferred to Investors Education and Protection Fund of the Central Government as per the provisions of Section 205A and 205C of the Companies Act, 1956 is Rs 1.67 million (Rs 1.33 million) in aggregate which comprises of Rs 1.54 million (Rs 1.32 million) as unpaid dividend and Rs 0.13 million (Rs 0.01 million) as unpaid deposit.

3. Capital Work-in-Progress Rs 1,893.15 million (Rs 3,411.61 million) comprises amounts spent on assets under construction and directly related pre-operative expenses. The amount of interest included in capital work in progress is Rs 250.41 million (Rs 325.02 million)*.

* Includes Interest on Borrowings Capitalised for the year ended 31st March 2012 is Rs 183 million (Rs 154.42 million).

i. Accrued patient collections constitute Rs 273.97 million (Rs 233.56 million) of Trade receivables.

ii Confirmation of balance 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 for and is considered good. The group holds no other securities other than personal security of the Debtors.

a. Gain on Forward Contract during the year ended 31st March 2012 accounted for in the Statement of Profit and Loss is Nil (Rs 11.77 million)

b. For the year ended 31st March 2012, the Foreign Exchange gain (the difference between the spot rates on the date of the transactions, and the actual rates at which the transactions are settled) is Rs 4.29 million (2010-11: Foreign Exchange Loss Rs 8.86 million).

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 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.

4. CONTINGENT LIABILITIES

Particulars 31.03.2012 31.03.2011

Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent Liabilities

(a) Claims against the company not acknowledged as debt 275.03 268.71

(b) Guarantees

Bank Guarantees 55.39 146.39

Corporate Guarantees 242.50 207.50

(c) Other money for which the company is contingently liable

Sales Tax 1.41 1.85

Customs Duty 99.70 99.70

Income Tax 396.79 384.47

Letter of Credits 150.42 120.69

EPCG 1,010.20 1,114.96

Redemption premium on FCCB 11.28 5.31

Value added Tax 2.27 2.27

2,244.99 2,351.85

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital 12,436.38 7,601.47 account and not provided for

12,436.38 7,601.47

Total 14,681.37 9,953.32

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.

5. 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.

6. The Company has been exempted from publishing the financial statements for fourteen of its subsidiaries including fellow subsidiaries which are required to be attached to the Company's accounts, under Sec.212(1) of the Companies Act, 1956 for the financial year ended 31st March 2012.

7. In the process of acquiring Apollo Gleneagles Hospitals Limited (AGHL) in Kolkata, Apollo Hospitals Enterprise Limited had initially invested Rs 30 million [Rs 5 million towards equity and Rs 25 million to discharge other liabilities of AGHL, erstwhile Duncan Gleneagles Hospital Limited (DGHL)] to acquire 50.26% holding in the DGHL (subsequently reduced to 49%, now increased to 50%). AGHL assigned an unsecured debt of Rs 163.7 million existing in its books to Apollo Hospitals Enterprise Limited. During the year the Company received Rs 90 million out of which Rs 25 million has been adjusted against the advance and balance taken to income. As a measure of prudence, balance amount is not recognized as an advance or investment in the books of Apollo Hospitals Enterprise Limited currently and will be accounted for as and when the amount(s) are received.

8. 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.

9. Unrealised amounts on project development and pre-operative project expenses incurred at Bilaspur Hospital amounting to Rs 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 8 years. The balance yet to be amortised as on 31.03.2012 is Rs 25.17 million (Rs 28.31 million).

10. Figures of the current year and previous year have been shown in million.

11. Figures in brackets relate to the figures for the previous year.

12. Previous year figures have been regrouped and reclassified wherever necessary to confirm with current years classification.


Mar 31, 2011

1. RELATED PARTY DISCLOSURES

A. List of Related Parties where control exists and other related parties with whom the Company had transactions and their relationships

Sl Name of Related Parties Nature of relationship No 1 Unique Home Health Care Limited

2 AB Medical Centres Limited

3 Samudra Healthcare Enterprises Limited

4 Apollo Hospital (UK) Limited

5 Apollo Health and Lifestyle Limited

6 Imperial Hospital and Research Centre Limited Subsidiary Companies

7 Pinakini Hospitals Limited (control exists)

8 Apollo Cosmetic Surgical Centre Private Limited

9 Alliance Medicorp (India) Limited

10 ISIS Healthcare India Private Limited

11 Mera Healthcare Private Limited

12 Alliance Dental Care Private Limited

13 Apollo Hospitals International Limited

14 Apollo Gleneagles Hospitals Limited

15 Apollo Gleneagles PET-CT Private Limited

16 Western Hospitals Corporation Pvt. Limited Joint Ventures

17 Apollo Munich Health Insurance Company Limited

18 Apollo Lavasa Health Corporation Limited

19 Quintiles Phase One Clinical Trials India Private Limited

20 Family Health Plan Limited

21 Apollo Health Street Limited

22 Indraprastha Medical Corporation Limited Associates

23 Stemcyte India Therapautics Private Limited

24 Dr. Prathap C Reddy

25 Smt. Preetha Reddy Key Management

26 Smt. Suneeta Reddy Personnel

27 Smt. Sangita Reddy

28 Smt. Shobana Kamineni

29 PCR Investments Limited Enterprises over which

30 Indian Hospitals Corporation Limited Key Management Personnel

31 Apollo Sindoori Hotels Limited are able to exercise

32 PPN Power Generating Company significant influence Private Limited

33 Health Super Hiway Private Limited

34 FaberSindoori Management Services Private Limited

35 Ashok Birla Apollo Hospitals Private Limited

36 Apollo Mumbai Hospital Limited

37 Lifetime Wellness Rx International Limited

38 Apollo Clinical Excellence Solutions Limited Enterprises over which

39 PPN Holding Private Limited Key Management Personnel

40 Preetha Investments Private Limited are able to exercise

41 PPN Power Generation (Unit II) Private Limited significant influence

42 PDR Investments Private Limited

43 TRAC India Private Limited

44 PPN Holdings (Alfa) Private Limited 45 Aircel Limited

46 Aircel Cellular Limited

47 Dishnet Wireless Limited

48 Apollo Infrastructure Project Finance Company Limited

49 Vasumathi Spinning Mills Limited

50 Kalpatharu Infrastructure Development Company Private Limited

51 Sindya Power Generating Company Private Limited

52 Sindya Holdings Private Limited

53 Sindya Resources Pte.Ltd. Singapore

54 Garuda Energy Private Ltd

55 Deccan Digital Networks Private Limited

56 Kalpatharu Enterprises Private Limited

57 Sirkazhi Port Private Limited

58 Sindya Builders Private Limited

59 Tharani Energy India Private Limited

60 Apollo Energy Company Ltd Enterprises over which

61 KARAuto Private Limited Key Management Personnel

62 Healthnet Global Ltd are able to exercise

63 Sindya Infrastructure Development Company Private Limited significant influence

64 Associated Electrical Agencies

65 P. Obul Reddy & Sons

66 Apex builder67 Apex Construction

68 Kei Energy Private Limited

69 Kamineni Builders Private Limited

70 Primetime Recreations Private Limited

71 Kiddy Concepts Private Limited

72 Kei Vita Private Limited

73 Kei Rajamahendri Resorts Private Limited

74 KEI-RSOS Petroleum and Energy Private Limited

75 KEI-RSOS Shipping Private Limited

76 Peninsular Tankers Private Limited

77 Kei Health Highway Private Limited

78 Keimed Limited Enterprises over which 79 Medvarsity Online Limited Key Management Personnel

80 Spectra Clinical Laboratory are able to exercise

81 Kamineni Builders significant influence

82 Universal Quality Services LLC

83 Apollo Health Resources Limited

2 Contingent Liabilities

a. Claims against the Company not acknowledged as debts- Rs. 268.71 million (Rs. 242.24 million)

b. The Company has to pay a sum of Rs. 5.31 million by way of Redemption premium to International Finance Corporation (IFC), Washington as on 31st March 2011 if the FCCB conversion option is not exercised by IFC. On 9th December 2010, the Company converted FCCBs equivalent to US $ 7.5 million into 1.14 million equity shares of Rs. 5 each. For the balance US $ 7.5 million the Company has not received any conversion request from IFC, so the same has not been provided in the books and has been treated as a Contingent Liability (Also refer Note 8 in the Notes forming part of Accounts).

c. Demand raised by Deputy Commissioner of Commercial Taxes (Enforcement) for VAT payable on the sale of Food and Beverages to patients, against which the Company has preferred an appeal with the Joint Commissioner of Commercial Taxes(Appeals) Mysore is Rs. 2.27 million (Rs. 1.27 million)

d. The Company filed a Special Leave Petition on 6th May 2008 before the Honourable Supreme Court against the judgement of the Divisional Bench of the Madras High Court dated 10th March 2008 allowing the reopening of the assessment for Assessment Year 2000-01 and disallowing the claim for set off of unabsorbed depreciation. The Special Leave Petition has been admitted by the Honourable Supreme Court on 15th May 2008. The Assessment Officer completed the assessment and raised a demand of Rs. 136.76 million which has since been stayed by the Honourable Supreme Court in its order dated 16th June 2008. This amount has been treated as a contingent liability for the year ended 31st March 2011 until the disposal of the case by the Honourable Supreme Court.

e. Estimated amount of contracts remaining to be executed on capital account not provided for on account of the expansion cum diversification programme of the Company Rs. 7,601.47 million (Rs. 4,391.86 million).

f. Export obligation to be fulfilled in the next eight years on availing of concessional excise duty on imports under 3% EPCG Scheme to the extent of eight times the duty saved, amounts to Rs.1,114.96 million (Rs. 905.46 million). The amount of duty saved for the year ended 31st March 2011 was Rs. 16.01 million (Rs. 37.00 million).

g. The estimated customs duty guarantees given by the Company in favour of the Assistant Collector of Customs, pending receipt of customs duty exemption certificates amounts to Rs. 99.70 million (Rs. 99.70 million).

- This is subject to the result of writ petition pending in the Madras High Court with respect to the Chennai Hospital division Rs. 73.71 million (Rs. 73.71 million).

- Application has been made for duty exemption certificates by the erstwhile Indian Hospitals Corporation Limited (Pharmaceutical division), which is pending with the Government. The estimated customs duty is Rs. 14.83 million (Rs. 14.83 million).

- The Company has executed bonds in favour of the President of India to the extent of Rs. 11.16 million (Rs. 11.16 million) pending its application for receipt of customs duty exemption certificates from the Government.

h. Letters of credit opened by various banks in favour of foreign suppliers for consumables, spares, medicines and medical equipments amounts to Rs. 120.69 million (Rs. 135.28 million).

a. Bank Guarantees as on 31.03.2011 is Rs.146.39 million (Rs.151.51 million).

i. Additional liability for payment of sales tax on work orders pursuant to court proceedings between contractors and the State governments amounts to Rs. 0.20 million (Rs.0.20 million).

In respect of the claim for sales tax made by the Commercial Tax Department for Rs. 1.65 million (Rs. 1.01 million) for the various assessment years, the matter is under contest.

3. The Company has pledged its 20.77 million (20.77 million) shares in Apollo Gleneagles Hospitals Limited as a security for the loan advanced by IDFC and HDFC to Apollo Gleneagles Hospitals Limited.

4. Capital Work -in-Progress comprises amounts spent on assets under construction and directly related pre-operative expenses. The amount of interest included in capital work in progress is Rs. 325.02 million (Rs. 170.60 million)*.

* Includes Interest on Borrowings Capitalised for the year ended 31.03.2011 is Rs.154.42 million (Rs. 198.68 million) .

5. Details of utilization of funds received on preferential allotment of equity share warrants.

6. Details of Secured Loans and Security

a. Indian Bank

Loan from Indian Bank is secured by way of:

Hypothecation to the bank by way of first charge of inventory of goods, produce and merchandise, vehicles, plant & machinery, consumer durables which are now in the possession of the company and/or to be purchased out of the banks loan, book debts, outstanding monies, recoverable claims, bills, contracts, engagements, securities, investments and rights.

Pari passu charge on the Fixed Assets of the Company existing and future along with Bank of India, Canara Bank, Debenture Trustee and International Finance Corporation, Washington.

b. Bank of India

Loan from Bank of India is secured by way of pari passu charge on the Fixed Assets of the Company existing and future along with Indian Bank, Canara Bank, Debenture Trustee and International Finance Corporation, Washington.

c. Canara Bank

The loan is secured by way of pari passu charge on the Fixed Assets of the Company existing and future along with Indian Bank, Bank of India, Debenture Trustee and International Finance Corporation, Washington.

d. International Finance Corporation (External Commercial Borrowings)

The Company has been sanctioned a sum of US$ 35 million from International Finance Corporation (IFC), Washington by way of External Commercial Borrowings (ECB). The Company has withdrawn

the full amount of US $ 35 million as of 31st March 2011 on the above loan. The ECB is secured by way of pari passu first ranking charge on the entire movable plant and machinery and equipment including all the spare parts and all other fixed assets such as furniture, fixtures, fittings, installations, vehicles, office equipments, computers and all other fixed assets owned by the company (excluding immovable property), both present and future belonging or hereafter belonging to or at the disposal of the Company. The Loan is repayable in 15 equal semi-annual Instalments starting from 15th September 2012.

Pari passu charge in favour of IFC over the immovable assets of the Company ; such pari passu charge ensuring atleast a cover of 1.25 times the value of outstanding principal amount of the loan.

e. 10.3% Non Convertible Debentures

The Company has issued 500 Nos. 10.3% Non Convertible Debentures of Rs.1 million each on 28th December 2010 and 500 Nos. 10.3% Non Convertible Debentures of Rs.1 million each on 22nd March 2011 to the Life Insurance Corporation of India.

The Debentures are secured by way of pari passu charge on the Fixed Assets of the Company existing and future along with Indian Bank, Bank of lndia,Canara Bank and International Finance Corporation, Washington. ; such pari passu charge ensuring atleast a cover of 1.25 times the value of outstanding principal amount of the loan.

f. Cash Credit facilities from Banks are secured by hypothecation of inventories and book debts, and a second charge on specified fixed assets of the Company.

g. The Companys Fixed Deposit receipts amounting to Rs. 45.94 million (Rs. 24.43 million)are under lien with the bankers for obtaining Letters of credit and Bank Guarantee.

7. The Company has issued Foreign Currency Convertible Bonds (FCCBs) to International Finance Corporation, Washington (IFC), to the value of US$ 15 million on 28th January 2010. These bonds are convertible into Equity Shares based on the rupee dollar parity exchange rate at any time before the end of the final repayment date. On 9th December 2010, the Company converted FCCBs equivalent to US $ 7.5 million into 1.14 million equity shares of Rs. 5 each. The underlying number of Equity shares as on 31st March 2011 is 1.10 million equity shares is based on the exchange rate ($1 = Rs. 44.65) and if the option is not exercised, the Loan shall be repayable in full in two approximately equal semi-annual instalments commencing from the final repayment date by way of redemption of such number of FCCBs in respect of which IFC has not exercised its conversion option.

8. As per the requirements of Accounting Standard 15 Employee Benefits (Revised 2005) as notified under the Companies (Accounting Standards) Rules, 2006, the contribution to the 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 Profit and Loss Account for the relevant year Rs. 79.56 million (Rs. 57.55 million). (Also refer Clause (I) of Notes Forming part of Accounts.)

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 Bank.

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.

9. a) For the period ended 31st March 2011, 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) amounted to Rs. 8.86 million (Rs. 15.04 million).

b) The Foreign Exchange gain arising out of the restatement of the monetary items as on the Balance Sheet date is Rs. 14.51 million (Rs.22.20 million) The above Exchange differences have been adjusted in the Profit and Loss Account, which is in conformity to the Accounting Standard 11 on Accounting for the effects of changes in Foreign Exchange rates as notified under the Companies (Accounting Standards) Rules, 2006.

10. Leases

In respect of Non- cancellable Operating Leases

Lease agreements are renewable for a further period or periods on terms and conditions mutually agreed between the lessor and the Company.

Variations/Escalation clauses in lease rentals are made as per mutually agreed terms and conditions by the lessor and the Company.

11. The Company has issued and allotted 1.54 million equity warrants convertible into equity shares of nominal value of Rs. 10/- each at premium of Rs 761.76 per share on 12th June 2010 to Dr. Prathap C Reddy, one of the promoters of the company on a preferential allotment basis. The issue price is at minimum price of Rs 771.76 fixed in accordance with the guidelines for preferential issues of the Securities Exchange Board of India (Issue of Capital and Disclosure Requirements)Regulations 2009 .Accordingly the promoter has paid 25% of the consideration @ 771.76 per warrant on the date of allotment. The balance 75% is payable on the exercise of option for conversion within 18 months of date of allotment. Consequent to the splitting of one Rs.10 equity share into two Rs.5/- equity shares the warrants outstanding as on 31st March 2011 is 3.08 million.

The Company has issued and allotted 3.27 million equity warrants convertible into equity shares of nominal value of Rs. 5/- each at premium of Rs 467.46 per share on 5th February 2011 to Dr. Prathap C Reddy, one of the promoters of the company on a preferential allotment basis. The issue price is at a minimum price of Rs 472.46 fixed in accordance with the guidelines for preferential issues of the Securities Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2009. Accordingly the promoter has paid 25% of the consideration @ 472.46 per warrant on the date of allotment. The balance 75% is payable on the exercise of option for conversion within 18 months of date of allotment.

12. The Company had issued 9.00 million Global Depository Receipts with two way fungibilty during the year 2005-06. Total GDRs converted into underlying Equity Shares for the year ended on 31st March 2011 is 3.13 million (2009-10: 0.02 million) and the total GDRs converted upto 31st March 2011 is 7.46 million (2009-10: 4.33 million). Consequent to the splitting of each equity share of face value of Rs. 10/- into two equity shares of face value of Rs. 5/- each, the total Global Depository Receipts converted to equity shares is 14.93 million.

13. 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.

* Pharmacy sales are sales made within India to inpatients that have paid in foreign currency.

14. Directors travelling included in travelling and conveyance amounts to Rs.19.26 million (Rs. 5.83 million).

15. Unclaimed Dividend

During the year, the amount transferred to Investors Education and Protection Fund of the Central Government as per the provisions of Section 205A and 205C of the Companies Act, 1956 is Rs.1.33 million (Rs. 1.23 million) in aggregate which comprises of Rs. 1.32 million (Rs. 1.12 million) as unclaimed dividend and Rs. 0.01 million (Rs. 0.11 million) as unclaimed deposit.

*Net of book depreciation for the assets claimed as deduction u/s 35AD of the Income Tax Act 1961 The company adjusts the amount of deferred tax liability carried forward by applying the tax rate that has been enacted or substantively enacted at the date of the Balance Sheet on accumulated timing differences. Surcharge rates has been revised from 7.5% to 5% for Fiscal 2011 -12

The effects on such Deferred Tax Liability, if any, arising out of assessments completed but under contest under various stages will be made on the appeals being decided.

16. International Finance Corporation has granted a loan of US$ 35 million during the year 2009-10. For the year ended 31st March 2011 the Company has drawn full US$ 35 million of the sanctioned amount of US$ 35 million and the Company has entered into Currency Cum Interest Rate Swap (CCIRS) with HDFC Bank in Indian rupee and hedged the loan for interest rate and foreign currency fluctuation risk. The derivative contract is secured by a second charge on the immovable assets of the Company to the extent of Rs. 1,100 million The tenure of this derivative contract matches with the tenure of the loan outstanding as of 31st March 2011.

17. Gain on Forward Contract during the year ended 31st March 2011 accounted for in the Profit and Loss Account is Rs.11.77 million (Rs. 31.35 million)

18. Sundry Debtors, Loans and Advances

i. Confirmations of balances from Debtors, Creditors and for Deposits are yet to be received in a few cases though the Company has sent letters of confirmation to them. The balances adopted are as appearing in the books of accounts of the Company.

ii. Sundry Debtors represent the debt outstanding on sale of pharmaceutical products, hospital services and project consultancy fees and are considered good. The Company holds no other securities other than the personal security of the debtors.

iii. Sundry Debtors and Loans and Advances shown under the head Current Assets includes the amounts due from concerns which are under same management or in which some of the Directors are interested as Directors, which amounts to Rs.818.43 million (Rs. 629.49 million).

iv. Accrued patient collections constitute Rs. 233.56 million (Rs. 123.86 million) of Sundry Debtors.

v. Advances and deposits represent the advances recoverable in cash or in kind or for value to be received. The amounts of these advances and deposits are considered good for which the Company holds no security other than the personal security of the debtors.

19. Power Generation

The Electricity charges incurred in respect of the Hospital is net of Rs. 6.94 million (Rs. 7.47 million) [units qualified KWH -1.39 million (1.59 million)], being the rebate received from TNEB for Wind Electric Generators owned & run by the Company.

20. The Company has been exempted by the Ministry of Corporate Affairs, vide order No. 46/115/2011 -CL III from publishing the quantitative particulars as per para 3(ii) (d) of Part II of Schedule VI of the Companies Act, 1956 with respect to the total value of turn over, purchases, goods traded, sales, consumption of raw materials etc. for the year ended 31st March 2011 and hence the same is not disclosed for this financial year.

21. The Company has been exempted from publishing the financial statements for twelve of its subsidiaries including fellow subsidiaries which are required to be attached to the Companys accounts, under Sec.212(1) of the Companies Act, 1956 for the financial year ended 31st March 2011

22. In the process of acquiring Apollo Gleneagles Hospitals Limited (AGHL) in Kolkata, Apollo Hospitals Enterprise Limited had initially invested Rs. 30 million [Rs. 5 million towards equity and Rs.25 million to discharge other liabilities of AGHL, erstwhile Duncan Gleneagles Hospital Limited (DGHL)] to acquire 50.26% holding in DGHL (subsequently reduced to 49%, now increased to 50%). AGHL assigned an unsecured debt of Rs.176 million existing in its books to Apollo Hospitals Enterprise Limited. As a measure of prudence, this amount is not recognized as an advance or investment in the books of Apollo Hospitals Enterprise Limited currently and will be accounted for as and when the amount(s) are received.

23. 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.

*The Company has issued Foreign Currency Convertible Bonds (FCCBs) to International Financial Corporation (IFC), Washington convertible to Equity shares at the option of IFC during the year 2009-10. The Bonds are convertible at any time during the tenure of the loan. To comply with the requirements of Accounting Standard-20 (Earnings Per Share) the underlying number of Equity shares equivalent to 1.10 million Equity shares (computed on the basis of exchange rates prevailing on the date of 31st March 2011) have been considered for the purpose of computing potential number of Equity Shares.

24. In respect of the Income Tax claims of Rs. 384.46 million (Rs. 243.73 million) by the Income Tax Department, the amount is under contest.

- Provision for taxation is determined after availing concession under Section 35AD of the Income Tax Act 1961.

25. National Saving Certificates shown under investments are pledged with the Chief Ration Officer, Government of Andhra Pradesh.

26. Details of Sundry Creditors under Current Liabilities 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 2011 is Rs. 48.76 million (Rs. 153.26 million). No interest interms 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 March 2011.

27. The hospital collections of the Company are net of discounts of Rs. 37.09 million (Rs. 59.99 million).

28. Unrealised amount on project development and pre oprerative project expenses incurred at Bilaspur Hospital amounting to Rs. 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 9 years. The balance yet to be amortised as on 31st March 2011 is Rs. 28.31 million (Rs. 31.45 million).

29. Figures of the current year and previous year have been shown in million.

30. Figures in brackets relate to the figures for the previous year.

31. Previous year figures have been regrouped and reclassified wherever necessary to confirm with current years classification.


Mar 31, 2010

1. Contingent Liabilities

a. Claims against the company not acknowledged as debts- Rs. 242,240,183/- (Rs. 267,121,672/-).

b. The Company has to pay a sum of Rs. 1,601,887 by way of Redemption premium to International Finance Corporation, Washington as on March 31, 2010 if the FCCB conversion option is not exercised by IFC. Till this date the company has not received any Conversion request from IFC so the same has not been provided in the books and has been treated as a contingent liability.

c. Demand raised by Deputy Commissioner of Commercial Taxes (Enforcement) for VAT payable on the sale of food and beverages to patients, against which the Company has preferred an appeal with the Joint Commission of Commercial Taxes(Appeals) Mysore is Rs. 1,273,277/- (Rs. 1,273,277/-)

d. The Company filed a Special Leave Petition on 6th May 2008 before the Honourable Supreme Court against the judgement of the Divisional Bench of the Madras High Court dated 10th March 2008 allowing the reopening of the assessment for Assessment Year 2000-01 and disallowing the claim for set off of the unabsorbed depreciation. The Special Leave Petition has been admitted by the Honourable Supreme Court on 15th May 2008. The Assessment Officer completed the assessment and raised a demand of Rs. 136,760,038/- which has since been stayed by the Honourable Supreme Court in its order dated 16th June 2008. Since in our opinion the amount is subjudice, the same has been treated as a contingent liability for the financial year ended 31st March 2010.

e. Estimated amount of contracts remaining to be executed on capital account not provided for on account of the expansion cum

b. Corporate Guarantees

diversification programme of the company Rs. 4,391,857,496/- (Rs. 4,986,109,680/-).

f. Export obligation to be fulfilled in the next eight years on availing of concessional excise duty on imports under 5% EPCG Scheme to the extent of eight times the duty saved, amounts to Rs. 905,455,224/- (Rs. 884,188,176/-). The amount of duty saved during the year was Rs. 36,999,059/- (Rs. 65,522,104/-).

g. The estimated customs duty guarantees given by the company in favour of the Assistant Collector of Customs, pending receipt of customs duty exemption certificates amounts to Rs. 99,700,026/- (Rs. 99,700,026/-).

- This is subject to the result of writ petition pending in the Madras High Court with respect to the Chennai Hospital division Rs. 73,709,545/- (Rs. 73,709,545/-).

- Application has been made for duty exemption certificates by the erstwhile Indian Hospitals Corporation Limited (Pharmaceutical division), which is pending with the Government. The estimated customs duty is R. 14,825,739/- (Rs.14,825,739/-).

- The Company has executed bonds in favour of the President of India to the extent of Rs. 11,164,742/- (Rs. 11,164,742/-) pending its application for receipt of customs duty exemption certificates from the Government.

h. Letters of credit opened by various banks in favour of foreign suppliers for consumables, spares, medicines and medical equipments amounts to Rs. 135,288,815/- (Rs. 267,407,927/-).

a. Bank Guarantees as on 31.03.2010 Rs. 151,514,600/- (Rs. 36,231,640/-)

i. Additional liability for payment of sales tax on work orders pursuant to court proceedings between contractors and the State Governments amounts to Rs. 206,076/- (Rs.206,076/-)

In respect of the claim for sales tax made by the Commercial Tax Department for Rs. 1,013,687/- (Rs. 1,013,687/-) for the various assessment years, the matter is under contest.

2. The Company has pledged its 20,775,197 (20,775,197) shares in Apollo Gleneagles Hospitals Limited as a security for the loan advanced by IDFC and HDFC to Apollo Gleneagles Hospitals Limited.

3. Capital work -in-progress comprises amounts spent on assets under construction and related pre-operative expenses. The amount of interst included in capital work-in-progress is Rs. 170.60 million.

* Includes Interest on borrowings capitalised during the year amounts Rs. 198,677,302/- (Rs. 254,643,471/-)

4. Details of Secured Loans and Security

a. Indian Bank

Loan from Indian Bank is secured by way of:

Equitable mortgage by deposit of title deeds/ registered mortgage of unencumbered property of the Company at Greams road, Chennai, Teynampet, Chennai and all fixed assets on pari passu basis.

Hypothecation to the bank by way of First Charge of inventory of goods, produce and merchandise, vehicles, plant & machinery, consumer durables which are now in the possession of the company and/or to be purchased out of the banks loan, book debts, outstanding monies, recoverable claims, bills, contracts, engagements, securities, investments and rights.

Pari passu charge on the fixed assets of the Company existing and future along with Bank of India, Canara Bank and International Finance Corporation, Washington.

b. Bank of India

Loan from Bank of India is secured by way of:

Hypothecation by way of first charge on all tangible movable properties, all tangible movable machineries and plants (both present and future),

assets and stocks (both present and future), all the present and future book debts, outstandings, money receivables, claims, bills which are now due and owing or which may at any time during the continuance of this security become due and owing to the Company.

Pari passu charge on the fixed assets of the Company existing and future along with Indian Bank, Canara Bank and International Finance Corporation, Washington.

c. Canara Bank

The loan is secured by way of Pari passu charge on the fixed assets of the Company existing and future along with Indian Bank, Bank of India and International Finance Corporation, Washington.

d. International Finance Corporation (External Commercial Borrowings)

The Company has been sanctioned a sum of 35 million US$ from International Finance Corporation, Washington by way of External Commercial Borrowings (ECB). The Company has withdrawn a sum of 15 million US$ as of March 31, 2010 on the above loan. The ECB loan is secured by way of pari passu first ranking charge on the entire movable plant and machinery and equipment including all the spare parts and all other fixed assets such as furniture, fixtures, fittings, installations, vehicles, office equipment, computers and all other fixed assets owned by the company (excluding immovable property), both present and future belonging or hereafter belonging to or at the disposal of the Company. The Loan is repayable in 15 equal Semi- annual Instalments starting from September 15, 2012.

Pari passu charge in favour of IFC over specified fixed assets of the Company (identified mutually by the Company and IFC), such pari passu charge ensuring at least a cover of 1.25 times the value of the outstanding principal amount of the Loan.

e. Loans and advances/Credit facilities from Banks are secured by hypothecation of inventories and book debts, and a second charge on specific fixed assets of the company.

f. The Companys Fixed Deposit receipts as detailed below are under lien with the bankers for obtaining Letters of credit and Bank Guarantee.

5. The Company has issued Foreign Currency Convertible Bonds (FCCBs) to International Finance Corporation, Washington to the value of US $ 15 million on January 28, 2010. These bonds are convertible into equity shares based on the rupee dollar parity exchange rate at any time before the end of final repayment date. The underlying number of Equity shares as on March 31, 2010 is 1,120,740 equity shares based on the exchange rate ($1 = Rs.45.20) and if the option is not exercised, the same shall be repayable in full in two approximately equal semi-annual instalments commencing from the final repayment date by way of redemption of such FCCBs in respect of which IFC has not exercised its Conversion option.

6. As per the requirements of Accounting Standard 15 Employee Benefits (Revised 2005) issued by the Institute of Chartered Accountants of India, the contribution to the 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 profit and loss account for the relevant year -Rs. 57,559,179/- (Rs. 500,000/-). (Also refer Clause (I) of Notes Forming part of Accounts.)

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 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.

7. During the year, the Foreign Exchange loss (the difference between the spot rates on

8. The 1,549,157 Share warrants issued to Dr. Prathap C Reddy on 19th October 2007 was converted into 1,549,157 equity shares of Rs. 10/-each fully paid up at a price of Rs. 497.69 per equity share including premium of Rs.487.69 per equity share on 18th April 2009.

9. The Company had issued 9,000,000 Global Depository Receipts during the year 2005-06. Total GDRs converted into underlying equity shares during the year is 24,800 (2008-09: 173,510) and the total GDRs the date of the transactions, and the actual rates at which the transactions are settled) amounting to Rs. 15,049,826/- (31,087,438/) and the Foreign Exchange gain arising out of the restatement of the monetary items as on the Balance Sheet date is Rs. 22,200,000/-. The above exchange difference have been adjusted to the Profit and Loss Account, which is in conformity to the Accounting Standard 11 on Accounting for the effects of changes in Foreign Exchange rates issued by the Institute of Chartered Accountants of India.

converted upto 31st March 2010 is 4,337,000 (2008-09: 4,312,200).

10. During the year 2002-03, on a review of fixed assets, certain selected medical equipment 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.

During the year, the amount transferred to Investors Education and Protection Fund of the Central Government as per the provisions of Section 205A and 205C of the Companies Act, 1956 is Rs. 1,231,097/- (Rs. 1,668,843/-) in aggregate which comprises of Rs. 1,122,139/-(Rs. 1,386,843/) as unclaimed dividend and Rs. 133,958/- (Rs. 282,000/-) as unclaimed deposit.

11. Additional net deferred tax liability of Rs. 124,894,914/- (Rs. 36,863,326/-) for the period has been recognized in the Profit & Loss account.

The company adjusts the amount of deferred tax liability carried forward by applying the tax rate that has been enacted or substantively enacted at the date of the Balance Sheet on accumulated timing differences. Such adjustment has not been effected this year since the tax rates have not changed for the fiscal year 2010.

The effects on such Deferred Tax Liability, if any, arising out of assessments completed but under contest under various stages will be made on the appeals being decided.

11. International Finance Corporation has granted a loan US$ 35 million during the year. During the year the company has drawn a sum of 15 million US$ of the sanctioned amount of 35 million US$ and the company had entered into a forward contract with HDFC Bank for draw down and hedged the loan for interest rate and foreign currency fluctuation risk. The tenure of this derivative contract matches with the tenure of the loan outstanding as of March 31, 2010.

12. Gain /loss on forward contract during the year ended 31st March 2010 accounted for in the Profit and Loss Account is Rs. 31,350,000/- (Nil).

13. Sundry Debtors, Loans and Advances

i. Confirmations of balances from Debtors, Creditors and for Deposits are yet to be received in a few cases though the company has sent letters of confirmation to them. The balances adopted are as appearing in the books of accounts of the Company.

ii. Sundry Debtors represent the debt outstanding on sale of pharmaceutical products, hospital services and project consultancy fees and is considered good. The company holds no other securities other than the personal security of the debtors.

iii. Sundry Debtors and Loans and Advances shown under the head Current Assets includes the amounts due from concerns which are under the same management or in which some of the Directors are interested as Directors, which amounts to Rs. 629,493,062/- (Rs. 449,633,277/-).

iv. Accrued patient collections constitute Rs. 123,855,977/- (Rs. 85,110,193/-) of Sundry Debtors.

14. Power Generation

The Electricity charges incurred in respect of main hospital is net of Rs. 7,473,635/- (Rs.8,078,300/-) [units qualified KWH- 1,590,948 (1,615,660)], being the rebate received from TNEB for Wind Electric Generators owned & run by the Company.

15. The company has been exempted by the Ministry of Corporate Affairs, vide Order No: 46/66/2010 - CL-III, from publishing the quantitative particulars as per Para 3(ii)d of Part II of Schedule VI of the Companies Act, 1956 with respect to the total value of turnover, purchases, goods traded, sales, consumption of raw materials etc., for the financial year ended 31.03.2010 and hence the same is not disclosed for this financial year.

16. The Company has been exempted from publishing the financial statements for ten of its subsidiaries which are required to be attached to the companys accounts, under Sec.212(1) of the Companies Act, 1956 for the financial year ended 31.03.2010.

17. In the process of acquiring Apollo Gleneagles Hospitals Limited (AGHL) in Kolkata, Apollo Hospitals Enterprise Limited had initially invested Rs. 30 million (5 million towards equity and Rs.25 million to discharge other liabilities of AGHL, erstwhile Duncan Gleneagles Hospital Limited (DGHL)] to acquire 50.26% holding in DGHL (subsequently reduced to 49%,now increased to 50%). AGHL assigned an unsecured debt of Rs. 176 million existing in its books to Apollo Hospitals Enterprise Limited.

As a measure of prudence, this amount is not recognized as an advance or investment in the books of Apollo Hospitals Enterprise Limited currently and will be accounted for as and when the amount(s) are received.

18. 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 27.10.2001.

The Company has issued Foreign Currency Convertible Bonds (FCCBs) to International Financial Corporation (IFC), Washington convertible to equity shares at the option of IFC during the year. The Bonds are convertible at any time during the tenure of the loan. To comply with the requirements of Accounting Standard-20 (Earnings Per Share) the underlying number of equity shares equivalent to 1,120,740 equity shares (computed on the basis of exchange rates prevailing on the date of March 31, 2010) have been considered for the purpose of computing potential number of equity shares.

19. In respect of the Income Tax claims of Rs. 315.28 million (Rs. 243.73 million) by the Income Tax Department, the amount is under contest. The disputed dues other than Rs. 136.70 million stayed by supreme court has been adjusted by the Income Tax Department from various amounts refundable to the Company.

20. National Saving Certificates shown under investments are pledged with the Chief Ration Officer, Government of Andhra Pradesh.

21. Details of Sundry Creditors under Current Liabilities 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 2010 is Rs.153,257,088/-.

22. Figures of the current period and previous year have been rounded off to the nearest rupee.

23. Figures in brackets relate to the figures for the previous year.

24. Previous year figures have been regrouped and reclassified wherever necessary to conform with current years classification.

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